Amgen Inc. | |||||||
Reconciliation of GAAP Earnings Per Share Guidance to "Adjusted" | |||||||
Earnings Per Share Guidance for the Year Ending December 31, 2010 | |||||||
(Unaudited) | |||||||
The following table shows a reconciliation of GAAP earnings per share (diluted) guidance to “Adjusted” earnings per share (diluted) | |||||||
guidance. On April 21, 2010, the Company announced “Adjusted” earnings per share guidance, including an anticipated impact of | |||||||
$200 million to $250 million due to U.S. Health Care Reform, now expected towards lower end of current guidance range of $5.05–$5.25. | |||||||
2010 | |||||||
GAAP earnings per share (diluted) guidance | $ 4.56 | - | $ 4.78 | ||||
Known adjustments to arrive at "Adjusted" earnings*: | |||||||
Amortization of acquired intangible assets, product technology rights | (a) | 0.19 | |||||
Incremental non-cash interest expense | (b) | 0.17 | |||||
Stock option expense | (c) | 0.06 | - | 0.08 | |||
Amortization of acquired intangible assets, R&D technology rights | (d) | 0.05 | |||||
"Adjusted" earnings per share (diluted) guidance | $ 5.05 | - | $ 5.25 | ||||
* | The known adjustments are presented net of their related aggregate tax impact of approximately $0.27 to $0.28 per share. | ||||||
(a) | To exclude the ongoing, non-cash amortization of acquired product technology rights, primarily ENBREL, related to | ||||||
the Immunex acquisition. | |||||||
(b) | To exclude the incremental non-cash interest expense resulting from a change in accounting in January 2009 | ||||||
related to our convertible debt. | |||||||
(c) | To exclude stock option expense. | ||||||
(d) | To exclude the ongoing, non-cash amortization of the R&D technology intangible assets acquired with the Abgenix | ||||||
and Avidia acquisitions. | |||||||
Amgen Inc. | |||||||
Reconciliation of GAAP Tax Rate Guidance to "Adjusted" | |||||||
Tax Rate Guidance for the Year Ending December 31, 2010 | |||||||
(Unaudited) | |||||||
2010 | |||||||
GAAP tax rate guidance | 17.7% | - | 19.0% | ||||
Tax rate effect of known adjustments discussed above | 2.0% | - | 2.3% | ||||
"Adjusted" tax rate guidance | 20.0% | - | 21.0% | ||||