Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
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, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Federal	965)	1,524)	1,721)	865)	921)
State	33)	43)	44)	18)	34)
Foreign	759)	786)	304)	359)	277)
Current provision	1,757)	2,353)	2,069)	1,242)	1,232)
Federal	(860)	(1,124)	(1,185)	(308)	(321)
State	(18)	(25)	(27)	(9)	9)
Foreign	(360)	(66)	(63)	(117)	(51)
Deferred benefit	(1,238)	(1,215)	(1,275)	(434)	(363)
Provision for income taxes	519)	1,138)	794)	808)	869)

Based on: 10-K (reporting date: 2024-12-31), 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).

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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 2022 to 2023 but then decreased significantly from 2023 to 2024.
Deferred benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Amgen Inc. deferred benefit increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
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 increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

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

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Foreign earnings	-5.80%	-5.10%	-5.60%	-7.80%	-4.70%
Foreign-derived intangible income	-3.00%	-1.30%	-1.30%	-1.00%	-0.70%
Credits, Puerto Rico excise tax	0.00%	0.30%	-2.80%	-3.40%	-2.90%
Interest on uncertain tax positions	4.20%	2.60%	1.90%	1.10%	1.10%
Credits, primarily federal R&D	-5.40%	-3.50%	-2.00%	-2.10%	-1.40%
Acquisition IPR&D	0.00%	0.00%	0.00%	4.90%	0.00%
Audit settlements	0.00%	0.00%	0.00%	0.00%	-1.00%
Other, net	0.30%	0.50%	-0.40%	-0.60%	-0.70%
Effective tax rate	11.30%	14.50%	10.80%	12.10%	10.70%

Based on: 10-K (reporting date: 2024-12-31), 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).

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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 increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Amgen Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
NOL and credit carryforwards	1,352)	1,465)	1,344)	1,065)	794)
Accrued expenses	693)	668)	584)	600)	561)
Capitalized research and development expenses	1,762)	1,333)	515)	—)	—)
Investments	1)	—)	270)	—)	—)
Expenses capitalized for tax	200)	210)	211)	244)	144)
Earnings of foreign subsidiaries	1,496)	1,260)	192)	—)	—)
Stock-based compensation	130)	159)	104)	96)	92)
Other	361)	416)	317)	326)	301)
Deferred income tax assets	5,995)	5,511)	3,537)	2,331)	1,892)
Valuation allowance	(1,019)	(957)	(718)	(663)	(571)
Net deferred income tax assets	4,976)	4,554)	2,819)	1,668)	1,321)
Acquired intangible assets	(2,573)	(3,028)	(1,238)	(824)	(903)
Debt	(264)	(268)	(272)	(275)	(282)
Fixed assets	(143)	(140)	(112)	(129)	(148)
Fair value of acquired inventory	(114)	(349)	(5)	—)	—)
Investments	—)	(99)	—)	—)	—)
Other	(244)	(224)	(249)	(221)	(189)
Deferred income tax liabilities	(3,338)	(4,108)	(1,876)	(1,449)	(1,522)
Deferred income taxes, net	1,638)	446)	943)	219)	(201)

Based on: 10-K (reporting date: 2024-12-31), 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).

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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 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
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 decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Amgen Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred income tax assets	3,254)	2,800)	954)	219)	—)
	Deferred income tax liabilities	1,616)	2,354)	11)	—)	201)

Based on: 10-K (reporting date: 2024-12-31), 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).

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Item	Description	The company
Deferred income tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Amgen Inc. deferred income tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred income tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Amgen Inc. deferred income tax liabilities increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Amgen Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	91,839)	97,154)	65,121)	61,165)	62,948)
Less: Noncurrent deferred tax assets, net	3,254)	2,800)	954)	219)	—)
Total assets (adjusted)	88,585)	94,354)	64,167)	60,946)	62,948)
Adjustment to Total Liabilities
Total liabilities (as reported)	85,962)	90,922)	61,460)	54,465)	53,539)
Less: Noncurrent deferred tax liabilities, net	1,616)	2,354)	11)	—)	201)
Total liabilities (adjusted)	84,346)	88,568)	61,449)	54,465)	53,338)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	5,877)	6,232)	3,661)	6,700)	9,409)
Less: Net deferred tax assets (liabilities)	1,638)	446)	943)	219)	(201)
Stockholders’ equity (adjusted)	4,239)	5,786)	2,718)	6,481)	9,610)
Adjustment to Net Income
Net income (as reported)	4,090)	6,717)	6,552)	5,893)	7,264)
Add: Deferred income tax expense (benefit)	(1,238)	(1,215)	(1,275)	(434)	(363)
Net income (adjusted)	2,852)	5,502)	5,277)	5,459)	6,901)

Based on: 10-K (reporting date: 2024-12-31), 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).

Amgen Inc., Financial Data: Reported vs. Adjusted

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Amgen Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	12.77%	24.96%	26.42%	24.25%	29.97%
Adjusted net profit margin	8.91%	20.45%	21.28%	22.47%	28.47%
Total Asset Turnover
Reported total asset turnover	0.35	0.28	0.38	0.40	0.39
Adjusted total asset turnover	0.36	0.29	0.39	0.40	0.39
Financial Leverage
Reported financial leverage	15.63	15.59	17.79	9.13	6.69
Adjusted financial leverage	20.90	16.31	23.61	9.40	6.55
Return on Equity (ROE)
Reported ROE	69.59%	107.78%	178.97%	87.96%	77.20%
Adjusted ROE	67.28%	95.09%	194.15%	84.23%	71.81%
Return on Assets (ROA)
Reported ROA	4.45%	6.91%	10.06%	9.63%	11.54%
Adjusted ROA	3.22%	5.83%	8.22%	8.96%	10.96%

Based on: 10-K (reporting date: 2024-12-31), 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).

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 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
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 decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Amgen Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Amgen Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Amgen Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	4,090)	6,717)	6,552)	5,893)	7,264)
Product sales	32,026)	26,910)	24,801)	24,297)	24,240)
Profitability Ratio
Net profit margin¹	12.77%	24.96%	26.42%	24.25%	29.97%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	2,852)	5,502)	5,277)	5,459)	6,901)
Product sales	32,026)	26,910)	24,801)	24,297)	24,240)
Profitability Ratio
Adjusted net profit margin²	8.91%	20.45%	21.28%	22.47%	28.47%

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Product sales
= 100 × 4,090 ÷ 32,026 = 12.77%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Product sales
= 100 × 2,852 ÷ 32,026 = 8.91%

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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 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Product sales	32,026)	26,910)	24,801)	24,297)	24,240)
Total assets	91,839)	97,154)	65,121)	61,165)	62,948)
Activity Ratio
Total asset turnover¹	0.35	0.28	0.38	0.40	0.39
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Product sales	32,026)	26,910)	24,801)	24,297)	24,240)
Adjusted total assets	88,585)	94,354)	64,167)	60,946)	62,948)
Activity Ratio
Adjusted total asset turnover²	0.36	0.29	0.39	0.40	0.39

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

¹ Total asset turnover = Product sales ÷ Total assets
= 32,026 ÷ 91,839 = 0.35

² Adjusted total asset turnover = Product sales ÷ Adjusted total assets
= 32,026 ÷ 88,585 = 0.36

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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 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	91,839)	97,154)	65,121)	61,165)	62,948)
Stockholders’ equity	5,877)	6,232)	3,661)	6,700)	9,409)
Solvency Ratio
Financial leverage¹	15.63	15.59	17.79	9.13	6.69
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	88,585)	94,354)	64,167)	60,946)	62,948)
Adjusted stockholders’ equity	4,239)	5,786)	2,718)	6,481)	9,610)
Solvency Ratio
Adjusted financial leverage²	20.90	16.31	23.61	9.40	6.55

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 91,839 ÷ 5,877 = 15.63

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 88,585 ÷ 4,239 = 20.90

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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 decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	4,090)	6,717)	6,552)	5,893)	7,264)
Stockholders’ equity	5,877)	6,232)	3,661)	6,700)	9,409)
Profitability Ratio
ROE¹	69.59%	107.78%	178.97%	87.96%	77.20%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	2,852)	5,502)	5,277)	5,459)	6,901)
Adjusted stockholders’ equity	4,239)	5,786)	2,718)	6,481)	9,610)
Profitability Ratio
Adjusted ROE²	67.28%	95.09%	194.15%	84.23%	71.81%

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,090 ÷ 5,877 = 69.59%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 2,852 ÷ 4,239 = 67.28%

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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 deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	4,090)	6,717)	6,552)	5,893)	7,264)
Total assets	91,839)	97,154)	65,121)	61,165)	62,948)
Profitability Ratio
ROA¹	4.45%	6.91%	10.06%	9.63%	11.54%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	2,852)	5,502)	5,277)	5,459)	6,901)
Adjusted total assets	88,585)	94,354)	64,167)	60,946)	62,948)
Profitability Ratio
Adjusted ROA²	3.22%	5.83%	8.22%	8.96%	10.96%

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 4,090 ÷ 91,839 = 4.45%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,852 ÷ 88,585 = 3.22%

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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 2022 to 2023 and from 2023 to 2024.

Amgen Inc. (NASDAQ:AMGN)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

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 Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)