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AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES | 9 Months Ended
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Sep. 30, 2023
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, 2023 |  | December 31, 2022
(in millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
U.S. treasury securities |  | $ | 430 |  |  | $ | — |  |  | $ | (3) |  |  | $ | 428 |  |  | $ | 415 |  |  | $ | — |  |  | $ | (5) |  |  | $ | 410 |
U.S. government agencies securities |  | 153 |  |  | — |  |  | (1) |  |  | 152 |  |  | 36 |  |  | — |  |  | — |  |  | 35 |
Non-U.S. government securities |  | 10 |  |  | — |  |  | — |  |  | 10 |  |  | 34 |  |  | — |  |  | — |  |  | 34 |
Certificates of deposit |  | 97 |  |  | — |  |  | — |  |  | 97 |  |  | 54 |  |  | — |  |  | — |  |  | 54 |
Corporate debt securities |  | 1,351 |  |  | — |  |  | (17) |  |  | 1,334 |  |  | 1,452 |  |  | — |  |  | (26) |  |  | 1,427 |
Residential mortgage and asset-backed securities |  | 362 |  |  | — |  |  | (1) |  |  | 361 |  |  | 335 |  |  | — |  |  | (3) |  |  | 333 |
Total |  | $ | 2,403 |  |  | $ | — |  |  | $ | (21) |  |  | $ | 2,382 |  |  | $ | 2,325 |  |  | $ | 1 |  |  | $ | (34) |  |  | $ | 2,293 |
The following table summarizes information related to available-for-sale debt securities that have been in a continuous unrealized loss position, classified by length of time:
|  | September 30, 2023
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(in millions) |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value
U.S. treasury securities |  | $ | (1) |  |  | $ | 261 |  |  | $ | (1) |  |  | $ | 71 |  |  | $ | (3) |  |  | $ | 332 |
U.S. government agencies securities |  | (1) |  |  | 150 |  |  | — |  |  | 2 |  |  | (1) |  |  | 152 |
Non-U.S. government securities |  | — |  |  | 5 |  |  | — |  |  | 5 |  |  | — |  |  | 10 |
Corporate debt securities |  | (4) |  |  | 549 |  |  | (13) |  |  | 642 |  |  | (17) |  |  | 1,191 |
Residential mortgage and asset-backed securities |  | (1) |  |  | 273 |  |  | — |  |  | 42 |  |  | (1) |  |  | 315 |
Total |  | $ | (7) |  |  | $ | 1,238 |  |  | $ | (14) |  |  | $ | 761 |  |  | $ | (21) |  |  | $ | 2,000 |
|  | December 31, 2022
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(in millions) |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value
U.S. treasury securities |  | $ | (2) |  |  | $ | 174 |  |  | $ | (3) |  |  | $ | 206 |  |  | $ | (5) |  |  | $ | 379 |
U.S. government agencies securities |  | — |  |  | 21 |  |  | — |  |  | — |  |  | — |  |  | 21 |
Non-U.S. government securities |  | — |  |  | 31 |  |  | — |  |  | 3 |  |  | — |  |  | 34 |
Corporate debt securities |  | (17) |  |  | 774 |  |  | (8) |  |  | 439 |  |  | (26) |  |  | 1,213 |
Residential mortgage and asset-backed securities |  | (2) |  |  | 205 |  |  | (1) |  |  | 56 |  |  | (3) |  |  | 261 |
Total |  | $ | (22) |  |  | $ | 1,204 |  |  | $ | (12) |  |  | $ | 705 |  |  | $ | (34) |  |  | $ | 1,908 |
No allowance for credit losses was recognized for investments with unrealized losses as of September 30, 2023, as 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. 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 following table summarizes the classification of our available-for-sale debt securities in our Condensed Consolidated Balance Sheets:
(in millions) |  | September 30, 2023 |  | December 31, 2022
Cash and cash equivalents |  | $ | 67 |  |  | $ | 75 |
Short-term marketable debt securities |  | 1,159 |  |  | 973 |
Long-term marketable debt securities |  | 1,156 |  |  | 1,245 |
Total |  | $ | 2,382 |  |  | $ | 2,293 |
The following table summarizes our available-for-sale debt securities by contractual maturity:
|  | September 30, 2023
(in millions) |  | Amortized Cost |  | Fair Value
Within one year |  | $ | 1,233 |  |  | $ | 1,226 |
After one year through five years |  | 1,161 |  |  | 1,147 |
After five years through ten years |  | 6 |  |  | 6 |
After ten years |  | 3 |  |  | 3 |
Total |  | $ | 2,403 |  |  | $ | 2,382 |
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:
(in millions) |  | September 30, 2023 |  | December 31, 2022
Cash and cash equivalents |  | $ | 4,240 |  |  | $ | 3,831 |
Prepaid and other current assets(1) |  | 1,110 |  |  | 473 |
Other long-term assets(1) |  | 244 |  |  | 943 |
Total |  | $ | 5,594 |  |  | $ | 5,248 |
________________________________ (1) Includes our equity method investments in Arcus and Galapagos, for which we elected and applied the fair value option as we believe it best reflects the underlying economics of these investments. Our investment in Arcus was classified in Prepaid and other current assets as of September 30, 2023 and December 31, 2022. Our investment in Galapagos is subject to certain lock-up provisions until August 2024 and was classified in Prepaid and other current assets and in Other long-term assets as of September 30, 2023 and December 31, 2022, respectively. Other Equity Securities Equity method investments and other equity investments without readily determinable fair values were $337 million and $423 million as of September 30, 2023 and December 31, 2022, respectively, and were excluded from the table above. These amounts were included in Other long-term assets on our Condensed Consolidated Balance Sheets. Unrealized Gains and Losses We recognized $168 million and $356 million net unrealized losses on equity securities for the three and nine months ended September 30, 2023, respectively, and $197 million and $596 million net unrealized losses on equity securities for the three and nine months ended September 30, 2022, respectively, which 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, 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 was recorded within Selling, general and administrative expenses on our Condensed Consolidated Statements of Income during the nine months ended September 30, 2022.

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