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Document And Entity Information
3 Months Ended
Mar. 31, 2012
Apr. 27, 2012
Entity Information [Line Items]
Document Type 10-Q
Amendment Flag false
Document Period End Date Mar 31, 2012
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q1
Entity Registrant Name GILEAD SCIENCES INC
Entity Central Index Key 0000882095
Current Fiscal Year End Date --12-31
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 757,321,824
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Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Assets [Abstract]
Cash and cash equivalents $ 1,451,942 $ 9,883,777
Short-term marketable securities 0 16,491
Accounts receivable, net 2,163,659 1,951,167
Inventories 1,418,033 1,389,983
Deferred tax assets 193,938 208,155
Prepaid taxes 333,739 246,444
Prepaid expenses 89,592 95,922
Other current assets 175,629 126,846
Total current assets 5,826,532 13,918,785
Property, plant and equipment, net 782,867 774,406
Noncurrent portion of prepaid royalties 169,836 174,584
Noncurrent deferred tax assets 107,729 144,015
Long-term marketable securities 48,168 63,704
Intangible Assets, Net (Excluding Goodwill) 11,767,027 1,062,864
Goodwill 1,078,919 1,004,102
Other noncurrent assets 169,308 160,674
Total assets 19,950,386 17,303,134
Liabilities and Stockholders' Equity
Accounts payable 1,339,257 1,206,052
Accrued government rebates 652,703 547,473
Accrued compensation and employee benefits 136,626 173,316
Income taxes payable 14,491 40,583
Other accrued liabilities 593,063 471,129
Deferred revenues 100,191 74,665
Current portion of long-term debt and other obligations, net 1,351,573 1,572
Total current liabilities 4,187,904 2,514,790
Long-term deferred revenues 26,506 31,870
Long-term Debt, net 8,077,246 7,605,734
Long-term income taxes payable 140,655 135,655
Other long-term obligations 153,991 147,736
Stockholders' equity:
Preferred stock, par value $0.001 per share; 5,000 shares authorized; none outstanding 0 0
Common stock, par value $0.001 per share; 2,800,000 shares authorized; 758,190 and 753,106 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively 758 753
Additional paid-in capital 5,100,624 4,903,143
Accumulated other comprehensive income 33,591 58,200
Retained earnings 2,178,639 1,776,760
Total Gilead stockholders' equity 7,313,612 6,738,856
Noncontrolling interest 50,472 128,493
Total stockholders' equity 7,364,084 6,867,349
Total liabilities and stockholders' equity $ 19,950,386 $ 17,303,134
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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000 5,000
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 2,800,000 2,800,000
Common stock, shares issued 758,190 753,106
Common stock, shares outstanding 758,190 753,106
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Condensed Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Revenues:
Product Sales $ 2,208,342 $ 1,863,578
Royalty revenues 71,105 58,665
Contract and other revenues 3,002 3,851
Total revenues 2,282,449 1,926,094
Costs and expenses:
Cost of goods sold 580,931 474,111
Research and development 458,211 254,446
Selling, general and administrative 443,121 295,568
Total costs and expenses 1,482,263 1,024,125
Income from operations 800,186 901,969
Interest expense (97,270) (41,216)
Interest and other income, net (34,085) 13,832
Income before provision for income taxes 668,831 874,585
Provision for income taxes 231,300 227,282
Net Income 437,531 647,303
Net Income (Loss) Attributable to Noncontrolling Interest 4,425 3,838
Net income Attributable to Gilead $ 441,956 $ 651,141
Net income per share attributable to Gilead common stockholders - basic $ 0.58 $ 0.82
Weighted-average shares of common stock outstanding used in the calculation of basic net income per share attributable to Gilead common stockholders 756,286 796,115
Net income per share attributable to Gilead common stockholders - diluted $ 0.57 $ 0.8
Shares used in per share calculation - diluted 777,388 811,857
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Condensed Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Operating Activities:
Net Income $ 437,531 $ 647,303
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense 19,710 18,285
Amortization expense 46,457 62,629
Stock-based compensation expenses 48,731 49,470
Excess tax benefits from stock-based compensation (23,304) (14,255)
Tax benefits from employee stock plans 18,153 12,136
Deferred income taxes 51,385 20,546
Other non-cash transactions 13,767 (7,249)
Changes in operating assets and liabilities:
Accounts receivable, net (196,531) (107,876)
Inventories (26,833) (97,174)
Prepaid expenses and other assets (75,176) (23,903)
Accounts payable (107,652) (176,114)
Income taxes payable 99,151 (31,473)
Accrued liabilities 110,402 61,414
Deferred revenues (20,176) 8,371
Net cash provided by operating activities 452,969 820,542
Investing Activities:
Purchases of marketable securities 0 (1,519,142)
Proceeds from sales of marketable securities 56,719 1,285,547
Proceeds from maturities of marketable securities 0 169,189
Acquisitions, net of cash acquired (10,751,636) (221,105)
Payments to Acquire Investments (25,000) 0
Capital expenditures and other (23,199) (14,870)
Net cash used in investing activities (10,743,116) (300,381)
Financing Activities:
Proceeds from issuances of senior notes, net of issuance costs 0 987,370
Proceeds from issuances of common stock 132,530 58,879
Proceeds from (Payments for) Other Financing Activities 1,146,844 0
Proceeds from credit facility 997,889 0
Repayments of credit facility (350,000) 0
Repurchases of common stock (20,770) (548,699)
Repayments of other long-term obligations (612) (1,533)
Excess tax benefits from stock-based compensation 23,304 14,255
Distributions (to) from noncontrolling interest (73,595) (25,162)
Net cash used in financing activities 1,855,590 485,110
Effect of exchange rate changes on cash 2,722 (77,172)
Net change in cash and cash equivalents (8,431,835) 928,099
Cash and cash equivalents at beginning of period 9,883,777 907,879
Cash and cash equivalents at end of period $ 1,451,942 $ 1,835,978
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Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Statement of Income and Comprehensive Income [Abstract]
Net Income $ 437,531 $ 647,303
Foreign Currency Translation Gain 4,897 7,194
Net Unrealized Loss, Net of Tax (463) (1,684)
Reclassifications to Net Income, Net of Tax 30,600 (1,435)
Net Change 30,137 (3,119)
Net Unrealized Loss, Net of Tax (48,816) (126,331)
Reclassifications to Net Income, Net of Tax (10,827) (9,838)
Net Change (59,643) (136,169)
Other Comprehensive Loss (24,609) (132,094)
Comprehensive Income 412,922 515,209
Comprehensive Loss Attributable to Noncontrolling Interest 4,425 3,838
Comprehensive Income Attributed to Gilead $ 417,347 $ 519,047
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Condensed Consolidated Statement of Comprehensive Income Paranthetical (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Statement of Income and Comprehensive Income [Abstract]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax $ 266 $ (372)
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax (519) (899)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax 1,802 1,168
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax $ (400) $ (91)
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Summary Of Significant Accounting Policies
3 Months Ended
Mar. 31, 2012
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 only of normal recurring adjustments) that the management of Gilead Sciences, Inc. (Gilead, we 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 preparation of these Condensed Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an ongoing basis, we evaluate our estimates, including critical accounting policies or estimates related to revenue recognition, intangible assets, allowance for doubtful accounts, prepaid royalties, clinical trial accruals, our tax provision and stock-based compensation. We base our estimates on historical experience and on various other 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. Actual results may differ significantly from these estimates.
The accompanying Condensed Consolidated Financial Statements include the accounts of Gilead, our wholly-owned subsidiaries and our joint ventures with Bristol-Myers Squibb Company (BMS), for which we are the primary beneficiary. We record a noncontrolling interest in our Condensed Consolidated Financial Statements to reflect BMS’s interest in the joint ventures. All intercompany transactions have been eliminated. The Condensed Consolidated Financial Statements include the results of companies acquired by us from the date of each acquisition for the applicable reporting periods.
The accompanying Condensed Consolidated Financial Statements and related financial information should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2011, included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC). Certain amounts within our Condensed Consolidated Balance Sheets have been reclassified to conform to the current presentation.
Net Income Per Share Attributable to Gilead Common Stockholders
Basic net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding during the period. Diluted net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding and other dilutive securities outstanding during the period. The potential dilutive shares of our common stock resulting from the assumed exercise of outstanding stock options, performance shares and the assumed exercise of warrants relating to the convertible senior notes due in May 2013 (May 2013 Notes), May 2014 (May 2014 Notes) and May 2016 (May 2016 Notes) (collectively, the Convertible Notes) are determined under the treasury stock method.
Because the principal amount of the Convertible Notes will be settled in cash, only the conversion spread relating to the Convertible Notes is included in our calculation of diluted net income per share attributable to Gilead common stockholders. Our common stock resulting from the assumed settlement of the conversion spread of the Convertible Notes has a dilutive effect when the average market price of our common stock during the period exceeds the conversion prices of $38.10, $45.08 and $45.41 for the May 2013 Notes, May 2014 Notes and May 2016 Notes, respectively.
In 2011, our convertible senior notes due in May 2011 (May 2011 Notes) matured and the related warrants expired and as a result, we have only considered their impact for the period they were outstanding on our net income per share calculations. Our common stock resulting from the assumed settlement of the conversion spread of the May 2011 Notes had a dilutive effect when the average market price of our common stock during the period exceeded the conversion price of $38.75. During the three months ended March 31, 2011, the average market price of our common stock exceeded the conversion price of the May 2011 Notes and the dilutive effect is included in the accompanying table. Warrants related to the May 2011 Notes had a dilutive effect when the average market price of our common stock during the period exceeded the warrants’ exercise price of $50.80. The average market price of our common stock during the three months ended March 31, 2011 did not exceed the warrants’ exercise price related to the May 2011 Notes; therefore, these warrants did not have a dilutive effect on our net income per share for that period.
During the three months ended March 31, 2012, the average market price of our common stock exceeded the conversion prices of the May 2013 Notes, May 2014 Notes and May 2016 Notes and the dilutive effects are included in the accompanying table. During the three months ended March 31, 2011, the average market price of our common stock exceeded the conversion price of the May 2013 Notes and the dilutive effect is included in the accompanying table. During the three months ended March 31, 2011, the average market price of our common stock did not exceed the conversion prices of the May 2014 Notes and May 2016 Notes and therefore, these notes did not have a dilutive effect on our net income per share for that period.
Warrants relating to the May 2013 Notes, May 2014 Notes and May 2016 Notes have a dilutive effect when the average market price of our common stock during the period exceeds the warrants’ exercise prices of $53.90, $56.76 and $60.10, respectively. The average market prices of our common stock during each of the three months ended March 31, 2012 and 2011 did not exceed the warrants’ exercise prices relating to any of the Convertible Notes; therefore, these warrants did not have a dilutive effect on our net income per share for those periods.
Stock options to purchase approximately 10.9 million and 22.1 million weighted-average shares of our common stock were outstanding during the three months ended March 31, 2012 and 2011, respectively, but were not included in the computation of diluted net income per share attributable to Gilead common stockholders because their effect was antidilutive.
The following table is a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share attributable to Gilead common stockholders (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Numerator:
 
 
 
Net income attributable to Gilead
$
441,956

 
$
651,141

Denominator:
 
 
 
Weighted-average shares of common stock outstanding used in the calculation of basic net income per share attributable to Gilead common stockholders
756,286

 
796,115

Effect of dilutive securities:
 
 
 
Stock options and equivalents
14,873

 
15,007

Conversion spread related to the May 2011 Notes

 
224

Conversion spread related to the May 2013 Notes
3,423

 
511

Conversion spread related to the May 2014 Notes
1,505

 

Conversion spread related to the May 2016 Notes
1,301

 

Weighted-average shares of common stock outstanding used in the calculation of diluted net income per share attributable to Gilead common stockholders
777,388

 
811,857


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. As of March 31, 2012, our accounts receivable in Southern Europe, specifically Greece, Italy, Portugal and Spain, totaled approximately $1.25 billion, of which $719.5 million were greater than 120 days past due and $313.3 million were greater than 365 days past due. 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 at March 31, 2012.
Recent Accounting Pronouncements
There have been no new accounting pronouncements during the three months ended March 31, 2012 that are of significance to us.
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Fair Value Measurements
3 Months Ended
Mar. 31, 2012
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:
Level 1 inputs which include quoted prices in active markets for identical assets or liabilities;
Level 2 inputs which 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 which 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. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.
Our financial instruments consist principally of cash and cash equivalents, marketable securities, accounts receivable, foreign currency exchange forward and option contracts, accounts payable, and short-term and long-term debt. Cash and cash equivalents, marketable securities and foreign currency exchange contracts that hedge accounts receivable and forecasted sales are reported at their respective fair values on our Condensed Consolidated Balance Sheets. The carrying value and fair value of the Convertible Notes were $2.94 billion and $3.99 billion, respectively, as of March 31, 2012. The carrying value and fair value of the Convertible Notes were $2.92 billion and $3.53 billion, respectively, as of December 31, 2011.
In March 2011, we issued senior unsecured notes due in April 2021 (April 2021 Notes) in a registered offering for an aggregate principal amount of $1.00 billion. The carrying value and fair value of the April 2021 Notes were $992.3 million and $1.06 billion, respectively, as of March 31, 2012. The carrying value and fair value of the April 2021 Notes were $992.1 million and $1.06 billion, respectively, as of December 31, 2011. In December 2011, we issued senior unsecured notes due in December 2014 (December 2014 Notes), December 2016 (December 2016 Notes), December 2021 (December 2021 Notes) and December 2041 (December 2041 Notes) in a registered offering for an aggregate principal amount of $3.70 billion. The carrying value and fair value of these notes were $3.69 billion and $3.89 billion, respectively, as of March 31, 2012. The carrying value and fair value of these notes were $3.69 billion and $3.93 billion, respectively, as of December 31, 2011. The fair values of the Convertible Notes and senior unsecured notes were determined using Level 2 inputs based on their quoted market values.
The remaining financial instruments are reported on our Condensed Consolidated Balance Sheets at amounts that approximate current fair values.

The following table summarizes, for assets or liabilities recorded at fair value, the respective fair value and the classification by level of input within the fair value hierarchy defined above (in thousands):
 
March 31, 2012
 
December 31, 2011
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
518,248

 
$

 
$

 
$
518,248

 
$
7,455,982

 
$

 
$

 
$
7,455,982

Certificates of deposit

 

 

 

 

 
1,139,982

 

 
1,139,982

Non-U.S. government securities

 

 

 

 

 

 
24,741

 
24,741

Corporate debt securities

 

 

 

 

 
404,989

 

 
404,989

Student loan-backed securities

 

 
48,168

 
48,168

 

 

 
46,952

 
46,952

Total debt securities
518,248

 

 
48,168

 
566,416

 
7,455,982

 
1,544,971

 
71,693

 
9,072,646

Equity securities

 

 

 

 
8,503

 

 

 
8,503

Derivatives

 
51,958

 

 
51,958

 

 
100,475

 

 
100,475

 
$
518,248

 
$
51,958

 
$
48,168

 
$
618,374

 
$
7,464,485


$
1,645,446


$
71,693


$
9,181,624

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
$

 
$

 
$
138,328

 
$
138,328

 
$

 
$

 
$
135,591

 
$
135,591

Derivatives

 
18,404

 

 
18,404

 

 
5,710

 

 
5,710

 
$

 
$
18,404

 
$
138,328

 
$
156,732

 
$

 
$
5,710

 
$
135,591

 
$
141,301


Level 3 Inputs
Assets measured at fair value using Level 3 inputs at March 31, 2012 were comprised of auction rate securities within our available-for-sale investment portfolio. The following table provides a rollforward of assets measured using Level 3 inputs (in thousands):  
 
Three Months Ended
 
March 31,
 
2012
 
2011
Balance, beginning of period
$
71,693

 
$
80,365

Total realized and unrealized gains (losses) included in:
 
 
 
Other income (expense), net
(40,096
)
 
1,246

Other comprehensive income, net
33,094

 
2,160

Sales of marketable securities
(16,523
)
 
(20,830
)
Transfers into Level 3

 
53,882

Balance, end of period
$
48,168

 
$
116,823


Our policy is to recognize transfers into or out of Level 3 classification as of the actual date of the event or change in circumstances that caused the transfer.

The underlying assets of our auction rate securities consist of student loans. Although auction rate securities would typically be measured using Level 2 inputs, the failure of auctions and the lack of market activity and liquidity experienced since the beginning of 2008 required that these securities be measured using Level 3 inputs. The fair value of our auction rate securities was determined using a discounted cash flow model that considered projected cash flows for the issuing trusts, underlying collateral and expected yields. Projected cash flows were estimated based on the underlying loan principal, bonds outstanding and payout formulas. The weighted-average life over which the cash flows were projected considered the collateral composition of the securities and related historical and projected prepayments. The underlying student loans have a weighted-average expected life of two to seven years. The discount rates used in our discounted cash flow model were based on market conditions for comparable or similar term asset-backed and other fixed income securities, adjusted for an illiquidity discount. This resulted in an annual discount rate of 2.18%. Our auction rate securities reset every seven to 14 days with maturity dates ranging from 2025 through 2040 and have annual interest rates ranging from 0.12% to 0.77%. As of March 31, 2012, our auction rate securities continued to earn interest. Although there continued to be failed auctions as well as lack of market activity and liquidity, we believe we had no other-than-temporary impairments on these securities as of March 31, 2012. We have the ability to hold these securities until the recovery of their amortized cost basis.
In 2010, the Greek government agreed to settle the majority of its aged outstanding accounts receivable with zero-coupon bonds, which were expected to trade at a discount to face value. We estimated the fair value of the Greek zero-coupon bonds using Level 3 inputs due to the then current lack of market activity and liquidity. The discount rates used in our fair value model for these bonds were based on credit default swap rates. In March 2012, the Greek government restructured its sovereign debt which impacted all holders of Greek bonds. As a result, we recorded a $40.1 million loss related to the debt restructuring as part of other income (expense), net on our Condensed Consolidated Statement of Income and exchanged the Greek government-issued bonds for new securities, which we liquidated during the first quarter of 2012.
As of March 31, 2012 and December 31, 2011, our auction rate securities were recorded in long-term marketable securities on our Condensed Consolidated Balance Sheets. As of December 31, 2011, our Greek government-issued bonds were recorded in short-term and long-term marketable securities on our Condensed Consolidated Balance Sheets.
The following table provides a rollforward of our contingent consideration liabilities (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Balance, beginning of period
$
135,591

 
$
11,100

Changes in valuation
2,737

 

Balance, end of period
$
138,328

 
$
11,100


The estimated fair value of the contingent consideration liabilities for our acquisitions was based on the present value of the total earnout amount giving consideration to significant inputs such as the probability of technical and regulatory success, the discount rate used and the timeline to achieve each of the milestone events. Significant increases in the probability of success in isolation would result in a significantly higher fair value measurement while significant decreases in the probability of success in isolation would result in a significantly lower fair value measurement. Similarly, significant increases in the discount rate or timeline in isolation would result in a significantly lower fair value measurement while significant decreases in the discount rate or timeline in isolation would result in a significantly higher fair value measurement. We evaluate changes in each of the assumptions used to calculate fair values of our contingent consideration liabilities at the end of each period.
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Available-For-Sale Securities
3 Months Ended
Mar. 31, 2012
Investments, Debt and Equity Securities [Abstract]
Available-For-Sale Securities
AVAILABLE-FOR-SALE SECURITIES
The following table is a summary of available-for-sale debt and equity securities included in cash and cash equivalents or marketable securities in our Condensed Consolidated Balance Sheets. During the quarter ended March 31, 2012, we liquidated a portion of our investment portfolio to partially fund the acquisition of Pharmasset, Inc. (Pharmasset). Estimated fair values of available-for-sale securities are generally based on prices obtained from commercial pricing services (in thousands):
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
March 31, 2012
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
Money market funds
$
518,248

 
$

 
$

 
$
518,248

Certificates of deposit

 

 

 

Non-U.S. government securities

 

 

 

Corporate debt securities

 

 

 

Student loan-backed securities
51,500

 

 
(3,332
)
 
48,168

Total debt securities
569,748

 

 
(3,332
)
 
566,416

Equity securities

 

 

 

Total
$
569,748

 
$

 
$
(3,332
)
 
$
566,416

December 31, 2011
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
Money market funds
$
7,455,982

 
$

 
$

 
$
7,455,982

Certificates of deposit
1,140,000

 

 
(18
)
 
1,139,982

Non-U.S. government securities
55,246

 

 
(30,505
)
 
24,741

Corporate debt securities
404,994

 

 
(5
)
 
404,989

Student loan-backed securities
51,500

 

 
(4,548
)
 
46,952

Total debt securities
9,107,722

 

 
(35,076
)

9,072,646

Equity securities
1,451

 
7,052

 

 
8,503

Total
$
9,109,173

 
$
7,052

 
$
(35,076
)
 
$
9,081,149


The following table summarizes the classification of the available-for-sale debt and equity securities on our Condensed Consolidated Balance Sheets (in thousands):
 
March 31,
2012
 
December 31,
2011
Cash and cash equivalents
$
518,248

 
$
9,000,954

Short-term marketable securities

 
16,491

Long-term marketable securities
48,168

 
63,704

Total
$
566,416

 
$
9,081,149


The following table summarizes our portfolio of available-for-sale debt securities by contractual maturity (in thousands):
 
March 31, 2012
 
Amortized Cost
 
Fair Value
Less than one year
$
518,248

 
$
518,248

Greater than one year but less than five years

 

Greater than five years but less than ten years

 

Greater than ten years
51,500

 
48,168

Total
$
569,748

 
$
566,416


The following table summarizes the gross realized gains and losses related to sales of marketable securities (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Gross realized gains on sales
$
10,015

 
$
3,697

Gross realized losses on sales
$
(40,096
)
 
$
(1,362
)

The cost of securities sold was determined based on the specific identification method.
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 thousands):
 
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
March 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Certificates of deposit
$

 
$

 
$

 
$

 
$

 
$

Non-U.S. government securities

 

 

 

 

 

Corporate debt securities

 

 

 

 

 

Student loan-backed securities

 

 
(3,332
)
 
48,168

 
(3,332
)
 
48,168

Total
$

 
$

 
$
(3,332
)
 
$
48,168

 
$
(3,332
)
 
$
48,168

December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Certificates of deposit
$
(18
)
 
$
1,019,982

 
$

 
$

 
$
(18
)
 
$
1,019,982

Non-U.S. government securities
(30,505
)
 
24,741

 

 

 
(30,505
)
 
24,741

Corporate debt securities
(5
)
 
224,989

 

 

 
(5
)
 
224,989

Student loan-backed securities

 

 
(4,548
)
 
46,952

 
(4,548
)
 
46,952

Total
$
(30,528
)
 
$
1,269,712

 
$
(4,548
)
 
$
46,952

 
$
(35,076
)
 
$
1,316,664


As of March 31, 2012 and December 31, 2011, we held a total of 12 and 42 securities, respectively, that were in an unrealized loss position.
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Derivative Financial Instruments
3 Months Ended
Mar. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
We operate in foreign countries, which exposes us to market risk associated with foreign currency exchange rate fluctuations between the U.S. dollar and various foreign currencies, the most significant of which is the Euro. In order to manage this risk, we 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 and 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. We work only with major banks and closely monitor current market conditions, which limits the risk that counterparties to our contracts may be unable to perform. We also 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 unrecognized 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, nor do we hedge our net investment in any of our foreign subsidiaries.
We hedge our exposure to foreign currency exchange rate fluctuations for certain monetary assets and liabilities of our foreign subsidiaries 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 maturity dates of 18 months or less. Upon executing a hedging contract and quarterly thereafter, we assess prospective hedge effectiveness using a regression analysis which calculates the change in cash flow as a result of the hedge instrument. On a monthly basis, we assess retrospective hedge effectiveness using a dollar offset approach. We exclude time value from our effectiveness testing and recognize changes in the time value of the hedge in other income (expense), net. The effective component of our hedge is recorded as an unrealized gain or loss on the hedging instrument in accumulated other comprehensive income (OCI) within stockholders’ equity. When the hedged forecasted transaction occurs, the hedge is de-designated and the unrealized gains or losses are reclassified into product sales. The majority of gains and losses related to the hedged forecasted transactions reported in accumulated OCI at March 31, 2012 will be reclassified to product sales within 12 months.
We had notional amounts on foreign currency exchange contracts outstanding of $3.90 billion and $4.03 billion at March 31, 2012 and December 31, 2011, respectively.
The following table summarizes information about the fair values of derivative instruments on our Condensed Consolidated Balance Sheets (in thousands):
 
March 31, 2012
 
Asset Derivatives
 
Liability Derivatives
 
Classification
 
Fair Value
 
Classification
 
Fair Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
Foreign currency exchange contracts
Other current assets
 
$
47,498

 
Other accrued liabilities
 
$
14,564

Foreign currency exchange contracts
Other noncurrent assets
 
4,459

 
Other long-term obligations
 
3,778

Total derivatives designated as hedges
 
 
51,957

 
 
 
18,342

Derivatives not designated as hedges:
 
 
 
 
 
 
 
Foreign currency exchange contracts
Other current assets
 
1

 
Other accrued liabilities
 
61

Total derivatives not designated as hedges
 
 
1

 
 
 
61

Total derivatives
 
 
$
51,958

 
 
 
$
18,403

 
 
December 31, 2011
 
Asset Derivatives
 
Liability Derivatives
 
Classification
 
Fair Value
 
Classification
 
Fair Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
Foreign currency exchange contracts
Other current assets
 
$
77,066

 
Other accrued liabilities
 
$
5,052

Foreign currency exchange contracts
Other noncurrent assets
 
23,169

 
Other long-term obligations
 
620

Total derivatives designated as hedges
 
 
100,235

 
 
 
5,672

Derivatives not designated as hedges:
 
 
 
 
 
 
 
Foreign currency exchange contracts
Other current assets
 
240

 
Other accrued liabilities
 
38

Total derivatives not designated as hedges
 
 
240

 
 
 
38

Total derivatives
 
 
$
100,475

 
 
 
$
5,710


The following table summarizes the effect of our foreign currency exchange contracts on our Condensed Consolidated Statements of Income (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Derivatives designated as hedges:
 
 
 
Net gains (losses) recognized in OCI (effective portion)
$
(48,886
)
 
$
(127,499
)
Net gains (losses) reclassified from accumulated OCI into product sales (effective portion)
$
11,227

 
$
9,929

Net gains (losses) recognized in other income (expense), net (ineffective portion and amounts excluded from effectiveness testing)
$
(3,212
)
 
$
995

Derivatives not designated as hedges:
 
 
 
Net gains (losses) recognized in other income (expense), net
$
(27,174
)
 
$
(85,846
)

There were no material amounts recorded in other income (expense), net, for the three months ended March 31, 2012 and 2011 as a result of the discontinuance of cash flow hedges.
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Acquisition of Pharmasset, Inc.
3 Months Ended
Mar. 31, 2012
Business Combinations [Abstract]
Acquisition of Pharmasset, Inc.
ACQUISITION OF PHARMASSET, INC.
On January 17, 2012, we completed the acquisition of Pharmasset, a publicly-held clinical-stage pharmaceutical company committed to discovering, developing and commercializing novel drugs to treat viral infections. Pharmasset's primary focus was the development of oral therapeutics for the treatment of HCV infection. We believe the acquisition of Pharmasset will provide us with an opportunity to complement our existing HCV portfolio and help advance our effort to develop all-oral regimens for the treatment of HCV.
We acquired all of the outstanding shares of common stock of Pharmasset for $137 per share in cash through a tender offer and subsequent merger under the terms of an agreement and plan of merger entered into in November 2011. The aggregate cash payment to acquire all of the outstanding shares of common stock was $11.1 billion. We financed the transaction with approximately $5.2 billion in cash on hand, $2.2 billion in bank debt issued in January 2012 and $3.7 billion in senior unsecured notes issued in December 2011.
Pharmasset's lead compound, now known as GS-7977, is a nucleotide analog being evaluated in Phase 2 and Phase 3 clinical studies for the treatment of HCV infection across genotypes. Since the acquisition, we have received data from clinical trials evaluating GS-7977. For example:
In February 2012, we announced that data indicates that a 12 week course of treatment of GS-7977 with ribavirin in genotype 1 patients with a prior “null” response to an interferon-containing regimen will not be sufficient to cure their disease.
In April 2012, we announced data from our ELECTRON and QUANTUM studies, which found that 88% and 59% of genotype 1 patients and treatment-naïve patients, respectively, taking a 12-week all-oral regimen of GS-7977 and ribavirin achieved a sustained viral response four weeks after the completion of a 12-week course of therapy. We also announced data from our ATOMIC study, which found that 90% of genotype 1 HCV patients achieved a sustained viral response 12 weeks after a 12-week course of therapy with GS-7977 plus ribavirin and interferon. 
Also in April 2012, Bristol-Myers Squibb Company (BMS) also announced data from its Phase 2 study evaluating GS-7977 in combination with daclatasvir with and without ribavirin in genotype 1 and genotype 2 and 3 treatment-naïve infected patients. The data showed that 100% of genotype 1 and 91% of genotype 2 and 3 patients achieved a sustained viral response four weeks after the completion of a 24-week course of treatment.
The Pharmasset acquisition was accounted for as a business combination. The results of operations of Pharmasset have been included in our Condensed Consolidated Statement of Income since January 13, 2012, the date on which we acquired approximately 88% of the outstanding shares of common stock of Pharmasset, cash consideration was transferred, and as a result, we obtained effective control of Pharmasset. During the first quarter of 2012, Pharmasset was integrated into Gilead's operations. As we do not track earnings results by product candidate or therapeutic area, we do not maintain separate earnings results for Pharmasset. The acquisition was completed on January 17, 2012, at which time Pharmasset became a wholly-owned subsidiary of Gilead.
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


The $11.1 billion cash payment consisted of a $10.38 billion cash payment to the outstanding common stockholders as well as a $668.3 million cash payment to option holders under the Pharmasset stock option plans. The $10.38 billion cash payment to the outstanding common stockholders and $474.3 million of the cash payment to the option holders under the Pharmasset stock option plans were accounted for as consideration transferred. The remaining $193.9 million of cash payment was accounted for as stock-based compensation expense resulting from the accelerated vesting of Pharmasset employee options immediately prior to the acquisition.
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


In-Process Research and Development (IPR&D)
The estimated fair value of the acquired IPR&D related to GS-7977 was $10.72 billion, which was determined using a probability-weighted income approach, that discounts expected future cash flows to present value. The estimated net cash flows were discounted using a discount rate of 12%, which is based on the estimated weighted-average cost of capital for companies with profiles similar to that of Pharmasset. This rate is comparable to the estimated internal rate of return for the acquisition and represents the rate that market participants would use to value the intangible asset. The projected cash flows from GS-7977 were based on key assumptions such as: the time and resources needed to complete its development considering its stage of development on the acquisition date, the probability of obtaining approval from the U.S. Food and Drug Administration (FDA) and other regulatory agencies, estimates of revenues and operating profits, the life of the potential commercialized product and other associated risks related to the viability of and potential alternative treatments in future target markets. Intangible assets related to IPR&D projects are considered to be indefinite-lived assets until the completion or abandonment of the associated R&D efforts.
Goodwill
The $74.8 million of goodwill represents the excess of the consideration transferred over the fair values of assets acquired and liabilities assumed and is attributable to the synergies expected from combining our R&D operations with Pharmasset's. None of the goodwill is expected to be deductible for income tax purposes.
Stock-Based Compensation Expense
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 Costs
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


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


Pro Forma Information
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


The unaudited pro forma consolidated results include the following non-recurring pro forma adjustments:
Stock-based compensation expense of $193.9 million and other costs of $16.4 million were excluded from the net income attributable to Gilead for the three months ended March 31, 2012 and were included in the net income attributable to Gilead for the three months ended March 31, 2011;
Other costs of $52.3 million incurred during the three months ended December 31, 2011 were included in the net income attributable to Gilead for the three months ended March 31, 2011.
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Inventories
3 Months Ended
Mar. 31, 2012
Inventory Disclosure [Abstract]
Inventories
INVENTORIES
Inventories are summarized as follows (in thousands):
 
March 31,
2012
 
December 31,
2011
Raw materials
$
584,835

 
$
697,621

Work in process
603,428

 
466,499

Finished goods
229,770

 
225,863

Total
$
1,418,033

 
$
1,389,983


As of March 31, 2012 and December 31, 2011, we held $974.3 million and $995.7 million of efavirenz in inventory, which was purchased from BMS at BMS’s estimated net selling price of efavirenz.
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Intangible Assets
3 Months Ended
Mar. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets
INTANGIBLE ASSETS AND GOODWILL
The following table summarizes the carrying amount of our intangible assets and goodwill (in thousands):
 
March 31,
2012
 
December 31,
2011
Indefinite-lived intangible assets
$
10,986,200

 
$
266,200

Finite-lived intangible assets
780,827

 
796,664

Total intangible assets
11,767,027

 
1,062,864

Goodwill
1,078,919

 
1,004,102

Total intangible assets and goodwill
$
12,845,946

 
$
2,066,966


Indefinite-Lived Intangible Assets
In January 2012, we acquired $10.72 billion of purchased IPR&D as part of our acquisition of Pharmasset that we have classified as indefinite-lived intangible assets (See Note 5).
As of December 31, 2011, we had indefinite-lived intangible assets of $266.2 million, which consisted of $117.0 million and $149.2 million of purchased IPR&D from our acquisitions of Arresto Biosciences, Inc. and Calistoga Pharmaceuticals, Inc., respectively.
Finite-Lived Intangible Assets
The following table summarizes our finite-lived intangible assets (in thousands):
 
March 31, 2012
 
December 31, 2011
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Gross Carrying
Amount
 
Accumulated
Amortization
Intangible asset - Ranexa
$
688,400

 
$
106,104

 
$
688,400

 
$
97,099

Intangible asset - Lexiscan
262,800

 
76,159

 
262,800

 
69,723

Other
24,995

 
13,105

 
24,995

 
12,709

Total
$
976,195

 
$
195,368

 
$
976,195

 
$
179,531


Amortization expense related to intangible assets was $15.8 million and $17.4 million for the three months ended March 31, 2012 and 2011, respectively, and was recorded in cost of goods sold in our Condensed Consolidated Statements of Income.
As of March 31, 2012, the estimated future amortization expense associated with our intangible assets for the remaining nine months of 2012 and each of the five succeeding fiscal years are as follows (in thousands):
Fiscal Year
Amount
2012 (remaining nine months)
$
47,509

2013
64,283

2014
66,735

2015
73,261

2016
100,048

2017
132,786

Total
$
484,622


Goodwill
The following table summarizes the changes in the carrying amount of goodwill (in thousands):
Balance at December 31, 2011
$
1,004,102

Goodwill resulting from the acquisition of Pharmasset
74,817

Balance at March 31, 2012
$
1,078,919

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Collaborative Arrangements
3 Months Ended
Mar. 31, 2012
Collaborative Arrangements [Abstract]
Collaborative Arrangements
COLLABORATIVE ARRANGEMENTS
From time to time, as a result of entering into strategic collaborations, we may hold investments in non-public companies. We review our interests in investee companies for consolidation and/or appropriate disclosure based on applicable guidance. Contractual terms which provide us control over an entity may require us to consolidate the entity. Entities consolidated because they are controlled by means other than a majority voting interest are referred to as variable interest entities (VIE). We assess whether we are the primary beneficiary of a VIE 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 March 31, 2012, we determined that certain of our investee companies are VIEs; however, other than with respect to our joint ventures with BMS, we are not the primary beneficiary and therefore do not consolidate these investees.
Bristol-Myers Squibb Company
North America
In 2004, we entered into a collaboration arrangement with BMS in the United States to develop and commercialize a single-tablet regimen containing our Truvada and BMS's Sustiva (efavirenz), which we sell as Atripla. The collaboration is structured as a joint venture and operates as a limited liability company named Bristol-Myers Squibb & Gilead Sciences, LLC, which we consolidate. The ownership interests of the joint venture and thus the sharing of product revenue and costs reflect the respective economic interests of BMS and Gilead and are based on the proportions of the net selling price of Atripla attributable to efavirenz and Truvada. Since the net selling price for Truvada may change over time relative to the net selling price of efavirenz, both BMS's and our respective economic interests in the joint venture may vary annually.
We and BMS share marketing and sales efforts, with both parties providing equivalent sales force efforts at levels agreed to annually by BMS and Gilead. Since the second quarter of 2011, except for a limited number of activities that will be jointly managed, the parties no longer coordinate detailing and promotional activities in the United States and the parties have begun to reduce their joint promotional efforts in Canada as we launched Complera and in anticipation of the launch of Quad. The parties will continue to collaborate on activities such as manufacturing, regulatory, compliance and pharmacovigilance. We are responsible for accounting, financial reporting, tax reporting, manufacturing and product distribution for the joint venture. Both parties provide their respective bulk active pharmaceutical ingredients to the joint venture at their approximate market values. In 2006, we and BMS amended the joint venture's collaboration agreement to allow the joint venture to sell Atripla into Canada. As of March 31, 2012 and December 31, 2011, the joint venture held efavirenz active pharmaceutical ingredient which it purchased from BMS at BMS's estimated net selling price of efavirenz in the U.S. market. These amounts are included in inventories on our Condensed Consolidated Balance Sheets. As of March 31, 2012, total assets held by the joint venture were $1.70 billion and consisted primarily of cash and cash equivalents of $204.7 million, accounts receivable (including intercompany receivables with Gilead) of $278.1 million and inventories of $1.20 billion; total liabilities were $1.56 billion and consisted primarily of accounts payable (including intercompany payables with Gilead) of $611.7 million and other accrued expenses of $284.3 million. As of December 31, 2011, total assets held by the joint venture were $1.62 billion and consisted primarily of cash and cash equivalents of $156.9 million, accounts receivable (including intercompany receivables with Gilead) of $266.5 million and inventories of $1.19 billion; total liabilities were $1.27 billion and consisted primarily of accounts payable (including intercompany payables with Gilead) of $561.1 million and other accrued expenses of $232.9 million. These asset and liability amounts do not reflect the impact of intercompany eliminations that are included in our Condensed Consolidated Balance Sheets. Although we are the primary beneficiary of the joint venture, the legal structure of the joint venture limits the recourse that its creditors will have over our general credit or assets.
Europe
In 2007, Gilead Sciences Limited, a wholly-owned subsidiary in Ireland, and BMS entered into a collaboration arrangement to commercialize and distribute Atripla in the European Union, Iceland, Liechtenstein, Norway and Switzerland (collectively, the European Territory). The parties formed a limited liability company which we consolidate, to manufacture Atripla for distribution in the European Territory using efavirenz that it purchases from BMS at BMS's estimated net selling price of efavirenz in the European Territory. We are responsible for product distribution, inventory management and warehousing. Through our local subsidiaries, we have primary responsibility for order fulfillment, collection of receivables, customer relations and handling of sales returns in all the territories where we co-promote Atripla with BMS.
Starting in 2012, except for a limited number of activities that will be jointly managed, the parties no longer coordinate detailing and promotional activities in the region. We are also responsible for accounting, financial reporting and tax reporting for the collaboration. As of March 31, 2012 and December 31, 2011, efavirenz purchased from BMS at BMS's estimated net selling price of efavirenz in the European Territory is included in inventories on our Condensed Consolidated Balance Sheets.
The parties also formed a limited liability company to hold the marketing authorization for Atripla in Europe. We have primary responsibility for regulatory activities and we share marketing and sales efforts with BMS. In the major market countries, both parties have agreed to provide equivalent sales force efforts. Revenue and cost sharing is based on the relative ratio of the respective net selling prices of Truvada and efavirenz.
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Long-Term Obligations
3 Months Ended
Mar. 31, 2012
Debt Disclosure [Abstract]
Long-Term Obligations [Text Block]
LONG-TERM OBLIGATIONS
Financing Arrangements
The following table summarizes the carrying amount of our borrowings under various financing arrangements (in thousands):
Type of Borrowing
Description
Issue Date
Due Date
Interest Rate
March 31,
2012
 
December 31,
2011
Convertible Senior
May 2013 Notes
April 2006
May 2013
0.625%
$
614,791

 
$
607,036

Convertible Senior
May 2014 Notes
July 2010
May 2014
1.00%
1,188,594

 
1,181,525

Convertible Senior
May 2016 Notes
July 2010
May 2016
1.625%
1,138,538

 
1,132,293

Senior Unsecured
April 2021 Notes

March 2011
April 2021
4.50%
992,280

 
992,066

Senior Unsecured
December 2014 Notes

December 2011
December 2014
2.40%
749,157

 
749,078

Senior Unsecured
December 2016 Notes

December 2011
December 2016
3.05%
698,921

 
698,864

Senior Unsecured
December 2021 Notes
December 2011
December 2021
4.40%
1,247,212

 
1,247,138

Senior Unsecured
December 2041 Notes

December 2011
December 2041
5.65%
997,753

 
997,734

Term Loan Facility
Term Loan
January 2012
January 2015
Variable
650,000

 

Credit Facility
Short-Term Revolver
January 2012
January 2013
Variable
400,000

 

Credit Facility
Five-Year Revolver
January 2012
January 2017
Variable
750,000

 

Total debt, net
 
 
 
 
$
9,427,246

 
$
7,605,734

Less current portion
 
 
 
 
1,350,000

 

Total long-term debt, net
 
 
 
 
$
8,077,246

 
$
7,605,734


Credit Facilities
We were eligible to borrow up to an aggregate of $1.25 billion in revolving credit loans under an amended and restated credit agreement that we entered into in 2007. The credit agreement also included a sub-facility for swing-line loans and letters of credit. As of December 31, 2011, we had $4.0 million in letters of credit outstanding under the credit agreement. In January 2012, we fully repaid the outstanding obligations under this credit agreement and terminated the credit agreement.
In January 2012, in conjunction with our acquisition of Pharmasset, we entered into a five-year $1.25 billion revolving credit facility credit agreement (the Five-Year Revolving Credit Agreement), a $750.0 million short-term revolving credit facility credit agreement (the Short-Term Revolving Credit Agreement) and a $1.00 billion term loan facility (the Term Loan Credit Agreement). We borrowed $750.0 million under the Five-Year Revolving Credit Agreement, $400.0 million under the Short-Term Revolving Credit Agreement and $1.00 billion under the Term Loan Credit Agreement, upon the close of the acquisition. In March 2012, we repaid $350.0 million of the outstanding debt under the Term Loan Credit Agreement.
All three credit agreements contain customary representations, warranties, affirmative, negative and financial maintenance covenants and events of default. The loans bear interest at either (i) the Eurodollar Rate plus the Applicable Margin or (ii) the Base Rate plus the Applicable Margin, each as defined in the applicable credit agreement. We may reduce the commitments and may prepay loans under any of these agreements in whole or in part at any time without premium or penalty.
The Five-Year Revolving Credit Agreement was inclusive of a $30.0 million swing line loan sub-facility and a $25.0 million letter of credit sub-facility. As of March 31, 2012, we had $4.0 million in letters of credit outstanding under the Five-Year Revolving Credit Agreement. The Five-Year Revolving Credit Agreement will terminate and all unpaid borrowings thereunder shall be due and payable in January 2017. The Short-Term Revolving Credit Agreement will terminate and all unpaid borrowings thereunder shall be due and payable in January 2013; however, at our request, the maturity date may be extended until January 2014. All principal repayment installments under the Term Loan Credit Agreement will be due and payable as specified in the Term Loan Credit Agreement, with the final principal installment payment due and payable in January 2015.
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Commitments And Contingencies
3 Months Ended
Mar. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES
Legal Proceedings
In June 2011, we received a subpoena from the United States Attorney's Office for the Northern District of California requesting documents related to the manufacture, and related quality and distribution practices, of Atripla, Emtriva, Hepsera, Letairis, Truvada, Viread and Complera. We have been cooperating and will continue to cooperate with this governmental inquiry. An estimate of a possible loss or range of losses cannot be determined given we are at the early stage of the inquiry.
We are a party to various legal actions that arose in the ordinary course of our business. We do not believe that any of these legal actions will have a material adverse impact on our consolidated business, financial position or results of operations.
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Stock-Based Compensation Expenses
3 Months Ended
Mar. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expenses
STOCK-BASED COMPENSATION EXPENSE
The following table summarizes the stock-based compensation expense included in our Condensed Consolidated Statements of Income (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Cost of goods sold
$
2,101

 
$
2,644

Research and development expenses
118,622

 
16,720

Selling, general and administrative expenses
121,945

 
30,106

Stock-based compensation expense included in total costs and expenses
242,668

 
49,470

Income tax effect
(13,064
)
 
(12,856
)
Stock-based compensation expense, net of tax
$
229,604

 
$
36,614


Total stock-based compensation for the three months ended March 31, 2012, included $100.1 million and $93.8 million in research and development expenses and selling, general and administrative expenses, respectively, related to the acceleration of unvested stock options in connection with the acquisition of Pharmasset.
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Stockholders' Equity
3 Months Ended
Mar. 31, 2012
Equity [Abstract]
Stockholders' Equity
2.
STOCKHOLDERS’ EQUITY
Stock Repurchase Program
During the three months ended March 31, 2012, we repurchased a total of $20.8 million or 0.4 million shares of common stock under our January 2011, three-year, $5.00 billion stock repurchase program.
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Segment Information
3 Months Ended
Mar. 31, 2012
Segment Reporting [Abstract]
Segment Information
SEGMENT INFORMATION
We operate in one business segment, which primarily focuses on the development and commercialization of human therapeutics for life threatening diseases. All products are included in one segment, because the majority of our products have similar economic and other characteristics, including the nature of the products and production processes, type of customers, distribution methods and regulatory environment.
Product sales consisted of the following (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Antiviral products:
 
 
 
Atripla
$
887,596

 
$
744,512

Truvada
758,263

 
673,111

Viread
191,693

 
168,395

Complera/Eviplera
52,180

 

Hepsera
29,297

 
38,096

Emtriva
6,777

 
6,576

Total antiviral products
1,925,806

 
1,630,690

AmBisome
84,764

 
78,506

Letairis
87,288

 
62,174

Ranexa
83,201

 
68,293

Other products
27,283

 
23,915

Total product sales
$
2,208,342

 
$
1,863,578


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): 
 
Three Months Ended
 
March 31,
 
2012
 
2011
Cardinal Health, Inc.
20
%
 
17
%
McKesson Corp.
16
%
 
15
%
AmerisourceBergen Corp.
11
%
 
13
%
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Income Taxes
3 Months Ended
Mar. 31, 2012
Income Tax Disclosure [Abstract]
Income Taxes
INCOME TAXES
Our income tax rate of 34.6% for the three months ended March 31, 2012 differed from the U.S. federal statutory rate of 35% due primarily to tax credits and certain operating earnings from non-U.S subsidiaries that are considered indefinitely invested outside of the United States, partially offset by state taxes and the stock-based compensation expense related to the Pharmasset acquisition for which we received no tax benefit. We do not provide for U.S. income taxes on undistributed earnings of our foreign operations that are intended to be permanently reinvested.
We file federal, state and foreign income tax returns in many jurisdictions in the United States and abroad. For federal income tax purposes, the statute of limitations is open for 2008 and onwards. For certain acquired entities, the statute of limitations is open for all years from inception due to our utilization of their net operating losses and credits carried over from prior years. For California income tax purposes, the statute of limitations is open for 2002 and onwards.
Our income tax returns are audited by federal, state and foreign tax authorities. We are currently under examination by the Internal Revenue Service (IRS) for the 2008 and 2009 tax years 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 periodically evaluate our exposures associated with our tax filing positions.
As of March 31, 2012, we believe that it is reasonably possible that our unrecognized tax benefits will not significantly change in the next 12 months as we do not expect to have clarification from the IRS and other tax authorities around any of our uncertain tax 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. We do not believe any of our uncertain tax positions will have a material adverse effect on our Condensed Consolidated Financial Statements, although an adverse resolution of one or more of these uncertain tax positions in any period could have a material impact on the results of operations for that period.
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Summary Of Significant Accounting Policies (Policy)
3 Months Ended
Mar. 31, 2012
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 only of normal recurring adjustments) that the management of Gilead Sciences, Inc. (Gilead, we 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 preparation of these Condensed Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an ongoing basis, we evaluate our estimates, including critical accounting policies or estimates related to revenue recognition, intangible assets, allowance for doubtful accounts, prepaid royalties, clinical trial accruals, our tax provision and stock-based compensation. We base our estimates on historical experience and on various other 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. Actual results may differ significantly from these estimates.
The accompanying Condensed Consolidated Financial Statements include the accounts of Gilead, our wholly-owned subsidiaries and our joint ventures with Bristol-Myers Squibb Company (BMS), for which we are the primary beneficiary. We record a noncontrolling interest in our Condensed Consolidated Financial Statements to reflect BMS’s interest in the joint ventures. All intercompany transactions have been eliminated. The Condensed Consolidated Financial Statements include the results of companies acquired by us from the date of each acquisition for the applicable reporting periods.
The accompanying Condensed Consolidated Financial Statements and related financial information should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2011, included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC). Certain amounts within our Condensed Consolidated Balance Sheets have been reclassified to conform to the current presentation.
Earnings Per Share, Policy [Policy Text Block]
Net Income Per Share Attributable to Gilead Common Stockholders
Basic net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding during the period. Diluted net income per share attributable to Gilead common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding and other dilutive securities outstanding during the period. The potential dilutive shares of our common stock resulting from the assumed exercise of outstanding stock options, performance shares and the assumed exercise of warrants relating to the convertible senior notes due in May 2013 (May 2013 Notes), May 2014 (May 2014 Notes) and May 2016 (May 2016 Notes) (collectively, the Convertible Notes) are determined under the treasury stock method.
Because the principal amount of the Convertible Notes will be settled in cash, only the conversion spread relating to the Convertible Notes is included in our calculation of diluted net income per share attributable to Gilead common stockholders. Our common stock resulting from the assumed settlement of the conversion spread of the Convertible Notes has a dilutive effect when the average market price of our common stock during the period exceeds the conversion prices of $38.10, $45.08 and $45.41 for the May 2013 Notes, May 2014 Notes and May 2016 Notes, respectively.
In 2011, our convertible senior notes due in May 2011 (May 2011 Notes) matured and the related warrants expired and as a result, we have only considered their impact for the period they were outstanding on our net income per share calculations. Our common stock resulting from the assumed settlement of the conversion spread of the May 2011 Notes had a dilutive effect when the average market price of our common stock during the period exceeded the conversion price of $38.75. During the three months ended March 31, 2011, the average market price of our common stock exceeded the conversion price of the May 2011 Notes and the dilutive effect is included in the accompanying table. Warrants related to the May 2011 Notes had a dilutive effect when the average market price of our common stock during the period exceeded the warrants’ exercise price of $50.80. The average market price of our common stock during the three months ended March 31, 2011 did not exceed the warrants’ exercise price related to the May 2011 Notes; therefore, these warrants did not have a dilutive effect on our net income per share for that period.
During the three months ended March 31, 2012, the average market price of our common stock exceeded the conversion prices of the May 2013 Notes, May 2014 Notes and May 2016 Notes and the dilutive effects are included in the accompanying table. During the three months ended March 31, 2011, the average market price of our common stock exceeded the conversion price of the May 2013 Notes and the dilutive effect is included in the accompanying table. During the three months ended March 31, 2011, the average market price of our common stock did not exceed the conversion prices of the May 2014 Notes and May 2016 Notes and therefore, these notes did not have a dilutive effect on our net income per share for that period.
Warrants relating to the May 2013 Notes, May 2014 Notes and May 2016 Notes have a dilutive effect when the average market price of our common stock during the period exceeds the warrants’ exercise prices of $53.90, $56.76 and $60.10, respectively. The average market prices of our common stock during each of the three months ended March 31, 2012 and 2011 did not exceed the warrants’ exercise prices relating to any of the Convertible Notes; therefore, these warrants did not have a dilutive effect on our net income per share for those periods.
Stock options to purchase approximately 10.9 million and 22.1 million weighted-average shares of our common stock were outstanding during the three months ended March 31, 2012 and 2011, respectively, but were not included in the computation of diluted net income per share attributable to Gilead common stockholders because their effect was antidilutive.
The following table is a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share attributable to Gilead common stockholders (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Numerator:
 
 
 
Net income attributable to Gilead
$
441,956

 
$
651,141

Denominator:
 
 
 
Weighted-average shares of common stock outstanding used in the calculation of basic net income per share attributable to Gilead common stockholders
756,286

 
796,115

Effect of dilutive securities:
 
 
 
Stock options and equivalents
14,873

 
15,007

Conversion spread related to the May 2011 Notes

 
224

Conversion spread related to the May 2013 Notes
3,423

 
511

Conversion spread related to the May 2014 Notes
1,505

 

Conversion spread related to the May 2016 Notes
1,301

 

Weighted-average shares of common stock outstanding used in the calculation of diluted net income per share attributable to Gilead common stockholders
777,388

 
811,857

Concentration of Risk [Policy Text Block]
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. As of March 31, 2012, our accounts receivable in Southern Europe, specifically Greece, Italy, Portugal and Spain, totaled approximately $1.25 billion, of which $719.5 million were greater than 120 days past due and $313.3 million were greater than 365 days past due. 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 at March 31, 2012.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
There have been no new accounting pronouncements during the three months ended March 31, 2012 that are of significance to us.
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Summary Of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2012
Accounting Policies [Abstract]
Reconciliation Of The Numerator And Denominator Used In The Calculation Of Basic And Diluted Net Income Per Share
The following table is a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share attributable to Gilead common stockholders (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Numerator:
 
 
 
Net income attributable to Gilead
$
441,956

 
$
651,141

Denominator:
 
 
 
Weighted-average shares of common stock outstanding used in the calculation of basic net income per share attributable to Gilead common stockholders
756,286

 
796,115

Effect of dilutive securities:
 
 
 
Stock options and equivalents
14,873

 
15,007

Conversion spread related to the May 2011 Notes

 
224

Conversion spread related to the May 2013 Notes
3,423

 
511

Conversion spread related to the May 2014 Notes
1,505

 

Conversion spread related to the May 2016 Notes
1,301

 

Weighted-average shares of common stock outstanding used in the calculation of diluted net income per share attributable to Gilead common stockholders
777,388

 
811,857

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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2012
Fair Value Disclosures [Abstract]
Summary Of Assets And Liabilities Recorded At Fair Value

The following table summarizes, for assets or liabilities recorded at fair value, the respective fair value and the classification by level of input within the fair value hierarchy defined above (in thousands):
 
March 31, 2012
 
December 31, 2011
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
518,248

 
$

 
$

 
$
518,248

 
$
7,455,982

 
$

 
$

 
$
7,455,982

Certificates of deposit

 

 

 

 

 
1,139,982

 

 
1,139,982

Non-U.S. government securities

 

 

 

 

 

 
24,741

 
24,741

Corporate debt securities

 

 

 

 

 
404,989

 

 
404,989

Student loan-backed securities

 

 
48,168

 
48,168

 

 

 
46,952

 
46,952

Total debt securities
518,248

 

 
48,168

 
566,416

 
7,455,982

 
1,544,971

 
71,693

 
9,072,646

Equity securities

 

 

 

 
8,503

 

 

 
8,503

Derivatives

 
51,958

 

 
51,958

 

 
100,475

 

 
100,475

 
$
518,248

 
$
51,958

 
$
48,168

 
$
618,374

 
$
7,464,485


$
1,645,446


$
71,693


$
9,181,624

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
$

 
$

 
$
138,328

 
$
138,328

 
$

 
$

 
$
135,591

 
$
135,591

Derivatives

 
18,404

 

 
18,404

 

 
5,710

 

 
5,710

 
$

 
$
18,404

 
$
138,328

 
$
156,732

 
$

 
$
5,710

 
$
135,591

 
$
141,301

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table provides a rollforward of assets measured using Level 3 inputs (in thousands):  
 
Three Months Ended
 
March 31,
 
2012
 
2011
Balance, beginning of period
$
71,693

 
$
80,365

Total realized and unrealized gains (losses) included in:
 
 
 
Other income (expense), net
(40,096
)
 
1,246

Other comprehensive income, net
33,094

 
2,160

Sales of marketable securities
(16,523
)
 
(20,830
)
Transfers into Level 3

 
53,882

Balance, end of period
$
48,168

 
$
116,823

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Text Block]
The following table provides a rollforward of our contingent consideration liabilities (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Balance, beginning of period
$
135,591

 
$
11,100

Changes in valuation
2,737

 

Balance, end of period
$
138,328

 
$
11,100

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Available-For-Sale Securities (Tables)
3 Months Ended
Mar. 31, 2012
Investments, Debt and Equity Securities [Abstract]
Summary Of Available-For-Sale Debt And Equity Securities At Estimated Fair Value
The following table is a summary of available-for-sale debt and equity securities included in cash and cash equivalents or marketable securities in our Condensed Consolidated Balance Sheets. During the quarter ended March 31, 2012, we liquidated a portion of our investment portfolio to partially fund the acquisition of Pharmasset, Inc. (Pharmasset). Estimated fair values of available-for-sale securities are generally based on prices obtained from commercial pricing services (in thousands):
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
March 31, 2012
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
Money market funds
$
518,248

 
$

 
$

 
$
518,248

Certificates of deposit

 

 

 

Non-U.S. government securities

 

 

 

Corporate debt securities

 

 

 

Student loan-backed securities
51,500

 

 
(3,332
)
 
48,168

Total debt securities
569,748

 

 
(3,332
)
 
566,416

Equity securities

 

 

 

Total
$
569,748

 
$

 
$
(3,332
)
 
$
566,416

December 31, 2011
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
Money market funds
$
7,455,982

 
$

 
$

 
$
7,455,982

Certificates of deposit
1,140,000

 

 
(18
)
 
1,139,982

Non-U.S. government securities
55,246

 

 
(30,505
)
 
24,741

Corporate debt securities
404,994

 

 
(5
)
 
404,989

Student loan-backed securities
51,500

 

 
(4,548
)
 
46,952

Total debt securities
9,107,722

 

 
(35,076
)

9,072,646

Equity securities
1,451

 
7,052

 

 
8,503

Total
$
9,109,173

 
$
7,052

 
$
(35,076
)
 
$
9,081,149

Summary Of The Classification Of Available-For-Sale Debt And Equity Securities
The following table summarizes the classification of the available-for-sale debt and equity securities on our Condensed Consolidated Balance Sheets (in thousands):
 
March 31,
2012
 
December 31,
2011
Cash and cash equivalents
$
518,248

 
$
9,000,954

Short-term marketable securities

 
16,491

Long-term marketable securities
48,168

 
63,704

Total
$
566,416

 
$
9,081,149

Summary Of Available-For-Sale Debt Securities By Contractual Maturity
The following table summarizes our portfolio of available-for-sale debt securities by contractual maturity (in thousands):
 
March 31, 2012
 
Amortized Cost
 
Fair Value
Less than one year
$
518,248

 
$
518,248

Greater than one year but less than five years

 

Greater than five years but less than ten years

 

Greater than ten years
51,500

 
48,168

Total
$
569,748

 
$
566,416

Summary Of Gross Realized Gains And Losses Related To Sales Of Marketable Securities
The following table summarizes the gross realized gains and losses related to sales of marketable securities (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Gross realized gains on sales
$
10,015

 
$
3,697

Gross realized losses on sales
$
(40,096
)
 
$
(1,362
)
Summary Of Available-For-Sale Debt Securities In A Continuous Unrealized 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 thousands):
 
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
March 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Certificates of deposit
$

 
$

 
$

 
$

 
$

 
$

Non-U.S. government securities

 

 

 

 

 

Corporate debt securities

 

 

 

 

 

Student loan-backed securities

 

 
(3,332
)
 
48,168

 
(3,332
)
 
48,168

Total
$

 
$

 
$
(3,332
)
 
$
48,168

 
$
(3,332
)
 
$
48,168

December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Certificates of deposit
$
(18
)
 
$
1,019,982

 
$

 
$

 
$
(18
)
 
$
1,019,982

Non-U.S. government securities
(30,505
)
 
24,741

 

 

 
(30,505
)
 
24,741

Corporate debt securities
(5
)
 
224,989

 

 

 
(5
)
 
224,989

Student loan-backed securities

 

 
(4,548
)
 
46,952

 
(4,548
)
 
46,952

Total
$
(30,528
)
 
$
1,269,712

 
$
(4,548
)
 
$
46,952

 
$
(35,076
)
 
$
1,316,664

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Derivative Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Values Of Derivative Instruments On Condensed Consolidated Balance Sheets
The following table summarizes information about the fair values of derivative instruments on our Condensed Consolidated Balance Sheets (in thousands):
 
March 31, 2012
 
Asset Derivatives
 
Liability Derivatives
 
Classification
 
Fair Value
 
Classification
 
Fair Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
Foreign currency exchange contracts
Other current assets
 
$
47,498

 
Other accrued liabilities
 
$
14,564

Foreign currency exchange contracts
Other noncurrent assets
 
4,459

 
Other long-term obligations
 
3,778

Total derivatives designated as hedges
 
 
51,957

 
 
 
18,342

Derivatives not designated as hedges:
 
 
 
 
 
 
 
Foreign currency exchange contracts
Other current assets
 
1

 
Other accrued liabilities
 
61

Total derivatives not designated as hedges
 
 
1

 
 
 
61

Total derivatives
 
 
$
51,958

 
 
 
$
18,403

 
 
December 31, 2011
 
Asset Derivatives
 
Liability Derivatives
 
Classification
 
Fair Value
 
Classification
 
Fair Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
Foreign currency exchange contracts
Other current assets
 
$
77,066

 
Other accrued liabilities
 
$
5,052

Foreign currency exchange contracts
Other noncurrent assets
 
23,169

 
Other long-term obligations
 
620

Total derivatives designated as hedges
 
 
100,235

 
 
 
5,672

Derivatives not designated as hedges:
 
 
 
 
 
 
 
Foreign currency exchange contracts
Other current assets
 
240

 
Other accrued liabilities
 
38

Total derivatives not designated as hedges
 
 
240

 
 
 
38

Total derivatives
 
 
$
100,475

 
 
 
$
5,710

Summary Of The Effect Of Foreign Currency Exchange Contracts On Condensed Consolidated Statements Of Income
The following table summarizes the effect of our foreign currency exchange contracts on our Condensed Consolidated Statements of Income (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Derivatives designated as hedges:
 
 
 
Net gains (losses) recognized in OCI (effective portion)
$
(48,886
)
 
$
(127,499
)
Net gains (losses) reclassified from accumulated OCI into product sales (effective portion)
$
11,227

 
$
9,929

Net gains (losses) recognized in other income (expense), net (ineffective portion and amounts excluded from effectiveness testing)
$
(3,212
)
 
$
995

Derivatives not designated as hedges:
 
 
 
Net gains (losses) recognized in other income (expense), net
$
(27,174
)
 
$
(85,846
)
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Acquisitions of Pharmasset, Inc. (Tables)
3 Months Ended
Mar. 31, 2012
Business Combinations [Abstract]
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

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Inventories (Tables)
3 Months Ended
Mar. 31, 2012
Inventory Disclosure [Abstract]
Schedule Of Inventories
Inventories are summarized as follows (in thousands):
 
March 31,
2012
 
December 31,
2011
Raw materials
$
584,835

 
$
697,621

Work in process
603,428

 
466,499

Finished goods
229,770

 
225,863

Total
$
1,418,033

 
$
1,389,983

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Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill [Table Text Block]
The following table summarizes the carrying amount of our intangible assets and goodwill (in thousands):
 
March 31,
2012
 
December 31,
2011
Indefinite-lived intangible assets
$
10,986,200

 
$
266,200

Finite-lived intangible assets
780,827

 
796,664

Total intangible assets
11,767,027

 
1,062,864

Goodwill
1,078,919

 
1,004,102

Total intangible assets and goodwill
$
12,845,946

 
$
2,066,966

Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block]
The following table summarizes our finite-lived intangible assets (in thousands):
 
March 31, 2012
 
December 31, 2011
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Gross Carrying
Amount
 
Accumulated
Amortization
Intangible asset - Ranexa
$
688,400

 
$
106,104

 
$
688,400

 
$
97,099

Intangible asset - Lexiscan
262,800

 
76,159

 
262,800

 
69,723

Other
24,995

 
13,105

 
24,995

 
12,709

Total
$
976,195

 
$
195,368

 
$
976,195

 
$
179,531

Estimated Future Amortization Expense
As of March 31, 2012, the estimated future amortization expense associated with our intangible assets for the remaining nine months of 2012 and each of the five succeeding fiscal years are as follows (in thousands):
Fiscal Year
Amount
2012 (remaining nine months)
$
47,509

2013
64,283

2014
66,735

2015
73,261

2016
100,048

2017
132,786

Total
$
484,622

Schedule of Goodwill [Table Text Block]
The following table summarizes the changes in the carrying amount of goodwill (in thousands):
Balance at December 31, 2011
$
1,004,102

Goodwill resulting from the acquisition of Pharmasset
74,817

Balance at March 31, 2012
$
1,078,919

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Long-Term Obligations (Tables)
3 Months Ended
Mar. 31, 2012
Debt Disclosure [Abstract]
Schedule Of Carrying Amount Of Convertible Senior Notes
The following table summarizes the carrying amount of our borrowings under various financing arrangements (in thousands):
Type of Borrowing
Description
Issue Date
Due Date
Interest Rate
March 31,
2012
 
December 31,
2011
Convertible Senior
May 2013 Notes
April 2006
May 2013
0.625%
$
614,791

 
$
607,036

Convertible Senior
May 2014 Notes
July 2010
May 2014
1.00%
1,188,594

 
1,181,525

Convertible Senior
May 2016 Notes
July 2010
May 2016
1.625%
1,138,538

 
1,132,293

Senior Unsecured
April 2021 Notes

March 2011
April 2021
4.50%
992,280

 
992,066

Senior Unsecured
December 2014 Notes

December 2011
December 2014
2.40%
749,157

 
749,078

Senior Unsecured
December 2016 Notes

December 2011
December 2016
3.05%
698,921

 
698,864

Senior Unsecured
December 2021 Notes
December 2011
December 2021
4.40%
1,247,212

 
1,247,138

Senior Unsecured
December 2041 Notes

December 2011
December 2041
5.65%
997,753

 
997,734

Term Loan Facility
Term Loan
January 2012
January 2015
Variable
650,000

 

Credit Facility
Short-Term Revolver
January 2012
January 2013
Variable
400,000

 

Credit Facility
Five-Year Revolver
January 2012
January 2017
Variable
750,000

 

Total debt, net
 
 
 
 
$
9,427,246

 
$
7,605,734

Less current portion
 
 
 
 
1,350,000

 

Total long-term debt, net
 
 
 
 
$
8,077,246

 
$
7,605,734

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Stock-Based Compensation Expenses (Tables)
3 Months Ended
Mar. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Stock-Based Compensation Expenses Included In Consolidated Statements Of Income
The following table summarizes the stock-based compensation expense included in our Condensed Consolidated Statements of Income (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Cost of goods sold
$
2,101

 
$
2,644

Research and development expenses
118,622

 
16,720

Selling, general and administrative expenses
121,945

 
30,106

Stock-based compensation expense included in total costs and expenses
242,668

 
49,470

Income tax effect
(13,064
)
 
(12,856
)
Stock-based compensation expense, net of tax
$
229,604

 
$
36,614

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Segment Information (Tables)
3 Months Ended
Mar. 31, 2012
Segment Reporting [Abstract]
Product Sales
Product sales consisted of the following (in thousands):
 
Three Months Ended
 
March 31,
 
2012
 
2011
Antiviral products:
 
 
 
Atripla
$
887,596

 
$
744,512

Truvada
758,263

 
673,111

Viread
191,693

 
168,395

Complera/Eviplera
52,180

 

Hepsera
29,297

 
38,096

Emtriva
6,777

 
6,576

Total antiviral products
1,925,806

 
1,630,690

AmBisome
84,764

 
78,506

Letairis
87,288

 
62,174

Ranexa
83,201

 
68,293

Other products
27,283

 
23,915

Total product sales
$
2,208,342

 
$
1,863,578

Schedule Of Revenues From Each Customer Who Individually Accounted For 10% Or More Of Total Revenues
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): 
 
Three Months Ended
 
March 31,
 
2012
 
2011
Cardinal Health, Inc.
20
%
 
17
%
McKesson Corp.
16
%
 
15
%
AmerisourceBergen Corp.
11
%
 
13
%
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Summary Of Significant Accounting Policies (Reconciliation Of The Numerator And Denominator Used In The Calculation Of Basic And Diluted Net Income Per Share) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income Attributable to Gilead $ 441,956 $ 651,141
Weighted-average shares of common stock outstanding used in the calculation of basic net income per share attributable to Gilead common stockholders 756,286 796,115
Effect of dilutive securities, stock options and equivalents 14,873 15,007
Weighted-average shares of common stock outstanding used in the calculation of diluted net income per share attributable to Gilead common stockholders 777,388 811,857
May 2011 Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of dilutive securities, conversion spread 0 224
May 2013 Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of dilutive securities, conversion spread 3,423 511
Convertible Senior Notes Due In May 2014 Member
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of dilutive securities, conversion spread 1,505 0
Convertible Senior Notes Due In May 2016 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of dilutive securities, conversion spread 1,301 0
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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Summary of Significant Accounting Policies [Line Items]
Weighted-average shares of common stock outstanding excluded from the computation of diluted net income per share because their effect was antidilutive 10.9 22.1
Total Southern European Accounts Receivable $ 1,250,000,000
Total Southern European Accounts Receivable Greater Than 120 Days 719,500,000
Total Southern European Accounts Receivable Greater Than 365 Days $ 313,300,000
May 2011 Notes [Member]
Summary of Significant Accounting Policies [Line Items]
Conversion price of notes $ 38.75
Warrants exercise price 50.8
May 2013 Notes [Member]
Summary of Significant Accounting Policies [Line Items]
Conversion price of notes $ 38.1
Warrants exercise price 53.9
May 2014 Notes [Member]
Summary of Significant Accounting Policies [Line Items]
Conversion price of notes $ 45.08
Warrants exercise price 56.76
May 2016 Notes [Member]
Summary of Significant Accounting Policies [Line Items]
Conversion price of notes $ 45.41
Warrants exercise price 60.1
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Fair Value Measurements (Summary Of Assets and Liabilities Recorded At Fair Value) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2011
Dec. 31, 2010
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities $ 566,416 $ 9,072,646
Equity securities 0 8,503
Derivatives, assets 51,958 100,475
Fair value, total 618,374 9,181,624
Contingent Consideration 138,328 135,591 11,100 11,100
Derivatives, liabilities 18,404 5,710
Fair value, total 156,732 141,301
Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 518,248 7,455,982
Certificates of Deposit [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 1,139,982
Non-U.S. Government Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 24,741
Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 404,989
Student Loan-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 48,168 46,952
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 518,248 7,455,982
Equity securities 0 8,503
Derivatives, assets 0 0
Fair value, total 518,248 7,464,485
Contingent Consideration 0 0
Derivatives, liabilities 0 0
Fair value, total 0 0
Level 1 [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 518,248 7,455,982
Level 1 [Member] | Certificates of Deposit [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 1 [Member] | Non-U.S. Government Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 1 [Member] | Student Loan-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 1,544,971
Equity securities 0 0
Derivatives, assets 51,958 100,475
Fair value, total 51,958 1,645,446
Contingent Consideration 0 0
Derivatives, liabilities 18,404 5,710
Fair value, total 18,404 5,710
Level 2 [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 2 [Member] | Certificates of Deposit [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 1,139,982
Level 2 [Member] | Non-U.S. Government Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 404,989
Level 2 [Member] | Student Loan-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 48,168 71,693
Equity securities 0 0
Derivatives, assets 0 0
Fair value, total 48,168 71,693
Contingent Consideration 138,328 135,591
Derivatives, liabilities 0 0
Fair value, total 138,328 135,591
Level 3 [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 3 [Member] | Certificates of Deposit [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 3 [Member] | Non-U.S. Government Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 24,741
Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities 0 0
Level 3 [Member] | Student Loan-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value, Debt securities $ 48,168 $ 46,952
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Fair Value Measurements (Reconciliation Of Marketable Securities Measured At Fair Value Using Significant Unobservable Inputs (Level 3)) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
Balance, beginning of period $ 71,693 $ 80,365
Total realized and unrealized gains (losses) included in, interest and other income, net (40,096) 1,246
Total realized and unrealized gains (losses) included in other comprehensive income, net 33,094 2,160
Sales of marketable securities (16,523) (20,830)
Transfers into Level 3 0 53,882
Balance, end of period $ 48,168 $ 116,823
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Fair Value Measurements Contingent Consideration Rollforward (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Dec. 31, 2010
Fair Value Disclosures [Abstract]
Contingent Consideration, Balance at Period Start, End $ 138,328 $ 11,100 $ 135,591 $ 11,100
Changes in Valuation $ 2,737 $ 0
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Fair Value Measurements (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
April 2021 Senior Unsecured Notes [Member]
Dec. 31, 2011
April 2021 Senior Unsecured Notes [Member]
Mar. 31, 2011
April 2021 Senior Unsecured Notes [Member]
Mar. 31, 2012
Senior Unsecured Notes Due In December Two Thousand Fourteen December Two Thousand Sixteen December Two Thousand Twenty One December Two Thousand Forty One [Member]
Jan. 17, 2012
Senior Unsecured Notes Due In December Two Thousand Fourteen December Two Thousand Sixteen December Two Thousand Twenty One December Two Thousand Forty One [Member]
Dec. 31, 2011
Senior Unsecured Notes Due In December Two Thousand Fourteen December Two Thousand Sixteen December Two Thousand Twenty One December Two Thousand Forty One [Member]
Mar. 31, 2012
Convertible Notes Payable [Member]
Dec. 31, 2011
Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Carrying value, convertible notes $ 2,940,000,000 $ 2,920,000,000
Carrying value, senior unsecured notes 992,300,000 992,100,000 3,690,000,000 3,690,000,000
Fair value, convertible notes 3,990,000,000 3,530,000,000
Fair Value, senior unsecures notes 1,060,000,000 1,060,000,000 3,890,000,000 3,930,000,000
Principal amount, senior unsecured notes 1,000,000,000 3,700,000,000 3,700,000,000
Weighted-average expected life of underlying student loans minimum, years 2
Weighted-average expected life of underlying student loans maximum, years 7
Annual discount rate used in discounted cash flow model 2.18%
Auction rate reset, lower range, in days 7
Auction rate reset, upper range, in days 14
Auction rate securities year of maturity, lower range 2025
Auction rate securities year of maturity, higher range 2040
Auction rate securities annual interest rate, lower range 0.12%
Auction rate securities annual interest rate, higher range 0.77%
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings $ (40,096,000) $ 1,246,000
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Available-For-Sale Securities (Summary Of Available-For-Sale Debt And Equity Securities At Estimated Fair Value) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total $ 569,748 $ 9,109,173
Gross Unrealized Gains 0 7,052
Gross Unrealized Losses 3,332 35,076
Estimated Fair Value, Debt securities 566,416 9,072,646
Estimated Fair Value, Equity securities 0 8,503
Estimated Fair Value, Total 566,416 9,081,149
Money Market Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt securities 518,248 7,455,982
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value, Debt securities 518,248 7,455,982
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt securities 0 1,140,000
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 18
Estimated Fair Value, Debt securities 0 1,139,982
Non-U.S. Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt securities 0 55,246
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 30,505
Estimated Fair Value, Debt securities 0 24,741
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt securities 0 404,994
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 5
Estimated Fair Value, Debt securities 0 404,989
Student Loan-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt securities 51,500 51,500
Gross Unrealized Gains 0 0
Gross Unrealized Losses 3,332 4,548
Estimated Fair Value, Debt securities 48,168 46,952
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt securities 569,748 9,107,722
Gross Unrealized Gains 0 0
Gross Unrealized Losses 3,332 35,076
Estimated Fair Value, Debt securities 566,416 9,072,646
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Equity securities 0 1,451
Gross Unrealized Gains 0 7,052
Gross Unrealized Losses 0 0
Estimated Fair Value, Equity securities $ 0 $ 8,503
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Available-For-Sale Securities (Summary Of The Classification Of Available-For-Sale Debt And Equity Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]
Cash and cash equivalents $ 518,248 $ 9,000,954
Short-term marketable securities 0 16,491
Long-term marketable securities 48,168 63,704
Estimated Fair Value, Total $ 566,416 $ 9,081,149
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Available-For-Sale Securities (Summary Of Available-For-Sale Debt Securities By Contractual Maturity) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]
Less Than One Year $ 518,248
Greater Than One Year But Less Than Five Years 0
Greater than five years but less than ten years, Amortized Cost 0
Greater than ten years, Amortized Cost 51,500
Total, Amortized Cost 569,748
Less than one year, Fair Value 518,248
Greater than one year but less than five years, Fair Value 0
Greater than five years but less than ten years, Fair Value 0
Greater than ten years, Fair Value 48,168
Total, Fair Value $ 566,416 $ 9,072,646
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Available-For-Sale Securities (Summary Of Gross Realized Gains And Losses Related To Sales Of Marketable Securities) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Investments, Debt and Equity Securities [Abstract]
Gross Realized Gains on Sales $ 10,015 $ 3,697
Gross Realized Losses on Sales $ 40,096 $ 1,362
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Available-For-Sale Securities (Summary Of Available-For-Sale Debt Securities In A Continuous Unrealized Loss Position Deemed Not To Be Other-Than-Temporarily Impaired) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Gross Unrealized Losses $ 0 $ 30,528
Less than 12 months, Estimated Fair Value 0 1,269,712
12 months or greater, Gross Unrealized Losses 3,332 4,548
12 months or greater, Estimated Fair Value 48,168 46,952
Total, Gross Unrealized Losses 3,332 35,076
Total, Estimated Fair Value 48,168 1,316,664
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Gross Unrealized Losses 0 18
Less than 12 months, Estimated Fair Value 0 1,019,982
12 months or greater, Gross Unrealized Losses 0 0
12 months or greater, Estimated Fair Value 0 0
Total, Gross Unrealized Losses 0 18
Total, Estimated Fair Value 0 1,019,982
Non-U.S. Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Gross Unrealized Losses 0 30,505
Less than 12 months, Estimated Fair Value 0 24,741
12 months or greater, Gross Unrealized Losses 0 0
12 months or greater, Estimated Fair Value 0 0
Total, Gross Unrealized Losses 0 30,505
Total, Estimated Fair Value 0 24,741
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Gross Unrealized Losses 0 5
Less than 12 months, Estimated Fair Value 0 224,989
12 months or greater, Gross Unrealized Losses 0 0
12 months or greater, Estimated Fair Value 0 0
Total, Gross Unrealized Losses 0 5
Total, Estimated Fair Value 0 224,989
Student Loan-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Gross Unrealized Losses 0 0
Less than 12 months, Estimated Fair Value 0 0
12 months or greater, Gross Unrealized Losses 3,332 4,548
12 months or greater, Estimated Fair Value 48,168 46,952
Total, Gross Unrealized Losses 3,332 4,548
Total, Estimated Fair Value $ 48,168 $ 46,952
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Available-For-Sale Securities (Narrative) (Details)
Mar. 31, 2012
Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]
Number of Available-For-Sale Securities, Unrealized Loss Position 12 42
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Derivative Financial Instruments (Summary Of Information About The Fair Values Of Derivative Instruments On Condensed Consolidated Balance Sheets) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value $ 51,958 $ 100,475
Derivative Liability, Fair Value 18,403 5,710
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 51,957 100,235
Derivative Liability, Fair Value 18,342 5,672
Total Derivatives Not Designated As Hedges Member
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 1 240
Derivative Liability, Fair Value 61 38
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 47,498 77,066
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 4,459 23,169
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value 14,564 5,052
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Long-Term Obligations [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value 3,778 620
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 1 240
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value $ 61 $ 38
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Derivative Financial Instruments (Summary Of The Effect Of Foreign Currency Exchange Contracts On Condensed Consolidated Statements Of Income) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Net Gains (Losses) Recognized in OCI (Effective Portion) $ (48,886) $ (127,499)
Net Gains (Losses) Reclassified from Accumulated OCI into Product Sales (Effective Portion) 11,227 9,929
Net Losses Recognized in Interest and Other Income, Net (Ineffective Portion and Amounts Excluded from Effectiveness Testing) (3,212) 995
Net Gains (Losses) Recognized in Interest and Other Income, Net $ (27,174) $ (85,846)
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Derivative Financial Instruments (Narrative) (Details) (USD $)
In Billions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Notional amounts on foreign currency exchange forward contracts outstanding $ 3.9 $ 4.03
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Acquisition of Pharmasset, Inc. Cash Consideration Paid in Acquisition (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Jan. 17, 2012
Business Combinations [Abstract]
Business Combination, Consideration Transferred $ 10,858,372 $ 10,858,372
Accelerated Stock-Based Compensation 193,937
Business Acquisition, Cost of Acquired Entity, Cash Paid $ 11,052,309 $ 11,100,000
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Acquisitions (Fair Values Of The Assets Acquired And Liabilities Assumed) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Jan. 17, 2012
Business Combinations [Abstract]
IPR&D $ 10,720,000
Cash and Cash Equivalents 106,737
Net Assets Acquired (Liabilities Assumed) (43,182)
Total Identifiable Net Tangible Assets 10,783,555
Goodwill 74,817 74,817
Business Combination, Consideration Transferred $ 10,858,372 $ 10,858,372
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Acquisition of Pharmasset, Inc. Accelerated Stock-Based Compensation Expense (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Accelerated Stock-Based Compensation [Line Items]
Accelerated Stock-Based Compensation $ 193,937
Research and Development Expense [Member]
Accelerated Stock-Based Compensation [Line Items]
Accelerated Stock-Based Compensation 100,149
Selling General And Administrative Expenses [Member]
Accelerated Stock-Based Compensation [Line Items]
Accelerated Stock-Based Compensation $ 93,788
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Acquisition of Pharmasset, Inc. Other Transaction Costs (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2011
Business Combinations [Abstract]
Business Acquisition, Cost of Acquired Entity, Transaction Costs $ 9,040 $ 28,461
Bridge Financing Costs Associated with Acquisition 7,333 23,817
Restructuring Charges 8,343 0
Other Costs Associated with Acquisition $ 24,716 $ 52,278 $ 16,400
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Acquisition of Pharmasset, Inc. Other Costs as Classifed by Expense Category (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2011
Other Costs Classified by Expense Category [Line Items]
Other Costs Associated with Acquisition $ 24,716 $ 52,278 $ 16,400
Research and Development Expense [Member]
Other Costs Classified by Expense Category [Line Items]
Other Costs Associated with Acquisition 5,557 0
Selling General And Administrative Expenses [Member]
Other Costs Classified by Expense Category [Line Items]
Other Costs Associated with Acquisition 11,826
Interest Expense [Member]
Other Costs Classified by Expense Category [Line Items]
Other Costs Associated with Acquisition $ 7,333
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Acquisition of Pharmasset, Inc. Table of Pro Forma of Pharmasset (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Business Combinations [Abstract]
Business Acquisition, Pro Forma Revenue $ 2,282,449 $ 1,926,094
Business Acquisition, Pro Forma Net Income (Loss) $ 574,375 $ 397,165
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Acquisition of Pharmasset, Inc. (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2011
Jan. 17, 2012
Jan. 13, 2012
Senior Notes Used in Acquisition[Line Items]
Per share acquisition price $ 137
Total cash paid for acquisition $ 11,052,309,000 $ 11,100,000,000
Acquisition financed with cash on hand 5,200,000,000
Bank Debt Used in Acquisition 2,200,000,000
Outstanding Common Stock Acquired 88.00%
Cash Payments to Outstanding Shareholders 10,380,000,000
Cash Payment to Option Holders 668,300,000
Payments to Outstanding Common Shareholders Treated as Consideration 474,300,000
Accelerated Stock-Based Compensation 193,937,000
IPR&D 10,720,000,000
Present value discount rate 12.00%
Goodwill resulting from acquisition 74,817,000 74,817,000
Other Costs Associated with Acquisition 24,716,000 52,278,000 16,400,000
Senior Unsecured Notes Due In December Two Thousand Fourteen December Two Thousand Sixteen December Two Thousand Twenty One December Two Thousand Forty One [Member]
Senior Notes Used in Acquisition[Line Items]
Debt Instrument, Face Amount $ 3,700,000,000 $ 3,700,000,000
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Inventories (Schedule Of Inventories) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Inventory Disclosure [Abstract]
Raw Materials $ 584,835 $ 697,621
Work in Process 603,428 466,499
Finished Goods 229,770 225,863
Total $ 1,418,033 $ 1,389,983
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Inventories (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Inventory Disclosure [Abstract]
Portion of Inventory Specifically Related to a Drug Compound $ 974.3 $ 995.7
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Intangible Assets (Schedule Of Carrying Amount Of Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite lived intangible assets $ 10,986,200 $ 266,200
Finite lived intangible assets 780,827 796,664
Intangible Assets, Net (Excluding Goodwill) 11,767,027 1,062,864
Goodwill 1,078,919 1,004,102
Total $ 12,845,946 $ 2,066,966
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Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 780,827 $ 796,664
Ranexa [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount 688,400 688,400
Accumulated Amortization 106,104 97,099
Lexiscan [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount 262,800 262,800
Accumulated Amortization 76,159 69,723
Other [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount 24,995 24,995
Accumulated Amortization 13,105 12,709
Total [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount 976,195 976,195
Accumulated Amortization $ 195,368 $ 179,531
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Intangible Assets (Estimated Future Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
2012 (Remaining Nine Months) $ 47,509
2013 64,283
2014 66,735
2015 73,261
2016 100,048
2017 132,786
Total $ 484,622
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Intangible Assets (Schedule Of Changes In The Carrying Amount Of Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Jan. 17, 2012
Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
Balance at December 31, 2011 $ 1,078,919 $ 1,004,102
Goodwill resulting from acquisition 74,817 74,817
Balance at March 31, 2012 $ 1,078,919 $ 1,004,102
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Intangible Assets (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization expense $ 15,800,000 $ 17,400,000
Indefinite-lived intangible assets 10,986,200,000 266,200,000
IPR&D [Member] | Pharmasset [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets 10,720,000,000
IPR&D [Member] | Arresto Biosciences Inc [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets 117,000,000
IPR&D [Member] | Calistoga Pharmaceuticals Inc [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets $ 149,200,000
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Collaborative Arrangements (Details) (USD $)
Mar. 31, 2012
Dec. 31, 2011
Collaborative Arrangements [Abstract]
Total Assets Held by the Joint Venture $ 1,700,000,000 $ 1,620,000,000
Cash and Cash Equivalents Held by Joint Venture 204,700,000 156,900,000
Accounts Receivable Held by Joint Venture 278,100,000 266,500,000
Inventories Held by Joint Venture 1,200,000,000 1,190,000,000
Total Liabilities Held by the Joint Venture 1,560,000,000 1,270,000,000
Acounts Payable Held by Joint Venture 611,700,000 561,100,000
Other Accrued Expenses Held by Joint Venture $ 284,300,000 $ 232,900,000
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Long-Term Obligations (Schedule Of Carrying Amount Of Convertible Senior Notes) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Debt Instrument [Line Items]
Long-term Debt, net $ 8,077,246 $ 7,605,734
Total Debt, Including Long-Term and Short-Term Portions 9,427,246 7,605,734
Long-term Debt, Current Maturities 1,350,000 0
Long-term Debt, Excluding Current Maturities 8,077,246 7,605,734
May 2013 Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, net 614,791 607,036
Debt Instrument, Interest Rate, Stated Percentage 0.63%
May 2014 Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, net 1,188,594 1,181,525
Debt Instrument, Interest Rate, Stated Percentage 1.00%
May 2016 Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, net 1,138,538 1,132,293
Debt Instrument, Interest Rate, Stated Percentage 1.63%
April 2021 Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, net 992,280 992,066
Debt Instrument, Interest Rate, Stated Percentage 4.50%
December 2014 Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, net 749,157 749,078
Debt Instrument, Interest Rate, Stated Percentage 2.40%
December 2016 Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, net 698,921 698,864
Debt Instrument, Interest Rate, Stated Percentage 3.05%
December 2021 Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, net 1,247,212 1,247,138
Debt Instrument, Interest Rate, Stated Percentage 4.40%
December 2041 Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, net 997,753 997,734
Debt Instrument, Interest Rate, Stated Percentage 5.65%
Term Loan Facility due January 2015 [Member]
Debt Instrument [Line Items]
Carrying amount of term loan facility 650,000 0
Credit Facility Due January 2013 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding 400,000 0
Credit Facility Due January 2017 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding $ 750,000 $ 0
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Long-Term Obligations (Narrative) (Details) (USD $)
Mar. 31, 2012
January 2012 Five-Year Revolving Credit Agreement [Member]
Mar. 31, 2012
December 2007 Amended and Restated Credit Agreement [Member]
Dec. 31, 2011
December 2007 Amended and Restated Credit Agreement [Member]
Mar. 31, 2012
January 2012 Short Term Revolving Credit Agreement [Member]
Mar. 31, 2012
January 2012 Term Loan Credit Agreement [Member]
Mar. 31, 2012
January 2012 Swing Line Loan Sub Facility [Member]
Mar. 31, 2012
January 2012 Letter Of Credit Sub Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity $ 1,250,000,000 $ 1,250,000,000 $ 750,000,000 $ 1,000,000,000 $ 30,000,000 $ 25,000,000
Line of Credit Facility, Amount Outstanding 750,000,000 4,000,000 400,000,000 1,000,000,000
Repayments of Debt $ 350,000,000
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Stock-Based Compensation Expenses (Schedule Of Stock-Based Compensation Expenses Included In Consolidated Statements Of Income) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Stock-Based Compensation Expenses included in Total Costs and Expenses $ 242,668 $ 49,470
Income Tax Effect (13,064) (12,856)
Stock-Based Compensation Expense, Net of Tax 229,604 36,614
Cost Of Goods Sold [Member]
Stock-Based Compensation Expenses included in Total Costs and Expenses 2,101 2,644
Research And Development Expenses [Member]
Stock-Based Compensation Expenses included in Total Costs and Expenses 118,622 16,720
Selling General And Administrative Expenses [Member]
Stock-Based Compensation Expenses included in Total Costs and Expenses $ 121,945 $ 30,106
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Stock-Based Compensation Expenses Stock-Based Compensation Expenses (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Accelerated Stock-Based Compensation [Line Items]
Accelerated Stock-Based Compensation $ 193,937
Selling General And Administrative Expenses [Member]
Accelerated Stock-Based Compensation [Line Items]
Accelerated Stock-Based Compensation 93,788
Research and Development Expense [Member]
Accelerated Stock-Based Compensation [Line Items]
Accelerated Stock-Based Compensation $ 100,149
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Stockholders' Equity (Narrative) (Details) (USD $)
Share data in Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Equity [Abstract]
Amount of Stock Retired Under the Current Stock Repurchase Program $ 20,800,000
Number of Shares Retired Under the Current Stock Repurchase Program 0.4
Authorized Common Stock Repurchase Program $ 5,000,000,000
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Segment Information (Product Sales) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Segment Reporting Information [Line Items]
Product Sales $ 2,208,342 $ 1,863,578
Atripla [Member]
Segment Reporting Information [Line Items]
Product Sales 887,596 744,512
Truvada [Member]
Segment Reporting Information [Line Items]
Product Sales 758,263 673,111
Viread [Member]
Segment Reporting Information [Line Items]
Product Sales 191,693 168,395
Complera/Eviplera [Member]
Segment Reporting Information [Line Items]
Product Sales 52,180 0
Hepsera [Member]
Segment Reporting Information [Line Items]
Product Sales 29,297 38,096
Emtriva [Member]
Segment Reporting Information [Line Items]
Product Sales 6,777 6,576
Antiviral Products [Member]
Segment Reporting Information [Line Items]
Product Sales 1,925,806 1,630,690
AmBisome [Member]
Segment Reporting Information [Line Items]
Product Sales 84,764 78,506
Letairis [Member]
Segment Reporting Information [Line Items]
Product Sales 87,288 62,174
Ranexa [Member]
Segment Reporting Information [Line Items]
Product Sales 83,201 68,293
Other Products [Member]
Segment Reporting Information [Line Items]
Product Sales $ 27,283 $ 23,915
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Segment Information (Schedule Of Revenues From Each Customer Who Individually Accounted For 10% Or More Of Total Revenues) (Details)
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Cardinal Health, Inc. [Member]
Segment Reporting Information [Line Items]
Percentage of Total Revenues from Customers 20.00% 17.00%
McKesson Corp. [Member]
Segment Reporting Information [Line Items]
Percentage of Total Revenues from Customers 16.00% 15.00%
AmerisourceBergen Corp. [Member]
Segment Reporting Information [Line Items]
Percentage of Total Revenues from Customers 11.00% 13.00%
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Segment Information (Narrative) (Details)
3 Months Ended
Mar. 31, 2012
Segment Reporting [Abstract]
Major Customers Percentage of Total Revenues, Minimum 10.00%
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Income Taxes (Details)
3 Months Ended
Mar. 31, 2012
Income Tax Disclosure [Abstract]
Income Tax Rate 34.60%
Federal Income Tax Rate 35.00%
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