United states securities and exchange commission

Table of Contents
F- 3
BIOGEN INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
 
For the Years Ended December 31,
 
2017
2016
2015
Net income attributable to Biogen Inc.
$
2,539.1
$
3,702.8 $
3,547.0
Other comprehensive income:
Unrealized gains (losses) on securities available for sale:
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)
(0.4)
Unrealized gains (losses) on cash flow hedges:
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
(4.0)
(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
131.0
(7.1)
46.2
Comprehensive income
$
2,671.6
$
3,599.8 $
3,428.7
See accompanying notes to these consolidated financial statements.

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Table of Contents
F- 4
BIOGEN INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except per share amounts)
 
As of December 31,
 
2017
2016
ASSETS
Current assets:
Cash and cash equivalents
$
1,573.8
$
2,326.5
Marketable securities
2,115.2
2,568.6
Accounts receivable, net
1,787.0
1,441.6
Due from anti-CD20 therapeutic programs
532.6
300.6
Inventory
902.7
1,001.6
Other current assets
962.0
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
LIABILITIES AND EQUITY
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
5,935.0
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
Equity:
Biogen Inc. shareholders’ equity
Preferred stock, par value $0.001 per share
—
—
Common stock, par value $0.0005 per share
0.1
0.1
Additional paid-in capital
97.8
—
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
See accompanying notes to these consolidated financial statements.

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Table of Contents
F- 5
BIOGEN INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
 
For the Years Ended December 31,
 
2017
2016
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
1,081.0
682.7
600.4
Acquired in-process research and development
120.0
—
—
Share-based compensation
128.0
154.8
161.4
Deferred income taxes
91.7
(175.0)
(145.6)
Contingent consideration
62.7
14.8
30.5
Other
162.1
89.0
129.9
Changes in operating assets and liabilities, net:
Accounts receivable
(435.6)
(241.4)
29.0
Due from anti-CD20 therapeutic programs
(232.0)
13.9
(31.1)
Inventory
(94.5)
(165.6)
(174.4)
Other assets
(76.6)
59.1
(127.0)
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
4,551.0
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
4,063.0
Purchases of marketable securities
(5,355.2)
(7,913.2)
(6,864.9)
Contingent consideration related to Fumapharm AG acquisition
(1,200.0)
(1,200.0)
(850.0)
Acquired in-process research and development
(120.0)
—
—
Acquisitions of businesses, net of cash acquired
—
—
(198.8)
Purchases of property, plant and equipment
(867.4)
(616.1)
(643.0)
Acquisitions of intangible assets
(975.4)
(111.6)
(15.4)
Other
(11.0)
(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)
(1,000.0)
(5,000.0)
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)
—
(56.1)
Proceeds from borrowings
—
—
5,930.5
Repayments of borrowings
(560.9)
(2.7)
(2.1)
Net cash contribution to Bioverativ, Inc.
(302.7)
—
—
Contingent consideration payments
(3.0)
(38.6)
(13.1)
Other
(8.6)
(2.8)
(5.2)
Net cash flows provided by (used in) financing activities
(2,380.0)
(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
1,308.0
1,204.9
Cash and cash equivalents, end of the year
$
1,573.8
$
2,326.5 $
1,308.0
See accompanying notes to these consolidated financial statements.

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