Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Amgen Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	18,629)	15,529)	14,890)	14,689)	14,703)
Developed-product-technology rights	48,631)	29,028)	25,561)	25,591)	25,575)
Licensing rights	3,865)	3,864)	3,807)	3,743)	3,761)
Marketing-related rights	1,339)	1,326)	1,354)	1,367)	1,382)
R&D technology rights	1,394)	1,378)	1,377)	1,317)	1,273)
Finite-lived intangible assets, gross carrying amount	55,229)	35,596)	32,099)	32,018)	31,991)
Accumulated amortization	(23,806)	(20,525)	(17,987)	(15,461)	(12,632)
Finite-lived intangible assets, net	31,423)	15,071)	14,112)	16,557)	19,359)
IPR&D	1,218)	1,009)	1,070)	30)	54)
Indefinite-lived intangible assets	1,218)	1,009)	1,070)	30)	54)
Other intangible assets, net	32,641)	16,080)	15,182)	16,587)	19,413)
Goodwill and other intangible assets	51,270)	31,609)	30,072)	31,276)	34,116)

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
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Amgen Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Other intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Amgen Inc. other intangible assets, net increased from 2021 to 2022 and from 2022 to 2023.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Amgen Inc. goodwill and other intangible assets increased from 2021 to 2022 and from 2022 to 2023.

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 Assets
Total assets (as reported)	97,154)	65,121)	61,165)	62,948)	59,707)
Less: Goodwill	18,629)	15,529)	14,890)	14,689)	14,703)
Total assets (adjusted)	78,525)	49,592)	46,275)	48,259)	45,004)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	6,232)	3,661)	6,700)	9,409)	9,673)
Less: Goodwill	18,629)	15,529)	14,890)	14,689)	14,703)
Stockholders’ equity (adjusted)	(12,397)	(11,868)	(8,190)	(5,280)	(5,030)

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
Total Asset Turnover
Reported total asset turnover	0.28	0.38	0.40	0.39	0.37
Adjusted total asset turnover	0.34	0.50	0.53	0.50	0.49
Financial Leverage
Reported financial leverage	15.59	17.79	9.13	6.69	6.17
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	107.78%	178.97%	87.96%	77.20%	81.07%
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	6.91%	10.06%	9.63%	11.54%	13.13%
Adjusted ROA	8.55%	13.21%	12.73%	15.05%	17.43%

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 total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Amgen Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Amgen Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly 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)
Product sales	26,910)	24,801)	24,297)	24,240)	22,204)
Total assets	97,154)	65,121)	61,165)	62,948)	59,707)
Activity Ratio
Total asset turnover¹	0.28	0.38	0.40	0.39	0.37
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Product sales	26,910)	24,801)	24,297)	24,240)	22,204)
Adjusted total assets	78,525)	49,592)	46,275)	48,259)	45,004)
Activity Ratio
Adjusted total asset turnover²	0.34	0.50	0.53	0.50	0.49

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 Total asset turnover = Product sales ÷ Total assets
= 26,910 ÷ 97,154 = 0.28

² Adjusted total asset turnover = Product sales ÷ Adjusted total assets
= 26,910 ÷ 78,525 = 0.34

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Amgen Inc. adjusted total asset turnover 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 Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	78,525)	49,592)	46,275)	48,259)	45,004)
Adjusted stockholders’ equity	(12,397)	(11,868)	(8,190)	(5,280)	(5,030)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

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 = Adjusted total assets ÷ Adjusted stockholders’ equity
= 78,525 ÷ -12,397 = —

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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)
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 Goodwill
Selected Financial Data (US$ in millions)
Net income	6,717)	6,552)	5,893)	7,264)	7,842)
Adjusted stockholders’ equity	(12,397)	(11,868)	(8,190)	(5,280)	(5,030)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

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 × Net income ÷ Adjusted stockholders’ equity
= 100 × 6,717 ÷ -12,397 = —

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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)
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 Goodwill
Selected Financial Data (US$ in millions)
Net income	6,717)	6,552)	5,893)	7,264)	7,842)
Adjusted total assets	78,525)	49,592)	46,275)	48,259)	45,004)
Profitability Ratio
Adjusted ROA²	8.55%	13.21%	12.73%	15.05%	17.43%

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 × Net income ÷ Adjusted total assets
= 100 × 6,717 ÷ 78,525 = 8.55%

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

Amgen Inc. (NASDAQ:AMGN)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Amgen Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Amgen Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)