Item 2.02 Results of Operations and Financial Condition.
On April 30, 2020, Amgen Inc. (the Company) issued a press release announcing
its unaudited results of operations for the three months ended March 31, 2020,
and its unaudited financial position as of March 31, 2020. The full text of the
press release is furnished as Exhibit 99.1 hereto.
In its press release the Company included certain non-U.S. Generally Accepted
Accounting Principles (GAAP) financial measures as defined in Regulation G
promulgated by the Securities and Exchange Commission. The non-GAAP financial
measures included in the press release are non-GAAP earnings per share, non-GAAP
operating income, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net
income, non-GAAP operating expenses and sub-components of non-GAAP operating
expenses such as non-GAAP cost of sales, non-GAAP research and development (R&D)
expenses and non-GAAP selling, general and administrative expenses.
Reconciliations for such non-GAAP financial measures to the most directly
comparable GAAP financial measures are included in the press release. The
Company also included Free Cash Flow (FCF), which is computed by subtracting
capital expenditures from operating cash flow, each as determined in accordance
with GAAP.
The Company believes that this 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 following is a summary of the costs and other items excluded from the most
directly comparable GAAP financial measures to calculate non-GAAP financial
measures:
•    Acquisition-related expenses: Acquisition-related charges are primarily
     associated with intangible assets acquired in connection with business
     acquisitions. Such charges include amortization of
     developed-product-technology rights, licensing rights, R&D technology
     rights, and marketing-related rights, as well as impairments of in-process
     R&D assets. The Company incurs charges related to these intangibles, and
     those charges are included in the Company's Condensed Consolidated Financial
     Statements. Charges for purchased intangible assets are significantly
     impacted by the timing and magnitude of the Company's acquisitions and
     potential product approvals as they relate to in-process R&D projects
     acquired. Accordingly, these charges may vary in amount from period to
     period. The Company excludes these charges for purposes of calculating the
     non-GAAP financial measures presented to facilitate a more meaningful
     evaluation of the Company's current operating performance and comparisons to
     past operating performance. The Company believes that excluding the noncash
     charges related to those intangible assets acquired in business acquisitions
     treats those assets as if the Company had developed them internally in the
     past and, thus, provides a supplemental measure of profitability in which
     the Company's acquired intellectual property is treated in a comparable
     manner to its internally-developed-intellectual property.

• Net charges pursuant to the Company's restructuring initiative:


     Restructuring costs are primarily related to facilities charges, including
     accelerated depreciation, and severance and benefits for employees
     terminated pursuant to the transformation and process improvement efforts.
     Restructuring costs are inconsistent in amount and are significantly
     impacted by the timing and nature of these events. Therefore, although the
     Company may incur these types of expenses in the future, it believes that
     eliminating these charges for purposes of calculating the non-GAAP financial
     measures provides a supplemental evaluation of the Company's current
     operating performance and facilitates comparisons to past operating
     performance.

• Other items: The Company adjusts GAAP financial results for certain expenses


     associated with judgments and/or settlements for legal proceedings discussed
     in our filings. The Company excludes these expenses for the purpose of
     calculating the non-GAAP financial measures presented because the Company
     believes these items are outside the ordinary course of business. The
     Company believes eliminating these expenses provides a supplemental
     evaluation of the Company's current operating performance and facilitates
     comparisons to past operating performance.

• The tax effect of the adjustments between GAAP and non-GAAP results take


     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.

The press release also contains a discussion of the additional purposes for which the Company's management uses these non-GAAP financial measures. This information and the information contained in the press release shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 2.02 of this Current Report is not incorporated by reference into any filings of the Company made under the Securities Act of 1933, as amended, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing unless specifically stated so therein.

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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.

  99.1       Press Release dated April 30, 2020
   104     Cover Page Interactive Data File (embedded within the Inline XBRL document).

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