XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Revenues | 6 Months Ended
--- | ---
Jun. 30, 2018
Revenue from Contract with Customer [Abstract] |
Revenues | REVENUES On January 1, 2018, we adopted Topic 606 using the modified retrospective method. As a result, we have changed our accounting policies for revenue recognition as detailed below. Product Sales We recognize revenue from product sales when control of the product transfers, generally upon shipment or delivery, to the customer. Upon recognition of revenue from product sales, provisions are made for various forms of variable consideration, which include government and other rebates such as Medicaid reimbursements, customer incentives such as cash discounts for prompt payment, distributor fees and expected returns of expired products, as appropriate. Our payment terms to customers generally range from 30 to 90 days. Royalty, Contract and Other Revenues Royalty revenue is recognized in the period in which the obligation is satisfied and the corresponding sales by our corporate partners occur. Policy Elections and Practical Expedients Taken
• | We account for shipping and handling activities that are performed after a customer has obtained control of a good as fulfillment costs rather than as separate performance obligations; and
• | If we expect, at contract inception, that the period between the transfer of control and corresponding payment from the customer will be one year or less, we do not adjust the amount of consideration for the effects of a significant financing component.
Variable Consideration Rebates and Chargebacks We estimate reductions to our revenues for amounts paid to payers and healthcare providers in the United States, including Medicaid rebates, AIDS Drug Assistance Program rebates and chargebacks, Veterans Administration and Public Health Service chargebacks and other rebates, as well as foreign government rebates. Rebates and chargebacks are based on contractual arrangements or statutory requirements which may vary by product, payer and individual payer plans. Our estimates are based on products sold, historical utilization rates, and as available, pertinent third-party industry information, estimated patient population, known market events or trends, and for our U.S. product sales, channel inventory data obtained from our major U.S. wholesalers in accordance with our inventory management agreements. We also take into consideration, as available, new information regarding changes in programs’ regulations and guidelines that would impact the amount of the actual rebates and/or our expectations regarding future utilization rates for these programs. Government and other chargebacks that are payable to our direct customers are classified as reductions of Accounts receivable on our Condensed Consolidated Balance Sheets. Government and other rebates that are invoiced directly to us are recorded in Accrued government and other rebates on our Condensed Consolidated Balance Sheets. Cash Discounts We estimate cash discounts based on contractual terms, historical utilization rates and our expectations regarding future utilization rates. Distributor Fees Under our inventory management agreements with our significant U.S. wholesalers, we pay the wholesalers a fee primarily for compliance with certain contractually determined covenants such as the maintenance of agreed upon inventory levels. These distributor fees are based on a contractually determined fixed percentage of sales. Product Returns We do not provide our customers with a general right of product return, but typically permit returns if the product is damaged or defective when received by the customer, or in the case of product sold in the United States and certain countries outside the United States, if the product has expired. We will accept returns for product that will expire within six months or that have expired up to one year after their expiration dates. Our estimates for expected returns of expired products are based primarily on an ongoing analysis of our historical return patterns, historical industry information reporting the return rates for similar products and contractual agreements intended to limit the amount of inventory maintained by our wholesalers. Revenue Recognized from Performance Obligations Satisfied in Prior Periods During the three and six months ended June 30, 2018, revenue recognized from performance obligations satisfied in prior years was $222 million and $232 million, respectively, consisting primarily of royalties for licenses of our intellectual property of $131 million and $228 million, respectively, and revised estimates for variable consideration related to sales made in prior years of $91 million and $4 million, respectively. Contract Assets Our contract assets, which consist of unbilled amounts primarily from arrangements where the licensing of intellectual property is the only or predominant performance obligation, totaled $126 million and $132 million at June 30, 2018 and January 1, 2018, respectively. Disaggregation of Revenues The following table disaggregates our product sales by product and geographic region and disaggregates our royalty, contract and other revenues by geographic region for the three and six months ended June 30, 2018 and 2017. The information for the three and six months ended June 30, 2017 has not been adjusted in accordance with our modified retrospective adoption of Topic 606 and continues to be reported in accordance with our historical accounting under Topic 605.
|  | Three Months Ended June 30, 2018 |  | Three Months Ended June 30, 2017
(In millions) |  | U.S. |  | Europe |  | Other International |  | Total |  | U.S. |  | Europe |  | Other International |  | Total
Product sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Atripla |  | $ | 274 |  |  | $ | 39 |  |  | $ | 36 |  |  | $ | 349 |  |  | $ | 334 |  |  | $ | 86 |  |  | $ | 55 |  |  | $ | 475 |
Biktarvy |  | 183 |  |  | 2 |  |  | — |  |  | 185 |  |  | — |  |  | — |  |  | — |  |  | — |
Complera/Eviplera |  | 82 |  |  | 103 |  |  | 14 |  |  | 199 |  |  | 112 |  |  | 127 |  |  | 15 |  |  | 254 |
Descovy |  | 311 |  |  | 78 |  |  | 14 |  |  | 403 |  |  | 232 |  |  | 47 |  |  | 7 |  |  | 286 |
Genvoya |  | 904 |  |  | 207 |  |  | 49 |  |  | 1,160 |  |  | 710 |  |  | 125 |  |  | 22 |  |  | 857 |
Odefsey |  | 303 |  |  | 77 |  |  | 5 |  |  | 385 |  |  | 230 |  |  | 27 |  |  | 1 |  |  | 258 |
Stribild |  | 144 |  |  | 34 |  |  | 9 |  |  | 187 |  |  | 225 |  |  | 54 |  |  | 14 |  |  | 293 |
Truvada |  | 649 |  |  | 86 |  |  | 30 |  |  | 765 |  |  | 567 |  |  | 184 |  |  | 61 |  |  | 812 |
Other HIV(1) |  | 11 |  |  | 3 |  |  | 5 |  |  | 19 |  |  | 7 |  |  | 2 |  |  | 2 |  |  | 11 |
Revenue share - Symtuza(2) |  | — |  |  | 13 |  |  | — |  |  | 13 |  |  | — |  |  | — |  |  | — |  |  | — |
AmBisome |  | 14 |  |  | 55 |  |  | 34 |  |  | 103 |  |  | 8 |  |  | 50 |  |  | 34 |  |  | 92 |
Epclusa |  | 239 |  |  | 168 |  |  | 93 |  |  | 500 |  |  | 864 |  |  | 248 |  |  | 59 |  |  | 1,171 |
Harvoni |  | 230 |  |  | 22 |  |  | 79 |  |  | 331 |  |  | 984 |  |  | 230 |  |  | 168 |  |  | 1,382 |
Letairis |  | 244 |  |  | — |  |  | — |  |  | 244 |  |  | 230 |  |  | — |  |  | — |  |  | 230 |
Ranexa |  | 208 |  |  | — |  |  | — |  |  | 208 |  |  | 200 |  |  | — |  |  | — |  |  | 200 |
Vemlidy |  | 59 |  |  | 3 |  |  | 14 |  |  | 76 |  |  | 21 |  |  | 1 |  |  | — |  |  | 22 |
Viread |  | 16 |  |  | 32 |  |  | 34 |  |  | 82 |  |  | 141 |  |  | 76 |  |  | 83 |  |  | 300 |
Vosevi |  | 86 |  |  | 20 |  |  | 3 |  |  | 109 |  |  | — |  |  | — |  |  | — |  |  | — |
Yescarta |  | 68 |  |  | — |  |  | — |  |  | 68 |  |  | — |  |  | — |  |  | — |  |  | — |
Zydelig |  | 17 |  |  | 22 |  |  | — |  |  | 39 |  |  | 19 |  |  | 16 |  |  | — |  |  | 35 |
Other(3) |  | 27 |  |  | 41 |  |  | 47 |  |  | 115 |  |  | 98 |  |  | 126 |  |  | 144 |  |  | 368 |
Total product sales |  | 4,069 |  |  | 1,005 |  |  | 466 |  |  | 5,540 |  |  | 4,982 |  |  | 1,399 |  |  | 665 |  |  | 7,046 |
Royalty, contract and other revenues |  | 14 |  |  | 79 |  |  | 15 |  |  | 108 |  |  | 22 |  |  | 59 |  |  | 14 |  |  | 95 |
Total revenues |  | $ | 4,083 |  |  | $ | 1,084 |  |  | $ | 481 |  |  | $ | 5,648 |  |  | $ | 5,004 |  |  | $ | 1,458 |  |  | $ | 679 |  |  | $ | 7,141 |
|  | Six Months Ended June 30, 2018 |  | Six Months Ended June 30, 2017
(In millions) |  | U.S. |  | Europe |  | Other International |  | Total |  | U.S. |  | Europe |  | Other International |  | Total
Product Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Atripla |  | $ | 502 |  |  | $ | 90 |  |  | $ | 71 |  |  | $ | 663 |  |  | $ | 650 |  |  | $ | 180 |  |  | $ | 97 |  |  | $ | 927 |
Biktarvy |  | 218 |  |  | 2 |  |  | — |  |  | 220 |  |  | — |  |  | — |  |  | — |  |  | — |
Complera/Eviplera |  | 149 |  |  | 212 |  |  | 28 |  |  | 389 |  |  | 224 |  |  | 252 |  |  | 31 |  |  | 507 |
Descovy |  | 585 |  |  | 153 |  |  | 26 |  |  | 764 |  |  | 441 |  |  | 84 |  |  | 12 |  |  | 537 |
Genvoya |  | 1,757 |  |  | 393 |  |  | 92 |  |  | 2,242 |  |  | 1,379 |  |  | 212 |  |  | 35 |  |  | 1,626 |
Odefsey |  | 582 |  |  | 135 |  |  | 10 |  |  | 727 |  |  | 433 |  |  | 50 |  |  | 2 |  |  | 485 |
Stribild |  | 277 |  |  | 63 |  |  | 21 |  |  | 361 |  |  | 451 |  |  | 121 |  |  | 30 |  |  | 602 |
Truvada |  | 1,156 |  |  | 183 |  |  | 78 |  |  | 1,417 |  |  | 1,031 |  |  | 373 |  |  | 122 |  |  | 1,526 |
Other HIV(1) |  | 20 |  |  | 4 |  |  | 8 |  |  | 32 |  |  | 21 |  |  | 3 |  |  | 2 |  |  | 26 |
Revenue share - Symtuza(2) |  | — |  |  | 20 |  |  | — |  |  | 20 |  |  | — |  |  | — |  |  | — |  |  | — |
AmBisome |  | 31 |  |  | 111 |  |  | 68 |  |  | 210 |  |  | 17 |  |  | 102 |  |  | 65 |  |  | 184 |
Epclusa |  | 508 |  |  | 366 |  |  | 162 |  |  | 1,036 |  |  | 1,599 |  |  | 386 |  |  | 78 |  |  | 2,063 |
Harvoni |  | 464 |  |  | 78 |  |  | 137 |  |  | 679 |  |  | 1,910 |  |  | 473 |  |  | 370 |  |  | 2,753 |
Letairis |  | 448 |  |  | — |  |  | — |  |  | 448 |  |  | 441 |  |  | — |  |  | — |  |  | 441 |
Ranexa |  | 403 |  |  | — |  |  | — |  |  | 403 |  |  | 353 |  |  | — |  |  | — |  |  | 353 |
Vemlidy |  | 106 |  |  | 6 |  |  | 22 |  |  | 134 |  |  | 32 |  |  | 1 |  |  | — |  |  | 33 |
Viread |  | 23 |  |  | 62 |  |  | 94 |  |  | 179 |  |  | 258 |  |  | 147 |  |  | 155 |  |  | 560 |
Vosevi |  | 172 |  |  | 36 |  |  | 8 |  |  | 216 |  |  | — |  |  | — |  |  | — |  |  | — |
Yescarta |  | 108 |  |  | — |  |  | — |  |  | 108 |  |  | — |  |  | — |  |  | — |  |  | — |
Zydelig |  | 31 |  |  | 40 |  |  | 1 |  |  | 72 |  |  | 34 |  |  | 35 |  |  | 1 |  |  | 70 |
Other(3) |  | 56 |  |  | 56 |  |  | 109 |  |  | 221 |  |  | 158 |  |  | 246 |  |  | 326 |  |  | 730 |
Total product sales |  | 7,596 |  |  | 2,010 |  |  | 935 |  |  | 10,541 |  |  | 9,432 |  |  | 2,665 |  |  | 1,326 |  |  | 13,423 |
Royalty, contract and other revenues |  | 34 |  |  | 131 |  |  | 30 |  |  | 195 |  |  | 41 |  |  | 152 |  |  | 30 |  |  | 223 |
Total revenues |  | $ | 7,630 |  |  | $ | 2,141 |  |  | $ | 965 |  |  | $ | 10,736 |  |  | $ | 9,473 |  |  | $ | 2,817 |  |  | $ | 1,356 |  |  | $ | 13,646 |
____________________ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) Includes Emtriva and Tybost
(2) Represents Gilead’s revenue from cobicistat (C), emtricitabine (FTC) and tenofovir alafenamide (TAF) in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen
(3) Includes Cayston, Hepsera and Sovaldi

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration