"We are excited about our pipeline progress and our operating performance in the third quarter," said
Key results include:
References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis" and "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. Refer to Non-GAAP Financial Measures below for further discussion.
1 The accounting impact of this acquisition and the results of operations for Horizon Therapeutics plc will be included in our consolidated financial statements beginning in the fourth quarter of 2023. |
Product Sales Performance
Total product sales increased 5% for the third quarter of 2023 versus the third quarter of 2022. Unit volumes grew 11%, partially offset by 3% lower net selling price and 3% unfavorable changes to estimated sales deductions.
General Medicine
Inflammation
Hematology-Oncology
Established Products
Product Sales Detail by Product and
$Millions, except percentages |
Q3 '23 |
Q3 '22 |
YOY Δ |
|||||||
US |
ROW |
TOTAL |
TOTAL |
TOTAL |
||||||
Repatha® |
$ 183 |
$ 223 |
$ 406 |
$ 309 |
31 % |
|||||
Prolia® |
673 |
313 |
986 |
862 |
14 % |
|||||
EVENITY® |
214 |
93 |
307 |
201 |
53 % |
|||||
Aimovig® |
88 |
6 |
94 |
107 |
(12 %) |
|||||
TEZSPIRE® |
161 |
— |
161 |
55 |
* |
|||||
TAVNEOS® |
32 |
5 |
37 |
— |
NM |
|||||
Otezla® |
462 |
105 |
567 |
627 |
(10 %) |
|||||
Enbrel® |
1,026 |
9 |
1,035 |
1,106 |
(6 %) |
|||||
AMJEVITA®/AMGEVITA™ |
23 |
129 |
152 |
117 |
30 % |
|||||
BLINCYTO® |
147 |
73 |
220 |
142 |
55 % |
|||||
Vectibix® |
116 |
136 |
252 |
247 |
2 % |
|||||
KYPROLIS® |
231 |
118 |
349 |
318 |
10 % |
|||||
LUMAKRAS®/LUMYKRAS™ |
48 |
4 |
52 |
75 |
(31 %) |
|||||
XGEVA® |
374 |
145 |
519 |
495 |
5 % |
|||||
Nplate® |
322 |
97 |
419 |
288 |
45 % |
|||||
MVASI® |
140 |
73 |
213 |
209 |
2 % |
|||||
KANJINTI® |
7 |
13 |
20 |
72 |
(72 %) |
|||||
EPOGEN® |
50 |
— |
50 |
136 |
(63 %) |
|||||
Aranesp® |
107 |
216 |
323 |
358 |
(10 %) |
|||||
Parsabiv® |
59 |
36 |
95 |
100 |
(5 %) |
|||||
Neulasta® |
92 |
32 |
124 |
247 |
(50 %) |
|||||
Other products** |
136 |
31 |
167 |
166 |
1 % |
|||||
Total product sales |
$ 4,691 |
$ 1,857 |
$ 6,548 |
$ 6,237 |
5 % |
|||||
*Change in excess of 100% |
||||||||||
**Consists of AVSOLA®, RIABNI®, Corlanor®, NEUPOGEN®, IMLYGIC®, Sensipar®/Mimpara™ and BEKEMV™, as well as sales in prior periods of our divested |
||||||||||
NM = not meaningful |
Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:
On a non-GAAP basis:
$Millions, except percentages |
GAAP |
Non-GAAP |
||||||||||
Q3 '23 |
Q3 '22 |
YOY Δ |
Q3 '23 |
Q3 '22 |
YOY Δ |
|||||||
Cost of Sales |
$ 1,806 |
$ 1,588 |
14 % |
$ 1,137 |
$ 1,003 |
13 % |
||||||
% of product sales |
27.6 % |
25.5 % |
2.1 pts |
17.4 % |
16.1 % |
1.3 pts |
||||||
Research & Development |
$ 1,079 |
$ 1,112 |
(3 %) |
$ 1,070 |
$ 1,096 |
(2 %) |
||||||
% of product sales |
16.5 % |
17.8 % |
(1.3) pts |
16.3 % |
17.6 % |
(1.3) pts |
||||||
Selling, General & Administrative |
$ 1,353 |
$ 1,287 |
5 % |
$ 1,293 |
$ 1,276 |
1 % |
||||||
% of product sales |
20.7 % |
20.6 % |
0.1 pts |
19.7 % |
20.5 % |
(0.8) pts |
||||||
Other |
$ 644 |
$ 5 |
* |
$ — |
$ — |
NM |
||||||
Total Operating Expenses |
$ 4,882 |
$ 3,992 |
22 % |
|
|
4 % |
||||||
Operating Margin |
||||||||||||
operating income as % of product sales |
30.9 % |
42.6 % |
(11.7) pts |
52.0 % |
52.5 % |
(0.5) pts |
||||||
Tax Rate |
11.1 % |
10.4 % |
0.7 pts |
16.1 % |
12.9 % |
3.2 pts |
||||||
pts: percentage points |
||||||||||||
* change in excess of 100% |
||||||||||||
NM = not meaningful |
Cash Flow and Balance Sheet
$Billions, except shares |
Q3 '23 |
Q3 '22 |
YOY Δ |
|||
Operating Cash Flow |
$ 2.8 |
$ 3.0 |
$ (0.2) |
|||
Capital Expenditures |
$ 0.2 |
$ 0.2 |
$ 0.1 |
|||
Free Cash Flow |
$ 2.5 |
$ 2.8 |
$ (0.3) |
|||
Dividends Paid |
$ 1.1 |
$ 1.0 |
$ 0.1 |
|||
Share Repurchases |
$ — |
$ — |
$ 0.0 |
|||
Average Diluted Shares (millions) |
538 |
538 |
0 |
|||
Note: Numbers may not add due to rounding |
||||||
$Billions |
|
|
YTD Δ |
|||
Cash and Investments |
$ 34.7 |
$ 9.3 |
$ 25.4 |
|||
Debt Outstanding |
$ 60.5 |
$ 38.9 |
$ 21.5 |
|||
Note: Numbers may not add due to rounding |
2023 Guidance
For the full year 2023, the Company now expects:
Third Quarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
Oncology
Tarlatamab (AMG 757)
BLINCYTO
Xaluritamig (AMG 509)
AMG 193
LUMAKRAS/LUMYKRAS
Bemarituzumab
AMG 340
General Medicine
Maridebart cafraglutide (AMG 133)
AMG 786
Olpasiran (AMG 890)
Repatha
Inflammation
TEZSPIRE
Rocatinlimab (AMG 451/KHK4083)
Otezla
TAVNEOS
Efavaleukin alfa (AMG 592)
Ordesekimab (AMG 714/PRV-015)
Biosimilars
1National Comprehensive Cancer Network® (NCCN®) makes no warranties of any kind whatsoever regarding their content, use or application and disclaims any responsibility for their application or use in any way.
2 Previously provided in the publicly available ODAC briefing book.
TEZSPIRE is being developed in collaboration with AstraZeneca.
Rocatinlimab, formerly AMG 451/KHK4083, is being developed in collaboration with Kyowa Kirin.
Ordesekimab, formerly AMG 714 and also known as PRV-015, is being developed in collaboration with
Xaluritamig, formerly AMG 509, is being developed pursuant to a research collaboration with Xencor, Inc.
IDE397 is an investigational MAT2A inhibitor from IDEAYA Biosciences.
OPDIVO is a registered trademark of Bristol-Myers Squibb Company.
EYLEA is a registered trademark of Regeneron Pharmaceuticals, Inc.
Non-GAAP Financial Measures
In this news release, management has presented its operating results for the third quarters of 2023 and 2022, 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 normal and recurring business activities by facilitating comparisons of results of normal and recurring 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 Amgen.com and follow us on X (formerly known as Twitter), LinkedIn, Instagram,
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 |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Revenues: |
|||||||
Product sales |
$ 6,548 |
$ 6,237 |
$ 19,077 |
$ 18,249 |
|||
Other revenues |
355 |
415 |
917 |
1,235 |
|||
Total revenues |
6,903 |
6,652 |
19,994 |
19,484 |
|||
Operating expenses: |
|||||||
Cost of sales |
1,806 |
1,588 |
5,339 |
4,659 |
|||
Research and development |
1,079 |
1,112 |
3,250 |
3,110 |
|||
Selling, general and administrative |
1,353 |
1,287 |
3,905 |
3,842 |
|||
Other |
644 |
5 |
874 |
537 |
|||
Total operating expenses |
4,882 |
3,992 |
13,368 |
12,148 |
|||
Operating income |
2,021 |
2,660 |
6,626 |
7,336 |
|||
Other income (expense): |
|||||||
Interest expense, net |
(759) |
(368) |
(2,054) |
(991) |
|||
Other income (expense), net |
685 |
100 |
2,431 |
(747) |
|||
Income before income taxes |
1,947 |
2,392 |
7,003 |
5,598 |
|||
Provision for income taxes |
217 |
249 |
1,053 |
662 |
|||
Net income |
$ 1,730 |
$ 2,143 |
$ 5,950 |
$ 4,936 |
|||
Earnings per share: |
|||||||
Basic |
$ 3.23 |
$ 4.01 |
$ 11.12 |
$ 9.16 |
|||
Diluted |
$ 3.22 |
$ 3.98 |
$ 11.06 |
$ 9.11 |
|||
Weighted-average shares used in calculation of earnings per share: |
|||||||
Basic |
535 |
535 |
535 |
539 |
|||
Diluted |
538 |
538 |
538 |
542 |
Consolidated Balance Sheets - GAAP (In millions) |
|||
|
|
||
2023 |
2022 |
||
(Unaudited) |
|||
Assets |
|||
Current assets: |
|||
Cash, cash equivalents and marketable securities |
$ 34,741 |
$ 9,305 |
|
Trade receivables, net |
6,145 |
5,563 |
|
Inventories |
5,026 |
4,930 |
|
Other current assets |
2,565 |
2,388 |
|
Total current assets |
48,477 |
22,186 |
|
Property, plant and equipment, net |
5,563 |
5,427 |
|
Intangible assets, net |
13,150 |
16,080 |
|
|
15,509 |
15,529 |
|
Other noncurrent assets |
7,835 |
5,899 |
|
Total assets |
$ 90,534 |
$ 65,121 |
|
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Accounts payable and accrued liabilities |
$ 15,526 |
$ 14,096 |
|
Current portion of long-term debt |
1,428 |
1,591 |
|
Total current liabilities |
16,954 |
15,687 |
|
Long-term debt |
59,040 |
37,354 |
|
Long-term tax liabilities |
4,579 |
5,757 |
|
Other noncurrent liabilities |
2,305 |
2,662 |
|
Total stockholders' equity |
7,656 |
3,661 |
|
Total liabilities and stockholders' equity |
$ 90,534 |
$ 65,121 |
|
Shares outstanding |
535 |
534 |
GAAP to Non-GAAP Reconciliations (Dollars in millions) (Unaudited) |
|||||||
Three months ended |
Nine months ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
GAAP cost of sales |
$ 1,806 |
$ 1,588 |
$ 5,339 |
$ 4,659 |
|||
Adjustments to cost of sales: |
|||||||
Acquisition-related expenses (a) |
(668) |
(585) |
(2,008) |
(1,779) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
(1) |
— |
(36) |
— |
|||
Total adjustments to cost of sales |
(669) |
(585) |
(2,044) |
(1,779) |
|||
Non-GAAP cost of sales |
$ 1,137 |
$ 1,003 |
$ 3,295 |
$ 2,880 |
|||
GAAP cost of sales as a percentage of product sales |
27.6 % |
25.5 % |
28.0 % |
25.5 % |
|||
Acquisition-related expenses (a) |
(10.2) |
(9.4) |
(10.5) |
(9.7) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
0.0 |
0.0 |
(0.2) |
0.0 |
|||
Non-GAAP cost of sales as a percentage of product sales |
17.4 % |
16.1 % |
17.3 % |
15.8 % |
|||
GAAP research and development expenses |
$ 1,079 |
$ 1,112 |
$ 3,250 |
$ 3,110 |
|||
Adjustments to research and development expenses: |
|||||||
Acquisition-related expenses (a) |
(9) |
(16) |
(27) |
(60) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
— |
— |
(17) |
— |
|||
Total adjustments to research and development expenses |
(9) |
(16) |
(44) |
(60) |
|||
Non-GAAP research and development expenses |
$ 1,070 |
$ 1,096 |
$ 3,206 |
$ 3,050 |
|||
GAAP research and development expenses as a percentage of product sales |
16.5 % |
17.8 % |
17.0 % |
17.0 % |
|||
Acquisition-related expenses (a) |
(0.2) |
(0.2) |
(0.1) |
(0.3) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
0.0 |
0.0 |
(0.1) |
0.0 |
|||
Non-GAAP research and development expenses as a percentage of product sales |
16.3 % |
17.6 % |
16.8 % |
16.7 % |
|||
GAAP selling, general and administrative expenses |
$ 1,353 |
$ 1,287 |
$ 3,905 |
$ 3,842 |
|||
Adjustments to selling, general and administrative expenses: |
|||||||
Acquisition-related expenses (a) |
(47) |
(11) |
(138) |
(40) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
(13) |
— |
(13) |
— |
|||
Total adjustments to selling, general and administrative expenses |
(60) |
(11) |
(151) |
(40) |
|||
Non-GAAP selling, general and administrative expenses |
$ 1,293 |
$ 1,276 |
$ 3,754 |
$ 3,802 |
|||
GAAP selling, general and administrative expenses as a percentage of product sales |
20.7 % |
20.6 % |
20.5 % |
21.1 % |
|||
Acquisition-related expenses (a) |
(0.8) |
(0.1) |
(0.7) |
(0.3) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
(0.2) |
0.0 |
(0.1) |
0.0 |
|||
Non-GAAP selling, general and administrative expenses as a percentage of product sales |
19.7 % |
20.5 % |
19.7 % |
20.8 % |
|||
GAAP operating expenses |
$ 4,882 |
$ 3,992 |
$ 13,368 |
$ 12,148 |
|||
Adjustments to operating expenses: |
|||||||
Adjustments to cost of sales |
(669) |
(585) |
(2,044) |
(1,779) |
|||
Adjustments to research and development expenses |
(9) |
(16) |
(44) |
(60) |
|||
Adjustments to selling, general and administrative expenses |
(60) |
(11) |
(151) |
(40) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives (b) |
(16) |
8 |
(183) |
7 |
|||
Certain other expenses (c) |
(628) |
(13) |
(691) |
(544) |
|||
Total adjustments to operating expenses |
(1,382) |
(617) |
(3,113) |
(2,416) |
|||
Non-GAAP operating expenses |
$ 3,500 |
$ 3,375 |
$ 10,255 |
$ 9,732 |
|||
Three months ended |
Nine months ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
GAAP operating income |
$ 2,021 |
$ 2,660 |
$ 6,626 |
$ 7,336 |
|||
Adjustments to operating expenses |
1,382 |
617 |
3,113 |
2,416 |
|||
Non-GAAP operating income |
$ 3,403 |
$ 3,277 |
$ 9,739 |
$ 9,752 |
|||
GAAP operating income as a percentage of product sales |
30.9 % |
42.6 % |
34.7 % |
40.2 % |
|||
Adjustments to cost of sales |
10.2 |
9.4 |
10.7 |
9.7 |
|||
Adjustments to research and development expenses |
0.2 |
0.2 |
0.2 |
0.3 |
|||
Adjustments to selling, general and administrative expenses |
1.0 |
0.1 |
0.8 |
0.3 |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives (b) |
0.2 |
0.0 |
1.0 |
0.0 |
|||
Certain other expenses (c) |
9.5 |
0.2 |
3.7 |
2.9 |
|||
Non-GAAP operating income as a percentage of product sales |
52.0 % |
52.5 % |
51.1 % |
53.4 % |
|||
GAAP interest expense, net |
$ (759) |
$ (368) |
$ (2,054) |
$ (991) |
|||
Adjustments to interest expense, net: |
|||||||
Interest expense on acquisition-related debt (d) |
332 |
— |
788 |
— |
|||
Non-GAAP interest expense, net |
$ (427) |
$ (368) |
$ (1,266) |
$ (991) |
|||
GAAP other income (expense), net |
$ 685 |
$ 100 |
$ 2,431 |
$ (747) |
|||
Adjustments to other income (expense), net |
|||||||
Interest income and other expenses on acquisition-related debt (d) |
(313) |
— |
(607) |
— |
|||
Equity method investment basis difference amortization |
— |
47 |
— |
143 |
|||
Net (gains)/losses from equity investments (e) |
(170) |
(150) |
(1,305) |
401 |
|||
Total adjustments to other income (expense), net |
(483) |
(103) |
(1,912) |
544 |
|||
Non-GAAP other income (expense), net |
$ 202 |
$ (3) |
$ 519 |
$ (203) |
|||
GAAP income before income taxes |
$ 1,947 |
$ 2,392 |
$ 7,003 |
$ 5,598 |
|||
Adjustments to income before income taxes: |
|||||||
Adjustments to operating expenses |
1,382 |
617 |
3,113 |
2,416 |
|||
Adjustments to interest expense, net |
332 |
— |
788 |
— |
|||
Adjustments to other income (expense), net |
(483) |
(103) |
(1,912) |
544 |
|||
Total adjustments to income before income taxes |
1,231 |
514 |
1,989 |
2,960 |
|||
Non-GAAP income before income taxes |
$ 3,178 |
$ 2,906 |
$ 8,992 |
$ 8,558 |
|||
GAAP provision for income taxes |
$ 217 |
$ 249 |
$ 1,053 |
$ 662 |
|||
Adjustments to provision for income taxes: |
|||||||
Income tax effect of the above adjustments (f) |
271 |
122 |
442 |
527 |
|||
Other income tax adjustments (g) |
23 |
5 |
6 |
1 |
|||
Total adjustments to provision for income taxes |
294 |
127 |
448 |
528 |
|||
Non-GAAP provision for income taxes |
$ 511 |
$ 376 |
$ 1,501 |
$ 1,190 |
|||
GAAP tax as a percentage of income before taxes |
11.1 % |
10.4 % |
15.0 % |
11.8 % |
|||
Adjustments to provision for income taxes: |
|||||||
Income tax effect of the above adjustments (f) |
4.2 |
2.3 |
1.6 |
2.1 |
|||
Other income tax adjustments (g) |
0.8 |
0.2 |
0.1 |
0.0 |
|||
Total adjustments to provision for income taxes |
5.0 |
2.5 |
1.7 |
2.1 |
|||
Non-GAAP tax as a percentage of income before taxes |
16.1 % |
12.9 % |
16.7 % |
13.9 % |
|||
GAAP net income |
$ 1,730 |
$ 2,143 |
$ 5,950 |
$ 4,936 |
|||
Adjustments to net income: |
|||||||
Adjustments to income before income taxes, net of the income tax effect |
960 |
392 |
1,547 |
2,433 |
|||
Other income tax adjustments (g) |
(23) |
(5) |
(6) |
(1) |
|||
Total adjustments to net income |
937 |
387 |
1,541 |
2,432 |
|||
Non-GAAP net income |
$ 2,667 |
$ 2,530 |
$ 7,491 |
$ 7,368 |
|||
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 |
$ 1,730 |
$ 2,667 |
$ 2,143 |
$ 2,530 |
|||
Weighted-average shares for diluted EPS |
538 |
538 |
538 |
538 |
|||
Diluted EPS |
$ 3.22 |
$ 4.96 |
$ 3.98 |
$ 4.70 |
|||
Nine months ended |
Nine months ended |
||||||
GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
||||
Net income |
$ 5,950 |
$ 7,491 |
$ 4,936 |
$ 7,368 |
|||
Weighted-average shares for diluted EPS |
538 |
538 |
542 |
542 |
|||
Diluted EPS |
$ 11.06 |
$ 13.92 |
$ 9.11 |
$ 13.59 |
(a) |
The adjustments related primarily to noncash amortization of intangible assets from business acquisitions. |
(b) |
For the three and nine months ended |
(c) |
For the three and nine months ended |
(d) |
For the three and nine months ended |
(e) |
For the nine months ended |
(f) |
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 |
(g) |
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 |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Net cash provided by operating activities |
$ 2,760 |
$ 2,978 |
$ 7,933 |
$ 7,072 |
|||
Net cash (used in) provided by investing activities |
(262) |
(267) |
885 |
(2,571) |
|||
Net cash (used in) provided by financing activities |
(2,005) |
1,588 |
18,294 |
(2,988) |
|||
Increase in cash and cash equivalents |
493 |
4,299 |
27,112 |
1,513 |
|||
Cash and cash equivalents at beginning of period |
34,248 |
5,203 |
7,629 |
7,989 |
|||
Cash and cash equivalents at end of period |
$ 34,741 |
$ 9,502 |
$ 34,741 |
$ 9,502 |
|||
Three months ended |
Nine months ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Net cash provided by operating activities |
$ 2,760 |
$ 2,978 |
$ 7,933 |
$ 7,072 |
|||
Capital expenditures |
(248) |
(160) |
(863) |
(596) |
|||
Free cash flow |
$ 2,512 |
$ 2,818 |
$ 7,070 |
$ 6,476 |
Reconciliation of GAAP EPS Guidance to Non-GAAP EPS Guidance for the Year Ending (Unaudited) |
||||
GAAP diluted EPS guidance |
|
— |
|
|
Known adjustments to arrive at non-GAAP*: |
||||
Acquisition-related expenses (a) |
7.60 |
— |
8.35 |
|
Net charges related to restructuring and cost savings initiatives |
0.38 |
— |
0.53 |
|
Net (gains)/losses from equity investments |
(1.90) |
|||
Other |
(0.01) |
|||
Non-GAAP diluted EPS guidance |
|
— |
|
* The known adjustments are presented net of their related tax impact, which amount to approximately |
|
(a) |
The adjustments include noncash amortization of intangible assets and fair value step-up of inventory acquired in business combinations and the net impairment charge for AMG 340, as well as transaction, integration and employee-related costs. Adjustments above include a preliminary range for the projected impact from the |
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 fair value of our contingent consideration obligations and changes in fair value of our equity investments.
Reconciliation of GAAP Tax Rate Guidance to Non-GAAP Tax Rate Guidance for the Year Ending (Unaudited)
|
|||||
GAAP tax rate guidance |
14.0 % |
— |
15.5 % |
||
Tax rate of known adjustments discussed above |
1.5 % |
— |
2.5 % |
||
Non-GAAP tax rate guidance |
16.5 % |
— |
17.0 % |
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