Gilead Sciences : Fourth Quarter 2021 Supplementary Info

				CONDENSED CONSOLIDATED BALANCE SHEETS
							(unaudited)
				2019						2020							2021
(in millions)	Mar 31		Jun 30	Sep 30	Dec 31	Mar 31	Jun 30	Sep 30	Dec 31	Mar 31		Jun 30	Sep 30	Dec 31
Assets
Cash, cash equivalents and marketable securities	$	30,125	$	30,234	$	25,051	$	25,840	$	24,314	$ 21,190	$	26,049	$	7,910	$	6,245	$	7,361	$	6,837	$	7,829
Accounts receivable, net		3,283		3,396		3,315		3,582		3,907	3,194		3,913		4,892		3,925		4,149		4,566		4,493
Inventories		898		884		882		2,067		2,021	1,967		1,953		3,014		2,996		2,988		2,797		2,734
Property, plant and equipment, net		4,116		4,249		4,377		4,502		4,564	4,653		4,810		4,967		4,990		4,996		5,037		5,121
Intangible assets, net		15,438		15,152		14,864		13,786		13,502	13,225		12,939		33,126		34,781		34,341		33,900		33,455
Goodwill		4,117		4,117		4,117		4,117		4,117	4,117		4,117		8,108		8,334		8,334		8,332		8,332
Other assets		4,860		5,178		6,540		7,733		7,316	7,588		7,097		6,390		6,221		5,815		5,629		5,988
Total assets	$	62,837	$	63,210	$	59,146	$	61,627	$	59,741	$ 55,934	$	60,878	$	68,407	$	67,492	$	67,984	$	67,098	$	67,952
Liabilities and Stockholders' Equity
Current liabilities	$	9,397	$	8,961	$	9,567	$	9,759	$	8,879	$ 10,564	$	9,509	$	11,397	$	9,705	$	10,214	$	10,245	$	11,610
Long-term liabilities		31,349		31,498		28,843		29,218		28,683	27,228		33,898		38,789		38,823		38,060		35,382		35,278
Stockholders' equity		22,091		22,751		20,736		22,650		22,179	18,142		17,471		18,221		18,964		19,710		21,471		21,064
Total liabilities and stockholders' equity	$	62,837	$	63,210	$	59,146	$	61,627	$	59,741	$ 55,934	$	60,878	$	68,407	$	67,492	$	67,984	$	67,098	$	67,952

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1

(in millions, except per share amounts)

Revenues: Product sales

Royalty, contract and other revenues Total revenues

Costs and expenses: Cost of goods sold

Research and development expenses

Acquired in-process research and development expenses

Selling, general and administrative expenses Total costs and expenses

Income (loss) from operations Interest expense

Other income (expense), net Income (loss) before income taxes Income tax (expense) benefit Net income (loss)

Net loss attributable to noncontrolling interest Net income (loss) attributable to Gilead

Net income (loss) per share attributable to Gilead common stockholders - basic

Shares used in per share calculation - basic

Net income (loss) per share attributable to Gilead common stockholders - diluted

Shares used in per share calculation - diluted Cash dividends declared per share

GAAP:

Product gross margin

Research and development expenses as a % of revenues

Acquired in-process research and development expenses as a % of revenues

Selling, general and administrative expenses as a % of revenues

Operating expenses as a % of revenues Operating margin

Effective tax rate

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

(unaudited)

				2019										2020										2021
	Q1		Q2	Q3		Q4		FY19		Q1		Q2		Q3		Q4		FY20		Q1		Q2		Q3		Q4		FY21
$	5,200	$	5,607	$ 5,516	$	5,796	$22,119	$	5,467	$	5,067	$	6,493	$	7,328	$24,355	$	6,340	$	6,152	$	7,356	$	7,160	$27,008
	81		78	88		83		330		81		76		84		93		334		83		65		65		84		297
	5,281		5,685	5,604		5,879	22,449		5,548		5,143		6,577		7,421	24,689		6,423		6,217		7,421		7,244	27,305
	957		1,000	1,035		1,683		4,675		969		1,064		1,141		1,398		4,572		1,361		1,390		1,223		2,627		6,601
	931		995	1,030		1,099		4,055		1,004		1,299		1,158		1,578		5,039		1,055		1,134		1,147		2,027		5,363
	126		165	3,960		800		5,051		97		4,524		1,171		64		5,856		62		96		19		-		177
	1,030		1,095	1,052		1,204		4,381		1,076		1,239		1,106		1,730		5,151		1,055		1,351		1,190		1,650		5,246
	3,044		3,255	7,077		4,786	18,162		3,146		8,126		4,576		4,770	20,618		3,533		3,971		3,579		6,304	17,387
	2,237		2,430	(1,473)		1,093		4,287		2,402	(2,983)		2,001		2,651		4,071		2,890		2,246		3,842		940		9,918
	(254)		(248)	(250)		(243)		(995)		(241)		(240)		(236)		(267)		(984)		(257)		(256)		(250)		(238)	(1,001)
	367		228	222		1,051		1,868		(158)		250		(940)		(570)	(1,418)		(369)		(173)		(154)		57		(639)
	2,350		2,410	(1,501)		1,901		5,160		2,003	(2,973)		825		1,814		1,669		2,264		1,817		3,438		759		8,278
	(382)		(535)	333		788		204		(465)		(373)		(472)		(270)	(1,580)		(542)		(300)		(852)		(383)	(2,077)
	1,968		1,875	(1,168)		2,689		5,364		1,538	(3,346)		353		1,544		89		1,722		1,517		2,586		376		6,201
	7		5	3		7		22		13		7		7		7		34		7		5		6		6		24
$	1,975	$	1,880	$(1,165)	$	2,696	$ 5,386	$	1,551	$	(3,339)	$	360	$	1,551	$	123	$	1,729	$	1,522	$	2,592	$	382	$ 6,225
$	1.55	$	1.48	$ (0.92)	$	2.13	$	4.24	$	1.23	$	(2.66)	$	0.29	$	1.24	$	0.10	$	1.38	$	1.21	$	2.06	$	0.30	$	4.96
	1,276		1,270	1,267		1,266		1,270		1,262		1,255		1,255		1,255		1,257		1,256		1,255		1,256		1,256		1,256
$	1.54	$	1.47	$ (0.92)	$	2.12	$	4.22	$	1.22	$	(2.66)	$	0.29	$	1.23	$	0.10	$	1.37	$	1.21	$	2.05	$	0.30	$	4.93
	1,283		1,277	1,267		1,273		1,277		1,270		1,255		1,261		1,259		1,263		1,262		1,260		1,262		1,262		1,262
$	0.63	$	0.63	$ 0.63	$	0.63	$	2.52	$	0.68	$	0.68	$	0.68	$	0.68	$	2.72	$	0.71	$	0.71	$	0.71	$	0.71	$	2.84
	81.6 %	82.2 %	81.2 %	71.0 % 78.9 %	82.3 % 79.0 %	82.4 %		80.9 % 81.2 %		78.5 %		77.4 % 83.4 %		63.3 % 75.6 %
	17.6 %	17.5 %	18.4 %	18.7 % 18.1 %	18.1 %	25.3 %	17.6 %		21.3 %		20.4 %		16.4 %		18.2 %		15.5 %		28.0 % 19.6 %
	2.4 %		2.9 %	70.7 %	13.6 % 22.5 %		1.7 % 88.0 %	17.8 %		0.9 % 23.7 %		1.0 %		1.5 %		0.3 %		- %		0.6 %
	19.5 %	19.3 %	18.8 %	20.5 % 19.5 %	19.4 % 24.1 %	16.8 %		23.3 % 20.9 %		16.4 %		21.7 % 16.0 %		22.8 % 19.2 %
	39.5 %	39.7 %	107.8 %	52.8 % 60.1 %	39.2 % 137.3 %	52.2 %		45.4 % 65.0 %		33.8 %		41.5 % 31.7 %		50.8 % 39.5 %
	42.4 %	42.7 %	(26.3)%	18.6 % 19.1 %	43.3 % (58.0)%	30.4 %		35.7 % 16.5 %		45.0 %		36.1 % 51.8 %		13.0 % 36.3 %
	16.3 %	22.2 %	22.2 %	(41.5)%		(4.0)%	23.2 %	(12.5)%	57.2 %		14.9 %		94.7 %		23.9 %		16.5 %		24.8 %		50.5 %		25.1 %

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2

(in millions)

Net cash provided by operating activities

Net cash provided by (used in) investing activities Net cash provided by (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

(in millions)

Net cash provided by operating activities Capital expenditures

Free cash flow

SELECTED CASH FLOW INFORMATION

(unaudited)

			2019									2020									2021
Q1		Q2		Q3		Q4	FY19		Q1		Q2		Q3		Q4	FY20		Q1		Q2		Q3		Q4	FY21
$ 1,577	$ 2,342	$ 2,645	$ 2,580		$ 9,144	$ 1,436	$ 2,566	$ 2,250	$ 1,916		$ 8,168	$ 2,610	$ 2,316	$ 3,253	$ 3,205		$11,384
(244)	(6,163)	(1,841)	431		(7,817)	(344)	(5,023)	(271)	(8,977)		(14,615)	(2,042)	(577)	(234)	(278)		(3,131)
(2,366)	(1,857)	(2,515)	(896)		(7,634)	(2,611)	(874)	4,124	131		770	(2,477)	(931)	(3,527)	(1,942)		(8,877)
20		(9)		(55)		42		(2)	(61)	26	37	41		43	(23)	20	(23)	(9)		(35)
(1,013)		(5,687)		(1,766)		2,157		(6,309)	(1,580)		(3,305)		6,140		(6,889)		(5,634)	(1,932)		828		(531)		976		(659)
17,940		16,927		11,240		9,474		17,940	11,631	10,051	6,746	12,886		11,631	5,997	4,065	4,893	4,362		5,997
$16,927		$11,240		$ 9,474		$11,631		$11,631	$10,051		$ 6,746		$12,886		$ 5,997		$ 5,997	$ 4,065		$ 4,893		$ 4,362		$ 5,338		$ 5,338

		2019					2020					2021
Q1	Q2	Q3	Q4	FY19	Q1	Q2	Q3	Q4	FY20	Q1	Q2	Q3	Q4	FY21
$ 1,577	$ 2,342	$ 2,645	$ 2,580	$ 9,144	$ 1,436	$ 2,566	$ 2,250	$ 1,916	$ 8,168	$ 2,610	$ 2,316	$ 3,253	$ 3,205	$11,384
(237)	(185)	(200)	(203)	(825)	(171)	(143)	(155)	(181)	(650)	(165)	(119)	(139)	(156)	(579)
$ 1,340	$ 2,157	$ 2,445	$ 2,377	$ 8,319	$ 1,265	$ 2,423	$ 2,095	$ 1,735	$ 7,518	$ 2,445	$ 2,197	$ 3,114	$ 3,049	$10,805

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3

NON-GAAP FINANCIAL INFORMATION(1)

(unaudited)

							2019															2020															2021
(in millions, except percentages and per share amounts)		Q1			Q2			Q3			Q4		FY19			Q1			Q2			Q3			Q4		FY20			Q1			Q2			Q3			Q4		FY21
Revenues	$	5,281	$	5,685	$	5,604	$	5,879		$	22,449	$	5,548	$	5,143	$	6,577	$	7,421		$	24,689	$	6,423	$	6,217	$	7,421	$	7,244		$	27,305
Non-GAAP:
Cost of goods sold	$	674	$	727	$	769	$	1,417		$	3,587	$	703	$	798	$	875	$	918		$	3,294	$	855	$	836	$	736	$	2,111		$	4,538
Research and development expenses	$	932	$	996	$	1,028	$	1,103		$	4,059	$	1,004	$	1,186	$	1,155	$	1,512		$	4,857	$	1,049	$	1,084	$	1,109	$	1,984		$	5,226
Acquired in-process research and development expenses	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	19	$	-	$	19
Selling, general and administrative expenses	$	1,030	$	1,096	$	1,045	$	1,204		$	4,375	$	1,076	$	1,164	$	1,095	$	1,499		$	4,834	$	1,033	$	1,121	$	1,178	$	1,642		$	4,974
Operating income	$	2,645	$	2,866	$	2,762	$	2,155		$	10,428	$	2,765	$	1,995	$	3,452	$	3,492		$	11,704	$	3,486	$	3,176	$	4,379	$	1,507		$	12,548
Other income (expense), net	$	170	$	171	$	164	$	122		$	627	$	125	$	49	$	29	$	46		$	249	$	(18)	$	1	$	(12)	$	-	$	(29)
Net income attributable to Gilead	$	2,141	$	2,196	$	2,091	$	1,400		$	7,828	$	2,139	$	1,400	$	2,657	$	2,762		$	8,958	$	2,628	$	2,353	$	3,343	$	866		$	9,190
Diluted EPS	$	1.67	$	1.72	$	1.64	$	1.10		$	6.13	$	1.68	$	1.11	$	2.11	$	2.19		$	7.09	$	2.08	$	1.87	$	2.65	$	0.69		$	7.28
Shares used in per share calculation - diluted	1,283	1,277	1,274	1,273		1,277	1,270	1,262	1,261	1,259		1,263	1,262	1,260	1,262	1,262		1,262
Product gross margin		87.0 %			87.0 %			86.1 %			75.6 %			83.8 %	87.1 %			84.3 %			86.5 %			87.5 %			86.5 %	86.5 %			86.4 %			90.0 %			70.5 %		83.2 %
Research and development expenses as a % of revenues		17.6 %			17.5 %			18.3 %			18.8 %			18.1 %			18.1 %			23.1 %			17.6 %			20.4 %			19.7 %			16.3 %			17.4 %			14.9 %			27.4 %			19.1 %
Selling, general and administrative expenses as a % of		19.5 %			19.3 %			18.6 %			20.5 %			19.5 %	19.4 %			22.6 %			16.6 %			20.2 %			19.6 %	16.1 %			18.0 %			15.9 %			22.7 %		18.2 %
revenues
Operating expenses as a % of revenues		37.2 %			36.8 %			37.0 %			39.2 %			37.6 %	37.5 %			45.7 %			34.2 %			40.6 %			39.3 %	32.4 %			35.5 %			31.1 %			50.1 %		37.4 %
Operating margin		50.1 %			50.4 %			49.3 %			36.7 %			46.6 %	49.8 %			38.8 %			52.5 %			47.1 %			47.4 %	54.3 %			51.1 %			59.0 %			20.8 %		46.0 %
Effective tax rate		16.6 %			21.5 %			22.1 %			31.5 %			22.4 %			19.7 %			22.8 %			18.4 %			15.8 %			18.6 %			18.4 %			19.6 %			18.9 %			32.2 %			20.4 %
________________________________

1. Non-GAAPfinancial information generally excludes acquisition-related expenses including amortization of acquired intangible assets and inventory step-up charges in Cost of goods sold, acquired IPR&D expenses, and other items that are considered unusual or not representative of underlying trends of Gilead's business, fair value adjustments of equity securities and discrete and related tax charges or benefits associated with changes in tax related laws and guidelines. A reconciliation between GAAP and non-GAAP financial information is provided in the tables on pages 5-6.

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4

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(unaudited)

					2019
(in millions, except percentages and per share amounts)		Q1		Q2		Q3		Q4		FY19
Cost of goods sold reconciliation:
GAAP cost of goods sold	$	957	$	1,000	$	1,035	$ 1,683	$	4,675
Acquisition-related - amortization of acquired intangibles and inventory		(283)		(273)		(266)		(266)		(1,088)
step-up charges
Acquisition related-other costs(1)		-		-		-		-		-
Non-GAAP cost of goods sold	$	674	$	727	$	769	$ 1,417	$	3,587
Product gross margin reconciliation:
GAAP product gross margin		81.6 %		82.2 %		81.2 %		71.0 %		78.9 %
Acquisition-related - amortization of acquired intangibles and inventory		5.4 %		4.9 %		4.8 %		4.6 %		4.9 %
step-up charges
Acquisition related-other costs(1)		- %		- %		- %		- %		- %
Non-GAAP product gross margin(2)	87.0 %	87.0 %	86.1 %	75.6 %	83.8 %
Research and development expenses reconciliation:
GAAP research and development expenses	$	931	$	995	$	1,030	$ 1,099	$	4,055
Acquisition-related - amortization of acquired intangibles and inventory		-		-		-		-		-
step-up charges
Acquisition-related and other costs(1)		1		1		(2)		4		4
Non-GAAP research and development expenses	$	932	$	996	$	1,028	$ 1,103	$	4,059
Research and development expenses as a % of revenues:
GAAP research and development expenses as a % of revenues		17.6 %		17.5 %		18.4 %		18.7 %		18.1 %
Acquisition-related - amortization of acquired intangibles and inventory		- %		- %		- %		- %		- %
step-up charges
Acquisition-related and other costs(1)		- %		- %		- %		0.1 %		- %
Non-GAAP research and development expenses as a % of revenues(2)	17.6 %	17.5 %	18.3 %	18.8 %	18.1 %
Acquired IPR&D expenses reconciliation:
GAAP acquired IPR&D expenses	$	126	$	165	$	3,960	$	800	$	5,051
Acquired IPR&D expenses		(126)		(165)		(3,960)		(800)		(5,051)
Non-GAAP acquired IPR&D expenses	$	-	$	-	$	-	$	-	$	-
Selling, general and administrative expenses reconciliation:
GAAP selling, general and administrative expenses	$	1,030	$	1,095	$	1,052	$ 1,204	$	4,381
Acquisition-related and other costs(1)(3)		-		1		(7)		-		(6)
Non-GAAP selling, general and administrative expenses	$	1,030	$	1,096	$	1,045	$ 1,204	$	4,375
Selling, general and administrative expenses as a % of revenues:
GAAP selling, general and administrative expenses as a % of revenues		19.5 %		19.3 %		18.8 %		20.5 %		19.5 %
Acquisition-related and other costs(1)(3)		- %		- %		(0.1)%		- %		- %
Non-GAAP selling, general and administrative expenses as a % of revenues(2)	19.5 %	19.3 %	18.6 %	20.5 %	19.5 %
Operating income reconciliation:
GAAP operating income (loss)	$	2,237	$	2,430	$	(1,473)	$ 1,093	$	4,287
Acquired IPR&D expenses		126		165		3,960		800		5,051
Acquisition-related - amortization of acquired intangibles and inventory		283		273		266		266		1,088
step-up charges
Acquisition-related and other costs(1)(3)		(1)		(2)		9		(4)		2

		2020
Q1	Q2	Q3	Q4	FY20

• 969 $ 1,064 $ 1,141 $ 1,398 $ 4,572

	(266)		(266)		(266)		(417)		(1,215)
	-		-		-		(63)		(63)
$	703	$	798	$	875	$	918	$	3,294
	82.3 %		79.0 %		82.4 %		80.9 %		81.2 %
	4.9 %		5.2 %		4.1 %		5.7 %		5.0 %
	- %		- %		- %		0.9 %		0.3 %
87.1 %	84.3 %	86.5 %	87.5 %	86.5 %
$	1,004	$	1,299	$	1,158	$	1,578	$	5,039
	-		-		-		-		-
	-		(113)		(3)		(66)		(182)
$	1,004	$	1,186	$	1,155	$	1,512	$	4,857
	18.1 %		25.3 %		17.6 %		21.3 %		20.4 %
	- %		- %		- %		- %		- %
	- %		(2.2)%		- %		(0.9)%		(0.7)%
18.1 %	23.1 %	17.6 %	20.4 %	19.7 %
$	97	$	4,524	$	1,171	$	64	$	5,856
	(97)		(4,524)		(1,171)		(64)		(5,856)
$	-	$	-	$	-	$	-	$	-

$ 1,076	$ 1,239	$ 1,106	$ 1,730	$ 5,151
-	(75)	(11)	(231)	(317)
$ 1,076	$ 1,164	$ 1,095	$ 1,499	$ 4,834
19.4 %	24.1 %	16.8 %	23.3 %	20.9 %
- %	(1.5)%	(0.2)%	(3.1)%	(1.3)%
19.4 %	22.6 %	16.6 %	20.2 %	19.6 %

$ 2,402	$ (2,983)	$ 2,001	$ 2,651	$ 4,071
97	4,524	1,171	64	5,856
266	266	266	417	1,215
-	188	14	360	562

					2021
	Q1		Q2		Q3		Q4		FY21
$	1,361	$	1,390	$	1,223	$	2,627	$	6,601
	(506)		(554)		(487)		(516)		(2,063)
	-		-		-		-		-
$	855	$	836	$	736	$	2,111	$	4,538
	78.5 %		77.4 %		83.4 %		63.3 %		75.6 %
	8.0 %		9.0 %		6.6 %		7.2 %		7.6 %
	- %		- %		- %		- %		- %
86.5 %	86.4 %	90.0 %	70.5 %	83.2 %
$	1,055	$	1,134	$	1,147	$	2,027	$	5,363
	-		-		(67)		(42)		(109)
	(6)		(50)		29		(1)		(28)
$	1,049	$	1,084	$	1,109	$	1,984	$	5,226
	16.4 %		18.2 %		15.5 %		28.0 %		19.6 %
	- %		- %		(0.9)%		(0.6)%		(0.4)%
	(0.1)%		(0.8)%		0.4 %		- %		(0.1)%
16.3 %	17.4 %	14.9 %	27.4 %	19.1 %
$	62	$	96	$	19	$	-	$	177
	(62)		(96)		-		-		(158)
$	-	$	-	$	19	$	-	$	19
$	1,055	$	1,351	$	1,190	$	1,650	$	5,246
	(22)		(230)		(12)		(8)		(272)
$	1,033	$	1,121	$	1,178	$	1,642	$	4,974
	16.4 %		21.7 %		16.0 %		22.8 %		19.2 %
	(0.3)%		(3.7)%		(0.2)%		(0.1)%		(1.0)%
16.1 %	18.0 %	15.9 %	22.7 %	18.2 %
$	2,890	$	2,246	$	3,842	$	940	$	9,918
	62		96		-		-		158
	506		554		554		558		2,172
	28		280		(17)		9		300

Non-GAAP operating income

Operating margin reconciliation:

GAAP operating margin

Acquired IPR&D expenses

Acquisition-related - amortization of acquired intangibles and inventory step-up charges

Acquisition-related and other costs(1)(3)

Non-GAAP operating margin(2)

$ 2,645		$ 2,866		$ 2,762		$ 2,155		$10,428
42.4 %	42.7 %	(26.3)%	18.6 %		19.1 %
2.4 %	2.9 %	70.7 %	13.6 %		22.5 %
5.4 %	4.8 %	4.7 %	4.5 %		4.8 %
- %		- %		0.2 %		(0.1)%		- %
50.1 %		50.4 %		49.3 %		36.7 %		46.6 %

$ 2,765		$ 1,995		$ 3,452		$ 3,492		$11,704
43.3 %	(58.0)%	30.4 %	35.7 %		16.5 %
1.7 %	88.0 %	17.8 %	0.9 %		23.7 %
4.8 %	5.2 %	4.0 %	5.6 %		4.9 %
- %		3.7 %		0.2 %		4.8 %		2.3 %
49.8 %		38.8 %		52.5 %		47.1 %		47.4 %

$ 3,486		$ 3,176		$ 4,379		$ 1,507		$12,548
45.0 %	36.1 %	51.8 %	13.0 %		36.3 %
1.0 %	1.5 %		- %		- %	0.6 %
7.9 %	8.9 %	7.5 %	7.7 %		8.0 %
0.4 %		4.5 %		(0.2)%		0.1 %		1.1 %
54.3 %		51.1 %		59.0 %		20.8 %		46.0 %

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