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

The main purpose of this 8-K filing is to report Amgen's unaudited financial results for the first quarter ended March 31, 2007, and to provide detailed explanations 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 offer a supplementary view of its financial performance that it believes is more useful for investors. These measures exclude certain expenses, such as stock option expensing, acquisition-related costs, and one-time charges, to allow for better comparison of operational results across different periods and to treat acquired assets similarly to internally developed ones.

What specific expenses are excluded in Amgen's non-GAAP reporting for Q1 2007?

For Q1 2007, Amgen's non-GAAP reporting excludes: 1) the impact of expensing stock options (SFAS No. 123R), 2) acquisition-related costs from Avidia, Abgenix, Tularik, and Immunex, 3) a manufacturing asset write-off, 4) convertible note expenses related to a put option, and 5) non-cash amortization of acquired intangible assets from Immunex (like Enbrel).

How does Amgen address the impact of SFAS No. 123R?

Amgen excludes the impact of expensing stock options under SFAS No. 123R from certain non-GAAP measures. Additionally, as a convenience to investors, the company also reports adjusted earnings per share that *include* the impact of SFAS No. 123R, acknowledging differing treatments across industries.

AMGN 8-K: Earnings & Results

Summary

Amgen Inc. (AMGN) filed an 8-K on April 23, 2007, to report its unaudited financial results for the three months ended March 31, 2007. The report primarily focuses on the company's use of non-GAAP financial measures, which exclude certain expenses to provide a clearer view of operational performance. These adjustments are made to account for the impact of expensing stock options as required by SFAS No. 123R, acquisition-related costs from Avidia, Abgenix, Tularik, and Immunex, a manufacturing asset write-off, and convertible note expenses. Investors are provided with adjusted figures for cost of sales, R&D, SG&A, net income, and earnings per share. Amgen believes these non-GAAP measures offer supplementary information that aids in comparing performance across periods, particularly by treating acquired intangible assets as if they were internally developed. The company also presents adjusted EPS including the impact of SFAS No. 123R as a convenience for investors.

Key Highlights

1Amgen announced its Q1 2007 unaudited financial results on April 23, 2007.
2The report details the company's use of non-GAAP financial measures to present operational performance.
3Key adjustments include excluding stock option expensing (SFAS No. 123R), acquisition-related costs (Avidia, Abgenix, Tularik, Immunex), a manufacturing asset write-off, and convertible note expenses.
4Non-GAAP measures are provided for cost of sales, R&D, SG&A, net income, and diluted EPS.
5Amgen believes these non-GAAP measures enhance comparability between periods and facilitate analysis, especially regarding acquired intellectual property.
6The company also provided adjusted EPS including SFAS No. 123R impact for investor convenience.
7The filing includes a press release dated April 23, 2007, as Exhibit 99.1.

AMGEN INC 8-K Report, Financial Results (Apr 23, 2007)

Summary

Key Highlights

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