What is the main purpose of this 8-K filing?

This 8-K filing serves to formally report Amgen's financial results for the three and six months ended June 30, 2005, which were previously announced via a press release. A significant focus of the report is the explanation and justification of the non-GAAP financial measures used by the company.

Why is Amgen using non-GAAP financial measures?

Amgen uses non-GAAP financial measures to provide investors with supplementary information that it believes enhances the understanding of its ongoing operational performance. These measures exclude items such as acquisition-related expenses, amortization of acquired intangibles, and gains or losses from specific events, which can make it easier to compare financial results across different periods.

Does Amgen still report GAAP results?

Yes, Amgen explicitly states that its non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Investors should still consider the GAAP results alongside the non-GAAP figures.

AMGN 8-K: Earnings & Results

Q: What specific items are being excluded in the non-GAAP calculations for Q2 2005?

For the three and six months ended June 30, 2005, Amgen excluded expenses related to Tularik and Immunex acquisitions (like retention compensation), gains from the Genentech termination, amortization of acquired intangible assets (primarily for Enbrel), and costs related to convertible notes (for the six-month period). For Q2 2005 specifically, adjustments were made to R&D expense and interest income/expense.

Summary

Amgen Inc. (AMGN) filed an 8-K report on July 25, 2005, detailing its financial results for the three and six months ended June 30, 2005, as announced in a press release on July 19, 2005. The report primarily focuses on the company's use of non-GAAP financial measures to provide supplementary information to investors. These adjustments are made to exclude certain expenses and gains related to past acquisitions (Tularik and Immunex), legal settlements, and termination of manufacturing agreements. Key adjustments include excluding expenses related to employee retention plans for acquired companies, gains/losses from specific events like the Genentech termination, amortization of acquired intangible assets (particularly for Enbrel), and costs associated with convertible notes. Amgen believes these non-GAAP measures offer a clearer view of ongoing operational performance and facilitate period-over-period comparisons by removing the impact of discrete or unusual items. The company also highlights its consistent growth in non-GAAP adjusted earnings per share over the past fifteen quarters.

Key Highlights

1Amgen announced its financial results for the second quarter and first half of 2005 on July 19, 2005.
2The company is presenting non-GAAP financial measures, which exclude certain items to provide a clearer view of core operations.
3Adjustments are made for expenses related to the Tularik and Immunex acquisitions, including employee retention costs and intangible asset amortization.
4Other significant adjustments include gains from the Genentech manufacturing agreement termination and costs associated with convertible notes.
5Amgen emphasizes that these non-GAAP measures are supplementary and not a substitute for GAAP financial reporting.
6The company noted a consistent track record of year-over-year growth in its non-GAAP adjusted earnings per share for the past fifteen consecutive quarters.

AMGEN INC 8-K Report, Financial Results (Jul 25, 2005)

Summary

Key Highlights

Frequently Asked Questions