Click here to close now.

Welcome!

.NET Authors: Elizabeth White, Liz McMillan, Pat Romanski, Jaynesh Shah, Carmen Gonzalez

News Feed Item

Amgen's Full Year 2012 Revenues Increased 11 Percent To $17.3 Billion And Adjusted Earnings Per Share (EPS) Increased 22 Percent To $6.51

Full Year 2012 GAAP EPS Were $5.52

THOUSAND OAKS, Calif., Jan. 23, 2013 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the fourth quarter and full year of 2012. Key results include:

  • For the full year, total revenues increased 11 percent to $17,265 million, with 9 percent product sales growth driven by strong performance across the portfolio. Adjusted EPS grew 22 percent to $6.51 due to 15 percent adjusted operating income growth and lower shares outstanding. 
  • For the fourth quarter, total revenues increased 11 percent to $4,421 million, with product sales growing at the same rate. Adjusted EPS grew 16 percent to $1.40 due to 11 percent adjusted operating income growth and lower shares outstanding. 
  • GAAP EPS were $1.01 in the fourth quarter compared to $1.08 a year ago, and were $5.52 for the full year compared to $4.04 in 2011. Full year 2011 was negatively impacted by a previously disclosed charge for a legal settlement reserve.
  • Free cash flow for the full year was $5.2 billion compared to $4.5 billion in 2011.
  • The Company announced that it has initiated Phase 3 studies for AMG 145 in subjects with high levels of low-density lipoprotein (LDL) cholesterol. 

"We achieved strong operating performance in 2012 as we delivered for patients and created value for shareholders," said Robert A. Bradway, chairman and chief executive officer at Amgen.  "We enter 2013 with good momentum, a broad late-stage pipeline and a continued focus on building our business internationally."



Year-over-Year


Year-over-Year

$Millions, except EPS and percentages


Q4 '12


Q4 '11


YOY Δ


FY '12


FY '11


YOY Δ














Total Revenues


$4,421


$3,973


11%


$17,265


$15,582


11%

Adjusted Net Income


1,088


1,039


5%


5,119


4,858


5%

Adjusted EPS


1.40


1.21


16%


6.51


5.33


22%














GAAP Net Income


788


934


(16%)


4,345


3,683


18%

GAAP EPS


$1.01


$1.08


(6%)


$5.52


$4.04


37%

References in this release to "adjusted" measures, measures presented "on an adjusted basis" or to free cash flow refer to non-GAAP financial measures.  These adjustments and other items are presented on the attached reconciliations.

 

Product Sales Performance

  • Total product sales increased 9 percent for the full year, driven by strong performance across the portfolio.  Product sales increased 11 percent for the fourth quarter of 2012 versus the fourth quarter of 2011 driven by Enbrel® (etanercept), XGEVA® (denosumab) and Prolia® (denosumab).
  • Combined Neulasta® (pegfilgrastim) and NEUPOGEN® (Filgrastim) sales declined 1 percent for the fourth quarter of 2012 versus the fourth quarter of 2011, and increased 3 percent for the full year.
    • Global Neulasta sales for the fourth quarter of 2012 versus the fourth quarter of 2011 were flat as price increases were offset by unit declines and unfavorable inventory changes. Sales increased 4 percent for the full year mainly due to price increases.
    • Global NEUPOGEN sales for the fourth quarter of 2012 versus the fourth quarter of 2011 declined 3 percent driven by a decrease in unit demand from loss of share to biosimilars in Europe. Sales were flat for the full year as price increases offset unit declines.
  • ENBREL sales for the fourth quarter of 2012 versus the fourth quarter of 2011 increased 23 percent driven by increases in the average net sales price and unit demand. Sales increased 14 percent for the full year due mainly to price increases and unit growth.
  • Aranesp® (darbepoetin alfa) sales decreased 9 percent for the fourth quarter of 2012 versus the fourth quarter of 2011 and 11 percent for the full year due to changes in practice patterns.  Sequentially, sales were down 2 percent. 
  • EPOGEN® (epoetin alfa) sales for the fourth quarter of 2012 versus the fourth quarter of 2011 decreased 1 percent driven by a reduction in dose utilization, offset largely by a reduction in customer discounts and favorable changes in accounting estimates. Sales for the full year decreased 5 percent as unit declines were offset partially by a reduction in customer discounts and favorable changes in accounting estimates.
  • Sensipar®/Mimpara® (cinacalcet) sales increased 19 percent for the fourth quarter of 2012 versus the fourth quarter of 2011 and 18 percent for the full year due to unit growth and price increases.
  • Combined sales of Vectibix® (panitumumab) and Nplate® (romiplostim) increased 15 percent for the fourth quarter of 2012 versus the fourth quarter of 2011 and 17 percent for the full year due to unit growth.
  • XGEVA sales increased 7 percent on a sequential basis and 113 percent for the full year due to unit growth.
  • Prolia sales increased 40 percent on a sequential basis and 133 percent for the full year due to unit growth.  

Product Sales Detail by Product and Geographic Region

$Millions, except percentages


Q4 '12


Q4 '11


YOY Δ



US

ROW

TOTAL


TOTAL


TOTAL










Neulasta®/ NEUPOGEN®


$1,026

$280

$1,306


$1,319


(1%)

Neulasta®


775

219

994


998


0%

NEUPOGEN®


251

61

312


321


(3%)

Enbrel®


1,086

75

1,161


945


23%

Aranesp®


187

302

489


538


(9%)

EPOGEN®


479

0

479


486


(1%)

Sensipar® / Mimpara®


177

79

256


216


19%

Vectibix®


30

61

91


87


5%

Nplate®


57

44

101


80


26%

XGEVA®


178

37

215


134


60%

Prolia®


95

59

154


81


90%

Other 


0

85

85


21


*










Total product sales


$3,315

$1,022

$4,337


$3,907


11%










* Change in excess of 100%









 

$Millions, except percentages


FY '12


FY '11


YOY Δ



US

ROW

TOTAL


TOTAL


TOTAL










Neulasta®/ NEUPOGEN®


$4,214

$1,138

$5,352


$5,212


3%

Neulasta®


3,207

885

4,092


3,952


4%

NEUPOGEN®


1,007

253

1,260


1,260


0%

Enbrel®


3,967

269

4,236


3,701


14%

Aranesp®


782

1,258

2,040


2,303


(11%)

EPOGEN®


1,941

0

1,941


2,040


(5%)

Sensipar® / Mimpara®


639

311

950


808


18%

Vectibix®


122

237

359


322


11%

Nplate®


214

154

368


297


24%

XGEVA®


644

104

748


351


*

Prolia®


292

180

472


203


*

Other 


0

173

173


58


*










Total product sales


$12,815

$3,824

$16,639


$15,295


9%










* Change in excess of 100%









Operating Expense and Tax Rate Analysis, on an Adjusted Basis

  • Cost of Sales, excluding the impact of the Puerto Rico excise tax, increased 0.3 points to 14.7 percent in the fourth quarter of 2012 and increased 0.4 points to 14.4 percent for the full year due to product mix, offset partially by manufacturing efficiencies and higher average net sales price. 
  • Research & Development (R&D) expenses increased 9 percent in the fourth quarter of 2012 driven by later-stage clinical programs, primarily AMG 145 and romosozumab (AMG 785). For the full year, R&D expenses increased 6 percent driven by later-stage clinical programs, primarily AMG 145 and romosozumab (AMG 785), offset partially by reduced expenses associated with marketed product support.
  • Selling, General & Administrative (SG&A) expenses increased 13 percent in the fourth quarter of 2012 driven by higher ENBREL profit share expenses and international expansion.  ENBREL profit share expenses increased 27 percent to $414 million in the fourth quarter.  For the full year, SG&A expenses increased 6 percent, driven primarily by higher ENBREL profit share expenses and international expansion, offset partially by a favorable change to the estimated U.S. healthcare reform federal excise fee. ENBREL profit share expenses increased 16 percent to $1,495 million in 2012.

$Millions, except percentages












On an Adjusted Basis


Q4 '12


Q4 '11


YOY Δ


FY '12


FY '11


YOY Δ
















Cost of Sales

$727


$643


13%


$2,735


$2,345


17%


% of sales

16.8%


16.5%


0.3 pts


16.4%


15.3%


1.1 pts


% of sales (Excluding PR excise tax)

14.7%


14.4%


0.3 pts


14.4%


14.0%


0.4 pts

Research & Development

$917


$842


9%


$3,296


$3,116


6%


% of sales

21.1%


21.6%


(0.5) pts


19.8%


20.4%


(0.6) pts

Selling, General & Administrative

$1,351


$1,199


13%


$4,717


$4,434


6%


% of sales

31.2%


30.7%


0.5 pts


28.3%


29.0%


(0.7) pts

TOTAL Operating Expenses

$2,995


$2,684


12%


$10,748


$9,895


9%

pts: percentage points











 

  • Tax Rate increased by 1.8 points to 16.1 percent in the fourth quarter of 2012 due primarily to the unfavorable tax impact of changes in the jurisdictional mix of income and expenses, as well as the benefit in the fourth quarter of 2011 from the federal R&D tax credit which was not reinstated prior to 2012 year-end. This increase was offset partially by the favorable resolution of certain state tax matters related to prior years. For the full year, the adjusted tax rate increased 1.6 points to 15.9 percent due primarily to the federal R&D tax credit included in 2011 but not in 2012, the unfavorable tax impact of changes in the jurisdictional mix of income and expenses, offset partially by the favorable resolution of certain state tax matters related to prior years. 













On an Adjusted Basis


Q4 '12


Q4 '11


YOY Δ


FY '12


FY '11


YOY Δ
















Tax Rate

16.1%


14.3%


1.8 pts


15.9%


14.3%


1.6 pts

Tax Rate (Excluding PR excise tax credits)

20.3%


18.1%


2.2 pts


20.3%


19.2%


1.1 pts

pts: percentage points













Cash Flow and Balance Sheet Discussion

  • The Company generated $0.6 billion of free cash flow in the fourth quarter of 2012 versus $1.4 billion in the fourth quarter of 2011. The decrease was driven by a $0.8 billion payment related to a previously disclosed legal settlement. For the full year, free cash flow increased $0.7 billion to $5.2 billion driven by improved collections of receivables, termination of fixed to floating interest rate swap agreements, and higher net income, offset partially by the aforementioned legal settlement payment.
  • During the fourth quarter, Amgen repurchased approximately 14 million shares of common stock at a total cost of $1.2 billion and at an average price of $86.56. This brings the total shares repurchased under its $10 billion authorized stock repurchase program to 146 million at a total cost of $9.7 billion and at an average price of $66.37. The Company previously announced a $2 billion increase in share repurchase authorization by its Board of Directors. Amgen expects that this increase will cover the Company's share repurchase activity into 2014.
  • The Company previously announced that its Board of Directors declared a $0.47 per share dividend for the first quarter of 2013. The dividend will be paid on March 7, 2013, to all stockholders of record as of the close of business on Feb. 13, 2013. This represents a 31 percent increase from that paid in each of the previous four quarters.

$Billions, except shares


Q4 '12


Q4 '11


YOY Δ


FY '12


FY '11


YOY Δ
















Operating Cash Flow

$0.8


$1.6


($0.8)


$5.9


$5.1


$0.8

Capital Expenditures

0.2


0.2


0.0


0.7


0.6


0.1

Free Cash Flow

0.6


1.4


(0.8)


5.2


4.5


0.7

Dividend Paid

0.3


0.2


0.1


1.1


0.5


0.6

Cost of Shares Repurchased

1.2


5.2


(4.0)


4.7


8.3


(3.6)

Adjusted Avg. Diluted Shares (millions)

778


860


(82)


786


912


(126)
















Cash Balance

24.1


20.6


3.5


24.1


20.6


3.5

Adjusted Debt Outstanding

26.5


21.6


4.9


26.5


21.6


4.9

Stockholders' Equity

19.1


19.0


0.1


19.1


19.0


0.1

Note: Numbers may not add due to rounding











2013 Guidance

For the full year 2013, the Company expects:

  • Total revenues to be in the range of $17.8 billion to $18.2 billion and adjusted EPS to be in the range of $6.85 to $7.15.
  • Adjusted tax rate to be in the range of 14 percent to 15 percent. This reflects the impact of the foreign tax credit associated with the Puerto Rico excise tax. Excluding the Puerto Rico excise tax, Amgen expects the adjusted tax rate for 2013 to be in the range of 17 percent to 18 percent.
  • Capital expenditures to be approximately $700 million.

Product and Pipeline Update

  • AMG 145:  The Company recently initiated Phase 3 studies in subjects with high levels of LDL cholesterol.
  • Trebananib (AMG 386):  Enrollment has resumed for the Phase 3 study in recurrent ovarian cancer that was previously suspended due to DOXIL® (doxorubicin HCl liposome injection) supply issues.
  • Aranesp:  The Company announced top-line results of the Phase 3 RED-HF® (Reduction of Events With Darbepoetin Alfa in Heart Failure) Trial.
  • deCODE Genetics:  The Company completed the acquisition of deCODE Genetics in December 2012.

Non-GAAP Financial Measures
The Adjusted non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures included above for the three and twelve months ended Dec. 31, 2012 and 2011 exclude, for the applicable periods, certain expenses related to acquisitions, cost-savings initiatives, various legal proceedings, non-cash interest expense associated with our convertible notes and certain other adjustments, as applicable. These adjustments and other items are presented on the attached reconciliations.

Management has presented its operating results in accordance with GAAP and on an "adjusted" (or non-GAAP) basis and Free Cash Flow which is a non-GAAP financial measure for the three and twelve months ended Dec. 31, 2012 and 2011. In addition, management has presented its outstanding debt in accordance with GAAP and on an "adjusted" (or non-GAAP) basis as of Dec. 31, 2012 and 2011. The Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. The Company uses these non-GAAP financial measures in connection with its own budgeting and financial planning.  These non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in conformity with GAAP.

About Amgen
Amgen discovers, develops, manufactures and delivers innovative human therapeutics. A biotechnology pioneer since 1980, Amgen was one of the first companies to realize the new science's promise by bringing safe, effective medicines from lab to manufacturing plant to patient. Amgen therapeutics have changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, bone disease and other serious illnesses. With a deep and broad pipeline of potential new medicines, Amgen remains committed to advancing science to dramatically improve people's lives. To learn more about our pioneering science and vital medicines, visit www.amgen.com. Follow us on www.twitter.com/amgen.

Forward-Looking Statements
This news release contains forward-looking statements that involve significant risks and uncertainties, including those discussed below and others that can be found in our Form 10-K for the year ended Dec. 31, 2011, and in our periodic reports on Form 10-Q and Form 8-K. Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. 

No forward-looking statement can be guaranteed and actual results may differ materially from those we project. The Company's results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments (domestic or foreign) involving current and future products, sales growth of recently launched products, competition from other products (domestic or foreign) and difficulties or delays in manufacturing our products. In addition, sales of our products are affected by 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 health care cost containment as well as U.S. legislation affecting pharmaceutical pricing and reimbursement. Government and others' regulations and reimbursement policies may affect the development, usage and pricing of our products. 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 after they are on the market.  Our business may be impacted by government investigations, litigation and product liability claims. 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. We depend on third parties for a significant portion of our manufacturing capacity for the supply of certain of our current and future products 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 some 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. 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.

Condensed Consolidated Statements of Income - GAAP

(In millions, except per share data)

(Unaudited)
















Three months ended


Years ended





December 31, 


December 31, 





2012


2011


2012


2011

Revenues:










Product sales


$  4,337


$       3,907


$ 16,639


$ 15,295


Other revenues


84


66


626


287



Total revenues


4,421


3,973


17,265


15,582












Operating expenses:










Cost of sales (excludes amortization of certain











acquired intangible assets presented below)


852


656


2,918


2,427


Research and development


938


851


3,380


3,167


Selling, general and administrative


1,370


1,208


4,801


4,486


Amortization of certain acquired intangible assets


73


73


294


294


Other


100


23


295


896



Total operating expenses


3,333


2,811


11,688


11,270












Operating income


1,088


1,162


5,577


4,312












Interest expense, net


291


195


1,053


610

Interest and other income, net


126


84


485


448












Income before income taxes


923


1,051


5,009


4,150












Provision for income taxes


135


117


664


467












Net income


$     788


$          934


$   4,345


$   3,683












Earnings per share:










Basic


$    1.03


$         1.09


$     5.61


$     4.07


Diluted


$    1.01


$         1.08


$     5.52


$     4.04












Average shares used in calculation










of earnings per share:










Basic


763


854


775


905


Diluted


778


861


787


912























 

Amgen Inc.

Condensed Consolidated Balance Sheets - GAAP 

(In millions)

(Unaudited)











December 31, 


December 31, 





2012


2011


Assets






Current assets:






Cash, cash equivalents and marketable securities


$                 24,061


$                 20,641



Trade receivables, net


2,518


2,896



Inventories


2,744


2,484



Other current assets


1,886


1,572





Total current assets


31,209


27,593


Property, plant and equipment, net


5,326


5,420


Intangible assets, net


3,968


2,584


Goodwill


12,662


11,750


Other assets


1,133


1,524


Total assets


$                 54,298


$                 48,871









Liabilities and Stockholders' Equity






Current liabilities:







Accounts payable and accrued liabilities


$                   5,608


$                   5,670



Current portion of long-term debt


2,495


84





Total current liabilities


8,103


5,754


Long-term debt


24,034


21,344


Other non-current liabilities


3,101


2,744


Stockholders' equity


19,060


19,029


Total liabilities and stockholders' equity


$                 54,298


$                 48,871







Shares outstanding


756


796











Amgen Inc.


GAAP to "Adjusted" Reconciliations


(In millions)


(Unaudited)
























Three months ended


Years ended




December 31, 


December 31, 




2012


2011


2012


2011













GAAP cost of sales

$    852


$          656


$   2,918


$        2,427



Adjustments to cost of sales:










Certain charges pursuant to our continuing efforts to improve cost efficiencies in our operations (a)

(118)


(11)


(160)


(65)



Acquisition-related expenses

(4)


-


(11)


(7)



Stock option expense (b)

(3)


(2)


(12)


(10)



Total adjustments to cost of sales

(125)


(13)


(183)


(82)



Adjusted cost of sales

$    727


$          643


$   2,735


$        2,345























GAAP research and development expenses

$    938


$          851


$   3,380


$        3,167



Adjustments to research and development expenses:










Acquisition-related expenses

(16)


(1)


(50)


(28)



Certain charges pursuant to our continuing efforts to improve cost efficiencies in our operations

-


-


(12)


-



Reversal of previously accrued expenses for bonuses and stock-based compensation awards, which were forfeited as a result of the employees' termination pursuant to our continuing efforts to improve cost efficiencies in our operations

-


-


-


12



Stock option expense  (b)

(5)


(8)


(22)


(35)



Total adjustments to research and development expenses

(21)


(9)


(84)


(51)



Adjusted research and development expenses

$    917


$          842


$   3,296


$        3,116























GAAP selling, general and administrative expenses

$  1,370


$        1,208


$   4,801


$        4,486



Adjustments to selling, general and administrative expenses:










Acquisition-related expenses

(14)


(1)


(59)


(12)



Stock option expense (b)

(5)


(8)


(25)


(40)



Total adjustments to selling, general and administrative expenses

(19)


(9)


(84)


(52)



Adjusted selling, general and administrative expenses

$  1,351


$        1,199


$   4,717


$        4,434























GAAP operating expenses

$  3,333


$        2,811


$  11,688


$      11,270



Adjustments to operating expenses:










Adjustments to cost of sales

(125)


(13)


(183)


(82)



Adjustments to research and development expenses

(21)


(9)


(84)


(51)



Adjustments to selling, general and administrative expenses

(19)


(9)


(84)


(52)



Non-cash amortization of product technology rights acquired in a prior year business combination

(73)


(73)


(294)


(294)



Certain charges pursuant to our continuing efforts to improve cost efficiencies in our operations

(69)


(30)


(175)


(109)



Acquisition-related expenses

(6)


-


(25)


-



(Expense)/benefit resulting from changes in the estimated fair values of the contingent consideration obligations related to a prior year business combination

(26)


8


(31)


(1)



Benefit/(expenses) related to various legal proceedings

1


(1)


(64)


(786)



Total adjustments to operating expenses

(338)


(127)


(940)


(1,375)



Adjusted operating expenses

$  2,995


$        2,684


$  10,748


$        9,895























GAAP operating income

$  1,088


$        1,162


$   5,577


$        4,312



Adjustments to operating expenses

338


127


940


1,375



Adjusted operating income

$  1,426


$        1,289


$   6,517


$        5,687























GAAP income before income taxes

$    923


$        1,051


$   5,009


$        4,150



Adjustments to income before income taxes:










Adjustments to operating expenses

338


127


940


1,375



Non-cash interest expense associated with our convertible notes

36


34


140


143



Total adjustments to income before income taxes

374


161


1,080


1,518



Adjusted income before income taxes

$  1,297


$        1,212


$   6,089


$        5,668























GAAP provision for income taxes

$    135


$          117


$      664


$          467



Adjustments to provision for income taxes:










Income tax effect of the above adjustments (c)

97


56


329


331



Income tax net expense/(benefit) related to certain prior period items excluded from "Adjusted" earnings

(23)


-


(23)


12



Total adjustments to provision for income taxes

74


56


306


343



Adjusted provision for income taxes

$    209


$          173


$      970


$          810























GAAP net income

$    788


$          934


$   4,345


$        3,683



Adjustments to income before income taxes, net of the tax effect of the above adjustments

277


105


751


1,187



Income tax net expense/(benefit) related to certain prior period items excluded from "Adjusted" earnings

23


-


23


(12)



Adjusted net income

$  1,088


$        1,039


$   5,119


$        4,858






















Amgen Inc.

GAAP to "Adjusted" Reconciliations

(In millions, except per share data)

(Unaudited)



The following table presents the computations for GAAP and "Adjusted" diluted EPS, computed under the treasury stock method.


"Adjusted" EPS presented below excludes stock option expense:













Three months ended


Three months ended




December 31, 2012


December 31, 2011




GAAP


"Adjusted"  


GAAP


"Adjusted"  



Income (Numerator):










Net income for basic and diluted EPS

$    788


$        1,088


$      934


$        1,039













Shares (Denominator):










Weighted-average shares for basic EPS

763


763


854


854



Effect of dilutive securities

15


15

(*)

7


6

(*)


Weighted-average shares for diluted EPS

778


778


861


860













Diluted EPS

$   1.01


$         1.40


$     1.08


$         1.21














Year ended


Year ended




December 31, 2012


December 31, 2011




GAAP


"Adjusted" 


GAAP


"Adjusted" 



Income (Numerator):










Net income for basic and diluted EPS

$  4,345


$        5,119


$   3,683


$        4,858













Shares (Denominator):










Weighted-average shares for basic EPS

775


775


905


905



Effect of dilutive securities

12


11

(*)

7


7

(*)


Weighted-average shares for diluted EPS

787


786


912


912













Diluted earnings per share

$   5.52


$         6.51


$     4.04


$         5.33













(*)  Dilutive securities used to compute "Adjusted" diluted EPS for the three months and years ended December 31, 2012 and 2011 were computed under the treasury stock method assuming that we do not expense stock options.











(a)

The adjustments during the years ended 2012 and 2011 include incremental expenses resulting from our transaction with Boehringer Ingelheim.  The adjustment during the three months ended December 31, 2012, relates to a charge in connection with the rationalization of our worldwide manufacturing operations.











(b)

For the three months and years ended December 31, 2012 and 2011, the total pre-tax expense for employee stock options was $13 million and $59 million, respectively and $18 million and $85 million, respectively.






















"Adjusted" diluted EPS including the impact of stock option expense for the three months and years ended December 31, 2012 and 2011 was as follows: 













Three months ended


Years ended




December 31, 


December 31, 




2012


2011


2012


2011













"Adjusted" diluted EPS, excluding stock option expense

$   1.40


$         1.21


$     6.51


$         5.33













Impact of stock option expense (net of tax)

(0.01)


(0.02)


(0.06)


(0.07)













"Adjusted" diluted EPS, including stock option expense

$   1.39


$         1.19


$     6.45


$         5.26












(c)

The tax effect of the adjustments between our GAAP and "Adjusted" 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 amortization of intangible assets and non-cash interest expense associated with our convertible notes, whereas the tax impact of other adjustments, including stock option expense, depends on whether the amounts are deductible in the tax jurisdictions where the expenses are incurred or the asset is located 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 years ended December 31, 2012, were 25.9% and 30.5%, respectively, compared with 34.8% and 21.8% for the corresponding periods of the prior year.






Amgen Inc.

Reconciliation of GAAP Debt Outstanding to "Adjusted" Debt Outstanding

(In millions)

(Unaudited)





GAAP


Adjustments for accounting standard (a)


"Adjusted"

















December 31, 2011

$           21,428


$                  154


$           21,582






December 31, 2012

$           26,529


$                    12


$           26,541







(a)

To exclude the impact of bifurcating the debt and equity components of our convertible notes as required by U.S. accounting standards for these securities commencing in 2009.


 

Reconciliation of Free Cash Flow

(In millions)

(Unaudited)












Three months ended


Years ended



December 31, 


December 31,



2012


2011


2012


2011


Cash Flows from Operations

$                       812


$                  1,584


$              5,882


$              5,119


Capital Expenditures

(200)


(224)


(689)


(567)


Free Cash Flow

$                       612


$                  1,360


$              5,193


$              4,552










Amgen Inc.

Reconciliation of GAAP EPS Guidance to "Adjusted" 

EPS Guidance for the Year Ending December 31, 2013

(Unaudited)



























2013


















GAAP EPS (diluted) guidance


$        6.46

-

$        6.76


















Known adjustments to arrive at "Adjusted" earnings*:












Amortization of acquired intangible assets

(a)

0.34








Stock option expense

(b)

0.04








Non-cash interest expense associated with our convertible notes

(c)

0.01


















"Adjusted" EPS (diluted) guidance


$        6.85

-

$        7.15









*

The known adjustments are presented net of their related aggregate tax impact of approximately $0.19 per share. 



(a)

To exclude the non-cash amortization of intangible assets acquired in prior year business combinations.



(b)

To exclude stock option expense.



(c)

To exclude the non-cash interest expense associated with our convertible notes.




Reconciliation of GAAP Tax Rate Guidance to "Adjusted" 

Tax Rate Guidance for the Year Ending December 31, 2013

(Unaudited)




2013 with PR excise tax credit


2013 without PR excise tax credit












GAAP tax rate guidance

12.5%

-

13.6%



15.8%

-

16.9%














Tax rate effect of known adjustments discussed above

1.5%

-

1.4%



1.2%

-

1.1%













"Adjusted" tax rate guidance

14.0%

-

15.0%



17.0%

-

18.0%













 

 

CONTACT: Amgen, Thousand Oaks
Ashleigh Koss, 805-313-6151 (media)
Arvind Sood, 805-447-1060 (investors)

(Logo: http://photos.prnewswire.com/prnh/20081015/AMGENLOGO)

SOURCE Amgen

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionality and provide short-term introductory projects that developers can complete between sessions.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo – to be held June 9-11, 2015, at the Javits Center in New York City, NY – is now accepting Hackathon proposals. Hackathon sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem. At Cloud Expo 2014 Silicon Valley, IBM held the Bluemix Developer Playground on November 5 and ElasticBox held the DevOps Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of...
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon, will discuss how as enterprise IT embraces other IoT-related technology trends, enterprises with i...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Collecting data in the field and configuring multitudes of unique devices is a time-consuming, labor-intensive process that can stretch IT resources. Horan & Bird [H&B], Australia’s fifth-largest Solar Panel Installer, wanted to automate sensor data collection and monitoring from its solar panels and integrate the data with its business and marketing systems. After data was collected and structured, two major areas needed to be addressed: improving developer workflows and extending access to a business application to multiple users (multi-tenancy). Docker, a container technology, was used to ...
Hadoop as a Service (as offered by handful of niche vendors now) is a cloud computing solution that makes medium and large-scale data processing accessible, easy, fast and inexpensive. In his session at Big Data Expo, Kumar Ramamurthy, Vice President and Chief Technologist, EIM & Big Data, at Virtusa, will discuss how this is achieved by eliminating the operational challenges of running Hadoop, so one can focus on business growth. The fragmented Hadoop distribution world and various PaaS solutions that provide a Hadoop flavor either make choices for customers very flexible in the name of opti...
For years, we’ve relied too heavily on individual network functions or simplistic cloud controllers. However, they are no longer enough for today’s modern cloud data center. Businesses need a comprehensive platform architecture in order to deliver a complete networking suite for IoT environment based on OpenStack. In his session at @ThingsExpo, Dhiraj Sehgal from PLUMgrid will discuss what a holistic networking solution should really entail, and how to build a complete platform that is scalable, secure, agile and automated.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.