Amgen Reports Fourth Quarter and Full Year 2017 Financial Results
Expects to Increase Investments in Growth, Including a New U.S. Manufacturing Plant
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| [01-February-2018] |
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THOUSAND OAKS, Calif., Feb. 1, 2018 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the fourth quarter and full year 2017. Key results include:
"With strong volume-driven growth for our recently launched products and a promising new product pipeline, we are well positioned for future growth," said Robert A. Bradway, chairman and chief executive officer. "We expect several developments to provide an additional boost for these products, most notably the recent inclusion of cardiovascular outcomes data in the Repatha® (evolocumab) prescribing information."
$Millions, except EPS and percentages Q4'17 Q4'16 YOY Δ FY '17 FY '16 YOY Δ
Total Revenues $5,802 $5,965 (3%) $22,849 $22,991 (1%)
GAAP Operating Income $2,245 $2,485 (10%) $9,973 $9,794 2%
GAAP Net (Loss) Income $(4,264) $1,935 * $1,979 $7,722 (74%)
GAAP (Loss) Earnings Per Share $(5.89) $2.59 * $2.69 $10.24 (74%)
Non-GAAP Operating Income $2,555 $2,859 (11%) $11,658 $11,446 2%
Non-GAAP Net Income $2,104 $2,160 (3%) $9,246 $8,785 5%
Non-GAAP EPS $2.89 $2.89 0% $12.58 $11.65 8%
* Change in excess of 100%
-------------------------
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
Product Sales Detail by Product and Geographic Region
$Millions, except percentages Q4'17 Q4'16 YOY Δ
----- ----- -----
US ROW TOTAL TOTAL TOTAL
--- --- ----- ----- -----
Repatha(R) $70 $28 $98 $58 69%
BLINCYTO(R) 29 17 46 29 59%
Prolia(R) 369 205 574 463 24%
KYPROLIS(R) 150 77 227 183 24%
Vectibix(R) 63 96 159 143 11%
Nplate(R) 100 65 165 150 10%
XGEVA(R) 285 106 391 376 4%
Sensipar(R) / Mimpara(R) 322 91 413 411 0%
Neulasta(R) 969 145 1,114 1,116 0%
Aranesp(R) 263 228 491 526 (7%)
Enbrel(R) 1,368 55 1,423 1,644 (13%)
EPOGEN(R) 270 0 270 316 (15%)
NEUPOGEN(R) 82 44 126 173 (27%)
Other* 13 59 72 75 (4%)
--- --- ---
Total product sales $4,353 $1,216 $5,569 $5,663 (2%)
====== ====== ====== ====== ===
* Other includes Bergamo, MN Pharma, IMLYGIC(R), Corlanor(R), and Parsabiv(TM)
-----------------------------------------------------------------------------
$Millions, except percentages FY'17 FY'16 YOY Δ
----- ----- -----
US ROW TOTAL TOTAL TOTAL
--- --- ----- ----- -----
Repatha(R) $225 $94 $319 $141 *
BLINCYTO(R) 114 61 175 115 52%
Prolia(R) 1,272 696 1,968 1,635 20%
KYPROLIS(R) 562 273 835 692 21%
Nplate(R) 392 250 642 584 10%
Sensipar(R) / Mimpara(R) 1,374 344 1,718 1,582 9%
Vectibix(R) 251 391 642 611 5%
XGEVA(R) 1,157 418 1,575 1,529 3%
Aranesp(R) 1,114 939 2,053 2,093 (2%)
Neulasta(R) 3,931 603 4,534 4,648 (2%)
Enbrel(R) 5,206 227 5,433 5,965 (9%)
EPOGEN(R) 1,096 0 1,096 1,282 (15%)
NEUPOGEN(R) 369 180 549 765 (28%)
Other** 68 188 256 250 2%
--- --- ---
Total product sales $17,131 $4,664 $21,795 $21,892 0%
======= ====== ======= ======= ===
* Change in excess of 100%
** Other includes Bergamo, MN Pharma, IMLYGIC(R), Corlanor(R), and Parsabiv(TM)
------------------------------------------------------------------------------
Operating Expense, Operating Margin and Tax Rate Analysis On a GAAP basis:
On a non-GAAP basis:
$Millions, except percentages
GAAP Non-GAAP
---- --------
Q4'17 Q4'16 YOY Δ Q4'17 Q4'16 YOY Δ
----- ----- ----- ----- ----- -----
Cost of Sales $1,059 $1,067 (1%) $816 $753 8%
% of product
sales 19.0% 18.8% 0.2 pts. 14.7% 13.3% 1.4 pts.
Research & Development $1,043 $1,078 (3%) $1,025 $1,056 (3%)
% of product
sales 18.7% 19.0% (0.3) pts. 18.4% 18.6% (0.2) pts.
Selling, General &
Administrative $1,427 $1,323 8% $1,406 $1,297 8%
% of product
sales 25.6% 23.4% 2.2 pts. 25.2% 22.9% 2.3 pts.
Other $28 $12 * $0 $0 NM
TOTAL Operating Expenses $3,557 $3,480 2% $3,247 $3,106 5%
Operating Margin
operating
income as a
% of product
sales 40.3% 43.9% (3.6) pts. 45.9% 50.5% (4.6) pts.
Tax Rate 292.6% 15.2% 277.4 pts. 16.6% 18.7% (2.1) pts.
* Change in excess of 100%
NM: Not Meaningful
pts: percentage points
----------------------
$Millions, except percentages
GAAP Non-GAAP
---- --------
FY'17 FY'16 YOY Δ FY'17 FY'16 YOY Δ
----- ----- ----- ----- ----- -----
Cost of Sales $4,069 $4,162 (2%) $2,943 $2,913 1%
% of product
sales 18.7% 19.0% (0.3) pts. 13.5% 13.3% 0.2 pts.
Research & Development $3,562 $3,840 (7%) $3,482 $3,755 (7%)
% of product
sales 16.3% 17.5% (1.2) pts. 16.0% 17.2% (1.2) pts.
Selling, General &
Administrative $4,870 $5,062 (4%) $4,766 $4,877 (2%)
% of product
sales 22.3% 23.1% (0.8) pts. 21.9% 22.3% (0.4) pts.
Other $375 $133 * $0 $0 NM
TOTAL Operating Expenses $12,876 $13,197 (2%) $11,191 $11,545 (3%)
Operating Margin
operating
income as a
% of product
sales 45.8% 44.7% 1.1 pts. 53.5% 52.3% 1.2 pts.
Tax Rate 79.4% 15.7% 63.7 pts. 18.0% 18.8% (0.8) pts.
* Change in excess of 100%
NM: Not Meaningful
pts: percentage points
----------------------
Cash Flow and Balance Sheet
$Billions, except shares Q4'17 Q4'16 YOY Δ FY'17 FY'16 YOY Δ
----- ----- ----- ----- ----- -----
Operating Cash Flow $3.0 $3.1 ($0.1) $11.2 $10.4 $0.8
Capital Expenditures 0.2 0.2 (0.1) 0.7 0.7 (0.1)
Free Cash Flow 2.9 2.9 0.0 10.5 9.6 0.9
Dividends Paid 0.8 0.7 0.1 3.4 3.0 0.4
Share Repurchase 0.8 1.0 (0.2) 3.1 3.0 0.1
Avg. GAAP Diluted
Shares (millions) 724 748 (24) 735 754 (19)
Avg. Non-GAAP Diluted
Shares (millions) 729 748 (19) 735 754 (19)
Cash and Investments 41.7 38.1 3.6 41.7 38.1 3.6
Debt Outstanding 35.3 34.6 0.7 35.3 34.6 0.7
Stockholders' Equity 25.2 29.9 (4.6) 25.2 29.9 (4.6)
Note: Numbers may not add due to rounding
-----------------------------------------
Additional Capital Investments in the United States The Company expects to invest approximately $3.5 billion in capital expenditures over the next five years, with approximately 75 percent of that investment in the U.S., up from about 50 percent in recent years. This investment includes committing up to $300 million to build a new manufacturing plant in the U.S. The new facility will employ Amgen's proven next-generation biomanufacturing capabilities, and manufacture products for the U.S. and export markets. Next-generation biomanufacturing requires less time and capital investment to build than a traditional biomanufacturing plant and is less costly to operate, with less environmental impact. The construction and validation work is expected to add 220 jobs to the local economy. In addition, Amgen expects this new facility to employ up to 300 highly skilled full-time employees. Amgen expects to finalize the exact location in the second quarter. The Company is also increasing the size of the Amgen Ventures fund, providing up to $300 million of growth capital for early-stage, innovative biotechnology companies in the U.S. 2018 Guidance For the full year 2018, the Company expects:
Fourth Quarter Product and Pipeline Update Key development milestones:
Clinical Program Indication Projected Milestone
---------------- ---------- -------------------
KYPROLIS Relapsed or refractory multiple myeloma EU regulatory review (ENDEAVOR OS data)
Regulatory reviews (ASPIRE OS data)
--- ----------------------------------
BLINCYTO Acute lymphoblastic leukemia EU regulatory review (TOWER OS data)
Regulatory reviews (MRD-positive)
--- --------------------------------
XGEVA Prevention of SREs in multiple myeloma EU regulatory review
----- -------------------------------------- --------------------
Prolia Glucocorticoid-induced osteoporosis U.S. regulatory review
------ ----------------------------------- ----------------------
EVENITY(TM)(romosozumab) Postmenopausal osteoporosis U.S. regulatory resubmission
EU regulatory review
--- --------------------
Aimovig(TM) (erenumab) Migraine prevention U.S. regulatory review
--------------------- ------------------- ----------------------
ABP 710 Oncology Phase 3 data
(biosimilar infliximab)
----------------------
ABP 980 Oncology Regulatory reviews
(biosimilar trastuzumab)
-----------------------
OS = overall survival; MRD = minimal residual disease; SRE = skeletal-related event The Company provided the following updates on selected product and pipeline programs: Repatha
Tezepelumab
Aimovig
KYPROLIS
XGEVA
Nplate
BLINCYTO
EVENITY
MVASI™ (biosimilar bevacizumab)
EVENITY and Aimovig trade names provisionally approved by FDA Non-GAAP Financial Measures 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 Amgen Amgen focuses on areas of high unmet medical need and leverages its expertise to strive for solutions that improve health outcomes and dramatically improve people's lives. A biotechnology pioneer since 1980, Amgen has grown to be one of the world's leading independent biotechnology companies, has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential. For more information, visit www.amgen.com and follow us on www.twitter.com/amgen. Forward-Looking Statements 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 U.S. government, we could become subject to significant sanctions. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities, including in Puerto Rico, and also depend on third parties for a portion of our manufacturing activities, and limits on supply may constrain sales of certain of our current products and product candidate development. In addition, we compete with other companies with respect to many of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Certain of our distributors, customers and payers have substantial purchasing leverage in their dealings with us. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to acquire other companies or products and to integrate the operations of companies we have acquired may not be successful. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all. We are increasingly dependent on information technology systems, infrastructure and data security. Our stock price is volatile and may be affected by a number of events. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock.
Amgen Inc.
Consolidated Statements of Income - GAAP
(In millions, except per share data)
(Unaudited)
Three months ended Years ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
Revenues:
Product sales $5,569 $5,663 $21,795 $21,892
Other revenues 233 302 1,054 1,099
Total revenues 5,802 5,965 22,849 22,991
----- ----- ------ ------
Operating expenses:
Cost of sales 1,059 1,067 4,069 4,162
Research and
development 1,043 1,078 3,562 3,840
Selling,
general and
administrative 1,427 1,323 4,870 5,062
Other 28 12 375 133
Total operating expenses 3,557 3,480 12,876 13,197
----- ----- ------ ------
Operating income 2,245 2,485 9,973 9,794
Interest expense, net 332 328 1,304 1,260
Interest and other income, net 301 126 928 629
--- --- --- ---
Income before income taxes 2,214 2,283 9,597 9,163
Provision for income taxes 6,478 348 7,618 1,441
Net (loss) income $(4,264) $1,935 $1,979 $7,722
======= ====== ====== ======
(Loss) earnings per share:
Basic $(5.89) $2.61 $2.71 $10.32
Diluted $(5.89) $2.59 $2.69 $10.24
Weighted average shares used in
calculation of (loss) earnings per
share:
Basic 724 742 731 748
Diluted 724 748 735 754
Amgen Inc.
Consolidated Balance Sheets - GAAP
(In millions)
December 31,
2017 2016
---- ----
Assets
Current assets:
Cash, cash
equivalents
and marketable
securities $41,678 $38,085
Trade
receivables,
net 3,237 3,165
Inventories 2,834 2,745
Other current
assets 1,727 2,015
Total
current
assets 49,476 46,010
Property, plant and equipment, net 4,989 4,961
Intangible assets, net 8,609 10,279
Goodwill 14,761 14,751
Other assets 2,119 1,625
----- -----
Total assets $79,954 $77,626
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts
payable and
accrued
liabilities $7,868 $6,801
Short-term
borrowings and
current
portion of
long-term
debt 1,152 4,403
Total
current
liabilities 9,020 11,204
Long-term debt 34,190 30,193
Long-term deferred tax liabilities 1,166 2,436
Long-term tax liabilities 9,099 2,419
Other noncurrent liabilities 1,238 1,499
Stockholders' equity 25,241 29,875
------ ------
Total liabilities and stockholders'
equity $79,954 $77,626
======= =======
Shares outstanding 722 738
Amgen Inc.
GAAP to Non-GAAP Reconciliations
(Dollars in millions)
(Unaudited)
Three months ended Years ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
GAAP cost of sales $1,059 $1,067 $4,069 $4,162
Adjustments to cost of sales:
Acquisition-related expenses (a) (243) (314) (1,126) (1,248)
Certain net charges pursuant to
our restructuring initiative - - - (1)
Total adjustments to cost of sales (243) (314) (1,126) (1,249)
Non-GAAP cost of sales $816 $753 $2,943 $2,913
==== ==== ====== ======
GAAP cost of sales as a percentage
of product sales 19.0% 18.8% 18.7% 19.0%
Acquisition-related expenses (a) -4.3 -5.5 -5.2 -5.7
Certain net charges pursuant to
our restructuring initiative 0.0 0.0 0.0 0.0
Non-GAAP cost of sales as a
percentage of product sales 14.7% 13.3% 13.5% 13.3%
==== ==== ==== ====
GAAP research and development
expenses $1,043 $1,078 $3,562 $3,840
Adjustments to research and development expenses:
Acquisition-related expenses (a) (20) (20) (77) (78)
Certain net charges pursuant to
our restructuring initiative 2 (2) (3) (7)
Total adjustments to research and
development expenses (18) (22) (80) (85)
Non-GAAP research and development
expenses $1,025 $1,056 $3,482 $3,755
====== ====== ====== ======
GAAP research and development
expenses as a percentage of
product sales 18.7% 19.0% 16.3% 17.5%
Acquisition-related expenses (a) -0.3 -0.4 -0.3 -0.3
Certain net charges pursuant to
our restructuring initiative 0.0 0.0 0.0 0.0
Non-GAAP research and development
expenses as a percentage of
product sales 18.4% 18.6% 16.0% 17.2%
==== ==== ==== ====
GAAP selling, general and
administrative expenses $1,427 $1,323 $4,870 $5,062
Adjustments to selling, general and administrative expenses:
Acquisition-related expenses (b) (20) (26) (99) (180)
Certain net charges pursuant to
our restructuring initiative (1) - (2) (5)
Other - - (3) -
Total adjustments to selling,
general and administrative
expenses (21) (26) (104) (185)
Non-GAAP selling, general and
administrative expenses $1,406 $1,297 $4,766 $4,877
====== ====== ====== ======
GAAP selling, general and
administrative expenses as a
percentage of product sales 25.6% 23.4% 22.3% 23.1%
Acquisition-related expenses (b) -0.4 -0.5 -0.4 -0.8
Certain net charges pursuant to
our restructuring initiative 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 25.2% 22.9% 21.9% 22.3%
==== ==== ==== ====
GAAP operating expenses $3,557 $3,480 $12,876 $13,197
Adjustments to operating expenses:
Adjustments to cost of sales (243) (314) (1,126) (1,249)
Adjustments to research and
development expenses (18) (22) (80) (85)
Adjustments to selling, general
and administrative expenses (21) (26) (104) (185)
Certain net charges pursuant to
our restructuring initiative (c) (27) (9) (83) (24)
Acquisition-related adjustments
(d) (1) (3) (292) (4)
Expense related to legal
proceedings - - - (105)
Total adjustments to operating
expenses (310) (374) (1,685) (1,652)
Non-GAAP operating expenses $3,247 $3,106 $11,191 $11,545
====== ====== ======= =======
GAAP operating income $2,245 $2,485 $9,973 $9,794
Adjustments to operating expenses 310 374 1,685 1,652
Non-GAAP operating income $2,555 $2,859 $11,658 $11,446
====== ====== ======= =======
GAAP operating income as a
percentage of product sales 40.3% 43.9% 45.8% 44.7%
Adjustments to cost of sales 4.3 5.5 5.2 5.7
Adjustments to research and
development expenses 0.3 0.4 0.3 0.3
Adjustments to selling, general
and administrative expenses 0.4 0.5 0.4 0.8
Certain net charges pursuant to
our restructuring initiative (c) 0.6 0.2 0.4 0.2
Acquisition-related adjustments
(d) 0.0 0.0 1.4 0.0
Expense related to legal
proceedings 0.0 0.0 0.0 0.6
Non-GAAP operating income as a
percentage of product sales 45.9% 50.5% 53.5% 52.3%
==== ==== ==== ====
GAAP income before income taxes $2,214 $2,283 $9,597 $9,163
Adjustments to operating expenses 310 374 1,685 1,652
Non-GAAP income before income
taxes $2,524 $2,657 $11,282 $10,815
====== ====== ======= =======
GAAP provision for income taxes $6,478 $348 $7,618 $1,441
Adjustments to provision for income taxes:
Income tax effect of the above
adjustments to operating expenses
(e) 98 113 538 525
Other income tax adjustments (f) (6,156) 36 (6,120) 64
Total adjustments to provision for
income taxes (6,058) 149 (5,582) 589
Non-GAAP provision for income
taxes $420 $497 $2,036 $2,030
==== ==== ====== ======
GAAP tax as a percentage of income
before taxes 292.6% 15.2% 79.4% 15.7%
Adjustments to provision for income taxes:
Income tax effect of the above
adjustments to operating expenses
(e) -32.1 2.1 -7.1 2.5
Other income tax adjustments (f) -243.9 1.4 -54.3 0.6
Total adjustments to provision for
income taxes -276.0 3.5 -61.4 3.1
Non-GAAP tax as a percentage of
income before taxes 16.6% 18.7% 18.0% 18.8%
==== ==== ==== ====
GAAP net (loss) income $(4,264) $1,935 $1,979 $7,722
Adjustments to net (loss) income:
Adjustments to income before
income taxes, net of the income
tax effect 212 261 1,147 1,127
Other income tax adjustments (f) 6,156 (36) 6,120 (64)
Total adjustments to net (loss)
income 6,368 225 7,267 1,063
Non-GAAP net income $2,104 $2,160 $9,246 $8,785
====== ====== ====== ======
Amgen Inc.
GAAP to Non-GAAP Reconciliations
(In millions, except per share data)
(Unaudited)
The following table presents the computations for GAAP and non-GAAP diluted EPS.
Three months ended Three months ended
December 31, 2017 December 31, 2016
----------------- -----------------
GAAP Non-GAAP GAAP Non-GAAP
---- -------- ---- --------
Net (loss) income $(4,264) $2,104 $1,935 $2,160
======= ====== ====== ======
Shares (Denominator)
Weight-average
shares for basic
EPS 724 724 742 742
Effect of dilutive
securities - 5 6 6
Weighted-average
shares for diluted
EPS 724 729 748 748
=== === === ===
Diluted (loss)
earnings per share
(g) $(5.89) $2.89 $2.59 $2.89
====== ===== ===== =====
Year ended Year ended
December 31, 2017 December 31, 2016
----------------- -----------------
GAAP Non-GAAP GAAP Non-GAAP
---- -------- ---- --------
Net income $1,979 $9,246 $7,722 $8,785
====== ====== ====== ======
Shares (Denominator)
Weight-average
shares for basic
EPS 731 731 748 748
Effect of dilutive
securities 4 4 6 6
Weighted-average
shares for diluted
EPS 735 735 754 754
=== === === ===
Diluted EPS $2.69 $12.58 $10.24 $11.65
===== ====== ====== ======
(a) The adjustments related primarily to
non-cash amortization of intangible
assets acquired in business
combinations.
(b) The adjustments related primarily to
non-cash amortization of intangible
assets acquired in business
combinations. For the year ended
December 31, 2016, the adjustment
also included a $73 million charge
resulting from the reacquisition of
Prolia(R), XGEVA(R) and Vectibix(R)
license agreements in certain markets
from Glaxo Group Limited.
(c) For the three months and year ended
December 31, 2017, the adjustments
related primarily to severance
expenses associated with our
restructuring initiative. For the
three months and year ended December
31, 2016, the adjustments related
primarily to asset-related charges
associated with our site closures.
(d) For the year ended December 31, 2017,
the adjustment included net charges
associated with the discontinuance of
the internal development of AMG 899.
(e) 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 U.S. marginal tax rate
for certain adjustments, including
the majority of amortization of
intangible assets, whereas the tax
impact of other adjustments,
including restructuring expense,
depends on whether the amounts are
deductible in the respective tax
jurisdictions and the applicable tax
rate(s) in those jurisdictions. Due
to these factors, the effective tax
rates for the adjustments to our GAAP
income before income taxes, for the
three months and year ended December
31, 2017, were 31.6% and 31.9%,
respectively, compared with 30.2% and
31.8% for the corresponding periods
of the prior year.
(f) For the three months and year ended
December 31, 2017, the adjustments
related primarily to the impact of
U.S. Corporate tax reform, including
the repatriation tax on accumulated
foreign earnings and the
remeasurement of certain net deferred
and other tax liabilities. For the
three months and year ended December
31, 2016, the adjustments related to
certain acquisition items and prior
period items excluded from GAAP
earnings.
(g) During periods of net loss, diluted
loss per share is equal to basic loss
per share as the anti-dilutive
effect of potential common shares is
disregarded.
Amgen Inc.
Reconciliations of Cash Flows
(In millions)
(Unaudited)
Three months ended Years ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
Net cash provided by operating activities $3,012 $3,100 $11,177 $10,354
Net cash used in investing activities (78) (1,222) (4,024) (8,658)
Net cash used in financing activities (2,134) (2,122) (6,594) (2,599)
------ ------ ------ ------
Increase (decrease) in cash and cash equivalents 800 (244) 559 (903)
Cash and cash equivalents at beginning of period 3,000 3,485 3,241 4,144
Cash and cash equivalents at end of period $3,800 $3,241 $3,800 $3,241
====== ====== ====== ======
Three months ended Years ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
Net cash provided by operating activities $3,012 $3,100 $11,177 $10,354
Capital expenditures (153) (227) (664) (738)
Free cash flow $2,859 $2,873 $10,513 $9,616
====== ====== ======= ======
Reconciliation of GAAP EPS Guidance to Non-GAAP
EPS Guidance for the Year Ending December 31, 2018
(Unaudited)
GAAP diluted EPS guidance $11.18 - $12.36
Known adjustments to arrive at non-GAAP*:
Acquisition-related expenses (a) 1.31
Restructuring charges 0.03 - 0.11
Non-GAAP diluted EPS guidance $12.60 - $13.70
====== === ======
* The known adjustments are presented
net of their related tax impact
which amount to approximately
$0.40 per share, in the aggregate
(a) The adjustments relate primarily to
non-cash amortization of
intangible assets acquired in
business combinations
Our GAAP diluted EPS guidance does
not include the effect of non-
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 of our contingent
consideration
Reconciliation of GAAP Tax Rate Guidance to Non-GAAP
Tax Rate Guidance for the Year Ending December 31, 2018
(Unaudited)
2018
----
GAAP tax rate guidance 13.0% - 14.0%
Tax rate
effect of
known
adjustments
discussed
above 1.0%
Non-GAAP tax rate guidance 14.0% - 15.0%
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CONTACT: Amgen, Thousand Oaks View original content with multimedia:http://www.prnewswire.com/news-releases/amgen-reports-fourth-quarter-and-full-year-2017-financial-results-300592305.html SOURCE Amgen |
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Company Codes: NASDAQ-NMS:AMGN |