United states securities and exchange commission

Table of Contents
79
jurisdictions and may now be deployed with greater 
flexibility to advance our business interests. 
For additional information on certain risks that 
could negatively impact our consolidated financial 
position or future results of operations, please read 
Item 1A. Risk Factors and Item 7A. Quantitative and 
Qualitative Disclosures About Market Risk included in 
this report.
Share Repurchase Programs
In July 2016 our Board of Directors authorized 
our 2016 Share Repurchase Program to repurchase 
up to $5.0 billion of our common stock. 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 our 
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 
our 2015 Share Repurchase Program to repurchase 
up to $5.0 billion of our common stock. All share 
repurchases under this authorization were retired. Our 
2015 Share Repurchase Program was completed as 
of December 31, 2015. Under this authorization, we 
repurchased and retired 16.8 million shares of our 
common stock at a cost of $5.0 billion during the year 
ended December 31, 2015.
In February 2011 our Board of Directors 
authorized our 2011 Share Repurchase Program to 
repurchase up to 20.0 million shares of our common 
stock. Shares repurchased under this authorization 
have been principally used to offset common stock 
issuances under our share-based compensation 
plans. Our 2011 Share Repurchase Program was 
completed as of March 31, 2017. Under this 
authorization, we repurchased 1.2 million shares of 
our common stock at a cost of $365.4 million during 
the year ended December 31, 2017. We did not 
repurchase any shares of our common stock under 
this authorization during the years ended 
December 31, 2016 and 2015. 
Cash, Cash Equivalents and Marketable Securities
Until required for another use in our business, 
we typically invest our cash reserves in bank deposits, 
certificates of deposit, commercial paper, corporate 
notes, U.S. and foreign government instruments and 
other interest bearing marketable debt instruments in 
accordance with our investment policy. It is our policy 
to mitigate credit risk in our cash reserves and 
marketable securities by maintaining a well-diversified 
portfolio that limits the amount of exposure as to 
institution, maturity and investment type. 
The net decrease in cash, cash equivalents and 
marketable securities at December 31, 2017, from 
December 31, 2016, was primarily due to the 
payment made to Forward Pharma in connection with 
our January 2017 settlement and license agreement, 
the payment made for the redemption of our 6.875% 
Senior Notes due March 1, 2018 prior to their 
maturity in November 2017, cash used for share 
repurchases, the net cash contribution made in 
connection with the spin-off of our hemophilia 
business in February 2017, net purchases of property, 
plant and equipment, upfront and milestone payments 
made to Remedy, Ionis and Samsung Bioepis and the 
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. 
Borrowings
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.
These senior unsecured notes were issued at a 
discount and are amortized as additional interest 
expense over the period from issuance through 
maturity.
In November 2017 we redeemed our 6.875% 
Senior Notes due March 1, 2018, with an aggregate 
principal amount of $550.0 million. For additional 
information on this redemption please read Note 12, 
Indebtedness, to our consolidated financial 
statements included in this report.

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During the third quarter of 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.
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.
For a summary of the fair values of our 
outstanding borrowings as of December 31, 2017 and 
2016, please read Note 8, Fair Value Measurements, 
to our consolidated financial statements included in 
this report.
Working Capital
We define working capital as current assets less 
current liabilities. The change in working capital at 
December 31, 2017, from December 31, 2016, 
reflects a decrease in total current assets of $858.9 
million, partially offset by a decrease in current 
liabilities of $51.7 million. 
The decrease in total current assets was driven 
by a decrease in net cash, cash equivalents and 
marketable securities, as described above, partially 
offset by an increase in accounts receivable due to an 
increase in revenues and the timing of customer 
payments, including amounts due in connection with 
anti-CD20 therapeutic programs.
The decrease in total current liabilities primarily 
resulted from a reduction in taxes payable and 
accrued expenses primarily due to the payment of the 
$454.8 million charge that was accrued as of 
December 31, 2016, in relation to our settlement and 
license agreement with Forward Pharma, offset by an 
increase in the accrual of contingent payments 
related to FUMADERM and TECFIDERA (together, the 
Fumapharm Products) upon reaching $15.0 billion 
and $16.0 billion in total cumulative sales of 
Fumapharm Products in the fourth quarter of 2017.
Cash Flows
The following table summarizes our cash flow activity:
 
For the Years Ended
December 31,
% Change
 
2017 
compared to 
2016
2016 
compared to 
2015
(In millions, except percentages)
2017
2016
2015
Net cash flows provided by operating
activities
$
4,551.0
$
4,587.2 $
3,919.4
(0.8)%
17.0 %
Net cash flows used in by investing
activities
$
(2,963.1)
$
(2,484.8) $
(4,553.6)
19.2 %
(45.4)%
Net cash flows (used in) provided by
financing activities
$
(2,380.0)
$
(1,052.6) $
783.1
126.1 %
(234.4)%
Operating Activities
Cash flows from operating activities represent 
the cash receipts and disbursements related to all of 
our activities other than investing and financing 
activities. We expect cash provided from operating 
activities will continue to be our primary source of 
funds to finance operating needs and capital 
expenditures for the foreseeable future.
Operating cash flow is derived by adjusting our 
net income for:
•  Non-cash operating items such as depreciation 
and amortization, impairment charges, acquired 
in-process research and development and share-
based compensation;
•  Changes in operating assets and liabilities which 
reflect timing differences between the receipt 
and payment of cash associated with 
transactions and when they are recognized in 
results of operations; and
•  Changes associated with the fair value of 
contingent payments associated with our 
acquisitions of businesses and payments related 
to collaborations.
For 2017 compared to 2016, net cash flows 
provided by operations were relatively consistent. 
Higher sales and lower income tax payments were 
offset by the $454.8 million payment related to our 
settlement and license agreement with Forward 
Pharma, which had been accrued as of December 31, 
2016, and the timing of customer payments, including 

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