Years ended December 31, 2017, 2016 and 2015

Growth Rate %age of Revenue

$M FY15 FY16 FY17 FY15-16 FY16-17 FY15 FY16 FY17
Revenues:
Product sales 20944 21892 21795 4.5% (0.4%) 96.7% 95.2% 95.4%
Other revenues 718 1099 1054 53.1% (4.1%) 3.3% 4.8% 4.6%
Total revenues 21662 22991 22849 6.1% (0.6%) 100.0% 100.0% 100.0%
Operating expenses:
Cost of sales 4227 4162 4069 (1.5%) (2.2%) 19.5% 18.1% 17.8%
Research and development 4070 3840 3562 (5.7%) (7.2%) 18.8% 16.7% 15.6%
Selling, general and administrative 4846 5062 4870 4.5% (3.8%) 22.4% 22.0% 21.3%
Other 49 133 375 171.4% 182.0% 0.2% 0.6% 1.6%
Total operating expenses 13192 13197 12876 0.0% (2.4%) 60.9% 57.4% 56.4%
Operating income 8470 9794 9973 15.6% 1.8% 39.1% 42.6% 43.6%
Interest expense, net 1095 1260 1304 15.1% 3.5% 5.1% 5.5% 5.7%
Interest and other income, net 603 629 928 4.3% 47.5% 2.8% 2.7% 4.1%
Income before income taxes 7978 9163 9597 14.9% 4.7% 36.8% 39.9% 42.0%
Provision for income taxes 1039 1441 7618 38.7% 428.7% 4.8% 6.3% 33.3%
Net income 6939 7722 1979 11.3% (74.4%) 32.0% 33.6% 8.7%
Other comprehensive (loss) income, net of reclassification adjustments and taxes:
Foreign currency translation gains (losses) (247) (99) 81 (59.9%) (181.8%) (1.1%) (0.4%) 0.4%
Effective portion of cash flow hedges 7 (15) (288) (314.3%) 1820.0% 0.0% (0.1%) (1.3%)
Net unrealized (losses) gains on available-for-sale securities (241) 122 (6) (150.6%) (104.9%) (1.1%) 0.5% (0.0%)
Other 9 1 5 (88.9%) 400.0% 0.0% 0.0% 0.0%
Other comprehensive (loss) income, net of tax (472) 9 (208) (101.9%) (2411.1%) (2.2%) 0.0% (0.9%)
Comprehensive income 6467 7731 1771 19.5% (77.1%) 29.9% 33.6% 7.8%

Income Statement (pg. F-2 in Amgen 2017’s 10-K)

1. What are total revenues for Amgen for 2017, 2016, & 2015?
The Total Revenues for Amgen for the respective years are as follows:

$M FY15 FY16 FY17

Total revenues 21662 22991 22849

2. What was the growth rate for total revenues from 2016-2017 and 2015-2016?
The growth rates for total revenues from 2016-2017 and 2015-2016 are as follows:

Growth Rate
$M FY15 FY16 FY17 FY15-16 FY16-17
Total revenues 21662 22991 22849 6.1% (0.6%)

3. Describe any differences that you detect over the three-year period 2017-2015.

4. What is R&D for Amgen for 2017, 2016, & 2015?

The R&D for Amgen for the respective years are as follows:

$M FY15 FY16 FY17

Research and development 4070 3840 3562

5. What were the growth rates for R&D for 2016-2017 and 2015-2016?
The growth rates for R&D from 2016-2017 and 2015-2016 are as follows:

Growth Rate
$M FY15 FY16 FY17 FY15-16 FY16-17
Research and development 4070 3840 3562 (5.7%) (7.2%)

6. What was net income (Earnings) for Amgen for 2017, 2016, & 2015?
The net income (Earnings) for Amgen for the respective years are as follows:

$M FY15 FY16 FY17

Net income 6939 7722 1979

7. What was the growth rate in net income for Amgen from 2016-2017 and 2015-2016?
The growth rates for net income from 2016-2017 and 2015-2016 are as follows:

Growth Rate
$M FY15 FY16 FY17 FY15-16 FY16-17
Net income 6939 7722 1979 11.3% (74.4%)

8. Compare and contrast the growth of total revenue with the growth in net income (earnings)?
 Growth Rate
$M FY15 FY16 FY17 FY15-16 FY16-17
Total revenues 21662 22991 22849 6.1% (0.6%)
Net income 6939 7722 1979 11.3% (74.4%)