Amgen : 2024 Annual Meeting of Stockholders Presentation

Reconciliations

Amgen Inc.

GAAP to Non-GAAP Reconciliations (Dollars in millions)

(Unaudited)

Amgen Inc.

GAAP to Non-GAAP Reconciliations (Dollars in millions, except per-share data) (Unaudited)

1. The adjustments related primarily to noncash amortization of intangible assets from business acquisitions.
2. For the twelve months ended December 31, 2023, the adjustments related primarily to acquisition-related costs related to our Horizon acquisition.
3. For the twelve months ended December 31, 2023, the adjustments related primarily to separation costs associated with our restructuring plan initiated in early 2023.
4. For the twelve months ended December 31, 2023, the adjustments related primarily to a net impairment charge for AMG 340. For the twelve months ended December 31, 2022, the adjustments related primarily to cumulative foreign currency translation adjustments from the divestiture of Gensenta.
5. For the twelve months ended December 31, 2023, the adjustments included (i) interest expense and income on senior notes issued in March 2023 and (ii) debt issuance costs and other fees related to our bridge credit and term loan credit agreements, incurred prior to the closing of our acquisition of Horizon.
6. For the twelve months ended December 31, 2023, the adjustments related primarily to our BeiGene, Ltd. equity fair value adjustment.
7. 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 and certain gains and losses on our investments in equity securities, whereas the tax impact of other adjustments, including expenses related to restructuring and cost savings initiatives, 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 rate for the adjustments to our GAAP income before income taxes for the twelve months ended December 31, 2023, was 20.3% compared to 18.4% for the prior year.
8. The adjustments related to certain acquisition items, prior period and other items excluded from GAAP earnings.