Summary
Gilead Sciences, Inc. (GILD) filed an 8-K on July 20, 2006, to report its financial results for the quarter ended June 30, 2006. The primary purpose of this filing was to disseminate the company's earnings press release, which is included as an exhibit. Management highlighted that they utilize non-GAAP financial measures to better understand the comparative operating performance of the company. A key adjustment made in their reporting was the exclusion of $27.7 million in after-tax stock-based compensation expense. This adjustment was a result of the company's adoption of Financial Accounting Standards Board's Statement No. 123 (revised 2004), "Share Based Payment." By excluding these expenses, Gilead aimed to provide investors with a clearer insight into the performance and trends affecting its core business operations.
Key Highlights
- 1Gilead Sciences (GILD) announced its financial results for the second quarter of 2006 via an 8-K filing.
- 2The filing includes the company's earnings press release dated July 20, 2006.
- 3Gilead is using non-GAAP financial measures to supplement its GAAP reporting.
- 4Management asserts that these non-GAAP measures provide a better understanding of the company's comparative operating performance.
- 5A significant adjustment made by Gilead is the exclusion of $27.7 million in after-tax stock-based compensation expense.
- 6This exclusion is due to the adoption of FASB Statement No. 123(R) concerning share-based payments.
- 7The company aims to offer investors insight into core business results by excluding these specific expenses.