8-KEarnings & ResultsExhibits & Filings

AMGEN INC 8-K Report, Financial Results (Feb 2, 2021)

Filed February 2, 2021For Securities:AMGN

Summary

Amgen Inc. (AMGN) filed an 8-K on February 2, 2021, to furnish a press release detailing its fourth quarter and full-year 2020 financial results. The report highlights Amgen's use of non-GAAP financial measures to provide a clearer view of its operational performance, excluding items such as acquisition-related expenses, restructuring costs, and certain investment gains/losses. These adjustments aim to facilitate better comparisons of ongoing business performance across periods. Investors should note that the company is refining its non-GAAP presentation starting January 1, 2021, by excluding gains and losses from equity securities investments that are recorded in interest and other income. This change is intended to improve the comparability of financial performance by reducing the impact of investment volatility on core business results, while continuing to exclude results from strategic equity method investments like BeiGene. The press release itself is furnished as an exhibit and not deemed 'filed' for liability purposes.

Key Highlights

  • 1Amgen reported its fourth quarter and full-year 2020 financial results on February 2, 2021.
  • 2The company utilizes non-GAAP financial measures (e.g., non-GAAP EPS, non-GAAP operating income) for enhanced investor analysis.
  • 3Key exclusions from non-GAAP measures include acquisition-related expenses (e.g., amortization of intangibles, impairment of in-process R&D).
  • 4Restructuring costs, related to transformation and process improvement efforts, are also excluded from non-GAAP calculations.
  • 5Certain investment-related gains/losses and legal settlement items are adjusted for in non-GAAP reporting, deemed outside ordinary business.
  • 6Amgen is enhancing its non-GAAP presentation starting January 1, 2021, by excluding gains/losses on equity securities from interest and other income.
  • 7Free Cash Flow (FCF) is also presented as a measure of liquidity, calculated as operating cash flow less capital expenditures.

Frequently Asked Questions

The primary purpose of this 8-K filing is to furnish a press release that announces Amgen's unaudited financial results for the fourth quarter and full year ended December 31, 2020, and its financial position as of that date. It also details the non-GAAP financial measures the company uses and explains the adjustments made.

Amgen uses non-GAAP financial measures to provide investors with a more useful and comparable view of its ongoing business operations. By excluding certain items like acquisition-related expenses, restructuring costs, and specific investment gains/losses, the company aims to facilitate a better understanding of its core performance and trends over time.

Beginning January 1, 2021, Amgen will exclude gains and losses on certain investments in equity securities (recorded in interest and other income) from its non-GAAP financial measures. This is to reduce the impact of investment volatility on comparability with ongoing business operations, while still excluding results from strategic investments accounted for using the equity method, such as BeiGene.

Free Cash Flow (FCF) is a non-GAAP measure calculated by subtracting capital expenditures from operating cash flow, both determined in accordance with GAAP. Amgen presents FCF as an additional measure of the company's liquidity, providing insight into the cash generated from its operations after accounting for investments in its assets.