"In a year marked by the disruption of COVID-19, we served patients around the world without interruption, advanced our pipeline and delivered strong financial performance, all while keeping our employees safe," said
$Millions, except EPS, dividends paid per share and percentages |
Q4 '20 |
Q4 '19 |
YOY Δ |
FY'20 |
FY'19 |
YOY Δ |
||||||||||||||
Total Revenues |
$ |
6,634 |
$ |
6,197 |
7% |
$ |
25,424 |
$ |
23,362 |
9% |
||||||||||
GAAP Operating Income |
$ |
2,008 |
$ |
2,048 |
(2%) |
$ |
9,139 |
$ |
9,674 |
(6%) |
||||||||||
GAAP Net Income |
$ |
1,615 |
$ |
1,703 |
(5%) |
$ |
7,264 |
$ |
7,842 |
(7%) |
||||||||||
GAAP EPS |
$ |
2.76 |
$ |
2.85 |
(3%) |
$ |
12.31 |
$ |
12.88 |
(4%) |
||||||||||
Non-GAAP Operating Income |
$ |
2,728 |
$ |
2,621 |
4% |
$ |
12,334 |
$ |
11,157 |
11% |
||||||||||
Non-GAAP Net Income |
$ |
2,229 |
$ |
2,174 |
3% |
$ |
9,795 |
$ |
9,028 |
8% |
||||||||||
Non-GAAP EPS |
$ |
3.81 |
$ |
3.64 |
5% |
$ |
16.60 |
$ |
14.82 |
12% |
||||||||||
Dividends Paid Per Share |
$ |
1.60 |
$ |
1.45 |
10% |
$ |
6.40 |
$ |
5.80 |
10% |
References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis" and to "free cash flow" (computed by subtracting capital expenditures from operating cash flow) refer to non-GAAP financial measures. Adjustments to the most directly comparable GAAP financial measures and other items are presented on the attached reconciliations.
Product Sales Performance
Total product sales increased 8% for the fourth quarter of 2020 versus the fourth quarter of 2019 driven by 13% volume growth, partially offset by lower net selling price. Product sales increased 9% for the full year driven by 15% volume growth, partially offset by lower net selling price. Full-year product sales in the
COVID-19 update: During the fourth quarter, physician-patient interactions continued to rebound but remained below pre-COVID-19 levels on a portfolio basis. We expect continued COVID-19 impact and quarter-to-quarter variability throughout 2021, with recovery in the latter part of the year contingent upon the speed and effectiveness of the global vaccination rollout. Recall, Q1 2020 also benefited from
Results for individual products are as follows:
* We expect Aimovig, Otezla and Enbrel to follow the historic pattern of lower Q1 sales relative to subsequent quarters due to the impact of benefit plan changes, insurance reverification and increased co-pay expenses as
Product Sales Detail by Product and
$Millions, except percentages |
Q4 '20 |
Q4 '19 |
YOY Δ |
|||||||||||||||
US |
ROW |
TOTAL |
TOTAL |
TOTAL |
||||||||||||||
Prolia® |
$ |
489 |
$ |
260 |
$ |
749 |
$ |
752 |
—% |
|||||||||
EVENITY® |
60 |
30 |
90 |
85 |
6% |
|||||||||||||
Repatha® |
128 |
125 |
253 |
200 |
27% |
|||||||||||||
Aimovig® |
104 |
— |
104 |
98 |
6% |
|||||||||||||
Parsabiv® |
143 |
29 |
172 |
179 |
(4%) |
|||||||||||||
Otezla® |
510 |
107 |
617 |
178 |
* |
|||||||||||||
Enbrel® |
1,236 |
36 |
1,272 |
1,346 |
(5%) |
|||||||||||||
AMGEVITA™ |
— |
103 |
103 |
71 |
45% |
|||||||||||||
KYPROLIS® |
183 |
89 |
272 |
266 |
2% |
|||||||||||||
XGEVA® |
369 |
133 |
502 |
489 |
3% |
|||||||||||||
Vectibix® |
93 |
128 |
221 |
182 |
21% |
|||||||||||||
Nplate® |
133 |
94 |
227 |
210 |
8% |
|||||||||||||
BLINCYTO® |
64 |
39 |
103 |
80 |
29% |
|||||||||||||
MVASI® |
214 |
66 |
280 |
84 |
* |
|||||||||||||
KANJINTI® |
129 |
29 |
158 |
103 |
53% |
|||||||||||||
Neulasta® |
463 |
73 |
536 |
665 |
(19%) |
|||||||||||||
NEUPOGEN® |
27 |
19 |
46 |
62 |
(26%) |
|||||||||||||
EPOGEN® |
133 |
— |
133 |
210 |
(37%) |
|||||||||||||
Aranesp® |
140 |
235 |
375 |
427 |
(12%) |
|||||||||||||
Sensipar®/Mimpara® |
11 |
34 |
45 |
107 |
(58%) |
|||||||||||||
Other** |
31 |
45 |
76 |
87 |
(13%) |
|||||||||||||
Total product sales |
$ |
4,660 |
$ |
1,674 |
$ |
6,334 |
$ |
5,881 |
8% |
|||||||||
* Change in excess of 100% |
||||||||||||||||||
** Other includes GENSENTA, IMLYGIC®, Corlanor®, Bergamo and AVSOLA® |
$Millions, except percentages |
FY'20 |
FY'19 |
YOY Δ |
|||||||||||||||
US |
ROW |
TOTAL |
TOTAL |
TOTAL |
||||||||||||||
Prolia® |
$ |
1,830 |
$ |
933 |
$ |
2,763 |
$ |
2,672 |
3% |
|||||||||
EVENITY® |
191 |
159 |
350 |
189 |
85% |
|||||||||||||
Repatha® |
459 |
428 |
887 |
661 |
34% |
|||||||||||||
Aimovig® |
378 |
— |
378 |
306 |
24% |
|||||||||||||
Parsabiv® |
605 |
111 |
716 |
630 |
14% |
|||||||||||||
Otezla® |
1,790 |
405 |
2,195 |
178 |
* |
|||||||||||||
Enbrel® |
4,855 |
141 |
4,996 |
5,226 |
(4%) |
|||||||||||||
AMGEVITA™ |
— |
331 |
331 |
215 |
54% |
|||||||||||||
KYPROLIS® |
710 |
355 |
1,065 |
1,044 |
2% |
|||||||||||||
XGEVA® |
1,405 |
494 |
1,899 |
1,935 |
(2%) |
|||||||||||||
Vectibix® |
342 |
469 |
811 |
744 |
9% |
|||||||||||||
Nplate® |
485 |
365 |
850 |
795 |
7% |
|||||||||||||
BLINCYTO® |
231 |
148 |
379 |
312 |
21% |
|||||||||||||
MVASI® |
656 |
142 |
798 |
127 |
* |
|||||||||||||
KANJINTI® |
475 |
92 |
567 |
226 |
* |
|||||||||||||
Neulasta® |
2,001 |
292 |
2,293 |
3,221 |
(29%) |
|||||||||||||
NEUPOGEN® |
144 |
81 |
225 |
264 |
(15%) |
|||||||||||||
EPOGEN® |
598 |
— |
598 |
867 |
(31%) |
|||||||||||||
Aranesp® |
629 |
939 |
1,568 |
1,729 |
(9%) |
|||||||||||||
Sensipar®/Mimpara® |
92 |
196 |
288 |
551 |
(48%) |
|||||||||||||
Other** |
109 |
174 |
283 |
312 |
(9%) |
|||||||||||||
Total product sales |
$ |
17,985 |
$ |
6,255 |
$ |
24,240 |
$ |
22,204 |
9% |
|||||||||
* Change in excess of 100% |
||||||||||||||||||
** Other includes GENSENTA, IMLYGIC®, Corlanor®, Bergamo and AVSOLA® |
Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:
On a non-GAAP basis:
$Millions, except percentages |
GAAP |
Non-GAAP |
||||||||||||||||||
Q4 '20 |
Q4 '19 |
YOY Δ |
Q4 '20 |
Q4 '19 |
YOY Δ |
|||||||||||||||
Cost of Sales |
$ |
1,597 |
$ |
1,253 |
27% |
$ |
959 |
$ |
790 |
21% |
||||||||||
% of product sales |
25.2% |
21.3% |
3.9 pts |
15.1% |
13.4% |
1.7 pts |
||||||||||||||
Research & Development |
$ |
1,229 |
$ |
1,312 |
(6%) |
$ |
1,185 |
$ |
1,285 |
(8%) |
||||||||||
% of product sales |
19.4% |
22.3% |
(2.9) pts |
18.7% |
21.9% |
(3.2) pts |
||||||||||||||
Selling, General & Administrative |
$ |
1,773 |
$ |
1,513 |
17% |
$ |
1,762 |
$ |
1,501 |
17% |
||||||||||
% of product sales |
28.0% |
25.7% |
2.3 pts |
27.8% |
25.5% |
2.3 pts |
||||||||||||||
Other |
$ |
27 |
$ |
71 |
(62%) |
$ |
— |
$ |
— |
—% |
||||||||||
Total Operating Expenses |
$ |
4,626 |
$ |
4,149 |
11% |
$ |
3,906 |
$ |
3,576 |
9% |
||||||||||
Operating Margin |
||||||||||||||||||||
operating income as % of product sales |
31.7% |
34.8% |
(3.1) pts |
43.1% |
44.6% |
(1.5) pts |
||||||||||||||
Tax Rate |
14.0% |
14.1% |
(0.1) pts |
15.4% |
14.9% |
0.5 pts |
||||||||||||||
pts: percentage points |
$Millions, except percentages |
GAAP |
Non-GAAP |
||||||||||||||||||
FY'20 |
FY'19 |
YOY Δ |
FY'20 |
FY'19 |
YOY Δ |
|||||||||||||||
Cost of Sales |
$ |
6,159 |
$ |
4,356 |
41% |
$ |
3,362 |
$ |
3,065 |
10% |
||||||||||
% of product sales |
25.4% |
19.6% |
5.8 pts |
13.9% |
13.8% |
0.1 pts |
||||||||||||||
Research & Development |
$ |
4,207 |
$ |
4,116 |
2% |
$ |
4,085 |
$ |
4,027 |
1% |
||||||||||
% of product sales |
17.4% |
18.5% |
(1.1) pts |
16.9% |
18.1% |
(1.2) pts |
||||||||||||||
Selling, General & Administrative |
$ |
5,730 |
$ |
5,150 |
11% |
$ |
5,643 |
$ |
5,113 |
10% |
||||||||||
% of product sales |
23.6% |
23.2% |
0.4 pts |
23.3% |
23.0% |
0.3 pts |
||||||||||||||
Other |
$ |
189 |
$ |
66 |
* |
$ |
— |
$ |
— |
—% |
||||||||||
Total Operating Expenses |
$ |
16,285 |
$ |
13,688 |
19% |
$ |
13,090 |
$ |
12,205 |
7% |
||||||||||
Operating Margin |
||||||||||||||||||||
operating income as % of product sales |
37.7% |
43.6% |
(5.9) pts |
50.9% |
50.2% |
0.7 pts |
||||||||||||||
Tax Rate |
10.7% |
14.2% |
(3.5) pts |
13.8% |
15.0% |
(1.2) pts |
||||||||||||||
* Change in excess of 100% |
||||||||||||||||||||
pts: percentage points |
Cash Flow and Balance Sheet
$Billions, except shares |
Q4 '20 |
Q4 '19 |
YOY Δ |
FY'20 |
FY'19 |
YOY Δ |
||||||||||||||||||
Operating Cash Flow |
$ |
2.2 |
$ |
2.5 |
$ |
(0.4) |
$ |
10.5 |
$ |
9.2 |
$ |
1.3 |
||||||||||||
Capital Expenditures |
0.2 |
0.2 |
0.0 |
0.6 |
0.6 |
0.0 |
||||||||||||||||||
Free Cash Flow |
2.0 |
2.3 |
(0.3) |
9.9 |
8.5 |
1.4 |
||||||||||||||||||
Dividends Paid |
0.9 |
0.9 |
0.1 |
3.8 |
3.5 |
0.2 |
||||||||||||||||||
Share Repurchases |
1.2 |
1.1 |
0.1 |
3.5 |
7.6 |
(4.1) |
||||||||||||||||||
Average Diluted Shares (millions) |
585 |
598 |
(13) |
590 |
609 |
(19) |
||||||||||||||||||
Note: Numbers may not add due to rounding |
|
|
YOY Δ |
|||||||
Cash and Investments |
10.6 |
8.9 |
1.7 |
||||||
Debt Outstanding |
33.0 |
29.9 |
3.1 |
2021 Guidance
For the full year 2021, the Company expects:
(1) Effective
Fourth Quarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
Sotorasib
Tezepelumab
Otezla
Oncology / Hematology Pipeline
Nplate
IMLYGIC
Aimovig
Repatha
ABP 959 (biosimilar SOLIRIS®)
* Funding and execution of the pivotal study was provided by the
KEYTRUDA is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co. Inc.
Tezepelumab is being developed in collaboration with AstraZeneca
SOLIRIS is a registered trademark of Alexion Pharmaceuticals, Inc.
Non-GAAP Financial Measures
In this news release, management has presented its operating results for the fourth quarters and full years of 2020 and 2019, 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 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 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.
Beginning
About
For more information, visit www.amgen.com and follow us on www.twitter.com/amgen.
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 |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Revenues: |
||||||||||||||||
Product sales |
$ |
6,334 |
$ |
5,881 |
$ |
24,240 |
$ |
22,204 |
||||||||
Other revenues |
300 |
316 |
1,184 |
1,158 |
||||||||||||
Total revenues |
6,634 |
6,197 |
25,424 |
23,362 |
||||||||||||
Operating expenses: |
||||||||||||||||
Cost of sales |
1,597 |
1,253 |
6,159 |
4,356 |
||||||||||||
Research and development |
1,229 |
1,312 |
4,207 |
4,116 |
||||||||||||
Selling, general and administrative |
1,773 |
1,513 |
5,730 |
5,150 |
||||||||||||
Other |
27 |
71 |
189 |
66 |
||||||||||||
Total operating expenses |
4,626 |
4,149 |
16,285 |
13,688 |
||||||||||||
Operating income |
2,008 |
2,048 |
9,139 |
9,674 |
||||||||||||
Interest expense, net |
318 |
301 |
1,262 |
1,289 |
||||||||||||
Interest and other income, net |
187 |
236 |
256 |
753 |
||||||||||||
Income before income taxes |
1,877 |
1,983 |
8,133 |
9,138 |
||||||||||||
Provision for income taxes |
262 |
280 |
869 |
1,296 |
||||||||||||
Net income |
$ |
1,615 |
$ |
1,703 |
$ |
7,264 |
$ |
7,842 |
||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ |
2.78 |
$ |
2.87 |
$ |
12.40 |
$ |
12.96 |
||||||||
Diluted |
$ |
2.76 |
$ |
2.85 |
$ |
12.31 |
$ |
12.88 |
||||||||
Weighted-average shares used in calculation of earnings per share: |
||||||||||||||||
Basic |
581 |
593 |
586 |
605 |
||||||||||||
Diluted |
585 |
598 |
590 |
609 |
|
|||||||
Consolidated Balance Sheets - GAAP |
|||||||
(In millions) |
|||||||
|
|
||||||
2020 |
2019 |
||||||
(Unaudited) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash, cash equivalents and marketable securities |
$ |
10,647 |
$ |
8,911 |
|||
Trade receivables, net |
4,525 |
4,057 |
|||||
Inventories |
3,893 |
3,584 |
|||||
Other current assets |
2,079 |
1,888 |
|||||
Total current assets |
21,144 |
18,440 |
|||||
Property, plant and equipment, net |
4,889 |
4,928 |
|||||
Intangible assets, net |
16,587 |
19,413 |
|||||
|
14,689 |
14,703 |
|||||
Other assets |
5,639 |
2,223 |
|||||
Total assets |
$ |
62,948 |
$ |
59,707 |
|||
Liabilities and Stockholders' Equity |
|||||||
Current liabilities: |
|||||||
Accounts payable and accrued liabilities |
$ |
11,562 |
$ |
9,882 |
|||
Current portion of long-term debt |
91 |
2,953 |
|||||
Total current liabilities |
11,653 |
12,835 |
|||||
Long-term debt |
32,895 |
26,950 |
|||||
Long-term tax liabilities |
6,968 |
8,037 |
|||||
Other noncurrent liabilities |
2,023 |
2,212 |
|||||
Total stockholders' equity |
9,409 |
9,673 |
|||||
Total liabilities and stockholders' equity |
$ |
62,948 |
$ |
59,707 |
|||
Shares outstanding |
578 |
591 |
|
|||||||||||||||
GAAP to Non-GAAP Reconciliations |
|||||||||||||||
(Dollars in millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three months ended |
Twelve months ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
GAAP cost of sales |
$ |
1,597 |
$ |
1,253 |
$ |
6,159 |
$ |
4,356 |
|||||||
Adjustments to cost of sales: |
|||||||||||||||
Acquisition-related expenses (a) |
(638) |
(463) |
(2,797) |
(1,291) |
|||||||||||
Non-GAAP cost of sales |
$ |
959 |
$ |
790 |
$ |
3,362 |
$ |
3,065 |
|||||||
GAAP cost of sales as a percentage of product sales |
25.2 |
% |
21.3 |
% |
25.4 |
% |
19.6 |
% |
|||||||
Acquisition-related expenses (a) |
-10.1 |
-7.9 |
-11.5 |
-5.8 |
|||||||||||
Non-GAAP cost of sales as a percentage of product sales |
15.1 |
% |
13.4 |
% |
13.9 |
% |
13.8 |
% |
|||||||
GAAP research and development expenses |
$ |
1,229 |
$ |
1,312 |
$ |
4,207 |
$ |
4,116 |
|||||||
Adjustments to research and development expenses: |
|||||||||||||||
Acquisition-related expenses (a) |
(43) |
(25) |
(120) |
(87) |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
(1) |
(2) |
(2) |
(2) |
|||||||||||
Total adjustments to research and development expenses |
(44) |
(27) |
(122) |
(89) |
|||||||||||
Non-GAAP research and development expenses |
$ |
1,185 |
$ |
1,285 |
$ |
4,085 |
$ |
4,027 |
|||||||
GAAP research and development expenses as a percentage of product sales |
19.4 |
% |
22.3 |
% |
17.4 |
% |
18.5 |
% |
|||||||
Acquisition-related expenses (a) |
-0.7 |
-0.4 |
-0.5 |
-0.4 |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
0.0 |
0.0 |
0.0 |
0.0 |
|||||||||||
Non-GAAP research and development expenses as a percentage of product sales |
18.7 |
% |
21.9 |
% |
16.9 |
% |
18.1 |
% |
|||||||
GAAP selling, general and administrative expenses |
$ |
1,773 |
$ |
1,513 |
$ |
5,730 |
$ |
5,150 |
|||||||
Adjustments to selling, general and administrative expenses: |
|||||||||||||||
Acquisition-related expenses (a) |
(11) |
(12) |
(85) |
(38) |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
— |
— |
— |
1 |
|||||||||||
Other |
— |
— |
(2) |
— |
|||||||||||
Total adjustments to selling, general and administrative expenses |
(11) |
(12) |
(87) |
(37) |
|||||||||||
Non-GAAP selling, general and administrative expenses |
$ |
1,762 |
$ |
1,501 |
$ |
5,643 |
$ |
5,113 |
|||||||
GAAP selling, general and administrative expenses as a percentage of product sales |
28.0 |
% |
25.7 |
% |
23.6 |
% |
23.2 |
% |
|||||||
Acquisition-related expenses (a) |
-0.2 |
-0.2 |
-0.3 |
-0.2 |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
0.0 |
0.0 |
0.0 |
0.0 |
|||||||||||
Other |
0.0 |
0.0 |
0.0 |
0.0 |
|||||||||||
Non-GAAP selling, general and administrative expenses as a percentage of product sales |
27.8 |
% |
25.5 |
% |
23.3 |
% |
23.0 |
% |
|||||||
GAAP operating expenses |
$ |
4,626 |
$ |
4,149 |
$ |
16,285 |
$ |
13,688 |
|||||||
Adjustments to operating expenses: |
|||||||||||||||
Adjustments to cost of sales |
(638) |
(463) |
(2,797) |
(1,291) |
|||||||||||
Adjustments to research and development expenses |
(44) |
(27) |
(122) |
(89) |
|||||||||||
Adjustments to selling, general and administrative expenses |
(11) |
(12) |
(87) |
(37) |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
1 |
(46) |
5 |
(44) |
|||||||||||
Certain other expenses (b) |
(28) |
(25) |
(194) |
(22) |
|||||||||||
Total adjustments to operating expenses |
(720) |
(573) |
(3,195) |
(1,483) |
|||||||||||
Non-GAAP operating expenses |
$ |
3,906 |
$ |
3,576 |
$ |
13,090 |
$ |
12,205 |
|||||||
GAAP operating income |
$ |
2,008 |
$ |
2,048 |
$ |
9,139 |
$ |
9,674 |
|||||||
Adjustments to operating expenses |
720 |
573 |
3,195 |
1,483 |
|||||||||||
Non-GAAP operating income |
$ |
2,728 |
$ |
2,621 |
$ |
12,334 |
$ |
11,157 |
|||||||
Three months ended |
Twelve months ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
GAAP operating income as a percentage of product sales |
31.7 |
% |
34.8 |
% |
37.7 |
% |
43.6 |
% |
|||||||
Adjustments to cost of sales |
10.1 |
7.9 |
11.5 |
5.8 |
|||||||||||
Adjustments to research and development expenses |
0.7 |
0.4 |
0.5 |
0.4 |
|||||||||||
Adjustments to selling, general and administrative expenses |
0.2 |
0.2 |
0.4 |
0.2 |
|||||||||||
Certain net charges pursuant to our restructuring initiatives |
0.0 |
0.8 |
0.0 |
0.2 |
|||||||||||
Certain other expenses (b) |
0.4 |
0.5 |
0.8 |
0.0 |
|||||||||||
Non-GAAP operating income as a percentage of product sales |
43.1 |
% |
44.6 |
% |
50.9 |
% |
50.2 |
% |
|||||||
GAAP interest and other income, net |
$ |
187 |
$ |
236 |
$ |
256 |
$ |
753 |
|||||||
Adjustments to interest and other income, net (c) |
37 |
— |
37 |
— |
|||||||||||
Non-GAAP interest and other income, net |
$ |
224 |
$ |
236 |
$ |
293 |
$ |
753 |
|||||||
GAAP income before income taxes |
$ |
1,877 |
$ |
1,983 |
$ |
8,133 |
$ |
9,138 |
|||||||
Adjustments to operating expenses |
720 |
573 |
3,195 |
1,483 |
|||||||||||
Adjustments to interest and other income, net |
37 |
— |
37 |
— |
|||||||||||
Non-GAAP income before income taxes |
$ |
2,634 |
$ |
2,556 |
$ |
11,365 |
$ |
10,621 |
|||||||
GAAP provision for income taxes |
$ |
262 |
$ |
280 |
$ |
869 |
$ |
1,296 |
|||||||
Adjustments to provision for income taxes: |
|||||||||||||||
Income tax effect of the above adjustments (d) |
139 |
99 |
634 |
329 |
|||||||||||
Other income tax adjustments (e) |
4 |
3 |
67 |
(32) |
|||||||||||
Total adjustments to provision for income taxes |
143 |
102 |
701 |
297 |
|||||||||||
Non-GAAP provision for income taxes |
$ |
405 |
$ |
382 |
$ |
1,570 |
$ |
1,593 |
|||||||
GAAP tax as a percentage of income before taxes |
14.0 |
% |
14.1 |
% |
10.7 |
% |
14.2 |
% |
|||||||
Adjustments to provision for income taxes: |
|||||||||||||||
Income tax effect of the above adjustments (d) |
1.3 |
0.7 |
2.5 |
1.1 |
|||||||||||
Other income tax adjustments (e) |
0.1 |
0.1 |
0.6 |
-0.3 |
|||||||||||
Total adjustments to provision for income taxes |
1.4 |
0.8 |
3.1 |
0.8 |
|||||||||||
Non-GAAP tax as a percentage of income before taxes |
15.4 |
% |
14.9 |
% |
13.8 |
% |
15.0 |
% |
|||||||
GAAP net income |
$ |
1,615 |
$ |
1,703 |
$ |
7,264 |
$ |
7,842 |
|||||||
Adjustments to net income: |
|||||||||||||||
Adjustments to income before income taxes, net of the income tax effect |
618 |
474 |
2,598 |
1,154 |
|||||||||||
Other income tax adjustments (e) |
(4) |
(3) |
(67) |