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

The primary purpose of this 8-K filing is to report Amgen's unaudited financial results for the second quarter and the first half of 2006, which were announced in a press release on July 20, 2006. It also details the non-GAAP financial measures the company is using to supplement its GAAP reporting.

What are the key non-GAAP adjustments Amgen is making?

Amgen is making several key non-GAAP adjustments. These include excluding the costs associated with expensing stock options (SFAS No. 123R), amortization of intangible assets from acquisitions (like Abgenix, Tularik, and Immunex), acquisition-related expenses (such as R&D write-offs and employee retention costs), and certain one-time gains or charges (like the Genentech manufacturing agreement termination gain).

Why is Amgen providing non-GAAP financial measures?

Amgen believes that these non-GAAP measures provide useful supplementary information to investors and facilitate additional analysis. By excluding certain expenses and gains that may be volatile or non-recurring, the company aims to present a clearer picture of its ongoing operational performance and allow for better comparisons between different reporting periods.

Does this filing include specific financial figures or just a description of the adjustments?

This filing itself, as an 8-K, primarily serves to announce the *occurrence* of the events and refer to the attached press release (Exhibit 99.1) for the detailed financial results and reconciliations. The press release would contain the specific financial figures and the reconciliation between GAAP and non-GAAP measures.

AMGN 8-K: Earnings & Results

Summary

This 8-K filing from Amgen Inc., dated July 24, 2006, primarily reports on the company's unaudited financial results for the second quarter and first half of 2006, as announced in a press release on July 20, 2006. The report details Amgen's use of non-GAAP financial measures to provide supplementary information to investors, aiming to facilitate a clearer understanding of its operational performance by excluding certain charges and adjustments. These adjustments include the impact of expensing stock options (SFAS No. 123R), amortization of acquired intangible assets from significant acquisitions (Abgenix, Tularik, Immunex), acquisition-related expenses like R&D write-offs and employee retention compensation, and the gain from terminating a manufacturing agreement with Genentech. Investors should note that Amgen believes these non-GAAP measures, while not a substitute for GAAP, offer valuable insights into the company's profitability and operational trends, particularly when comparing periods affected by these one-time or non-cash charges. The company explicitly states its use of these measures for internal budgeting and financial planning, highlighting their importance in strategic decision-making. The filing also includes a convenience measure of adjusted EPS that includes SFAS 123R stock option expensing for both 2006 and 2005 periods.

Key Highlights

1Amgen announced its unaudited financial results for the three and six months ended June 30, 2006, via a press release on July 20, 2006.
2The company is presenting non-GAAP financial measures to provide supplementary insights, excluding specific items for better period-to-period comparability.
3Key adjustments to GAAP figures include the impact of expensing stock options under SFAS No. 123R.
4Amortization of intangible assets from significant acquisitions (Abgenix, Tularik, Immunex) is excluded in non-GAAP reporting.
5Acquisition-related expenses such as Abgenix IPR&D write-off and employee retention compensation are adjusted for.
6The gain from terminating the Enbrel® manufacturing agreement with Genentech is also excluded in non-GAAP calculations for the prior year.
7Amgen reports these non-GAAP measures for internal budgeting and financial planning, believing they offer a more comparable view of operational profitability.

AMGEN INC 8-K Report, Financial Results (Jul 24, 2006)

Summary

Key Highlights

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