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

The main purpose of this 8-K filing is to report Amgen Inc.'s unaudited financial results for the third quarter and the first nine months of 2018, as well as its financial position as of September 30, 2018. It also serves to inform investors about the company's use of non-GAAP financial measures and Free Cash Flow.

Why does Amgen use non-GAAP financial measures?

Amgen uses non-GAAP financial measures to provide a more meaningful evaluation of its current operating performance and to facilitate comparisons with past and future periods. By excluding certain items like acquisition-related expenses, restructuring costs, and legal settlements, the company aims to offer investors a clearer understanding of its core business operations and profitability.

What specific items does Amgen exclude when calculating its non-GAAP financial measures?

Amgen excludes several items from its GAAP results to calculate its non-GAAP financial measures. These include acquisition-related expenses (such as amortization of acquired intangibles and impairments of in-process R&D), net charges related to restructuring initiatives (like facility costs and severance), and certain expenses associated with legal judgments or settlements outside the ordinary course of business.

How is Free Cash Flow (FCF) defined by Amgen in this filing?

Amgen defines Free Cash Flow (FCF) as operating cash flow, as determined in accordance with GAAP, minus capital expenditures. The company believes FCF provides an additional measure of its liquidity.

AMGN 8-K: Earnings & Results

Summary

Amgen Inc. (AMGN) filed an 8-K on October 30, 2018, to report its unaudited results for the three and nine months ended September 30, 2018. The report primarily provides the company's financial condition as of September 30, 2018, and details its use of non-GAAP financial measures. Amgen uses non-GAAP earnings per share, operating income, operating margin, tax rate, net income, and operating expenses to offer a clearer view of its ongoing business performance and facilitate comparisons across periods. The company also highlighted its calculation and use of Free Cash Flow (FCF), which is derived from GAAP operating cash flow less capital expenditures. Amgen believes these non-GAAP metrics and FCF provide valuable supplementary information to investors, enhancing their understanding of the company's financial performance and liquidity. The press release, furnished as an exhibit, explains the specific adjustments made to GAAP figures, including the exclusion of acquisition-related expenses, restructuring initiative costs, and certain legal settlement expenses.

Key Highlights

1Amgen Inc. reported its third-quarter and year-to-date financial results for 2018 via an 8-K filing.
2The company furnished a press release (Exhibit 99.1) detailing its unaudited financial results and position as of September 30, 2018.
3Amgen utilizes several non-GAAP financial measures, including non-GAAP EPS, operating income, and net income, to present a view of its ongoing business performance.
4The company also reported Free Cash Flow (FCF), calculated as GAAP operating cash flow minus capital expenditures, as a measure of liquidity.
5Non-GAAP adjustments are made to exclude items such as acquisition-related expenses, restructuring costs, and certain legal settlement expenses.
6Amgen believes these non-GAAP measures and FCF offer useful supplementary information for investors to analyze the company's financial performance and future prospects.
7The information provided is furnished and not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934.

AMGEN INC 8-K Report, Financial Results (Oct 30, 2018)

Summary

Key Highlights

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