Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-19731 | |
Entity Registrant Name | GILEAD SCIENCES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3047598 | |
Entity Address, Address Line One | 333 Lakeside Drive | |
Entity Address, City or Town | Foster City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94404 | |
City Area Code | 650 | |
Local Phone Number | 574-3000 | |
Title of each class | Common Stock, par value, $0.001 per share | |
Trading Symbol(s) | GILD | |
Name of each exchange on which registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,254,243,845 | |
Entity Central Index Key | 0000882095 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 4,699 | $ 5,338 |
Short-term marketable debt securities | 961 | 1,182 |
Accounts receivable, net | 4,354 | 4,493 |
Inventories | 1,463 | 1,618 |
Prepaid and other current assets | 2,077 | 2,141 |
Total current assets | 13,554 | 14,772 |
Property, plant and equipment, net | 5,349 | 5,121 |
Long-term marketable debt securities | 1,282 | 1,309 |
Intangible assets, net | 29,440 | 33,455 |
Goodwill | 8,314 | 8,332 |
Other long-term assets | 4,618 | 4,963 |
Total assets | 62,557 | 67,952 |
Current liabilities: | ||
Accounts payable | 614 | 705 |
Accrued government and other rebates | 3,674 | 3,244 |
Accrued and other current liabilities | 3,865 | 6,145 |
Current portion of long-term debt and other obligations, net | 2,270 | 1,516 |
Total current liabilities | 10,423 | 11,610 |
Long-term debt, net | 22,953 | 25,179 |
Long-term income taxes payable | 3,982 | 4,767 |
Deferred tax liability | 3,036 | 4,356 |
Other long-term obligations | 1,106 | 976 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.001 per share; 5 shares authorized; none outstanding | 0 | 0 |
Common stock, par value $0.001 per share; 5,600 shares authorized; 1,254 shares issued and outstanding | 1 | 1 |
Additional paid-in capital | 5,226 | 4,661 |
Accumulated other comprehensive income | 98 | 83 |
Retained earnings | 15,756 | 16,324 |
Total Gilead stockholders’ equity | 21,081 | 21,069 |
Noncontrolling interest | (24) | (5) |
Total stockholders’ equity | 21,057 | 21,064 |
Total liabilities and stockholders’ equity | $ 62,557 | $ 67,952 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5 | 5 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 5,600 | 5,600 |
Common stock, issued (in shares) | 1,254 | 1,254 |
Common stock, outstanding (in shares) | 1,254 | 1,254 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Total revenues | $ 7,042 | $ 7,421 | $ 19,892 | $ 20,061 |
Costs and expenses: | ||||
Cost of goods sold | 1,395 | 1,223 | 4,261 | 3,974 |
Research and development expenses | 1,149 | 1,101 | 3,429 | 3,243 |
Acquired in-process research and development expenses | 448 | 65 | 786 | 270 |
In-process research and development impairment | 0 | 0 | 2,700 | 0 |
Selling, general and administrative expenses | 1,213 | 1,190 | 3,653 | 3,596 |
Total costs and expenses | 4,205 | 3,579 | 14,829 | 11,083 |
Income from operations | 2,837 | 3,842 | 5,063 | 8,978 |
Interest expense | (229) | (250) | (709) | (763) |
Other income (expense), net | (176) | (154) | (571) | (696) |
Income before income taxes | 2,432 | 3,438 | 3,783 | 7,519 |
Income tax expense | (646) | (852) | (850) | (1,694) |
Net income | 1,786 | 2,586 | 2,933 | 5,825 |
Net loss attributable to noncontrolling interest | 3 | 6 | 19 | 18 |
Net income attributable to Gilead | $ 1,789 | $ 2,592 | $ 2,952 | $ 5,843 |
Net income per share attributable to Gilead common stockholders - basic (in dollars per share) | $ 1.43 | $ 2.06 | $ 2.35 | $ 4.65 |
Shares used in per share calculation - basic (in shares) | 1,255 | 1,256 | 1,255 | 1,256 |
Net income per share attributable to Gilead common stockholders - diluted (in dollars per share) | $ 1.42 | $ 2.05 | $ 2.34 | $ 4.63 |
Shares used in per share calculation - diluted (in shares) | 1,261 | 1,262 | 1,261 | 1,262 |
Product sales | ||||
Revenues: | ||||
Total revenues | $ 6,978 | $ 7,356 | $ 19,650 | $ 19,848 |
Royalty, contract and other revenues | ||||
Revenues: | ||||
Total revenues | $ 64 | $ 65 | $ 242 | $ 213 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,786 | $ 2,586 | $ 2,933 | $ 5,825 |
Other comprehensive income: | ||||
Net foreign currency translation loss, net of tax | (81) | (20) | (102) | (15) |
Available-for-sale debt securities: | ||||
Net unrealized loss, net of tax | (7) | 0 | (38) | (3) |
Reclassifications to net income, net of tax | 0 | 0 | 1 | 0 |
Net change | (7) | 0 | (37) | (3) |
Cash flow hedges: | ||||
Net unrealized gain, net of tax | 140 | 37 | 254 | 92 |
Reclassifications to net income, net of tax | (41) | 18 | (100) | 60 |
Net change | 99 | 55 | 154 | 152 |
Other comprehensive income | 11 | 35 | 15 | 134 |
Comprehensive income | 1,797 | 2,621 | 2,948 | 5,959 |
Comprehensive loss attributable to noncontrolling interest | 3 | 6 | 19 | 18 |
Comprehensive income attributable to Gilead | $ 1,800 | $ 2,627 | $ 2,967 | $ 5,977 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 1,254 | |||||
Beginning balance at Dec. 31, 2020 | $ 18,221 | $ 1 | $ 3,880 | $ (60) | $ 14,381 | $ 19 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,825 | 5,843 | (18) | |||
Other comprehensive income, net of tax | 134 | 134 | ||||
Issuances under employee stock purchase plan (in shares) | 2 | |||||
Issuances under employee stock purchase plan | 111 | 111 | ||||
Issuance under equity incentive plans (in shares) | 9 | |||||
Issuances under equity incentive plans | 46 | 46 | ||||
Stock-based compensation | 479 | 479 | ||||
Repurchases of common stock (in shares) | (10) | |||||
Repurchases of common stock | (631) | (24) | (607) | |||
Dividends declared | (2,714) | (2,714) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 1,255 | |||||
Ending balance at Sep. 30, 2021 | 21,471 | $ 1 | 4,492 | 74 | 16,903 | 1 |
Beginning balance (in shares) at Jun. 30, 2021 | 1,254 | |||||
Beginning balance at Jun. 30, 2021 | 19,710 | $ 1 | 4,271 | 39 | 15,392 | 7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,586 | 2,592 | (6) | |||
Other comprehensive income, net of tax | 35 | 35 | ||||
Issuances under employee stock purchase plan (in shares) | 1 | |||||
Issuances under employee stock purchase plan | 35 | 35 | ||||
Issuance under equity incentive plans (in shares) | 3 | |||||
Issuances under equity incentive plans | 22 | 22 | ||||
Stock-based compensation | 171 | 171 | ||||
Repurchases of common stock (in shares) | (3) | |||||
Repurchases of common stock | (183) | (7) | (176) | |||
Dividends declared | (905) | (905) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 1,255 | |||||
Ending balance at Sep. 30, 2021 | $ 21,471 | $ 1 | 4,492 | 74 | 16,903 | 1 |
Beginning balance (in shares) at Dec. 31, 2021 | 1,254 | 1,254 | ||||
Beginning balance at Dec. 31, 2021 | $ 21,064 | $ 1 | 4,661 | 83 | 16,324 | (5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,933 | 2,952 | (19) | |||
Other comprehensive income, net of tax | 15 | 15 | ||||
Issuances under employee stock purchase plan (in shares) | 3 | |||||
Issuances under employee stock purchase plan | 103 | 103 | ||||
Issuance under equity incentive plans (in shares) | 9 | |||||
Issuances under equity incentive plans | 30 | 30 | ||||
Stock-based compensation | 465 | 465 | ||||
Repurchases of common stock (in shares) | (12) | |||||
Repurchases of common stock | (756) | (33) | (723) | |||
Dividends declared | $ (2,797) | (2,797) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 1,254 | 1,254 | ||||
Ending balance at Sep. 30, 2022 | $ 21,057 | $ 1 | 5,226 | 98 | 15,756 | (24) |
Beginning balance (in shares) at Jun. 30, 2022 | 1,254 | |||||
Beginning balance at Jun. 30, 2022 | 20,215 | $ 1 | 5,031 | 87 | 15,117 | (21) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,786 | 1,789 | (3) | |||
Other comprehensive income, net of tax | 11 | 11 | ||||
Issuances under employee stock purchase plan (in shares) | 2 | |||||
Issuances under employee stock purchase plan | 30 | 30 | ||||
Issuance under equity incentive plans (in shares) | 2 | |||||
Issuances under equity incentive plans | 6 | 6 | ||||
Stock-based compensation | 170 | 170 | ||||
Repurchases of common stock (in shares) | (4) | |||||
Repurchases of common stock | (228) | (11) | (217) | |||
Dividends declared | $ (933) | (933) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 1,254 | 1,254 | ||||
Ending balance at Sep. 30, 2022 | $ 21,057 | $ 1 | $ 5,226 | $ 98 | $ 15,756 | $ (24) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends declared (in dollars per share) | $ 0.73 | $ 0.71 | $ 2.19 | $ 2.13 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities: | ||
Net income | $ 2,933 | $ 5,825 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 240 | 239 |
Amortization expense | 1,335 | 1,276 |
Stock-based compensation expense | 463 | 476 |
Acquired in-process research and development expenses | 786 | 270 |
In-process research and development impairment | 2,700 | 0 |
Deferred income taxes | (1,214) | 243 |
Net loss from equity securities | 596 | 667 |
Other | 546 | 508 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (125) | 272 |
Inventories | (34) | (24) |
Prepaid expenses and other | 12 | (17) |
Accounts payable | (38) | (242) |
Income taxes payable | (564) | (463) |
Accrued and other liabilities | (1,131) | (851) |
Net cash provided by operating activities | 6,505 | 8,179 |
Investing Activities: | ||
Purchases of marketable debt securities | (1,398) | (2,891) |
Proceeds from sales of marketable debt securities | 370 | 506 |
Proceeds from maturities of marketable debt securities | 1,232 | 1,808 |
Acquisitions, including in-process research and development, net of cash acquired | (1,579) | (1,540) |
Purchases of equity securities | (166) | (332) |
Capital expenditures | (547) | (423) |
Other | (3) | 19 |
Net cash used in investing activities | (2,091) | (2,853) |
Financing Activities: | ||
Proceeds from issuances of common stock | 133 | 157 |
Repurchases of common stock | (604) | (497) |
Repayments of debt and other obligations | (1,500) | (3,750) |
Payments of dividends | (2,794) | (2,711) |
Other | (150) | (134) |
Net cash used in financing activities | (4,915) | (6,935) |
Effect of exchange rate changes on cash and cash equivalents | (138) | (26) |
Net change in cash and cash equivalents | (639) | (1,635) |
Cash and cash equivalents at beginning of period | 5,338 | 5,997 |
Cash and cash equivalents at end of period | $ 4,699 | $ 4,362 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Condensed Consolidated Financial Statements and related Notes to Condensed Consolidated Financial Statements of Gilead Sciences, Inc. (“Gilead,” “we,” “our” or “us”) should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2021, included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. There have been no material changes to our organization or summary of significant accounting policies as disclosed in that filing except for our classification of expenses related to development milestones and other collaboration payments made prior to regulatory approval of a developed product. Beginning in the second quarter of 2022, we reclassified such expenses from Research and development expenses to Acquired in-process research and development expenses in the Condensed Consolidated Statements of Income. Concurrently, we reclassified the cash payments related to these expenses from Other to Acquisitions, including in-process research and development, net of cash acquired within Investing Activities in the Condensed Consolidated Statements of Cash Flows. We believe this presentation assists users of the financial statements to better understand the total costs incurred to acquire in-process research and development (“IPR&D”) projects. Prior periods have been revised to reflect this classification, resulting in a reduction of previously-reported Research and development expenses of $46 million and $93 million for the three and nine months ended September 30, 2021, respectively, and $8 million for the three months ended March 31, 2022. These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and include all adjustments consisting of normal recurring adjustments that the management of Gilead believes are necessary for a fair presentation of the periods presented and are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. Certain amounts and percentages in these Condensed Consolidated Financial Statements and accompanying notes may not sum or recalculate due to rounding. |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenues The following table summarizes our Total revenues: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 (in millions) U.S. Europe Other International Total U.S. Europe Other International Total Product sales: HIV Biktarvy $ 2,286 $ 278 $ 201 $ 2,766 $ 1,875 $ 254 $ 147 $ 2,276 Complera/Eviplera 20 21 3 43 28 31 5 64 Descovy 444 28 28 500 355 42 36 433 Genvoya 502 71 27 600 576 100 68 744 Odefsey 276 86 12 374 275 112 12 399 Stribild 22 7 3 32 28 11 3 42 Truvada 24 3 2 30 55 5 7 67 Revenue share - Symtuza (1) 85 40 4 130 86 41 3 130 Other HIV (2) 1 6 5 12 24 6 4 34 Total HIV 3,661 541 285 4,487 3,302 602 285 4,189 Veklury 336 130 458 925 1,527 109 287 1,923 Hepatitis C virus (“HCV”) Ledipasvir/Sofosbuvir (3) 8 5 12 25 14 5 26 45 Sofosbuvir/Velpatasvir (4) 241 131 84 455 173 77 82 332 Other HCV (5) 34 7 2 44 37 12 3 52 Total HCV 283 143 98 524 224 94 111 429 Hepatitis B virus (“HBV”) / Hepatitis delta virus (“HDV”) Vemlidy 129 9 90 228 103 9 96 208 Viread 2 5 15 22 1 7 18 26 Other HBV/HDV (6) — 13 — 14 — 13 — 13 Total HBV/HDV 131 28 106 264 104 29 114 247 Cell therapy Tecartus 60 20 1 81 35 12 — 47 Yescarta 210 91 16 317 100 66 9 175 Total cell therapy 270 111 17 398 135 78 9 222 Trodelvy 139 38 3 180 100 1 — 101 Other AmBisome 9 63 33 105 7 67 69 143 Letairis 43 — — 43 46 — — 46 Other (7) 28 11 13 52 34 17 5 56 Total other 80 75 46 200 87 84 74 245 Total product sales 4,900 1,064 1,013 6,978 5,479 997 880 7,356 Royalty, contract and other revenues 28 37 — 64 30 34 1 65 Total revenues $ 4,928 $ 1,101 $ 1,013 $ 7,042 $ 5,509 $ 1,031 $ 881 $ 7,421 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 (in millions) U.S. Europe Other International Total U.S. Europe Other International Total Product sales: HIV Biktarvy $ 6,088 $ 807 $ 577 $ 7,472 $ 4,926 $ 707 $ 461 $ 6,094 Complera/Eviplera 56 76 10 142 73 104 12 189 Descovy 1,152 92 91 1,335 994 128 105 1,227 Genvoya 1,441 220 103 1,764 1,633 306 184 2,123 Odefsey 763 278 36 1,077 773 336 39 1,148 Stribild 68 23 7 98 94 33 12 139 Truvada 77 12 13 102 268 18 24 310 Revenue share - Symtuza (1) 251 126 10 388 261 125 8 394 Other HIV (2) 11 20 15 45 110 19 24 153 Total HIV 9,906 1,653 863 12,422 9,132 1,776 869 11,777 Veklury 1,179 560 1,166 2,905 2,763 761 684 4,208 HCV Ledipasvir/Sofosbuvir (3) 27 13 43 83 63 24 76 163 Sofosbuvir/Velpatasvir (4) 629 288 244 1,161 649 234 272 1,155 Other HCV (5) 88 31 7 127 97 64 9 170 Total HCV 745 332 294 1,371 809 322 357 1,488 HBV/HDV Vemlidy 306 27 289 622 266 25 298 589 Viread 4 17 48 69 8 22 55 85 Other HBV/HDV (6) 1 41 — 42 1 29 — 30 Total HBV/HDV 311 85 337 733 275 76 353 704 Cell therapy Tecartus 160 56 2 217 94 25 — 119 Yescarta 528 253 42 823 300 188 25 513 Total cell therapy 688 308 44 1,040 394 213 25 632 Trodelvy 379 98 8 485 261 1 — 262 Other AmBisome 48 192 140 380 32 202 186 420 Letairis 135 — — 135 157 — — 157 Other (7) 91 52 35 178 109 68 23 200 Total other 275 244 174 693 298 270 209 777 Total product sales 13,482 3,281 2,887 19,650 13,932 3,419 2,497 19,848 Royalty, contract and other revenues 140 98 4 242 70 140 3 213 Total revenues $ 13,622 $ 3,378 $ 2,891 $ 19,892 $ 14,002 $ 3,559 $ 2,500 $ 20,061 _______________________________ (1) Represents our revenue from cobicistat (“C”), emtricitabine (“FTC”) and tenofovir alafenamide (“TAF”) in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company (“Janssen”). (2) Includes Atripla, Emtriva and Tybost. (3) Amounts consist of sales of Harvoni and the authorized generic version of Harvoni sold by our separate subsidiary, Asegua Therapeutics LLC. (4) Amounts consist of sales of Epclusa and the authorized generic version of Epclusa sold by our separate subsidiary, Asegua Therapeutics LLC. (5) Includes Vosevi and Sovaldi. (6) Includes Hepcludex and Hepsera. (7) Includes Cayston, Jyseleca, Ranexa and Zydelig. Revenues from Major Customers The following table summarizes revenues from each of our customers who individually accounted for 10% or more of our Total revenues: Three Months Ended Nine Months Ended September 30, September 30, (as a percentage of total revenues) 2022 2021 2022 2021 AmerisourceBergen Corporation 18 % 25 % 17 % 24 % Cardinal Health, Inc. 25 % 22 % 25 % 21 % McKesson Corporation 22 % 21 % 20 % 18 % Revenues Recognized from Performance Obligations Satisfied in Prior Periods The following table summarizes revenues recognized from performance obligations satisfied in prior periods: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Revenue share with Janssen and royalties for licenses of intellectual property $ 192 $ 190 $ 573 $ 625 Changes in estimates $ 207 $ 188 $ 452 $ 661 Contract Balances Our contract assets, which consist of unbilled amounts primarily from arrangements where the licensing of intellectual property is the only or predominant performance obligation, totaled $164 million and $174 million as of September 30, 2022 and December 31, 2021, respectively. Contract liabilities, which generally result from receipt of advance payment before our performance under the contract, were $85 million and $79 million as of September 30, 2022 and December 31, 2021, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows: • Level 1 inputs include quoted prices in active markets for identical assets or liabilities; • Level 2 inputs include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and • Level 3 inputs include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Our Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. Our financial instruments consist primarily of cash and cash equivalents, marketable debt securities, accounts receivable, foreign currency exchange contracts, equity securities, accounts payable and short-term and long-term debt. Cash and cash equivalents, marketable debt securities, certain equity securities and foreign currency exchange contracts are reported at their respective fair values on our Condensed Consolidated Balance Sheets. Equity securities without readily determinable fair values are recorded using the measurement alternative of cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. Short-term and long-term debt are reported at their amortized costs on our Condensed Consolidated Balance Sheets. The remaining financial instruments are reported on our Condensed Consolidated Balance Sheets at amounts that approximate current fair values. The following table summarizes the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy: September 30, 2022 December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Available-for-sale debt securities: U.S. treasury securities $ 448 $ — $ — $ 448 $ 407 $ — $ — $ 407 U.S. government agencies securities — 19 — 19 — 4 — 4 Non-U.S. government securities — 44 — 44 — 50 — 50 Certificates of deposit — 65 — 65 — 249 — 249 Corporate debt securities — 1,367 — 1,367 — 1,363 — 1,363 Residential mortgage and asset-backed securities — 347 — 347 — 424 — 424 Equity securities: Money market funds 3,316 — — 3,316 3,661 — — 3,661 Equity investment in Galapagos NV (“Galapagos”) 703 — — 703 931 — — 931 Equity investment in Arcus Biosciences, Inc. (“Arcus”) 361 — — 361 559 — — 559 Other publicly traded equity securities 205 — — 205 331 — — 331 Deferred compensation plan 208 — — 208 261 — — 261 Foreign currency derivative contracts — 242 — 242 — 80 — 80 Total $ 5,242 $ 2,084 $ — $ 7,325 $ 6,150 $ 2,170 $ — $ 8,320 Liabilities: Liability for MYR GmbH (“MYR”) contingent consideration $ — $ — $ 249 $ 249 $ — $ — $ 317 $ 317 Deferred compensation plan 208 — — 208 261 — — 261 Foreign currency derivative contracts — 2 — 2 — 5 — 5 Total $ 208 $ 2 $ 249 $ 458 $ 261 $ 5 $ 317 $ 583 Level 2 Inputs Available-for-Sale Debt Securities For our available-for-sale debt securities, we estimate the fair values by reviewing trading activity and pricing as of the measurement date, and taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate the fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs. Foreign Currency Derivative Contracts Substantially all of our foreign currency derivative contracts have maturities within an 18-month time horizon and all are with counterparties that have a minimum credit rating of A- or equivalent by S&P Global Ratings, Moody’s Investors Service, Inc. or Fitch Ratings, Inc. We estimate the fair values of these contracts by taking into consideration the valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable, either directly or indirectly. These inputs include foreign currency exchange rates, Secured Overnight Financing Rate and swap rates. These inputs, where applicable, are observable at commonly quoted intervals. Senior Unsecured Notes The total estimated fair values of our senior unsecured notes, determined using Level 2 inputs based on their quoted market values, were approximately $21.2 billion and $28.6 billion as of September 30, 2022 and December 31, 2021, respectively, and the carrying values were $24.1 billion and $25.6 billion as of September 30, 2022 and December 31, 2021, respectively. Level 3 Inputs Contingent Consideration In connection with our first quarter 2021 acquisition of MYR, we recorded a liability for contingent consideration, which is revalued each reporting period until the related contingency is resolved. The contingent consideration was estimated using probability-weighted scenarios for U.S. Food and Drug Administration (“FDA”) approval of Hepcludex. The following table summarizes the change in fair value of our contingent consideration: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Beginning balance $ 306 $ 334 $ 317 $ — Additions — — — 341 Changes in valuation assumptions (30) — (19) — Effect of foreign exchange remeasurement (27) (7) (49) (13) Ending balance $ 249 $ 328 $ 249 $ 328 Changes in valuation assumptions were primarily related to increasing discount rates and updated probability rate estimates. Such changes were included in Research and development expenses on our Condensed Consolidated Statements of Income. Effect of foreign exchange remeasurement was included in Other income (expense), net on our Condensed Consolidated Statements of Income. Liability Related to the Sale of Future Royalties We recorded a liability related to the sale of future royalties as part of our fourth quarter 2020 acquisition of Immunomedics, Inc. (“Immunomedics”), which is subsequently amortized using the effective interest method over the remaining estimated life. The fair values of the liability related to the sale of future royalties were $1.1 billion and $1.3 billion as of September 30, 2022 and December 31, 2021, respectively, and the carrying value was $1.1 billion as of September 30, 2022 and December 31, 2021. See Note 9. Debt and Credit Facilities for additional information. Fair Value Level Transfers There were no transfers between Level 1, Level 2 and Level 3 in the periods presented. Nonrecurring Fair Value Measurements During the nine months ended September 30, 2022, we recorded a partial impairment charge of $2.7 billion related to certain IPR&D assets. See Note 7. Goodwill and Intangible Assets for additional information. |
AVAILABLE-FOR-SALE DEBT SECURIT
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES | AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES Available-for-Sale Debt Securities The following table summarizes our available-for-sale debt securities: September 30, 2022 December 31, 2021 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ 456 $ — $ (7) $ 448 $ 408 $ — $ (1) $ 407 U.S. government agencies securities 19 — — 19 4 — — 4 Non-U.S. government securities 44 — — 44 50 — — 50 Certificates of deposit 65 — — 65 249 — — 249 Corporate debt securities 1,397 — (30) 1,367 1,365 — (2) 1,363 Residential mortgage and asset-backed securities 350 — (3) 347 425 — (1) 424 Total $ 2,331 $ — $ (40) $ 2,290 $ 2,501 $ — $ (4) $ 2,497 The aggregate fair value of investments with unrealized losses was $2.1 billion and $2.0 billion as of September 30, 2022 and December 31, 2021, respectively. No allowance for credit losses was recognized for investments with unrealized losses as of September 30, 2022, as we do not currently intend to sell, and it is not more likely than not that we will be required to sell, such investments before recovery of their amortized cost bases. The unrealized losses were primarily driven by broader change in interest rates with no adverse conditions identified that would prevent the issuer from making scheduled principal and interest payments. The following table summarizes the classification of our available-for-sale debt securities in our Condensed Consolidated Balance Sheets: (in millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 47 $ 6 Short-term marketable debt securities 961 1,182 Long-term marketable debt securities 1,282 1,309 Total $ 2,290 $ 2,497 The following table summarizes our available-for-sale debt securities by contractual maturity: September 30, 2022 (in millions) Amortized Cost Fair Value Within one year $ 1,018 $ 1,008 After one year through five years 1,298 1,268 After five years through ten years 7 7 After ten years 7 7 Total $ 2,331 $ 2,290 Equity Securities Equity Securities Measured at Fair Value The following table summarizes the classification of our equity securities measured at fair value on a recurring basis on our Condensed Consolidated Balance Sheets. Prepaid and other current assets and Other long-term assets include our equity method investments in Arcus and Galapagos, respectively, for which we elected and applied the fair value option as we believe it best reflects the underlying economics of these investments. (in millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 3,316 $ 3,661 Prepaid and other current assets 578 885 Other long-term assets 899 1,197 Total $ 4,793 $ 5,743 Other Equity Securities Equity method investments and other equity investments without readily determinable fair values were $415 million and $338 million as of September 30, 2022 and December 31, 2021, respectively, and were included in Other long-term assets on our Condensed Consolidated Balance Sheets. Unrealized Gains and Losses Net unrealized losses recognized on equity securities were $197 million and $596 million for the three and nine months ended September 30, 2022, and $142 million and $667 million for the three and nine months ended September 30, 2021, respectively, and were included in Other income (expense), net on our Condensed Consolidated Statements of Income. Related Party Transaction During the nine months ended September 30, 2022 and 2021, Gilead donated certain equity securities at fair value to the Gilead Foundation, a California nonprofit public benefit corporation (the “Foundation”). The Foundation is a related party as certain of our officers also serve as directors of the Foundation. The donation expense of $85 million and $212 million was recorded within Selling, general and administrative expenses on our Condensed Consolidated Statements of Income during the nine months ended September 30, 2022 and 2021, respectively. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Our operations in foreign countries expose us to market risk associated with foreign currency exchange rate fluctuations between the U.S. dollar and various foreign currencies, primarily the Euro. To manage this risk, we hedge a portion of our foreign currency exposures related to outstanding monetary assets and liabilities as well as forecasted product sales using foreign currency exchange forward contracts. In general, the market risk related to these contracts is offset by corresponding gains and losses on the hedged transactions. The credit risk associated with these contracts is driven by changes in interest and currency exchange rates and, as a result, varies over time. By working only with major banks and closely monitoring current market conditions, we seek to limit the risk that counterparties to these contracts may be unable to perform. We also seek to limit our risk of loss by entering into contracts that permit net settlement at maturity. Therefore, our overall risk of loss in the event of a counterparty default is limited to the amount of any unrealized gains on outstanding contracts (i.e., those contracts that have a positive fair value) at the date of default. We do not enter into derivative contracts for trading purposes. The derivative instruments we use to hedge our exposures for certain monetary assets and liabilities are not designated as hedges and, as a result, changes in their fair value are recorded in Other income (expense), net on our Condensed Consolidated Statements of Income. The derivative instruments we use to hedge our exposures for forecasted product sales are designated as cash flow hedges and have maturities of 18 months or less. Upon executing a hedging contract and each reporting period thereafter, we assess hedge effectiveness using regression analysis. The unrealized gains or losses on these hedges are recorded in Accumulated other comprehensive income (“AOCI”) and are reclassified into Product sales on our Condensed Consolidated Statements of Income when the respective hedged transactions affect earnings. The majority of gains and losses related to the hedged forecasted transactions reported in AOCI as of September 30, 2022 are expected to be reclassified to Product sales within 12 months. The cash flow effects of our derivative contracts for the nine months ended September 30, 2022 and 2021 were included within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows. We had notional amounts of foreign currency exchange contracts outstanding of $3.0 billion as of September 30, 2022 and $2.9 billion as of December 31, 2021. While all our derivative contracts allow us the right to offset assets and liabilities, we have presented amounts on a gross basis. The following table summarizes the classification and fair values of derivative instruments in our Condensed Consolidated Balance Sheets: September 30, 2022 Derivative Assets Derivative Liabilities (in millions) Classification Fair Value Classification Fair Value Derivatives designated as hedges: Foreign currency exchange contracts Prepaid and other current assets $ 215 Accrued and other current liabilities $ — Foreign currency exchange contracts Other long-term assets 17 Other long-term obligations — Total derivatives designated as hedges 232 — Derivatives not designated as hedges: Foreign currency exchange contracts Prepaid and other current assets 10 Accrued and other current liabilities 2 Total derivatives not designated as hedges 10 2 Total derivatives $ 242 $ 2 December 31, 2021 Derivative Assets Derivative Liabilities (in millions) Classification Fair Value Classification Fair Value Derivatives designated as hedges: Foreign currency exchange contracts Prepaid and other current assets $ 75 Accrued and other current liabilities $ 4 Foreign currency exchange contracts Other long-term assets 5 Other long-term obligations 1 Total derivatives designated as hedges 80 5 Derivatives not designated as hedges: Foreign currency exchange contracts Prepaid and other current assets — Accrued and other current liabilities — Total derivatives not designated as hedges — — Total derivatives $ 80 $ 5 The following table summarizes the effect of our foreign currency exchange contracts on our Condensed Consolidated Financial Statements: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Derivatives designated as hedges: Gains (losses) recognized in AOCI $ 162 $ 42 $ 292 $ 104 Gains (losses) reclassified from AOCI into Product sales $ 48 $ (21) $ 115 $ (69) Derivatives not designated as hedges: Gains (losses) recognized in Other income (expense), net $ 6 $ 5 $ 70 $ 24 From time to time, we may discontinue cash flow hedges and, as a result, record related amounts in Other income (expense), net on our Condensed Consolidated Statements of Income. There were no discontinuances of cash flow hedges for the three and nine months ended September 30, 2022 and 2021. The following table summarizes the potential effect of offsetting our foreign currency exchange contracts on our Condensed Consolidated Balance Sheets: Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets (in millions) Gross Amounts of Assets/Liabilities Presented on the Condensed Consolidated Balance Sheets Derivative Financial Instruments Cash Collateral Received/Pledged Net Amount (Legal Offset) As of September 30, 2022 Derivative assets $ 242 $ (2) $ — $ 240 Derivative liabilities $ 2 $ (2) $ — $ — As of December 31, 2021 Derivative assets $ 80 $ (4) $ — $ 76 Derivative liabilities $ 5 $ (4) $ — $ 1 |
ACQUISITIONS, COLLABORATIONS AN
ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS | ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS We enter into acquisitions, licensing and strategic collaborations and other similar arrangements with third parties for the development and commercialization of certain products and product candidates. The collaborations and other arrangements may involve two or more parties who are active participants in the operating activities of the collaboration and are exposed to significant risks and rewards depending on the commercial success of the activities. These arrangements may include non-refundable upfront payments, expense reimbursements or payments by us for options to acquire certain rights, contingent obligations by us for potential development and regulatory milestone payments and/or sales-based milestone payments, royalty payments, revenue or profit-sharing arrangements, cost-sharing arrangements and equity investments. We also have equity investments in third parties focused on the development and commercialization of products and product candidates. Acquisitions MiroBio On September 20, 2022, we acquired all of the outstanding share capital of MiroBio Ltd. (“MiroBio”), a privately-held U.K.-based biotechnology company focused on restoring immune balance with agonists targeting immune inhibitory receptors, for $414 million in cash. As a result, MiroBio became our wholly-owned subsidiary. We accounted for the transaction as an asset acquisition and recorded a $389 million charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Income during the three months ended September 30, 2022. The remaining purchase price relates to various other assets acquired and liabilities assumed. MYR In the first quarter of 2021, we completed the acquisition of MYR, a German biotechnology company. MYR focuses on the development and commercialization of therapeutics for the treatment of HDV. The acquisition provided Gilead with Hepcludex, which was conditionally approved by the European Medicines Agency (“EMA”) in July 2020 for the treatment of chronic HDV infection in adults with compensated liver disease. MYR is a wholly-owned subsidiary of Gilead. The aggregate consideration for this acquisition of €1.3 billion (or $1.6 billion) primarily consisted of €1.0 billion (or $1.2 billion) paid upon closing and contingent consideration of up to €300 million, subject to customary adjustments, representing a potential future milestone payment upon FDA approval of Hepcludex. The fair value of this contingent liability, estimated using probability-weighted scenarios for FDA approval, was $341 million as of the acquisition date. The fair value of this contingent liability was $249 million as of September 30, 2022 and recorded in Other long-term obligations in our Condensed Consolidated Balance Sheets. See Note 3. Fair Value Measurements for additional information. The acquisition of MYR was accounted for as a business combination using the acquisition method of accounting. The one-year measurement period was completed in the first quarter of 2022, with adjustments recorded to the fair values of assets acquired and liabilities assumed of $18 million. See Note 7. Goodwill and Intangible Assets for additional information. Collaborations and Other Arrangements Dragonfly In April 2022, we entered into a strategic research collaboration agreement (the “Dragonfly Collaboration Agreement”) with Dragonfly Therapeutics, Inc. (“Dragonfly”) to develop natural killer (“NK”) cell engager-based immunotherapies for oncology and inflammation indications. Under the terms of the Dragonfly Collaboration Agreement, we received an exclusive, worldwide license from Dragonfly for the 5T4-targeting investigational immunotherapy program, DF7001, as well as options, after the completion of certain preclinical activities, to license exclusive, worldwide rights to develop and commercialize additional NK cell engager programs using the Dragonfly Tri-specific NK Engager platform. Upon the closing of the Dragonfly Collaboration Agreement, we made a $300 million upfront payment to Dragonfly, and we made an additional $15 million payment related to a target selection in connection with an August 2022 amendment to the agreement, which were recorded in Acquired in-process research and development expenses on our Condensed Consolidated Statements of Income during the nine months ended September 30, 2022. These payments were classified as Acquisitions, including in-process research and development, net of cash acquired in Investing Activities on our Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022. In addition, Dragonfly is eligible to receive performance-based development and regulatory milestone payments of up to $630 million related to the DF7001 program with further commercial milestone payments and royalties on worldwide net sales if certain products are successfully developed and approved. If we exercise our options on additional NK cell engager programs, Dragonfly would be eligible to receive opt-in payments and performance-based development, regulatory and commercial milestone payments and royalties on worldwide net sales on these optioned programs as well. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table summarizes the changes in the carrying amount of Goodwill: (in millions) Amount Balance as of December 31, 2021 $ 8,332 Measurement period adjustments (18) Balance as of September 30, 2022 $ 8,314 During the nine months ended September 30, 2022, goodwill decreased by $18 million as a result of finalizing the amount of acquired net operating losses of MYR, which resulted in a decrease to the net deferred tax liability acquired. Intangible Assets The following table summarizes our Intangible assets, net: September 30, 2022 December 31, 2021 (in millions) Gross Accumulated Foreign Currency Translation Adjustment Net Gross Accumulated Foreign Currency Translation Adjustment Net Finite-lived assets: Intangible asset – sofosbuvir $ 10,720 $ (6,176) $ — $ 4,544 $ 10,720 $ (5,651) $ — $ 5,069 Intangible asset – axicabtagene ciloleucel 7,110 (1,806) — 5,304 7,110 (1,501) — 5,609 Intangible asset – Trodelvy 5,630 (856) — 4,774 5,630 (507) — 5,123 Intangible asset – Hepcludex 845 (136) — 709 845 (72) — 773 Other 1,614 (726) 1 889 1,610 (650) 1 961 Total finite-lived assets 25,919 (9,700) 1 16,220 25,915 (8,381) 1 17,535 Indefinite-lived assets – IPR&D 13,220 — — 13,220 15,920 — — 15,920 Total intangible assets $ 39,139 $ (9,700) $ 1 $ 29,440 $ 41,835 $ (8,381) $ 1 $ 33,455 Aggregate amortization expense related to finite-lived intangible assets was $445 million and $1.3 billion for the three and nine months ended September 30, 2022, respectively, and $441 million and $1.3 billion for the three and nine months ended September 30, 2021, respectively, and is primarily included in Cost of goods sold on our Condensed Consolidated Statements of Income. The following table summarizes the estimated future amortization expense associated with our finite-lived intangible assets as of September 30, 2022: (in millions) Amount 2022 (remaining three months) $ 445 2023 1,781 2024 1,781 2025 1,776 2026 1,768 Thereafter 8,669 Total $ 16,220 IPR&D Impairment |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Other Financial Information [Abstract] | |
OTHER FINANCIAL INFORMATION | OTHER FINANCIAL INFORMATION Accounts receivable, net The following table summarizes our Accounts receivable, net: (in millions) September 30, 2022 December 31, 2021 Accounts receivable $ 5,006 $ 5,278 Less: chargebacks 514 671 Less: cash discounts and other 86 67 Less: allowances for credit losses 51 47 Accounts receivable, net $ 4,354 $ 4,493 Inventories The following table summarizes our Inventories: (in millions) September 30, 2022 December 31, 2021 Raw materials $ 1,133 $ 1,112 Work in process 430 590 Finished goods 1,039 1,032 Total $ 2,602 $ 2,734 Reported as: Inventories $ 1,463 $ 1,618 Other long-term assets (1) 1,138 1,116 Total $ 2,602 $ 2,734 _______________________________ (1) Amounts primarily consist of raw materials. Accrued and other current liabilities The following table summarizes the components of Accrued and other current liabilities: (in millions) September 30, 2022 December 31, 2021 Compensation and employee benefits $ 752 $ 927 Income taxes payable 902 539 Allowance for sales returns 392 499 Accrual for settlement related to bictegravir litigation (1) — 1,250 Other accrued liabilities 1,819 2,930 Total $ 3,865 $ 6,145 _______________________________ (1) See Note 10. Commitments and Contingencies for additional information. |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT AND CREDIT FACILITIES | DEBT AND CREDIT FACILITIES The following table summarizes the carrying amount of our borrowings under various financing arrangements: (in millions) Carrying Amount Type of Borrowing Issue Date Maturity Date Interest Rate September 30, 2022 December 31, 2021 Senior Unsecured September 2016 March 2022 1.95% $ — $ 500 Senior Unsecured September 2015 September 2022 3.25% — 999 Senior Unsecured September 2016 September 2023 2.50% 749 748 Senior Unsecured September 2020 September 2023 0.75% 1,498 1,496 Senior Unsecured March 2014 April 2024 3.70% 1,748 1,747 Senior Unsecured November 2014 February 2025 3.50% 1,748 1,747 Senior Unsecured September 2015 March 2026 3.65% 2,741 2,739 Senior Unsecured September 2016 March 2027 2.95% 1,247 1,247 Senior Unsecured September 2020 October 2027 1.20% 747 746 Senior Unsecured September 2020 October 2030 1.65% 993 993 Senior Unsecured September 2015 September 2035 4.60% 992 992 Senior Unsecured September 2016 September 2036 4.00% 742 742 Senior Unsecured September 2020 October 2040 2.60% 987 987 Senior Unsecured December 2011 December 2041 5.65% 996 996 Senior Unsecured March 2014 April 2044 4.80% 1,736 1,736 Senior Unsecured November 2014 February 2045 4.50% 1,733 1,733 Senior Unsecured September 2015 March 2046 4.75% 2,221 2,220 Senior Unsecured September 2016 March 2047 4.15% 1,728 1,727 Senior Unsecured September 2020 October 2050 2.80% 1,477 1,476 Total senior unsecured notes 24,084 25,571 Liability related to the sale of future royalties 1,139 1,124 Total debt, net 25,223 26,695 Less: Current portion of long-term debt and other obligations, net 2,270 1,516 Total Long-term debt, net $ 22,953 $ 25,179 Senior Unsecured Notes In February 2022, we repaid $500 million of senior unsecured notes prior to the March 2022 maturity by exercising a par call option. Additionally, in July 2022, we repaid $1.0 billion of senior unsecured notes prior to the September 2022 maturity by exercising a par call option. No new debt was issued during the three and nine months ended September 30, 2022. We are required to comply with certain covenants under our note indentures governing our senior unsecured notes. As of September 30, 2022, we were not in violation of any covenants. Revolving Credit Facility As of September 30, 2022 and December 31, 2021, there were no amounts outstanding under our $2.5 billion revolving credit facility maturing in June 2025, and we were in compliance with all covenants. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings We are a party to various legal actions. Certain significant matters are described below. We recognize accruals for such actions to the extent that we conclude that a loss is both probable and reasonably estimable. We accrue for the best estimate of a loss within a range; however, if no estimate in the range is better than any other, then we accrue the minimum amount in the range. If we determine that a material loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss. Unless otherwise noted, the outcome of these matters either is not expected to be material or is not possible to determine such that we cannot reasonably estimate the maximum potential exposure or the range of possible loss. We did not have any material accruals for the matters described below as of September 30, 2022. As of December 31, 2021, we recorded an accrual of $1.25 billion in Accrued and other current liabilities on our Consolidated Balance Sheets for the previously disclosed legal settlement related to the bictegravir litigation, which we paid in February 2022. Litigation Related to Sofosbuvir In 2012, we acquired Pharmasset, Inc. Through the acquisition, we acquired sofosbuvir, a nucleotide analog that acts to inhibit the replication of HCV. In 2013, we received approval from FDA for sofosbuvir, now known commercially as Sovaldi. Sofosbuvir is also included in all of our marketed HCV products. We have received a number of litigation claims regarding sofosbuvir. While we have carefully considered these claims both prior to and following the acquisition and believe they are without merit, we cannot predict the ultimate outcome of such claims or range of loss. We are aware of patents and patent applications owned by third parties that have been or may in the future be alleged by such parties to cover the use of our HCV products. If third parties obtain valid and enforceable patents, and successfully prove infringement of those patents by our HCV products, we could be required to pay significant monetary damages. We cannot predict the ultimate outcome of intellectual property claims related to our HCV products. We have spent, and will continue to spend, significant resources defending against these claims. Litigation with the University of Minnesota The University of Minnesota (the “University”) has obtained U.S. Patent No. 8,815,830 (the “’830 patent”), which purports to broadly cover nucleosides with antiviral and anticancer activity. In 2016, the University filed a lawsuit against us in the U.S. District Court for the District of Minnesota, alleging that the commercialization of sofosbuvir-containing products infringes the ’830 patent. We believe the ’830 patent is invalid and will not be infringed by the continued commercialization of sofosbuvir. In 2017, the court granted our motion to transfer the case to California. We have also filed petitions for inter partes review with the U.S. Patent and Trademark Office Patent Trial and Appeal Board (“PTAB”) alleging that all asserted claims are invalid for anticipation and obviousness. The PTAB instituted one of these petitions and a merits hearing was held in February 2021. In 2018, the U.S. District Court for the Northern District of California stayed the litigation until after the PTAB concluded the inter partes review that it had initiated. In May 2021, the PTAB issued a written decision finding the asserted claims of the University’s patent invalid. In July 2021, the University appealed this decision. The litigation in the U.S. District Court will remain stayed through the appeal proceedings. Litigation with NuCana plc. (“NuCana”) NuCana has obtained European Patent No. 2,955,190 (the “EP ’190 patent”) that allegedly covers sofosbuvir. In opposition proceedings before the European Patent Office (“EPO”) held in February 2021, the EPO Opposition Division upheld the validity of the EP ’190 patent in amended form. The EPO has now scheduled the appeal hearing for December 2023. We continue to believe that the amended EP ’190 patent claims are invalid. Subsequent to the EPO opposition decision, we initiated proceedings to invalidate the U.K. counterpart of the EP ’190 patent in the High Court of England & Wales. In March 2021, NuCana filed a counterclaim against us in the High Court of England & Wales alleging patent infringement of the U.K. counterpart and seeking damages and other relief. The hearing date for the U.K. NuCana case has been scheduled for January 2023. In April 2021, NuCana also filed a lawsuit against us in Germany at the Landgericht Düsseldorf alleging patent infringement of the German counterpart of the EP ’190 patent and seeking damages and injunctive relief. In April 2022, we filed an action for grant of a compulsory license before the Federal Patent Court in Germany. In July 2022, the Düsseldorf court determined that NuCana’s German counterpart of the EP ’190 patent is infringed and granted an injunction. In August 2022, Gilead filed a notice of appeal regarding the Düsseldorf court’s decision. Litigation Related to Axicabtagene Ciloleucel In October 2017, Juno Therapeutics, Inc. and Sloan Kettering Cancer Center (collectively, “Juno”) filed a lawsuit against us in the U.S. District Court for the Central District of California, alleging that the commercialization of axicabtagene ciloleucel, sold commercially as Yescarta, infringes U.S. Patent No. 7,446,190 (the “’190 patent”). A jury trial was held on the ’190 patent, and in December 2019, the jury found that the asserted claims of the ’190 patent were valid, and that we willfully infringed the asserted claims of the ’190 patent. The jury also awarded Juno damages in amounts of $585 million in an upfront payment and a 27.6% running royalty from October 2017 through the date of the jury’s verdict. The parties filed post-trial motions in the first quarter of 2020, and the trial judge entered a judgment in April 2020. The trial judge affirmed the jury’s verdict, enhanced the past damages by 50% and maintained the royalties on future Yescarta sales at 27.6%. In April 2020, we filed an appeal seeking to reverse the judgment or obtain a new trial due to errors made by the trial judge, and in July 2021, the appeals court heard oral arguments. In August 2021, the Court of Appeals for the Federal Circuit (the “CAFC”) reversed the jury verdict, finding the asserted claims of Juno’s patent invalid. In October 2021, Juno filed a petition for rehearing with the CAFC. In January 2022, the CAFC denied Juno’s petition for rehearing. In June 2022, Juno filed a petition for certiorari seeking a review by the Supreme Court. The Supreme Court has not yet ruled on Juno’s petition. We believe that the likelihood of a material adverse outcome in this matter is remote. Litigation Relating to Pre-Exposure Prophylaxis In August 2019, we filed petitions requesting inter partes review of U.S. Patent Nos. 9,044,509, 9,579,333, 9,937,191 and 10,335,423 (collectively, “HHS Patents”) by PTAB. The HHS Patents are assigned to the U.S. Department of Health and Human Services (“HHS”) and purport to claim a process of protecting a primate host from infection by an immunodeficiency retrovirus by administering a combination of emtricitabine and tenofovir disoproxil fumarate (“TDF”) or tenofovir alafenamide (“TAF”) prior to exposure of the host to the immunodeficiency retrovirus, a process commonly known as pre-exposure prophylaxis (“PrEP”). In November 2019, the U.S. Department of Justice filed a lawsuit against us in the U.S. District Court of Delaware, alleging that the sale of Truvada and Descovy for use as PrEP infringes the HHS Patents. In February 2020, PTAB declined to institute our petitions for inter partes review of the HHS Patents. In April 2020, we filed a breach of contract lawsuit against the U.S. federal government in the U.S. Court of Federal Claims, alleging violations of four material transfer agreements (“MTAs”) related to the research underlying the HHS Patents and a clinical trial agreement (“CTA”) by the U.S. Centers for Disease Control and Prevention related to PrEP research. Although we cannot predict with certainty the ultimate outcome of these litigation matters, we believe that the U.S. federal government breached the MTAs and CTA, that Truvada and Descovy do not infringe the HHS Patents and that the HHS Patents are invalid over prior art descriptions of Truvada’s use for PrEP and post-exposure prophylaxis as well because physicians and patients were using the claimed methods years before HHS filed the applications for the patents. A trial for the bifurcated portion of the lawsuit in the Court of Federal Claims was held in June 2022, post-trial briefing is now complete, and a decision is not expected until after closing arguments, which were held in October 2022. A trial date for the lawsuit in the Delaware District Court has been set for May 2023. Litigation with Generic Manufacturers As part of the approval process for some of our products, FDA granted us a New Chemical Entity (“NCE”) exclusivity period during which other manufacturers’ applications for approval of generic versions of our product will not be approved. Generic manufacturers may challenge the patents protecting products that have been granted NCE exclusivity one year prior to the end of the NCE exclusivity period. Generic manufacturers have sought and may continue to seek FDA approval for a similar or identical drug through an abbreviated new drug application (“ANDA”), the application form typically used by manufacturers seeking approval of a generic drug. The sale of generic versions of our products prior to their patent expiration would have a significant negative effect on our revenues and results of operations. To seek approval for a generic version of a product having NCE status, a generic company may submit its ANDA to FDA four years after the branded product’s approval. Starting in December 2019, we received letters from Lupin Ltd. (“Lupin”), Apotex Inc., Shilpa Medicare Ltd. (“Shilpa”), Sunshine Lake Pharma Co. Ltd. (“Sunshine Lake”), Laurus Labs (“Laurus”), Natco Pharma Ltd. (“Natco”), Macleods Pharma Ltd. (“Macleods”), Hetero Labs Ltd. (“Hetero”) and Cipla Ltd. (“Cipla”) (collectively, “Generic Manufacturers”) indicating that they have submitted ANDAs to FDA requesting permission to market and manufacture generic versions of certain of our TAF-containing products. Between them, these Generic Manufacturers seek to market generic versions of Odefsey, Descovy and Vemlidy. The Generic Manufacturers have challenged the validity of two to four patents listed on the Orange Book and associated with TAF. We filed lawsuits against the Generic Manufacturers, and we intend to enforce and defend our intellectual property. In November 2021, we reached an agreement with Shilpa to resolve the lawsuit against Shilpa; in January 2022, we reached an agreement with Sunshine Lake to resolve the lawsuit against Sunshine Lake; and in May 2022, we reached an agreement with Natco to resolve the lawsuit against Natco. The settlement agreements have been filed with the U.S. Federal Trade Commission and the U.S. Department of Justice as required by law. In April 2022, the case against Laurus was dismissed after Laurus agreed not to challenge any of the Orange Book-listed patents associated with TAF. In September 2022, we entered into settlement agreements with Lupin, Macleods, Hetero, Apotex Inc., and Cipla to resolve the litigation and patent challenges associated with Descovy, Vemlidy, and Odefsey in the U.S. District Court for the District of Delaware. Pursuant to the settlement agreements, the manufacturers were granted a non-exclusive license in the United States to our patents on tenofovir alafenamide relating to Descovy and Vemlidy beginning on October 31, 2031, and to Odefsey beginning on January 31, 2032, or earlier in certain circumstances. The settlement agreements have been filed with the U.S. Federal Trade Commission and the U.S. Department of Justice as required by law. In October 2021, we received a letter from Lupin indicating that it has submitted an ANDA to FDA requesting permission to market and manufacture a generic version of Symtuza, a product commercialized by Janssen and for which Gilead shares in revenues. In November 2021, we, along with Janssen Products, L.P. and Janssen (“Janssen”), filed a patent infringement lawsuit against Lupin as co-plaintiffs in the U.S. District Court of Delaware. We separately filed an additional lawsuit against Lupin asserting infringement of two additional patents in the same court. This second case has been stayed pending resolution of the generic litigation regarding our TAF-containing products. Trial has been scheduled for October 2023. In September 2022, we received a letter from Apotex Inc. and Apotex Corp. (“Apotex”) stating that they have submitted an ANDA for a generic version of Symtuza. In October 2022, we, along with Janssen, filed a patent infringement lawsuit against Apotex as co-plaintiffs in the U.S. District Court of Delaware. We separately filed an additional lawsuit against Apotex asserting infringement of two additional patents in the same court. Starting in March 2022, we received letters from Lupin, Laurus and Cipla indicating that they have submitted ANDAs to FDA requesting permission to market and manufacture generic versions of Biktarvy. Lupin, Laurus, and Cipla have challenged the validity of three of the five patents listed in the Orange Book as associated with Biktarvy. We filed a lawsuit against Lupin, Laurus and Cipla in May 2022 in the U.S. District Court of Delaware, and intend to enforce and defend our intellectual property. Trial has been scheduled for December 2024. European Patent Claims In 2015, several parties filed oppositions in the EPO requesting revocation of one of our granted European patents covering sofosbuvir that expires in 2028. In 2016, the EPO upheld the validity of certain claims of our sofosbuvir patent. We have appealed this decision, seeking to restore all of the original claims, and several of the original opposing parties have also appealed, requesting full revocation. An appeal hearing has been scheduled for November 2022. In 2017, several parties filed oppositions in the EPO requesting revocation of our granted European patent relating to sofosbuvir that expires in 2024. The EPO conducted an oral hearing for this opposition in 2018 and upheld the claims. The original opposing parties have appealed, requesting full revocation. In 2017, several parties filed oppositions in the EPO requesting revocation of our granted European patent relating to TAF hemifumarate that expires in 2032. In 2019, the EPO upheld the validity of the claims of our TAF hemifumarate patent. Three parties have appealed this decision. The hearing for the appeal has been scheduled for March 2023. The appeal process may take several years for all EPO opposition proceedings. While we are confident in the strength of our patents, we cannot predict the ultimate outcome of these oppositions. If we are unsuccessful in defending these oppositions, some or all of our patent claims may be narrowed or revoked and the patent protection for sofosbuvir, TAF and TAF hemifumarate in the EU could be substantially shortened or eliminated entirely. If our patents are revoked, and no other European patents are granted covering these compounds, our exclusivity may be based entirely on regulatory exclusivity granted by EMA. If we lose patent protection for any of these compounds, our revenues and results of operations could be negatively impacted for the years including and succeeding the year in which such exclusivity is lost. Antitrust and Consumer Protection We, along with Bristol-Myers Squibb Company (“BMS”) and Johnson & Johnson, Inc., have been named as defendants in class action lawsuits filed in 2019 and 2020 related to various drugs used to treat HIV, including drugs used in combination antiretroviral therapy. Plaintiffs allege that we (and the other defendants) engaged in various conduct to restrain competition in violation of federal and state antitrust laws and state consumer protection laws. The lawsuits, which have been consolidated, are pending in the U.S. District Court for the Northern District of California. The lawsuits seek to bring claims on behalf of two nationwide classes—one of direct purchasers consisting largely of wholesalers, and another of indirect or end-payor purchasers, including health insurers and individual patients. Plaintiffs seek damages, permanent injunctive relief and other relief. In the second half of 2021 and first half of 2022, several plaintiffs filed separate lawsuits effectively opting out of the class action cases, asserting claims that are substantively the same as the putative classes. These cases have been coordinated with the class actions. Trial has been set for March 2023. In January 2022, we, along with BMS and Janssen Products, L.P., were named as defendants in a lawsuit filed in the Superior Court of the State of California, County of San Mateo, by Aetna, Inc. on behalf of itself and its affiliates and subsidiaries that effectively opts the Aetna plaintiffs out of the above class actions. The allegations are substantively the same as those in the class actions. The Aetna plaintiffs seek damages, permanent injunctive relief and other relief. In September 2020, we, along with generic manufacturers Cipla and Cipla USA Inc. (together, “Cipla Defendants”), were named as defendants in a class action lawsuit filed in the U.S. District Court for the Northern District of California by Jacksonville Police Officers and Fire Fighters Health Insurance Trust (“Jacksonville Trust”) on behalf of end-payor purchasers. Jacksonville Trust claims that the 2014 settlement agreement between us and the Cipla Defendants, which settled a patent dispute relating to patents covering our Emtriva, Truvada and Atripla products and permitted generic entry prior to patent expiry, violates certain federal and state antitrust and consumer protection laws. The Plaintiff seeks damages, permanent injunctive relief and other relief. In February 2021, we, along with BMS and Teva Pharmaceutical Industries Ltd., were named as defendants in a lawsuit filed in the First Judicial District Court for the State of New Mexico, County of Santa Fe by the New Mexico Attorney General. The New Mexico Attorney General alleges that we (and the other defendants) restrained competition in violation of New Mexico antitrust and consumer protection laws. The New Mexico Attorney General seeks damages, permanent injunctive relief and other relief. While we believe these cases are without merit, we cannot predict the ultimate outcome. If plaintiffs are successful in their claims, we could be required to pay significant monetary damages or could be subject to permanent injunctive relief awarded in favor of plaintiffs. Product Liability We have been named as a defendant in one class action lawsuit and various product liability lawsuits related to Viread, Truvada, Atripla, Complera and Stribild. Plaintiffs allege that Viread, Truvada, Atripla, Complera and/or Stribild caused them to experience kidney, bone and/or tooth injuries. The lawsuits, which are pending in state or federal court in California, Delaware and Missouri, involve more than 26,000 plaintiffs. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. The first bellwether trial in California state court was scheduled to begin in October 2022, but is currently stayed while the California First District Court of Appeal considers the merits of plaintiffs’ theories of liability. The first bellwether trial in California federal court is scheduled to begin in January 2024. We intend to vigorously defend ourselves in these actions. While we believe these cases are without merit, we cannot predict the ultimate outcome. If plaintiffs are successful in their claims, we could be required to pay significant monetary damages. Government Investigation In 2017, we received a subpoena from the U.S. Attorney’s Office for the Southern District of New York requesting documents related to our promotional speaker programs for HIV. We are cooperating with this inquiry. Qui Tam Litigation A former sales employee filed a qui tam lawsuit against Gilead in March 2017 in U.S. District Court for the Eastern District of Pennsylvania. Following the government’s decision not to intervene in the suit, the case was unsealed in December 2020. The lawsuit alleges that certain of Gilead’s HCV sales and marketing activities violated the federal False Claims Act and various state false claims acts. The relator seeks all available relief under these statutes. Health Choice Advocates, LLC (“Health Choice”) filed a qui tam lawsuit against Gilead in April 2020 in New Jersey state court. Following the New Jersey Attorney General’s Office’s decision not to intervene in the suit, Health Choice served us with their original complaint in August 2020. The lawsuit alleges that Gilead violated the New Jersey False Claims Act through our clinical educator programs for Sovaldi and Harvoni and our HCV and HIV patient access programs. The lawsuit seeks all available relief under the New Jersey False Claims Act. In April 2021, the trial court granted our motion to dismiss with prejudice. Health Choice has appealed the trial court’s dismissal. Health Choice filed another qui tam lawsuit against Gilead in May 2020 making similar allegations in Texas state court. Following the Texas Attorney General’s Office’s decision not to intervene in the suit, Health Choice served us with their original complaint in October 2020. The lawsuit alleges that Gilead violated the Texas Medicare Fraud Prevention Act (“TMFPA”) through our clinical educator programs for Sovaldi and Harvoni and our HCV and HIV patient access programs. The lawsuit seeks all available relief under the TMFPA. In September 2021, the Texas Court of Appeals for the Sixth Court Appeals District granted our request to stay the Texas litigation pending final judgment in the Eastern District of Pennsylvania lawsuit filed in March 2017, as discussed above. We intend to vigorously defend ourselves in these actions. While we believe these cases are without merit, we cannot predict the ultimate outcomes. If any of these plaintiffs are successful in their claims, we could be required to pay significant monetary damages. Securities Litigation Immunomedics and several of its former officers and directors have been named as defendants in putative class actions filed in 2018 and 2019, which were consolidated in September 2019. Plaintiffs filed a consolidated complaint in November 2019 and an amended complaint in July 2021. Plaintiffs allege that Immunomedics and the individual defendants violated the federal securities laws in connection with Immunomedics’ Biologics License Application for Trodelvy, and seek certification of a class of shareholders, damages and other relief. The consolidated lawsuit is pending in the U.S. District Court for the District of New Jersey. In June 2022, plaintiffs filed their Motion for Class Certification, and Immunomedics submitted its Opposition in July 2022. A decision on class certification is pending. While we believe this case is without merit, we cannot predict the ultimate outcome. If plaintiffs are successful in their claims, we could be required to pay significant monetary damages. Other Matters We are a party to various legal actions that arose in the ordinary course of our business. We do not believe that these other legal actions will have a material adverse impact on our consolidated financial position, results of operations or cash flows. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Programs In the first quarter of 2016, our Board of Directors authorized a $12.0 billion stock repurchase program (“2016 Program”) under which repurchases may be made in the open market or in privately negotiated transactions. We started repurchases under the 2016 Program in April 2016. In the first quarter of 2020, our Board of Directors authorized a $5.0 billion stock repurchase program (“2020 Program”), which will commence upon the completion of the 2016 Program. Purchases under the 2020 Program may be made in the open market or in privately negotiated transactions. As of September 30, 2022, the aggregate remaining authorized repurchase amount under both programs was $5.7 billion. The following table summarizes our stock repurchases through open market transactions under the 2016 Program: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Shares repurchased and retired 2.9 2.1 9.5 7.5 Amount $ 180 $ 145 $ 604 $ 497 Accumulated Other Comprehensive Income The following table summarizes the changes in AOCI by component, net of tax: (in millions) Foreign Currency Translation, Net of Tax Unrealized Gains and Losses on Available-for-Sale Debt Securities, Net of Tax Unrealized Gains and Losses on Cash Flow Hedges, Net of Tax Total Balance as of December 31, 2021 $ 13 $ (4) $ 74 $ 83 Net unrealized gain (loss) (102) (38) 254 114 Reclassifications to net income — 1 (100) (99) Net current period other comprehensive income (loss) (102) (37) 154 15 Balance as of September 30, 2022 $ (89) $ (41) $ 228 $ 98 (in millions) Foreign Currency Translation, Net of Tax Unrealized Gains and Losses on Available-for-Sale Debt Securities, Net of Tax Unrealized Gains and Losses on Cash Flow Hedges, Net of Tax Total Balance as of December 31, 2020 $ 51 $ 2 $ (113) $ (60) Net unrealized gain (loss) (15) (3) 92 74 Reclassifications to net income — — 60 60 Net current period other comprehensive income (loss) (15) (3) 152 134 Balance as of September 30, 2021 $ 36 $ (1) $ 39 $ 74 The amounts reclassified to Net income for gains and losses on cash flow hedges are recorded as part of Product sales on our Condensed Consolidated Statements of Income. See Note 5. Derivative Financial Instruments for additional information. The amounts reclassified to Net income for gains and losses on available-for-sale debt securities are recorded as part of Other income (expense), net on our Condensed Consolidated Statements of Income. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS | NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS Basic net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding during the period. Diluted net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock and other dilutive securities outstanding during the period. The potentially dilutive shares of our common stock resulting from the assumed exercise of outstanding stock options and equivalents were determined under the treasury stock metho d. The following table shows the calculation of basic and diluted net income per share attributable to Gilead common stockholders: Three Months Ended Nine Months Ended September 30, September 30, (in millions, except per share amounts) 2022 2021 2022 2021 Net income attributable to Gilead $ 1,789 $ 2,592 $ 2,952 $ 5,843 Shares used in per share calculation - basic 1,255 1,256 1,255 1,256 Dilutive effect of stock options and equivalents 6 6 5 6 Shares used in per share calculation - diluted 1,261 1,262 1,261 1,262 Net income per share attributable to Gilead common stockholders - basic $ 1.43 $ 2.06 $ 2.35 $ 4.65 Net income per share attributable to Gilead common stockholders - diluted $ 1.42 $ 2.05 $ 2.34 $ 4.63 Potential shares of common stock excluded from the computation of diluted net income per share attributable to Gilead common stockholders because their effect would have been antidilutive were 17 million for both the three and nine months ended September 30, 2022, and 14 million and 15 million for the three and nine months ended September 30, 2021, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table summarizes our Income tax expense: Three Months Ended Nine Months Ended September 30, September 30, (in millions, except percentages) 2022 2021 2022 2021 Income before income taxes $ 2,432 $ 3,438 $ 3,783 $ 7,519 Income tax expense $ (646) $ (852) $ (850) $ (1,694) Effective tax rate 26.6 % 24.8 % 22.5 % 22.5 % Our effective income tax rate of 26.6% and 22.5% for the three and nine months ended September 30, 2022, respectively, was higher than the U.S. federal statutory rate of 21% primarily due to $389 million of non-deductible Acquired in-process research and development expenses recorded in connection with our acquisition of MiroBio. Our effective income tax rate of 24.8% for the three months ended September 30, 2021 was higher than the U.S. federal statutory rate of 21% primarily due to remeasurement of certain deferred tax liabilities related to acquired intangible assets, partially offset by provision to return adjustments. Our effective income tax rate of 22.5% for the nine months ended September 30, 2021 was higher than the U.S. federal statutory rate of 21% primarily due to remeasurement of certain deferred tax liabilities related to acquired intangible assets and unfavorable changes in the fair value of our equity investment in Galapagos that are non-deductible for income tax purposes, partially offset by provision to return adjustments. Our income tax returns are subject to audit by federal, state and foreign tax authorities. We are currently under examination by the Internal Revenue Service and Irish tax authorities for our 2016 to 2018 tax years. There are differing interpretations of tax laws and regulations, and as a result, significant disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. We periodically evaluate our exposures associated with our tax filing positions. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying Condensed Consolidated Financial Statements and related Notes to Condensed Consolidated Financial Statements of Gilead Sciences, Inc. (“Gilead,” “we,” “our” or “us”) should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2021, included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. There have been no material changes to our organization or summary of significant accounting policies as disclosed in that filing except for our classification of expenses related to development milestones and other collaboration payments made prior to regulatory approval of a developed product. Beginning in the second quarter of 2022, we reclassified such expenses from Research and development expenses to Acquired in-process research and development expenses in the Condensed Consolidated Statements of Income. Concurrently, we reclassified the cash payments related to these expenses from Other to Acquisitions, including in-process research and development, net of cash acquired within Investing Activities in the Condensed Consolidated Statements of Cash Flows. We believe this presentation assists users of the financial statements to better understand the total costs incurred to acquire in-process research and development (“IPR&D”) projects. Prior periods have been revised to reflect this classification, resulting in a reduction of previously-reported Research and development expenses of $46 million and $93 million for the three and nine months ended September 30, 2021, respectively, and $8 million for the three months ended March 31, 2022. These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and include all adjustments consisting of normal recurring adjustments that the management of Gilead believes are necessary for a fair presentation of the periods presented and are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. Certain amounts and percentages in these Condensed Consolidated Financial Statements and accompanying notes may not sum or recalculate due to rounding. |
Fair Value Measurements | We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows: • Level 1 inputs include quoted prices in active markets for identical assets or liabilities; • Level 2 inputs include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and • Level 3 inputs include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Our Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. Our financial instruments consist primarily of cash and cash equivalents, marketable debt securities, accounts receivable, foreign currency exchange contracts, equity securities, accounts payable and short-term and long-term debt. Cash and cash equivalents, marketable debt securities, certain equity securities and foreign currency exchange contracts are reported at their respective fair values on our Condensed Consolidated Balance Sheets. Equity securities without readily determinable fair values are recorded using the measurement alternative of cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. Short-term and long-term debt are reported at their amortized costs on our Condensed Consolidated Balance Sheets. The remaining financial instruments are reported on our Condensed Consolidated Balance Sheets at amounts that approximate current fair values. Level 2 Inputs Available-for-Sale Debt Securities For our available-for-sale debt securities, we estimate the fair values by reviewing trading activity and pricing as of the measurement date, and taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate the fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs. Foreign Currency Derivative Contracts Substantially all of our foreign currency derivative contracts have maturities within an 18-month time horizon and all are with counterparties that have a minimum credit rating of A- or equivalent by S&P Global Ratings, Moody’s Investors Service, Inc. or Fitch Ratings, Inc. We estimate the fair values of these contracts by taking into consideration the valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable, either directly or indirectly. These inputs include foreign currency exchange rates, Secured Overnight Financing Rate and swap rates. These inputs, where applicable, are observable at commonly quoted intervals. Level 3 Inputs Contingent Consideration In connection with our first quarter 2021 acquisition of MYR, we recorded a liability for contingent consideration, which is revalued each reporting period until the related contingency is resolved. The contingent consideration was estimated using probability-weighted scenarios for U.S. Food and Drug Administration (“FDA”) approval of Hepcludex. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table summarizes our Total revenues: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 (in millions) U.S. Europe Other International Total U.S. Europe Other International Total Product sales: HIV Biktarvy $ 2,286 $ 278 $ 201 $ 2,766 $ 1,875 $ 254 $ 147 $ 2,276 Complera/Eviplera 20 21 3 43 28 31 5 64 Descovy 444 28 28 500 355 42 36 433 Genvoya 502 71 27 600 576 100 68 744 Odefsey 276 86 12 374 275 112 12 399 Stribild 22 7 3 32 28 11 3 42 Truvada 24 3 2 30 55 5 7 67 Revenue share - Symtuza (1) 85 40 4 130 86 41 3 130 Other HIV (2) 1 6 5 12 24 6 4 34 Total HIV 3,661 541 285 4,487 3,302 602 285 4,189 Veklury 336 130 458 925 1,527 109 287 1,923 Hepatitis C virus (“HCV”) Ledipasvir/Sofosbuvir (3) 8 5 12 25 14 5 26 45 Sofosbuvir/Velpatasvir (4) 241 131 84 455 173 77 82 332 Other HCV (5) 34 7 2 44 37 12 3 52 Total HCV 283 143 98 524 224 94 111 429 Hepatitis B virus (“HBV”) / Hepatitis delta virus (“HDV”) Vemlidy 129 9 90 228 103 9 96 208 Viread 2 5 15 22 1 7 18 26 Other HBV/HDV (6) — 13 — 14 — 13 — 13 Total HBV/HDV 131 28 106 264 104 29 114 247 Cell therapy Tecartus 60 20 1 81 35 12 — 47 Yescarta 210 91 16 317 100 66 9 175 Total cell therapy 270 111 17 398 135 78 9 222 Trodelvy 139 38 3 180 100 1 — 101 Other AmBisome 9 63 33 105 7 67 69 143 Letairis 43 — — 43 46 — — 46 Other (7) 28 11 13 52 34 17 5 56 Total other 80 75 46 200 87 84 74 245 Total product sales 4,900 1,064 1,013 6,978 5,479 997 880 7,356 Royalty, contract and other revenues 28 37 — 64 30 34 1 65 Total revenues $ 4,928 $ 1,101 $ 1,013 $ 7,042 $ 5,509 $ 1,031 $ 881 $ 7,421 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 (in millions) U.S. Europe Other International Total U.S. Europe Other International Total Product sales: HIV Biktarvy $ 6,088 $ 807 $ 577 $ 7,472 $ 4,926 $ 707 $ 461 $ 6,094 Complera/Eviplera 56 76 10 142 73 104 12 189 Descovy 1,152 92 91 1,335 994 128 105 1,227 Genvoya 1,441 220 103 1,764 1,633 306 184 2,123 Odefsey 763 278 36 1,077 773 336 39 1,148 Stribild 68 23 7 98 94 33 12 139 Truvada 77 12 13 102 268 18 24 310 Revenue share - Symtuza (1) 251 126 10 388 261 125 8 394 Other HIV (2) 11 20 15 45 110 19 24 153 Total HIV 9,906 1,653 863 12,422 9,132 1,776 869 11,777 Veklury 1,179 560 1,166 2,905 2,763 761 684 4,208 HCV Ledipasvir/Sofosbuvir (3) 27 13 43 83 63 24 76 163 Sofosbuvir/Velpatasvir (4) 629 288 244 1,161 649 234 272 1,155 Other HCV (5) 88 31 7 127 97 64 9 170 Total HCV 745 332 294 1,371 809 322 357 1,488 HBV/HDV Vemlidy 306 27 289 622 266 25 298 589 Viread 4 17 48 69 8 22 55 85 Other HBV/HDV (6) 1 41 — 42 1 29 — 30 Total HBV/HDV 311 85 337 733 275 76 353 704 Cell therapy Tecartus 160 56 2 217 94 25 — 119 Yescarta 528 253 42 823 300 188 25 513 Total cell therapy 688 308 44 1,040 394 213 25 632 Trodelvy 379 98 8 485 261 1 — 262 Other AmBisome 48 192 140 380 32 202 186 420 Letairis 135 — — 135 157 — — 157 Other (7) 91 52 35 178 109 68 23 200 Total other 275 244 174 693 298 270 209 777 Total product sales 13,482 3,281 2,887 19,650 13,932 3,419 2,497 19,848 Royalty, contract and other revenues 140 98 4 242 70 140 3 213 Total revenues $ 13,622 $ 3,378 $ 2,891 $ 19,892 $ 14,002 $ 3,559 $ 2,500 $ 20,061 _______________________________ (1) Represents our revenue from cobicistat (“C”), emtricitabine (“FTC”) and tenofovir alafenamide (“TAF”) in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company (“Janssen”). (2) Includes Atripla, Emtriva and Tybost. (3) Amounts consist of sales of Harvoni and the authorized generic version of Harvoni sold by our separate subsidiary, Asegua Therapeutics LLC. (4) Amounts consist of sales of Epclusa and the authorized generic version of Epclusa sold by our separate subsidiary, Asegua Therapeutics LLC. (5) Includes Vosevi and Sovaldi. (6) Includes Hepcludex and Hepsera. (7) Includes Cayston, Jyseleca, Ranexa and Zydelig. |
Revenues from Major Customers | The following table summarizes revenues from each of our customers who individually accounted for 10% or more of our Total revenues: Three Months Ended Nine Months Ended September 30, September 30, (as a percentage of total revenues) 2022 2021 2022 2021 AmerisourceBergen Corporation 18 % 25 % 17 % 24 % Cardinal Health, Inc. 25 % 22 % 25 % 21 % McKesson Corporation 22 % 21 % 20 % 18 % |
Revenues Recognized from Performance Obligations Satisfied in Prior Periods | The following table summarizes revenues recognized from performance obligations satisfied in prior periods: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Revenue share with Janssen and royalties for licenses of intellectual property $ 192 $ 190 $ 573 $ 625 Changes in estimates $ 207 $ 188 $ 452 $ 661 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value | The following table summarizes the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy: September 30, 2022 December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Available-for-sale debt securities: U.S. treasury securities $ 448 $ — $ — $ 448 $ 407 $ — $ — $ 407 U.S. government agencies securities — 19 — 19 — 4 — 4 Non-U.S. government securities — 44 — 44 — 50 — 50 Certificates of deposit — 65 — 65 — 249 — 249 Corporate debt securities — 1,367 — 1,367 — 1,363 — 1,363 Residential mortgage and asset-backed securities — 347 — 347 — 424 — 424 Equity securities: Money market funds 3,316 — — 3,316 3,661 — — 3,661 Equity investment in Galapagos NV (“Galapagos”) 703 — — 703 931 — — 931 Equity investment in Arcus Biosciences, Inc. (“Arcus”) 361 — — 361 559 — — 559 Other publicly traded equity securities 205 — — 205 331 — — 331 Deferred compensation plan 208 — — 208 261 — — 261 Foreign currency derivative contracts — 242 — 242 — 80 — 80 Total $ 5,242 $ 2,084 $ — $ 7,325 $ 6,150 $ 2,170 $ — $ 8,320 Liabilities: Liability for MYR GmbH (“MYR”) contingent consideration $ — $ — $ 249 $ 249 $ — $ — $ 317 $ 317 Deferred compensation plan 208 — — 208 261 — — 261 Foreign currency derivative contracts — 2 — 2 — 5 — 5 Total $ 208 $ 2 $ 249 $ 458 $ 261 $ 5 $ 317 $ 583 |
Summary of Change in Fair Value of Contingent Consideration | The following table summarizes the change in fair value of our contingent consideration: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Beginning balance $ 306 $ 334 $ 317 $ — Additions — — — 341 Changes in valuation assumptions (30) — (19) — Effect of foreign exchange remeasurement (27) (7) (49) (13) Ending balance $ 249 $ 328 $ 249 $ 328 |
AVAILABLE-FOR-SALE DEBT SECUR_2
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
Reconciliation of Available-for-Sale Debt Securities from Cost Basis to Fair Value | The following table summarizes our available-for-sale debt securities: September 30, 2022 December 31, 2021 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ 456 $ — $ (7) $ 448 $ 408 $ — $ (1) $ 407 U.S. government agencies securities 19 — — 19 4 — — 4 Non-U.S. government securities 44 — — 44 50 — — 50 Certificates of deposit 65 — — 65 249 — — 249 Corporate debt securities 1,397 — (30) 1,367 1,365 — (2) 1,363 Residential mortgage and asset-backed securities 350 — (3) 347 425 — (1) 424 Total $ 2,331 $ — $ (40) $ 2,290 $ 2,501 $ — $ (4) $ 2,497 |
Summary of Classification of Available-for-Sale Debt Securities | The following table summarizes the classification of our available-for-sale debt securities in our Condensed Consolidated Balance Sheets: (in millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 47 $ 6 Short-term marketable debt securities 961 1,182 Long-term marketable debt securities 1,282 1,309 Total $ 2,290 $ 2,497 |
Summary of Available-for-Sale Debt Securities by Contractual Maturity | The following table summarizes our available-for-sale debt securities by contractual maturity: September 30, 2022 (in millions) Amortized Cost Fair Value Within one year $ 1,018 $ 1,008 After one year through five years 1,298 1,268 After five years through ten years 7 7 After ten years 7 7 Total $ 2,331 $ 2,290 |
Summary of Equity Securities | The following table summarizes the classification of our equity securities measured at fair value on a recurring basis on our Condensed Consolidated Balance Sheets. Prepaid and other current assets and Other long-term assets include our equity method investments in Arcus and Galapagos, respectively, for which we elected and applied the fair value option as we believe it best reflects the underlying economics of these investments. (in millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 3,316 $ 3,661 Prepaid and other current assets 578 885 Other long-term assets 899 1,197 Total $ 4,793 $ 5,743 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Classification and Fair Value of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments in our Condensed Consolidated Balance Sheets: September 30, 2022 Derivative Assets Derivative Liabilities (in millions) Classification Fair Value Classification Fair Value Derivatives designated as hedges: Foreign currency exchange contracts Prepaid and other current assets $ 215 Accrued and other current liabilities $ — Foreign currency exchange contracts Other long-term assets 17 Other long-term obligations — Total derivatives designated as hedges 232 — Derivatives not designated as hedges: Foreign currency exchange contracts Prepaid and other current assets 10 Accrued and other current liabilities 2 Total derivatives not designated as hedges 10 2 Total derivatives $ 242 $ 2 December 31, 2021 Derivative Assets Derivative Liabilities (in millions) Classification Fair Value Classification Fair Value Derivatives designated as hedges: Foreign currency exchange contracts Prepaid and other current assets $ 75 Accrued and other current liabilities $ 4 Foreign currency exchange contracts Other long-term assets 5 Other long-term obligations 1 Total derivatives designated as hedges 80 5 Derivatives not designated as hedges: Foreign currency exchange contracts Prepaid and other current assets — Accrued and other current liabilities — Total derivatives not designated as hedges — — Total derivatives $ 80 $ 5 |
Summary of Effect of Foreign Currency Exchange Contracts | The following table summarizes the effect of our foreign currency exchange contracts on our Condensed Consolidated Financial Statements: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Derivatives designated as hedges: Gains (losses) recognized in AOCI $ 162 $ 42 $ 292 $ 104 Gains (losses) reclassified from AOCI into Product sales $ 48 $ (21) $ 115 $ (69) Derivatives not designated as hedges: Gains (losses) recognized in Other income (expense), net $ 6 $ 5 $ 70 $ 24 |
Summary of Potential Effect of Offsetting Derivatives | The following table summarizes the potential effect of offsetting our foreign currency exchange contracts on our Condensed Consolidated Balance Sheets: Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets (in millions) Gross Amounts of Assets/Liabilities Presented on the Condensed Consolidated Balance Sheets Derivative Financial Instruments Cash Collateral Received/Pledged Net Amount (Legal Offset) As of September 30, 2022 Derivative assets $ 242 $ (2) $ — $ 240 Derivative liabilities $ 2 $ (2) $ — $ — As of December 31, 2021 Derivative assets $ 80 $ (4) $ — $ 76 Derivative liabilities $ 5 $ (4) $ — $ 1 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of Goodwill: (in millions) Amount Balance as of December 31, 2021 $ 8,332 Measurement period adjustments (18) Balance as of September 30, 2022 $ 8,314 |
Schedule of Finite-Lived Intangible Assets | The following table summarizes our Intangible assets, net: September 30, 2022 December 31, 2021 (in millions) Gross Accumulated Foreign Currency Translation Adjustment Net Gross Accumulated Foreign Currency Translation Adjustment Net Finite-lived assets: Intangible asset – sofosbuvir $ 10,720 $ (6,176) $ — $ 4,544 $ 10,720 $ (5,651) $ — $ 5,069 Intangible asset – axicabtagene ciloleucel 7,110 (1,806) — 5,304 7,110 (1,501) — 5,609 Intangible asset – Trodelvy 5,630 (856) — 4,774 5,630 (507) — 5,123 Intangible asset – Hepcludex 845 (136) — 709 845 (72) — 773 Other 1,614 (726) 1 889 1,610 (650) 1 961 Total finite-lived assets 25,919 (9,700) 1 16,220 25,915 (8,381) 1 17,535 Indefinite-lived assets – IPR&D 13,220 — — 13,220 15,920 — — 15,920 Total intangible assets $ 39,139 $ (9,700) $ 1 $ 29,440 $ 41,835 $ (8,381) $ 1 $ 33,455 |
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes our Intangible assets, net: September 30, 2022 December 31, 2021 (in millions) Gross Accumulated Foreign Currency Translation Adjustment Net Gross Accumulated Foreign Currency Translation Adjustment Net Finite-lived assets: Intangible asset – sofosbuvir $ 10,720 $ (6,176) $ — $ 4,544 $ 10,720 $ (5,651) $ — $ 5,069 Intangible asset – axicabtagene ciloleucel 7,110 (1,806) — 5,304 7,110 (1,501) — 5,609 Intangible asset – Trodelvy 5,630 (856) — 4,774 5,630 (507) — 5,123 Intangible asset – Hepcludex 845 (136) — 709 845 (72) — 773 Other 1,614 (726) 1 889 1,610 (650) 1 961 Total finite-lived assets 25,919 (9,700) 1 16,220 25,915 (8,381) 1 17,535 Indefinite-lived assets – IPR&D 13,220 — — 13,220 15,920 — — 15,920 Total intangible assets $ 39,139 $ (9,700) $ 1 $ 29,440 $ 41,835 $ (8,381) $ 1 $ 33,455 |
Schedule of Estimated Future Amortization Expense | The following table summarizes the estimated future amortization expense associated with our finite-lived intangible assets as of September 30, 2022: (in millions) Amount 2022 (remaining three months) $ 445 2023 1,781 2024 1,781 2025 1,776 2026 1,768 Thereafter 8,669 Total $ 16,220 |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Financial Information [Abstract] | |
Schedule of Accounts Receivable | The following table summarizes our Accounts receivable, net: (in millions) September 30, 2022 December 31, 2021 Accounts receivable $ 5,006 $ 5,278 Less: chargebacks 514 671 Less: cash discounts and other 86 67 Less: allowances for credit losses 51 47 Accounts receivable, net $ 4,354 $ 4,493 |
Schedule of Inventories | The following table summarizes our Inventories: (in millions) September 30, 2022 December 31, 2021 Raw materials $ 1,133 $ 1,112 Work in process 430 590 Finished goods 1,039 1,032 Total $ 2,602 $ 2,734 Reported as: Inventories $ 1,463 $ 1,618 Other long-term assets (1) 1,138 1,116 Total $ 2,602 $ 2,734 _______________________________ (1) Amounts primarily consist of raw materials. |
Schedule of Other Accrued Liabilities | The following table summarizes the components of Accrued and other current liabilities: (in millions) September 30, 2022 December 31, 2021 Compensation and employee benefits $ 752 $ 927 Income taxes payable 902 539 Allowance for sales returns 392 499 Accrual for settlement related to bictegravir litigation (1) — 1,250 Other accrued liabilities 1,819 2,930 Total $ 3,865 $ 6,145 _______________________________ (1) See Note 10. Commitments and Contingencies for additional information. |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Debt Carrying Amount | The following table summarizes the carrying amount of our borrowings under various financing arrangements: (in millions) Carrying Amount Type of Borrowing Issue Date Maturity Date Interest Rate September 30, 2022 December 31, 2021 Senior Unsecured September 2016 March 2022 1.95% $ — $ 500 Senior Unsecured September 2015 September 2022 3.25% — 999 Senior Unsecured September 2016 September 2023 2.50% 749 748 Senior Unsecured September 2020 September 2023 0.75% 1,498 1,496 Senior Unsecured March 2014 April 2024 3.70% 1,748 1,747 Senior Unsecured November 2014 February 2025 3.50% 1,748 1,747 Senior Unsecured September 2015 March 2026 3.65% 2,741 2,739 Senior Unsecured September 2016 March 2027 2.95% 1,247 1,247 Senior Unsecured September 2020 October 2027 1.20% 747 746 Senior Unsecured September 2020 October 2030 1.65% 993 993 Senior Unsecured September 2015 September 2035 4.60% 992 992 Senior Unsecured September 2016 September 2036 4.00% 742 742 Senior Unsecured September 2020 October 2040 2.60% 987 987 Senior Unsecured December 2011 December 2041 5.65% 996 996 Senior Unsecured March 2014 April 2044 4.80% 1,736 1,736 Senior Unsecured November 2014 February 2045 4.50% 1,733 1,733 Senior Unsecured September 2015 March 2046 4.75% 2,221 2,220 Senior Unsecured September 2016 March 2047 4.15% 1,728 1,727 Senior Unsecured September 2020 October 2050 2.80% 1,477 1,476 Total senior unsecured notes 24,084 25,571 Liability related to the sale of future royalties 1,139 1,124 Total debt, net 25,223 26,695 Less: Current portion of long-term debt and other obligations, net 2,270 1,516 Total Long-term debt, net $ 22,953 $ 25,179 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table summarizes our stock repurchases through open market transactions under the 2016 Program: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Shares repurchased and retired 2.9 2.1 9.5 7.5 Amount $ 180 $ 145 $ 604 $ 497 |
Summary of Changes in Accumulated Other Comprehensive Income | The following table summarizes the changes in AOCI by component, net of tax: (in millions) Foreign Currency Translation, Net of Tax Unrealized Gains and Losses on Available-for-Sale Debt Securities, Net of Tax Unrealized Gains and Losses on Cash Flow Hedges, Net of Tax Total Balance as of December 31, 2021 $ 13 $ (4) $ 74 $ 83 Net unrealized gain (loss) (102) (38) 254 114 Reclassifications to net income — 1 (100) (99) Net current period other comprehensive income (loss) (102) (37) 154 15 Balance as of September 30, 2022 $ (89) $ (41) $ 228 $ 98 (in millions) Foreign Currency Translation, Net of Tax Unrealized Gains and Losses on Available-for-Sale Debt Securities, Net of Tax Unrealized Gains and Losses on Cash Flow Hedges, Net of Tax Total Balance as of December 31, 2020 $ 51 $ 2 $ (113) $ (60) Net unrealized gain (loss) (15) (3) 92 74 Reclassifications to net income — — 60 60 Net current period other comprehensive income (loss) (15) (3) 152 134 Balance as of September 30, 2021 $ 36 $ (1) $ 39 $ 74 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of the Calculation of Basic and Diluted Earnings Per Share | The following table shows the calculation of basic and diluted net income per share attributable to Gilead common stockholders: Three Months Ended Nine Months Ended September 30, September 30, (in millions, except per share amounts) 2022 2021 2022 2021 Net income attributable to Gilead $ 1,789 $ 2,592 $ 2,952 $ 5,843 Shares used in per share calculation - basic 1,255 1,256 1,255 1,256 Dilutive effect of stock options and equivalents 6 6 5 6 Shares used in per share calculation - diluted 1,261 1,262 1,261 1,262 Net income per share attributable to Gilead common stockholders - basic $ 1.43 $ 2.06 $ 2.35 $ 4.65 Net income per share attributable to Gilead common stockholders - diluted $ 1.42 $ 2.05 $ 2.34 $ 4.63 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of the Provision for Income Taxes | The following table summarizes our Income tax expense: Three Months Ended Nine Months Ended September 30, September 30, (in millions, except percentages) 2022 2021 2022 2021 Income before income taxes $ 2,432 $ 3,438 $ 3,783 $ 7,519 Income tax expense $ (646) $ (852) $ (850) $ (1,694) Effective tax rate 26.6 % 24.8 % 22.5 % 22.5 % |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification [Line Items] | |||||
Research and development expenses | $ (1,149) | $ (1,101) | $ (3,429) | $ (3,243) | |
Revision of Prior Period, Reclassification, Adjustment | |||||
Reclassification [Line Items] | |||||
Research and development expenses | $ 8 | $ 46 | $ 93 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 7,042 | $ 7,421 | $ 19,892 | $ 20,061 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,928 | 5,509 | 13,622 | 14,002 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,101 | 1,031 | 3,378 | 3,559 |
Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,013 | 881 | 2,891 | 2,500 |
Total product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6,978 | 7,356 | 19,650 | 19,848 |
Total product sales | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,900 | 5,479 | 13,482 | 13,932 |
Total product sales | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,064 | 997 | 3,281 | 3,419 |
Total product sales | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,013 | 880 | 2,887 | 2,497 |
Total HIV | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,487 | 4,189 | 12,422 | 11,777 |
Total HIV | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,661 | 3,302 | 9,906 | 9,132 |
Total HIV | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 541 | 602 | 1,653 | 1,776 |
Total HIV | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 285 | 285 | 863 | 869 |
Biktarvy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,766 | 2,276 | 7,472 | 6,094 |
Biktarvy | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,286 | 1,875 | 6,088 | 4,926 |
Biktarvy | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 278 | 254 | 807 | 707 |
Biktarvy | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 201 | 147 | 577 | 461 |
Complera/Eviplera | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 43 | 64 | 142 | 189 |
Complera/Eviplera | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 20 | 28 | 56 | 73 |
Complera/Eviplera | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 21 | 31 | 76 | 104 |
Complera/Eviplera | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3 | 5 | 10 | 12 |
Descovy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 500 | 433 | 1,335 | 1,227 |
Descovy | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 444 | 355 | 1,152 | 994 |
Descovy | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 28 | 42 | 92 | 128 |
Descovy | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 28 | 36 | 91 | 105 |
Genvoya | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 600 | 744 | 1,764 | 2,123 |
Genvoya | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 502 | 576 | 1,441 | 1,633 |
Genvoya | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 71 | 100 | 220 | 306 |
Genvoya | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 27 | 68 | 103 | 184 |
Odefsey | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 374 | 399 | 1,077 | 1,148 |
Odefsey | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 276 | 275 | 763 | 773 |
Odefsey | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 86 | 112 | 278 | 336 |
Odefsey | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 12 | 12 | 36 | 39 |
Stribild | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 32 | 42 | 98 | 139 |
Stribild | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 22 | 28 | 68 | 94 |
Stribild | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 7 | 11 | 23 | 33 |
Stribild | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3 | 3 | 7 | 12 |
Truvada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 30 | 67 | 102 | 310 |
Truvada | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 24 | 55 | 77 | 268 |
Truvada | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3 | 5 | 12 | 18 |
Truvada | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2 | 7 | 13 | 24 |
Revenue share - Symtuza | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 130 | 130 | 388 | 394 |
Revenue share - Symtuza | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 85 | 86 | 251 | 261 |
Revenue share - Symtuza | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 40 | 41 | 126 | 125 |
Revenue share - Symtuza | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4 | 3 | 10 | 8 |
Other HIV | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 12 | 34 | 45 | 153 |
Other HIV | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1 | 24 | 11 | 110 |
Other HIV | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6 | 6 | 20 | 19 |
Other HIV | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5 | 4 | 15 | 24 |
Veklury | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 925 | 1,923 | 2,905 | 4,208 |
Veklury | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 336 | 1,527 | 1,179 | 2,763 |
Veklury | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 130 | 109 | 560 | 761 |
Veklury | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 458 | 287 | 1,166 | 684 |
Total HCV | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 524 | 429 | 1,371 | 1,488 |
Total HCV | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 283 | 224 | 745 | 809 |
Total HCV | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 143 | 94 | 332 | 322 |
Total HCV | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 98 | 111 | 294 | 357 |
Ledipasvir/Sofosbuvir | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 25 | 45 | 83 | 163 |
Ledipasvir/Sofosbuvir | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 8 | 14 | 27 | 63 |
Ledipasvir/Sofosbuvir | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5 | 5 | 13 | 24 |
Ledipasvir/Sofosbuvir | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 12 | 26 | 43 | 76 |
Sofosbuvir/Velpatasvir | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 455 | 332 | 1,161 | 1,155 |
Sofosbuvir/Velpatasvir | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 241 | 173 | 629 | 649 |
Sofosbuvir/Velpatasvir | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 131 | 77 | 288 | 234 |
Sofosbuvir/Velpatasvir | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 84 | 82 | 244 | 272 |
Other HCV | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 44 | 52 | 127 | 170 |
Other HCV | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 34 | 37 | 88 | 97 |
Other HCV | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 7 | 12 | 31 | 64 |
Other HCV | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2 | 3 | 7 | 9 |
Total HBV/HDV | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 264 | 247 | 733 | 704 |
Total HBV/HDV | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 131 | 104 | 311 | 275 |
Total HBV/HDV | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 28 | 29 | 85 | 76 |
Total HBV/HDV | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 106 | 114 | 337 | 353 |
Vemlidy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 228 | 208 | 622 | 589 |
Vemlidy | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 129 | 103 | 306 | 266 |
Vemlidy | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 9 | 9 | 27 | 25 |
Vemlidy | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 90 | 96 | 289 | 298 |
Viread | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 22 | 26 | 69 | 85 |
Viread | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2 | 1 | 4 | 8 |
Viread | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5 | 7 | 17 | 22 |
Viread | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 15 | 18 | 48 | 55 |
Other HBV/HBD | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 14 | 13 | 42 | 30 |
Other HBV/HBD | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 1 | 1 |
Other HBV/HBD | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 13 | 13 | 41 | 29 |
Other HBV/HBD | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Total cell therapy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 398 | 222 | 1,040 | 632 |
Total cell therapy | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 270 | 135 | 688 | 394 |
Total cell therapy | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 111 | 78 | 308 | 213 |
Total cell therapy | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 17 | 9 | 44 | 25 |
Tecartus | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 81 | 47 | 217 | 119 |
Tecartus | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 60 | 35 | 160 | 94 |
Tecartus | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 20 | 12 | 56 | 25 |
Tecartus | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1 | 0 | 2 | 0 |
Yescarta | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 317 | 175 | 823 | 513 |
Yescarta | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 210 | 100 | 528 | 300 |
Yescarta | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 91 | 66 | 253 | 188 |
Yescarta | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 16 | 9 | 42 | 25 |
Trodelvy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 180 | 101 | 485 | 262 |
Trodelvy | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 139 | 100 | 379 | 261 |
Trodelvy | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 38 | 1 | 98 | 1 |
Trodelvy | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3 | 0 | 8 | 0 |
Total other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 200 | 245 | 693 | 777 |
Total other | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 80 | 87 | 275 | 298 |
Total other | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 75 | 84 | 244 | 270 |
Total other | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 46 | 74 | 174 | 209 |
AmBisome | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 105 | 143 | 380 | 420 |
AmBisome | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 9 | 7 | 48 | 32 |
AmBisome | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 63 | 67 | 192 | 202 |
AmBisome | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 33 | 69 | 140 | 186 |
Letairis | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 43 | 46 | 135 | 157 |
Letairis | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 43 | 46 | 135 | 157 |
Letairis | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Letairis | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 52 | 56 | 178 | 200 |
Other | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 28 | 34 | 91 | 109 |
Other | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 11 | 17 | 52 | 68 |
Other | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 13 | 5 | 35 | 23 |
Royalty, contract and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 64 | 65 | 242 | 213 |
Royalty, contract and other revenues | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 28 | 30 | 140 | 70 |
Royalty, contract and other revenues | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 37 | 34 | 98 | 140 |
Royalty, contract and other revenues | Other International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 0 | $ 1 | $ 4 | $ 3 |
REVENUES - Revenues from Major
REVENUES - Revenues from Major Customers (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AmerisourceBergen Corporation | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenues | 18% | 25% | 17% | 24% |
Cardinal Health, Inc. | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenues | 25% | 22% | 25% | 21% |
McKesson Corporation | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenues | 22% | 21% | 20% | 18% |
REVENUES - Performance Obligati
REVENUES - Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue share with Janssen and royalties for licenses of intellectual property | $ 192 | $ 190 | $ 573 | $ 625 |
Changes in estimates | $ 207 | $ 188 | $ 452 | $ 661 |
REVENUES - Additional Informati
REVENUES - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 164 | $ 174 |
Contract liabilities | $ 85 | $ 79 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Available-for-sale debt securities | $ 2,290 | $ 2,497 |
MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 249 | |
Other publicly traded equity securities | ||
Assets: | ||
Total | 4,793 | 5,743 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||
Assets: | ||
Total | 7,325 | 8,320 |
Liabilities: | ||
Total | 458 | 583 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 249 | 317 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | U.S. treasury securities | ||
Assets: | ||
Available-for-sale debt securities | 448 | 407 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | U.S. government agencies securities | ||
Assets: | ||
Available-for-sale debt securities | 19 | 4 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Non-U.S. government securities | ||
Assets: | ||
Available-for-sale debt securities | 44 | 50 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt securities | 65 | 249 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt securities | 1,367 | 1,363 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Residential mortgage and asset-backed securities | ||
Assets: | ||
Available-for-sale debt securities | 347 | 424 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Money market funds | ||
Assets: | ||
Marketable equity securities | 3,316 | 3,661 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Other publicly traded equity securities | ||
Assets: | ||
Marketable equity securities | 205 | 331 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Other publicly traded equity securities | Galapagos | ||
Assets: | ||
Marketable equity securities | 703 | 931 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Other publicly traded equity securities | Arcus | ||
Assets: | ||
Marketable equity securities | 361 | 559 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Deferred compensation plan | ||
Assets: | ||
Marketable equity securities | 208 | 261 |
Liabilities: | ||
Deferred compensation plan | 208 | 261 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Foreign currency derivative contracts | ||
Assets: | ||
Foreign currency derivative contracts | 242 | 80 |
Liabilities: | ||
Foreign currency derivative contracts | 2 | 5 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total | 5,242 | 6,150 |
Liabilities: | ||
Total | 208 | 261 |
Fair Value, Measurements, Recurring | Level 1 | MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury securities | ||
Assets: | ||
Available-for-sale debt securities | 448 | 407 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government agencies securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage and asset-backed securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets: | ||
Marketable equity securities | 3,316 | 3,661 |
Fair Value, Measurements, Recurring | Level 1 | Other publicly traded equity securities | ||
Assets: | ||
Marketable equity securities | 205 | 331 |
Fair Value, Measurements, Recurring | Level 1 | Other publicly traded equity securities | Galapagos | ||
Assets: | ||
Marketable equity securities | 703 | 931 |
Fair Value, Measurements, Recurring | Level 1 | Other publicly traded equity securities | Arcus | ||
Assets: | ||
Marketable equity securities | 361 | 559 |
Fair Value, Measurements, Recurring | Level 1 | Deferred compensation plan | ||
Assets: | ||
Marketable equity securities | 208 | 261 |
Liabilities: | ||
Deferred compensation plan | 208 | 261 |
Fair Value, Measurements, Recurring | Level 1 | Foreign currency derivative contracts | ||
Assets: | ||
Foreign currency derivative contracts | 0 | 0 |
Liabilities: | ||
Foreign currency derivative contracts | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total | 2,084 | 2,170 |
Liabilities: | ||
Total | 2 | 5 |
Fair Value, Measurements, Recurring | Level 2 | MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. treasury securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government agencies securities | ||
Assets: | ||
Available-for-sale debt securities | 19 | 4 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government securities | ||
Assets: | ||
Available-for-sale debt securities | 44 | 50 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt securities | 65 | 249 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt securities | 1,367 | 1,363 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage and asset-backed securities | ||
Assets: | ||
Available-for-sale debt securities | 347 | 424 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Other publicly traded equity securities | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Other publicly traded equity securities | Galapagos | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Other publicly traded equity securities | Arcus | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Deferred compensation plan | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Liabilities: | ||
Deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Foreign currency derivative contracts | ||
Assets: | ||
Foreign currency derivative contracts | 242 | 80 |
Liabilities: | ||
Foreign currency derivative contracts | 2 | 5 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Total | 249 | 317 |
Fair Value, Measurements, Recurring | Level 3 | MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 249 | 317 |
Fair Value, Measurements, Recurring | Level 3 | U.S. treasury securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government agencies securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage and asset-backed securities | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other publicly traded equity securities | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other publicly traded equity securities | Galapagos | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other publicly traded equity securities | Arcus | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Deferred compensation plan | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Liabilities: | ||
Deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign currency derivative contracts | ||
Assets: | ||
Foreign currency derivative contracts | 0 | 0 |
Liabilities: | ||
Foreign currency derivative contracts | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
In-process research and development impairment | $ 0 | $ 0 | $ 2,700 | $ 0 | ||
Fair Value, Nonrecurring | In Process Research And Development Trodelvy For HR+/HER2- | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
In-process research and development impairment | $ 2,700 | 2,700 | ||||
Market value | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term and long-term debt | 21,200 | 21,200 | $ 28,600 | |||
Market value | Level 3 | Immunomedics | Fair Value, Nonrecurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Future royalties | 1,100 | 1,100 | 1,300 | |||
Carrying value | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term and long-term debt, carrying values | 24,100 | 24,100 | 25,600 | |||
Carrying value | Level 3 | Immunomedics | Fair Value, Nonrecurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Future royalties | $ 1,100 | $ 1,100 | $ 1,100 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of Contingent Consideration (Details) - Contingent Consideration - MYR GmbH - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 306 | $ 334 | $ 317 | $ 0 |
Additions | 0 | 0 | 0 | 341 |
Changes in valuation assumptions | (30) | 0 | (19) | 0 |
Effect of foreign exchange remeasurement | (27) | (7) | (49) | (13) |
Ending balance | $ 249 | $ 328 | $ 249 | $ 328 |
AVAILABLE-FOR-SALE DEBT SECUR_3
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Summary of Available-for-Sale Debt Securities at Estimated Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 2,331 | $ 2,501 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (40) | (4) |
Estimated Fair Value | 2,290 | 2,497 |
U.S. treasury securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 456 | 408 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | (1) |
Estimated Fair Value | 448 | 407 |
U.S. government agencies securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 19 | 4 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 19 | 4 |
Non-U.S. government securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 44 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 44 | 50 |
Certificates of deposit | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 65 | 249 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 65 | 249 |
Corporate debt securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 1,397 | 1,365 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (30) | (2) |
Estimated Fair Value | 1,367 | 1,363 |
Residential mortgage and asset-backed securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 350 | 425 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (1) |
Estimated Fair Value | $ 347 | $ 424 |
AVAILABLE-FOR-SALE DEBT SECUR_4
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Abstract] | |||||
Aggregate fair value of investments, unrealized losses | $ 2,100,000,000 | $ 2,100,000,000 | $ 2,000,000,000 | ||
Allowance for credit losses | 0 | 0 | |||
Equity investments and equity method investments without readily determinable fair values | 415,000,000 | 415,000,000 | $ 338,000,000 | ||
Net unrealized loss on investment of equity securities | $ 197,000,000 | $ 142,000,000 | 596,000,000 | $ 667,000,000 | |
Equity Securities Donation | Gilead Foundation | |||||
Related Party Transaction [Line Items] | |||||
Donation expense | $ 85,000,000 | $ 212,000,000 |
AVAILABLE-FOR-SALE DEBT SECUR_5
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Summary of the Balance Sheet Classification of Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Available-for-Sale Debt Securities | ||
Total | $ 2,290 | $ 2,497 |
Cash and cash equivalents | ||
Available-for-Sale Debt Securities | ||
Total | 47 | 6 |
Short-term marketable debt securities | ||
Available-for-Sale Debt Securities | ||
Total | 961 | 1,182 |
Long-term marketable debt securities | ||
Available-for-Sale Debt Securities | ||
Total | $ 1,282 | $ 1,309 |
AVAILABLE-FOR-SALE DEBT SECUR_6
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Summary of Available-for-Sale Debt Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Within one year | $ 1,018 | |
After one year through five years | 1,298 | |
After five years through ten years | 7 | |
After ten years | 7 | |
Amortized Cost | 2,331 | $ 2,501 |
Fair Value | ||
Within one year | 1,008 | |
After one year through five years | 1,268 | |
After five years through ten years | 7 | |
After ten years | 7 | |
Estimated Fair Value | $ 2,290 | $ 2,497 |
AVAILABLE-FOR-SALE DEBT SECUR_7
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Summary of Classification of Equity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | $ 3,316 | $ 3,661 |
Prepaid and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 578 | 885 |
Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 899 | 1,197 |
Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 4,793 | $ 5,743 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||||
Derivative, notional amount | $ 3,000,000,000 | $ 3,000,000,000 | $ 2,900,000,000 | ||
Discontinuances of cash flow hedges | $ 0 | $ 0 | $ 0 | $ 0 | |
Maximum | |||||
Derivative [Line Items] | |||||
Maturities of derivative instruments | 18 months | ||||
Time estimate for gains (losses) to be reclassified from AOCI to product sales | 12 months |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Classification and Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 242 | $ 80 |
Derivative Liabilities | 2 | 5 |
Derivatives designated as hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 232 | 80 |
Derivative Liabilities | 0 | 5 |
Derivatives designated as hedges: | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 215 | 75 |
Derivatives designated as hedges: | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 4 |
Derivatives designated as hedges: | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 17 | 5 |
Derivatives designated as hedges: | Other long-term obligations | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 1 |
Derivatives not designated as hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 10 | 0 |
Derivative Liabilities | 2 | 0 |
Derivatives not designated as hedges: | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 10 | 0 |
Derivatives not designated as hedges: | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 2 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Effect of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gains (losses) recognized in AOCI | $ 162 | $ 42 | $ 292 | $ 104 |
Gains (losses) reclassified from AOCI into Product sales | 48 | (21) | 115 | (69) |
Gains (losses) recognized in Other income (expense), net | $ 6 | $ 5 | $ 70 | $ 24 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Potential Effect of Offsetting Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative assets | ||
Gross Amounts of Assets/Liabilities Presented on the Condensed Consolidated Balance Sheets | $ 242 | $ 80 |
Derivative Financial Instruments | (2) | (4) |
Cash Collateral Received/Pledged | 0 | 0 |
Net Amount (Legal Offset) | 240 | 76 |
Derivative liabilities | ||
Gross Amounts of Assets/Liabilities Presented on the Condensed Consolidated Balance Sheets | 2 | 5 |
Derivative Financial Instruments | (2) | (4) |
Cash Collateral Received/Pledged | 0 | 0 |
Net Amount (Legal Offset) | $ 0 | $ 1 |
ACQUISITIONS, COLLABORATIONS _2
ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 20, 2022 USD ($) | Dec. 21, 2021 USD ($) | Mar. 04, 2021 USD ($) | Mar. 04, 2021 EUR (€) | May 27, 2020 | Apr. 30, 2022 USD ($) | Jan. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Nov. 18, 2021 program | Mar. 04, 2021 EUR (€) | |
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Acquired in-process research and development expenses | $ 448 | $ 65 | $ 786 | $ 270 | |||||||||||
Dragonfly Therapeutics Collaboration Agreement | Dragonfly Therapeutics, Inc. | |||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Payments to acquire in process research and development | $ 300 | ||||||||||||||
Additional payments to acquire in process research and development | 15 | ||||||||||||||
Maximum potential future milestone payments | 630 | 630 | |||||||||||||
Arcus | Arcus Collaboration Agreement and Stock Purchase Agreements | |||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Opt-in term | 10 years | ||||||||||||||
Number of clinical stage programs with exercised options | program | 3 | ||||||||||||||
Payments to opt-in the collaborative agreement | $ 725 | $ 725 | |||||||||||||
Arcus | Arcus Collaboration Agreement | |||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Additional option fee on fourth, sixth and eighth anniversaries | $ 100 | ||||||||||||||
MYR GmbH | |||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Acquisition consideration transferred | $ 1,600 | € 1,300 | |||||||||||||
Cash paid for acquisition | 1,200 | € 1,000 | |||||||||||||
Liability for MYR GmbH (“MYR”) contingent consideration | 249 | 249 | |||||||||||||
Fair value of contingent liability | $ 341 | ||||||||||||||
Measurement period adjustments | $ (18) | $ (18) | |||||||||||||
MYR GmbH | Maximum | |||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Liability for MYR GmbH (“MYR”) contingent consideration | € | € 300 | ||||||||||||||
MiroBio Ltd. | |||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Cash consideration | $ 414 | ||||||||||||||
Acquired in-process research and development expenses | $ 389 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 8,332 | $ 8,332 |
Ending balance | 8,314 | |
MYR GmbH | ||
Goodwill [Roll Forward] | ||
Measurement period adjustments | $ (18) | $ (18) |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets [Line Items] | ||||||
Aggregate amortization expense related to finite-lived intangible assets | $ 445 | $ 441 | $ 1,300 | $ 1,300 | ||
In-process research and development impairment | $ 0 | $ 0 | 2,700 | $ 0 | ||
In Process Research And Development Trodelvy For HR+/HER2- | ||||||
Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets, fair value | $ 6,100 | |||||
In Process Research And Development Trodelvy For HR+/HER2- | Fair Value, Nonrecurring | ||||||
Intangible Assets [Line Items] | ||||||
In-process research and development impairment | 2,700 | 2,700 | ||||
MYR GmbH | ||||||
Intangible Assets [Line Items] | ||||||
Decrease in goodwill | $ 18 | $ 18 | ||||
Immunomedics | In Process Research And Development Trodelvy For HR+/HER2- | ||||||
Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | $ 8,800 | |||||
Immunomedics | In Process Research And Development Trodelvy For HR+/HER2- | Discount Rate | ||||||
Intangible Assets [Line Items] | ||||||
Discount rate, measurement input | 6.75% |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 25,919 | $ 25,915 |
Accumulated Amortization | (9,700) | (8,381) |
Foreign Currency Translation Adjustment | 1 | 1 |
Net Carrying Amount | 16,220 | 17,535 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Gross Carrying Amount | 39,139 | 41,835 |
Accumulated Amortization | (9,700) | (8,381) |
Foreign Currency Translation Adjustment | 1 | 1 |
Net Carrying Amount | 29,440 | 33,455 |
Indefinite-lived assets – IPR&D | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 13,220 | 15,920 |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 13,220 | 15,920 |
Intangible asset – sofosbuvir | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,720 | 10,720 |
Accumulated Amortization | (6,176) | (5,651) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 4,544 | 5,069 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | (6,176) | (5,651) |
Intangible asset – axicabtagene ciloleucel | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,110 | 7,110 |
Accumulated Amortization | (1,806) | (1,501) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 5,304 | 5,609 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | (1,806) | (1,501) |
Intangible asset – Trodelvy | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,630 | 5,630 |
Accumulated Amortization | (856) | (507) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 4,774 | 5,123 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | (856) | (507) |
Intangible asset – Hepcludex | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 845 | 845 |
Accumulated Amortization | (136) | (72) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 709 | 773 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | (136) | (72) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,614 | 1,610 |
Accumulated Amortization | (726) | (650) |
Foreign Currency Translation Adjustment | 1 | 1 |
Net Carrying Amount | 889 | 961 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | $ (726) | $ (650) |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining three months) | $ 445 | |
2023 | 1,781 | |
2024 | 1,781 | |
2025 | 1,776 | |
2026 | 1,768 | |
Thereafter | 8,669 | |
Net Carrying Amount | $ 16,220 | $ 17,535 |
OTHER FINANCIAL INFORMATION - A
OTHER FINANCIAL INFORMATION - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | ||
Accounts receivable | $ 5,006 | $ 5,278 |
Less: chargebacks | 514 | 671 |
Less: cash discounts and other | 86 | 67 |
Less: allowances for credit losses | 51 | 47 |
Accounts receivable, net | $ 4,354 | $ 4,493 |
OTHER FINANCIAL INFORMATION - I
OTHER FINANCIAL INFORMATION - Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | ||
Raw materials | $ 1,133 | $ 1,112 |
Work in process | 430 | 590 |
Finished goods | 1,039 | 1,032 |
Total | 2,602 | 2,734 |
Inventories | 1,463 | 1,618 |
Other long-term assets | $ 1,138 | $ 1,116 |
OTHER FINANCIAL INFORMATION -_2
OTHER FINANCIAL INFORMATION - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | ||
Compensation and employee benefits | $ 752 | $ 927 |
Income taxes payable | 902 | 539 |
Allowance for sales returns | 392 | 499 |
Accrual for settlement related to bictegravir litigation | 0 | 1,250 |
Other accrued liabilities | 1,819 | 2,930 |
Total | $ 3,865 | $ 6,145 |
DEBT AND CREDIT FACILITIES - Su
DEBT AND CREDIT FACILITIES - Summary of Debt Carrying Amount (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt, net | $ 25,223 | $ 26,695 |
Less: Current portion of long-term debt and other obligations, net | 2,270 | 1,516 |
Total Long-term debt, net | $ 22,953 | 25,179 |
Senior Notes | 1.95% Senior Unsecured Notes Due March 2022 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.95% | |
Total debt, net | $ 0 | 500 |
Senior Notes | 3.25% Senior Unsecured Notes Due September 2022 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.25% | |
Total debt, net | $ 0 | 999 |
Senior Notes | 2.50% Senior Unsecured Notes Due September 2023 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.50% | |
Total debt, net | $ 749 | 748 |
Senior Notes | 0.75% Senior Unsecured Notes Due September 2023 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.75% | |
Total debt, net | $ 1,498 | 1,496 |
Senior Notes | 3.70% Senior Unsecured Notes Due April 2024 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.70% | |
Total debt, net | $ 1,748 | 1,747 |
Senior Notes | 3.50% Senior Unsecured Notes Due February 2025 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.50% | |
Total debt, net | $ 1,748 | 1,747 |
Senior Notes | 3.65% Senior Unsecured Notes Due March 2026 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.65% | |
Total debt, net | $ 2,741 | 2,739 |
Senior Notes | 2.95% Senior Unsecured Notes Due March 2027 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.95% | |
Total debt, net | $ 1,247 | 1,247 |
Senior Notes | 1.20% Senior Unsecured Notes Due October 2027 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.20% | |
Total debt, net | $ 747 | 746 |
Senior Notes | 1.65% Senior Unsecured Notes Due October 2030 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.65% | |
Total debt, net | $ 993 | 993 |
Senior Notes | 4.60% Senior Unsecured Notes Due September 2035 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.60% | |
Total debt, net | $ 992 | 992 |
Senior Notes | 4.00% Senior Unsecured Notes Due September 2036 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4% | |
Total debt, net | $ 742 | 742 |
Senior Notes | 2.60% Senior Unsecured Notes Due October 2040 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.60% | |
Total debt, net | $ 987 | 987 |
Senior Notes | 5.65% Senior Unsecured Notes Due December 2041 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.65% | |
Total debt, net | $ 996 | 996 |
Senior Notes | 4.80% Senior Unsecured Notes Due April 2044 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.80% | |
Total debt, net | $ 1,736 | 1,736 |
Senior Notes | 4.50% Senior Unsecured Notes Due February 2045 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.50% | |
Total debt, net | $ 1,733 | 1,733 |
Senior Notes | 4.75% Senior Unsecured Notes Due March 2046 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.75% | |
Total debt, net | $ 2,221 | 2,220 |
Senior Notes | 4.15% Senior Unsecured Notes Due March 2047 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.15% | |
Total debt, net | $ 1,728 | 1,727 |
Senior Notes | 2.80% Senior Unsecured Notes Due October 2050 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.80% | |
Total debt, net | $ 1,477 | 1,476 |
Senior Notes and Medium-Term Notes | ||
Debt Instrument [Line Items] | ||
Total senior unsecured notes | 24,084 | 25,571 |
Liability related to the sale of future royalties | ||
Debt Instrument [Line Items] | ||
Total debt, net | $ 1,139 | $ 1,124 |
DEBT AND CREDIT FACILITIES - Ad
DEBT AND CREDIT FACILITIES - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2022 | Feb. 28, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 1,500,000,000 | $ 3,750,000,000 | ||||
Debt issued | $ 0 | 0 | ||||
Senior Notes | 1.95% Senior Unsecured Notes Due March 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 500,000,000 | |||||
Senior Notes | 3.25% Senior Unsecured Notes Due September 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 1,000,000,000 | |||||
Line of Credit | Revolving Credit Facility | Credit Facility Due June 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Amounts outstanding under revolving credit facilities | 0 | 0 | $ 0 | |||
Maximum borrowing capacity | $ 2,500,000,000 | $ 2,500,000,000 | $ 2,500,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 9 Months Ended | |||||
Mar. 31, 2022 patent | Feb. 28, 2022 USD ($) | Oct. 31, 2021 patent | Dec. 31, 2019 USD ($) opposingParty patent | Sep. 30, 2022 USD ($) plaintiff lawsuit | Dec. 31, 2021 USD ($) | Apr. 30, 2020 agreement | |
Loss Contingencies [Line Items] | |||||||
Accrued litigation | $ | $ 0 | $ 1,250,000,000 | |||||
Settlement payment | $ | $ 1,250,000,000 | ||||||
Number of patents challenged, scenario two | 2 | ||||||
Number of patents challenged, scenario one | 4 | ||||||
Number of additional patents allegedly infringed | 2 | ||||||
Number of patents challenged | 3 | ||||||
Number of patents | 5 | ||||||
Juno Therapeutics, Inc. and Sloan Kettering Cancer Center | |||||||
Loss Contingencies [Line Items] | |||||||
Damages awarded | $ | $ 585,000,000 | ||||||
Running royalty rate from October 2017 | 27.60% | ||||||
Enhancement rate on past damages | 50% | ||||||
Running royalty rate on future sales | 27.60% | ||||||
Pre-Exposure Prophylaxis | |||||||
Loss Contingencies [Line Items] | |||||||
Number of material transfer agreements | agreement | 4 | ||||||
European Patent Claims 2032 Expiration | |||||||
Loss Contingencies [Line Items] | |||||||
Number of parties appealed | opposingParty | 3 | ||||||
Product Liability | |||||||
Loss Contingencies [Line Items] | |||||||
Number of class action lawsuits | lawsuit | 1 | ||||||
Number of plaintiffs involved | plaintiff | 26,000 |
STOCKHOLDERS' EQUITY - Repurcha
STOCKHOLDERS' EQUITY - Repurchases of Common Stock (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2020 | Mar. 31, 2016 | |
Class of Stock [Line Items] | ||||||
Remaining authorized repurchase amount under stock repurchase programs | $ 5,700,000,000 | $ 5,700,000,000 | ||||
Shares repurchased and retired (in shares) | 2.9 | 2.1 | 9.5 | 7.5 | ||
Amount | $ 180,000,000 | $ 145,000,000 | $ 604,000,000 | $ 497,000,000 | ||
2016 Stock Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Authorized amount under stock repurchase program | $ 12,000,000,000 | |||||
2020 Stock Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Authorized amount under stock repurchase program | $ 5,000,000,000 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 20,215 | $ 19,710 | $ 21,064 | $ 18,221 |
Net unrealized gain (loss) | 114 | 74 | ||
Reclassifications to net income | (99) | 60 | ||
Other comprehensive income | 11 | 35 | 15 | 134 |
Ending balance | 21,057 | 21,471 | 21,057 | 21,471 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 87 | 39 | 83 | (60) |
Other comprehensive income | 11 | 35 | 15 | 134 |
Ending balance | 98 | 74 | 98 | 74 |
Foreign Currency Translation, Net of Tax | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 13 | 51 | ||
Net unrealized gain (loss) | (102) | (15) | ||
Reclassifications to net income | 0 | 0 | ||
Other comprehensive income | (102) | (15) | ||
Ending balance | (89) | 36 | (89) | 36 |
Unrealized Gains and Losses on Available-for-Sale Debt Securities, Net of Tax | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (4) | 2 | ||
Net unrealized gain (loss) | (38) | (3) | ||
Reclassifications to net income | 1 | 0 | ||
Other comprehensive income | (37) | (3) | ||
Ending balance | (41) | (1) | (41) | (1) |
Unrealized Gains and Losses on Cash Flow Hedges, Net of Tax | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 74 | (113) | ||
Net unrealized gain (loss) | 254 | 92 | ||
Reclassifications to net income | (100) | 60 | ||
Other comprehensive income | 154 | 152 | ||
Ending balance | $ 228 | $ 39 | $ 228 | $ 39 |
NET INCOME PER SHARE ATTRIBUT_3
NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS - Schedule of the Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Gilead | $ 1,789 | $ 2,592 | $ 2,952 | $ 5,843 |
Shares used in per share calculation - basic (in shares) | 1,255 | 1,256 | 1,255 | 1,256 |
Dilutive effect of stock options and equivalents (in shares) | 6 | 6 | 5 | 6 |
Shares used in per share calculation - diluted (in shares) | 1,261 | 1,262 | 1,261 | 1,262 |
Net income per share attributable to Gilead common stockholders - basic (in dollars per share) | $ 1.43 | $ 2.06 | $ 2.35 | $ 4.65 |
Net income per share attributable to Gilead common stockholders - diluted (in dollars per share) | $ 1.42 | $ 2.05 | $ 2.34 | $ 4.63 |
NET INCOME PER SHARE ATTRIBUT_4
NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 17 | 14 | 17 | 15 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Contingency [Line Items] | ||||
Income before income taxes | $ 2,432 | $ 3,438 | $ 3,783 | $ 7,519 |
Income tax expense | $ (646) | $ (852) | $ (850) | $ (1,694) |
Effective tax rate | 26.60% | 24.80% | 22.50% | 22.50% |
Non-deductible IPR&D charges | $ 389 | $ 389 |