XML 21 R12.htm IDEA: XBRL DOCUMENT v3.22.2.2
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES
 9 Months Ended
Sep. 30, 2022
Debt Securities, Available-for-Sale [Abstract]  
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES
Available-for-Sale Debt Securities
The following table summarizes our available-for-sale debt securities:
September 30, 2022December 31, 2021
(in millions)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value 
U.S. treasury securities$456 $— $(7)$448 $408 $— $(1)$407 
U.S. government agencies securities19 — — 19 4 — — 4 
Non-U.S. government securities44 — — 44 50 — — 50 
Certificates of deposit65 — — 65 249 — — 249 
Corporate debt securities1,397 — (30)1,367 1,365 — (2)1,363 
Residential mortgage and asset-backed securities350 — (3)347 425 — (1)424 
Total$2,331 $— $(40)$2,290 $2,501 $— $(4)$2,497 
The aggregate fair value of investments with unrealized losses was $2.1 billion and $2.0 billion as of September 30, 2022 and December 31, 2021, respectively. No allowance for credit losses was recognized for investments with unrealized losses as of September 30, 2022, as we do not currently intend to sell, and it is not more likely than not that we will be required to sell, such investments before recovery of their amortized cost bases. The unrealized losses were primarily driven by broader change in interest rates with no adverse conditions identified that would prevent the issuer from making scheduled principal and interest payments.
The following table summarizes the classification of our available-for-sale debt securities in our Condensed Consolidated Balance Sheets:
(in millions)September 30, 2022December 31, 2021
Cash and cash equivalents$47 $6 
Short-term marketable debt securities961 1,182 
Long-term marketable debt securities1,282 1,309 
Total$2,290 $2,497 
The following table summarizes our available-for-sale debt securities by contractual maturity:
September 30, 2022
(in millions)Amortized CostFair Value
Within one year$1,018 $1,008 
After one year through five years1,298 1,268 
After five years through ten years7 7 
After ten years7 7 
Total$2,331 $2,290 
Equity Securities
Equity Securities Measured at Fair Value
The following table summarizes the classification of our equity securities measured at fair value on a recurring basis on our Condensed Consolidated Balance Sheets. Prepaid and other current assets and Other long-term assets include our equity method investments in Arcus and Galapagos, respectively, for which we elected and applied the fair value option as we believe it best reflects the underlying economics of these investments.
(in millions)September 30, 2022December 31, 2021
Cash and cash equivalents$3,316 $3,661 
Prepaid and other current assets578 885 
Other long-term assets899 1,197 
Total$4,793 $5,743 
Other Equity Securities
Equity method investments and other equity investments without readily determinable fair values were $415 million and $338 million as of September 30, 2022 and December 31, 2021, respectively, and were included in Other long-term assets on our Condensed Consolidated Balance Sheets.
Unrealized Gains and Losses
Net unrealized losses recognized on equity securities were $197 million and $596 million for the three and nine months ended September 30, 2022, and $142 million and $667 million for the three and nine months ended September 30, 2021, respectively, and were included in Other income (expense), net on our Condensed Consolidated Statements of Income.
Related Party Transaction
During the nine months ended September 30, 2022 and 2021, Gilead donated certain equity securities at fair value to the Gilead Foundation, a California nonprofit public benefit corporation (the “Foundation”). The Foundation is a related party as certain of our officers also serve as directors of the Foundation. The donation expense of $85 million and $212 million was recorded within Selling, general and administrative expenses on our Condensed Consolidated Statements of Income during the nine months ended September 30, 2022 and 2021, respectively.