"2023 was another year of performance and progress for our company," said
Key results include:
(1) Includes product sales for the full fourth quarter of 2023 from UPLIZNA and KRYSTEXXA in connection with Horizon acquisition.
References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis," "free cash flow" (computed by subtracting capital expenditures from operating cash flow), "EBITDA, or earnings before interest, taxes, depreciation and amortization" (computed by adding interest expense, provision for income taxes, and depreciation and amortization expense to GAAP net income) and "debt leverage ratio" (calculated as the ratio of GAAP total debt to EBITDA) refer to non-GAAP financial measures. Adjustments to the most directly comparable GAAP financial measures and other items are presented on the attached reconciliations. Refer to Non-GAAP Financial Measures below for further discussion.
Product Sales Performance
Total product sales increased 20% for the fourth quarter of 2023 versus the fourth quarter of 2022. Volume grew 23%, partially offset by 3% lower net selling price. Full year product sales increased 9% versus 2022, driven by 15% volume growth, partially offset by 3% lower net selling price, 1% unfavorable changes from estimated sales deductions and 1% negative impact from foreign exchange.
General Medicine
Oncology
Inflammation
Rare Disease
Excluding TAVNEOS®, the products listed below were acquired from our Horizon transaction on
Established Products
Product Sales Detail by Product and
$Millions, except percentages |
Q4 '23 |
Q4 '22 |
YOY Δ |
|||||||
US |
ROW |
TOTAL |
TOTAL |
TOTAL |
||||||
Repatha® |
$ 201 |
$ 216 |
$ 417 |
$ 333 |
25 % |
|||||
Prolia® |
746 |
361 |
1,107 |
992 |
12 % |
|||||
EVENITY® |
239 |
79 |
318 |
225 |
41 % |
|||||
Aimovig® |
73 |
5 |
78 |
114 |
(32 %) |
|||||
BLINCYTO® |
148 |
93 |
241 |
164 |
47 % |
|||||
Vectibix® |
116 |
135 |
251 |
238 |
5 % |
|||||
KYPROLIS® |
222 |
128 |
350 |
325 |
8 % |
|||||
LUMAKRAS®/LUMYKRAS™ |
51 |
26 |
77 |
71 |
8 % |
|||||
XGEVA® |
382 |
145 |
527 |
484 |
9 % |
|||||
Nplate® |
252 |
134 |
386 |
469 |
(18 %) |
|||||
MVASI® |
127 |
61 |
188 |
205 |
(8 %) |
|||||
KANJINTI® |
31 |
11 |
42 |
63 |
(33 %) |
|||||
TEZSPIRE® |
177 |
— |
177 |
79 |
* |
|||||
Otezla® |
526 |
103 |
629 |
616 |
2 % |
|||||
Enbrel® |
1,005 |
10 |
1,015 |
1,098 |
(8 %) |
|||||
AMJEVITA®/AMGEVITA™ |
33 |
127 |
160 |
119 |
34 % |
|||||
TEPEZZA®** |
441 |
7 |
448 |
— |
NM |
|||||
KRYSTEXXA®** |
272 |
— |
272 |
— |
NM |
|||||
UPLIZNA®** |
60 |
5 |
65 |
— |
NM |
|||||
TAVNEOS® |
42 |
2 |
44 |
21 |
* |
|||||
Ultra rare products** |
162 |
2 |
164 |
— |
NM |
|||||
EPOGEN® |
55 |
— |
55 |
114 |
(52 %) |
|||||
Aranesp® |
107 |
212 |
319 |
348 |
(8 %) |
|||||
Parsabiv® |
57 |
32 |
89 |
93 |
(4 %) |
|||||
Neulasta® |
208 |
31 |
239 |
221 |
8 % |
|||||
Other products*** |
137 |
38 |
175 |
160 |
9 % |
|||||
Total product sales |
$ 5,870 |
$ 1,963 |
$ 7,833 |
$ 6,552 |
20 % |
|||||
*Change in excess of 100% |
||||||||||
**Products were acquired from our Horizon acquisition on |
||||||||||
***Consists of (i) RIABNI®, AVSOLA®, Corlanor®, NEUPOGEN®, IMLYGIC®, Sensipar®/Mimpara™ and BEKEMV™, |
||||||||||
NM = not meaningful |
$Millions, except percentages |
FY '23 |
FY '22 |
YOY Δ |
|||||||
US |
ROW |
TOTAL |
TOTAL |
TOTAL |
||||||
Repatha® |
$ 793 |
$ 842 |
$ 1,635 |
$ 1,296 |
26 % |
|||||
Prolia® |
2,733 |
1,315 |
4,048 |
3,628 |
12 % |
|||||
EVENITY® |
809 |
351 |
1,160 |
787 |
47 % |
|||||
Aimovig® |
303 |
20 |
323 |
414 |
(22 %) |
|||||
BLINCYTO® |
566 |
295 |
861 |
583 |
48 % |
|||||
Vectibix® |
461 |
523 |
984 |
893 |
10 % |
|||||
KYPROLIS® |
921 |
482 |
1,403 |
1,247 |
13 % |
|||||
LUMAKRAS®/LUMYKRAS™ |
197 |
83 |
280 |
285 |
(2 %) |
|||||
XGEVA® |
1,527 |
585 |
2,112 |
2,014 |
5 % |
|||||
Nplate® |
996 |
481 |
1,477 |
1,307 |
13 % |
|||||
MVASI® |
511 |
289 |
800 |
901 |
(11 %) |
|||||
KANJINTI® |
109 |
50 |
159 |
316 |
(50 %) |
|||||
TEZSPIRE® |
567 |
— |
567 |
170 |
* |
|||||
Otezla® |
1,777 |
411 |
2,188 |
2,288 |
(4 %) |
|||||
Enbrel® |
3,650 |
47 |
3,697 |
4,117 |
(10 %) |
|||||
AMJEVITA®/AMGEVITA™ |
126 |
500 |
626 |
460 |
36 % |
|||||
TEPEZZA®** |
441 |
7 |
448 |
— |
NM |
|||||
KRYSTEXXA®** |
272 |
— |
272 |
— |
NM |
|||||
UPLIZNA®** |
60 |
5 |
65 |
— |
NM |
|||||
TAVNEOS® |
126 |
8 |
134 |
21 |
* |
|||||
Ultra Rare products** |
162 |
2 |
164 |
— |
NM |
|||||
EPOGEN® |
226 |
— |
226 |
506 |
(55 %) |
|||||
Aranesp® |
452 |
910 |
1,362 |
1,421 |
(4 %) |
|||||
Parsabiv® |
228 |
134 |
362 |
382 |
(5 %) |
|||||
Neulasta® |
710 |
138 |
848 |
1,126 |
(25 %) |
|||||
Other products*** |
549 |
160 |
709 |
639 |
11 % |
|||||
Total product sales |
$ 19,272 |
$ 7,638 |
$ 26,910 |
$ 24,801 |
9 % |
|||||
*Change in excess of 100% |
||||||||||
**Products were acquired from our Horizon acquisition on |
||||||||||
***Consists of (i) AVSOLA®, RIABNI®, Corlanor®, NEUPOGEN®, IMLYGIC®, Sensipar®/Mimpara™ and BEKEMV™, where Biosimilars total |
||||||||||
NM = not meaningful |
Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:
On a non-GAAP basis:
$Millions, except percentages |
GAAP |
Non-GAAP |
||||||||||
Q4 '23 |
Q4 '22 |
YOY Δ |
Q4 '23 |
Q4 '22 |
YOY Δ |
|||||||
Cost of Sales |
$ 3,112 |
$ 1,747 |
78 % |
$ 1,278 |
$ 1,071 |
19 % |
||||||
% of product sales |
39.7 % |
26.7 % |
13.0 pts |
16.3 % |
16.3 % |
— pts |
||||||
Research & Development |
$ 1,534 |
$ 1,324 |
16 % |
$ 1,494 |
$ 1,291 |
16 % |
||||||
% of product sales |
19.6 % |
20.2 % |
(0.6) pts |
19.1 % |
19.7 % |
(0.6) pts |
||||||
Selling, General & Administrative |
$ 2,274 |
$ 1,572 |
45 % |
$ 1,764 |
$ 1,468 |
20 % |
||||||
% of product sales |
29.0 % |
24.0 % |
5.0 pts |
22.5 % |
22.4 % |
0.1 pts |
||||||
Other |
$ 5 |
$ (34) |
* |
$ — |
$ — |
NM |
||||||
Total Operating Expenses |
$ 6,925 |
$ 4,609 |
50 % |
$ 4,536 |
$ 3,830 |
18 % |
||||||
Operating Margin |
||||||||||||
operating income as % of product sales |
16.2 % |
34.0 % |
(17.8) pts |
46.7 % |
45.9 % |
0.8 pts |
||||||
Tax Rate |
10.0 % |
7.6 % |
2.4 pts |
15.9 % |
13.4 % |
2.5 pts |
||||||
pts: percentage points |
||||||||||||
* change in excess of 100% |
||||||||||||
NM = not meaningful |
$Millions, except percentages |
GAAP |
Non-GAAP |
||||||||||
FY '23 |
FY '22 |
YOY Δ |
FY '23 |
FY '22 |
YOY Δ |
|||||||
Cost of Sales |
$ 8,451 |
$ 6,406 |
32 % |
$ 4,573 |
$ 3,951 |
16 % |
||||||
% of product sales |
31.4 % |
25.8 % |
5.6 pts |
17.0 % |
15.9 % |
1.1 pts |
||||||
Research & Development |
$ 4,784 |
$ 4,434 |
8 % |
$ 4,700 |
$ 4,341 |
8 % |
||||||
% of product sales |
17.8 % |
17.9 % |
(0.1) pts |
17.5 % |
17.5 % |
— pts |
||||||
Selling, General & Administrative |
$ 6,179 |
$ 5,414 |
14 % |
$ 5,518 |
$ 5,270 |
5 % |
||||||
% of product sales |
23.0 % |
21.8 % |
1.2 pts |
20.5 % |
21.2 % |
(0.7) pts |
||||||
Other |
$ 879 |
$ 503 |
75 % |
$ — |
$ — |
NM |
||||||
Total Operating Expenses |
|
|
21 % |
$ 14,791 |
$ 13,562 |
9 % |
||||||
Operating Margin |
||||||||||||
operating income as % of product sales |
29.3 % |
38.6 % |
(9.3) pts |
49.8 % |
51.5 % |
(1.7) pts |
||||||
Tax Rate |
14.5 % |
10.8 % |
3.7 pts |
16.5 % |
13.8 % |
2.7 pts |
||||||
pts: percentage points |
||||||||||||
NM = not meaningful |
Cash Flow and Balance Sheet
$Billions, except shares |
Q4 '23 |
Q4 '22 |
YOY Δ |
FY '23 |
FY '22 |
YOY Δ |
||||||
Operating Cash Flow |
$ 0.5 |
$ 2.6 |
$ (2.1) |
$ 8.5 |
$ 9.7 |
$ (1.3) |
||||||
Capital Expenditures |
$ 0.2 |
$ 0.3 |
$ (0.1) |
$ 1.1 |
$ 0.9 |
$ 0.2 |
||||||
Free Cash Flow |
$ 0.3 |
$ 2.3 |
$ (2.0) |
$ 7.4 |
$ 8.8 |
$ (1.4) |
||||||
Dividends Paid |
$ 1.1 |
$ 1.0 |
$ 0.1 |
$ 4.6 |
$ 4.2 |
$ 0.4 |
||||||
Share Repurchases |
$ — |
$ — |
$ 0.0 |
$ — |
$ 6.3 |
$ (6.3) |
||||||
Average Diluted Shares (millions) |
540 |
539 |
1 |
538 |
541 |
(3) |
||||||
Note: Numbers may not add due to rounding |
$Billions |
|
|
YTD Δ |
|||
Cash and Investments |
$ 10.9 |
$ 9.3 |
$ 1.6 |
|||
Debt Outstanding |
$ 64.6 |
$ 38.9 |
$ 25.7 |
|||
Note: Numbers may not add due to rounding |
2024 Guidance
For the full year 2024, the Company expects:
Fourth Quarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
General Medicine
Maridebart cafraglutide (AMG 133)
AMG 786
Olpasiran (AMG 890)
Repatha
Oncology
Tarlatamab (AMG 757)
BLINCYTO
Xaluritamig (AMG 509)
AMG 193
Nplate
LUMAKRAS/LUMYKRAS
Bemarituzumab
Inflammation
TEZSPIRE
Rocatinlimab (AMG 451/KHK4083)
Otezla
Efavaleukin alfa (AMG 592)
Ordesekimab (AMG 714/PRV-015)
Rare Disease
TAVNEOS
TEPEZZA
UPLIZNA
Dazodalibep
Daxdilimab
Fipaxalparant (formerly AMG 670 / HZN 825)
Biosimilars
TEZSPIRE is being developed in collaboration with AstraZeneca.
Rocatinlimab, formerly AMG 451/KHK4083, is being developed in collaboration with Kyowa Kirin.
Ordesekimab, formerly AMG 714 and also known as PRV-015, is being developed in collaboration with
Xaluritamig, formerly AMG 509, is being developed pursuant to a research collaboration with Xencor, Inc.
IDE397 is an investigational MAT2A inhibitor from IDEAYA Biosciences.
OPDIVO is a registered trademark of Bristol-Myers Squibb Company.
Non-GAAP Financial Measures
In this news release, management has presented its operating results for the fourth quarters and full years of 2023 and 2022, in accordance with
The Company believes that its 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 normal and recurring business activities by facilitating comparisons of results of normal and recurring business operations among current, past and future periods. The Company believes that FCF provides a further measure of the Company's liquidity. The Company believes its debt leverage ratio provides a supplemental operating metric for the full year period as it compares the amount of cash generated by our operations for the year.
The Company uses the non-GAAP financial measures set forth in the news release in connection with its own budgeting and financial planning internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. The non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
About
For more information, visit Amgen.com and follow us on X (formerly known as Twitter), LinkedIn, Instagram, TikTok, YouTube and Threads.
Forward-Looking Statements
This news release contains forward-looking statements that are based on the current expectations and beliefs of
No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and 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 healthcare cost containment. 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, including our devices, after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the
###
CONTACT:
|
|||||||
Consolidated Statements of Income - GAAP |
|||||||
(In millions, except per-share data) |
|||||||
(Unaudited) |
|||||||
Three months ended |
Twelve months ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Revenues: |
|||||||
Product sales |
$ 7,833 |
$ 6,552 |
$ 26,910 |
$ 24,801 |
|||
Other revenues |
363 |
287 |
1,280 |
1,522 |
|||
Total revenues |
8,196 |
6,839 |
28,190 |
26,323 |
|||
Operating expenses: |
|||||||
Cost of sales |
3,112 |
1,747 |
8,451 |
6,406 |
|||
Research and development |
1,534 |
1,324 |
4,784 |
4,434 |
|||
Selling, general and administrative |
2,274 |
1,572 |
6,179 |
5,414 |
|||
Other |
5 |
(34) |
879 |
503 |
|||
Total operating expenses |
6,925 |
4,609 |
20,293 |
16,757 |
|||
Operating income |
1,271 |
2,230 |
7,897 |
9,566 |
|||
Other income (expense): |
|||||||
Interest expense, net |
(821) |
(415) |
(2,875) |
(1,406) |
|||
Other income (expense), net |
402 |
(67) |
2,833 |
(814) |
|||
Income before income taxes |
852 |
1,748 |
7,855 |
7,346 |
|||
Provision for income taxes |
85 |
132 |
1,138 |
794 |
|||
Net income |
$ 767 |
$ 1,616 |
$ 6,717 |
$ 6,552 |
|||
Earnings per share: |
|||||||
Basic |
$ 1.43 |
$ 3.02 |
$ 12.56 |
$ 12.18 |
|||
Diluted |
$ 1.42 |
$ 3.00 |
$ 12.49 |
$ 12.11 |
|||
Weighted-average shares used in calculation of earnings per share: |
|||||||
Basic |
535 |
535 |
535 |
538 |
|||
Diluted |
540 |
539 |
538 |
541 |
|
|||
Consolidated Balance Sheets - GAAP |
|||
(In millions) |
|||
|
|
||
2023 |
2022 |
||
(Unaudited) |
|||
Assets |
|||
Current assets: |
|||
Cash, cash equivalents and marketable securities |
$ 10,944 |
$ 9,305 |
|
Trade receivables, net |
7,268 |
5,563 |
|
Inventories |
9,518 |
4,930 |
|
Other current assets |
2,602 |
2,388 |
|
Total current assets |
30,332 |
22,186 |
|
Property, plant and equipment, net |
5,941 |
5,427 |
|
Intangible assets, net |
32,641 |
16,080 |
|
|
18,629 |
15,529 |
|
Other noncurrent assets |
9,611 |
5,899 |
|
Total assets |
$ 97,154 |
$ 65,121 |
|
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Accounts payable and accrued liabilities |
$ 16,949 |
$ 14,096 |
|
Current portion of long-term debt |
1,443 |
1,591 |
|
Total current liabilities |
18,392 |
15,687 |
|
Long-term debt |
63,170 |
37,354 |
|
Long-term deferred tax liabilities |
2,354 |
11 |
|
Long-term tax liabilities |
4,680 |
5,757 |
|
Other noncurrent liabilities |
2,326 |
2,651 |
|
Total stockholders' equity |
6,232 |
3,661 |
|
Total liabilities and stockholders' equity |
$ 97,154 |
$ 65,121 |
|
Shares outstanding |
535 |
534 |
|
|||||||
GAAP to Non-GAAP Reconciliations |
|||||||
(Dollars in millions) |
|||||||
(Unaudited) |
|||||||
Three months ended |
Twelve months ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
GAAP cost of sales |
$ 3,112 |
$ 1,747 |
$ 8,451 |
$ 6,406 |
|||
Adjustments to cost of sales: |
|||||||
Acquisition-related expenses (a) |
(1,834) |
(676) |
(3,842) |
(2,455) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
— |
— |
(36) |
— |
|||
Total adjustments to cost of sales |
(1,834) |
(676) |
(3,878) |
(2,455) |
|||
Non-GAAP cost of sales |
$ 1,278 |
$ 1,071 |
$ 4,573 |
$ 3,951 |
|||
GAAP cost of sales as a percentage of product sales |
39.7 % |
26.7 % |
31.4 % |
25.8 % |
|||
Acquisition-related expenses (a) |
(23.4) |
(10.4) |
(14.3) |
(9.9) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
0.0 |
0.0 |
(0.1) |
0.0 |
|||
Non-GAAP cost of sales as a percentage of product sales |
16.3 % |
16.3 % |
17.0 % |
15.9 % |
|||
GAAP research and development expenses |
$ 1,534 |
$ 1,324 |
$ 4,784 |
$ 4,434 |
|||
Adjustments to research and development expenses: |
|||||||
Acquisition-related expenses (a) |
(28) |
(33) |
(55) |
(93) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
(12) |
— |
(29) |
— |
|||
Total adjustments to research and development expenses |
(40) |
(33) |
(84) |
(93) |
|||
Non-GAAP research and development expenses |
$ 1,494 |
$ 1,291 |
$ 4,700 |
$ 4,341 |
|||
GAAP research and development expenses as a percentage of product sales |
19.6 % |
20.2 % |
17.8 % |
17.9 % |
|||
Acquisition-related expenses (a) |
(0.3) |
(0.5) |
(0.2) |
(0.4) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
(0.2) |
0.0 |
(0.1) |
0.0 |
|||
Non-GAAP research and development expenses as a percentage of product sales |
19.1 % |
19.7 % |
17.5 % |
17.5 % |
|||
GAAP selling, general and administrative expenses |
$ 2,274 |
$ 1,572 |
$ 6,179 |
$ 5,414 |
|||
Adjustments to selling, general and administrative expenses: |
|||||||
Acquisition-related expenses (b) |
(510) |
(104) |
(648) |
(144) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
— |
— |
(13) |
— |
|||
Total adjustments to selling, general and administrative expenses |
(510) |
(104) |
(661) |
(144) |
|||
Non-GAAP selling, general and administrative expenses |
$ 1,764 |
$ 1,468 |
$ 5,518 |
$ 5,270 |
|||
GAAP selling, general and administrative expenses as a percentage of product sales |
29.0 % |
24.0 % |
23.0 % |
21.8 % |
|||
Acquisition-related expenses (b) |
(6.5) |
(1.6) |
(2.4) |
(0.6) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives |
0.0 |
0.0 |
(0.1) |
0.0 |
|||
Non-GAAP selling, general and administrative expenses as a percentage of product sales |
22.5 % |
22.4 % |
20.5 % |
21.2 % |
|||
GAAP operating expenses |
$ 6,925 |
$ 4,609 |
$ 20,293 |
$ 16,757 |
|||
Adjustments to operating expenses: |
|||||||
Adjustments to cost of sales |
(1,834) |
(676) |
(3,878) |
(2,455) |
|||
Adjustments to research and development expenses |
(40) |
(33) |
(84) |
(93) |
|||
Adjustments to selling, general and administrative expenses |
(510) |
(104) |
(661) |
(144) |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives (c) |
(2) |
1 |
(185) |
8 |
|||
Certain other expenses (d) |
(3) |
33 |
(694) |
(511) |
|||
Total adjustments to operating expenses |
(2,389) |
(779) |
(5,502) |
(3,195) |
|||
Non-GAAP operating expenses |
$ 4,536 |
$ 3,830 |
$ 14,791 |
$ 13,562 |
|||
Three months ended |
Twelve months ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
GAAP operating income |
$ 1,271 |
$ 2,230 |
$ 7,897 |
$ 9,566 |
|||
Adjustments to operating expenses |
2,389 |
779 |
5,502 |
3,195 |
|||
Non-GAAP operating income |
$ 3,660 |
$ 3,009 |
$ 13,399 |
$ 12,761 |
|||
GAAP operating income as a percentage of product sales |
16.2 % |
34.0 % |
29.3 % |
38.6 % |
|||
Adjustments to cost of sales |
23.4 |
10.4 |
14.4 |
9.9 |
|||
Adjustments to research and development expenses |
0.4 |
0.5 |
0.3 |
0.4 |
|||
Adjustments to selling, general and administrative expenses |
6.5 |
1.6 |
2.6 |
0.6 |
|||
Certain net charges pursuant to our restructuring and cost savings initiatives (c) |
0.1 |
0.0 |
0.7 |
0.0 |
|||
Certain other expenses (d) |
0.1 |
(0.6) |
2.5 |
2.0 |
|||
Non-GAAP operating income as a percentage of product sales |
46.7 % |
45.9 % |
49.8 % |
51.5 % |
|||
GAAP interest expense, net |
$ (821) |
$ (415) |
$ (2,875) |
$ (1,406) |
|||
Adjustments to interest expense, net: |
|||||||
Interest expense on acquisition-related debt (e) |
19 |
5 |
807 |
5 |
|||
Non-GAAP interest expense, net |
$ (802) |
$ (410) |
$ (2,068) |
$ (1,401) |
|||
GAAP other income (expense), net |
$ 402 |
$ (67) |
$ 2,833 |
$ (814) |
|||
Adjustments to other income (expense), net |
|||||||
Interest income and other expenses on acquisition-related debt (e) |
(18) |
— |
(625) |
— |
|||
Equity method investment basis difference amortization |
— |
49 |
— |
192 |
|||
Net (gains)/losses from equity investments (f) |
(217) |
(39) |
(1,522) |
362 |
|||
Total adjustments to other income (expense), net |
(235) |
10 |
(2,147) |
554 |
|||
Non-GAAP other income (expense), net |
$ 167 |
$ (57) |
$ 686 |
$ (260) |
|||
GAAP income before income taxes |
$ 852 |
$ 1,748 |
$ 7,855 |
$ 7,346 |
|||
Adjustments to income before income taxes: |
|||||||
Adjustments to operating expenses |
2,389 |
779 |
5,502 |
3,195 |
|||
Adjustments to interest expense, net |
19 |
5 |
807 |
5 |
|||
Adjustments to other income (expense), net |
(235) |
10 |
(2,147) |
554 |
|||
Total adjustments to income before income taxes |
2,173 |
794 |
4,162 |
3,754 |
|||
Non-GAAP income before income taxes |
$ 3,025 |
$ 2,542 |
$ 12,017 |
$ 11,100 |
|||
GAAP provision for income taxes |
$ 85 |
$ 132 |
$ 1,138 |
$ 794 |
|||
Adjustments to provision for income taxes: |
|||||||
Income tax effect of the above adjustments (g) |
404 |
163 |
846 |
690 |
|||
Other income tax adjustments (h) |
(7) |
45 |
(1) |
46 |
|||
Total adjustments to provision for income taxes |
397 |
208 |
845 |
736 |
|||
Non-GAAP provision for income taxes |
$ 482 |
$ 340 |
$ 1,983 |
$ 1,530 |
|||
GAAP tax as a percentage of income before taxes |
10.0 % |
7.6 % |
14.5 % |
10.8 % |
|||
Adjustments to provision for income taxes: |
|||||||
Income tax effect of the above adjustments (g) |
6.1 |
4.0 |
2.0 |
2.6 |
|||
Other income tax adjustments (h) |
(0.2) |
1.8 |
0.0 |
0.4 |
|||
Total adjustments to provision for income taxes |
5.9 |
5.8 |
2.0 |
3.0 |
|||
Non-GAAP tax as a percentage of income before taxes |
15.9 % |
13.4 % |
16.5 % |
13.8 % |
|||
GAAP net income |
$ 767 |
$ 1,616 |
$ 6,717 |
$ 6,552 |
|||
Adjustments to net income: |
|||||||
Adjustments to income before income taxes, net of the income tax effect |
1,769 |
631 |
3,316 |
3,064 |
|||
Other income tax adjustments (h) |
7 |
(45) |
1 |
(46) |
|||
Total adjustments to net income |
1,776 |
586 |
3,317 |
3,018 |
|||
Non-GAAP net income |
$ 2,543 |
$ 2,202 |
$ 10,034 |
$ 9,570 |
|||
Note: Numbers may not add due to rounding |
|
||||||||||
GAAP to Non-GAAP Reconciliations |
||||||||||
(In millions, except per-share data) |
||||||||||
(Unaudited) |
||||||||||
The following table presents the computations for GAAP and non-GAAP diluted earnings per share: |
||||||||||
Three months ended |
Three months ended |
|||||||||
GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
|||||||
Net income |
$ 767 |
$ 2,543 |
$ 1,616 |
$ 2,202 |
||||||
Weighted-average shares for diluted EPS |
540 |
540 |
539 |
539 |
||||||
&nb |