8-KOther Events

AMGEN INC 8-K Report (Jul 28, 2004)

Filed July 28, 2004For Securities:AMGN

Summary

Amgen Inc. filed an 8-K on July 27, 2004, reporting its financial results for the three and six months ended June 30, 2004. A key focus of this filing is the presentation of non-GAAP financial measures. The company is providing these adjusted figures to offer investors a clearer view of its operational performance, particularly in light of the significant 2002 acquisition of Immunex Corporation. The non-GAAP adjustments primarily exclude incremental compensation costs related to retaining Immunex employees post-acquisition and the ongoing, non-cash amortization of acquired intangible assets, notably those associated with ENBREL®. The company believes these adjustments allow for more meaningful comparisons across periods, treating acquired intellectual property similarly to internally developed assets. Similar adjustments were also made to prior year (2003) results to account for the Immunex acquisition, a legal cost recovery from Johnson & Johnson, and a charitable contribution to the Amgen Foundation, enabling better period-over-period comparability.

Key Highlights

  • 1Amgen Inc. reported its financial results for the second quarter and first half of 2004.
  • 2The company is providing non-GAAP financial measures to supplement GAAP results.
  • 3Non-GAAP adjustments exclude incremental compensation for former Immunex employees.
  • 4Non-GAAP figures also exclude ongoing, non-cash amortization of acquired intangible assets, particularly those related to ENBREL®.
  • 5Amgen uses these non-GAAP measures for internal budgeting and financial planning.
  • 6Adjustments for prior year (2003) non-GAAP results also include a legal cost recovery from Johnson & Johnson and a contribution to the Amgen Foundation for comparability.
  • 7The filing was made on July 27, 2004, with the earliest event reported being July 21, 2004.

Frequently Asked Questions

Amgen is providing non-GAAP financial measures to offer investors a more insightful view of its operational performance. These adjusted measures exclude certain items that the company believes do not reflect its core ongoing business operations, such as incremental retention compensation for acquired employees and non-cash amortization expenses, thereby allowing for better period-over-period comparisons.

The non-GAAP adjustments for the periods ended June 30, 2004, exclude incremental compensation payable to certain former Immunex employees and ongoing, non-cash amortization of acquired intangible assets (primarily ENBREL®). For the 2003 comparative periods, similar adjustments were made, along with exclusions for a cost recovery from Johnson & Johnson and a contribution to the Amgen Foundation.

Amgen's non-GAAP reporting excludes the amortization of acquired intangible assets, treating them similarly to internally developed assets. This approach aims to provide a supplemental measure of profitability that reflects the ongoing performance of its intellectual property, regardless of its acquisition status.

The 2002 acquisition of Immunex Corporation is a primary driver for many of the non-GAAP adjustments. These include incremental compensation costs for retaining Immunex employees and the amortization of intangible assets acquired as part of that transaction, most notably ENBREL®.