United states securities and exchange commission

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76
The 2017 Tax Act will provide us with flexibility in 
deploying our cash resources to advance our 
business interests. We expect that it will have a 
modest positive effect on our income tax rate in 2018 
and a potential incremental benefit thereafter.
Article 20 Procedure of ZINBRYTA
As a result of the CHMP's recommendation of 
restrictions on the use of ZINBRYTA, we impaired 
prepaid tax balances totaling $142.6 million. 
Offsetting these amounts was an unrecorded tax 
benefit related to certain ZINBRYTA related assets 
totaling approximately $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 our consolidated financial 
statements included in this report.
Excluding the effect of the 2017 Tax Act and the 
ZINBRTYA impairments, 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 of $27.0 million resulting from the 
remeasurement of one of our uncertain tax positions 
and a higher relative percentage of our earnings being 
attributed to the U.S., a higher tax jurisdiction.
Accounting for Uncertainty in Income Taxes
For additional information on our uncertain tax 
positions and income tax rate reconciliation for 2017, 
2016 and 2015, please read Note 17, Income Taxes, 
to our consolidated financial statements included in 
this report.
Equity in Loss of Investee, Net of Tax
In February 2012 we entered into an agreement 
with Samsung Biologics, establishing an entity, 
Samsung Bioepis, to develop, manufacture and 
market biosimilar pharmaceuticals. We account for 
this investment under the equity method of 
accounting. We recognize our share of the results of 
operations related to our investment in Samsung 
Bioepis one quarter in arrears. 
During 2015 our share of losses exceeded the 
carrying value of our investment. We therefore 
suspended recognizing additional losses and will 
continue to do so unless we commit to providing 
additional funding. 
For additional information on this transaction, 
please read Note 20, Collaborative and Other 
Relationships, to our consolidated financial 
statements included in this report.

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Noncontrolling Interest
For 2017 compared to 2016, the change in net 
income (loss) attributable to noncontrolling interests, 
net of tax, was primarily related to a $150.0 million 
pre-tax upfront payment made 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. 
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.
For 2016 compared to 2015, the change in net 
income (loss) attributable to noncontrolling interests, 
net of tax, was primarily related to a $60.0 million pre-
tax milestone payment made to Neurimmune in 2015.
For additional information on our collaboration 
arrangement with Neurimmune, please read Note 19, 
Investments in Variable Interest Entities, to our 
consolidated financial statements included in this 
report.
Financial Condition, Liquidity and Capital Resources
Our financial condition is summarized as follows:
 
As of December 31,
% Change
(In millions, except percentages)
2017
2016
2017 
compared to 
2016
Financial assets:
Cash and cash equivalents
$
1,573.8
$
2,326.5
(32.4)%
Marketable securities — current
2,115.2
2,568.6
(17.7)%
Marketable securities — non-current
3,057.3
2,829.4
8.1 %
Total cash, cash equivalents and marketable securities
$
6,746.3
$
7,724.5
(12.7)%
Borrowings:
Current portion of notes payable and other financing
arrangements
$
3.2
$
4.7
(31.9)%
Notes payable and other financing arrangements
5,935.0
6,512.7
(8.9)%
Total borrowings
$
5,938.2
$
6,517.4
(8.9)%
Working Capital:
Current assets
$
7,873.3
$
8,732.2
(9.8)%
Current liabilities
(3,368.2)
(3,419.9)
(1.5)%
Total working capital
$
4,505.1
$
5,312.3
(15.2)%

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For the year ended December 31, 2017, certain 
significant cash flows were as follows:
•  $4.6 billion in net cash flows provided by 
operating activities, net of: 
  $1.1 billion
 in total net payments for 
income taxes;
  $463.0 million in upfront and milestone 
payments to BMS, iPierian, Eisai, Alkermes 
and Ionis; and
  $454.8 million payment made to Forward 
Pharma for the litigation settlement charge 
that was accrued as of December 31, 
2016;
•  $1.4 billion used for share repurchases;
•  $1.2 billion in contingent payments made to 
former shareholders of Fumapharm AG and 
holders of their rights;
•  $867.4 million used for purchases of property, 
plant and equipment;
• 
$795.2 million payment made to Forward 
Pharma to license Forward Pharma's intellectual 
property, including Forward Pharma's intellectual 
property related to TECFIDERA;
•  $557.7 million payment made for the 
redemption of our 6.875% Senior Notes due 
March 1, 2018 prior to their maturity;
•  $302.7 million net cash contribution made in 
connection with the spin-off of our hemophilia 
business;
•  $295.0 million in upfront and milestone 
payments made to Remedy, Ionis and Samsung 
Bioepis; and
•  $132.4 million payment, net of tax, made 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.
For the year ended December 31, 2016, certain 
significant cash flows were as follows:
•  $4.6 billion in net cash flows provided by 
operating activities, net of:
  $1.6 billion in total net payments for 
income taxes;
  $75.0 million license fee payment made 
to Ionis; and
  $20.0 million upfront payment to UPenn;
•  $1.2 billion in contingent payments made to 
former shareholders of Fumapharm AG and 
holders of their rights;
•  $1.0 billion used for share repurchases;
•  $616.1 million used for purchases of property, 
plant and equipment; and
•  $82.0 million in milestone payments made to 
Samsung Bioepis and AbbVie.
Overview
We have historically financed our operating and 
capital expenditures primarily through cash flows 
earned through our operations. We expect to continue 
funding our current and planned operating 
requirements principally through our cash flows from 
operations, as well as our existing cash resources. 
We believe that our existing funds, when combined 
with cash generated from operations and our access 
to additional financing resources, if needed, are 
sufficient to satisfy our operating, working capital, 
strategic alliance, milestone payment, capital 
expenditure and debt service requirements for the 
foreseeable future. In addition, we may choose to 
opportunistically return cash to shareholders and 
pursue other business initiatives, including acquisition 
and licensing activities. We may, from time to time, 
also seek additional funding through a combination of 
new collaborative agreements, strategic alliances and 
additional equity and debt financings or from other 
sources should we identify a significant new 
opportunity
.
Tax Reform
On December 22, 2017, the 2017 Tax Act was 
signed into law and has resulted in significant 
changes to the U.S. corporate income tax system.  
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. 
Of the total cash, cash equivalents and 
marketable securities at December 31, 2017, 
approximately $4.0 billion was generated in foreign 

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