Acquisitions of Pharmasset, Inc. (Tables)

3 Months Ended

Mar. 31, 2012

Cash Paid in Acquisition [Table Text Block]

The following table summarizes the components of the cash paid to acquire Pharmasset (in thousands):



Total consideration transferred	$	10,858,372
Stock-based compensation expense	193,937
Total cash paid	$	11,052,309

Fair Values Of The Assets Acquired And Liabilities Assumed

The following table summarizes the allocation of the consideration transferred to the acquisition date fair values of assets acquired and liabilities assumed (in thousands):



Intangible assets - in-process research and development	$	10,720,000
Cash and cash equivalents	106,737
Other assets acquired (liabilities assumed), net	(43,182		)
Total identifiable net assets	10,783,555
Goodwill	74,817
Total consideration transferred	$	10,858,372

Accelerated Stock-Based Compensation Expense [Table Text Block]

The stock-based compensation expense recognized for the accelerated vesting of employee options immediately prior to the acquisition was reported in our Condensed Consolidated Statement of Income as follows (in thousands):



Research and development expense	$	100,149
Selling, general and administrative expense	93,788
Total stock-based compensation expense	$	193,937

Other Transaction Costs [Table Text Block]

Other costs incurred in connection with the acquisition include (in thousands):



	Three Months Ended
	March 31, 2012		December 31, 2011
Transaction costs (e.g. investment advisory, legal and accounting fees)	$	9,040	$	28,461
Bridge financing costs	7,333		23,817
Restructuring costs	8,343		—
Total other costs	$	24,716	$	52,278

Other Transaction Costs Classified by Expense Category [Table Text Block]

The following table summarizes these costs by the line item in the Condensed Consolidated Statement of Income in which these costs were recognized (in thousands).



	Three Months Ended
	March 31, 2012		December 31, 2011
Research and development expense	$	5,557	$	—
Selling, general and administrative expense	11,826		28,461
Interest expense	7,333		23,817
Total other costs	$	24,716	$	52,278

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited pro forma information presents the combined results of operations of Gilead and Pharmasset as if the acquisition of Pharmasset had been completed on January 1, 2011, with adjustments to give effect to pro forma events that are directly attributable to the acquisition. The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the operations of Gilead and Pharmasset. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands):



	Three Months Ended
	March 31,
	2012		2011
Total revenues	$	2,282,449	$	1,926,094
Net income attributable to Gilead	$	574,375	$	397,165

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

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