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

  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

2013 Total Revenues and Adjusted EPS Expected to be in the Range of
$17.8-$18.2 Billion and $6.85-$7.15, Respectively

PR Newswire

THOUSAND OAKS, Calif., Jan. 23, 2013

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:

  oFor 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.
  oFor 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.
  oGAAP 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.
  oFree cash flow for the full year was $5.2 billion compared to $4.5 billion
    in 2011.
  oThe 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, chairmanand
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       Q4 '12  Q4 '11  YOY Δ  FY '12   FY '11   YOY Δ
percentages
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

  oTotal 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).
  oCombined 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.

       oGlobal 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.
       oGlobal 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.

  oENBREL 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.
  oAranesp® (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.
  oEPOGEN® (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.
  oSensipar®/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.
  oCombined 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.
  oXGEVA sales increased 7 percent on a sequential basis and 113 percent for
    the full year due to unit growth.
  oProlia 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

  oCost 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.
  oResearch & 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.
  oSelling, 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 14.7%   14.4%   0.3 pts  14.4%    14.0%   0.4 pts
       PR excise tax)
Research & Development       $917    $842    9%       $3,296   $3,116  6%
       % of sales            21.1%   21.6%   (0.5)    19.8%    20.4%   (0.6)
                                             pts                       pts
Selling, General &           $1,351  $1,199  13%      $4,717   $4,434  6%
Administrative
       % 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



  oTax 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     15.9%   14.3%   1.6
                                                pts                     pts
Tax Rate (Excluding PR excise   20.3%   18.1%   2.2     20.3%   19.2%   1.1
tax credits)                                    pts                     pts
pts: percentage points

Cash Flow and Balance Sheet Discussion

  oThe 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.
  oDuring 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.
  oThe 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     778     860     (82)    786     912     (126)
(millions)
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:

  oTotal 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.
  oAdjusted 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.
  oCapital expenditures to be approximately $700 million.

Product and Pipeline Update

  oAMG 145: The Company recently initiated Phase 3 studies in subjects with
    high levels of LDL cholesterol.
  oTrebananib (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.
  oAranesp: The Company announced top-line results of the Phase 3 RED-HF^®
    (Reduction of Events With Darbepoetin Alfa in Heart Failure) Trial.
  odeCODE 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   $       $ 16,639    $ 15,295
                                             3,907
  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   852        656        2,918       2,427
     presented below)
  Research and development        938        851        3,380       3,167
  Selling, general and            1,370      1,208      4,801       4,486
  administrative
  Amortization of certain         73         73         294         294
  acquired intangible assets
  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  $      $  4,345   $  3,683
                                             934
Earnings per share:
  Basic                           $  1.03  $      $   5.61  $   4.07
                                             1.09
  Diluted                         $  1.01  $      $   5.52  $   4.04
                                             1.08
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  (118)    (11)             (160)    (65)
    improve cost
    efficiencies in our
    operations (a)
    Acquisition-related    (4)      -                (11)     (7)
    expenses
    Stock option expense   (3)      (2)              (12)     (10)
    (b)
    Total adjustments to   (125)    (13)             (183)    (82)
    cost of sales
    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    (16)     (1)              (50)     (28)
    expenses
    Certain charges
    pursuant to our
    continuing efforts to  -        -                (12)     -
    improve cost
    efficiencies in our
    operations
    Reversal of previously
    accrued expenses for
    bonuses and
    stock-based
    compensation awards,
    whichwere forfeited
    as a result of the     -        -                -        12
    employees' termination
    pursuant to our
    continuing efforts to
    improvecost
    efficiencies in our
    operations
    Stock option expense  (5)      (8)              (22)     (35)
    (b)
    Total adjustments to
    research and           (21)     (9)              (84)     (51)
    development expenses
    Adjusted research and  $       $            $       $   
    development expenses   917     842             3,296    3,116
    GAAP selling, general  $        $             $       $   
    and administrative     1,370   1,208           4,801    4,486
    expenses
    Adjustments to
    selling, general and
    administrative
    expenses:
    Acquisition-related    (14)     (1)              (59)     (12)
    expenses
    Stock option expense   (5)      (8)              (25)     (40)
    (b)
    Total adjustments to
    selling, general and   (19)     (9)              (84)     (52)
    administrative
    expenses
    Adjusted selling,
    general and            $        $             $       $   
    administrative         1,351   1,199           4,717    4,434
    expenses
    GAAP operating         $        $             $        $  
    expenses               3,333   2,811           11,688  11,270
    Adjustments to
    operating expenses:
    Adjustments to cost of (125)    (13)             (183)    (82)
    sales
    Adjustments to
    research and           (21)     (9)              (84)     (51)
    development expenses
    Adjustments to
    selling, general and   (19)     (9)              (84)     (52)
    administrative
    expenses
    Non-cash amortization
    of product technology
    rights acquired in a   (73)     (73)             (294)    (294)
    prior year business
    combination
    Certain charges
    pursuant to our
    continuing efforts to  (69)     (30)             (175)    (109)
    improve cost
    efficiencies in our
    operations
    Acquisition-related    (6)      -                (25)     -
    expenses
    (Expense)/benefit
    resulting from changes
    in the estimated fair
    values of the
    contingent             (26)     8                (31)     (1)
    consideration
    obligations related to
    a prior year business
    combination
    Benefit/(expenses)
    related to various     1        (1)              (64)     (786)
    legal proceedings
    Total adjustments to   (338)    (127)            (940)    (1,375)
    operating expenses
    Adjusted operating     $        $             $        $   
    expenses               2,995   2,684           10,748  9,895
    GAAP operating income  $        $             $       $   
                           1,088   1,162           5,577    4,312
    Adjustments to         338      127              940      1,375
    operating expenses
    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         338      127              940      1,375
    operating expenses
    Non-cash interest
    expense associated     36       34               140      143
    with our convertible
    notes
    Total adjustments to
    income before income   374      161              1,080    1,518
    taxes
    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  97       56               329      331
    (c)
    Income tax net
    expense/(benefit)
    related to certain     (23)     -                (23)     12
    prior period items
    excluded from
    "Adjusted" earnings
    Total adjustments to
    provision for income   74       56               306      343
    taxes
    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  277      105              751      1,187
    of the above
    adjustments
    Income tax net
    expense/(benefit)
    related to certain     23       -                23       (12)
    prior period items
    excluded from
    "Adjusted" earnings
    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       763      763              854      854
    shares for basic EPS
    Effect of dilutive     15       15           (*) 7        6            (*)
    securities
    Weighted-average       778      778              861      860
    shares for diluted EPS
    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       775      775              905      905
    shares for basic EPS
    Effect of dilutive     12       11           (*) 7        7            (*)
    securities
    Weighted-average       787      786              912      912
    shares for diluted EPS
    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 methodassuming that we do not expense stock
    options.
    The adjustments during the years ended 2012 and 2011 include incremental
    expenses resulting from our transaction with Boehringer Ingelheim. The
(a) adjustment during the three months ended December 31, 2012, relates to a
    charge in connection with the rationalization of our worldwide
    manufacturing operations.
    For the three months and years ended December 31, 2012 and 2011, the total
(b) 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   1.40     1.21             6.51     5.33
    option expense
    Impact of stock option (0.01)   (0.02)           (0.06)   (0.07)
    expense (net of tax)
    "Adjusted" diluted     $       $            $      $    
    EPS, including stock   1.39     1.19             6.45     5.26
    option expense
    The tax effect of the adjustments between our GAAP and "Adjusted" results
(c) 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-cashinterest 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)
                                Adjustments for
                   GAAP         accounting            "Adjusted"
                                standard(a)
  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   (a) 0.34
    intangible assets
    Stock option expense       (b) 0.04
    Non-cash interest expense
    associated with our        (c) 0.01
    convertible notes
"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  2013 without PR excise
                                   tax credit           tax credit
GAAP tax rate guidance             12.5%     - 13.6%       15.8%   -  16.9%
    Tax rate effect of known       1.5%      - 1.4%        1.2%    -  1.1%
    adjustments discussed above
"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

Website: http://www.amgen.com
 
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