NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS

Basic net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding during the period. Diluted net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding and other dilutive securities outstanding during the period. The potential dilutive shares of our common stock resulting from the assumed exercise of outstanding stock options, PSUs and the assumed exercise of warrants relating to our convertible senior notes, including the May 2013 Notes, the May 2014 Notes and the May 2016 Notes are determined under the treasury stock method.

Because the principal amount of the May 2013 Notes, May 2014 Notes and May 2016 Notes have been or will be settled in cash, only the conversion spread relating to the respective notes is included in our calculation of diluted net income per share attributable to Gilead common stockholders. Our common stock resulting from the assumed settlement of the conversion spread of the May 2014 Notes and May 2016 Notes has a dilutive effect when the average market price of our common stock during the period exceeds the conversion price of $22.54 for the May 2014 Notes and $22.71 for the May 2016 Notes. Warrants relating to the May 2014 Notes and May 2016 Notes have a dilutive effect when the average market price of our common stock during the period exceeds the warrants' exercise price of $28.38 for the May 2014 Notes and $30.05 for the May 2016 Notes.

Our May 2013 Notes and May 2014 Notes matured and as a result, we have only included their impact for the periods they were outstanding on our net income per share calculations for the periods shown. Our common stock resulting from the assumed settlement of the conversion spread of the May 2013 Notes and May 2014 Notes had a dilutive effect when the average market price of our common stock during the period exceeded the conversion price of $19.05 for the May 2013 Notes and $22.54 for the May 2014 Notes. Warrants related to our May 2013 Notes and May 2014 Notes settled and as a result, we have only included their impact for the period they were outstanding on our net income per share calculations. The related warrants had a dilutive effect when the average market price of our common stock during the period exceeded the warrants' exercise price of $26.95 for the May 2013 Notes and $28.38 for the May 2014 Notes.

We have excluded stock options to purchase approximately 1 million weighted-average shares of our common stock that were outstanding during 2014, less than 1 million weighted-average shares during 2013 and 5 million weighted-average shares during 2012 in the computation of diluted net income per share attributable to Gilead common stockholders because their effect was antidilutive.

The following table is a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share attributable to Gilead common stockholders (in millions):



	Year Ended December 31,
	2014		2013		2012
Net income attributable to Gilead	$	12,101	$	3,075	$	2,592
Shares used in per share calculation — basic	1,522		1,529		1,515
Effect of dilutive securities:
Stock options and equivalents	33		40		33
Conversion spread related to the May 2013 Notes	—		4		11
Conversion spread related to the May 2014 Notes	2		27		11
Conversion spread related to the May 2016 Notes	28		32		11
Warrants related to the May Notes	62		63		2
Shares used in per share calculation — diluted	1,647		1,695		1,583
Net income per share attributable to Gilead common stockholders — basic	$	7.95	$	2.01	$	1.71
Net income per share attributable to Gilead common stockholders — diluted	$	7.35	$	1.81	$	1.64