Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 26, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BIOGEN INC. | ||
Entity Central Index Key | 875,045 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 211,562,686 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 57,220,188,450 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Product, net | $ 10,354.7 | $ 9,817.9 | $ 9,188.5 |
Revenues from anti-CD20 therapeutic programs | 1,559.2 | 1,314.5 | 1,339.2 |
Other | 360 | 316.4 | 236.1 |
Total revenues | 12,273.9 | 11,448.8 | 10,763.8 |
Cost and expenses: | |||
Cost of sales, excluding amortization of acquired intangible assets | (1,630) | (1,478.7) | (1,240.4) |
Research and development | (2,253.6) | (1,973.3) | (2,012.8) |
Selling, general and administrative | (1,935.5) | (1,947.9) | (2,113.1) |
Amortization of acquired intangible assets | (814.7) | (385.6) | (382.6) |
Acquired in-process research and development | 120 | 0 | 0 |
Collaboration profit (loss) sharing | 112.3 | 10.2 | 0 |
Loss (gain) on fair value remeasurement of contingent consideration | 62.7 | 14.8 | 30.5 |
Restructuring charges | (0.9) | (33.1) | (93.4) |
TECFIDERA litigation settlement charge | 0 | 454.8 | 0 |
Total cost and expenses | 6,929.7 | 6,298.4 | 5,872.8 |
Income from operations | 5,344.2 | 5,150.4 | 4,891 |
Other income (expense), net | (215.4) | (217.4) | (123.7) |
Income before income tax expense and equity in loss of investee, net of tax | 5,128.8 | 4,933 | 4,767.3 |
Income tax expense | 2,458.7 | 1,237.3 | 1,161.6 |
Equity in loss of investee, net of tax | 0 | 0 | 12.5 |
Net income | 2,670.1 | 3,695.7 | 3,593.2 |
Net income (loss) attributable to noncontrolling interests, net of tax | 131 | (7.1) | 46.2 |
Net income attributable to Biogen Inc. | $ 2,539.1 | $ 3,702.8 | $ 3,547 |
Net income per share: | |||
Basic earnings per share attributable to Biogen Inc. | $ 11.94 | $ 16.96 | $ 15.38 |
Diluted earnings per share attributable to Biogen Inc. | $ 11.92 | $ 16.93 | $ 15.34 |
Weighted-average shares used in calculating: | |||
Basic earnings per share attributable to Biogen Inc. | 212.6 | 218.4 | 230.7 |
Diluted earnings per share attributable to Biogen Inc. | 213 | 218.8 | 231.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Biogen Inc. | $ 2,539.1 | $ 3,702.8 | $ 3,547 |
Other comprehensive income: | |||
Unrealized gains (losses) recognized during the period, net of tax | (3.5) | (10.6) | (1.7) |
Less: reclassification adjustment for (gains) losses included in net income, net of tax | 12.7 | 0.6 | 1.3 |
Unrealized gains (losses) on securities available for sale, net of tax | 9.2 | (10) | (0.4) |
Unrealized gains (losses) recognized during the period, net of tax | (193.8) | 51.6 | 110.8 |
Less: reclassification adjustment for (gains) losses included in net income, net of tax | 31.5 | (4) | (172.3) |
Unrealized gains (losses) on cash flow hedges, net of tax | (162.3) | 47.6 | (61.5) |
Unrealized gains (losses) on pension benefit obligation, net of tax | (4.1) | 5.1 | (6.2) |
Currency translation adjustment | 158.7 | (138.6) | (96.4) |
Total other comprehensive income (loss), net of tax | 1.5 | (95.9) | (164.5) |
Comprehensive income attributable to Biogen Inc. | 2,540.6 | 3,606.9 | 3,382.5 |
Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 131 | (7.1) | 46.2 |
Comprehensive income | $ 2,671.6 | $ 3,599.8 | $ 3,428.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,573.8 | $ 2,326.5 |
Marketable securities | 2,115.2 | 2,568.6 |
Accounts receivable, net | 1,787 | 1,441.6 |
Due from anti-CD20 therapeutic programs | 532.6 | 300.6 |
Inventory | 902.7 | 1,001.6 |
Other current assets | 962 | 1,093.3 |
Total current assets | 7,873.3 | 8,732.2 |
Marketable securities | 3,057.3 | 2,829.4 |
Property, plant and equipment, net | 3,182.4 | 2,501.8 |
Intangible assets, net | 3,879.6 | 3,808.3 |
Goodwill | 4,632.5 | 3,669.3 |
Investments and other assets | 1,027.5 | 1,335.8 |
Total assets | 23,652.6 | 22,876.8 |
Current liabilities: | ||
Current portion of notes payable and other financing arrangements | 3.2 | 4.7 |
Taxes payable | 68.2 | 231.9 |
Accounts payable | 395.5 | 279.8 |
Accrued expenses and other | 2,901.3 | 2,903.5 |
Total current liabilities | 3,368.2 | 3,419.9 |
Notes payable and other financing arrangements | 5,935 | 6,512.7 |
Deferred tax liability | 122.6 | 93.1 |
Other long-term liabilities | 1,628.7 | 722.5 |
Total liabilities | 11,054.5 | 10,748.2 |
Commitments and contingencies | ||
Biogen Idec Inc. shareholders' equity | ||
Preferred stock, par value $0.001 per share | 0 | 0 |
Common stock, par value $0.0005 per share | 0.1 | 0.1 |
Additional paid-in capital | 97.8 | 0 |
Accumulated other comprehensive loss | (318.4) | (319.9) |
Retained earnings | 15,810.4 | 15,071.6 |
Treasury stock, at cost; 23.8 million and 22.6 million shares, respectively | (2,977.1) | (2,611.7) |
Total Biogen Inc. shareholders’ equity | 12,612.8 | 12,140.1 |
Noncontrolling interests | (14.7) | (11.5) |
Total equity | 12,598.1 | 12,128.6 |
Total liabilities and equity | $ 23,652.6 | $ 22,876.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Common stock, par value | $ 0.0005 | $ 0.0005 |
Treasury stock at cost, shares | 23.8 | 22.6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 2,670.1 | $ 3,695.7 | $ 3,593.2 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 1,081 | 682.7 | 600.4 |
Acquired in-process research and development | 120 | 0 | 0 |
Share-based compensation | 128 | 154.8 | 161.4 |
Deferred income taxes | 91.7 | (175) | (145.6) |
Loss (gain) on fair value remeasurement of contingent consideration | 62.7 | 14.8 | 30.5 |
Other | 162.1 | 89 | 129.9 |
Changes in operating assets and liabilities, net: | |||
Accounts receivable | (435.6) | (241.4) | 29 |
Due from anti-CD20 therapeutic programs | (232) | 13.9 | (31.1) |
Inventory | (94.5) | (165.6) | (174.4) |
Other assets | (76.6) | 59.1 | (127) |
Accrued expenses and other current liabilities | (227.4) | 622.3 | 199.3 |
Income tax assets and liabilities | 1,303.9 | (232.6) | (429.4) |
Other liabilities | (2.4) | 69.5 | 83.2 |
Net cash flows provided by operating activities | 4,551 | 4,587.2 | 3,919.4 |
Cash flows from investing activities: | |||
Proceeds from sales and maturities of marketable securities | 5,565.9 | 7,378.9 | 4,063 |
Purchases of marketable securities | (5,355.2) | (7,913.2) | (6,864.9) |
Contingent consideration related to Fumapharm AG acquisition | (1,200) | (1,200) | (850) |
Payments to Acquire in Process Research and Development | (120) | 0 | 0 |
Acquisitions of businesses, net of cash acquired | 0 | 0 | (198.8) |
Purchases of property, plant and equipment | (867.4) | (616.1) | (643) |
Acquisitions of intangible assets | (975.4) | (111.6) | (15.4) |
Other | (11) | (22.8) | (44.5) |
Net cash flows used in investing activities | (2,963.1) | (2,484.8) | (4,553.6) |
Cash flows from financing activities: | |||
Purchases of treasury stock | (1,365.4) | (1,000) | (5,000) |
Payments related to issuance of stock for share-based compensation arrangements, net | (5.3) | (8.5) | (70.9) |
Net distribution to noncontrolling interest | (134.1) | 0 | (56.1) |
Proceeds from borrowings | 0 | 0 | 5,930.5 |
Repayments of borrowings | (560.9) | (2.7) | (2.1) |
Net cash contribution to Bioverativ, Inc. | (302.7) | 0 | 0 |
Contingent consideration payments | (3) | (38.6) | (13.1) |
Other | (8.6) | (2.8) | (5.2) |
Net cash flows provided by (used in) financing activities | (2,380) | (1,052.6) | 783.1 |
Net increase in cash and cash equivalents | (792.1) | 1,049.8 | 148.9 |
Effect of exchange rate changes on cash and cash equivalents | 39.4 | (31.3) | (45.8) |
Cash and cash equivalents, beginning of the year | 2,326.5 | 1,308 | 1,204.9 |
Cash and cash equivalents, end of the year | $ 1,573.8 | $ 2,326.5 | $ 1,308 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock | Noncontrolling interests | Parent | 2016 Share Repurchase Program | 2016 Share Repurchase ProgramTreasury stock | 2011 Share Repurchase Program | 2011 Share Repurchase ProgramTreasury stock |
Beginning Balance at Dec. 31, 2014 | $ (10,814) | $ 0 | $ (0.1) | $ (4,196.2) | $ 59.5 | $ (9,283.9) | $ (2,611.7) | ||||||
Beginning Balance at Dec. 31, 2014 | 10,809 | ||||||||||||
Beginning Balance at Dec. 31, 2014 | $ 5 | ||||||||||||
Beginning Balance, shares at Dec. 31, 2014 | 0 | (257,100,000) | (22,600,000) | ||||||||||
Net income attributable to Biogen Inc. | 3,547 | 3,547 | |||||||||||
Net income (loss) attributable to noncontrolling interests, net of tax | 46.2 | 46.2 | |||||||||||
Net income | 3,593.2 | ||||||||||||
Other comprehensive income (loss), net of tax | (164.5) | (164.5) | |||||||||||
Other comprehensive income (loss), net of tax | (164.5) | 0 | |||||||||||
Acquisition of noncontrolling interest | (10.9) | (10.9) | $ 0 | ||||||||||
Distribution to noncontrolling interest | (60) | (60) | 0 | ||||||||||
Repurchase of common stock, at cost | $ (5,000) | $ 5,000 | |||||||||||
Repurchase of common stock, at cost, shares | (16,800,000) | (16,800,000) | |||||||||||
Retirement of common stock pursuant to the 2016 Share Repurchase Program, at cost | $ 0 | 4,377.5 | 622.5 | $ 5,000 | |||||||||
Retirement of common stock pursuant to the 2015 Share Repurchase Program, at cost, shares | 16,800,000 | 16,800,000 | |||||||||||
Issuance of common stock under stock option and stock purchase plans | 54.2 | $ 0 | 54.2 | ||||||||||
Issuance of common stock under stock option and stock purchase plans, shares | 300,000 | ||||||||||||
Issuance of common stock under stock award plan | (125.1) | $ 0 | (125.1) | ||||||||||
Issuance of common stock under stock award plan | 600,000 | ||||||||||||
Compensation related to share-based payments | 183.2 | 183.2 | |||||||||||
Tax benefit from share-based payments | (69) | (69) | |||||||||||
Ending Balance at Dec. 31, 2015 | (9,374.9) | $ 0 | $ (0.1) | 0 | (224) | (12,208.4) | $ (2,611.7) | ||||||
Ending Balance at Dec. 31, 2015 | 9,372.8 | ||||||||||||
Ending Balance at Dec. 31, 2015 | 2.1 | ||||||||||||
Ending Balance, shares at Dec. 31, 2015 | 0 | (241,200,000) | (22,600,000) | ||||||||||
Net income attributable to Biogen Inc. | 3,702.8 | 3,702.8 | |||||||||||
Net income (loss) attributable to noncontrolling interests, net of tax | (7.1) | (7.1) | |||||||||||
Net income | 3,695.7 | ||||||||||||
Other comprehensive income (loss), net of tax | (95.9) | (95.9) | |||||||||||
Other comprehensive income (loss), net of tax | 95.8 | (0.1) | |||||||||||
Noncontrolling interest, increase (decrease) other | 1.5 | 1.5 | 0 | ||||||||||
Acquisition of noncontrolling interest | (0.6) | (0.6) | 0 | ||||||||||
Deconsolidation of noncontrolling interest | (7.5) | (7.5) | 0 | ||||||||||
Repurchase of common stock, at cost | (1,000) | $ (1,000) | |||||||||||
Repurchase of common stock, at cost, shares | (3,300,000) | (3,300,000) | |||||||||||
Retirement of common stock pursuant to the 2016 Share Repurchase Program, at cost | 0 | $ 0 | 164.9 | 835.1 | $ 1,000 | ||||||||
Retirement of common stock pursuant to the 2015 Share Repurchase Program, at cost, shares | 3,300,000 | 3,300,000 | |||||||||||
Issuance of common stock under stock option and stock purchase plans | 43.7 | $ 0 | 43.7 | ||||||||||
Issuance of common stock under stock option and stock purchase plans, shares | 200,000 | ||||||||||||
Issuance of common stock under stock award plan | (52.1) | $ 0 | (47.6) | (4.5) | |||||||||
Issuance of common stock under stock award plan | 400,000 | ||||||||||||
Compensation related to share-based payments | 169.4 | 169.4 | |||||||||||
Tax benefit from share-based payments | (0.6) | 0.6 | |||||||||||
Ending Balance at Dec. 31, 2016 | (12,128.6) | $ 0 | $ (0.1) | 0 | (319.9) | (15,071.6) | $ (2,611.7) | ||||||
Ending Balance at Dec. 31, 2016 | 12,140.1 | ||||||||||||
Ending Balance at Dec. 31, 2016 | (11.5) | (11.5) | |||||||||||
Ending Balance, shares at Dec. 31, 2016 | 0 | (238,500,000) | (22,600,000) | ||||||||||
Net income attributable to Biogen Inc. | 2,539.1 | 2,539.1 | |||||||||||
Net income (loss) attributable to noncontrolling interests, net of tax | 131 | 131 | |||||||||||
Net income | 2,670.1 | ||||||||||||
Other comprehensive income (loss), net of tax | 1.5 | 1.5 | |||||||||||
Other comprehensive income (loss), net of tax | 1.5 | 0 | |||||||||||
Noncontrolling interest, increase (decrease) other | 15.8 | 15.8 | 0 | ||||||||||
Distribution to noncontrolling interest | (150) | (150) | $ 0 | ||||||||||
Repurchase of common stock, at cost | $ (1,000) | $ (1,000) | $ (365.4) | $ (365.4) | |||||||||
Repurchase of common stock, at cost, shares | (3,700,000) | (3,700,000) | (1,200,000) | (1,200,000) | |||||||||
Retirement of common stock pursuant to the 2016 Share Repurchase Program, at cost | 0 | $ 0 | 36 | 964 | $ 1,000 | ||||||||
Retirement of common stock pursuant to the 2015 Share Repurchase Program, at cost, shares | 3,700,000 | 3,700,000 | |||||||||||
Issuance of common stock under stock option and stock purchase plans | 40.5 | $ 0 | 40.5 | 0 | |||||||||
Issuance of common stock under stock option and stock purchase plans, shares | 200,000 | ||||||||||||
Issuance of common stock under stock award plan | $ (45.8) | $ 0 | (44.8) | (1) | |||||||||
Issuance of common stock under stock award plan | 14,000 | 300,000 | |||||||||||
Compensation related to share-based payments | $ 138.1 | 138.1 | |||||||||||
Hemophilia spin-off adjustment | (852.8) | (852.8) | |||||||||||
Tax benefit | 17.5 | 17.5 | |||||||||||
Ending Balance at Dec. 31, 2017 | (12,598.1) | $ 0 | $ (0.1) | $ (97.8) | $ (318.4) | $ (15,810.4) | $ (2,977.1) | ||||||
Ending Balance at Dec. 31, 2017 | 12,612.8 | ||||||||||||
Ending Balance at Dec. 31, 2017 | $ (14.7) | $ (14.7) | |||||||||||
Ending Balance, shares at Dec. 31, 2017 | 0 | (235,300,000) | (23,800,000) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Overview Biogen is a global biopharmaceutical company focused on discovering, developing and delivering worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases, including in our core growth areas of multiple sclerosis (MS) and neuroimmunology, Alzheimer’s disease (AD) and dementia, movement disorders and neuromuscular disorders, including spinal muscular atrophy (SMA) and amyotrophic lateral sclerosis (ALS). We also plan to invest in emerging growth areas such as pain, ophthalmology, neuropsychiatry and acute neurology. In addition, we are employing innovative technologies to discover potential treatments for rare and genetic disorders, including new ways of treating diseases through gene therapy in the previously mentioned areas. We also manufacture and commercialize biosimilars of advanced biologics. Our marketed products include TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA and FAMPYRA for the treatment of MS, SPINRAZA for the treatment of SMA and FUMADERM for the treatment of severe plaque psoriasis. We also have certain business and financial rights with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL) and other conditions, GAZYVA for the treatment of CLL and follicular lymphoma, OCREVUS for the treatment of primary progressive MS and relapsing MS and other potential anti-CD20 therapies under a collaboration agreement with Genentech, Inc. (Genentech), a wholly-owned member of the Roche Group. We support our drug discovery and development efforts through the commitment of significant resources to discovery, research and development programs and business development opportunities, particularly within our core and emerging growth areas. For nearly two decades we have led in the research and development of new therapies to treat MS, resulting in our leading portfolio of MS treatments. Now our research is focused on additional improvements in the treatment of MS, such as the development of next generation therapies for MS, with a goal to reverse or possibly repair damage caused by the disease. We are also applying our scientific expertise to solve some of the most challenging and complex diseases, including AD, progressive supranuclear palsy (PSP), a rare condition that affects movement, speech, vision and cognitive function, Parkinson's disease and ALS. Our innovative drug development and commercialization activities are complemented by our biosimilar therapies that expand access to medicines and reduce the cost burden for healthcare systems. We are leveraging our manufacturing capabilities and know-how to develop, manufacture and market biosimilars through Samsung Bioepis, our joint venture with Samsung BioLogics Co. Ltd. (Samsung Biologics). Under our commercial agreement, we market and sell BENEPALI, an etanercept biosimilar referencing ENBREL, and FLIXABI, an infliximab biosimilar referencing REMICADE in the European Union (E.U.). Hemophilia Spin-Off On February 1, 2017, we completed the spin-off of our hemophilia business, Bioverativ Inc. (Bioverativ), as an independent, publicly traded company. Our consolidated results of operations and financial position included in these audited consolidated financial statements reflect the financial results of our hemophilia business for all periods through January 31, 2017. For additional information on the spin-off of our hemophilia business, please read Note 3, Hemophilia Spin-Off, to these consolidated financial statements. Consolidation Our consolidated financial statements reflect our financial statements, those of our wholly-owned subsidiaries and those of certain variable interest entities where we are the primary beneficiary. For consolidated entities where we own or are exposed to less than 100% of the economics, we record net income (loss) attributable to noncontrolling interests in our consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation. In determining whether we are the primary beneficiary of an entity, we apply a qualitative approach that determines whether we have both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. These considerations impact the way we account for our existing collaborative relationships and other arrangements. We continuously assess whether we are the primary beneficiary of a variable interest entity as changes to existing relationships or future transactions may result in us consolidating or deconsolidating one or more of our collaborators or partners. Use of Estimates The preparation of our consolidated financial statements requires us to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. On an on-going basis we evaluate our estimates, judgments and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. Actual results may differ from these estimates under different assumptions or conditions. Revenue Recognition We recognize revenues when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; our price to the customer is fixed or determinable; and collectability is reasonably assured. Product Revenues Revenues from product sales are recognized when title and risk of loss have passed to the customer, which is typically upon delivery. Reserves for Discounts and Allowances Revenues from product sales are recorded net of reserves established for applicable discounts and allowances, including those associated with the implementation of pricing actions in certain of the international markets in which we operate. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer). Our estimates take into consideration our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Actual amounts may ultimately differ from our estimates. If actual results vary, we adjust these estimates, which could have an effect on earnings in the period of adjustment. Product revenue reserves are categorized as follows: discounts, contractual adjustments and returns. Discounts include trade term discounts and wholesaler incentives. Trade term discounts and wholesaler incentives primarily relate to estimated obligations for credits to be granted to wholesalers for remitting payment on their purchases within established incentive periods and credits to be granted to wholesalers for compliance with various contractually-defined inventory management practices, respectively. We determine these reserves based on our historical experience, including the timing of customer payments. Contractual adjustments primarily relate to Medicaid and managed care rebates, co-payment (copay) assistance, Veterans Administration (VA) and Public Health Service (PHS) discounts, specialty pharmacy program fees and other governmental rebates or applicable allowances. • Medicaid rebates relate to our estimated obligations to states under established reimbursement arrangements. Rebate accruals are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a liability which is included in other current liabilities. Our liability for Medicaid rebates consists of estimates for claims that a state will make for the current quarter, claims for prior quarters that have been estimated for which an invoice has not been received, invoices received for claims from the prior quarters that have not been paid, and an estimate of potential claims that will be made for inventory that exists in the distribution channel at period end. • Governmental rebates or chargebacks, including VA and PHS discounts, represent our estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list prices we charge to wholesalers which provide those products. The wholesaler charges us for the difference between what the wholesaler pays for the products and the ultimate selling price to the qualified healthcare providers. Rebate and chargeback reserves are established in the same period as the related revenue is recognized, resulting in a reduction in product revenue and accounts receivable. Chargeback amounts are generally determined at the time of resale to the qualified healthcare provider from the wholesaler, and we generally issue credits for such amounts within a few weeks of the wholesaler notifying us about the resale. Our reserves for VA, PHS and chargebacks consist of amounts that we expect to issue for inventory that exists at the wholesalers that we expect will be sold to qualified healthcare providers and chargebacks that wholesalers have claimed for which we have not issued a credit. • Managed care rebates represent our estimated obligations to third parties, primarily pharmacy benefit managers. Rebate accruals are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a liability which is included in accrued expenses and other current liabilities. These rebates result from performance-based goals, formulary position and price increase limit allowances (price protection). The calculation of the accrual for these rebates is based on an estimate of the customer’s buying patterns and the resulting applicable contractual rebate rate(s) to be earned over a contractual period. • Copay assistance represents financial assistance to qualified patients, assisting them with prescription drug co-payments required by insurance. The calculation of the accrual for copay is based on an estimate of claims and the cost per claim that we expect to receive associated with inventory that exists in the distribution channel at period end. • Other governmental rebates, non-US pharmaceutical taxes or applicable allowances primarily relate to mandatory rebates and discounts in international markets where government-sponsored healthcare systems are the primary payors for healthcare. Product returns are established for returns expected to be made by wholesalers and are recorded in the period the related revenue is recognized, resulting in a reduction to product sales. In accordance with contractual terms, wholesalers are permitted to return product for reasons such as damaged or expired product. The majority of wholesaler returns are due to product expiration. Expired product return reserves are estimated through a comparison of historical return data to their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product. In addition to the discounts, rebates and product returns described above and classified as a reduction of revenue, we also maintain certain customer service contracts with distributors and other customers in the distribution channel that provide us with inventory management, data and distribution services, which are generally reflected as a reduction of revenue. To the extent we can demonstrate a separable benefit and fair value for these services, we classify these payments in selling, general and administrative expenses. Revenues from Anti-CD20 Therapeutic Programs Revenues from anti-CD20 therapeutic programs consist of: (i) our share of pre-tax profits and losses in the United States (U.S.) for RITUXAN and GAZYVA; (ii) reimbursement of our selling and development expenses in the U.S. for RITUXAN; and (iii) other revenues from anti-CD20 therapeutic programs, which primarily consist of our share of pre-tax co-promotion profits on RITUXAN in Canada and royalty revenues on sales of OCREVUS. Pre-tax co-promotion profits on RITUXAN and GAZYVA are calculated and paid to us by Genentech in the U.S. Pre-tax co-promotion profits on RITUXAN are calculated and paid to us by the Roche Group in Canada. Pre-tax co-promotion profits consist of U.S. and Canadian net sales to third-party customers less applicable costs to manufacture, third-party royalty expenses, distribution, selling and marketing expenses and joint development expenses incurred by Genentech, the Roche Group and us. Our share of the pre-tax profits on RITUXAN and GAZYVA in the U.S. and pre-tax co-promotion profits on RITUXAN in Canada include estimates made by Genentech and those estimates are subject to change. Actual results may differ from our estimates. For additional information on our collaboration with Genentech, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Royalty Revenues We receive royalty revenues on sales by our licensees of other products covered under patents that we own. We do not have future performance obligations under these license arrangements. We record these revenues based on estimates of the sales that occurred during the relevant period as a component of other revenues. The relevant period estimates of sales are based on interim data provided by licensees and analysis of historical royalties that have been paid to us, adjusted for any changes in facts and circumstances, as appropriate. Differences between actual and estimated royalty revenues are adjusted for in the period in which they become known, typically the following quarter. Historically, adjustments have not been material when compared to actual amounts paid by licensees. Multiple-Element Revenue Arrangements We may enter into transactions that involve the sale of products and related services under multiple element arrangements. In accounting for these transactions, we assess the elements of the contract and whether each element has standalone value and allocate revenues to the various elements based on their estimated selling price as a component of total revenues. The selling price of a revenue generating element can be based on current selling prices offered by us or another party for current products or management’s best estimate of a selling price. Revenues allocated to an individual element are recognized when all other revenue recognition criteria are met for that element. Collaborative and Other Relationships Our development and commercialization arrangement with AbbVie Inc. (AbbVie) represents a collaborative arrangement as each party is an active participant and exposed to significant risks and rewards of the arrangement. Where we are the principal on sales transactions with third parties, we recognize revenues, cost of sales and operating expenses on a gross basis in their respective lines in our consolidated statements of income. Where we are not the principal on sales transactions with third parties, we record our share of the revenues, cost of sales and operating expenses on a net basis in collaborative and other relationships included in other revenue in our consolidated statements of income. For additional information on our collaboration with AbbVie, please read Note 20, Collaborative and Other Relationships , to these consolidated financial statements. Fair Value Measurements We have certain financial assets and liabilities recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements. • Level 1 — Fair values are determined utilizing quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; • Level 2 — Fair values are determined by utilizing quoted prices for identical or similar assets and liabilities in active markets or other market observable inputs such as interest rates, yield curves and foreign currency spot rates; and • Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The majority of our financial assets have been classified as Level 2. Our financial assets (which include our cash equivalents, derivative contracts, marketable debt securities and plan assets for deferred compensation) have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third-party pricing services or other market observable data. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. We validate the prices provided by our third-party pricing services by reviewing their pricing methods and matrices, obtaining market values from other pricing sources and analyzing pricing data in certain instances. After completing our validation procedures, we did not adjust or override any fair value measurements provided by our pricing services as of December 31, 2017 and 2016 . Other Assets and Liabilities The carrying amounts reflected in our consolidated balance sheets for current accounts receivable, due from anti-CD20 therapeutic programs, other current assets, accounts payable and accrued expenses and other, approximate fair value due to their short-term maturities. Cash and Cash Equivalents We consider only those investments which are highly liquid, readily convertible to cash and that mature within three months from date of purchase to be cash equivalents. As of December 31, 2017 and 2016 , cash equivalents were comprised of money market funds and commercial paper, overnight reverse repurchase agreements and other debt securities with maturities less than 90 days from the date of purchase. Accounts Receivable The majority of our accounts receivable arise from product sales and primarily represent amounts due from our wholesale distributors, public hospitals and other government entities. We monitor the financial performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile. We provide reserves against trade receivables for estimated losses that may result from a customer’s inability to pay. Amounts determined to be uncollectible are charged or written-off against the reserve. To date, our historical reserves and write-offs of accounts receivable have not been significant. In countries where we have experienced a pattern of payments extending beyond our contractual payment term and we expect to collect receivables greater than one year from the time of sale, we have discounted our receivables and reduced related revenues over the period of time that we estimate those amounts will be paid using the country’s market-based borrowing rate for such period. The related receivables are classified at the time of sale as non-current assets. We accrete interest income on these receivables, which is recognized as a component of other income (expense), net in our consolidated statements of income. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk include cash and cash equivalents, investments, derivatives and accounts receivable. We attempt to minimize the risks related to cash and cash equivalents and investments by investing in a broad and diverse range of financial instruments as previously defined by us. We have established guidelines related to credit ratings and maturities intended to safeguard principal balances and maintain liquidity. Our investment portfolio is maintained in accordance with our investment policy, which defines allowable investments, specifies credit quality standards and limits the credit exposure of any single issuer. We minimize credit risk resulting from derivative instruments by choosing only highly rated financial institutions as counterparties. Concentrations of credit risk with respect to receivables, which are typically unsecured, are somewhat mitigated due to the wide variety of customers and markets using our products, as well as their dispersion across many different geographic areas. The majority of our accounts receivable arise from product sales in the U.S. and Europe and have standard payment terms that generally require payment within 30 to 90 days . We monitor the financial performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile. We continue to monitor these conditions and assess their possible impact on our business. As of December 31, 2017 and 2016 , two wholesale distributors individually accounted for approximately 26.5% and 19.0% , and 37.2% and 19.2% , of accounts receivable, net, respectively. Marketable Securities and Other Investments Marketable Debt Securities Available-for-sale debt securities are recorded at fair market value and unrealized gains and losses are included in accumulated other comprehensive income (loss) in equity, net of related tax effects, unless the security has experienced a credit loss, we have determined that we have the intent to sell the security or we have determined that it is more likely than not that we will have to sell the security before its expected recovery. Realized gains and losses are reported in other income (expense), net, on a specific identification basis. Marketable Equity Securities Our marketable equity securities represent investments in publicly traded equity securities and are included in investments and other assets in our consolidated balance sheets. When assessing whether a decline in the fair value of a marketable equity security is other-than-temporary, we consider the fair market value of the security, the duration of the security’s decline and prospects for the underlying business, including favorable or adverse clinical trial results, new product initiatives and new collaborative agreements with the companies in which we have invested. Non-Marketable Equity Securities We also invest in equity securities of companies whose securities are not publicly traded and where fair value is not readily available. These investments are recorded using either the cost method or the equity method of accounting, depending on our ownership percentage and other factors that suggest we have significant influence. We monitor these investments to evaluate whether any decline in their value has occurred that would be other-than-temporary, based on the implied value of recent company financings, public market prices of comparable companies and general market conditions and are included in investments and other assets in our consolidated balance sheets. Evaluating Investments for Other-than-Temporary Impairments We conduct periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive income. For available-for-sale debt securities with unrealized losses, management performs an analysis to assess whether we intend to sell or whether we would more likely than not be required to sell the security before the expected recovery of the amortized cost basis. Where we intend to sell a security, or may be required to do so, the security’s decline in fair value is deemed to be other-than-temporary and the full amount of the unrealized loss is reflected in earnings as an impairment loss. Regardless of our intent to sell a security, we perform additional analysis on all securities with unrealized losses to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where we do not expect to receive cash flows sufficient to recover the amortized cost basis of a security. For equity securities, when assessing whether a decline in value is other-than-temporary, we consider the fair market value of the security, the duration of the security’s decline and the financial condition of the issuer. We then consider our intent and ability to hold the equity security for a period of time sufficient to recover our carrying value. Where we have determined that we lack the intent and ability to hold an equity security to its expected recovery, the security’s decline in fair value is deemed to be other-than-temporary and is reflected in earnings as an impairment loss. Equity Method of Accounting In circumstances where we have the ability to exercise significant influence over the operating and financial policies of a company in which we have an investment, we utilize the equity method of accounting for recording investment activity. In assessing whether we exercise significant influence, we consider the nature and magnitude of our investment, the voting and protective rights we hold, any participation in the governance of the other company and other relevant factors such as the presence of a collaborative or other business relationship. Under the equity method of accounting, we record in our results of operations our share of income or loss of the other company. If our share of losses exceeds the carrying value of our investment, we will suspend recognizing additional losses and will continue to do so unless we commit to providing additional funding. Inventory Inventories are stated at the lower of cost or market with cost based on the first-in, first-out method. We classify our inventory costs as long-term when we expect to utilize the inventory beyond our normal operating cycle and include these costs in investments and other assets in our consolidated balance sheets. Inventory that can be used in either the production of clinical or commercial products is expensed as research and development costs when identified for use in a clinical manufacturing campaign. Capitalization of Inventory Costs We capitalize inventory costs associated with our products prior to regulatory approval, when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized. We consider numerous attributes in evaluating whether the costs to manufacture a particular product should be capitalized as an asset. We assess the regulatory approval process and where the particular product stands in relation to that approval process, including any known safety or efficacy concerns, potential labeling restrictions and other impediments to approval. We evaluate our anticipated research and development initiatives and constraints relating to the product and the indication in which it will be used. We consider our manufacturing environment including our supply chain in determining logistical constraints that could hamper approval or commercialization. We consider the shelf life of the product in relation to the expected timeline for approval and we consider patent related or contract issues that may prevent or delay commercialization. We also base our judgment on the viability of commercialization, trends in the marketplace and market acceptance criteria. Finally, we consider the reimbursement strategies that may prevail with respect to the product and assess the economic benefit that we are likely to realize. We expense previously capitalized costs related to pre-approval inventory upon a change in such judgment, due to, among other potential factors, a denial or significant delay of approval by necessary regulatory bodies. Obsolescence and Unmarketable Inventory We periodically review our inventories for excess or obsolescence and write-down obsolete or otherwise unmarketable inventory to its estimated net realizable value. If the actual net realizable value is less than that estimated by us, or if it is determined that inventory utilization will further diminish based on estimates of demand, additional inventory write-downs may be required. Additionally, our products are subject to strict quality control and monitoring that we perform throughout the manufacturing process. In the event that certain batches or units of product no longer meet quality specifications, we will record a charge to cost of sales to write-down any unmarketable inventory to its estimated net realizable value. In all cases, product inventory is carried at the lower of cost or its estimated net realizable value. Amounts written-down due to unmarketable inventory are charged to cost of sales. Property, Plant and Equipment Property, plant and equipment are carried at cost, subject to review for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The cost of normal, recurring, or periodic repairs and maintenance activities related to property, plant and equipment are expensed as incurred. The cost for planned major maintenance activities, including the related acquisition or construction of assets, is capitalized if the repair will result in future economic benefits. Interest costs incurred during the construction of major capital projects are capitalized until the underlying asset is ready for its intended use, at which point the interest costs are amortized as depreciation expense over the life of the underlying asset. We also capitalize certain direct and incremental costs associated with the validation effort required for licensing by regulatory agencies of new manufacturing equipment for the production of a commercially approved drug. These costs primarily include direct labor and material and are incurred in preparing the equipment for its intended use. The validation costs are either amortized over the life of the related equipment or expensed as cost of sales when the product produced in the validation process is sold. In addition, we capitalize certain internal use computer software development costs. If the software is an integral part of production assets, these costs are included in machinery and equipment and are amortized on a straight-line basis over the estimated useful lives of the related software, which generally range from three to five years . We generally depreciate or amortize the cost of our property, plant and equipment using the straight-line method over the estimated useful lives of the respective assets, which are summarized as follows: Asset Category Useful Lives Land Not depreciated Buildings 15 to 40 years Leasehold Improvements Lesser of the useful life or the term of the respective lease Furniture and Fixtures 5 to 7 years Machinery and Equipment 5 to 20 years Computer Software and Hardware 3 to 5 years When we dispose of property, plant and equipment, we remove the associated cost and accumulated depreciation from the related accounts in our consolidated balance sheets and include any resulting gain or loss in our consolidated statements of income. Intangible Assets Our intangible assets consist of acquired and in-licensed rights and patents, developed technology, out-licensed patents, in-process research and development acquired after January 1, 2009, trademarks and trade names. Our intangible assets are recorded at fair value at the time of their acquisition and are stated in our consolidated balance sheets net of accumulated amortization and impairments, if applicable. Intangible assets related to acquired and in-licensed rights and patents, developed technology and out-licensed patents are amortized over their estimated useful lives using the economic consumption method if anticipated future revenues can be reasona |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Remedy Pharmaceuticals Inc. In May 2017 we completed an asset purchase of the Phase 3-ready candidate, BIIB093 (intravenous glibencamide) (formerly known as CIRARA), from Remedy. The target indication for BIIB093 is large hemispheric infarction (LHI), a severe form of ischemic stroke where brain swelling (cerebral edema) often leads to a disproportionately large share of stroke-related morbidity and mortality. The U.S. Food and Drug Administration (FDA) recently granted BIIB093 Orphan Drug designation for severe cerebral edema in patients with acute ischemic stroke. The FDA has also granted BIIB093 Fast Track designation. Under this agreement, we are responsible for the future development and commercialization of BIIB093 and Remedy will share in the cost of development for the target indication for BIIB093 in LHI stroke. We accounted for this transaction as an asset acquisition as we did not acquire any employees from Remedy nor did we acquire any significant processes required in the development of BIIB093. In connection with the closing of this transaction, we made an upfront payment of $120.0 million to Remedy, which was recorded as acquired in-process research and development in our consolidated statements of income as BIIB093 has not yet reached technological feasibility. We also have agreed to pay Remedy certain development and sales based milestone payments that are substantially payable upon or after regulatory approval, as well as royalties on future commercial sales. Convergence Pharmaceuticals In February 2015, we completed our acquisition of all of the outstanding stock of Convergence Pharmaceuticals (Convergence), a clinical-stage biopharmaceutical company with a focus on developing product candidates for neuropathic pain. Convergence’s lead candidate was a Phase 2 clinical candidate BIIB074 (formerly known as CNV1014802), which had demonstrated clinical activity in proof-of-concept studies for TGN. Additionally, BIIB074 had potential applicability in several other neuropathic pain states, including lumbosacral radiculopathy and erythromelalgia. The purchase price consisted of a $200.1 million cash payment at closing, plus contingent consideration in the form of development and approval milestones up to a maximum of $450.0 million , of which $350.0 million is associated with the development and approval of BIIB074 for the treatment of TGN. In connection with the closing of this transaction, we recorded a liability of $274.5 million representing the fair value of the contingent consideration resulting in an adjusted purchase price of $474.6 million . The separately identifiable assets and liabilities acquired were primarily comprised of $424.6 million and $128.3 million attributed to in-process research and development and goodwill, respectively. These amounts were partially offset by the establishment of a deferred tax liability for the acquired IPR&D intangible assets which had no tax basis. We attributed the goodwill recognized to the Convergence workforce's expertise in chronic pain research and clinical development and to establishing a deferred tax liability for the acquired IPR&D intangible assets. The goodwill was not tax deductible. |
Hemophilia Spin-Off Hemophilia
Hemophilia Spin-Off Hemophilia Spin-Off | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Hemophilia Spin-Off | Hemophilia Spin-Off On February 1, 2017, we completed the spin-off of our hemophilia business, Bioverativ, as an independent, publicly traded company trading under the symbol "BIVV" on the Nasdaq Global Select Market. The spin-off was accomplished through the distribution of all the then outstanding shares of common stock of Bioverativ to Biogen shareholders, who received one share of Bioverativ common stock for every two shares of Biogen common stock they owned. The separation and distribution was structured to be tax-free for shareholders for federal income tax purposes. Bioverativ assumed all of our rights and obligations under our collaboration agreement with Swedish Orphan Biovitrum AB (Sobi) and our collaboration and license agreement with Sangamo Biosciences Inc. (Sangamo). In connection with the distribution, Biogen and Bioverativ entered into a separation agreement and various other agreements (including a transition services agreement, a tax matters agreement, a manufacturing and supply agreement, an employee matters agreement, an intellectual property matters agreement and certain other commercial agreements). These agreements govern the separation and distribution and the relationship between the two companies going forward. They also provide for the performance of services by each company for the benefit of the other for a period of time. In addition, under the separation agreement, Bioverativ is obligated to indemnify us for liabilities that may exist relating to its business activities, whether incurred prior to or after the distribution, including any pending or future litigation. The services under these agreements generally commenced on February 1, 2017 (the distribution date), and terminate within 12 months of the distribution date, with the exception of the manufacturing and supply agreement, which has an initial term of 5 years , with a 5 year extension at Bioverativ's sole discretion and a further 5 year extension with Bioverativ's and our consent. In connection with the distribution we made a net cash contribution to Bioverativ, during the first quarter of 2017, totaling $302.7 million . The following table summarizes the assets and liabilities that were charged against equity as a result of the spin-off of our hemophilia business: (In millions) Assets Cash $ 302.7 Accounts receivable 144.7 Inventory 116.1 Property, plant and equipment, net 20.2 Intangible assets, net 56.8 Goodwill 314.1 Other, net 53.7 Assets transferred, net $ 1,008.3 Liabilities Accrued expenses and other current liabilities $ 87.8 Other long-term liabilities 67.7 Liabilities transferred, net $ 155.5 Pursuant to the terms of our agreements with Bioverativ, upon completion of the spin-off, we distributed ALPROLIX and ELOCTATE on behalf of Bioverativ until Bioverativ obtained appropriate regulatory authorizations in certain countries, including a Biologics License Application transfer in the U.S., which was received in September 2017. Accordingly, commencing October 2017, we ceased distribution of ALPROLIX and ELOCTATE on behalf of Bioverativ under this arrangement. Under the manufacturing and supply agreement, we manufacture and supply certain products and materials to Bioverativ. For the year ended December 31, 2017 , we recognized $64.8 million in revenues in relation to these contract manufacturing services, which is reflected as a component of other royalty and corporate revenues in our consolidated statements of income. We also recorded $15.1 million as cost of sales in relation to these services during the year ended December 31, 2017 . Amounts earned under the non-manufacturing and supply related transaction service agreements are recorded as a reduction of costs and expenses in their respective expense line items. These amounts, which were primarily reflected as a reduction to selling, general and administrative expenses in our consolidated statements of income, were not significant for the year ended December 31, 2017 . Hemophilia related product revenues reflected in our consolidated statements of income for the years ended December 31, 2017 , 2016 and 2015 totaled $74.4 million , $846.9 million and $554.2 million , respectively. Results for the year ended December 31, 2017 only reflect hemophilia-related product revenues through January 31, 2017. Patents Prior to the spin-off of our hemophilia business, we were awarded various methods of treatment and composition of matter patents related to ELOCTATE and ALPROLIX. Upon completion of the spin-off, these patents were transferred to the patent portfolio of Bioverativ. |
Restructuring Restructuring
Restructuring Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring, Business Transformation and Other Cost Saving Initiatives 2017 Corporate Strategy In July 2017 we announced an updated strategic framework to optimize the value of our MS business while investing for the future across our core growth areas of MS and neuroimmunology, AD and dementia, movement disorders and neuromuscular diseases including SMA and ALS. We also plan to invest in emerging growth areas such as pain, ophthalmology, neuropsychiatry and acute neurology. In addition, we are employing innovative technologies to discover potential treatments for rare and genetic disorders, including new ways of treating diseases through gene therapy in the previously mentioned areas. In order to deliver positive results in the near term while investing in the next stages of our growth, we will focus on the following strategic priorities: • maximizing the resilience of our MS core business; • accelerating efforts in SMA as a significant new growth opportunity; • developing and expanding our neuroscience portfolio; • focusing our capital allocation efforts to drive investment for future growth; and • creating a leaner and simpler operating model to streamline our operations and reallocate resources towards prioritized research and development and commercial value creation opportunities. In October 2017, in connection with creating a leaner and simpler operating model, we approved a corporate restructuring program intended to streamline our operations and reallocate resources. We expect to make total non-recurring operating and capital expenditures of up to $170.0 million , primarily in 2018, and our goal is to redirect resources of up to $400.0 million annually by 2020 to prioritized research and development and other value creation opportunities. For the year ended December 31, 2017 , we recognized charges in our consolidated statements of income totaling $19.4 million related to this effort, of which $18.5 million is included in selling, general and administrative expense and $0.9 million is reflected as restructuring charges. These restructuring charges, which were substantially incurred and paid in 2017, were primarily related to severance. 2016 Organizational Changes and Cost Saving Initiatives 2016 Restructuring Charges During the third quarter of 2016 we initiated cost saving measures primarily intended to realign our organizational structure due to the changes in roles and workforce resulting from our decision to spin-off our hemophilia business, and to achieve further targeted cost reductions. For the year ended December 31, 2016 , we recognized charges totaling $17.7 million related to this effort, which are in addition to, and separate from, the 2015 restructuring charges described below. These amounts, which were substantially incurred and paid by the end of 2016 , were primarily related to severance and are reflected in restructuring charges in our consolidated statements of income. Cambridge, MA Manufacturing Facility In June 2016 following an evaluation of our current and future manufacturing capabilities and capacity needs, we determined that we intended to cease manufacturing and vacate our 67,000 square foot small-scale biologics manufacturing facility in Cambridge, MA and close and vacate our 46,000 square foot warehouse space in Somerville, MA. In December 2016 we subleased our rights to the Cambridge, MA manufacturing facility to Brammer Bio MA, LLC (Brammer). Brammer also purchased from us certain manufacturing equipment, leasehold improvements and other assets in exchange for shares of Brammer common LLC interests and assumed manufacturing operations effective January 1, 2017. In December 2016 we closed and vacated our warehouse space in Somerville, MA. Our departure from these facilities shortened the expected useful lives of certain leasehold improvements and other assets at these facilities. As a result, we recorded additional depreciation expense to reflect the assets' new shorter useful lives. For the year ended December 31, 2016 , we recognized approximately $45.5 million of this additional depreciation, which was recorded as cost of sales in our consolidated statements of income. In the fourth quarter of 2016 we also recognized charges totaling $7.4 million for severance costs related to certain employees separated from Biogen in connection with our departure from these facilities. These amounts were substantially incurred and paid by the end of first quarter of 2017 and are reflected in restructuring charges in our consolidated statements of income for the year ended December 31, 2016 . 2015 Cost Saving Initiatives 2015 Restructuring Charges In October 2015, we announced a corporate restructuring, which included the termination of certain pipeline programs and an 11% reduction in workforce. Under this restructuring, cash payments were estimated to total approximately $120.0 million , of which $15.9 million were related to previously accrued 2015 incentive compensation, resulting in net restructuring charges totaling approximately $102.0 million . These amounts were substantially paid by the end of 2016. During the years ended December 31, 2016 and 2015 , we recognized $8.0 million and $93.4 million , respectively, of restructuring charges related to our 2015 restructuring program in our consolidated statements of income. Our restructuring reserve is included in accrued expenses and other in our consolidated balance sheets. The following table summarizes the charges and spending related to our 2015 restructuring program during 2017: (In millions) Workforce Reduction Pipeline Programs Total Restructuring reserve as of December 31, 2015 $ 33.7 $ 3.6 $ 37.3 Expense 4.9 5.4 10.3 Payments (31.2 ) (9.0 ) (40.2 ) Adjustments to previous estimates, net (5.2 ) 2.9 (2.3 ) Restructuring reserve as of December 31, 2016 $ 2.2 $ 2.9 $ 5.1 Payments (1.7 ) (2.9 ) (4.6 ) Restructuring reserve as of December 31, 2017 $ 0.5 $ — $ 0.5 |
Revenue Reserves
Revenue Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Sales Discounts, Returns and Allowances, Goods [Abstract] | |
Reserves for Discounts and Allowances | Reserves for Discounts and Allowances An analysis of the change in reserves for discounts and allowances is summarized as follows: (In millions) Discounts Contractual Adjustments Returns Total 2017 Beginning balance $ 71.6 $ 482.7 $ 51.2 $ 605.5 Current provisions relating to sales in current year 583.0 2,307.4 26.9 2,917.3 Adjustments relating to prior years (0.1 ) 15.0 (8.9 ) 6.0 Payments/returns relating to sales in current year (475.8 ) (1,756.9 ) (0.1 ) (2,232.8 ) Payments/returns relating to sales in prior years (69.1 ) (442.2 ) (23.1 ) (534.4 ) Ending balance $ 109.6 $ 606.0 $ 46.0 $ 761.6 (In millions) Discounts Contractual Adjustments Returns Total 2016 Beginning balance $ 56.1 $ 548.7 $ 57.9 $ 662.7 Current provisions relating to sales in current year 592.6 2,044.5 30.9 2,668.0 Adjustments relating to prior years (1.4 ) 1.5 (16.8 ) (16.7 ) Payments/returns relating to sales in current year (522.5 ) (1,576.0 ) (1.0 ) (2,099.5 ) Payments/returns relating to sales in prior years (53.2 ) (536.0 ) (19.8 ) (609.0 ) Ending balance $ 71.6 $ 482.7 $ 51.2 $ 605.5 (In millions) Discounts Contractual Adjustments Returns Total 2015 Beginning balance $ 47.6 $ 387.1 $ 49.1 $ 483.8 Current provisions relating to sales in current year 459.7 1,732.1 37.6 2,229.4 Adjustments relating to prior years (1.3 ) (16.3 ) (14.7 ) (32.3 ) Payments/returns relating to sales in current year (405.9 ) (1,258.1 ) (2.6 ) (1,666.6 ) Payments/returns relating to sales in prior years (44.0 ) (296.1 ) (11.5 ) (351.6 ) Ending balance $ 56.1 $ 548.7 $ 57.9 $ 662.7 The total revenue-related reserves above, included in our consolidated balance sheets, are summarized as follows: As of December 31, (In millions) 2017 2016 Reduction of accounts receivable $ 189.6 $ 166.9 Component of accrued expenses and other 572.0 438.6 Total revenue-related reserves $ 761.6 $ 605.5 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory are summarized as follows: As of December 31, (In millions) 2017 2016 Raw materials $ 162.4 $ 170.4 Work in process 605.7 698.7 Finished goods 157.4 170.3 Total inventory $ 925.5 $ 1,039.4 Balance Sheet Classification: Inventory $ 902.7 $ 1,001.6 Investments and other assets 22.8 37.8 Total inventory $ 925.5 $ 1,039.4 Balances in the table above as of December 31, 2017 reflect the elimination of certain amounts transferred to Bioverativ in connection with the completion of the spin-off of our hemophilia business. Balances transferred to Bioverativ related to work in process and finished goods inventory totaled $84.5 million and $31.6 million , respectively. For additional information on the spin-off of our hemophilia business, please read Note 3, Hemophilia Spin-Off, to these consolidated financial statements. Long-term inventory, which primarily consists of work in process, is included in investments and other assets in our consolidated balance sheets. Inventory amounts written down as a result of excess, obsolescence, unmarketability or other reasons are charged to cost of sales, and totaled $76.9 million , $48.2 million and $41.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets, net of accumulated amortization, impairment charges and adjustments are summarized as follows: As of December 31, 2017 As of December 31, 2016 (In millions) Estimated Life Cost Accumulated Amortization Net Cost Accumulated Amortization Net Out-licensed patents 13-23 years $ 543.3 $ (535.6 ) $ 7.7 $ 543.3 $ (523.6 ) $ 19.7 Developed technology 15-23 years 3,005.3 (2,689.0 ) 316.3 3,005.3 (2,634.3 ) 371.0 In-process research and development Indefinite until commercialization 680.6 — 680.6 648.0 — 648.0 Trademarks and trade names Indefinite 64.0 — 64.0 64.0 — 64.0 Acquired and in-licensed rights and patents 4-18 years 3,971.4 (1,160.4 ) 2,811.0 3,481.7 (776.1 ) 2,705.6 Total intangible assets $ 8,264.6 $ (4,385.0 ) $ 3,879.6 $ 7,742.3 $ (3,934.0 ) $ 3,808.3 Amortization of acquired intangible assets totaled $814.7 million , $385.6 million and $382.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Amortization of acquired intangible assets for the year ended December 31, 2017 , includes $444.2 million of amortization and impairment charges related to our U.S. and rest of world licenses to Forward Pharma's intellectual property, including Forward Pharma's intellectual property related to TECFIDERA, as discussed below. Amortization of acquired intangible assets for 2017 also reflects a $31.2 million impairment charge related to the Article 20 Procedure of ZINBRYTA in the E.U. For additional information on the Article 20 Procedure of ZINBRYTA and resulting impairment of ZINBRYTA related assets, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Balances in the table above as of December 31, 2017 also reflect the elimination of certain amounts transferred to Bioverativ in connection with the completion of the spin-off of our hemophilia business. For additional information on the spin-off of our hemophilia business, please read Note 3, Hemophilia Spin-Off, to these consolidated financial statements. In-process research and development balances include adjustments related to foreign currency exchange rate fluctuations. Out-licensed Patents Out-licensed patents to third-parties primarily relate to patents acquired in connection with the merger of Biogen, Inc. and IDEC Pharmaceuticals Corporation in 2003. Developed Technology Developed technology primarily relates to our AVONEX product, which was recorded in connection with the merger of Biogen, Inc. and IDEC Pharmaceuticals Corporation in 2003. The net book value of this asset as of December 31, 2017 was $309.5 million . IPR&D IPR&D represents the fair value assigned to research and development assets that we acquired and had not reached technological feasibility at the date of acquisition. Upon commercialization, we will determine the estimated useful life and amortize these amounts based upon an economic consumption method. The carrying value associated with our IPR&D assets as of December 31, 2017 and 2016 relates to the various IPR&D programs we acquired in connection with our acquisitions of Convergence, Stromedix Inc. (Stromedix) and Biogen International Neuroscience GmbH (BIN) in 2015, 2012 and 2010, respectively. These amounts have and will be adjusted for foreign exchange rate fluctuations. An analysis of anticipated lifetime revenues and anticipated development costs is performed annually during our long-range planning cycle, which was updated in the third quarter of 2017 . This analysis is based upon certain assumptions that we evaluate on a periodic basis, including anticipated future product sales, the expected impact of changes in the amount of development costs and the probabilities of our programs succeeding, the introduction of new products by our competitors and changes in our commercial and pipeline product candidates. Acquired and In-licensed Rights and Patents Acquired and in-licensed rights and patents primarily relate to our acquisition of all remaining rights to TYSABRI from Elan. The net book value of this asset as of December 31, 2017 was $2,236.2 million . The net change in acquired and in-licensed rights and patents during 2017 reflects $90.0 million in total milestone payments paid to Ionis Pharmaceuticals, Inc. (Ionis) for the approvals of SPINRAZA in the E.U. and Japan in June 2017 and July 2017, respectively, the $25.0 million milestone payment paid to Samsung Bioepis, for the approval of IMRALDI, an adalimumab biosimilar referencing HUMIRA, in the E.U. in August 2017, and the net carrying value recognized in relation to our acquisition of TECFIDERA license rights, as described below. These net increases were in part offset by amortization and the $31.2 million impairment charge related to the Article 20 Procedure of ZINBRYTA. For additional information on our relationships with Ionis and Samsung Bioepis and the European Commission (EC) approved restrictions on the use of ZINBRYTA, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. TECFIDERA License Rights In January 2017 we entered into a settlement and license agreement among Biogen Swiss Manufacturing GmbH, Biogen International Holding Ltd., Forward Pharma and certain related parties, which was effective as of February 1, 2017. Pursuant to this agreement, we obtained U.S. and rest of world licenses to Forward Pharma's intellectual property, including Forward Pharma's intellectual property related to TECFIDERA. In exchange, we paid Forward Pharma $1.25 billion in cash. During the fourth quarter of 2016, we recognized a pre-tax charge of $454.8 million related to this agreement and in the first quarter of 2017 we recognized an intangible asset of $795.2 million related to this agreement. The pre-tax charge recognized in the fourth quarter of 2016 represented the fair value of our license to Forward Pharma’s intellectual property for the period April 2014, when we started selling TECFIDERA, through December 31, 2016. The intangible asset represented the fair value of the U.S. and rest of world licenses to Forward Pharma’s intellectual property related to TECFIDERA revenues for the period January 2017, the month in which we entered into this agreement, through December 2020, the last month before royalty payments could first commence pursuant to this agreement. We have two intellectual property disputes with Forward Pharma, one in the U.S. and one in the E.U., concerning intellectual property related to TECFIDERA. In March 2017 the U.S. intellectual property dispute was decided in our favor. Forward Pharma appealed to the U.S. Court of Appeals for the Federal Circuit and the appeal is pending. We evaluated the recoverability of the U.S. asset acquired from Forward Pharma and recorded an impairment charge in the first quarter of 2017 to adjust the carrying value of the acquired U.S. asset to fair value reflecting the impact of the developments in the U.S. legal dispute. In January 2018 the European Patent Office (EPO) announced its decision revoking Forward Pharma’s European Patent No. 2 801 355. Forward Pharma has stated that it expects to file an appeal to the Technical Board of Appeal of the EPO. Based upon our assessment of these rulings, we continue to amortize the remaining net book value of the U.S. and rest of world intangible assets in our consolidated statements of income utilizing an economic consumption model. For additional information on these disputes, please read Note 21, Litigation, to these consolidated financial statements. Estimated Future Amortization of Intangible Assets Our amortization expense is based on the economic consumption and impairment of intangible assets. Our most significant intangible assets are related to our TECFIDERA, AVONEX and TYSABRI products. Annually, during our long-range planning cycle, we perform an analysis of anticipated lifetime revenues of TECFIDERA, AVONEX and TYSABRI. This analysis is also updated whenever events or changes in circumstances would significantly affect the anticipated lifetime revenues of any of these products. Our most recent long-range planning cycle was completed in the third quarter of 2017 . Based upon this analysis, the estimated future amortization of acquired intangible assets for the next five years is expected to be as follows: (In millions) As of December 31, 2017 2018 $ 423.5 2019 401.8 2020 381.6 2021 254.3 2022 242.3 Goodwill The following table provides a roll forward of the changes in our goodwill balance: As of December 31, (In millions) 2017 2016 Goodwill, beginning of year $ 3,669.3 $ 2,663.8 Elimination of goodwill allocated to our hemophilia business (314.1 ) — Increase to goodwill 1,267.3 1,026.9 Other 10.0 (21.4 ) Goodwill, end of year $ 4,632.5 $ 3,669.3 The elimination of goodwill represents an allocation based upon the relative enterprise fair value of the hemophilia business as of the distribution date. For additional information on the spin-off of our hemophilia business, please read Note 3, Hemophilia Spin-Off, to these consolidated financial statements. The increase in goodwill during 2017 and 2016 was related to $1.5 billion and $1.2 billion in contingent milestones achieved (exclusive of $232.7 million and $173.1 million in tax benefits), respectively, and payable to the former shareholders of Fumapharm AG or holders of their rights. Other includes changes related to foreign currency exchange rate fluctuations. As of December 31, 2017 , we had no accumulated impairment losses related to goodwill. For additional information on future contingent payments to the former shareholders of Fumapharm AG or holders of their rights, please read Note 22, Commitments and Contingencies, to these consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The tables below present information about our assets and liabilities that are regularly measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques we utilized to determine such fair value: (In millions) As of Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 1,229.4 $ — $ 1,229.4 $ — Marketable debt securities: Corporate debt securities 2,609.8 — 2,609.8 — Government securities 1,919.3 — 1,919.3 — Mortgage and other asset backed securities 643.4 — 643.4 — Marketable equity securities 11.8 11.8 — — Derivative contracts 2.7 — 2.7 — Plan assets for deferred compensation 28.5 — 28.5 — Total $ 6,444.9 $ 11.8 $ 6,433.1 $ — Liabilities: Derivative contracts $ 111.3 $ — $ 111.3 $ — Contingent consideration obligations 523.6 — — 523.6 Total $ 634.9 $ — $ 111.3 $ 523.6 (In millions) As of Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 2,039.6 $ — $ 2,039.6 $ — Marketable debt securities: Corporate debt securities 2,663.8 — 2,663.8 — Government securities 2,172.5 — 2,172.5 — Mortgage and other asset backed securities 561.7 — 561.7 — Marketable equity securities 24.9 24.9 — — Derivative contracts 61.0 — 61.0 — Plan assets for deferred compensation 34.5 — 34.5 — Total $ 7,558.0 $ 24.9 $ 7,533.1 $ — Liabilities: Derivative contracts $ 13.6 $ — $ 13.6 $ — Contingent consideration obligations 467.6 — — 467.6 Total $ 481.2 $ — $ 13.6 $ 467.6 The fair value of Level 2 instruments classified as cash equivalents and marketable debt securities were determined through third-party pricing services. For a description of our validation procedures related to prices provided by third-party pricing services, please read Note 1, Summary of Significant Accounting Policies: Fair Value Measurements , to these consolidated financial statements. Debt Instruments The fair values of our debt instruments, which are Level 2 liabilities, are summarized as follows: As of December 31, (In millions) 2017 2016 Notes payable to Fumedica $ 3.2 $ 6.1 6.875% Senior Notes due March 1, 2018 — 583.7 2.900% Senior Notes due September 15, 2020 1,517.7 1,521.5 3.625% Senior Notes due September 15, 2022 1,032.9 1,026.6 4.050% Senior Notes due September 15, 2025 1,851.9 1,796.0 5.200% Senior Notes due September 15, 2045 2,077.6 1,874.5 Total $ 6,483.3 $ 6,808.4 In November 2017 we redeemed our 6.875% Senior Notes due March 1, 2018 with an aggregate principal amount of $550.0 million . For information on this redemption please read Note 12, Indebtedness, to these consolidated financial statements. The fair value of our notes payable to Fumedica was estimated using market observable inputs, including current interest and foreign currency exchange rates. The fair value of each series of our Senior Notes was determined through market, observable and corroborated sources. For additional information on our debt instruments, please read Note 12, Indebtedness, to these consolidated financial statements. Contingent Consideration Obligations In connection with our acquisitions of Convergence, Stromedix and BIN in 2015, 2012 and 2010, respectively, we agreed to make additional payments based upon the achievement of certain milestone events. The following table provides a roll forward of the fair values of our contingent consideration obligations, which includes Level 3 measurements: As of December 31, (In millions) 2017 2016 Fair value, beginning of year $ 467.6 $ 506.0 Changes in fair value 62.7 14.8 Payments and other (6.7 ) (53.2 ) Fair value, end of year $ 523.6 $ 467.6 As of December 31, 2017 and 2016 , approximately $279.0 million and $246.8 million , respectively, of the fair value of our total contingent consideration obligations was reflected as a component of other long-term liabilities in our consolidated balance sheets with the remaining balance reflected as a component of accrued expenses and other. Changes in the fair value of our contingent consideration obligations are primarily due to changes in the expected timing and probabilities of success related to the achievement of certain developmental milestones and changes in the discount rate. Payments and other for 2016 includes $7.9 million of a Convergence milestone converted to a short-term obligation under the acquisition agreement. There were no changes in valuation techniques or transfers between fair value measurement levels during the years ended December 31, 2017 and 2016 . The fair values of the intangible assets and contingent consideration liabilities were based on a probability-adjusted discounted cash flow calculation using Level 3 fair value measurements and inputs including estimated revenues and probabilities of success. For additional information on the valuation techniques and inputs utilized in the valuation of our financial assets and liabilities, please read Note 1, Summary of Significant Accounting Policies, to these consolidated financial statements. Convergence In connection with our acquisition of Convergence in February 2015 we recorded a contingent consideration obligation of $274.5 million . This valuation was based on probability weighted net cash outflow projections of $450.0 million , discounted using a rate of 2.0% , which was the estimated cost of debt financing for market participants. This liability reflected the revised estimate from the date of acquisition for our initial clinical development plans, resulting probabilities of success and the timing of certain milestone payments. For additional information on this transaction, please read Note 2, Acquisitions, to these consolidated financial statements. As of December 31, 2017 and 2016 , the fair value of this contingent consideration obligation was $259.0 million and $258.9 million , respectively. Our most recent valuation was determined based upon net cash flow projections of $400.0 million , probability weighted and discounted using a rate of 2.4% , which is a measure of the credit risk associated with settling the liability. For 2017 compared to 2016 , the net increase in the fair value of this obligation was primarily due to changes in the discount rate, partially offset by changes in the expected timing related to the achievement of certain remaining developmental milestones. Approximately $147.9 million is reflected as a component of accrued expenses and other in our consolidated balance sheets as we expect to make the payment within one year. Stromedix Inc. In connection with our acquisition of Stromedix in March 2012 we recorded a contingent consideration obligation of $122.2 million . As of December 31, 2017 and 2016 , the fair value of this contingent consideration obligation was $162.4 million and $133.2 million , respectively. Our most recent valuation was determined based upon net cash outflow projections of $344.0 million , probability weighted and discounted using a rate of 2.4% , which is a measure of the credit risk associated with settling the liability. For 2017 compared to 2016 , the net increase in the fair value of this obligation was primarily due to an increase in the probability of success related to the achievement of certain remaining developmental milestones, partially offset by changes in the discount rate. Approximately $76.7 million is reflected as a component of accrued expenses and other in our consolidated balance sheets as we expect to make the payment within one year. Biogen Idec International Neuroscience GmbH In connection with our acquisition of BIN in December 2010 we recorded a contingent consideration obligation of $81.2 million . As of December 31, 2017 and 2016 , the fair value of this contingent consideration obligation was $102.2 million and $75.5 million , respectively. Our most recent valuation was determined based upon net cash outflow projections of $355.0 million , probability weighted and discounted using a rate of 2.8% , which is a measure of the credit risk associated with settling the liability. For 2017 compared to 2016 , the net increase in the fair value of this obligation was primarily due to an increase in the probability of success related to the achievement of certain remaining developmental milestones, partially offset by a $6.7 million developmental milestone payment. Approximately $20.0 million is reflected as a component of accrued expenses and other in our consolidated balance sheets as we achieved the developmental milestone of dosing our first patient in our Phase 2 SPARK study of BIIB054 in Parkinson's disease in January 2018. Acquired IPR&D In connection with our acquisition of Convergence, we also allocated $424.6 million of the total purchase price to acquired IPR&D, which was capitalized as an intangible asset. The amount allocated to acquired IPR&D was based on significant inputs not observable in the market and thus represented a Level 3 fair value measurement. These assets will be tested for impairment annually until commercialization, after which time the IPR&D will be amortized over its estimated useful life using the economic consumption method. For additional information on this transaction, please read Note 2, Acquisitions, to these consolidated financial statements. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments The following table summarizes our financial assets with maturities of less than 90 days from the date of purchase included in cash and cash equivalents in our consolidated balance sheets: As of December 31, (In millions) 2017 2016 Commercial paper $ 30.5 $ 31.0 Overnight reverse repurchase agreements 3.6 — Money market funds 948.0 741.7 Short-term debt securities 247.3 1,266.9 Total $ 1,229.4 $ 2,039.6 The carrying values of our commercial paper, including accrued interest, overnight reverse repurchase agreements, money market funds and our short-term debt securities approximate fair value due to their short-term maturities. The following tables summarize our marketable debt and equity securities, classified as available for sale: As of December 31, 2017 (In millions) Fair Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Corporate debt securities Current $ 1,039.3 $ — $ (0.2 ) $ 1,039.5 Non-current 1,570.5 0.9 — 1,569.6 Government securities Current 1,075.1 0.1 (0.7 ) 1,075.7 Non-current 844.2 0.2 (1.1 ) 845.1 Mortgage and other asset backed securities Current 0.8 — — 0.8 Non-current 642.6 1.1 (0.8 ) 642.3 Total marketable debt securities $ 5,172.5 $ 2.3 $ (2.8 ) $ 5,173.0 Marketable equity securities, non-current $ 11.8 $ 1.8 $ (4.4 ) $ 14.4 As of December 31, 2016 (In millions) Fair Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Corporate debt securities Current $ 1,408.6 $ 0.2 $ (0.6 ) $ 1,409.0 Non-current 1,255.2 1.2 (4.7 ) 1,258.7 Government securities Current 1,156.0 0.2 (0.3 ) 1,156.1 Non-current 1,016.5 0.5 (3.4 ) 1,019.4 Mortgage and other asset backed securities Current 4.0 — — 4.0 Non-current 557.7 0.8 (2.2 ) 559.1 Total marketable debt securities $ 5,398.0 $ 2.9 $ (11.2 ) $ 5,406.3 Marketable equity securities, non-current $ 24.9 $ 0.7 $ (9.3 ) $ 33.5 Summary of Contractual Maturities: Available-for-Sale Securities The estimated fair value and amortized cost of our marketable debt securities available-for-sale by contractual maturity are summarized as follows: As of December 31, 2017 As of December 31, 2016 (In millions) Estimated Fair Value Amortized Cost Estimated Fair Value Amortized Cost Due in one year or less $ 2,115.2 $ 2,116.0 $ 2,568.6 $ 2,569.1 Due after one year through five years 2,730.0 2,730.0 2,552.6 2,559.7 Due after five years 327.3 327.0 276.8 277.5 Total available-for-sale securities $ 5,172.5 $ 5,173.0 $ 5,398.0 $ 5,406.3 The average maturity of our marketable debt securities available-for-sale as of December 31, 2017 and 2016 was 17 months and 12 months, respectively. Proceeds from Marketable Debt Securities The proceeds from maturities and sales of marketable debt securities and resulting realized gains and losses are summarized as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Proceeds from maturities and sales $ 5,565.9 $ 7,378.9 $ 4,063.0 Realized gains $ 3.0 $ 3.3 $ 1.5 Realized losses $ 22.4 $ 4.3 $ 3.5 Realized losses for the year ended December 31, 2017 primarily relate to impairments recognized on certain of our available-for-sale marketable debt securities as we intend to sell these securities as a result of the Tax Cuts and Jobs Act of 2017 (the 2017 Tax Act), sales of agency mortgage-backed securities, corporate bonds and government securities. Realized losses for the year ended December 31, 2016 primarily relate to sales of corporate bonds, agency mortgage-backed securities and other asset-backed securities. Realized losses for the year ended December 31, 2015 primarily relate to sales of corporate bonds, agency mortgage-backed securities and other asset-backed securities. Strategic Investments As of December 31, 2017 and 2016 , our strategic investment portfolio was comprised of investments totaling $85.8 million and $99.9 million , respectively, which are included in investments and other assets in our consolidated balance sheets. Our strategic investment portfolio includes investments in equity securities of certain biotechnology companies and investments in venture capital funds where the underlying investments are in equity securities of biotechnology companies. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Foreign Currency Forward Contracts - Hedging Instruments Due to the global nature of our operations, portions of our revenues and operating expenses are recorded in currencies other than the U.S. dollar. The value of revenues and operating expenses measured in U.S. dollars is therefore subject to changes in foreign currency exchange rates. In order to mitigate these changes we use foreign currency forward contracts to lock in exchange rates associated with a portion of our forecasted international revenues and operating expenses. Foreign currency forward contracts in effect as of December 31, 2017 and 2016 had durations of 1 to 21 months and 1 to 18 months , respectively. These contracts have been designated as cash flow hedges and accordingly, to the extent effective, any unrealized gains or losses on these foreign currency forward contracts are reported in accumulated other comprehensive income (loss) (referred to as AOCI in the tables below). Realized gains and losses for the effective portion of such contracts are recognized in revenues when the sale of product in the currency being hedged is recognized and in operating expenses when the expense in the currency being hedged is recorded. To the extent ineffective, hedge transaction gains and losses are reported in other income (expense), net. The notional value of foreign currency forward contracts that were entered into to hedge forecasted revenues and operating expenses is summarized as follows: Notional Amount As of December 31, Foreign Currency: (In millions) 2017 2016 Euro $ 1,875.6 $ 871.7 British pound sterling 150.9 — Swiss francs 88.7 — Canadian dollar 83.5 — Total foreign currency forward contracts $ 2,198.7 $ 871.7 The pre-tax portion of the fair value of these foreign currency forward contracts that was included in accumulated other comprehensive income (loss) in total equity reflected net losses of $113.0 million for the year ended December 31, 2017 , and net gains of $49.8 million and $1.8 million for the years ended December 31, 2016 and 2015 , respectively. We expect the net losses of $113.0 million to be settled over the next 21 months , of which $98.5 million is expected to be settled over the next 12 months , with any amounts in accumulated other comprehensive income (loss) to be reported as an adjustment to revenue or operating expense. We consider the impact of our and our counterparties’ credit risk on the fair value of the contracts as well as the ability of each party to execute its contractual obligations. As of December 31, 2017 and 2016 , credit risk did not change the fair value of our foreign currency forward contracts. The following table summarizes the effect of foreign currency forward contracts designated as hedging instruments in our consolidated statements of income: For the Years Ended December 31, Net Gains/(Losses) Reclassified from AOCI into Operating Income (Effective Portion) (in millions) Net Gains/(Losses) Recognized into Net Income (Ineffective Portion) (in millions) Location 2017 2016 2015 Location 2017 2016 2015 Revenues $ (32.5 ) $ 5.3 $ 173.2 Other income (expense) $ 8.9 $ 2.9 $ 4.9 Operating expenses $ 0.6 $ (1.5 ) $ — Other income (expense) $ (0.2 ) $ 0.1 $ — Interest Rate Contracts - Hedging Instruments We have entered into interest rate lock contracts or interest rate swap contracts on certain borrowing transactions to manage our exposure to interest rate changes and to reduce our overall cost of borrowing. Interest Rate Lock Contracts During 2015 we entered into treasury rate locks, with an aggregated notional amount of $1.1 billion , which were designated as cash flow hedges to hedge against changes in the 10-year and 30-year U.S. treasury interest rates that could have impacted our anticipated debt offering. In connection with the issuance of our 4.05% and 5.20% Senior Notes, as described in Note 12, Indebtedness , to these consolidated financial statements, we settled the treasury rate locks and realized an $8.5 million gain. As the hedging relationship was effective, the gain was recorded in AOCI and will be recognized in other income (expense), net over the life of the 4.05% and 5.20% Senior Notes. Interest Rate Swap Contracts In connection with the issuance of our 2.90% Senior Notes, as described in Note 12, Indebtedness , to these consolidated financial statements, we entered into interest rate swaps with an aggregate notional amount of $675.0 million , which expire on September 15, 2020. The interest rate swap contracts are designated as hedges of the fair value changes in the 2.90% Senior Notes attributable to changes in interest rates. Since the specific terms and notional amount of the swaps match the debt being hedged, it is assumed to be a highly effective hedge and all changes in the fair value of the swaps are recorded as a component of the 2.90% Senior Notes with no net impact recorded in income. Any net interest payments made or received on the interest rate swap contracts are recognized as a component of interest expense in our consolidated statements of income. Foreign Currency Forward Contracts - Other Derivatives We also enter into other foreign currency forward contracts, usually with durations of one month or less, to mitigate the foreign currency risk related to certain balance sheet positions. We have not elected hedge accounting for these transactions. The aggregate notional amount of these outstanding foreign currency contracts was $564.9 million and $902.1 million as of December 31, 2017 and 2016 , respectively. Net gains of $4.5 million and net losses of $29.2 million and $23.8 million related to these contracts were recognized as a component of other income (expense), net, for the years ended December 31, 2017 , 2016 and 2015 , respectively. Summary of Derivatives While certain of our derivatives are subject to netting arrangements with our counterparties, we do not offset derivative assets and liabilities in our consolidated balance sheets. The following table summarizes the fair value and presentation in our consolidated balance sheets of our outstanding derivatives including those designated as hedging instruments: (In millions) Balance Sheet Location Fair Value Hedging Instruments: Asset derivatives Other current assets $ 0.7 Investments and other assets $ 0.2 Liability derivatives Accrued expenses and other $ 84.7 Other long-term liabilities 23.6 Other Derivatives: Asset derivatives Other current assets $ 1.8 Liability derivatives Accrued expenses and other $ 3.0 (In millions) Balance Sheet Location Fair Value Hedging Instruments: Asset derivatives Other current assets $ 50.4 Investments and other assets $ 6.6 Liability derivatives Other long-term liabilities $ 4.6 Other Derivatives: Asset derivatives Other current assets $ 4.0 Liability derivatives Accrued expenses and other $ 9.0 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at historical cost, net of accumulated depreciation. Components of property, plant and equipment, net are summarized as follows: As of December 31, (In millions) 2017 2016 Land $ 141.2 $ 137.8 Buildings 1,213.6 1,107.8 Leasehold improvements 80.6 123.7 Machinery and equipment 1,207.7 1,105.8 Computer software and hardware 767.1 746.8 Furniture and fixtures 55.3 60.6 Construction in progress 1,276.0 658.6 Total cost 4,741.5 3,941.1 Less: accumulated depreciation (1,559.1 ) (1,439.3 ) Total property, plant and equipment, net $ 3,182.4 $ 2,501.8 Depreciation expense totaled $266.3 million , $309.3 million and $217.9 million for 2017 , 2016 and 2015 , respectively. For 2017 , 2016 and 2015 , we capitalized interest costs related to construction in progress totaling approximately $30.7 million , $12.9 million and $10.4 million , respectively. The increase in capitalized interest costs is primarily due to the construction of our Solothurn, Switzerland facility, as discussed below. Solothurn, Switzerland Facility During the first quarter of 2016 we purchased land in Solothurn, Switzerland for 64.4 million Swiss Francs (approximately $62.5 million ) and are building a large-scale biologics manufacturing facility at this site. We expect this facility to be operational by the end of the decade. Upon completion, the facility will include 393,000 square feet related to a large-scale biologics manufacturing facility, 290,000 square feet of warehouse, utilities and support space and 51,000 square feet of administrative space. As of December 31, 2017 and 2016 , we had approximately $1.2 billion and $481.5 million , respectively, capitalized as construction in progress related to this facility. Research Triangle Park Facility Purchase In August 2015 we completed the purchase of a drug product manufacturing facility and supporting infrastructure in Research Triangle Park (RTP), NC from Eisai Inc. (Eisai). The $104.8 million purchase price was comprised of $58.6 million for buildings, $25.9 million for machinery and equipment and $20.3 million for land. In August 2015 we also amended our existing 10 -year lease related to Eisai's oral solid dose products manufacturing facility in RTP, NC. The amended lease provided for a three -year term and our agreement to purchase the facility upon expiration of the lease term or at Eisai's option, their completion of certain activities at the facility. Upon signing, we recognized assets along with a corresponding financing obligation in our consolidated balance sheet of $20.3 million , the net present value of the future minimum lease payments. These assets were recorded as a component of buildings and machinery and equipment. In December 2017, upon the earlier than expected completion of Eisai's activities, we completed our purchase of this facility for $17.2 million . |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Our indebtedness is summarized as follows: As of December 31, (In millions) 2017 2016 Current portion: Notes payable to Fumedica $ 3.2 $ 3.0 Financing arrangement for the purchase of the RTP facility — 1.7 Current portion of notes payable and other financing arrangements $ 3.2 $ 4.7 Non-current portion: 6.875% Senior Notes due March 1, 2018 $ — $ 558.5 2.900% Senior Notes due September 15, 2020 1,482.4 1,485.3 3.625% Senior Notes due September 15, 2022 994.3 993.2 4.050% Senior Notes due September 15, 2025 1,736.3 1,734.8 5.200% Senior Notes due September 15, 2045 1,722.0 1,721.5 Notes payable to Fumedica — 3.0 Financing arrangement for the purchase of the RTP facility — 16.4 Non-current portion of notes payable and other financing arrangements $ 5,935.0 $ 6,512.7 6.875% Senior Notes due March 1, 2018 On March 4, 2008, we issued $550.0 million aggregate principal amount of 6.875% Senior Notes due March 1, 2018 at 99.184% of par. These notes were senior unsecured obligations. We also entered into interest rate swap contracts where we received a fixed rate and paid a variable rate. These contracts were terminated in December 2008. Upon termination of these contracts, the carrying amount of these notes were increased by $62.8 million with this amount being amortized using the effective interest rate method over the remaining life of the Senior Notes and recognized as a reduction of interest expense. In November 2017 we redeemed these notes prior to their maturity and recognized a net charge of $5.2 million upon the extinguishment of these notes. This charge, which was recognized in interest expense in other income (expense) net in our consolidated statements of income for the year ended December 31, 2017 , reflects the payment of a $7.7 million early call premium and the write off of remaining unamortized original debt issuance costs and discount balances, partially offset by a $2.9 million gain related to the remaining unamortized balance of the interest rate swap liability discussed above. 2015 Senior Notes The following is a summary of our principal indebtedness as of December 31, 2017 : • $1.5 billion aggregate principal amount of 2.90% Senior Notes due September 15, 2020, valued at 99.792% of par; • $1.0 billion aggregate principal amount of 3.625% Senior Notes due September 15, 2022, valued at 99.920% of par; • $1.75 billion aggregate principal amount of 4.05% Senior Notes due September 15, 2025, valued at 99.764% of par; and • $1.75 billion aggregate principal amount of 5.20% Senior Notes due September 15, 2045, valued at 99.294% of par. The costs associated with these offerings of approximately $47.5 million have been recorded as a reduction to the carrying amount of the debt in our consolidated balance sheet. These costs along with the discounts will be amortized as additional interest expense using the effective interest rate method over the period from issuance through maturity. These notes are senior unsecured obligations. These Senior Notes may be redeemed at our option at any time at 100% of the principal amount plus accrued interest and a specified make-whole amount. These Senior Notes contain a change of control provision that may require us to purchase the notes at a price equal to 101% of the principal amount plus accrued and unpaid interest to the date of purchase under certain circumstances. In connection with the 2.90% Senior Notes offering due in 2020, we entered into interest rate swap contracts. The carrying value of the 2.90% Senior Notes includes approximately $10.1 million related to changes in the fair value of these contracts. For additional information on our interest rate contracts, please read Note 10, Derivative Instruments, to these consolidated financial statements. Notes Payable to Fumedica In connection with our 2006 distribution agreement with Fumedica, we issued notes totaling 61.4 million Swiss Francs that are payable to Fumedica in varying amounts from June 2008 through June 2018. Our remaining note payable to Fumedica, payable in June 2018, had a carrying value of 3.1 million Swiss Francs ( $3.2 million ) and 6.2 million Swiss Francs ( $6.0 million ) as of December 31, 2017 and 2016 , respectively. Credit Facility In August 2015 we entered into a $1.0 billion , five -year senior unsecured revolving credit facility under which we are permitted to draw funds for working capital and general corporate purposes. The terms of the revolving credit facility include a financial covenant that requires us not to exceed a maximum consolidated leverage ratio. As of December 31, 2017 , we had no outstanding borrowings and were in compliance with all covenants under this facility. Financing Arrangement During 2015 we recorded a financing obligation in relation to the amendment of our lease agreement for Eisai's oral solid dose products manufacturing facility in RTP, NC. In December 2017 we completed the purchase of this facility for $17.2 million and derecognized the remaining unamortized portion of the financing obligation from our consolidated balance sheet as of that date. For additional information on this transaction, please read Note 11, Property, Plant and Equipment, to these consolidated financial statements. Debt Maturity The total gross payments, excluding our financing arrangement, due under our debt arrangements are as follows: (In millions) As of December 31, 2017 2018 $ 3.2 2019 — 2020 1,500.0 2021 — 2022 1,000.0 2023 and thereafter 3,500.0 Total $ 6,003.2 The fair value of our debt is disclosed in Note 8, Fair Value Measurements, to these consolidated financial statements. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | Equity Preferred Stock We have 8.0 million shares of Preferred Stock authorized, of which 1.75 million shares are authorized as Series A, 1.0 million shares are authorized as Series X junior participating and 5.25 million shares are undesignated. Shares may be issued without a vote or action of shareholders from time to time in classes or series with the designations, powers, preferences, and the relative, participating, optional or other special rights of the shares of each such class or series and any qualifications, limitations or restrictions thereon as set forth in the instruments governing such shares. Any such Preferred Stock may rank prior to common stock as to dividend rights, liquidation preference or both, and may have full or limited voting rights and may be convertible into shares of common stock. No shares of Preferred Stock were issued and outstanding during 2017 , 2016 and 2015 . Common Stock The following table describes the number of shares authorized, issued and outstanding of our common stock as of December 31, 2017 and 2016 : As of December 31, 2017 As of December 31, 2016 (In millions) Authorized Issued Outstanding Authorized Issued Outstanding Common stock 1,000.0 235.3 211.5 1,000.0 238.5 215.9 Share Repurchases In July 2016 our Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock (2016 Share Repurchase Program). This authorization does not have an expiration date. All share repurchases under this authorization will be retired. Under this authorization, we repurchased and retired 3.7 million and 3.3 million shares of common stock during the years ended December 31, 2017 and 2016 , respectively, at a cost of $1.0 billion for each year. As of December 31, 2017 , approximately $3.0 billion remains available for share repurchases under this authorization. In May 2015 our Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock (2015 Share Repurchase Program). All shares repurchased under this authorization were retired. Our 2015 Share Repurchase Program was completed as of December 31, 2015. Under this authorization, we repurchased and retired approximately 16.8 million shares of common stock at a cost of $5.0 billion during the year ended December 31, 2015 . In February 2011 our Board of Directors authorized a program to repurchase up to 20.0 million shares of our common stock (2011 Share Repurchase Program). Shares repurchased under this authorization were principally used to offset common stock issuances under our share-based compensation programs. Our 2011 Share Repurchase Program was completed as of March 31, 2017. Under this authorization, we repurchased 1.2 million shares of common stock at a cost of $365.4 million during the year ended December 31, 2017 . We did not repurchase any shares of common stock under this authorization during the years ended December 31, 2016 and 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss), net of tax by component: (In millions) Unrealized Gains (Losses) on Securities Available for Sale, net of tax Unrealized Gains (Losses) on Cash Flow Hedges, net of tax Unfunded Status of Postretirement Benefit Plans, net of tax Translation Adjustments Total Balance, December 31, 2016 $ (10.8 ) $ 57.8 $ (32.7 ) $ (334.2 ) $ (319.9 ) Other comprehensive income (loss) before reclassifications (3.5 ) (193.8 ) (4.1 ) 158.7 (42.7 ) Amounts reclassified from accumulated other comprehensive income (loss) 12.7 31.5 — — 44.2 Net current period other comprehensive income (loss) 9.2 (162.3 ) (4.1 ) 158.7 1.5 Balance, December 31, 2017 $ (1.6 ) $ (104.5 ) $ (36.8 ) $ (175.5 ) $ (318.4 ) (In millions) Unrealized Gains (Losses) on Securities Available for Sale, net of tax Unrealized Gains (Losses) on Cash Flow Hedges, net of tax Unfunded Status of Postretirement Benefit Plans, net of tax Translation Adjustments Total Balance, December 31, 2015 $ (0.8 ) $ 10.2 $ (37.8 ) $ (195.6 ) $ (224.0 ) Other comprehensive income (loss) before reclassifications (10.6 ) 51.6 5.1 (138.6 ) (92.5 ) Amounts reclassified from accumulated other comprehensive income (loss) 0.6 (4.0 ) — — (3.4 ) Net current period other comprehensive income (loss) (10.0 ) 47.6 5.1 (138.6 ) (95.9 ) Balance, December 31, 2016 $ (10.8 ) $ 57.8 $ (32.7 ) $ (334.2 ) $ (319.9 ) (In millions) Unrealized Gains (Losses) on Securities Available for Sale, net of tax Unrealized Gains (Losses) on Cash Flow Hedges, net of tax Unfunded Status of Postretirement Benefit Plans, net of tax Translation Adjustments Total Balance, December 31, 2014 $ (0.4 ) $ 71.7 $ (31.6 ) $ (99.2 ) $ (59.5 ) Other comprehensive income (loss) before reclassifications (1.7 ) 110.8 (6.2 ) (96.4 ) 6.5 Amounts reclassified from accumulated other comprehensive income (loss) 1.3 (172.3 ) — — (171.0 ) Net current period other comprehensive income (loss) (0.4 ) (61.5 ) (6.2 ) (96.4 ) (164.5 ) Balance, December 31, 2015 $ (0.8 ) $ 10.2 $ (37.8 ) $ (195.6 ) $ (224.0 ) The following table summarizes the amounts reclassified from accumulated other comprehensive income: (In millions) Income Statement Location Amounts Reclassified from Accumulated Other Comprehensive Income For the Years Ended December 31, 2017 2016 2015 Gains (losses) on securities available for sale Other income (expense) $ (19.5 ) $ (0.9 ) $ (2.0 ) Income tax benefit (expense) 6.8 0.3 0.7 Gains (losses) on cash flow hedges Revenues (32.5 ) 5.3 173.2 Operating expenses 0.6 (1.5 ) — Other income (expense) 0.3 0.2 (0.1 ) Income tax benefit (expense) 0.1 — (0.8 ) Total reclassifications, net of tax $ (44.2 ) $ 3.4 $ 171.0 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic and diluted earnings per share are calculated as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Numerator: Net income attributable to Biogen Inc. $ 2,539.1 $ 3,702.8 $ 3,547.0 Denominator: Weighted average number of common shares outstanding 212.6 218.4 230.7 Effect of dilutive securities: Stock options and employee stock purchase plan 0.1 0.1 0.1 Time-vested restricted stock units 0.2 0.2 0.3 Market stock units 0.1 0.1 0.1 Dilutive potential common shares 0.4 0.4 0.5 Shares used in calculating diluted earnings per share 213.0 218.8 231.2 Amounts excluded from the calculation of net income per diluted share because their effects were anti-dilutive were insignificant. Earnings per share for the years ended December 31, 2017 , 2016 and 2015 reflects, on a weighted average basis, the repurchase of 3.7 million shares, 0.7 million shares and 4.6 million shares, respectively, of our common stock under our share repurchase authorizations. The adjustments related to the spin-off of our hemophilia business did not have a material impact on the potentially dilutive securities to be considered in the calculation of diluted earnings per share of common stock. |
Share-based Payments
Share-based Payments | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Payments | Share-based Payments Share-based Compensation Expense The following table summarizes share-based compensation expense included in our consolidated statements of income: For the Years Ended December 31, (In millions) 2017 2016 2015 Research and development $ 74.0 $ 84.5 $ 88.6 Selling, general and administrative 95.7 121.7 127.3 Restructuring charges — (1.8 ) (8.6 ) Subtotal 169.7 204.4 207.3 Capitalized share-based compensation costs (9.6 ) (14.6 ) (11.0 ) Share-based compensation expense included in total cost and expenses 160.1 189.8 196.3 Income tax effect (42.8 ) (54.0 ) (55.8 ) Share-based compensation expense included in net income attributable to Biogen Inc. $ 117.3 $ 135.8 $ 140.5 The following table summarizes share-based compensation expense associated with each of our share-based compensation programs: For the Years Ended December 31, (In millions) 2017 2016 2015 Market stock units $ 22.4 $ 38.4 $ 38.1 Time-vested restricted stock units 107.3 120.0 119.0 Cash settled performance units 18.4 16.3 22.4 Performance units 12.3 18.6 13.9 Employee stock purchase plan 9.3 11.1 13.9 Subtotal 169.7 204.4 207.3 Capitalized share-based compensation costs (9.6 ) (14.6 ) (11.0 ) Share-based compensation expense included in total cost and expenses $ 160.1 $ 189.8 $ 196.3 As of December 31, 2017 , unrecognized compensation cost related to unvested share-based compensation was approximately $168.0 million , net of estimated forfeitures. We expect to recognize the cost of these unvested awards over a weighted-average period of 1.9 years. Spin-off Related Equity Adjustments Pursuant to an employee matters agreement entered into in connection with the spin-off of our hemophilia business and the provisions of our existing share-based compensation arrangements, we made certain adjustments to the number and terms of our outstanding stock options, RSUs, CSPUs and other share-based awards to preserve the intrinsic value of the awards immediately before and after the spin-off. For purposes of the vesting of these equity awards, continued employment or service with Biogen or with Bioverativ was treated as continued employment for purposes of both Biogen’s and Bioverativ’s equity awards with the outstanding awards continuing to vest over their respective original vesting periods. Outstanding unvested awards for employees transferring to Bioverativ were converted to unvested Bioverativ awards. Adjustments to the number of our share-based compensation awards were made using an adjustment ratio based upon the weighted-average closing price of our common stock for the 10 calendar days prior to the effective date of the spin-off and the volume-weighted average prices for the 10 calendar days of our common stock following the effective date of the spin-off. For stock options, the exercise prices of the awards were modified to maintain the pre-spin intrinsic value of the awards in relation to the post-spin stock price of Biogen. The difference between the fair value of the awards based upon the adjustment ratio and the opening price on the distribution date was not material. Share-Based Compensation Plans We have three share-based compensation plans pursuant to which awards are currently being made: (i) the Biogen Inc. 2006 Non-Employee Directors Equity Plan (2006 Directors Plan); (ii) the Biogen Inc. 2017 Omnibus Equity Plan (2017 Omnibus Equity Plan); and (iii) the Biogen Inc. 2015 Employee Stock Purchase Plan (2015 ESPP). Directors Plan In May 2006 our shareholders approved the 2006 Directors Plan for share-based awards to our directors. Awards granted from the 2006 Directors Plan may include stock options, shares of restricted stock, RSUs, stock appreciation rights and other awards in such amounts and with such terms and conditions as may be determined by a committee of our Board of Directors, subject to the provisions of the plan. We have reserved a total of 1.6 million shares of common stock for issuance under the 2006 Directors Plan. The 2006 Directors Plan provides that awards other than stock options and stock appreciation rights will be counted against the total number of shares reserved under the plan in a 1.5-to-1 ratio. In June 2015 our shareholders approved an amendment to extend the term of the 2006 Directors Plan until June 2025. Omnibus Plan In June 2017 our shareholders approved the 2017 Omnibus Equity Plan for share-based awards to our employees. Awards granted from the 2017 Omnibus Equity Plan may include stock options, shares of restricted stock, RSUs, performance shares, stock appreciation rights and other awards in such amounts and with such terms and conditions as may be determined by a committee of our Board of Directors, subject to the provisions of the plan. Shares of common stock available for grant under the 2017 Omnibus Equity Plan consist of 8.0 million shares reserved for this purpose, plus shares of common stock that remained available for grant under our 2008 Omnibus Equity Plan as of June 7, 2017 or that could again become available for grant if outstanding awards under the 2008 Omnibus Equity Plan as of June 7, 2017 are cancelled, surrendered or terminated in whole or in part. The 2017 Omnibus Equity Plan provides that awards other than stock options and stock appreciation rights will be counted against the total number of shares available under the plan in a 1.5-to-1 ratio. We have not made any awards pursuant to the 2008 Omnibus Equity Plan since our shareholders approved the 2017 Omnibus Equity Plan, and do not intend to make any awards pursuant to the 2008 Omnibus Equity Plan in the future, except that unused shares under the 2008 Omnibus Equity Plan have been carried over for use under the 2017 Omnibus Equity Plan. Stock Options We currently do not grant stock options to our employees or directors. Outstanding stock options previously granted to our employees and directors generally have a ten-year term and vest over a period of between one and four years, provided the individual continues to serve at Biogen through the vesting dates. Options granted under all plans are exercisable at a price per share not less than the fair market value of the underlying common stock on the date of grant. The estimated fair value of options, including the effect of estimated forfeitures, is recognized over the options’ vesting periods. The fair value of the stock options granted in 2010 was estimated as of the date of grant using a Black-Scholes option valuation model. There were no grants of stock options made in 2017 , 2016 and 2015 . As of December 31, 2017 , all outstanding options were exercisable. The expected life of options granted is derived using assumed exercise rates based on historical exercise patterns and represents the period of time that options granted are expected to be outstanding. Expected stock price volatility is based upon implied volatility for our exchange-traded options and other factors, including historical volatility. After assessing all available information on either historical volatility, implied volatility or both, we have concluded that a combination of both historical and implied volatility provides the best estimate of expected volatility. The risk-free interest rate used is determined by the market yield curve based upon risk-free interest rates established by the Federal Reserve, or non-coupon bonds that have maturities equal to the expected term. The dividend yield of zero is based upon the fact that we have not historically granted cash dividends, and do not expect to issue dividends in the foreseeable future. Stock options granted prior to January 1, 2006 were valued based on the grant date fair value of those awards, using the Black-Scholes option pricing model, as previously calculated for pro-forma disclosures. The following table summarizes our stock option activity: Shares Weighted Average Exercise Price Outstanding at December 31, 2016 66,000 $ 54.06 Hemophilia spin-off adjustment — $ — Granted — $ — Exercised (14,000 ) $ 50.89 Cancelled (10,000 ) $ 55.11 Outstanding at December 31, 2017 42,000 $ 53.83 The total intrinsic values of options exercised in 2017 , 2016 and 2015 totaled $3.4 million , $10.4 million and $38.0 million , respectively. The aggregate intrinsic values of options outstanding as of December 31, 2017 totaled $11.1 million . The weighted average remaining contractual term for options outstanding as of December 31, 2017 was 1.3 years. The following table summarizes the amount of tax benefit realized for stock options and cash received from the exercise of stock options: For the Years Ended December 31, (In millions) 2017 2016 2015 Tax benefit realized for stock options $ 3.4 $ 4.0 $ 11.9 Cash received from the exercise of stock options $ 0.7 $ 2.2 $ 6.3 Market Stock Units (MSUs) MSUs awarded to employees prior to 2014 vested in four equal annual increments beginning on the first anniversary of the grant date. Participants may ultimately earn between 0% and 150% of the target number of units granted based on actual stock performance. MSUs awarded to employees in 2014 and thereafter vest in three equal annual increments beginning on the first anniversary of the grant date, and participants may ultimately earn between 0% and 200% of the target number of units granted based on actual stock performance. The vesting of these awards is subject to the respective employee’s continued employment. The number of MSUs granted represents the target number of units that are eligible to be earned based on the attainment of certain market-based criteria involving our stock price. The number of MSUs earned is calculated at each annual anniversary from the date of grant over the respective vesting periods, resulting in multiple performance periods. Accordingly, additional MSUs may be issued or currently outstanding MSUs may be cancelled upon final determination of the number of awards earned. Compensation expense, including the effect of forfeitures, is recognized over the applicable service period. The following table summarizes our MSU activity: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 230,000 $ 355.60 Hemophilia spin-off adjustment 4,000 $ — Granted (a) 94,000 $ 382.59 Vested (112,000 ) $ 311.17 Forfeited (45,000 ) $ 372.35 Unvested at December 31, 2017 171,000 $ 370.83 (a) MSUs granted in 2017 include approximately 9,000 MSUs issued in 2017 based upon the attainment of performance criteria set for 2013, in relation to awards granted in that year. MSUs granted during 2017 also include awards granted in conjunction with our annual awards made in February 2017 and MSUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. MSUs granted in 2017 reflect an adjustment based upon the final performance multiplier in relation to shares granted in 2016, 2015 and 2014. We value grants of MSUs using a lattice model with a Monte Carlo simulation. This valuation methodology utilizes several key assumptions, including the 60 calendar day average closing stock price on grant date for MSUs awarded prior to 2014, the 30 calendar day average closing stock price on the date of grant for MSUs awarded in 2014 and thereafter, expected volatility of our stock price, risk-free rates of return and expected dividend yield. The assumptions used in our valuation are summarized as follows: For the Years Ended December 31, 2017 2016 2015 Expected dividend yield —% —% —% Range of expected stock price volatility 33.0% - 35.6% 38.2% - 40.7% 31.0% - 33.2% Range of risk-free interest rates 0.9% - 1.6% 0.6% - 0.9% 0.2% - 1.0% 30 calendar day average stock price on grant date $263.18 - $267.88 $260.67 - $304.86 $277.35 - $426.27 Weighted-average per share grant date fair value $382.59 $328.03 $493.43 The fair values of MSUs vested in 2017 , 2016 and 2015 totaled $31.4 million , $39.3 million and $109.0 million , respectively. Cash Settled Performance Units (CSPUs) CSPUs awarded to employees vest in three equal annual increments beginning on the first anniversary of the grant date. The vesting of these awards is subject to the respective employee’s continued employment with such awards settled in cash. The number of CSPUs granted represents the target number of units that are eligible to be earned based on the attainment of certain performance measures established at the beginning of the performance period, which ends on December 31 of each year. Participants may ultimately earn between 0% and 200% of the target number of units granted based on the degree of actual performance metric achievement. Accordingly, additional CSPUs may be issued or currently outstanding CSPUs may be cancelled upon final determination of the number of units earned. CSPUs awarded prior to 2014 are settled in cash based on the 60 calendar day average closing stock price through each vesting date once the actual vested and earned number of units is known. CSPUs awarded in 2014 and thereafter will be settled in cash based on the 30 calendar day average closing stock price through each vesting date, once the actual vested and earned number of units is known. Since no shares are issued, these awards do not dilute equity. Compensation expense, including the effect of forfeitures, is recognized over the applicable service period. The following table summarizes our CSPU activity: Shares Unvested at December 31, 2016 122,000 Hemophilia spin-off adjustment 3,000 Granted (a) 83,000 Vested (69,000 ) Forfeited (34,000 ) Unvested at December 31, 2017 105,000 (a) CSPUs granted in 2017 include awards granted in conjunction with our annual awards made in February 2017 and CSPUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. CSPUs granted in 2017 also include CSPUs issued in 2017 based upon the attainment of performance criteria set for 2016 in relation to shares granted in 2016. The cash paid in settlement of CSPUs vested in 2017 , 2016 and 2015 totaled $16.6 million , $31.9 million and $79.8 million , respectively. Performance-vested Restricted Stock Units (PUs) PUs are granted to certain employees in the form of RSUs that may be settled in cash or shares of our common stock at the sole discretion of the Compensation and Management Development Committee of our Board of Directors. These awards are structured and accounted for the same way as the CSPUs, and vest in three equal annual increments beginning on the first anniversary of the grant date. The number of PUs granted represents the target number of units that are eligible to be earned based on the attainment of certain performance measures established at the beginning of the performance period, which ends on December 31 of each year. Participants may ultimately earn between 0% and 200% of the target number of units granted based on the degree of actual performance metric achievement. Accordingly, additional PUs may be issued or currently outstanding PUs may be cancelled upon final determination of the number of units earned. PUs settling in cash are based on the 30 calendar day average closing stock price through each vesting date once the actual vested and earned number of units is known. Compensation expense, including the effect of forfeitures, is recognized over the applicable service period. The following table summarizes our PU activity: Shares Unvested at December 31, 2016 110,000 Hemophilia spin-off adjustment 3,000 Granted (a) 40,000 Vested (43,000 ) Forfeited (19,000 ) Unvested at December 31, 2017 91,000 (a) PUs granted in 2017 include awards granted in conjunction with our annual awards made in February 2017 and PUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. During 2015 32,000 PUs were converted to share settlements, of which approximately 11,000 shares were vested and issued. All other PUs that vested in 2015 were settled in cash totaling $12.4 million . All PUs that vested in 2017 and 2016 were settled in cash totaling $11.5 million and $8.1 million , respectively. Time-Vested Restricted Stock Units (RSUs) RSUs awarded to employees generally vest no sooner than one-third per year over three years on the anniversary of the date of grant, or upon the third anniversary of the date of the grant, provided the employee remains continuously employed with us, except as otherwise provided in the plan. Shares of our common stock will be delivered to the employee upon vesting, subject to payment of applicable withholding taxes. RSUs awarded to directors for service on our Board of Directors vest on the first anniversary of the date of grant, provided in each case that the director continues to serve on our Board of Directors through the vesting date. Shares of our common stock will be delivered to the director upon vesting and are not subject to any withholding taxes. The fair value of all RSUs is based on the market value of our stock on the date of grant. Compensation expense, including the effect of forfeitures, is recognized over the applicable service period. The following table summarizes our RSU activity: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 888,000 $ 303.49 Hemophilia spin-off adjustment 12,000 $ — Granted (a) 464,000 $ 293.41 Vested (350,000 ) $ 308.04 Forfeited (182,000 ) $ 292.57 Unvested at December 31, 2017 832,000 $ 291.85 (a) RSUs granted in 2017 primarily represent RSUs granted in conjunction with our annual awards made in February 2017 and awards made in conjunction with the hiring of new employees. RSUs granted in 2017 also include approximately 11,000 RSUs granted to our Board of Directors. RSUs granted in 2016 and 2015 had weighted average grant date fair values of $268.52 and $388.88 , respectively. The fair values of RSUs vested in 2017 , 2016 and 2015 totaled $100.0 million , $104.6 million and $239.7 million , respectively. Employee Stock Purchase Plan (ESPP) In June 2015 our shareholders approved the 2015 ESPP. The 2015 ESPP, which became effective on July 1, 2015, replaced the Biogen Idec Inc. 1995 ESPP (1995 ESPP), which expired on June 30, 2015. The maximum aggregate number of shares of our common stock that may be purchased under the 2015 ESPP is 6.2 million . The following table summarizes our ESPP activity: For the Years Ended December 31, (In millions, except share amounts) 2017 2016 2015 Shares issued under the 2015 ESPP 167,000 190,000 78,000 Shares issued under the 1995 ESPP — — 98,000 Cash received under the 2015 ESPP $ 39.8 $ 41.5 $ 19.3 Cash received under the 1995 ESPP $ — $ — $ 30.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Expense Income before income tax provision and the income tax expense consist of the following: For the Years Ended December 31, (In millions) 2017 2016 2015 Income before income taxes (benefit): Domestic $ 3,540.4 $ 3,655.4 $ 3,386.7 Foreign 1,588.4 1,277.6 1,380.6 Total $ 5,128.8 $ 4,933.0 $ 4,767.3 Income tax expense (benefit): Current: Federal $ 2,201.4 $ 1,304.3 $ 1,214.1 State 57.0 55.1 38.6 Foreign 108.6 52.9 54.5 Total 2,367.0 1,412.3 1,307.2 Deferred: Federal $ 241.0 $ (125.6 ) $ (129.6 ) State 9.9 (3.8 ) (1.9 ) Foreign (159.2 ) (45.6 ) (14.1 ) Total 91.7 (175.0 ) (145.6 ) Total income tax expense $ 2,458.7 $ 1,237.3 $ 1,161.6 Tax Reform The 2017 Tax Act, which was signed into law on December 22, 2017, has resulted in significant changes to the U.S. corporate income tax system. These changes include a federal statutory rate reduction from 35% to 21% , the elimination or reduction of certain domestic deductions and credits and limitations on the deductibility of interest expense and executive compensation. The 2017 Tax Act also transitions international taxation from a worldwide system to a modified territorial system and includes base erosion prevention measures on non-U.S. earnings, which has the effect of subjecting certain earnings of our foreign subsidiaries to U.S. taxation as global intangible low-taxed income (GILTI). These changes are effective beginning in 2018. The 2017 Tax Act also includes a one-time mandatory deemed repatriation tax on accumulated foreign subsidiaries' previously untaxed foreign earnings (the Transition Toll Tax). Changes in tax rates and tax laws are accounted for in the period of enactment. Therefore, during the year ended December 31, 2017, we recorded a charge totaling $1,173.6 million related to our current estimate of the provisions of the 2017 Tax Act. Transition Toll Tax The 2017 Tax Act eliminates the deferral of U.S. income tax on the historical unrepatriated earnings by imposing the Transition Toll Tax, which is a one-time mandatory deemed repatriation tax on undistributed foreign earnings. The Transition Toll Tax is assessed on the U.S. shareholder's share of the foreign corporation's accumulated foreign earnings that have not previously been taxed. Earnings in the form of cash and cash equivalents will be taxed at a rate of 15.5% and all other earnings will be taxed at a rate of 8.0% . As of December 31, 2017, we have accrued income tax liabilities of $989.6 million under the Transition Toll Tax, of which $78.3 million is expected to be paid within one year. The Transition Toll Tax will be paid over an eight-year period, starting in 2018, and will not accrue interest. At December 31, 2017, we considered none of our earnings to be permanently reinvested outside the U.S. and have therefore recorded tax liabilities associated with an estimate of the total withholding taxes that may be a result of our repatriation of earnings. Effect on Deferred Tax Assets and Liabilities and other Adjustments Our deferred tax assets and liabilities are measured at the enacted tax rate expected to apply when these temporary differences are expected to be realized or settled. As our deferred tax assets exceed the balance of our deferred tax liabilities at the date of enactment, we have recorded a tax expense of $184.0 million , reflecting the decrease in the U.S. corporate income tax rate and other changes to U.S. tax law. It is our current policy to not recognize deferred taxes for basis differences expected to reverse as GILTI is incurred and instead to account for any taxes assessed as period costs. Status of our Assessment Our preliminary estimate of the Transition Toll Tax and the remeasurement of our deferred tax assets and liabilities is subject to the finalization of management’s analysis related to certain matters, such as developing interpretations of the provisions of the 2017 Tax Act, changes to certain estimates and amounts related to the earnings and profits of certain subsidiaries and the filing of our tax returns. U.S. Treasury regulations, administrative interpretations or court decisions interpreting the 2017 Tax Act may require further adjustments and changes in our estimates. The final determination of the Transition Toll Tax and the remeasurement of our deferred assets and liabilities will be completed as additional information becomes available, but no later than one year from the enactment of the 2017 Tax Act. Article 20 Procedure of ZINBRYTA As a result of the Article 20 Procedure of ZINBRYTA, we have recognized a net impairment charge on certain tax assets reflected within income tax expense of $48.8 million . This charge reflects the write off of $142.6 million related to prepaid taxes, which was partially offset by the recognition of an unrecorded deferred tax benefit of $93.8 million . For additional information on the Article 20 Procedure of ZINBRYTA and resulting impairment of ZINBRYTA related assets, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Deferred Tax Assets and Liabilities Significant components of our deferred tax assets and liabilities are summarized as follows: As of December 31, (In millions) 2017 2016 Deferred tax assets: Tax credits $ 60.0 $ 201.1 Inventory, other reserves and accruals 147.8 250.6 Intangibles, net 378.8 459.8 Net operating loss 209.8 65.9 Share-based compensation 26.9 61.5 Other 25.1 49.0 Valuation allowance (16.6 ) (16.1 ) Total deferred tax assets $ 831.8 $ 1,071.8 Deferred tax liabilities: Purchased intangible assets $ (250.7 ) $ (376.6 ) Depreciation, amortization and other (107.9 ) (113.5 ) Total deferred tax liabilities $ (358.6 ) $ (490.1 ) In addition to deferred tax assets and liabilities, we have recorded prepaid tax and deferred charges related to intercompany transactions. As of December 31, 2017 and 2016 , the total deferred charges and prepaid taxes were $617.7 million and $989.8 million , respectively. In October 2016 the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other Than Inventory . This new standard eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory. As a result, the income tax consequences from the intra-entity transfer of an asset other than inventory and associated changes to deferred taxes will be recognized when the transfer occurs. This new standard becomes effective for us on January 1, 2018. We will adopt this standard using the modified retrospective method, through a cumulative-effect adjustment directly to retained earnings as of that date. Based on currently enacted tax rates, upon adoption in 2018, we will record additional deferred tax assets of approximately $0.5 billion and an increase to retained earnings of approximately $0.5 billion . We will recognize incremental deferred income tax expense thereafter as these net deferred tax assets are utilized. Tax Rate A reconciliation between the U.S. federal statutory tax rate and our effective tax rate is summarized as follows: For the Years Ended December 31, 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % State taxes 0.8 0.9 0.5 Taxes on foreign earnings (11.1 ) (9.6 ) (10.0 ) Credits and net operating loss utilization (0.8 ) (1.4 ) (1.3 ) Purchased intangible assets 1.4 1.2 1.0 Manufacturing deduction (1.9 ) (1.9 ) (1.8 ) 2017 Tax Act 22.9 — — Impairment of ZINBRYTA related tax assets 0.9 — — Other permanent items 0.7 0.5 0.7 Other — 0.4 0.3 Effective tax rate 47.9 % 25.1 % 24.4 % Changes in Tax Rate The most significant factors contributing to the increase in our effective tax rate for the year ended December 31, 2017 , as compared to 2016 is the effect of the enactment of the 2017 Tax Act and the impairment of certain ZINBRYTA related tax assets, both of which are discussed above. Excluding the effect of these items, our income tax rate would have decreased due to a lower percentage of our earnings being recognized in the U.S., a higher tax jurisdiction. The geographic split of our earnings was affected by milestone and upfront payments in the current year and the spin-off of our hemophilia business, partially offset by growth from the U.S. launch of SPINRAZA and increases in our revenues from anti-CD20 therapeutic programs in the U.S. In addition, in 2017 we earned a lower benefit from the orphan drug credit due to the FDA's approval of SPINRAZA. Our effective tax rate for 2016 compared to 2015 increased primarily due to a net state tax benefit in 2015 resulting from the remeasurement of one of our uncertain tax positions, described below, and a higher relative percentage of our earnings being attributed to the U.S., a higher tax jurisdiction. Tax Attributes As of December 31, 2017 , we had net operating losses and general business credit carry forwards for federal income tax purposes of approximately $1.4 million and $1.3 million , respectively, which begin to expire in 2020. Additionally, for state income tax purposes, we had net operating loss carry forwards of approximately $19.3 million that begin to expire in 2018. For state income tax purposes, we also had research and investment credit carry forwards of approximately $129.7 million that begin to expire in 2018. For foreign income tax purposes, we had $2.1 billion of net operating loss carryforwards that begin to expire in 2021. In assessing the realizability of our deferred tax assets, we have considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this determination, under the applicable financial reporting standards, we are allowed to consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. Our estimates of future taxable income take into consideration, among other items, our estimates of future income tax deductions related to the exercise of stock options. Based upon the level of historical taxable income and income tax liability and projections for future taxable income over the periods in which the deferred tax assets are utilizable, we believe it is more likely than not that we will realize the net benefits of the deferred tax assets of our wholly owned subsidiaries. In the event that actual results differ from our estimates or we adjust our estimates in future periods, we may need to establish a valuation allowance, which could materially impact our consolidated financial position and results of operations. Accounting for Uncertainty in Income Taxes A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows: (In millions) 2017 2016 2015 Balance at January 1, $ 32.4 $ 67.9 $ 131.5 Additions based on tax positions related to the current period 5.7 7.2 10.5 Additions for tax positions of prior periods 7.3 36.3 19.5 Reductions for tax positions of prior periods (21.8 ) (13.3 ) (49.9 ) Statute expirations (1.4 ) (1.4 ) (1.2 ) Settlement refund (payment) 44.6 (64.3 ) (42.5 ) Balance at December 31, $ 66.8 $ 32.4 $ 67.9 Our 2017 activity above reflects a refund received from a state, related to the settlement of an uncertain tax position. We and our subsidiaries are routinely examined by various taxing authorities. We file income tax returns in various U.S. states and in U.S. federal and other foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal tax examination for years before 2013 or state, local or non-U.S. income tax examinations for years before 2010. Included in the balance of unrecognized tax benefits as of December 31, 2017 , 2016 and 2015 are $64.3 million , $26.9 million and $15.7 million (net of the federal benefit on state issues), respectively, of unrecognized tax benefits that, if recognized, would affect the effective income tax rate in future periods. We recognize potential interest and penalties accrued related to unrecognized tax benefits in income tax expense. In 2017 we recognized a net interest expense of $4.8 million . In 2016 we recognized net interest expense of $9.1 million . In 2015 we recognized a net interest expense of approximately $3.1 million . We have accrued approximately $16.1 million and $25.2 million for the payment of interest and penalties as of December 31, 2017 and 2016 , respectively. International Uncertain Tax Positions We have made payments totaling approximately $60.0 million to the Danish Tax Authority (SKAT) for assessments received for fiscal 2009, 2011 and 2013 regarding withholding taxes and the treatment of certain intercompany transactions involving a Danish affiliate and another of our affiliates. We continue to dispute the assessments for all of these periods and believe that the positions taken in our historical filings are valid. It is reasonably possible that we will adjust the value of our uncertain tax positions related to Danish withholding taxes based on potential European court decisions expected in 2018 on similar matters. Federal and State Uncertain Tax Positions It is reasonably possible that we will adjust the value of our uncertain tax positions related to our revenues from anti-CD20 therapeutic programs and certain transfer pricing issues as we receive additional information from various taxing authorities, including reaching settlements with the authorities. In addition, the Internal Revenue Service and other national tax authorities routinely examine our intercompany transfer pricing with respect to intellectual property related transactions and it is possible that they may disagree with one or more positions we have taken with respect to such valuations. |
Other Consolidated Financial St
Other Consolidated Financial Statement Detail | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Consolidated Financial Statement Detail | Other Consolidated Financial Statement Detail Supplemental Cash Flow Information Supplemental disclosure of cash flow information for the years ended December 31, 2017 , 2016 and 2015 , is as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Cash paid during the year for: Interest $ 281.7 $ 281.2 $ 39.1 Income taxes $ 1,066.4 $ 1,642.2 $ 1,674.8 Non-cash Operating, Investing and Financing Activity In the fourth quarter of 2017 we accrued $600.0 million upon reaching $15.0 billion and $16.0 billion in total cumulative sales of FUMADERM and TECFIDERA (together, the Fumapharm Products). The amount, net of tax benefit, was accounted for as an increase to goodwill in accordance with the accounting standard applicable to business combinations when we acquired Fumapharm, and is expected to be paid in the first quarter of 2018. For additional information on this transaction, please read Note 22, Commitments and Contingencies, to these consolidated financial statements. In connection with the construction of our large-scale biologics manufacturing facility in Solothurn, Switzerland, we accrued charges related to processing equipment and engineering services of approximately $150.0 million and $100.0 million in our consolidated balance sheets as of December 31, 2017 and 2016 , respectively. For additional information on this matter, please read Note 11, Property, Plant and Equipment, to these consolidated financial statements. In December 2016 we accrued $454.8 million related to the settlement and license agreement with Forward Pharma. For additional information on this transaction, please read Note 7, Intangible Assets and Goodwill, to these consolidated financial statements. In February 2015 upon completion of our acquisition of Convergence, we recorded a contingent consideration obligation of $274.5 million as part of the purchase price. For additional information on this transaction, please read Note 2, Acquisitions, to these consolidated financial statements. Other Income (Expense), Net Components of other income (expense), net, are summarized as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Interest income $ 78.5 $ 63.4 $ 22.1 Interest expense (250.8 ) (260.0 ) (95.5 ) Gain (loss) on investments, net (36.3 ) 6.0 (3.8 ) Foreign exchange gains (losses), net 6.3 (9.8 ) (32.7 ) Other, net (13.1 ) (17.0 ) (13.8 ) Total other income (expense), net $ (215.4 ) $ (217.4 ) $ (123.7 ) Interest expense for the year ended December 31, 2017 , includes a $5.2 million charge recognized in November 2017 upon the redemption of our 6.875% Senior Notes due March 1, 2018. For additional information on the redemption of these notes, please read Note 12, Indebtedness, to these consolidated financial statements. Gain (loss) on investments, net for the year ended December 31, 2017 , includes other than temporary impairments recorded on strategic investments and marketable debt securities during the year. Other Current Assets Other current assets include prepaid taxes totaling approximately $657.6 million and $817.0 million as of December 31, 2017 and 2016 , respectively. As a result of the Article 20 Procedure of ZINBRYTA, we impaired prepaid tax balances totaling $142.6 million . For additional information on the Article 20 Procedure of ZINBRYTA and resulting impairment of ZINBRYTA related assets, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Accrued Expenses and Other Accrued expenses and other consists of the following: As of December 31, (In millions) 2017 2016 Current portion of contingent consideration obligations $ 844.6 $ 580.8 Revenue-related reserves for discounts and allowances 572.0 438.6 Employee compensation and benefits 297.7 282.9 Royalties and licensing fees 206.7 195.8 Collaboration expenses 183.7 130.9 Construction in progress 159.7 134.0 Accrued TECFIDERA litigation settlement charge — 454.8 Other 636.9 685.7 Total accrued expenses and other $ 2,901.3 $ 2,903.5 Pricing of TYSABRI in Italy - AIFA In the fourth quarter of 2011 Biogen Italia SRL, our Italian subsidiary, received a notice from the Italian National Medicines Agency (Agenzia Italiana del Farmaco or AIFA) that sales of TYSABRI after mid-February 2009 through mid-February 2011 exceeded by EUR 30.7 million a reimbursement limit established pursuant to a Price Determination Resolution granted by AIFA in December 2006. In January 2012 we filed an appeal against AIFA in administrative court in Rome, Italy seeking a ruling that the reimbursement limit in the Price Determination Resolution should apply as written to only “the first 24 months” of TYSABRI sales, which ended in mid-February 2009. Since being notified in the fourth quarter of 2011 that AIFA believed a reimbursement limit was still in effect, we deferred revenue on sales of TYSABRI as if the reimbursement limit were in effect for each biannual period beginning in mid-February 2009. In July 2013 we negotiated an agreement in principle with AIFA's Price and Reimbursement Committee that would have resolved all of AIFA's claims relating to sales of TYSABRI in excess of the reimbursement limit for the periods from February 2009 through January 2013 for an aggregate repayment of EUR 33.3 million . As a result of this agreement in principle, we recorded a liability and reduction to revenue of EUR 15.4 million at June 30, 2013, which approximated 50% of the claim related to the period from mid-February 2009 through mid-February 2011. In June 2014 AIFA approved a resolution affirming that there is no reimbursement limit from and after February 2013. As a result, we recognized $53.5 million of TYSABRI revenues related to the periods February 2013 through June 2014 that were previously deferred. In the first quarter of 2017 we reached an agreement with AIFA's Price and Reimbursement Committee resolving all of AIFA's claims relating to sales of TYSABRI in excess of the reimbursement limit for prior periods. As a result, in the first quarter of 2017, we recognized EUR 41.8 million (approximately $45.0 million ) in revenues for sales that were previously deferred. These amounts were previously accrued for and included in the table above in Other as of December 31, 2016 . |
Investments in Variable Interes
Investments in Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Investments in Variable Interest Entities [Abstract] | |
Investments in Variable Interest Entities | Investments in Variable Interest Entities Consolidated Variable Interest Entities Our consolidated financial statements include the financial results of variable interest entities in which we are the primary beneficiary. The following are our significant variable interest entities. Neurimmune In November 2007 we entered into a collaboration and license agreement with Neurimmune Subone AG (Neurimmune) for the development and commercialization of antibodies for the treatment of AD. We are responsible for the development, manufacturing and commercialization of all collaboration products. This agreement is effective for the longer of the duration of certain patents relating to a licensed product, or 12 years from the first commercial sale of any product using such a licensed compound. Our anti-amyloid beta antibody, aducanumab, for the treatment of AD resulted from this collaboration. We consolidate the results of Neurimmune as we determined that we are the primary beneficiary of Neurimmune because we have the power through the collaboration to direct the activities that most significantly impact the entity’s economic performance and we are required to fund 100% of the research and development costs incurred in support of the collaboration. Under this agreement, we are also required to pay royalties on sales of any resulting commercial products and make payments upon the achievement of certain milestone events. In October 2017 we amended the terms of our collaboration and license agreement with Neurimmune. Under the amended agreement, we made a $150.0 million payment to Neurimmune in exchange for a 15% reduction in royalty rates payable on products developed under the agreement, including on potential commercial sales of aducanumab. Our royalty rates payable on products developed under the agreement, including on potential commercial sales of aducanumab, will now range from the high single digits to low teens. As we consolidate the results of Neurimmune, we recognized this payment as a charge to noncontrolling interest in the fourth quarter of 2017 and treated it as a distribution. Under the amended agreement, we also have an option that will expire in April 2018 to further reduce our royalty rates payable on products developed under the agreement, including on potential commercial sales of aducanumab, by an additional 5% in exchange for a $50.0 million payment to Neurimmune. Research and development costs for which we reimburse Neurimmune are reflected in research and development expense in our consolidated statements of income. During the years ending December 31, 2017 , 2016 and 2015 amounts reimbursed were immaterial. In September 2015 we recognized a $60.0 million milestone payable to Neurimmune upon enrollment of the first patient in a Phase 3 trial for aducanumab. We recognized this payment as a charge to noncontrolling interest. Based upon our current development plans for aducanumab, we may pay Neurimmune up to $275.0 million in remaining milestone payments. Future milestone payments and royalties, if any, will be reflected in our consolidated statements of income as a charge to noncontrolling interest, net of tax when such milestones are achieved. The assets and liabilities of Neurimmune are not significant to our consolidated financial position or results of operations as it is a research and development organization. We have provided no financing to Neurimmune other than previously contractually required amounts. Under the terms of our October 2017 collaboration agreement with Eisai for the joint development and commercialization of aducanumab, Eisai may elect to share in the benefit and cost associated with the royalty reductions discussed above. Eisai has elected to not share in the benefit and cost of the October 2017 royalty reduction. For additional information on our collaboration arrangement with Eisai, please read Note 20, Collaborative and Other Relationships , to these consolidated financial statements. Unconsolidated Variable Interest Entities We have relationships with other variable interest entities that we do not consolidate as we lack the power to direct the activities that significantly impact the economic success of these entities. These relationships include investments in certain biotechnology companies and research collaboration agreements. As of December 31, 2017 and 2016 , the carrying value of our investments in biotechnology companies totaled $48.3 million and $47.4 million , respectively. Our maximum exposure to loss related to these variable interest entities is limited to the carrying value of our investments. We have also entered into research collaboration agreements with certain variable interest entities where we are required to fund certain development activities. These development activities are included in research and development expense in our consolidated statements of income, as they are incurred. We have provided no financing to these variable interest entities other than previously contractually required amounts. |
Collaborative and Other Relatio
Collaborative and Other Relationships | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative and Other Relationships | Collaborative and Other Relationships In connection with our business strategy, we have entered into various collaboration agreements that provide us with rights to develop, produce and market products using certain know-how, technology and patent rights maintained by our collaborative partners. Terms of the various collaboration agreements may require us to make milestone payments upon the achievement of certain product research and development objectives and pay royalties on future sales, if any, of commercial products resulting from the collaboration. Depending on the collaborative arrangement, we may record funding receivable or payable balances with our partners, based on the nature of the cost-sharing mechanism and activity within the collaboration. Our significant collaboration arrangements are discussed below. Genentech (Roche Group) We have certain business and financial rights with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, CLL and other conditions, GAZYVA for the treatment of CLL and follicular lymphoma, OCREVUS for the treatment of primary progressive MS (PPMS) and relapsing MS (RMS) and other potential anti-CD20 therapies under a collaboration agreement with Genentech, a wholly-owned member of the Roche Group. The Roche Group and its sub-licensees maintain sole responsibility for the development, manufacturing and commercialization of GAZYVA in the U.S. Our collaboration agreement will continue in effect until we mutually agree to terminate the collaboration, except that if we undergo a change in control, as defined in our collaboration agreement, Genentech has the right to present an offer to buy the rights to RITUXAN and we must either accept Genentech’s offer or purchase Genentech’s rights on the same terms as its offer. Genentech will also be deemed concurrently to have purchased our rights to any other anti-CD20 products in development in exchange for a royalty and our rights to GAZYVA in exchange for the compensation described in the table below. Our collaboration with Genentech was created through a contractual arrangement and not through a joint venture or other legal entity. RITUXAN Genentech is responsible for the worldwide manufacturing of RITUXAN. Development and commercialization rights and responsibilities under this collaboration are divided as follows: U.S. We share with Genentech co-exclusive rights to develop, commercialize and market RITUXAN in the U.S. Canada We and Genentech have assigned our rights under our collaboration agreement with respect to Canada to the Roche Group. GAZYVA We recognize our share of the development and commercialization expenses of GAZYVA as a reduction of our share of pre-tax profits in revenues from anti-CD20 therapeutic programs. Commercialization of GAZYVA impacts our percentage of the co-promotion profits for RITUXAN, as summarized in the table below. OCREVUS In March 2017 the FDA approved OCREVUS, a humanized anti-CD20 monoclonal antibody, for the treatment of RMS and PPMS. Under our agreement with Genentech, we will receive a tiered royalty on U.S. net sales from 13.5% and increasing up to 24% if annual net sales exceed $900.0 million . There will be a 50% reduction to these royalties if a biosimilar to OCREVUS is approved in the U.S. In addition, we will receive a 3% royalty on net sales of OCREVUS outside the U.S., with the royalty period lasting 11 years from the first commercial sale of OCREVUS on a country-by-country basis. OCREVUS was approved for the treatment of RMS and PPMS in Australia, Switzerland and the E.U. in July 2017, September 2017 and January 2018, respectively. The commercialization of OCREVUS does not impact the percentage of the co-promotion profits we receive for RITUXAN or GAZYVA. Genentech is solely responsible for development and commercialization of OCREVUS and funding future costs. Genentech cannot develop OCREVUS in CLL, non-Hodgkin's lymphoma or rheumatoid arthritis. OCREVUS royalty revenues were based on our estimates from third party and market research data of OCREVUS sales occurring during the corresponding period. Differences between actual and estimated royalty revenues will be adjusted for in the period in which they become known, which is expected to be the following quarter. Profit-sharing Formulas RITUXAN Profit Share Our current pretax co-promotion profit-sharing formula for RITUXAN provides for a 30% share on the first $50.0 million of co-promotion operating profits earned each calendar year. Our share of annual co-promotion profits in excess of $50.0 million varies, as summarized in the table below, upon the following events: Until GAZYVA First Non-CLL FDA Approval 40.0 % After GAZYVA First Non-CLL FDA Approval until First GAZYVA Threshold Date 39.0 % After First GAZYVA Threshold Date until Second GAZYVA Threshold Date 37.5 % After Second GAZYVA Threshold Date 35.0 % First Non-CLL GAZYVA FDA Approval means the FDA’s first approval of GAZYVA in an indication other than CLL. First GAZYVA Threshold Date means the earlier of (i) the date of the First Non-CLL GAZYVA FDA approval if U.S. gross sales of GAZYVA for the preceding consecutive 12-month period were at least $150.0 million or (ii) the first day of the calendar quarter after the date of the First Non-CLL GAZYVA FDA Approval that U.S. gross sales of GAZYVA within any consecutive 12-month period have reached $150.0 million . Second GAZYVA Threshold Date means the first day of the calendar quarter after U.S. gross sales of GAZYVA within any consecutive 12-month period have reached $500.0 million . The Second GAZYVA Threshold Date can be achieved regardless of whether GAZYVA has been approved in a non-CLL indication. Our share of RITUXAN pre-tax profits in the U.S. decreased to 39% from 40% in February 2016 when GAZYVA was approved by the FDA as a new treatment for follicular lymphoma and was further decreased to 37.5% in the third quarter of 2017 as gross sales of GAZYVA in the U.S. for the preceding 12 month period exceeded $150.0 million . In addition, should the FDA approve an anti-CD20 product other than OCREVUS or GAZYVA that is acquired or developed by Genentech and subject to the collaboration agreement, our share of the co-promotion operating profits would be between 30% and 37.5% based on certain events. In June 2017 the FDA approved RITUXAN HYCELA for subcutaneous injection for the treatment of adults with previously untreated and relapsed or refractory follicular lymphoma, previously untreated diffuse large B-cell lymphoma and CLL. This new treatment includes the same monoclonal antibody as intravenous RITUXAN in combination with hyaluronidase human, an enzyme that helps to deliver rituximab under the skin. GAZYVA Profit Share Our current pretax profit-sharing formula for GAZYVA provides for a 35% share on the first $50.0 million of operating profits earned each calendar year. Our share of annual profits in excess of $50.0 million varies, as summarized in the table below, upon the following events: Until First GAZYVA Threshold Date 39.0 % After First GAZYVA Threshold Date until Second GAZYVA Threshold Date 37.5 % After Second GAZYVA Threshold Date 35.0 % In 2017 , 2016 and 2015 our share of operating profits on GAZYVA was 35% . In November 2017 the FDA approved GAZYVA in combination with chemotherapy, followed by GAZYVA alone, for people with previously untreated advanced follicular lymphoma. Revenues from Anti-CD20 Therapeutic Programs Revenues from anti-CD20 therapeutic programs are summarized as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Biogen's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA, including the reimbursement of selling and development expenses $ 1,316.4 $ 1,249.5 $ 1,269.8 Other revenues from anti-CD20 therapeutic programs 242.8 65.0 69.4 Total revenues from anti-CD20 therapeutic programs $ 1,559.2 $ 1,314.5 $ 1,339.2 In 2017 the 37.5% profit-sharing threshold was met during the third quarter and the 39% profit-sharing threshold was met during the first quarter. In 2016 the 39% profit-sharing threshold was met during the first quarter. In 2015 , the 40% profit-sharing threshold was met during the first quarter. Biogen's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA, including the reimbursement of selling and development expenses for 2017 , as depicted in the table above, excludes certain expenses charged to the collaboration by Genentech that we believe remain the responsibility of Genentech and that we are not obligated to pay under the terms of the collaboration agreement. Accordingly, we did not recognize the effect of those expenses in the determination of our share of pre-tax collaboration profits and Genentech has withheld approximately $120 million from amounts due to us in relation to collaboration activity for 2017, representing Genentech’s estimate of our share of these expenses. We remain in discussions with Genentech about a resolution relating to these amounts. Prior to regulatory approval, we record our share of the expenses incurred by the collaboration for the development of anti-CD20 products in research and development expense in our consolidated statements of income. After an anti-CD20 product is approved, we record our share of the development expenses related to that product as a reduction of our share of pre-tax profits in revenues from anti-CD20 therapeutic programs. AbbVie We have a collaboration agreement with AbbVie for the development and commercialization of ZINBRYTA, which was approved for the treatment of relapsing forms of MS in the U.S. in May 2016 and in the E.U. in July 2016. Under this agreement, we and AbbVie conduct ZINBRYTA co-promotion activities in the U.S., E.U. and Canadian territories (Collaboration Territory) where development and commercialization costs and profits are shared equally. Outside of the Collaboration Territory, we are solely responsible for development and commercialization of ZINBRYTA and will pay a tiered royalty to AbbVie as a percentage of net sales in the low to high teens. We are responsible for manufacturing and research and development activities in both the Collaboration Territory and outside the Collaboration Territory and record these activities within their respective lines in our consolidated statements of income, net of any reimbursement of research and development expenditures received from AbbVie. For the years ended December 31, 2017 , 2016 and 2015 , the collaboration incurred $39.9 million , $48.6 million and $113.8 million for research and development activities, respectively, for which we recognized $19.9 million , $24.3 million and $60.8 million , respectively, in our consolidated statements of income. Prior to regulatory approval, we also recognized $22.0 million of pre-commercialization expenses within our selling, general and administrative expense, which represented 50% of the collaboration's pre-commercialization costs for 2016 . After ZINBRYTA was approved by the FDA and European Medicines Agency (EMA) in 2016, we began to recognize our share of the collaboration activities within the U.S., E.U. and Canadian territories as described below under "Co-promotion Profits and Losses." Article 20 Procedure of ZINBRYTA In July 2017 the EMA announced that it had provisionally restricted the use of ZINBRYTA to adult patients with highly active relapsing disease despite a full and adequate course of treatment with at least one disease modifying therapy (DMT) or with rapidly evolving severe relapsing MS who are unsuitable for treatment with other DMTs. These restrictions followed the initiation of an EMA review (referred to as an Article 20 Procedure) of ZINBRYTA following the report of a case of fatal fulminant liver failure, as well as four cases of serious liver injury. In October 2017, as part of this Article 20 Procedure of ZINBRYTA, the EMA Pharmacovigilance Risk Assessment Committee (PRAC) completed its assessment and recommended a further set of restrictions on the use of ZINBRYTA by MS patients. In November 2017 the Committee for Medicinal Products for Human Use (CHMP) adopted an opinion, confirming the PRAC's recommendations, for further restrictions to minimize the risk of serious liver injury with ZINBRYTA, including restriction of its use to adult patients with relapsing forms of MS who have had an inadequate response to at least two DMTs and for whom treatment with any other DMT is contraindicated or otherwise unsuitable. In January 2018 the EC adopted a final and legally-binding decision, which concluded the Article 20 Procedure, confirming the CHMP opinion. The recommendation of these restrictions by the CHMP resulted in the impairment of substantially all of our assets related to ZINBRYTA as we have determined that these amounts may not be recoverable. As a result, we recorded net impairment charges related to intangible assets, inventory, property, plant and equipment and prepaid tax assets, totaling approximately $190.8 million . Inventory related losses are subject to our profit share with AbbVie and are included above net of expected reimbursement. Offsetting these amounts was an unrecorded tax benefit related to certain ZINBRYTA related assets totaling approximately $93.8 million . Co-promotion Profits and Losses In the U.S., AbbVie recognizes revenues on sales to third parties and we recognize our 50% share of the co-promotion profits or losses as a component of total revenues in our consolidated statements of income. The collaboration began selling ZINBRYTA in the U.S. in the third quarter of 2016. For the years ended December 31, 2017 and 2016 , we recognized a net reduction in revenue of $16.9 million and $21.9 million , respectively, to reflect our share of an overall net loss within the collaboration. The following table provides a summary of the U.S. collaboration and our share of the co-promotion losses on ZINBRYTA in the U.S.: For the Year Ended December 31, (In millions) 2017 2016 Product revenues, net $ 53.1 $ 6.1 Costs and expenses 92.6 50.0 Co-promotion losses in the U.S. $ 39.5 $ 43.9 Biogen's share of co-promotion losses in the U.S. $ 16.9 $ 21.9 In the E.U. and Canada, we recognize revenues on sales to third parties in product revenues, net in our consolidated statements of income. We also record the related cost of revenues and sales and marketing expenses to their respective line items in our consolidated statements of income as these costs are incurred. We reimburse AbbVie for their 50% share of the co-promotion profits or losses in the E.U. and Canada. This reimbursement is recognized in collaboration profit (loss) sharing in our consolidated statements of income. We began to recognize product revenues on sales of ZINBRYTA in the E.U. in the third quarter of 2016. For the year ended December 31, 2017 , we recognized net expense of $1.3 million to reflect AbbVie's 50% sharing of the net collaboration profits in the E.U. and Canada, as compared to net income recognized of $4.9 million to reflect AbbVie's 50% sharing of the net collaboration losses in the E.U. and Canada in the prior year. Acorda In June 2009 we entered into a collaboration and license agreement with Acorda Therapeutics, Inc. (Acorda) to develop and commercialize products containing fampridine, such as FAMPYRA, in markets outside the U.S. We are responsible for all regulatory activities and the future clinical development of related products in those markets. Under this agreement, we pay tiered royalties based on the level of ex-U.S. net sales and potential milestone payments based on the successful achievement of certain regulatory and commercial milestones, which would be capitalized as intangible assets upon achievement of the milestones and amortized utilizing an economic consumption model. The next expected milestone would be $15.0 million , due if ex-U.S. net sales reach $100.0 million over a period of four consecutive quarters. Royalty payments are recognized in cost of sales within our consolidated statements of income. In connection with the collaboration and license agreement, we also entered into a supply agreement with Acorda for the commercial supply of FAMPYRA. This agreement is a sublicense arrangement of an existing agreement between Acorda and Alkermes, who acquired Elan Drug Technologies, the original party to the license with Acorda. For the years ending December 31, 2017 , 2016 and 2015 , total cost of sales related to royalties and commercial supply of FAMPYRA reflected in our consolidated statements of income were $34.0 million , $31.5 million and $30.6 million , respectively. Ionis Pharmaceuticals, Inc. Product Collaborations SPINRAZA In January 2012 we entered into an exclusive worldwide option and collaboration agreement with Ionis to develop and commercialize SPINRAZA for the treatment of SMA. During 2014 we amended this agreement to adjust the amount of potential additional payments and terms of the exercise of our opt-in right to license SPINRAZA, which included providing for additional opt-in scenarios, based on the filing or acceptance of a New Drug Application (NDA) with the FDA or marketing authorization application with the EMA. Consistent with the initial agreement, Ionis remained responsible for conducting the pivotal/Phase 3 trials and we provided input on the clinical trial design and regulatory strategy for the development of SPINRAZA. SPINRAZA was approved for the treatment of SMA in the U.S., E.U. and Japan in December 2016, June 2017 and July 2017, respectively. For the years ended December 31, 2017 and 2016 , we recognized product revenues totaling $883.7 million and $4.6 million , respectively, on our sales of SPINRAZA. Under our agreement with Ionis, we make royalty payments to Ionis on annual worldwide net sales of SPINRAZA using a tiered royalty rate between 11% and 15% , which are recognized in cost of sales within our consolidated statements of income. Royalty cost of sales related to sales of SPINRAZA for the years ended December 31, 2017 and 2016 totaled $112.4 million and $0.5 million , respectively. Upon entering into this agreement, we made an upfront payment of $29.0 million to Ionis. In addition, during 2017 we made milestone payments to Ionis totaling $150.0 million related to the marketing approvals discussed above, which were capitalized in intangible assets, net in our consolidated balance sheets. During the third quarter of 2016 , upon the exercise of our option to develop and commercialize SPINRAZA, we also paid a $75.0 million license fee to Ionis, which was recognized as research and development expense in our consolidated statements of income. During 2017 no clinical trial payments were made to Ionis due to the completion of study activities. During 2016 and 2015 , we made clinical trial payments of $35.3 million and $42.8 million , respectively, related to the advancement of the program, which were recorded in investments and other assets in our consolidated balance sheets as they represented prepaid research and development expenditures. As of December 31, 2017 , these prepaid research and development amounts were fully expensed as the services were provided. For the years ending December 31, 2017 , 2016 and 2015 , $234.5 million , $257.8 million and $74.9 million , respectively, were reflected in total costs and expenses in our consolidated statements of income related to the advancement and commercialization of the program. Antisense Therapeutics In December 2012 we entered into an agreement with Ionis for the development and commercialization of up to three therapeutic targets. Under this agreement, Ionis is responsible for global development of any product candidate through the completion of a Phase 2 trial and we will provide advice on the clinical trial design and regulatory strategy. We have an option to license the product candidate until completion of the Phase 2 trial. If we exercise our option, we will pay a license fee of up to $70.0 million to Ionis and assume global development, regulatory and commercialization responsibilities. Ionis is eligible to receive up to another $130.0 million in milestone payments upon the achievement of certain regulatory milestones as well as royalties on future sales if we successfully develop the product candidate after option exercise. Upon entering into this agreement, we made an upfront payment of $30.0 million to Ionis and agreed to make potential additional payments, prior to licensing, of up to $10.0 million based on the development of the selected product candidate as well as a mark-up of the cost estimate of the Phase 1 and Phase 2 trials. During 2015 we recognized this $10.0 million developmental milestone upon the selection of BIIB080 (also known as IONIS-MAPT Rx ), which is currently in Phase 1 development. Research Collaborations 2013 Long-term Strategic Research Agreement In September 2013 we entered into a six -year research collaboration agreement with Ionis under which both companies collaborate to perform discovery level research and subsequent development and commercialization activities of antisense or other therapeutics for the treatment of neurological disorders. Under the collaboration, Ionis will perform research on a set of neurological targets identified within this agreement. Once the research has reached a specific stage of development, we will make a determination whether antisense therapy is the preferred approach to developing a therapeutic candidate or whether another modality is preferred. If an antisense approach is selected, Ionis will continue development and identify a potential product candidate. If another modality is selected, we will assume responsibility for identifying a potential product candidate and assume development responsibility for development in that modality. Under this agreement, we made an upfront payment of $100.0 million to Ionis, of which $75.0 million was recorded as research and development expense representing the value of intellectual property purchased that had not reached technological feasibility. We recognized the remaining $25.0 million as prepaid research and discovery services, representing the value of the Ionis full time equivalent employee resources required by the collaboration to provide research and discovery services over the term of the collaboration. Ionis is also eligible to receive milestone payments, license fees and royalty payments for all product candidates developed through this collaboration, with the specific amount dependent upon the modality of the product candidate advanced by us. During the years ending December 31, 2017 , 2016 and 2015 , we triggered milestones of $12.0 million , $5.5 million and $20.0 million , respectively, related to the advancement of IONIS-SOD1 Rx for the treatment of ALS and other neurological targets identified. For non-ALS antisense product candidates, Ionis will be responsible for global development through the completion of a Phase 2 trial and we will provide advice on the clinical trial design and regulatory strategy. For ALS antisense product candidates, we are responsible for global development, clinical trial design and regulatory strategy. We have an option to license a product candidate until completion of the Phase 2 trial. If we exercise our option, we will pay Ionis up to a $70.0 million license fee and assume global development, regulatory and commercialization responsibilities. Ionis could receive additional milestone payments upon the achievement of certain regulatory milestones of up to $130.0 million , plus additional amounts related to the cost of clinical trials conducted by Ionis under the collaboration, and royalties on future sales if we successfully develop the product candidate after option exercise. For product candidates using a different modality, we will be responsible for global development through all stages and will pay Ionis up to $90.0 million upon the achievement of certain regulatory milestones and royalties on future sales if we successfully develop the product candidate. 2017 SMA Collaboration Agreement In December 2017 we entered into a new collaboration agreement with Ionis to identify new antisense oligonucleotide drug candidates for the treatment of SMA. Under this agreement, we will have the option to license therapies arising out of this collaboration and will be responsible for their development and commercialization of these therapies. Upon entering into this agreement, we made a $25.0 million upfront payment to Ionis and we may pay Ionis up to $260.0 million in additional development and regulatory milestone payments if new drugs advance to marketing approval. Upon commercialization, we may also pay Ionis up to $800.0 million in additional performance-based milestone payments and tiered royalties on potential net sales of such therapies. Eisai Co., Ltd. BAN2401 and E2609 Collaboration In March 2014 we entered into a collaboration agreement with Eisai (Eisai Collaboration Agreement) to jointly develop and commercialize two Eisai product candidates for the treatment of AD, BAN2401, a monoclonal antibody that targets amyloid-beta aggregates, and E2609, a BACE inhibitor. Under the Eisai Collaboration Agreement, Eisai serves as the global operational and regulatory lead for both compounds with all costs, including research, development, sales and marketing expenses shared equally by us and Eisai; and following marketing approval in major markets, such as the U.S., the E.U. and Japan, we and Eisai would co-promote BAN2401 and E2609 and share profits equally. In smaller markets, Eisai will distribute these products and pay us a royalty. In addition, the Eisai Collaboration Agreement provides both parties with certain rights and obligations in the event of a change in control of either party. The Eisai Collaboration Agreement also provided Eisai with an option to jointly develop and commercialize aducanumab (Aducanumab Option) and an option to jointly develop and commercialize one of our anti-tau monoclonal antibodies (Anti-Tau Option). Upon exercise of each of the Aducanumab Option and the Anti-Tau Option, a separate collaboration agreement would be entered into with Eisai on terms and conditions that mirror the Eisai Collaboration Agreement. In October 2017 Eisai exercised its Aducanumab Option and we entered into a new collaboration agreement for the joint development and commercialization of aducanumab (Aducanumab Collaboration Agreement). Eisai has not yet exercised its Anti-Tau Option. Under the Aducanumab Collaboration Agreement, both companies will continue to jointly develop BAN2401 and E2609 in accordance with the Eisai Collaboration Agreement; however, we are no longer required to pay Eisai any milestone payments for products containing BAN2401 and we are no longer entitled to any potential development and commercial milestone payments from Eisai in relation to aducanumab. A summary of activity related to the Eisai Collaboration Agreement is as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Total development expense incurred by the collaboration in development of BAN2401 and E2609 $ 146.2 $ 95.1 $ 84.1 Biogen's share of BAN2401 and E2609 development expense reflected in our consolidated statements of income, excluding upfront and milestone payments $ 74.3 $ 50.5 $ 40.4 During the fourth quarter of 2016 we recognized a $50.0 million milestone payment related to the initiation of a Phase 3 trial for E2609, which is included in research and development expense in our consolidated statements of income. We could pay Eisai up to an additional $625.0 million under the Eisai Collaboration Agreement based on the future achievement of certain development, regulatory and commercial milestones. Aducanumab Collaboration Agreement Under the Aducanumab Collaboration Agreement, we will continue to lead the ongoing Phase 3 development of aducanumab and will remain responsible for 100% of development costs for aducanumab incurred in support of this agreement until April 2018. Eisai will then reimburse us for 15% of aducanumab development expenses for the period April 2018 through December 2018, and 45% thereafter. Upon commercialization, both companies will co-promote aducanumab with a region-based profit split. We will receive a 55% share of the potential profits (losses) in the U.S., a 68.5% share of the potential profits (losses) in the E.U. and a 20% share of the potential profits (losses) in Japan and Asia, excluding China and South Korea. The companies will continue to share equally in the potential profits (losses) in rest of world markets. We and Eisai also agreed to co-promote AVONEX, TYSABRI and TECFIDERA in Japan in certain settings and Eisai will distribute AVONEX, TYSABRI, TECFIDERA and PLEGRIDY in India and other Asia-Pacific markets, excluding China. During the year ended December 31, 2017 , $263.4 million was reflected in research and development expense in our consolidated statements of income related to the advancement of our aducanumab program. Anti-Tau Option Eisai may exercise the Anti-Tau Option after completion of the Phase 1 clinical trial of such anti-tau monoclonal antibody. If Eisai exercises its Anti-Tau Option, we will receive an upfront payment from Eisai and will be entitled to additional development and commercial milestone payments. Bristol-Myers Squibb Company In June 2017 we completed an exclusive license agreement with Bristol-Myers Squibb Company (BMS) for BIIB092 (formerly known as BMS-986168), a Phase 2-ready experimental medicine with potential in AD and PSP. BIIB092 is an antibody targeting tau, the protein that forms the deposits, or tangles, in the brain associated with AD and other neurodegenerative tauopathies such as PSP. Under this agreement, we received worldwide rights to BIIB092 and are responsible for the full development and global commercialization of BIIB092 in AD and PSP. Upon entering into this agreement, we made an upfront payment of $300.0 million to BMS and we may pay BMS up to $410.0 million in additional milestone payments, and potential royalties. We also assumed all remaining obligations to the former shareholders of iPierian, Inc. (iPierian) related to BMS’s acquisition of iPierian in 2014. In June 2017 we recognized a $60.0 million developmental milestone payable to the former shareholders of iPierian upon dosing of the first patient in the Phase 2 PSP study for BIIB092 and we may pay the former shareholders of iPierian up to $490.0 million in remaining milestone payments, and potential royalties. Both the $300.0 million upfront payment and the $60.0 million developmental milestone payment were recognized as research and development expense in our consolidated statements of income for the year ended December 31, 2017 . Alkermes In November 2017 we entered into an exclusive license and collaboration agreement with Alkermes Pharma Ireland Limited, a subsidiary of Alkermes plc (Alkermes), for BIIB098 (formerly known as ALKS 8700), an oral monomethyl fumarate prodrug in Phase 3 development for the treatment of relapsing forms of MS. Under this agreement, we received an exclusive, worldwide license to develop and commercialize BIIB098 and will pay Alkermes a mid-teens percentage royalty on potential worldwide net sales of BIIB098. Royalties payable on net sales of BIIB098 are subject to tiered minimum payment requirements for a period of five years following FDA approval. Alkermes is eligible to receive royalties in the mid-single digits to low-teen percentages of annual net sales upon successful development and commercialization of new product candidates other than BIIB098. Alkermes will maintain responsibility for regulatory interactions with the FDA through the potential approval of the NDA for BIIB098 for the treatment of MS. Upon entering into this agreement, we made a $28.0 million upfront payment to Alkermes representing our share of BIIB098 development costs already incurred in 2017. Beginning in 2018 we are responsible for all development expenses related to BIIB098. In December 2017 we also recognized a $50.0 million expense, which is expected to be paid to Alkermes in early 2018, enabling the continuation of the agreement to develop BIIB098. Both the $28.0 million upfront payment and $50.0 million continuation payment were recognized as research and development expense in our consolidated financial statements for the year ended December 31, 2017 . We may also pay Alkermes up to approximately $150.0 million in additional future milestone payments upon certain regulatory achievements related to BIIB098 under this collaboration. For the year ended Dece |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2017 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | Litigation We are currently involved in various claims and legal proceedings, including the matters described below. For information as to our accounting policies relating to claims and legal proceedings, including use of estimates and contingencies, please read Note 1, Summary of Significant Accounting Policies, to these consolidated financial statements. With respect to some loss contingencies, an estimate of the possible loss or range of loss cannot be made until management has further information, including, for example, (i) which claims, if any, will survive dispositive motion practice; (ii) information to be obtained through discovery; (iii) information as to the parties' damages claims and supporting evidence; (iv) the parties’ legal theories; and (v) the parties' settlement positions. The claims and legal proceedings in which we are involved also include challenges to the scope, validity or enforceability of the patents relating to our products, pipeline or processes, and challenges to the scope, validity or enforceability of the patents held by others. These include claims by third parties that we infringe their patents. An adverse outcome in any of these proceedings could result in one or more of the following and have a material impact on our business or consolidated results of operations and financial position: (i) loss of patent protection; (ii) inability to continue to engage in certain activities; and (iii) payment of significant damages, royalties, penalties and/or license fees to third parties. Loss Contingencies Qui Tam Litigation On July 6, 2015, a qui tam action filed on behalf of the United States and certain states was unsealed by the U.S. District Court for the District of Massachusetts. The action alleges sales and promotional activities in violation of the federal False Claims Act and state law counterparts, and seeks single and treble damages, civil penalties, interest, attorneys’ fees and costs. Our motion to dismiss is pending. The United States has not made an intervention decision. An estimate of the possible loss or range of loss cannot be made at this time. Securities Litigation We and certain current and former officers are defendants in an action filed by a shareholder on October 20, 2016 in the U.S. District Court for the District of Massachusetts alleging violations of federal securities laws under 15 U.S.C §78j(b) and §78t(a) and 17 C.F.R. §240.10b-5 and seeking a declaration of the action as a class action and an award of damages, interest and attorneys' fees. An estimate of the possible loss or range of loss cannot be made at this time. Other Matters Abbreviated New Drug Application (ANDA) Litigation relating to TECFIDERA In June, July, and September 2017 and January 2018, we initiated patent infringement proceedings pursuant to the Hatch-Waxman act in the U.S. District Court for the District of Delaware against Amneal Pharmaceuticals LLC, Aurobindo Pharma U.S.A., Inc., Caribe Holdings (Cayman) Co. Ltd. DBA Puracap Caribe, Puracap International LLC, Graviti Pharmaceuticals Pvt. Ltd., Hetero USA, Inc., Impax Laboratories, Inc., Prinston Pharmaceutical Inc., Slayback Pharma LLC, Teva Pharmaceuticals USA, Inc., Alkem Laboratories Ltd., Cipla Limited, Glenmark Pharmaceuticals Ltd., Lupin Atlantis Holdings SA, Macleods Pharmaceuticals, Ltd., MSN Laboratories Pvt. Ltd., Pharmathen S.A., Shipla Medicare Limited, Sun Pharma Global FZE, Torrent Pharmaceuticals Ltd., TWi Pharmaceuticals, Inc., Windlas Healthcare Pvt. Ltd., Accord Healthcare Inc., Par Pharmaceutical Inc., Sandoz Inc., Sawai USA, Inc. and Zydus Pharmaceuticals (USA) Inc. In addition, we initiated patent infringement proceedings pursuant to the Hatch-Waxman act against Stason Pharmaceuticals, Inc. in the U.S. District Court for the Central District of California, Zydus Pharmaceuticals (USA) Inc. in the U.S. District Court for the District of New Jersey, Accord Healthcare Inc. in the U.S. District Court for the Middle District of North Carolina, Par Pharmaceutical Inc. in the U.S. District Court for the Southern District of New York, Sandoz Inc. in the U.S. District Court for the District of Colorado and Mylan Pharmaceuticals Inc. in the U.S. District Court for the Northern District of West Virginia. The cases against Accord Healthcare Inc., Zydus Pharmaceuticals (USA) Inc. and Sandoz Inc. have been dismissed in the North Carolina, New Jersey and Colorado courts but will continue against those parties in Delaware. The cases against Par Pharmaceutical Inc. in both New York and Delaware have been dismissed because Par Pharmaceutical Inc.’s ANDA application has been withdrawn. The case against Stason Pharmaceuticals, Inc. in California has been dismissed, but the case against its partner Sawai USA, Inc. will proceed in Delaware. We expect a trial in the Delaware actions in December 2019, and a trial has been set in the West Virginia action in February 2020. Interference Proceeding with Forward Pharma In April 2015 the U.S. Patent and Trademark Office (USPTO) declared an interference between Forward Pharma’s pending U.S. Patent Application No. 11/576,871 and our U.S. Patent No. 8,399,514 (the '514 patent). The '514 patent includes claims covering the treatment of MS with 480 mg of dimethyl fumarate as provided for in our TECFIDERA label. In March 2017 the USPTO ruled against Forward Pharma. Forward Pharma has appealed to the U.S. Court of Appeals for the Federal Circuit and the appeal is pending. For additional information regarding this matter, please read Note 7, Intangibles Assets and Goodwill, to these consolidated financial statements. European Patent Office Oppositions In 2016 the EPO decided to revoke our European patent number 2 137 537 (the '537 patent), which we have appealed. The '537 patent includes claims covering the treatment of MS with 480 mg of dimethyl fumarate as provided for in our TECFIDERA label. In January 2018 the EPO announced its decision revoking Forward Pharma’s European Patent No. 2 801 355, which was issued in May 2015 and expires in October 2025. Forward Pharma has stated that it expects to file an appeal to the Technical Board of Appeal of the EPO. The settlement and license agreement that we entered with Forward Pharma in January 2017 did not resolve the issues pending in this proceeding and we and Forward Pharma intend to permit the Technical Board of Appeal and the Enlarged Board of Appeal, as applicable, to make a final determination. For additional information regarding this matter, please read Note 7, Intangibles Assets and Goodwill, to these consolidated financial statements. Patent Revocation Matter Swiss Pharma International AG filed actions in the District Court of The Hague (on January 11, 2016), the German Patents Court (on March 3, 2016) and the Commercial Court of Rome (November 2017) to invalidate the Dutch, German and Italian counterparts of our European Patent Number 1 485 127 (“Administration of agents to treat inflammation”) ('127 patent), which was issued in June 2011 and concerns administration of natalizumab (TYSABRI) to treat MS. The patent expires in February 2023. The Dutch counterpart was ruled invalid and we have appealed. In November 2018 Bioeq gmbh (an entity associated with Swiss Pharma and Polpharma) brought an action in the Polish Patent Office seeking to revoke the Polish counterpart of the ‘127 patent. In January 2018 the German court announced that the German counterpart was invalid. No date for a hearing on the merits has yet been set in the Italian action. '755 Patent Litigation On May 28, 2010, Biogen MA Inc. (formerly Biogen Idec MA Inc.) filed a complaint in the U.S. District Court for the District of New Jersey alleging infringement by Bayer Healthcare Pharmaceuticals Inc. (Bayer) (manufacturer, marketer and seller of BETASERON and manufacturer of EXTAVIA), EMD Serono, Inc. (EMD Serono) (manufacturer, marketer and seller of REBIF), Pfizer Inc. (Pfizer) (co-marketer of REBIF) and Novartis Pharmaceuticals Corp. (Novartis) (marketer and seller of EXTAVIA) of our U.S. Patent No. 7,588,755 ('755 Patent), which claims the use of interferon beta for immunomodulation or treating a viral condition, viral disease, cancers or tumors. The complaint seeks monetary damages, including lost profits and royalties. Bayer had previously filed a complaint against us in the same court, on May 27, 2010, seeking a declaratory judgment that it does not infringe the '755 Patent and that the patent is invalid, and seeking monetary relief in the form of attorneys' fees, costs and expenses. Bayer, Pfizer, Novartis and EMD Serono have all filed counterclaims seeking declaratory judgments of patent invalidity and non-infringement, and seeking monetary relief in the form of costs and attorneys' fees. The trial against EMD Serono and Pfizer commenced in mid-January 2018 and is ongoing. A trial date against Bayer and Novartis has not yet been set. Government Matters We have learned that state and federal governmental authorities are investigating our sales and promotional practices and have received related subpoenas. We are cooperating with the government. We have received subpoenas and other requests from the federal government for documents and information relating to our relationship with non-profit organizations that provide assistance to patients taking drugs sold by Biogen and Biogen's co-pay assistance programs. We are cooperating with the government. On July 1, 2016, we received civil investigative demands from the federal government for documents and information relating to our treatment of certain service agreements with wholesalers when calculating and reporting Average Manufacturer Prices in connection with the Medicaid Drug Rebate Program. We are cooperating with the government. In July 2017 we learned that the Prosecution Office of Milan is investigating our interactions with certain healthcare providers in Italy. We are cooperating with the government. Product Liability and Other Legal Proceedings We are also involved in product liability claims and other legal proceedings generally incidental to our normal business activities. While the outcome of any of these proceedings cannot be accurately predicted, we do not believe the ultimate resolution of any of these existing matters would have a material adverse effect on our business or financial condition. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies TYSABRI Contingent Payments In 2013 we acquired from Elan full ownership of all remaining rights to TYSABRI that we did not already own or control. Under the acquisition agreement, we are obligated to make contingent payments to Elan of 18% on annual worldwide net sales up to $2.0 billion and 25% on annual worldwide net sales that exceed $2.0 billion . Royalty payments to Elan and other third parties are recognized as cost of sales in our consolidated statements of income. Elan was acquired by Perrigo Company plc (Perrigo) in December 2013, and Perrigo subsequently sold its rights to these payments to a third party effective January 2017. Contingent Consideration related to Business Combinations In connection with our acquisitions of Convergence, Stromedix and BIN, we agreed to make additional payments based upon the achievement of certain milestone events. As the acquisitions of Convergence, Stromedix and BIN, occurred after January 1, 2009, we recorded the contingent consideration liabilities associated with these transactions at their fair value on the acquisition date and revalue these obligations each reporting period. We may pay up to approximately $1.1 billion in remaining milestones related to these acquisitions. For additional information on our acquisition of Convergence please read Note 2, Acquisitions, to these consolidated financial statements. Fumapharm AG In 2006 we acquired Fumapharm AG. As part of this acquisition we acquired FUMADERM and TECFIDERA (together, Fumapharm Products). We paid $220.0 million upon closing of the transaction and agreed to pay an additional $15.0 million if a Fumapharm Product was approved for MS in the U.S. or E.U. In the second quarter of 2013 we paid this $15.0 million contingent payment as TECFIDERA was approved in the U.S. for MS by the FDA. We are also required to make additional contingent payments to former shareholders of Fumapharm AG or holders of their rights based on the attainment of certain cumulative sales levels of Fumapharm Products and the level of total net sales of Fumapharm Products in the prior 12-month period, as defined in the acquisition agreement. During 2017 we paid $1.2 billion in contingent payments as we reached the $11.0 billion , $12.0 billion , $13.0 billion and $14.0 billion cumulative sales levels related to the Fumapharm Products in the fourth quarter of 2016 and the first, second and third quarters of 2017, respectively, and accrued $600.0 million upon reaching $15.0 billion and $16.0 billion in total cumulative sales of Fumapharm Products in the fourth quarter of 2017. We will owe an additional $300.0 million contingent payment for every additional $1.0 billion in cumulative sales level of Fumapharm Products reached if the prior 12 months sales of the Fumapharm Products exceed $3.0 billion , until such time as the cumulative sales level reaches $20.0 billion , at which time no further contingent payments shall be due. If the prior 12 months sales of Fumapharm Products are less than $3.0 billion , contingent payments remain payable on a decreasing tiered basis. These payments will be accounted for as an increase to goodwill as incurred, in accordance with the accounting standard applicable to business combinations when we acquired Fumapharm. Any portion of the payment which is tax deductible will be recorded as a reduction to goodwill. Payments are due within 60 days following the end of the quarter in which the applicable cumulative sales level has been reached. Contingent Development, Regulatory and Commercial Milestone Payments Based on our development plans as of December 31, 2017 , we could make potential future milestone payments to third parties of up to approximately $4.2 billion , including approximately $0.7 billion in development milestones, approximately $1.5 billion in regulatory milestones and approximately $2.0 billion in commercial milestones as part of our various collaborations, including licensing and development programs. Payments under these agreements generally become due and payable upon achievement of certain development, regulatory or commercial milestones. Because the achievement of these milestones was not considered probable as of December 31, 2017 , such contingencies have not been recorded in our financial statements. Amounts related to contingent milestone payments are not considered contractual obligations as they are contingent on the successful achievement of certain development, regulatory approval and commercial milestones. Other Funding Commitments As of December 31, 2017 , we have several on-going clinical studies in various clinical trial stages. Our most significant clinical trial expenditures are to CROs. The contracts with CROs are generally cancellable, with notice, at our option. We have recorded accrued expenses of approximately $40.0 million in our consolidated balance sheet for expenditures incurred by CROs as of December 31, 2017 . We have approximately $460.0 million in cancellable future commitments based on existing CRO contracts as of December 31, 2017 . Tax Related Obligations We exclude liabilities pertaining to uncertain tax positions from our summary of contractual obligations as we cannot make a reliable estimate of the period of cash settlement with the respective taxing authorities. As of December 31, 2017 , we have approximately $77.3 million of net liabilities associated with uncertain tax positions. As of December 31, 2017, we have accrued income tax liabilities of $989.6 million under the Transition Toll Tax, of which $78.3 million is expected to be paid within one year. The Transition Toll Tax will be paid over an eight-year period, starting in 2018, and will not accrue interest. Solothurn, Switzerland Facility In December 2015, we purchased land in Solothurn, Switzerland and are building a large-scale biologics manufacturing facility at this site. We expect this facility to be operational by the end of the decade. As of December 31, 2017 , we had contractual commitments of $270.0 million for the construction of this facility. Leases We rent laboratory and office space and certain equipment under non-cancelable operating leases. These lease agreements contain various clauses for renewal at our option and, in certain cases, escalation clauses typically linked to rates of inflation. Rental expense, net of sublease income under these leases, which terminate at various dates through 2028, amounted to $65.3 million , $68.7 million and $68.6 million in 2017 , 2016 and 2015 , respectively. In addition to rent, the leases may require us to pay additional amounts for taxes, insurance, maintenance and other operating expenses. As of December 31, 2017 , minimum rental commitments under non-cancelable leases, net of income from subleases, for each of the next five years and total thereafter were as follows: (In millions) 2018 2019 2020 2021 2022 Thereafter Total Minimum lease payments $ 72.6 $ 72.3 $ 68.4 $ 66.9 $ 65.7 $ 271.1 $ 617.0 Less: income from subleases (1) (24.3 ) (24.7 ) (23.9 ) (22.3 ) (22.0 ) (71.3 ) (188.5 ) Net minimum lease payments $ 48.3 $ 47.6 $ 44.5 $ 44.6 $ 43.7 $ 199.8 $ 428.5 (1) Represents sublease income expected to be received for the vacated manufacturing facility in Cambridge, MA, the vacated portion of our Weston, MA facility and other facilities throughout the world. Under certain of our lease agreements, we are contractually obligated to return leased space to its original condition upon termination of the lease agreement. At the inception of a lease with such conditions, we record an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, for each such lease, we record interest expense to accrete the asset retirement obligation liability to full value and depreciate each capitalized asset retirement obligation asset, both over the term of the associated lease agreement. Our asset retirement obligations were not significant as of December 31, 2017 or 2016 . |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees [Abstract] | |
Guarantees | Guarantees As of December 31, 2017 and 2016 , we did not have significant liabilities recorded for guarantees. We enter into indemnification provisions under our agreements with other companies in the ordinary course of business, typically with business partners, contractors, clinical sites and customers. Under these provisions, we generally indemnify and hold harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of our activities. These indemnification provisions generally survive termination of the underlying agreement. The maximum potential amount of future payments we could be required to make under these indemnification provisions is unlimited. However, to date we have not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the estimated fair value of these agreements is minimal. Accordingly, we have no liabilities recorded for these agreements as of December 31, 2017 and 2016 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor various retirement and pension plans. Our estimates of liabilities and expenses for these plans incorporate a number of assumptions, including expected rates of return on plan assets and interest rates used to discount future benefits. 401(k) Savings Plan We maintain a 401(k) Savings Plan, which is available to substantially all regular employees in the U.S. over the age of 21 . Participants may make voluntary contributions. We make matching contributions according to the 401(k) Savings Plan’s matching formula. All matching contributions and participant contributions vest immediately. The 401(k) Savings Plan also holds certain transition contributions on behalf of participants who previously participated in the Biogen, Inc. Retirement Plan. The expense related to our 401(k) Savings Plan primarily consists of our matching contributions. Expense related to our 401(k) Savings Plan totaled $42.6 million , $45.2 million and $51.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Deferred Compensation Plan We maintain a non-qualified deferred compensation plan, known as the Supplemental Savings Plan (SSP), which allows a select group of management employees in the U.S. to defer a portion of their compensation. The SSP also provides certain credits to highly compensated U.S. employees that are paid by the company. These credits are known as the Restoration Match. The deferred compensation amounts are accrued when earned. Such deferred compensation is distributable in cash in accordance with the rules of the SSP. Deferred compensation amounts under such plan as of December 31, 2017 and 2016 totaled approximately $109.8 million and $128.5 million , respectively, and are included in other long-term liabilities in our consolidated balance sheets. The SSP also holds certain transition contributions on behalf of participants who previously participated in the Biogen, Inc. Retirement Plan. The Restoration Match and participant contributions vest immediately. Distributions to participants can be either in one lump sum payment or annual installments as elected by the participants. Pension Plans Our retiree benefit plans include defined benefit plans for employees in our affiliates in Switzerland and Germany as well as other insignificant defined benefit plans in certain other countries where we maintain an operating presence. Our Swiss plan is a government-mandated retirement fund that provides employees with a minimum investment return. The minimum investment return is determined annually by the Swiss government and was 1.00% in 2017 and 1.25% in 2016 and 1.75% in 2015 , respectively. Under the Swiss plan, both we and certain of our employees with annual earnings in excess of government determined amounts are required to make contributions into a fund managed by an independent investment fiduciary. Employer contributions must be in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary and gender. As of December 31, 2017 and 2016 , the Swiss plan had an unfunded net pension obligation of approximately $48.3 million and $39.1 million , respectively, and plan assets that totaled approximately $83.7 million and $68.6 million , respectively. In 2017 , 2016 and 2015 , we recognized expense totaling $12.3 million , $15.3 million and $12.9 million , respectively, related to our Swiss plan. The obligations under the German plans are unfunded and totaled $43.5 million and $35.4 million as of December 31, 2017 and 2016 , respectively. Net periodic pension cost related to the German plans totaled $5.2 million , $4.2 million and $4.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate as one operating segment, focused on discovering, developing and delivering worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases. Our Chief Executive Officer (CEO), as the chief operating decision-maker, manages and allocates resources to the operations of our company on a total company basis. Our research and development organization is responsible for the research and discovery of new product candidates and supports development and registration efforts for potential future products. Our pharmaceutical, operations and technology organization manages the development of the manufacturing processes, clinical trial supply, commercial product supply, distribution, buildings and facilities. Our commercial organization is responsible for U.S. and international development of our commercial products. The company is also supported by corporate staff functions. Managing and allocating resources on a total company basis enables our CEO to assess the overall level of resources available and how to best deploy these resources across functions, therapeutic areas and research and development projects that are in line with our long-term company-wide strategic goals. Consistent with this decision-making process, our CEO uses consolidated, single-segment financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. Enterprise-wide disclosures about product revenues, other revenues and long-lived assets by geographic area and information relating to major customers are presented below. Revenues are primarily attributed to individual countries based on location of the customer or licensee. Revenues by product are summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In millions) United States Rest of World Total United States Rest of World Total United States Rest of World Total Multiple Sclerosis (MS): TECFIDERA $ 3,294.0 $ 920.0 $ 4,214.0 $ 3,169.4 $ 798.7 $ 3,968.1 $ 2,908.2 $ 730.2 $ 3,638.4 AVONEX 1,593.6 557.9 2,151.5 1,675.3 638.2 2,313.5 1,790.2 840.0 2,630.2 PLEGRIDY 295.5 198.8 494.3 305.0 176.7 481.7 227.1 111.4 338.5 TYSABRI 1,113.8 859.3 1,973.1 1,182.9 780.9 1,963.8 1,103.1 783.0 1,886.1 FAMPYRA — 91.6 91.6 — 84.9 84.9 — 89.7 89.7 ZINBRYTA — 52.7 52.7 — 7.8 7.8 — — — Spinal Muscular Atrophy: SPINRAZA 657.0 226.7 883.7 4.6 — 4.6 — — — Hemophilia: ELOCTATE 42.2 6.2 48.4 445.2 68.0 513.2 308.3 11.4 319.7 ALPROLIX 21.0 5.0 26.0 268.0 65.7 333.7 208.9 25.6 234.5 Other product revenues: FUMADERM — 39.6 39.6 — 45.9 45.9 — 51.4 51.4 BENEPALI — 370.8 370.8 — 100.6 100.6 — — — FLIXABI — 9.0 9.0 — 0.1 0.1 — — — Total product revenues $ 7,017.1 $ 3,337.6 $ 10,354.7 $ 7,050.4 $ 2,767.5 $ 9,817.9 $ 6,545.8 $ 2,642.7 $ 9,188.5 Geographic Information The following tables contain certain financial information by geographic area: December 31, 2017 (In millions) U.S. Europe Asia Other Total Product revenues from external customers $ 7,017.1 $ 2,844.8 $ 160.1 $ 332.7 $ 10,354.7 Revenues from anti-CD20 therapeutic programs $ 1,475.6 $ 0.6 $ — $ 83.0 $ 1,559.2 Other revenues from external customers $ 249.5 $ 67.8 $ 42.7 $ — $ 360.0 Long-lived assets $ 1,226.9 $ 1,948.2 $ 5.2 $ 2.1 $ 3,182.4 December 31, 2016 (In millions) U.S. Europe Asia Other Total Product revenues from external customers $ 7,050.4 $ 2,237.2 $ 217.3 $ 313.0 $ 9,817.9 Revenues from anti-CD20 therapeutic programs $ 1,249.5 $ 1.9 $ — $ 63.1 $ 1,314.5 Other revenues from external customers $ 224.7 $ 71.5 $ 20.2 $ — $ 316.4 Long-lived assets $ 1,272.3 $ 1,221.1 $ 7.0 $ 1.4 $ 2,501.8 December 31, 2015 (In millions) U.S. Europe Asia Other Total Product revenues from external customers $ 6,545.8 $ 2,165.7 $ 143.7 $ 333.3 $ 9,188.5 Revenues from anti-CD20 therapeutic programs $ 1,269.8 $ 3.5 $ — $ 65.9 $ 1,339.2 Other revenues from external customers $ 142.0 $ 31.2 $ 62.9 $ — $ 236.1 Long-lived assets $ 1,296.5 $ 881.7 $ 7.7 $ 1.7 $ 2,187.6 Revenues from Anti-CD20 Therapeutic Programs Approximately 13% , 11% and 12% of our total revenues in 2017 , 2016 and 2015 , respectively, are derived from our collaboration agreement with Genentech. For additional information on our collaboration with Genentech, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Significant Customers We recorded revenues from two wholesalers accounting for 34% and 21% of gross product revenues in 2017 , 35% and 22% of gross product revenues in 2016 , and 34% and 26% of gross product revenues in 2015 , respectively. Other As of December 31, 2017 , 2016 and 2015 , approximately $1,215.7 million , $545.5 million and $161.5 million , respectively, of our long-lived assets were related to the construction of our large-scale biologics manufacturing facility in Solothurn, Switzerland. As of December 31, 2017 , 2016 and 2015 , approximately $707.1 million , $643.6 million and $684.9 million , respectively, of our long-lived assets were related to our manufacturing facilities in Denmark. For additional information on our large-scale biologics manufacturing facility in Solothurn, Switzerland, please read Note 11, Property, Plant and Equipment, to these consolidated financial statements. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year 2017 (a) (a) (b) (c) (d) (a) (a) (e) (f) (g) (h) Product revenues, net $ 2,380.1 $ 2,639.7 $ 2,622.5 $ 2,712.4 $ 10,354.7 Revenues from anti-CD20 therapeutic programs $ 340.6 $ 397.1 $ 406.5 $ 415.0 $ 1,559.2 Other revenues $ 90.0 $ 41.6 $ 48.8 $ 179.6 $ 360.0 Total revenues $ 2,810.7 $ 3,078.4 $ 3,077.8 $ 3,307.0 $ 12,273.9 Gross profit (1) $ 2,426.1 $ 2,712.2 $ 2,707.8 $ 2,797.8 $ 10,643.9 Net income $ 747.5 $ 862.8 $ 1,226.1 $ (166.3 ) $ 2,670.1 Net income attributable to Biogen Inc. $ 747.6 $ 862.8 $ 1,226.1 $ (297.4 ) $ 2,539.1 Net income per share: Basic earnings per share attributable to Biogen Inc. $ 3.47 $ 4.07 $ 5.80 $ (1.41 ) $ 11.94 Diluted earnings per share attributable to Biogen Inc. $ 3.46 $ 4.07 $ 5.79 $ (1.40 ) $ 11.92 Weighted-average shares used in calculating: Basic earnings per share attributable to Biogen Inc. 215.6 211.9 211.4 211.5 212.6 Diluted earnings per share attributable to Biogen Inc. 215.9 212.2 211.8 212.0 213.0 (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year 2016 (i) (i) (j) (i) (k) (l) Product revenues, net $ 2,309.4 $ 2,466.0 $ 2,539.6 $ 2,502.9 $ 9,817.9 Revenues from anti-CD20 therapeutic programs $ 329.5 $ 349.2 $ 317.6 $ 318.2 $ 1,314.5 Other revenues $ 87.9 $ 79.0 $ 98.6 $ 50.9 $ 316.4 Total revenues $ 2,726.8 $ 2,894.2 $ 2,955.8 $ 2,872.0 $ 11,448.8 Gross profit (1) $ 2,413.8 $ 2,523.9 $ 2,538.9 $ 2,493.5 $ 9,970.1 Net income $ 969.2 $ 1,048.4 $ 1,030.2 $ 647.9 $ 3,695.7 Net income attributable to Biogen Inc. $ 970.9 $ 1,049.8 $ 1,032.9 $ 649.2 $ 3,702.8 Net income per share: Basic earnings per share attributable to Biogen Inc. $ 4.44 $ 4.79 $ 4.72 $ 3.00 $ 16.96 Diluted earnings per share attributable to Biogen Inc. $ 4.43 $ 4.79 $ 4.71 $ 2.99 $ 16.93 Weighted-average shares used in calculating: Basic earnings per share attributable to Biogen Inc. 218.9 219.1 218.9 216.6 218.4 Diluted earnings per share attributable to Biogen Inc. 219.3 219.4 219.4 217.0 218.8 (1) Gross profit is calculated as total revenues less cost of sales, excluding amortization of acquired intangible assets. (a) Net income and net income attributable to Biogen Inc. for the first, second, third and fourth quarters of 2017 include a pre-tax charge of $353.6 million , $29.4 million , $30.4 million and $30.8 million , respectively, related to our U.S. and rest of world licenses to Forward Pharma's intellectual property, including Forward Pharma's intellectual property related to TECFIDERA. (b) Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to research and development expense of $300.0 million for an upfront payment to BMS upon the closing of our agreement to exclusively license BIIB092. (c) Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to acquired in-process research and development of $120.0 million for an upfront payment to Remedy upon closing of the asset purchase transaction. (d) Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to research and development expense of $60.0 million for a developmental milestone that became payable to the former shareholders of iPierian upon dosing of the first patient in the Phase 2 PSP study for BIIB092. (e) Net income attributable to Biogen Inc., for the fourth quarter of 2017, includes a pre-tax charge to noncontrolling interest of $150.0 million for a payment to Neurimmune in exchange for a 15% reduction in royalty rates payable on potential commercial sales of aducanumab. (f) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes pre-tax charges to research and development expense of $28.0 million and $50.0 million for an upfront payment and a continuation payment, respectively, to Alkermes. (g) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes a pre-tax charge to research and development expense of $25.0 million for an upfront payment to Ionis upon entering into a new collaboration agreement to identify new antisense-oligonucleotide drug candidates for the treatment of SMA. (h) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes $1,173.6 million related to the provisions of the 2017 Tax Act, including a $989.6 million expense under the Transition Toll Tax. (i) Net income and net income attributable to Biogen Inc. for the second, third and fourth quarters of 2016 includes additional pre-tax depreciation expense totaling $15.8 million , $15.7 million and $14.0 million , respectively, as part of our decision to cease manufacturing and vacate our small-scale biologics manufacturing facility in Cambridge, MA as well as close and vacate our warehouse space in Somerville, MA. (j) Net income and net income attributable to Biogen Inc. for the third quarter of 2016 includes a pre-tax charge to research and development expense of $75.0 million for a license fee paid to Ionis as we exercised our option to develop and commercialize SPINRAZA. (k) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2016 includes a pre-tax charge to research and development expense of $50.0 million for a milestone payment due to Eisai related to the initiation of a Phase 3 trial for E2609. (l) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2016 includes a pre-tax charge of $454.8 million related to our January 2017 settlement and license agreement with Forward Pharma. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Karyopharm Therapeutics Inc. In January 2018 we acquired the exclusive worldwide rights to develop and commercialize Karyopharm Therapeutics Inc.'s (Karyopharm) investigational oral compound BIIB100 (formerly known as KPT-350) for the treatment of certain neurological and neurodegenerative conditions, primarily in ALS. We will pay Karyopharm an upfront payment of $10.0 million and we may pay Karyopharm up to $207.0 million in additional milestone payments, and potential royalties. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Business Overview | Biogen is a global biopharmaceutical company focused on discovering, developing and delivering worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases, including in our core growth areas of multiple sclerosis (MS) and neuroimmunology, Alzheimer’s disease (AD) and dementia, movement disorders and neuromuscular disorders, including spinal muscular atrophy (SMA) and amyotrophic lateral sclerosis (ALS). We also plan to invest in emerging growth areas such as pain, ophthalmology, neuropsychiatry and acute neurology. In addition, we are employing innovative technologies to discover potential treatments for rare and genetic disorders, including new ways of treating diseases through gene therapy in the previously mentioned areas. We also manufacture and commercialize biosimilars of advanced biologics. Our marketed products include TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA and FAMPYRA for the treatment of MS, SPINRAZA for the treatment of SMA and FUMADERM for the treatment of severe plaque psoriasis. We also have certain business and financial rights with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL) and other conditions, GAZYVA for the treatment of CLL and follicular lymphoma, OCREVUS for the treatment of primary progressive MS and relapsing MS and other potential anti-CD20 therapies under a collaboration agreement with Genentech, Inc. (Genentech), a wholly-owned member of the Roche Group. We support our drug discovery and development efforts through the commitment of significant resources to discovery, research and development programs and business development opportunities, particularly within our core and emerging growth areas. For nearly two decades we have led in the research and development of new therapies to treat MS, resulting in our leading portfolio of MS treatments. Now our research is focused on additional improvements in the treatment of MS, such as the development of next generation therapies for MS, with a goal to reverse or possibly repair damage caused by the disease. We are also applying our scientific expertise to solve some of the most challenging and complex diseases, including AD, progressive supranuclear palsy (PSP), a rare condition that affects movement, speech, vision and cognitive function, Parkinson's disease and ALS. Our innovative drug development and commercialization activities are complemented by our biosimilar therapies that expand access to medicines and reduce the cost burden for healthcare systems. We are leveraging our manufacturing capabilities and know-how to develop, manufacture and market biosimilars through Samsung Bioepis, our joint venture with Samsung BioLogics Co. Ltd. (Samsung Biologics). Under our commercial agreement, we market and sell BENEPALI, an etanercept biosimilar referencing ENBREL, and FLIXABI, an infliximab biosimilar referencing REMICADE in the European Union (E.U.). Hemophilia Spin-Off On February 1, 2017, we completed the spin-off of our hemophilia business, Bioverativ Inc. (Bioverativ), as an independent, publicly traded company. Our consolidated results of operations and financial position included in these audited consolidated financial statements reflect the financial results of our hemophilia business for all periods through January 31, 2017. For additional information on the spin-off of our hemophilia business, please read Note 3, Hemophilia Spin-Off, to these consolidated financial statements. |
Consolidation | Our consolidated financial statements reflect our financial statements, those of our wholly-owned subsidiaries and those of certain variable interest entities where we are the primary beneficiary. For consolidated entities where we own or are exposed to less than 100% of the economics, we record net income (loss) attributable to noncontrolling interests in our consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation. In determining whether we are the primary beneficiary of an entity, we apply a qualitative approach that determines whether we have both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. These considerations impact the way we account for our existing collaborative relationships and other arrangements. We continuously assess whether we are the primary beneficiary of a variable interest entity as changes to existing relationships or future transactions may result in us consolidating or deconsolidating one or more of our collaborators or partners. |
Use of Estimates | The preparation of our consolidated financial statements requires us to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. On an on-going basis we evaluate our estimates, judgments and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. Actual results may differ from these estimates under different assumptions or conditions. |
Revenue Recognition | We recognize revenues when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; our price to the customer is fixed or determinable; and collectability is reasonably assured. Product Revenues Revenues from product sales are recognized when title and risk of loss have passed to the customer, which is typically upon delivery. Reserves for Discounts and Allowances Revenues from product sales are recorded net of reserves established for applicable discounts and allowances, including those associated with the implementation of pricing actions in certain of the international markets in which we operate. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer). Our estimates take into consideration our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Actual amounts may ultimately differ from our estimates. If actual results vary, we adjust these estimates, which could have an effect on earnings in the period of adjustment. Product revenue reserves are categorized as follows: discounts, contractual adjustments and returns. Discounts include trade term discounts and wholesaler incentives. Trade term discounts and wholesaler incentives primarily relate to estimated obligations for credits to be granted to wholesalers for remitting payment on their purchases within established incentive periods and credits to be granted to wholesalers for compliance with various contractually-defined inventory management practices, respectively. We determine these reserves based on our historical experience, including the timing of customer payments. Contractual adjustments primarily relate to Medicaid and managed care rebates, co-payment (copay) assistance, Veterans Administration (VA) and Public Health Service (PHS) discounts, specialty pharmacy program fees and other governmental rebates or applicable allowances. • Medicaid rebates relate to our estimated obligations to states under established reimbursement arrangements. Rebate accruals are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a liability which is included in other current liabilities. Our liability for Medicaid rebates consists of estimates for claims that a state will make for the current quarter, claims for prior quarters that have been estimated for which an invoice has not been received, invoices received for claims from the prior quarters that have not been paid, and an estimate of potential claims that will be made for inventory that exists in the distribution channel at period end. • Governmental rebates or chargebacks, including VA and PHS discounts, represent our estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list prices we charge to wholesalers which provide those products. The wholesaler charges us for the difference between what the wholesaler pays for the products and the ultimate selling price to the qualified healthcare providers. Rebate and chargeback reserves are established in the same period as the related revenue is recognized, resulting in a reduction in product revenue and accounts receivable. Chargeback amounts are generally determined at the time of resale to the qualified healthcare provider from the wholesaler, and we generally issue credits for such amounts within a few weeks of the wholesaler notifying us about the resale. Our reserves for VA, PHS and chargebacks consist of amounts that we expect to issue for inventory that exists at the wholesalers that we expect will be sold to qualified healthcare providers and chargebacks that wholesalers have claimed for which we have not issued a credit. • Managed care rebates represent our estimated obligations to third parties, primarily pharmacy benefit managers. Rebate accruals are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a liability which is included in accrued expenses and other current liabilities. These rebates result from performance-based goals, formulary position and price increase limit allowances (price protection). The calculation of the accrual for these rebates is based on an estimate of the customer’s buying patterns and the resulting applicable contractual rebate rate(s) to be earned over a contractual period. • Copay assistance represents financial assistance to qualified patients, assisting them with prescription drug co-payments required by insurance. The calculation of the accrual for copay is based on an estimate of claims and the cost per claim that we expect to receive associated with inventory that exists in the distribution channel at period end. • Other governmental rebates, non-US pharmaceutical taxes or applicable allowances primarily relate to mandatory rebates and discounts in international markets where government-sponsored healthcare systems are the primary payors for healthcare. Product returns are established for returns expected to be made by wholesalers and are recorded in the period the related revenue is recognized, resulting in a reduction to product sales. In accordance with contractual terms, wholesalers are permitted to return product for reasons such as damaged or expired product. The majority of wholesaler returns are due to product expiration. Expired product return reserves are estimated through a comparison of historical return data to their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product. In addition to the discounts, rebates and product returns described above and classified as a reduction of revenue, we also maintain certain customer service contracts with distributors and other customers in the distribution channel that provide us with inventory management, data and distribution services, which are generally reflected as a reduction of revenue. To the extent we can demonstrate a separable benefit and fair value for these services, we classify these payments in selling, general and administrative expenses. Revenues from Anti-CD20 Therapeutic Programs Revenues from anti-CD20 therapeutic programs consist of: (i) our share of pre-tax profits and losses in the United States (U.S.) for RITUXAN and GAZYVA; (ii) reimbursement of our selling and development expenses in the U.S. for RITUXAN; and (iii) other revenues from anti-CD20 therapeutic programs, which primarily consist of our share of pre-tax co-promotion profits on RITUXAN in Canada and royalty revenues on sales of OCREVUS. Pre-tax co-promotion profits on RITUXAN and GAZYVA are calculated and paid to us by Genentech in the U.S. Pre-tax co-promotion profits on RITUXAN are calculated and paid to us by the Roche Group in Canada. Pre-tax co-promotion profits consist of U.S. and Canadian net sales to third-party customers less applicable costs to manufacture, third-party royalty expenses, distribution, selling and marketing expenses and joint development expenses incurred by Genentech, the Roche Group and us. Our share of the pre-tax profits on RITUXAN and GAZYVA in the U.S. and pre-tax co-promotion profits on RITUXAN in Canada include estimates made by Genentech and those estimates are subject to change. Actual results may differ from our estimates. For additional information on our collaboration with Genentech, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Royalty Revenues We receive royalty revenues on sales by our licensees of other products covered under patents that we own. We do not have future performance obligations under these license arrangements. We record these revenues based on estimates of the sales that occurred during the relevant period as a component of other revenues. The relevant period estimates of sales are based on interim data provided by licensees and analysis of historical royalties that have been paid to us, adjusted for any changes in facts and circumstances, as appropriate. Differences between actual and estimated royalty revenues are adjusted for in the period in which they become known, typically the following quarter. Historically, adjustments have not been material when compared to actual amounts paid by licensees. Multiple-Element Revenue Arrangements We may enter into transactions that involve the sale of products and related services under multiple element arrangements. In accounting for these transactions, we assess the elements of the contract and whether each element has standalone value and allocate revenues to the various elements based on their estimated selling price as a component of total revenues. The selling price of a revenue generating element can be based on current selling prices offered by us or another party for current products or management’s best estimate of a selling price. Revenues allocated to an individual element are recognized when all other revenue recognition criteria are met for that element. Collaborative and Other Relationships Our development and commercialization arrangement with AbbVie Inc. (AbbVie) represents a collaborative arrangement as each party is an active participant and exposed to significant risks and rewards of the arrangement. Where we are the principal on sales transactions with third parties, we recognize revenues, cost of sales and operating expenses on a gross basis in their respective lines in our consolidated statements of income. Where we are not the principal on sales transactions with third parties, we record our share of the revenues, cost of sales and operating expenses on a net basis in collaborative and other relationships included in other revenue in our consolidated statements of income. For additional information on our collaboration with AbbVie, please read Note 20, Collaborative and Other Relationships , to these consolidated financial statements. |
Fair Value Measurements | We have certain financial assets and liabilities recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements. • Level 1 — Fair values are determined utilizing quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; • Level 2 — Fair values are determined by utilizing quoted prices for identical or similar assets and liabilities in active markets or other market observable inputs such as interest rates, yield curves and foreign currency spot rates; and • Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The majority of our financial assets have been classified as Level 2. Our financial assets (which include our cash equivalents, derivative contracts, marketable debt securities and plan assets for deferred compensation) have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third-party pricing services or other market observable data. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. We validate the prices provided by our third-party pricing services by reviewing their pricing methods and matrices, obtaining market values from other pricing sources and analyzing pricing data in certain instances. After completing our validation procedures, we did not adjust or override any fair value measurements provided by our pricing services as of December 31, 2017 and 2016 . Other Assets and Liabilities The carrying amounts reflected in our consolidated balance sheets for current accounts receivable, due from anti-CD20 therapeutic programs, other current assets, accounts payable and accrued expenses and other, approximate fair value due to their short-term maturities. |
Cash and Cash Equivalents | We consider only those investments which are highly liquid, readily convertible to cash and that mature within three months from date of purchase to be cash equivalents. As of December 31, 2017 and 2016 , cash equivalents were comprised of money market funds and commercial paper, overnight reverse repurchase agreements and other debt securities with maturities less than 90 days from the date of purchase. |
Accounts Receivable | The majority of our accounts receivable arise from product sales and primarily represent amounts due from our wholesale distributors, public hospitals and other government entities. We monitor the financial performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile. We provide reserves against trade receivables for estimated losses that may result from a customer’s inability to pay. Amounts determined to be uncollectible are charged or written-off against the reserve. To date, our historical reserves and write-offs of accounts receivable have not been significant. In countries where we have experienced a pattern of payments extending beyond our contractual payment term and we expect to collect receivables greater than one year from the time of sale, we have discounted our receivables and reduced related revenues over the period of time that we estimate those amounts will be paid using the country’s market-based borrowing rate for such period. The related receivables are classified at the time of sale as non-current assets. We accrete interest income on these receivables, which is recognized as a component of other income (expense), net in our consolidated statements of income. |
Concentration of Credit Risk | Financial instruments that potentially subject us to concentrations of credit risk include cash and cash equivalents, investments, derivatives and accounts receivable. We attempt to minimize the risks related to cash and cash equivalents and investments by investing in a broad and diverse range of financial instruments as previously defined by us. We have established guidelines related to credit ratings and maturities intended to safeguard principal balances and maintain liquidity. Our investment portfolio is maintained in accordance with our investment policy, which defines allowable investments, specifies credit quality standards and limits the credit exposure of any single issuer. We minimize credit risk resulting from derivative instruments by choosing only highly rated financial institutions as counterparties. Concentrations of credit risk with respect to receivables, which are typically unsecured, are somewhat mitigated due to the wide variety of customers and markets using our products, as well as their dispersion across many different geographic areas. The majority of our accounts receivable arise from product sales in the U.S. and Europe and have standard payment terms that generally require payment within 30 to 90 days . We monitor the financial performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile. We continue to monitor these conditions and assess their possible impact on our business. As of December 31, 2017 and 2016 , two wholesale distributors individually accounted for approximately 26.5% and 19.0% , and 37.2% and 19.2% , of accounts receivable, net, respectively. |
Marketable Securities and Other Investments | Marketable Debt Securities Available-for-sale debt securities are recorded at fair market value and unrealized gains and losses are included in accumulated other comprehensive income (loss) in equity, net of related tax effects, unless the security has experienced a credit loss, we have determined that we have the intent to sell the security or we have determined that it is more likely than not that we will have to sell the security before its expected recovery. Realized gains and losses are reported in other income (expense), net, on a specific identification basis. Marketable Equity Securities Our marketable equity securities represent investments in publicly traded equity securities and are included in investments and other assets in our consolidated balance sheets. When assessing whether a decline in the fair value of a marketable equity security is other-than-temporary, we consider the fair market value of the security, the duration of the security’s decline and prospects for the underlying business, including favorable or adverse clinical trial results, new product initiatives and new collaborative agreements with the companies in which we have invested. Non-Marketable Equity Securities We also invest in equity securities of companies whose securities are not publicly traded and where fair value is not readily available. These investments are recorded using either the cost method or the equity method of accounting, depending on our ownership percentage and other factors that suggest we have significant influence. We monitor these investments to evaluate whether any decline in their value has occurred that would be other-than-temporary, based on the implied value of recent company financings, public market prices of comparable companies and general market conditions and are included in investments and other assets in our consolidated balance sheets. Evaluating Investments for Other-than-Temporary Impairments We conduct periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive income. For available-for-sale debt securities with unrealized losses, management performs an analysis to assess whether we intend to sell or whether we would more likely than not be required to sell the security before the expected recovery of the amortized cost basis. Where we intend to sell a security, or may be required to do so, the security’s decline in fair value is deemed to be other-than-temporary and the full amount of the unrealized loss is reflected in earnings as an impairment loss. Regardless of our intent to sell a security, we perform additional analysis on all securities with unrealized losses to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where we do not expect to receive cash flows sufficient to recover the amortized cost basis of a security. For equity securities, when assessing whether a decline in value is other-than-temporary, we consider the fair market value of the security, the duration of the security’s decline and the financial condition of the issuer. We then consider our intent and ability to hold the equity security for a period of time sufficient to recover our carrying value. Where we have determined that we lack the intent and ability to hold an equity security to its expected recovery, the security’s decline in fair value is deemed to be other-than-temporary and is reflected in earnings as an impairment loss. |
Equity Method of Accounting | In circumstances where we have the ability to exercise significant influence over the operating and financial policies of a company in which we have an investment, we utilize the equity method of accounting for recording investment activity. In assessing whether we exercise significant influence, we consider the nature and magnitude of our investment, the voting and protective rights we hold, any participation in the governance of the other company and other relevant factors such as the presence of a collaborative or other business relationship. Under the equity method of accounting, we record in our results of operations our share of income or loss of the other company. If our share of losses exceeds the carrying value of our investment, we will suspend recognizing additional losses and will continue to do so unless we commit to providing additional funding. |
Inventory | Inventories are stated at the lower of cost or market with cost based on the first-in, first-out method. We classify our inventory costs as long-term when we expect to utilize the inventory beyond our normal operating cycle and include these costs in investments and other assets in our consolidated balance sheets. Inventory that can be used in either the production of clinical or commercial products is expensed as research and development costs when identified for use in a clinical manufacturing campaign. Capitalization of Inventory Costs We capitalize inventory costs associated with our products prior to regulatory approval, when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized. We consider numerous attributes in evaluating whether the costs to manufacture a particular product should be capitalized as an asset. We assess the regulatory approval process and where the particular product stands in relation to that approval process, including any known safety or efficacy concerns, potential labeling restrictions and other impediments to approval. We evaluate our anticipated research and development initiatives and constraints relating to the product and the indication in which it will be used. We consider our manufacturing environment including our supply chain in determining logistical constraints that could hamper approval or commercialization. We consider the shelf life of the product in relation to the expected timeline for approval and we consider patent related or contract issues that may prevent or delay commercialization. We also base our judgment on the viability of commercialization, trends in the marketplace and market acceptance criteria. Finally, we consider the reimbursement strategies that may prevail with respect to the product and assess the economic benefit that we are likely to realize. We expense previously capitalized costs related to pre-approval inventory upon a change in such judgment, due to, among other potential factors, a denial or significant delay of approval by necessary regulatory bodies. Obsolescence and Unmarketable Inventory We periodically review our inventories for excess or obsolescence and write-down obsolete or otherwise unmarketable inventory to its estimated net realizable value. If the actual net realizable value is less than that estimated by us, or if it is determined that inventory utilization will further diminish based on estimates of demand, additional inventory write-downs may be required. Additionally, our products are subject to strict quality control and monitoring that we perform throughout the manufacturing process. In the event that certain batches or units of product no longer meet quality specifications, we will record a charge to cost of sales to write-down any unmarketable inventory to its estimated net realizable value. In all cases, product inventory is carried at the lower of cost or its estimated net realizable value. Amounts written-down due to unmarketable inventory are charged to cost of sales. |
Property, Plant and Equipment | Property, plant and equipment are carried at cost, subject to review for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The cost of normal, recurring, or periodic repairs and maintenance activities related to property, plant and equipment are expensed as incurred. The cost for planned major maintenance activities, including the related acquisition or construction of assets, is capitalized if the repair will result in future economic benefits. Interest costs incurred during the construction of major capital projects are capitalized until the underlying asset is ready for its intended use, at which point the interest costs are amortized as depreciation expense over the life of the underlying asset. We also capitalize certain direct and incremental costs associated with the validation effort required for licensing by regulatory agencies of new manufacturing equipment for the production of a commercially approved drug. These costs primarily include direct labor and material and are incurred in preparing the equipment for its intended use. The validation costs are either amortized over the life of the related equipment or expensed as cost of sales when the product produced in the validation process is sold. In addition, we capitalize certain internal use computer software development costs. If the software is an integral part of production assets, these costs are included in machinery and equipment and are amortized on a straight-line basis over the estimated useful lives of the related software, which generally range from three to five years . We generally depreciate or amortize the cost of our property, plant and equipment using the straight-line method over the estimated useful lives of the respective assets, which are summarized as follows: Asset Category Useful Lives Land Not depreciated Buildings 15 to 40 years Leasehold Improvements Lesser of the useful life or the term of the respective lease Furniture and Fixtures 5 to 7 years Machinery and Equipment 5 to 20 years Computer Software and Hardware 3 to 5 years When we dispose of property, plant and equipment, we remove the associated cost and accumulated depreciation from the related accounts in our consolidated balance sheets and include any resulting gain or loss in our consolidated statements of income. |
Intangible Assets | Our intangible assets consist of acquired and in-licensed rights and patents, developed technology, out-licensed patents, in-process research and development acquired after January 1, 2009, trademarks and trade names. Our intangible assets are recorded at fair value at the time of their acquisition and are stated in our consolidated balance sheets net of accumulated amortization and impairments, if applicable. Intangible assets related to acquired and in-licensed rights and patents, developed technology and out-licensed patents are amortized over their estimated useful lives using the economic consumption method if anticipated future revenues can be reasonably estimated. The straight-line method is used when revenues cannot be reasonably estimated. Amortization is recorded as amortization of acquired intangible assets in our consolidated statements of income. Acquired and in-licensed rights and patents primarily relate to obtaining the fair value of the U.S. and rest of world licenses to Forward Pharma A/S' (Forward Pharma) intellectual property, including Forward Pharma's intellectual property related to TECFIDERA, and our acquisition of all remaining rights to TYSABRI from Elan Pharma International, Ltd. (Elan), an affiliate of Elan Corporation, plc. Developed technology primarily relates to our AVONEX product, which was recorded in connection with the merger of Biogen, Inc. and IDEC Pharmaceuticals Corporation in 2003. We amortize the intangible assets related to TECFIDERA, TYSABRI and AVONEX using the economic consumption method based on revenues generated from the products underlying the related intangible assets. An analysis of the anticipated lifetime revenues of TECFIDERA, TYSABRI and AVONEX is performed annually during our long-range planning cycle, which is generally updated in the third quarter of each year, and whenever events or changes in circumstances would significantly affect the anticipated lifetime revenues of TECFIDERA, TYSABRI or AVONEX. Intangible assets related to trademarks, trade names and in-process research and development prior to commercialization are not amortized because they have indefinite lives; however, they are subject to review for impairment. We review our intangible assets with indefinite lives for impairment annually, as of October 31, and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. |
Acquired In-process Research and Development (IPR&D) | Acquired IPR&D represents the fair value assigned to research and development assets that have not reached technological feasibility. The value assigned to acquired IPR&D is determined by estimating the costs to develop the acquired technology into commercially viable products, estimating the resulting revenues from the projects and discounting the net cash flows to present value. The revenues and costs projections used to value acquired IPR&D are, as applicable, reduced based on the probability of success of developing a new drug. Additionally, the projections consider the relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by us and our competitors. The rates utilized to discount the net cash flows to their present value are commensurate with the stage of development of the projects and uncertainties in the economic estimates used in the projections. Upon the acquisition of IPR&D, we complete an assessment of whether our acquisition constitutes the purchase of a single asset or a group of assets. We consider multiple factors in this assessment, including the nature of the technology acquired, the presence or absence of separate cash flows, the development process and stage of completion, quantitative significance and our rationale for entering into the transaction. If we acquire a business as defined under applicable accounting standards, then the acquired IPR&D is capitalized as an intangible asset. If we acquire an asset or group of assets that do not meet the definition of a business, then the acquired IPR&D is expensed on its acquisition date. Future costs to develop these assets are recorded to research and development expense as they are incurred. When performing our impairment assessment, we calculate the fair value using the same methodology as described above. If the carrying value of our acquired IPR&D exceeds its fair value, then the intangible asset is written-down to its fair value. Certain IPR&D programs have a fair value that is not significantly in excess of carrying value, including treatments for forms of neuropathic pain, such as trigeminal neuralgia (TGN). Such programs could become impaired if assumptions used in determining the fair value change. Impairments are recorded as amortization of acquired intangible assets in our consolidated statements of income. |
Goodwill | Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. Goodwill is not amortized, but reviewed for impairment. Goodwill is reviewed annually, as of October 31, and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable. We compare the fair value of our reporting unit to its carrying value. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of our reporting unit, we would record an impairment loss equal to the difference. As described in Note 25, Segment Information, to these consolidated financial statements, we operate in one operating segment which we consider our only reporting unit. |
Impairment of Long-Lived Assets | Long-lived assets to be held and used, including property, plant and equipment and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written-down to their fair values. Long-lived assets to be disposed of are carried at fair value less costs to sell. |
Contingent Consideration | The consideration for our acquisitions often includes future payments that are contingent upon the occurrence of a particular event or events. For acquisitions completed before January 1, 2009, we record contingent consideration resulting from a business combination when the contingency is resolved. For acquisitions that qualify as business combinations completed after January 1, 2009, we record an obligation for such contingent payments at fair value on the acquisition date. We estimate the fair value of contingent consideration obligations through valuation models that incorporate probability-adjusted assumptions related to the achievement of the milestones and thus likelihood of making related payments. We revalue our contingent consideration obligations each reporting period. Changes in the fair value of our contingent consideration obligations are recognized in our consolidated statements of income. Changes in the fair value of the contingent consideration obligations can result from changes to one or multiple inputs, including adjustments to the discount rates, changes in the amount or timing of expected expenditures associated with product development, changes in the amount or timing of cash flows and reserves associated with products upon commercialization, changes in the assumed achievement or timing of any cumulative sales-based and development milestones, changes in the probability of certain clinical events and changes in the assumed probability associated with regulatory approval. Discount rates in our valuation models represent a measure of the credit risk associated with settling the liability. The period over which we discount our contingent obligations is based on the current development stage of the product candidates, our specific development plan for that product candidate adjusted for the probability of completing the development step, and when the contingent payments would be triggered. In estimating the probability of success, we utilize data regarding similar milestone events from several sources, including industry studies and our own experience. These fair value measurements are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense we record in any given period. |
Derivative Instruments and Hedging Activities | We recognize all derivative instruments as either assets or liabilities at fair value in our consolidated balance sheets. Changes in the fair value of derivatives are recorded each period in current earnings or accumulated other comprehensive income (loss), depending on whether a derivative is designated as part of a hedge transaction and, if so, the type of hedge transaction. We classify the cash flows from these instruments in the same category as the cash flows from the hedged items. We do not hold or issue derivative instruments for trading or speculative purposes. We assess, both at inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of the hedged items. We also assess hedge ineffectiveness on a quarterly basis and record the gain or loss related to the ineffective portion to current earnings. If we determine that a forecasted transaction is no longer probable of occurring, we discontinue hedge accounting for the affected portion of the hedge instrument, and any related unrealized gain or loss on the contract is recognized in current earnings. |
Translation of Foreign Currencies | The functional currency for most of our foreign subsidiaries is their local currency. For our non-U.S. subsidiaries that transact in a functional currency other than the U.S. dollar, assets and liabilities are translated at current rates of exchange at the balance sheet date. Income and expense items are translated at the average foreign currency exchange rates for the period. Adjustments resulting from the translation of the financial statements of our foreign operations into U.S. dollars are excluded from the determination of net income and are recorded in accumulated other comprehensive income, a separate component of equity. For subsidiaries where the functional currency of the assets and liabilities differ from the local currency, non-monetary assets and liabilities are translated at the rate of exchange in effect on the date assets were acquired while monetary assets and liabilities are translated at current rates of exchange as of the balance sheet date. Income and expense items are translated at the average foreign currency rates for the period. Translation adjustments of these subsidiaries are included in other income (expense), net in our consolidated statements of income. |
Royalty Cost of Sales | We make royalty payments to a number of third parties under license or purchase agreements associated with our acquisition of intellectual property. These royalty payments are typically calculated as a percentage (royalty rate) of the sales of our products in a particular year. That royalty rate may remain constant, increase or decrease within each year based on the total amount of sales during the annual period. Each quarterly period, we estimate our total royalty obligation for the full year and recognize the proportional amount as cost of sales based on actual quarterly sales as a percentage of full year estimated sales. For example, if the level of net sales in any calendar year increases the royalty rate within the year, we will record our cost of sales at an even rate over the year, based on the estimated blended royalty rate. |
Accounting for Share-Based Compensation | Our share-based compensation programs grant awards that have included stock options, restricted stock units that vest based on stock performance known as market stock units (MSUs), performance-vested restricted stock units that settle in cash (CSPUs), time-vested restricted stock units (RSUs), performance-vested restricted stock units that can be settled in cash or shares of our common stock (PUs) at the sole discretion of the Compensation and Management Development Committee of the Board of Directors and shares issued under our employee stock purchase plan (ESPP). We charge the estimated fair value of awards against income over the requisite service period, which is generally the vesting period. Where awards are made with non-substantive vesting periods (for instance, where a portion of the award vests upon retirement eligibility), we estimate and recognize expense based on the period from the grant date to the date the employee becomes retirement eligible. The fair values of our stock option grants are estimated as of the date of grant using a Black-Scholes option valuation model. The estimated fair values of the stock options are then expensed over the options’ vesting periods. The fair values of our MSUs are estimated using a lattice model with a Monte Carlo simulation. We apply an accelerated attribution method to recognize share-based compensation expense over the applicable service period, net of estimated forfeitures when accounting for our MSUs. The probability of actual shares expected to be earned is considered in the grant date valuation, therefore the expense is not adjusted to reflect the actual units earned. The fair values of our RSUs are based on the market value of our stock on the date of grant. Compensation expense, net of forfeitures, for RSUs is recognized straight-line over the applicable service period. We apply an accelerated attribution method to recognize share-based compensation expense when accounting for our CSPUs and PUs and the fair value of the liability is remeasured at the end of each reporting period through expected settlement. Compensation expense associated with CSPUs and PUs are based upon the stock price and the number of units expected to be earned after assessing the probability that certain performance criteria will be met and the associated targeted payout level that is forecasted will be achieved, net of estimated forfeitures. Cumulative adjustments are recorded each quarter to reflect changes in the stock price and estimated outcome of the performance-related conditions until the date results are determined and settled. The purchase price of common stock under our ESPP is equal to 85% of the lesser of (i) the fair market value per share of the common stock on the first business day of an offering period and (ii) the fair market value per share of the common stock on the purchase date. The fair value of the discounted purchases made under our ESPP is calculated using the Black-Scholes model. The fair value of the look-back provision plus the 15% discount is recognized as compensation expense over the 90-day purchase period. |
Research and Development Expenses | Research and development expenses consist of upfront fees and milestones paid to collaborators and expenses incurred in performing research and development activities, which include compensation and benefits, facilities and overhead expenses, clinical trial expenses and fees paid to contract research organizations (CROs), clinical supply and manufacturing expenses, write-offs of inventory that was previously capitalized in anticipation of product launch and determined to no longer be realizable and other outside expenses. Research and development expenses are expensed as incurred. Payments we make for research and development services prior to the services being rendered are recorded as prepaid assets in our consolidated balance sheets and are expensed as the services are provided. We also accrue the costs of ongoing clinical trials associated with programs that have been terminated or discontinued for which there is no future economic benefit at the time the decision is made to terminate or discontinue the program. From time to time, we enter into development agreements in which we share expenses with a collaborative partner. We record payments received from our collaborative partners for their share of the development costs as a reduction of research and development expense, except as discussed in Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Because an initial indication has been approved for both RITUXAN and GAZYVA, expenses incurred by Genentech in the ongoing development of RITUXAN and GAZYVA are not recorded as research and development expense, but rather reduce our share of profits recorded as a component of revenues from anti-CD20 therapeutic programs. For collaborations with commercialized products, if we are the principal, we record revenues and the corresponding operating costs in their respective line items in our consolidated statements of income. If we are not the principal, we record operating costs as a reduction of revenue. |
Selling, General and Administrative Expenses | Selling, general and administrative expenses are primarily comprised of compensation and benefits associated with sales and marketing, finance, human resources, legal, information technology and other administrative personnel, outside marketing, advertising and legal expenses and other general and administrative costs. Advertising costs are expensed as incurred. For the years ended December 31, 2017 , 2016 and 2015 , advertising costs totaled $75.2 million , $106.3 million and $108.6 million , respectively. |
Income Taxes | The provision for income taxes includes federal, state, local and foreign taxes. Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be recovered or settled. We evaluate the realizability of our deferred tax assets and establish a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized. All tax effects associated with intercompany transfers of assets within our consolidated group, both current and deferred, are recorded as a prepaid tax or deferred charge and recognized through our consolidated statements of income when the asset transferred is sold to a third party or otherwise recovered through amortization of the asset's remaining economic life. If the asset transferred becomes impaired, for example through the obsolescence of inventory or discontinuation of a research program, we will expense any remaining deferred charge or prepaid tax. We account for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. We evaluate uncertain tax positions on a quarterly basis and consider various factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, information obtained during in process audit activities and changes in facts or circumstances related to a tax position. We also accrue for potential interest and penalties related to unrecognized tax benefits in income tax expense. |
Contingencies | We are currently involved in various claims and legal proceedings. Loss contingency provisions are recorded if the potential loss from any claim, asserted or unasserted, or legal proceeding is considered probable and the amount can be reasonably estimated or a range of loss can be determined. These accruals represent management’s best estimate of probable loss. Disclosure also is provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. On a quarterly basis, we review the status of each significant matter and assess its potential financial exposure. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation and may change our estimates. These changes in the estimates of the potential liabilities could have a material impact on our consolidated results of operations and financial position. |
Earnings per Share | Basic earnings per share is computed by dividing undistributed net income attributable to Biogen Inc. by the weighted-average number of common shares outstanding during the period. |
New Accounting Pronouncements | From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that we adopt as of the specified effective date. Unless otherwise discussed below, we do not believe that the adoption of recently issued standards have or may have a material impact on our consolidated financial statements or disclosures. In May 2014 the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes all existing revenue recognition requirements, including most industry-specific guidance. This new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued amendments to ASU No. 2014-09 that have the same effective date and transition date. These new standards became effective for us on January 1, 2018, and will be adopted using the modified retrospective method through a cumulative-effect adjustment directly to retained earnings as of that date. We have performed a review of these new standards as compared to our current accounting policies for customer contracts and collaborative relationships. During the fourth quarter of 2017 we finalized our assessments over the impact that these new standards will have on our consolidated results of operations, financial position and disclosures. As of December 31, 2017 , we have not identified any accounting changes that would materially impact the amount of reported revenues with respect to our product revenues, revenues from anti-CD20 therapeutic programs or other revenues; however, the adoption of these new standards may result in a change in the timing of revenue recognition related to certain of our contract manufacturing activities. As of December 31, 2017 , we expect to recognize an immaterial adjustment to retained earnings reflecting the cumulative impact for the accounting changes related to certain contract manufacturing arrangements made upon adoption of these new standards. In January 2016 the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This new standard amends certain aspects of accounting and disclosure requirements for financial instruments, including the requirement that equity investments with readily determinable fair values are to be measured at fair value with any changes in fair value recognized in a company's results of operations. This new standard does not apply to investments accounted for under the equity method of accounting or those investments that result in consolidation of the investee. Equity investments that do not have readily determinable fair values may be measured at fair value or at cost minus impairment adjusted for changes in observable prices. A financial liability that is measured at fair value in accordance with the fair value option is required to be presented separately in other comprehensive income for the portion of the total change in the fair value resulting from change in the instrument-specific credit risk. In addition, a valuation allowance should be evaluated on deferred tax assets related to available-for-sale debt securities in combination with other deferred tax assets. This new standard became effective for us on January 1, 2018. Based on our current investment holdings, the adoption of this new standard is not expected to have a material impact on our consolidated financial position or results of operations; however, it will result in the reclassification of where we recognize changes in fair value related to certain investments prospectively. In February 2016 the FASB issued ASU No. 2016-02, Leases (Topic 842) . This new standard establishes a right-of-use (ROU) model that requires all lessees recognize right-of-use assets and liabilities on their balance sheet that arise from leases with terms longer than 12 months as well as provide disclosures with respect to certain qualitative and quantitative information related to their leasing arrangements. This new standard will become effective for us on January 1, 2019. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are currently evaluating the impact that this new standard may have on our consolidated results of operations, financial position and disclosures, we expect that the adoption of this new standard may materially affect the reported amount of total assets and total liabilities within our consolidated balance sheet with no material impact to our consolidated statement of income. We are unable to quantify the impact at this time as the ultimate impact of adopting this new standard will depend on the total amount of our lease commitments as of the adoption date. In March 2016 the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This new standard requires recognition of the income tax effects of vested or settled awards in the income statement and involves several other aspects of the accounting for share-based payment transactions, including the income tax consequences and classification of awards as either equity or liabilities in the statement of cash flows. This new standard became effective for us on January 1, 2017. The adoption of this new standard did not have a material impact on our consolidated financial position, results of operations or statement of cash flows; however, it has resulted in the reclassification of certain prior year amounts in our consolidated statements of cash flows to conform to our current year presentation. Specifically, amounts previously disclosed in net cash flows used in financing activities related to our excess tax benefit from share-based compensation have been reclassified to net cash flows provided by operating activities and amounts related to cash paid when withholding shares for tax withholding purposes, previously disclosed in net cash flows provided by operating activities, have been reclassified to net cash flows used in financing activities. In October 2016 the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other Than Inventory . This new standard eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory. As a result, the income tax consequences from the intra-entity transfer of an asset other than inventory and associated changes to deferred taxes will be recognized when the transfer occurs. This new standard became effective for us on January 1, 2018. We will adopt this new standard using the modified retrospective method, through a cumulative-effect adjustment directly to retained earnings as of the beginning of that date. Based on currently enacted tax rates, upon adoption, we will record additional deferred tax assets of approximately $0.5 billion and an increase to retained earnings of approximately $0.5 billion . We will recognize incremental deferred income tax expense thereafter as these net deferred tax assets are utilized. In January 2017 the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. We elected to early adopt this new standard as of January 1, 2017, with prospective application to any business development transactions, including our recent asset acquisition of BIIB093 from Remedy Pharmaceuticals Inc. (Remedy) in May 2017. For additional information on this transaction, please read Note 2, Acquisitions, to these consolidated financial statements. In January 2017 the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment . This new standard eliminates Step 2 from the goodwill impairment test. Under the amendments in ASU No. 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds that reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We elected to early adopt this new standard as of October 31, 2017, during our annual review of goodwill. The adoption of this new standard resulted in a change to our accounting policy; however, did not have an impact on our consolidated financial position or results of operations. In March 2017 the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . This new standard amends the amortization period for certain purchased callable debt securities held at a premium by shortening the amortization period for the premium to the earliest call date. This new standard will become effective for us on January 1, 2019. We are currently evaluating the potential impact that this new standard may have on our consolidated financial position and results of operations. In August 2017 the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This new standard is intended to simplify hedge accounting by better aligning how an entity’s risk management activities and hedging relationships are presented in its financial statements and simplifies the application of hedge accounting guidance in certain situations. This new standard expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This new standard will become effective for us on January 1, 2019; however, early adoption is permitted. For cash flow hedges existing at the adoption date, this new standard requires adoption on a modified retrospective basis with a cumulative-effect adjustment to retained earnings as of the effective date. The amendments to presentation guidance and disclosure requirements are required to be adopted prospectively. We are currently evaluating the date upon which we will adopt this new standard and the impact this new standard may have on our consolidated financial statements. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Property, plant and equipment estimated useful lives | Asset Category Useful Lives Land Not depreciated Buildings 15 to 40 years Leasehold Improvements Lesser of the useful life or the term of the respective lease Furniture and Fixtures 5 to 7 years Machinery and Equipment 5 to 20 years Computer Software and Hardware 3 to 5 years |
Hemophilia Spin-Off Hemophili37
Hemophilia Spin-Off Hemophilia Spin-Off (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and liabilities charged against equity | The following table summarizes the assets and liabilities that were charged against equity as a result of the spin-off of our hemophilia business: (In millions) Assets Cash $ 302.7 Accounts receivable 144.7 Inventory 116.1 Property, plant and equipment, net 20.2 Intangible assets, net 56.8 Goodwill 314.1 Other, net 53.7 Assets transferred, net $ 1,008.3 Liabilities Accrued expenses and other current liabilities $ 87.8 Other long-term liabilities 67.7 Liabilities transferred, net $ 155.5 |
Restructuring Restructuring (Ta
Restructuring Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Charges and spending related to our 2015 restructuring program | The following table summarizes the charges and spending related to our 2015 restructuring program during 2017: (In millions) Workforce Reduction Pipeline Programs Total Restructuring reserve as of December 31, 2015 $ 33.7 $ 3.6 $ 37.3 Expense 4.9 5.4 10.3 Payments (31.2 ) (9.0 ) (40.2 ) Adjustments to previous estimates, net (5.2 ) 2.9 (2.3 ) Restructuring reserve as of December 31, 2016 $ 2.2 $ 2.9 $ 5.1 Payments (1.7 ) (2.9 ) (4.6 ) Restructuring reserve as of December 31, 2017 $ 0.5 $ — $ 0.5 |
Revenue Reserves (Tables)
Revenue Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Sales Discounts, Returns and Allowances, Goods [Abstract] | |
Analysis of the change in reserves | An analysis of the change in reserves for discounts and allowances is summarized as follows: (In millions) Discounts Contractual Adjustments Returns Total 2017 Beginning balance $ 71.6 $ 482.7 $ 51.2 $ 605.5 Current provisions relating to sales in current year 583.0 2,307.4 26.9 2,917.3 Adjustments relating to prior years (0.1 ) 15.0 (8.9 ) 6.0 Payments/returns relating to sales in current year (475.8 ) (1,756.9 ) (0.1 ) (2,232.8 ) Payments/returns relating to sales in prior years (69.1 ) (442.2 ) (23.1 ) (534.4 ) Ending balance $ 109.6 $ 606.0 $ 46.0 $ 761.6 (In millions) Discounts Contractual Adjustments Returns Total 2016 Beginning balance $ 56.1 $ 548.7 $ 57.9 $ 662.7 Current provisions relating to sales in current year 592.6 2,044.5 30.9 2,668.0 Adjustments relating to prior years (1.4 ) 1.5 (16.8 ) (16.7 ) Payments/returns relating to sales in current year (522.5 ) (1,576.0 ) (1.0 ) (2,099.5 ) Payments/returns relating to sales in prior years (53.2 ) (536.0 ) (19.8 ) (609.0 ) Ending balance $ 71.6 $ 482.7 $ 51.2 $ 605.5 (In millions) Discounts Contractual Adjustments Returns Total 2015 Beginning balance $ 47.6 $ 387.1 $ 49.1 $ 483.8 Current provisions relating to sales in current year 459.7 1,732.1 37.6 2,229.4 Adjustments relating to prior years (1.3 ) (16.3 ) (14.7 ) (32.3 ) Payments/returns relating to sales in current year (405.9 ) (1,258.1 ) (2.6 ) (1,666.6 ) Payments/returns relating to sales in prior years (44.0 ) (296.1 ) (11.5 ) (351.6 ) Ending balance $ 56.1 $ 548.7 $ 57.9 $ 662.7 |
Total reserves, included in consolidated balance sheets | The total revenue-related reserves above, included in our consolidated balance sheets, are summarized as follows: As of December 31, (In millions) 2017 2016 Reduction of accounts receivable $ 189.6 $ 166.9 Component of accrued expenses and other 572.0 438.6 Total revenue-related reserves $ 761.6 $ 605.5 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of inventory | The components of inventory are summarized as follows: As of December 31, (In millions) 2017 2016 Raw materials $ 162.4 $ 170.4 Work in process 605.7 698.7 Finished goods 157.4 170.3 Total inventory $ 925.5 $ 1,039.4 Balance Sheet Classification: Inventory $ 902.7 $ 1,001.6 Investments and other assets 22.8 37.8 Total inventory $ 925.5 $ 1,039.4 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets, net of accumulated amortization, impairment charges and adjustments are summarized as follows: As of December 31, 2017 As of December 31, 2016 (In millions) Estimated Life Cost Accumulated Amortization Net Cost Accumulated Amortization Net Out-licensed patents 13-23 years $ 543.3 $ (535.6 ) $ 7.7 $ 543.3 $ (523.6 ) $ 19.7 Developed technology 15-23 years 3,005.3 (2,689.0 ) 316.3 3,005.3 (2,634.3 ) 371.0 In-process research and development Indefinite until commercialization 680.6 — 680.6 648.0 — 648.0 Trademarks and trade names Indefinite 64.0 — 64.0 64.0 — 64.0 Acquired and in-licensed rights and patents 4-18 years 3,971.4 (1,160.4 ) 2,811.0 3,481.7 (776.1 ) 2,705.6 Total intangible assets $ 8,264.6 $ (4,385.0 ) $ 3,879.6 $ 7,742.3 $ (3,934.0 ) $ 3,808.3 |
Estimated future amortization of intangible assets | Based upon this analysis, the estimated future amortization of acquired intangible assets for the next five years is expected to be as follows: (In millions) As of December 31, 2017 2018 $ 423.5 2019 401.8 2020 381.6 2021 254.3 2022 242.3 |
Summary of roll forward of the changes in goodwill | The following table provides a roll forward of the changes in our goodwill balance: As of December 31, (In millions) 2017 2016 Goodwill, beginning of year $ 3,669.3 $ 2,663.8 Elimination of goodwill allocated to our hemophilia business (314.1 ) — Increase to goodwill 1,267.3 1,026.9 Other 10.0 (21.4 ) Goodwill, end of year $ 4,632.5 $ 3,669.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities recorded at fair value | The tables below present information about our assets and liabilities that are regularly measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques we utilized to determine such fair value: (In millions) As of Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 1,229.4 $ — $ 1,229.4 $ — Marketable debt securities: Corporate debt securities 2,609.8 — 2,609.8 — Government securities 1,919.3 — 1,919.3 — Mortgage and other asset backed securities 643.4 — 643.4 — Marketable equity securities 11.8 11.8 — — Derivative contracts 2.7 — 2.7 — Plan assets for deferred compensation 28.5 — 28.5 — Total $ 6,444.9 $ 11.8 $ 6,433.1 $ — Liabilities: Derivative contracts $ 111.3 $ — $ 111.3 $ — Contingent consideration obligations 523.6 — — 523.6 Total $ 634.9 $ — $ 111.3 $ 523.6 (In millions) As of Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 2,039.6 $ — $ 2,039.6 $ — Marketable debt securities: Corporate debt securities 2,663.8 — 2,663.8 — Government securities 2,172.5 — 2,172.5 — Mortgage and other asset backed securities 561.7 — 561.7 — Marketable equity securities 24.9 24.9 — — Derivative contracts 61.0 — 61.0 — Plan assets for deferred compensation 34.5 — 34.5 — Total $ 7,558.0 $ 24.9 $ 7,533.1 $ — Liabilities: Derivative contracts $ 13.6 $ — $ 13.6 $ — Contingent consideration obligations 467.6 — — 467.6 Total $ 481.2 $ — $ 13.6 $ 467.6 |
Summary of fair and carrying value of debt instruments | The fair values of our debt instruments, which are Level 2 liabilities, are summarized as follows: As of December 31, (In millions) 2017 2016 Notes payable to Fumedica $ 3.2 $ 6.1 6.875% Senior Notes due March 1, 2018 — 583.7 2.900% Senior Notes due September 15, 2020 1,517.7 1,521.5 3.625% Senior Notes due September 15, 2022 1,032.9 1,026.6 4.050% Senior Notes due September 15, 2025 1,851.9 1,796.0 5.200% Senior Notes due September 15, 2045 2,077.6 1,874.5 Total $ 6,483.3 $ 6,808.4 |
Fair value of contingent consideration obligations | The following table provides a roll forward of the fair values of our contingent consideration obligations, which includes Level 3 measurements: As of December 31, (In millions) 2017 2016 Fair value, beginning of year $ 467.6 $ 506.0 Changes in fair value 62.7 14.8 Payments and other (6.7 ) (53.2 ) Fair value, end of year $ 523.6 $ 467.6 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Summary of financial assets with maturities of less than 90 days included within cash and cash equivalents | The following table summarizes our financial assets with maturities of less than 90 days from the date of purchase included in cash and cash equivalents in our consolidated balance sheets: As of December 31, (In millions) 2017 2016 Commercial paper $ 30.5 $ 31.0 Overnight reverse repurchase agreements 3.6 — Money market funds 948.0 741.7 Short-term debt securities 247.3 1,266.9 Total $ 1,229.4 $ 2,039.6 |
Marketable securities including strategic investments | The following tables summarize our marketable debt and equity securities, classified as available for sale: As of December 31, 2017 (In millions) Fair Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Corporate debt securities Current $ 1,039.3 $ — $ (0.2 ) $ 1,039.5 Non-current 1,570.5 0.9 — 1,569.6 Government securities Current 1,075.1 0.1 (0.7 ) 1,075.7 Non-current 844.2 0.2 (1.1 ) 845.1 Mortgage and other asset backed securities Current 0.8 — — 0.8 Non-current 642.6 1.1 (0.8 ) 642.3 Total marketable debt securities $ 5,172.5 $ 2.3 $ (2.8 ) $ 5,173.0 Marketable equity securities, non-current $ 11.8 $ 1.8 $ (4.4 ) $ 14.4 As of December 31, 2016 (In millions) Fair Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Corporate debt securities Current $ 1,408.6 $ 0.2 $ (0.6 ) $ 1,409.0 Non-current 1,255.2 1.2 (4.7 ) 1,258.7 Government securities Current 1,156.0 0.2 (0.3 ) 1,156.1 Non-current 1,016.5 0.5 (3.4 ) 1,019.4 Mortgage and other asset backed securities Current 4.0 — — 4.0 Non-current 557.7 0.8 (2.2 ) 559.1 Total marketable debt securities $ 5,398.0 $ 2.9 $ (11.2 ) $ 5,406.3 Marketable equity securities, non-current $ 24.9 $ 0.7 $ (9.3 ) $ 33.5 |
Summary of contractual maturities: Available-for-sale securities | The estimated fair value and amortized cost of our marketable debt securities available-for-sale by contractual maturity are summarized as follows: As of December 31, 2017 As of December 31, 2016 (In millions) Estimated Fair Value Amortized Cost Estimated Fair Value Amortized Cost Due in one year or less $ 2,115.2 $ 2,116.0 $ 2,568.6 $ 2,569.1 Due after one year through five years 2,730.0 2,730.0 2,552.6 2,559.7 Due after five years 327.3 327.0 276.8 277.5 Total available-for-sale securities $ 5,172.5 $ 5,173.0 $ 5,398.0 $ 5,406.3 |
Proceeds from marketable securities, excluding strategic investments | The proceeds from maturities and sales of marketable debt securities and resulting realized gains and losses are summarized as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Proceeds from maturities and sales $ 5,565.9 $ 7,378.9 $ 4,063.0 Realized gains $ 3.0 $ 3.3 $ 1.5 Realized losses $ 22.4 $ 4.3 $ 3.5 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign currency forward contracts that were entered into to hedge forecasted revenue | The notional value of foreign currency forward contracts that were entered into to hedge forecasted revenues and operating expenses is summarized as follows: Notional Amount As of December 31, Foreign Currency: (In millions) 2017 2016 Euro $ 1,875.6 $ 871.7 British pound sterling 150.9 — Swiss francs 88.7 — Canadian dollar 83.5 — Total foreign currency forward contracts $ 2,198.7 $ 871.7 |
Summary of the effect of derivatives designated as hedging instruments on our consolidated statements of income | The following table summarizes the effect of foreign currency forward contracts designated as hedging instruments in our consolidated statements of income: For the Years Ended December 31, Net Gains/(Losses) Reclassified from AOCI into Operating Income (Effective Portion) (in millions) Net Gains/(Losses) Recognized into Net Income (Ineffective Portion) (in millions) Location 2017 2016 2015 Location 2017 2016 2015 Revenues $ (32.5 ) $ 5.3 $ 173.2 Other income (expense) $ 8.9 $ 2.9 $ 4.9 Operating expenses $ 0.6 $ (1.5 ) $ — Other income (expense) $ (0.2 ) $ 0.1 $ — |
Summary of the fair value for our outstanding derivatives | The following table summarizes the fair value and presentation in our consolidated balance sheets of our outstanding derivatives including those designated as hedging instruments: (In millions) Balance Sheet Location Fair Value Hedging Instruments: Asset derivatives Other current assets $ 0.7 Investments and other assets $ 0.2 Liability derivatives Accrued expenses and other $ 84.7 Other long-term liabilities 23.6 Other Derivatives: Asset derivatives Other current assets $ 1.8 Liability derivatives Accrued expenses and other $ 3.0 (In millions) Balance Sheet Location Fair Value Hedging Instruments: Asset derivatives Other current assets $ 50.4 Investments and other assets $ 6.6 Liability derivatives Other long-term liabilities $ 4.6 Other Derivatives: Asset derivatives Other current assets $ 4.0 Liability derivatives Accrued expenses and other $ 9.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment, net | Components of property, plant and equipment, net are summarized as follows: As of December 31, (In millions) 2017 2016 Land $ 141.2 $ 137.8 Buildings 1,213.6 1,107.8 Leasehold improvements 80.6 123.7 Machinery and equipment 1,207.7 1,105.8 Computer software and hardware 767.1 746.8 Furniture and fixtures 55.3 60.6 Construction in progress 1,276.0 658.6 Total cost 4,741.5 3,941.1 Less: accumulated depreciation (1,559.1 ) (1,439.3 ) Total property, plant and equipment, net $ 3,182.4 $ 2,501.8 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Indebtedness | Our indebtedness is summarized as follows: As of December 31, (In millions) 2017 2016 Current portion: Notes payable to Fumedica $ 3.2 $ 3.0 Financing arrangement for the purchase of the RTP facility — 1.7 Current portion of notes payable and other financing arrangements $ 3.2 $ 4.7 Non-current portion: 6.875% Senior Notes due March 1, 2018 $ — $ 558.5 2.900% Senior Notes due September 15, 2020 1,482.4 1,485.3 3.625% Senior Notes due September 15, 2022 994.3 993.2 4.050% Senior Notes due September 15, 2025 1,736.3 1,734.8 5.200% Senior Notes due September 15, 2045 1,722.0 1,721.5 Notes payable to Fumedica — 3.0 Financing arrangement for the purchase of the RTP facility — 16.4 Non-current portion of notes payable and other financing arrangements $ 5,935.0 $ 6,512.7 |
Total debt maturities | The total gross payments, excluding our financing arrangement, due under our debt arrangements are as follows: (In millions) As of December 31, 2017 2018 $ 3.2 2019 — 2020 1,500.0 2021 — 2022 1,000.0 2023 and thereafter 3,500.0 Total $ 6,003.2 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of common stock | The following table describes the number of shares authorized, issued and outstanding of our common stock as of December 31, 2017 and 2016 : As of December 31, 2017 As of December 31, 2016 (In millions) Authorized Issued Outstanding Authorized Issued Outstanding Common stock 1,000.0 235.3 211.5 1,000.0 238.5 215.9 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the changes in accumulated other comprehensive income (loss), net of tax by component: (In millions) Unrealized Gains (Losses) on Securities Available for Sale, net of tax Unrealized Gains (Losses) on Cash Flow Hedges, net of tax Unfunded Status of Postretirement Benefit Plans, net of tax Translation Adjustments Total Balance, December 31, 2016 $ (10.8 ) $ 57.8 $ (32.7 ) $ (334.2 ) $ (319.9 ) Other comprehensive income (loss) before reclassifications (3.5 ) (193.8 ) (4.1 ) 158.7 (42.7 ) Amounts reclassified from accumulated other comprehensive income (loss) 12.7 31.5 — — 44.2 Net current period other comprehensive income (loss) 9.2 (162.3 ) (4.1 ) 158.7 1.5 Balance, December 31, 2017 $ (1.6 ) $ (104.5 ) $ (36.8 ) $ (175.5 ) $ (318.4 ) (In millions) Unrealized Gains (Losses) on Securities Available for Sale, net of tax Unrealized Gains (Losses) on Cash Flow Hedges, net of tax Unfunded Status of Postretirement Benefit Plans, net of tax Translation Adjustments Total Balance, December 31, 2015 $ (0.8 ) $ 10.2 $ (37.8 ) $ (195.6 ) $ (224.0 ) Other comprehensive income (loss) before reclassifications (10.6 ) 51.6 5.1 (138.6 ) (92.5 ) Amounts reclassified from accumulated other comprehensive income (loss) 0.6 (4.0 ) — — (3.4 ) Net current period other comprehensive income (loss) (10.0 ) 47.6 5.1 (138.6 ) (95.9 ) Balance, December 31, 2016 $ (10.8 ) $ 57.8 $ (32.7 ) $ (334.2 ) $ (319.9 ) (In millions) Unrealized Gains (Losses) on Securities Available for Sale, net of tax Unrealized Gains (Losses) on Cash Flow Hedges, net of tax Unfunded Status of Postretirement Benefit Plans, net of tax Translation Adjustments Total Balance, December 31, 2014 $ (0.4 ) $ 71.7 $ (31.6 ) $ (99.2 ) $ (59.5 ) Other comprehensive income (loss) before reclassifications (1.7 ) 110.8 (6.2 ) (96.4 ) 6.5 Amounts reclassified from accumulated other comprehensive income (loss) 1.3 (172.3 ) — — (171.0 ) Net current period other comprehensive income (loss) (0.4 ) (61.5 ) (6.2 ) (96.4 ) (164.5 ) Balance, December 31, 2015 $ (0.8 ) $ 10.2 $ (37.8 ) $ (195.6 ) $ (224.0 ) |
Reclassification out of accumulated other comprehensive income | The following table summarizes the amounts reclassified from accumulated other comprehensive income: (In millions) Income Statement Location Amounts Reclassified from Accumulated Other Comprehensive Income For the Years Ended December 31, 2017 2016 2015 Gains (losses) on securities available for sale Other income (expense) $ (19.5 ) $ (0.9 ) $ (2.0 ) Income tax benefit (expense) 6.8 0.3 0.7 Gains (losses) on cash flow hedges Revenues (32.5 ) 5.3 173.2 Operating expenses 0.6 (1.5 ) — Other income (expense) 0.3 0.2 (0.1 ) Income tax benefit (expense) 0.1 — (0.8 ) Total reclassifications, net of tax $ (44.2 ) $ 3.4 $ 171.0 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Basic and diluted earnings per share are calculated as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Numerator: Net income attributable to Biogen Inc. $ 2,539.1 $ 3,702.8 $ 3,547.0 Denominator: Weighted average number of common shares outstanding 212.6 218.4 230.7 Effect of dilutive securities: Stock options and employee stock purchase plan 0.1 0.1 0.1 Time-vested restricted stock units 0.2 0.2 0.3 Market stock units 0.1 0.1 0.1 Dilutive potential common shares 0.4 0.4 0.5 Shares used in calculating diluted earnings per share 213.0 218.8 231.2 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation expense included in consolidated statements of income | The following table summarizes share-based compensation expense included in our consolidated statements of income: For the Years Ended December 31, (In millions) 2017 2016 2015 Research and development $ 74.0 $ 84.5 $ 88.6 Selling, general and administrative 95.7 121.7 127.3 Restructuring charges — (1.8 ) (8.6 ) Subtotal 169.7 204.4 207.3 Capitalized share-based compensation costs (9.6 ) (14.6 ) (11.0 ) Share-based compensation expense included in total cost and expenses 160.1 189.8 196.3 Income tax effect (42.8 ) (54.0 ) (55.8 ) Share-based compensation expense included in net income attributable to Biogen Inc. $ 117.3 $ 135.8 $ 140.5 |
Summary of share-based compensation expense associated with each of our share-based compensating programs | The following table summarizes share-based compensation expense associated with each of our share-based compensation programs: For the Years Ended December 31, (In millions) 2017 2016 2015 Market stock units $ 22.4 $ 38.4 $ 38.1 Time-vested restricted stock units 107.3 120.0 119.0 Cash settled performance units 18.4 16.3 22.4 Performance units 12.3 18.6 13.9 Employee stock purchase plan 9.3 11.1 13.9 Subtotal 169.7 204.4 207.3 Capitalized share-based compensation costs (9.6 ) (14.6 ) (11.0 ) Share-based compensation expense included in total cost and expenses $ 160.1 $ 189.8 $ 196.3 |
Stock option activity | The following table summarizes our stock option activity: Shares Weighted Average Exercise Price Outstanding at December 31, 2016 66,000 $ 54.06 Hemophilia spin-off adjustment — $ — Granted — $ — Exercised (14,000 ) $ 50.89 Cancelled (10,000 ) $ 55.11 Outstanding at December 31, 2017 42,000 $ 53.83 |
Tax benefit and cash received from stock option exercises | The following table summarizes the amount of tax benefit realized for stock options and cash received from the exercise of stock options: For the Years Ended December 31, (In millions) 2017 2016 2015 Tax benefit realized for stock options $ 3.4 $ 4.0 $ 11.9 Cash received from the exercise of stock options $ 0.7 $ 2.2 $ 6.3 |
Market stock units activity | The following table summarizes our MSU activity: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 230,000 $ 355.60 Hemophilia spin-off adjustment 4,000 $ — Granted (a) 94,000 $ 382.59 Vested (112,000 ) $ 311.17 Forfeited (45,000 ) $ 372.35 Unvested at December 31, 2017 171,000 $ 370.83 |
Assumptions used in valuation of market based stock units | The assumptions used in our valuation are summarized as follows: For the Years Ended December 31, 2017 2016 2015 Expected dividend yield —% —% —% Range of expected stock price volatility 33.0% - 35.6% 38.2% - 40.7% 31.0% - 33.2% Range of risk-free interest rates 0.9% - 1.6% 0.6% - 0.9% 0.2% - 1.0% 30 calendar day average stock price on grant date $263.18 - $267.88 $260.67 - $304.86 $277.35 - $426.27 Weighted-average per share grant date fair value $382.59 $328.03 $493.43 |
Cash settled performance shares activity | The following table summarizes our CSPU activity: Shares Unvested at December 31, 2016 122,000 Hemophilia spin-off adjustment 3,000 Granted (a) 83,000 Vested (69,000 ) Forfeited (34,000 ) Unvested at December 31, 2017 105,000 |
Performance units activity | The following table summarizes our PU activity: Shares Unvested at December 31, 2016 110,000 Hemophilia spin-off adjustment 3,000 Granted (a) 40,000 Vested (43,000 ) Forfeited (19,000 ) Unvested at December 31, 2017 91,000 |
Time-vested restricted stock units activity | The following table summarizes our RSU activity: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 888,000 $ 303.49 Hemophilia spin-off adjustment 12,000 $ — Granted (a) 464,000 $ 293.41 Vested (350,000 ) $ 308.04 Forfeited (182,000 ) $ 292.57 Unvested at December 31, 2017 832,000 $ 291.85 |
Shares issued under employee stock purchase plan | The following table summarizes our ESPP activity: For the Years Ended December 31, (In millions, except share amounts) 2017 2016 2015 Shares issued under the 2015 ESPP 167,000 190,000 78,000 Shares issued under the 1995 ESPP — — 98,000 Cash received under the 2015 ESPP $ 39.8 $ 41.5 $ 19.3 Cash received under the 1995 ESPP $ — $ — $ 30.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income before income tax provision and the income tax expense | Income before income tax provision and the income tax expense consist of the following: For the Years Ended December 31, (In millions) 2017 2016 2015 Income before income taxes (benefit): Domestic $ 3,540.4 $ 3,655.4 $ 3,386.7 Foreign 1,588.4 1,277.6 1,380.6 Total $ 5,128.8 $ 4,933.0 $ 4,767.3 Income tax expense (benefit): Current: Federal $ 2,201.4 $ 1,304.3 $ 1,214.1 State 57.0 55.1 38.6 Foreign 108.6 52.9 54.5 Total 2,367.0 1,412.3 1,307.2 Deferred: Federal $ 241.0 $ (125.6 ) $ (129.6 ) State 9.9 (3.8 ) (1.9 ) Foreign (159.2 ) (45.6 ) (14.1 ) Total 91.7 (175.0 ) (145.6 ) Total income tax expense $ 2,458.7 $ 1,237.3 $ 1,161.6 |
Components of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities are summarized as follows: As of December 31, (In millions) 2017 2016 Deferred tax assets: Tax credits $ 60.0 $ 201.1 Inventory, other reserves and accruals 147.8 250.6 Intangibles, net 378.8 459.8 Net operating loss 209.8 65.9 Share-based compensation 26.9 61.5 Other 25.1 49.0 Valuation allowance (16.6 ) (16.1 ) Total deferred tax assets $ 831.8 $ 1,071.8 Deferred tax liabilities: Purchased intangible assets $ (250.7 ) $ (376.6 ) Depreciation, amortization and other (107.9 ) (113.5 ) Total deferred tax liabilities $ (358.6 ) $ (490.1 ) |
Reconciliation between the U.S. federal statutory tax rate and effective tax rate | A reconciliation between the U.S. federal statutory tax rate and our effective tax rate is summarized as follows: For the Years Ended December 31, 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % State taxes 0.8 0.9 0.5 Taxes on foreign earnings (11.1 ) (9.6 ) (10.0 ) Credits and net operating loss utilization (0.8 ) (1.4 ) (1.3 ) Purchased intangible assets 1.4 1.2 1.0 Manufacturing deduction (1.9 ) (1.9 ) (1.8 ) 2017 Tax Act 22.9 — — Impairment of ZINBRYTA related tax assets 0.9 — — Other permanent items 0.7 0.5 0.7 Other — 0.4 0.3 Effective tax rate 47.9 % 25.1 % 24.4 % |
Reconciliation of beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows: (In millions) 2017 2016 2015 Balance at January 1, $ 32.4 $ 67.9 $ 131.5 Additions based on tax positions related to the current period 5.7 7.2 10.5 Additions for tax positions of prior periods 7.3 36.3 19.5 Reductions for tax positions of prior periods (21.8 ) (13.3 ) (49.9 ) Statute expirations (1.4 ) (1.4 ) (1.2 ) Settlement refund (payment) 44.6 (64.3 ) (42.5 ) Balance at December 31, $ 66.8 $ 32.4 $ 67.9 |
Other Consolidated Financial 52
Other Consolidated Financial Statement Detail (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental cash flow information | Supplemental disclosure of cash flow information for the years ended December 31, 2017 , 2016 and 2015 , is as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Cash paid during the year for: Interest $ 281.7 $ 281.2 $ 39.1 Income taxes $ 1,066.4 $ 1,642.2 $ 1,674.8 |
Other income (expense), net | Components of other income (expense), net, are summarized as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Interest income $ 78.5 $ 63.4 $ 22.1 Interest expense (250.8 ) (260.0 ) (95.5 ) Gain (loss) on investments, net (36.3 ) 6.0 (3.8 ) Foreign exchange gains (losses), net 6.3 (9.8 ) (32.7 ) Other, net (13.1 ) (17.0 ) (13.8 ) Total other income (expense), net $ (215.4 ) $ (217.4 ) $ (123.7 ) |
Accrued expenses and other | Accrued expenses and other consists of the following: As of December 31, (In millions) 2017 2016 Current portion of contingent consideration obligations $ 844.6 $ 580.8 Revenue-related reserves for discounts and allowances 572.0 438.6 Employee compensation and benefits 297.7 282.9 Royalties and licensing fees 206.7 195.8 Collaboration expenses 183.7 130.9 Construction in progress 159.7 134.0 Accrued TECFIDERA litigation settlement charge — 454.8 Other 636.9 685.7 Total accrued expenses and other $ 2,901.3 $ 2,903.5 |
Collaborative and Other Relat53
Collaborative and Other Relationships (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Co-promotion profit sharing formula | Our share of annual co-promotion profits in excess of $50.0 million varies, as summarized in the table below, upon the following events: Until GAZYVA First Non-CLL FDA Approval 40.0 % After GAZYVA First Non-CLL FDA Approval until First GAZYVA Threshold Date 39.0 % After First GAZYVA Threshold Date until Second GAZYVA Threshold Date 37.5 % After Second GAZYVA Threshold Date 35.0 % First Non-CLL GAZYVA FDA Approval means the FDA’s first approval of GAZYVA in an indication other than CLL. First GAZYVA Threshold Date means the earlier of (i) the date of the First Non-CLL GAZYVA FDA approval if U.S. gross sales of GAZYVA for the preceding consecutive 12-month period were at least $150.0 million or (ii) the first day of the calendar quarter after the date of the First Non-CLL GAZYVA FDA Approval that U.S. gross sales of GAZYVA within any consecutive 12-month period have reached $150.0 million . Second GAZYVA Threshold Date means the first day of the calendar quarter after U.S. gross sales of GAZYVA within any consecutive 12-month period have reached $500.0 million . The Second GAZYVA Threshold Date can be achieved regardless of whether GAZYVA has been approved in a non-CLL indication. |
Pretax profit sharing formula | Our share of annual profits in excess of $50.0 million varies, as summarized in the table below, upon the following events: Until First GAZYVA Threshold Date 39.0 % After First GAZYVA Threshold Date until Second GAZYVA Threshold Date 37.5 % After Second GAZYVA Threshold Date 35.0 % |
Revenues from anti-CD20 therapeutic programs | Revenues from anti-CD20 therapeutic programs are summarized as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Biogen's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA, including the reimbursement of selling and development expenses $ 1,316.4 $ 1,249.5 $ 1,269.8 Other revenues from anti-CD20 therapeutic programs 242.8 65.0 69.4 Total revenues from anti-CD20 therapeutic programs $ 1,559.2 $ 1,314.5 $ 1,339.2 |
Summary of activity related to collaboration with AbbVie Inc. | The following table provides a summary of the U.S. collaboration and our share of the co-promotion losses on ZINBRYTA in the U.S.: For the Year Ended December 31, (In millions) 2017 2016 Product revenues, net $ 53.1 $ 6.1 Costs and expenses 92.6 50.0 Co-promotion losses in the U.S. $ 39.5 $ 43.9 Biogen's share of co-promotion losses in the U.S. $ 16.9 $ 21.9 |
Summary of activity related to collaboration with Eisai | A summary of activity related to the Eisai Collaboration Agreement is as follows: For the Years Ended December 31, (In millions) 2017 2016 2015 Total development expense incurred by the collaboration in development of BAN2401 and E2609 $ 146.2 $ 95.1 $ 84.1 Biogen's share of BAN2401 and E2609 development expense reflected in our consolidated statements of income, excluding upfront and milestone payments $ 74.3 $ 50.5 $ 40.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum rental commitments under non-cancelable leases | As of December 31, 2017 , minimum rental commitments under non-cancelable leases, net of income from subleases, for each of the next five years and total thereafter were as follows: (In millions) 2018 2019 2020 2021 2022 Thereafter Total Minimum lease payments $ 72.6 $ 72.3 $ 68.4 $ 66.9 $ 65.7 $ 271.1 $ 617.0 Less: income from subleases (1) (24.3 ) (24.7 ) (23.9 ) (22.3 ) (22.0 ) (71.3 ) (188.5 ) Net minimum lease payments $ 48.3 $ 47.6 $ 44.5 $ 44.6 $ 43.7 $ 199.8 $ 428.5 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenue by product | Revenues by product are summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In millions) United States Rest of World Total United States Rest of World Total United States Rest of World Total Multiple Sclerosis (MS): TECFIDERA $ 3,294.0 $ 920.0 $ 4,214.0 $ 3,169.4 $ 798.7 $ 3,968.1 $ 2,908.2 $ 730.2 $ 3,638.4 AVONEX 1,593.6 557.9 2,151.5 1,675.3 638.2 2,313.5 1,790.2 840.0 2,630.2 PLEGRIDY 295.5 198.8 494.3 305.0 176.7 481.7 227.1 111.4 338.5 TYSABRI 1,113.8 859.3 1,973.1 1,182.9 780.9 1,963.8 1,103.1 783.0 1,886.1 FAMPYRA — 91.6 91.6 — 84.9 84.9 — 89.7 89.7 ZINBRYTA — 52.7 52.7 — 7.8 7.8 — — — Spinal Muscular Atrophy: SPINRAZA 657.0 226.7 883.7 4.6 — 4.6 — — — Hemophilia: ELOCTATE 42.2 6.2 48.4 445.2 68.0 513.2 308.3 11.4 319.7 ALPROLIX 21.0 5.0 26.0 268.0 65.7 333.7 208.9 25.6 234.5 Other product revenues: FUMADERM — 39.6 39.6 — 45.9 45.9 — 51.4 51.4 BENEPALI — 370.8 370.8 — 100.6 100.6 — — — FLIXABI — 9.0 9.0 — 0.1 0.1 — — — Total product revenues $ 7,017.1 $ 3,337.6 $ 10,354.7 $ 7,050.4 $ 2,767.5 $ 9,817.9 $ 6,545.8 $ 2,642.7 $ 9,188.5 |
Geographic information | The following tables contain certain financial information by geographic area: December 31, 2017 (In millions) U.S. Europe Asia Other Total Product revenues from external customers $ 7,017.1 $ 2,844.8 $ 160.1 $ 332.7 $ 10,354.7 Revenues from anti-CD20 therapeutic programs $ 1,475.6 $ 0.6 $ — $ 83.0 $ 1,559.2 Other revenues from external customers $ 249.5 $ 67.8 $ 42.7 $ — $ 360.0 Long-lived assets $ 1,226.9 $ 1,948.2 $ 5.2 $ 2.1 $ 3,182.4 December 31, 2016 (In millions) U.S. Europe Asia Other Total Product revenues from external customers $ 7,050.4 $ 2,237.2 $ 217.3 $ 313.0 $ 9,817.9 Revenues from anti-CD20 therapeutic programs $ 1,249.5 $ 1.9 $ — $ 63.1 $ 1,314.5 Other revenues from external customers $ 224.7 $ 71.5 $ 20.2 $ — $ 316.4 Long-lived assets $ 1,272.3 $ 1,221.1 $ 7.0 $ 1.4 $ 2,501.8 December 31, 2015 (In millions) U.S. Europe Asia Other Total Product revenues from external customers $ 6,545.8 $ 2,165.7 $ 143.7 $ 333.3 $ 9,188.5 Revenues from anti-CD20 therapeutic programs $ 1,269.8 $ 3.5 $ — $ 65.9 $ 1,339.2 Other revenues from external customers $ 142.0 $ 31.2 $ 62.9 $ — $ 236.1 Long-lived assets $ 1,296.5 $ 881.7 $ 7.7 $ 1.7 $ 2,187.6 |
Quarterly Financial Data (Una56
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year 2017 (a) (a) (b) (c) (d) (a) (a) (e) (f) (g) (h) Product revenues, net $ 2,380.1 $ 2,639.7 $ 2,622.5 $ 2,712.4 $ 10,354.7 Revenues from anti-CD20 therapeutic programs $ 340.6 $ 397.1 $ 406.5 $ 415.0 $ 1,559.2 Other revenues $ 90.0 $ 41.6 $ 48.8 $ 179.6 $ 360.0 Total revenues $ 2,810.7 $ 3,078.4 $ 3,077.8 $ 3,307.0 $ 12,273.9 Gross profit (1) $ 2,426.1 $ 2,712.2 $ 2,707.8 $ 2,797.8 $ 10,643.9 Net income $ 747.5 $ 862.8 $ 1,226.1 $ (166.3 ) $ 2,670.1 Net income attributable to Biogen Inc. $ 747.6 $ 862.8 $ 1,226.1 $ (297.4 ) $ 2,539.1 Net income per share: Basic earnings per share attributable to Biogen Inc. $ 3.47 $ 4.07 $ 5.80 $ (1.41 ) $ 11.94 Diluted earnings per share attributable to Biogen Inc. $ 3.46 $ 4.07 $ 5.79 $ (1.40 ) $ 11.92 Weighted-average shares used in calculating: Basic earnings per share attributable to Biogen Inc. 215.6 211.9 211.4 211.5 212.6 Diluted earnings per share attributable to Biogen Inc. 215.9 212.2 211.8 212.0 213.0 (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year 2016 (i) (i) (j) (i) (k) (l) Product revenues, net $ 2,309.4 $ 2,466.0 $ 2,539.6 $ 2,502.9 $ 9,817.9 Revenues from anti-CD20 therapeutic programs $ 329.5 $ 349.2 $ 317.6 $ 318.2 $ 1,314.5 Other revenues $ 87.9 $ 79.0 $ 98.6 $ 50.9 $ 316.4 Total revenues $ 2,726.8 $ 2,894.2 $ 2,955.8 $ 2,872.0 $ 11,448.8 Gross profit (1) $ 2,413.8 $ 2,523.9 $ 2,538.9 $ 2,493.5 $ 9,970.1 Net income $ 969.2 $ 1,048.4 $ 1,030.2 $ 647.9 $ 3,695.7 Net income attributable to Biogen Inc. $ 970.9 $ 1,049.8 $ 1,032.9 $ 649.2 $ 3,702.8 Net income per share: Basic earnings per share attributable to Biogen Inc. $ 4.44 $ 4.79 $ 4.72 $ 3.00 $ 16.96 Diluted earnings per share attributable to Biogen Inc. $ 4.43 $ 4.79 $ 4.71 $ 2.99 $ 16.93 Weighted-average shares used in calculating: Basic earnings per share attributable to Biogen Inc. 218.9 219.1 218.9 216.6 218.4 Diluted earnings per share attributable to Biogen Inc. 219.3 219.4 219.4 217.0 218.8 (1) Gross profit is calculated as total revenues less cost of sales, excluding amortization of acquired intangible assets. (a) Net income and net income attributable to Biogen Inc. for the first, second, third and fourth quarters of 2017 include a pre-tax charge of $353.6 million , $29.4 million , $30.4 million and $30.8 million , respectively, related to our U.S. and rest of world licenses to Forward Pharma's intellectual property, including Forward Pharma's intellectual property related to TECFIDERA. (b) Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to research and development expense of $300.0 million for an upfront payment to BMS upon the closing of our agreement to exclusively license BIIB092. (c) Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to acquired in-process research and development of $120.0 million for an upfront payment to Remedy upon closing of the asset purchase transaction. (d) Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to research and development expense of $60.0 million for a developmental milestone that became payable to the former shareholders of iPierian upon dosing of the first patient in the Phase 2 PSP study for BIIB092. (e) Net income attributable to Biogen Inc., for the fourth quarter of 2017, includes a pre-tax charge to noncontrolling interest of $150.0 million for a payment to Neurimmune in exchange for a 15% reduction in royalty rates payable on potential commercial sales of aducanumab. (f) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes pre-tax charges to research and development expense of $28.0 million and $50.0 million for an upfront payment and a continuation payment, respectively, to Alkermes. (g) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes a pre-tax charge to research and development expense of $25.0 million for an upfront payment to Ionis upon entering into a new collaboration agreement to identify new antisense-oligonucleotide drug candidates for the treatment of SMA. (h) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes $1,173.6 million related to the provisions of the 2017 Tax Act, including a $989.6 million expense under the Transition Toll Tax. (i) Net income and net income attributable to Biogen Inc. for the second, third and fourth quarters of 2016 includes additional pre-tax depreciation expense totaling $15.8 million , $15.7 million and $14.0 million , respectively, as part of our decision to cease manufacturing and vacate our small-scale biologics manufacturing facility in Cambridge, MA as well as close and vacate our warehouse space in Somerville, MA. (j) Net income and net income attributable to Biogen Inc. for the third quarter of 2016 includes a pre-tax charge to research and development expense of $75.0 million for a license fee paid to Ionis as we exercised our option to develop and commercialize SPINRAZA. (k) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2016 includes a pre-tax charge to research and development expense of $50.0 million for a milestone payment due to Eisai related to the initiation of a Phase 3 trial for E2609. (l) Net income and net income attributable to Biogen Inc. for the fourth quarter of 2016 includes a pre-tax charge of $454.8 million related to our January 2017 settlement and license agreement with Forward Pharma. |
Summary of Significant Accoun57
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business (Textual) | |||
Interest in subsidiary (less than given percentage) | 100.00% | ||
Payment terms of accounts receivable arising from product sales | 30 to 90 days | ||
Estimated useful lives of leasehold improvements | Lesser of the useful life or the term of the respective lease | ||
Purchase price of common stock under ESPP | 85% of the lower of (i) the fair market value per share of the common stock on the first business day of an offering period and (ii) the fair market value per share of the common stock on the purchase date | ||
Percentage of market value per share of common stock | $ 0.85 | ||
Compensation expense over purchase period | The fair value of the look-back provision plus the 15% discount | ||
Discount rate recognized in compensation expense | 15.00% | ||
Advertising costs | $ 75.2 | $ 106.3 | $ 108.6 |
Minimum | Building | |||
Property, Plant and Equipment | |||
Property, plant and equipment, useful life | 15 years | ||
Minimum | Furniture and Fixtures | |||
Property, Plant and Equipment | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum | Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum | Computer Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | Building | |||
Property, Plant and Equipment | |||
Property, plant and equipment, useful life | 40 years | ||
Maximum | Furniture and Fixtures | |||
Property, Plant and Equipment | |||
Property, plant and equipment, useful life | 7 years | ||
Maximum | Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, useful life | 20 years | ||
Maximum | Computer Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, useful life | 5 years | ||
Distributor One | |||
Property, Plant and Equipment | |||
Percentage receivables of wholesale distributor accounted in consolidated receivables | 26.50% | 37.20% | |
Distributor Two | |||
Property, Plant and Equipment | |||
Percentage receivables of wholesale distributor accounted in consolidated receivables | 19.00% | 19.20% | |
Deferred Tax Asset | |||
Property, Plant and Equipment | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 500 | ||
Retained Earnings | |||
Property, Plant and Equipment | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 500 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 12, 2015 | |
Business Acquisition [Line Items] | ||||||
Acquired in-process research and development | $ 120 | $ 0 | $ 0 | |||
Potential future milestone payments | 4,200 | |||||
Goodwill | $ 4,632.5 | $ 3,669.3 | $ 2,663.8 | |||
Remedy Pharmaceutical [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquired in-process research and development | $ 120 | |||||
Convergence Pharmaceuticals | ||||||
Business Acquisition [Line Items] | ||||||
Cash portion of consideration | $ 200.1 | |||||
Potential future milestone payments | $ 450 | |||||
Contingent consideration obligation | $ 274.5 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 474.6 | |||||
In-process research and development | 424.6 | |||||
Goodwill | 128.3 | |||||
BIIB074 | Convergence Pharmaceuticals | ||||||
Business Acquisition [Line Items] | ||||||
Potential future milestone payments | $ 350 |
Hemophilia Spin-Off Hemophili59
Hemophilia Spin-Off Hemophilia Spin-Off (Details) - USD ($) $ in Millions | Feb. 01, 2017 | Dec. 31, 2016 |
Assets and Liabilities Distributed to Bioverativ [Line Items] | ||
Goodwill | $ 0 | |
Bioverativ | ||
Assets and Liabilities Distributed to Bioverativ [Line Items] | ||
Cash | $ 302.7 | |
Accounts Receivable | 144.7 | |
Inventory | 116.1 | |
Property, Plant and Equipment, net | 20.2 | |
Intangible Assets, net | 56.8 | |
Goodwill | 314.1 | |
Other, net | 53.7 | |
Assets Transfered, net | 1,008.3 | |
Accrued Expenses and Other Current Liabilities | 87.8 | |
Other Long-Term Liabilities | 67.7 | |
Liabilities Transferred, net | $ 155.5 |
Hemophilia Spin-Off Hemophili60
Hemophilia Spin-Off Hemophilia Spin-Off (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 01, 2017 | |
Assets and Liabilities Distributed to Bioverativ [Line Items] | ||||||||||||
Other revenues | $ 179.6 | $ 48.8 | $ 41.6 | $ 90 | $ 50.9 | $ 98.6 | $ 79 | $ 87.9 | $ 360 | $ 316.4 | $ 236.1 | |
Cost of sales | 1,630 | 1,478.7 | 1,240.4 | |||||||||
Product, net | $ 2,712.4 | $ 2,622.5 | $ 2,639.7 | $ 2,380.1 | $ 2,502.9 | $ 2,539.6 | $ 2,466 | $ 2,309.4 | 10,354.7 | 9,817.9 | 9,188.5 | |
Bioverativ | ||||||||||||
Assets and Liabilities Distributed to Bioverativ [Line Items] | ||||||||||||
Term of Bioverativ Transaction Services Agreement | 12 months | |||||||||||
Term of Bioverativ Manufacturing and Supply Agreement | 5 years | |||||||||||
Cash | $ 302.7 | |||||||||||
Other revenues | 64.8 | |||||||||||
Cost of sales | 15.1 | |||||||||||
Hemophilia Products | ||||||||||||
Assets and Liabilities Distributed to Bioverativ [Line Items] | ||||||||||||
Product, net | $ 74.4 | $ 846.9 | $ 554.2 |
Restructuring Restructuring (De
Restructuring Restructuring (Details) - 2015 Restructuring Charges - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning period | $ 5.1 | $ 37.3 | |
Expense | 10.3 | ||
Payments | (4.6) | (40.2) | |
Adjustments to previous estimates, net | $ 15.9 | (2.3) | |
Restructuring reserve, ending period | 37.3 | 0.5 | 5.1 |
Workforce reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning period | 2.2 | 33.7 | |
Expense | 4.9 | ||
Payments | (1.7) | (31.2) | |
Adjustments to previous estimates, net | (5.2) | ||
Restructuring reserve, ending period | 33.7 | 0.5 | 2.2 |
Pipeline programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning period | 2.9 | 3.6 | |
Expense | 5.4 | ||
Payments | (2.9) | (9) | |
Adjustments to previous estimates, net | 2.9 | ||
Restructuring reserve, ending period | $ 3.6 | $ 0 | $ 2.9 |
Restructuring Restructuring (62
Restructuring Restructuring (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0.9 | $ 33.1 | $ 93.4 | |||||
2017 Restructuring Charges [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Total non-recurring operation and capital expenditures | $ 170 | |||||||
Redirection of resources | $ 400 | |||||||
Restructuring charges | 19.4 | |||||||
2016 Restructuring Charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 17.7 | |||||||
2015 Restructuring Charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 8 | 93.4 | ||||||
Restructuring and related cost, expected percentage of positions eliminated | 11.00% | |||||||
Previously accrued incentive compensation | $ 120 | 120 | ||||||
Adjustments to previous estimates, net | 15.9 | (2.3) | ||||||
Total restructuring charges expected | $ 102 | $ 102 | ||||||
Cambridge, MA | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Accelerated depreciation | $ 14 | $ 15.7 | $ 15.8 | 45.5 | ||||
Cambridge, MA | 2016 Restructuring Charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 7.4 | |||||||
Selling, general and administrative | 2017 Restructuring Charges [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 18.5 | |||||||
Restructuring charges | 2017 Restructuring Charges [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0.9 |
Revenue Reserves (Details)
Revenue Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of the amount of, and change in, reserves | |||
Beginning balance | $ 605.5 | $ 662.7 | $ 483.8 |
Current provisions relating to sales in current year | 2,917.3 | 2,668 | 2,229.4 |
Adjustments relating to prior years | 6 | (16.7) | (32.3) |
Payments/returns relating to sales in current year | (2,232.8) | (2,099.5) | (1,666.6) |
Payments/returns relating to sales in prior years | (534.4) | (609) | (351.6) |
Ending balance | 761.6 | 605.5 | 662.7 |
Discounts | |||
Analysis of the amount of, and change in, reserves | |||
Beginning balance | 71.6 | 56.1 | 47.6 |
Current provisions relating to sales in current year | 583 | 592.6 | 459.7 |
Adjustments relating to prior years | (0.1) | (1.4) | (1.3) |
Payments/returns relating to sales in current year | (475.8) | (522.5) | (405.9) |
Payments/returns relating to sales in prior years | (69.1) | (53.2) | (44) |
Ending balance | 109.6 | 71.6 | 56.1 |
Contractual Adjustments | |||
Analysis of the amount of, and change in, reserves | |||
Beginning balance | 482.7 | 548.7 | 387.1 |
Current provisions relating to sales in current year | 2,307.4 | 2,044.5 | 1,732.1 |
Adjustments relating to prior years | 15 | 1.5 | (16.3) |
Payments/returns relating to sales in current year | (1,756.9) | (1,576) | (1,258.1) |
Payments/returns relating to sales in prior years | (442.2) | (536) | (296.1) |
Ending balance | 606 | 482.7 | 548.7 |
Returns | |||
Analysis of the amount of, and change in, reserves | |||
Beginning balance | 51.2 | 57.9 | 49.1 |
Current provisions relating to sales in current year | 26.9 | 30.9 | 37.6 |
Adjustments relating to prior years | (8.9) | (16.8) | (14.7) |
Payments/returns relating to sales in current year | (0.1) | (1) | (2.6) |
Payments/returns relating to sales in prior years | (23.1) | (19.8) | (11.5) |
Ending balance | $ 46 | $ 51.2 | $ 57.9 |
Revenue Reserves (Details 1)
Revenue Reserves (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Total reserves | $ 761.6 | $ 605.5 | $ 662.7 | $ 483.8 |
Reduction of accounts receivable | ||||
Total reserves | 189.6 | 166.9 | ||
Component of accrued expenses and other | ||||
Total reserves | $ 572 | $ 438.6 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Components of inventories | ||
Raw materials | $ 162.4 | $ 170.4 |
Work in process | 605.7 | 698.7 |
Finished goods | 157.4 | 170.3 |
Total inventory | 925.5 | 1,039.4 |
Inventory, current | 902.7 | 1,001.6 |
Inventory, noncurrent | $ 22.8 | $ 37.8 |
Inventory (Details Textual)
Inventory (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 01, 2017 | |
Inventory [Line Items] | ||||
Write-downs on excess, obsolete, unmarketable or other inventory | $ 76.9 | $ 48.2 | $ 41.9 | |
Bioverativ | ||||
Inventory [Line Items] | ||||
Inventory | $ 116.1 | |||
Work-in-process | Bioverativ | ||||
Inventory [Line Items] | ||||
Inventory | 84.5 | |||
Finished Goods | Bioverativ | ||||
Inventory [Line Items] | ||||
Inventory | $ 31.6 |
Intangible Assets and Goodwil67
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible assets | ||||||||
Total intangible assets, gross | $ 8,264.6 | $ 7,742.3 | $ 8,264.6 | $ 7,742.3 | ||||
Accumulated Amortization | (4,385) | (3,934) | (4,385) | (3,934) | ||||
Intangible assets, net | 3,879.6 | 3,808.3 | 3,879.6 | 3,808.3 | ||||
Intangible Assets and Goodwill (Additional Textual) | ||||||||
Expected future amortization expense, 2018 | 423.5 | 423.5 | ||||||
Expected future amortization expense, 2019 | 401.8 | 401.8 | ||||||
Expected future amortization expense, 2020 | 381.6 | 381.6 | ||||||
Expected future amortization expense, 2021 | 254.3 | 254.3 | ||||||
Expected future amortization expense, 2022 | 242.3 | 242.3 | ||||||
Amortization of acquired intangible assets | (814.7) | (385.6) | $ (382.6) | |||||
Payment made to Forward Pharma | $ 1,250 | |||||||
TECFIDERA litigation settlement charge | 454.8 | 0 | 454.8 | $ 0 | ||||
Out-licensed patents | ||||||||
Intangible assets | ||||||||
Cost | 543.3 | 543.3 | 543.3 | 543.3 | ||||
Accumulated Amortization | (535.6) | (523.6) | (535.6) | (523.6) | ||||
Net | 7.7 | 19.7 | $ 7.7 | 19.7 | ||||
Out-licensed patents | Minimum | ||||||||
Intangible assets | ||||||||
Estimated life, (In Years) | 13 years | |||||||
Out-licensed patents | Maximum | ||||||||
Intangible assets | ||||||||
Estimated life, (In Years) | 23 years | |||||||
Developed technology | ||||||||
Intangible assets | ||||||||
Cost | 3,005.3 | 3,005.3 | $ 3,005.3 | 3,005.3 | ||||
Accumulated Amortization | (2,689) | (2,634.3) | (2,689) | (2,634.3) | ||||
Net | 316.3 | 371 | $ 316.3 | 371 | ||||
Developed technology | Minimum | ||||||||
Intangible assets | ||||||||
Estimated life, (In Years) | 15 years | |||||||
Developed technology | Maximum | ||||||||
Intangible assets | ||||||||
Estimated life, (In Years) | 23 years | |||||||
Acquired and in-licensed rights and patents | ||||||||
Intangible assets | ||||||||
Cost | 3,971.4 | 3,481.7 | $ 3,971.4 | 3,481.7 | ||||
Accumulated Amortization | (1,160.4) | (776.1) | (1,160.4) | (776.1) | ||||
Net | 2,811 | 2,705.6 | $ 2,811 | 2,705.6 | ||||
Acquired and in-licensed rights and patents | Minimum | ||||||||
Intangible assets | ||||||||
Estimated life, (In Years) | 4 years | |||||||
Acquired and in-licensed rights and patents | Maximum | ||||||||
Intangible assets | ||||||||
Estimated life, (In Years) | 18 years | |||||||
In-process research and development | ||||||||
Intangible assets | ||||||||
Indefinite lived intangible assets useful life | Indefinite | |||||||
Cost and net | 680.6 | 648 | $ 680.6 | 648 | ||||
Accumulated Amortization | 0 | 0 | $ 0 | 0 | ||||
Trademarks and trade names | ||||||||
Intangible assets | ||||||||
Indefinite lived intangible assets useful life | Indefinite | |||||||
Cost and net | 64 | 64 | $ 64 | 64 | ||||
Accumulated Amortization | 0 | $ 0 | 0 | 0 | ||||
AVONEX | Developed technology | ||||||||
Intangible assets | ||||||||
Net | 309.5 | 309.5 | ||||||
TYSABRI | Acquired and in-licensed rights and patents | ||||||||
Intangible assets | ||||||||
Net | 2,236.2 | 2,236.2 | ||||||
SPINRAZA | Acquired and in-licensed rights and patents | ||||||||
Intangible Assets and Goodwill (Additional Textual) | ||||||||
Net change in acquired and in-licensed rights and patents | 90 | |||||||
Biosimilars | Acquired and in-licensed rights and patents | ||||||||
Intangible Assets and Goodwill (Additional Textual) | ||||||||
Net change in acquired and in-licensed rights and patents | 25 | $ 50 | ||||||
ZINBRYTA | ||||||||
Intangible Assets and Goodwill (Additional Textual) | ||||||||
Impairment of out-licensed patent | 31.2 | |||||||
TECFIDERA | ||||||||
Intangible Assets and Goodwill (Additional Textual) | ||||||||
Amortization of acquired intangible assets | $ (30.8) | $ (30.4) | $ (29.4) | (353.6) | $ (444.2) | |||
Net change in acquired and in-licensed rights and patents | $ 795.2 |
Intangible Assets and Goodwil68
Intangible Assets and Goodwill (Details 1) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 01, 2017 | |
Goodwill [Line Items] | ||||
Elimination of goodwill allocated to our hemophilia business | $ 0 | |||
Income tax benefit (expense) | $ 2,458.7 | 1,237.3 | $ 1,161.6 | |
Accumulated impairment losses related to goodwill | 0 | |||
Summary of roll forward of the changes in goodwill | ||||
Goodwill, beginning of period | 3,669.3 | 2,663.8 | ||
Increase to goodwill | 1,267.3 | 1,026.9 | ||
Other | 10 | (21.4) | ||
Goodwill, end of period | 4,632.5 | 3,669.3 | $ 2,663.8 | |
Fumapharm AG | TECFIDERA | ||||
Goodwill [Line Items] | ||||
Income tax benefit (expense) | 232.7 | 173.1 | ||
Summary of roll forward of the changes in goodwill | ||||
Increase to goodwill | $ 1,500 | $ 1,200 | ||
Bioverativ | ||||
Goodwill [Line Items] | ||||
Elimination of goodwill allocated to our hemophilia business | $ (314.1) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | |||
Marketable debt securities | $ 5,172.5 | $ 5,398 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | 1,229.4 | 2,039.6 | |
Marketable equity securities | 11.8 | 24.9 | |
Derivative contracts | 2.7 | 61 | |
Plan assets for deferred compensation | 28.5 | 34.5 | |
Total | 6,444.9 | 7,558 | |
Liabilities: | |||
Derivative contracts | 111.3 | 13.6 | |
Contingent consideration obligations | 523.6 | 467.6 | $ 506 |
Total | 634.9 | 481.2 | |
Fair Value, Measurements, Recurring | Corporate debt securities | |||
Assets: | |||
Marketable debt securities | 2,609.8 | 2,663.8 | |
Fair Value, Measurements, Recurring | Government securities | |||
Assets: | |||
Marketable debt securities | 1,919.3 | 2,172.5 | |
Fair Value, Measurements, Recurring | Mortgage and other asset backed securities | |||
Assets: | |||
Marketable debt securities | 643.4 | 561.7 | |
Quoted Prices in Active Markets (Level 1) | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | 0 | 0 | |
Marketable equity securities | 11.8 | 24.9 | |
Derivative contracts | 0 | 0 | |
Plan assets for deferred compensation | 0 | 0 | |
Total | 11.8 | 24.9 | |
Liabilities: | |||
Derivative contracts | 0 | 0 | |
Contingent consideration obligations | 0 | 0 | |
Total | 0 | 0 | |
Quoted Prices in Active Markets (Level 1) | Fair Value, Measurements, Recurring | Corporate debt securities | |||
Assets: | |||
Marketable debt securities | 0 | 0 | |
Quoted Prices in Active Markets (Level 1) | Fair Value, Measurements, Recurring | Government securities | |||
Assets: | |||
Marketable debt securities | 0 | 0 | |
Quoted Prices in Active Markets (Level 1) | Fair Value, Measurements, Recurring | Mortgage and other asset backed securities | |||
Assets: | |||
Marketable debt securities | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | 1,229.4 | 2,039.6 | |
Marketable equity securities | 0 | 0 | |
Derivative contracts | 2.7 | 61 | |
Plan assets for deferred compensation | 28.5 | 34.5 | |
Total | 6,433.1 | 7,533.1 | |
Liabilities: | |||
Derivative contracts | 111.3 | 13.6 | |
Contingent consideration obligations | 0 | 0 | |
Total | 111.3 | 13.6 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate debt securities | |||
Assets: | |||
Marketable debt securities | 2,609.8 | 2,663.8 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Government securities | |||
Assets: | |||
Marketable debt securities | 1,919.3 | 2,172.5 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Mortgage and other asset backed securities | |||
Assets: | |||
Marketable debt securities | 643.4 | 561.7 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | 0 | 0 | |
Marketable equity securities | 0 | 0 | |
Derivative contracts | 0 | 0 | |
Plan assets for deferred compensation | 0 | 0 | |
Total | 0 | 0 | |
Liabilities: | |||
Derivative contracts | 0 | 0 | |
Contingent consideration obligations | 523.6 | 467.6 | |
Total | 523.6 | 467.6 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate debt securities | |||
Assets: | |||
Marketable debt securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Government securities | |||
Assets: | |||
Marketable debt securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Mortgage and other asset backed securities | |||
Assets: | |||
Marketable debt securities | $ 0 | $ 0 |
Fair Value Measurements (Deta70
Fair Value Measurements (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument | ||
Total fair value | $ 6,483.3 | $ 6,808.4 |
Notes Payable to Fumedica | ||
Debt Instrument | ||
Notes payable, fair value | 3.2 | 6.1 |
6.875% Senior Notes due 2018 | ||
Debt Instrument | ||
Notes payable, fair value | 0 | 583.7 |
2.90% Senior Notes due 2020 | ||
Debt Instrument | ||
Notes payable, fair value | 1,517.7 | 1,521.5 |
3.625% Senior Notes due 2022 | ||
Debt Instrument | ||
Notes payable, fair value | 1,032.9 | 1,026.6 |
4.05% Senior Notes due 2025 | ||
Debt Instrument | ||
Notes payable, fair value | 1,851.9 | 1,796 |
5.20% Senior Notes due 2045 | ||
Debt Instrument | ||
Notes payable, fair value | $ 2,077.6 | $ 1,874.5 |
Fair Value Measurements (Deta71
Fair Value Measurements (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Loss (gain) on fair value remeasurement of contingent consideration | $ (62.7) | $ (14.8) | $ (30.5) |
Payments | (6.7) | (53.2) | |
Fair Value, Measurements, Recurring | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Fair value, beginning of period | 467.6 | 506 | |
Fair value, end of period | $ 523.6 | $ 467.6 | $ 506 |
Fair Value Measurements (Deta72
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 28, 2015 | Mar. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 12, 2015 | Mar. 04, 2008 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Fair value measurements, changes in valuation techniques | 0 | 0 | ||||||
Maximum contingent consideration in the form of development and approval milestones | $ 1,100 | |||||||
Convergence Pharmaceuticals | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Milestone converted to short-term obligation | $ 7.9 | |||||||
Additions | $ 274.5 | |||||||
Contingent consideration obligations | 259 | 258.9 | ||||||
Maximum contingent consideration in the form of development and approval milestones | $ 400 | $ 450 | ||||||
Discount rate used for net cash outflow projections for fair value measurement | 2.00% | 2.40% | ||||||
In-process research and development | $ 424.6 | |||||||
Stromedix, Inc. | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Additions | $ 122.2 | |||||||
Contingent consideration obligations | $ 162.4 | 133.2 | ||||||
Maximum contingent consideration in the form of development and approval milestones | $ 344 | |||||||
Discount rate used for net cash outflow projections for fair value measurement | 2.40% | |||||||
Biogen Idec International Neuroscience GmbH | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Additions | $ 81.2 | |||||||
Contingent consideration obligations | $ 102.2 | 75.5 | ||||||
Maximum contingent consideration in the form of development and approval milestones | $ 355 | |||||||
Discount rate used for net cash outflow projections for fair value measurement | 2.80% | |||||||
Milestone payments made during period | $ 6.7 | |||||||
6.875% Senior Notes due 2018 | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Interest rate on senior notes | 6.875% | 6.875% | ||||||
6.875% Senior Notes aggregate principal amount | $ 550 | |||||||
2.90% Senior Notes due 2020 | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Interest rate on senior notes | 2.90% | 2.90% | ||||||
6.875% Senior Notes aggregate principal amount | $ 1,500 | |||||||
3.625% Senior Notes due 2022 | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Interest rate on senior notes | 3.625% | 3.625% | ||||||
6.875% Senior Notes aggregate principal amount | $ 1,000 | |||||||
4.05% Senior Notes due 2025 | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Interest rate on senior notes | 4.05% | 4.05% | ||||||
6.875% Senior Notes aggregate principal amount | $ 1,750 | |||||||
5.20% Senior Notes due 2045 | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Interest rate on senior notes | 5.20% | 5.20% | ||||||
6.875% Senior Notes aggregate principal amount | $ 1,750 | |||||||
Other long-term liabilities | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Contingent consideration obligations | $ 279 | $ 246.8 | ||||||
Accrued expenses and other | Convergence Pharmaceuticals | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Contingent consideration obligations | 147.9 | |||||||
Accrued expenses and other | Stromedix, Inc. | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Contingent consideration obligations | 76.7 | |||||||
Accrued expenses and other | Biogen Idec International Neuroscience GmbH | ||||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||||
Contingent consideration obligations | $ 20 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ||
Cash equivalents | $ 1,229.4 | $ 2,039.6 |
Commercial Paper | ||
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ||
Cash equivalents | 30.5 | 31 |
Overnight Reverse Repurchase Agreements | ||
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ||
Cash equivalents | 3.6 | 0 |
Money Market Funds | ||
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ||
Cash equivalents | 948 | 741.7 |
Short-term Debt Securities | ||
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ||
Cash equivalents | $ 247.3 | $ 1,266.9 |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Marketable Debt and Equity Securities | ||
Fair Value | $ 5,172.5 | $ 5,398 |
Gross Unrealized Gains | 2.3 | 2.9 |
Gross Unrealized Losses | (2.8) | (11.2) |
Amortized Cost | 5,173 | 5,406.3 |
Corporate debt securities Current | ||
Marketable Debt and Equity Securities | ||
Fair Value | 1,039.3 | 1,408.6 |
Gross Unrealized Gains | 0 | 0.2 |
Gross Unrealized Losses | (0.2) | (0.6) |
Amortized Cost | 1,039.5 | 1,409 |
Corporate debt securities Non-current | ||
Marketable Debt and Equity Securities | ||
Fair Value | 1,570.5 | 1,255.2 |
Gross Unrealized Gains | 0.9 | 1.2 |
Gross Unrealized Losses | 0 | (4.7) |
Amortized Cost | 1,569.6 | 1,258.7 |
Government securities Current | ||
Marketable Debt and Equity Securities | ||
Fair Value | 1,075.1 | 1,156 |
Gross Unrealized Gains | 0.1 | 0.2 |
Gross Unrealized Losses | (0.7) | (0.3) |
Amortized Cost | 1,075.7 | 1,156.1 |
Government securities Non-current | ||
Marketable Debt and Equity Securities | ||
Fair Value | 844.2 | 1,016.5 |
Gross Unrealized Gains | 0.2 | 0.5 |
Gross Unrealized Losses | (1.1) | (3.4) |
Amortized Cost | 845.1 | 1,019.4 |
Mortgage and other asset backed securities Current | ||
Marketable Debt and Equity Securities | ||
Fair Value | 0.8 | 4 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 0.8 | 4 |
Mortgage and other asset backed securities Non-current | ||
Marketable Debt and Equity Securities | ||
Fair Value | 642.6 | 557.7 |
Gross Unrealized Gains | 1.1 | 0.8 |
Gross Unrealized Losses | (0.8) | (2.2) |
Amortized Cost | 642.3 | 559.1 |
Marketable equity securities | ||
Marketable Debt and Equity Securities | ||
Fair Value | 11.8 | 24.9 |
Gross Unrealized Gains | 1.8 | 0.7 |
Gross Unrealized Losses | (4.4) | (9.3) |
Amortized Cost | $ 14.4 | $ 33.5 |
Financial Instruments (Detail75
Financial Instruments (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of Contractual Maturities: Available-for-Sale Securities | ||
Due in one year or less, Estimated Fair Value | $ 2,115.2 | $ 2,568.6 |
Due in one year or less, Amortized Cost | 2,116 | 2,569.1 |
Due after one year through five years, Estimated Fair Value | 2,730 | 2,552.6 |
Due after one year through five years, Amortized Cost | 2,730 | 2,559.7 |
Due after five years, Estimated Fair Value | 327.3 | 276.8 |
Due after five years, Amortized Cost | 327 | 277.5 |
Total available-for-sale securities, Fair Value | 5,172.5 | 5,398 |
Total available-for-sale securities, Amortized Cost | $ 5,173 | $ 5,406.3 |
Financial Instruments (Detail76
Financial Instruments (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from Marketable Debt Securities | |||
Proceeds from maturities and sales | $ 5,565.9 | $ 7,378.9 | $ 4,063 |
Realized gains | 3 | 3.3 | 1.5 |
Realized losses | $ (22.4) | $ (4.3) | $ (3.5) |
Financial Instruments (Detail77
Financial Instruments (Details Textual 1) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Instruments (Textual) | ||
Original maturities of commercial paper and short-term debt securities | less than 90 days | |
Average maturity of marketable securities, months | 17 months | 12 months |
Financial Instruments (Detail78
Financial Instruments (Details Textual 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Strategic Investments | ||
Business Acquisition [Line Items] | ||
Strategic investment portfolio | $ 85.8 | $ 99.9 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Aggregate notional amount | $ 2,198.7 | $ 871.7 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Aggregate notional amount | 564.9 | 902.1 |
Foreign Exchange Contract | Other current assets | Designated as Hedging Instrument | ||
Summary of derivatives designated as hedging instruments | ||
Asset derivatives | 0.7 | 50.4 |
Foreign Exchange Contract | Other current assets | Not Designated as Hedging Instrument | ||
Summary of derivatives designated as hedging instruments | ||
Asset derivatives | 1.8 | 4 |
Foreign Exchange Contract | Investments and other assets | Designated as Hedging Instrument | ||
Summary of derivatives designated as hedging instruments | ||
Asset derivatives | 0.2 | 6.6 |
Foreign Exchange Contract | Accrued expenses and other | Designated as Hedging Instrument | ||
Summary of derivatives designated as hedging instruments | ||
Liability derivatives | 84.7 | |
Foreign Exchange Contract | Accrued expenses and other | Not Designated as Hedging Instrument | ||
Summary of derivatives designated as hedging instruments | ||
Liability derivatives | 3 | 9 |
Foreign Exchange Contract | Other long-term liabilities | Designated as Hedging Instrument | ||
Summary of derivatives designated as hedging instruments | ||
Liability derivatives | 23.6 | 4.6 |
Euro | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Aggregate notional amount | 1,875.6 | 871.7 |
British pound sterling | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Aggregate notional amount | 150.9 | 0 |
Swiss francs | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Aggregate notional amount | 88.7 | 0 |
Canadian dollar | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Aggregate notional amount | $ 83.5 | $ 0 |
Derivative Instruments (Detai80
Derivative Instruments (Details 1) - Foreign Exchange Contract - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows, revenue | Revenue | |||
Summary of the effect of derivatives designated as hedging instruments on the consolidated statements of income | |||
Amount Reclassified from Accumulated Other Comprehensive Income into Income Gain/(Loss) (Effective Portion) | $ (32.5) | $ 5.3 | $ 173.2 |
Cash flows, revenue | Other income (expense) | |||
Summary of the effect of derivatives designated as hedging instruments on the consolidated statements of income | |||
Net gains (losses) in earnings of foreign currency forward contracts due to hedge ineffectiveness | 8.9 | 2.9 | 4.9 |
Cash flows, operating expenses | Other income (expense) | |||
Summary of the effect of derivatives designated as hedging instruments on the consolidated statements of income | |||
Net gains (losses) in earnings of foreign currency forward contracts due to hedge ineffectiveness | (0.2) | 0.1 | 0 |
Cash flows, operating expenses | Operating Expense | |||
Summary of the effect of derivatives designated as hedging instruments on the consolidated statements of income | |||
Amount Reclassified from Accumulated Other Comprehensive Income into Income Gain/(Loss) (Effective Portion) | $ 0.6 | $ (1.5) | $ 0 |
Derivative Instruments (Detai81
Derivative Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | ||||
Gain/Loss on fair value of foreign currency forward contracts | $ (113) | $ 49.8 | $ (1.8) | |
Range of durations of foreign currency forward contracts | 12 months | 21 months | ||
Gain on treasury rate lock settlement | $ (42.7) | (92.5) | 6.5 | |
Net gains (losses) of other income (expense) related to foreign currency forward contracts | 4.5 | 29.2 | 23.8 | |
Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Aggregate notional amount | $ 2,198.7 | 2,198.7 | 871.7 | |
Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Aggregate notional amount | $ 564.9 | $ 564.9 | $ 902.1 | |
Interest rate lock | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain on treasury rate lock settlement | 8.5 | |||
Interest rate lock | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Aggregate notional amount | 1,100 | |||
Interest rate swap | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Aggregate notional amount | $ 675 | |||
4.05% Senior Notes due 2025 | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate on senior notes | 4.05% | 4.05% | 4.05% | |
5.20% Senior Notes due 2045 | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate on senior notes | 5.20% | 5.20% | 5.20% | |
2.90% Senior Notes due 2020 | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate on senior notes | 2.90% | 2.90% | 2.90% | |
Minimum | ||||
Derivatives, Fair Value [Line Items] | ||||
Range of durations of foreign currency forward contracts | 1 month | 1 month | ||
Maximum | ||||
Derivatives, Fair Value [Line Items] | ||||
Range of durations of foreign currency forward contracts | 21 months | 18 months | ||
Short-term derivative | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain/Loss on fair value of foreign currency forward contracts | $ (98.5) |
Property, Plant and Equipment82
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 141.2 | $ 137.8 |
Buildings | 1,213.6 | 1,107.8 |
Leasehold improvements | 80.6 | 123.7 |
Machinery and equipment | 1,207.7 | 1,105.8 |
Computer software and hardware | 767.1 | 746.8 |
Furniture and fixtures | 55.3 | 60.6 |
Construction in progress | 1,276 | 658.6 |
Total cost | 4,741.5 | 3,941.1 |
Less: accumulated depreciation | (1,559.1) | (1,439.3) |
Total property, plant and equipment, net | $ 3,182.4 | $ 2,501.8 |
Property, Plant and Equipment83
Property, Plant and Equipment (Details Textual) SFr in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016CHF (SFr) | Sep. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment | |||||||
Depreciation expense | $ 266.3 | $ 309.3 | $ 217.9 | ||||
Interest cost capitalization related to construction in progress | 30.7 | 12.9 | $ 10.4 | ||||
Construction in progress | $ 1,276 | 1,276 | 658.6 | ||||
Solothurn | |||||||
Property, Plant and Equipment | |||||||
Construction in progress | 1,200 | $ 1,200 | $ 481.5 | ||||
Eisai | |||||||
Property, Plant and Equipment | |||||||
Facility purchase | $ 17.2 | $ 104.8 | |||||
Term of original lease | 10 years | ||||||
Term of amended lease | 3 years | ||||||
Capital lease obligation | $ 20.3 | ||||||
Building | Eisai | |||||||
Property, Plant and Equipment | |||||||
Facility purchase | 58.6 | ||||||
Machinery and Equipment | Eisai | |||||||
Property, Plant and Equipment | |||||||
Facility purchase | 25.9 | ||||||
Land | Solothurn | |||||||
Property, Plant and Equipment | |||||||
Facility purchase | $ 62.5 | SFr 64.4 | |||||
Land | Eisai | |||||||
Property, Plant and Equipment | |||||||
Facility purchase | $ 20.3 |
Indebtedness (Details)
Indebtedness (Details) SFr in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2006CHF (SFr) |
Current portion: | |||
Financing arrangement for the purchase of the RTP facility | $ 0 | $ 1.7 | |
Current portion of notes payable and other financing arrangements | 3.2 | 4.7 | |
Non-current portion: | |||
Non-current notes payable | 6,003.2 | ||
Financing arrangement for the purchase of the RTP facility | 0 | 16.4 | |
Non-current portion of notes payable and other financing arrangements | 5,935 | 6,512.7 | |
Note payable to Fumedica | |||
Current portion: | |||
Notes payable to Fumedica | 3.2 | 3 | |
Non-current portion: | |||
Non-current notes payable | 0 | 3 | SFr 61.4 |
6.875% Senior Notes due 2018 | |||
Non-current portion: | |||
Non-current notes payable | 0 | 558.5 | |
2.90% Senior Notes due 2020 | |||
Non-current portion: | |||
Non-current notes payable | 1,482.4 | 1,485.3 | |
3.625% Senior Notes due 2022 | |||
Non-current portion: | |||
Non-current notes payable | 994.3 | 993.2 | |
4.05% Senior Notes due 2025 | |||
Non-current portion: | |||
Non-current notes payable | 1,736.3 | 1,734.8 | |
5.20% Senior Notes due 2045 | |||
Non-current portion: | |||
Non-current notes payable | $ 1,722 | $ 1,721.5 |
Indebtedness (Details 1)
Indebtedness (Details 1) $ in Millions | Dec. 31, 2017USD ($) |
Total debt maturities | |
2,018 | $ 3.2 |
2,019 | 0 |
2,020 | 1,500 |
2,021 | 0 |
2,022 | 1,000 |
2023 and thereafter | 3,500 |
Total | $ 6,003.2 |
Indebtedness (Details Textual)
Indebtedness (Details Textual) SFr in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2008USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2016USD ($) | Dec. 31, 2016CHF (SFr) | Mar. 04, 2008USD ($) | Dec. 31, 2006CHF (SFr) | |
Debt Instrument | ||||||||||
Net charge upon extinguishment of debt | $ 5,200,000 | |||||||||
Payment for debt extinguishment | 7,700,000 | |||||||||
Costs associated with the Senior Notes offerings | $ 47,500,000 | |||||||||
Redemptions percentage of 2015 notes | 100.00% | |||||||||
Redemption percentage for change in control provision on the 2015 Senior Notes | 101.00% | |||||||||
Notes payable and other financing arrangements | 6,003,200,000 | $ 6,003,200,000 | ||||||||
Senior unsecured revolving credit facility maximum borrowing capacity | $ 1,000,000,000 | |||||||||
Term of credit facility | 5 years | |||||||||
Amount outstanding under the credit facility | $ 0 | $ 0 | ||||||||
6.875% Senior Notes due 2018 | ||||||||||
Debt Instrument | ||||||||||
Interest rate on senior notes | 6.875% | 6.875% | 6.875% | 6.875% | ||||||
Redemption percentage par value of senior notes | 99.184% | |||||||||
Increased carrying amount of interest rate swap | $ 62,800,000 | |||||||||
Senior Notes aggregate principal amount | $ 550,000,000 | |||||||||
Notes payable and other financing arrangements | $ 0 | $ 0 | $ 558,500,000 | |||||||
2.90% Senior Notes due 2020 | ||||||||||
Debt Instrument | ||||||||||
Interest rate on senior notes | 2.90% | 2.90% | 2.90% | 2.90% | ||||||
Redemption percentage par value of senior notes | 99.792% | |||||||||
Senior Notes aggregate principal amount | $ 1,500,000,000 | |||||||||
Notes payable and other financing arrangements | $ 1,482,400,000 | $ 1,482,400,000 | 1,485,300,000 | |||||||
3.625% Senior Notes due 2022 | ||||||||||
Debt Instrument | ||||||||||
Interest rate on senior notes | 3.625% | 3.625% | 3.625% | 3.625% | ||||||
Redemption percentage par value of senior notes | 99.92% | |||||||||
Senior Notes aggregate principal amount | $ 1,000,000,000 | |||||||||
Notes payable and other financing arrangements | $ 994,300,000 | $ 994,300,000 | 993,200,000 | |||||||
4.05% Senior Notes due 2025 | ||||||||||
Debt Instrument | ||||||||||
Interest rate on senior notes | 4.05% | 4.05% | 4.05% | 4.05% | ||||||
Redemption percentage par value of senior notes | 99.764% | |||||||||
Senior Notes aggregate principal amount | $ 1,750,000,000 | |||||||||
Notes payable and other financing arrangements | $ 1,736,300,000 | $ 1,736,300,000 | 1,734,800,000 | |||||||
5.20% Senior Notes due 2045 | ||||||||||
Debt Instrument | ||||||||||
Interest rate on senior notes | 5.20% | 5.20% | 5.20% | 5.20% | ||||||
Redemption percentage par value of senior notes | 99.294% | |||||||||
Senior Notes aggregate principal amount | $ 1,750,000,000 | |||||||||
Notes payable and other financing arrangements | $ 1,722,000,000 | $ 1,722,000,000 | 1,721,500,000 | |||||||
Note payable to Fumedica | ||||||||||
Debt Instrument | ||||||||||
Notes payable and other financing arrangements | 0 | 0 | 3,000,000 | SFr 61.4 | ||||||
Par value of notes payable | 3,200,000 | 3,200,000 | SFr 3.1 | $ 6,000,000 | SFr 6.2 | |||||
Interest rate swap | ||||||||||
Debt Instrument | ||||||||||
Net charge upon extinguishment of debt | 2,900,000 | |||||||||
Interest rate swap | 2.90% Senior Notes due 2020 | ||||||||||
Debt Instrument | ||||||||||
Fair value of the interest rate swaps | 10,100,000 | $ 10,100,000 | ||||||||
Eisai | ||||||||||
Debt Instrument | ||||||||||
Facility purchase | $ 17,200,000 | $ 104,800,000 |
Equity (Details)
Equity (Details) - shares shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of common stock | ||
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 235.3 | 238.5 |
Common stock, shares outstanding | 211.5 | 215.9 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2011 | |
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 8,000 | ||||||
Authorized amount of share repurchases | $ 5,000 | ||||||
Repurchase of common stock, at cost, shares | 16,800 | ||||||
Payments for repurchase of common stock | $ 1,365.4 | $ 1,000 | $ 5,000 | ||||
Series A | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 1,750 | ||||||
Series X junior participating | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 1,000 | ||||||
Undesignated | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 5,250 | ||||||
2016 Share Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Authorized amount of share repurchases | $ 3,000 | $ 5,000 | |||||
Repurchase of common stock, at cost, shares | 3,700 | 3,300 | |||||
Payments for repurchase of common stock | $ 1,000 | ||||||
2011 Share Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Common stock shares authorized for repurchase | 20,000 | ||||||
Repurchase of common stock, at cost, shares | 1,200 | ||||||
Payments for repurchase of common stock | $ 365.4 |
Accumulated Other Comprehensi89
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax beginning balance | $ (319.9) | $ (224) | $ (59.5) |
Other comprehensive income (loss), before reclassifications | (42.7) | (92.5) | 6.5 |
Amounts reclassified from accumulated other comprehensive income (loss) | 44.2 | (3.4) | (171) |
Net current period other comprehensive income (loss) | 1.5 | (95.9) | (164.5) |
Accumulated other comprehensive income (loss), net of tax ending balance | (318.4) | (319.9) | (224) |
Unrealized Gains (Losses) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax beginning balance | (10.8) | (0.8) | (0.4) |
Other comprehensive income (loss), before reclassifications | (3.5) | (10.6) | (1.7) |
Amounts reclassified from accumulated other comprehensive income (loss) | 12.7 | 0.6 | 1.3 |
Net current period other comprehensive income (loss) | 9.2 | (10) | (0.4) |
Accumulated other comprehensive income (loss), net of tax ending balance | (1.6) | (10.8) | (0.8) |
Unrealized Gains (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax beginning balance | 57.8 | 10.2 | 71.7 |
Other comprehensive income (loss), before reclassifications | (193.8) | 51.6 | 110.8 |
Amounts reclassified from accumulated other comprehensive income (loss) | 31.5 | (4) | (172.3) |
Net current period other comprehensive income (loss) | (162.3) | 47.6 | (61.5) |
Accumulated other comprehensive income (loss), net of tax ending balance | (104.5) | 57.8 | 10.2 |
Unfunded Status of Postretirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax beginning balance | (32.7) | (37.8) | (31.6) |
Other comprehensive income (loss), before reclassifications | (4.1) | 5.1 | (6.2) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | (4.1) | 5.1 | (6.2) |
Accumulated other comprehensive income (loss), net of tax ending balance | (36.8) | (32.7) | (37.8) |
Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax beginning balance | (334.2) | (195.6) | (99.2) |
Other comprehensive income (loss), before reclassifications | 158.7 | (138.6) | (96.4) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | 158.7 | (138.6) | (96.4) |
Accumulated other comprehensive income (loss), net of tax ending balance | $ (175.5) | $ (334.2) | $ (195.6) |
Accumulated Other Comprehensi90
Accumulated Other Comprehensive Income (Loss) (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | $ (13.1) | $ (17) | $ (13.8) | ||||||||
Income tax benefit (expense) | 2,458.7 | 1,237.3 | 1,161.6 | ||||||||
Product, net | $ (2,712.4) | $ (2,622.5) | $ (2,639.7) | $ (2,380.1) | $ (2,502.9) | $ (2,539.6) | $ (2,466) | $ (2,309.4) | (10,354.7) | (9,817.9) | (9,188.5) |
Nonoperating Income (Expense) | (215.4) | (217.4) | (123.7) | ||||||||
Net income attributable to Biogen Inc. | $ (297.4) | $ 1,226.1 | $ 862.8 | $ 747.6 | $ 649.2 | $ 1,032.9 | $ 1,049.8 | $ 970.9 | 2,539.1 | 3,702.8 | 3,547 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income attributable to Biogen Inc. | (44.2) | 3.4 | 171 | ||||||||
Unrealized Gains (Losses) on Securities Available for Sale | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | (19.5) | (0.9) | (2) | ||||||||
Income tax benefit (expense) | 6.8 | 0.3 | 0.7 | ||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax benefit (expense) | 0.1 | 0 | (0.8) | ||||||||
Product, net | (32.5) | (5.3) | (173.2) | ||||||||
Operating Expenses | 0.6 | 1.5 | 0 | ||||||||
Nonoperating Income (Expense) | $ 0.3 | $ 0.2 | $ (0.1) |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income attributable to Biogen Idec Inc | $ (297.4) | $ 1,226.1 | $ 862.8 | $ 747.6 | $ 649.2 | $ 1,032.9 | $ 1,049.8 | $ 970.9 | $ 2,539.1 | $ 3,702.8 | $ 3,547 |
Denominator: | |||||||||||
Weighted average number of common shares outstanding | 211.5 | 211.4 | 211.9 | 215.6 | 216.6 | 218.9 | 219.1 | 218.9 | 212.6 | 218.4 | 230.7 |
Effect of dilutive securities: | |||||||||||
Dilutive potential common shares | 0.4 | 0.4 | 0.5 | ||||||||
Shares used in calculating diluted earnings per share | 212 | 211.8 | 212.2 | 215.9 | 217 | 219.4 | 219.4 | 219.3 | 213 | 218.8 | 231.2 |
Earnings per share (Textual) | |||||||||||
Repurchase of common stock | 3.7 | 0.7 | 4.6 | ||||||||
Stock options and employee stock purchase plan | |||||||||||
Effect of dilutive securities: | |||||||||||
Stock options and employee stock purchase plan | 0.1 | 0.1 | 0.1 | ||||||||
Time-vested restricted stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Stock options and employee stock purchase plan | 0.2 | 0.2 | 0.3 | ||||||||
Market stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Stock options and employee stock purchase plan | 0.1 | 0.1 | 0.1 |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Expense included in consolidated statements of income | |||
Share-based compensation expense | $ (138.1) | $ (169.4) | $ (183.2) |
Subtotal | 169.7 | 204.4 | 207.3 |
Capitalized share-based compensation costs | (9.6) | (14.6) | (11) |
Share-based compensation expense included in total costs and expenses | 160.1 | 189.8 | 196.3 |
Income tax effect | (42.8) | (54) | (55.8) |
Research and development | |||
Share-based Compensation Expense included in consolidated statements of income | |||
Share-based compensation expense | (74) | (84.5) | (88.6) |
Selling, general and administrative | |||
Share-based Compensation Expense included in consolidated statements of income | |||
Share-based compensation expense | (95.7) | (121.7) | (127.3) |
Restructuring charges | |||
Share-based Compensation Expense included in consolidated statements of income | |||
Share-based compensation expense | 0 | 1.8 | 8.6 |
Total share-based compensation expense, net of tax | |||
Share-based Compensation Expense included in consolidated statements of income | |||
Share-based compensation expense | $ (117.3) | $ (135.8) | $ (140.5) |
Share-Based Payments (Details 1
Share-Based Payments (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of share based compensation expense associated with different programs | |||
Share-based compensation expense | $ 138.1 | $ 169.4 | $ 183.2 |
Subtotal | 169.7 | 204.4 | 207.3 |
Capitalized share-based compensation costs | (9.6) | (14.6) | (11) |
Share-based compensation expense included in total costs and expenses | 160.1 | 189.8 | 196.3 |
Market stock units | |||
Summary of share based compensation expense associated with different programs | |||
Share-based compensation expense | 22.4 | 38.4 | 38.1 |
Time-vested restricted stock units | |||
Summary of share based compensation expense associated with different programs | |||
Share-based compensation expense | 107.3 | 120 | 119 |
Cash settled performance units | |||
Summary of share based compensation expense associated with different programs | |||
Share-based compensation expense | 18.4 | 16.3 | 22.4 |
Performance Units [Member] | |||
Summary of share based compensation expense associated with different programs | |||
Share-based compensation expense | 12.3 | 18.6 | 13.9 |
Employee stock purchase plan | |||
Summary of share based compensation expense associated with different programs | |||
Share-based compensation expense | $ 9.3 | $ 11.1 | $ 13.9 |
Share-Based Payments (Details 2
Share-Based Payments (Details 2) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Stock Option Activity | |
Beginning Balance, Outstanding shares | shares | 66,000 |
Beginning Balance, Weighted Average Exercise Price | $ / shares | $ 54.06 |
Shares, Hemophilia spin-off adjustment | shares | 0 |
Weighted Average Exercise Price, Hemophilia spin-off adjustment | $ / shares | $ 0 |
Shares, Granted | shares | 0 |
Weighted Average Exercise Price, Granted | $ / shares | $ 0 |
Shares, Exercised | shares | (14,000) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 50.89 |
Shares, Cancelled | shares | (10,000) |
Weighted Average Exercise Price, Cancelled | $ / shares | $ 55.11 |
Ending Balance, Outstanding shares | shares | 42,000 |
Ending Balance, Weighted Average Exercise Price | $ / shares | $ 53.83 |
Share-Based Payments (Details 3
Share-Based Payments (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax benefit and cash received from stock option | |||
Tax benefit realized for stock options | $ 3.4 | $ 4 | $ 11.9 |
Cash received from the exercise of stock options | $ 0.7 | $ 2.2 | $ 6.3 |
Share-Based Payments (Details 4
Share-Based Payments (Details 4) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Market stock units activity | |||||
Weighted Average Exercise Price, Hemophilia spin-off adjustment | $ 0 | ||||
Market stock units | |||||
Market stock units activity | |||||
Beginning Balance, Unvested, Shares | 230,000 | ||||
Beginning Balance, Weighted Average Grant Date Fair Value | $ 355.60 | ||||
Shares, Hemophilia spin-off adjustment | 4,000 | ||||
Weighted Average Exercise Price, Hemophilia spin-off adjustment | $ 0 | ||||
Shares, Granted | [1] | 94,000 | |||
Weighted Average Grant Date Fair Value, Granted | $ 382.59 | [1] | $ 328.03 | $ 493.43 | |
Shares, Vested | (112,000) | ||||
Weighted Average Grant Date Fair Value, Vested | $ 311.17 | ||||
Shares, Forfeited | (45,000) | ||||
Weighted Average Grant Date Fair Value, Forfeited | $ 372.35 | ||||
Ending Balance, Unvested, Shares | 171,000 | 230,000 | |||
Ending Balance, Weighted Average Grant Date Fair Value | $ 370.83 | $ 355.60 | |||
[1] | MSUs granted in 2017 include approximately 9,000 MSUs issued in 2017 based upon the attainment of performance criteria set for 2013, in relation to awards granted in that year. MSUs granted during 2017 also include awards granted in conjunction with our annual awards made in February 2017 and MSUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. MSUs granted in 2017 reflect an adjustment based upon the final performance multiplier in relation to shares granted in 2016, 2015 and 2014. |
Share-Based Payments (Details 5
Share-Based Payments (Details 5) - Market stock units - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Assumptions used in valuation of market based stock units | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Minimum range of risk-free interest rates | 0.90% | 0.60% | 0.20% | |
Maximum range of risk-free interest rates | 1.60% | 0.90% | 1.00% | |
Average stock price on grant date minimum | $ 263.18 | $ 260.67 | $ 227.35 | |
Average stock price on grant date maximum | $ 267.88 | $ 304.86 | $ 426.27 | |
Weighted average grant date fair value | $ 382.59 | [1] | $ 328.03 | $ 493.43 |
Minimum | ||||
Assumptions used in valuation of market based stock units | ||||
Range of expected stock price volatility | 33.00% | 38.20% | 31.00% | |
Maximum | ||||
Assumptions used in valuation of market based stock units | ||||
Range of expected stock price volatility | 35.60% | 40.70% | 33.20% | |
[1] | MSUs granted in 2017 include approximately 9,000 MSUs issued in 2017 based upon the attainment of performance criteria set for 2013, in relation to awards granted in that year. MSUs granted during 2017 also include awards granted in conjunction with our annual awards made in February 2017 and MSUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. MSUs granted in 2017 reflect an adjustment based upon the final performance multiplier in relation to shares granted in 2016, 2015 and 2014. |
Share-Based Payments (Details 6
Share-Based Payments (Details 6) - Cash settled performance units | 12 Months Ended | |
Dec. 31, 2017shares | ||
Cash settled performance shares | ||
Beginning Balance, Unvested, Shares | 122,000,000 | |
Shares, Hemophilia spin-off adjustment | 3,000,000 | |
Shares, Granted | 83,000,000 | [1] |
Shares, Vested | (69,000,000) | |
Shares, Forfeited | (34,000,000) | |
Ending Balance, Unvested, Shares | 105,000,000 | |
[1] | CSPUs granted in 2017 include awards granted in conjunction with our annual awards made in February 2017 and CSPUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. CSPUs granted in 2017 also include CSPUs issued in 2017 based upon the attainment of performance criteria set for 2016 in relation to shares granted in 2016. |
Share-based Payments Share-Base
Share-based Payments Share-Based Payments (Details 7) - Performance units | 12 Months Ended | |
Dec. 31, 2017shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Beginning Balance, Unvested, Shares | 110,000,000 | |
Shares, Hemophilia spin-off adjustment | 3,000,000 | |
Shares, Granted | 40,000,000 | [1] |
Shares, Vested | (43,000,000) | |
Shares, Forfeited | (19,000,000) | |
Ending Balance, Unvested, Shares | 91,000,000 | |
[1] | CSPUs granted in 2017 include awards granted in conjunction with our annual awards made in February 2017 and CSPUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. CSPUs granted in 2017 also include CSPUs issued in 2017 based upon the attainment of performance criteria set for 2016 in relation to shares granted in 2016. |
Share-Based Payments (Details 8
Share-Based Payments (Details 8) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Time-vested restricted stock units | |||||
Weighted Average Exercise Price, Hemophilia spin-off adjustment | $ 0 | ||||
Time-vested restricted stock units | |||||
Time-vested restricted stock units | |||||
Beginning Balance, Unvested, Shares | 888,000 | ||||
Beginning Balance, Weighted Average Grant Date Fair Value | $ 303.49 | ||||
Shares, Hemophilia spin-off adjustment | 12,000 | ||||
Weighted Average Exercise Price, Hemophilia spin-off adjustment | $ 0 | ||||
Shares, Granted | [1] | 464,000 | |||
Weighted Average Grant Date Fair Value, Granted | $ 293.41 | [1] | $ 268.52 | $ 388.88 | |
Shares, Vested | (350,000) | ||||
Weighted Average Grant Date Fair Value, Vested | $ 308.04 | ||||
Shares, Forfeited | (182,000) | ||||
Weighted Average Grant Date Fair Value, Forfeited | $ 292.57 | ||||
Ending Balance, Unvested, Shares | 832,000 | 888,000 | |||
Ending Balance, Weighted Average Grant Date Fair Value | $ 291.85 | $ 303.49 | |||
[1] | RSUs granted in 2017 primarily represent RSUs granted in conjunction with our annual awards made in February 2017 and awards made in conjunction with the hiring of new employees. RSUs granted in 2017 also include approximately 11,000 RSUs granted to our Board of Directors. |
Share-Based Payments (Details 9
Share-Based Payments (Details 9) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares issued under ESPP | 6,200,000 | ||
2015 ESPP | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares issued under ESPP | 167,000 | 190,000 | 78,000 |
Cash received under ESPP | $ 39.8 | $ 41.5 | $ 19.3 |
1995 ESPP | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares issued under ESPP | 0 | 0 | 98,000 |
Cash received under ESPP | $ 0 | $ 0 | $ 30 |
Share-Based Payments (Details T
Share-Based Payments (Details Textual) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017USD ($)PlanIncrement$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2013Increment | Jun. 30, 2017shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Shares issued under ESPP | 6,200,000 | ||||||
Share-Based Payments (Textual) | |||||||
Unrecognized compensation cost related to unvested share-based compensation | $ | $ 168 | ||||||
Weighted-average period to recognize the cost of unvested awards | 1 year 11 months | ||||||
Number of share-based compensation plans pursuant to which awards are currently being made | Plan | 3 | ||||||
Number of shares granted under stock options | 0 | 0 | 0 | ||||
Total intrinsic value of options exercised | $ | $ 3.4 | $ 10.4 | $ 38 | ||||
Aggregate intrinsic values of options outstanding | $ | $ 11.1 | ||||||
Weighted average remaining contractual term for options outstanding | 1 year 4 months | ||||||
Market stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of equal annual increments | Increment | 3 | 4 | |||||
Percentage of earnings of the target number of units granted based on actual stock performance (Minimum) | 0.00% | 0.00% | |||||
Percentage of earnings of the target number of units granted based on actual stock performance (Maximum) | 200.00% | 150.00% | |||||
Number of shares granted | [1] | 94,000 | |||||
Number of days for calculation of average closing stock price | 30 days | 60 days | |||||
Total fair value of vested awards | $ | $ 31.4 | $ 39.3 | $ 109 | ||||
Weighted average grant date fair value | $ / shares | $ 382.59 | [1] | $ 328.03 | $ 493.43 | |||
Cash settled performance units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of equal annual increments | Increment | 3 | ||||||
Percentage of earnings of the target number of units granted based on actual stock performance (Minimum) | 0.00% | ||||||
Percentage of earnings of the target number of units granted based on actual stock performance (Maximum) | 200.00% | ||||||
Number of shares granted | [2] | 83,000,000 | |||||
Number of days for calculation of average closing stock price | 30 days | 60 days | |||||
Cash in settlement of CSPS awards upon vesting | $ | $ 16.6 | $ 31.9 | $ 79.8 | ||||
Performance units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of equal annual increments | Increment | 3 | ||||||
Percentage of earnings of the target number of units granted based on actual stock performance (Minimum) | 0.00% | ||||||
Percentage of earnings of the target number of units granted based on actual stock performance (Maximum) | 200.00% | ||||||
Number of shares granted | [2] | 40,000,000 | |||||
Number of days for calculation of average closing stock price | 30 days | ||||||
Cash in settlement of CSPS awards upon vesting | $ | $ 11.5 | 8.1 | $ 12.4 | ||||
PUs converted to share settlements | 32,000 | ||||||
Time-vested restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of shares granted | [3] | 464,000 | |||||
Total fair value of vested awards | $ | $ 100 | $ 104.6 | $ 239.7 | ||||
Weighted average grant date fair value | $ / shares | $ 293.41 | [3] | $ 268.52 | $ 388.88 | |||
Director | Time-vested restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of shares granted | [3] | 11,000 | |||||
Settlement of PUs | Performance units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
PUs converted to share settlements | 11,000 | ||||||
Directors Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Total number of shares of common stock for issuance | 1,600,000 | ||||||
Ratio of total number of shares reserved under the plan | 1.5-to-1 | ||||||
2017 Omnibus Equity Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Ratio of total number of shares reserved under the plan | 1.5-to-1 | ||||||
Omnibus Plan number of shares authorized | 8,000,000 | ||||||
Attainment Of Performance Criteria in 2013 | Market stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of shares granted | [1] | 9,000 | |||||
[1] | MSUs granted in 2017 include approximately 9,000 MSUs issued in 2017 based upon the attainment of performance criteria set for 2013, in relation to awards granted in that year. MSUs granted during 2017 also include awards granted in conjunction with our annual awards made in February 2017 and MSUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. MSUs granted in 2017 reflect an adjustment based upon the final performance multiplier in relation to shares granted in 2016, 2015 and 2014. | ||||||
[2] | CSPUs granted in 2017 include awards granted in conjunction with our annual awards made in February 2017 and CSPUs granted in conjunction with the hiring of employees. These grants reflect the target number of shares eligible to be earned at the time of grant. CSPUs granted in 2017 also include CSPUs issued in 2017 based upon the attainment of performance criteria set for 2016 in relation to shares granted in 2016. | ||||||
[3] | RSUs granted in 2017 primarily represent RSUs granted in conjunction with our annual awards made in February 2017 and awards made in conjunction with the hiring of new employees. RSUs granted in 2017 also include approximately 11,000 RSUs granted to our Board of Directors. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income before income taxes (benefit): | |||
Domestic | $ 3,540.4 | $ 3,655.4 | $ 3,386.7 |
Foreign | 1,588.4 | 1,277.6 | 1,380.6 |
Income before income tax expense and equity in loss of investee, net of tax | 5,128.8 | 4,933 | 4,767.3 |
Current | |||
Federal | 2,201.4 | 1,304.3 | 1,214.1 |
State | 57 | 55.1 | 38.6 |
Foreign | 108.6 | 52.9 | 54.5 |
Total | 2,367 | 1,412.3 | 1,307.2 |
Deferred | |||
Federal | 241 | (125.6) | (129.6) |
State | 9.9 | (3.8) | (1.9) |
Foreign | (159.2) | (45.6) | (14.1) |
Total | 91.7 | (175) | (145.6) |
Total income tax expense | $ 2,458.7 | $ 1,237.3 | $ 1,161.6 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Components of deferred tax assets and liabilities | ||
Tax credits | $ 60 | $ 201.1 |
Inventory, other reserves, and accruals | 147.8 | 250.6 |
Intangibles, net | 378.8 | 459.8 |
Net operating loss | 209.8 | 65.9 |
Share-based compensation | 26.9 | 61.5 |
Other | 25.1 | 49 |
Valuation allowance | (16.6) | (16.1) |
Total deferred tax assets | 831.8 | 1,071.8 |
Purchased intangible assets | (250.7) | (376.6) |
Depreciation, amortization and other | (107.9) | (113.5) |
Total deferred tax liabilities | $ 358.6 | $ 490.1 |
Income Taxes (Details 2)
Income Taxes (Details 2) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation between the U.S. federal statutory tax rate and effective tax rate | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State taxes | 0.80% | 0.90% | 0.50% |
Taxes on foreign earnings | (11.10%) | (9.60%) | (10.00%) |
Credits and net operating loss utilization | (0.80%) | (1.40%) | (1.30%) |
Purchased intangible assets | 1.40% | 1.20% | 1.00% |
Manufacturing deduction | (1.90%) | (1.90%) | (1.80%) |
2017 Tax Act | 22.90% | 0.00% | 0.00% |
Impairment of ZINBRYTA related tax assets | 0.90% | 0.00% | 0.00% |
Permanent items | 0.70% | 0.50% | 0.70% |
Other | 0.00% | 0.40% | 0.30% |
Effective tax rate | 47.90% | 25.10% | 24.40% |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the beginning and ending of unrecognized tax benefits | |||
Balance at January 1 | $ 32.4 | $ 67.9 | $ 131.5 |
Additions based on tax positions related to the current period | 5.7 | 7.2 | 10.5 |
Additions for tax positions of prior periods | 7.3 | 36.3 | 19.5 |
Reductions for tax positions of prior periods | (21.8) | (13.3) | (49.9) |
Statute expirations | (1.4) | (1.4) | (1.2) |
Settlements | 44.6 | 64.3 | 42.5 |
Balance at December 31 | $ 66.8 | $ 32.4 | $ 67.9 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Credit Carryforward [Line Items] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
Income tax benefit (expense) | $ 2,458.7 | $ 1,237.3 | $ 1,161.6 |
Net impairment on certain tax assets | 48.8 | ||
Income Taxes (Textual) | |||
Total deferred charges and prepaid taxes | 617.7 | 989.8 | |
Unrecognized tax benefit | 64.3 | 26.9 | 15.7 |
Net interest expense | 4.8 | 9.1 | $ 3.1 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 16.1 | $ 25.2 | |
2017 Tax Act | |||
Tax Credit Carryforward [Line Items] | |||
Statutory rate | 21.00% | ||
Income tax benefit (expense) | $ 1,173.6 | ||
Accrued income tax liability under the Transition Toll Tax | 989.6 | ||
Accrued income tax liability under the Transition Toll Tax, current | 78.3 | ||
Income tax expense (benefit) | 184 | ||
Foreign Tax Authority [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Notice of assessment of corporate withholding tax including penalties and interest | 60 | ||
General Business | Domestic Country | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 1.4 | ||
Tax Credit Carryforward, Amount | 1.3 | ||
General Business | State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 19.3 | ||
General Business | Foreign Tax Authority [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 2,100 | ||
Research | State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Tax Credit Carryforward, Amount | 129.7 | ||
Prepaid taxes | |||
Tax Credit Carryforward [Line Items] | |||
Net impairment on certain tax assets | 142.6 | ||
Deferred Tax Asset | |||
Income Taxes (Textual) | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 500 | ||
Retained Earnings | |||
Income Taxes (Textual) | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 500 | ||
Earnings in the form of cash and cash equivalents | 2017 Tax Act | |||
Tax Credit Carryforward [Line Items] | |||
Transition Toll Tax repatriation tax rate | 15.50% | ||
Other Foreign Earnings | 2017 Tax Act | |||
Tax Credit Carryforward [Line Items] | |||
Transition Toll Tax repatriation tax rate | 8.00% |
Other Consolidated Financial108
Other Consolidated Financial Statement Detail (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue-related reserves for discounts and allowances | $ 761.6 | $ 605.5 | $ 662.7 | $ 483.8 |
Cash Paid During the Year | ||||
Interest | 281.7 | 281.2 | 39.1 | |
Income taxes | 1,066.4 | 1,642.2 | 1,674.8 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Interest income | 78.5 | 63.4 | 22.1 | |
Interest expense | 250.8 | 260 | 95.5 | |
Gain (loss) on investments, net | (36.3) | 6 | (3.8) | |
Foreign exchange gains (losses), net | 6.3 | (9.8) | (32.7) | |
Other income (expense) | (13.1) | (17) | (13.8) | |
Total other income (expense), net | (215.4) | (217.4) | $ (123.7) | |
Accrued Liabilities, Current [Abstract] | ||||
Current portion of contingent consideration obligations | 844.6 | 580.8 | ||
Employee compensation and benefits | 297.7 | 282.9 | ||
Royalties and licensing fees | 206.7 | 195.8 | ||
Collaboration expenses | 183.7 | 130.9 | ||
Accrued construction in progress | 159.7 | 134 | ||
Accrued TECFIDERA litigation settlement and license charges | 0 | 454.8 | ||
Other | 636.9 | 685.7 | ||
Accrued expenses and other | 2,901.3 | 2,903.5 | ||
Component of accrued expenses and other | ||||
Revenue-related reserves for discounts and allowances | $ 572 | $ 438.6 |
Other Consolidated Financial109
Other Consolidated Financial Statement Detail (Details Textual) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Feb. 28, 2015USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2013USD ($) | Jun. 30, 2013EUR (€) | Dec. 31, 2011EUR (€) | |
Business Acquisition [Line Items] | |||||||||||||||||
Increase to goodwill | $ 1,267.3 | $ 1,026.9 | |||||||||||||||
Accrued construction in progress | $ 159.7 | $ 134 | 159.7 | 134 | |||||||||||||
TECFIDERA litigation settlement charge | 454.8 | 0 | 454.8 | $ 0 | |||||||||||||
Net charge upon extinguishment of debt | 5.2 | ||||||||||||||||
Prepaid taxes | 657.6 | 817 | 657.6 | 817 | |||||||||||||
Net impairment on certain tax assets | 48.8 | 48.8 | |||||||||||||||
Loss contingency, adjustment related to claim amount, percent | 50.00% | 50.00% | |||||||||||||||
Product, net | 2,712.4 | $ 2,622.5 | $ 2,639.7 | $ 2,380.1 | 2,502.9 | $ 2,539.6 | $ 2,466 | $ 2,309.4 | 10,354.7 | 9,817.9 | 9,188.5 | ||||||
Solothurn | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Accrued construction in progress | 150 | $ 100 | 150 | 100 | |||||||||||||
Convergence Pharmaceuticals | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Contingent consideration obligation | $ 274.5 | ||||||||||||||||
TECFIDERA | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Product, net | 4,214 | 3,968.1 | $ 3,638.4 | ||||||||||||||
TECFIDERA | Fumapharm AG | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Increase to goodwill | 1,500 | $ 1,200 | |||||||||||||||
TECFIDERA | Fifteen billion | Fumapharm AG | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cumulative sales level | 15,000 | 15,000 | |||||||||||||||
TECFIDERA | Sixteen billion | Fumapharm AG | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Increase to goodwill | 600 | ||||||||||||||||
Cumulative sales level | $ 16,000 | $ 16,000 | |||||||||||||||
ITALY | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Proposed settlement | € | € (33.3) | € (30.7) | |||||||||||||||
Reimbursement Limit Stated In Resolution | 24 months | ||||||||||||||||
Loss contingency accrual | $ 15.4 | ||||||||||||||||
Product, net | $ 45 | € 41.8 | $ 53.5 |
Investments in Variable Inte110
Investments in Variable Interest Entities (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||||
Payment to Neurimmune | $ 134.1 | $ 0 | $ 56.1 | ||
Investment in Variable Interest Entities (Textual) | |||||
Investment in biotechnology companies that are determined to be unconsolidated variable interest entities | 48.3 | $ 47.4 | |||
Neurimmune | |||||
Variable Interest Entity [Line Items] | |||||
Payment to Neurimmune | $ 150 | $ 60 | |||
Reduction in royalty rate payable on commercial sales | 15.00% | ||||
Additional reduction in royalty rate payable on commercial sales | 5.00% | ||||
Additional potential payment to Neurimmune | $ 50 | ||||
Investment in Variable Interest Entities (Textual) | |||||
Remaining potential development milestone payments and royalties on commercial sales under the terms of collaboration agreement | $ 275 |
Collaborative and Other Rela111
Collaborative and Other Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from unconsolidated joint business | |||||||||||
Revenue on sales in the rest of world for RITUXAN | $ 2,712.4 | $ 2,622.5 | $ 2,639.7 | $ 2,380.1 | $ 2,502.9 | $ 2,539.6 | $ 2,466 | $ 2,309.4 | $ 10,354.7 | $ 9,817.9 | $ 9,188.5 |
Total revenues from anti-CD20 therapeutic programs | $ 415 | $ 406.5 | $ 397.1 | $ 340.6 | $ 318.2 | $ 317.6 | $ 349.2 | $ 329.5 | 1,559.2 | 1,314.5 | 1,339.2 |
Roche Group - Genentech | |||||||||||
Revenues from unconsolidated joint business | |||||||||||
Biogen's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA, including the reimbursement of selling and development expenses | 1,316.4 | 1,249.5 | 1,269.8 | ||||||||
Revenue on sales in the rest of world for RITUXAN | 242.8 | 65 | 69.4 | ||||||||
Total revenues from anti-CD20 therapeutic programs | $ 1,559.2 | $ 1,314.5 | $ 1,339.2 | ||||||||
GAZYVA | |||||||||||
After First GA101 Threshold Date | |||||||||||
Until First GAZYVA Threshold Date | 39.00% | 39.00% | |||||||||
After First Threshold Date and until Second Threshold Date | 37.50% | 37.50% | |||||||||
After Second Threshold Date | 35.00% | 35.00% | |||||||||
RITUXAN | |||||||||||
Co-promotion profit sharing formula | |||||||||||
Until GAZYVA First Non-CLL FDA Approval | 40.00% | 40.00% | 40.00% | ||||||||
After First GA101 Threshold Date | |||||||||||
Until First GAZYVA Threshold Date | 39.00% | 39.00% | 39.00% | 39.00% | |||||||
After First Threshold Date and until Second Threshold Date | 37.50% | 37.50% | |||||||||
After Second Threshold Date | 35.00% | 35.00% |
Collaborative and Other Rela112
Collaborative and Other Relationships (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Collaborative arrangements and non-collaborative arrangement transactions | |||||||||||
Product revenues, net | $ 3,307 | $ 3,077.8 | $ 3,078.4 | $ 2,810.7 | $ 2,872 | $ 2,955.8 | $ 2,894.2 | $ 2,726.8 | $ 12,273.9 | $ 11,448.8 | $ 10,763.8 |
Costs and expenses | 6,929.7 | 6,298.4 | $ 5,872.8 | ||||||||
AbbVie | |||||||||||
Collaborative arrangements and non-collaborative arrangement transactions | |||||||||||
Product revenues, net | 53.1 | 6.1 | |||||||||
Costs and expenses | 92.6 | 50 | |||||||||
Co-promotion profits and losses | 39.5 | 43.9 | |||||||||
Biogen's share of co-promotion losses | $ 16.9 | $ 21.9 |
Collaborative and Other Rela113
Collaborative and Other Relationships Collaborative and Other Relationships (Details 2) - Eisai - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Collaborative arrangements and non-collaborative arrangement transactions | |||
Total expense incurred by collaboration | $ 146.2 | $ 95.1 | $ 84.1 |
Biogen's share of expense reflected within our consolidation statements of income | $ 74.3 | $ 50.5 | $ 40.4 |
Collaborative and Other Rela114
Collaborative and Other Relationships (Details Textual) $ in Millions, ₩ in Billions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 31, 2019 | Feb. 29, 2012USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Mar. 31, 2012USD ($) | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012USD ($) | Feb. 29, 2012KRW (₩) | |
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Revenue on sales in the rest of world for RITUXAN | $ 2,712.4 | $ 2,622.5 | $ 2,639.7 | $ 2,380.1 | $ 2,502.9 | $ 2,539.6 | $ 2,466 | $ 2,309.4 | $ 10,354.7 | $ 9,817.9 | $ 9,188.5 | |||||||||
Research and development | 2,253.6 | 1,973.3 | 2,012.8 | |||||||||||||||||
Other revenues | 179.6 | $ 48.8 | 41.6 | $ 90 | 50.9 | 98.6 | 79 | $ 87.9 | 360 | 316.4 | 236.1 | |||||||||
Collaboration profit (loss) sharing | 112.3 | 10.2 | 0 | |||||||||||||||||
Potential future milestone payments commitment, approximately | 4,200 | 4,200 | ||||||||||||||||||
Prepaid research and development | 1,027.5 | $ 1,335.8 | 1,027.5 | 1,335.8 | ||||||||||||||||
Equity in loss of investee, net of tax | 0 | 0 | (12.5) | |||||||||||||||||
Roche Group - Genentech | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA, including the reimbursement of selling and development expenses | 1,316.4 | 1,249.5 | 1,269.8 | |||||||||||||||||
Revenue on sales in the rest of world for RITUXAN | 242.8 | 65 | 69.4 | |||||||||||||||||
Collaboration Expenses in Dispute | 120 | |||||||||||||||||||
AbbVie | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA, including the reimbursement of selling and development expenses | $ 16.9 | 21.9 | ||||||||||||||||||
Biogen share of co-promotion profits or losses | 50.00% | |||||||||||||||||||
Acorda | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen's share of expense reflected within our consolidation statements of income | $ 34 | 31.5 | 30.6 | |||||||||||||||||
Expected additional milestone payments when certain sales threshold is met | 15 | 15 | ||||||||||||||||||
Foreign sales required to trigger milestone | 100 | |||||||||||||||||||
Ionis Pharmaceuticals, Inc. | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Expected additional milestone payments when certain sales threshold is met | 800 | 800 | ||||||||||||||||||
Research and development | $ 75 | 12 | 10 | |||||||||||||||||
Estimated additional payments upon achievement of development and commercial milestones. | 260 | 260 | ||||||||||||||||||
License Fee | 70 | |||||||||||||||||||
Expected License Fee And Regulatory Milestone Payments | 130 | 130 | ||||||||||||||||||
Upfront And Milestone Payments Made To Collaborative Partner | 25 | $ 100 | 25 | $ 30 | ||||||||||||||||
Additional milestone payment | $ 10 | |||||||||||||||||||
Term of collaboration agreement | 6 years | |||||||||||||||||||
Prepaid research and discovery services | $ 25 | |||||||||||||||||||
Additional milestone payments for product candidate using a different modality | 90 | |||||||||||||||||||
Eisai | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen's share of expense reflected within our consolidation statements of income | 74.3 | 50.5 | 40.4 | |||||||||||||||||
Research and development | 263.4 | 50 | ||||||||||||||||||
Total expense incurred by collaboration | 146.2 | 95.1 | 84.1 | |||||||||||||||||
Additional milestone payment | 625 | 625 | ||||||||||||||||||
Bristol-Myers Squibb [Member] | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Research and development | 300 | |||||||||||||||||||
Additional milestone payment | 410 | 410 | ||||||||||||||||||
iPerian | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Additional milestone payment | 490 | 490 | ||||||||||||||||||
Developmental Milestone Payment | $ 60 | |||||||||||||||||||
Alkermes | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Research and development | 50 | 80.3 | ||||||||||||||||||
Upfront And Milestone Payments Made To Collaborative Partner | 28 | 28 | ||||||||||||||||||
Potential future milestone payments commitment, approximately | 150 | 150 | ||||||||||||||||||
AGTC | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Research and development | 27.5 | 26.5 | 54.5 | |||||||||||||||||
Upfront And Milestone Payments Made To Collaborative Partner | $ 124 | |||||||||||||||||||
Additional milestone payment | 1,100 | 1,100 | ||||||||||||||||||
Prepaid research and discovery services | 11.1 | 58.4 | 11.1 | |||||||||||||||||
Purchase of common stock | 30 | |||||||||||||||||||
Total licensing and other fees | $ 35.6 | |||||||||||||||||||
University of Pennsylvania | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Research and development | 20 | 33 | 27.8 | |||||||||||||||||
Prepaid research and discovery services | 12.7 | 12.7 | ||||||||||||||||||
Potential future milestone payments commitment, approximately | 2,000 | 2,000 | ||||||||||||||||||
Prepaid research and development | 29.1 | $ 15 | 29.1 | |||||||||||||||||
Future research and development commitment | $ 0 | 0 | ||||||||||||||||||
Other research and discovery | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Research and development | 10 | 10.3 | $ 9.7 | |||||||||||||||||
Samsung Biosimilar Agreement | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Research and development | $ 46 | |||||||||||||||||||
Collaboration profit (loss) sharing | $ 111 | $ 15.1 | ||||||||||||||||||
Equity Method Investments, Expected Profit Share | 50.00% | |||||||||||||||||||
RITUXAN | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Percentage of Co promotion Operating Profits first fifty million | 30.00% | 30.00% | ||||||||||||||||||
Until First GAZYVA Threshold Date | 39.00% | 39.00% | 39.00% | 39.00% | ||||||||||||||||
Until GAZYVA First Non-CLL FDA Approval | 40.00% | 40.00% | 40.00% | |||||||||||||||||
After First Threshold Date and until Second Threshold Date | 37.50% | 37.50% | ||||||||||||||||||
GAZYVA | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Percentage of Co promotion Operating Profits first fifty million | 35.00% | 35.00% | ||||||||||||||||||
Co-promotion operating profit threshold for Rituxan in U S and Canada to determine share of co promotion operating profit prior to amendment | $ 50 | $ 50 | ||||||||||||||||||
Limit of gross sale of GAZYVA to be achieved in preceding 12 months under option one | 150 | |||||||||||||||||||
Limit of gross sale of GAZYVA to be achieved in any 12 months under option one | 150 | |||||||||||||||||||
Sales Trigger Gross Sales Threshold | $ 500 | |||||||||||||||||||
Until First GAZYVA Threshold Date | 39.00% | 39.00% | ||||||||||||||||||
After First Threshold Date and until Second Threshold Date | 37.50% | 37.50% | ||||||||||||||||||
New Anti-CD20 | Minimum | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Future percentage of co-promotion operating profits | 30.00% | |||||||||||||||||||
New Anti-CD20 | Maximum | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Future percentage of co-promotion operating profits | 37.50% | |||||||||||||||||||
OCREVUS | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Royalty operating profit threshold for highest royalty rate percentage | $ 900 | $ 900 | ||||||||||||||||||
Reduction in royalty rate | 50.00% | |||||||||||||||||||
Period of collaboration agreement | 11 years | |||||||||||||||||||
OCREVUS | Minimum | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Future royalties percentage to be received on sale of ocrelizumab | 13.50% | |||||||||||||||||||
OCREVUS | Maximum | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Future royalties percentage to be received on sale of ocrelizumab | 24.00% | |||||||||||||||||||
ZINBRYTA | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Revenue on sales in the rest of world for RITUXAN | $ 52.7 | $ 7.8 | $ 0 | |||||||||||||||||
Net impairment charges | 190.8 | |||||||||||||||||||
Unrecorded tax benefit | (93.8) | |||||||||||||||||||
ZINBRYTA | AbbVie | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen's share of expense reflected within our consolidation statements of income | 19.9 | 24.3 | 60.8 | |||||||||||||||||
SPINRAZA | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Revenue on sales in the rest of world for RITUXAN | 883.7 | 4.6 | 0 | |||||||||||||||||
SPINRAZA | Ionis Pharmaceuticals, Inc. | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen's share of expense reflected within our consolidation statements of income | 234.5 | 257.8 | 74.9 | |||||||||||||||||
Research and development | $ 29 | 35.3 | 42.8 | |||||||||||||||||
Royalty cost of sales | $ 112.4 | 0.5 | ||||||||||||||||||
License Fee | $ 75 | |||||||||||||||||||
SPINRAZA | Ionis Pharmaceuticals, Inc. | Minimum | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Percentage Of Royalties As Per Collaboration | 11.00% | |||||||||||||||||||
SPINRAZA | Ionis Pharmaceuticals, Inc. | Maximum | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Percentage Of Royalties As Per Collaboration | 15.00% | |||||||||||||||||||
SOD1 | Ionis Pharmaceuticals, Inc. | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Research and development | 5.5 | 20 | ||||||||||||||||||
Lead programs | AGTC | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Additional milestone payment | 467.5 | $ 467.5 | ||||||||||||||||||
Discovery programs | AGTC | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Additional milestone payment | 592.5 | 592.5 | ||||||||||||||||||
Samsung Biosimilar Agreement | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Other revenues | 42.7 | 20.2 | 62.9 | |||||||||||||||||
Additional milestone payment | $ 25 | $ 25 | ||||||||||||||||||
Investments By Third Party In Joint Venture As Per Agreement. | $ 250 | ₩ 280.5 | ||||||||||||||||||
Joint Venture Owner Ship Percentage By Third Party. | 85.00% | |||||||||||||||||||
Equity Method Investments | $ 45 | ₩ 49.5 | ||||||||||||||||||
Percentage of equity interest to the portion of total capital stock | 15.00% | 5.00% | 5.00% | 15.00% | ||||||||||||||||
Equity Method Investment Ownership Percentage Maximum | 49.90% | |||||||||||||||||||
Research and development | AbbVie | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Total expense incurred by collaboration | $ 39.9 | 48.6 | 113.8 | |||||||||||||||||
Selling, general and administrative | ZINBRYTA | AbbVie | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen's share of expense reflected within our consolidation statements of income | 22 | |||||||||||||||||||
U.S | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Revenue on sales in the rest of world for RITUXAN | 7,017.1 | 7,050.4 | 6,545.8 | |||||||||||||||||
Other revenues | 249.5 | 224.7 | $ 142 | |||||||||||||||||
U.S | AbbVie | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Other revenues | $ 16.9 | 21.9 | ||||||||||||||||||
U.S | Eisai | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen share of co-promotion profits or losses | 55.00% | |||||||||||||||||||
U.S | SPINRAZA | Ionis Pharmaceuticals, Inc. | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Revenue on sales in the rest of world for RITUXAN | $ 883.7 | 4.6 | ||||||||||||||||||
Outside the U.S | AbbVie | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Collaboration profit (loss) sharing | $ 1.3 | 4.9 | ||||||||||||||||||
Outside the U.S | OCREVUS | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Future royalties percentage to be received on sale of ocrelizumab | 3.00% | |||||||||||||||||||
European Union | Eisai | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen share of co-promotion profits or losses | 68.50% | |||||||||||||||||||
JAPAN | Eisai | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Biogen share of co-promotion profits or losses | 20.00% | |||||||||||||||||||
Acquired and in-licensed rights and patents | Ionis Pharmaceuticals, Inc. | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Net change in acquired and in-licensed rights and patents | $ 150 | |||||||||||||||||||
Acquired and in-licensed rights and patents | SPINRAZA | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Net change in acquired and in-licensed rights and patents | 90 | |||||||||||||||||||
Acquired and in-licensed rights and patents | Biosimilars | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Net change in acquired and in-licensed rights and patents | $ 25 | $ 50 | ||||||||||||||||||
Percentage of development expenses to be reimbursed | Eisai | ||||||||||||||||||||
Collaborative and Other Relationships (Textual) | ||||||||||||||||||||
Percentage of future development costs related to Eisai | 45.00% | 15.00% |
Commitments and Contingencie115
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2017USD ($) | |
Minimum rental commitments under non-cancelable leases | ||
Minimum lease payments, 2018 | $ 72.6 | |
Minimum lease payments, 2019 | 72.3 | |
Minimum lease payments, 2020 | 68.4 | |
Minimum lease payments, 2021 | 66.9 | |
Minimum lease payments, 2022 | 65.7 | |
Minimum lease payments, Thereafter | 271.1 | |
Minimum lease payments, Total | 617 | |
Less: income from subleases, 2018 | (24.3) | [1] |
Less: income from subleases, 2019 | (24.7) | [1] |
Less: income from subleases, 2020 | (23.9) | [1] |
Less: income from subleases, 2021 | (22.3) | [1] |
Less: income from subleases, 2022 | (22) | [1] |
Less: income from subleases, Thereafter | (71.3) | [1] |
Less: income from subleases, Total | (188.5) | [1] |
Net minimum lease payments, 2018 | 48.3 | |
Net minimum lease payments, 2019 | 47.6 | |
Net minimum lease payments, 2020 | 44.5 | |
Net minimum lease payments, 2021 | 44.6 | |
Net minimum lease payments, 2022 | 43.7 | |
Net minimum lease payments, Thereafter | 199.8 | |
Net minimum lease payments, Total | $ 428.5 | |
[1] | (1) |
Commitments and Contingencie116
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2006 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2013 | Apr. 02, 2013 | |
Business Acquisition [Line Items] | ||||||||||
Maximum contingent consideration in the form of development and approval milestones | $ 1,100 | $ 1,100 | ||||||||
Increase to goodwill | 1,267.3 | $ 1,026.9 | ||||||||
Potential future milestone payments commitment, approximately | 4,200 | 4,200 | ||||||||
Cancellable future commitments | 460 | 460 | ||||||||
Commitments And Contingencies (Textual) | ||||||||||
Accrued expenses | 40 | 40 | ||||||||
Liabilities associated with uncertain tax positions | 77.3 | 77.3 | ||||||||
Lease rent expense which terminates at various dates through 2028 | 65.3 | 68.7 | $ 68.6 | |||||||
TYSABRI | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Future contingent payment for annual worldwide net sales up to $2.0 billion | 18.00% | |||||||||
Future contingent payment threshold | $ 2,000 | |||||||||
Future contingent payment for annual worldwide net sales that exceed $2.0 billion | 25.00% | |||||||||
Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Amount paid in cash | $ 220 | |||||||||
Solothurn | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cancellable future commitments | 270 | 270 | ||||||||
TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum contingent consideration in the form of development and approval milestones | $ 15 | |||||||||
Increase to goodwill | 1,500 | 1,200 | ||||||||
Fourteen billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Increase to goodwill | 1,200 | |||||||||
Cumulative sales level | $ 14,000 | |||||||||
Eleven billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cumulative sales level | $ 11,000 | |||||||||
Twelve billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cumulative sales level | $ 12,000 | |||||||||
Thirteen billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cumulative sales level | $ 13,000 | |||||||||
Fifteen billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cumulative sales level | 15,000 | 15,000 | ||||||||
Sixteen billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Increase to goodwill | 600 | |||||||||
Cumulative sales level | 16,000 | 16,000 | ||||||||
One billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cumulative sales level | 1,000 | 1,000 | ||||||||
Each additional one billion up to twenty billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Increase to goodwill | 300 | |||||||||
Cumulative sales level | 20,000 | 20,000 | ||||||||
Three billion | TECFIDERA | Fumapharm AG | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cumulative sales level | 3,000 | 3,000 | ||||||||
Development Milestones [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Potential future milestone payments commitment, approximately | 700 | 700 | ||||||||
Regulatory Milestones [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Potential future milestone payments commitment, approximately | 1,500 | 1,500 | ||||||||
Commercial Milestones [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Potential future milestone payments commitment, approximately | 2,000 | 2,000 | ||||||||
2017 Tax Act | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Accrued income tax liability under the Transition Toll Tax | 989.6 | 989.6 | ||||||||
Accrued income tax liability under the Transition Toll Tax, current | $ 78.3 | $ 78.3 |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Minimum Qualifying Age For Employee Benefit Plan | 21 years | ||
Expenses related to savings plan | $ 42.6 | $ 45.2 | $ 51.8 |
Deferred Compensation Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Deferred compensation liability | $ 109.8 | $ 128.5 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details 1) - Foreign Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SWITZERLAND | |||
Employee Benefit Plans (Textual) [Abstract] | |||
Percentage of minimum investment return | 1.00% | 1.25% | 1.75% |
Unfunded net pension | $ 48.3 | $ 39.1 | |
Employee Benefit Plan obligations | 83.7 | 68.6 | |
Pension Cost (Reversal of Cost) | 12.3 | 15.3 | $ 12.9 |
GERMANY | |||
Employee Benefit Plans (Textual) [Abstract] | |||
Employee Benefit Plan obligations | 43.5 | 35.4 | |
Periodic pension cost | $ 5.2 | $ 4.2 | $ 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue by product | |||||||||||
Product, net | $ 2,712.4 | $ 2,622.5 | $ 2,639.7 | $ 2,380.1 | $ 2,502.9 | $ 2,539.6 | $ 2,466 | $ 2,309.4 | $ 10,354.7 | $ 9,817.9 | $ 9,188.5 |
U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 7,017.1 | 7,050.4 | 6,545.8 | ||||||||
Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 3,337.6 | 2,767.5 | 2,642.7 | ||||||||
TECFIDERA | |||||||||||
Revenue by product | |||||||||||
Product, net | 4,214 | 3,968.1 | 3,638.4 | ||||||||
TECFIDERA | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 3,294 | 3,169.4 | 2,908.2 | ||||||||
TECFIDERA | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 920 | 798.7 | 730.2 | ||||||||
AVONEX | |||||||||||
Revenue by product | |||||||||||
Product, net | 2,151.5 | 2,313.5 | 2,630.2 | ||||||||
AVONEX | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 1,593.6 | 1,675.3 | 1,790.2 | ||||||||
AVONEX | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 557.9 | 638.2 | 840 | ||||||||
PLEGRIDY | |||||||||||
Revenue by product | |||||||||||
Product, net | 494.3 | 481.7 | 338.5 | ||||||||
PLEGRIDY | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 295.5 | 305 | 227.1 | ||||||||
PLEGRIDY | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 198.8 | 176.7 | 111.4 | ||||||||
TYSABRI | |||||||||||
Revenue by product | |||||||||||
Product, net | 1,973.1 | 1,963.8 | 1,886.1 | ||||||||
TYSABRI | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 1,113.8 | 1,182.9 | 1,103.1 | ||||||||
TYSABRI | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 859.3 | 780.9 | 783 | ||||||||
FAMPYRA | |||||||||||
Revenue by product | |||||||||||
Product, net | 91.6 | 84.9 | 89.7 | ||||||||
FAMPYRA | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 0 | 0 | 0 | ||||||||
FAMPYRA | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 91.6 | 84.9 | 89.7 | ||||||||
ZINBRYTA | |||||||||||
Revenue by product | |||||||||||
Product, net | 52.7 | 7.8 | 0 | ||||||||
ZINBRYTA | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 0 | 0 | 0 | ||||||||
ZINBRYTA | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 52.7 | 7.8 | 0 | ||||||||
SPINRAZA | |||||||||||
Revenue by product | |||||||||||
Product, net | 883.7 | 4.6 | 0 | ||||||||
SPINRAZA | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 657 | 4.6 | 0 | ||||||||
SPINRAZA | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 226.7 | 0 | 0 | ||||||||
ELOCTATE | |||||||||||
Revenue by product | |||||||||||
Product, net | 48.4 | 513.2 | 319.7 | ||||||||
ELOCTATE | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 42.2 | 445.2 | 308.3 | ||||||||
ELOCTATE | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 6.2 | 68 | 11.4 | ||||||||
ALPROLIX | |||||||||||
Revenue by product | |||||||||||
Product, net | 26 | 333.7 | 234.5 | ||||||||
ALPROLIX | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 21 | 268 | 208.9 | ||||||||
ALPROLIX | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 5 | 65.7 | 25.6 | ||||||||
FUMADERM | |||||||||||
Revenue by product | |||||||||||
Product, net | 39.6 | 45.9 | 51.4 | ||||||||
FUMADERM | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 0 | 0 | 0 | ||||||||
FUMADERM | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 39.6 | 45.9 | 51.4 | ||||||||
BENEPALI | |||||||||||
Revenue by product | |||||||||||
Product, net | 370.8 | 100.6 | 0 | ||||||||
BENEPALI | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 0 | 0 | 0 | ||||||||
BENEPALI | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | 370.8 | 100.6 | 0 | ||||||||
FLIXABI | |||||||||||
Revenue by product | |||||||||||
Product, net | 9 | 0.1 | 0 | ||||||||
FLIXABI | U.S | |||||||||||
Revenue by product | |||||||||||
Product, net | 0 | 0 | 0 | ||||||||
FLIXABI | Rest of world | |||||||||||
Revenue by product | |||||||||||
Product, net | $ 9 | $ 0.1 | $ 0 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Geographic information | |||||||||||
Product, net | $ 2,712.4 | $ 2,622.5 | $ 2,639.7 | $ 2,380.1 | $ 2,502.9 | $ 2,539.6 | $ 2,466 | $ 2,309.4 | $ 10,354.7 | $ 9,817.9 | $ 9,188.5 |
Revenues from anti-CD20 therapeutic programs | 415 | 406.5 | 397.1 | 340.6 | 318.2 | 317.6 | 349.2 | 329.5 | 1,559.2 | 1,314.5 | 1,339.2 |
Other revenues | 179.6 | $ 48.8 | $ 41.6 | $ 90 | 50.9 | $ 98.6 | $ 79 | $ 87.9 | 360 | 316.4 | 236.1 |
Long-lived assets | 3,182.4 | 2,501.8 | 3,182.4 | 2,501.8 | 2,187.6 | ||||||
U.S | |||||||||||
Geographic information | |||||||||||
Product, net | 7,017.1 | 7,050.4 | 6,545.8 | ||||||||
Revenues from anti-CD20 therapeutic programs | 1,475.6 | 1,249.5 | 1,269.8 | ||||||||
Other revenues | 249.5 | 224.7 | 142 | ||||||||
Long-lived assets | 1,226.9 | 1,272.3 | 1,226.9 | 1,272.3 | 1,296.5 | ||||||
Europe | |||||||||||
Geographic information | |||||||||||
Product, net | 2,844.8 | 2,237.2 | 2,165.7 | ||||||||
Revenues from anti-CD20 therapeutic programs | 0.6 | 1.9 | 3.5 | ||||||||
Other revenues | 67.8 | 71.5 | 31.2 | ||||||||
Long-lived assets | 1,948.2 | 1,221.1 | 1,948.2 | 1,221.1 | 881.7 | ||||||
Asia | |||||||||||
Geographic information | |||||||||||
Product, net | 160.1 | 217.3 | 143.7 | ||||||||
Revenues from anti-CD20 therapeutic programs | 0 | 0 | 0 | ||||||||
Other revenues | 42.7 | 20.2 | 62.9 | ||||||||
Long-lived assets | 5.2 | 7 | 5.2 | 7 | 7.7 | ||||||
Other | |||||||||||
Geographic information | |||||||||||
Product, net | 332.7 | 313 | 333.3 | ||||||||
Revenues from anti-CD20 therapeutic programs | 83 | 63.1 | 65.9 | ||||||||
Other revenues | 0 | 0 | 0 | ||||||||
Long-lived assets | $ 2.1 | $ 1.4 | $ 2.1 | $ 1.4 | $ 1.7 |
Segment Information (Details Te
Segment Information (Details Textual) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Revenue from External Customer [Line Items] | |||
Revenues from anti-CD20 therapeutic programs in percentage | 13.00% | 11.00% | 12.00% |
Long-lived assets related to operations in Denmark | $ 3,182.4 | $ 2,501.8 | $ 2,187.6 |
Segment Information (Textual) [Abstract] | |||
Number of reportable segment | segment | 1 | ||
Distributor One | |||
Revenue from External Customer [Line Items] | |||
Entity wide percentage of revenue from major distributors | 34.00% | 35.00% | 34.00% |
Distributor Two | |||
Revenue from External Customer [Line Items] | |||
Entity wide percentage of revenue from major distributors | 21.00% | 22.00% | 26.00% |
Solothurn | |||
Revenue from External Customer [Line Items] | |||
Long-lived assets related to operations in Denmark | $ 1,215.7 | $ 545.5 | $ 161.5 |
DENMARK | |||
Revenue from External Customer [Line Items] | |||
Long-lived assets related to operations in Denmark | $ 707.1 | $ 643.6 | $ 684.9 |
Quarterly Financial Data (Un122
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Product, net | $ 2,712.4 | $ 2,622.5 | $ 2,639.7 | $ 2,380.1 | $ 2,502.9 | $ 2,539.6 | $ 2,466 | $ 2,309.4 | $ 10,354.7 | $ 9,817.9 | $ 9,188.5 | |
Revenues from anti-CD20 therapeutic programs | 415 | 406.5 | 397.1 | 340.6 | 318.2 | 317.6 | 349.2 | 329.5 | 1,559.2 | 1,314.5 | 1,339.2 | |
Other | 179.6 | 48.8 | 41.6 | 90 | 50.9 | 98.6 | 79 | 87.9 | 360 | 316.4 | 236.1 | |
Total revenues | 3,307 | 3,077.8 | 3,078.4 | 2,810.7 | 2,872 | 2,955.8 | 2,894.2 | 2,726.8 | 12,273.9 | 11,448.8 | 10,763.8 | |
Gross Profit | [1] | 2,797.8 | 2,707.8 | 2,712.2 | 2,426.1 | 2,493.5 | 2,538.9 | 2,523.9 | 2,413.8 | 10,643.9 | 9,970.1 | |
Net income | (166.3) | 1,226.1 | 862.8 | 747.5 | 647.9 | 1,030.2 | 1,048.4 | 969.2 | 2,670.1 | 3,695.7 | 3,593.2 | |
Net income attributable to Biogen Idec Inc | $ (297.4) | $ 1,226.1 | $ 862.8 | $ 747.6 | $ 649.2 | $ 1,032.9 | $ 1,049.8 | $ 970.9 | $ 2,539.1 | $ 3,702.8 | $ 3,547 | |
Basic earnings per share attributable to Biogen Inc. | $ (1.41) | $ 5.80 | $ 4.07 | $ 3.47 | $ 3 | $ 4.72 | $ 4.79 | $ 4.44 | $ 11.94 | $ 16.96 | $ 15.38 | |
Diluted earnings per share attributable to Biogen Inc. | $ (1.40) | $ 5.79 | $ 4.07 | $ 3.46 | $ 2.99 | $ 4.71 | $ 4.79 | $ 4.43 | $ 11.92 | $ 16.93 | $ 15.34 | |
Basic earnings per share attributable to Biogen Inc. | 211.5 | 211.4 | 211.9 | 215.6 | 216.6 | 218.9 | 219.1 | 218.9 | 212.6 | 218.4 | 230.7 | |
Diluted earnings per share attributable to Biogen Inc. | 212 | 211.8 | 212.2 | 215.9 | 217 | 219.4 | 219.4 | 219.3 | 213 | 218.8 | 231.2 | |
[1] | (1) Gross profit is calculated as total revenues less cost of sales, excluding amortization of acquired intangible assets. |
Quarterly Financial Data (Un123
Quarterly Financial Data (Unaudited) (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2013 | Mar. 31, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Amortization of Intangible Assets | $ 814.7 | $ 385.6 | $ 382.6 | |||||||||||
Research and development | 2,253.6 | 1,973.3 | 2,012.8 | |||||||||||
Acquired in-process research and development | 120 | 0 | 0 | |||||||||||
Net income (loss) attributable to noncontrolling interests, net of tax | 131 | (7.1) | 46.2 | |||||||||||
Income tax benefit (expense) | 2,458.7 | 1,237.3 | 1,161.6 | |||||||||||
TECFIDERA litigation settlement charge | $ 454.8 | 0 | 454.8 | 0 | ||||||||||
Bristol-Myers Squibb [Member] | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Research and development | $ 300 | |||||||||||||
iPerian | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Developmental Milestone Payment | 60 | |||||||||||||
Alkermes | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Research and development | $ 50 | 80.3 | ||||||||||||
Upfront And Milestone Payments Made To Collaborative Partner | 28 | 28 | ||||||||||||
Ionis Pharmaceuticals, Inc. | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Research and development | $ 75 | 12 | 10 | |||||||||||
Upfront And Milestone Payments Made To Collaborative Partner | 25 | $ 100 | 25 | $ 30 | ||||||||||
License Fee | 70 | |||||||||||||
Eisai | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Research and development | 263.4 | 50 | ||||||||||||
Neurimmune | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Net income (loss) attributable to noncontrolling interests, net of tax | 150 | |||||||||||||
Reduction in royalty rate payable on commercial sales | 15.00% | |||||||||||||
Cambridge, MA | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Accelerated depreciation | $ 14 | $ 15.7 | $ 15.8 | 45.5 | ||||||||||
TECFIDERA | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Amortization of Intangible Assets | $ 30.8 | $ 30.4 | 29.4 | $ 353.6 | $ 444.2 | |||||||||
SPINRAZA | Ionis Pharmaceuticals, Inc. | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Research and development | $ 29 | $ 35.3 | $ 42.8 | |||||||||||
License Fee | $ 75 | |||||||||||||
Remedy Pharmaceutical [Member] | ||||||||||||||
Schedule Of Development Milestone And Collaboration [Line Items] | ||||||||||||||
Acquired in-process research and development | $ 120 |
Subsequent Events Subsequent124
Subsequent Events Subsequent events (Details) - Karyopharm - Subsequent Event $ in Millions | Jan. 31, 2018USD ($) |
Subsequent Event [Line Items] | |
Upfront And Milestone Payments Made To Collaborative Partner | $ 10 |
Estimated Additional Payments Upon Achievement Of Development And Commercial Milestones | $ 207 |