Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $0.001 per share | |
Trading Symbol(s) | GILD | |
Name of each exchange on which registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,247,352,689 | |
Entity Central Index Key | 0000882095 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 4,936 | $ 5,412 |
Short-term marketable debt securities | 936 | 973 |
Accounts receivable, net | 4,162 | 4,777 |
Inventories | 1,576 | 1,507 |
Prepaid and other current assets | 1,846 | 1,774 |
Total current assets | 13,456 | 14,443 |
Property, plant and equipment, net | 5,479 | 5,475 |
Long-term marketable debt securities | 1,327 | 1,245 |
Intangible assets, net | 28,348 | 28,894 |
Goodwill | 8,314 | 8,314 |
Other long-term assets | 4,952 | 4,800 |
Total assets | 61,876 | 63,171 |
Current liabilities: | ||
Accounts payable | 627 | 905 |
Accrued rebates | 3,477 | 3,479 |
Other current liabilities | 4,140 | 4,580 |
Current portion of long-term debt and other obligations, net | 2,283 | 2,273 |
Total current liabilities | 10,528 | 11,237 |
Long-term debt, net | 22,956 | 22,957 |
Long-term income taxes payable | 3,775 | 3,916 |
Deferred tax liability | 2,401 | 2,673 |
Other long-term obligations | 1,277 | 1,179 |
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; 1,248 and 1,247 shares issued and outstanding, respectively | 1 | 1 |
Additional paid-in capital | 5,793 | 5,550 |
Accumulated other comprehensive income (loss) | (20) | 2 |
Retained earnings | 15,223 | 15,687 |
Total Gilead stockholders’ equity | 20,997 | 21,240 |
Noncontrolling interest | (58) | (31) |
Total stockholders’ equity | 20,939 | 21,209 |
Total liabilities and stockholders’ equity | $ 61,876 | $ 63,171 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 5,600,000,000 | 5,600,000,000 |
Common stock, issued (in shares) | 1,248,000,000 | 1,247,000,000 |
Common stock, outstanding (in shares) | 1,248,000,000 | 1,247,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Total revenues | $ 6,352 | $ 6,590 |
Costs and expenses: | ||
Cost of goods sold | 1,401 | 1,424 |
Research and development expenses | 1,447 | 1,178 |
Acquired in-process research and development expenses | 481 | 8 |
In-process research and development impairment | 0 | 2,700 |
Selling, general and administrative expenses | 1,319 | 1,083 |
Total costs and expenses | 4,647 | 6,393 |
Operating income | 1,705 | 197 |
Interest expense | (230) | (238) |
Other income (expense), net | (174) | (111) |
Income (loss) before income taxes | 1,300 | (152) |
Income tax benefit (expense) | (316) | 164 |
Net income | 985 | 12 |
Net loss attributable to noncontrolling interest | 26 | 7 |
Net income attributable to Gilead | $ 1,010 | $ 19 |
Basic earnings per share attributable to Gilead (in dollars per share) | $ 0.81 | $ 0.02 |
Shares used in basic earnings per share attributable to Gilead calculation (in shares) | 1,248 | 1,255 |
Diluted earnings per share attributable to Gilead (in dollars per share) | $ 0.80 | $ 0.02 |
Shares used in diluted earnings per share attributable to Gilead calculation (in shares) | 1,261 | 1,262 |
Product sales | ||
Revenues: | ||
Total revenues | $ 6,306 | $ 6,534 |
Royalty, contract and other revenues | ||
Revenues: | ||
Total revenues | $ 46 | $ 56 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 985 | $ 12 |
Other comprehensive loss, net: | ||
Net foreign currency translation gain (loss) | (5) | 5 |
Available-for-sale debt securities: | ||
Net unrealized gain (loss), net of tax impact of $0 and $0, respectively | 8 | (19) |
Reclassifications to net income, net of tax impact of $0 and $0, respectively | 1 | 0 |
Net change | 9 | (19) |
Cash flow hedges: | ||
Net unrealized gain (loss), net of tax impact of $(1) and $3, respectively | (6) | 24 |
Reclassification to net income, net of tax impact of $3 and $3, respectively | (21) | (20) |
Net change | (26) | 4 |
Other comprehensive loss, net | (22) | (10) |
Comprehensive income, net | 962 | 2 |
Comprehensive loss attributable to noncontrolling interest, net | 26 | 7 |
Comprehensive income attributable to Gilead, net | $ 988 | $ 9 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Available-for-sale debt securities: | ||
Tax impact of net unrealized gain (loss) | $ 0 | $ 0 |
Tax impact of reclassifications to net income | 0 | 0 |
Cash flow hedges: | ||
Tax impact of net unrealized gain (loss) | (1) | 3 |
Tax impact of reclassifications to net income | $ 3 | $ 3 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - 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, 2021 | 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) | 12 | 19 | (7) | |||
Other comprehensive loss, net | (10) | (10) | ||||
Issuances under employee stock purchase plan (in shares) | 1 | |||||
Issuances under employee stock purchase plan | 73 | 73 | ||||
Issuance under equity incentive plans (in shares) | 7 | |||||
Issuances under equity incentive plans | 21 | 21 | ||||
Stock-based compensation | 131 | 131 | ||||
Repurchases of common stock under repurchase programs (in shares) | (6) | |||||
Repurchases of common stock under repurchase programs | (353) | (19) | (334) | |||
Repurchases of common stock for employee tax withholding under equity incentive plans (in shares) | (2) | |||||
Repurchases of common stock for employee tax withholding under equity incentive plans | (91) | (91) | ||||
Dividends declared | (932) | (932) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 1,255 | |||||
Ending balance at Mar. 31, 2022 | $ 19,915 | $ 1 | 4,867 | 73 | 14,986 | (12) |
Beginning balance (in shares) at Dec. 31, 2022 | 1,247 | 1,247 | ||||
Beginning balance at Dec. 31, 2022 | $ 21,209 | $ 1 | 5,550 | 2 | 15,687 | (31) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 985 | 1,010 | (26) | |||
Other comprehensive loss, net | (22) | (22) | ||||
Issuances under employee stock purchase plan (in shares) | 1 | |||||
Issuances under employee stock purchase plan | 67 | 67 | ||||
Issuance under equity incentive plans (in shares) | 6 | |||||
Issuances under equity incentive plans | 27 | 27 | ||||
Stock-based compensation | 165 | 165 | ||||
Repurchases of common stock under repurchase programs (in shares) | (5) | |||||
Repurchases of common stock under repurchase programs | $ (400) | (17) | (383) | |||
Repurchases of common stock for employee tax withholding under equity incentive plans (in shares) | (2) | |||||
Repurchases of common stock for employee tax withholding under equity incentive plans | $ (135) | (135) | ||||
Dividends declared | $ (957) | (957) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 1,248 | 1,248 | ||||
Ending balance at Mar. 31, 2023 | $ 20,939 | $ 1 | $ 5,793 | $ (20) | $ 15,223 | $ (58) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Average price per share (in dollars per share) | $ 82.29 | $ 63.78 |
Common stock, dividends declared (in dollars per share) | $ 0.75 | $ 0.73 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities: | ||
Net income | $ 985 | $ 12 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 94 | 80 |
Amortization expense | 546 | 445 |
Stock-based compensation expense | 165 | 130 |
Acquired in-process research and development expenses | 481 | 8 |
In-process research and development impairment | 0 | 2,700 |
Deferred income taxes | (303) | (651) |
Net loss from equity securities | 256 | 96 |
Other | 63 | 182 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 635 | 699 |
Inventories | (227) | 53 |
Prepaid expenses and other | 26 | (54) |
Accounts payable | (272) | (91) |
Income tax assets and liabilities, net | (161) | (112) |
Accrued and other liabilities | (543) | (1,657) |
Net cash provided by operating activities | 1,744 | 1,840 |
Investing Activities: | ||
Purchases of marketable debt securities | (527) | (613) |
Proceeds from sales of marketable debt securities | 167 | 119 |
Proceeds from maturities of marketable debt securities | 324 | 506 |
Acquisitions, including in-process research and development, net of cash acquired | (551) | (807) |
Purchases of equity securities | (125) | (28) |
Capital expenditures | (109) | (247) |
Other | (5) | 0 |
Net cash used in investing activities | (826) | (1,070) |
Financing Activities: | ||
Proceeds from issuances of common stock | 97 | 94 |
Repurchases of common stock under repurchase programs | (400) | (352) |
Repayments of debt and other obligations | 0 | (500) |
Payments of dividends | (969) | (945) |
Other | (135) | (91) |
Net cash used in financing activities | (1,406) | (1,794) |
Effect of exchange rate changes on cash and cash equivalents | 13 | (18) |
Net change in cash and cash equivalents | (476) | (1,042) |
Cash and cash equivalents at beginning of period | 5,412 | 5,338 |
Cash and cash equivalents at end of period | $ 4,936 | $ 4,296 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe 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, 2022, included in our Annual Report on Form 10-K filed with 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. Beginning in the first quarter of 2023, we reclassified changes in income taxes prepaid and receivable from Prepaid expenses and other to combine with changes in income taxes payable as Income tax assets and liabilities, net within Operating Activities on our Condensed Consolidated Statements of Cash Flows. We believe this presentation assists users of the financial statements to better understand cash flow movements. Prior periods have been revised to reflect this change, resulting in a reclassification of $34 million from Prepaid expenses and other 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 | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenues The following table summarizes our Total revenues: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (in millions) U.S. Europe Other International Total U.S. Europe Other International Total Product sales: HIV Biktarvy $ 2,161 $ 304 $ 212 $ 2,677 $ 1,706 $ 261 $ 184 $ 2,151 Complera/Eviplera 14 22 3 39 17 24 4 44 Descovy 395 25 29 449 311 32 31 374 Genvoya 417 55 29 501 457 77 48 582 Odefsey 230 76 11 317 232 96 11 339 Stribild 20 6 2 28 22 8 3 32 Truvada 23 3 5 32 28 4 6 38 Revenue share - Symtuza (1) 98 36 4 138 86 44 3 132 Other HIV (2) 4 1 3 9 5 4 5 14 Total HIV 3,364 528 298 4,190 2,862 550 295 3,707 Oncology Cell Therapy Tecartus 59 27 3 89 47 15 1 63 Yescarta 210 121 28 359 125 77 9 211 Total Cell Therapy 269 148 31 448 172 92 10 274 Trodelvy 162 54 6 222 119 25 2 146 Total Oncology 431 202 37 670 292 117 11 420 Liver Disease Chronic hepatitis C virus (“HCV”) Ledipasvir/Sofosbuvir (3) 3 7 5 15 13 4 18 35 Sofosbuvir/Velpatasvir (4) 204 90 90 385 162 83 85 330 Other HCV (5) 24 18 4 45 24 8 2 34 Total HCV 232 114 99 445 199 95 105 399 Chronic hepatitis B virus (“HBV”) / hepatitis delta virus (“HDV”) Vemlidy 87 9 103 199 80 9 111 200 Viread (1) 6 14 19 — 6 17 23 Other HBV/HDV (6) — 11 — 11 — 13 — 13 Total HBV/HDV 86 26 117 230 80 28 128 235 Total Liver Disease 318 140 217 675 279 123 233 635 Veklury 252 111 209 573 801 304 430 1,535 Other AmBisome 6 60 49 116 25 66 53 144 Letairis 32 — — 32 43 — — 43 Other (7) 30 12 9 51 26 15 9 50 Total Other 69 72 58 199 94 81 62 236 Total product sales 4,434 1,053 819 6,306 4,329 1,174 1,031 6,534 Royalty, contract and other revenues 18 26 2 46 27 27 3 56 Total revenues $ 4,452 $ 1,079 $ 821 $ 6,352 $ 4,355 $ 1,202 $ 1,033 $ 6,590 _______________________________ (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, Sunlenca 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 March 31, (as a percentage of total revenues) 2023 2022 AmerisourceBergen Corporation 18 % 19 % Cardinal Health, Inc. 26 % 23 % McKesson Corporation 20 % 20 % 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 March 31, (in millions) 2023 2022 Revenue share with Janssen and royalties for licenses of intellectual property $ 192 $ 184 Changes in estimates $ 160 $ 230 Contract Balances The following table summarizes our contract balances: (in millions) March 31, 2023 December 31, 2022 Contract assets (1) $ 164 $ 171 Contract liabilities (2) $ 93 $ 102 ________________________________ (1) Consists of unbilled amounts primarily from arrangements where the licensing of intellectual property is the only or predominant performance obligation. (2) Generally results from receipt of advance payment before our performance under the contract. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS 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: March 31, 2023 December 31, 2022 (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 $ 344 $ — $ — $ 344 $ 410 $ — $ — $ 410 U.S. government agencies securities — 155 — 155 — 35 — 35 Non-U.S. government securities — 23 — 23 — 34 — 34 Certificates of deposit — 90 — 90 — 54 — 54 Corporate debt securities — 1,379 — 1,379 — 1,427 — 1,427 Residential mortgage and asset-backed securities — 335 — 335 — 333 — 333 Equity securities: Money market funds 3,175 — — 3,175 3,831 — — 3,831 Equity investment in Galapagos NV (“Galapagos”) 639 — — 639 736 — — 736 Equity investment in Arcus Biosciences, Inc. (“Arcus”) 252 — — 252 286 — — 286 Other publicly traded equity securities 235 — — 235 175 — — 175 Deferred compensation plan 249 — — 249 220 — — 220 Foreign currency derivative contracts — 32 — 32 — 60 — 60 Total $ 4,895 $ 2,014 $ — $ 6,909 $ 5,658 $ 1,943 $ — $ 7,600 Liabilities: Liability for MYR GmbH (“MYR”) contingent consideration $ — $ — $ 277 $ 277 $ — $ — $ 275 $ 275 Deferred compensation plan 249 — — 249 220 — — 220 Foreign currency derivative contracts — 49 — 49 — 42 — 42 Total $ 249 $ 49 $ 277 $ 575 $ 220 $ 42 $ 275 $ 538 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 by 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 $22.6 billion and $21.9 billion as of March 31, 2023 and December 31, 2022, respectively, and the carrying value was $24.1 billion as of March 31, 2023 and December 31, 2022. Level 3 Inputs Contingent Consideration Liability In connection with our first quarter 2021 acquisition of MYR, we are subject to a potential contingent consideration payment of up to €300 million, subject to customary adjustments, which is revalued each reporting period using probability-weighted scenarios for U.S. Food and Drug Administration (“FDA”) approval of Hepcludex until the related contingency is resolved. The following table summarizes the change in fair value of our contingent consideration liability: Three Months Ended March 31, (in millions) 2023 2022 Beginning balance $ 275 $ 317 Changes in valuation assumptions (1) (3) 10 Effect of foreign exchange remeasurement (2) 5 (6) Ending balance $ 277 $ 322 ________________________________ (1) Included in Research and development expenses on our Condensed Consolidated Statements of Income. The change in 2023 primarily related to updated expected payment dates and the change in 2022 primarily related to updated probability rate estimates. (2) Included in Other income (expense), net on our Condensed Consolidated Statements of Income. Liability Related to Future Royalties We recorded a liability related to 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 value of the liability related to future royalties was $1.1 billion as of March 31, 2023 and December 31, 2022, and the carrying value was $1.1 billion as of March 31, 2023 and December 31, 2022. Nonrecurring Fair Value Measurements During the three months ended March 31, 2022, we recorded a partial impairment charge of $2.7 billion related to certain acquired in-process research and development (“IPR&D”) assets. See Note 7. Intangible Assets for additional information. There were no indicators of impairment to IPR&D assets noted during the three months ended March 31, 2023. Fair Value Level Transfers There were no transfers between Level 1, Level 2 and Level 3 in the periods presented. |
AVAILABLE-FOR-SALE DEBT SECURIT
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 (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 $ 346 $ — $ (2) $ 344 $ 415 $ — $ (5) $ 410 U.S. government agencies securities 156 — — 155 36 — — 35 Non-U.S. government securities 23 — — 23 34 — — 34 Certificates of deposit 90 — — 90 54 — — 54 Corporate debt securities 1,400 1 (21) 1,379 1,452 — (26) 1,427 Residential mortgage and asset-backed securities 336 — (2) 335 335 — (3) 333 Total $ 2,350 $ 2 $ (26) $ 2,326 $ 2,325 $ 1 $ (34) $ 2,293 The following table summarizes information related to available-for-sale debt securities that have been in a continuous unrealized loss position, classified by length of time: March 31, 2023 Less Than 12 Months 12 Months or Longer Total (in millions) Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ (1) $ 89 $ (2) $ 177 $ (2) $ 266 U.S. government agencies securities — 108 — — — 108 Non-U.S. government securities — 23 — — — 23 Corporate debt securities (6) 451 (16) 651 (21) 1,102 Residential mortgage and asset-backed securities (1) 192 (1) 53 (2) 245 Total $ (8) $ 862 $ (18) $ 880 $ (26) $ 1,743 December 31, 2022 Less Than 12 Months 12 Months or Longer Total (in millions) Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ (2) $ 174 $ (3) $ 206 $ (5) $ 379 U.S. government agencies securities — 21 — — — 21 Non-U.S. government securities — 31 — 3 — 34 Corporate debt securities (17) 774 (8) 439 (26) 1,213 Residential mortgage and asset-backed securities (2) 205 (1) 56 (3) 261 Total $ (22) $ 1,204 $ (12) $ 705 $ (34) $ 1,908 No allowance for credit losses was recognized for investments with unrealized losses as of March 31, 2023 as 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. 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 following table summarizes the classification of our available-for-sale debt securities in our Condensed Consolidated Balance Sheets: (in millions) March 31, 2023 December 31, 2022 Cash and cash equivalents $ 63 $ 75 Short-term marketable debt securities 936 973 Long-term marketable debt securities 1,327 1,245 Total $ 2,326 $ 2,293 The following table summarizes our available-for-sale debt securities by contractual maturity: March 31, 2023 (in millions) Amortized Cost Fair Value Within one year $ 1,006 $ 999 After one year through five years 1,325 1,308 After five years through ten years 14 14 After ten years 5 5 Total $ 2,350 $ 2,326 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: (in millions) March 31, 2023 December 31, 2022 Cash and cash equivalents $ 3,175 $ 3,831 Prepaid and other current assets (1) 394 473 Other long-term assets (1) 982 943 Total $ 4,551 $ 5,248 ________________________________ (1) 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. Our investment in Galapagos is classified in Other long-term assets due to certain lock-up provisions in our amended subscription agreement with them, which extend to August 2024. Other Equity Securities Equity method investments and other equity investments without readily determinable fair values were $333 million and $423 million as of March 31, 2023 and December 31, 2022, respectively, and were excluded from the table above. These amounts 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 $256 million and $96 million for the three months ended March 31, 2023, and 2022, respectively, and were included in Other income (expense), net on our Condensed Consolidated Statements of Income. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2023 | |
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 that are denominated in a non-functional currency are not designated as hedges. 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. We held foreign currency exchange contracts with outstanding notional amounts of $2.9 billion as of March 31, 2023 and $3.0 billion as of December 31, 2022. While all our derivative contracts allow us the right to offset assets and liabilities, we have presented amounts in our Condensed Consolidated Balance Sheets on a gross basis. The following table summarizes the classification and fair values of derivative instruments, including the potential effect of offsetting: March 31, 2023 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 $ 30 Other current liabilities $ 35 Foreign currency exchange contracts Other long-term assets 1 Other long-term obligations 3 Total derivatives designated as hedges 31 38 Derivatives not designated as hedges: Foreign currency exchange contracts Prepaid and other current assets 1 Other current liabilities 11 Total derivatives not designated as hedges 1 11 Total derivatives presented gross on the Condensed Consolidated Balance Sheets $ 32 $ 49 Gross amounts not offset on the Condensed Consolidated Balance Sheets: Derivative financial instruments (24) (24) Cash collateral received / pledged — — Net amount (legal offset) $ 7 $ 25 December 31, 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 $ 59 Other current liabilities $ 26 Foreign currency exchange contracts Other long-term assets 1 Other long-term obligations 9 Total derivatives designated as hedges 59 35 Derivatives not designated as hedges: Foreign currency exchange contracts Prepaid and other current assets 1 Other current liabilities 7 Total derivatives not designated as hedges 1 7 Total derivatives presented gross on the Condensed Consolidated Balance Sheets $ 60 $ 42 Gross amounts not offset on the Condensed Consolidated Balance Sheets: Derivative financial instruments (36) (36) Cash collateral received / pledged — — Net amount (legal offset) $ 25 $ 7 The following table summarizes the effect of our derivative contracts on our Condensed Consolidated Financial Statements: Three Months Ended March 31, (in millions) 2023 2022 Derivatives designated as hedges: Net gain (loss) recognized in Accumulated other comprehensive income $ (6) $ 28 Net gain reclassified from Accumulated other comprehensive income into Product sales $ 24 $ 22 Derivatives not designated as hedges: Net gain (loss) recognized in Other income (expense), net $ (3) $ 19 The majority of gains and losses related to the hedged forecasted transactions reported in Accumulated other comprehensive income (loss) as of March 31, 2023 are expected to be reclassified to Product sales within 12 months. There were no discontinuances of cash flow hedges for the three months ended March 31, 2023 and 2022. The cash flow effects of our derivative contracts for the three months ended March 31, 2023 and 2022 were included within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows. |
ACQUISITIONS, COLLABORATIONS AN
ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS | ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTSWe 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. Acquisitions Tmunity In February 2023, we closed an agreement to acquire Tmunity Therapeutics, Inc. (“Tmunity”), a clinical-stage, private biotechnology company focused on next-generation CAR T-therapies and technologies. Under the terms of the agreement, we acquired all outstanding shares of Tmunity other than those already owned by Gilead for approximately $300 million in cash consideration. As a result, Tmunity became our wholly-owned subsidiary. We accounted for the transaction as an asset acquisition and recorded a $244 million charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Income during the three months ended March 31, 2023. The remaining purchase price relates to various other assets acquired and liabilities assumed, consisting primarily of deferred tax assets. Under the agreement, the former shareholders of Tmunity and the University of Pennsylvania are eligible to receive a mix of up to approximately $1.0 billion in potential future payments upon achievement of certain development, regulatory and sales-based milestones, as well as royalty payments on sales. Collaborations and Other Arrangements Arcellx In January 2023, we closed an agreement to enter into a global strategic collaboration with Arcellx, Inc. (“Arcellx”) to co-develop and co-commercialize Arcellx’s lead late-stage product candidate, CART-ddBCMA, for the treatment of patients with relapsed or refractory multiple myeloma, and potential future next-generation autologous and non-autologous products. In conjunction with the collaboration agreement, we recorded a $212 million charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Income during the three months ended March 31, 2023, primarily related to an upfront payment, as well as a $115 million equity investment, which is subject to lock-up provisions until July 2024, in Other long-term assets on our Condensed Consolidated Balance Sheets. The companies will share development, clinical trial, and commercialization costs for CART-ddBCMA and will jointly commercialize the product and split U.S. profits 50/50. Outside the U.S., we will commercialize the product and Arcellx will receive royalties on sales. Arcellx is eligible to receive performance-based development and regulatory milestone payments of up to $835 million related to CART-ddBCMA, a potential future next-generation autologous product and a potential future non-autologous product, with further commercial milestone payments, profit split payments on co-promote products and royalties on at least a portion of worldwide net sales, depending on whether Arcellx opts-in to co-promote on the future products. If additional future products are developed, Arcellx would be eligible to receive additional milestone payments, profit split payments on co-promote products and royalties on at least a portion of worldwide net sales, depending on whether Arcellx opts-in to co-promote these additional future products as well. Pionyr In June 2020, we entered into a transaction with Pionyr Immunotherapeutics (“Pionyr”), a privately held company pursuing novel biology in the field of immuno-oncology, which included entry into two separate agreements, one related to the initial acquisition of a 49.9% equity interest in Pionyr and the other providing us with the exclusive option, subject to certain terms and conditions, to acquire the remaining outstanding capital stock of Pionyr (“Pionyr Merger and Option Agreements”). The exclusive option had an estimated fair value of $70 million based on a probability-weighted option pricing model using unobservable inputs, which are considered Level 3 under the fair value measurement and disclosure guidance. In March 2023, we waived our exclusive option to acquire Pionyr and certain other rights under the Pionyr Merger and Option Agreements and recorded a $70 million charge to Other income (expense), net on our Condensed Consolidated Statements of Income. We will retain our equity interest in Pionyr as well as the right, under certain conditions, to review new data as it emerges. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The following table summarizes our Intangible assets, net: March 31, 2023 December 31, 2022 (in millions) Gross Accumulated Foreign Currency Translation Adjustment Net Gross Accumulated Foreign Currency Translation Adjustment Net Finite-lived assets: Intangible asset – sofosbuvir $ 10,720 $ (6,525) $ — $ 4,195 $ 10,720 $ (6,350) $ — $ 4,370 Intangible asset – axicabtagene ciloleucel 7,110 (2,009) — 5,101 7,110 (1,908) — 5,202 Intangible asset – Trodelvy (1) 11,730 (1,192) — 10,538 5,630 (973) — 4,657 Intangible asset – Hepcludex 845 (179) — 666 845 (158) — 687 Other 1,489 (762) 1 728 1,489 (733) 1 758 Total finite-lived assets 31,894 (10,667) 1 21,228 25,794 (10,121) 1 15,674 Indefinite-lived assets – IPR&D (1) 7,120 — — 7,120 13,220 — — 13,220 Total intangible assets $ 39,014 $ (10,667) $ 1 $ 28,348 $ 39,014 $ (10,121) $ 1 $ 28,894 _______________________________ (1) In February 2023, FDA granted approval of Trodelvy for use in adult patients with unresectable locally advanced or metastatic HR+/HER2- breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting. Accordingly, the related IPR&D intangible asset of $6.1 billion was reclassified to finite-lived assets in the first quarter of 2023. Amortization Expense Aggregate amortization expense related to finite-lived intangible assets was $546 million and $445 million for the three months ended March 31, 2023 and 2022, 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 March 31, 2023: (in millions) Amount 2023 (remaining nine months) $ 1,794 2024 2,392 2025 2,386 2026 2,378 2027 2,378 Thereafter 9,900 Total $ 21,228 Impairment Assessments No indicators of impairment were noted for the three months ended March 31, 2023 and 2022, except as described under “2022 IPR&D Impairment” below. 2022 IPR&D Impairment In connection with our acquisition of Immunomedics in 2020, we allocated a portion of the purchase price to acquired IPR&D intangible assets. Approximately $8.8 billion was assigned to IPR&D intangible assets related to Trodelvy for treatment of patients with hormone receptor-positive, human epidermal growth factor receptor 2-negative (“HR+/HER2-”) breast cancer. In March 2022, we received data from the Phase 3 TROPiCS-02 study evaluating Trodelvy in patients with HR+/HER2- metastatic breast cancer who have received prior endocrine therapy, cyclin-dependent kinase 4/6 inhibitors and two to four lines of chemotherapy (“third-line plus patients”). Based on our evaluation of the study results, and in connection with the preparation of the financial statements for the first quarter, we updated our estimate of the fair value of our HR+/HER2- IPR&D intangible asset to $6.1 billion as of March 31, 2022. Our estimate of fair value used a probability-weighted income approach that discounts expected future cash flows to the present value, which requires the use of Level 3 fair value measurements and inputs, including estimated revenues, costs, and probability of technical and regulatory success. The expected cash flows included cash flows from HR+/HER2- metastatic breast cancer for third-line plus patients and patients in earlier lines of therapy which are the subject of separate clinical studies. Our revised discounted cash flows were lower primarily due to a delay in launch timing for third-line plus patients which caused a decrease in our market share assumptions based on the expected competitive environment. As of March 2022, there were no changes in our plans or assumptions related to our estimated cash flows for patients in the earlier lines of therapy. We used a discount rate of 6.75% which is based on the estimated weighted-average cost of capital for companies with profiles similar to ours and represents the rate that market participants would use to value the intangible assets. We determined the revised estimated fair value was below the carrying value of the asset and, as a result, we recognized a partial impairment charge of $2.7 billion in In-process research and development impairment on our Condensed Consolidated Statements of Income during the three months ended March 31, 2022. |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Other Financial Information [Abstract] | |
OTHER FINANCIAL INFORMATION | OTHER FINANCIAL INFORMATION Accounts receivable, net The following table summarizes our Accounts receivable, net: (in millions) March 31, 2023 December 31, 2022 Accounts receivable $ 4,933 $ 5,464 Less: allowances for chargebacks 634 549 Less: allowances for cash discounts and other 81 83 Less: allowances for credit losses 56 55 Accounts receivable, net $ 4,162 $ 4,777 The majority of our trade accounts receivable arises from product sales in the U.S. and Europe. Inventories The following table summarizes our Inventories: (in millions) March 31, 2023 December 31, 2022 Raw materials $ 1,157 $ 1,177 Work in process 570 577 Finished goods 1,283 1,066 Total $ 3,010 $ 2,820 Reported as: Inventories $ 1,576 $ 1,507 Other long-term assets (1) 1,434 1,313 Total $ 3,010 $ 2,820 _______________________________ (1) Amounts primarily consist of raw materials. Other current liabilities The following table summarizes the components of Other current liabilities: (in millions) March 31, 2023 December 31, 2022 Compensation and employee benefits $ 707 $ 1,018 Income taxes payable 1,138 959 Allowance for sales returns 444 422 Other 1,851 2,182 Other current liabilities $ 4,140 $ 4,580 Accumulated other comprehensive income (loss) The following table summarizes the changes in Accumulated other comprehensive income (loss) by component, net of tax: (in millions) Foreign Currency Translation 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, 2022 $ 2 $ (33) $ 33 $ 2 Net unrealized gain (loss) (5) 8 (6) (2) Reclassifications to net income — 1 (21) (20) Net current period other comprehensive income (loss) (5) 9 (26) (22) Balance as of March 31, 2023 $ (3) $ (24) $ 7 $ (20) (in millions) Foreign Currency Translation 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) 5 (19) 24 10 Reclassifications to net income — — (20) (20) Net current period other comprehensive income (loss) 5 (19) 4 (10) Balance as of March 31, 2022 $ 18 $ (23) $ 78 $ 73 |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 December 31, 2022 Senior Unsecured September 2016 September 2023 2.50% $ 750 $ 749 Senior Unsecured September 2020 September 2023 0.75% 1,499 1,498 Senior Unsecured March 2014 April 2024 3.70% 1,749 1,748 Senior Unsecured November 2014 February 2025 3.50% 1,748 1,748 Senior Unsecured September 2015 March 2026 3.65% 2,742 2,742 Senior Unsecured September 2016 March 2027 2.95% 1,247 1,247 Senior Unsecured September 2020 October 2027 1.20% 747 747 Senior Unsecured September 2020 October 2030 1.65% 994 993 Senior Unsecured September 2015 September 2035 4.60% 993 993 Senior Unsecured September 2016 September 2036 4.00% 743 742 Senior Unsecured September 2020 October 2040 2.60% 988 988 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% 1,734 1,733 Senior Unsecured September 2015 March 2046 4.75% 2,221 2,221 Senior Unsecured September 2016 March 2047 4.15% 1,728 1,728 Senior Unsecured September 2020 October 2050 2.80% 1,477 1,477 Total senior unsecured notes 24,092 24,088 Liability related to future royalties 1,146 1,141 Total debt, net 25,238 25,229 Less: Current portion of long-term debt and other obligations, net 2,283 2,273 Total Long-term debt, net $ 22,956 $ 22,957 Senior Unsecured Notes We are required to comply with certain covenants under our note indentures governing our senior unsecured notes. As of March 31, 2023, we were not in violation of any covenants. Revolving Credit Facility As of March 31, 2023 and December 31, 2022, 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 on our Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 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, sold under the brand name 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, and in March 2023, a three-judge panel of the Court of Appeals for the Federal Circuit affirmed the PTAB’s decision. The litigation in the U.S. District Court was dismissed in April 2023 after the University represented to the Court that it did not intend to pursue further appeals. 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 subsequently held an appeal hearing in March 2023 and revoked the EP ’190 patent, including the amended patent. We had also initiated proceedings to invalidate the U.K. counterparts of the EP ’190 patent and a related patent, European Patent No. 3,904,365 (the EP ‘365 patent) in the High Court of England & Wales. NuCana had filed counterclaims against us in the High Court of England & Wales alleging patent infringement of the U.K. counterparts and seeking damages and other relief. The U.K. case was heard in early 2023, and the judge issued a judgment in March 2023 invalidating both patents. 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, and a hearing is scheduled for August 2023. Following the revocation of the EP ’190 patent by the EPO, we expect the injunction in Germany to be lifted. 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 FTC and tenofovir disoproxil fumarate (“TDF”) or 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 three material transfer agreements (“MTAs”) related to the research underlying the HHS Patents and two clinical trial agreements (“CTAs”) by the U.S. Centers for Disease Control and Prevention related to PrEP research. A trial for the bifurcated portion of the lawsuit in the Court of Federal Claims was held in June 2022, and in November 2022, the Court determined that the government breached the three MTAs. The Court also made findings of fact relating to the CTAs but declined to issue a decision on breach of the CTAs until after trial in the Delaware District Court. Although we cannot predict with certainty the ultimate outcome of each 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 date for the lawsuit in the Delaware District Court has been set for May 2023. A separate trial at the Court of Federal Claims to determine the damages Gilead is owed based on the government’s breach has yet to be set. 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 products 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. In October 2021, we received a letter from Lupin Ltd. (“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. 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. Trial has not yet been scheduled in the lawsuits against Apotex. Starting in March 2022, we received letters from Lupin, Laurus Labs (“Laurus”) and Cipla Ltd. (“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. The appeal hearing was held in November 2022, but a final decision regarding the validity of the claims has not yet been announced. 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. The hearing for the appeal has been scheduled for September 2023. 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 appeal hearing was held in March 2023 and the EPO affirmed the validity of the TAF hemifumarate patent. The appeal process for sofosbuvir opposition proceedings may take several years . 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 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 sofosbuvir, 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 direct purchasers consisting largely of wholesalers and 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 May 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 25,000 active 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 lawsuit 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. This case was stayed in September 2021 pending final judgment in the Eastern District of Pennsylvania lawsuit filed in March 2017, as discussed above. Health Choice filed a motion to lift the stay, and in April 2023, the trial court granted Health Choice’s motion to lift the stay. Gilead has filed a motion to the Texas Court of Appeals requesting reinstatement of the stay until final judgment in the Eastern District of Pennsylvania lawsuit. 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. The parties have agreed to settle this litigation. A motion seeking preliminary approval of the settlement was granted in February 2023. The court has not yet entered a final order approving the settlement. 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table shows the calculation of basic and diluted earnings per share attributable to Gilead: Three Months Ended March 31, (in millions, except per share amounts) 2023 2022 Net income attributable to Gilead $ 1,010 $ 19 Shares used in basic earnings per share attributable to Gilead calculation 1,248 1,255 Dilutive effect of stock options and equivalents 13 6 Shares used in diluted earnings per share attributable to Gilead calculation 1,261 1,262 Basic earnings per share attributable to Gilead $ 0.81 $ 0.02 Diluted earnings per share attributable to Gilead $ 0.80 $ 0.02 Potential shares of common stock excluded from the computation of diluted earnings per share attributable to Gilead because their effect would have been antidilutive were 3 million and 16 million for the three months ended March 31, 2023, and 2022, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table summarizes our Income tax benefit (expense): Three Months Ended March 31, (in millions, except percentages) 2023 2022 Income (loss) before income taxes $ 1,300 $ (152) Income tax benefit (expense) $ (316) $ 164 Effective tax rate 24.3 % 107.9 % Our effective income tax rate of 24.3% for the three months ended March 31, 2023 differed from the U.S. federal statutory rate of 21% primarily due to $244 million of non-deductible Acquired in-process research and development expenses recorded in connection with our acquisition of Tmunity. Our effective income tax rate of 107.9% for three months ended March 31, 2022 differed from the U.S. federal statutory rate of 21% primarily due to a decrease in state deferred tax liabilities associated with a partial IPR&D impairment charge of $2.7 billion. 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 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) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022, included in our Annual Report on Form 10-K filed with 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. Beginning in the first quarter of 2023, we reclassified changes in income taxes prepaid and receivable from Prepaid expenses and other to combine with changes in income taxes payable as Income tax assets and liabilities, net within Operating Activities on our Condensed Consolidated Statements of Cash Flows. We believe this presentation assists users of the financial statements to better understand cash flow movements. Prior periods have been revised to reflect this change, resulting in a reclassification of $34 million from Prepaid expenses and other 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 | 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 by 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 Liability In connection with our first quarter 2021 acquisition of MYR, we are subject to a potential contingent consideration payment of up to €300 million, subject to customary adjustments, which is revalued each reporting period using probability-weighted scenarios for U.S. Food and Drug Administration (“FDA”) approval of Hepcludex until the related contingency is resolved. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenues | The following table summarizes our Total revenues: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (in millions) U.S. Europe Other International Total U.S. Europe Other International Total Product sales: HIV Biktarvy $ 2,161 $ 304 $ 212 $ 2,677 $ 1,706 $ 261 $ 184 $ 2,151 Complera/Eviplera 14 22 3 39 17 24 4 44 Descovy 395 25 29 449 311 32 31 374 Genvoya 417 55 29 501 457 77 48 582 Odefsey 230 76 11 317 232 96 11 339 Stribild 20 6 2 28 22 8 3 32 Truvada 23 3 5 32 28 4 6 38 Revenue share - Symtuza (1) 98 36 4 138 86 44 3 132 Other HIV (2) 4 1 3 9 5 4 5 14 Total HIV 3,364 528 298 4,190 2,862 550 295 3,707 Oncology Cell Therapy Tecartus 59 27 3 89 47 15 1 63 Yescarta 210 121 28 359 125 77 9 211 Total Cell Therapy 269 148 31 448 172 92 10 274 Trodelvy 162 54 6 222 119 25 2 146 Total Oncology 431 202 37 670 292 117 11 420 Liver Disease Chronic hepatitis C virus (“HCV”) Ledipasvir/Sofosbuvir (3) 3 7 5 15 13 4 18 35 Sofosbuvir/Velpatasvir (4) 204 90 90 385 162 83 85 330 Other HCV (5) 24 18 4 45 24 8 2 34 Total HCV 232 114 99 445 199 95 105 399 Chronic hepatitis B virus (“HBV”) / hepatitis delta virus (“HDV”) Vemlidy 87 9 103 199 80 9 111 200 Viread (1) 6 14 19 — 6 17 23 Other HBV/HDV (6) — 11 — 11 — 13 — 13 Total HBV/HDV 86 26 117 230 80 28 128 235 Total Liver Disease 318 140 217 675 279 123 233 635 Veklury 252 111 209 573 801 304 430 1,535 Other AmBisome 6 60 49 116 25 66 53 144 Letairis 32 — — 32 43 — — 43 Other (7) 30 12 9 51 26 15 9 50 Total Other 69 72 58 199 94 81 62 236 Total product sales 4,434 1,053 819 6,306 4,329 1,174 1,031 6,534 Royalty, contract and other revenues 18 26 2 46 27 27 3 56 Total revenues $ 4,452 $ 1,079 $ 821 $ 6,352 $ 4,355 $ 1,202 $ 1,033 $ 6,590 _______________________________ (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, Sunlenca 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. |
Summary of 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 March 31, (as a percentage of total revenues) 2023 2022 AmerisourceBergen Corporation 18 % 19 % Cardinal Health, Inc. 26 % 23 % McKesson Corporation 20 % 20 % |
Summary of 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 March 31, (in millions) 2023 2022 Revenue share with Janssen and royalties for licenses of intellectual property $ 192 $ 184 Changes in estimates $ 160 $ 230 |
Summary of Contract Balances | The following table summarizes our contract balances: (in millions) March 31, 2023 December 31, 2022 Contract assets (1) $ 164 $ 171 Contract liabilities (2) $ 93 $ 102 ________________________________ (1) Consists of unbilled amounts primarily from arrangements where the licensing of intellectual property is the only or predominant performance obligation. (2) Generally results from receipt of advance payment before our performance under the contract. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 (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 $ 344 $ — $ — $ 344 $ 410 $ — $ — $ 410 U.S. government agencies securities — 155 — 155 — 35 — 35 Non-U.S. government securities — 23 — 23 — 34 — 34 Certificates of deposit — 90 — 90 — 54 — 54 Corporate debt securities — 1,379 — 1,379 — 1,427 — 1,427 Residential mortgage and asset-backed securities — 335 — 335 — 333 — 333 Equity securities: Money market funds 3,175 — — 3,175 3,831 — — 3,831 Equity investment in Galapagos NV (“Galapagos”) 639 — — 639 736 — — 736 Equity investment in Arcus Biosciences, Inc. (“Arcus”) 252 — — 252 286 — — 286 Other publicly traded equity securities 235 — — 235 175 — — 175 Deferred compensation plan 249 — — 249 220 — — 220 Foreign currency derivative contracts — 32 — 32 — 60 — 60 Total $ 4,895 $ 2,014 $ — $ 6,909 $ 5,658 $ 1,943 $ — $ 7,600 Liabilities: Liability for MYR GmbH (“MYR”) contingent consideration $ — $ — $ 277 $ 277 $ — $ — $ 275 $ 275 Deferred compensation plan 249 — — 249 220 — — 220 Foreign currency derivative contracts — 49 — 49 — 42 — 42 Total $ 249 $ 49 $ 277 $ 575 $ 220 $ 42 $ 275 $ 538 |
Summary of Change in Fair Value of Contingent Consideration | The following table summarizes the change in fair value of our contingent consideration liability: Three Months Ended March 31, (in millions) 2023 2022 Beginning balance $ 275 $ 317 Changes in valuation assumptions (1) (3) 10 Effect of foreign exchange remeasurement (2) 5 (6) Ending balance $ 277 $ 322 ________________________________ (1) Included in Research and development expenses on our Condensed Consolidated Statements of Income. The change in 2023 primarily related to updated expected payment dates and the change in 2022 primarily related to updated probability rate estimates. (2) Included in Other income (expense), net on our Condensed Consolidated Statements of Income. |
AVAILABLE-FOR-SALE DEBT SECUR_2
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Securities, Available-for-Sale [Abstract] | |
Summary of Reconciliation of Available-for-Sale Debt Securities from Cost Basis to Fair Value | The following table summarizes our available-for-sale debt securities: March 31, 2023 December 31, 2022 (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 $ 346 $ — $ (2) $ 344 $ 415 $ — $ (5) $ 410 U.S. government agencies securities 156 — — 155 36 — — 35 Non-U.S. government securities 23 — — 23 34 — — 34 Certificates of deposit 90 — — 90 54 — — 54 Corporate debt securities 1,400 1 (21) 1,379 1,452 — (26) 1,427 Residential mortgage and asset-backed securities 336 — (2) 335 335 — (3) 333 Total $ 2,350 $ 2 $ (26) $ 2,326 $ 2,325 $ 1 $ (34) $ 2,293 |
Summary of Available-for-Sale Debt Securities in a Continuous Loss Position | The following table summarizes information related to available-for-sale debt securities that have been in a continuous unrealized loss position, classified by length of time: March 31, 2023 Less Than 12 Months 12 Months or Longer Total (in millions) Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ (1) $ 89 $ (2) $ 177 $ (2) $ 266 U.S. government agencies securities — 108 — — — 108 Non-U.S. government securities — 23 — — — 23 Corporate debt securities (6) 451 (16) 651 (21) 1,102 Residential mortgage and asset-backed securities (1) 192 (1) 53 (2) 245 Total $ (8) $ 862 $ (18) $ 880 $ (26) $ 1,743 December 31, 2022 Less Than 12 Months 12 Months or Longer Total (in millions) Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ (2) $ 174 $ (3) $ 206 $ (5) $ 379 U.S. government agencies securities — 21 — — — 21 Non-U.S. government securities — 31 — 3 — 34 Corporate debt securities (17) 774 (8) 439 (26) 1,213 Residential mortgage and asset-backed securities (2) 205 (1) 56 (3) 261 Total $ (22) $ 1,204 $ (12) $ 705 $ (34) $ 1,908 |
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) March 31, 2023 December 31, 2022 Cash and cash equivalents $ 63 $ 75 Short-term marketable debt securities 936 973 Long-term marketable debt securities 1,327 1,245 Total $ 2,326 $ 2,293 |
Summary of Available-for-Sale Debt Securities by Contractual Maturity | The following table summarizes our available-for-sale debt securities by contractual maturity: March 31, 2023 (in millions) Amortized Cost Fair Value Within one year $ 1,006 $ 999 After one year through five years 1,325 1,308 After five years through ten years 14 14 After ten years 5 5 Total $ 2,350 $ 2,326 |
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: (in millions) March 31, 2023 December 31, 2022 Cash and cash equivalents $ 3,175 $ 3,831 Prepaid and other current assets (1) 394 473 Other long-term assets (1) 982 943 Total $ 4,551 $ 5,248 ________________________________ |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Classification and Fair Value of Derivative Instruments | While all our derivative contracts allow us the right to offset assets and liabilities, we have presented amounts in our Condensed Consolidated Balance Sheets on a gross basis. The following table summarizes the classification and fair values of derivative instruments, including the potential effect of offsetting: March 31, 2023 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 $ 30 Other current liabilities $ 35 Foreign currency exchange contracts Other long-term assets 1 Other long-term obligations 3 Total derivatives designated as hedges 31 38 Derivatives not designated as hedges: Foreign currency exchange contracts Prepaid and other current assets 1 Other current liabilities 11 Total derivatives not designated as hedges 1 11 Total derivatives presented gross on the Condensed Consolidated Balance Sheets $ 32 $ 49 Gross amounts not offset on the Condensed Consolidated Balance Sheets: Derivative financial instruments (24) (24) Cash collateral received / pledged — — Net amount (legal offset) $ 7 $ 25 December 31, 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 $ 59 Other current liabilities $ 26 Foreign currency exchange contracts Other long-term assets 1 Other long-term obligations 9 Total derivatives designated as hedges 59 35 Derivatives not designated as hedges: Foreign currency exchange contracts Prepaid and other current assets 1 Other current liabilities 7 Total derivatives not designated as hedges 1 7 Total derivatives presented gross on the Condensed Consolidated Balance Sheets $ 60 $ 42 Gross amounts not offset on the Condensed Consolidated Balance Sheets: Derivative financial instruments (36) (36) Cash collateral received / pledged — — Net amount (legal offset) $ 25 $ 7 |
Summary of Effect of Foreign Currency Exchange Contracts | The following table summarizes the effect of our derivative contracts on our Condensed Consolidated Financial Statements: Three Months Ended March 31, (in millions) 2023 2022 Derivatives designated as hedges: Net gain (loss) recognized in Accumulated other comprehensive income $ (6) $ 28 Net gain reclassified from Accumulated other comprehensive income into Product sales $ 24 $ 22 Derivatives not designated as hedges: Net gain (loss) recognized in Other income (expense), net $ (3) $ 19 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Finite-Lived Intangible Assets | The following table summarizes our Intangible assets, net: March 31, 2023 December 31, 2022 (in millions) Gross Accumulated Foreign Currency Translation Adjustment Net Gross Accumulated Foreign Currency Translation Adjustment Net Finite-lived assets: Intangible asset – sofosbuvir $ 10,720 $ (6,525) $ — $ 4,195 $ 10,720 $ (6,350) $ — $ 4,370 Intangible asset – axicabtagene ciloleucel 7,110 (2,009) — 5,101 7,110 (1,908) — 5,202 Intangible asset – Trodelvy (1) 11,730 (1,192) — 10,538 5,630 (973) — 4,657 Intangible asset – Hepcludex 845 (179) — 666 845 (158) — 687 Other 1,489 (762) 1 728 1,489 (733) 1 758 Total finite-lived assets 31,894 (10,667) 1 21,228 25,794 (10,121) 1 15,674 Indefinite-lived assets – IPR&D (1) 7,120 — — 7,120 13,220 — — 13,220 Total intangible assets $ 39,014 $ (10,667) $ 1 $ 28,348 $ 39,014 $ (10,121) $ 1 $ 28,894 _______________________________ (1) In February 2023, FDA granted approval of Trodelvy for use in adult patients with unresectable locally advanced or metastatic HR+/HER2- breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting. Accordingly, the related IPR&D intangible asset of $6.1 billion was reclassified to finite-lived assets in the first quarter of 2023. |
Summary of Indefinite-Lived Intangible Assets | The following table summarizes our Intangible assets, net: March 31, 2023 December 31, 2022 (in millions) Gross Accumulated Foreign Currency Translation Adjustment Net Gross Accumulated Foreign Currency Translation Adjustment Net Finite-lived assets: Intangible asset – sofosbuvir $ 10,720 $ (6,525) $ — $ 4,195 $ 10,720 $ (6,350) $ — $ 4,370 Intangible asset – axicabtagene ciloleucel 7,110 (2,009) — 5,101 7,110 (1,908) — 5,202 Intangible asset – Trodelvy (1) 11,730 (1,192) — 10,538 5,630 (973) — 4,657 Intangible asset – Hepcludex 845 (179) — 666 845 (158) — 687 Other 1,489 (762) 1 728 1,489 (733) 1 758 Total finite-lived assets 31,894 (10,667) 1 21,228 25,794 (10,121) 1 15,674 Indefinite-lived assets – IPR&D (1) 7,120 — — 7,120 13,220 — — 13,220 Total intangible assets $ 39,014 $ (10,667) $ 1 $ 28,348 $ 39,014 $ (10,121) $ 1 $ 28,894 _______________________________ (1) In February 2023, FDA granted approval of Trodelvy for use in adult patients with unresectable locally advanced or metastatic HR+/HER2- breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting. Accordingly, the related IPR&D intangible asset of $6.1 billion was reclassified to finite-lived assets in the first quarter of 2023. |
Summary of Estimated Future Amortization Expense | The following table summarizes the estimated future amortization expense associated with our finite-lived intangible assets as of March 31, 2023: (in millions) Amount 2023 (remaining nine months) $ 1,794 2024 2,392 2025 2,386 2026 2,378 2027 2,378 Thereafter 9,900 Total $ 21,228 |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Financial Information [Abstract] | |
Summary of Accounts Receivable | The following table summarizes our Accounts receivable, net: (in millions) March 31, 2023 December 31, 2022 Accounts receivable $ 4,933 $ 5,464 Less: allowances for chargebacks 634 549 Less: allowances for cash discounts and other 81 83 Less: allowances for credit losses 56 55 Accounts receivable, net $ 4,162 $ 4,777 |
Summary of Inventories | The following table summarizes our Inventories: (in millions) March 31, 2023 December 31, 2022 Raw materials $ 1,157 $ 1,177 Work in process 570 577 Finished goods 1,283 1,066 Total $ 3,010 $ 2,820 Reported as: Inventories $ 1,576 $ 1,507 Other long-term assets (1) 1,434 1,313 Total $ 3,010 $ 2,820 _______________________________ (1) Amounts primarily consist of raw materials. |
Summary of Other Accrued Liabilities | The following table summarizes the components of Other current liabilities: (in millions) March 31, 2023 December 31, 2022 Compensation and employee benefits $ 707 $ 1,018 Income taxes payable 1,138 959 Allowance for sales returns 444 422 Other 1,851 2,182 Other current liabilities $ 4,140 $ 4,580 |
Summary of Accumulated Other Comprehensive Income (loss) | The following table summarizes the changes in Accumulated other comprehensive income (loss) by component, net of tax: (in millions) Foreign Currency Translation 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, 2022 $ 2 $ (33) $ 33 $ 2 Net unrealized gain (loss) (5) 8 (6) (2) Reclassifications to net income — 1 (21) (20) Net current period other comprehensive income (loss) (5) 9 (26) (22) Balance as of March 31, 2023 $ (3) $ (24) $ 7 $ (20) (in millions) Foreign Currency Translation 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) 5 (19) 24 10 Reclassifications to net income — — (20) (20) Net current period other comprehensive income (loss) 5 (19) 4 (10) Balance as of March 31, 2022 $ 18 $ (23) $ 78 $ 73 |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 December 31, 2022 Senior Unsecured September 2016 September 2023 2.50% $ 750 $ 749 Senior Unsecured September 2020 September 2023 0.75% 1,499 1,498 Senior Unsecured March 2014 April 2024 3.70% 1,749 1,748 Senior Unsecured November 2014 February 2025 3.50% 1,748 1,748 Senior Unsecured September 2015 March 2026 3.65% 2,742 2,742 Senior Unsecured September 2016 March 2027 2.95% 1,247 1,247 Senior Unsecured September 2020 October 2027 1.20% 747 747 Senior Unsecured September 2020 October 2030 1.65% 994 993 Senior Unsecured September 2015 September 2035 4.60% 993 993 Senior Unsecured September 2016 September 2036 4.00% 743 742 Senior Unsecured September 2020 October 2040 2.60% 988 988 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% 1,734 1,733 Senior Unsecured September 2015 March 2046 4.75% 2,221 2,221 Senior Unsecured September 2016 March 2047 4.15% 1,728 1,728 Senior Unsecured September 2020 October 2050 2.80% 1,477 1,477 Total senior unsecured notes 24,092 24,088 Liability related to future royalties 1,146 1,141 Total debt, net 25,238 25,229 Less: Current portion of long-term debt and other obligations, net 2,283 2,273 Total Long-term debt, net $ 22,956 $ 22,957 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of the Calculation of Basic and Diluted Earnings Per Share | The following table shows the calculation of basic and diluted earnings per share attributable to Gilead: Three Months Ended March 31, (in millions, except per share amounts) 2023 2022 Net income attributable to Gilead $ 1,010 $ 19 Shares used in basic earnings per share attributable to Gilead calculation 1,248 1,255 Dilutive effect of stock options and equivalents 13 6 Shares used in diluted earnings per share attributable to Gilead calculation 1,261 1,262 Basic earnings per share attributable to Gilead $ 0.81 $ 0.02 Diluted earnings per share attributable to Gilead $ 0.80 $ 0.02 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of the Provision for Income Taxes | The following table summarizes our Income tax benefit (expense): Three Months Ended March 31, (in millions, except percentages) 2023 2022 Income (loss) before income taxes $ 1,300 $ (152) Income tax benefit (expense) $ (316) $ 164 Effective tax rate 24.3 % 107.9 % |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification [Line Items] | ||
Reclassification out of prepaid expenses and other | $ 26 | $ (54) |
Reclassification into income tax assets and liabilities, net | $ (161) | (112) |
Reclassification Adjustment | ||
Reclassification [Line Items] | ||
Reclassification out of prepaid expenses and other | 34 | |
Reclassification into income tax assets and liabilities, net | $ 34 |
REVENUES - Summary of Disaggreg
REVENUES - Summary of Disaggregation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 6,352 | $ 6,590 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,452 | 4,355 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,079 | 1,202 |
Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 821 | 1,033 |
Total product sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6,306 | 6,534 |
Total product sales | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,434 | 4,329 |
Total product sales | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,053 | 1,174 |
Total product sales | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 819 | 1,031 |
Total HIV | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,190 | 3,707 |
Total HIV | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3,364 | 2,862 |
Total HIV | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 528 | 550 |
Total HIV | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 298 | 295 |
Biktarvy | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 2,677 | 2,151 |
Biktarvy | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 2,161 | 1,706 |
Biktarvy | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 304 | 261 |
Biktarvy | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 212 | 184 |
Complera/Eviplera | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 39 | 44 |
Complera/Eviplera | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 14 | 17 |
Complera/Eviplera | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 22 | 24 |
Complera/Eviplera | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3 | 4 |
Descovy | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 449 | 374 |
Descovy | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 395 | 311 |
Descovy | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 25 | 32 |
Descovy | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 29 | 31 |
Genvoya | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 501 | 582 |
Genvoya | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 417 | 457 |
Genvoya | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 55 | 77 |
Genvoya | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 29 | 48 |
Odefsey | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 317 | 339 |
Odefsey | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 230 | 232 |
Odefsey | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 76 | 96 |
Odefsey | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 11 | 11 |
Stribild | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 28 | 32 |
Stribild | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 20 | 22 |
Stribild | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6 | 8 |
Stribild | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 2 | 3 |
Truvada | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 32 | 38 |
Truvada | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 23 | 28 |
Truvada | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3 | 4 |
Truvada | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5 | 6 |
Revenue share - Symtuza | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 138 | 132 |
Revenue share - Symtuza | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 98 | 86 |
Revenue share - Symtuza | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 36 | 44 |
Revenue share - Symtuza | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4 | 3 |
Other HIV | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 9 | 14 |
Other HIV | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4 | 5 |
Other HIV | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1 | 4 |
Other HIV | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3 | 5 |
Total Oncology | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 670 | 420 |
Total Oncology | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 431 | 292 |
Total Oncology | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 202 | 117 |
Total Oncology | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 37 | 11 |
Total Cell Therapy | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 448 | 274 |
Total Cell Therapy | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 269 | 172 |
Total Cell Therapy | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 148 | 92 |
Total Cell Therapy | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 31 | 10 |
Tecartus | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 89 | 63 |
Tecartus | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 59 | 47 |
Tecartus | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 27 | 15 |
Tecartus | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3 | 1 |
Yescarta | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 359 | 211 |
Yescarta | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 210 | 125 |
Yescarta | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 121 | 77 |
Yescarta | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 28 | 9 |
Trodelvy | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 222 | 146 |
Trodelvy | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 162 | 119 |
Trodelvy | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 54 | 25 |
Trodelvy | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6 | 2 |
Total Liver Disease | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 675 | 635 |
Total Liver Disease | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 318 | 279 |
Total Liver Disease | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 140 | 123 |
Total Liver Disease | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 217 | 233 |
Total HCV | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 445 | 399 |
Total HCV | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 232 | 199 |
Total HCV | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 114 | 95 |
Total HCV | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 99 | 105 |
Ledipasvir/Sofosbuvir | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 15 | 35 |
Ledipasvir/Sofosbuvir | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3 | 13 |
Ledipasvir/Sofosbuvir | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7 | 4 |
Ledipasvir/Sofosbuvir | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5 | 18 |
Sofosbuvir/Velpatasvir | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 385 | 330 |
Sofosbuvir/Velpatasvir | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 204 | 162 |
Sofosbuvir/Velpatasvir | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 90 | 83 |
Sofosbuvir/Velpatasvir | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 90 | 85 |
Other HCV | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 45 | 34 |
Other HCV | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 24 | 24 |
Other HCV | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 18 | 8 |
Other HCV | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4 | 2 |
Total HBV/HDV | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 230 | 235 |
Total HBV/HDV | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 86 | 80 |
Total HBV/HDV | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 26 | 28 |
Total HBV/HDV | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 117 | 128 |
Vemlidy | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 199 | 200 |
Vemlidy | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 87 | 80 |
Vemlidy | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 9 | 9 |
Vemlidy | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 103 | 111 |
Viread | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 19 | 23 |
Viread | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | (1) | 0 |
Viread | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6 | 6 |
Viread | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 14 | 17 |
Other HBV/HBD | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 11 | 13 |
Other HBV/HBD | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Other HBV/HBD | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 11 | 13 |
Other HBV/HBD | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Veklury | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 573 | 1,535 |
Veklury | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 252 | 801 |
Veklury | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 111 | 304 |
Veklury | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 209 | 430 |
Total Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 199 | 236 |
Total Other | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 69 | 94 |
Total Other | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 72 | 81 |
Total Other | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 58 | 62 |
AmBisome | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 116 | 144 |
AmBisome | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6 | 25 |
AmBisome | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 60 | 66 |
AmBisome | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 49 | 53 |
Letairis | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 32 | 43 |
Letairis | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 32 | 43 |
Letairis | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Letairis | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 51 | 50 |
Other | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 30 | 26 |
Other | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 12 | 15 |
Other | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 9 | 9 |
Royalty, contract and other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 46 | 56 |
Royalty, contract and other revenues | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 18 | 27 |
Royalty, contract and other revenues | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 26 | 27 |
Royalty, contract and other revenues | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 2 | $ 3 |
REVENUES - Summary of Revenues
REVENUES - Summary of Revenues from Major Customers (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AmerisourceBergen Corporation | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenues | 18% | 19% |
Cardinal Health, Inc. | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenues | 26% | 23% |
McKesson Corporation | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenues | 20% | 20% |
REVENUES - Summary of Performan
REVENUES - Summary of Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue share with Janssen and royalties for licenses of intellectual property | $ 192 | $ 184 |
Changes in estimates | $ 160 | $ 230 |
REVENUES - Summary of Contract
REVENUES - Summary of Contract Balances (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 164 | $ 171 |
Contract liabilities | $ 93 | $ 102 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Available-for-sale debt securities | $ 2,326 | $ 2,293 |
Other publicly traded equity securities | ||
Assets: | ||
Total | 4,551 | 5,248 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||
Assets: | ||
Total | 6,909 | 7,600 |
Liabilities: | ||
Total | 575 | 538 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 277 | 275 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Galapagos | ||
Assets: | ||
Marketable equity securities | 639 | 736 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Arcus | ||
Assets: | ||
Marketable equity securities | 252 | 286 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | U.S. treasury securities | ||
Assets: | ||
Available-for-sale debt securities | 344 | 410 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | U.S. government agencies securities | ||
Assets: | ||
Available-for-sale debt securities | 155 | 35 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Non-U.S. government securities | ||
Assets: | ||
Available-for-sale debt securities | 23 | 34 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt securities | 90 | 54 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt securities | 1,379 | 1,427 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Residential mortgage and asset-backed securities | ||
Assets: | ||
Available-for-sale debt securities | 335 | 333 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Money market funds | ||
Assets: | ||
Marketable equity securities | 3,175 | 3,831 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Other publicly traded equity securities | ||
Assets: | ||
Marketable equity securities | 235 | 175 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Deferred compensation plan | ||
Assets: | ||
Marketable equity securities | 249 | 220 |
Liabilities: | ||
Deferred compensation plan | 249 | 220 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Foreign currency derivative contracts | ||
Assets: | ||
Foreign currency derivative contracts | 32 | 60 |
Liabilities: | ||
Foreign currency derivative contracts | 49 | 42 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total | 4,895 | 5,658 |
Liabilities: | ||
Total | 249 | 220 |
Fair Value, Measurements, Recurring | Level 1 | MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Galapagos | ||
Assets: | ||
Marketable equity securities | 639 | 736 |
Fair Value, Measurements, Recurring | Level 1 | Arcus | ||
Assets: | ||
Marketable equity securities | 252 | 286 |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury securities | ||
Assets: | ||
Available-for-sale debt securities | 344 | 410 |
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 | 3,175 | 3,831 |
Fair Value, Measurements, Recurring | Level 1 | Other publicly traded equity securities | ||
Assets: | ||
Marketable equity securities | 235 | 175 |
Fair Value, Measurements, Recurring | Level 1 | Deferred compensation plan | ||
Assets: | ||
Marketable equity securities | 249 | 220 |
Liabilities: | ||
Deferred compensation plan | 249 | 220 |
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 | 2,014 | 1,943 |
Liabilities: | ||
Total | 49 | 42 |
Fair Value, Measurements, Recurring | Level 2 | MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Galapagos | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Arcus | ||
Assets: | ||
Marketable equity securities | 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 | 155 | 35 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government securities | ||
Assets: | ||
Available-for-sale debt securities | 23 | 34 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt securities | 90 | 54 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt securities | 1,379 | 1,427 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage and asset-backed securities | ||
Assets: | ||
Available-for-sale debt securities | 335 | 333 |
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 | 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 | 32 | 60 |
Liabilities: | ||
Foreign currency derivative contracts | 49 | 42 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Total | 277 | 275 |
Fair Value, Measurements, Recurring | Level 3 | MYR GmbH | ||
Liabilities: | ||
Liability for MYR GmbH (“MYR”) contingent consideration | 277 | 275 |
Fair Value, Measurements, Recurring | Level 3 | Galapagos | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Arcus | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
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 | 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) € in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2021 EUR (€) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
In-process research and development impairment | $ 0 | $ 2,700 | ||
Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Maturities of derivative instruments | 18 months | |||
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 | |||
MYR GmbH | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liability for MYR GmbH (“MYR”) contingent consideration | € | € 300 | |||
Market value | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term and long-term debt | $ 22,600 | $ 21,900 | ||
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 | ||
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 | ||
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 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of Contingent Consideration (Details) - Contingent Consideration - MYR GmbH - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 275 | $ 317 |
Changes in valuation assumptions | (3) | 10 |
Effect of foreign exchange remeasurement | 5 | (6) |
Ending balance | $ 277 | $ 322 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 2,350 | $ 2,325 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | (26) | (34) |
Estimated Fair Value | 2,326 | 2,293 |
U.S. treasury securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 346 | 415 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (5) |
Estimated Fair Value | 344 | 410 |
U.S. government agencies securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 156 | 36 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 155 | 35 |
Non-U.S. government securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 23 | 34 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 23 | 34 |
Certificates of deposit | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 90 | 54 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 90 | 54 |
Corporate debt securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 1,400 | 1,452 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (21) | (26) |
Estimated Fair Value | 1,379 | 1,427 |
Residential mortgage and asset-backed securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 336 | 335 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (3) |
Estimated Fair Value | $ 335 | $ 333 |
AVAILABLE-FOR-SALE DEBT SECUR_4
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Summary of Available-for-Sale Debt Securities In Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Gross Unrealized Losses | ||
Less than 12 months | $ (8) | $ (22) |
12 months or longer | (18) | (12) |
Total | (26) | (34) |
Estimated Fair Value | ||
Less than 12 months | 862 | 1,204 |
12 months or longer | 880 | 705 |
Total | 1,743 | 1,908 |
U.S. treasury securities | ||
Gross Unrealized Losses | ||
Less than 12 months | (1) | (2) |
12 months or longer | (2) | (3) |
Total | (2) | (5) |
Estimated Fair Value | ||
Less than 12 months | 89 | 174 |
12 months or longer | 177 | 206 |
Total | 266 | 379 |
U.S. government agencies securities | ||
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | 0 | 0 |
Total | 0 | 0 |
Estimated Fair Value | ||
Less than 12 months | 108 | 21 |
12 months or longer | 0 | 0 |
Total | 108 | 21 |
Non-U.S. government securities | ||
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | 0 | 0 |
Total | 0 | 0 |
Estimated Fair Value | ||
Less than 12 months | 23 | 31 |
12 months or longer | 0 | 3 |
Total | 23 | 34 |
Corporate debt securities | ||
Gross Unrealized Losses | ||
Less than 12 months | (6) | (17) |
12 months or longer | (16) | (8) |
Total | (21) | (26) |
Estimated Fair Value | ||
Less than 12 months | 451 | 774 |
12 months or longer | 651 | 439 |
Total | 1,102 | 1,213 |
Residential mortgage and asset-backed securities | ||
Gross Unrealized Losses | ||
Less than 12 months | (1) | (2) |
12 months or longer | (1) | (1) |
Total | (2) | (3) |
Estimated Fair Value | ||
Less than 12 months | 192 | 205 |
12 months or longer | 53 | 56 |
Total | $ 245 | $ 261 |
AVAILABLE-FOR-SALE DEBT SECUR_5
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |||
Allowance for credit losses | $ 0 | ||
Equity investments and equity method investments without readily determinable fair values | 333,000,000 | $ 423,000,000 | |
Net unrealized loss on investment of equity securities | $ 256,000,000 | $ 96,000,000 |
AVAILABLE-FOR-SALE DEBT SECUR_6
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Summary of the Balance Sheet Classification of Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale Debt Securities | ||
Total | $ 2,326 | $ 2,293 |
Cash and cash equivalents | ||
Available-for-Sale Debt Securities | ||
Total | 63 | 75 |
Short-term marketable debt securities | ||
Available-for-Sale Debt Securities | ||
Total | 936 | 973 |
Long-term marketable debt securities | ||
Available-for-Sale Debt Securities | ||
Total | $ 1,327 | $ 1,245 |
AVAILABLE-FOR-SALE DEBT SECUR_7
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Summary of Available-for-Sale Debt Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Within one year | $ 1,006 | |
After one year through five years | 1,325 | |
After five years through ten years | 14 | |
After ten years | 5 | |
Amortized Cost | 2,350 | $ 2,325 |
Fair Value | ||
Within one year | 999 | |
After one year through five years | 1,308 | |
After five years through ten years | 14 | |
After ten years | 5 | |
Estimated Fair Value | $ 2,326 | $ 2,293 |
AVAILABLE-FOR-SALE DEBT SECUR_8
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES - Summary of Classification of Equity Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | $ 3,175 | $ 3,831 |
Prepaid and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 394 | 473 |
Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 982 | 943 |
Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 4,551 | $ 5,248 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Billions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Derivative, notional amount | $ 2.9 | $ 3 | |
Discontinuances of cash flow hedges | $ 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 | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 32 | $ 60 |
Derivative Liabilities | 49 | 42 |
Derivative financial instruments | (24) | (36) |
Cash collateral received / pledged | 0 | 0 |
Net amount (legal offset) | 7 | 25 |
Derivative financial instruments | (24) | (36) |
Cash collateral received / pledged | 0 | 0 |
Net amount (legal offset) | 25 | 7 |
Derivatives designated as hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 31 | 59 |
Derivative Liabilities | 38 | 35 |
Derivatives designated as hedges: | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 30 | 59 |
Derivatives designated as hedges: | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 35 | 26 |
Derivatives designated as hedges: | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | 1 |
Derivatives designated as hedges: | Other long-term obligations | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3 | 9 |
Derivatives not designated as hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | 1 |
Derivative Liabilities | 11 | 7 |
Derivatives not designated as hedges: | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | 1 |
Derivatives not designated as hedges: | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 11 | $ 7 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Effect of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net gain (loss) recognized in Accumulated other comprehensive income | $ (6) | $ 28 |
Net gain reclassified from Accumulated other comprehensive income into Product sales | 24 | 22 |
Net gain (loss) recognized in Other income (expense), net | $ (3) | $ 19 |
ACQUISITIONS, COLLABORATIONS _2
ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Feb. 22, 2023 | Jan. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 19, 2020 | |
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Acquired in-process research and development expenses | $ 481 | $ 8 | |||
Other income (expense), net | (174) | $ (111) | |||
Arcellx, Inc | Global Strategic Collaboration Agreement | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Acquired in-process research and development expenses | $ 212 | ||||
Maximum potential future milestone payments | 835 | ||||
Payments to acquire equity securities | $ 115 | ||||
Revenue, performance obligation, percentage of U.S. profits | 50% | ||||
Arcellx, Inc | Global Strategic Collaboration Agreement | Arcellx, Inc | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Revenue, performance obligation, percentage of U.S. profits | 50% | ||||
Pionyr Immunotherapeutics Inc | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Ownership percentage | 49.90% | ||||
Estimated fair value | $ 70 | ||||
Other income (expense), net | 70 | ||||
Tmunity Therapeutics | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Cash consideration | $ 300 | ||||
Acquired in-process research and development expenses | 244 | ||||
Maximum potential future milestone payments | $ 1,000 |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 31,894 | $ 25,794 |
Accumulated Amortization | (10,667) | (10,121) |
Foreign Currency Translation Adjustment | 1 | 1 |
Net Carrying Amount | 21,228 | 15,674 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 39,014 | 39,014 |
Accumulated Amortization | (10,667) | (10,121) |
Foreign Currency Translation Adjustment | 1 | 1 |
Net Carrying Amount | 28,348 | 28,894 |
IPR&D | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 7,120 | 13,220 |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 7,120 | 13,220 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Reclassified intangible assets | (6,100) | |
Intangible asset – sofosbuvir | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,720 | 10,720 |
Accumulated Amortization | (6,525) | (6,350) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 4,195 | 4,370 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (6,525) | (6,350) |
Intangible asset – axicabtagene ciloleucel | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,110 | 7,110 |
Accumulated Amortization | (2,009) | (1,908) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 5,101 | 5,202 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (2,009) | (1,908) |
Intangible asset – Trodelvy | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,730 | 5,630 |
Accumulated Amortization | (1,192) | (973) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 10,538 | 4,657 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (1,192) | (973) |
Reclassified intangible assets | 6,100 | |
Intangible asset – Hepcludex | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 845 | 845 |
Accumulated Amortization | (179) | (158) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | 666 | 687 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (179) | (158) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,489 | 1,489 |
Accumulated Amortization | (762) | (733) |
Foreign Currency Translation Adjustment | 1 | 1 |
Net Carrying Amount | 728 | 758 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (762) | $ (733) |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2020 | |
Intangible Assets [Line Items] | |||
Aggregate amortization expense related to finite-lived intangible assets | $ 546 | $ 445 | |
In-process research and development impairment | $ 0 | 2,700 | |
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 | ||
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% |
INTANGIBLE ASSETS - Summary o_2
INTANGIBLE ASSETS - Summary of Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 (remaining nine months) | $ 1,794 | |
2024 | 2,392 | |
2025 | 2,386 | |
2026 | 2,378 | |
2027 | 2,378 | |
Thereafter | 9,900 | |
Net Carrying Amount | $ 21,228 | $ 15,674 |
OTHER FINANCIAL INFORMATION - S
OTHER FINANCIAL INFORMATION - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||
Accounts receivable | $ 4,933 | $ 5,464 |
Less: allowances for chargebacks | 634 | 549 |
Less: allowances for cash discounts and other | 81 | 83 |
Less: allowances for credit losses | 56 | 55 |
Accounts receivable, net | $ 4,162 | $ 4,777 |
OTHER FINANCIAL INFORMATION -_2
OTHER FINANCIAL INFORMATION - Summary of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||
Raw materials | $ 1,157 | $ 1,177 |
Work in process | 570 | 577 |
Finished goods | 1,283 | 1,066 |
Total | 3,010 | 2,820 |
Inventories | 1,576 | 1,507 |
Other long-term assets | $ 1,434 | $ 1,313 |
OTHER FINANCIAL INFORMATION -_3
OTHER FINANCIAL INFORMATION - Summary of Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||
Compensation and employee benefits | $ 707 | $ 1,018 |
Income taxes payable | 1,138 | 959 |
Allowance for sales returns | 444 | 422 |
Other | 1,851 | 2,182 |
Other current liabilities | $ 4,140 | $ 4,580 |
OTHER FINANCIAL INFORMATION -_4
OTHER FINANCIAL INFORMATION - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 21,209 | $ 21,064 |
Net unrealized gain (loss) | (2) | 10 |
Reclassifications to net income | (20) | (20) |
Net current period other comprehensive income (loss) | (22) | (10) |
Ending balance | 20,939 | 19,915 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 2 | 83 |
Net current period other comprehensive income (loss) | (22) | (10) |
Ending balance | (20) | 73 |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 2 | 13 |
Net unrealized gain (loss) | (5) | 5 |
Reclassifications to net income | 0 | 0 |
Net current period other comprehensive income (loss) | (5) | 5 |
Ending balance | (3) | 18 |
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 | (33) | (4) |
Net unrealized gain (loss) | 8 | (19) |
Reclassifications to net income | 1 | 0 |
Net current period other comprehensive income (loss) | 9 | (19) |
Ending balance | (24) | (23) |
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 | 33 | 74 |
Net unrealized gain (loss) | (6) | 24 |
Reclassifications to net income | (21) | (20) |
Net current period other comprehensive income (loss) | (26) | 4 |
Ending balance | $ 7 | $ 78 |
DEBT AND CREDIT FACILITIES - Su
DEBT AND CREDIT FACILITIES - Summary of Debt Carrying Amount (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt, net | $ 25,238 | $ 25,229 |
Less: Current portion of long-term debt and other obligations, net | 2,283 | 2,273 |
Total Long-term debt, net | $ 22,956 | 22,957 |
Senior Notes | 2.50% Senior Unsecured Notes Due September 2023 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.50% | |
Total debt, net | $ 750 | 749 |
Senior Notes | 0.75% Senior Unsecured Notes Due September 2023 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.75% | |
Total debt, net | $ 1,499 | 1,498 |
Senior Notes | 3.70% Senior Unsecured Notes Due April 2024 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.70% | |
Total debt, net | $ 1,749 | 1,748 |
Senior Notes | 3.50% Senior Unsecured Notes Due February 2025 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.50% | |
Total debt, net | $ 1,748 | 1,748 |
Senior Notes | 3.65% Senior Unsecured Notes Due March 2026 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.65% | |
Total debt, net | $ 2,742 | 2,742 |
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 | 747 |
Senior Notes | 1.65% Senior Unsecured Notes Due October 2030 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.65% | |
Total debt, net | $ 994 | 993 |
Senior Notes | 4.60% Senior Unsecured Notes Due September 2035 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.60% | |
Total debt, net | $ 993 | 993 |
Senior Notes | 4.00% Senior Unsecured Notes Due September 2036 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4% | |
Total debt, net | $ 743 | 742 |
Senior Notes | 2.60% Senior Unsecured Notes Due October 2040 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.60% | |
Total debt, net | $ 988 | 988 |
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 | $ 1,734 | 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 | 2,221 |
Senior Notes | 4.15% Senior Unsecured Notes Due March 2047 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.15% | |
Total debt, net | $ 1,728 | 1,728 |
Senior Notes | 2.80% Senior Unsecured Notes Due October 2050 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.80% | |
Total debt, net | $ 1,477 | 1,477 |
Senior Notes and Medium-Term Notes | ||
Debt Instrument [Line Items] | ||
Total senior unsecured notes | 24,092 | 24,088 |
Liability related to future royalties | ||
Debt Instrument [Line Items] | ||
Total debt, net | $ 1,146 | $ 1,141 |
DEBT AND CREDIT FACILITIES - Ad
DEBT AND CREDIT FACILITIES - Additional Information (Details) - Line of Credit - Revolving Credit Facility - Credit Facility Due June 2025 - USD ($) $ in Billions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Amounts outstanding under revolving credit facilities | $ 0 | $ 0 |
Maximum borrowing capacity | $ 2.5 | $ 2.5 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2022 patent | Mar. 31, 2023 plaintiff lawsuit | Apr. 30, 2020 agreement | Dec. 31, 2019 opposingParty | |
Loss Contingencies [Line Items] | ||||
Number of patents challenged | 3 | |||
Number of patents | 5 | |||
Pre-Exposure Prophylaxis | ||||
Loss Contingencies [Line Items] | ||||
Number of material transfer agreements | agreement | 3 | |||
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 | 25,000 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of the Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Gilead | $ 1,010 | $ 19 |
Shares used in basic earnings per share attributable to Gilead calculation | 1,248 | 1,255 |
Dilutive effect of stock options and equivalents | 13 | 6 |
Shares used in diluted earnings per share attributable to Gilead calculation | 1,261 | 1,262 |
Basic earnings per share attributable to Gilead (in dollars per share) | $ 0.81 | $ 0.02 |
Diluted earnings per share attributable to Gilead (in dollars per share) | $ 0.80 | $ 0.02 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 3 | 16 |
INCOME TAXES - Schedule (Detail
INCOME TAXES - Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ 1,300 | $ (152) |
Income tax benefit (expense) | $ (316) | $ 164 |
Effective tax rate | 24.30% | 107.90% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Contingency [Line Items] | ||
Effective tax rate | 24.30% | 107.90% |
Acquired in-process research and development expenses | $ 481 | $ 8 |
Non-deductible IPR&D charges | $ 2,700 | |
Tmunity Therapeutics | ||
Income Tax Contingency [Line Items] | ||
Acquired in-process research and development expenses | $ 244 |