Pharmaceuticals & Biotech: Earnings per share (ASC 260)

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)	2025	2024	2023
Domestic	8,310	( 876 )	5,467
Foreign	1,486	1,566	1,392
Income before income taxes	9,796	690	6,859

Income tax expense consists of the following:

Year Ended December 31,
(in millions)	2025	2024	2023
Federal:
Current	820	1,495	1,781
Deferred	424	( 1,562 )	( 1,126 )
1,244	( 67 )	655
State:
Current	51	39	80
Deferred	( 190 )	( 386 )	170
( 139 )	( 347 )	250
Foreign:
Current	256	519	381
Deferred	( 75 )	106	( 39 )
181	625	342
Income tax expense	1,286	211	1,247

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) :