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

This 8-K filing primarily serves to announce Amgen's financial results for the fourth quarter and full year ended December 31, 2021, as detailed in an accompanying press release. It also outlines the non-GAAP financial measures the company uses and explains the rationale behind these adjustments for investors.

Why does Amgen present non-GAAP financial measures?

Amgen uses non-GAAP financial measures to provide supplemental information that enhances investors' understanding of the company's financial performance and future prospects. They believe these measures facilitate comparisons of ongoing business operations across different periods by excluding items that may not be representative of normal business operations or can cause period-to-period variability.

What types of items are excluded from Amgen's non-GAAP financial measures?

Amgen excludes several categories of expenses and gains/losses, including acquisition-related expenses (like amortization of acquired intangibles), licensing-related expenses, costs from cost savings initiatives, and certain investment transactions (e.g., gains/losses on equity securities) and legal settlements. These are items the company deems outside the ordinary course of business or significantly variable.

What is Free Cash Flow (FCF) and why is it included?

Free Cash Flow (FCF) is calculated by subtracting capital expenditures from operating cash flow, both determined in accordance with GAAP. Amgen provides FCF as an additional measure of the company's liquidity, offering insight into the cash generated from its operations that can be used for various corporate purposes.

AMGN 8-K: Earnings & Results

Summary

Amgen Inc. (AMGN) filed an 8-K on February 7, 2022, to announce its fourth quarter and full-year 2021 financial results via a press release. The filing details both GAAP and non-GAAP financial measures, including non-GAAP earnings per share, operating income, operating margin, tax rate, net income, and operating expenses. The company also provided its Free Cash Flow (FCF). Amgen utilizes these non-GAAP measures to offer a clearer view of its ongoing business performance and to facilitate comparisons across periods, excluding items like acquisition-related expenses, licensing costs, cost savings initiatives, and certain investment/legal-related gains and losses. These adjustments aim to present a more consistent picture of operational profitability.

Key Highlights

1Amgen announced its Q4 and full-year 2021 financial results on February 7, 2022.
2The filing includes both GAAP and non-GAAP financial results, with a focus on non-GAAP measures for operational clarity.
3Key non-GAAP financial metrics discussed include EPS, operating income, operating margin, net income, and expenses.
4Free Cash Flow (FCF) is provided as an additional liquidity measure.
5Amgen excludes acquisition-related expenses, licensing costs, cost savings initiatives, and certain investment/legal gains/losses from its non-GAAP reporting.
6The company believes these exclusions provide a more meaningful evaluation of current and past operating performance.
7Revisions were made to 2020 non-GAAP net income and EPS to reflect a change in policy regarding the exclusion of gains and losses on equity investments for comparability.

AMGEN INC 8-K Report, Financial Results (Feb 7, 2022)

Summary

Key Highlights

Frequently Asked Questions