Key results include:
"
$Millions, except EPS, dividends paid per share and percentages |
Q3 '20 |
Q3 '19 |
YOY Δ |
||||
Total Revenues |
$ |
6,423 |
$ |
5,737 |
12% |
||
GAAP Operating Income |
$ |
2,453 |
$ |
2,476 |
(1%) |
||
GAAP Net Income |
$ |
2,021 |
$ |
1,968 |
3% |
||
GAAP EPS |
$ |
3.43 |
$ |
3.27 |
5% |
||
Non-GAAP Operating Income |
$ |
3,183 |
$ |
2,793 |
14% |
||
Non-GAAP Net Income |
$ |
2,572 |
$ |
2,201 |
17% |
||
Non-GAAP EPS |
$ |
4.37 |
$ |
3.66 |
19% |
||
Dividends Paid Per Share |
$ |
1.60 |
$ |
1.45 |
10% |
References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis" and to "free cash flow" (computed by subtracting capital expenditures from operating cash flow) refer to non-GAAP financial measures. Adjustments to the most directly comparable GAAP financial measures and other items are presented on the attached reconciliations.
Product Sales Performance
*Third quarter 2019 Sales information derived from Celgene Corporation's reporting for that period.
Product Sales Detail by Product and
$Millions, except percentages |
Q3 '20 |
Q3 '19 |
YOY Δ |
|||||||||||||||
US |
ROW |
TOTAL |
TOTAL |
TOTAL |
||||||||||||||
Prolia® |
$ |
478 |
$ |
223 |
$ |
701 |
$ |
630 |
11% |
|||||||||
EVENITY® |
54 |
5 |
59 |
59 |
— |
|||||||||||||
Repatha® |
92 |
113 |
205 |
168 |
22% |
|||||||||||||
Aimovig® |
105 |
— |
105 |
66 |
59% |
|||||||||||||
Parsabiv® |
156 |
27 |
183 |
157 |
17% |
|||||||||||||
Otezla® |
439 |
99 |
538 |
— |
NM |
|||||||||||||
Enbrel® |
1,289 |
36 |
1,325 |
1,366 |
(3%) |
|||||||||||||
AMGEVITA™ |
— |
80 |
80 |
61 |
31% |
|||||||||||||
KYPROLIS® |
173 |
87 |
260 |
266 |
(2%) |
|||||||||||||
XGEVA® |
363 |
118 |
481 |
476 |
1% |
|||||||||||||
Vectibix® |
90 |
103 |
193 |
196 |
(2%) |
|||||||||||||
Nplate® |
118 |
94 |
212 |
195 |
9% |
|||||||||||||
BLINCYTO® |
54 |
35 |
89 |
85 |
5% |
|||||||||||||
MVASI® |
185 |
46 |
231 |
43 |
* |
|||||||||||||
KANJINTI® |
149 |
18 |
167 |
69 |
* |
|||||||||||||
Neulasta® |
484 |
71 |
555 |
711 |
(22%) |
|||||||||||||
NEUPOGEN® |
44 |
21 |
65 |
54 |
20% |
|||||||||||||
EPOGEN® |
149 |
— |
149 |
215 |
(31%) |
|||||||||||||
Aranesp® |
158 |
226 |
384 |
452 |
(15%) |
|||||||||||||
Sensipar®/Mimpara® |
7 |
32 |
39 |
109 |
(64%) |
|||||||||||||
Other** |
31 |
52 |
83 |
85 |
(2%) |
|||||||||||||
Total product sales |
$ |
4,618 |
$ |
1,486 |
$ |
6,104 |
$ |
5,463 |
12% |
|||||||||
NM = not meaningful |
||||||||||||||||||
* Change in excess of 100% |
||||||||||||||||||
** Other includes GENSENTA, IMLYGIC®, Corlanor®, Bergamo and AVSOLA® |
Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:
On a non-GAAP basis:
$Millions, except percentages |
GAAP |
Non-GAAP |
||||||||||||||||||
Q3 '20 |
Q3 '19 |
YOY Δ |
Q3 '20 |
Q3 '19 |
YOY Δ |
|||||||||||||||
Cost of Sales |
$ |
1,561 |
$ |
1,036 |
51% |
$ |
874 |
$ |
760 |
15% |
||||||||||
% of product sales |
25.6% |
19.0% |
6.6 pts |
14.3% |
13.9% |
0.4 pts |
||||||||||||||
Research & Development |
$ |
1,062 |
$ |
1,001 |
6% |
$ |
1,037 |
$ |
977 |
6% |
||||||||||
% of product sales |
17.4% |
18.3% |
(0.9) pts |
17.0% |
17.9% |
(0.9) pts |
||||||||||||||
Selling, General & Administrative |
$ |
1,346 |
$ |
1,223 |
10% |
$ |
1,329 |
$ |
1,207 |
10% |
||||||||||
% of product sales |
22.1% |
22.4% |
(0.3) pts |
21.8% |
22.1% |
(0.3) pts |
||||||||||||||
Other |
$ |
1 |
$ |
1 |
— |
$ |
— |
$ |
— |
—% |
||||||||||
Total Operating Expenses |
$ |
3,970 |
$ |
3,261 |
22% |
$ |
3,240 |
$ |
2,944 |
10% |
||||||||||
Operating Margin |
||||||||||||||||||||
operating income as % of product sales |
40.2% |
45.3% |
(5.1) pts |
52.1% |
51.1% |
1.0 pts |
||||||||||||||
Tax Rate |
8.4% |
13.6% |
(5.2) pts |
13.5% |
15.2% |
(1.7) pts |
||||||||||||||
pts: percentage points |
Cash Flow and Balance Sheet
$Billions, except shares |
Q3 '20 |
Q3 '19 |
YOY Δ |
|||||||||
Operating Cash Flow |
$ |
3.4 |
$ |
3.4 |
$ |
0.0 |
||||||
Capital Expenditures |
0.1 |
0.2 |
0.0 |
|||||||||
Free Cash Flow |
3.2 |
3.2 |
0.0 |
|||||||||
Dividends Paid |
0.9 |
0.9 |
0.1 |
|||||||||
Share Repurchases |
0.8 |
1.2 |
(0.4) |
|||||||||
Average Diluted Shares (millions) |
589 |
602 |
(13) |
|||||||||
|
|
YTD Δ |
||||||||||
Cash and Investments |
$ |
12.4 |
$ |
8.9 |
$ |
3.5 |
||||||
Debt Outstanding |
34.3 |
29.9 |
4.4 |
|||||||||
Note: Numbers may not add due to rounding |
2020 Guidance
For the full year 2020, the Company now expects:
Third Quarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
Sotorasib
Bispecific Programs
BLINCYTO
Tezepelumab
Efavaleukin alfa (AMG 592)
ABP 654 (biosimilar ustekinumab)
KYPROLIS
MCL-1 Inhibitor Program
Nplate
ABP 798 (biosimilar rituximab)
Omecamtiv mecarbil
Olpasiran (AMG 890)
Otezla
Aimovig
COVID-19 Therapeutics
DARZALEX and STELARA are registered trademarks of
Omecamtiv mecarbil is being developed under a collaboration between
Tezepelumab is being developed in collaboration with AstraZeneca
RITUXAN is a registered trademark of Biogen Inc.
Non-GAAP Financial Measures
In this news release, management has presented its operating results for the third quarters of 2020 and 2019, in accordance with
The Company believes that its presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. The Company uses certain non-GAAP financial measures to enhance an investor's overall understanding of the financial performance and prospects for the future of the Company's ongoing business activities by facilitating comparisons of results of ongoing business operations among current, past and future periods. The Company believes that FCF provides a further measure of the Company's liquidity.
The Company uses the non-GAAP financial measures set forth in the news release in connection with its own budgeting and financial planning internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. The non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
About
For more information, visit www.amgen.com and follow us on www.twitter.com/amgen.
Forward-Looking Statements
This news release contains forward-looking statements that are based on the current expectations and beliefs of
No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and reimbursement policies imposed by third-party payers, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products, including our devices, after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the
CONTACT:
|
|||||||||||||||
Consolidated Statements of Income - GAAP |
|||||||||||||||
(In millions, except per-share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Revenues: |
|||||||||||||||
Product sales |
$ |
6,104 |
$ |
5,463 |
$ |
17,906 |
$ |
16,323 |
|||||||
Other revenues |
319 |
274 |
884 |
842 |
|||||||||||
Total revenues |
6,423 |
5,737 |
18,790 |
17,165 |
|||||||||||
Operating expenses: |
|||||||||||||||
Cost of sales |
1,561 |
1,036 |
4,562 |
3,103 |
|||||||||||
Research and development |
1,062 |
1,001 |
2,978 |
2,804 |
|||||||||||
Selling, general and administrative |
1,346 |
1,223 |
3,957 |
3,637 |
|||||||||||
Other |
1 |
1 |
162 |
(5) |
|||||||||||
Total operating expenses |
3,970 |
3,261 |
11,659 |
9,539 |
|||||||||||
Operating income |
2,453 |
2,476 |
7,131 |
7,626 |
|||||||||||
Interest expense, net |
302 |
313 |
944 |
988 |
|||||||||||
Interest and other income, net |
55 |
114 |
69 |
517 |
|||||||||||
Income before income taxes |
2,206 |
2,277 |
6,256 |
7,155 |
|||||||||||
Provision for income taxes |
185 |
309 |
607 |
1,016 |
|||||||||||
Net income |
$ |
2,021 |
$ |
1,968 |
$ |
5,649 |
$ |
6,139 |
|||||||
Earnings per share: |
|||||||||||||||
Basic |
$ |
3.45 |
$ |
3.29 |
$ |
9.61 |
$ |
10.08 |
|||||||
Diluted |
$ |
3.43 |
$ |
3.27 |
$ |
9.54 |
$ |
10.01 |
|||||||
Weighted-average shares used in calculation of earnings per share: |
|||||||||||||||
Basic |
585 |
599 |
588 |
609 |
|||||||||||
Diluted |
589 |
602 |
592 |
613 |
|
|||||||
Consolidated Balance Sheets - GAAP |
|||||||
(In millions) |
|||||||
|
|
||||||
2020 |
2019 |
||||||
(Unaudited) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash, cash equivalents and marketable securities |
$ |
12,360 |
$ |
8,911 |
|||
Trade receivables, net |
4,094 |
4,057 |
|||||
Inventories |
3,942 |
3,584 |
|||||
Other current assets |
2,265 |
1,888 |
|||||
Total current assets |
22,661 |
18,440 |
|||||
Property, plant and equipment, net |
4,816 |
4,928 |
|||||
Intangible assets, net |
17,254 |
19,413 |
|||||
|
14,674 |
14,703 |
|||||
Other assets |
5,232 |
2,223 |
|||||
Total assets |
$ |
64,637 |
$ |
59,707 |
|||
Liabilities and Stockholders' Equity |
|||||||
Current liabilities: |
|||||||
Accounts payable and accrued liabilities |
$ |
9,862 |
$ |
9,882 |
|||
Current portion of long-term debt |
91 |
2,953 |
|||||
Total current liabilities |
9,953 |
12,835 |
|||||
Long-term debt |
34,196 |
26,950 |
|||||
Long-term deferred tax liabilities |
210 |
606 |
|||||
Long-term tax liabilities |
7,560 |
8,037 |
|||||
Other noncurrent liabilities |
1,759 |
1,606 |
|||||
Total stockholders' equity |
10,959 |
9,673 |
|||||
Total liabilities and stockholders' equity |
$ |
64,637 |
$ |
59,707 |
|||
Shares outstanding |
584 |
591 |
|
|||||||||||||||
GAAP to Non-GAAP Reconciliations |
|||||||||||||||
(Dollars in millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
GAAP cost of sales |
$ |
1,561 |
$ |
1,036 |
$ |
4,562 |
$ |
3,103 |
|||||||
Adjustments to cost of sales: |
|||||||||||||||
Acquisition-related expenses (a) |
(687) |
(276) |
(2,159) |
(828) |
|||||||||||
Non-GAAP cost of sales |
$ |
874 |
$ |
760 |
$ |
2,403 |
$ |
2,275 |
|||||||
GAAP cost of sales as a percentage of product sales |
25.6 |
% |
19.0 |
% |
25.5 |
% |
19.0 |
% |
|||||||
Acquisition-related expenses (a) |
-11.3 |
-5.1 |
-12.1 |
-5.1 |
|||||||||||
Non-GAAP cost of sales as a percentage of product sales |
14.3 |
% |
13.9 |
% |
13.4 |
% |
13.9 |
% |
|||||||
GAAP research and development expenses |
$ |
1,062 |
$ |
1,001 |
$ |
2,978 |
$ |
2,804 |
|||||||
Adjustments to research and development expenses: |
|||||||||||||||
Acquisition-related expenses (a) |
(24) |
(24) |
(77) |
(62) |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
(1) |
— |
(1) |
— |
|||||||||||
Total adjustments to research and development expenses |
(25) |
(24) |
(78) |
(62) |
|||||||||||
Non-GAAP research and development expenses |
$ |
1,037 |
$ |
977 |
$ |
2,900 |
$ |
2,742 |
|||||||
GAAP research and development expenses as a percentage of product sales |
17.4 |
% |
18.3 |
% |
16.6 |
% |
17.2 |
% |
|||||||
Acquisition-related expenses (a) |
-0.4 |
-0.4 |
-0.4 |
-0.4 |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
0.0 |
0.0 |
0.0 |
0.0 |
|||||||||||
Non-GAAP research and development expenses as a percentage of product sales |
17.0 |
% |
17.9 |
% |
16.2 |
% |
16.8 |
% |
|||||||
GAAP selling, general and administrative expenses |
$ |
1,346 |
$ |
1,223 |
$ |
3,957 |
$ |
3,637 |
|||||||
Adjustments to selling, general and administrative expenses: |
|||||||||||||||
Acquisition-related expenses (a) |
(15) |
(17) |
(74) |
(26) |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
— |
1 |
— |
1 |
|||||||||||
Other |
(2) |
— |
(2) |
— |
|||||||||||
Total adjustments to selling, general and administrative expenses |
(17) |
(16) |
(76) |
(25) |
|||||||||||
Non-GAAP selling, general and administrative expenses |
$ |
1,329 |
$ |
1,207 |
$ |
3,881 |
$ |
3,612 |
|||||||
GAAP selling, general and administrative expenses as a percentage of product sales |
22.1 |
% |
22.4 |
% |
22.1 |
% |
22.3 |
% |
|||||||
Acquisition-related expenses (a) |
-0.3 |
-0.3 |
-0.4 |
-0.2 |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
0.0 |
0.0 |
0.0 |
0.0 |
|||||||||||
Other |
0.0 |
0.0 |
0.0 |
0.0 |
|||||||||||
Non-GAAP selling, general and administrative expenses as a percentage of product sales |
21.8 |
% |
22.1 |
% |
21.7 |
% |
22.1 |
% |
|||||||
GAAP operating expenses |
$ |
3,970 |
$ |
3,261 |
$ |
11,659 |
$ |
9,539 |
|||||||
Adjustments to operating expenses: |
|||||||||||||||
Adjustments to cost of sales |
(687) |
(276) |
(2,159) |
(828) |
|||||||||||
Adjustments to research and development expenses |
(25) |
(24) |
(78) |
(62) |
|||||||||||
Adjustments to selling, general and administrative expenses |
(17) |
(16) |
(76) |
(25) |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
— |
— |
4 |
2 |
|||||||||||
Certain other expenses (b) |
(1) |
(1) |
(166) |
3 |
|||||||||||
Total adjustments to operating expenses |
(730) |
(317) |
(2,475) |
(910) |
|||||||||||
Non-GAAP operating expenses |
$ |
3,240 |
$ |
2,944 |
$ |
9,184 |
$ |
8,629 |
|||||||
GAAP operating income |
$ |
2,453 |
$ |
2,476 |
$ |
7,131 |
$ |
7,626 |
|||||||
Adjustments to operating expenses |
730 |
317 |
2,475 |
910 |
|||||||||||
Non-GAAP operating income |
$ |
3,183 |
$ |
2,793 |
$ |
9,606 |
$ |
8,536 |
|||||||
Three months ended |
Nine months ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
GAAP operating income as a percentage of product sales |
40.2 |
% |
45.3 |
% |
39.8 |
% |
46.7 |
% |
|||||||
Adjustments to cost of sales |
11.3 |
5.1 |
12.1 |
5.1 |
|||||||||||
Adjustments to research and development expenses |
0.4 |
0.4 |
0.4 |
0.4 |
|||||||||||
Adjustments to selling, general and administrative expenses |
0.3 |
0.3 |
0.4 |
0.2 |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
0.0 |
0.0 |
0.0 |
0.0 |
|||||||||||
Certain other expenses (b) |
0.0 |
0.0 |
0.9 |
-0.1 |
|||||||||||
Non-GAAP operating income as a percentage of product sales |
52.1 |
% |
51.1 |
% |
53.6 |
% |
52.3 |
% |
|||||||
GAAP interest and other income, net |
$ |
55 |
$ |
114 |
$ |
69 |
$ |
517 |
|||||||
Adjustments to interest and other income, net (c) |
36 |
— |
— |
— |
|||||||||||
Non-GAAP interest and other income, net |
$ |
91 |
$ |
114 |
$ |
69 |
$ |
517 |
|||||||
GAAP income before income taxes |
$ |
2,206 |
$ |
2,277 |
$ |
6,256 |
$ |
7,155 |
|||||||
Adjustments to operating expenses |
730 |
317 |
2,475 |
910 |
|||||||||||
Adjustments to interest and other income, net |
36 |
— |
— |
— |
|||||||||||
Non-GAAP income before income taxes |
$ |
2,972 |
$ |
2,594 |
$ |
8,731 |
$ |
8,065 |
|||||||
GAAP provision for income taxes |
$ |
185 |
$ |
309 |
$ |
607 |
$ |
1,016 |
|||||||
Adjustments to provision for income taxes: |
|||||||||||||||
Income tax effect of the above adjustments (d) |
160 |
92 |
495 |
230 |
|||||||||||
Other income tax adjustments (e) |
55 |
(8) |
63 |
(35) |
|||||||||||
Total adjustments to provision for income taxes |
215 |
84 |
558 |
195 |
|||||||||||
Non-GAAP provision for income taxes |
$ |
400 |
$ |
393 |
$ |
1,165 |
$ |
1,211 |
|||||||
GAAP tax as a percentage of income before taxes |
8.4 |
% |
13.6 |
% |
9.7 |
% |
14.2 |
% |
|||||||
Adjustments to provision for income taxes: |
|||||||||||||||
Income tax effect of the above adjustments (d) |
3.2 |
1.9 |
2.9 |
1.2 |
|||||||||||
Other income tax adjustments (e) |
1.9 |
-0.3 |
0.7 |
-0.4 |
|||||||||||
Total adjustments to provision for income taxes |
5.1 |
1.6 |
3.6 |
0.8 |
|||||||||||
Non-GAAP tax as a percentage of income before taxes |
13.5 |
% |
15.2 |
% |
13.3 |
% |
15.0 |
% |
|||||||
GAAP net income |
$ |
2,021 |
$ |
1,968 |
$ |
5,649 |
$ |
6,139 |
|||||||
Adjustments to net income: |
|||||||||||||||
Adjustments to income before income taxes, net of the income tax effect |
606 |
225 |
1,980 |
680 |
|||||||||||
Other income tax adjustments (e) |
(55) |
8 |
(63) |
35 |
|||||||||||
Total adjustments to net income |
551 |
233 |
1,917 |
715 |
|||||||||||
Non-GAAP net income |
$ |
2,572 |
$ |
2,201 |
$ |
7,566 |
$ |
6,854 |
|||||||
Note: Numbers may not add due to rounding |
|
|||||||||||||||
GAAP to Non-GAAP Reconciliations |
|||||||||||||||
(In millions, except per-share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
The following table presents the computations for GAAP and non-GAAP diluted earnings per share: |
|||||||||||||||
Three months ended |
Three months ended |
||||||||||||||
GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
||||||||||||
Net income |
$ |
2,021 |
$ |
2,572 |
$ |
1,968 |
$ |
2,201 |
|||||||
Weighted-average shares for diluted EPS |
589 |
589 |
602 |
602 |
|||||||||||
Diluted EPS |
$ |
3.43 |
$ |
4.37 |
$ |
3.27 |
$ |
3.66 |
|||||||
Nine months ended |
Nine months ended |
||||||||||||||
GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
||||||||||||
Net income |
$ |
5,649 |
$ |
7,566 |
$ |
6,139 |
$ |
6,854 |
|||||||
Weighted-average shares for diluted EPS |
592 |
592 |
613 |
613 |
|||||||||||
Diluted EPS |
$ |
9.54 |
$ |
12.78 |
$ |
10.01 |
$ |
11.18 |
(a) |
The adjustments related primarily to noncash amortization of intangible assets from business acquisitions. |
|
(b) |
For the nine months ended |
|
(c) |
For the three months ended |
|
(d) |
The tax effect of the adjustments between our GAAP and non-GAAP results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). Generally, this results in a tax impact at the |
|
(e) |
The adjustments related to certain acquisition items and prior period items excluded from GAAP earnings. |
|
|||||||||||||||
Reconciliations of Cash Flows |
|||||||||||||||
(In millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Net cash provided by operating activities |
$ |
3,368 |
$ |
3,377 |
$ |
8,344 |
$ |
6,636 |
|||||||
Net cash (used in) provided by investing activities |
(1,628) |
5,372 |
(4,017) |
11,672 |
|||||||||||
Net cash used in financing activities |
(1,798) |
(2,859) |
(1,277) |
(13,838) |
|||||||||||
(Decrease) increase in cash and cash equivalents |
(58) |
5,890 |
3,050 |
4,470 |
|||||||||||
Cash and cash equivalents at beginning of period |
9,145 |
5,525 |
6,037 |
6,945 |
|||||||||||
Cash and cash equivalents at end of period |
$ |
9,087 |
$ |
11,415 |
$ |
9,087 |
$ |
11,415 |
|||||||
Three months ended |
Nine months ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Net cash provided by operating activities |
$ |
3,368 |
$ |
3,377 |
$ |
8,344 |
$ |
6,636 |
|||||||
Capital expenditures |
(135) |
(170) |
(435) |
(430) |
|||||||||||
Free cash flow |
$ |
3,233 |
$ |
3,207 |
$ |
7,909 |
$ |
6,206 |
|
||||||||
Reconciliation of GAAP EPS Guidance to Non-GAAP |
||||||||
EPS Guidance for the Year Ending |
||||||||
(Unaudited) |
||||||||
GAAP diluted EPS guidance |
$ |
11.53 |
— |
$ |
11.93 |
|||
Known adjustments to arrive at non-GAAP*: |
||||||||
Acquisition-related expenses (a) |
4.24 |
— |
4.29 |
|||||
Net legal proceedings |
0.09 |
|||||||
Other tax adjustments (b) |
(0.11) |
|||||||
Non-GAAP diluted EPS guidance |
$ |
15.80 |
— |
$ |
16.15 |
* |
The known adjustments are presented net of their related tax impact, which amount to approximately |
(a) |
The adjustments relate primarily to noncash amortization of intangible assets acquired in business acquisitions. |
(b) |
The adjustments related to certain acquisition items and prior period items excluded from GAAP earnings. |
Our GAAP diluted EPS guidance does not include the effect of GAAP adjustments triggered by events that may occur subsequent to this press release such as acquisitions, asset impairments, litigation and changes in the fair value or our contingent consideration.
Reconciliation of GAAP Tax Rate Guidance to Non-GAAP |
||||||
Tax Rate Guidance for the Year Ending |
||||||
(Unaudited) |
||||||
GAAP tax rate guidance |
9.5 |
% |
— |
10.5 |
% |
|
Tax rate of known adjustments discussed above |
3.5% |
|||||
Non-GAAP diluted EPS guidance |
13.0 |
% |
— |
14.0 |
% |
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