8-KEarnings & ResultsExhibits & Filings

AMGEN INC 8-K Report, Financial Results (Jan 29, 2019)

Filed January 29, 2019For Securities:AMGN

Summary

Amgen Inc. (AMGN) filed an 8-K on January 29, 2019, to report its unaudited financial results for the fourth quarter and full year ended December 31, 2018. The filing primarily references a press release (Exhibit 99.1) which details these results and includes a significant focus on non-GAAP financial measures. Investors should note that Amgen utilizes non-GAAP metrics such as non-GAAP earnings per share, operating income, and net income, alongside Free Cash Flow (FCF), to provide a potentially clearer view of ongoing operational performance and liquidity by excluding items like acquisition-related expenses, restructuring costs, certain legal settlements, and the impact of tax reforms. The company's management believes these non-GAAP presentations offer a more meaningful comparison of performance across periods by excluding expenses that can be inconsistent or outside the ordinary course of business. While the press release itself is furnished and not deemed 'filed' under Section 18 of the Securities Exchange Act, the information presented is crucial for understanding Amgen's financial health and operational trends as perceived by management.

Key Highlights

  • 1Amgen Inc. reported unaudited financial results for the fourth quarter and full year ended December 31, 2018.
  • 2The company furnished a press release (Exhibit 99.1) containing detailed financial information.
  • 3Amgen provided and explained the use of several non-GAAP financial measures, including non-GAAP EPS, operating income, and net income.
  • 4Key non-GAAP adjustments include acquisition-related expenses, restructuring costs, and certain legal settlement expenses.
  • 5The company also presented Free Cash Flow (FCF) as a measure of liquidity.
  • 6Amgen explained its rationale for using non-GAAP measures, citing enhanced comparability and a better understanding of ongoing business operations.
  • 7The filing clarifies that the press release information is furnished and not subject to Section 18 of the Exchange Act liabilities.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Amgen Inc.'s unaudited financial results for the fourth quarter and full year ended December 31, 2018, through a furnished press release. It also details the non-GAAP financial measures used by the company and the reasoning behind their presentation.

Amgen excludes several items to calculate its non-GAAP financial measures, including acquisition-related expenses (like amortization of acquired intangibles and impairments of in-process R&D), net charges related to restructuring initiatives, certain legal settlement expenses, and the impact of U.S. tax reform. These exclusions are intended to provide a clearer view of ongoing operational performance.

Free Cash Flow (FCF) is calculated by subtracting capital expenditures from operating cash flow, both as determined under GAAP. Amgen highlights FCF as an additional measure of its liquidity, providing investors with insight into the cash generated from its operations after accounting for necessary investments in its business.

No, the press release furnished as Exhibit 99.1 is considered 'furnished,' not 'filed,' for purposes of Section 18 of the Securities Exchange Act of 1934. This means it is not subject to the liabilities under that section, although the information remains important for investors to understand the company's performance and financial condition.