Drugmaker Amgen Inc to pay $6 billion to $6.5 billion in taxes over a span of time

Amgen stated the U.S. repatriation tax will impact its current generally accepted accounting principles (GAAP) earnings forecast, but will not have any affect on its non-GAAP forecast.

With U.S. President Donald Trump signing the new tax bill into law on Friday, Amgen Inc stated it expects to pay taxes from $6 billion to $6.5 billion, over a span of time, as it moves to repatriate cash it has accumulated around the globe.

A portion of this amount is also the result of revaluation of its tax liabilities, said the drugmaker in a filing with the Securities and Exchange Commission (SEC).

Significantly, Amgen did not specify the quantum of the $38.9 billion in cash and other holdings it plans on moving back to the U.S.

The new U.S tax law requires a one-time tax repatriation rate of 15.5% for cash and cash-equivalents and 8% for illiquid assets.

Amgen stated its future U.S. income will fall under the 21% tax bracket, while its income in other parts of the world will generally be taxed in the U.S. at 10.5% as they reduced by foreign tax credits.

Significantly, the repatriation tax will impact its current generally accepted accounting principles (GAAP) earnings forecast, but will not have any affect on its non-GAAP forecast.

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