What types of financial measures does Amgen provide in this report?

Amgen provides both U.S. Generally Accepted Accounting Principles (GAAP) measures and several non-GAAP financial measures. Non-GAAP measures include adjusted earnings per share, operating income, operating margin, tax rate, net income, and operating expenses. They also report Free Cash Flow (FCF).

Why does Amgen present non-GAAP financial measures?

Amgen presents non-GAAP financial measures to provide investors with supplementary information that enhances their understanding of the company's financial performance. These measures facilitate comparisons of ongoing business operations across different periods by excluding items that may be volatile or not representative of core operations, such as acquisition-related expenses, restructuring costs, and certain legal settlements.

What specific costs are excluded from Amgen's non-GAAP financial measures?

The costs excluded from GAAP to calculate non-GAAP measures primarily include acquisition-related expenses (e.g., amortization of purchased intangibles), net charges related to restructuring initiatives, and expenses associated with legal judgments or settlements that are outside the ordinary course of business.

AMGN 8-K: Earnings & Results

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

The primary purpose of this 8-K filing is to report Amgen Inc.'s unaudited financial results for the second quarter and the first half of 2016, which were announced via a press release furnished as an exhibit.

Summary

Amgen Inc. (AMGN) filed an 8-K on July 27, 2016, to report its unaudited financial results for the second quarter and the first half of 2016, ended June 30, 2016. The filing primarily serves to furnish the accompanying press release detailing these results. Investors should note that the company has provided both U.S. Generally Accepted Accounting Principles (GAAP) and certain non-GAAP financial measures. These non-GAAP measures, which include adjusted earnings per share, operating income, and net income, are used by Amgen to offer a more comprehensive view of its ongoing business performance by facilitating comparisons across periods. The press release also includes a discussion of Free Cash Flow (FCF), which is another liquidity metric. The excluded items from GAAP to arrive at non-GAAP figures are primarily acquisition-related expenses (like amortization of intangibles), restructuring charges, and unusual legal settlement costs. Amgen believes these adjustments provide a more meaningful evaluation of operational performance and future prospects by removing volatility associated with these items.

Key Highlights

1Amgen Inc. reported its unaudited financial results for the three and six months ended June 30, 2016.
2The company furnished a press release (Exhibit 99.1) detailing these results.
3Amgen presented both GAAP and non-GAAP financial measures, including non-GAAP earnings per share and operating income.
4Non-GAAP measures are used to enhance investor understanding of ongoing business performance by facilitating period-over-period comparisons.
5Key adjustments for non-GAAP calculations include acquisition-related expenses, restructuring charges, and legal settlement costs.
6Free Cash Flow (FCF) was also presented as a measure of liquidity.
7The filing states that the information furnished is not deemed 'filed' under Section 18 of the Securities Exchange Act of 1934.

AMGEN INC 8-K Report, Financial Results (Jul 27, 2016)

Summary

Key Highlights

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