AMGEN INC. (NASDAQ:AMGN) Files An 8-K Results of Operations and Financial Condition

ME Staff 8-k
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AMGEN INC. (NASDAQ:AMGN) Files An 8-K Results of Operations and Financial Condition

Item2.02 Results of Operations and Financial Condition.

On April26, 2017, Amgen Inc. (the Company) issued a press release
announcing its unaudited results of operations for the three
months ended March31, 2017, and its unaudited financial position
as of March31, 2017. The full text of the press release is
furnished as Exhibit 99.1 hereto.

In its press release the Company included certain non-U.S.
Generally Accepted Accounting Principles (GAAP) financial
measures as defined in Regulation G promulgated by the Securities
and Exchange Commission. The non-GAAP financial measures included
in the press release are non-GAAP earnings per share, non-GAAP
operating income, non-GAAP operating margin, non-GAAP tax rate,
non-GAAP net income, non-GAAP operating expenses and
sub-components of non-GAAP operating expenses such as non-GAAP
cost of sales, non-GAAP research and development (RD) expenses
and non-GAAP selling, general and administrative expenses.
Reconciliations for such non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
press release. The Company also included Free Cash Flow (FCF),
which is computed by subtracting capital expenditures from
operating cash flow, each as determined in accordance with GAAP.

The Company believes that this presentation of non-GAAP financial
measures provides useful supplementary information to and
facilitates additional analysis by investors. The Company uses
certain non-GAAP financial measures to enhance an investors
overall understanding of the financial performance and prospects
for the future of the Companys ongoing business activities by
facilitating comparisons of results of ongoing business
operations among current, past and future periods. The Company
believes that FCF provides a further measure of the Companys
liquidity.

The following is a summary of the costs and other items excluded
from the most directly comparable GAAP financial measures to
calculate non-GAAP financial measures:

Acquisition-related expenses: Acquisition-related charges
are primarily amortization of purchased intangible assets
including developed product technology rights, licensing
rights, RD technology rights, and marketing-related rights
purchased in connection with business acquisitions. The
Company incurs charges related to the amortization of these
intangibles, and those charges are included in the Companys
Condensed Consolidated Financial Statements. Amortization
charges for purchased intangible assets are significantly
impacted by the timing and magnitude of the Companys
acquisitions and product approval as it relates to
in-process RD projects acquired. Accordingly, these charges
may vary in amount from period to period. The Company
excludes these charges for purposes of calculating the
non-GAAP financial measures presented to facilitate a more
meaningful evaluation of the Companys current operating
performance and comparisons to past operating performance.
The Company believes that excluding the non-cash
amortization of intangible assets acquired in business
combinations treats those assets as if the Company had
developed them internally in the past, and thus provides a
supplemental measure of profitability in which the Companys
acquired intellectual property is treated in a comparable
manner to its internally developed intellectual property.

Net charges to the Companys restructuring initiative:
Restructuring costs are primarily related to facilities
charges, including accelerated depreciation, and severance
and benefits for employees terminated to the transformation
and process improvement efforts. Restructuring costs are
inconsistent in amount and are significantly impacted by
the timing and nature of these events. Therefore, although
the Company may incur these types of expenses in the
future, it believes that eliminating these charges for
purposes of calculating the non-GAAP financial measures
provides a supplemental evaluation of the Companys current
operating performance and facilitates comparisons to past
operating performance.

Other Items: The Company also adjusts GAAP financial
results for expenses associated with judgments and/or
settlements for legal proceedings discussed in our filings.
The Company is excluding these expenses for the purpose of
calculating the non-GAAP financial measures presented
because the Company believes these items are outside the
ordinary course of business. The Company believes
eliminating these expenses provides a supplemental
evaluation of the Companys current operating performance
and facilitates comparisons to past operating performance.

The tax effect of the adjustments between GAAP and non-GAAP
results take into account the tax treatment and related tax
rate(s) that apply to each adjustment in the applicable tax
jurisdiction(s). Generally, this results in a tax impact at
the U.S. marginal tax rate for certain adjustments,
including the majority of amortization of intangible
assets, whereas the tax impact of other adjustments,
including restructuring expense, depends on whether the
amounts are deductible in the respective tax jurisdictions
and the applicable tax rate(s) in those jurisdictions.

The press release also contains a discussion of the additional
purposes for which the Companys management uses these non-GAAP
financial measures.

This information and the information contained in the press
release shall not be deemed filed for purposes of Section18 of
the Securities Exchange Act of 1934, as amended, or otherwise
subject to the liabilities of that section. The information in
Item2.02 of this Current Report is not incorporated by reference
into any filings of the Company made under the Securities Act of
1933, as amended, whether made before or after the date of this
Current Report, regardless of any general incorporation language
in the filing unless specifically stated so therein.

Item9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release dated April26, 2017


About AMGEN INC. (NASDAQ:AMGN)

Amgen Inc. is a biotechnology company. The Company discovers, develops, manufactures and delivers various human therapeutics. It operates in human therapeutics segment. Its marketed products portfolio includes Neulasta (pegfilgrastim); erythropoiesis-stimulating agents (ESAs), such as Aranesp (darbepoetin alfa) and EPOGEN (epoetin alfa); Sensipar/Mimpara (cinacalcet); XGEVA (denosumab); Prolia (denosumab); NEUPOGEN (filgrastim), and other marketed products, such as KYPROLIS (carfilzomib), Vectibix (panitumumab), Nplate (romiplostim), Repatha (evolocumab), BLINCYTO (blinatumomab), IMLYGIC (talimogene laherparepvec) and Corlanor (ivabradine). It focuses on human therapeutics for the treatment of serious illness in the areas of oncology/hematology, cardiovascular disease and neuroscience. Its product candidates in Phase III include Erenumab for episodic migraine, Aranesp for myelodysplastic syndromes, BLINCYTO for acute lymphoblastic leukemia and IMLYGIC for metastatic melanoma.

AMGEN INC. (NASDAQ:AMGN) Recent Trading Information

AMGEN INC. (NASDAQ:AMGN) closed its last trading session down -0.09 at 164.61 with 3,529,408 shares trading hands.