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Press Release: Gilead Sciences Announces Fourth -6-

· 02/04/2021 16:01
GILEAD SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ---------------- -------------------- (in millions, except per share amounts) 2020 2019 2020 2019 ------------------- ------- ------- -------- ---------- Revenues: Product sales $7,328 $5,796 $24,355 $22,119 Royalty, contract and other revenues 93 83 334 330 ------ ------ ------- ------- Total revenues 7,421 5,879 24,689 22,449 ------ ------ ------- ------- Costs and expenses: Cost of goods sold 1,398 1,683 4,572 4,675 Research and development expenses 1,578 1,099 5,039 4,055 Acquired in-process research and development expenses 64 800 5,856 5,051 Selling, general and administrative expenses 1,730 1,204 5,151 4,381 ------ ------ ------- ------- Total costs and expenses 4,770 4,786 20,618 18,162 ------ ------ ------- ------- Income from operations 2,651 1,093 4,071 4,287 Interest expense (267) (243) (984) (995) Other income (expense), net (570) 1,051 (1,418) 1,868 ------ ------ ------- ------- Income before income taxes 1,814 1,901 1,669 5,160 Income tax expense (benefit) 270 (788) 1,580 (204) ------ ------ ------- ------- Net income 1,544 2,689 89 5,364 Net loss attributable to noncontrolling interest (7) (7) (34) (22) ------ ------ ------- ------- Net income attributable to Gilead $1,551 $2,696 $ 123 $ 5,386 ===== ===== ====== ====== Net income per share attributable to Gilead common stockholders - basic $ 1.24 $ 2.13 $ 0.10 $ 4.24 Shares used in per share calculation - basic 1,255 1,266 1,257 1,270 Net income per share attributable to Gilead common stockholders - diluted $ 1.23 $ 2.12 $ 0.10 $ 4.22 Shares used in per share calculation - diluted 1,259 1,273 1,263 1,277 Cash dividends declared per share $ 0.68 $ 0.63 $ 2.72 $ 2.52 GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION(1) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ------------------------ ------------------------- (in millions, except percentages and per share amounts) 2020 2019 2020 2019 ------------------------ ----------- ----------- ------------ ----------- Cost of goods sold reconciliation: GAAP cost of goods sold $1,398 $1,683 $ 4,572 $4,675 Acquisition-related -- amortization of acquired intangibles and inventory step-up charges (417) (266) (1,215) (1,088) Acquisition-related -- other costs(4) (63) -- (63) -- ------ ------ ------- ------ Non-GAAP cost of goods sold $ 918 $1,417 $ 3,294 $3,587 ===== ===== ====== ===== Product gross margin reconciliation: GAAP product gross margin 80.9 % 71.0 % 81.2 % 78.9 % Acquisition-related -- amortization of acquired intangibles and inventory step-up charges 5.7 % 4.6 % 5.0 % 4.9 % Acquisition-related -- other costs(4) 0.9 % -- % 0.3 % -- % ------ ------ ------- ------ Non-GAAP product gross margin(6) 87.5 % 75.6 % 86.5 % 83.8 % ====== ====== ======= ====== Research and development expenses reconciliation: GAAP research and development expenses(2) $1,578 $1,099 $ 5,039 $4,055 Acquisition-related -- other costs(4) (66) -- (182) -- Other(5) -- 4 -- 4 ------ ------ ------- ------ Non-GAAP research and development expenses $1,512 $1,103 $ 4,857 $4,059 ===== ===== ====== ===== Acquired IPR&D expenses reconciliation(2) : GAAP acquired IPR&D expenses $ 64 $ 800 $ 5,856 $5,051 Acquired IPR&D expenses(2) (64) (800) (5,856) (5,051) ------ ------ ------- ------ Non-GAAP acquired IPR&D expenses $ -- $ -- $ -- $ -- ===== ===== ====== ===== Selling, general and administrative expenses reconciliation: GAAP selling, general and administrative expenses $1,730 $1,204 $ 5,151 $4,381 Acquisition-related -- other costs(4) (230) -- (319) -- Other(5) (1) -- 2 (6) ------ ------ ------- ------ Non-GAAP selling, general and administrative expenses $1,499 $1,204 $ 4,834 $4,375 ===== ===== ====== ===== Operating margin reconciliation: GAAP operating margin 35.7 % 18.6 % 16.5 % 19.1 % Acquired IPR&D expenses(2) 0.9 % 13.6 % 23.7 % 22.5 % Acquisition-related -- amortization of acquired intangibles and inventory step-up charges 5.6 % 4.5 % 4.9 % 4.8 % Acquisition-related -- other costs(4) 4.8 % -- % 2.3 % -- % Other(5) -- % (0.1) % -- % -- % ------ ------ ------- ------ Non-GAAP operating margin(6) 47.1 % 36.7 % 47.4 % 46.6 % ====== ====== ======= ====== Other income (expense), net reconciliation: GAAP other income (expense), net $ (570) $1,051 $(1,418) $1,868 Losses (gains) from equity securities, net 616 (929) 1,667 (1,241) ------ ------ ------- ------ Non-GAAP other income (expense), net $ 46 $ 122 $ 249 $ 627 ===== ===== ====== ===== Effective tax rate reconciliation: GAAP effective tax rate 14.9 % (41.5) % 94.7 % (4.0) % Income tax effect of above non-GAAP adjustments and discrete and related tax charges (benefits) 0.9 % 73.0 % (76.1) % 26.4 % ------ ------ ------- ------ Non-GAAP effective tax rate(6) 15.8 % 31.5 % 18.6 % 22.4 % ====== ====== ======= ====== GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION(1) - (Continued) (unaudited)

estimates. Further, results for the quarter and the year ended December 31, 2020 are not necessarily indicative of operating results for any future periods. Gilead directs readers to its press releases, Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and other subsequent disclosure documents filed with the SEC. Gilead claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements.

All forward-looking statements are based on information currently available to Gilead and Gilead assumes no obligation to update or supplement any such forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements.

Gilead owns or has rights to various trademarks, copyrights and trade names used in its business, including the following: GILEAD(R) , GILEAD SCIENCES(R) , AMBISOME(R) , ATRIPLA(R) , BIKTARVY(R) , CAYSTON(R) , COMPLERA(R) , DESCOVY(R) , DESCOVY FOR PREP(R) , EMTRIVA(R) , EPCLUSA(R) , EVIPLERA(R) , GENVOYA(R) , HARVONI(R) , HEPSERA(R) , JYSELECA(R) , LETAIRIS(R) , ODEFSEY(R) , RANEXA(R) , SOVALDI(R) , STRIBILD(R) , TECARTUS(TM) , TRODELVY(R) , TRUVADA(R) , TRUVADA FOR PREP(R) , TYBOST(R) , VEKLURY(R) , VEMLIDY(R) , VIREAD(R) , VOSEVI(R) , YESCARTA(R) and ZYDELIG(R) .

This report also refers to trademarks, service marks and trade names of other companies.

For more information on Gilead Sciences, Inc., please visit www.gilead.com or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235).

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February 04, 2021 16:01 ET (21:01 GMT)