Amgen Inc. expects to incur net tax expense of between $6 billion and $6.5 billion due to the U.S. tax bill that was just signed into law.
The net tax expense is related to the repatriation tax and the revaluation of net deferred tax liabilities. This charge will impact the company's previously provided GAAP EPS and tax rate guidance for 2017 but will not affect its non-GAAP guidance.
Going forward, Amgen does not expect an increase in its non-GAAP tax rates as a result of the legislation.
Due to the legislation, Amgen's future U.S. income generally will be taxed at the 21% U.S. corporate income tax rate, while its income elsewhere, including Puerto Rico, will generally be taxed in the U.S. at 10.5%, reduced by foreign tax credits.
The drugmaker will provide an update to its GAAP tax expense associated with the tax law in its fourth-quarter 2017 earnings call on or about Feb. 1, 2018.