Summary
Amgen Inc. filed this 8-K report on October 22, 2008, to announce its unaudited financial results for the third quarter and the first nine months of 2008. The filing primarily details the company's use of non-GAAP financial measures, explaining adjustments made to GAAP results for better period-over-period comparison and investor analysis. These adjustments are related to stock option expensing, restructuring charges, acquisition-related expenses, inventory write-offs, legal accruals, and the amortization of acquired intangible assets.
Key Highlights
- 1Amgen reported its unaudited financial results for the three and nine months ended September 30, 2008.
- 2The company utilized non-GAAP financial measures, providing reconciliations to GAAP, to offer supplemental information to investors.
- 3Key adjustments to GAAP results included expensing stock options (SFAS No. 123R), restructuring plan charges (announced August 2007), and acquisition-related costs from Alantos, Avidia, Abgenix, and Immunex.
- 4Other significant adjustments involved inventory write-offs due to manufacturing process changes, legal accruals for settlements, and losses on the sale of certain products.
- 5The filing detailed specific adjustments for both 2008 and 2007 periods to facilitate comparability, focusing on items like R&D technology amortization and Enbrel-related intangible asset amortization.
- 6Amgen provided adjusted diluted earnings per share, both including and excluding stock option expensing, as a convenience to investors.
Frequently Asked Questions
The main purpose of this 8-K filing is to report Amgen's unaudited financial results for the third quarter and the first nine months of 2008, and to explain the non-GAAP financial measures the company is using in conjunction with its GAAP results.
Amgen uses non-GAAP financial measures to provide supplementary information that they believe aids investor analysis and facilitates comparisons between different reporting periods. These measures exclude certain items that management believes are not indicative of ongoing operational performance, such as restructuring charges, acquisition-related costs, and inventory write-offs.
Major adjustments included costs associated with expensing stock options (SFAS No. 123R), charges related to restructuring plans, expenses from acquisitions (like Alantos, Avidia, Abgenix, Immunex), inventory write-offs, legal accruals, and the amortization of acquired intangible assets.
By excluding one-time or non-cash charges, or costs related to past strategic decisions like acquisitions and restructurings, Amgen aims to present a clearer view of its core operational performance. This allows investors to better compare financial results across different periods and understand the underlying trends of the business.