United states securities and exchange commission

Table of Contents
BIOGEN INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F- 26
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
5.    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

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Table of Contents
BIOGEN INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F- 27
(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
6.      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.

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