Gilead(GILD) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for Q2 2024 reached $6,954 million, a 5.4$6,599 million in Q2 2023[10] - Product sales amounted to $6,912 million in Q2 2024, compared to$6,564 million in the same period last year, reflecting a 5.3% growth[10] - Net income for Q2 2024 was $1,614 million, up from$1,039 million in Q2 2023, representing a 55.2% increase[10] - Basic earnings per share attributable to Gilead for Q2 2024 were $1.29, compared to$0.84 in Q2 2023[10] - The company reported a total of $4,309 million in total costs and expenses for Q2 2024, down from$4,934 million in Q2 2023[10] - Net income for the three months ended June 30, 2024, was $1,614 million[15] - Net income for the three months ended June 30, 2023, was$1,045 million[16] - Net income attributable to Gilead for the three months ended June 30, 2024, was $1,614 million, compared to$1,045 million for the same period in 2023, representing a 54.4% increase[85] - Diluted earnings per share for the three months ended June 30, 2024, was $1.29, compared to$0.83 for the same period in 2023, marking a 55.4% increase[85] Expenses and Costs - Research and development expenses were $1,351 million in Q2 2024, slightly down from$1,407 million in Q2 2023[10] - The company reported a total of $4,309 million in total costs and expenses for Q2 2024, down from$4,934 million in Q2 2023[10] - Stock-based compensation for the quarter amounted to $209 million[15] - Stock-based compensation for the quarter amounted to$198 million[16] - Restructuring charges incurred were $21 million for the three months and$84 million for the six months ended June 30, 2024, primarily related to workforce reductions[68] Assets and Liabilities - Total current assets decreased to $12,317 million as of June 30, 2024, down from$16,085 million at the end of 2023[8] - Total assets decreased to $53,579 million as of June 30, 2024, compared to$62,125 million at the end of 2023[8] - Total liabilities decreased to $35,298 million as of June 30, 2024, down from$39,376 million at the end of 2023[8] - Cash and cash equivalents decreased to $2,772 million as of June 30, 2024, from$6,085 million at the end of 2023[8] - Total debt, net, was reported at $23,349 million as of June 30, 2024, down from$24,987 million as of December 31, 2023[69] Cash Flow - Net cash provided by operating activities was $3,544 million for the six months ended June 30, 2024, compared to$4,082 million in 2023[18] - Total cash used in investing activities was $2,514 million, up from$1,309 million in the same period of 2023[18] - Total cash used in financing activities increased to $4,314 million from$2,507 million in 2023[18] Acquisitions and Investments - The acquisition of CymaBay Therapeutics, Inc. was completed in March 2024 for total consideration of $3.9 billion, with a charge of$3.9 billion recorded for acquired in-process research and development expenses[53] - The acquisition of XinThera, Inc. was completed in May 2023 for approximately $200 million, with a$170 million charge recorded for acquired in-process research and development expenses[54] - The acquisition of Tmunity Therapeutics, Inc. was completed in February 2023 for approximately $300 million, with a$244 million charge recorded for acquired in-process research and development expenses[55] - In January 2024, the company acquired approximately 15.2 million additional shares of Arcus common stock for $320 million, increasing its ownership to 33$525 million in the second half of 2023, without admitting liability[76] - The company is facing approximately 25,000 active plaintiffs in product liability lawsuits related to Viread, Truvada, Atripla, Complera, and Stribild, with a potential settlement of up to $40 million for eligible plaintiffs[79] - The company is cooperating with a government investigation related to its promotional speaker programs for HIV[80] - The company is involved in qui tam litigation alleging violations of the federal False Claims Act, with potential significant monetary damages if claims are successful[81] - The company does not believe that other legal actions will have a material adverse impact on its consolidated financial position[82] Taxation - The effective tax rate for the three months ended June 30, 2024, was 21.4$438 million, down from $549 million in the same period of 2023[86] - The effective income tax rate for the six months ended June 30, 2024, was (5.1)%, primarily due to non-deductible expenses related to acquisitions[86] - The company is currently under examination by the Internal Revenue Service for tax years 2019 to 2021, which may lead to significant disputes regarding tax deductions[86]