0000318154
2011-04-01
2011-04-30
0000318154
2009-12-01
2009-12-31
0000318154
amgn:NotesDuePeriodOneMember
2011-01-01
2011-06-30
0000318154
us-gaap:ForwardContractsMember
2011-06-30
0000318154
us-gaap:ForwardContractsMember
2011-06-30
0000318154
us-gaap:OptionMember
2011-06-30
0000318154
us-gaap:OptionMember
2011-06-30
0000318154
us-gaap:OptionMember
2010-12-31
0000318154
us-gaap:OptionMember
2010-12-31
0000318154
us-gaap:ForwardContractsMember
2010-12-31
0000318154
us-gaap:ForwardContractsMember
2010-12-31
0000318154
amgn:NotesDue2016Member
2010-12-31
0000318154
amgn:NotesDue2042Member
2010-12-31
0000318154
amgn:NotesDue2021Member
2010-12-31
0000318154
us-gaap:OtherContractMember
2011-06-30
0000318154
amgn:AssetImpairmentChargesMember
amgn:OtherChargesMember
amgn:OptimizationOfManufacturingNetworkMember
2010-10-01
2010-12-31
0000318154
us-gaap:ForeignExchangeContractMember
amgn:InterestAndOtherIncomeMember
2011-04-01
2011-06-30
0000318154
us-gaap:ForeignExchangeContractMember
amgn:InterestAndOtherIncomeMember
2011-01-01
2011-06-30
0000318154
amgn:InterestAndOtherIncomeMember
us-gaap:ForeignExchangeContractMember
2010-04-01
2010-06-30
0000318154
us-gaap:ForeignExchangeContractMember
amgn:InterestAndOtherIncomeMember
2010-01-01
2010-06-30
0000318154
amgn:ForeignCurrencyForwardAndOptionContractsMember
2011-06-30
0000318154
amgn:RateAdjustmentToLiborOnInterestRateSwapAgreementsMember
2011-06-30
0000318154
us-gaap:ForeignExchangeContractMember
amgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember
us-gaap:DesignatedAsHedgingInstrumentMember
2011-06-30
0000318154
amgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember
us-gaap:InterestRateContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2011-06-30
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
us-gaap:AccruedLiabilitiesMember
2011-06-30
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
us-gaap:AccruedLiabilitiesMember
2010-12-31
0000318154
us-gaap:InterestRateContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
amgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember
2010-12-31
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
amgn:AccruedLiabilitiesOtherNonCurrentLiabilitiesMember
2010-12-31
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
amgn:OtherCurrentAssetsMember
2011-06-30
0000318154
us-gaap:ForeignExchangeContractMember
amgn:OtherCurrentNoncurrentAssetsMember
us-gaap:DesignatedAsHedgingInstrumentMember
2011-06-30
0000318154
us-gaap:InterestRateContractMember
amgn:OtherCurrentNoncurrentAssetsMember
us-gaap:DesignatedAsHedgingInstrumentMember
2011-06-30
0000318154
us-gaap:NondesignatedMember
2011-06-30
0000318154
us-gaap:DesignatedAsHedgingInstrumentMember
2011-06-30
0000318154
us-gaap:InterestRateContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
amgn:OtherCurrentNoncurrentAssetsMember
2010-12-31
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
amgn:OtherCurrentNoncurrentAssetsMember
2010-12-31
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
amgn:OtherCurrentAssetsMember
2010-12-31
0000318154
us-gaap:DesignatedAsHedgingInstrumentMember
2010-12-31
0000318154
us-gaap:NondesignatedMember
2010-12-31
0000318154
amgn:NotesDuePeriodFiveMember
2011-06-30
0000318154
amgn:NotesDuePeriodThreeMember
2011-06-30
0000318154
amgn:NotesDuePeriodSixMember
2011-06-30
0000318154
amgn:NotesDuePeriodTenMember
2011-06-30
0000318154
amgn:NotesDuePeriodFourMember
2011-06-30
0000318154
amgn:NotesDuePeriodSixteenMember
2011-06-30
0000318154
amgn:NotesDuePeriodEightMember
2011-06-30
0000318154
amgn:NotesDuePeriodElevenMember
2011-06-30
0000318154
amgn:NotesDuePeriodNineMember
2011-06-30
0000318154
amgn:NotesDuePeriodSevenMember
2011-06-30
0000318154
amgn:NotesDuePeriodFifteenMember
2011-06-30
0000318154
amgn:NotesDuePeriodElevenMember
2010-12-31
0000318154
amgn:NotesDuePeriodEightMember
2010-12-31
0000318154
amgn:NotesDuePeriodTenMember
2010-12-31
0000318154
amgn:NotesDuePeriodThreeMember
2010-12-31
0000318154
amgn:NotesDuePeriodNineMember
2010-12-31
0000318154
amgn:NotesDuePeriodSevenMember
2010-12-31
0000318154
amgn:NotesDuePeriodSixteenMember
2010-12-31
0000318154
amgn:NotesDuePeriodFifteenMember
2010-12-31
0000318154
amgn:NotesDuePeriodSixMember
2010-12-31
0000318154
amgn:NotesDuePeriodFourMember
2010-12-31
0000318154
amgn:NotesDuePeriodFiveMember
2010-12-31
0000318154
amgn:NotesDue2016Member
2011-06-30
0000318154
amgn:NotesDue2042Member
2011-06-30
0000318154
amgn:NotesDue2021Member
2011-06-30
0000318154
amgn:NotesDuePeriodTwoMember
2011-06-30
0000318154
amgn:NotesDuePeriodTwoMember
2010-12-31
0000318154
2011-07-01
2011-07-28
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:CashFlowHedgingMember
2011-04-01
2011-06-30
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:CashFlowHedgingMember
2011-01-01
2011-06-30
0000318154
us-gaap:CashFlowHedgingMember
us-gaap:ForeignExchangeContractMember
2010-04-01
2010-06-30
0000318154
us-gaap:ForeignExchangeContractMember
us-gaap:CashFlowHedgingMember
2010-01-01
2010-06-30
0000318154
us-gaap:OtherContractMember
us-gaap:CashFlowHedgingMember
2011-04-01
2011-06-30
0000318154
us-gaap:CashFlowHedgingMember
us-gaap:OtherContractMember
2011-01-01
2011-06-30
0000318154
us-gaap:CashFlowHedgingMember
us-gaap:OtherContractMember
2010-04-01
2010-06-30
0000318154
us-gaap:OtherContractMember
us-gaap:CashFlowHedgingMember
2010-01-01
2010-06-30
0000318154
us-gaap:CashFlowHedgingMember
2011-04-01
2011-06-30
0000318154
us-gaap:CashFlowHedgingMember
2011-01-01
2011-06-30
0000318154
us-gaap:CashFlowHedgingMember
2010-04-01
2010-06-30
0000318154
us-gaap:CashFlowHedgingMember
2010-01-01
2010-06-30
0000318154
amgn:AvailableForSalesInvestmentsMember
2011-06-30
0000318154
amgn:AvailableForSalesInvestmentsMember
2010-12-31
0000318154
2009-12-31
0000318154
us-gaap:OtherOperatingExpenseMember
2011-01-01
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:OtherMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:ForeignGovernmentDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:AssetBackedSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:OtherMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
amgn:CorporateDebtSecuritiesIndustrialMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:AssetBackedSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:EquitySecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:EquitySecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
amgn:CorporateDebtSecuritiesFinancialMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:MoneyMarketFundsMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:ForeignGovernmentDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
amgn:CorporateDebtSecuritiesFinancialMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:AssetBackedSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
amgn:CorporateDebtSecuritiesIndustrialMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:USTreasurySecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:EquitySecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
amgn:CorporateDebtSecuritiesIndustrialMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:MoneyMarketFundsMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:ForeignGovernmentDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:OtherMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:USTreasurySecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:MoneyMarketFundsMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:USTreasurySecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
amgn:CorporateDebtSecuritiesFinancialMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
amgn:CorporateDebtSecuritiesFinancialMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:MoneyMarketFundsMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USTreasurySecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
amgn:CorporateDebtSecuritiesIndustrialMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:ForeignGovernmentDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:AssetBackedSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EquitySecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:USTreasurySecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
amgn:CorporateDebtSecuritiesIndustrialMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:OtherMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:USTreasurySecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:MoneyMarketFundsMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
amgn:CorporateDebtSecuritiesFinancialMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:OtherMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:OtherMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
amgn:CorporateDebtSecuritiesIndustrialMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:AssetBackedSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:AssetBackedSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:USTreasurySecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:EquitySecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:AssetBackedSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:OtherDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:EquitySecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:ForeignGovernmentDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:OtherDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
amgn:CorporateDebtSecuritiesIndustrialMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:ForeignGovernmentDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:EquitySecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:ForeignGovernmentDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
amgn:CorporateDebtSecuritiesFinancialMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:OtherDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
amgn:CorporateDebtSecuritiesFinancialMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
us-gaap:MoneyMarketFundsMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:MoneyMarketFundsMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:MoneyMarketFundsMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:ForeignGovernmentDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
amgn:CorporateDebtSecuritiesIndustrialMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EquitySecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:AssetBackedSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USTreasurySecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
amgn:CorporateDebtSecuritiesFinancialMember
2010-12-31
0000318154
us-gaap:DebtSecuritiesMember
2011-06-30
0000318154
us-gaap:OtherMember
2011-06-30
0000318154
us-gaap:MoneyMarketFundsMember
2011-06-30
0000318154
us-gaap:AssetBackedSecuritiesMember
2011-06-30
0000318154
us-gaap:USTreasurySecuritiesMember
2011-06-30
0000318154
amgn:CorporateDebtSecuritiesFinancialMember
2011-06-30
0000318154
amgn:CorporateDebtSecuritiesIndustrialMember
2011-06-30
0000318154
us-gaap:OtherDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:EquitySecuritiesMember
2011-06-30
0000318154
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:ForeignGovernmentDebtSecuritiesMember
2011-06-30
0000318154
us-gaap:OtherMember
2010-12-31
0000318154
us-gaap:MoneyMarketFundsMember
2010-12-31
0000318154
us-gaap:OtherDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:EquitySecuritiesMember
2010-12-31
0000318154
amgn:CorporateDebtSecuritiesFinancialMember
2010-12-31
0000318154
amgn:CorporateDebtSecuritiesIndustrialMember
2010-12-31
0000318154
us-gaap:AssetBackedSecuritiesMember
2010-12-31
0000318154
us-gaap:DebtSecuritiesMember
2010-12-31
0000318154
us-gaap:USTreasurySecuritiesMember
2010-12-31
0000318154
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:ForeignGovernmentDebtSecuritiesMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
2010-12-31
0000318154
2011-07-27
0000318154
amgn:WarrantsIssuedConcurrentWithIssuanceOf2011ConvertibleDebtMember
2011-01-01
2011-06-30
0000318154
2011-01-01
2011-03-31
0000318154
2010-01-01
2010-03-31
0000318154
2010-06-30
0000318154
amgn:NotesDue2016Member
2011-01-01
2011-06-30
0000318154
amgn:NotesDue2042Member
2011-01-01
2011-06-30
0000318154
amgn:NotesDue2021Member
2011-01-01
2011-06-30
0000318154
amgn:NotesDuePeriodOneMember
2011-06-30
0000318154
amgn:NotesDuePeriodOneMember
2010-12-31
0000318154
amgn:OptimizationOfManufacturingNetworkMember
amgn:OtherChargesMember
2011-01-01
2011-06-30
0000318154
amgn:OptimizationOfManufacturingNetworkMember
us-gaap:CostOfSalesMember
2011-04-01
2011-06-30
0000318154
amgn:OptimizationOfManufacturingNetworkMember
us-gaap:CostOfSalesMember
2011-01-01
2011-06-30
0000318154
amgn:OptimizationOfManufacturingNetworkMember
2010-12-31
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2011-06-30
0000318154
us-gaap:FairValueMeasurementsRecurringMember
2011-06-30
0000318154
amgn:OtherAcquisitionsMember
2011-06-30
0000318154
amgn:BiovexGroupIncMember
2011-03-04
0000318154
amgn:BiovexGroupIncMember
2011-01-01
2011-06-30
0000318154
2011-06-30
0000318154
2010-12-31
0000318154
2011-04-01
2011-06-30
0000318154
2010-04-01
2010-06-30
0000318154
2010-01-01
2010-06-30
0000318154
2011-01-01
2011-06-30
iso4217:USD
xbrli:shares
xbrli:pure
xbrli:shares
iso4217:USD
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 1 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<!-- xbrl,ns -->
<!-- xbrl,nx -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>1. Summary of significant accounting policies</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Business</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Basis of presentation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The financial information for the three and six months ended June 30, 2011 and 2010 is
unaudited but includes all adjustments (consisting of only normal recurring adjustments, unless
otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed
consolidated results of operations for those periods. Interim results are not necessarily
indicative of results for the full fiscal year.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The condensed consolidated financial statements should be read in conjunction with our
consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K
for the year ended December 31, 2010 and our Quarterly Report on
Form 10-Q for the period
ended March 31, 2011.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Principles of consolidation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The condensed 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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Use of estimates</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The
preparation of condensed consolidated financial statements in conformity with accounting
principles generally accepted in the United States (GAAP) requires management to make estimates and
assumptions that affect the amounts reported in the condensed consolidated financial statements and
accompanying notes. Actual results may differ from those estimates.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Revenue recognition for arrangements with multiple-deliverables</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">From time to time, we enter into arrangements for the research and development (R&D),
manufacture and/or commercialization of products and product candidates. These arrangements may
require us to deliver various rights, services and/or goods across the entire life cycle of a
product or product candidate, including (i) intellectual
property rights/licenses, (ii) R&D
services, (iii) manufacturing services and/or (iv) commercialization services. The underlying terms
of these arrangements generally provide for consideration to Amgen in the form of non-refundable
upfront license payments, R&D and commercial performance milestone payments, cost sharing and/or
royalty payments.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In October 2009, a new accounting standard
was issued that amends the guidance on the accounting for arrangements involving the delivery of more than
one element. This standard addresses the determination of the unit(s) of accounting for
multiple-element arrangements and how the arrangement’s consideration should be allocated to each
unit of accounting. The Company adopted this new accounting standard on a prospective basis for all
multiple-element arrangements entered into on or after January 1, 2011 and for any multiple-element
arrangements that were entered into prior to January 1, 2011 but materially modified on or after
January 1, 2011.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Pursuant to the new standard, each required deliverable is evaluated to determine if it
qualifies as a separate unit of accounting. For Amgen this determination is generally based on
whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration is
then allocated to each separate unit of accounting based on the relative selling price of each
deliverable. The estimated selling price of each deliverable is determined using the following
hierarchy of values: (i) vendor-specific objective evidence of fair value, (ii) third-party
evidence of selling price, and (iii) best estimate of selling price (BESP). The BESP reflects our
best estimate of what the selling price would be if the deliverable was regularly sold by us on a
stand-alone basis. We expect, in general, to use the BESP for allocating consideration to each
deliverable. In general, the consideration allocated to each unit
of
accounting is then recognized as the related goods or services are delivered, limited to
the consideration that is not contingent upon future deliverables.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">For multiple-element arrangements entered into prior to January 1, 2011 and not materially
modified thereafter, we continue to apply our prior accounting policy with respect to such
arrangements. Under this policy, in general, revenue from non-refundable, upfront fees related to
intellectual property rights/licenses where we have continuing involvement is recognized ratably
over the estimated period of ongoing involvement because there is no objective and reliable
evidence of fair value for any undelivered item to allow the delivered item to be considered a
separate unit of accounting. This requirement with respect to the fair value of undelivered items
was eliminated in the newly issued accounting standard. In general, the consideration with respect
to the other deliverables is recognized when the goods or services are delivered.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Under all of our multiple-element arrangements, consideration associated with at risk
substantive performance milestones is recognized as revenue upon the achievement of the related
milestone, as defined in the respective agreements.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The impact of adopting this new accounting standard is dependent on the terms and conditions
of any future arrangement that we may enter into that includes multiple-deliverables, however, its
adoption is not expected to have a material impact on our consolidated results of operations or
financial position. The primary impact of adopting the new accounting standard is expected to be
the earlier recognition of revenue associated with delivering rights to the underlying intellectual
property.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The adoption of this accounting standard did not have a material impact on our condensed
consolidated results of operations for the three and six months ended June 30, 2011 or
financial position as of June 30, 2011. Our consolidated results
of operations for the year ended December 31, 2010 or financial
position as of December 31, 2010 also would not have been materially impacted if the accounting standard had been
adopted on January 1, 2010.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Inventories</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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. Cost also includes the recently enacted Puerto Rico excise tax related to our
manufacturing operations in Puerto Rico. 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 products’
commercialization.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Property, plant and equipment, net</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Property, plant and equipment is recorded at historical cost, net of accumulated depreciation
and amortization of $5.5 billion and $5.2 billion as of June 30, 2011 and December 31, 2010,
respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Business combinations</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Business combinations are accounted for using the acquisition method of accounting. Under the
acquisition method, assets acquired, including in-process research and development (IPR&D)
projects, and liabilities assumed are recorded at their respective fair values as of the
acquisition date in our condensed consolidated financial statements.
The excess of the fair value of consideration transferred over the fair value of the net assets
acquired is recorded as goodwill. Contingent consideration obligations incurred in connection with
a business combination are recorded at their fair values on the acquisition date. We revalue these
obligations each subsequent reporting period until the related contingencies are resolved and
record changes in their fair values in earnings. See Note 2, Acquisitions and Note 10, Fair value
measurement.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Recent accounting pronouncements</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In May 2011, a new accounting standard was issued that amends certain fair value measurement
principles, clarifies the application of existing fair value measurement requirements and requires
additional disclosures regarding fair value. This new standard is required to be applied
prospectively beginning in 2012. The Company is currently evaluating the effect this new accounting
standard will have on its consolidated financial statements.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In June 2011, a new accounting standard was issued that amends the disclosure requirements for
the presentation of other comprehensive income (OCI) in the financial statements, including the
elimination of the option to present OCI in the statement of stockholders’ equity. OCI and its
components will be required to be presented for both interim and annual periods in a single
financial statement, the statement of comprehensive income, or in two separate but
consecutive financial statements, consisting of a statement of income followed by a separate
statement of OCI. In addition, items that are reclassified from OCI to net income must be presented
on the face of the financial statement(s), if material. This new standard is required to be applied
retrospectively beginning in 2012.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2. Acquisitions</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>BioVex Group, Inc.</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On March 4, 2011, we acquired all of the outstanding stock of BioVex Group, Inc. (BioVex), a
privately held biotechnology company developing treatments for cancer and the prevention of
infectious disease, including
OncoVEX<sup style="font-size: 85%; vertical-align: text-top">GM-CSF</sup> (talimogene laherparepvec), a novel oncolytic vaccine in phase 3
clinical development for the treatment of melanoma and head and neck cancer. This transaction,
which was accounted for as a business combination, provides us with an opportunity to expand our
efforts to bring novel therapeutics to market. Upon its acquisition, BioVex became a wholly owned
subsidiary of Amgen, and accordingly, its operations have been included in our condensed
consolidated financial statements commencing on the acquisition date.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The aggregate acquisition date consideration to acquire BioVex consisted of (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash paid to former shareholders of BioVex
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">407</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of contingent consideration obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">190</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total consideration
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">597</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The cash consideration reflects a reduction in the purchase price related to changes in
working capital and excludes amounts that have been and may be paid to the employees of BioVex who
became Amgen employees upon the acquisition, including $7 million paid to settle unvested employee
options to acquire stock in BioVex which we expensed at the acquisition date.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In connection with this acquisition, we are obligated to make additional payments to the
former shareholders of BioVex of up to $575 million contingent upon the achievement of certain
regulatory and sales milestones with regard to OncoVEX<sup style="font-size: 85%; vertical-align: text-top">GM-CSF</sup>, including the filing of a
Biologics License Application (BLA) with the U.S. Food and Drug Administration (FDA), the first
commercial sale in each of the United States and the European Union
(EU) following receipt of marketing
approval, which includes use of the product in specified patient populations, and upon achieving
specified levels of sales. The estimated aggregate fair value of the contingent consideration
obligations as of the acquisition date of $190 million was determined using a combination of
valuation techniques. The contingent consideration obligations to make regulatory milestone
payments were valued based on assumptions regarding the probability of achieving the milestones and
making the related payments with such amounts discounted to present value. The contingent
consideration obligations to make sales milestone payments were valued based on assumptions
regarding the probability of achieving specified product sales thresholds to determine the required
payments with such amounts discounted to present value.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">We allocated the total consideration to the acquisition date fair values of assets acquired
and liabilities assumed as follows (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets — IPR&D
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">675</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">170</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(246</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets and liabilities acquired, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total consideration
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">597</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Intangible assets are composed of the estimated fair value of acquired IPR&D related to
OncoVEX<sup style="font-size: 85%; vertical-align: text-top">GM-CSF</sup>. The estimated fair value was determined using a probability-weighted
income approach, which discounts expected future cash flows to present value. The estimated net
cash flows were discounted to present value using a discount rate of 11%, which is based on the
estimated weighted average cost of capital for companies with characteristics similar to BioVex.
This is comparable to the estimated internal rate of return on BioVex operations and represents the
rate that market participants would use to value the intangible assets. The projected cash flows
from OncoVEX<sup style="font-size: 85%; vertical-align: text-top">GM-CSF </sup>were based on certain key assumptions, including estimates of future
revenue and expenses taking into account the stage of development of OncoVEX<sup style="font-size: 85%; vertical-align: text-top">GM-CSF </sup>at
the acquisition date, the time and resources needed to complete development and the probabilities
of obtaining marketing approval from the FDA and other regulatory agencies. IPR&D intangible assets
acquired in a business combination are considered to be indefinite-lived until the completion or
abandonment of the associated R&D efforts.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The excess of the acquisition date consideration over the fair values assigned to the assets
acquired and the liabilities assumed of $170 million was recorded as goodwill, which is not
deductible for tax purposes. Goodwill is attributable primarily to the deferred tax consequences of
acquired IPR&D recorded for financial statement purposes.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The amounts recorded for acquired IPR&D intangible assets and tax-related
liabilities are preliminary. The amounts will be finalized upon collection of the appropriate
information with respect to the BioVex intercompany arrangements related to the acquired IPR&D and
the tax impacts thereof.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Other acquisitions</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">During the three months ended June 30, 2011, we acquired the businesses described below which
were accounted for as business combinations, and accordingly, their operations have been included
in our condensed consolidated financial statements commencing on their respective acquisition
dates.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On April 7, 2011, we acquired all of the outstanding stock of Laboratorio Quimico Farmaceutico
Bergamo Ltda (Bergamo), a privately-held Brazilian pharmaceutical company. Upon its acquisition, Bergamo became a wholly owned
subsidiary of Amgen.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On May 16, 2011, we acquired a manufacturing facility in Dun Laoghaire, Ireland from Pfizer
(Dun Laoghaire). Under the terms of the agreement, most staff at the facility became Amgen employees,
and we will manufacture certain products for Pfizer at the facility for an interim period.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On June 15, 2011, we reacquired rights to distribute certain of our products in the Brazilian
pharmaceutical market upon the acquisition of certain business operations from Hypermarcas.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The aggregate acquisition date consideration for these businesses was approximately $453
million, comprised primarily of cash paid to the former owners
of the businesses. The aggregate acquisition date consideration was allocated to: (i) goodwill of
$290 million, (ii) property, plant and equipment of $99
million, (iii) amortizable intangible assets, comprised primarily of licenses to distribute
products and customer contracts of $65 million, and (iv) other liabilities, net of $1 million. The
purchase price allocations for the Bergamo and Hypermarcas transactions are preliminary and will be finalized
upon collection of information regarding the fair values of assets and liabilities acquired. Goodwill resulting from these
acquisitions is primarily attributable to the benefits of immediate, direct access to the Brazilian
pharmaceutical market to expedite our international expansion efforts and geographic diversification to assist in
risk mitigation efforts related to our manufacturing operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Pro forma supplemental condensed consolidated results of operations assuming the acquisitions
of BioVex, Bergamo, Dun Laoghaire and Hypermarcas occurred on January 1, 2010 is not provided as the impact
would not be material to our condensed consolidated results of operations either individually or in
the aggregate.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>3. Income taxes</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The effective tax rates for the three and six months ended June 30, 2011 and 2010 are
different from the statutory rates primarily as a result of indefinitely invested earnings of our
foreign operations. We do not provide for U.S. income taxes on undistributed earnings of our
foreign operations that are intended to be invested indefinitely outside the United States. The
effective tax rates for the three and six months ended June 30, 2011 were further reduced by
foreign tax credits associated with the new Puerto Rico excise tax.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Commencing January 1, 2011, Puerto Rico imposes a temporary excise tax on the purchase of
goods and services from a related manufacturer in Puerto Rico. This excise tax is currently
scheduled to expire in 2016. We account for the excise tax as a manufacturing cost that is
capitalized in inventory and expensed in cost of sales when the related products are sold. For U.S.
income tax purposes, a significant portion of the excise tax results in tax credits that are
recognized in our provision for income taxes when the excise tax is paid. Our effective tax rates
for the three and six months ended June 30, 2011 would have been 18.4% and 18.6%, respectively,
without the impact of the tax credits associated with the new Puerto Rico excise tax.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 years ended on or before December 31, 2006 or to California state income tax
examinations for years ended on or before December 31, 2003.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The Internal Revenue Service (IRS) is currently examining our U.S. income tax returns for the
years ended December 31, 2007, 2008 and 2009. As of June 30, 2011, the Company and the IRS have
agreed to certain transfer pricing adjustments for the year ended December 31, 2009 and the Company
has, accordingly, adjusted its liability for unrecognized tax benefits (UTBs) as discussed below.
The remainder of this examination is expected to be completed in 2012.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">During the three and six months ended June 30, 2011, the gross amount of our UTBs increased by
approximately $70 million and $142 million, respectively, as a result of tax positions taken during
the current year. During the six months ended June 30, 2011, the gross amount of our UTBs decreased
by approximately $201 million as a result of resolving certain transfer pricing matters related to a
prior year. Substantially all of the UTBs as of June 30, 2011, if recognized, would affect our
effective tax rate.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>4. Earnings per share</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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. Dilutive potential
common shares outstanding principally include: shares
that may be issued under our stock option, restricted stock and performance unit awards; our 2011
Convertible Notes while they were outstanding (see Note 8, Financing arrangements) 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
convertible notes are excluded from the calculation of diluted EPS as their impact is always
anti-dilutive.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Upon conversion of our 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 three and six months ended June 30, 2011 and 2010, 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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The computation for basic and diluted EPS was as follows (in millions, except per share data):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="41%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (Numerator):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income for basic and diluted EPS
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,170</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,202</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,295</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,369</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="line-height: 6pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares (Denominator):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average shares for basic EPS
</div></td>
<td> </td>
<td> </td>
<td align="right">927</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">959</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">930</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">970</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Effect of dilutive securities
</div></td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average shares for diluted EPS
</div></td>
<td> </td>
<td> </td>
<td align="right">935</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">964</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">938</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">976</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="line-height: 6pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic EPS
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1.26</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.25</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.47</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.44</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted EPS
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1.25</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.25</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.45</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.43</td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">For the three and six months ended June 30, 2011, there were employee stock options,
calculated on a weighted average basis, to purchase 31 million and 35 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. For the three and six months ended June 30, 2010, there were
employee stock options, calculated on a weighted average basis, to purchase 46 million and 43
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.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>5. Cost savings initiatives</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Manufacturing operations at Fremont, California</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">As part of continuing efforts to optimize our network of manufacturing facilities and improve
cost efficiencies, on January 18, 2011, we entered into an agreement whereby Boehringer Ingelheim
(BI) agreed to acquire all of 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 closed in March 2011. In connection with the closing of this
transaction, BI has assumed our obligations under the facility’s operating lease agreements
and has entered into an agreement to manufacture certain quantities of our marketed product
Vectibix<sup style="font-size: 85%; vertical-align: text-top">®</sup>, for us at this facility through December 31, 2012 (the “supply agreement”).
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 did 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 Condensed Consolidated Balance Sheet.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 fixed 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 during the three months
ended December 31, 2010.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The carrying values of the remaining fixed assets, aggregating approximately $133 million,
were determined to be fully recoverable. However, as a result of this transaction, we reduced the
estimated remaining useful lives of these fixed assets to coincide with the period covered by the
supply agreement. During the three and six months ended June 30, 2011, we recorded incremental
depreciation in excess of what otherwise would have been recorded of approximately $11 million and
$21 million, respectively. These amounts are included in Cost of sales (excludes amortization of
certain acquired intangible assets presented below) in the Condensed Consolidated Statements of
Income. In addition, due to the assignment to BI of the obligations under certain of the facility’s
operating leases, we recorded charges of approximately $12 million and $23 million
during the three and six months ended June 30, 2011, respectively, with respect to the lease period
beyond the end of the supply agreement. These amounts are recorded in Cost of sales (excludes
amortization of certain acquired intangible assets presented below) in the Condensed Consolidated
Statements of Income.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Other</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">As part of continuing efforts to improve cost efficiencies in our manufacturing operations, we
also recorded certain charges aggregating $11 million during the six months ended June 30, 2011
which are included in Other operating expenses in the Condensed Consolidated Statement of Income.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>6. Available-for-sale investments</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values
of available-for-sale investments by type of security were as follows (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="41%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>fair</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Type of security as of June 30, 2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>value</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. Treasury securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,896</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,907</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other government related debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Obligations
of U.S. government agencies and FDIC guaranteed bank debt
</div></td>
<td> </td>
<td> </td>
<td align="right">1,537</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,559</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign and other
</div></td>
<td> </td>
<td> </td>
<td align="right">795</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">812</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Financial
</div></td>
<td> </td>
<td> </td>
<td align="right">2,887</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">61</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,944</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">2,963</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,036</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">342</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage and asset backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,541</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,544</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">5,677</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,677</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other short-term interest bearing securities
</div></td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total debt security investments
</div></td>
<td> </td>
<td> </td>
<td align="right">18,795</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">209</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">18,990</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18,847</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">209</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(19</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">19,037</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="41%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>fair</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Type of security as of December 31, 2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>value</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. Treasury securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,044</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(14</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">5,080</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other government related debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Obligations
of U.S. government agencies and FDIC guaranteed bank debt
</div></td>
<td> </td>
<td> </td>
<td align="right">2,158</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,208</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign and other
</div></td>
<td> </td>
<td> </td>
<td align="right">837</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Financial
</div></td>
<td> </td>
<td> </td>
<td align="right">2,252</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,296</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">2,441</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,507</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">307</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">316</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage and asset backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">841</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">3,030</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,030</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other short-term interest bearing securities
</div></td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total debt security investments
</div></td>
<td> </td>
<td> </td>
<td align="right">17,057</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">256</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(36</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">17,277</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">17,107</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">256</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(38</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">17,325</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The fair values of available-for-sale investments by classification in the Condensed
Consolidated Balance Sheets were as follows (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>    June 30,    </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Classification in the Condensed Consolidated Balance Sheets</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,816</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,142</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marketable securities
</div></td>
<td> </td>
<td> </td>
<td align="right">13,174</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,135</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets — noncurrent
</div></td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">19,037</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,325</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Cash and cash equivalents in the table above excludes cash of $182 million and $145
million as of June 30, 2011 and December 31, 2010, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The fair values of available-for-sale debt security investments by contractual maturity were
as follows (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>    June 30,    </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Contractual maturity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Maturing in one year or less
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,609</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,118</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Maturing after one year through three years
</div></td>
<td> </td>
<td> </td>
<td align="right">6,138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,736</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Maturing after three years through five years
</div></td>
<td> </td>
<td> </td>
<td align="right">5,168</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,812</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Maturing after five years
</div></td>
<td> </td>
<td> </td>
<td align="right">1,075</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">611</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total debt security investments
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18,990</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,277</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">For the three months ended June 30, 2011 and 2010, realized gains totaled $48 million and
$36 million, respectively, and realized losses totaled $5 million and $2 million, respectively. For
the six months ended June 30, 2011 and 2010, realized gains totaled $137 million and $58 million,
respectively, and realized losses totaled $13 million and $3 million, respectively. The cost of
securities sold is based on the specific identification method.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">We review our available-for-sale investments for other-than-temporary declines in fair value
below our cost basis each quarter 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 June 30, 2011 and December 31, 2010, we believe the cost
bases for our available-for-sale investments were recoverable in all material respects.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:InventoryDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>7. Inventories</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Inventories consisted of the following (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>    June 30,    </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Raw materials
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">128</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Work in process
</div></td>
<td> </td>
<td> </td>
<td align="right">1,553</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,382</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Finished goods
</div></td>
<td> </td>
<td> </td>
<td align="right">520</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">512</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,230</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,022</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>8. Financing arrangements</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The carrying values and the fixed contractual coupon rates of our borrowings under our various
financing arrangements were as follows (dollar amounts in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>    June 30,    </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">0.125% convertible notes due 2011 (2011 Convertible Notes)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,488</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">0.375% convertible notes due 2013 (2013 Convertible Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">2,279</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,213</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">5.65% notes due 2042 (2042 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,244</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.85% notes due 2017 (2017 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,099</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,099</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">4.85% notes due 2014 (2014 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.70% notes due 2019 (2019 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">998</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">998</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">4.10% notes due 2021 (2021 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">997</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">6.40% notes due 2039 (2039 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">996</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">996</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">6.375% notes due 2037 (2037 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">899</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">899</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">3.45% notes due October 2020 (October 2020 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">897</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">897</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2.30% notes due 2016 (2016 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">748</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.75% notes due 2040 (2040 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">697</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">696</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">4.95% notes due 2041 (2041 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">595</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">595</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">6.15% notes due 2018 (2018 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">499</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">499</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">6.90% notes due 2038 (2038 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">499</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">499</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">4.50% notes due March 2020 (March 2020 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">300</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">300</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other notes including our zero coupon convertible notes
</div></td>
<td> </td>
<td> </td>
<td align="right">183</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">183</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total borrowings
</div></td>
<td> </td>
<td> </td>
<td align="right">13,930</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,362</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less current portion
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(83</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,488</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total non-current debt
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13,847</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,874</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The holders of our zero coupon convertible notes due in 2032 have the right to put the
debt to us for repayment on March 1, 2012. Accordingly the debt is classified as a current
liability as of June 30, 2011.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Debt repayments</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In February 2011, the 2011 Convertible Notes became due, and we repaid the $2.5 billion
aggregate principal amount. As these convertible notes were cash settleable, the debt and equity
components of these notes were bifurcated and accounted for separately. The discounted carrying
value of the debt component resulting from the bifurcation was accreted back to the principal
amount over the period the notes were outstanding. The total aggregate amount repaid, including the
amount related to the debt discount of $643 million resulting from the bifurcation, is included in
Cash flows from financing activities in the Condensed Consolidated Statement of Cash Flows.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Warrants to acquire approximately 31.3 million shares of our common stock that were issued
concurrent with the issuance of the 2011 Convertible Notes expired in May 2011.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Debt issuances</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In June 2011, we issued $750 million principal amount of notes due in 2016 (the 2016 Notes),
$1.0 billion principal amount of notes due in 2021 (the 2021 Notes) and $1.25 billion principal
amount of notes due in 2042 (the 2042 Notes) in a registered offering. The 2016 Notes, 2021 Notes
and 2042 Notes pay interest at fixed annual rates of 2.30%, 4.10% and 5.65%, respectively. These
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 all or a
portion of these notes at a price equal to 101% of the principal amount of the notes plus accrued
interest. Debt issuance costs incurred in connection with the issuance of this debt totaling
approximately $17 million are being amortized over the respective lives of the notes, and the
related charge is included in Interest expense, net in the Condensed Consolidated Statements of
Income.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Shelf registration statement</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In March 2011, we filed a shelf registration statement with the U.S. Securities and Exchange
Commission (SEC) to replace an existing shelf registration statement that was scheduled to expire
in April 2011. This shelf registration 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 March 2014.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:StockholdersEquityNoteDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>9. Stockholders’ equity</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Stock repurchase program</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Activity under our stock repurchase program was as follows (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="41%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Dollars</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Dollars</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">First quarter
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,684</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Second quarter
</div></td>
<td> </td>
<td> </td>
<td align="right">12.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">616</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">12.9</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,300</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In December 2009, the Board of Directors authorized us to repurchase up to $5.0 billion
of our common stock and in April 2011, the Board of Directors authorized us to repurchase up to an
additional $5.0 billion of our common stock. A total of $6.4 billion remains available as of June
30, 2011.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>10. Fair value measurement</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="88%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Level 1
</div></td>
<td> </td>
<td align="left" valign="top">—
</td>
<td> </td>
<td align="left" valign="top">Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company
has the ability to access</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td valign="top">
<div style="margin-left:0px; text-indent:-0px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Level 2
</div></td>
<td> </td>
<td align="left" valign="top">—
</td>
<td> </td>
<td align="left" valign="top">Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td valign="top">
<div style="margin-left:0px; text-indent:-0px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Level 3
</div></td>
<td> </td>
<td align="left" valign="top">—
</td>
<td> </td>
<td align="left" valign="top">Valuations based on inputs that are unobservable and significant to the overall fair value measurement</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The
fair value of each major class of the Company’s
financial assets and liabilities measured at fair value on a
recurring basis was as follows (in
millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="45%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quoted prices in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>active markets for</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>other observable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unobservable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left"><b>Fair value measurement</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>identical assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left" style="border-bottom: 1px solid #000000"><b>as of
June 30, 2011 using:</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Available-for-sale securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">U.S. Treasury securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,907</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,907</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other government related debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Obligations of U.S. government agencies
and FDIC guaranteed bank debt
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,559</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,559</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Foreign and other
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">812</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">812</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Financial
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,944</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,944</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,036</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,036</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Mortgage and asset backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,544</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,544</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">5,677</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,677</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other short-term interest bearing securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:75px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,631</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,688</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,319</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="line-height: 6pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">170</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">170</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Contingent consideration obligations in
connection with a business combination
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">192</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">192</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:75px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">170</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">192</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">362</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td width="45%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quoted prices in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>active markets for</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>  other observable  </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>      unobservable      </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left"><b>Fair value measurement</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>identical assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left" style="border-bottom: 1px solid #000000"><b>as of
December 31, 2010 using:</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>             Total             </b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Available-for-sale securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">U.S. Treasury securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,080</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,080</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other government related debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Obligations of U.S. government agencies
and FDIC guaranteed bank debt
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,208</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,208</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Foreign and other
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Financial
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,296</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,296</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,507</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,507</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">316</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">316</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Mortgage and asset backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">841</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">3,030</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,030</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other short-term interest bearing securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">195</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">195</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:75px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,158</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,516</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,674</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="font-size: 6pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:75px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">We value our other short-term interest bearing securities at amortized cost which approximates
fair value given their near term maturity dates.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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, London Interbank Offered Rate (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 June
30, 2011 and December 31, 2010, we had open foreign currency forward contracts with notional
amounts of $3.7 billion and $3.2 billion, respectively, and open foreign currency option contracts
with notional amounts of $232 million and $398 million, respectively, that were primarily
euro based and were designated as cash flow hedges. In addition, as of June 30, 2011 and December
31, 2010, we had $972 million and $670 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 11, Derivative instruments.)
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 as of June 30, 2011 and December 31, 2010 that were designated as fair value
hedges. (See Note 11, Derivative instruments.)
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Contingent consideration obligations in connection with a business combination were incurred
as a result of our acquisition of BioVex in March 2011. The fair value measurements of these obligations are based on significant unobservable inputs, and accordingly, such
amounts are considered Level 3 measurements. The fair values of these obligations from the
acquisition date through June 30, 2011 increased by $2 million, and the resulting expense was
recorded in Other operating expenses in the Condensed Consolidated
Statements of Income. For a description of the valuation methodology and related
assumptions used to estimate the fair values of these obligations, see Note
2, Acquisitions.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 six months ended June 30,
2011 and 2010 of assets and liabilities that are not measured at fair value on a recurring basis.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Summary of the fair value of other financial instruments</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%"><i>Short-term assets and liabilities</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%"><i>Borrowings</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 value 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 Condensed 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). As of June 30, 2011 and
December 31, 2010, the aggregate fair value of our debt was $15.2 billion and $14.5 billion,
respectively, and the carrying value was $13.9 billion and $13.4 billion, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>11. Derivative instruments</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">We recognize all of our derivative instruments as either assets or liabilities at fair value
in the Condensed Consolidated Balance Sheets (see Note 10, 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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Cash flow hedges</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 June 30, 2011 and December 31, 2010, we had open foreign currency forward contracts
with notional amounts of $3.7 billion and $3.2 billion, respectively, and open foreign currency
option contracts with notional amounts of $232 million and $398 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 Accumulated Other Comprehensive Income (AOCI) in the Condensed
Consolidated Balance Sheets and reclassified to earnings in the same periods during which the
hedged transactions affect earnings.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 reported in AOCI and amortized into earnings over the lives of the associated debt
issuances.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The effective portion of the unrealized gain/(loss) recognized in OCI for our cash flow hedge
contracts was as follows (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="50%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivatives in cash flow hedging relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">224</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(218</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">399</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forward interest rate contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">224</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(218</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">399</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The location in the Condensed Consolidated Statements of Income and the effective portion
of the loss reclassified from AOCI into earnings for our cash flow hedge contracts was as follows
(in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="27%"> </td>
<td width="3%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivatives in cash flow hedging relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Statements of Income location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">Product sales</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(33</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">21</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(41</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">15</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forward interest rate contracts
</div></td>
<td> </td>
<td align="left" valign="top">Interest expense, net</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(33</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">21</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(41</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">15</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: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 both the three and six months ended June 30, 2011. The ineffective portions
of these hedging instruments were approximately $1 million of income for both the three and six
months ended June 30, 2010. As of June 30, 2011, the amounts expected to be reclassified from AOCI
into earnings over the next 12 months are approximately $96 million of losses on foreign currency
forward and option contracts and approximately $1 million of losses on forward interest rate
contracts.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Fair value hedges</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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 as of June 30,
2011 and December 31, 2010, respectively. The interest rate swap agreements as of June 30, 2011 and
December 31, 2010 were for our notes due in 2014, 2017, 2018 and 2019. 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 three and six
months ended June 30, 2011, we included the unrealized losses on the hedged debt of $84 million and
$37 million, respectively, in the same line item, Interest expense, net in the Condensed
Consolidated Statements of Income, as the offsetting unrealized gains of $84 million and $37
million, respectively, on the related interest rate swap agreements. For the three and six months
ended June 30, 2010, we included the unrealized losses on the hedged debt of $107 million and $124
million, respectively, in the same line item, Interest expense, net in the Condensed Consolidated
Statements of Income, as the offsetting unrealized gains of $107 million and $124 million,
respectively, on the related interest rate swap agreements.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Derivatives not designated as hedges</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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
June 30, 2011 and December 31, 2010, the total notional amounts of these foreign currency forward
contracts, primarily euro based, were $972 million and $670 million, respectively.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The location in the Condensed Consolidated Statements of Income and the amount of gain/(loss)
recognized in earnings for the derivative instruments not designated as hedging instruments were as
follows (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="27%"> </td>
<td width="3%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="center"><b>Derivatives not designated as</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>hedging instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Statements of Income location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">Interest and other income, net.</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(9</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">53</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(60</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">76</td>
<td></td>
</tr>
<tr style="font-size: 1px" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The fair values of both derivatives designated as hedging instruments and not designated
as hedging instruments included in the Condensed Consolidated Balance Sheets were as follows (in
millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="39%"> </td>
<td width="5%"> </td>
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Derivative assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Derivative liabilities</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>June 30, 2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair value</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging
instruments:</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Other current assets/Other
non-current assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Accrued liabilities/Other
non-current liabilities
</div></td>
<td> </td>
<td align="left" valign="bottom">$</td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Other current assets/Other
non-current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Accrued
liabilities/Other non-current liabilities
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">170</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivatives designated as hedging
instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td align="right">282</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">170</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as hedging
instruments:</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other current assets</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Accrued liabilities</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivatives not designated as
hedging instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total derivatives
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">$</td>
<td align="right">282</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">170</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="39%"> </td>
<td width="5%"> </td>
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Derivative assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Derivative liabilities</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>December 31, 2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair value</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging
instruments:</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Other
current assets/Other non-current assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">195</td>
<td> </td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Accrued
liabilities/Other non-current liabilities
</div></td>
<td> </td>
<td align="left" valign="bottom">$</td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Other current assets/Other
non-current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td> </td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Accrued liabilities/Other
non-current liabilities
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td align="right" valign="bottom">103</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivatives designated as hedging
instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td align="right">349</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">103</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as hedging
instruments:</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other current assets</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Accrued liabilities</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivatives not designated as
hedging instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total derivatives
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">$</td>
<td align="right">349</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">103</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Our derivative contracts that were in a liability position as of June 30, 2011 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.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The cash flow effects of our derivatives contracts are included within Net cash provided by
operating activities in the Condensed Consolidated Statements of Cash Flows.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>12. Contingencies and commitments</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In the ordinary course of business, we are involved in various legal proceedings and other
matters, including those discussed in this Note, that are complex in nature and have outcomes that
are difficult to predict. See Note 19, Contingencies and commitments to our consolidated financial
statements in our Annual Report on Form 10-K for the year ended December 31, 2010, and Note 12,
Contingencies and commitments to our condensed consolidated financial statements in our Quarterly
Report on Form 10-Q for the period ended March 31, 2011, for further discussion of certain of our
legal proceedings and other matters.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
We evaluate, on a quarterly basis, developments in legal proceedings and other matters that could
cause an increase or decrease in the amount of the liability that has been accrued previously. Our
legal proceedings range from cases brought by a single plaintiff to a class action with thousands
of putative class members. These legal proceedings, as well as other matters, involve various
aspects of our business and a variety of claims (including but not limited to patent infringement,
marketing, pricing and trade practices and securities law), some of which present novel factual
allegations and/or unique legal theories. In each of the matters currently pending against us,
plaintiffs seek a not-yet-quantified amount of damages. In addition, a number of the matters
pending against us are at very early stages of the legal process (which in complex proceedings of
the sort faced by us often extend for several years). As a result, none of these pending matters
has yet progressed sufficiently through discovery and/or development of important factual
information and legal issues to enable us to estimate a range of possible loss. While it is not
possible to accurately predict or determine the eventual outcomes 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.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Certain of our legal proceedings and other matters are discussed below:
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Teva Matters</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%"><i>Teva v. Amgen, the ‘603 Patent Litigation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On June 29, 2011, Amgen filed a motion for summary judgment requesting entry of judgment of
non-infringement of Teva’s U.S. Patent No. 7,449,603 and dismissal of the claims of Teva
Pharmaceutical Industries Ltd. (Teva Ltd.) with prejudice. On July 18, 2011, in response to the
parties’ joint request for a stipulated dismissal, the U.S. District Court for the Eastern District
of Pennsylvania (the Pennsylvania District Court) dismissed Teva Ltd.’s claims with prejudice and
dismissed Amgen’s claims without prejudice.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%"><i>Teva v. Amgen, the G-CSF Patent Litigation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On July 15, 2011, pursuant to a joint stipulation and settlement agreement between the
parties, the Pennsylvania District Court entered final judgment and a permanent injunction against
Teva Ltd. and Teva Pharmaceuticals USA, Inc. (Teva USA and, together with Teva Ltd., Teva)
prohibiting them from infringing Amgen’s U.S. Patent Nos. 5,580,755 and 5,582,823 relating to human
G-CSF and methods for its use. The judgment was accompanied by Teva’s admission and an order from
the Pennsylvania District Court that Neutroval<sup style="font-size: 85%; vertical-align: text-top">™</sup> (a recombinant form of human G-CSF)
infringes the two Amgen patents at issue in the litigation and that those patents are valid and
enforceable. The Pennsylvania District Court’s injunction extends until November 10, 2013, after
which date Teva may sell Neutroval<sup style="font-size: 85%; vertical-align: text-top">™</sup> in the United States. Teva has also agreed not to
sell another of its G-CSF product candidates, Neugranin, until November 10, 2013, unless Teva first
obtains a final court decision that Amgen’s patents are not infringed by Neugranin. Pursuant to the
parties’ agreement, the launch date for either product could be sooner if certain unexpected events
occur: if a third party launches a similar G-CSF product and Amgen fails to file suit against that
third party or if the patents are held invalid or unenforceable in a final court decision in an
action brought by a third party. The settlement terms do not include any financial payments between
the parties. The two patents at issue expire in early December 2013.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Average Wholesale Price Litigation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%"><i>In re: Pharmaceutical Industry Average Wholesale Price Litigation MDL No. 1456</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Approval hearings on a proposed settlement were held in the U.S. District Court for the
District of Massachusetts (Massachusetts District Court) on June 13, 2011, and again on July 7,
2011. However, following the July 7 hearing the Massachusetts District Court did not grant
approval to the settlement but instead scheduled another final approval hearing for August 8, 2011.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%"><i>State of Louisiana v. Abbott Laboratories, Inc., et al.</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On May 12, 2011, Amgen and the other defendants filed joint exceptions seeking to dismiss the
complaint.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Birch v. Sharer, et al.</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The briefing schedule for the appeal has been set by the California State Appellate Court and
plaintiff’s opening brief is due August 19, 2011. No date has been set for oral argument.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Qui Tam Actions</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%"><i>U.S. ex rel. Westmoreland v. Amgen, et al.</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On July 22, 2011, the U.S. Court of Appeals for the First Circuit issued a written decision
reversing the Massachusetts District Court’s dismissal of the claims of the states of California,
Illinois, Indiana, Massachusetts, New Mexico, and New York and affirming the dismissal of the
claims of Georgia.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%"><i>U.S. ex rel. Streck v. Allergan, et al.</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">A complaint filed in the Pennsylvania District Court against Amgen and numerous other
pharmaceutical manufacturers, pursuant to the Qui Tam provisions of the Federal Civil False Claims
Act and on behalf of 24 named states and the District of Columbia under their respective State
False Claims Acts, was unsealed and became public on or about June 6, 2011. The plaintiff, Ronald
Streck, alleges that from 2004 to the present, defendants failed to report accurate pricing data to
Medicare and Medicaid, including data used to calculate average sales price and average
manufacturer’s price, thereby causing the federal and state governments to reimburse defendants at
inflated rates and causing the manufacturers to underpay Medicaid rebates. The federal government
has declined to intervene in the matter.
</div>
<div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Warren General Hospital v. Amgen</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On June 14, 2011, the U.S. Court of Appeals for the Third Circuit (Third Circuit Court)
affirmed the U.S. District Court for the District of New Jersey’s decision to grant Amgen’s motion
to dismiss. The plaintiffs have until September 12, 2011, to appeal the Third Circuit Court’s
decision.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:SubsequentEventsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>13. Subsequent events</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">On
July 28, 2011, the Board of Directors declared a quarterly cash dividend of $0.28 per share of
common stock. This dividend will be paid on September 8, 2011 to all stockholders of record as of
the close of business on August 18, 2011.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table1 - amgn:NatureOfOperationsPolicyTextBlock-->
<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Business</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table2 - amgn:BasisOfPresentationPolicyTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Basis of presentation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The financial information for the three and six months ended June 30, 2011 and 2010 is
unaudited but includes all adjustments (consisting of only normal recurring adjustments, unless
otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed
consolidated results of operations for those periods. Interim results are not necessarily
indicative of results for the full fiscal year.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The condensed consolidated financial statements should be read in conjunction with our
consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K
for the year ended December 31, 2010 and our Quarterly Report on
Form 10-Q for the period
ended March 31, 2011.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table3 - us-gaap:ConsolidationPolicyTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Principles of consolidation</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The condensed 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.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table4 - us-gaap:UseOfEstimates-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Use of estimates</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The
preparation of condensed consolidated financial statements in conformity with accounting
principles generally accepted in the United States (GAAP) requires management to make estimates and
assumptions that affect the amounts reported in the condensed consolidated financial statements and
accompanying notes. Actual results may differ from those estimates.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table5 - us-gaap:RevenueRecognitionMultipleElementArrangements-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Revenue recognition for arrangements with multiple-deliverables</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">From time to time, we enter into arrangements for the research and development (R&D),
manufacture and/or commercialization of products and product candidates. These arrangements may
require us to deliver various rights, services and/or goods across the entire life cycle of a
product or product candidate, including (i) intellectual
property rights/licenses, (ii) R&D
services, (iii) manufacturing services and/or (iv) commercialization services. The underlying terms
of these arrangements generally provide for consideration to Amgen in the form of non-refundable
upfront license payments, R&D and commercial performance milestone payments, cost sharing and/or
royalty payments.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In October 2009, a new accounting standard
was issued that amends the guidance on the accounting for arrangements involving the delivery of more than
one element. This standard addresses the determination of the unit(s) of accounting for
multiple-element arrangements and how the arrangement’s consideration should be allocated to each
unit of accounting. The Company adopted this new accounting standard on a prospective basis for all
multiple-element arrangements entered into on or after January 1, 2011 and for any multiple-element
arrangements that were entered into prior to January 1, 2011 but materially modified on or after
January 1, 2011.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Pursuant to the new standard, each required deliverable is evaluated to determine if it
qualifies as a separate unit of accounting. For Amgen this determination is generally based on
whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration is
then allocated to each separate unit of accounting based on the relative selling price of each
deliverable. The estimated selling price of each deliverable is determined using the following
hierarchy of values: (i) vendor-specific objective evidence of fair value, (ii) third-party
evidence of selling price, and (iii) best estimate of selling price (BESP). The BESP reflects our
best estimate of what the selling price would be if the deliverable was regularly sold by us on a
stand-alone basis. We expect, in general, to use the BESP for allocating consideration to each
deliverable. In general, the consideration allocated to each unit
of
accounting is then recognized as the related goods or services are delivered, limited to
the consideration that is not contingent upon future deliverables.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">For multiple-element arrangements entered into prior to January 1, 2011 and not materially
modified thereafter, we continue to apply our prior accounting policy with respect to such
arrangements. Under this policy, in general, revenue from non-refundable, upfront fees related to
intellectual property rights/licenses where we have continuing involvement is recognized ratably
over the estimated period of ongoing involvement because there is no objective and reliable
evidence of fair value for any undelivered item to allow the delivered item to be considered a
separate unit of accounting. This requirement with respect to the fair value of undelivered items
was eliminated in the newly issued accounting standard. In general, the consideration with respect
to the other deliverables is recognized when the goods or services are delivered.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Under all of our multiple-element arrangements, consideration associated with at risk
substantive performance milestones is recognized as revenue upon the achievement of the related
milestone, as defined in the respective agreements.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The impact of adopting this new accounting standard is dependent on the terms and conditions
of any future arrangement that we may enter into that includes multiple-deliverables, however, its
adoption is not expected to have a material impact on our consolidated results of operations or
financial position. The primary impact of adopting the new accounting standard is expected to be
the earlier recognition of revenue associated with delivering rights to the underlying intellectual
property.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The adoption of this accounting standard did not have a material impact on our condensed
consolidated results of operations for the three and six months ended June 30, 2011 or
financial position as of June 30, 2011. Our consolidated results
of operations for the year ended December 31, 2010 or financial
position as of December 31, 2010 also would not have been materially impacted if the accounting standard had been
adopted on January 1, 2010.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table6 - us-gaap:InventoryPolicyTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Inventories</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">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. Cost also includes the recently enacted Puerto Rico excise tax related to our
manufacturing operations in Puerto Rico. 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 products’
commercialization.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table7 - us-gaap:PropertyPlantAndEquipmentPolicyTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Property, plant and equipment, net</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Property, plant and equipment is recorded at historical cost, net of accumulated depreciation
and amortization of $5.5 billion and $5.2 billion as of June 30, 2011 and December 31, 2010,
respectively.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table8 - us-gaap:BusinessCombinationsPolicy-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Business combinations</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">Business combinations are accounted for using the acquisition method of accounting. Under the
acquisition method, assets acquired, including in-process research and development (IPR&D)
projects, and liabilities assumed are recorded at their respective fair values as of the
acquisition date in our condensed consolidated financial statements.
The excess of the fair value of consideration transferred over the fair value of the net assets
acquired is recorded as goodwill. Contingent consideration obligations incurred in connection with
a business combination are recorded at their fair values on the acquisition date. We revalue these
obligations each subsequent reporting period until the related contingencies are resolved and
record changes in their fair values in earnings. See Note 2, Acquisitions and Note 10, Fair value
measurement.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Accounting Policy: amgn-20110630_note1_accounting_policy_table9 - amgn:RecentAccountingPronouncementPolicyTextBlock-->
<div align="center" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Recent accounting pronouncements</i>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In May 2011, a new accounting standard was issued that amends certain fair value measurement
principles, clarifies the application of existing fair value measurement requirements and requires
additional disclosures regarding fair value. This new standard is required to be applied
prospectively beginning in 2012. The Company is currently evaluating the effect this new accounting
standard will have on its consolidated financial statements.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">In June 2011, a new accounting standard was issued that amends the disclosure requirements for
the presentation of other comprehensive income (OCI) in the financial statements, including the
elimination of the option to present OCI in the statement of stockholders’ equity. OCI and its
components will be required to be presented for both interim and annual periods in a single
financial statement, the statement of comprehensive income, or in two separate but
consecutive financial statements, consisting of a statement of income followed by a separate
statement of OCI. In addition, items that are reclassified from OCI to net income must be presented
on the face of the financial statement(s), if material. This new standard is required to be applied
retrospectively beginning in 2012.
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note2_table1 - amgn:BusinessAcquisitionCostOfAcquiredEntityTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash paid to former shareholders of BioVex
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">407</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of contingent consideration obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">190</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total consideration
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">597</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note2_table2 - us-gaap:ScheduleOfPurchasePriceAllocationTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets — IPR&D
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">675</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">170</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(246</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets and liabilities acquired, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total consideration
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">597</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note4_table1 - us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="41%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (Numerator):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income for basic and diluted EPS
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,170</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,202</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,295</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,369</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="line-height: 6pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares (Denominator):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average shares for basic EPS
</div></td>
<td> </td>
<td> </td>
<td align="right">927</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">959</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">930</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">970</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Effect of dilutive securities
</div></td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average shares for diluted EPS
</div></td>
<td> </td>
<td> </td>
<td align="right">935</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">964</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">938</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">976</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="line-height: 6pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic EPS
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1.26</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.25</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.47</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.44</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted EPS
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1.25</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.25</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.45</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.43</td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note6_table1 - us-gaap:AvailableForSaleSecuritiesTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="41%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>fair</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Type of security as of June 30, 2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>value</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. Treasury securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,896</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,907</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other government related debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Obligations
of U.S. government agencies and FDIC guaranteed bank debt
</div></td>
<td> </td>
<td> </td>
<td align="right">1,537</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,559</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign and other
</div></td>
<td> </td>
<td> </td>
<td align="right">795</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">812</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Financial
</div></td>
<td> </td>
<td> </td>
<td align="right">2,887</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">61</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,944</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">2,963</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,036</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">342</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage and asset backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,541</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,544</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">5,677</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,677</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other short-term interest bearing securities
</div></td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total debt security investments
</div></td>
<td> </td>
<td> </td>
<td align="right">18,795</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">209</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">18,990</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18,847</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">209</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(19</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">19,037</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="41%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>fair</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Type of security as of December 31, 2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>value</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. Treasury securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,044</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(14</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">5,080</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other government related debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Obligations
of U.S. government agencies and FDIC guaranteed bank debt
</div></td>
<td> </td>
<td> </td>
<td align="right">2,158</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,208</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign and other
</div></td>
<td> </td>
<td> </td>
<td align="right">837</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Financial
</div></td>
<td> </td>
<td> </td>
<td align="right">2,252</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,296</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">2,441</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,507</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">307</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">316</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage and asset backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">841</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">3,030</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,030</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other short-term interest bearing securities
</div></td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total debt security investments
</div></td>
<td> </td>
<td> </td>
<td align="right">17,057</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">256</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(36</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">17,277</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">17,107</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">256</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(38</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">17,325</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note6_table2 - amgn:FairValuesOfAvailableForSaleInvestmentsByClassificationInConsolidatedBalanceSheetsTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>    June 30,    </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Classification in the Condensed Consolidated Balance Sheets</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,816</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,142</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marketable securities
</div></td>
<td> </td>
<td> </td>
<td align="right">13,174</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,135</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets — noncurrent
</div></td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">19,037</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,325</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note6_table3 - us-gaap:InvestmentsClassifiedByContractualMaturityDateTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>    June 30,    </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Contractual maturity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Maturing in one year or less
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,609</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,118</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Maturing after one year through three years
</div></td>
<td> </td>
<td> </td>
<td align="right">6,138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,736</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Maturing after three years through five years
</div></td>
<td> </td>
<td> </td>
<td align="right">5,168</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,812</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Maturing after five years
</div></td>
<td> </td>
<td> </td>
<td align="right">1,075</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">611</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total debt security investments
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18,990</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,277</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note7_table1 - us-gaap:ScheduleOfInventoryCurrentTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>    June 30,    </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Raw materials
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">128</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Work in process
</div></td>
<td> </td>
<td> </td>
<td align="right">1,553</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,382</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Finished goods
</div></td>
<td> </td>
<td> </td>
<td align="right">520</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">512</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,230</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,022</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note8_table1 - us-gaap:ScheduleOfDebtInstrumentsTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>    June 30,    </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">0.125% convertible notes due 2011 (2011 Convertible Notes)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,488</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">0.375% convertible notes due 2013 (2013 Convertible Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">2,279</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,213</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">5.65% notes due 2042 (2042 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,244</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.85% notes due 2017 (2017 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,099</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,099</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">4.85% notes due 2014 (2014 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.70% notes due 2019 (2019 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">998</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">998</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">4.10% notes due 2021 (2021 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">997</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">6.40% notes due 2039 (2039 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">996</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">996</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">6.375% notes due 2037 (2037 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">899</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">899</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">3.45% notes due October 2020 (October 2020 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">897</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">897</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2.30% notes due 2016 (2016 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">748</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">5.75% notes due 2040 (2040 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">697</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">696</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">4.95% notes due 2041 (2041 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">595</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">595</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">6.15% notes due 2018 (2018 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">499</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">499</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">6.90% notes due 2038 (2038 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">499</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">499</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">4.50% notes due March 2020 (March 2020 Notes)
</div></td>
<td> </td>
<td> </td>
<td align="right">300</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">300</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other notes including our zero coupon convertible notes
</div></td>
<td> </td>
<td> </td>
<td align="right">183</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">183</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total borrowings
</div></td>
<td> </td>
<td> </td>
<td align="right">13,930</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,362</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less current portion
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(83</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,488</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total non-current debt
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13,847</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,874</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note9_table1 - amgn:StockRepurchaseProgramTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="41%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Dollars</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Dollars</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">First quarter
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,684</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Second quarter
</div></td>
<td> </td>
<td> </td>
<td align="right">12.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">616</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">12.9</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,300</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note10_table1 - us-gaap:ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="45%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quoted prices in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>active markets for</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>other observable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>unobservable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left"><b>Fair value measurement</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>identical assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left" style="border-bottom: 1px solid #000000"><b>as of
June 30, 2011 using:</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Available-for-sale securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">U.S. Treasury securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,907</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,907</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other government related debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Obligations of U.S. government agencies
and FDIC guaranteed bank debt
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,559</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,559</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Foreign and other
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">812</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">812</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Financial
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,944</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,944</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,036</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,036</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Mortgage and asset backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,544</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,544</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">5,677</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,677</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other short-term interest bearing securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:75px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,631</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,688</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,319</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="line-height: 6pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">170</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">170</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Contingent consideration obligations in
connection with a business combination
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">192</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">192</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:75px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">170</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">192</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">362</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td width="45%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quoted prices in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>active markets for</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>  other observable  </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>      unobservable      </b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left"><b>Fair value measurement</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>identical assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td align="left" style="border-bottom: 1px solid #000000"><b>as of
December 31, 2010 using:</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>             Total             </b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Available-for-sale securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">U.S. Treasury securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,080</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,080</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other government related debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Obligations of U.S. government agencies
and FDIC guaranteed bank debt
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,208</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,208</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Foreign and other
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Corporate debt securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Financial
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,296</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,296</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Industrial
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,507</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,507</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">316</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">316</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Mortgage and asset backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">841</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">3,030</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,030</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other short-term interest bearing securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">195</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">195</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:75px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,158</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,516</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,674</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="font-size: 6pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:75px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">103</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note11_table1 - us-gaap:ScheduleOfDerivativeInstrumentsEffectOnOtherComprehensiveIncomeLossTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="50%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivatives in cash flow hedging relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">224</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(218</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">399</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forward interest rate contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">224</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(218</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">399</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note11_table2 - amgn:StatementsOfIncomeAndEffectivePortionOfGainLossReclassifiedFromAccumulatedOtherComprehensiveIncomeIntoIncomeForOurCashFlowHedgeContractsTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="27%"> </td>
<td width="3%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivatives in cash flow hedging relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Statements of Income location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">Product sales</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(33</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">21</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(41</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">15</td>
<td></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forward interest rate contracts
</div></td>
<td> </td>
<td align="left" valign="top">Interest expense, net</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(33</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">21</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(41</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">15</td>
<td></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note11_table3 - amgn:StatementsOfIncomeAndAmountOfGainRecognizedInIncomeForDerivativeInstrumentsNotDesignatedAsHedgingInstrumentsTableTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="27%"> </td>
<td width="3%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="center"><b>Derivatives not designated as</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>hedging instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Statements of Income location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">Interest and other income, net.</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(9</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">53</td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(60</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">76</td>
<td></td>
</tr>
<tr style="font-size: 1px" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000"> </td>
<td></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: amgn-20110630_note11_table4 - us-gaap:ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock-->
<div align="justify" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif">
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="39%"> </td>
<td width="5%"> </td>
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Derivative assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Derivative liabilities</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>June 30, 2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair value</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging
instruments:</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Other current assets/Other
non-current assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Accrued liabilities/Other
non-current liabilities
</div></td>
<td> </td>
<td align="left" valign="bottom">$</td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Other current assets/Other
non-current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Accrued
liabilities/Other non-current liabilities
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">170</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivatives designated as hedging
instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td align="right">282</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">170</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as hedging
instruments:</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other current assets</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Accrued liabilities</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivatives not designated as
hedging instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total derivatives
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">$</td>
<td align="right">282</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">170</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="39%"> </td>
<td width="5%"> </td>
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Derivative assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Derivative liabilities</b></td>
<td></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>December 31, 2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair value</b></td>
<td></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging
instruments:</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Other
current assets/Other non-current assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">195</td>
<td> </td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Accrued
liabilities/Other non-current liabilities
</div></td>
<td> </td>
<td align="left" valign="bottom">$</td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Other current assets/Other
non-current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td> </td>
<td> </td>
<td align="left" valign="top">
<div style="margin-left:15px; text-indent:-15px">Accrued liabilities/Other
non-current liabilities
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td align="right" valign="bottom">103</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivatives designated as hedging
instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td align="right">349</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">103</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as hedging
instruments:</b>
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other current assets</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Accrued liabilities</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivatives not designated as
hedging instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total derivatives
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">$</td>
<td align="right">349</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">103</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
147000000
73000000
147000000
73000000
611000000
1075000000
0.11
7000000
-2000000
-1000000
192000000
0
0
192000000
133000000
1061000000
553000000
1166000000
602000000
0.186
0.184
21000000
11000000
6736000000
6138000000
5812000000
5168000000
23000000
12000000
11000000
2488000000
2488000000
83000000
0
183000000
183000000
1.01
1.01
1.01
1085011
1684000000
2300000000
616000000
0
732000000
732000000
31300000
false
--12-31
Q2
2011
2011-06-30
10-Q
0000318154
924091356
Yes
Large Accelerated Filer
50355022164
AMGEN INC
No
Yes
716000000
870000000
2335000000
2713000000
3366000000
3629000000
5200000000
5500000000
153000000
45000000
43000000
46000000
35000000
31000000
43486000000
46936000000
23129000000
25481000000
17674000000
9516000000
0
8158000000
19319000000
8631000000
0
10688000000
17107000000
837000000
2158000000
5044000000
17057000000
841000000
2441000000
2252000000
50000000
147000000
3030000000
307000000
18847000000
795000000
1537000000
52000000
157000000
2963000000
2887000000
2896000000
1541000000
5677000000
342000000
18795000000
14135000000
13174000000
4118000000
6609000000
17325000000
17277000000
48000000
852000000
2296000000
316000000
5080000000
841000000
3030000000
2208000000
147000000
2507000000
2296000000
5080000000
841000000
48000000
2507000000
852000000
3030000000
316000000
147000000
2208000000
0
3030000000
0
147000000
2296000000
852000000
0
0
0
0
0
0
0
0
0
841000000
48000000
5080000000
0
0
0
316000000
0
0
0
0
0
2208000000
2507000000
0
19037000000
5677000000
18990000000
1544000000
47000000
1559000000
354000000
812000000
2944000000
157000000
3036000000
2907000000
1559000000
47000000
354000000
1544000000
812000000
3036000000
2907000000
5677000000
157000000
2944000000
0
1559000000
0
2907000000
0
0
354000000
0
0
0
0
0
0
1544000000
0
0
5677000000
2944000000
0
47000000
0
0
3036000000
0
0
0
157000000
0
812000000
0
58000000
36000000
137000000
48000000
3000000
2000000
13000000
5000000
256000000
50000000
0
53000000
16000000
51000000
0
5000000
10000000
71000000
256000000
0
209000000
12000000
0
61000000
209000000
77000000
7000000
0
13000000
0
22000000
17000000
38000000
2000000
9000000
1000000
5000000
36000000
1000000
0
14000000
0
5000000
1000000
19000000
0
0
2000000
0
0
4000000
4000000
4000000
5000000
14000000
0
-190000000
407000000
65000000
-246000000
170000000
290000000
675000000
99000000
597000000
453000000
2000000
575000000
145000000
182000000
2884000000
1712000000
3287000000
3142000000
5998000000
5816000000
-1172000000
2711000000
15000000
21000000
-41000000
-33000000
0
0
0
0
15000000
21000000
-41000000
-33000000
0.28
27299000000
27514000000
0.0001
0.0001
2750000000
2750000000
932000000
924000000
2296000000
2213000000
2279000000
2279000000
4398000000
2287000000
5040000000
2627000000
643000000
1000000000
1250000000
750000000
0.0570
0.0485
0.0640
0.0345
0.0495
0.06375
0.0615
0.00375
0.0585
0.00125
0.0690
0.0575
0.0450
0.0345
0.06375
0.0615
0.0565
0.0230
0.0450
0.0575
0.0495
0.0485
0.0690
0.0640
0.0410
0.0585
0.0570
0.00375
503000000
534000000
349000000
0
349000000
0
154000000
195000000
282000000
282000000
0
232000000
50000000
0
103000000
103000000
0
103000000
0
0
170000000
0
170000000
0
0
170000000
0.026
399000000
0
399000000
224000000
224000000
0
-218000000
0
-218000000
-21000000
0
-21000000
0.003
2.44
1.25
2.47
1.26
2.43
1.25
2.45
1.25
-96000000
154000000
0
0
154000000
50000000
0
50000000
0
103000000
103000000
0
0
170000000
170000000
0
0
1000000
1000000
-1000000
-1000000
76000000
53000000
-60000000
-9000000
11334000000
11794000000
118000000
2884000000
1464000000
2645000000
1339000000
515000000
262000000
350000000
169000000
148000000
121000000
99000000
369000000
-297000000
25000000
124000000
107000000
37000000
84000000
-124000000
-107000000
-37000000
-84000000
-120000000
194000000
-376000000
-35000000
129000000
-51000000
2230000000
2782000000
292000000
147000000
257000000
122000000
-1000000
195000000
0
195000000
0
232000000
0
232000000
0
512000000
520000000
2022000000
2230000000
128000000
157000000
1382000000
1553000000
43486000000
46936000000
6570000000
4582000000
103000000
0
0
103000000
362000000
0
192000000
170000000
13362000000
13930000000
10874000000
13847000000
8578000000
996000000
1099000000
696000000
499000000
897000000
300000000
1000000000
499000000
899000000
998000000
0
595000000
0
0
11568000000
996000000
748000000
899000000
499000000
998000000
300000000
499000000
595000000
697000000
897000000
997000000
1000000000
1244000000
1099000000
Approximately 3 years
-1259000000
-146000000
-2390000000
291000000
2477000000
2566000000
2369000000
1202000000
2295000000
1170000000
178000000
94000000
277000000
129000000
14500000000
15200000000
3200000000
3200000000
398000000
398000000
232000000
232000000
3700000000
3700000000
670000000
670000000
972000000
972000000
3600000000
3600000000
2998000000
1517000000
2625000000
1332000000
1350000000
1366000000
1271000000
48000000
1363000000
47000000
-1000000
0
19000000
3000000
2098000000
2893000000
-72000000
36000000
255000000
191000000
154000000
66000000
48000000
5000000
2300000000
745000000
17000000
7607000000
13207000000
0
701000000
271000000
223000000
989000000
2973000000
290000000
408000000
52000000
126000000
5246000000
14019000000
5522000000
5516000000
0
2500000000
2500000000
1321000000
675000000
1555000000
819000000
-3508000000
-1945000000
7396000000
3804000000
7665000000
3959000000
7141000000
3613000000
7511000000
3893000000
1870000000
986000000
2153000000
1130000000
166000000
174000000
23944000000
25614000000
29100000
39400000
10300000
0
12900000
12900000
5000000000
5000000000
6400000000
201000000
142000000
70000000
6000000
5000000
8000000
8000000
976000000
964000000
938000000
935000000
970000000
959000000
930000000
927000000