QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
PART I. | ||||
Item 1. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
PART II. | ||||
Item 1. | ||||
Item 1A. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Item 5. | ||||
Item 6. | ||||
PART I. | FINANCIAL INFORMATION |
June 30, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Short-term marketable securities | |||||||
Accounts receivable, net of allowances of $610 and $583, respectively | |||||||
Inventories | |||||||
Prepaid and other current assets | |||||||
Total current assets | |||||||
Property, plant and equipment, net | |||||||
Long-term marketable securities | |||||||
Intangible assets, net | |||||||
Goodwill | |||||||
Other long-term assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | $ | |||||
Accrued government and other rebates | |||||||
Other accrued liabilities | |||||||
Current portion of long-term debt and other obligations, net | |||||||
Total current liabilities | |||||||
Long-term debt, net | |||||||
Long-term income taxes payable | |||||||
Other long-term obligations | |||||||
Commitments and contingencies (Note 11) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, par value $0.001 per share; 5 shares authorized; none outstanding | |||||||
Common stock, par value $0.001 per share; 5,600 shares authorized; 1,267 and 1,282 shares issued and outstanding, respectively | |||||||
Additional paid-in capital | |||||||
Accumulated other comprehensive income | |||||||
Retained earnings | |||||||
Total Gilead stockholders’ equity | |||||||
Noncontrolling interest | |||||||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues: | ||||||||||||||||
Product sales | $ | $ | $ | $ | ||||||||||||
Royalty, contract and other revenues | ||||||||||||||||
Total revenues | ||||||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of goods sold | ||||||||||||||||
Research and development expenses | ||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||
Total costs and expenses | ||||||||||||||||
Income from operations | ||||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other income (expense), net | ||||||||||||||||
Income before provision for income taxes | ||||||||||||||||
Provision for income taxes | ||||||||||||||||
Net income | ||||||||||||||||
Net income (loss) attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||||||
Net income attributable to Gilead | $ | $ | $ | $ | ||||||||||||
Net income per share attributable to Gilead common stockholders - basic | $ | $ | $ | $ | ||||||||||||
Shares used in per share calculation - basic | ||||||||||||||||
Net income per share attributable to Gilead common stockholders - diluted | $ | $ | $ | $ | ||||||||||||
Shares used in per share calculation - diluted |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Net foreign currency translation gain (loss), net of tax | ( | ) | ( | ) | ( | ) | ||||||||||
Available-for-sale debt securities: | ||||||||||||||||
Net unrealized gain (loss), net of tax | ( | ) | ||||||||||||||
Reclassifications to net income, net of tax | ||||||||||||||||
Net change | ( | ) | ||||||||||||||
Cash flow hedges: | ||||||||||||||||
Net unrealized gain, net of tax | ||||||||||||||||
Reclassifications to net income, net of tax | ( | ) | ( | ) | ||||||||||||
Net change | ( | ) | ( | ) | ||||||||||||
Other comprehensive income (loss) | ( | ) | ||||||||||||||
Comprehensive income | ||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||||||
Comprehensive income attributable to Gilead | $ | $ | $ | $ |
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||
Gilead Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ) | |||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Issuances under equity incentive plans | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Repurchases of common stock | ( | ) | — | ( | ) | — | ( | ) | — | ( | ) | ||||||||||||||||
Dividends declared ($0.63 per share) | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | $ |
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||
Gilead Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ) | |||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ||||||||||||||||||||||
Issuances under employee stock purchase plan | — | — | — | — | |||||||||||||||||||||||
Issuances under equity incentive plans | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Repurchases of common stock | ( | ) | — | ( | ) | — | ( | ) | — | ( | ) | ||||||||||||||||
Dividends declared ($1.26 per share) | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Cumulative effect from the adoption of new leases standard (Note 1) | — | — | — | — | — | ||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||
Gilead Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ||||||||||||||||||||||
Issuances under equity incentive plans | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Repurchases of common stock | ( | ) | — | ( | ) | — | ( | ) | — | ( | ) | ||||||||||||||||
Dividends declared ($0.57 per share) | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | $ | $ |
Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||
Gilead Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | ||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ||||||||||||||||||||||
Issuances under employee stock purchase plan | — | — | — | — | |||||||||||||||||||||||
Issuances under equity incentive plans | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Repurchases of common stock | ( | ) | — | ( | ) | — | ( | ) | — | ( | ) | ||||||||||||||||
Dividends declared ($1.14 per share) | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Cumulative effect from the adoption of new accounting standards | — | — | — | ( | ) | — | |||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | $ | $ |
Six Months Ended | ||||||||
June 30, | ||||||||
2019 | 2018 | |||||||
Operating Activities: | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation expense | ||||||||
Amortization expense | ||||||||
Stock-based compensation expense | ||||||||
Deferred income taxes | ( | ) | ||||||
Net unrealized (gains) losses from equity securities | ( | ) | ||||||
Other | ||||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | ( | ) | ||||||
Inventories | ( | ) | ( | ) | ||||
Prepaid expenses and other | ( | ) | ||||||
Accounts payable | ( | ) | ( | ) | ||||
Income taxes payable | ( | ) | ( | ) | ||||
Accrued liabilities and other | ( | ) | ||||||
Net cash provided by operating activities | ||||||||
Investing Activities: | ||||||||
Purchases of marketable debt securities | ( | ) | ( | ) | ||||
Proceeds from sales of marketable debt securities | ||||||||
Proceeds from maturities of marketable debt securities | ||||||||
Capital expenditures | ( | ) | ( | ) | ||||
Other | ( | ) | ( | ) | ||||
Net cash provided by (used in) investing activities | ( | ) | ||||||
Financing Activities: | ||||||||
Proceeds from issuances of common stock | ||||||||
Repurchases of common stock | ( | ) | ( | ) | ||||
Repayments of debt and other obligations | ( | ) | ( | ) | ||||
Payments of dividends | ( | ) | ( | ) | ||||
Other | ( | ) | ( | ) | ||||
Net cash used in financing activities | ( | ) | ( | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ||||||
Net change in cash and cash equivalents | ( | ) | ||||||
Cash and cash equivalents at beginning of period | ||||||||
Cash and cash equivalents at end of period | $ | $ |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | REVENUES |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||
U.S. | Europe | Other International | Total | U.S. | Europe | Other International | Total | |||||||||||||||||||||||||
Product sales: | ||||||||||||||||||||||||||||||||
Atripla | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Biktarvy | ||||||||||||||||||||||||||||||||
Complera/Eviplera | ||||||||||||||||||||||||||||||||
Descovy | ||||||||||||||||||||||||||||||||
Genvoya | ||||||||||||||||||||||||||||||||
Odefsey | ||||||||||||||||||||||||||||||||
Stribild | ||||||||||||||||||||||||||||||||
Truvada | ||||||||||||||||||||||||||||||||
Other HIV(1) | ||||||||||||||||||||||||||||||||
Revenue share – Symtuza(2) | ||||||||||||||||||||||||||||||||
AmBisome | ||||||||||||||||||||||||||||||||
Ledipasvir/Sofosbuvir(3) | ||||||||||||||||||||||||||||||||
Letairis | ||||||||||||||||||||||||||||||||
Ranexa | ||||||||||||||||||||||||||||||||
Sofosbuvir/Velpatasvir(4) | ||||||||||||||||||||||||||||||||
Vemlidy | ||||||||||||||||||||||||||||||||
Viread | ||||||||||||||||||||||||||||||||
Vosevi | ||||||||||||||||||||||||||||||||
Yescarta | ||||||||||||||||||||||||||||||||
Zydelig | ||||||||||||||||||||||||||||||||
Other(5) | ||||||||||||||||||||||||||||||||
Total product sales | ||||||||||||||||||||||||||||||||
Royalty, contract and other revenues | ||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | $ | $ |
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||
U.S. | Europe | Other International | Total | U.S. | Europe | Other International | Total | |||||||||||||||||||||||||
Product sales: | ||||||||||||||||||||||||||||||||
Atripla | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Biktarvy | ||||||||||||||||||||||||||||||||
Complera/Eviplera | ||||||||||||||||||||||||||||||||
Descovy | ||||||||||||||||||||||||||||||||
Genvoya | ||||||||||||||||||||||||||||||||
Odefsey | ||||||||||||||||||||||||||||||||
Stribild | ||||||||||||||||||||||||||||||||
Truvada | ||||||||||||||||||||||||||||||||
Other HIV(1) | ||||||||||||||||||||||||||||||||
Revenue share – Symtuza(2) | ||||||||||||||||||||||||||||||||
AmBisome | ||||||||||||||||||||||||||||||||
Ledipasvir/Sofosbuvir(3) | ||||||||||||||||||||||||||||||||
Letairis | ||||||||||||||||||||||||||||||||
Ranexa | ||||||||||||||||||||||||||||||||
Sofosbuvir/Velpatasvir(4) | ||||||||||||||||||||||||||||||||
Vemlidy | ||||||||||||||||||||||||||||||||
Viread | ||||||||||||||||||||||||||||||||
Vosevi | ||||||||||||||||||||||||||||||||
Yescarta | ||||||||||||||||||||||||||||||||
Zydelig | ||||||||||||||||||||||||||||||||
Other(5) | ||||||||||||||||||||||||||||||||
Total product sales | ||||||||||||||||||||||||||||||||
Royalty, contract and other revenues | ||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | $ | $ |
____________________ | |
Notes: | |
(1) | Includes Emtriva and Tybost |
(2) | 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 UC (Janssen) |
(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 Cayston, Hepsera and Sovaldi |
3. | FAIR VALUE MEASUREMENTS |
• | Level 1 inputs include quoted prices in active markets for identical assets or liabilities; |
• | Level 2 inputs include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. For our marketable securities, we review trading activity and pricing as of the measurement date. When sufficient quoted pricing for identical securities is not available, we use market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data; and |
• | Level 3 inputs include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Our Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||||||||||
U.S. treasury securities | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||||||
U.S. government agencies securities | |||||||||||||||||||||||||||||||
Non-U.S. government securities | |||||||||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||||||||
Residential mortgage and asset-backed securities | |||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||
Money market funds | |||||||||||||||||||||||||||||||
Publicly traded equity securities | |||||||||||||||||||||||||||||||
Deferred compensation plan | |||||||||||||||||||||||||||||||
Foreign currency derivative contracts | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Deferred compensation plan | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Foreign currency derivative contracts | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Cash and cash equivalents | $ | $ | |||||
Prepaid and other current assets | |||||||
Other long-term assets | |||||||
Total | $ | $ |
4. | AVAILABLE-FOR-SALE DEBT SECURITIES |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
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 | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
Certificates of deposit | ||||||||||||||||||||||||||||||||
U.S. government agencies securities | ( | ) | ||||||||||||||||||||||||||||||
Non-U.S. government securities | ( | ) | ||||||||||||||||||||||||||||||
Corporate debt securities | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Residential mortgage and asset-backed securities | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ |
June 30, 2019 | December 31, 2018 | |||||||
Cash and cash equivalents | $ | $ | ||||||
Short-term marketable securities | ||||||||
Long-term marketable securities | ||||||||
Total | $ | $ |
June 30, 2019 | ||||||||
Amortized Cost | Fair Value | |||||||
Within one year | $ | $ | ||||||
After one year through five years | ||||||||
After five years through ten years | ||||||||
After ten years | ||||||||
Total | $ | $ |
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||
U.S. treasury securities | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||
Certificates of deposit | ||||||||||||||||||||||||
U.S. government agencies securities | ||||||||||||||||||||||||
Non-U.S. government securities | ||||||||||||||||||||||||
Corporate debt securities | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Residential mortgage and asset-backed securities | ( | ) | ( | ) | ||||||||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
U.S. treasury securities | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||
U.S. government agencies securities | ( | ) | ( | ) | ||||||||||||||||||||
Non-U.S. government securities | ( | ) | ( | ) | ||||||||||||||||||||
Corporate debt securities | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Residential mortgage and asset-backed securities | ( | ) | ( | ) | ||||||||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ |
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
June 30, 2019 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Classification | Fair Value | Classification | Fair Value | |||||||||
Derivatives designated as hedges: | ||||||||||||
Foreign currency exchange contracts | Other current assets | $ | Other accrued liabilities | $ | ( | ) | ||||||
Foreign currency exchange contracts | Other long-term assets | Other long-term obligations | ( | ) | ||||||||
Total derivatives designated as hedges | ( | ) | ||||||||||
Derivatives not designated as hedges: | ||||||||||||
Foreign currency exchange contracts | Other current assets | Other accrued liabilities | ||||||||||
Total derivatives not designated as hedges | ||||||||||||
Total derivatives | $ | $ | ( | ) |
December 31, 2018 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Classification | Fair Value | Classification | Fair Value | |||||||||
Derivatives designated as hedges: | ||||||||||||
Foreign currency exchange contracts | Other current assets | $ | Other accrued liabilities | $ | ( | ) | ||||||
Foreign currency exchange contracts | Other long-term assets | Other long-term obligations | ||||||||||
Total derivatives designated as hedges | ( | ) | ||||||||||
Derivatives not designated as hedges: | ||||||||||||
Foreign currency exchange contracts | Other current assets | Other accrued liabilities | ||||||||||
Total derivatives not designated as hedges | ||||||||||||
Total derivatives | $ | $ | ( | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Derivatives designated as hedges: | ||||||||||||||||
Gains recognized in AOCI | $ | $ | $ | $ | ||||||||||||
Gains (losses) reclassified from AOCI into product sales | ( | ) | ( | ) | ||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||
Gains (losses) recognized in Other income (expense), net | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Gross Amounts Not Offset on our Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets/Liabilities | Gross Amounts Offset on our Condensed Consolidated Balance Sheets | Amounts of Assets/Liabilities Presented on our Condensed Consolidated Balance Sheets | Derivative Financial Instruments | Cash Collateral Received/ Pledged | Net Amount (Legal Offset) | ||||||||||||||||||
As of June 30, 2019 | ||||||||||||||||||||||||
Derivative assets | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Derivative liabilities | ( | ) | ( | ) | ||||||||||||||||||||
As of December 31, 2018 | ||||||||||||||||||||||||
Derivative assets | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Derivative liabilities | ( | ) | ( | ) |
6. | COLLABORATIVE AND OTHER ARRANGEMENTS |
7. | OTHER FINANCIAL INFORMATION |
June 30, 2019 | December 31, 2018 | |||||||
Raw materials | $ | $ | ||||||
Work in process | ||||||||
Finished goods | ||||||||
Total | $ | $ | ||||||
Reported as: | ||||||||
Inventories | $ | $ | ||||||
Other long-term assets | ||||||||
Total | $ | $ |
June 30, 2019 | December 31, 2018 | |||||||
Compensation and employee benefits | $ | $ | ||||||
Accrued payment for marketing-related rights acquired from Japan Tobacco Inc. | ||||||||
Other accrued expenses | ||||||||
Total | $ | $ |
8. | INTANGIBLE ASSETS |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation Adjustment | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation Adjustment | Net Carrying Amount | |||||||||||||||||||||||||
Finite-lived assets: | ||||||||||||||||||||||||||||||||
Intangible asset - sofosbuvir | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Intangible asset - axicabtagene ciloleucel (DLBCL) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Intangible asset - Ranexa | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Total finite-lived assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Indefinite-lived assets - In Process Research & Development | — | ( | ) | — | ( | ) | ||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Fiscal Year | Amount | |||
2019 (remaining six months) | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total | $ |
9. | DEBT AND CREDIT FACILITIES |
Carrying Amount | ||||||||||||||
Type of Borrowing | Issue Date | Due Date | Interest Rate | June 30, 2019 | December 31, 2018 | |||||||||
Senior Unsecured | September 2017 | March 2019 | 3-month LIBOR + 0.22% | $ | $ | |||||||||
Senior Unsecured | March 2014 | April 2019 | ||||||||||||
Senior Unsecured | September 2017 | September 2019 | ||||||||||||
Senior Unsecured | September 2017 | September 2019 | 3-month LIBOR + 0.25% | |||||||||||
Senior Unsecured | November 2014 | February 2020 | ||||||||||||
Senior Unsecured | September 2015 | September 2020 | ||||||||||||
Senior Unsecured | March 2011 | April 2021 | ||||||||||||
Senior Unsecured | December 2011 | December 2021 | ||||||||||||
Senior Unsecured | September 2016 | March 2022 | ||||||||||||
Senior Unsecured | September 2015 | September 2022 | ||||||||||||
Senior Unsecured | September 2016 | September 2023 | ||||||||||||
Senior Unsecured | March 2014 | April 2024 | ||||||||||||
Senior Unsecured | November 2014 | February 2025 | ||||||||||||
Senior Unsecured | September 2015 | March 2026 | ||||||||||||
Senior Unsecured | September 2016 | March 2027 | ||||||||||||
Senior Unsecured | September 2015 | September 2035 | ||||||||||||
Senior Unsecured | September 2016 | September 2036 | ||||||||||||
Senior Unsecured | December 2011 | December 2041 | ||||||||||||
Senior Unsecured | March 2014 | April 2044 | ||||||||||||
Senior Unsecured | November 2014 | February 2045 | ||||||||||||
Senior Unsecured | September 2015 | March 2046 | ||||||||||||
Senior Unsecured | September 2016 | March 2047 | ||||||||||||
Total debt, net | ||||||||||||||
Less current portion | ||||||||||||||
Total long-term debt, net | $ | $ |
10. | LEASES |
Classification | Amount | |||||
Right-of-use assets, net | Other long-term assets | $ | ||||
Lease liabilities - current | Other accrued liabilities | $ | ||||
Lease liabilities - noncurrent | Other long-term obligations | $ | ||||
Weighted average remaining lease term | ||||||
Weighted average discount rate | % |
Three Months Ended | Six Months Ended | |||||||
June 30, 2019 | June 30, 2019 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ | ||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | $ |
Fiscal Year | Amount | |||
2019 (remaining six months) | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total undiscounted lease payments | ||||
Less: imputed interest | ( | ) | ||
Total discounted lease payments | $ |
Fiscal Year | Amount | |||
2019 | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total minimum lease payments | $ |
11. | COMMITMENTS AND CONTINGENCIES |
12. | STOCKHOLDERS’ EQUITY |
Foreign Currency Translation | Unrealized Gains and Losses on Available-for-Sale Debt Securities | Unrealized Gains and Losses on Cash Flow Hedges | Total | |||||||||||||
Balance at December 31, 2018 | $ | $ | ( | ) | $ | $ | ||||||||||
Net unrealized gain | ||||||||||||||||
Reclassifications to net income | ( | ) | ( | ) | ||||||||||||
Net current period other comprehensive income (loss) | ( | ) | ||||||||||||||
Balance at June 30, 2019 | $ | $ | ( | ) | $ | $ |
Foreign Currency Translation | Unrealized Gains and Losses on Available-for-Sale Debt Securities | Unrealized Gains and Losses on Cash Flow Hedges | Total | |||||||||||||
Balance at December 31, 2017 | $ | $ | $ | ( | ) | $ | ||||||||||
Reclassifications to retained earnings as a result of the adoption of new accounting standards | ( | ) | ( | ) | ||||||||||||
Balance at January 1, 2018 | ( | ) | ( | ) | ( | ) | ||||||||||
Net unrealized gain (loss) | ( | ) | ( | ) | ||||||||||||
Reclassifications to net income | ||||||||||||||||
Net current period other comprehensive income (loss) | ( | ) | ( | ) | ||||||||||||
Balance at June 30, 2018 | $ | $ | ( | ) | $ | $ |
13. | NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income attributable to Gilead | $ | $ | $ | $ | ||||||||||||
Shares used in per share calculation - basic | ||||||||||||||||
Dilutive effect of stock options and equivalents | ||||||||||||||||
Shares used in per share calculation - diluted | ||||||||||||||||
Net income per share attributable to Gilead common stockholders - basic | $ | $ | $ | $ | ||||||||||||
Net income per share attributable to Gilead common stockholders - diluted | $ | $ | $ | $ |
14. | SEGMENT INFORMATION |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
AmerisourceBergen Corp. | % | % | % | % | ||||||||
Cardinal Health, Inc. | % | % | % | % | ||||||||
McKesson Corp. | % | % | % | % |
15. | INCOME TAXES |
16. | SUBSEQUENT EVENT |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Entry into a global research and development collaboration with Galapagos NV (Galapagos). Upon closing of the collaboration with Galapagos, we will make an up-front license and option fee payment of $3.95 billion and an equity investment in Galapagos of approximately $1.1 billion. Under the collaboration agreement, we have option rights to acquire an exclusive license to all current and future clinical programs of Galapagos being developed during the first ten years of the collaboration and, for those programs that entered clinical development prior to the end of the initial option term, for up to an additional three years thereafter. The closing of the collaboration with Galapagos is subject to a number of closing conditions, including antitrust clearances required by the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder and receipt of merger control approval from the Austrian Federal Competition Authority. |
• | Entry into collaboration and/or license agreements with Renown Institute for Health Innovation, Novartis AG, Carna Biosciences Inc., Nurix Therapeutics, Inc., Humanigen, Inc. and Goldfinch Bio, Inc. |
• | Presentation of data at the 10th International AIDS Society Conference on HIV Science, which included: |
◦ | Results from a sub-analysis of the DISCOVER trial evaluating an investigational use of Descovy for HIV pre-exposure prophylaxis (PrEP), which demonstrated that Descovy reached intracellular drug concentration levels above the estimated protective threshold significantly more quickly than Truvada and that these drug concentration levels persist longer than Truvada; |
◦ | Results from two studies of investigational toll-like receptor (TLR7) agonists as part of an HIV cure research program. The Phase 1 and preclinical study results demonstrate that TLR7 agonists have a potential role to play in scalable strategies for achieving sustained viral remission in humans; |
◦ | Results from two Phase 3 trials demonstrating the effectiveness of Biktarvy for the treatment of HIV in women and in virologically suppressed patients with known resistance; and |
◦ | Results from a Phase 1b study of GS-6207, an investigational, novel, selective capsid inhibitor, in people living with HIV. The Phase 1b data demonstrated the first proof of concept that HIV capsid inhibition can lead to significant declines in viral load in vivo and that resistance to GS-6207 in vitro did not lead to resistance to other classes of drugs used in the treatment of HIV. |
• | Plans for a new 67,000-square foot facility in Oceanside, California, dedicated to the development and manufacturing of viral vectors, a critical starting material in the production of cell therapies. |
• | Presentation of data at the 2019 American Society of Clinical Oncology Annual Meeting, which included: |
◦ | Results from a safety management analysis of early use of steroids from the ZUMA-1 trial of Yescarta in adult patients with diffuse large B-cel lymphoma (DLBCL); |
◦ | Results from a sub-population analysis from the ZUMA-1 trial of Yescarta in adult patients with DLBCL; and |
◦ | Results from the completed Phase 1 of the ZUMA-3 study evaluating KTE-X19, an investigational CD19 chimeric antigen receptor T (CAR T) cell therapy. ZUMA-3 is a single-arm Phase 1/2 study in adult patients with relapsed or refractory acute lymphoblastic leukemia. |
• | Intent to submit a new drug application to U.S. Food and Drug Administration (FDA) for filgotinib this year, an investigational, oral, selective JAK1 inhibitor, as a treatment for rheumatoid arthritis (RA). |
• | Presentation of data at the Annual European Congress of Rheumatology 2019, which included data on filgotinib. Among the abstracts presented were 24 week interim results from the ongoing FINCH 1 and FINCH 3 Phase 3 studies evaluating filgotinib in adults with RA. |
• | The donation of Truvada for PrEP® (emtricitabine 200 mg and tenofovir disoproxil fumarate 300 mg) to the U.S. Centers for Disease Control and Prevention (CDC) in support of national efforts to help prevent HIV and end the epidemic. We will provide to CDC up to 2.4 million bottles of Truvada annually for uninsured Americans at risk for HIV. The donation, which extends until 2030, will transition to Descovy, if it is approved for use as prevention. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
(In millions, except percentages) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Revenues: | ||||||||||||||||||||||
Product sales | $ | 5,607 | $ | 5,540 | 1 | % | $ | 10,807 | $ | 10,541 | 3 | % | ||||||||||
Royalty, contract and other revenues | 78 | 108 | (28 | )% | 159 | 195 | (18 | )% | ||||||||||||||
Total revenues | $ | 5,685 | $ | 5,648 | 1 | % | $ | 10,966 | $ | 10,736 | 2 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
(In millions, except percentages) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Atripla | $ | 152 | $ | 349 | (56 | )% | $ | 323 | $ | 663 | (51 | )% | ||||||||||
Biktarvy | 1,116 | 185 | * | 1,909 | 220 | * | ||||||||||||||||
Complera/Eviplera | 123 | 199 | (38 | )% | 238 | 389 | (39 | )% | ||||||||||||||
Descovy | 358 | 403 | (11 | )% | 700 | 764 | (8 | )% | ||||||||||||||
Genvoya | 980 | 1,160 | (16 | )% | 1,995 | 2,242 | (11 | )% | ||||||||||||||
Odefsey | 387 | 385 | 1 | % | 784 | 727 | 8 | % | ||||||||||||||
Stribild | 108 | 187 | (42 | )% | 204 | 361 | (43 | )% | ||||||||||||||
Truvada | 718 | 765 | (6 | )% | 1,324 | 1,417 | (7 | )% | ||||||||||||||
Other HIV(1) | 15 | 19 | (21 | )% | 32 | 32 | — | % | ||||||||||||||
Revenue share - Symtuza(2) | 84 | 13 | * | 150 | 20 | * | ||||||||||||||||
Total HIV | 4,041 | 3,665 | 10 | % | 7,659 | 6,835 | 12 | % | ||||||||||||||
AmBisome | 105 | 103 | 2 | % | 198 | 210 | (6 | )% | ||||||||||||||
Ledipasvir/Sofosbuvir(3) | 193 | 331 | (42 | )% | 418 | 679 | (38 | )% | ||||||||||||||
Letairis | 204 | 244 | (16 | )% | 401 | 448 | (10 | )% | ||||||||||||||
Ranexa | 19 | 208 | (91 | )% | 174 | 403 | (57 | )% | ||||||||||||||
Sofosbuvir/Velpatasvir(4) | 493 | 500 | (1 | )% | 984 | 1,036 | (5 | )% | ||||||||||||||
Vemlidy | 116 | 76 | 53 | % | 217 | 134 | 62 | % | ||||||||||||||
Viread | 75 | 82 | (9 | )% | 147 | 179 | (18 | )% | ||||||||||||||
Vosevi | 75 | 109 | (31 | )% | 138 | 216 | (36 | )% | ||||||||||||||
Yescarta | 120 | 68 | 76 | % | 216 | 108 | 100 | % | ||||||||||||||
Zydelig | 26 | 39 | (33 | )% | 53 | 72 | (26 | )% | ||||||||||||||
Other(5) | 140 | 115 | 22 | % | 202 | 221 | (9 | )% | ||||||||||||||
Total product sales | $ | 5,607 | $ | 5,540 | 1 | % | $ | 10,807 | $ | 10,541 | 3 | % |
____________________ | |
Notes: | |
* | Percentage is greater than 100% |
(1) | Includes Emtriva and Tybost |
(2) | 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 UC (Janssen) |
(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 Cayston, Hepsera and Sovaldi. In Europe, the increase for both the three and six months ended June 30, 2019 was primarily due to favorable adjustments of approximately $80 million for statutory rebates related to sales of Sovaldi made in prior years |
• | Descovy (FTC/TAF)-based products - Biktarvy, Descovy, Genvoya, Odefsey and Revenue Share - Symtuza |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
(In millions, except percentages) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
U.S. | $ | 2,323 | $ | 1,701 | 37 | % | $ | 4,347 | $ | 3,142 | 38 | % | ||||||||||
Europe | 459 | 377 | 22 | % | 898 | 703 | 28 | % | ||||||||||||||
Other International | 143 | 68 | 110 | % | 293 | 128 | 129 | % | ||||||||||||||
Total | $ | 2,925 | $ | 2,146 | 36 | % | $ | 5,538 | $ | 3,973 | 39 | % | ||||||||||
% of total product sales | 52 | % | 39 | % | 51 | % | 38 | % | ||||||||||||||
% of HIV product sales | 72 | % | 59 | % | 72 | % | 58 | % |
• | Truvada (FTC/TDF)-based products - Atripla, Complera/Eviplera, Stribild and Truvada |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
(In millions, except percentages) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
U.S. | $ | 899 | $ | 1,149 | (22 | )% | $ | 1,694 | $ | 2,084 | (19 | )% | ||||||||||
Europe | 163 | 262 | (38 | )% | 292 | 548 | (47 | )% | ||||||||||||||
Other International | 39 | 89 | (56 | )% | 103 | 198 | (48 | )% | ||||||||||||||
Total | $ | 1,101 | $ | 1,500 | (27 | )% | $ | 2,089 | $ | 2,830 | (26 | )% | ||||||||||
% of total product sales | 20 | % | 27 | % | 19 | % | 27 | % |
• | HCV products - Epclusa, Harvoni, Sovaldi, Vosevi and Authorized Generics of Epclusa and Harvoni |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
(In millions, except percentages) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
US | $ | 355 | $ | 542 | (35 | )% | $ | 748 | $ | 1,126 | (34 | )% | ||||||||||
Europe | 277 | 237 | 17 | % | 480 | 508 | (6 | )% | ||||||||||||||
Other International | 210 | 221 | (5 | )% | 404 | 412 | (2 | )% | ||||||||||||||
Total | $ | 842 | $ | 1,000 | (16 | )% | $ | 1,632 | $ | 2,046 | (20 | )% | ||||||||||
% of total product sales | 15 | % | 18 | % | 15 | % | 19 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
(In millions, except percentages) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Total product sales | $ | 5,607 | $ | 5,540 | 1 | % | $ | 10,807 | $ | 10,541 | 3 | % | ||||||||||
Cost of goods sold | $ | 1,000 | $ | 1,196 | (16 | )% | $ | 1,957 | $ | 2,197 | (11 | )% | ||||||||||
Product gross margin | 82 | % | 78 | % | 4 | % | 82 | % | 79 | % | 3 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
(In millions, except percentages) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Research and development expenses | $ | 1,160 | $ | 1,192 | (3 | )% | $ | 2,217 | $ | 2,129 | 4 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
(In millions, except percentages) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Selling, general and administrative expenses | $ | 1,095 | $ | 980 | 12 | % | $ | 2,125 | $ | 1,977 | 7 | % |
(In millions) | June 30, 2019 | December 31, 2018 | ||||||
Cash, cash equivalents and marketable debt securities | $ | 30,234 | $ | 31,512 | ||||
Working capital | $ | 24,766 | $ | 25,231 |
Six Months Ended | ||||||||
June 30, | ||||||||
(In millions) | 2019 | 2018 | ||||||
Cash provided by (used in): | ||||||||
Operating activities | $ | 3,665 | $ | 3,843 | ||||
Investing activities | $ | (6,153 | ) | $ | 9,595 | |||
Financing activities | $ | (4,223 | ) | $ | (7,747 | ) |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
PART II. | OTHER INFORMATION |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
• | As our products are used over a longer period of time in many patients and in combination with other products, and additional studies are conducted, new issues with respect to safety, resistance and interactions with other drugs may arise, which could cause us to provide additional warnings or contraindications on our labels, narrow our approved indications or halt sales of a product, each of which could reduce our revenues. |
• | As our products mature, private insurers and government payers often reduce the amount they will reimburse patients for these products, which increases pressure on us to reduce prices. |
• | If physicians do not see the benefit of our HIV or HCV products, the sales of our HIV or HCV products will be limited. |
• | As new branded or generic products are introduced into major markets, our ability to maintain pricing and market share may be affected. |
• | educating and certifying medical personnel regarding the procedures and the potential side effect profile of our therapy, such as the potential adverse side effects related to cytokine release syndrome and neurologic toxicities, in compliance with the Risk Evaluation and Mitigation Strategy program required by U.S. Food and Drug Administration (FDA) for Yescarta; |
• | using medicines to manage adverse side effects of our therapy, such as tocilizumab and corticosteroids, which may not be available in sufficient quantities, may not adequately control the side effects and/or may have a detrimental impact on the efficacy of the treatment; |
• | developing a robust and reliable process, while limiting contamination risks, for engineering a patient’s T cells ex vivo and infusing the engineered T cells back into the patient; and |
• | conditioning patients with chemotherapy in advance of administering our therapy, which may increase the risk of adverse side effects. |
• | we are unable to control the resources our corporate partners devote to our programs or products; |
• | disputes may arise with respect to the ownership of rights to technology developed with our corporate partners; |
• | disagreements with our corporate partners could cause delays in, or termination of, the research, development or commercialization of product candidates or result in litigation or arbitration; |
• | contracts with our corporate partners may fail to provide significant protection or may fail to be effectively enforced if one of these partners fails to perform; |
• | our corporate partners have considerable discretion in electing whether to pursue the development of any additional products and may pursue alternative technologies or products either on their own or in collaboration with our competitors; |
• | our corporate partners with marketing rights may choose to pursue competing technologies or to devote fewer resources to the marketing of our products than they do to products of their own development; and |
• | our distributors and our corporate partners may be unable to pay us. |
• | obtain patents and licenses to patent rights; |
• | preserve trade secrets and internal know-how; |
• | defend against infringement of our patents and efforts to invalidate them; and |
• | operate without infringing on the intellectual property of others. |
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Total Number of Shares Purchased (in thousands) | Average Price Paid per Share (in dollars) | Total Number of Shares Purchased as Part of Publicly Announced Program (in thousands) | Maximum Fair Value of Shares that May Yet Be Purchased Under the Program (in millions) | ||||||||||
April 1 - April 30, 2019 | 3,130 | $ | 65.22 | 3,103 | $ | 4,111 | |||||||
May 1 - May 31, 2019 | 3,274 | $ | 65.47 | 3,236 | $ | 3,899 | |||||||
June 1 - June 30, 2019 | 2,629 | $ | 66.65 | 2,601 | $ | 3,726 | |||||||
Total | 9,033 | (1) | $ | 65.73 | 8,940 | (1) | |||||||
_________________________________________ |
(1) | The difference between the total number of shares purchased and the total number of shares purchased as part of a publicly announced program is due to shares of common stock withheld by us from employee restricted stock awards in order to satisfy applicable tax withholding obligations. |
Item 3. | DEFAULTS UPON SENIOR SECURITIES |
Item 4. | MINE SAFETY DISCLOSURES |
Item 5. | OTHER INFORMATION |
Item 6. | EXHIBITS |
Exhibit Footnote | Exhibit Number | Description of Document | ||
(1) | 3.1 | |||
(1) | 3.2 | |||
4.1 | Reference is made to Exhibit 3.1 and Exhibit 3.2 | |||
(2) | 4.2 | |||
(2) | 4.3 | |||
(3) | 4.4 | |||
(4) | 4.5 | |||
(5) | 4.6 | |||
(6) | 4.7 | |||
(7) | 4.8 | |||
(8) | 4.9 | |||
*(9) | 10.1 | |||
*(10) | 10.2 | |||
*(11) | 10.3 | |||
* | 10.4*** | |||
*(12) | 10.5 | |||
*(13) | 10.6 | |||
*(13) | 10.7 | |||
*(14) | 10.8 | |||
* | 10.9*** | |||
*(15) | 10.10 | |||
*(15) | 10.11 | |||
* | 10.12*** | |||
*(15) | 10.13 | |||
*(15) | 10.14 | |||
* | 10.15*** | |||
*(11) | 10.16 | |||
* | 10.17*** | |||
* | 10.18*** | |||
*(16) | 10.19 | |||
* | 10.20*** | |||
*(17) | 10.21 | |||
*(18) | 10.22 | |||
*(19) | 10.23 | |||
*(20) | 10.24 | |||
*(21) | 10.25 | |||
* | 10.26*** | |||
* | 10.27*** | |||
* | 10.28*** | |||
* | 10.29*** | |||
* | 10.30*** | |||
*(22) | 10.31 | Form of Indemnity Agreement entered into between Registrant and its directors and executive officers | ||
*(22) | 10.32 | Form of Employee Proprietary Information and Invention Agreement entered into between Registrant and certain of its officers and key employees | ||
*(23) | 10.33 | |||
+(24) | 10.34 | Amendment Agreement, dated October 25, 1993, between Registrant, the Institute of Organic Chemistry and Biochemistry (IOCB) and Rega Stichting v.z.w. (REGA), together with the following exhibits: the License Agreement, dated December 15, 1991, between Registrant, IOCB and REGA (the 1991 License Agreement), the License Agreement, dated October 15, 1992, between Registrant, IOCB and REGA (the October 1992 License Agreement) and the License Agreement, dated December 1, 1992, between Registrant, IOCB and REGA (the December 1992 License Agreement) | ||
+(25) | 10.35 | |||
+(26) | 10.36 | |||
+(27) | 10.37 | |||
+(28) | 10.38 | |||
+(29) | 10.39 | |||
+(29) | 10.40 | |||
++(30) | 10.41 | |||
++(30) | 10.42 | |||
+(31) | 10.43 | |||
+(32) | 10.44 | |||
31.1*** | ||||
31.2*** | ||||
32üü | ||||
101.INS*** | XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||
101.SCH*** | XBRL Taxonomy Extension Schema Document | |||
101.CAL*** | XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.DEF*** | XBRL Taxonomy Extension Definition Linkbase Document | |||
101.LAB*** | XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE*** | XBRL Taxonomy Extension Presentation Linkbase Document | |||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, formatted in Inline XBRL |
(1) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on May 9, 2019, and incorporated herein by reference. |
(2) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on April 1, 2011, and incorporated herein by reference. |
(3) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on December 13, 2011, and incorporated herein by reference. |
(4) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on March 7, 2014, and incorporated herein by reference. |
(5) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on November 17, 2014, and incorporated herein by reference. |
(6) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on September 14, 2015, and incorporated herein by reference. |
(7) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on September 20, 2016, and incorporated herein by reference. |
(8) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on September 21, 2017, and incorporated herein by reference. |
(9) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on May 12, 2017, and incorporated herein by reference. |
(10) | Filed as an exhibit to Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, and incorporated herein by reference. |
(11) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and incorporated herein by reference. |
(12) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, and incorporated herein by reference. |
(13) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, and incorporated herein by reference |
(14) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, and incorporated herein by reference. |
(15) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, and incorporated herein by reference. |
(16) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on May 8, 2015, and incorporated herein by reference. |
(17) | Filed as an exhibit to Registrant's Current Report on Form 8-K filed on March 11, 2016, and incorporated herein by reference. |
(18) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, and incorporated herein by reference. |
(19) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, and incorporated herein by reference. |
(20) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, and incorporated herein by reference. |
(21) | Filed as an exhibit to Registrant’s Current Report on Form 8-K filed on December 10, 2018, and incorporated herein by reference. |
(22) | Filed as an exhibit to Registrant’s Registration Statement on Form S-1 (No. 33-55680), as amended, and incorporated herein by reference. |
(23) | Filed as an exhibit to Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006, and incorporated herein by reference. |
(24) | Filed as an exhibit to Registrant’s Annual Report on Form 10-K for the fiscal year ended March 31, 1994, and incorporated herein by reference. |
(25) | Filed as an exhibit to Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2000, and incorporated herein by reference. |
(26) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, and incorporated herein by reference. |
(27) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, and incorporated herein by reference. |
(28) | Filed as an exhibit to Triangle Pharmaceuticals, Inc.’s Quarterly Report on Form 10-Q/A filed on November 3, 1999, and incorporated herein by reference. |
(29) | Filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, and incorporated herein by reference. |
(30) | Filed as an exhibit to Registrant’s Amendment No. 1 to Annual Report on Form 10-K/A filed on April 18, 2019, and incorporated herein by reference. |
(31) | Filed as an exhibit to Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and incorporated herein by reference. |
(32) | Filed as an exhibit to Kite Pharma, Inc.’s Registration Statement on Form S-1/A (No. 333-196081) filed on June 17, 2014, and incorporated herein by reference. |
* | Management contract or compensatory plan or arrangement. |
*** | Filed herewith. |
üü | Furnished herewith. |
+ | Certain confidential portions of this Exhibit were omitted by means of marking such portions with an asterisk (the Mark). This Exhibit has been filed separately with the Secretary of the Securities and Exchange Commission without the Mark pursuant to Registrant’s Application Requesting Confidential Treatment under Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
++ | Certain confidential portions of this Exhibit were omitted by means of marking such portions with the Mark because the identified confidential portions are (i) not material and (ii) would be competitively harmful if publicly disclosed. |
GILEAD SCIENCES, INC. | ||
(Registrant) | ||
Date: | August 6, 2019 | /s/ DANIEL P. O’DAY |
Daniel P. O’Day Chairman and Chief Executive Officer (Principal Executive Officer) | ||
Date: | August 6, 2019 | /s/ ROBIN L. WASHINGTON |
Robin L. Washington Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
GILEAD SCIENCES, INC. | |
By: | Kathryn Watson |
Title: | EVP, Human Resources |
Optionee: | (First Name, Last Name) |
Grant Date: | (Date) |
Exercise Price: | $XX.XX per share |
Number of Option Shares: | (xxxx) shares of Common Stock |
Expiration Date: | (Date) |
Type of Option: | Non-Statutory Stock Option |
Vesting Schedule: | The option shall vest and become exercisable for the Option Shares in four (4) successive equal quarterly installments upon Optionee’s completion of each quarter of Continuous Service over the one (1) year period measured from the Grant Date; provided, however, that if the next regular annual stockholders meeting following the Grant Date occurs prior to the quarterly vesting date of the last installment, such last installment shall instead vest on the day immediately preceding such stockholders meeting provided Optionee remains in Continuous Service through such day. |
GILEAD SCIENCES, INC. | |
By: | |
Title: | EVP Human Resources |
OPTIONEE | |
By: |
Participant | [____] |
Award Date: | [____] |
Target Number of Performance Shares: | The actual number of shares of Common Stock that may become issuable pursuant to the Performance Shares subject to this Agreement shall be determined in accordance with the performance-vesting and Continuous Service vesting provisions of attached Schedule I. For purposes of the applicable calculations under Schedule I, the target number of Performance Shares to be utilized is [____] shares (the “Target Shares”). |
Vesting Schedule: | Vesting Requirements. The Performance Shares shall be subject to the performance-vesting and Continuous Service vesting requirements set forth in attached Schedule I and shall vest on the Certification Date (as defined in Appendix A). Change in Control Vesting. The shares of Common Stock underlying the Performance Shares may also vest on an accelerated basis in accordance with the applicable provisions of Paragraph 4 of this Agreement should a Change in Control occur after the start but prior to the completion of the Performance Period applicable to the Performance Shares. |
Issuance Date: | The shares of Common Stock which actually vest and become issuable pursuant to the Performance Shares shall be issued in accordance with the provisions of this Agreement applicable to the particular circumstances under which such vesting occurs. |
Participant | [____] |
Award Date: | [____] |
Target Number of Performance Shares: | The actual number of shares of Common Stock that may become issuable pursuant to the Performance Shares subject to this Agreement shall be determined in accordance with the performance-vesting and Continuous Service vesting provisions of attached Schedule I. For purposes of the applicable calculations under Schedule I, the target number of Performance Shares to be utilized is [____] shares (the “Target Shares”). The Performance Shares shall be divided into three separate Tranches with one third (1/3) of the Target Shares allocated to each such Tranche. |
Vesting Schedule: | Vesting Requirements. Each Tranche of Performance Shares shall be subject to the performance-vesting and Continuous Service vesting requirements set forth for that particular Tranche in attached Schedule I and shall vest on the Certification Date (as defined in Appendix A). Change in Control Vesting. The shares of Common Stock underlying each Tranche of Performance Shares may also vest on an accelerated basis in accordance with the applicable provisions of Paragraph 4 of this Agreement should a Change in Control occur after the start but prior to the completion of the Performance Period applicable to that particular Tranche or the Certification Date. |
Issuance Date: | The shares of Common Stock which actually vest and become issuable pursuant to each Tranche of Performance Shares shall be issued in accordance with the provisions of this Agreement applicable to the particular circumstances under which such vesting occurs. |
Participant: | |
Award Date: | |
Number of Shares Subject to Award: | [____] shares of Common Stock (the “Shares”) |
Vesting Schedule: | The Shares shall vest in a series of four (4) successive equal annual installments upon Participant’s completion of each successive year of Continuous Service over the four (4)-year period measured from the Award Date. However, one or more Shares may be subject to accelerated vesting in accordance with the provisions of Paragraph 5 of this Agreement. |
Issuance Schedule | The Shares in which Participant vests in accordance with the Normal Vesting Schedule shall become issuable pursuant to the Plan on the applicable annual vesting date, subject to the Company’s collection of the applicable Withholding Taxes. In no event will the Shares in which Participant so vests be issued after the later of (i) the close of the calendar year in which the Shares vest pursuant to the Normal Vesting Schedule or (ii) the fifteenth (15th) day of the third (3rd) calendar month following such vesting date. The procedures pursuant to which the applicable Withholding Taxes are to be collected are set forth in Paragraph 7 of this Agreement. |
GILEAD SCIENCES, INC. |
By: | Kathryn Watson |
Title: | EVP, Human Resources |
Participant: | (First Name, Last Name) |
Award Date: | (Date) |
Number of Shares Subject to Award: | xxxx Shares |
Vesting Schedule: | The Shares shall vest upon the earlier of (i) Participant’s completion of one (1) year of Continuous Service measured from the Award Date or (ii) the day immediately preceding the next regular annual stockholders meeting following the Award Date provided Participant remains in Continuous Service through such day (the earlier of (i) or (ii), the “Normal Vesting Date”). However, the Shares may be subject to accelerated vesting in accordance with the provisions of Paragraph 3 or Paragraph 5 of this Agreement. |
Issuance Schedule: | Unless Participant has made a timely Deferral Election with respect to the Award, the Shares in which Participant vests on the Normal Vesting Date shall become issuable immediately upon vesting, and will be issued no later than the later of (i) the close of the calendar year in which the Normal Vesting Date occurs or (ii) the fifteenth (15th) day of the third (3rd) calendar month following the Normal Vesting Date. However, if Participant has made a timely Deferral Election, then the Shares in which Participant vests on the Normal Vesting Date shall be issued in accordance with the terms and provisions of such Deferral Election, including the applicable distribution event and method of distribution. In the event of a Change in Control, the distribution provisions of Paragraph 5 shall apply. |
GILEAD SCIENCES, INC. | |
By: | |
Title: | EVP Human Resources |
PARTICIPANT | |
By: |
Page | ||||||
1. | HISTORY OF THE PLAN. | 1 | ||||
1.1 | Successor Plan | 1 | ||||
1.2 | Restatement | 1 | ||||
2. | PURPOSE OF THE PLAN. | 1 | ||||
2.1 | Plan Purpose | 1 | ||||
3. | EFFECTIVE DATE OF THE PLAN. | 1 | ||||
3.1 | Effective Date | 1 | ||||
4. | DEFINITIONS. | 2 | ||||
4.1 | Definitions | 2 | ||||
5. | ELIGIBILITY; PARTICIPATION. | 7 | ||||
5.1 | Eligibility | 7 | ||||
5.2 | Continuation of Participation | 7 | ||||
5.3 | Resumption of Participation Following Separation from Service | 7 | ||||
5.4 | Cessation or Resumption of Participation Following a Change in Status | 8 | ||||
6. | DEFERRAL AND DISTRIBUTION ELECTIONS. | 8 | ||||
6.1 | Deferral Elections for Employee Participants | 8 | ||||
6.2 | Deferral Elections for Eligible Directors. | 9 | ||||
6.3 | Subsequent Elections | 10 | ||||
6.4 | Additional Provisions | 10 | ||||
6.5 | Deferral Percentages. | 11 | ||||
6.6 | Special Elections in 2005 regarding Deferrals | 11 | ||||
6.7 | Phantom Share Program for Directors | 11 | ||||
6.8 | Distribution Election for Pre-2013 Deferral Election Subaccount | 11 | ||||
6.9 | Distribution Election for Distribute Election Subaccounts | 12 | ||||
6.10 | Special Distribution Election in 2006 | 13 | ||||
6.11 | Special Distribution Election in 2007 | 13 | ||||
6.12 | Special Distribution Election in 2008 | 13 | ||||
6.13 | Election Form | 13 | ||||
6.14 | Time of Making Employer Contributions | 14 | ||||
7 | PARTICIPANT ACCOUNTS. | 14 | ||||
7.1 | Individual Accounts | 14 | ||||
8 | INVESTMENT OF CONTRIBUTIONS. | 14 | ||||
8.1 | Available Investment Funds | 14 | ||||
8.2 | Investment Directives | 14 | ||||
8.3 | Changes to Investment Funds | 14 |
9. | DISTRIBUTION OF BENEFITS. | 15 | ||||
9.1 | Distribution of Benefits to Participants. | 15 | ||||
9.2 | Determination of Timing and Method of Distribution | 15 | ||||
9.3 | Default Distribution Election | 16 | ||||
9.4 | Delayed Distribution to Specified Employees | 16 | ||||
9.5 | Unforeseeable Emergency | 16 | ||||
9.6 | Prohibition on Acceleration | 17 | ||||
9.7 | Adjustment for Investment Experience | 17 | ||||
9.8 | Notice to Trustee | 17 | ||||
9.9 | Time of Distribution | 17 | ||||
10. | EFFECT OF DEATH OF A PARTICIPANT. | 18 | ||||
10.1 | Distributions | 18 | ||||
10.2 | Beneficiary Designation | 18 | ||||
11. | ESTABLISHMENT OF A TRUST. | 18 | ||||
11.1 | Trust | 18 | ||||
11.2 | General Duties of Trustee | 19 | ||||
12 | AMENDMENT AND TERMINATION. | 19 | ||||
12.1 | Amendment by Employer | 19 | ||||
12.2 | Retroactive Amendments | 19 | ||||
12.3 | Termination | 20 | ||||
13 | MISCELLANEOUS. | 21 | ||||
13.1 | Withholding Taxes | 21 | ||||
13.2 | Participant’s Unsecured Rights | 21 | ||||
13.3 | Limitation of Rights | 21 | ||||
13.4 | Nonalienability of Benefits | 21 | ||||
13.5 | Facility of Payment | 21 | ||||
13.6 | Governing Law | 22 | ||||
13.7 | Section 409A Compliance | 22 | ||||
14 | PLAN ADMINISTRATION. | 22 | ||||
14.1 | Powers and Responsibilities of the Administrator | 22 | ||||
14.2 | Claims and Review Procedure. | 23 | ||||
14.3 | Execution and Signature | 25 | ||||
ATTACHMENT A PLAN INVESTMENT FUNDS AS OF JANUARY 1, 2016 | 26 |
1. | HISTORY OF THE PLAN. |
2. | PURPOSE OF THE PLAN. |
3. | EFFECTIVE DATE OF THE PLAN. |
4. | DEFINITIONS. |
5. | ELIGIBILITY; PARTICIPATION. |
6. | DEFERRAL AND DISTRIBUTION ELECTIONS. |
7. | PARTICIPANT ACCOUNTS. |
8. | INVESTMENT OF CONTRIBUTIONS. |
9. | DISTRIBUTION OF BENEFITS. |
10. | EFFECT OF DEATH OF A PARTICIPANT. |
11. | ESTABLISHMENT OF A TRUST. |
12. | AMENDMENT AND TERMINATION. |
13. | MISCELLANEOUS. |
14. | PLAN ADMINISTRATION. |
Investment Name |
American Beacon Small Cap Value - Instl Class |
Fidelity Diversified International - Class K |
Fidelity Freedom K 2005 |
Fidelity Freedom K 2010 |
Fidelity Freedom K 2015 |
Fidelity Freedom K 2020 |
Fidelity Freedom K 2025 |
Fidelity Freedom K 2030 |
Fidelity Freedom K 2035 |
Fidelity Freedom K 2040 |
Fidelity Freedom K 2045 |
Fidelity Freedom K 2050 |
Fidelity Freedom K 2055 |
Fidelity Freedom K 2060 |
Fidelity Freedom K Income |
Fidelity Growth Company - Class K |
Fidelity Intermediate Bond |
Fidelity Low Priced Stock - Class K |
Fidelity MMT Retirement Money Market |
Gilead Sciences, Inc. Phantom Stock |
Spartan Extended Market Index - Investor Class |
T. Rowe Price Blue Chip Growth |
T. Rowe Price Real Estate |
Templeton Instl Foreign Smaller Company Series |
Vanguard Equity Income - Admiral Shares |
Vanguard Inflation-Protected Securities - Admiral Shares |
Vanguard Institutional Index - Instl Shares |
Vanguard Total Bond Market Index - Instl Shares |
• | The exercise price for your stock options will be no less than the fair market value per share of Gilead common stock on the grant date. The fair market value per share for that date will be determined in accordance with the provisions of the Equity Incentive Plan. You will be notified of the details after your options have been granted. Your options will vest and become exercisable for 25% of the option shares upon your completion of one year of employment with Gilead, measured from the grant date, and will vest and become exercisable for the balance of the option shares in a series of successive equal quarterly installments upon your completion of each successive three-month period of continued employment with |
• | Your RSUs will vest, and the underlying shares of Gilead common stock issued to you, in a series of four successive annual installments upon your completion of each year of continued employment with Gilead over the four-year period measured from the award date. Each RSU that vests will entitle you to one share of Gilead common stock. |
• | Your PBSUs will vest based on the extent to which you attain the performance goal(s), as established for you within the first 90 days of your employment, and subject to your continued employment with Gilead until the completion of the applicable performance period. The performance period for the performance goal(s) will be set at the time the performance goal is established and approved by the Compensation Committee, and the combined performance period for all of your performance goals typically will not exceed five years. To the extent a performance goal is not attained within the established performance period for that performance goal, the PBSUs tied to that performance goal will be forfeited. For each PBSU that vests in accordance with such vesting provisions, you will receive one share of Gilead common stock following the completion of the applicable performance period and the Compensation Committee’s certification of the attained performance goals. In the event of your death or permanent disability, your PBSUs will be subject to pro-rated vesting. In each case, the issuance of vested shares will be subject to Gilead’s collection of all applicable withholding taxes. |
GILEAD SCIENCES, INC. | |
By: | Kathryn Watson |
Title: | EVP, Human Resources |
Shares | Vest Type | Full Vest Date | Expiration Date |
57,820 | On Vest Date | 01-MAR-20 | 01-MAR-29 |
173,460 | Quarterly | 01-MAR-23 | 01-MAR-29 |
Participant | Daniel O’Day |
Award Date: | March 1, 2019 |
Target Number of Performance Shares: | The actual number of shares of Common Stock that may become issuable pursuant to the Performance Shares subject to this Agreement shall be determined in accordance with the performance-vesting and Continuous Service vesting provisions of attached Schedule I. For purposes of the applicable calculations under Schedule I, the target number of Performance Shares to be utilized is 45,850 shares (the “Target Shares”). |
Vesting Schedule: | Vesting Requirements. The Performance Shares shall be subject to the performance-vesting and Continuous Service vesting requirements set forth in attached Schedule I and shall vest on the Certification Date (as defined in Appendix A). Change in Control Vesting. The shares of Common Stock underlying the Performance Shares may also vest on an accelerated basis in accordance with the applicable provisions of Paragraph 4 of this Agreement should a Change in Control occur after the start but prior to the completion of the Performance Period applicable to the Performance Shares. |
Issuance Date: | The shares of Common Stock which actually vest and become issuable pursuant to the Performance Shares shall be issued in accordance with the provisions of this Agreement applicable to the particular circumstances under which such vesting occurs. |
Participant | Daniel O’Day |
Award Date: | March 1, 2019 |
Target Number of Performance Shares: | The actual number of shares of Common Stock that may become issuable pursuant to the Performance Shares subject to this Agreement shall be determined in accordance with the performance-vesting and Continuous Service vesting provisions of attached Schedule I. For purposes of the applicable calculations under Schedule I, the target number of Performance Shares to be utilized is 45,450 shares (the “Target Shares”). The Performance Shares shall be divided into three separate Tranches with one third (1/3) of the Target Shares allocated to each such Tranche. |
Vesting Schedule: | Vesting Requirements. Each Tranche of Performance Shares shall be subject to the performance-vesting and Continuous Service vesting requirements set forth for that particular Tranche in attached Schedule I and shall vest on the Certification Date (as defined in Appendix A). Change in Control Vesting. The shares of Common Stock underlying each Tranche of Performance Shares may also vest on an accelerated basis in accordance with the applicable provisions of Paragraph 4 of this Agreement should a Change in Control occur after the start but prior to the completion of the Performance Period applicable to that particular Tranche or the Certification Date. |
Issuance Date: | The shares of Common Stock which actually vest and become issuable pursuant to each Tranche of Performance Shares shall be issued in accordance with the provisions of this Agreement applicable to the particular circumstances under which such vesting occurs. |
Participant: | Daniel O’Day |
Award Date: | March 1, 2019 |
Number of Shares Subject to Award: | [____] shares of Common Stock (the “Shares”) |
Vesting Schedule: | The Shares shall vest in a series of [____] successive equal annual installments upon Participant’s completion of each successive year of Continuous Service over the [____]-year period measured from the Award Date. However, one or more Shares may be subject to accelerated vesting in accordance with the provisions of Paragraph 3 or 5 of this Agreement. |
Issuance Schedule | The Shares in which Participant vests in accordance with the Normal Vesting Schedule shall become issuable pursuant to the Plan on the applicable annual vesting date, subject to the Company’s collection of the applicable Withholding Taxes. In no event will the Shares in which Participant so vests be issued after the later of (i) the close of the calendar year in which the Shares vest pursuant to the Normal Vesting Schedule or (ii) the fifteenth (15th) day of the third (3rd) calendar month following such vesting date. Shares that vest pursuant to the special vesting provisions of Paragraph 3 or 5 of this Agreement shall be issued in accordance with the applicable provisions of such Paragraph. The procedures pursuant to which the applicable Withholding Taxes are to be collected are set forth in Paragraph 7 of this Agreement. |
GILEAD SCIENCES, INC. | |
By: | Kathryn Watson |
Title: | EVP, Human Resources |
/s/ DANIEL P. O’DAY |
Daniel P. O’Day Chairman and Chief Executive Officer |
/s/ ROBIN L. WASHINGTON |
Robin L. Washington Executive Vice President and Chief Financial Officer |
/s/ DANIEL P. O’DAY | /s/ ROBIN L. WASHINGTON | |
Daniel P. O’Day Chairman and Chief Executive Officer | Robin L. Washington Executive Vice President and Chief Financial Officer |
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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable and chargebacks | $ 610 | $ 583 |
Preferred Stock, Par Value (usd 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 (usd per share) | $ 0.001 | $ 0.001 |
Common Stock Authorized (in shares) | 5,600,000,000 | 5,600,000,000 |
Common Stock Issued (in shares) | 1,267,000,000 | 1,282,000,000 |
Common Stock Outstanding (in shares) | 1,267,000,000 | 1,282,000,000 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,875 | $ 1,819 | $ 3,843 | $ 3,358 |
Other comprehensive income (loss): | ||||
Net foreign currency translation gain (loss), net of tax | (13) | (25) | 8 | (18) |
Available-for-sale debt securities: | ||||
Net unrealized gain (loss), net of tax | 19 | 30 | 49 | (6) |
Reclassifications to net income, net of tax | 0 | 4 | 0 | 4 |
Net change | 19 | 34 | 49 | (2) |
Cash flow hedges: | ||||
Net unrealized gain, net of tax | 1 | 118 | 29 | 57 |
Reclassifications to net income, net of tax | (35) | 45 | (64) | 93 |
Net change | (34) | 163 | (35) | 150 |
Other comprehensive income (loss) | (28) | 172 | 22 | 130 |
Comprehensive income | 1,847 | 1,991 | 3,865 | 3,488 |
Comprehensive income (loss) attributable to noncontrolling interest | (5) | 2 | (12) | 3 |
Comprehensive income attributable to Gilead | $ 1,852 | $ 1,989 | $ 3,877 | $ 3,485 |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.63 | $ 0.57 | $ 1.26 | $ 1.14 |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. The financial statements include all adjustments consisting of normal recurring adjustments that the management of Gilead Sciences, Inc. (Gilead, we, our or us) believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. The accompanying Condensed Consolidated Financial Statements include the accounts of Gilead, our wholly-owned subsidiaries and certain variable interest entities for which we are the primary beneficiary. All intercompany transactions have been eliminated. For consolidated entities where we own or are exposed to less than 100% of the economics, we record net income (loss) attributable to noncontrolling interest in our Condensed Consolidated Statements of Income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. We assess whether we are the primary beneficiary of a variable interest entity (VIE) at the inception of the arrangement and at each reporting date. This assessment is based on our power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and our obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. As of June 30, 2019, we did not have any material VIEs. The accompanying Condensed Consolidated Financial Statements and related Notes to Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. Significant Accounting Policies, Estimates and Judgments The preparation of these Condensed Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. On an ongoing basis, we evaluate our significant accounting policies and estimates. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed each period and updated to reflect current information. Actual results may differ significantly from these estimates. Concentrations of Risk We are subject to credit risk from our portfolio of cash equivalents and marketable securities. Under our investment policy, we limit amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. We are not exposed to any significant concentrations of credit risk from these financial instruments. The goals of our investment policy, in order of priority, are as follows: safety and preservation of principal and diversification of risk; liquidity of investments sufficient to meet cash flow requirements; and a competitive after-tax rate of return. We are also subject to credit risk from our accounts receivable related to our product sales. The majority of our trade accounts receivable arises from product sales in the United States and Europe. To date, we have not experienced significant losses with respect to the collection of our accounts receivable. We believe that our allowance for doubtful accounts was adequate as of June 30, 2019. Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 “Leases” (ASU 2016-02) and subsequently issued supplemental adoption guidance and clarification (collectively, Topic 842). Topic 842 amends a number of aspects of lease accounting, including requiring lessees to recognize right-of-use assets and lease liabilities for operating leases with a lease term greater than one year. Topic 842 supersedes Topic 840 “Leases.” On January 1, 2019, we adopted Topic 842 using the modified retrospective approach. Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 840. We elected the package of practical expedients permitted under the transition guidance within Topic 842, which allowed us to carry forward the historical lease classification, retain the initial direct costs for any leases that existed prior to the adoption of the standard and not reassess whether any contracts entered into prior to the adoption are leases. We also elected to account for lease and nonlease components in our lease agreements as a single lease component in determining lease assets and liabilities. In addition, we elected not to recognize the right-of-use assets and liabilities for leases with lease terms of one year or less. Upon adoption of Topic 842, we recorded $441 million of right-of-use assets within Other long-term assets and $490 million of operating lease liabilities, classified primarily within Other long-term obligations on our Condensed Consolidated Balance Sheet, as of January 1, 2019. The adoption did not have a material impact on our Condensed Consolidated Statements of Income or Condensed Consolidated Statements of Cash Flows. See Note 10. Leases for additional information. Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update No. 2016-13 “Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets. In April 2019, the FASB issued clarification to ASU 2016-13 within ASU 2019-04 “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The guidance will become effective for us beginning in the first quarter of 2020 and must be adopted using a modified retrospective approach, with certain exceptions. We are evaluating the impact of the adoption of these standards, but we currently do not expect a material impact on our Condensed Consolidated Financial Statements. In November 2018, the FASB issued Accounting Standards Update No. 2018-18 “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (ASU 2018-18). ASU 2018-18 clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue if the counterparty is not a customer for that transaction. This guidance will become effective for us beginning in the first quarter of 2020 and will be applied retrospectively to January 1, 2018 when we initially adopted Topic 606. Early adoption is permitted. We are evaluating the impact of the adoption of this standard, but we currently do not expect a material impact on our Condensed Consolidated Financial Statements.
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Revenues |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | REVENUES Disaggregation of Revenues The following table disaggregates our product sales by product and geographic region and disaggregates our royalty, contract and other revenues by geographic region (in millions):
Revenues Recognized from Performance Obligations Satisfied in Prior Periods Revenues recognized from performance obligations satisfied in prior years related to royalties for licenses of our intellectual property were $171 million and $326 million for the three and six months ended June 30, 2019, respectively, and $131 million and $228 million for the three and six months ended June 30, 2018, respectively. Changes in estimates for variable consideration related to sales made in prior years resulted in a $193 million and $300 million increase in revenues for the three and six months ended June 30, 2019, respectively, and a $91 million and $4 million increase for the three and six months ended June 30, 2018, respectively. Contract Balances Our contract assets, which consist of unbilled amounts primarily from arrangements where the licensing of intellectual property is the only or predominant performance obligation, totaled $149 million and $125 million as of June 30, 2019 and December 31, 2018, respectively. Contract liabilities were not material as of June 30, 2019 and December 31, 2018.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows:
Our financial instruments consist primarily of cash and cash equivalents, marketable debt securities, accounts receivable, foreign currency exchange contracts, equity securities, accounts payable and short-term and long-term debt. Cash and cash equivalents, marketable debt securities, certain equity securities and foreign currency exchange contracts are reported at their respective fair values on our Condensed Consolidated Balance Sheets. Equity securities without readily determinable fair values are recorded using the measurement alternative of cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. Short-term and long-term debt are reported at their amortized costs on our Condensed Consolidated Balance Sheets. The remaining financial instruments are reported in our Condensed Consolidated Balance Sheets at amounts that approximate current fair values. There were no transfers between Level 1, Level 2 and Level 3 in the periods presented. 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 (in millions):
Changes in the fair value of equity securities resulted in net unrealized gains of $57 million and $254 million for the three and six months ended June 30, 2019, respectively, and net unrealized losses of $64 million and $19 million for the three and six months ended June 30, 2018, respectively, which were included in Other income (expense), net on our Condensed Consolidated Statements of Income. Investments in equity securities without readily determinable fair values were not material for the periods presented. The following table summarizes the classification of our equity securities in our Condensed Consolidated Balance Sheets (in millions):
Our available-for-sale debt securities are classified as cash equivalents, short-term marketable securities and long-term marketable securities on our Condensed Consolidated Balance Sheets. See Note 4. Available-for-Sale Debt Securities for additional information. Level 2 Inputs We estimate the fair values of Level 2 instruments 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. 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, London Interbank Offered Rates (LIBOR) and swap rates. These inputs, where applicable, are observable at commonly quoted intervals. The total estimated fair values of our short-term and long-term debt, determined using Level 2 inputs based on their quoted market values, were approximately $28.0 billion and $27.1 billion as of June 30, 2019 and December 31, 2018, respectively, and the carrying values were $26.1 billion and $27.3 billion as of June 30, 2019 and December 31, 2018, respectively.
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Available-for-Sale Debt Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | AVAILABLE-FOR-SALE DEBT SECURITIES The following table summarizes our available-for-sale debt securities (in millions):
The following table summarizes the classification of our available-for-sale debt securities in our Condensed Consolidated Balance Sheets (in millions):
The following table summarizes our available-for-sale debt securities by contractual maturity (in millions):
The following table summarizes our available-for-sale debt securities that were in a continuous unrealized loss position, but were not deemed to be other-than-temporarily impaired (in millions):
We held a total of 593 and 1,348 positions, which were in an unrealized loss position, as of June 30, 2019 and December 31, 2018, respectively. Based on our review of these securities, we believe we had no other-than-temporary impairments as of June 30, 2019 and December 31, 2018, because we do not intend to sell these securities nor do we believe that we will be required to sell these securities before the recovery of their amortized cost basis. Gross realized gains and gross realized losses were not material for the three and six months ended June 30, 2019 and 2018.
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Derivative Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 may 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 or option 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. We hedge our exposure to foreign currency exchange rate fluctuations for certain monetary assets and liabilities of our entities that are denominated in a non-functional currency. The derivative instruments we use to hedge this exposure are not designated as hedges and, as a result, changes in their fair value are recorded in Other income (expense), net on our Condensed Consolidated Statements of Income. We hedge our exposure to foreign currency exchange rate fluctuations for forecasted product sales that are denominated in a non-functional currency. The derivative instruments we use to hedge this exposure are designated as cash flow hedges and have maturities of 18 months or less. Upon executing a hedging contract and quarterly thereafter, we assess hedge effectiveness using regression analysis. The unrealized gains or losses in Accumulated other comprehensive income (AOCI) are reclassified into product sales when the respective hedged transactions affect earnings. The majority of gains and losses related to the hedged forecasted transactions reported in AOCI as of June 30, 2019 are expected to be reclassified to product sales within 12 months. The cash flow effects of our derivative contracts for the six months ended June 30, 2019 and 2018 were included within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows. We had notional amounts on foreign currency exchange contracts outstanding of $2.9 billion and $2.2 billion as of June 30, 2019 and December 31, 2018, respectively. While all our derivative contracts allow us the right to offset assets and liabilities, we have presented amounts on a gross basis. The following table summarizes the classification and fair values of derivative instruments in our Condensed Consolidated Balance Sheets (in millions):
The following table summarizes the effect of our foreign currency exchange contracts on our Condensed Consolidated Financial Statements (in millions):
The following table summarizes the potential effect of offsetting our foreign currency exchange contracts on our Condensed Consolidated Balance Sheets (in millions):
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Collaborative And Other Arrangements |
6 Months Ended |
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Jun. 30, 2019 | |
Collaborative and Other Arrangements [Abstract] | |
Collaborative and Other Arrangements [Text Block] | COLLABORATIVE AND OTHER ARRANGEMENTS We enter into collaborations and other similar arrangements with third parties for the development and commercialization of certain products and product candidates. These arrangements may include non-refundable up-front payments, 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. During the three and six months ended June 30, 2019 and 2018, we entered into several collaborative and other similar arrangements, including equity investments and licensing arrangements, that we do not consider to be individually material. Cash outflows and accrued up-front payments related to these arrangements totaled $206 million and $393 million for the three and six months ended June 30, 2019, respectively, and $284 million and $304 million for the three and six months ended June 30, 2018, respectively. We recorded up-front collaboration and licensing expenses related to these arrangements of $165 million and $291 million for the three and six months ended June 30, 2019, respectively, and $160 million for both the three and six months ended June 30, 2018 within Research and development expenses on our Condensed Consolidated Statements of Income and the remaining amounts were recorded in Prepaid and other current assets and Other long-term assets on our Condensed Consolidated Balance Sheets. Under the financial terms of these arrangements, we may be required to make payments upon achievement of various developmental, regulatory and commercial milestones, which could be significant. Future milestone payments, if any, will be reflected on our Condensed Consolidated Statements of Income when the corresponding events become probable. In addition, we may be required to pay significant royalties on future sales if products related to these arrangements are commercialized. The payment of these amounts, however, is contingent upon the occurrence of various future events, which have a high degree of uncertainty of occurrence.
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Other Financial Information |
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Other Financial Information | OTHER FINANCIAL INFORMATION Inventories The following table summarizes our inventories (in millions):
Amounts reported as other long-term assets primarily consisted of raw materials as of June 30, 2019 and December 31, 2018. Other Accrued Liabilities The following table summarizes the components of other accrued liabilities (in millions):
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Intangible Assets |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | INTANGIBLE ASSETS The following table summarizes our intangible assets, net (in millions):
Aggregate amortization expense related to finite-lived intangible assets was $288 million and $587 million for the three and six months ended June 30, 2019, respectively, and $300 million and $601 million for the three and six months ended June 30, 2018, respectively, and was 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 June 30, 2019 (in millions):
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Debt and Credit Facilities |
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Debt and Credit Facilities | DEBT AND CREDIT FACILITIES The following table summarizes our borrowings under various financing arrangements (in millions):
In March 2019, we repaid $750 million of our senior unsecured notes upon maturity that were issued in September 2017, and in April 2019, we repaid $500 million of our senior unsecured notes upon maturity that were issued in March 2014. We are required to comply with certain covenants under our credit agreement and note indentures governing our senior notes. As of June 30, 2019, we were not in violation of any covenants. Additionally, as of June 30, 2019 and December 31, 2018, there were no amounts outstanding under our $2.5 billion five-year revolving credit facility agreement maturing in May 2021.
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Leases |
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Leases | LEASES We lease facilities and equipment primarily related to administrative, research and development and sales and marketing activities under various non-cancelable operating leases in the United States and markets outside the United States. We determine if an arrangement contains a lease at inception. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term, which is the non-cancelable period stated in the contract adjusted for any options to extend or terminate when it is reasonably certain that we will exercise that option. Some of our leases include options to extend the terms for up to 15 years and some include options to terminate the lease within one year after the lease commencement date. Right-of-use assets include any prepaid lease payments and exclude lease incentives and initial direct costs incurred. As of June 30, 2019, we do not have material finance leases. As most of our operating leases do not provide an implicit interest rate, we use a portfolio approach to determine a collateralized incremental borrowing rate based on the information available at the commencement date to determine the lease liability. Operating lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Operating lease expenses including variable costs and short-term leases were $38 million and $74 million for the three and six months ended June 30, 2019, respectively. The following table summarizes balance sheet and other information related to our operating leases as of June 30, 2019 (in millions, except weighted average data):
The following table summarizes other supplemental information related to our operating leases (in millions):
The following table summarizes a maturity analysis of our operating lease liabilities showing the aggregate lease payments as of June 30, 2019 (in millions):
The following table summarizes the aggregate undiscounted non-cancelable future minimum lease payments for operating leases under the prior leases standard as of December 31, 2018 (in millions):
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We are a party to various legal actions. The most significant of these 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 loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss. Unless otherwise noted, it is not possible to determine the outcome of these matters, and we cannot reasonably estimate the maximum potential exposure or the range of possible loss. We did not recognize any accruals for the actions described below in our Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, as we did not believe losses were probable. Litigation Related to Sofosbuvir In 2012, we acquired Pharmasset, Inc. (Pharmasset). Through the acquisition, we acquired sofosbuvir, a nucleotide analog that acts to inhibit the replication of the hepatitis C virus (HCV). In 2013, we received approval from U.S. Food and Drug Administration (FDA) for sofosbuvir, now known commercially as Sovaldi. Sofosbuvir is also included in all of our marketed HCV products. We have received a number of litigation claims regarding sofosbuvir. While we have carefully considered these claims both prior to and following the acquisition and believe they are without merit, we cannot predict the ultimate outcome of such claims or range of loss. We are aware of patents and patent applications owned by third parties that have been or may in the future be alleged by such parties to cover the use of our HCV products. If third parties obtain valid and enforceable patents, and successfully prove infringement of those patents by our HCV products, we could be required to pay significant monetary damages. We cannot predict the ultimate outcome of intellectual property claims related to our HCV products. We have spent, and will continue to spend, significant resources defending against these claims. Litigation with Idenix Pharmaceuticals, Inc. (Idenix), Universita Degli Studi di Cagliari (UDSG), Centre National de la Recherche Scientifique and L’Universite Montpellier II In 2013, Idenix, UDSG, Centre National de la Recherche Scientifique and L’Université Montpellier II sued us in U.S. District Court for the District of Delaware alleging that the commercialization of sofosbuvir infringes U.S. Patent No. 7,608,600 (the ‘600 patent). Also in 2013, Idenix and UDSG sued us in the U.S. District Court for the District of Massachusetts alleging that the commercialization of sofosbuvir infringes U.S. Patent Nos. 6,914,054 (the ‘054 patent) and 7,608,597 (the ‘597 patent). In 2014, the court transferred the Massachusetts litigation to the U.S. District Court for the District of Delaware. Prior to trial in 2016, Idenix committed to give us a covenant not to sue with respect to any claims arising out of the ‘054 patent related to sofosbuvir and withdrew that patent from the trial. A jury trial was held in 2016 on the ‘597 patent, and the jury found that we willfully infringed the asserted claims of the ‘597 patent and awarded Idenix $2.54 billion in past damages. In 2018, the judge invalidated Idenix’s ‘597 patent and vacated the jury’s award of $2.54 billion in past damages. Idenix appealed this decision to the U.S. Court of Appeals for the Federal Circuit (CAFC), and oral argument took place in July 2019. No decision has been handed down yet. We believe the Delaware court’s decision correctly found that, as a matter of law, the ‘597 patent is invalid, and we remain confident in the merits of our case on appeal. We believe that the possibility of a material adverse outcome on this matter is remote. In 2014, the European Patent Office (EPO) granted Idenix’s European Patent No. 1 523 489 (the ‘489 patent), which corresponds to the ‘600 patent. The same day that the ‘489 patent was granted, we filed an opposition with the EPO seeking to revoke the ‘489 patent. An opposition hearing was held in 2016, and the EPO ruled in our favor and revoked the ‘489 patent. Idenix has appealed. In 2014, Idenix also initiated infringement proceedings against us in Germany and France alleging that the commercialization of Sovaldi would infringe the German and French counterparts of the ‘489 patent. In 2015, the German court in Düsseldorf determined that the Idenix patent was highly likely to be invalid and stayed the infringement proceedings pending the outcome of the opposition hearing held by the EPO in 2016. Idenix has not appealed this decision of the German court staying the proceedings. Upon Idenix’s request, the French proceedings have been stayed. Litigation with the University of Minnesota The University of Minnesota (the University) has obtained 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 four petitions for inter partes review with the USPTO Patent Trial and Appeal Board (PTAB) alleging that all asserted claims are invalid for anticipation and obviousness. In 2018, the District Court stayed the litigation until after the PTAB rules on our petitions for inter partes review. Litigation Related to Axicabtagene Ciloleucel We own patents and patent applications that claim axicabtagene ciloleucel chimeric DNA segments. Third parties may have, or may obtain rights to, patents that allegedly could be used to prevent or attempt to prevent us from commercializing axicabtagene ciloleucel or to require us to obtain a license in order to commercialize axicabtagene ciloleucel. For example, we are aware that Juno Therapeutics, Inc. (Juno) has exclusively licensed Patent No. 7,446,190 (the ‘190 patent), which was issued to Sloan Kettering Cancer Center. In September 2017, Juno and Sloan Kettering Cancer Center filed a lawsuit against us in the U.S. District Court for the Central District of California, alleging that the commercialization of axicabtagene ciloleucel infringes the ‘190 patent. In October 2017, following FDA approval for Yescarta, Juno filed a second complaint alleging that axicabtagene ciloleucel infringes the ‘190 patent. Juno subsequently moved to dismiss the September 2017 complaint and has maintained the October 2017 complaint. The court has set a trial date of December 2019 for this lawsuit. We cannot predict the ultimate outcome of intellectual property claims related to axicabtagene ciloleucel. If Juno’s patent is upheld as valid and Juno successfully proves infringement of that patent by axicabtagene ciloleucel, we could be required to pay significant monetary damages or we could be prevented from selling Yescarta unless we were able to obtain a license to this patent. Such a license may not be available on commercially reasonable terms or at all. Litigation Related to Bictegravir In 2018, ViiV Healthcare Company (ViiV) filed a lawsuit against us in the U.S. District Court of Delaware, alleging that the commercialization of bictegravir, sold commercially in combination with tenofovir alafenamide and emtricitabine as Biktarvy, infringes ViiV’s U.S. Patent No. 8,129,385 (the ‘385 patent), which was issued to Shionogi & Co. Ltd. and GlaxoSmithKline LLC. The ‘385 patent is the compound patent covering ViiV’s dolutegravir. Bictegravir is structurally different from dolutegravir, and we believe that bictegravir does not infringe the claims of the ‘385 patent. To the extent that ViiV’s patent claims are interpreted to cover bictegravir, we believe those claims are invalid. The U.S. Patent and Trademark Office (USPTO) has granted us patents covering bictegravir. The court has set a trial date of September 2020 for this lawsuit. In 2018, ViiV also filed a lawsuit against us in the Federal Court of Canada, alleging that our activities relating to our bictegravir compound have infringed ViiV’s Canadian Patent No. 2,606,282 (the ‘282 patent), which was issued to Shionogi & Co. Ltd. and ViiV. The ‘282 patent is the compound patent covering ViiV’s dolutegravir. We believe that bictegravir does not infringe the claims of the ‘282 patent. To the extent that ViiV’s patent claims are interpreted to cover bictegravir, we believe those claims are invalid. We cannot predict the ultimate outcome of intellectual property claims related to bictegravir. If ViiV’s patents are upheld as valid and ViiV successfully proves infringement of those patents by bictegravir, we could be required to pay significant monetary damages. Litigation with Generic Manufacturers As part of the approval process for some of our products, FDA granted us a New Chemical Entity (NCE) exclusivity period during which other manufacturers’ applications for approval of generic versions of our product will not be approved. Generic manufacturers may challenge the patents protecting products that have been granted NCE exclusivity one year prior to the end of the NCE exclusivity period. Generic manufacturers have sought and may continue to seek FDA approval for a similar or identical drug through an abbreviated new drug application (ANDA), the application form typically used by manufacturers seeking approval of a generic drug. The sale of generic versions of our products earlier than 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. Current legal proceedings of significance with generic manufacturers include: HIV Products In 2018, we received notice that Zydus Pharmaceuticals (USA) Inc. (Zydus) submitted an ANDA to FDA requesting permission to manufacture and market generic versions of Truvada at various dosage strengths. In the notice, Zydus alleges that two patents associated with emtricitabine and four patents associated with the emtricitabine and tenofovir disoproxil fumarate fixed-dose combination are invalid, unenforceable and/or will not be infringed by Zydus’ manufacture, use or sale of generic versions of Truvada at various dosage strengths. In response, we filed a lawsuit against Zydus in the U.S. District Court for the District of New Jersey for infringement of our patents. In 2018, we received notice that Mylan Pharmaceuticals Inc. (Mylan) submitted an ANDA to FDA requesting permission to manufacture and market a generic version of Stribild. In the notice, Mylan alleges that one patent owned by Japan Tobacco Inc. (JT) and associated with elvitegravir is invalid, unenforceable and/or will not be infringed by Mylan’s manufacture, use or sale of a generic version of Stribild. In 2019, JT filed a lawsuit against Mylan in the U.S. District Court for the Northern District of West Virginia for infringement of its patent. In 2019, JT reached an agreement with Mylan to resolve the lawsuit, which has been dismissed. HCV Products In 2018, we received notices from Natco Pharma Limited (Natco) and Teva Pharmaceuticals (Teva) that they have each submitted an ANDA to FDA requesting permission to manufacture and market a generic version of Sovaldi. In Teva’s notice, it alleges that nine patents associated with sofosbuvir are invalid, unenforceable and/or will not be infringed by Teva’s manufacture, use or sale of generic versions of Sovaldi. In response, we filed lawsuits against Teva in the U.S. District Court for the District of New Jersey and the U.S. District Court for the District of Delaware for infringement of these patents. In Natco’s notice, it alleges that two patents associated with sofosbuvir are invalid, unenforceable and/or will not be infringed by Natco’s manufacture, use or sale of generic versions of Sovaldi. We also filed lawsuits against Natco in the U.S. District Court for the District of New Jersey and the U.S. District Court for the District of Delaware for infringement of these patents. In 2018, we reached an agreement with Teva to resolve the lawsuit, which has been dismissed. The settlement agreement has been filed with the Federal Trade Commission and Department of Justice as required by law. In 2019, we reached an agreement with Natco to resolve the lawsuit, which has been dismissed. The settlement agreement has been filed with the Federal Trade Commission and Department of Justice as required by law. 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 process may take several years. 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. Two of the original opposing parties have appealed, requesting full revocation. The appeal process may take several years. In 2016, several parties filed oppositions in the EPO requesting revocation of our granted European patent covering TAF that expires in 2021. In 2017, the EPO upheld the validity of the claims of our TAF patent. Three parties have appealed this decision. The appeal process may take several years. In 2017, several parties filed oppositions in the EPO requesting revocation of our granted European patent relating to TAF hemifumarate that expires in 2032. We responded to these oppositions, and a hearing was held in February 2019. The patent was upheld at this hearing. Three parties have appealed this decision. The appeal process may take several years. In 2016, three parties filed oppositions in the EPO requesting revocation of our granted European patent covering cobicistat that expires in 2027. In 2017, the EPO upheld the validity of the claims of our cobicistat patent. One of the original opposing parties has appealed this decision. The appeal process 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, TAF, TAF hemifumarate and cobicistat in the European Union 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 the European Medicines Agency. If we lose patent protection for any of these compounds, our revenues and results of operations could be negatively impacted for the years including and succeeding the year in which such exclusivity is lost, which may cause our stock price to decline. Government Investigations and Related Litigation In 2011, we received a subpoena from the U.S. Attorney’s Office for the Northern District of California requesting documents related to the manufacture, and related quality and distribution practices, of Complera, Atripla, Truvada, Viread, Emtriva, Hepsera and Letairis. We cooperated with the government’s inquiry. In 2014, the U.S. Department of Justice informed us that, following an investigation, it declined to intervene in a False Claims Act lawsuit filed by two former employees. Also in 2014, the former employees served a First Amended Complaint, and the U.S. District Court for the Northern District of California issued an order granting in its entirety, without prejudice, our motion to dismiss the First Amended Complaint. In 2015, the plaintiffs filed a Second Amended Complaint, and the District Court issued an order granting our motion to dismiss the Second Amended Complaint. The plaintiffs then filed a notice of appeal in the U.S. Court of Appeals for the Ninth Circuit. In 2017, the Ninth Circuit granted our motion to stay the case pending an appeal to the U.S. Supreme Court, and we filed a Petition for a Writ of Certiorari to the U.S. Supreme Court. In 2018, the Solicitor General submitted a brief for the United States to the U.S. Supreme Court stating its intention to file a motion to dismiss under the federal False Claims Act. In January 2019, the U.S. Supreme Court denied the petition and the case has been remanded to the District Court. In March 2019, the Department of Justice filed a motion to dismiss the Second Amended Complaint, which the District Court is expected to rule upon later this year. In 2016, we received a subpoena from the U.S. Attorney’s Office for the District of Massachusetts requesting documents related to our support of 501(c)(3) organizations that provide financial assistance to patients and documents concerning our provision of financial assistance to patients for our HCV products. We are cooperating with this inquiry. In 2017, we received a subpoena from the U.S. Attorney’s Office for the District of Massachusetts requesting documents related to our copay coupon program and Medicaid price reporting methodology. We are cooperating with this inquiry. In 2017, we received a voluntary request for information from the U.S. Attorney’s Office for the Eastern District of Pennsylvania requesting information related to our reimbursement support offerings, clinical education programs and interactions with specialty pharmacies for Sovaldi and Harvoni. In 2018, we received another voluntary request for information related to our speaker programs and advisory boards for our HCV and hepatitis B virus products. We are cooperating with these voluntary requests. In 2017, we received a subpoena from the California Department of Insurance and the Alameda County District Attorney’s Office requesting documents related to our marketing activities, reimbursement support offerings, clinical education programs and interactions with specialty pharmacies for Harvoni and Sovaldi. We are cooperating with this inquiry. In 2017, we also 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. 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 suffer kidney and/or bone injuries. The lawsuits, all of which are pending in state or federal court in California, involve hundreds of plaintiffs. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. 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. Antitrust and Consumer Protection We (along with JT, Bristol-Myers Squibb Company and Johnson & Johnson, Inc.) have been named as defendants in a class action lawsuit filed in 2019 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 lawsuit, a consolidated action pending in the United States District Court for the Northern District of California, seeks to bring claims on behalf of a nationwide class of end-payor purchasers. Plaintiffs seek damages, permanent injunctive relief, and other relief. We intend to vigorously defend ourselves in this action. While we believe this action is without merit, we cannot predict the ultimate outcome. If plaintiffs are successful in their claims, we could be required to pay significant monetary damages or could be subject to permanent injunctive relief. 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 business, financial position or results of operations.
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | STOCKHOLDERS’ EQUITY Stock Repurchase Program In the first quarter of 2016, our Board of Directors authorized a $12.0 billion stock repurchase program (2016 Program) under which repurchases may be made in the open market or in privately negotiated transactions. We started repurchases under the 2016 Program in April 2016. During the three and six months ended June 30, 2019, we repurchased and retired 9 million and 21 million shares of our common stock for $588 million and $1.4 billion, respectively, through open market transactions under the 2016 Program. During the three and six months ended June 30, 2018, we repurchased and retired 7 million and 20 million shares of our common stock for $450 million and $1.5 billion, respectively, through open market transactions under the 2016 Program. As of June 30, 2019, the remaining authorized repurchase amount under the 2016 Program was $3.7 billion. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in AOCI by component, net of tax during the six months ended June 30, 2019 and 2018 (in millions):
The amounts reclassified to net income for gains and losses on cash flow hedges are recorded as part of Product sales on our Condensed Consolidated Statements of Income. See Note 5. Derivative Financial Instruments for additional information. The amounts reclassified to net income for gains and losses on available-for-sale debt securities are recorded as part of Other income (expense), net on our Condensed Consolidated Statements of Income. The income tax impact allocated to each component of other comprehensive income was not material for the periods presented.
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Net Income Per Share Attributable to Gilead Common Stockholders |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share Attributable to Gilead Common Stockholders | NET INCOME PER SHARE ATTRIBUTABLE TO GILEAD COMMON STOCKHOLDERS Basic net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding during the period. Diluted net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock and other dilutive securities outstanding during the period. The potentially dilutive shares of our common stock resulting from the assumed exercise of outstanding stock options and equivalents were determined under the treasury stock method. Potential shares of common stock excluded from the computation of diluted net income per share attributable to Gilead common shareholders because their effect would have been antidilutive were 17 million and 14 million for the three and six months ended June 30, 2019, respectively, and 21 million and 16 million for the three and six months ended June 30, 2018, respectively. The following table summarizes the calculation of basic and diluted net income per share attributable to Gilead common stockholders (in millions, except per share amounts):
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Segment Information |
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Segment Information | SEGMENT INFORMATION We have one operating segment, which primarily focuses on the discovery, development and commercialization of innovative medicines in areas of unmet medical need. Therefore, our results of operations are reported on a consolidated basis consistent with internal management reporting reviewed by our chief operating decision maker, who is our chief executive officer. See Note 2. Revenues for a summary of disaggregated revenues by product and geographic region. The following table summarizes revenues from each of our customers who individually accounted for 10% or more of our total revenues (as a percentage of total revenues):
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Income Taxes |
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Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rate of 22.2% for the three months ended June 30, 2019 differed from the U.S. federal statutory rate of 21% primarily due to the tax on Global Intangible Low-Taxed Income, state taxes and our portion of the non-tax deductible Branded Prescription Drug (BPD) fee, partially offset by earnings from non-U.S. subsidiaries that operate in jurisdictions with lower tax rates than the United States. Our effective income tax rate of 19.3% for the six months ended June 30, 2019 differed from the U.S. federal statutory rate of 21% primarily due to a $119 million tax benefit related to settlements with taxing authorities and earnings from non-U.S. subsidiaries that operate in jurisdictions with lower tax rates than the United States, partially offset by the Global Intangible Low-Taxed Income, state taxes and our portion of the non-tax deductible BPD fee. Our effective income tax rates of 12.8% and 18.5% for the three and six months ended June 30, 2018, respectively, differed from the U.S. federal statutory rate of 21% primarily due to tax benefits of $202 million and $153 million, respectively, related to settlements of tax examinations and earnings from non-U.S. subsidiaries that operate in jurisdictions with lower tax rates than the United States, partially offset by the Global Intangible Low-Taxed Income and state taxes. We file federal, state and foreign income tax returns in the United States and in many foreign jurisdictions. For federal and California income tax purposes, the statute of limitations is open for 2013 and 2010 onwards, respectively. Our income tax returns are subject to audit by federal, state and foreign tax authorities. We are currently under examination by the IRS for the tax years from 2013 to 2015 and by various state and foreign jurisdictions. 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 regularly evaluate our exposures associated with our tax filing positions. We record liabilities related to uncertain tax positions in accordance with the income tax guidance which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Resolution of one or more of these uncertain tax positions in any period may have a material impact on the results of operations for that period. Our unrecognized tax benefits decreased by $119 million during the six months ended June 30, 2019 due to settlements with taxing authorities. As of June 30, 2019, we believe that it is reasonably possible that our unrecognized tax benefits may materially change in the next 12 months due to potential resolutions with a taxing authority. An estimate of the range of the reasonably possible change cannot be determined at this time. In June 2019, the U.S. Court of Appeals for the Ninth Circuit (Ninth Circuit) issued an opinion in Altera Corp. v. Commissioner reversing the prior decision of the United States Tax Court and requiring related parties in an intercompany cost-sharing arrangement to share expenses related to stock-based compensation. It is possible that there will be further judicial review of this issue; and as such, we believe the law to be unsettled and continue to recognize tax benefits for the exclusion of stock-based compensation from our cost-sharing arrangement. We will continue to monitor this issue and will reassess our evaluation of the financial reporting impact when more information becomes available.
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Subsequent Event (Notes) |
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Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT In July 2019, we entered into an Option, License and Collaboration Agreement (the Collaboration Agreement) with Galapagos NV (Galapagos), pursuant to which the parties entered into a global collaboration that covers Galapagos’ current and future product portfolio (other than filgotinib, an investigational, selective JAK1 inhibitor for inflammatory disease indications, which is already subject to the parties’ existing collaborative arrangement). Upon the closing of the Collaboration Agreement, we will make an up-front license and option fee payment of $3.95 billion and an equity investment in Galapagos of approximately $1.1 billion. Collaboration Agreement Under the Collaboration Agreement, we will acquire rights to participate in the development and commercialization of GLPG-1690, Galapagos’ Phase 3 candidate for idiopathic pulmonary fibrosis, and receive option rights to participate in the development and commercialization of GLPG-1972, a Phase 2b candidate for osteoarthritis, and Galapagos’ other current and future clinical programs that have entered clinical development during the first ten years of the collaboration. We may exercise our option to acquire a license to a program after the receipt of a data package from a completed, qualifying Phase 2 study for such program (or, in certain circumstances, the first Phase 3 study). If GLPG-1690 receives marketing approval in the United States, we will pay Galapagos $325 million as well as tiered royalties. If we exercise our option to acquire a license to the GLPG-1972 program after the completion of Galapagos’ ongoing Phase 2 trial, we will pay a $250 million option exercise fee. In addition, following opt-in, Galapagos would be eligible to receive up to $750 million in development, regulatory and commercial milestones on GLPG-1972 as well as tiered royalties. With respect to all other products in Galapagos’ current and future pipeline, if we exercise our option to acquire a license to a program, we will pay a $150 million option exercise fee per program. In addition, Galapagos will receive tiered royalties ranging from 20% to 24% on net sales of all Galapagos products optioned by us as part of the Collaboration Agreement (including GLPG-1690 and GLPG-1972), subject to customary royalty terms and adjustments. If we exercise our option rights for a program, we will share development costs and mutually agreed commercialization costs equally with Galapagos, subject to the ability of either party to conduct certain independent research or development activities and independent commercial activities in their respective territories. Galapagos will retain exclusive rights to commercialize products included in the optioned program in the European Union, Iceland, Norway, Lichtenstein and Switzerland, and we will have exclusive commercialization rights for such products for all other countries globally, except for GLPG-1972 where we will only acquire the U.S. rights as they are the only rights not subject to a license agreement between Galapagos and a third party. For each program we opt-in to, we are required to use commercially reasonable efforts to obtain marketing approval in the United States and Japan and to market, promote, sell or distribute one product for one indication in the United States and Japan. We may terminate the collaboration in its entirety or on a program-by-program and country-by-country basis with advance notice as well as following other customary termination events. Subscription Agreement In July 2019, we entered into a Subscription Agreement (the Subscription Agreement) with Galapagos pursuant to which we agreed to purchase, subject to certain conditions, the number of ordinary shares of Galapagos, no par value (the Subscription Shares), sufficient to bring our aggregate ownership percentage in Galapagos at the closing of the Subscription Agreement to 20.1% on a fully diluted basis. The price per subscription share is equal to €140.59. In addition, subject to and upon Galapagos’ shareholders’ approval, we will be issued and will subscribe to warrants that confer the right to subscribe for a number of new shares to be issued by Galapagos sufficient to bring the number of shares owned by us to 29.9% of the issued and outstanding shares. We are subject to a 10-year standstill restricting our ability to acquire voting securities of Galapagos exceeding more than 29.9% of the then issued and outstanding voting securities of Galapagos. We agreed not to, without the prior consent of Galapagos, dispose of any equity securities of Galapagos prior to the earlier of the second anniversary of the closing of the Subscription Agreement and the termination of the Subscription Agreement (if the closing does not occur). During the period running from the date that is two years following the closing of the Subscription Agreement until the date that is five years following the closing of the Subscription Agreement, we shall not, without the prior consent of Galapagos, dispose of any equity securities of Galapagos if after such disposal we would own less than 20.1% of the then issued and outstanding voting securities of Galapagos. We will have the right to have two designees appointed to Galapagos’ board of directors (the Galapagos Board) following the closing of the Subscription Agreement and the approval of Galapagos’ shareholders. In the event that our designees are not approved by Galapagos’ shareholders, our designees will be invited to the Galapagos Board as observers. The closing of the Collaboration Agreement and Subscription Agreement are subject to a number of closing conditions, including antitrust clearances required by the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder and receipt of merger control approval from the Austrian Federal Competition Authority.
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Summary of Significant Accounting Policies (Policies) |
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Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. The financial statements include all adjustments consisting of normal recurring adjustments that the management of Gilead Sciences, Inc. (Gilead, we, our or us) believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. The accompanying Condensed Consolidated Financial Statements include the accounts of Gilead, our wholly-owned subsidiaries and certain variable interest entities for which we are the primary beneficiary. All intercompany transactions have been eliminated. For consolidated entities where we own or are exposed to less than 100% of the economics, we record net income (loss) attributable to noncontrolling interest in our Condensed Consolidated Statements of Income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. We assess whether we are the primary beneficiary of a variable interest entity (VIE) at the inception of the arrangement and at each reporting date. This assessment is based on our power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and our obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. As of June 30, 2019, we did not have any material VIEs. The accompanying Condensed Consolidated Financial Statements and related Notes to Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.
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Significant Accounting Policies, Estimates and Judgments | Significant Accounting Policies, Estimates and Judgments The preparation of these Condensed Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. On an ongoing basis, we evaluate our significant accounting policies and estimates. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed each period and updated to reflect current information. Actual results may differ significantly from these estimates.
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Concentrations of Risk | Concentrations of Risk We are subject to credit risk from our portfolio of cash equivalents and marketable securities. Under our investment policy, we limit amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. We are not exposed to any significant concentrations of credit risk from these financial instruments. The goals of our investment policy, in order of priority, are as follows: safety and preservation of principal and diversification of risk; liquidity of investments sufficient to meet cash flow requirements; and a competitive after-tax rate of return. We are also subject to credit risk from our accounts receivable related to our product sales. The majority of our trade accounts receivable arises from product sales in the United States and Europe. To date, we have not experienced significant losses with respect to the collection of our accounts receivable. We believe that our allowance for doubtful accounts was adequate as of June 30, 2019.
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Recently Issued Accounting Standards | Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 “Leases” (ASU 2016-02) and subsequently issued supplemental adoption guidance and clarification (collectively, Topic 842). Topic 842 amends a number of aspects of lease accounting, including requiring lessees to recognize right-of-use assets and lease liabilities for operating leases with a lease term greater than one year. Topic 842 supersedes Topic 840 “Leases.” On January 1, 2019, we adopted Topic 842 using the modified retrospective approach. Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 840. We elected the package of practical expedients permitted under the transition guidance within Topic 842, which allowed us to carry forward the historical lease classification, retain the initial direct costs for any leases that existed prior to the adoption of the standard and not reassess whether any contracts entered into prior to the adoption are leases. We also elected to account for lease and nonlease components in our lease agreements as a single lease component in determining lease assets and liabilities. In addition, we elected not to recognize the right-of-use assets and liabilities for leases with lease terms of one year or less. Upon adoption of Topic 842, we recorded $441 million of right-of-use assets within Other long-term assets and $490 million of operating lease liabilities, classified primarily within Other long-term obligations on our Condensed Consolidated Balance Sheet, as of January 1, 2019. The adoption did not have a material impact on our Condensed Consolidated Statements of Income or Condensed Consolidated Statements of Cash Flows. See Note 10. Leases for additional information. Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update No. 2016-13 “Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets. In April 2019, the FASB issued clarification to ASU 2016-13 within ASU 2019-04 “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The guidance will become effective for us beginning in the first quarter of 2020 and must be adopted using a modified retrospective approach, with certain exceptions. We are evaluating the impact of the adoption of these standards, but we currently do not expect a material impact on our Condensed Consolidated Financial Statements. In November 2018, the FASB issued Accounting Standards Update No. 2018-18 “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (ASU 2018-18). ASU 2018-18 clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue if the counterparty is not a customer for that transaction. This guidance will become effective for us beginning in the first quarter of 2020 and will be applied retrospectively to January 1, 2018 when we initially adopted Topic 606. Early adoption is permitted. We are evaluating the impact of the adoption of this standard, but we currently do not expect a material impact on our Condensed Consolidated Financial Statements.
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Revenues Disaggregation of Revenues (Tables) |
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenues | The following table disaggregates our product sales by product and geographic region and disaggregates our royalty, contract and other revenues by geographic region (in millions):
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 (in millions):
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Summary of Classification of Equity Securities | The following table summarizes the classification of our equity securities in our Condensed Consolidated Balance Sheets (in millions):
|
Available-for-Sale Debt Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Available-for-Sale Debt Securities from Cost Basis to Fair Value | The following table summarizes our available-for-sale debt securities (in millions):
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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):
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Summary of Available-for-Sale Debt Securities by Contractual Maturity | The following table summarizes our available-for-sale debt securities by contractual maturity (in millions):
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Summary of Available-for-Sale Debt Securities in a Continuous Loss Position Deemed not to be Other-than-Temporarily Impaired | The following table summarizes our available-for-sale debt securities that were in a continuous unrealized loss position, but were not deemed to be other-than-temporarily impaired (in millions):
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of classification and fair value of derivative instruments | The following table summarizes the classification and fair values of derivative instruments in our Condensed Consolidated Balance Sheets (in millions):
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Summary of effect of foreign currency exchange contracts | The following table summarizes the effect of our foreign currency exchange contracts on our Condensed Consolidated Financial Statements (in millions):
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Summary of potential effect of offsetting derivatives | The following table summarizes the potential effect of offsetting our foreign currency exchange contracts on our Condensed Consolidated Balance Sheets (in millions):
|
Other Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | The following table summarizes our inventories (in millions):
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Schedule of Other Accrued Liabilities | The following table summarizes the components of other accrued liabilities (in millions):
|
Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The following table summarizes our intangible assets, net (in millions):
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Schedule of Indefinite-Lived Intangible Assets | The following table summarizes our intangible assets, net (in millions):
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Schedule of Estimated Future Amortization Expense | The following table summarizes the estimated future amortization expense associated with our finite-lived intangible assets as of June 30, 2019 (in millions):
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Debt and Credit Facilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt Carrying Amount | The following table summarizes our borrowings under various financing arrangements (in millions):
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet and Other Information Related to Operating Leases | The following table summarizes balance sheet and other information related to our operating leases as of June 30, 2019 (in millions, except weighted average data):
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Supplemental Information Related to Operating Leases | The following table summarizes other supplemental information related to our operating leases (in millions):
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Operating Lease Aggregate Future Lease Payments | The following table summarizes a maturity analysis of our operating lease liabilities showing the aggregate lease payments as of June 30, 2019 (in millions):
The following table summarizes the aggregate undiscounted non-cancelable future minimum lease payments for operating leases under the prior leases standard as of December 31, 2018 (in millions):
|
Stockholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in AOCI by component, net of tax during the six months ended June 30, 2019 and 2018 (in millions):
|
Net Income Per Share Attributable to Gilead Common Stockholders (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Calculation of Basic and Diluted Earnings Per Share | The following table summarizes the calculation of basic and diluted net income per share attributable to Gilead common stockholders (in millions, except per share amounts):
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Revenue by Major Customers | The following table summarizes revenues from each of our customers who individually accounted for 10% or more of our total revenues (as a percentage of total revenues):
|
Summary of Significant Accounting Policies Accounting Standards Adoption 2016-02 (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Jan. 01, 2019 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets, net | $ 504 | |
Operating Lease, Liability | $ 554 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets, net | $ 441 | |
Operating Lease, Liability | $ 490 |
Revenues Revenues Recognized from Performance Obligations Satisfied in Prior Periods (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Contract with Customer, Performance Obligation Satisfied in Previous Period [Line Items] | ||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 171 | $ 131 | $ 326 | $ 228 |
Change in estimate variable consideration [Member] | ||||
Contract with Customer, Performance Obligation Satisfied in Previous Period [Line Items] | ||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 193 | $ 91 | $ 300 | $ 4 |
Revenues Contract Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Contract Assets [Abstract] | ||
Contract assets | $ 149 | $ 125 |
Fair Value Measurements Summary of Classification on Balance Sheet (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 4,351 | $ 6,310 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 3,007 | 5,305 |
Prepaid and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1,178 | 863 |
Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 166 | $ 142 |
Fair Value Measurements Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain on investment of equity securities | $ 57 | $ 254 | |||
Unrealized loss on investment of equity securities | $ 64 | $ 19 | |||
Short-term and long-term debt | 26,083 | 26,083 | $ 27,322 | ||
Market value | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term and long-term debt | 28,000 | 28,000 | 27,100 | ||
Carrying value | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term and long-term debt | $ 26,100 | $ 26,100 | $ 27,300 |
Available-for-Sale Debt Securities - Summary of the Balance Sheet Classification of Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Available-for-Sale Debt Securities | ||
Available-for-sale debt securities | $ 25,059 | $ 24,164 |
Cash and cash equivalents | ||
Available-for-Sale Debt Securities | ||
Available-for-sale debt securities | 6,065 | 10,592 |
Short-term marketable securities | ||
Available-for-Sale Debt Securities | ||
Available-for-sale debt securities | 15,943 | 12,149 |
Long-term marketable securities | ||
Available-for-Sale Debt Securities | ||
Available-for-sale debt securities | $ 3,051 | $ 1,423 |
Available-for-Sale Debt Securities - Summary of Available-for-Sale Debt Securities by Contractual Maturity (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Amortized Cost | ||
Within one year | $ 22,010 | |
After one year through five years | 3,016 | |
After five years through ten years | 19 | |
After ten years | 17 | |
Amortized Cost | 25,062 | $ 24,216 |
Fair Value | ||
Within one year | 22,008 | |
After one year through five years | 3,015 | |
After five years through ten years | 19 | |
After ten years | 17 | |
Available-for-sale debt securities | $ 25,059 | $ 24,164 |
Available-for-Sale Debt Securities - Additional Information (Details) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019
USD ($)
position
|
Dec. 31, 2018
USD ($)
position
|
|
Debt Securities, Available-for-sale [Abstract] | ||
Securities in unrealized loss positions, number of positions (securities) | position | 593 | 1,348 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale | $ | $ 0 | $ 0 |
Derivative Financial Instruments - Summary of Effect of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gains recognized in AOCI | $ 1 | $ 119 | $ 29 | $ 58 |
Gains (losses) reclassified from AOCI into product sales | 36 | (45) | 65 | (93) |
Gains (losses) recognized in Other income (expense), net | $ (5) | $ 10 | $ (11) | $ (4) |
Derivative Financial Instruments - Summary of Potential Effect of Offsetting Derivatives (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets/Liabilities | $ 48 | $ 78 |
Gross Amounts Offset on our Condensed Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets/Liabilities Presented on our Condensed Consolidated Balance Sheets | 48 | 78 |
Derivative Financial Instruments | (6) | (1) |
Cash Collateral Received/ Pledged | 0 | 0 |
Net Amount (Legal Offset) | 42 | 77 |
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Assets/Liabilities | (6) | (1) |
Gross Amounts Offset on our Condensed Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets/Liabilities Presented on our Condensed Consolidated Balance Sheets | (6) | (1) |
Derivative Financial Instruments | 6 | 1 |
Cash Collateral Received/ Pledged | 0 | 0 |
Net Amount (Legal Offset) | $ 0 | $ 0 |
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Derivative [Line Items] | |||||
Notional amounts on foreign currency exchange contracts | $ 2,900 | $ 2,900 | $ 2,200 | ||
Gain (Loss) on Discontinuation of Cash Flow Hedges | $ 0 | $ 0 | $ 0 | $ 0 | |
Maximum | |||||
Derivative [Line Items] | |||||
Maturity on derivative instruments | 18 years | ||||
Estimate of time to transfer | 12 years |
Collaborative And Other Arrangements Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Collaborative and Other Arrangements [Abstract] | ||||
Cash Outflows and Accrued Up-front Payments Related to Collaborative and Other Similar Arrangements | $ 206 | $ 284 | $ 393 | $ 304 |
Up-front Collaboration and Licensing Expenses Related to Collaborative and Similar Arrangements | $ 165 | $ 160 | $ 291 | $ 160 |
Other Financial Information Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Other Financial Information [Abstract] | ||
Raw materials | $ 1,832 | $ 1,888 |
Work in process | 265 | 235 |
Finished goods | 498 | 507 |
Total | 2,595 | 2,630 |
Inventories | 884 | 814 |
Other long-term assets | 1,711 | 1,816 |
Total | $ 2,595 | $ 2,630 |
Other Financial Information Other Accrued Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Other Financial Information [Abstract] | ||
Compensation and employee benefits | $ 433 | $ 555 |
Accrued Liabilities and Other Liabilities | 175 | 365 |
Other accrued expenses | 2,152 | 2,219 |
Total | $ 2,760 | $ 3,139 |
Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2019 (remaining six months) | $ 563 | |
2020 | 1,125 | |
2021 | 1,125 | |
2022 | 1,125 | |
2023 | 1,125 | |
Thereafter | 8,046 | |
Total | $ 13,109 | $ 13,694 |
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Amortization of Intangible Assets | $ 288 | $ 300 | $ 587 | $ 601 |
Debt and Credit Facilities Additional Information (Details) - USD ($) $ in Millions |
1 Months Ended | |||
---|---|---|---|---|
Apr. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Term Loan Facilities | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500 | |||
Amount outstanding | $ 0 | $ 0 | ||
Senior Unsecured Note Issued September 2017 [Member] | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Repayments of Unsecured Debt | $ 750 | |||
Senior Unsecured Note Issued September 2014 [Member] | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Repayments of Unsecured Debt | $ 500 |
Leases Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
Leases [Abstract] | ||
Lease term extension | 15 years | 15 years |
Termination period | one year | |
Operating lease expense | $ 38 | $ 74 |
Leases Balance Sheet Location Detail (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Right-of-use assets, net | $ 504 |
Lease liabilities - current | 73 |
Lease liabilities - noncurrent | $ 481 |
Weighted average remaining lease term | 9 years 6 months |
Weighted average discount rate | 3.60% |
Leases Supplemental Information Related to Leases (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 18 | $ 36 |
Right-of-use assets obtained in exchange for lease liabilities | $ 70 | $ 100 |
Leases Summary of Operating Lease Liabilities Maturity (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Operating Leases, Summary of Aggregate Future Lease Payments After Adoption of 842 | ||
2019 (remaining six months) | $ 47 | |
2020 | 87 | |
2021 | 83 | |
2022 | 75 | |
2023 | 66 | |
Thereafter | 305 | |
Total undiscounted lease payments | 663 | |
Less: imputed interest | (109) | |
Total discounted lease payments | $ 554 | |
Operating Leases, Summary of Aggregate Future Lease Payments Before Adoption of 842 | ||
2019 | $ 89 | |
2020 | 78 | |
2021 | 66 | |
2022 | 60 | |
2023 | 52 | |
Thereafter | 229 | |
Total minimum lease payments | $ 574 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Loss Contingencies [Line Items] | ||||
Litigation accrual | $ 0 | $ 0 | ||
Indenix [Member] | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded | $ 2,540 | |||
Motion invalidated past damages, amount | $ 2,540 |
Stockholders' Equity Stock Repurchase Program (Details) - 2016 Stock Repurchase Program - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jan. 28, 2016 |
|
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount | $ 12,000 | ||||
Repurchases of common stock (in shares) | 9 | 7 | 21 | 20 | |
Repurchases of common stock, amount | $ 588 | $ 450 | $ 1,400 | $ 1,500 | |
Remaining authorized repurchase amount | $ 3,700 | $ 3,700 |
Net Income Per Share Attributable to Gilead Common Stockholders - Additional Information (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Additional Information [Abstract] | ||||
Antidilutive securities excluded from earnings per share computation | 17 | 21 | 14 | 16 |
Net Income Per Share Attributable to Gilead Common Stockholders - Schedule of the Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Earnings Per Share [Abstract] | ||||
Net income attributable to Gilead | $ 1,880 | $ 1,817 | $ 3,855 | $ 3,355 |
Shares used in per share calculation - basic (in shares) | 1,270 | 1,298 | 1,273 | 1,302 |
Dilutive effect of stock options and equivalents (in shares) | 7 | 10 | 7 | 12 |
Shares used in per share calculation - diluted (in shares) | 1,277 | 1,308 | 1,280 | 1,314 |
Net income per share attributable to Gilead common stockholders - basic (usd per share) | $ 1.48 | $ 1.40 | $ 3.03 | $ 2.58 |
Net income per share attributable to Gilead common stockholders - diluted (usd per share) | $ 1.47 | $ 1.39 | $ 3.01 | $ 2.55 |
Segment Information - Summary of Revenue by Major Customers (Details) - segment |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Segment Reporting [Abstract] | ||||
Number of operating segments | 1 | |||
Customer Concentration Risk | Sales Revenue, Net | AmerisourceBergen Corp. | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenues | 20.00% | 20.00% | 20.00% | 20.00% |
Customer Concentration Risk | Sales Revenue, Net | Cardinal Health, Inc. | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenues | 21.00% | 20.00% | 21.00% | 20.00% |
Customer Concentration Risk | Sales Revenue, Net | McKesson Corp. | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenues | 20.00% | 21.00% | 20.00% | 21.00% |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.20% | 12.80% | 19.30% | 18.50% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% |
Tax Adjustments, Settlements, and Unusual Provisions | $ (202) | $ (119) | $ (153) | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 119 |
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