EX-99.1 2 dex991.htm CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Condensed Consolidated Statement of Operations

Exhibit 99.1

 

Amgen Inc.

Condensed Consolidated Statements of Operations

(In millions, except per share data)

(Unaudited)

 

     Three Months
Ended
December 31,


     2005

   2004

Revenues:

             

Product sales

   $ 3,168    $ 2,778

Other revenues

     103      131
    

  

Total revenues

     3,271      2,909

Operating expenses:

             

Cost of sales (excludes amortization of acquired intangible assets presented below)

     511      476

Research and development

     661      617

Selling, general and administrative

     911      816

Amortization of intangible assets

     87      81
    

  

Total operating expenses

     2,170      1,990

Operating income

     1,101      919

Interest and other income, net

     10      1
    

  

Income before income taxes

     1,111      920

Provision for income taxes

     287      231
    

  

Net income

   $ 824    $ 689
    

  

Earnings per share:

             

Basic

   $ 0.67    $ 0.55

Diluted (1)

   $ 0.66    $ 0.53

Shares used in calculation of earnings per share:

             

Basic

     1,229      1,263

Diluted (1)

     1,243      1,310

 

(1) The following table presents the computations for diluted earnings per share (EPS) computed under the treasury stock and the “if-converted” methods:

 

     Three Months Ended
December 31,


     2005

    2004

Income (Numerator):

              

Net income for basic EPS

   $ 824     $ 689

Adjustment for interest expense on convertible notes, net of tax

     —   (A)     6
    


 

Net income for diluted EPS, after assumed conversion of convertible notes

   $ 824     $ 695
    


 

Shares (Denominator):

              

Weighted-average shares for basic EPS

     1,229       1,263

Effect of dilutive securities

     14       12

Effect of convertible notes, after assumed conversion

     —   (A)     35
    


 

Weighted-average shares for diluted EPS

     1,243       1,310
    


 

Diluted earnings per share

   $ 0.66     $ 0.53
    


 

 

(A) On May 6, 2005 and August 17, 2005, in connection with an exchange offer, the Company modified the terms of approximately 99 percent of our convertible notes then outstanding (the “Modified Convertible Notes”). As a result of certain of these modifications, if converted, the Modified Convertible Notes would be settled in 1) cash equal to the lesser of the accreted value of the Modified Convertible Notes at the conversion date or the conversion value, as defined, and 2) shares of common stock, if any, to the extent the conversion value exceeds the accreted value. Accordingly, the Modified Convertible Notes do not impact diluted earnings per share under the “if-converted” method but rather, they impact diluted earnings per share under the treasury stock method, and only to the extent that the conversion value exceeds the accreted value during any reporting period, requiring such difference, if any, to be potentially settled in shares of common stock.


Amgen Inc.

Product Sales Detail by Product and Geographic Region

(In millions)

(Unaudited)

 

     Three Months
Ended
December 31,


     2005

   2004

Aranesp® - U.S.

   $ 579    $ 449

Aranesp® - International

     294      256

EPOGEN® - U.S.

     626      697

Neulasta® - U.S.

     519      394

NEUPOGEN® - U.S.

     210      204

Neulasta® - International

     104      75

NEUPOGEN® - International

     95      105

Enbrel® - U.S.

     645      545

Enbrel® - International

     29      22

Sensipar® - U.S.

     37      18

Sensipar® - International

     14      1

Other product sales - U.S.

     9      6

Other product sales - International

     7      6
    

  

Total product sales

   $ 3,168    $ 2,778
    

  

U.S.

   $ 2,625    $ 2,313

International

     543      465
    

  

     $ 3,168    $ 2,778
    

  


Amgen Inc.

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

 

     December 31,
2005


    December 31,
2004


 

Assets

                

Current assets:

                

Cash and marketable securities

   $ 5,255     $ 5,808  

Trade receivables, net

     1,769       1,461  

Inventories

     1,258       888  

Other current assets

     953       1,013  
    


 


Total current assets

     9,235       9,170  

Property, plant, and equipment, net

     5,038       4,712  

Intangible assets, net

     3,742       4,033  

Goodwill

     10,495       10,525  

Other assets

     787       781  
    


 


Total assets

   $ 29,297     $ 29,221  
    


 


Liabilities and Stockholders’ Equity

                

Current liabilities:

                

Accounts payable and accrued liabilities

   $ 3,595     $ 2,984  

Convertible notes

     1,759 (2)     1,173 (1)
    


 


Total current liabilities

     5,354       4,157  

Deferred tax liabilities

     1,163       1,294  

Convertible notes

     —         1,739 (2)

Other long-term debt

     2,198       2,198  

Other non-current liabilities

     131       128  

Stockholders’ equity

     20,451       19,705  
    


 


Total liabilities and stockholders’ equity

   $ 29,297     $ 29,221  
    


 


Shares outstanding

     1,224       1,260  

 

(1) On March 2, 2005, as a result of certain holders of the Convertible notes exercising their March 1, 2005 put option, the Company repurchased $1,175 million, or approximately 40 percent, of the outstanding Convertible notes at their then-accreted value for cash. Accordingly, the Convertible notes repurchased were classified as current liabilities at December 31, 2004.

 

(2) Holders of the remaining outstanding Convertible notes may require the Company to purchase all or a portion of the notes on specific dates as early as March 1, 2006 at the original issuance price plus accrued original issue discount through the purchase date. Accordingly, as of December 31, 2005, the Convertible notes have been classified as current liabilities.