"Our newest product, LUMAKRAS®, a first-in-class lung cancer treatment, is off to a strong start and our robust pipeline of potential new medicines across all stages of development sets us up well to drive growth over the long term," said
$Millions, except EPS, dividends paid per share and |
Q3 '21 |
Q3 '20 |
YOY Δ |
|||||||
Total Revenues |
$ |
6,706 |
$ |
6,423 |
4% |
|||||
GAAP Operating Income |
$ |
2,378 |
$ |
2,453 |
(3%) |
|||||
GAAP Net Income |
$ |
1,884 |
$ |
2,021 |
(7%) |
|||||
GAAP EPS |
$ |
3.31 |
$ |
3.43 |
(3%) |
|||||
Non-GAAP Operating Income |
$ |
3,452 |
$ |
3,183 |
8% |
|||||
Non-GAAP Net Income |
$ |
2,664 |
$ |
2,467 |
8% |
|||||
Non-GAAP EPS |
$ |
4.67 |
$ |
4.19 |
11% |
|||||
Dividends Paid Per Share |
$ |
1.76 |
$ |
1.60 |
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. For comparability of results to the prior year, non-GAAP net income and non-GAAP EPS amounts for 2020 have been revised to reflect the update to our non-GAAP policy that excludes gains and losses on certain equity investments. Refer to Non-GAAP Financial Measures below for further discussion.
Product Sales Performance
Total product sales increased 4% for the third quarter of 2021 versus the third quarter of 2020. Unit volumes grew 8% while net selling price declined 7%. In addition, this quarter includes
We continue to see gradual recovery from the impact of the COVID-19 pandemic. As we progressed through the third quarter, we saw improvement in patient visits and diagnoses. Healthcare professional activity also improved during the first half of 2021 and stabilized during the third quarter. Overall, the gap in diagnosis visits over the course of the pandemic has suppressed the number of new patients starting treatment, which we expect will continue to impact our business for the remainder of the year.
General Medicine
Inflammation
Hematology-Oncology
Established Products
Product Sales Detail by Product and
$Millions, except percentages |
Q3 '21 |
Q3 '20 |
YOY Δ |
|||||||||||||||
US |
ROW |
TOTAL |
TOTAL |
TOTAL |
||||||||||||||
Prolia® |
$ |
530 |
$ |
273 |
$ |
803 |
$ |
701 |
15% |
|||||||||
EVENITY® |
94 |
55 |
149 |
59 |
* |
|||||||||||||
Repatha® |
139 |
133 |
272 |
205 |
33% |
|||||||||||||
Aimovig® |
77 |
2 |
79 |
105 |
(25%) |
|||||||||||||
Otezla® |
495 |
114 |
609 |
538 |
13% |
|||||||||||||
Enbrel® |
1,263 |
26 |
1,289 |
1,325 |
(3%) |
|||||||||||||
AMGEVITA™ |
— |
111 |
111 |
80 |
39% |
|||||||||||||
LUMAKRAS®/LUMYKRAS™ |
33 |
3 |
36 |
— |
* |
|||||||||||||
KYPROLIS® |
198 |
95 |
293 |
260 |
13% |
|||||||||||||
XGEVA® |
372 |
145 |
517 |
481 |
7% |
|||||||||||||
Vectibix® |
84 |
116 |
200 |
193 |
4% |
|||||||||||||
Nplate® |
156 |
117 |
273 |
212 |
29% |
|||||||||||||
BLINCYTO® |
74 |
51 |
125 |
89 |
40% |
|||||||||||||
MVASI® |
187 |
87 |
274 |
231 |
19% |
|||||||||||||
KANJINTI® |
92 |
24 |
116 |
167 |
(31%) |
|||||||||||||
Neulasta® |
360 |
55 |
415 |
555 |
(25%) |
|||||||||||||
NEUPOGEN® |
32 |
20 |
52 |
65 |
(20%) |
|||||||||||||
EPOGEN® |
138 |
— |
138 |
149 |
(7%) |
|||||||||||||
Aranesp® |
149 |
247 |
396 |
384 |
3% |
|||||||||||||
Parsabiv® |
24 |
37 |
61 |
183 |
(67%) |
|||||||||||||
Sensipar®/Mimpara™ |
— |
19 |
19 |
39 |
(51%) |
|||||||||||||
Other products** |
61 |
32 |
93 |
83 |
12% |
|||||||||||||
Total product sales |
$ |
4,558 |
$ |
1,762 |
$ |
6,320 |
$ |
6,104 |
4% |
|||||||||
* Change in excess of 100% |
||||||||||||||||||
** Other products includes Corlanor®, GENSENTA, IMLYGIC®, AVSOLA®, Bergamo, and RIABNI™ |
Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:
On a non-GAAP basis:
$Millions, except percentages |
GAAP |
Non-GAAP |
||||||||||||||||||
Q3 '21 |
Q3 '20 |
YOY Δ |
Q3 '21 |
Q3 '20 |
YOY Δ |
|||||||||||||||
Cost of Sales |
$ |
1,609 |
$ |
1,561 |
3% |
$ |
997 |
$ |
874 |
14% |
||||||||||
% of product sales |
25.5% |
25.6% |
(0.1) pts |
15.8% |
14.3% |
1.5 pts |
||||||||||||||
Research & Development |
$ |
1,422 |
$ |
1,062 |
34% |
$ |
997 |
$ |
1,037 |
(4%) |
||||||||||
% of product sales |
22.5% |
17.4% |
5.1 pts |
15.8% |
17.0% |
(1.2) pts |
||||||||||||||
Selling, General & Administrative |
$ |
1,305 |
$ |
1,346 |
(3%) |
$ |
1,260 |
$ |
1,329 |
(5%) |
||||||||||
% of product sales |
20.6% |
22.1% |
(1.5) pts |
19.9% |
21.8% |
(1.9) pts |
||||||||||||||
Other |
$ |
(8) |
$ |
1 |
* |
$ |
— |
$ |
— |
—% |
||||||||||
Total Operating Expenses |
$ |
4,328 |
$ |
3,970 |
9% |
$ |
3,254 |
$ |
3,240 |
—% |
||||||||||
Operating Margin |
||||||||||||||||||||
operating income as % of product sales |
37.6% |
40.2% |
(2.6) pts |
54.6% |
52.1% |
2.5 pts |
||||||||||||||
Tax Rate |
12.6% |
8.4% |
4.2 pts |
13.6% |
13.1% |
0.5 pts |
||||||||||||||
pts: percentage points |
||||||||||||||||||||
* Change in excess of 100% |
Cash Flow and Balance Sheet
$Billions, except shares |
Q3 '21 |
Q3 '20 |
YOY Δ |
|||||||||
Operating Cash Flow |
$ |
2.4 |
$ |
3.4 |
$ |
(1.0) |
||||||
Capital Expenditures |
$ |
0.2 |
$ |
0.1 |
$ |
0.1 |
||||||
Free Cash Flow |
$ |
2.2 |
$ |
3.2 |
$ |
(1.1) |
||||||
Dividends Paid |
$ |
1.0 |
$ |
0.9 |
$ |
0.1 |
||||||
Share Repurchases |
$ |
1.1 |
$ |
0.8 |
$ |
0.3 |
||||||
Average Diluted Shares (millions) |
570 |
589 |
(19) |
|||||||||
Note: Numbers may not add due to rounding |
||||||||||||
$Billions |
|
|
YTD Δ |
|||||||||
Cash and Investments |
$ |
12.9 |
$ |
10.6 |
$ |
2.3 |
||||||
Debt Outstanding |
$ |
37.6 |
$ |
33.0 |
$ |
4.6 |
||||||
Note: Numbers may not add due to rounding |
2021 Guidance
For the full year 2021, the Company now expects:
Third Quarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
LUMAKRAS/LUMYKRAS
BLINCYTO
Bemarituzumab
Acapatamab (AMG 160)
AMG 340 (formerly TNB-585)
Tarlatamab (AMG 757)
Tezepelumab
Otezla
AMG 451 / KHK4083
Rozibafusp alfa (AMG 570)
Efavaleukin alfa (AMG 592)
AMG 714 / PRV-015
Repatha
Olpasiran (AMG 890)
Biosimilars
Tezepelumab is being developed in collaboration with AstraZeneca
AMG 451 (also known as KHK4083) is being developed in collaboration with Kyowa Kirin
AMG 714 (also known as PRV-015) is being developed in collaboration with Provention Bio
DARZALEX® and STELARA® are a registered trademarks of
EYLEA® is a registered trademark of Regeneron Pharmaceuticals, Inc.
SOLIRIS® is a registered trademark of Alexion Pharmaceuticals, Inc.
Non-GAAP Financial Measures
In this news release, management has presented its operating results for the third quarters of 2021 and 2020, 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.
Beginning
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 |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Revenues: |
|||||||||||||||
Product sales |
$ |
6,320 |
$ |
6,104 |
$ |
18,026 |
$ |
17,906 |
|||||||
Other revenues |
386 |
319 |
1,107 |
884 |
|||||||||||
Total revenues |
6,706 |
6,423 |
19,133 |
18,790 |
|||||||||||
Operating expenses: |
|||||||||||||||
Cost of sales |
1,609 |
1,561 |
4,736 |
4,562 |
|||||||||||
Research and development |
1,422 |
1,062 |
3,471 |
2,978 |
|||||||||||
Acquired in-process research and development |
— |
— |
1,505 |
— |
|||||||||||
Selling, general and administrative |
1,305 |
1,346 |
3,943 |
3,957 |
|||||||||||
Other |
(8) |
1 |
143 |
162 |
|||||||||||
Total operating expenses |
4,328 |
3,970 |
13,798 |
11,659 |
|||||||||||
Operating income |
2,378 |
2,453 |
5,335 |
7,131 |
|||||||||||
Other income (expense): |
|||||||||||||||
Interest expense, net |
(296) |
(302) |
(862) |
(944) |
|||||||||||
Other income, net |
73 |
55 |
97 |
69 |
|||||||||||
Income before income taxes |
2,155 |
2,206 |
4,570 |
6,256 |
|||||||||||
Provision for income taxes |
271 |
185 |
576 |
607 |
|||||||||||
Net income |
$ |
1,884 |
$ |
2,021 |
$ |
3,994 |
$ |
5,649 |
|||||||
Earnings per share: |
|||||||||||||||
Basic |
$ |
3.32 |
$ |
3.45 |
$ |
6.98 |
$ |
9.61 |
|||||||
Diluted |
$ |
3.31 |
$ |
3.43 |
$ |
6.93 |
$ |
9.54 |
|||||||
Weighted-average shares used in calculation of earnings per share: |
|||||||||||||||
Basic |
567 |
585 |
572 |
588 |
|||||||||||
Diluted |
570 |
589 |
576 |
592 |
|
Consolidated Balance Sheets - GAAP |
(In millions) |
|
|
||||||
2021 |
2020 |
||||||
(Unaudited) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash, cash equivalents and marketable securities |
$ |
12,921 |
$ |
10,647 |
|||
Trade receivables, net |
4,765 |
4,525 |
|||||
Inventories |
4,152 |
3,893 |
|||||
Other current assets |
2,542 |
2,079 |
|||||
Total current assets |
24,380 |
21,144 |
|||||
Property, plant and equipment, net |
4,982 |
4,889 |
|||||
Intangible assets, net |
14,659 |
16,587 |
|||||
|
14,665 |
14,689 |
|||||
Other noncurrent assets |
6,307 |
5,639 |
|||||
Total assets |
$ |
64,993 |
$ |
62,948 |
|||
Liabilities and Stockholders' Equity |
|||||||
Current liabilities: |
|||||||
Accounts payable and accrued liabilities |
$ |
10,554 |
$ |
11,562 |
|||
Current portion of long-term debt |
4,288 |
91 |
|||||
Total current liabilities |
14,842 |
11,653 |
|||||
Long-term debt |
33,291 |
32,895 |
|||||
Long-term tax liabilities |
6,483 |
6,968 |
|||||
Other noncurrent liabilities |
2,160 |
2,023 |
|||||
Total stockholders' equity |
8,217 |
9,409 |
|||||
Total liabilities and stockholders' equity |
$ |
64,993 |
$ |
62,948 |
|||
Shares outstanding |
565 |
578 |
|
GAAP to Non-GAAP Reconciliations |
(Dollars in millions) |
(Unaudited) |
Three months ended |
Nine months ended |
||||||||||||||
2021 |
2020* |
2021 |
2020* |
||||||||||||
GAAP cost of sales |
$ |
1,609 |
$ |
1,561 |
$ |
4,736 |
$ |
4,562 |
|||||||
Adjustments to cost of sales: |
|||||||||||||||
Acquisition-related expenses (a) |
(606) |
(687) |
(1,827) |
(2,159) |
|||||||||||
Other |
(6) |
— |
(11) |
— |
|||||||||||
Total adjustments to cost of sales |
(612) |
(687) |
(1,838) |
(2,159) |
|||||||||||
Non-GAAP cost of sales |
$ |
997 |
$ |
874 |
$ |
2,898 |
$ |
2,403 |
|||||||
GAAP cost of sales as a percentage of product sales |
25.5 |
% |
25.6 |
% |
26.3 |
% |
25.5 |
% |
|||||||
Acquisition-related expenses (a) |
(9.6) |
(11.3) |
(10.1) |
(12.1) |
|||||||||||
Other |
(0.1) |
0.0 |
(0.1) |
0.0 |
|||||||||||
Non-GAAP cost of sales as a percentage of product sales |
15.8 |
% |
14.3 |
% |
16.1 |
% |
13.4 |
% |
|||||||
GAAP research and development expenses |
$ |
1,422 |
$ |
1,062 |
$ |
3,471 |
$ |
2,978 |
|||||||
Adjustments to research and development expenses: |
|||||||||||||||
Licensing- and acquisition-related expenses (b) |
(425) |
(24) |
(494) |
(77) |
|||||||||||
Certain net charges pursuant to our cost savings initiatives |
— |
(1) |
— |
(1) |
|||||||||||
Total adjustments to research and development expenses |
(425) |
(25) |
(494) |
(78) |
|||||||||||
Non-GAAP research and development expenses |
$ |
997 |
$ |
1,037 |
$ |
2,977 |
$ |
2,900 |
|||||||
GAAP research and development expenses as a percentage of product sales |
22.5 |
% |
17.4 |
% |
19.3 |
% |
16.6 |
% |
|||||||
Licensing- and acquisition-related expenses (b) |
(6.7) |
(0.4) |
(2.8) |
(0.4) |
|||||||||||
Certain net charges pursuant to our cost savings initiatives |
0.0 |
0.0 |
0.0 |
0.0 |
|||||||||||
Non-GAAP research and development expenses as a percentage of product sales |
15.8 |
% |
17.0 |
% |
16.5 |
% |
16.2 |
% |
|||||||
GAAP acquired IPR&D |
$ |
— |
$ |
— |
$ |
1,505 |
$ |
— |
|||||||
Adjustments to acquired IPR&D: |
|||||||||||||||
Five Prime acquisition IPR&D expense |
— |
— |
(1,505) |
— |
|||||||||||
Non-GAAP acquired IPR&D |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
|||||||
GAAP acquired IPR&D expenses as a percentage of product sales |
— |
% |
— |
% |
8.3 |
% |
— |
% |
|||||||
Five Prime acquisition IPR&D expense |
0.0 |
0.0 |
(8.3) |
0.0 |
|||||||||||
Non-GAAP acquired IPR&D expenses as a percentage of product sales |
— |
% |
— |
% |
— |
% |
— |
% |
|||||||
GAAP selling, general and administrative expenses |
$ |
1,305 |
$ |
1,346 |
$ |
3,943 |
$ |
3,957 |
|||||||
Adjustments to selling, general and administrative expenses: |
|||||||||||||||
Acquisition-related expenses (a) |
(16) |
(15) |
(67) |
(74) |
|||||||||||
Other |
(29) |
(2) |
(45) |
(2) |
|||||||||||
Total adjustments to selling, general and administrative expenses |
(45) |
(17) |
(112) |
(76) |
|||||||||||
Non-GAAP selling, general and administrative expenses |
$ |
1,260 |
$ |
1,329 |
$ |
3,831 |
$ |
3,881 |
|||||||
GAAP selling, general and administrative expenses as a percentage of product sales |
20.6 |
% |
22.1 |
% |
21.9 |
% |
22.1 |
% |
|||||||
Acquisition-related expenses (a) |
(0.2) |
(0.3) |
(0.4) |
(0.4) |
|||||||||||
Other |
(0.5) |
0.0 |
(0.2) |
0.0 |
|||||||||||
Non-GAAP selling, general and administrative expenses as a percentage of product sales |
19.9 |
% |
21.8 |
% |
21.3 |
% |
21.7 |
% |
|||||||
GAAP operating expenses |
$ |
4,328 |
$ |
3,970 |
$ |
13,798 |
$ |
11,659 |
|||||||
Adjustments to operating expenses: |
|||||||||||||||
Adjustments to cost of sales |
(612) |
(687) |
(1,838) |
(2,159) |
|||||||||||
Adjustments to research and development expenses |
(425) |
(25) |
(494) |
(78) |
|||||||||||
Adjustments to acquired IPR&D |
— |
— |
(1,505) |
— |
|||||||||||
Adjustments to selling, general and administrative expenses |
(45) |
(17) |
(112) |
(76) |
|||||||||||
Certain charges pursuant to our cost savings initiatives |
(1) |
— |
(129) |
4 |
|||||||||||
Certain other expenses (c) |
9 |
(1) |
(14) |
(166) |
|||||||||||
Total adjustments to operating expenses |
(1,074) |
(730) |
(4,092) |
(2,475) |
|||||||||||
Non-GAAP operating expenses |
$ |
3,254 |
$ |
3,240 |
$ |
9,706 |
$ |
9,184 |
|||||||
Three months ended |
Nine months ended |
||||||||||||||
2021 |
2020* |
2021 |
2020* |
||||||||||||
GAAP operating income |
$ |
2,378 |
$ |
2,453 |
$ |
5,335 |
$ |
7,131 |
|||||||
Adjustments to operating expenses |
1,074 |
730 |
4,092 |
2,475 |
|||||||||||
Non-GAAP operating income |
$ |
3,452 |
$ |
3,183 |
$ |
9,427 |
$ |
9,606 |
|||||||
GAAP operating income as a percentage of product sales |
37.6 |
% |
40.2 |
% |
29.6 |
% |
39.8 |
% |
|||||||
Adjustments to cost of sales |
9.7 |
11.3 |
10.2 |
12.1 |
|||||||||||
Adjustments to research and development expenses |
6.7 |
0.4 |
2.8 |
0.4 |
|||||||||||
Acquired IPR&D |
0.0 |
0.0 |
8.3 |
0.0 |
|||||||||||
Adjustments to selling, general and administrative expenses |
0.7 |
0.3 |
0.6 |
0.4 |
|||||||||||
Certain charges pursuant to our cost savings initiatives |
0.0 |
0.0 |
0.7 |
0.0 |
|||||||||||
Certain other expenses (c) |
(0.1) |
0.0 |
0.1 |
0.9 |
|||||||||||
Non-GAAP operating income as a percentage of product sales |
54.6 |
% |
52.1 |
% |
52.3 |
% |
53.6 |
% |
|||||||
GAAP other income, net |
$ |
73 |
$ |
55 |
$ |
97 |
$ |
69 |
|||||||
Adjustments to other income (expense), net: |
|||||||||||||||
Equity method investment basis difference amortization |
44 |
36 |
128 |
72 |
|||||||||||
Net (gains)/losses from equity investments |
(191) |
(134) |
(335) |
(139) |
|||||||||||
Gain from legal judgment proceeds |
— |
— |
— |
(72) |
|||||||||||
Total adjustments to other income (expense), net |
(147) |
(98) |
(207) |
(139) |
|||||||||||
Non-GAAP other income (expense), net |
$ |
(74) |
(43) |
$ |
(110) |
(70) |
|||||||||
GAAP income before income taxes |
$ |
2,155 |
$ |
2,206 |
$ |
4,570 |
$ |
6,256 |
|||||||
Adjustments to income before income taxes: |
|||||||||||||||
Adjustments to operating expenses |
1,074 |
730 |
4,092 |
2,475 |
|||||||||||
Adjustments to other income, net |
(147) |
(98) |
(207) |
(139) |
|||||||||||
Total adjustments to income before income taxes |
927 |
632 |
$ |
3,885 |
$ |
2,336 |
|||||||||
Non-GAAP income before income taxes |
$ |
3,082 |
$ |
2,838 |
$ |
8,455 |
$ |
8,592 |
|||||||
GAAP provision for income taxes |
$ |
271 |
$ |
185 |
$ |
576 |
$ |
607 |
|||||||
Adjustments to provision for income taxes: |
|||||||||||||||
Income tax effect of the above adjustments (d) |
118 |
131 |
526 |
465 |
|||||||||||
Other income tax adjustments (e) |
29 |
55 |
17 |
63 |
|||||||||||
Total adjustments to provision for income taxes |
147 |
186 |
543 |
528 |
|||||||||||
Non-GAAP provision for income taxes |
$ |
418 |
$ |
371 |
$ |
1,119 |
$ |
1,135 |
|||||||
GAAP tax as a percentage of income before taxes |
12.6 |
% |
8.4 |
% |
12.6 |
% |
9.7 |
% |
|||||||
Adjustments to provision for income taxes: |
|||||||||||||||
Income tax effect of the above adjustments (d) |
0.1 |
2.8 |
0.4 |
2.8 |
|||||||||||
Other income tax adjustments (e) |
0.9 |
1.9 |
0.2 |
0.7 |
|||||||||||
Total adjustments to provision for income taxes |
1.0 |
4.7 |
0.6 |
3.5 |
|||||||||||
Non-GAAP tax as a percentage of income before taxes |
13.6 |
% |
13.1 |
% |
13.2 |
% |
13.2 |
% |
|||||||
GAAP net income |
$ |
1,884 |
$ |
2,021 |
$ |
3,994 |
$ |
5,649 |
|||||||
Adjustments to net income: |
|||||||||||||||
Adjustments to income before income taxes, net of the income tax effect |
809 |
501 |
3,359 |
1,871 |
|||||||||||
Other income tax adjustments (e) |
(29) |
(55) |
(17) |
(63) |
|||||||||||
Total adjustments to net income |
780 |
446 |
3,342 |
1,808 |
|||||||||||
Non-GAAP net income |
$ |
2,664 |
2,467 |
$ |
7,336 |
$ |
7,457 |
||||||||
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 |
$ |
1,884 |
$ |
2,664 |
$ |
2,021 |
$ |
2,467 |
|||||||
Weighted-average shares for diluted EPS |
570 |
570 |
589 |
589 |
|||||||||||
Diluted EPS |
$ |
3.31 |
$ |
4.67 |
$ |
3.43 |
$ |
4.19 |
|||||||
Nine months ended |
Nine months ended |
||||||||||||||
GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
||||||||||||
Net income |
$ |
3,994 |
$ |
7,336 |
$ |
5,649 |
$ |
7,457 |
|||||||
Weighted-average shares for diluted EPS |
576 |
576 |
592 |
592 |
|||||||||||
Diluted EPS |
$ |
6.93 |
$ |
12.74 |
$ |
9.54 |
$ |
12.60 |
*Effective |
(a) |
The adjustments related primarily to noncash amortization of intangible assets from business acquisitions. |
|
(b) |
The adjustments for the three and nine months ended |
|
(c) |
For the three and nine 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, prior period and other items excluded from GAAP earnings. |
|
Reconciliations of Cash Flows |
(In millions) |
(Unaudited) |
Three months ended |
Nine months ended |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Net cash provided by operating activities |
$ |
2,418 |
$ |
3,368 |
$ |
6,453 |
$ |
8,344 |
|||||||
Net cash provided by (used in) investing activities |
73 |
(1,628) |
963 |
(4,017) |
|||||||||||
Net cash provided by (used in) financing activities |
2,848 |
(1,798) |
(1,713) |
(1,277) |
|||||||||||
Increase (decrease) in cash and cash equivalents |
5,339 |
(58) |
5,703 |
3,050 |
|||||||||||
Cash and cash equivalents at beginning of period |
6,630 |
9,145 |
6,266 |
6,037 |
|||||||||||
Cash and cash equivalents at end of period |
$ |
11,969 |
$ |
9,087 |
$ |
11,969 |
$ |
9,087 |
|||||||
Three months ended |
Nine months ended |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Net cash provided by operating activities |
$ |
2,418 |
$ |
3,368 |
$ |
6,453 |
$ |
8,344 |
|||||||
Capital expenditures |
(242) |
(135) |
(593) |
(435) |
|||||||||||
Free cash flow |
$ |
2,176 |
$ |
3,233 |
$ |
5,860 |
$ |
7,909 |
|
Reconciliation of GAAP EPS Guidance to Non-GAAP |
EPS Guidance for the Year Ending |
(Unaudited) |
GAAP diluted EPS guidance |
$ |
9.55 |
— |
$ |
10.21 |
|||
Known adjustments to arrive at non-GAAP*: |
||||||||
Acquisition-related and licensing expenses (a) |
4.46 |
— |
4.52 |
|||||
Acquired IPR&D (b) |
2.62 |
|||||||
Certain charges pursuant to our cost savings initiatives |
0.21 |
|||||||
Net gains from equity investments |
(0.46) |
|||||||
Legal proceedings |
0.06 |
|||||||
Non-GAAP diluted EPS guidance |
$ |
16.50 |
— |
$ |
17.10 |
* 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 and licensing-related expense related to an upfront payment to enter into a license and collaboration agreement. |
(b) The adjustment relates to in-process research & development (IPR&D) expense as a result of acquiring Five Prime Therapeutics. The acquired IPR&D is not tax deductible. |
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, changes in the fair value of our contingent consideration and changes in fair value of our equity investments. The GAAP adjustments from the recently announced acquisition of |
Reconciliation of GAAP Tax Rate Guidance to Non-GAAP |
Tax Rate Guidance for the Year Ending |
(Unaudited) |
GAAP tax rate guidance |
12.5 |
% |
— |
14.0 |
% |
|
Tax rate of known adjustments discussed above |
0.0 |
% |
— |
0.5 |
% |
|
Non-GAAP tax rate guidance |
13.0 |
% |
— |
14.0 |
% |
Reconciliation of 2020 Non-GAAP Financial Information As Reported to Updated Non-GAAP Policy |
2020 Non-GAAP Financial Results - Excluding gains and losses from equity investments |
(Unaudited) |
Effective |
$Millions, except EPS |
Q1 '20 |
Q2 '20 |
Q3 '20 |
Q4 '20 |
FY '20 |
|||||
Net income (as reported) |
|
|
|
|
|
|||||
Equity securities losses (gains) |
39 |
(44) |
(134) |
(265) |
(404) |
|||||
Tax impact |
(9) |
10 |
29 |
58 |
88 |
|||||
Net income (adjusted) |
|
|
|
|
|
|||||
Diluted shares |
594 |
592 |
589 |
585 |
590 |
|||||
Diluted EPS (as reported) |
|
|
|
|
|
|||||
Diluted EPS (adjusted) |
|
|
|
|
|
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