Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Gilead Sciences Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	1,781)	2,539)	1,776)	1,450)	1,646)
State	80)	32)	228)	198)	135)
Foreign	381)	232)	185)	155)	124)
Current	2,242)	2,803)	2,189)	1,803)	1,905)
Federal	(1,126)	(1,502)	(250)	(164)	(843)
State	170)	(154)	185)	(97)	(42)
Foreign	(39)	101)	(47)	38)	(1,224)
Deferred	(995)	(1,555)	(112)	(223)	(2,109)
Income tax expense (benefit)	1,247)	1,248)	2,077)	1,580)	(204)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Gilead Sciences Inc. current increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Gilead Sciences Inc. deferred decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Income tax expense (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Gilead Sciences Inc. income tax expense (benefit) decreased from 2021 to 2022 and from 2022 to 2023.

Gilead Sciences Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State taxes, net of federal benefit	2.30%	-2.00%	2.50%	4.20%	0.40%
Foreign earnings at different rates	-0.20%	-0.60%	-0.30%	-10.00%	2.50%
Research and other credits	-4.30%	-2.70%	-1.60%	-6.90%	-1.90%
US tax on foreign earnings	1.00%	2.70%	1.10%	7.20%	4.30%
Foreign-derived intangible income deduction	-2.10%	-3.80%	-1.60%	-8.00%	-3.20%
Tax examinations	-4.70%	-0.20%	-0.70%	-10.20%	-2.40%
Acquired IPR&D & related charges	1.30%	1.40%	0.00%	56.20%	0.00%
Changes in valuation allowance	0.90%	1.20%	1.50%	6.70%	0.00%
Non-taxable unrealized (gain) loss on investment	0.20%	0.70%	1.80%	23.00%	-5.00%
Other	2.80%	3.80%	1.40%	11.50%	-19.70%
Effective tax rate	18.20%	21.50%	25.10%	94.70%	-4.00%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Gilead Sciences Inc. effective tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Gilead Sciences Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net operating loss carryforwards	417)	430)	413)	587)	184)
Stock-based compensation	94)	95)	117)	113)	113)
Reserves and accruals not currently deductible	644)	645)	700)	444)	423)
Excess of tax basis over book basis of intangible assets	1,041)	1,067)	1,157)	1,177)	1,232)
Upfront and milestone payments	1,271)	1,298)	1,310)	1,144)	988)
Research and other credit carryforwards	283)	233)	249)	219)	247)
Equity investments	221)	196)	117)	116)	—)
Liability related to future royalties	296)	278)	274)	247)	—)
Capitalized R&D expenditures	1,623)	784)	—)	—)	—)
Other, net	320)	263)	292)	311)	168)
Deferred tax assets before valuation allowance	6,210)	5,289)	4,629)	4,358)	3,355)
Valuation allowance	(663)	(599)	(520)	(398)	(217)
Deferred tax assets	5,547)	4,690)	4,109)	3,960)	3,138)
Property, plant and equipment	(274)	(234)	(227)	(202)	(88)
Excess of book basis over tax basis of intangible assets	(5,481)	(5,728)	(6,719)	(6,168)	(1,401)
Other	(184)	(160)	(180)	(202)	(93)
Deferred tax liabilities	(5,939)	(6,122)	(7,126)	(6,572)	(1,582)
Net deferred tax assets (liabilities)	(392)	(1,432)	(3,017)	(2,612)	1,556)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Gilead Sciences Inc. deferred tax assets before valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Gilead Sciences Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Gilead Sciences Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Gilead Sciences Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax asset	1,196)	1,241)	1,339)	1,302)	1,556)
	Deferred tax liability	1,588)	2,673)	4,356)	3,914)	—)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax asset	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Gilead Sciences Inc. deferred tax asset decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liability	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Gilead Sciences Inc. deferred tax liability decreased from 2021 to 2022 and from 2022 to 2023.

Gilead Sciences Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	62,125)	63,171)	67,952)	68,407)	61,627)
Less: Noncurrent deferred tax assets, net	1,196)	1,241)	1,339)	1,302)	1,556)
Total assets (adjusted)	60,929)	61,930)	66,613)	67,105)	60,071)
Adjustment to Total Liabilities
Total liabilities (as reported)	39,376)	41,962)	46,888)	50,186)	38,977)
Less: Noncurrent deferred tax liabilities, net	1,588)	2,673)	4,356)	3,914)	—)
Total liabilities (adjusted)	37,788)	39,289)	42,532)	46,272)	38,977)
Adjustment to Total Gilead Stockholders’ Equity
Total Gilead stockholders’ equity (as reported)	22,833)	21,240)	21,069)	18,202)	22,525)
Less: Net deferred tax assets (liabilities)	(392)	(1,432)	(3,017)	(2,612)	1,556)
Total Gilead stockholders’ equity (adjusted)	23,225)	22,672)	24,086)	20,814)	20,969)
Adjustment to Net Income Attributable To Gilead
Net income attributable to Gilead (as reported)	5,665)	4,592)	6,225)	123)	5,386)
Add: Deferred income tax expense (benefit)	(995)	(1,555)	(112)	(223)	(2,109)
Net income attributable to Gilead (adjusted)	4,670)	3,037)	6,113)	(100)	3,277)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Gilead Sciences Inc., Financial Data: Reported vs. Adjusted

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Gilead Sciences Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	21.03%	17.02%	23.05%	0.51%	24.35%
Adjusted net profit margin	17.34%	11.26%	22.63%	-0.41%	14.82%
Total Asset Turnover
Reported total asset turnover	0.43	0.43	0.40	0.36	0.36
Adjusted total asset turnover	0.44	0.44	0.41	0.36	0.37
Financial Leverage
Reported financial leverage	2.72	2.97	3.23	3.76	2.74
Adjusted financial leverage	2.62	2.73	2.77	3.22	2.86
Return on Equity (ROE)
Reported ROE	24.81%	21.62%	29.55%	0.68%	23.91%
Adjusted ROE	20.11%	13.40%	25.38%	-0.48%	15.63%
Return on Assets (ROA)
Reported ROA	9.12%	7.27%	9.16%	0.18%	8.74%
Adjusted ROA	7.66%	4.90%	9.18%	-0.15%	5.46%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Gilead Sciences Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Gilead Sciences Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Gilead Sciences Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Gilead Sciences Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Gilead Sciences Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Gilead Sciences Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead	5,665)	4,592)	6,225)	123)	5,386)
Product sales	26,934)	26,982)	27,008)	24,355)	22,119)
Profitability Ratio
Net profit margin¹	21.03%	17.02%	23.05%	0.51%	24.35%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead	4,670)	3,037)	6,113)	(100)	3,277)
Product sales	26,934)	26,982)	27,008)	24,355)	22,119)
Profitability Ratio
Adjusted net profit margin²	17.34%	11.26%	22.63%	-0.41%	14.82%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to Gilead ÷ Product sales
= 100 × 5,665 ÷ 26,934 = 21.03%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Gilead ÷ Product sales
= 100 × 4,670 ÷ 26,934 = 17.34%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Gilead Sciences Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Product sales	26,934)	26,982)	27,008)	24,355)	22,119)
Total assets	62,125)	63,171)	67,952)	68,407)	61,627)
Activity Ratio
Total asset turnover¹	0.43	0.43	0.40	0.36	0.36
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Product sales	26,934)	26,982)	27,008)	24,355)	22,119)
Adjusted total assets	60,929)	61,930)	66,613)	67,105)	60,071)
Activity Ratio
Adjusted total asset turnover²	0.44	0.44	0.41	0.36	0.37

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Product sales ÷ Total assets
= 26,934 ÷ 62,125 = 0.43

² Adjusted total asset turnover = Product sales ÷ Adjusted total assets
= 26,934 ÷ 60,929 = 0.44

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Gilead Sciences Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	62,125)	63,171)	67,952)	68,407)	61,627)
Total Gilead stockholders’ equity	22,833)	21,240)	21,069)	18,202)	22,525)
Solvency Ratio
Financial leverage¹	2.72	2.97	3.23	3.76	2.74
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	60,929)	61,930)	66,613)	67,105)	60,071)
Adjusted total Gilead stockholders’ equity	23,225)	22,672)	24,086)	20,814)	20,969)
Solvency Ratio
Adjusted financial leverage²	2.62	2.73	2.77	3.22	2.86

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Gilead stockholders’ equity
= 62,125 ÷ 22,833 = 2.72

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Gilead stockholders’ equity
= 60,929 ÷ 23,225 = 2.62

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Gilead Sciences Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead	5,665)	4,592)	6,225)	123)	5,386)
Total Gilead stockholders’ equity	22,833)	21,240)	21,069)	18,202)	22,525)
Profitability Ratio
ROE¹	24.81%	21.62%	29.55%	0.68%	23.91%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead	4,670)	3,037)	6,113)	(100)	3,277)
Adjusted total Gilead stockholders’ equity	23,225)	22,672)	24,086)	20,814)	20,969)
Profitability Ratio
Adjusted ROE²	20.11%	13.40%	25.38%	-0.48%	15.63%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income attributable to Gilead ÷ Total Gilead stockholders’ equity
= 100 × 5,665 ÷ 22,833 = 24.81%

² Adjusted ROE = 100 × Adjusted net income attributable to Gilead ÷ Adjusted total Gilead stockholders’ equity
= 100 × 4,670 ÷ 23,225 = 20.11%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Gilead Sciences Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead	5,665)	4,592)	6,225)	123)	5,386)
Total assets	62,125)	63,171)	67,952)	68,407)	61,627)
Profitability Ratio
ROA¹	9.12%	7.27%	9.16%	0.18%	8.74%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead	4,670)	3,037)	6,113)	(100)	3,277)
Adjusted total assets	60,929)	61,930)	66,613)	67,105)	60,071)
Profitability Ratio
Adjusted ROA²	7.66%	4.90%	9.18%	-0.15%	5.46%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income attributable to Gilead ÷ Total assets
= 100 × 5,665 ÷ 62,125 = 9.12%

² Adjusted ROA = 100 × Adjusted net income attributable to Gilead ÷ Adjusted total assets
= 100 × 4,670 ÷ 60,929 = 7.66%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Gilead Sciences Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Gilead Sciences Inc. (NASDAQ:GILD)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Gilead Sciences Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Gilead Sciences Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)