What is the primary purpose of this 8-K filing for Amgen?

This 8-K filing serves to report Amgen's unaudited financial results for the three and six months ended June 30, 2021. It includes a press release that details the company's financial performance using both Generally Accepted Accounting Principles (GAAP) and non-GAAP measures, as well as its Free Cash Flow (FCF).

What are the key types of expenses Amgen excludes when calculating its non-GAAP financial measures?

Amgen excludes several types of items to arrive at its non-GAAP figures. These primarily include acquisition-related expenses (such as amortization of acquired intangible assets), net charges from cost savings initiatives (like severance and facility costs), and certain other items such as gains/losses on investment transactions and legal settlements. The company believes excluding these provides a more meaningful view of ongoing operational performance.

How has Amgen's non-GAAP reporting changed recently?

Effective January 1, 2021, Amgen began excluding gains and losses on investments in equity securities from its non-GAAP measures. This change was made to reduce variability and improve the comparability of its financial performance for ongoing business operations. They also revised their 2020 non-GAAP results to align with this new policy.

Where can investors find the detailed financial figures and reconciliations?

The detailed financial results, including the reconciliations between GAAP and non-GAAP financial measures, are provided in the press release dated August 3, 2021, which is furnished as Exhibit 99.1 to this 8-K filing.

AMGN 8-K: Earnings & Results

Summary

Amgen Inc. (AMGN) filed an 8-K on August 3, 2021, to report its unaudited financial results for the second quarter and first half of 2021, ending June 30, 2021. The filing includes a press release detailing both GAAP and non-GAAP financial measures, as well as Free Cash Flow (FCF). The company utilizes non-GAAP measures to provide a clearer view of ongoing operational performance and to facilitate comparisons across periods, excluding items such as acquisition-related expenses, costs from cost savings initiatives, and certain investment and legal-related gains/losses. Notably, Amgen has updated its non-GAAP policy effective January 1, 2021, to exclude gains and losses on investments in equity securities from its non-GAAP measures, with the exception of its strategic investment in BeiGene. This change aims to improve comparability by mitigating the variability introduced by these investment fluctuations. The company also restated its 2020 non-GAAP figures to reflect this new policy for consistent historical comparison. Investors should review both GAAP and non-GAAP figures, paying attention to the detailed reconciliations provided in the accompanying press release.

Key Highlights

1Amgen announced its Q2 and H1 2021 unaudited financial results via an 8-K filing on August 3, 2021.
2The company provided both GAAP and non-GAAP financial results, along with Free Cash Flow (FCF).
3Non-GAAP measures are used by Amgen to offer a supplemental view of operational performance, excluding acquisition costs, restructuring charges, and certain investment/legal items.
4Effective January 1, 2021, Amgen now excludes gains and losses on equity investments from its non-GAAP measures to enhance comparability.
5Prior year (2020) non-GAAP net income and EPS have been revised to reflect the updated non-GAAP policy for consistency.
6Reconciliations between GAAP and non-GAAP figures are available in the furnished press release (Exhibit 99.1).
7The reported information is furnished and not considered 'filed' under Section 18 of the Securities Exchange Act of 1934.

AMGEN INC 8-K Report, Financial Results (Aug 3, 2021)

Summary

Key Highlights

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