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Pharmaceuticals & Biotech: Earnings per share (ASC 260)

Note: ASC 260 disclosures, including securities excluded from diluted EPS because they were antidilutive.
GILEAD SCIENCES, INC. (GILD) · Form 10-K for period ended 2025-12-31 · filed 2026-02-24 · Section: 14. EARNINGS PER SHARE

Potential shares of common stock excluded from the computation of Diluted earnings per share attributable to Gilead because their effect would have been antidilutive were 2 million, 5 million and 4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

15. INCOME TAXES

Income before income taxes consists of the following:

Year Ended December 31,
(in millions)202520242023
Domestic8,310( 876 )5,467
Foreign1,4861,5661,392
Income before income taxes9,7966906,859

Income tax expense consists of the following:

Year Ended December 31,
(in millions)202520242023
Federal:
Current8201,4951,781
Deferred424( 1,562 )( 1,126 )
1,244( 67 )655
State:
Current513980
Deferred( 190 )( 386 )170
( 139 )( 347 )250
Foreign:
Current256519381
Deferred( 75 )106( 39 )
181625342
Income tax expense1,2862111,247

In July 2025, the U.S. enacted tax reform legislation through the One Big Beautiful Bill (“OBBB”) Act. Included in this legislation are provisions that restored immediate expensing of domestic R&D expenditures and certain capital expenditures and modified the U.S. taxation of profits derived from foreign operations. The OBBB Act had no material impact to our income tax expense for 2025.

The reconciliation between the federal statutory tax rate applied to Income before income taxes and our effective tax rate is summarized as follows (1) :

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