Amgen estimates its U.S. tax bill at over $6 billion as it repatriates cash

An Amgen sign is seen at the company's office in South San Francisco
FILE PHOTO - An Amgen sign is seen at the company's office in South San Francisco, California October 21, 2013. REUTERS/Robert Galbraith/File Photo

December 22, 2017

NEW YORK (Reuters) – Amgen Inc <AMGN.O> said it expects to incur tax expenses of $6 billion to $6.5 billion over time as it repatriates cash it has accumulated around the world because of the new U.S. tax law signed by President Donald Trump on Friday.

Some of the expense is also due to the revaluation of its tax liabilities, the drugmaker said in a filing with the Securities and Exchange Commission.

Amgen did not say how much of its $38.9 billion in cash and other holdings it plans to move back to the United States. To encourage U.S. companies to bring home the more than $2.6 trillion now held overseas, the law sets a one-time tax repatriation rate of 15.5 percent for cash and cash-equivalents and 8 percent for illiquid assets.

Amgen said its future U.S. income generally will be taxed at the 21 percent U.S. corporate income tax rate, while its income elsewhere will generally be taxed in the United States at 10.5 percent, reduced by foreign tax credits.

It said the tax expenses from moving its cash back to the United States will affect its current generally accepted accounting principles (GAAP) earnings forecast, but will not affect its non-GAAP forecast.

(Reporting by Michael Erman; Editing by Lisa Shumaker)

  • pgroup

    I think it should be 8% no matter what type of assets they have, or how much those assets are worth.

  • GUSSUK

    So what did this news do to their stock price?

  • Al Lejdly

    Concocted News Network headline: “Trump’s Tax Bill Causes Massive Layoffs in Other Countries, Hurts Their Economies”.

  • iwontell

    Well guess we all should let the MORONS SCHUMER, PELOSI and the rest of the SWAMP PEOPLE
    know how IGNORANT they really are.
    Of course better yet would be “cement shoes” in the Potomac…….it’s closer than the old days in the Hudson and a good start at a “housecleaning” of the SWAMP

  • Localdude

    Another fact based, evidentiary piece of data – proving that Bush and Obama were in fact – Dumb & Dumberer…

    • iwontell

      The LATTER was beyond Dumber but not sure what the word is……..MORON, IDIOT, FOOL or?
      Maybe the description isn’t in the Dictionary yet.

      • Al Lejdly

        It’s not.

  • landy fincannon

    Seems i recall reading a few years back where GE made over a billion dollars and paid zero taxes.
    Yes, just checked. In 2011 GE made 14 billion in profits and paid zero in taxes. After filing a whooping 57.000 page tax return.

    It has been about the corporations.

    • Wanda

      Now, check out the relationship GE had with Obama and you will have an example of how crony capitalism works.

  • landy fincannon

    May I suggest looking on the Council on Foreign Relations roster, for the CEO’s or on their corporate membership roster.

  • james pence

    Remember the Amgen Nancy Pelosi scandal?

    • Andrew Moore8

      No but I am going to go look it up now.

      • james pence

        It is written by Ray Robison . I got on kindle.

  • Theo Stall

    SO—think about the math for a minute—

    IF they’re paying $6 Billion in taxes..imagine how much they MADE!! CLose to a $TRILLION!
    ANd thats just one COmpany!!
    ANd imagine now, how much other companies have overseas!!!!
    Trump may be bringing back to America 2-4 $TRILLION DOLLARS!!

    • TwigaBob

      The article states $38.9 billion in foreign assets. Bringing all of that back in cash would give them about $6 billion in taxes.

    • Wanda

      Better here than over there.

    • Al Lejdly

      If the swamp will get out of his way he will bring back far more than that. I’m waiting for “We don’t need no stinkin’ China!”.

  • Tillytalks

    Hummm…guess the MSM will try to avoid discussing why Amgen is even considering such a move…why would a company want to incur such a big tax bill…duh..the lower, more competitive corporate tax rate will and is actually bringing companies, thus jobs, back to the US. Somehow MSM will say this is a failure.

    • iwontell

      Failure?
      Do you mean MSM, CNN, NBC, ABC, CBS, etc etc……..phooey the list is too long to write.

    • Al Lejdly

      The MSM will say it is unfair to and hurting the other countries.

      • Tillytalks

        Of course they will. 😂

  • notwar

    Americans win and Democrats will whine.

    • Andrew Moore8

      Any time the American working class wins and the welfare state loses the demoncraps always whine.

    • iwontell

      Suppose Schumer, Pelosi, and others will HAVE A HEART ATTACK when they see this?
      Guess we can only hope.

  • WaterIsWet

    I wonder if CNN or MSNBC will mention this. Hmm……

    • Beachguy53

      Wouldn’t hold my breath.

      • Theo Stall

        IF they’re paying $6 Billion in taxes..imagine how much they MADE!! CLose to a $TRILLION!
        ANd imagine now, how much other companies have overseas!!!!
        Trump may be bringing back to America 2-4 $TRILLION DOLLARS!!

        • Rock Cabin

          It says “Amgen did not say how much of its $38.9 billion in cash and other holdings” in the article and if you do the math (39 x 15.5%) you get $6B. You are right that this is just one company. Apple has over $300B overseas and there are lots of companies we’ve never heard of that will want to put there money to work in the USA. MAGA!

          • iwontell

            I’ll say this again………..don’t let MORONS SCHUMER, PELOSI etc etc etc know……they will spend the next year still trying to CON AMERICA again.

          • Scott Snerd

            apple is one of those really BAD companies that just LOOKS good….their profit is HUUUUUUUGE and they have VERY few USA jobs, over all.
            I will NEVER buy or use ANYTHING ‘apple’. no fu cking way.

          • Osama0bama

            crApple products are WAY overrated anyway. They’ve been lapped by Samsung and Microsoft (Surface Pro and other products) and other competitors years ago. They profit off of all of the little fan-boys/girls that are mostly too stupid to figure out how to turn on a phone or a computer. Underpowered, overpriced, locked down proprietary crap.

        • iwontell

          Careful…….don’t let the cat out of the bag…….you get the MORONS PELOSI AND SCHUMER all upset……..and trying to CON the American People again.

        • Dan Taylor

          No, it’s under $40,000,000,000. Still a lot, but not near a trillion…

    • HarryObrian

      It’s barely a week or two of EBT card funding for the gov.

      • marcthepig

        Know how to starve an Obama supporter?
        Hide their EBT card under a pair of work boots.

        • iwontell

          Yeah and take their free phones so they can’t tie up the phone lines complaining.