Amgen 2015 Annual Report Download - page 49
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41
Selected financial information
The following is an overview of our results of operations (in millions, except percentages and per share data):
Year ended
December 31,
Year ended
December 31,
2015 Change 2014
Product sales:
U.S. $ 16,523 12 % $ 14,732
Rest of world (ROW) 4,421 (4)% 4,595
Total product sales 20,944 8 % 19,327
Other revenues 718 (2)% 736
Total revenues $ 21,662 8 % $ 20,063
Operating expenses $ 13,192 (5)% $ 13,872
Operating income $ 8,470 37 % $ 6,191
Net income $ 6,939 35 % $ 5,158
Diluted EPS $ 9.06 35 % $ 6.70
Diluted shares 766 (1)% 770
In the following discussion of changes in product sales, any reference to unit demand growth or decline refers to changes
in the purchases of our products by healthcare providers, such as physicians or their clinics, dialysis centers, hospitals and
pharmacies.
U.S. product sales for 2015 increased across the portfolio except for EPOGEN® and NEUPOGEN®, which declined 9% and
5%, respectively. The U.S. increase was driven primarily by increases in net selling prices. The decrease in ROW product sales
for 2015 reflects unfavorable changes in foreign exchange rates and declines in net selling prices, offset partially by unit demand
growth.
The decrease in operating expenses for 2015 was driven primarily by savings from transformation and process improvement
efforts, higher restructuring charges in the prior year and favorable changes in foreign currency exchange rates, offset partially by
increased support for launch products.
Although changes in foreign currency exchange rates result in increases or decreases in our reported international product
sales, the benefit or detriment that such movements have on our international product sales is offset partially by corresponding
increases or decreases in our international operating expenses and our related foreign currency hedging activities. Our hedging
activities seek to offset the impacts, both positive and negative, that foreign currency exchange rate changes may have on our net
income by hedging our net foreign currency exposure, primarily with respect to product sales denominated in euros. The net impact
from changes in foreign currency exchange rates was not material in 2015, 2014 or 2013.