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 fourth quarter and the full fiscal year ended December 31, 2009, as announced in their press release dated January 25, 2010. It also serves to explain the company's use of non-GAAP financial measures in presenting these results.

Why does Amgen present non-GAAP financial measures?

Amgen presents non-GAAP financial measures because management believes they provide useful supplementary information to investors. These measures are intended to offer a clearer view of the company's operational performance and financial condition by excluding certain items that management considers not indicative of ongoing business trends, such as restructuring charges, acquisition-related costs, and stock-based compensation expenses. They are used to facilitate comparisons between different periods.

What types of adjustments does Amgen make for its non-GAAP financial measures?

Amgen's non-GAAP adjustments typically include: the impact of expensing stock options, costs associated with restructuring plans and cost-saving initiatives (including severance, integration costs, and lease loss accruals), amortization of certain acquired intangible assets (particularly for key products like Enbrel), costs related to acquisitions, settlements of legal proceedings, and certain tax effects or adjustments. For 2009, specific adjustments also included income tax benefits from resolving transfer pricing issues with the IRS and adjustments related to California tax law changes.

Are Amgen's non-GAAP results a replacement for GAAP results?

No, Amgen explicitly states that their non-GAAP financial measures are presented in addition to, and not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Investors should always consider both GAAP and non-GAAP figures when evaluating the company's financial health.

AMGN 8-K: Earnings & Results

Summary

This Form 8-K filing by Amgen Inc. (AMGN) on January 25, 2010, primarily reports its unaudited financial results for the fourth quarter and full year ended December 31, 2009. The company issued a press release detailing these results, which is attached as an exhibit. A significant portion of the filing is dedicated to explaining Amgen's use of non-GAAP financial measures. These adjustments are used to provide a clearer view of the company's operational performance by excluding items such as stock-based compensation expenses, restructuring charges, acquisition-related costs, legal settlements, and certain tax effects. Investors should note that Amgen's management believes these non-GAAP measures offer supplementary information that facilitates analysis by providing comparisons across periods unaffected by these specific, often one-time or non-cash, events. The company emphasizes that these non-GAAP figures are not a substitute for GAAP-based reporting but are intended to enhance understanding of underlying business trends and financial health. The filing also references comparative data for the same periods in 2008, also presented with non-GAAP adjustments.

Key Highlights

1Amgen Inc. filed an 8-K on January 25, 2010, to report its Q4 and full-year 2009 financial results via an attached press release.
2The filing details Amgen's use of non-GAAP financial measures to present its results for the three and twelve months ended December 31, 2009, and 2008.
3Non-GAAP adjustments include items like stock option expensing, restructuring costs (severance, integration, lease loss accruals, asset impairments), acquisition-related costs (Avidia, Abgenix, Immunex), legal settlements, and certain tax effects.
4Amgen believes these non-GAAP measures provide supplementary information to facilitate investor analysis by offering a view of performance excluding specific charges.
5Specific non-GAAP adjustments aim to exclude the impact of stock option expensing, restructuring, acquisition intangibles amortization (especially for Enbrel), and legal accruals.
6The company also reported a non-GAAP measure for total outstanding debt, excluding the impact of adopting a new accounting standard on convertible debt.
7Comparative non-GAAP data for 2008 is also presented to allow for period-over-period analysis.

AMGEN INC 8-K Report, Financial Results (Jan 25, 2010)

Summary

Key Highlights

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