Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Amgen Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	1,524)	1,721)	865)	921)	1,284)
State	43)	44)	18)	34)	39)
Foreign	786)	304)	359)	277)	277)
Current provision	2,353)	2,069)	1,242)	1,232)	1,600)
Federal	(1,124)	(1,185)	(308)	(321)	(276)
State	(25)	(27)	(9)	9)	(22)
Foreign	(66)	(63)	(117)	(51)	(6)
Deferred benefit	(1,215)	(1,275)	(434)	(363)	(304)
Provision for income taxes	1,138)	794)	808)	869)	1,296)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Amgen Inc. current provision increased from 2021 to 2022 and from 2022 to 2023.
Deferred benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Amgen Inc. deferred benefit decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Amgen Inc. provision for income taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Amgen Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Foreign earnings	-5.10%	-5.60%	-7.80%	-4.70%	-4.50%
Foreign-derived intangible income	-1.30%	-1.30%	-1.00%	-0.70%	-0.70%
Credits, Puerto Rico excise tax	0.30%	-2.80%	-3.40%	-2.90%	-2.60%
Interest on uncertain tax positions	2.60%	1.90%	1.10%	1.10%	1.60%
Credits, primarily federal R&D	-3.50%	-2.00%	-2.10%	-1.40%	-1.00%
Acquisition IPR&D	0.00%	0.00%	4.90%	0.00%	0.00%
Audit settlements	0.00%	0.00%	0.00%	-1.00%	0.00%
Other, net	0.50%	-0.40%	-0.60%	-0.70%	0.40%
Effective tax rate	14.50%	10.80%	12.10%	10.70%	14.20%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Amgen Inc. effective tax rate decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Amgen Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
NOL and credit carryforwards	1,465)	1,344)	1,065)	794)	800)
Accrued expenses	668)	584)	600)	561)	457)
Capitalized research and development expenses	1,333)	515)	—)	—)	—)
Investments	—)	270)	—)	—)	—)
Expenses capitalized for tax	210)	211)	244)	144)	170)
Earnings of foreign subsidiaries	1,260)	192)	—)	—)	—)
Stock-based compensation	159)	104)	96)	92)	91)
Other	416)	317)	326)	301)	269)
Deferred income tax assets	5,511)	3,537)	2,331)	1,892)	1,787)
Valuation allowance	(957)	(718)	(663)	(571)	(517)
Net deferred income tax assets	4,554)	2,819)	1,668)	1,321)	1,270)
Acquired intangible assets	(3,028)	(1,238)	(824)	(903)	(1,288)
Debt	(268)	(272)	(275)	(282)	(210)
Fixed assets	(140)	(112)	(129)	(148)	(53)
Fair value of acquired inventory	(349)	(5)	—)	—)	—)
Investments	(99)	—)	—)	—)	—)
Other	(224)	(249)	(221)	(189)	(233)
Deferred income tax liabilities	(4,108)	(1,876)	(1,449)	(1,522)	(1,784)
Deferred income taxes, net	446)	943)	219)	(201)	(514)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred income tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Amgen Inc. deferred income tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred income tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Amgen Inc. net deferred income tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred income taxes, net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Amgen Inc. deferred income taxes, net increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Amgen Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Liabilities
Total liabilities (as reported)	90,922)	61,460)	54,465)	53,539)	50,034)
Less: Noncurrent deferred tax liabilities, net	2,354)	11)	—)	—)	—)
Total liabilities (adjusted)	88,568)	61,449)	54,465)	53,539)	50,034)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	6,232)	3,661)	6,700)	9,409)	9,673)
Less: Net deferred tax assets (liabilities)	446)	943)	219)	(201)	(514)
Stockholders’ equity (adjusted)	5,786)	2,718)	6,481)	9,610)	10,187)
Adjustment to Net Income
Net income (as reported)	6,717)	6,552)	5,893)	7,264)	7,842)
Add: Deferred income tax expense (benefit)	(1,215)	(1,275)	(434)	(363)	(304)
Net income (adjusted)	5,502)	5,277)	5,459)	6,901)	7,538)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Amgen Inc., Financial Data: Reported vs. Adjusted

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Amgen Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	24.96%	26.42%	24.25%	29.97%	35.32%
Adjusted net profit margin	20.45%	21.28%	22.47%	28.47%	33.95%
Financial Leverage
Reported financial leverage	15.59	17.79	9.13	6.69	6.17
Adjusted financial leverage	16.79	23.96	9.44	6.55	5.86
Return on Equity (ROE)
Reported ROE	107.78%	178.97%	87.96%	77.20%	81.07%
Adjusted ROE	95.09%	194.15%	84.23%	71.81%	74.00%
Return on Assets (ROA)
Reported ROA	6.91%	10.06%	9.63%	11.54%	13.13%
Adjusted ROA	5.66%	8.10%	8.93%	10.96%	12.62%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Amgen Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Amgen Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Amgen Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Amgen Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Amgen Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,717)	6,552)	5,893)	7,264)	7,842)
Product sales	26,910)	24,801)	24,297)	24,240)	22,204)
Profitability Ratio
Net profit margin¹	24.96%	26.42%	24.25%	29.97%	35.32%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	5,502)	5,277)	5,459)	6,901)	7,538)
Product sales	26,910)	24,801)	24,297)	24,240)	22,204)
Profitability Ratio
Adjusted net profit margin²	20.45%	21.28%	22.47%	28.47%	33.95%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Product sales
= 100 × 6,717 ÷ 26,910 = 24.96%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Product sales
= 100 × 5,502 ÷ 26,910 = 20.45%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Amgen Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	97,154)	65,121)	61,165)	62,948)	59,707)
Stockholders’ equity	6,232)	3,661)	6,700)	9,409)	9,673)
Solvency Ratio
Financial leverage¹	15.59	17.79	9.13	6.69	6.17
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets	97,154)	65,121)	61,165)	62,948)	59,707)
Adjusted stockholders’ equity	5,786)	2,718)	6,481)	9,610)	10,187)
Solvency Ratio
Adjusted financial leverage²	16.79	23.96	9.44	6.55	5.86

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 97,154 ÷ 6,232 = 15.59

² Adjusted financial leverage = Total assets ÷ Adjusted stockholders’ equity
= 97,154 ÷ 5,786 = 16.79

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Amgen Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,717)	6,552)	5,893)	7,264)	7,842)
Stockholders’ equity	6,232)	3,661)	6,700)	9,409)	9,673)
Profitability Ratio
ROE¹	107.78%	178.97%	87.96%	77.20%	81.07%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	5,502)	5,277)	5,459)	6,901)	7,538)
Adjusted stockholders’ equity	5,786)	2,718)	6,481)	9,610)	10,187)
Profitability Ratio
Adjusted ROE²	95.09%	194.15%	84.23%	71.81%	74.00%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 6,717 ÷ 6,232 = 107.78%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 5,502 ÷ 5,786 = 95.09%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Amgen Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,717)	6,552)	5,893)	7,264)	7,842)
Total assets	97,154)	65,121)	61,165)	62,948)	59,707)
Profitability Ratio
ROA¹	6.91%	10.06%	9.63%	11.54%	13.13%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	5,502)	5,277)	5,459)	6,901)	7,538)
Total assets	97,154)	65,121)	61,165)	62,948)	59,707)
Profitability Ratio
Adjusted ROA²	5.66%	8.10%	8.93%	10.96%	12.62%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 6,717 ÷ 97,154 = 6.91%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 5,502 ÷ 97,154 = 5.66%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Amgen Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Amgen Inc. (NASDAQ:AMGN)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Amgen Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Amgen Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)