Exhibit 99.2
Amgen Inc.
Reconciliation of "Adjusted" Earnings Per Share Guidance to GAAP
Earnings Per Share Guidance for the Year Ending December 31, 2007
| | | | |
| | | 2007 | |
"Adjusted" earnings per share guidance—excluding stock option expense | | $ | 4.30 | |
| |
Known adjustments to arrive at GAAP earnings: | | | | |
Amortization of acquired intangible assets, product technology rights (1) | | | (0.17 | ) |
Stock option expense (2) | | | (0.10 -0.12 | ) |
Amortization of acquired intangible assets, R&D technology rights (3) | | | (0.04 | ) |
Write off of deferred financing and related costs (4) | | | (0.03 | ) |
Write off the cost of a semi-completed manufacturing asset (5) | | | (0.02 | ) |
Other merger-related expenses (6) | | | (0.01 | ) |
| | | | |
GAAP earnings per share guidance | | $ | 3.91 -$3.93 | |
| | | | |
| (1) | To exclude the ongoing, non-cash amortization of acquired product technology rights, primarily ENBREL, related to the Immunex acquisition. The total 2007 non-cash charge is currently estimated to be approximately $296 million, pre-tax. |
| (2) | To exclude the estimated stock option expense associated with Amgen’s adoption of SFAS No. 123R. |
| (3) | To exclude the ongoing, non-cash amortization of the R&D technology intangible assets acquired with the Abgenix and Avidia acquisitions. The non-cash charge for 2007 is currently estimated to be approximately $71 million, pre-tax. |
| (4) | To exclude the pro rata portion of the deferred financing and related costs that were immediately charged to interest expense as a result of certain holders of the convertible notes due in 2032 exercising their March 1, 2007 put option and the related convertible notes being repaid in cash. |
| (5) | To exclude the impact of writing off the cost of a semi-completed manufacturing asset that will not be used due to a change in manufacturing strategy. |
| (6) | To exclude other merger related expenses incurred due to the Tularik, Abgenix and Avidia acquisitions. |
