Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'BIOGEN IDEC INC. | ' | ' |
Entity Central Index Key | '0000875045 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 236,393,930 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $51,089,367,313 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Product, net | $5,542,331 | $4,166,074 | $3,836,117 |
Unconsolidated joint business | 1,126,017 | 1,137,923 | 996,597 |
Other | 263,851 | 212,464 | 215,920 |
Total revenues | 6,932,199 | 5,516,461 | 5,048,634 |
Cost and expenses: | ' | ' | ' |
Cost of sales, excluding amortization of acquired intangible assets | 857,726 | 545,494 | 466,780 |
Research and development | 1,444,053 | 1,334,919 | 1,219,602 |
Selling, general and administrative | 1,712,051 | 1,277,465 | 1,056,133 |
Amortization of acquired intangible assets | 342,948 | 202,204 | 208,566 |
Collaboration profit sharing | 85,357 | 317,895 | 317,771 |
(Gain) loss on fair value remeasurement of contingent consideration | -547 | 27,202 | 36,065 |
Restructuring charges | 0 | 2,225 | 19,026 |
Total cost and expenses | 4,441,588 | 3,707,404 | 3,323,943 |
Gain on sale of rights | 24,898 | 46,792 | 0 |
Income from operations | 2,515,509 | 1,855,849 | 1,724,691 |
Other income (expense), net | -34,930 | -744 | -13,477 |
Income before income tax expense and equity in loss of investee, net of tax | 2,480,579 | 1,855,105 | 1,711,214 |
Income tax expense | 601,014 | 470,554 | 444,528 |
Equity in loss of investee, net of tax | 17,224 | 4,518 | 0 |
Net income | 1,862,341 | 1,380,033 | 1,266,686 |
Net income attributable to noncontrolling interests, net of tax | 0 | 0 | 32,258 |
Net income attributable to Biogen Idec Inc. | $1,862,341 | $1,380,033 | $1,234,428 |
Net income per share: | ' | ' | ' |
Basic earnings per share attributable to Biogen Idec Inc. | $7.86 | $5.80 | $5.09 |
Diluted earnings per share attributable to Biogen Idec Inc. | $7.81 | $5.76 | $5.04 |
Weighted-average shares used in calculating: | ' | ' | ' |
Basic earnings per share attributable to Biogen Idec Inc. | 236,919 | 237,938 | 242,395 |
Diluted earnings per share attributable to Biogen Idec Inc. | 238,308 | 239,740 | 245,033 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income attributable to Biogen Idec Inc. | $1,862,341 | $1,380,033 | $1,234,428 |
Other comprehensive income: | ' | ' | ' |
Unrealized gains (losses) recognized during the period, net of tax of $6,394, $2,940 and $133 | 11,770 | 5,080 | -224 |
Less: reclassification adjustment for (gains) losses included in net income, net of tax of $5,576, $486 and $7,155 | -10,355 | -903 | -12,184 |
Unrealized gains (losses) on securities available for sale, net of tax of $818, $2,454 and $7,288 | 1,415 | 4,177 | -12,408 |
Unrealized gains (losses) recognized during the period, net of tax of $1,721, $1,396 and $3,647 | -26,679 | -11,808 | 32,830 |
Less: reclassification adjustment for (gains) losses included in net income, net of tax of $533, $3,360 and $1,268 | 13,716 | -31,713 | 9,767 |
Unrealized gains (losses) on foreign currency forward contracts, net of tax of $1,187, $4,756 and $4,915 | -12,963 | -43,521 | 42,597 |
Unrealized gains (losses) on pension benefit obligation | 2,096 | -12,656 | -9,280 |
Currency translation adjustment | 37,012 | 23,230 | -25,834 |
Total other comprehensive income (loss), net of tax | 27,560 | -28,770 | -4,925 |
Comprehensive income attributable to Biogen Idec Inc. | 1,889,901 | 1,351,263 | 1,229,503 |
Comprehensive income attributable to noncontrolling interests, net of tax | 0 | 65 | 37,161 |
Comprehensive income | $1,889,901 | $1,351,328 | $1,266,664 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Reclassification adjustment on securities available for sale | $5,576 | $486 | $7,155 |
Tax effect on net unrealized gains (losses) recognized on securities available for sale | 818 | 2,454 | 7,288 |
Reclassification adjustment on foreign currency forward contracts | 533 | 3,360 | 1,268 |
Tax effect of net unrealized gains (losses) recognized on foreign currency forward contracts | 1,187 | 4,756 | 4,915 |
Tax effect of net unrealized gains (losses) recognized on pension benefit obligation | $0 | $0 | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $602,562 | $570,721 |
Marketable securities | 620,167 | 1,134,989 |
Accounts receivable, net | 824,406 | 686,848 |
Due from unconsolidated joint business, net | 252,662 | 268,395 |
Inventory | 659,003 | 447,373 |
Other current assets | 226,134 | 136,011 |
Total current assets | 3,184,934 | 3,244,337 |
Marketable securities | 625,772 | 2,036,658 |
Property, plant and equipment, net | 1,750,710 | 1,742,226 |
Intangible assets, net | 4,474,653 | 1,631,547 |
Goodwill | 1,232,916 | 1,201,296 |
Investments and other assets | 594,350 | 274,054 |
Total assets | 11,863,335 | 10,130,118 |
Current liabilities: | ' | ' |
Current portion of notes payable and line of credit | 3,494 | 453,379 |
Taxes payable | 179,685 | 20,066 |
Accounts payable | 219,913 | 203,999 |
Accrued expenses and other | 1,355,187 | 979,945 |
Total current liabilities | 1,758,279 | 1,657,389 |
Notes payable and other financing arrangements | 592,433 | 687,396 |
Long-term deferred tax liability | 232,554 | 217,272 |
Other long-term liabilities | 659,231 | 604,266 |
Total liabilities | 3,242,497 | 3,166,323 |
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 | 128 | 127 |
Additional paid-in capital | 4,023,651 | 3,854,525 |
Accumulated other comprehensive loss | -27,745 | -55,305 |
Retained earnings | 6,349,135 | 4,486,794 |
Treasury stock, at cost; 19,641 shares and 17,655 shares, respectively | -1,724,927 | -1,324,618 |
Total Biogen Idec Inc. shareholders’ equity | 8,620,242 | 6,961,523 |
Noncontrolling interests | 596 | 2,272 |
Total equity | 8,620,838 | 6,963,795 |
Total liabilities and equity | $11,863,335 | $10,130,118 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Common stock, par value | $0.00 | $0.00 |
Treasury stock at cost, shares | 19,641 | 17,655 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $1,862,341 | $1,380,033 | $1,266,686 |
Adjustments to reconcile net income to net cash flows from operating activities: | ' | ' | ' |
Depreciation and amortization of property, plant and equipment, and intangible assets | 531,740 | 365,648 | 358,933 |
Share-based compensation | 136,293 | 118,566 | 113,005 |
Deferred income taxes | -245,077 | -116,900 | 153,576 |
Other | -27,612 | 28,822 | 20,153 |
Changes in operating assets and liabilities, net: | ' | ' | ' |
Accounts receivable | -126,753 | 3,571 | -73,374 |
Inventory | -243,960 | -140,309 | -59,219 |
Other assets | -160,188 | -27,347 | -43,241 |
Accrued expenses and other current liabilities | 284,049 | 273,372 | 33,722 |
Other liabilities and taxes payable | 318,512 | 34,112 | -36,235 |
Other | 15,733 | -39,671 | -6,265 |
Net cash flows provided by operating activities | 2,345,078 | 1,879,897 | 1,727,741 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from sales and maturities of marketable securities | 5,190,052 | 2,749,558 | 2,276,720 |
Purchases of marketable securities | -3,278,091 | -3,334,434 | -3,696,995 |
Acquisition of TYSABRI rights | -3,262,719 | 0 | 0 |
Acquisitions of businesses and variable interest entities, net of cash acquired | -15,000 | -72,401 | -5,000 |
Purchases of property, plant and equipment | -246,281 | -254,548 | -208,020 |
Other | 7,371 | -38,517 | -16,999 |
Net cash flows used in investing activities | -1,604,668 | -950,342 | -1,650,294 |
Cash flows from financing activities: | ' | ' | ' |
Purchase of treasury stock | -400,309 | -984,715 | -497,975 |
Proceeds from issuance of stock for share-based compensation arrangements | 66,770 | 67,493 | 314,650 |
Excess tax benefit from share-based compensation | 73,467 | 54,738 | 50,586 |
Acquisition of noncontrolling interests | 0 | 0 | -148,264 |
Repayments of borrowings | -452,340 | -2,428 | -11,459 |
Other | -4,116 | -12,566 | -27,400 |
Net cash flows used in financing activities | -716,528 | -877,478 | -319,862 |
Net increase (decrease) in cash and cash equivalents | 23,882 | 52,077 | -242,415 |
Effect of exchange rate changes on cash and cash equivalents | 7,959 | 4,102 | -2,641 |
Cash and cash equivalents, beginning of the year | 570,721 | 514,542 | 759,598 |
Cash and cash equivalents, end of the year | $602,562 | $570,721 | $514,542 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Total Biogen Idec Inc. shareholders' equity | Preferred stock | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock | Noncontrolling interests |
In Thousands, except Share data | |||||||||
Beginning Balance at Dec. 31, 2010 | $5,449,443 | $5,396,506 | $0 | $124 | $3,895,103 | ($21,610) | $1,872,481 | ($349,592) | $52,937 |
Beginning Balance, shares at Dec. 31, 2010 | ' | ' | 8,000 | 248,200,000 | ' | ' | ' | -7,662,000 | ' |
Net income | 1,266,686 | 1,234,428 | ' | ' | ' | ' | 1,234,428 | ' | 32,258 |
Other comprehensive income, net of tax | -22 | -4,925 | ' | ' | ' | -4,925 | ' | ' | 4,903 |
Distributions to noncontrolling interests | -27,062 | -148 | ' | ' | ' | ' | -148 | ' | -26,914 |
Repurchase of common stock for Treasury pursuant to the 2011 share repurchase plan, at cost | -497,975 | -497,975 | ' | ' | ' | ' | ' | -497,975 | ' |
Repurchase of common stock for Treasury pursuant to the 2011 stock repurchase plan, at cost, shares | ' | ' | ' | ' | ' | ' | ' | -6,018,000 | ' |
Issuance of common stock under stock option and stock purchase plans | 314,649 | 314,649 | ' | 3 | 306,982 | ' | ' | 7,664 | ' |
Issuance of common stock under stock option and stock purchase plans, shares | ' | ' | ' | 5,458,000 | ' | ' | ' | 162,000 | ' |
Issuance of common stock under stock award plan | -50,953 | -50,953 | ' | 1 | -50,954 | ' | ' | ' | ' |
Issuance of common stock under stock award plan, shares | ' | ' | ' | 1,482,000 | ' | ' | ' | ' | ' |
Compensation expense related to share-based payments | 117,347 | 117,347 | ' | ' | 117,347 | ' | ' | ' | ' |
Tax benefit from share-based payments | 50,383 | 50,383 | ' | ' | 50,383 | ' | ' | ' | ' |
Acquisitions of noncontrolling interests | 187,337 | 125,641 | ' | ' | 125,641 | ' | ' | ' | 61,696 |
Conversion of preferred stock | 0 | 0 | ' | 0 | 0 | ' | ' | ' | ' |
Conversion of preferred stock, shares | ' | ' | -8,000 | 493,000 | ' | ' | ' | ' | ' |
Recharacterization of share-based awards from equity to cash-settled due to restructuring | 8,172 | 8,172 | ' | ' | 8,172 | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2011 | 6,426,987 | 6,425,499 | 0 | 128 | 4,185,048 | -26,535 | 3,106,761 | -839,903 | 1,488 |
Ending Balance, shares at Dec. 31, 2011 | ' | ' | 0 | 255,633,000 | ' | ' | ' | -13,518,000 | ' |
Net income | 1,380,033 | 1,380,033 | ' | ' | ' | ' | 1,380,033 | ' | 0 |
Other comprehensive income, net of tax | -28,705 | -28,770 | ' | ' | ' | -28,770 | ' | ' | 65 |
Distributions to noncontrolling interests | 1,199 | 0 | ' | ' | ' | ' | ' | ' | 1,199 |
Capital contribution from noncontrolling interests | 73 | 0 | ' | ' | ' | ' | ' | ' | 73 |
Deconsolidation of noncontrolling interests | -556 | -3 | ' | ' | -3 | ' | ' | ' | -553 |
Repurchase of common stock for Treasury pursuant to the 2011 share repurchase plan, at cost | -984,715 | -984,715 | ' | ' | ' | ' | ' | -984,715 | ' |
Repurchase of common stock for Treasury pursuant to the 2011 stock repurchase plan, at cost, shares | -7,800,000 | ' | ' | ' | ' | ' | ' | -7,811,000 | ' |
Retirement Of Common Stock | 0 | 0 | ' | 2 | 499,998 | ' | ' | -500,000 | ' |
Retirement Of Common Stock Shares | ' | ' | ' | 3,674,000 | ' | ' | ' | -3,674,000 | ' |
Issuance of common stock under stock option and stock purchase plans | 67,493 | 67,493 | ' | 0 | 67,493 | ' | ' | ' | ' |
Issuance of common stock under stock option and stock purchase plans, shares | ' | ' | ' | 1,039,000 | ' | ' | ' | ' | ' |
Issuance of common stock under stock award plan | -71,357 | -71,357 | ' | 1 | -71,358 | ' | ' | ' | ' |
Issuance of common stock under stock award plan, shares | ' | ' | ' | 1,239,000 | ' | ' | ' | ' | ' |
Compensation expense related to share-based payments | 123,956 | 123,956 | ' | ' | 123,956 | ' | ' | ' | ' |
Tax benefit from share-based payments | 49,387 | 49,387 | ' | ' | 49,387 | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | 6,963,795 | 6,961,523 | 0 | 127 | 3,854,525 | -55,305 | 4,486,794 | -1,324,618 | 2,272 |
Ending Balance, shares at Dec. 31, 2012 | ' | ' | 0 | 254,237,000 | ' | ' | ' | -17,655,000 | ' |
Net income | 1,862,341 | 1,862,341 | ' | ' | ' | ' | 1,862,341 | ' | 0 |
Other comprehensive income, net of tax | 27,560 | 27,560 | ' | ' | ' | 27,560 | ' | ' | 0 |
Deconsolidation of noncontrolling interests | -1,676 | 0 | ' | ' | ' | ' | ' | ' | -1,676 |
Repurchase of common stock for Treasury pursuant to the 2011 share repurchase plan, at cost | -400,309 | -400,309 | ' | ' | ' | ' | ' | -400,309 | ' |
Repurchase of common stock for Treasury pursuant to the 2011 stock repurchase plan, at cost, shares | -2,000,000 | ' | ' | ' | ' | ' | ' | -1,986,000 | ' |
Issuance of common stock under stock option and stock purchase plans | 66,770 | 66,770 | ' | 0 | 66,770 | ' | ' | ' | ' |
Issuance of common stock under stock option and stock purchase plans, shares | ' | ' | ' | 767,000 | ' | ' | ' | ' | ' |
Issuance of common stock under stock award plan | -89,746 | -89,746 | ' | 1 | -89,747 | ' | ' | ' | ' |
Issuance of common stock under stock award plan, shares | 523,000 | ' | ' | 969,000 | ' | ' | ' | ' | ' |
Compensation expense related to share-based payments | 146,210 | 146,210 | ' | ' | 146,210 | ' | ' | ' | ' |
Tax benefit from share-based payments | 45,893 | 45,893 | ' | ' | 45,893 | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | $8,620,838 | $8,620,242 | $0 | $128 | $4,023,651 | ($27,745) | $6,349,135 | ($1,724,927) | $596 |
Ending Balance, shares at Dec. 31, 2013 | ' | ' | 0 | 255,973,000 | ' | ' | ' | -19,641,000 | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
Summary of Significant Accounting Policies | ||
Business Overview | ||
Biogen Idec is a global biotechnology company focused on discovering, developing, manufacturing and marketing therapies for the treatment of multiple sclerosis (MS) and other autoimmune disorders, neurodegenerative diseases and hemophilia. We also collaborate on the development and commercialization of RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia and other conditions and share profits and losses for GAZYVA for the treatment of chronic lymphocytic leukemia. | ||
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 and therefore required to consolidate, 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 our partner(s) to collaborations and other arrangements. | ||
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 and judgments and methodologies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. | ||
Revenue Recognition | ||
We recognize revenue 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. Sales of TYSABRI in the U.S. were previously recognized on the “sell-through” model, upon shipment of the product by Elan to its third party distributor rather than upon shipment to Elan. As a result of our acquisition of TYSABRI rights from Elan on April 2, 2013, we began recognizing sales of TYSABRI in the U.S. when title and risk of loss passed to the same third party distributor. Product revenues are recorded net of applicable reserves for discounts and allowances. | ||
Reserves for Discounts and Allowances | ||
We establish reserves for trade term discounts, wholesaler incentives, Medicaid rebates, Veterans Administration (VA) and Public Health Service (PHS) discounts, managed care rebates, product returns and other governmental rebates or applicable allowances, including those associated with the implementation of pricing actions in certain of the international markets in which we operate. Reserves established for these discounts and allowances are classified as reductions of accounts receivable (if the amount is payable to our direct customer) or a liability (if the amount is payable to a party other than our customer). These reserves are based on estimates of the amounts earned or to be claimed on the related sales. Our estimates take into consideration our historical experience, current contractual and statutory requirements, specific known market events and trends, industry date 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 experience, including the timing of customer payments. | ||
Contractual adjustments primarily relate to Medicaid and managed care rebates, VA and PHS discounts 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 consists 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 that are primarily based on attaining contractually specified sales volumes and growth 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. | |
• | Other governmental rebates or applicable allowances primarily relate to mandatory rebates and discounts in 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. To the extent we can demonstrate a separable benefit and fair value for these services, we classify these payments within selling, general and administrative expenses. | ||
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 within our consolidated statement of income. | ||
We also distribute no-charge product to qualifying patients under our patient assistance and patient replacement goods program. This program is administered through one of our distribution partners, which ships product for qualifying patients from its own inventory received from us. Gross revenue and the related reserves are not recorded on product shipped under this program and cost of sales is recorded when the product is shipped. | ||
Revenues from Unconsolidated Joint Business | ||
We collaborate with Genentech on the development and commercialization of RITUXAN. In addition, in the U.S. we share operating profits and losses relating to GAZYVA with Genentech. The Roche Group and its sub-licensees maintain sole responsibility for the development, manufacturing and commercialization of GAZYVA in the U.S. For additional information related to our collaboration with Genentech, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Revenues from unconsolidated joint business consists of (1) our share of pre-tax profits in the U.S. for RITUXAN and GAZYVA; (2) reimbursement of our selling and development expenses in the U.S. for RITUXAN; and (3) revenue on sales in the rest of world for RITUXAN, which consist of our share of pre-tax co-promotion profits in Canada and royalty revenue on sales outside the U.S. and Canada by F. Hoffmann-La Roche Ltd. (Roche) and its sublicensees. Pre-tax co-promotion profits on RITUXAN are calculated and paid to us by Genentech in the U.S. and by Roche in Canada. Pre-tax co-promotion profits consist of U.S. and Canadian net sales to third-party customers less the cost to manufacture, third-party royalty expenses, distribution, selling, and marketing expenses, and joint development expenses incurred by Genentech, Roche and us. We record our share of the pretax co-promotion profits on RITUXAN in Canada and royalty revenues on sales outside the U.S. on a cash basis as we do not have access to the information or ability to estimate these profits or royalty revenue in the period incurred. Additionally, our share of the pre-tax profits on RITUXAN and GAZYVA in the U.S. includes estimates made by Genentech and those estimates are subject to change. Actual results may ultimately differ from our estimates. | ||
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. 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. If we are unable to reasonably estimate royalty revenue or do not have access to the information, then we record royalty revenues on a cash basis. | ||
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 allocate revenue to the various elements based on their selling price. 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. Revenue allocated to an individual element is recognized when all other revenue recognition criteria are met for that element. | ||
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, 2013 and 2012, respectively. | ||
We also maintain venture capital investments classified as Level 3 whose fair value is initially measured at transaction prices and subsequently valued using the pricing of recent financing or by reviewing the underlying economic fundamentals and liquidation value of the companies. These investments include investments in certain biotechnology oriented venture capital funds which primarily invest in small privately-owned, venture-backed biotechnology companies. The fair value of our investments in these venture capital funds has been estimated using the net asset value of the fund. Gains and losses (realized and unrealized) included in earnings for the period are reported in other income (expense), net. The investments cannot be redeemed within the funds. Distributions from each fund will be received as the underlying investments of the fund are liquidated. We expect to liquidate a portion of these funds over the next three to five years. We apply judgments and estimates when we validate the prices provided by third parties. While we believe the valuation methodologies are appropriate, the use of valuation methodologies is highly judgmental and changes in methodologies can have a material impact on our results of operations. | ||
Other | ||
The carrying amounts reflected in the consolidated balance sheets for cash equivalents, current accounts receivable, due from unconsolidated joint business, 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, 2013 and 2012, 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 credit worthiness of our large 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. | ||
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 within our consolidated statement 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 limited 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 United States and Europe and have standard payment terms which generally require payment within 30 to 90 days. We monitor the financial performance and credit worthiness of our large 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. For additional information related to this concentration of credit risk, please read Note 4, Accounts Receivable to these consolidated financial statements. | ||
As of December 31, 2013, two wholesale distributors individually accounted for approximately 34.5% and 15.7% of consolidated receivables, respectively, and as of December 31, 2012, one wholesale distributor accounted for approximately 14.5% of consolidated receivables. The increase in our concentration of consolidated receivables balances during 2013 was due in part to our acquisition of TYSABRI rights from Elan, and our resulting assumption of the relationship with the one global distributor of that product. | ||
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 within our consolidated balance sheet. 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 within our consolidated balance sheet. | ||
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 within 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 within 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 collaboration or other business relationship. Under the equity method of accounting, we will record within our results of operations our share of income or loss of the other company. | ||
Inventory | ||
Inventories are stated at the lower of cost or market with cost determined in a manner that approximates the first-in, first-out (FIFO) method. Inventory that can be used in either the production of clinical or commercial products is expensed as research and development costs when selected 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 which 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, excluding amortization of acquired intangible assets. | ||
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 on our consolidated balance sheet and include any resulting gain or loss in our consolidated statement 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 within 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 within our consolidated statements of income. | ||
Acquired and in-licensed rights and patents primarily relates to our acquisition of TYSABRI rights 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 TYSABRI and AVONEX using the economic consumption method based on revenue generated from the products underlying the related intangible assets. An analysis of the anticipated lifetime revenues of 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 TYSABRI or AVONEX. This analysis serves as the basis for the calculation of our economic consumption models used for these products. This analysis is based upon certain assumptions that we evaluate on a periodic basis, such as the anticipated product sales of AVONEX and TYSABRI, the expected impact of competitor products and our own commercial and pipeline product candidates, including TECFIDERA and PLEGRIDY, and the issuance of new patents or the extension of existing patents. | ||
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 revenue from the projects, and discounting the net cash flows to present value. The revenue 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 an asset or group of assets that do not meet the definition of a business under applicable accounting standards, 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. | ||
We review amounts capitalized as acquired IPR&D for impairment at least annually, as of October 31, and whenever events or changes in circumstances indicate that the carrying value of the assets might not be recoverable. | ||
When performing our impairment assessment, we have the option to first assess qualitative factors to determine whether it is necessary to recalculate the fair value of our acquired IPR&D. If we elect this option and believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of our acquired IPR&D is less than its carrying amount, 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. Alternatively, we may elect to not first assess qualitative factors and immediately recalculate the fair value of our acquired IPR&D. | ||
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 have the option to first assess qualitative factors to determine whether it is necessary to perform the two-step impairment test. If we elect this option and believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of our reporting unit is less than its carrying amount, the quantitative two-step impairment test is required; otherwise, no further testing is required. Alternatively, we may elect to not first assess qualitative factors and immediately perform the quantitative two-step impairment test. In the first step, 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, then the second step of the impairment test is performed in order to determine the implied fair value of our reporting unit’s goodwill. If the carrying value of our reporting unit’s goodwill exceeds its implied fair value, then 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 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. 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 these contingent consideration obligations each reporting period. Changes in the fair value of our contingent consideration obligations are recognized within 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 determining 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 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 differs 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 net 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 within 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 which have included stock options, restricted stock units which vest based on stock performance known as market stock units (MSUs), performance-vested restricted stock units which settle in cash (CSPSs), performance-vested restricted stock units which settle in shares (PVRSUs), time-vested restricted stock units (RSUs) 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 on which the employee is 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. Compensation expense for MSUs is recognized over the applicable service period. | ||
The fair values of our RSUs are based on the market value of our stock on the date of grant. Compensation expense for RSUs is recognized over the applicable vesting period. | ||
We apply an accelerated attribution method to recognize stock based compensation expense, 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 will not be adjusted to reflect the actual units earned. | ||
We apply an accelerated attribution method to recognize stock based compensation expense when accounting for our CSPSs and the fair value of the liability is remeasured at the end of each reporting period through expected cash settlement. Compensation expense associated with CSPSs is 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. | ||
We apply an accelerated attribution method to recognize stock based compensation expense when accounting for our PVRSUs. The number of units reflected as granted represents the target number of shares that are eligible to vest in full or in part and are earned subject to the attainment of certain performance criteria established at the beginning of the performance period. Compensation expense associated with these units is initially based upon the number of shares expected to vest 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 quarterly to reflect subsequent changes in the estimated outcome of performance-related conditions until the date results are determined. | ||
The purchase price of common stock under our ESPP is equal to 85% of the lower of (i) the market value per share of the common stock on the participant’s entry date into an offering period or (ii) the 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, including compensation and benefits, facilities expenses, overhead expenses, clinical trial and related clinical manufacturing expenses, write-offs of pre-approved inventory that was previously capitalized that are determined to be no longer realizable, fees paid to clinical research organizations (CROs) 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 on 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 within 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 unconsolidated joint business revenues. | ||
For collaborations with commercialized products, if we are the principal, we record revenue and the corresponding operating costs in their respective line items within 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 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, 2013, 2012 and 2011, advertising costs totaled $72.7 million, $54.3 million and $45.3 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 the consolidated statement 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 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 revise our estimates. These revisions in the estimates of the potential liabilities could have a material impact on our consolidated results of operations and financial position. | ||
Restructuring Charges | ||
We have made estimates and judgments regarding the amount and timing of our restructuring expense and liability, including current and future period termination benefits, lease termination costs, and other exit costs to be incurred when related actions take place. We have also assessed the recoverability of certain long-lived assets employed in the business and, in certain instances shortened the expected useful life of the assets based on changes in their expected use. When we determine that the useful lives of assets are shorter than we had originally estimated, we record additional depreciation to reflect the assets’ new shorter useful lives. Severance and other related costs and asset-related charges are reflected within our consolidated statement of income as a component of total restructuring charges incurred. Actual results may differ from these estimates. | ||
Earnings per Share | ||
Basic earnings per share is computed using the two-class method. Under the two-class method, undistributed net income is allocated to common stock and participating securities based on their respective rights to share in dividends. We have determined that our preferred shares meet the definition of participating securities and, to the extent any are outstanding during a period, have allocated a portion of net income to our preferred shares on a pro rata basis. Net income allocated to preferred shares is excluded from the calculation of basic earnings per share. | ||
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 are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. | ||
ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scoping of Disclosures about Offsetting Assets and Liabilities (ASU 2013-01) clarifies the scope of ASU No. 2011-11 to apply to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. This ASU was effective for fiscal years beginning on or after January 1, 2013 and interim periods within those annual periods. We adopted this standard in the first quarter of 2013 and presented this information in Note 10, Derivative Instruments to these consolidated financial statements. The adoption of this standard did not have an impact on our financial position or results of operations. | ||
ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02) requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This ASU was effective for reporting periods beginning after December 15, 2012. We adopted this standard in the first quarter of 2013 and presented this information in Note 14, Accumulated Other Comprehensive Income (Loss) to these consolidated financial statements. The adoption of this standard did not have an impact on our financial position or results of operations. |
Acquisitions
Acquisitions | 12 Months Ended | |
Dec. 31, 2013 | ||
Business Combinations [Abstract] | ' | |
Acquisitions | ' | |
Acquisitions | ||
TYSABRI | ||
On April 2, 2013, we acquired full ownership of, and strategic, commercial and decision-making rights to, TYSABRI from Elan. Upon the closing of the transaction, we made an upfront payment of $3.25 billion to Elan, which was funded from our existing cash, and our collaboration agreement with Elan was terminated. | ||
We are accounting for this transaction as the acquisition of an asset as we did not acquire any employees from Elan nor did we acquire any significant processes that we did not previously perform or manage under the collaboration agreement. Under the collaboration agreement, we manufactured TYSABRI and collaborated with Elan on the product's marketing, commercial, regulatory, distribution and ongoing development activities. The collaboration agreement was designed to effect an equal sharing of worldwide profits and losses generated by the activities of the collaboration. For additional information related to this collaboration, please read Note 20, Collaborative and Other Relationships to these consolidated financial statements. | ||
The $3.25 billion upfront payment was capitalized in the second quarter of 2013 as an intangible asset within our consolidated balance sheet as TYSABRI has reached technological feasibility. We adjusted the value of this intangible asset by $84.4 million related to deferred revenue from two sales-based milestones previously paid by Elan as well as transaction costs. The net intangible asset capitalized was $3,178.3 million. Commencing in the second quarter of 2013, we began amortizing this intangible asset over the estimated useful life using an economic consumption method based on actual and expected revenue generated from the sales of our TYSABRI product, which is currently 17 years. | ||
Following the April 2, 2013 closing of the transaction, we began recording 100% of U.S. revenues, cost of sales and operating expenses related to TYSABRI within our consolidated statements of income. Under the terms of the acquisition agreement, we continued to share TYSABRI profits with Elan on an equal basis until April 30, 2013. We recorded the profit split for the month ended April 30, 2013, as cost of sales within our consolidated statements of income as we controlled TYSABRI effective April 2, 2013. Commencing May 1, 2013 and for the first twelve months thereafter, we will make contingent payments to Elan of 12% on worldwide net sales of TYSABRI and, thereafter, 18% on annual worldwide net sales up to $2.0 billion and 25% on annual worldwide net sales that exceed $2.0 billion. In 2014, the $2.0 billion threshold will be pro-rated for the portion of 2014 remaining after the first 12 months expires. Royalty payments to Elan and other third parties are recognized as cost of sales within our consolidated statements of income. | ||
Stromedix, Inc. | ||
In March 2012, we completed our acquisition of all the outstanding stock of Stromedix, Inc. (Stromedix), a privately held company located in Cambridge, Massachusetts. Stromedix was a business involved in the discovery of antibodies designed to treat fibrosis disorders. Stromedix’ lead candidate, STX-100, was in Phase 2a of development in patients with idiopathic pulmonary fibrosis (IPF). The purchase price included a $75.0 million cash payment and up to a maximum of $487.5 million in contingent consideration in the form of development and approval milestones, of which $275.0 million related directly to the development and approval of STX-100 for the treatment of IPF. The acquisition was funded from our existing cash on hand and has been accounted for as the acquisition of a business. In addition to acquiring the outstanding stock of the entity and obtaining the rights to STX-100, we obtained the services of key employees and the rights to a second antibody and an antibody conjugate, which are both in preclinical development. | ||
Upon acquisition, we recorded a contingent consideration obligation of $122.2 million representing the fair value of the contingent consideration. This amount was estimated through a valuation model that incorporated industry based probability adjusted assumptions relating to the achievement of these milestones and the likelihood of us making payments. Subsequent changes in the fair value of this obligation are recognized as adjustments to contingent consideration and reflected within our consolidated statements of income. We allocated $219.2 million and $48.2 million of the total purchase price to acquired IPR&D and goodwill, respectively. The amount allocated to acquired IPR&D represented the fair value of the IPR&D programs acquired through a probability adjusted cash flow analysis utilizing a discount rate of 20.0%. The goodwill recognized was primarily attributable to establishing a deferred tax liability for the IPR&D intangible assets which have no tax basis and, therefore, are not tax deductible. During 2013, we adjusted the goodwill by $4.1 million to establish a deferred tax asset related to our Stromedix transaction. For additional information related to our fair value of this obligation, please read Note 8, Fair Value Measurements to these consolidated financial statements. | ||
Pro forma information is not presented as it is immaterial to our consolidated financial statements. | ||
Prior to the acquisition of Stromedix, we had an equity interest equal to approximately 5.0% of the company’s total capital stock (on an “as converted” basis) pursuant to a license agreement we entered into with Stromedix in 2007 for the development of the STX-100 product candidate. Based on the fair market value of this equity interest derived from the purchase price, we recognized a gain of approximately $9.0 million in 2012, which was recorded as a component of other income (expense), net within our consolidated statement of income. | ||
Noncontrolling Interest in Joint Ventures | ||
In September 2011, we completed the purchase of the noncontrolling interest in our joint venture investments in Biogen Dompé SRL and Biogen Dompé Switzerland GmbH, our respective sales affiliates in Italy and Switzerland, from our joint venture partners, Dompé Farmaceutici SpA and Dompé International SA, respectively. This transaction was funded from our existing cash on hand and has been accounted for as the acquisition of a noncontrolling interest. The purchase price of these shares was comprised of cash payments totaling $152.9 million plus up to $42.5 million in contingent consideration payable upon the achievement of commercial and regulatory milestones using exchange rates at the time of the transaction. As these amounts reflect payments to acquire a noncontrolling interest, these payments and the accrual of a liability related to the contingent consideration were recorded as a reduction in the noncontrolling interest for these entities with the remainder to additional paid in capital. | ||
Upon acquisition, we recorded a contingent consideration obligation of $38.8 million representing the acquisition date fair value of the contingent consideration. This amount was estimated through a valuation model that incorporates probability weighted assumptions relating to the achievement of these milestones and thus the likelihood of us making payments. Subsequent changes in the fair value of this obligation are recognized as adjustments to contingent consideration within our consolidated statements of income. For additional information related to our valuation of this obligation, please read Note 8, Fair Value Measurements to these consolidated financial statements. | ||
Biogen Idec Hemophilia Inc. | ||
In connection with our acquisition of Biogen Idec Hemophilia Inc. (BIH), formerly Syntonix Pharmaceuticals, Inc. (Syntonix), in January 2007, we agreed to pay up to an additional $80.0 million if certain milestone events associated with the development of BIH’s lead product, ALPROLIX (recombinant factor IX Fc fusion protein), a product for the treatment of hemophilia B, are achieved. The first $40.0 million contingent payment was achieved in 2010 upon initiation of patient enrollment in a registrational trial of ALPROLIX. We recorded this payment as a charge to acquired IPR&D within our consolidated statement of income in 2010, in accordance with the accounting standards applicable to business combinations when we acquired BIH. | ||
An additional $20.0 million contingent payment will occur if prior to the tenth anniversary of the closing date, the FDA grants approval of a Biologic License Application for ALPROLIX. A second $20.0 million contingent payment will occur if prior to the tenth anniversary of the closing date, a marketing authorization is granted by the EMA for ALPROLIX. If earned, these payments will be capitalized as an intangible assets when the related milestones are achieved. |
Gain_on_Sale_of_Rights
Gain on Sale of Rights | 12 Months Ended |
Dec. 31, 2013 | |
Gain on Sale of Rights [Abstract] | ' |
Gain on Sale of Rights | ' |
Gain on Sale of Rights | |
During the third quarter of 2012, we sold all of our rights, including rights to royalties, related to BENLYSTA (belimumab) to a DRI Capital managed fund (DRI). We were entitled to these rights pursuant to a license agreement with Human Genome Sciences, Inc. and GlaxoSmithKline plc (collectively the "Licensees"). Under the terms of the BENLYSTA sale agreement, we will receive payments from DRI equal to a multiple of royalties payable by the Licensees for the period covering October 2011 to September 2014 and a one-time contingency payment that could be paid to us if the cumulative royalties over the full royalty term exceed an agreed amount. DRI will retain all the royalty payments from sales of BENLYSTA after September 2014. We have accounted for this as the sale of a long-lived asset with zero cost basis as we have transferred all of our substantive rights related to this asset. | |
Under the terms of this noncancelable sale, DRI will have no recourse to us for the Licensees' performance with respect to sales of BENLYSTA, even in the event of Licensees' insolvency, nonperformance or inability to comply with terms of the license agreement. We do not have any continuing involvement with DRI or the Licensees with respect to sales of BENLYSTA, and have concluded that the sale of the rights represents the culmination of an earnings process. | |
The payments received during 2013 and 2012 totaled $24.9 million and $46.8 million, respectively. These payments were recorded as a gain on sale of rights within our consolidated statements of income. The remaining payments, which are contingent upon BENLYSTA sales over the period ending September 2014, will be recognized as the payments become due as we cannot reliably estimate the amount and timing of contingent payments. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Receivables [Abstract] | ' | |||||||||||
Accounts Receivable | ' | |||||||||||
Accounts Receivable | ||||||||||||
Our accounts receivable primarily arise from product sales in the U.S. and Europe and mainly represent amounts due from our wholesale distributors, public hospitals and other government entities. Concentrations of credit risk with respect to our accounts receivable, which are typically unsecured, are limited 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 have standard payment terms which generally require payment within 30 to 90 days. We monitor the financial performance and credit worthiness of our large 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. | ||||||||||||
The credit and economic conditions within Italy, Spain and Portugal, among other members of the European Union, continue to remain uncertain. Uncertain credit and economic conditions have generally led to a lengthening of time to collect our accounts receivable in some of these countries. In Portugal and select regions in Spain and Italy where our collections have slowed and a significant portion of these receivables are routinely being collected beyond our contractual payment terms and over periods in excess of one year, we have discounted our receivables and reduced related revenues based on the period of time that we estimate those amounts will be paid, to the extent such period exceeds one year, 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 within our consolidated statements of income. | ||||||||||||
Our net accounts receivable balances from product sales in selected European countries are summarized as follows: | ||||||||||||
As of December 31, 2013 | ||||||||||||
(In millions) | Current | Non-Current | Total | |||||||||
Balance Included | Balance Included | |||||||||||
within Accounts | within Investments | |||||||||||
Receivable, net | and Other Assets | |||||||||||
Spain | $ | 113.3 | $ | 6.8 | $ | 120.1 | ||||||
Italy | $ | 76.1 | $ | 2.4 | $ | 78.5 | ||||||
Portugal | $ | 10.4 | $ | 8.2 | $ | 18.6 | ||||||
As of December 31, 2012 | ||||||||||||
(In millions) | Current | Non-Current | Total | |||||||||
Balance Included | Balance Included | |||||||||||
within Accounts | within Investments | |||||||||||
Receivable, net | and Other Assets | |||||||||||
Spain | $ | 78.9 | $ | — | $ | 78.9 | ||||||
Italy | $ | 94.4 | $ | 10.2 | $ | 104.6 | ||||||
Portugal | $ | 16.6 | $ | 7.4 | $ | 24 | ||||||
Approximately $45.9 million and $11.8 million of the total net accounts receivable balances for these countries were overdue more than one year as of December 31, 2013 and 2012, respectively. | ||||||||||||
Pricing of TYSABRI in Italy - AIFA | ||||||||||||
In the fourth quarter of 2011, Biogen Idec SRL, our Italian subsidiary, received a notice from the Italian National Medicines Agency (Agenzia Italiana del Farmaco or AIFA) stating that sales of TYSABRI for the period from February 2009 through February 2011 exceeded by EUR30.7 million a reimbursement limit established pursuant to a Price Determination Resolution (Price Resolution) granted by AIFA in December 2006. In December 2011, based on our interpretation that the Price Resolution by its terms only applied to the first 24 months of TYSABRI sales (which began in February 2007), we filed an appeal against AIFA in administrative court seeking a ruling that the reimbursement limit does not apply and that the position of AIFA is unenforceable. That appeal is pending. | ||||||||||||
In June 2013, Biogen Idec SRL received an additional notice from AIFA, stating that sales of TYSABRI from February 2011 through February 2013 also exceeded the same reimbursement limit in the Price Resolution. We dispute that the reimbursement limit applies to this period for the same reason that we dispute its application to the February 2009 through February 2011 period. | ||||||||||||
In July 2013, we reached an agreement in principle with the Price and Reimbursement Committee of AIFA to settle all of AIFA's existing claims relating to sales of TYSABRI in excess of the reimbursement limit for the periods between February 2009 through February 2013 for an aggregate repayment of EUR33.3 million. As part of this settlement, we also agreed that the reimbursement limit in the Pricing Resolution will no longer be in effect as of February 2013. The settlement is pending approval by Italian regulatory authorities. Upon this approval and the execution of the settlement, we will dismiss our appeal. | ||||||||||||
As a result of this agreement, we recorded a liability and reduction to revenue of EUR15.4 million ($20.0 million). That adjustment approximates 50% of the claim related to the period from February 2009 through February 2011 for which we had not previously recorded any amounts. We recorded the adjustment as of June 30, 2013 as the likelihood of making a payment to settle AIFA's claims for this period was then probable and the amount could be estimated. | ||||||||||||
Since being notified in the fourth quarter of 2011 that AIFA believed a reimbursement limit was in effect, we have deferred revenue on sales of TYSABRI as if the reimbursement limit were in effect for each biannual period. As of December 31, 2013, we have deferred an aggregate amount of $129.3 million, of which $45.9 million, $62.7 million and $13.8 million were deferred for the years ended December 31, 2013, 2012 and 2011, respectively. We will continue to defer revenue until the settlement is approved. Upon approval of the settlement, any deferred revenue related to the periods subsequent to February 2011 that is in excess of the settlement will be recognized as revenue. At the time of sale, our net accounts receivable balances from product sales in Italy include the amount of deferred revenue discussed above as our customers pay the invoice price of the product. For additional information, please read Note 21, Litigation to these consolidated financial statements. |
Revenue_Reserves
Revenue Reserves | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Reserves for Discounts and Allowances [Abstract] | ' | |||||||||||||||
Reserves for Discounts and Allowances | ' | |||||||||||||||
Reserves for Discounts and Allowances | ||||||||||||||||
As a result of our acquisition of TYSABRI rights from Elan, we began recognizing reserves for discounts and allowances for U.S. TYSABRI revenue in the second quarter of 2013. Prior periods included reserves for discounts and allowances for rest of world TYSABRI revenue and worldwide AVONEX revenue. In addition, following our commercial launch of TECFIDERA in the second quarter of 2013, we began recognizing reserves for discounts and allowances related to TECFIDERA revenue. | ||||||||||||||||
An analysis of the change in reserves is summarized as follows: | ||||||||||||||||
(In millions) | Discounts | Contractual | Returns | Total | ||||||||||||
Adjustments | ||||||||||||||||
2013 | ||||||||||||||||
Beginning balance | $ | 14.3 | $ | 196 | $ | 26.8 | $ | 237.1 | ||||||||
Current provisions relating to sales in current year | 236.3 | 851.4 | 22.9 | 1,110.60 | ||||||||||||
Adjustments relating to prior years | (0.7 | ) | (16.4 | ) | 1.1 | (16.0 | ) | |||||||||
Payments/returns relating to sales in current year | (189.7 | ) | (560.4 | ) | — | (750.1 | ) | |||||||||
Payments/returns relating to sales in prior years | (13.2 | ) | (135.0 | ) | (17.1 | ) | (165.3 | ) | ||||||||
Ending balance | $ | 47 | $ | 335.6 | $ | 33.7 | $ | 416.3 | ||||||||
(In millions) | Discounts | Contractual | Returns | Total | ||||||||||||
Adjustments | ||||||||||||||||
2012 | ||||||||||||||||
Beginning balance | $ | 11.9 | $ | 120 | $ | 23.7 | $ | 155.6 | ||||||||
Current provisions relating to sales in current year | 96.5 | 534.2 | 22 | 652.7 | ||||||||||||
Adjustments relating to prior years | (0.3 | ) | (4.7 | ) | (0.1 | ) | (5.1 | ) | ||||||||
Payments/returns relating to sales in current year | (83.6 | ) | (363.2 | ) | (4.3 | ) | (451.1 | ) | ||||||||
Payments/returns relating to sales in prior years | (10.2 | ) | (90.3 | ) | (14.5 | ) | (115.0 | ) | ||||||||
Ending balance | $ | 14.3 | $ | 196 | $ | 26.8 | $ | 237.1 | ||||||||
(In millions) | Discounts | Contractual | Returns | Total | ||||||||||||
Adjustments | ||||||||||||||||
2011 | ||||||||||||||||
Beginning balance | $ | 13.9 | $ | 107 | $ | 21.1 | $ | 142 | ||||||||
Current provisions relating to sales in current year | 84.3 | 372.1 | 15.7 | 472.1 | ||||||||||||
Adjustments relating to prior years | — | (14.0 | ) | (0.9 | ) | (14.9 | ) | |||||||||
Payments/returns relating to sales in current year | (73.3 | ) | (277.0 | ) | (0.4 | ) | (350.7 | ) | ||||||||
Payments/returns relating to sales in prior years | (13.0 | ) | (68.1 | ) | (11.8 | ) | (92.9 | ) | ||||||||
Ending balance | $ | 11.9 | $ | 120 | $ | 23.7 | $ | 155.6 | ||||||||
During 2013, we reclassified prior year amounts related to our AVONEX co-pay programs from discounts to contractual adjustments. For the years ended December 31, 2012 and 2011, we reclassified $17.3 million and $11.7 million, respectively. | ||||||||||||||||
The total reserves above, included in our consolidated balance sheets, are summarized as follows: | ||||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Reduction of accounts receivable | $ | 151.4 | $ | 46.1 | ||||||||||||
Component of accrued expenses and other | 264.9 | 191 | ||||||||||||||
Total reserves | $ | 416.3 | $ | 237.1 | ||||||||||||
Inventory
Inventory | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
Inventory | ||||||||
The components of inventory are summarized as follows: | ||||||||
As of December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Raw materials | $ | 115 | $ | 101.8 | ||||
Work in process | 435.4 | 244.9 | ||||||
Finished goods | 108.6 | 100.7 | ||||||
Total inventory | $ | 659 | $ | 447.4 | ||||
In prior years AVONEX PEN units, which have been assembled but not yet packaged, were classified as finished goods. For the year ended December 31, 2013, they are classified as work in process. We reclassified $14.4 million as of December 31, 2012 to be consistent with this new presentation. | ||||||||
The components of inventory by product are summarized as follows: | ||||||||
As of December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
AVONEX | $ | 176.9 | $ | 144 | ||||
TYSABRI | 170.9 | 114.8 | ||||||
TECFIDERA | 33.6 | — | ||||||
Other | 162.6 | 86.8 | ||||||
Total finished goods and work in process | 544 | 345.6 | ||||||
Raw materials | 115 | 101.8 | ||||||
Total inventory | $ | 659 | $ | 447.4 | ||||
As of December 31, 2013 and 2012, $93.7 million and $38.3 million, respectively, of our inventory, including costs associated with our ELOCTATE, ALPROLIX and PLEGRIDY programs, have been capitalized in advance of regulatory approval and included in Other in the table above. For information on our pre-approval policy, please read Note 1, Summary of Significant Accounting Policies to these consolidated financial statements | ||||||||
Amounts written down related to excess, obsolete, unmarketable or other inventory are charged to cost of sales, and totaled $47.3 million, $24.8 million, and $25.4 million for the years ended December 31, 2013, 2012, and 2011, respectively. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
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, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||
(In millions) | Estimated Life | Cost | Accumulated | Net | Cost | Accumulated | Net | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||
Out-licensed patents | 13-23 years | $ | 578 | $ | (450.8 | ) | $ | 127.2 | $ | 578 | $ | (421.0 | ) | $ | 157 | |||||||||||
Developed technology | 15-23 years | 3,005.30 | (2,165.4 | ) | 839.9 | 3,005.30 | (1,965.7 | ) | 1,039.60 | |||||||||||||||||
In-process research and development | Indefinite until commercialization | 327.4 | — | 327.4 | 330.1 | — | 330.1 | |||||||||||||||||||
Trademarks and tradenames | Indefinite | 64 | — | 64 | 64 | — | 64 | |||||||||||||||||||
Acquired and in-licensed rights and patents | 6-17 years | 3,240.00 | (123.8 | ) | 3,116.20 | 53.7 | (12.9 | ) | 40.8 | |||||||||||||||||
Total intangible assets | $ | 7,214.70 | $ | (2,740.0 | ) | $ | 4,474.70 | $ | 4,031.10 | $ | (2,399.6 | ) | $ | 1,631.50 | ||||||||||||
Amortization of acquired intangible assets totaled $342.9 million, $202.2 million, and $208.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. The increase in amortization for the year ended December 31, 2013 was primarily driven by amortization recorded in relation to the intangible asset recorded upon our acquisition of the TYSABRI rights and an increase in the amount of amortization recorded in relation to our AVONEX intangible asset. Amortization of acquired intangible assets for the year ended December 31, 2013, includes a charge of $2.6 million related to a write down in carrying value of one of our in-process research and development assets to reflect a change in its estimated fair value. | ||||||||||||||||||||||||||
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, 2013, was $829.7 million. We amortize this intangible asset using the economic consumption method based on revenue generated from our AVONEX product. An analysis of the anticipated lifetime revenues of 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 AVONEX. This analysis serves as the basis for the calculation of our economic consumption models used for the AVONEX product. | ||||||||||||||||||||||||||
In-process Research and Development (IPR&D) | ||||||||||||||||||||||||||
In-process research and development represents the fair value assigned to research and development assets that we acquire that have not reached technological feasibility at the date of acquisition. Upon commercialization, we determine the estimated useful life. In connection with our acquisition of Stromedix in March 2012, we acquired IPR&D programs with an estimated fair value of $219.2 million. For a more detailed description of this transaction, please read Note 2, Acquisitions to these consolidated financial statements. | ||||||||||||||||||||||||||
Acquired and In-licensed Rights and Patents | ||||||||||||||||||||||||||
Acquired and in-licensed rights and patents primarily relates to our acquisition of the TYSABRI rights from Elan. The net intangible asset capitalized related to this acquisition was $3,178.3 million. In the second quarter of 2013, we began amortizing this intangible asset over the estimated useful life using an economic consumption method based on actual and expected revenues generated from the sales of our TYSABRI product. For a more detailed description of this transaction, please read Note 2, Acquisitions to these consolidated financial statements. | ||||||||||||||||||||||||||
Estimated Future Amortization of Intangible Assets | ||||||||||||||||||||||||||
Our most recent long range planning cycle was updated in the third quarter of 2013, and included the impact of our acquisition of TYSABRI rights from Elan and a decrease in the expected future product revenues of AVONEX, resulting in an increase in amortization expense as compared to prior quarters. The results of our analysis were impacted by changes in the estimated impact of TECFIDERA, as well as other existing and potential oral and alternative MS formulations, including PLEGRIDY, that may compete with AVONEX and TYSABRI. Based upon this more recent analysis, the estimated future amortization for acquired intangible assets is expected to be as follows: | ||||||||||||||||||||||||||
(In millions) | As of December 31, 2013 | |||||||||||||||||||||||||
2014 | $ | 426.3 | ||||||||||||||||||||||||
2015 | 336.4 | |||||||||||||||||||||||||
2016 | 322.7 | |||||||||||||||||||||||||
2017 | 327.5 | |||||||||||||||||||||||||
2018 | 330.2 | |||||||||||||||||||||||||
Total | $ | 1,743.10 | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
The following table provides a roll forward of the changes in our goodwill balance: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||||||||||||
Goodwill, beginning of year | $ | 1,201.30 | $ | 1,146.30 | ||||||||||||||||||||||
Increase to goodwill | 35.7 | 48.2 | ||||||||||||||||||||||||
Other | (4.1 | ) | 6.8 | |||||||||||||||||||||||
Goodwill, end of year | $ | 1,232.90 | $ | 1,201.30 | ||||||||||||||||||||||
The increase in goodwill during the year ended December 31, 2013, was primarily related to the $15.0 million contingent payment (exclusive of a $1.5 million tax benefit), which became payable upon the approval of TECFIDERA in the U.S. and the $25.0 million contingent payment (exclusive of a $2.8 million tax benefit), which became payable as we reached the $1.0 billion cumulative sales level related to the Fumapharm Products, both made to former shareholders of Fumapharm AG and holders of their rights. For additional information related to future contingent payments, please read Note 22, Commitments and Contingencies to these consolidated financial statements. | ||||||||||||||||||||||||||
For the year ended December 31, 2013, we also adjusted goodwill to establish a deferred tax asset related to our Stromedix transaction. For additional information related to our transaction with Stromedix, please read Note 2, Acquisitions to these consolidated financial statements. | ||||||||||||||||||||||||||
As of December 31, 2013, we had no accumulated impairment losses related to goodwill. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
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 | Significant | Significant | ||||||||||||
December 31, | Prices in | Other | Unobservable | |||||||||||||
2013 | Active | Observable | Inputs | |||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 424.7 | $ | — | $ | 424.7 | $ | — | ||||||||
Marketable debt securities: | ||||||||||||||||
Corporate debt securities | 439.8 | — | 439.8 | — | ||||||||||||
Government securities | 674.7 | — | 674.7 | — | ||||||||||||
Mortgage and other asset backed securities | 131.4 | — | 131.4 | — | ||||||||||||
Marketable equity securities | 11.2 | 11.2 | — | — | ||||||||||||
Venture capital investments | 21.9 | — | — | 21.9 | ||||||||||||
Derivative contracts | 3.8 | — | 3.8 | — | ||||||||||||
Plan assets for deferred compensation | 22.7 | — | 22.7 | — | ||||||||||||
Total | $ | 1,730.20 | $ | 11.2 | $ | 1,697.10 | $ | 21.9 | ||||||||
Liabilities: | ||||||||||||||||
Derivative contracts | $ | 23.5 | $ | — | $ | 23.5 | $ | — | ||||||||
Contingent consideration obligations | 280.9 | — | — | 280.9 | ||||||||||||
Total | $ | 304.4 | $ | — | $ | 23.5 | $ | 280.9 | ||||||||
(In millions) | As of | Quoted | Significant | Significant | ||||||||||||
December 31, | Prices | Other | Unobservable | |||||||||||||
2012 | in Active | Observable | Inputs | |||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 439.4 | $ | — | $ | 439.4 | $ | — | ||||||||
Marketable debt securities: | ||||||||||||||||
Corporate debt securities | 1,001.00 | — | 1,001.00 | — | ||||||||||||
Government securities | 1,657.80 | — | 1,657.80 | — | ||||||||||||
Mortgage and other asset backed securities | 512.9 | — | 512.9 | — | ||||||||||||
Marketable equity securities | 9 | 9 | — | — | ||||||||||||
Venture capital investments | 20.3 | — | — | 20.3 | ||||||||||||
Derivative contracts | 1.8 | — | 1.8 | — | ||||||||||||
Plan assets for deferred compensation | 14.3 | — | 14.3 | — | ||||||||||||
Total | $ | 3,656.50 | $ | 9 | $ | 3,627.20 | $ | 20.3 | ||||||||
Liabilities: | ||||||||||||||||
Derivative contracts | $ | 14.4 | $ | — | $ | 14.4 | $ | — | ||||||||
Contingent consideration obligations | 293.9 | — | — | 293.9 | ||||||||||||
Total | $ | 308.3 | $ | — | $ | 14.4 | $ | 293.9 | ||||||||
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, refer to Note 1, Summary of Significant Accounting Policies: Fair Value Measurements, to these consolidated financial statements. | ||||||||||||||||
Marketable Equity Securities and Venture Capital Investments | ||||||||||||||||
Our marketable equity securities represent investments in publicly traded equity securities. Our venture capital investments, which are all Level 3 measurements, include investments in certain venture capital funds, accounted for at fair value, that primarily invest in small privately-owned, venture-backed biotechnology companies. These venture capital investments represented approximately 0.2% of total assets of December 31, 2013 and 2012, respectively. | ||||||||||||||||
The following table provides a roll forward of the fair value of our venture capital investments, which includes Level 3 measurements: | ||||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Fair value, beginning of year | $ | 20.3 | $ | 23.5 | ||||||||||||
Unrealized gains included in earnings | 10.5 | 5.4 | ||||||||||||||
Unrealized losses included in earnings | (6.3 | ) | (9.2 | ) | ||||||||||||
Purchases | 0.7 | 0.6 | ||||||||||||||
Settlements | (3.3 | ) | — | |||||||||||||
Fair value, end of year | $ | 21.9 | $ | 20.3 | ||||||||||||
Debt Instruments | ||||||||||||||||
The fair values of our debt instruments, which are Level 2 liabilities, are summarized as follows: | ||||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Notes payable to Fumedica | $ | 17.5 | $ | 20 | ||||||||||||
Credit Facility | — | — | ||||||||||||||
6.0% Senior Notes due March 1, 2013 | — | 453.7 | ||||||||||||||
6.875% Senior Notes due March 1, 2018 | 647.9 | 681.6 | ||||||||||||||
Total | $ | 665.4 | $ | 1,155.30 | ||||||||||||
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 our 6.875% Senior Notes was determined through market, observable, and corroborated sources. For additional information related to our debt instruments, please read Note 12, Indebtedness to these consolidated financial statements. | ||||||||||||||||
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) | 2013 | 2012 | ||||||||||||||
Fair value, beginning of year | $ | 293.9 | $ | 151 | ||||||||||||
Additions | — | 122.2 | ||||||||||||||
Changes in fair value | (0.5 | ) | 27.2 | |||||||||||||
Payments | (12.5 | ) | (6.5 | ) | ||||||||||||
Fair value, end of year | $ | 280.9 | $ | 293.9 | ||||||||||||
As of December 31, 2013 and 2012, approximately $251.9 million and $271.5 million, respectively, of the fair value of our total contingent consideration obligations were reflected as components of other long-term liabilities within our consolidated balance sheets with the remaining balances reflected as a component of accrued expenses and other. | ||||||||||||||||
In connection with our acquisition of Stromedix in March 2012, we recorded a contingent consideration obligation of $122.2 million. This valuation was based on probability weighted net cash outflow projections of $487.5 million, discounted using a rate of 4.4%, which is a measure of the credit risk associated with settling the liability. As of December 31, 2013 and 2012, the fair value of this contingent consideration obligation was $140.7 million and $135.3 million, respectively. Our most recent valuation was determined based upon probability weighted net cash outflow projections discounted using a rate of 3.8%. For 2013 compared to 2012, the net increase in the fair value of this obligation was primarily due to changes in the discount rate and in the probability and expected timing related to the achievement of certain developmental milestones. | ||||||||||||||||
Upon completion of our purchase of the noncontrolling interest in our joint venture investments in Biogen Dompé SRL and Biogen Dompé Switzerland GmbH in September 2011, we recorded a contingent consideration obligation of $38.8 million. As of December 31, 2013 and 2012, the fair value of this contingent consideration obligation was $31.6 million and $29.8 million, respectively. Our most recent valuation was determined based upon probability weighted net cash outflow projections of $38.5 million, discounted using a rate of 1.5%, which is a measure of the credit risk associated with settling the liability. For 2013 compared to 2012, the net increase in the fair value of this obligation was primarily due to changes in the probability and expected timing related to the achievement of certain cumulative sales-based and developmental milestones and in the discount rate. For 2012 compared to 2011, the net decrease in the fair value of this obligation was primarily due to changes in the probability and expected timing related to the achievement of certain cumulative sales-based and developmental milestones and in the discount rate as well as the payment of a $4.0 million regulatory approval milestone. | ||||||||||||||||
In connection with our acquisition of Biogen Idec International Neuroscience GmbH (BIN), formerly Panima Pharmaceuticals AG (Panima), in December 2010, we recorded a contingent consideration obligation of $81.2 million. As of December 31, 2013 and 2012, the fair value of this contingent consideration obligation was $108.6 million and $128.8 million, respectively. Our most recent valuation was determined based upon probability weighted net cash outflow projections of $375.0 million, discounted using a rate of 3.8%, which is a measure of the credit risk associated with settling the liability. For 2013 compared to 2012, the net decrease in the fair value of this obligation was primarily due to changes in the probability and expected timing related to the achievement of certain remaining developmental milestones and in the discount rate as well as payments of $12.5 million developmental milestones. For 2012 compared to 2011, the net increase in the fair value of this obligation was primarily due to changes in the discount rate and in the probability and expected timing related to the achievement of certain remaining developmental milestones, offset by a payment of a $2.5 million developmental milestone. | ||||||||||||||||
Acquired IPR&D | ||||||||||||||||
In connection with our acquisition of Stromedix, we allocated $219.2 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 are tested for impairment annually, and whenever events or changes in circumstances indicate that the carrying value of the assets might not be recoverable, until commercialization, after which time the IPR&D is amortized over its estimated economic life. For a more detailed description of this transaction, please read Note 2, Acquisitions to these consolidated financial statements. | ||||||||||||||||
There were no changes in valuation techniques or inputs utilized or transfers between fair value measurement levels during the years ended December 31, 2013 and 2012. For additional information related to the valuation techniques and inputs utilized in valuation of our financial assets and liabilities, please read Note 1, Summary of Significant Accounting Policies to these consolidated financial statements. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||
Financial Instruments | ' | |||||||||||||||
Financial Instruments | ||||||||||||||||
On April 2, 2013, we used $3.25 billion to fund the upfront payment in connection with our acquisition of the TYSABRI rights. | ||||||||||||||||
Marketable Securities | ||||||||||||||||
The following tables summarize our marketable debt and equity securities: | ||||||||||||||||
As of December 31, 2013 (In millions) | Fair | Gross | Gross | Amortized | ||||||||||||
Value | Unrealized | Unrealized | Cost | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale: | ||||||||||||||||
Corporate debt securities | ||||||||||||||||
Current | $ | 100.7 | $ | — | $ | — | $ | 100.7 | ||||||||
Non-current | 339.1 | 0.4 | (0.1 | ) | 338.8 | |||||||||||
Government securities | ||||||||||||||||
Current | 519.5 | — | — | 519.5 | ||||||||||||
Non-current | 155.2 | — | (0.1 | ) | 155.3 | |||||||||||
Mortgage and other asset backed securities | ||||||||||||||||
Current | — | — | — | — | ||||||||||||
Non-current | 131.4 | — | (0.1 | ) | 131.5 | |||||||||||
Total marketable debt securities | $ | 1,245.90 | $ | 0.4 | $ | (0.3 | ) | $ | 1,245.80 | |||||||
Marketable equity securities, non-current | $ | 11.2 | $ | 8.7 | $ | — | $ | 2.5 | ||||||||
As of December 31, 2012 (In millions) | Fair | Gross | Gross | Amortized | ||||||||||||
Value | Unrealized | Unrealized | Cost | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale: | ||||||||||||||||
Corporate debt securities | ||||||||||||||||
Current | $ | 346.9 | $ | 0.3 | $ | — | $ | 346.6 | ||||||||
Non-current | 654.1 | 2.8 | (0.6 | ) | 651.9 | |||||||||||
Government securities | ||||||||||||||||
Current | 783.4 | 0.3 | — | 783.1 | ||||||||||||
Non-current | 874.4 | 0.8 | — | 873.6 | ||||||||||||
Mortgage and other asset backed securities | ||||||||||||||||
Current | 4.8 | — | — | 4.8 | ||||||||||||
Non-current | 508.1 | 1.4 | (1.3 | ) | 508 | |||||||||||
Total marketable debt securities | $ | 3,171.70 | $ | 5.6 | $ | (1.9 | ) | $ | 3,168.00 | |||||||
Marketable equity securities, non-current | $ | 9 | $ | 3 | $ | — | $ | 6 | ||||||||
The following table summarizes our financial assets with maturities of less than 90 days from the date of purchase included within cash and cash equivalents on the accompanying consolidated balance sheet: | ||||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Commercial paper | $ | 1.2 | $ | 40.7 | ||||||||||||
Overnight reverse repurchase agreements | 22.4 | 67.4 | ||||||||||||||
Short-term debt securities | 401.1 | 331.3 | ||||||||||||||
Total | $ | 424.7 | $ | 439.4 | ||||||||||||
The carrying values of our commercial paper, including accrued interest, overnight reverse repurchase agreements, and our short-term debt securities approximate fair value due to their short term maturities. | ||||||||||||||||
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, 2013 | As of December 31, 2012 | |||||||||||||||
(In millions) | Estimated | Amortized | Estimated | Amortized | ||||||||||||
Fair Value | Cost | Fair Value | Cost | |||||||||||||
Due in one year or less | $ | 620.2 | $ | 620.2 | $ | 1,135.00 | $ | 1,134.50 | ||||||||
Due after one year through five years | 573.1 | 572.9 | 1,744.30 | 1,741.20 | ||||||||||||
Due after five years | 52.6 | 52.7 | 292.4 | 292.3 | ||||||||||||
Total available-for-sale securities | $ | 1,245.90 | $ | 1,245.80 | $ | 3,171.70 | $ | 3,168.00 | ||||||||
The average maturity of our marketable debt securities available-for-sale as of December 31, 2013 and 2012, was 13 months and 14 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) | 2013 | 2012 | 2011 | |||||||||||||
Proceeds from maturities and sales | $ | 5,190.10 | $ | 2,749.60 | $ | 2,276.70 | ||||||||||
Realized gains | $ | 6.6 | $ | 2.1 | $ | 3.9 | ||||||||||
Realized losses | $ | 2.1 | $ | 3.5 | $ | 2.3 | ||||||||||
Realized losses for the year ended December 31, 2013, primarily relate to sales of agency mortgage-backed securities and corporate securities. Realized losses for the year ended December 31, 2012, primarily relate to sales of agency mortgage-backed securities. Realized losses for the year ended December 31, 2011, primarily relate to the sale of government and corporate securities. | ||||||||||||||||
Strategic Investments | ||||||||||||||||
As of December 31, 2013 and 2012, our strategic investment portfolio was comprised of investments totaling $56.9 million and $64.2 million, respectively, which are included in investments and other assets in our accompanying consolidated balance sheets. | ||||||||||||||||
Our strategic investment portfolio includes investments in marketable equity securities of certain biotechnology companies and our investments in venture capital funds accounted for at fair value which totaled $33.1 million and $29.3 million as of December 31, 2013 and 2012, respectively. Our strategic investment portfolio also includes other equity investments in privately-held companies and additional investments in venture capital funds accounted for under the cost method. The carrying value of these investments totaled $23.8 million and $34.9 million, as of December 31, 2013 and 2012, respectively. | ||||||||||||||||
Changes in Fair Value | ||||||||||||||||
During the years ended December 31, 2013, 2012, and 2011, we realized changes in fair value recorded through income of $14.4 million, $6.5 million and $7.3 million, respectively, on our strategic investment portfolio. In 2013, we sold our stock in Portola for a gain of $7.1 million. Included within changes in fair value recognized during the year ended December 31, 2012, was a gain of $9.0 million recognized upon our acquisition of Stromedix as we previously held an equity interest. For a more detailed description of this transaction, please read Note 2, Acquisitions to these consolidated financial statements. In 2011 we sold four strategic investments for $40.6 million, which resulted in a net gain of $13.5 million. | ||||||||||||||||
Impairments | ||||||||||||||||
During the years ended December 31, 2013, 2012, and 2011, we recognized impairment charges on our marketable equity securities of certain biotechnology companies, investments in venture capital funds accounted for under the cost method and investments in privately-held companies totaling $2.8 million, $5.5 million, and $9.9 million, respectively. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
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 are earned in currencies other than the U.S. dollar. The value of revenues 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. | |||||||||||||||||||||||||||
Foreign currency forward contracts in effect as of December 31, 2013 and 2012, had durations of 1 to 18 months and 1 to 12 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 revenue when the sale of product in the currency being hedged is recognized. 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 is summarized as follows: | |||||||||||||||||||||||||||
Notional Amount | |||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
Foreign Currency: (In millions) | 2013 | 2012 | |||||||||||||||||||||||||
Euro | $ | 636.3 | $ | 492.2 | |||||||||||||||||||||||
Canadian dollar | 34 | 31.8 | |||||||||||||||||||||||||
British pound sterling | 72.3 | — | |||||||||||||||||||||||||
Total foreign currency forward contracts | $ | 742.6 | $ | 524 | |||||||||||||||||||||||
The portion of the fair value of these foreign currency forward contracts that was included in accumulated other comprehensive income (loss) within total equity reflected losses of $23.6 million and $11.8 million and gains of $36.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. We expect all contracts to be settled over the next 18 months and any amounts in accumulated other comprehensive income (loss) to be reported as an adjustment to revenue. 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, 2013 and 2012, respectively, credit risk did not change the fair value of our foreign currency forward contracts. | |||||||||||||||||||||||||||
The following table summarizes the effect of derivatives designated as hedging instruments on our consolidated statements of income: | |||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||||
Net Gains/(Losses) | Net Gains/(Losses) | ||||||||||||||||||||||||||
Reclassified from AOCI into Net Income | Recognized into Net Income | ||||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||||
Location | 2013 | 2012 | 2011 | Location | 2013 | 2012 | 2011 | ||||||||||||||||||||
Revenue | $ | (13.2 | ) | $ | 35.1 | $ | (36.9 | ) | Other income (expense) | $ | (0.2 | ) | $ | 4.8 | $ | (3.9 | ) | ||||||||||
Foreign Currency Forward Contracts - Other Derivatives | |||||||||||||||||||||||||||
We also enter into other foreign currency forward contracts, usually with one month durations, 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 $273.3 million and $243.2 million as of December 31, 2013 and 2012, respectively. Net gains of $5.2 million, $4.2 million and $12.1 million related to these contracts were recognized as a component of other income (expense), net, for years ended December 31, 2013, 2012 and 2011, 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 within our consolidated balance sheets. | |||||||||||||||||||||||||||
The following table summarizes the fair value and presentation in our consolidated balance sheets for our outstanding derivatives including those designated as hedging instruments: | |||||||||||||||||||||||||||
(In millions) | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||
Hedging Instruments: | |||||||||||||||||||||||||||
Asset derivatives | Other current assets | $ | 0.6 | ||||||||||||||||||||||||
Liability derivatives | Accrued expenses and other | $ | 23.4 | ||||||||||||||||||||||||
Other Derivatives: | |||||||||||||||||||||||||||
Asset derivatives | Other current assets | $ | 3.2 | ||||||||||||||||||||||||
Liability derivatives | Accrued expenses and other | $ | 0.1 | ||||||||||||||||||||||||
(In millions) | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||
Hedging Instruments: | |||||||||||||||||||||||||||
Asset derivatives | Other current assets | $ | 0.6 | ||||||||||||||||||||||||
Liability derivatives | Accrued expenses and other | $ | 11.5 | ||||||||||||||||||||||||
Other Derivatives: | |||||||||||||||||||||||||||
Asset derivatives | Other current assets | $ | 1.2 | ||||||||||||||||||||||||
Liability derivatives | Accrued expenses and other | $ | 2.9 | ||||||||||||||||||||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
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) | 2013 | 2012 | ||||||
Land | $ | 59.7 | $ | 55.7 | ||||
Buildings | 961.5 | 902.5 | ||||||
Leasehold improvements | 139.6 | 107.3 | ||||||
Machinery and equipment | 944.5 | 882 | ||||||
Computer software and hardware | 559.2 | 476.6 | ||||||
Furniture and fixtures | 60.3 | 46.9 | ||||||
Construction in progress | 144.2 | 212.3 | ||||||
Total cost | 2,869.00 | 2,683.30 | ||||||
Less: accumulated depreciation | (1,118.3 | ) | (941.1 | ) | ||||
Total property, plant and equipment, net | $ | 1,750.70 | $ | 1,742.20 | ||||
Depreciation expense totaled $187.8 million, $164.3 million and $143.9 million for 2013, 2012 and 2011, respectively. | ||||||||
For 2013, 2012 and 2011, we capitalized interest costs related to construction in progress totaling approximately $7.8 million, $25.4 million and $32.6 million, respectively. | ||||||||
Cambridge Leases | ||||||||
In July 2011, we executed leases for two office buildings to be constructed in Cambridge, Massachusetts. Construction of these facilities began in late 2011. In accordance with accounting guidance applicable to entities involved with the construction of an asset that will be leased when the construction is completed, we were considered the owner of these properties during the construction period. Accordingly, we recorded an asset and a corresponding financing obligation on our consolidated balance sheet for the amount of costs incurred related to the construction for these buildings. | ||||||||
In July and November 2013, the construction of the two office buildings was completed and we started leasing the facilities. Upon completion of the construction of the buildings, we determined that we are no longer considered the owner of the buildings because we do not have any unusual or significant continuing involvement. Consequently, we derecognized the buildings and their associated financing obligation of approximately $161.5 million from our consolidated balance sheet. As of December 31, 2012, the amount recorded within our consolidated balance sheet as property, plant and equipment and financing obligation totaled approximately $86.5 million. | ||||||||
As a result of our decision to relocate our corporate headquarters to Cambridge, Massachusetts, we vacated part of our Weston, Massachusetts facility in the fourth quarter of 2013. We incurred a charge of $27.2 million in connection with this move. This charge represents our remaining lease obligation for the vacated portion of our Weston facility, net of sublease income expected to be received. The term of our sublease to the vacated portion of our Weston facility started in January 2014 and will continue through the remaining term of our lease agreement. | ||||||||
In addition, this decision has shortened the expected useful lives of certain leasehold improvements and other assets at our Weston facility. During the years ended December 31, 2013, 2012 and 2011, approximately $6.2 million, $11.4 million and $4.7 million of additional depreciation was recognized. | ||||||||
Hillerød, Denmark Facility | ||||||||
As of September 2012, our large-scale biologics manufacturing facility in Hillerød, Denmark was ready for its intended use as we began the process of manufacturing clinical products for sale to third parties. As a result, we transferred $465.9 million from construction in progress to various fixed asset accounts. We ceased capitalizing a majority of the interest expense and began recording depreciation on the various assets during the third quarter of 2012. The average estimated useful life for the facility and its assets is 20 years. In July 2013, the facility was approved by the FDA and EMA for the manufacture of commercial TYSABRI. | ||||||||
Research Triangle Park (RTP) Lease | ||||||||
In December 2012, we entered into an arrangement with Eisai, Inc. (Eisai) to lease a portion of their facility in RTP to manufacture our and Eisai's oral solid dose products and for Eisai to provide us with vial-filling services for biologic therapies and packaging services for oral solid dose products. The 10 year operating lease agreement, which is cancellable after 5 years, became effective in February 2013 and gives us the option to purchase the facility. |
Indebtedness
Indebtedness | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Indebtedness | ' | |||||||
Indebtedness | ||||||||
Our indebtedness is summarized as follows: | ||||||||
As of December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Current portion: | ||||||||
6.0% Senior notes due March 1, 2013 | $ | — | $ | 450 | ||||
Note payable to Fumedica | 3.5 | 3.4 | ||||||
Credit facility | — | — | ||||||
Current portion of notes payable and line of credit | $ | 3.5 | $ | 453.4 | ||||
Non-current portion: | ||||||||
6.875% Senior notes due March 1, 2018 | 580.1 | 586.4 | ||||||
Note payable to Fumedica | 12.3 | 14.5 | ||||||
Financing arrangement for the construction of the Cambridge facilities | — | 86.5 | ||||||
Non-current portion of notes payable and other financing arrangements | $ | 592.4 | $ | 687.4 | ||||
The following is a summary description of our principal indebtedness as of December 31, 2013: | ||||||||
Senior Notes | ||||||||
On March 4, 2008, we issued $450.0 million aggregate principal amount of 6.0% Senior Notes due March 1, 2013 and $550.0 million aggregate principal amount of 6.875% Senior Notes due March 1, 2018 that were originally priced at 99.886% and 99.184% of par, respectively. The discount is amortized as additional interest expense over the period from issuance through maturity. These notes are senior unsecured obligations. Interest on the notes is payable March 1 and September 1 of each year. The 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. The notes contain a change of control provision that may require us to purchase the notes under certain circumstances. There is also an interest rate adjustment feature that requires us to pay interest at an increased rate on the notes if the credit rating on the notes declines below investment grade. | ||||||||
Upon the issuance of the 6.875% Senior Notes due in 2018, we 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 swaps, the carrying amount of the 6.875% Senior Notes due in 2018 was increased by $62.8 million and is being amortized using the effective interest rate method over the remaining life of the Senior Notes and is being recognized as a reduction of interest expense. As of December 31, 2013, $32.4 million remains to be amortized. | ||||||||
On March 1, 2013, we repaid the $450.0 million principal amount of our 6.0% Senior Notes. | ||||||||
Notes Payable to Fumedica | ||||||||
In connection with our 2006 distribution agreement with Fumedica, we issued notes totaling 61.4 million Swiss Francs which were payable to Fumedica in varying amounts from June 2008 through June 2018. Our remaining note payable to Fumedica had a present value of 14.0 million Swiss Francs ($15.8 million) and 16.4 million Swiss Francs ($17.9 million) as of December 31, 2013 and 2012, respectively. | ||||||||
Credit Facility | ||||||||
In March 2013, we entered into a $750.0 million senior unsecured revolving credit facility, which we may choose to use for working capital and general corporate purposes. The terms of this revolving credit facility include a financial covenant that requires us to not exceed a maximum debt to EBITDA ratio. This facility terminates in March 2014. As of December 31, 2013, we had no outstanding borrowings and were in compliance with all covenants under this facility. | ||||||||
Financing Arrangements | ||||||||
During 2011 we recorded a financing obligation in relation to the construction of the two office buildings in Cambridge, Massachusetts. In July and November 2013, the construction of the two office buildings was completed and we derecognized the buildings and associated financing obligation. As of December 31, 2012, the amount recorded within our consolidated balance sheet as a financing obligation totaled approximately $86.5 million. For additional information related to these transactions, please read Note 11, Property, Plant & Equipment to these consolidated financial statements. | ||||||||
Debt Maturity | ||||||||
The total gross payments due under our debt arrangements are as follows: | ||||||||
(In millions) | As of December 31, 2013 | |||||||
2014 | $ | 3.5 | ||||||
2015 | 3.6 | |||||||
2016 | 3.6 | |||||||
2017 | 3.6 | |||||||
2018 | 553.6 | |||||||
2019 and thereafter | — | |||||||
Total | $ | 567.9 | ||||||
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, 2013 | ||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||
Equity | ' | |||||||||||||||||
Equity | ||||||||||||||||||
Preferred Stock | ||||||||||||||||||
The following table describes the number of shares authorized, issued and outstanding of our preferred stock as of December 31, 2013 and 2012: | ||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
(In thousands) | Authorized | Issued | Outstanding | Authorized | Issued | Outstanding | ||||||||||||
Series A | 1,750 | — | — | 1,750 | — | — | ||||||||||||
Series X junior participating | 1,000 | — | — | 1,000 | — | — | ||||||||||||
Undesignated | 5,250 | — | — | 5,250 | — | — | ||||||||||||
Total preferred stock | 8,000 | — | — | 8,000 | — | — | ||||||||||||
We have 8,000,000 shares of Preferred Stock authorized. Shares may be issued without a vote or action of stockholders 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. | ||||||||||||||||||
Common Stock | ||||||||||||||||||
The following table describes the number of shares authorized, issued and outstanding of our common stock as of December 31, 2013 and 2012: | ||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
(In thousands) | Authorized | Issued | Outstanding | Authorized | Issued | Outstanding | ||||||||||||
Common stock | 1,000,000 | 255,973 | 236,332 | 1,000,000 | 254,237 | 236,582 | ||||||||||||
Share Repurchases | ||||||||||||||||||
In February 2011, our Board of Directors authorized the repurchase of up to 20.0 million shares of common stock. This authorization does not have an expiration date. In 2013, approximately 2.0 million shares were repurchased at a cost of $400.3 million. | ||||||||||||||||||
We repurchased approximately 7.8 million shares at a cost of approximately $984.7 million under the 2011 authorization in 2012. | ||||||||||||||||||
Approximately 4.2 million shares of our common stock remain available for repurchase under the 2011 authorization. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Comprehensive Income (Loss) Note | ' | |||||||||||||||||||
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 | Unrealized Gains (Losses) on Foreign Currency Forward Contracts | Unfunded Status of Postretirement Benefit Plans | Translation Adjustments | Total | |||||||||||||||
Balance, December 31, 2012 | $ | 4.2 | $ | (10.7 | ) | $ | (21.7 | ) | $ | (27.1 | ) | $ | (55.3 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 11.8 | (26.7 | ) | 2.1 | 37.1 | 24.3 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (10.4 | ) | 13.7 | — | — | 3.3 | ||||||||||||||
Net current period other comprehensive income (loss) | 1.4 | (13.0 | ) | 2.1 | 37.1 | 27.6 | ||||||||||||||
Balance, December 31, 2013 | $ | 5.6 | $ | (23.7 | ) | $ | (19.6 | ) | $ | 10 | $ | (27.7 | ) | |||||||
(In millions) | Unrealized Gains (Losses) on Securities Available for Sale | Unrealized Gains (Losses) on Foreign Currency Forward Contracts | Unfunded Status of Postretirement Benefit Plans | Translation Adjustments | Total | |||||||||||||||
Balance, December 31, 2011 | $ | — | $ | 32.8 | $ | (9.0 | ) | $ | (50.3 | ) | $ | (26.5 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 5.1 | (11.8 | ) | (12.7 | ) | 23.2 | 3.8 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (0.9 | ) | (31.7 | ) | — | — | (32.6 | ) | ||||||||||||
Net current period other comprehensive income (loss) | 4.2 | (43.5 | ) | (12.7 | ) | 23.2 | (28.8 | ) | ||||||||||||
Balance, December 31, 2012 | $ | 4.2 | $ | (10.7 | ) | $ | (21.7 | ) | $ | (27.1 | ) | $ | (55.3 | ) | ||||||
(In millions) | Unrealized Gains (Losses) on Securities Available for Sale | Unrealized Gains (Losses) on Foreign Currency Forward Contracts | Unfunded Status of Postretirement Benefit Plans | Translation Adjustments | Total | |||||||||||||||
Balance, December 31, 2010 | $ | 12.4 | $ | (9.8 | ) | $ | 0.2 | $ | (24.4 | ) | $ | (21.6 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (0.2 | ) | 32.8 | (9.2 | ) | (25.9 | ) | (2.5 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (12.2 | ) | 9.8 | — | — | (2.4 | ) | |||||||||||||
Net current period other comprehensive income (loss) | (12.4 | ) | 42.6 | (9.2 | ) | (25.9 | ) | (4.9 | ) | |||||||||||
Balance, December 31, 2011 | $ | — | $ | 32.8 | $ | (9.0 | ) | $ | (50.3 | ) | $ | (26.5 | ) | |||||||
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, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Gains (losses) on securities available for sale | Other income (expense) | $ | 15.9 | $ | 1.4 | $ | 19.4 | |||||||||||||
Income tax benefit (expense) | (5.5 | ) | (0.5 | ) | (7.2 | ) | ||||||||||||||
Gains (losses) on foreign currency forward contracts | Revenues | (13.2 | ) | 35.1 | (11.1 | ) | ||||||||||||||
Income tax benefit (expense) | (0.5 | ) | (3.4 | ) | 1.3 | |||||||||||||||
Total reclassifications, net of tax | $ | (3.3 | ) | $ | 32.6 | $ | 2.4 | |||||||||||||
Securities Available for Sale | ||||||||||||||||||||
Balances included within accumulated other comprehensive income (loss) related to unrealized gains (losses) on securities available for sale are shown net of tax of $3.3 million and $2.5 million as of December 31, 2013 and 2012, respectively. Other comprehensive income (loss) before reclassifications recognized during the years ended December 31, 2013, 2012 and 2011 are shown net of tax of $6.4 million, $2.9 million and $0.1 million, respectively. | ||||||||||||||||||||
Foreign Currency Forward Contracts | ||||||||||||||||||||
Balances included within accumulated other comprehensive income (loss) related to unrealized gains (losses) on foreign currency forward contracts are shown net of tax of $0.1 million and $1.1 million as of December 31, 2013 and 2012, respectively. Other comprehensive income (loss) before reclassifications recognized during the years ended December 31, 2013, 2012 and 2011 are shown net of tax of $1.7 million, $1.4 million and $3.6 million, respectively. | ||||||||||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||||
Tax amounts related to the unfunded status of pension and retirement benefit plans were immaterial for all amounts presented. For discussion of the unfunded status of pension and retirement benefit plans, please read Note 24, Employee Benefit Plans to these consolidated financial statements. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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) | 2013 | 2012 | 2011 | |||||||||
Numerator: | ||||||||||||
Net income attributable to Biogen Idec Inc. | $ | 1,862.30 | $ | 1,380.00 | $ | 1,234.40 | ||||||
Adjustment for net income allocable to preferred stock | — | — | (0.5 | ) | ||||||||
Net income used in calculating basic and diluted earnings per share | $ | 1,862.30 | $ | 1,380.00 | $ | 1,233.90 | ||||||
Denominator: | ||||||||||||
Weighted average number of common shares outstanding | 236.9 | 237.9 | 242.4 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and employee stock purchase plan | 0.3 | 0.5 | 1 | |||||||||
Time-vested restricted stock units | 0.8 | 1 | 1.3 | |||||||||
Market stock units | 0.3 | 0.3 | 0.3 | |||||||||
Dilutive potential common shares | 1.4 | 1.8 | 2.6 | |||||||||
Shares used in calculating diluted earnings per share | 238.3 | 239.7 | 245 | |||||||||
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, 2013, 2012 and 2011, reflects, on a weighted average basis, the repurchase of 0.9 million shares, 5.8 million shares and 6.0 million shares, respectively, of our common stock under our share repurchase authorizations. |
Sharebased_Payments
Share-based Payments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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 within our consolidated statements of income: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Research and development | $ | 95.6 | $ | 74.7 | $ | 62 | ||||||
Selling, general and administrative | 160.3 | 109.6 | 88.7 | |||||||||
Restructuring charges | — | — | (0.6 | ) | ||||||||
Subtotal | 255.9 | 184.3 | 150.1 | |||||||||
Capitalized share-based compensation costs | (9.8 | ) | (5.4 | ) | (4.5 | ) | ||||||
Share-based compensation expense included in total cost and expenses | 246.1 | 178.9 | 145.6 | |||||||||
Income tax effect | (73.3 | ) | (53.4 | ) | (44.6 | ) | ||||||
Share-based compensation expense included in net income attributable to Biogen Idec Inc. | $ | 172.8 | $ | 125.5 | $ | 101 | ||||||
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) | 2013 | 2012 | 2011 | |||||||||
Stock options | $ | 0.6 | $ | 2.3 | $ | 5.9 | ||||||
Market stock units | 32.8 | 23.3 | 14.6 | |||||||||
Time-vested restricted stock units | 103.5 | 93 | 89.6 | |||||||||
Performance-vested restricted stock units settled in shares | — | 0.1 | 1 | |||||||||
Cash settled performance shares | 109.8 | 60.4 | 32.7 | |||||||||
Employee stock purchase plan | 9.2 | 5.2 | 6.3 | |||||||||
Subtotal | 255.9 | 184.3 | 150.1 | |||||||||
Capitalized share-based compensation costs | (9.8 | ) | (5.4 | ) | (4.5 | ) | ||||||
Share-based compensation expense included in total cost and expenses | $ | 246.1 | $ | 178.9 | $ | 145.6 | ||||||
Windfall tax benefits from vesting of stock awards, exercises of stock options and ESPP participation were $73.5 million, $54.7 million and $50.6 million in 2013, 2012 and 2011, respectively. These amounts have been calculated under the alternative transition method. | ||||||||||||
As of December 31, 2013, unrecognized compensation cost related to unvested share-based compensation was approximately $193.6 million, net of estimated forfeitures. We expect to recognize the cost of these unvested awards over a weighted-average period of 1.4 years. | ||||||||||||
Share-Based Compensation Plans | ||||||||||||
We have three share-based compensation plans pursuant to which awards are currently being made: (1) the Biogen Idec Inc. 2006 Non-Employee Directors Equity Plan (2006 Directors Plan); (2) the Biogen Idec Inc. 2008 Omnibus Equity Plan (2008 Omnibus Plan); and (3) the Biogen Idec Inc. 1995 Employee Stock Purchase Plan (ESPP). We have five share-based compensation plans under which there are outstanding awards, but from which no further awards can or will be made: (i) the IDEC Pharmaceuticals Corporation 1993 Non-Employee Directors Stock Option Plan; (ii) the IDEC Pharmaceuticals Corporation 1988 Stock Option Plan; (iii) the Biogen, Inc. 1985 Non-Qualified Stock Option Plan; (iv) the Biogen Idec Inc. 2003 Omnibus Equity Plan; and (v) the Biogen Idec Inc. 2005 Omnibus Equity Plan (2005 Omnibus Plan). We have not made any awards pursuant to the 2005 Omnibus Plan since our stockholders approved the 2008 Omnibus Plan and do not intend to make any awards pursuant to the 2005 Omnibus Plan in the future, except that unused shares under the 2005 Omnibus Plan have been carried over for use under the 2008 Omnibus Plan. | ||||||||||||
Directors Plan | ||||||||||||
In May 2006, our stockholders 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, restricted stock units, 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. | ||||||||||||
Omnibus Plans | ||||||||||||
In June 2008, our stockholders approved the 2008 Omnibus Plan for share-based awards to our employees. Awards granted from the 2008 Omnibus Plan may include stock options, shares of restricted stock, restricted stock units, performance shares, shares of phantom stock, 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 issuance under the 2008 Omnibus Plan consist of 15.0 million shares reserved for this purpose, plus shares of common stock that remained available for issuance under the 2005 Omnibus Plan on the date that our stockholders approved the 2008 Omnibus Plan, plus shares that are subject to awards under the 2005 Omnibus Plan which remain unissued upon the cancellation, surrender, exchange or termination of such awards. The 2008 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. | ||||||||||||
Stock Options | ||||||||||||
We no longer 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 Idec 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 2013, 2012 and 2011. | ||||||||||||
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, 2012 | 907,000 | $ | 54.48 | |||||||||
Granted | — | $ | — | |||||||||
Exercised | (523,000 | ) | $ | 53.73 | ||||||||
Cancelled | — | $ | — | |||||||||
Outstanding at December 31, 2013 | 384,000 | $ | 55.49 | |||||||||
The total intrinsic values of options exercised in 2013, 2012 and 2011 totaled $86.2 million, $63.0 million, and $149.0 million, respectively. The aggregate intrinsic values of options outstanding as of December 31, 2013 totaled $86.1 million. The weighted average remaining contractual term for options outstanding as of December 31, 2013 was 3.1 years. | ||||||||||||
Of the options outstanding, 0.4 million were exercisable as of December 31, 2013. The exercisable options had a weighted-average exercise price of $55.49. The aggregate intrinsic value of options exercisable as of December 31, 2013 was $85.5 million. The weighted average remaining contractual term for options exercisable as of December 31, 2013 was 3.1 years. | ||||||||||||
A total of 0.4 million vested and expected to vest options were outstanding as of December 31, 2013. These vested and expected to vest options had a weighted average exercise price of $55.49 and an aggregated intrinsic value of $86.1 million. The weighted average remaining contractual term of vested and expected to vest options as of December 31, 2013 was 3.1 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) | 2013 | 2012 | 2011 | |||||||||
Tax benefit realized for stock options | $ | 29.4 | $ | 20.9 | $ | 47.5 | ||||||
Cash received from the exercise of stock options | $ | 28.1 | $ | 38.8 | $ | 291.9 | ||||||
Market Stock Units (MSUs) | ||||||||||||
MSUs awarded to employees vest in four equal annual increments beginning on the anniversary of the grant date. 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. Participants may ultimately earn between 0% and 150% of the target number of units granted based on actual stock performance. 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, 2012 | 606,000 | $ | 94.73 | |||||||||
Granted (a) | 271,000 | $ | 193.45 | |||||||||
Vested | (296,000 | ) | $ | 85.12 | ||||||||
Forfeited | (31,000 | ) | $ | 128.39 | ||||||||
Unvested at December 31, 2013 | 550,000 | $ | 128.04 | |||||||||
(a) | MSUs granted in 2013 include approximately 18,000 and 39,000 MSUs issued in 2013 based upon the attainment of performance criteria set for 2012 and 2011, respectively, in relation to shares granted in those years. The remainder of MSUs granted during 2013 include awards granted in conjunction with our annual awards made in February 2013 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. | |||||||||||
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, 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, | ||||||||||||
2013 | 2012 | |||||||||||
Expected dividend yield | —% | —% | ||||||||||
Range of expected stock price volatility | 21.7% - 25.7% | 29.6% - 34.0% | ||||||||||
Range of risk-free interest rates | 0.1% - 0.7% | 0.2% - 0.6% | ||||||||||
60 calendar day average stock price on grant date | $150.33 - $240.14 | $113.83 - $149.79 | ||||||||||
Weighted-average per share grant date fair value | $193.45 | $134.95 | ||||||||||
Cash Settled Performance Shares (CSPSs) | ||||||||||||
CSPSs awarded to employees vest in three equal annual increments beginning on the 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 CSPSs 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 31st 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 CSPSs may be issued or currently outstanding CSPSs may be cancelled upon final determination of the number of units earned. CSPSs 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. Since no shares are issued, these awards will not dilute equity. Compensation expense, including the effect of forfeitures, is recognized over the applicable service period. | ||||||||||||
The following table summarizes our CSPS activity: | ||||||||||||
Shares | ||||||||||||
Unvested at December 31, 2012 | 592,000 | |||||||||||
Granted (a) | 273,000 | |||||||||||
Vested | (317,000 | ) | ||||||||||
Forfeited | (34,000 | ) | ||||||||||
Unvested at December 31, 2013 | 514,000 | |||||||||||
(a) | CSPSs granted in 2013 include approximately 76,000 CSPSs issued in 2013 based upon the attainment of performance criteria set for 2012 in relation to shares granted in 2012. The remainder of the CSPSs granted in 2013 include awards granted in conjunction with our annual awards made in February 2013 and CSPSs 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 2013, we paid $48.3 million of cash in settlement of CSPS awards upon vesting. | ||||||||||||
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, 2012 | 2,187,000 | $ | 90.37 | |||||||||
Granted (a) | 758,000 | $ | 176.53 | |||||||||
Vested | (1,181,000 | ) | $ | 79.17 | ||||||||
Forfeited | (104,000 | ) | $ | 119.42 | ||||||||
Unvested at December 31, 2013 | 1,660,000 | $ | 135.95 | |||||||||
(a) | RSUs granted in 2013 primarily represent RSUs granted in conjunction with our annual awards made in February 2013 and awards made in conjunction with the hiring of new employees. RSUs granted in 2013 also include approximately 16,000 RSUs granted to our Board of Directors. | |||||||||||
RSUs granted in 2012 and 2011 had weighted average grant date fair values of $124.54 and $70.01, respectively. | ||||||||||||
Performance-Vested Restricted Stock Units (PVRSUs) | ||||||||||||
The following table summarizes our PVRSU activity: | ||||||||||||
Shares | Weighted | |||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Unvested at December 31, 2012 | 930 | $ | 53.64 | |||||||||
Granted | — | $ | — | |||||||||
Vested | (930 | ) | $ | 53.64 | ||||||||
Forfeited | — | $ | — | |||||||||
Unvested at December 31, 2013 | — | $ | — | |||||||||
Grant Activity | ||||||||||||
In 2011, approximately 1,000 PVRSUs were granted with weighted average grant date fair values of $53.64 per share. The number of PVRSUs reflected as granted represents the target number of shares that are eligible to vest in full or in part and are earned subject to the attainment of certain performance criteria established at the beginning of the performance period, which ended December 31, 2009. Participants may ultimately earn up to 200% of the target number of shares granted in the event that the maximum performance thresholds are attained. Accordingly, additional PVRSUs may be issued upon final determination of the number of awards earned. | ||||||||||||
Once the earned number of performance-vested awards has been determined, the earned PVRSUs will then vest in three equal increments on (1) the later of the first anniversary of the grant date or the date of results determination; (2) the second anniversary of the grant date; and (3) the third anniversary of the grant date. The vesting of these awards is also subject to the respective employees’ continued employment. Compensation expense associated with these PVRSUs is initially based upon the number of shares expected to vest 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 quarterly to reflect subsequent changes in the estimated outcome of performance-related conditions until the date results are determined. | ||||||||||||
Employee Stock Purchase Plan (ESPP) | ||||||||||||
The following table summarizes our ESPP activity: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions, except share amounts) | 2013 | 2012 | 2011 | |||||||||
Shares issued under ESPP | 245,000 | 274,000 | 434,000 | |||||||||
Cash received under ESPP | $ | 38.7 | $ | 28.7 | $ | 22.8 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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) | 2013 | 2012 | 2011 | |||||||||
Income before income taxes (benefit): | ||||||||||||
Domestic | $ | 1,953.00 | $ | 1,398.00 | $ | 1,408.90 | ||||||
Foreign | 527.6 | 457.1 | 302.3 | |||||||||
Total | $ | 2,480.60 | $ | 1,855.10 | $ | 1,711.20 | ||||||
Income tax expense (benefit): | ||||||||||||
Current: | ||||||||||||
Federal | $ | 700.9 | $ | 507.9 | $ | 231.7 | ||||||
State | 98.4 | 35.6 | 15.1 | |||||||||
Foreign | 46.8 | 44 | 44.1 | |||||||||
Total | 846.1 | 587.5 | 290.9 | |||||||||
Deferred: | ||||||||||||
Federal | $ | (200.6 | ) | $ | (133.0 | ) | $ | 160.9 | ||||
State | (35.9 | ) | (13.0 | ) | (8.1 | ) | ||||||
Foreign | (8.6 | ) | 29.1 | 0.8 | ||||||||
Total | (245.1 | ) | (116.9 | ) | 153.6 | |||||||
Total income tax expense | $ | 601 | $ | 470.6 | $ | 444.5 | ||||||
The 2012 deferred tax expense on foreign earnings includes an expense of $33.1 million related to capitalized interest at our Denmark manufacturing facility. Of this amount, $29.0 million represents the correction of an error in our accounting that had accumulated over several prior years. We do not consider this correction to be material. | ||||||||||||
Deferred Tax Assets and Liabilities | ||||||||||||
Significant components of our deferred tax assets and liabilities are summarized as follows: | ||||||||||||
As of December 31, | ||||||||||||
(In millions) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Tax credits | $ | 64.1 | $ | 69.3 | ||||||||
Inventory, other reserves, and accruals | 169.6 | 118.3 | ||||||||||
Capitalized costs | 7.9 | 7.6 | ||||||||||
Intangibles, net | 124.2 | 84.5 | ||||||||||
Net operating loss | 14.7 | 37.5 | ||||||||||
Share-based compensation | 85 | 58.6 | ||||||||||
Other | 76.9 | 57.8 | ||||||||||
Valuation allowance | (1.5 | ) | (12.3 | ) | ||||||||
Total deferred tax assets | $ | 540.9 | $ | 421.3 | ||||||||
Deferred tax liabilities: | ||||||||||||
Purchased intangible assets | $ | (550.8 | ) | $ | (411.3 | ) | ||||||
Unrealized gain on investments and cumulative translation adjustment | (3.2 | ) | (1.2 | ) | ||||||||
Inventory | (24.9 | ) | (50.8 | ) | ||||||||
Depreciation, amortization and other | (112.6 | ) | (146.4 | ) | ||||||||
Total deferred tax liabilities | $ | (691.5 | ) | $ | (609.7 | ) | ||||||
In addition to deferred tax assets and liabilities, we have recorded prepaid tax and deferred charges related to intercompany transactions. As of December 31, 2013 and 2012, the total deferred charges and prepaid taxes were $248.9 million and $33.4 million, respectively. | ||||||||||||
During 2013, we recorded a deferred charge of $203.7 million in connection with an intercompany transfer of the intellectual property for Daclizumab HYP. The deferred charge will be amortized to income tax expense over the economic life of the Daclizumab HYP program. If the Daclizumab HYP program were to be discontinued, we will accelerate the amortization of this deferred charge and record an expense equal to its remaining net book value. | ||||||||||||
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, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes | 3.1 | 0.9 | 1.7 | |||||||||
Taxes on foreign earnings | (6.7 | ) | (6.2 | ) | (5.9 | ) | ||||||
Credits and net operating loss utilization | (2.6 | ) | (3.5 | ) | (4.4 | ) | ||||||
Purchased intangible assets | 1.5 | 1.2 | 1.3 | |||||||||
Manufacturing deduction | (6.6 | ) | (2.1 | ) | (1.5 | ) | ||||||
Other permanent items | 0.8 | (0.4 | ) | 0.3 | ||||||||
Contingent consideration | — | 0.5 | 0.7 | |||||||||
Other | (0.3 | ) | — | (1.2 | ) | |||||||
Effective tax rate | 24.2 | % | 25.4 | % | 26 | % | ||||||
Our effective tax rate for 2013 compared to 2012 decreased primarily as a result of a change in our uncertain tax position related to our U.S. federal manufacturing deduction and our unconsolidated joint business, described below under "Accounting for Uncertainty in Income Taxes", lower intercompany royalties owed by a foreign wholly owned subsidiary to a U.S. wholly owned subsidiary on the international sales of one of our products, the reinstatement of the federal research and development tax credit and the 2012 correction of an error in our deferred tax accounting, which increased our rate in the prior year. These favorable items were partially offset by higher relative earnings in the U.S. from the commercial launch of TECFIDERA, lower orphan drug credits due to reduced expenditures in eligible clinical trials and higher state taxes. | ||||||||||||
Our effective tax rate for 2012 compared to 2011 decreased primarily as a result of higher orphan drug credits for our ELOCTATE, STX-100, dexpramipexole and other orphan credit eligible clinical trials, lower intercompany royalties owed by a foreign wholly owned subsidiary to a U.S. wholly owned subsidiary on the international sales of one of our products and higher deductions related to our manufacturing activities. These decreases were partially offset by the correction of an error which had accumulated over several years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | ||||||||||||
As of December 31, 2013, we had net operating losses and general business credit carry forwards for federal income tax purposes of approximately $36.8 million and $4.2 million, respectively, which begin to expire in 2020. Additionally, for state income tax purposes, we had net operating loss carry forwards of approximately $108.1 million, which begin to expire in 2014. For state income tax purposes, we also had research and investment credit carry forwards of approximately $113.0 million, which begin to expire in 2014. For foreign income tax purposes, we had $5.9 million of net operating loss carryforwards, which do not expire. | ||||||||||||
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 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 financial position and results of operations. | ||||||||||||
As of December 31, 2013, undistributed foreign earnings of non-U.S. subsidiaries included in consolidated retained earnings and other basis differences aggregated approximately $3.8 billion. We intend to reinvest these earnings indefinitely in operations outside the U.S. The residual U.S. tax liability, if cumulative amounts were repatriated, would be between $900 million to $1 billion as of December 31, 2013. | ||||||||||||
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) | 2013 | 2012 | 2011 | |||||||||
Balance at January 1, | $ | 125.9 | $ | 64.4 | $ | 121.5 | ||||||
Additions based on tax positions related to the current period | 11.9 | 13 | 2.2 | |||||||||
Additions for tax positions of prior periods | 71.7 | 69.8 | 48.6 | |||||||||
Reductions for tax positions of prior periods | (92.1 | ) | (18.6 | ) | (75.8 | ) | ||||||
Statute expirations | (1.9 | ) | (1.9 | ) | (2.3 | ) | ||||||
Settlements | (5.4 | ) | (0.8 | ) | (29.8 | ) | ||||||
Balance at December 31, | $ | 110.1 | $ | 125.9 | $ | 64.4 | ||||||
We and our subsidiaries are routinely examined by various taxing authorities. We file income tax returns in the U.S. federal jurisdiction, various U.S. states, and foreign jurisdictions. With few exceptions, including the proposed disallowance we discuss below, we are no longer subject to U.S. federal tax examination for years before 2010 or state, local, or non-U.S. income tax examinations for years before 2004. | ||||||||||||
Included in the balance of unrecognized tax benefits as of December 31, 2013, 2012, and 2011 are $32.5 million, $109.5 million, and $31.3 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 2013, we recognized a net interest expense of $4.5 million. During 2012, we recognized net interest expense of $0.1 million. In 2011, we recognized a net interest benefit of approximately $12.9 million. We have accrued approximately $11.3 million and $2.5 million for the payment of interest as of December 31, 2013 and 2012, respectively. | ||||||||||||
Federal Uncertain Tax Positions | ||||||||||||
During 2013, we received updated technical guidance from the IRS concerning our current and prior year filings and calculation of our U.S. federal manufacturing deduction and overall tax classification of our unconsolidated joint business. Based on this guidance we reevaluated the level of our unrecognized benefits related to uncertain tax positions, and recorded a $49.8 million income tax benefit. This benefit is for a previously unrecognized position and relates to years 2005 through 2012. We recorded an offsetting expense of $11.3 million for non-income based state taxes, which is recorded in other income (expense) within our consolidated statements of income. | ||||||||||||
In October 2011, in conjunction with our examination, the IRS proposed a disallowance of approximately $130 million in deductions for tax years 2007, 2008 and 2009 related to payments for services provided by our wholly owned Danish subsidiary located in Hillerød, Denmark. We believe that these items represent valid deductible business expenses and are vigorously defending our position. We have initiated a mutual agreement procedure between the IRS and SKAT (the Danish tax authorities) for the years 2001 through 2009, in an attempt to reach agreement on the issue. In addition, we have applied for a bilateral advanced pricing agreement for the years 2010 through 2014 to resolve similar issues for the subsequent years. | ||||||||||||
It is reasonably possible that we will adjust the value of our uncertain tax positions related to our unconsolidated joint business and certain transfer pricing issues as we receive additional information from various taxing authorities. In addition, the IRS routinely examines our intercompany transfer pricing with respect to intellectual property related transactions and it is possible that the IRS may disagree with one or more positions we have taken with respect to such valuations. We do not anticipate any other significant changes in our positions in the next twelve months other than expected settlements which have been classified as current liabilities within the accompanying balance sheet. | ||||||||||||
State Uncertain Tax Positions | ||||||||||||
In 2006, the Massachusetts Department of Revenue (DOR) issued a Notice of Assessment against Biogen Idec MA Inc. (BIMA), one of our wholly-owned subsidiaries, for $38.9 million of corporate excise tax for 2002, which includes associated interest and penalties. The assessment asserted that the portion of sales attributable to Massachusetts (sales factor), the computation of BIMA’s research and development credits and certain deductions claimed by BIMA were not appropriate, resulting in unpaid taxes for 2002. On August 18, 2011, we reached a settlement with the DOR under which we agreed to pay $7.0 million in taxes, plus $5.0 million of interest, and agreed on the nature and amount of tax credits carried forward into 2004. | ||||||||||||
On June 8, 2010, we received Notices of Assessment from the DOR against BIMA for $103.5 million of corporate excise tax, including associated interest and penalties, related to our 2004, 2005 and 2006 tax filings. On October 15, 2013, we reached a settlement with the Massachusetts DOR related to our 2004, 2005 and 2006 state tax filings under which we agreed to pay $5.0 million in taxes and interest and agreed on the nature and amount of tax credits carried forward into 2007. This resolution did not have a significant impact on our results of operations. | ||||||||||||
The audit fieldwork associated with our Massachusetts state tax filings for 2007 and 2008 has been completed without a significant proposed adjustment. |
Other_Consolidated_Financial_S
Other Consolidated Financial Statement Detail | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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, 2013, 2012 and 2011, is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 53.6 | $ | 65.4 | $ | 66.7 | ||||||
Income taxes | $ | 643.2 | $ | 526.6 | $ | 332.7 | ||||||
Non-cash Investing and Financing Activity | ||||||||||||
In July and November 2013, the construction of the two office buildings was completed and we started leasing the facilities. Upon completion of the construction of the buildings, we determined that we were no longer considered the owner of the buildings because we do not have any unusual or significant continuing involvement. Consequently, we derecognized the buildings and their associated financing obligation of approximately $161.5 million from our consolidated balance sheet. For additional information related to these transactions, please read Note 11, Property, Plant & Equipment to these consolidated financial statements. | ||||||||||||
In March 2012, upon completion of our acquisition of Stromedix, we recorded $219.2 million of in-process research and development and $48.2 million of goodwill. In addition, we also recorded a contingent consideration obligation of $122.2 million. | ||||||||||||
In September 2011, upon completion of our acquisition of the noncontrolling interest in our joint venture investments in Biogen Dompé SRL and Biogen Dompé Switzerland GmbH, we recorded a contingent consideration obligation of $38.8 million. | ||||||||||||
Other Income (Expense), Net | ||||||||||||
Components of other income (expense), net, are summarized as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Interest income | $ | 8.2 | $ | 29.5 | $ | 19.2 | ||||||
Interest expense | (31.9 | ) | (36.5 | ) | (33.0 | ) | ||||||
Impairments on investments | (2.8 | ) | (5.5 | ) | (9.9 | ) | ||||||
Gain (loss) on investments, net | 21.7 | 10.6 | 18.8 | |||||||||
Foreign exchange gains (losses), net | (15.2 | ) | (2.5 | ) | (6.3 | ) | ||||||
Other, net | (14.9 | ) | 3.7 | (2.3 | ) | |||||||
Total other income (expense), net | $ | (34.9 | ) | $ | (0.7 | ) | $ | (13.5 | ) | |||
For 2013 compared to 2012, the change in other income (expense), net was due to a decrease in interest income due to lower average cash, cash equivalent and marketable securities balances primarily related to the use of cash in connection with our acquisition of TYSABRI rights from Elan and the repayment of our 6.0% Senior Notes, a decrease in other, net primarily related to higher non-income based state taxes and higher foreign exchange losses. | ||||||||||||
Accrued Expenses and Other | ||||||||||||
Accrued expenses and other consists of the following: | ||||||||||||
As of December 31, | ||||||||||||
(In millions) | 2013 | 2012 | ||||||||||
Employee compensation and benefits | $ | 343.4 | $ | 248.5 | ||||||||
Revenue-related rebates | 264.9 | 191 | ||||||||||
Deferred revenue | 172.7 | 148 | ||||||||||
Royalties and licensing fees | 160.7 | 45.2 | ||||||||||
Clinical development expenses | 55.2 | 51.6 | ||||||||||
Current portion of contingent consideration obligations | 29 | 22.4 | ||||||||||
Construction in progress accrual | 25 | 12.3 | ||||||||||
Collaboration expenses | 18.7 | 37.4 | ||||||||||
Other | 285.6 | 223.5 | ||||||||||
Total accrued expenses and other | $ | 1,355.20 | $ | 979.9 | ||||||||
Investments_in_Variable_Intere
Investments in Variable Interest Entities | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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. | ||||||||||||
Investments in Joint Ventures | ||||||||||||
On September 6, 2011, we completed the purchase of the noncontrolling interest in our joint venture investments in Biogen Dompé SRL and Biogen Dompé Switzerland GmbH, our respective sales affiliates in Italy and Switzerland, from our joint venture partners, Dompé Farmaceutici SpA and Dompé International SA, respectively. Prior to this transaction, our consolidated financial statements reflected 100% of the operations of these joint venture investments and we recorded net income (loss) attributable to noncontrolling interests in our consolidated statements of income based on the percentage of ownership interest retained by our joint venture partners as we retained the power to direct the activities which most significantly and directly impacted their economic performance. We have continued to consolidate the operations of these entities following our purchase of the noncontrolling interest; however, as of September 6, 2011, we no longer allocate 50% of the earnings of these affiliates to net income (loss) attributable to noncontrolling interests as Biogen Dompé SRL and Biogen Dompé Switzerland GmbH became wholly-owned subsidiaries of the Company. | ||||||||||||
Until we completed our purchase of the noncontrolling interests, the assets of these joint ventures were restricted, from the standpoint of Biogen Idec, in that they were not available for our general business use outside the context of each joint venture. The joint ventures’ most significant assets were accounts receivable from the ordinary course of business. The holders of the liabilities of each joint venture, including the credit line from Dompé Farmaceutici SpA to Biogen Dompé SRL, had no recourse to Biogen Idec. Balances outstanding under Biogen Dompé SRL’s credit line were repaid in connection with this transaction. In addition, Dompé Farmaceutici SpA purchased all of Biogen Dompé SRL’s outstanding receivables as of June 30, 2011, adjusted for cash received through September 5, 2011. For additional information related to this transaction, please read Note 2, Acquisitions to these consolidated financial statements. | ||||||||||||
Knopp | ||||||||||||
In August 2010, we entered into a license agreement with Knopp Neurosciences, Inc. (Knopp), a subsidiary of Knopp Holdings, LLC, for the development, manufacture and commercialization of dexpramipexole. Under the terms of the license agreement we made a $26.4 million upfront payment and agreed to pay Knopp development and sales-based milestone payments as well as royalties on future commercial sales. In addition, we also purchased 30.0% of the Class B common shares of Knopp for $60.0 million. | ||||||||||||
At the end of December 2012, we learned that a Phase 3 trial investigating dexpramipexole in people with amyotrophic lateral sclerosis (ALS) did not meet its primary endpoint and failed to show efficacy in its key secondary endpoints. Based on these results, we discontinued development of dexpramipexole in ALS. Prior to our decision to discontinue dexpramipexole, we had started the R&D extension program, ENVISION, and had entered into arrangements with certain suppliers for the purchase of raw materials and the supply of drug product. These arrangements were canceled. We accrued approximately $12.3 million of research and development expense in 2012 related to these firm commitments to purchase R&D services and inventory or to pay cancellation charges. | ||||||||||||
In addition, in the first quarter of 2013, we terminated the license agreement with Knopp and, in the fourth quarter of 2013, we exercised our put option on the 30.0% of the Class B common shares to Knopp. | ||||||||||||
We had previously determined that we were the primary beneficiary of Knopp because we had the power through the license agreement to direct the activities that most significantly impacted Knopp’s economic performance and were required to fund 100% of the research and development costs incurred in support of the collaboration agreement. As such, we consolidated the results of Knopp. In March 2013, we deconsolidated the results of Knopp upon termination of the license agreement. | ||||||||||||
A summary of activity related to this collaboration is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Milestone payments made to Knopp | $ | — | $ | — | $ | 10 | ||||||
Biogen Idec’s share of expense reflected within our consolidated statements of income | $ | — | $ | 113 | $ | 54.8 | ||||||
Collaboration expense attributed to noncontrolling interests, net of tax | $ | — | $ | — | $ | 8.6 | ||||||
The assets and liabilities of Knopp were not significant to our financial position or results of operations. We had provided no financing to Knopp other than previously contractually required amounts disclosed above. | ||||||||||||
Neurimmune SubOne AG | ||||||||||||
In 2007, we entered into a collaboration agreement with Neurimmune SubOne AG (Neurimmune), a subsidiary of Neurimmune AG, for the development and commercialization of antibodies for the treatment of Alzheimer’s disease. Neurimmune conducts research to identify potential therapeutic antibodies and we are responsible for the development, manufacturing and commercialization of all products. Based upon our current development plans, we may pay Neurimmune up to $345.0 million in remaining milestone payments, as well as royalties on sales of any resulting commercial products. | ||||||||||||
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 are required to fund 100% of the research and development costs incurred in support of the collaboration agreement. Accordingly, we consolidate the results of Neurimmune. | ||||||||||||
Amounts that are incurred by Neurimmune for research and development expenses in support of the collaboration that we reimburse are reflected in research and development expense in our consolidated statements of income. In April 2011, we submitted an Investigational New Drug application for BIIB037 (human anti-Amyloid ß mAb), a beta-amyloid removal therapy, which triggered a $15.0 million milestone payment due to Neurimmune. As we consolidate Neurimmune, we recognized this payment as a charge to noncontrolling interests in the second quarter of 2011. Future milestone payments will be reflected within our consolidated statements of income as a charge to the noncontrolling interest, net of tax, when such milestones are achieved. | ||||||||||||
A summary of activity related to this collaboration is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Milestone payments made to Neurimmune | $ | — | $ | — | $ | 15 | ||||||
Biogen Idec’s share of expense reflected within our consolidated statements of income | $ | 27.2 | $ | 13.3 | $ | 24.2 | ||||||
Collaboration expense attributed to noncontrolling interests, net of tax | $ | — | $ | — | $ | 14.7 | ||||||
A summary of activity related to this collaboration since inception, along with an estimate of additional future development expenses expected to be incurred by us, is as follows: | ||||||||||||
(In millions) | As of December 31, 2013 | |||||||||||
Total expense incurred by Biogen Idec | $ | 115.7 | ||||||||||
Estimate of additional amounts to be incurred by us in development of the lead compound | $ | 800.9 | ||||||||||
The assets and liabilities of Neurimmune are not significant to our 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. | ||||||||||||
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. For additional information related to our significant collaboration arrangements with unconsolidated variable interest entities, please read Note 20, Collaborative and Other Relationships to these consolidated financial statements. | ||||||||||||
As of December 31, 2013 and 2012, the total carrying value of our investments in biotechnology companies that we have determined to be variable interest entities, but do not consolidate as we do not have the power to direct their activities, totaled $5.5 million and $9.4 million, respectively. Our maximum exposure to loss related to these variable interest entities is limited to the carrying value of our investments. | ||||||||||||
We have entered into research collaborations with certain variable interest entities where we are required to fund certain development activities. These development activities are included in research and development expense within 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_Relati
Collaborative and Other Relationships | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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 which 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 receivables 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 collaborate with Genentech on the development and commercialization of RITUXAN. In addition, in the U.S. we share operating profits and losses relating to GAZYVA with Genentech. 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 the 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 Roche. | ||||||||||||
Outside the U.S. and Canada | ||||||||||||
We have granted Genentech exclusive rights to develop, commercialize and market RITUXAN outside the U.S. and Canada. Under the terms of separate sublicense agreements between Genentech and Roche, development and commercialization of RITUXAN outside the U.S. and Canada is the responsibility of Roche and its sublicensees. We do not have any direct contractual arrangements with Roche or it sublicensees. | ||||||||||||
Under the terms of the collaboration agreement, Roche pays us royalties between 10% and 12% on sales of RITUXAN outside the U.S. and Canada, with the royalty period lasting 11 years from the first commercial sale of RITUXAN on a country-by-country basis. The royalty periods for a substantial portion of the remaining royalty-bearing sales of RITUXAN in the rest of world markets expired in 2012 and 2013. We expect future revenue on sales of RITUXAN in the rest of world will be limited to our share of pre-tax co-promotion profits in Canada. | ||||||||||||
GAZYVA | ||||||||||||
Prior to approval, we recognized 35% of the development and commercialization expenses as research and development expense and selling, general and administrative expense, respectively, in our consolidated statements of income. After GAZYVA was approved in the fourth quarter of 2013, we began to recognize our share of the development and commercialization expenses as a reduction of our share of pre-tax profits in revenues from unconsolidated joint business. | ||||||||||||
Commercialization of GAZYVA will impact our percentage of the co-promotion profits for RITUXAN, as summarized in the table below. | ||||||||||||
Ocrelizumab | ||||||||||||
Genentech is solely responsible for further development and commercialization of ocrelizumab and funding future costs. Genentech cannot develop ocrelizumab in CLL, NHL or RA without our consent. We will receive tiered royalties between 13.5% and 24% on U.S. sales of ocrelizumab if approved for commercial sale by the FDA. Commercialization of ocrelizumab does not impact the percentage of the co-promotion profits we receive for RITUXAN. | ||||||||||||
Profit-sharing Formula | ||||||||||||
RITUXAN | ||||||||||||
Our current pretax co-promotion profit-sharing formula provides for a 30% share on the first $50.0 million of co-promotion operating profits earned each calendar year. Under the amended agreement, 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 | % | ||||||||||
After GAZYVA First Non-CLL FDA Approval until First GAZYVA Threshold Date | 39 | % | ||||||||||
After First GAZYVA Threshold Date until Second GAZYVA Threshold Date | 37.5 | % | ||||||||||
After Second GAZYVA Threshold Date | 35 | % | ||||||||||
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 (1) 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 (2) 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. | ||||||||||||
In addition, should the FDA approve an anti-CD20 product other than ocrelizumab 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 38% based on certain events. | ||||||||||||
GAZYVA | ||||||||||||
Our current pretax profit-sharing formula provides for a 35% share on the first $50.0 million of operating profits earned each calendar year. Under the amended agreement, 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 | % | ||||||||||
After First GAZYVA Threshold Date until Second GAZYVA Threshold Date | 37.5 | % | ||||||||||
After Second GAZYVA Threshold Date | 35 | % | ||||||||||
Our share of operating losses on GAZYVA is 35%. | ||||||||||||
Unconsolidated Joint Business Revenues | ||||||||||||
Revenues from unconsolidated joint business consists of (1) our share of pre-tax profits in the U.S. for RITUXAN and GAZYVA; (2) reimbursement of our selling and development expenses in the U.S. for RITUXAN; and (3) revenue on sales in the rest of world for RITUXAN, which consist of our share of pre-tax co-promotion profits in Canada and royalty revenue on sales outside the U.S. and Canada by Roche, and its sublicensees. Pre-tax co-promotion profits on RITUXAN are calculated and paid to us by Genentech in the U.S. and by Roche in Canada. Pre-tax co-promotion profits consist of U.S. and Canadian sales to third-party customers net of discounts and allowances less the cost to manufacture, third-party royalty expenses, distribution, selling, and marketing expenses, and joint development expenses incurred by Genentech, Roche and us. We record our share of the pretax co-promotion profits on RITUXAN in Canada and royalty revenues on sales outside the U.S. on a cash basis as we do not have access to the information or ability to estimate these profits or royalty revenue in the period incurred. Additionally, our share of the pre-tax profits on RITUXAN and GAZYVA in the U.S. includes estimates made by Genentech and those estimates are subject to change. Actual results may ultimately differ from our estimates. | ||||||||||||
In June 2011, the collaboration recognized a charge of approximately $125.0 million, representing an estimate of compensatory damages and interest that might be awarded to Hoechst GmbH (Hoechst), in relation to an intermediate decision by the arbitrator in Genentech’s ongoing arbitration with Hoechst. Although we were not a party to the arbitration, we charged the amounts paid by Genentech and not ultimately recovered from Hoechst as a cost charged to our collaboration with Genentech. Accordingly, we reduced our share of RITUXAN revenues from unconsolidated joint business by approximately $50.0 million in the second quarter of 2011, a portion of which was recorded as a reduction in revenue on sales in the rest of the world for RITUXAN. In February 2013, the arbitrator awarded Hoechst royalties of EUR108 million together with interest (estimated by Hoechst to be approximately EUR54 million as of the date of the award). Accordingly, we reduced our share of RITUXAN revenues from unconsolidated joint business by approximately $49.7 million during 2013, of which revenue on sales in the rest of world for RITUXAN was reduced by $41.2 million and pre-tax profits in the U.S. were reduced by $8.5 million, to reflect our share of the royalties awarded to Hoechst and the interest Hoechst claims. For additional information related to this matter, please read Note 21, Litigation to these consolidated financial statements. | ||||||||||||
Revenues from unconsolidated joint business are summarized as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Biogen Idec’s share of pre-tax profits in the U.S. for RITUXAN and GAZYVA (1) | $ | 1,085.20 | $ | 1,031.70 | $ | 872.7 | ||||||
Reimbursement of selling and development expenses in the U.S. for RITUXAN | 2.1 | 1.6 | 6.1 | |||||||||
Revenue on sales in the rest of world for RITUXAN | 38.7 | 104.6 | 117.8 | |||||||||
Total unconsolidated joint business revenues | $ | 1,126.00 | $ | 1,137.90 | $ | 996.6 | ||||||
(1) GAZYVA was approved by the FDA in November 2013. | ||||||||||||
In 2013, 2012, and 2011, the 40% profit-sharing threshold was met during the first quarter. | ||||||||||||
Prior to 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. We incurred $25.7 million, $35.4 million, and $26.9 million in development expense for the years ended December 31, 2013, 2012, and 2011, respectively. 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 unconsolidated joint business. | ||||||||||||
Elan | ||||||||||||
On April 2, 2013, we acquired full ownership of, and strategic, commercial and decision-making rights to, TYSABRI from Elan. Upon the closing of the transaction, our collaboration agreement with Elan was terminated. For additional information related to this transaction, please read Note 2, Acquisitions to these consolidated financial statements. | ||||||||||||
We previously collaborated with Elan on the development, manufacture and commercialization of TYSABRI. Under the terms of our collaboration agreement, we manufactured TYSABRI and collaborated with Elan on the product’s marketing, commercial distribution and ongoing development activities. The agreement was designed to effect an equal sharing of profits and losses generated by the activities of our collaboration. Under the agreement, however, once sales of TYSABRI exceeded specific thresholds, Elan was required to make milestone payments to us in order to continue sharing equally in the collaboration’s results. | ||||||||||||
In the U.S., we previously sold TYSABRI to Elan who sold the product to third party distributors. Our sales price to Elan in the U.S. was set prior to the beginning of each quarterly period to effect an approximate equal sharing of the gross profit between Elan and us. We recognized revenue for sales in the U.S. of TYSABRI upon Elan’s shipment of the product to the third party distributors, at which time all revenue recognition criteria had been met. We incurred manufacturing and distribution costs, research and development expenses, commercial expenses, and general and administrative expenses related to TYSABRI. We recorded these expenses to their respective line items within our consolidated statements of income when they were incurred. Research and development and sales and marketing expenses were shared equally with Elan and the reimbursement of these expenses was recorded as reductions of the respective expense categories. During the years ended December 31, 2013, 2012, and 2011, we recorded $11.7 million, $43.7 million and $47.5 million, respectively, as reductions of research and development expense for reimbursements from Elan. In addition, for the years ended December 31, 2013, 2012, and 2011, we recorded $20.6 million, $99.9 million and $77.3 million, respectively, as reductions of selling, general and administrative expense for reimbursements from Elan. | ||||||||||||
In the rest of world, we previously were responsible for distributing TYSABRI to customers and were primarily responsible for all operating activities. Generally, we recognized revenue for sales of TYSABRI in the rest of world at the time of product delivery to our customers. Payments were made to Elan for their share of the rest of world net operating profits to effect an equal sharing of collaboration operating profit. These payments also included the reimbursement for our portion of third-party royalties that Elan paid on behalf of the collaboration relating to rest of world sales. These amounts were reflected in the collaboration profit sharing line in our consolidated statements of income. For the years ended December 31, 2013, 2012 and 2011, $85.4 million, $317.9 million and $317.8 million, respectively, was reflected in the collaboration profit sharing line for our collaboration with Elan. | ||||||||||||
Acorda | ||||||||||||
In 2009, we entered into a collaboration and license agreement with Acorda Therapeutics, Inc. (Acorda) to develop and commercialize products containing fampridine in markets outside the U.S. We also have responsibility for regulatory activities and the future clinical development of related products in those markets. | ||||||||||||
In July 2011, the EC granted a conditional marketing authorization for fampridine in the E.U., under the trade name FAMPYRA, which triggered a $25.0 million milestone payment. This payment was made to Acorda in 2011 and was capitalized as an intangible asset. A conditional marketing authorization is renewable annually and is granted to a medicinal product with a positive benefit-risk assessment that fulfills an unmet medical need when the benefit to public health of immediate availability outweighs the risk inherent in the fact that additional data are still required. This marketing authorization was renewed as of July 2013. To meet the conditions of this marketing authorization, we will provide additional data from on-going clinical studies regarding FAMPYRA's benefits and safety in the long term. FAMPYRA has been approved in over 50 countries across Europe, Asia and the Americas. | ||||||||||||
Under the terms of the collaboration and license agreement, we pay Acorda tiered royalties based on the level of ex-U.S. net sales. We may pay up to $375.0 million of additional milestone payments to Acorda, based on the successful achievement of certain regulatory and commercial milestones. 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. We will capitalize these additional milestones as intangible assets upon achievement of the milestone which will then be amortized utilizing an economic consumption model and recognized as amortization of acquired intangible assets. Royalty payments are recognized as a cost of goods sold. | ||||||||||||
In connection with the collaboration and license agreement, we have 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. | ||||||||||||
A summary of activity related to this collaboration is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Upfront and milestones payments made to Acorda (1) | $ | — | $ | — | $ | 25 | ||||||
Total cost of sales related to royalties and commercial supply of FAMPYRA reflected within our statements of income | $ | 24.3 | $ | 20.2 | $ | 6.5 | ||||||
(1) Milestone payment was capitalized as an intangible asset. | ||||||||||||
Swedish Orphan Biovitrum AB | ||||||||||||
In January 2007, we acquired 100% of the stock of Syntonix. Syntonix had previously entered into a collaboration agreement with Swedish Orphan Biovitrum AB (Sobi) to jointly develop and commercialize Factor VIII and Factor IX hemophilia products, including ELOCTATE and ALPROLIX. In February 2010, we restructured the collaboration agreement and assumed full development responsibilities and costs, as well as manufacturing rights. In addition, the cross-royalty rates were reduced and commercial rights for certain territories were changed. As a result, we now have commercial rights for North America (the Biogen Idec North America Territory) and for rest of the world markets outside of Europe, Russia, Turkey and certain countries in the Middle East (the Biogen Idec Direct Territory). Subject to the exercise of an option right that Sobi controls, Sobi will have commercial rights in Europe, Russia, Turkey and certain countries in the Middle East (the Sobi Territory). | ||||||||||||
Under the terms of the option right, Sobi may, following our submission of a marketing authorization application to the EMA for each product developed under the collaboration, opt to take over final regulatory approval, pre-launch and commercialization activities in the Sobi Territory by making a payment into escrow of $10.0 million per product. Upon EMA regulatory approval of each such product, Sobi will be liable to reimburse us 50% of the sum of all shared manufacturing and development expenses incurred by us from October 1, 2009 through the date on which Sobi is registered as the marketing authorization holder for the applicable product, as well as 100% of certain development expenses incurred exclusively for the benefit of the Sobi Territory (the Opt-In Consideration). Through December 31, 2013, we have incurred between $120 million and $130 million in expenditures for each product that may be reimbursable by SOBI should it exercise its right to commercialize one or both products. To effect Sobi’s reimbursement to us for the Opt-In Consideration exceeding the escrow payment for each product, the cross-royalty structure for direct sales in each company’s respective territories will be adjusted until the Opt-In Consideration is paid in full (the Reimbursement Period). The mechanism for reimbursement is outlined in the table below. | ||||||||||||
Under the restructured agreement, amounts are payable as follows: | ||||||||||||
Rates should Sobi exercise | ||||||||||||
its option right(3) | ||||||||||||
Royalty and Net Revenue Share Rates: | Method | Rate prior to 1st | Base Rate following | Rate during the | ||||||||
commercial sale in | 1st commercial sale in | Reimbursement | ||||||||||
the Sobi Territory: | the Sobi Territory: | Period: | ||||||||||
Sobi rate to Biogen Idec on net sales in the Sobi Territory | Royalty | N/A | 10 to 12% | Base Rate | ||||||||
plus 5% | ||||||||||||
Biogen Idec rate to Sobi on net sales in the Biogen Idec North America Territory | Royalty | 2% | 10 to 12% | Base Rate | ||||||||
less 5% | ||||||||||||
Biogen Idec rate to Sobi on net sales in the Biogen Idec Direct Territory | Royalty | 2% | 15 to 17% | Base Rate | ||||||||
less 5% | ||||||||||||
Biogen Idec rate to Sobi on net revenue(1) | Net | 10% | 50% | Base Rate | ||||||||
from the Biogen Idec Distributor Territory(2) | Revenue | less 15% | ||||||||||
Share | ||||||||||||
-1 | Net revenue represents Biogen Idec’s pre-tax receipts from third-party distributors, less expenses incurred by Biogen Idec in the conduct of commercialization activities supporting the distributor activities. | |||||||||||
-2 | The Biogen Idec Distributor Territory represents Biogen Idec territories where sales are derived utilizing a third-party distributor. | |||||||||||
-3 | A credit will be issued to Sobi against its reimbursement of the Opt-in Consideration in an amount equal to the difference in the rate paid by Biogen Idec to Sobi on sales in the Biogen Idec territories for certain periods prior to the first commercial sale in the Sobi Territory versus the rate that otherwise would have been payable on such sales. | |||||||||||
If the reimbursement of the Opt-in Consideration has not been achieved within six years of the first commercial sale of such product, we maintain the right to require Sobi to pay any remaining balances due to us within 90 days of the six year anniversary date of the first commercial sale. | ||||||||||||
Should Sobi not exercise its option right with respect to one or both products or should Sobi terminate the agreement with respect to one or both products we will obtain full worldwide development and commercialization rights for such affected products and we will be obligated to pay royalties to Sobi subject to separate terms, as defined under the restructured collaboration agreement. In addition, if EMA approval for any product is not granted within 18 months of the applicable EMA filing date, Sobi shall have the right to require that the escrow payment be refunded and revoke its option right for such product. | ||||||||||||
AbbVie Biotherapeutics, Inc. | ||||||||||||
We have a collaboration agreement with AbbVie Biotherapeutics, Inc., a subsidiary of AbbVie, Inc. (AbbVie) aimed at advancing the development and commercialization of Daclizumab HYP in MS. Under the agreement, development and commercialization costs and profits in North America and the E.U. are shared equally. In January 2010, we agreed with our collaborator, AbbVie, to assume the manufacture of Daclizumab HYP. | ||||||||||||
Based upon our current development plans, we may incur up to an additional $60.0 million of payments upon achievement of development and commercial milestones related to the development of Daclizumab HYP. | ||||||||||||
A summary of activity related to this collaboration is as follows: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Total development expense incurred by the collaboration | $ | 133.4 | $ | 128 | $ | 105.2 | ||||||
Biogen Idec’s share of development expense reflected within our consolidated statements of income | $ | 71 | $ | 65.6 | $ | 54.2 | ||||||
Portola Pharmaceuticals, Inc. | ||||||||||||
On October 26, 2011, we entered into an exclusive, worldwide collaboration and license agreement with Portola Pharmaceuticals, Inc. (Portola) under which both companies will develop and commercialize highly selective, novel oral Syk inhibitors for the treatment of various autoimmune and inflammatory diseases, including asthma, rheumatoid arthritis and systemic lupus erythematosus. | ||||||||||||
Under the terms of the agreement, we provided Portola with an upfront payment of $36.8 million in cash and purchased $8.2 million in Portola equity, with potential additional payments of up to $406.8 million based on the achievement of certain development and regulatory milestones. During the third quarter of 2012, we decided to stop development of the Syk inhibitor for the treatment of rheumatoid arthritis. We are researching the Syk inhibitor for the treatment of asthma and other indications. In the fourth quarter of 2013, we sold our stock in Portola for a gain of $7.1 million. | ||||||||||||
A summary of collective activity related to these programs is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Total expense incurred by the collaboration | $ | 1.6 | $ | 18.8 | $ | 1.1 | ||||||
Total expense reflected within our consolidated statements of income, excluding upfront and milestone payments | $ | 1.6 | $ | 14.2 | $ | 0.9 | ||||||
Isis Pharmaceuticals, Inc. | ||||||||||||
Long-Term Strategic Research Collaboration | ||||||||||||
In September 2013, we entered into a six year research collaboration with Isis Pharmaceuticals Inc. (Isis) under which both companies will perform discovery level research and then develop and commercialize antisense or other therapeutics for the treatment of neurological disorders. Under the collaboration, Isis will perform research on a set of neurological targets identified within the agreement. Once the research has reached a specific stage of development, we will make the determination whether antisense is the preferred approach to develop a therapeutic candidate or whether another modality is preferred. If antisense is selected, Isis will continue development and identify a product candidate. If another modality is used, we will assume the responsibility for identifying a product candidate and developing it. | ||||||||||||
Under the terms of this agreement, we paid Isis an upfront amount of $100.0 million. Of this payment, we recorded prepaid research and discovery services of approximately $25.0 million, representing the value of the Isis full time equivalent employee resources which are required by the collaboration to provide research and discovery services to us over the next six years. The remaining $75.0 million of the upfront payment was recorded as research and development expense in the third quarter of 2013, the period in which we entered into the collaboration, as it represents the purchase of intellectual property that has not reached technological feasibility. | ||||||||||||
Isis 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. | ||||||||||||
For antisense product candidates, Isis 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. We have an option to license the product candidate until completion of the Phase 2 trial. If we exercise our option, we will pay Isis up to a $70.0 million license fee and assume global development, regulatory and commercialization responsibilities. Isis 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 Isis 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 owe Isis up to $90.0 million upon the achievement of certain regulatory milestones. | ||||||||||||
Product Collaborations | ||||||||||||
In December, June and January 2012, we entered into three separate exclusive, worldwide option and collaboration agreements with Isis Pharmaceuticals, Inc. (Isis) under which both companies will develop and commercialize antisense therapeutics for up to three gene targets, Isis’ product candidates for the treatment of myotonic dystrophy type 1 (DM1), and the treatment of spinal muscular atrophy (SMA), respectively. | ||||||||||||
Under the terms of the December 2012 agreement, we provided Isis with an upfront payment of $30.0 million and will 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. Isis will be 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 Isis up to a $70.0 million license fee and assume global development, regulatory and commercialization responsibilities. Isis could 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. | ||||||||||||
Under the terms of the June 2012 agreement for the DM1 candidate, we provided Isis with an upfront payment of $12.0 million and will make potential additional payments, prior to licensing, of up to $59.0 million based on the development of the selected product candidate. In 2013, we made a $10.0 million milestone payment to Isis related to the selection and advancement of ISIS-DMPKRx to treat DM1. Isis will be 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 also have an option to license the product candidate until completion of the Phase 2 trial. If we exercise our option, we will pay Isis up to a $70.0 million license fee and assume global development, regulatory and commercialization responsibilities. Isis could 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. | ||||||||||||
Under the terms of the January 2012 agreement for the antisense investigation drug, ISIS-SMNRx, we paid Isis $29.0 million as an upfront payment. In January 2014, we amended the agreement and agreed to pay the clinical trial costs of up to $40.0 million related to the development of ISIS-SMNRx through two studies which Isis will be responsible for performing. We are providing input on the clinical trial design and regulatory strategy and have an option to license ISIS-SMNRx until completion of the first successful Phase 2/3 trial. If we exercise our option, we will pay Isis a $75.0 million license fee and assume global development, regulatory and commercialization responsibilities. Isis could receive up to another $150.0 million in milestone payments upon the achievement of certain regulatory milestones as well as royalties on future sales of ISIS-SMNRx if we successfully develop ISIS-SMNRx after option exercise. | ||||||||||||
Proteostasis Therapeutics, Inc. | ||||||||||||
In December 2013, we entered into a collaborative research, development, commercialization and license agreement with Proteostasis Therapeutics, Inc. (Proteostasis) under which both companies will develop and commercialize small molecule therapeutics for the treatment of neurological diseases. | ||||||||||||
Under the terms of the agreement, we paid Proteostasis an upfront payment of $2.5 million with potential additional payments of up to $197.5 million based on the achievement of certain development, regulatory and commercial milestones plus royalties on commercial sales. In addition, we will fund certain research and development expenses. Proteostasis has the option to co-commercialize any potential products. In January 2014 we purchased $5.0 million of the preferred stock of Proteostasis. | ||||||||||||
Other Research and Discovery Arrangements | ||||||||||||
During the year ended December 31, 2013, we entered into research and discovery arrangements that resulted in $35.0 million recorded as investments and other assets within our consolidated balance sheet and $4.0 million recorded as research and development expense within our consolidated statements of income. These additional arrangements include the potential for future milestone payments based on clinical and commercial development over a period of several years. | ||||||||||||
Samsung Bioepis | ||||||||||||
In February 2012, we finalized an agreement with Samsung Biologics that established an entity, Samsung Bioepis, to develop, manufacture and market biosimilar pharmaceuticals. Under the terms of the agreement, Samsung Biologics agreed to contribute 280.5 billion South Korean won (approximately $250.0 million) for an 85 percent stake in Samsung Bioepis and we agreed to contribute approximately 49.5 billion South Korean won (approximately $45.0 million) for the remaining 15 percent ownership interest. Our investment is limited to this contribution as we have no obligation to provide any additional funding; however, we maintain an option to purchase additional stock based in Samsung Bioepis that would allow us to increase our ownership percentage up to 49.9 percent. The exercise of this option is within our control and is based on paying for 49.9 percent of the total investment made to Samsung Bioepis in excess of what we have already contributed during the agreement plus interest. | ||||||||||||
Samsung Biologics has the power to direct the activities of Samsung Bioepis which will most significantly and directly impact its economic performance. We account for this investment under the equity method of accounting as we maintain the ability to exercise significant influence over Samsung Bioepis through a presence on the entity’s Board of Directors and our contractual relationship. Under the equity method, we record our original investment at cost and subsequently adjust the carrying value of our investments for our share of equity in the entity’s income or losses according to our percentage of ownership. If losses accumulate, we will record our share of losses until our investment has been fully depleted. Once our investment has been fully depleted, we will recognize additional losses only if we provide or are required to provide additional funding. During the year ended December 31, 2013, we contributed the remaining 13.5 billion South Korean won (approximately $12.4 million) to Samsung Bioepis to complete our obligation to contribute an aggregate of approximately 49.5 billion South Korean won (approximately $45.0 million) for our 15 percent ownership interest of Samsung Bioepis. As of December 31, 2013 and 2012, the carrying value of our investment in Samsung Bioepis totaled 25.2 billion and 29.7 billion South Korean won (approximately $23.9 million and $27.8 million), respectively, which is classified as a component of investments and other assets within our consolidated balance sheets. We recognize our share of the results of operations related to our investment in Samsung Bioepis one quarter in arrears when the results of the entity become available, which is reflected as equity in loss of investee, net of tax within our consolidated statements of income. During the years ended December 31, 2013 and 2012, we recognized a loss on our investment of $17.2 million and $4.5 million, respectively. | ||||||||||||
Simultaneous with the formation of Samsung Bioepis, we entered into a license agreement, a technical development services agreement and a manufacturing agreement with Samsung Bioepis. Under the terms of the license agreement, we granted Samsung Bioepis an exclusive license to use, develop, manufacture, and commercialize biosimilar products created by Samsung Bioepis using Biogen Idec product-specific technology. In exchange, we will receive single digit royalties on all biosimilar products developed and commercialized by Samsung Bioepis. Under the terms of the technical development services agreement, we provide Samsung Bioepis technical development and technology transfer services, which include, but are not limited to, cell culture development, purification process development, formulation development, and analytical development. Under the terms of our manufacturing agreement, we will manufacture clinical and commercial quantities of bulk drug substance of biosimilar products for Samsung Bioepis pursuant to contractual terms. Under limited circumstances, we may also supply Samsung Bioepis with quantities of drug product of biosimilar products for use in clinical trials through arrangements with third party contract manufacturers. For the years ended December 31, 2013 and 2012, we recognized $43.1 million and $13.3 million, respectively, in other revenues in relation to these services, which is reflected as a component of other revenues within our consolidated statement of income. | ||||||||||||
On December 17, 2013, pursuant to our joint venture agreement with Samsung Biologics, we exercised our right to enter into an agreement with Samsung Bioepis to commercialize anti-TNF biosimilar product candidates in Europe. Under the terms of this agreement, we paid $21.0 million and accrued $15.0 million, which was recorded as a research and development expense within our consolidated statements of income. These payments are classified as research and development expense as the programs they relate to have not achieved regulatory approval. Samsung Bioepis is eligible to receive an additional $85.0 million in additional milestones related to clinical development and regulatory approval of the product candidates. Upon commercialization, there will be a 50 percent profit share with Samsung Bioepis. |
Litigation
Litigation | 12 Months Ended | |
Dec. 31, 2013 | ||
Loss Contingency, Information about Litigation Matters [Abstract] | ' | |
Litigation | ' | |
Litigation | ||
Massachusetts Department of Revenue | ||
On June 8, 2010, we received Notices of Assessment from the Massachusetts DOR against BIMA for the payment of additional corporate excise tax, including associated interest and penalties, related to our 2004, 2005 and 2006 state tax filings and our subsequent application for abatement of the assessment was denied. On October 15, 2013 we reached a settlement resolving this matter. | ||
Hoechst — Genentech Arbitration | ||
On October 24, 2008, Hoechst GmbH (Hoechst), an affiliate of Sanofi-Aventis Deutschland GmbH (Sanofi), filed a request for arbitration with the ICC International Court of Arbitration (Paris) claiming that Genentech breached a license agreement, now terminated, under which Hoechst claims rights (the Hoechst License). The Hoechst License granted Genentech certain rights with respect to U.S. Patents 5,849,522 (’522 patent) and 6,218,140 (’140 patent). In 2012, the arbitrator ruled that Genentech was liable to Hoechst for license royalties with respect to sales of RITUXAN, and in February 2013 he awarded Hoechst royalties of EUR108 million, together with interest (estimated by Hoechst to be approximately EUR54 million as of the date of the award). Genentech has filed Declarations of Appeal in the Paris Court of Appeal to vacate the arbitral awards in their entirety, which are pending. In the fourth quarter, Genentech paid Hoechst the amounts that Hoechst claims that it is owed, while reserving all legal rights, including the right to challenge the awards and the right to claim reimbursement. | ||
Although we are not a party to the arbitration, the amounts paid by Genentech and not ultimately recovered from Hoechst are a cost charged to our collaboration with Genentech. Our revenues from unconsolidated joint business were reduced by approximately $50.0 million in the second quarter of 2011 and by approximately $49.7 million in 2013 to reflect our share of the royalties awarded to Hoechst and the interest Hoechst claims. Our share may vary from these amounts if Genentech is successful in challenging the awards. | ||
Sanofi ’522 and ’140 Patent Litigation | ||
On October 27, 2008, Sanofi filed suit against Genentech and Biogen Idec in the United States District Court for the Eastern District of Texas claiming that RITUXAN infringes the ’522 patent and the ’140 patent. That action was transferred and consolidated with an action filed on the same day by Genentech and Biogen Idec against Sanofi in the United States District for the Northern District of California seeking declaratory judgments that RITUXAN does not infringe the patents and that the asserted patent claims are invalid and unenforceable. On April 21, 2011, the federal court in California entered a separate and final judgment of non-infringement, and the United States Court of Appeals for the Federal Circuit affirmed on March 22, 2012. The federal court in California has stayed further proceedings relating to Biogen Idec's and Genentech's claims for a declaration that the asserted patent claims are invalid and unenforceable, and no trial date has been set on those claims. | ||
’755 Patent Litigation | ||
On September 15, 2009, we were issued 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. This patent, which expires in September 2026, covers, among other things, the treatment of MS with our product AVONEX. On May 27, 2010, Bayer Healthcare Pharmaceuticals Inc. (Bayer) filed a lawsuit against us in the U.S. District Court for the District of New Jersey seeking a declaratory judgment of patent invalidity and non-infringement and seeking monetary relief in the form of attorneys' fees, costs and expenses. On May 28, 2010, BIMA filed a lawsuit in the U.S. District Court for the District of New Jersey alleging infringement of the ’755 Patent by EMD Serono, Inc. (manufacturer, marketer and seller of REBIF), Pfizer, Inc. (co-marketer of REBIF), Bayer (manufacturer, marketer and seller of BETASERON and manufacturer of EXTAVIA), and Novartis Pharmaceuticals Corp. (marketer and seller of EXTAVIA) and seeking monetary damages, including lost profits and royalties. The court has consolidated the two lawsuits, and we refer to the two actions as the “Consolidated ’755 Patent Actions”. | ||
Bayer, Pfizer, Novartis and EMD Serono have all filed counterclaims in the Consolidated ’755 Patent Actions seeking declaratory judgments of patent invalidity and non-infringement, and seeking monetary relief in the form of costs and attorneys' fees, and EMD Serono and Bayer have each filed a counterclaim seeking a declaratory judgment that the ’755 Patent is unenforceable based on alleged inequitable conduct. Bayer has also amended its complaint to seek such a declaration. No trial date has been set. | ||
Novartis V&D ’688 Patent Litigation | ||
On January 26, 2011, Novartis Vaccines and Diagnostics, Inc. (Novartis V&D) filed suit against us in the United States District Court for the District of Delaware, alleging that TYSABRI infringes U.S. Patent No. 5,688,688 “Vector for Expression of a Polypeptide in a Mammalian Cell” (’688 Patent). In December 2013 the parties reached a settlement resolving the dispute. The settlement was not significant to our financial statements or results of operations. | ||
Italian National Medicines Agency | ||
In the fourth quarter of 2011, Biogen Idec SRL received a notice from the Italian National Medicines Agency (Agenzia Italiana del Farmaco or AIFA) stating that sales of TYSABRI for the period from February 2009 through February 2011 exceeded by EUR30.7 million a reimbursement limit established pursuant to a Price Determination Resolution (Price Resolution) granted by AIFA in December 2006. The Price Resolution set the initial price for the sale of TYSABRI in Italy and limited the amount of government reimbursement “for the first 24 months ” of TYSABRI sales. As the basis for the claim, the AIFA notice referred to a 2001 Decree that provides for an automatic 24-month renewal of the terms of all Price Resolutions that are not renegotiated prior to the expiration of their term. | ||
On November 17, 2011, Biogen Idec SRL responded to AIFA that the reimbursement limit in the Price Resolution by its terms applied only to the first 24 months of TYSABRI sales, which began in February 2007. On December 23, 2011, we filed an appeal in the Regional Administrative Tribunal of Lazio (Il Tribunale Amministrativo Regionale per il Lazio) in Rome against AIFA, seeking a ruling that our interpretation of the Price Resolution is valid and that the position of AIFA is unenforceable, and the appeal is pending. On November 21, 2012, the tribunal ruled that the reimbursement limit would not automatically renew for another 24-month term pending resolution of the dispute. | ||
In June 2013, the Price and Reimbursement Committee of AIFA informed Biogen Idec SRL that sales of TYSABRI for February 2011 through February 2013 exceeded the reimbursement limit in the Price Resolution. We dispute that the reimbursement limit applies to this period for the same reason that we dispute its application to the February 2009 through February 2011 period. | ||
In July 2013, we reached an agreement in principle with the Price and Reimbursement Committee of AIFA to settle all of AIFA's claims relating to sales of TYSABRI in excess of the reimbursement limit for the periods between February 2009 through February 2013 for an aggregate repayment of EUR33.3 million. As part of this settlement, we also agreed that the reimbursement limit will no longer be in effect as of February 2013. The settlement is pending approval by Italian regulatory authorities. Upon this approval and the execution of the settlement, we will dismiss our appeal. | ||
Average Manufacturer Price Litigation | ||
On September 6, 2011, we and several other pharmaceutical companies were served with a complaint originally filed under seal on October 28, 2008 in the United States District Court for the Eastern District of Pennsylvania by Ronald Streck (the relator) on behalf of himself and the United States, and the states of New Jersey, California, Rhode Island, Michigan, Montana, Wisconsin, Massachusetts, Tennessee, Oklahoma, Texas, Indiana, New Hampshire, North Carolina, Florida, Georgia, New Mexico, Illinois, New York, Virginia, Delaware, Hawaii, Louisiana, Connecticut, and Nevada (collectively, the States), and the District of Columbia, alleging violations of the False Claims Act, 31 U.S.C. § 3729 et seq. and state and District of Columbia statutory counterparts. The United States and the States have declined to intervene, and the District of Columbia has not intervened. The complaint as amended alleges that Biogen Idec and other defendants underreport Average Manufacturer Price (AMP) information to the Centers for Medicare and Medicaid Services, thereby causing Biogen Idec and the other defendants to underpay rebates under the Medicaid Drug Rebate Program. The relator alleges that the underreporting has occurred because Biogen Idec and other defendants improperly consider various payments that they make to drug wholesalers to be discounts under applicable federal law. On July 3, 2012, the court dismissed all state and federal claims as to AMP submissions before January 1, 2007, and dismissed the remaining state-law claims in whole as to claims under New Mexico law and in part as to claims under the laws of Delaware, New Hampshire, Texas, Connecticut, Georgia, Indiana, Montana, New York, Oklahoma, and Rhode Island. The court denied our motion to dismiss federal law claims as to AMP submissions after January 1, 2007. A trial has been set for December 2014. We have not formed an opinion that an unfavorable outcome under the remaining claims is either “probable” or “remote,” and are unable at this stage of the litigation to form an opinion as to the magnitude or range of any potential loss. We believe that we have good and valid defenses and intend to vigorously defend against the allegations. | ||
Government Review of Sales and Promotional Practices | ||
We have learned that state and federal governmental authorities are investigating our sales and promotional practices. We are cooperating with the government. | ||
Qui Tam Litigation | ||
In August, 2012, we learned that a relator, on behalf of the United States and certain states, filed a suit under seal on February 17, 2011 against us, Elan Corporation, plc, and Elan Pharmaceuticals, Inc. in the United States District Court for the Western District of Virginia. We have neither seen nor been served with the complaint, but understand that it was filed under the Federal False Claims Act. | ||
Canada Lease Dispute | ||
On April 18, 2008, First Real Properties Limited filed suit against Biogen Idec Canada Inc. (BI Canada) in the Superior Court of Justice in London, Ontario alleging breach of an offer for lease of property signed by BI Canada in 2007 and an unsigned proposed lease for the same property. In October 2013, the trial court ruled in our favor and dismissed the case. The plaintiff has filed an appeal, which is pending. In its decision, the trial court held that in the event of reversal on appeal, damages to the plaintiff should not exceed $2.6 million. We have not formed an opinion as to whether an unfavorable outcome in the plaintiff's appeal is either “probable” or “remote.” | ||
Knopp Neurosciences Dispute | ||
On February 25, 2013, Knopp filed suit against Biogen Idec International Holding Ltd. in the United States District Court for the District of Massachusetts, alleging that Biogen Idec wrongfully terminated its license agreement with Knopp for the development of a product for ALS. Knopp seeks damages and injunctive relief. Knopp had also sought the transfer of certain biosamples, but the court dismissed that claim with prejudice in June 2013. No trial date has been set for Knopp's remaining claims. We have not formed an opinion that an unfavorable outcome is either “probable” or “remote,” and are unable at this stage of the litigation to form an opinion as to the magnitude or range of any potential loss. We believe that we have good and valid defenses and are vigorously defending against the claims. | ||
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, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||||||
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 under these leases, net of amounts recognized in relation to our exiting the Weston facility, which terminate at various dates through 2028, amounted to $56.1 million in 2013. Rent expense was $49.0 million in 2012 and $46.2 million in 2011. 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, 2013, 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) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||
Minimum lease payments (1) | $ | 66.8 | $ | 64.2 | $ | 57 | $ | 54.9 | $ | 49.8 | $ | 384.4 | $ | 677.1 | ||||||||||||||
Less: income from subleases | — | (5.6 | ) | (6.0 | ) | (6.0 | ) | (6.3 | ) | (41.5 | ) | (65.4 | ) | |||||||||||||||
Net minimum lease payments | $ | 66.8 | $ | 58.6 | $ | 51 | $ | 48.9 | $ | 43.5 | $ | 342.9 | $ | 611.7 | ||||||||||||||
-1 | Includes future minimum rental commitments related to leases executed for two office buildings in Cambridge, Massachusetts, which completed construction in July and November 2013. The leases both have 15 year terms and we have options to extend the term of each lease for two additional five-year terms. Future minimum rental commitments under these leases will total approximately $340.0 million over the initial 15 year lease terms. | |||||||||||||||||||||||||||
As a result of our decision to relocate our corporate headquarters to Cambridge, Massachusetts, we vacated part of our Weston, Massachusetts facility in the fourth quarter of 2013. We incurred a charge of $27.2 million in connection with this move. This charge represents our remaining lease obligation for the vacated portion of our Weston facility, net of sublease income expected to be received. The term of our sublease to the vacated portion of our Weston facility started in January 2014 and will continue through the remaining term of our lease agreement. | ||||||||||||||||||||||||||||
For additional information related to these transactions, please read Note 11, Property, Plant and Equipment to these consolidated financial statements. | ||||||||||||||||||||||||||||
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, 2013 or 2012. | ||||||||||||||||||||||||||||
Tax Related Obligations | ||||||||||||||||||||||||||||
As of December 31, 2013, we have approximately $99.4 million of liabilities associated with uncertain tax positions. | ||||||||||||||||||||||||||||
Other Funding Commitments | ||||||||||||||||||||||||||||
During the year ended December 31, 2013, we contributed the remaining 13.5 billion South Korean won (approximately $12.4 million) to Samsung Bioepis to complete our obligation to contribute an aggregate of approximately 49.5 billion South Korean won (approximately $45.0 million) for our 15 percent ownership interest of Samsung Bioepis. For additional information related to our relationship with Samsung Bioepis, please read Note 20, Collaborative and Other Relationships to these consolidated financial statements. | ||||||||||||||||||||||||||||
As of December 31, 2013, we have funding commitments of up to approximately $14.0 million as part of our investment in biotechnology oriented companies and venture capital funds. | ||||||||||||||||||||||||||||
As of December 31, 2013, we have several on-going clinical studies in various clinical trial stages. Our most significant clinical trial expenditures are to clinical research organizations (CROs). The contracts with CROs are generally cancellable, with notice, at our option. We have recorded accrued expenses of approximately $28.2 million on our consolidated balance sheet for expenditures incurred by CROs as of December 31, 2013. We have approximately $424.1 million in cancellable future commitments based on existing CRO contracts as of December 31, 2013. | ||||||||||||||||||||||||||||
Contingent Development and Commercial Milestone Payments | ||||||||||||||||||||||||||||
Based on our development plans as of December 31, 2013, we have committed to make potential future milestone payments to third parties of up to approximately $2.0 billion as part of our various collaborations, including licensing and development programs. Payments under these agreements generally become due and payable only upon achievement of certain development, regulatory or commercial milestones. Because the achievement of these milestones had not occurred as of December 31, 2013, such contingencies have not been recorded in our financial statements. | ||||||||||||||||||||||||||||
TYSABRI Contingent Payments | ||||||||||||||||||||||||||||
On April 2, 2013, we acquired full ownership of, and strategic, commercial and decision-making rights to, TYSABRI from Elan. Under the terms of the acquisition agreement, we continued to share TYSABRI profits with Elan on an equal basis until April 30, 2013. We recorded the profit split for the month ended April 30, 2013, as cost of sales within our consolidated statements of income as we controlled TYSABRI effective April 2, 2013. Commencing May 1, 2013 and for the first twelve months thereafter, we will make contingent payments to Elan of 12% on worldwide net sales of TYSABRI and, thereafter, 18% on annual worldwide net sales up to $2.0 billion and 25% on annual worldwide net sales that exceed $2.0 billion. In 2014, the $2.0 billion threshold will be pro-rated for the portion of 2014 remaining after the first 12 months expires. Royalty payments to Elan and other third parties are recognized as cost of sales within our consolidated statements of income. | ||||||||||||||||||||||||||||
Contingent Consideration related to Business Combinations | ||||||||||||||||||||||||||||
In connection with our purchase of the noncontrolling interests in our joint venture investments in Biogen Dompé SRL and Biogen Dompé Switzerland GmbH and our acquisitions of Stromedix, Biogen Idec International Neuroscience GmbH (BIN), Biogen Idec Hemophilia Inc. (BIH), and Fumapharm AG, we agreed to make additional payments based upon the achievement of certain milestone events. These milestones may not be achieved. | ||||||||||||||||||||||||||||
As the acquisitions of the noncontrolling interests in our joint venture investments and our acquisitions of Stromedix and BIN, formerly Panima Pharmaceuticals AG, occurred after January 1, 2009, we record contingent consideration liabilities at their fair value on the acquisition date and revalue these obligations each reporting period. For additional information related to the acquisitions of the noncontrolling interests in our joint venture investments and our acquisition of Stromedix please read Note 2, Acquisitions, to these consolidated financial statements. | ||||||||||||||||||||||||||||
In connection with our acquisition of BIH, formerly Syntonix, in January 2007, we agreed to pay up to an additional $80.0 million if certain milestone events associated with the development of BIH’s lead product, ALPROLIX are achieved. The first $40.0 million contingent payment was achieved in the first quarter of 2010. An additional $20.0 million contingent payment will occur if prior to the tenth anniversary of the closing date, the FDA grants approval of a Biologic License Application for ALPROLIX. A second $20.0 million contingent payment will occur if prior to the tenth anniversary of the closing date, a marketing authorization is granted by the EMA for ALPROLIX. For additional information related to our acquisition of BIH transactions please read Note 2, Acquisitions to these consolidated financial statements. | ||||||||||||||||||||||||||||
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 is 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 the following additional contingent payments to former shareholders of Fumapharm AG 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 twelve month period, as defined in the acquisition agreement: | ||||||||||||||||||||||||||||
Cumulative Sales Level | ||||||||||||||||||||||||||||
Prior 12 Month Sales | $500M | $1.0B | $2.0B | $3.0B | Each additional $1.0B up to $20.0B | |||||||||||||||||||||||
Payment Amount (In millions) | ||||||||||||||||||||||||||||
< $500 million | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
$500 million - $1.0 billion | 22 | 25 | 50 | 50 | 50 | |||||||||||||||||||||||
$1.0 billion - $1.5 billion | — | 50 | 100 | 100 | 100 | |||||||||||||||||||||||
$1.5 billion - $2.0 billion | — | — | 150 | 150 | 150 | |||||||||||||||||||||||
$2.0 billion - $2.5 billion | — | — | 200 | 200 | 200 | |||||||||||||||||||||||
$2.5 billion - $3.0 billion | — | — | — | 250 | 250 | |||||||||||||||||||||||
> $3.0 billion | — | — | — | — | 300 | |||||||||||||||||||||||
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. During 2013, we accrued the $25.0 million contingent payment as we reached the $1.0 billion cumulative sales level related to the Fumapharm Products. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2013 | |
Guarantees [Abstract] | ' |
Guarantees | ' |
Guarantees | |
As of December 31, 2013 and 2012, 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, 2013 and 2012. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [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 $39.3 million, $32.8 million and $24.8 million for the years ended December 31, 2013, 2012 and 2011, 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, which 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, 2013 and 2012 totaled approximately $84.7 million and $66.9 million, respectively, and are included in other long-term liabilities within the accompanying 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 Plan | |
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 in which 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 Swiss government and was 1.5% in 2013, 1.5% in 2012 and 2.0% in 2011, respectively. Under this 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, 2013 and 2012, the Plan had an unfunded net pension obligation of approximately $22.6 million and $20.5 million, respectively, and plan assets which totaled approximately $38.1 million and $28.1 million, respectively. In 2013, 2012 and 2011, we recognized expense totaling $10.9 million, $3.8 million and $3.6 million, respectively, related to our Swiss plan. | |
The obligations under the German plan are unfunded and totaled $20.0 million and $15.9 million as of December 31, 2013 and 2012, respectively. Net periodic pension cost related to the German plan totaled $3.3 million, $1.9 million and $1.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||||||
We operate as one operating segment, which is the business of discovering, developing, manufacturing and marketing therapies for the treatment of multiple sclerosis and other autoimmune disorders, neurodegenerative diseases and hemophilia and, therefore, our chief operating decision-maker manages the operations of our company as a single operating segment. 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. | ||||||||||||||||||||||||||||||||||||
Revenue by product is summarized as follows: | ||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
(In millions) | United | Rest of | Total | United | Rest of | Total | United | Rest of | Total | |||||||||||||||||||||||||||
States | World | States | World | States | World | |||||||||||||||||||||||||||||||
AVONEX | $ | 1,902.40 | $ | 1,103.10 | $ | 3,005.50 | $ | 1,793.70 | $ | 1,119.40 | $ | 2,913.10 | $ | 1,628.30 | $ | 1,058.30 | $ | 2,686.60 | ||||||||||||||||||
TYSABRI | 814.2 | 712.3 | 1,526.50 | 383.1 | 752.8 | 1,135.90 | 326.5 | 753 | 1,079.50 | |||||||||||||||||||||||||||
TECFIDERA | 864.4 | 11.7 | 876.1 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other | — | 134.2 | 134.2 | — | 117.1 | 117.1 | — | 70 | 70 | |||||||||||||||||||||||||||
Total product revenues | $ | 3,581.00 | $ | 1,961.30 | $ | 5,542.30 | $ | 2,176.80 | $ | 1,989.30 | $ | 4,166.10 | $ | 1,954.80 | $ | 1,881.30 | $ | 3,836.10 | ||||||||||||||||||
Geographic Information | ||||||||||||||||||||||||||||||||||||
The following tables contain certain financial information by geographic area: | ||||||||||||||||||||||||||||||||||||
December 31, 2013 (In millions) | U.S. | Europe(1) | Germany | Asia | Other | Total | ||||||||||||||||||||||||||||||
Product revenues from external customers | $ | 3,581.00 | $ | 1,170.20 | $ | 417.7 | $ | 93.2 | $ | 280.2 | $ | 5,542.30 | ||||||||||||||||||||||||
Revenues from unconsolidated joint business | $ | 1,087.30 | $ | 1.6 | $ | — | $ | 3.2 | $ | 33.9 | $ | 1,126.00 | ||||||||||||||||||||||||
Other revenues from external customers | $ | 193.5 | $ | 26.1 | $ | 1.2 | $ | 43.1 | $ | — | $ | 263.9 | ||||||||||||||||||||||||
Long-lived assets | $ | 984.4 | $ | 758.3 | $ | 2.5 | $ | 2.1 | $ | 3.3 | $ | 1,750.70 | ||||||||||||||||||||||||
December 31, 2012 (In millions) | U.S. | Europe(1) | Germany | Asia | Other | Total | ||||||||||||||||||||||||||||||
Product revenues from external customers | $ | 2,176.80 | $ | 1,216.20 | $ | 409.2 | $ | 93.2 | $ | 270.7 | $ | 4,166.10 | ||||||||||||||||||||||||
Revenues from unconsolidated joint business | $ | 1,033.30 | $ | 14.3 | $ | — | $ | 27.5 | $ | 62.8 | $ | 1,137.90 | ||||||||||||||||||||||||
Other revenues from external customers | $ | 170.2 | $ | 27.9 | $ | 1.1 | $ | 13.3 | $ | — | $ | 212.5 | ||||||||||||||||||||||||
Long-lived assets | $ | 996.6 | $ | 738.6 | $ | 1.9 | $ | 2.9 | $ | 2.2 | $ | 1,742.20 | ||||||||||||||||||||||||
December 31, 2011 (In millions) | U.S. | Europe(1) | Germany | Asia | Other | Total | ||||||||||||||||||||||||||||||
Product revenues from external customers | $ | 1,954.80 | $ | 1,163.30 | $ | 377.5 | $ | 88.7 | $ | 251.8 | $ | 3,836.10 | ||||||||||||||||||||||||
Revenues from unconsolidated joint business | $ | 878.8 | $ | 29.9 | $ | — | $ | 30.7 | $ | 57.2 | $ | 996.6 | ||||||||||||||||||||||||
Other revenues from external customers | $ | 187 | $ | 28.3 | $ | 0.6 | $ | — | $ | — | $ | 215.9 | ||||||||||||||||||||||||
Long-lived assets | $ | 1,012.50 | $ | 816.6 | $ | 1.6 | $ | 5.3 | $ | 2.4 | $ | 1,838.40 | ||||||||||||||||||||||||
-1 | Represents amounts related to Europe less those attributable to Germany. | |||||||||||||||||||||||||||||||||||
Revenues from Unconsolidated Joint Business | ||||||||||||||||||||||||||||||||||||
Approximately 16%, 21% and 20% of our total revenues in 2013, 2012 and 2011, respectively, are derived from our joint business arrangement with Genentech. For additional information related to our collaboration with Genentech, please read Note 20, Collaborative and Other Relationships to these consolidated financial statements. | ||||||||||||||||||||||||||||||||||||
Significant Customers | ||||||||||||||||||||||||||||||||||||
We recorded revenue from two wholesale distributors accounting for 32% and 24% of gross product revenues in 2013, 20% and 10% of gross product revenue in 2012, and 18% and 10% of gross product revenues in 2011. | ||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||
As of December 31, 2013, 2012 and 2011, approximately $731.1 million, $713.4 million and $668.5 million, respectively, of our long-lived assets were related to our manufacturing facilities in Denmark. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||||||
Quarterly Financial Data (Unaudited) | ||||||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
2013 | (a) | (b) | (b) (c) | (b) | ||||||||||||||||
Product revenues | $ | 1,095.80 | $ | 1,385.90 | $ | 1,453.60 | $ | 1,607.10 | $ | 5,542.30 | ||||||||||
Unconsolidated joint business revenues | $ | 264.6 | $ | 288.8 | $ | 303.2 | $ | 269.4 | $ | 1,126.00 | ||||||||||
Other revenues | $ | 54.7 | $ | 48.8 | $ | 71 | $ | 89.4 | $ | 263.9 | ||||||||||
Total revenues | $ | 1,415.10 | $ | 1,723.50 | $ | 1,827.80 | $ | 1,965.90 | $ | 6,932.20 | ||||||||||
Gross profit | $ | 1,281.40 | $ | 1,492.80 | $ | 1,593.10 | $ | 1,707.30 | $ | 6,074.50 | ||||||||||
Net income | $ | 426.7 | $ | 490.7 | $ | 487.6 | $ | 457.3 | $ | 1,862.30 | ||||||||||
Net income attributable to Biogen Idec Inc. | $ | 426.7 | $ | 490.7 | $ | 487.6 | $ | 457.3 | $ | 1,862.30 | ||||||||||
Basic earnings per share attributable to Biogen Idec Inc. | $ | 1.8 | $ | 2.07 | $ | 2.06 | $ | 1.94 | $ | 7.86 | ||||||||||
Diluted earnings per share attributable to Biogen Idec Inc. | $ | 1.79 | $ | 2.06 | $ | 2.05 | $ | 1.92 | $ | 7.81 | ||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
2012 | (d) | (e) (f) | ||||||||||||||||||
Product revenues | $ | 975.4 | $ | 1,076.80 | $ | 1,039.10 | $ | 1,074.70 | $ | 4,166.10 | ||||||||||
Unconsolidated joint business revenues | $ | 284.6 | $ | 284.6 | $ | 287.8 | $ | 280.9 | $ | 1,137.90 | ||||||||||
Other revenues | $ | 32 | $ | 59.6 | $ | 58.6 | $ | 62.3 | $ | 212.5 | ||||||||||
Total revenues | $ | 1,292.00 | $ | 1,421.00 | $ | 1,385.50 | $ | 1,417.90 | $ | 5,516.50 | ||||||||||
Gross profit | $ | 1,158.80 | $ | 1,281.80 | $ | 1,246.20 | $ | 1,284.10 | $ | 4,971.00 | ||||||||||
Net income | $ | 302.4 | $ | 387.1 | $ | 398.4 | $ | 292.1 | $ | 1,380.00 | ||||||||||
Net income attributable to Biogen Idec Inc. | $ | 302.7 | $ | 386.8 | $ | 398.4 | $ | 292.1 | $ | 1,380.00 | ||||||||||
Basic earnings per share attributable to Biogen Idec Inc. | $ | 1.26 | $ | 1.62 | $ | 1.68 | $ | 1.24 | $ | 5.8 | ||||||||||
Diluted earnings per share attributable to Biogen Idec Inc. | $ | 1.25 | $ | 1.61 | $ | 1.67 | $ | 1.23 | $ | 5.76 | ||||||||||
Full year amounts may not sum due to rounding. | ||||||||||||||||||||
(a) | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | |||||||||||||||||||
(b) | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | |||||||||||||||||||
(c) | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | |||||||||||||||||||
(d) | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | |||||||||||||||||||
(e) | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | |||||||||||||||||||
(f) | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. |
Subsequent_Events_Subsequent_E
Subsequent Events Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Sangamo BioSciences, Inc. | |
On January 9, 2014, we entered into an exclusive worldwide collaboration and license agreement with Sangamo BioSciences, Inc. (Sangamo) under which both companies will develop and commercialize product candidates for the treatment of two inherited blood disorders, sickle cell disease and beta-thalassemia. The collaboration is currently in the research stage of development. | |
Under the terms of the agreement, we will provide Sangamo with an upfront payment of $20.0 million in cash, with additional payments of up to $300.0 million based on the achievement of certain development and regulatory milestones, plus royalties based on sales. Under this arrangement, Sangamo will be responsible for identifying a product candidate for the treatment of beta-thalassemia and advancing that candidate through a completed Phase 1 human clinical trial, at which point we will assume responsibility for development. We will jointly develop a sickle cell disease candidate through the potential filing on an investigative new drug application, after which we will assume clinical responsibilities. We will lead the global development and commercialization efforts and Sangamo will have the option to assume co-promotion responsibilities in the U.S. | |
Completion of the transaction is subject to customary closing conditions, including antitrust clearance in the U.S. under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Business Overview | ' | |
Biogen Idec is a global biotechnology company focused on discovering, developing, manufacturing and marketing therapies for the treatment of multiple sclerosis (MS) and other autoimmune disorders, neurodegenerative diseases and hemophilia. We also collaborate on the development and commercialization of RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia and other conditions and share profits and losses for GAZYVA for the treatment of chronic lymphocytic leukemia. | ||
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 and therefore required to consolidate, 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 our partner(s) to collaborations and other arrangements. | ||
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 and judgments and methodologies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. | ||
Revenue Recognition | ' | |
We recognize revenue 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. Sales of TYSABRI in the U.S. were previously recognized on the “sell-through” model, upon shipment of the product by Elan to its third party distributor rather than upon shipment to Elan. As a result of our acquisition of TYSABRI rights from Elan on April 2, 2013, we began recognizing sales of TYSABRI in the U.S. when title and risk of loss passed to the same third party distributor. Product revenues are recorded net of applicable reserves for discounts and allowances. | ||
Reserves for Discounts and Allowances | ||
We establish reserves for trade term discounts, wholesaler incentives, Medicaid rebates, Veterans Administration (VA) and Public Health Service (PHS) discounts, managed care rebates, product returns and other governmental rebates or applicable allowances, including those associated with the implementation of pricing actions in certain of the international markets in which we operate. Reserves established for these discounts and allowances are classified as reductions of accounts receivable (if the amount is payable to our direct customer) or a liability (if the amount is payable to a party other than our customer). These reserves are based on estimates of the amounts earned or to be claimed on the related sales. Our estimates take into consideration our historical experience, current contractual and statutory requirements, specific known market events and trends, industry date 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 experience, including the timing of customer payments. | ||
Contractual adjustments primarily relate to Medicaid and managed care rebates, VA and PHS discounts 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 consists 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 that are primarily based on attaining contractually specified sales volumes and growth 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. | |
• | Other governmental rebates or applicable allowances primarily relate to mandatory rebates and discounts in 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. To the extent we can demonstrate a separable benefit and fair value for these services, we classify these payments within selling, general and administrative expenses. | ||
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 within our consolidated statement of income. | ||
We also distribute no-charge product to qualifying patients under our patient assistance and patient replacement goods program. This program is administered through one of our distribution partners, which ships product for qualifying patients from its own inventory received from us. Gross revenue and the related reserves are not recorded on product shipped under this program and cost of sales is recorded when the product is shipped. | ||
Revenues from Unconsolidated Joint Business | ||
We collaborate with Genentech on the development and commercialization of RITUXAN. In addition, in the U.S. we share operating profits and losses relating to GAZYVA with Genentech. The Roche Group and its sub-licensees maintain sole responsibility for the development, manufacturing and commercialization of GAZYVA in the U.S. For additional information related to our collaboration with Genentech, please read Note 20, Collaborative and Other Relationships, to these consolidated financial statements. Revenues from unconsolidated joint business consists of (1) our share of pre-tax profits in the U.S. for RITUXAN and GAZYVA; (2) reimbursement of our selling and development expenses in the U.S. for RITUXAN; and (3) revenue on sales in the rest of world for RITUXAN, which consist of our share of pre-tax co-promotion profits in Canada and royalty revenue on sales outside the U.S. and Canada by F. Hoffmann-La Roche Ltd. (Roche) and its sublicensees. Pre-tax co-promotion profits on RITUXAN are calculated and paid to us by Genentech in the U.S. and by Roche in Canada. Pre-tax co-promotion profits consist of U.S. and Canadian net sales to third-party customers less the cost to manufacture, third-party royalty expenses, distribution, selling, and marketing expenses, and joint development expenses incurred by Genentech, Roche and us. We record our share of the pretax co-promotion profits on RITUXAN in Canada and royalty revenues on sales outside the U.S. on a cash basis as we do not have access to the information or ability to estimate these profits or royalty revenue in the period incurred. Additionally, our share of the pre-tax profits on RITUXAN and GAZYVA in the U.S. includes estimates made by Genentech and those estimates are subject to change. Actual results may ultimately differ from our estimates. | ||
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. 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. If we are unable to reasonably estimate royalty revenue or do not have access to the information, then we record royalty revenues on a cash basis. | ||
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 allocate revenue to the various elements based on their selling price. 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. Revenue allocated to an individual element is recognized when all other revenue recognition criteria are met for that element. | ||
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, 2013 and 2012, respectively. | ||
We also maintain venture capital investments classified as Level 3 whose fair value is initially measured at transaction prices and subsequently valued using the pricing of recent financing or by reviewing the underlying economic fundamentals and liquidation value of the companies. These investments include investments in certain biotechnology oriented venture capital funds which primarily invest in small privately-owned, venture-backed biotechnology companies. The fair value of our investments in these venture capital funds has been estimated using the net asset value of the fund. Gains and losses (realized and unrealized) included in earnings for the period are reported in other income (expense), net. The investments cannot be redeemed within the funds. Distributions from each fund will be received as the underlying investments of the fund are liquidated. We expect to liquidate a portion of these funds over the next three to five years. We apply judgments and estimates when we validate the prices provided by third parties. While we believe the valuation methodologies are appropriate, the use of valuation methodologies is highly judgmental and changes in methodologies can have a material impact on our results of operations. | ||
Other | ||
The carrying amounts reflected in the consolidated balance sheets for cash equivalents, current accounts receivable, due from unconsolidated joint business, 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, 2013 and 2012, 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 credit worthiness of our large 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. | ||
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 within our consolidated statement 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 limited 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 United States and Europe and have standard payment terms which generally require payment within 30 to 90 days. We monitor the financial performance and credit worthiness of our large 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. For additional information related to this concentration of credit risk, please read Note 4, Accounts Receivable to these consolidated financial statements. | ||
As of December 31, 2013, two wholesale distributors individually accounted for approximately 34.5% and 15.7% of consolidated receivables, respectively, and as of December 31, 2012, one wholesale distributor accounted for approximately 14.5% of consolidated receivables. The increase in our concentration of consolidated receivables balances during 2013 was due in part to our acquisition of TYSABRI rights from Elan, and our resulting assumption of the relationship with the one global distributor of that product. | ||
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 within our consolidated balance sheet. 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 within our consolidated balance sheet. | ||
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 within 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 within 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 collaboration or other business relationship. Under the equity method of accounting, we will record within our results of operations our share of income or loss of the other company. | ||
Inventory | ' | |
Inventories are stated at the lower of cost or market with cost determined in a manner that approximates the first-in, first-out (FIFO) method. Inventory that can be used in either the production of clinical or commercial products is expensed as research and development costs when selected 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 which 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, excluding amortization of acquired intangible assets. | ||
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 on our consolidated balance sheet and include any resulting gain or loss in our consolidated statement 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 within 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 within our consolidated statements of income. | ||
Acquired and in-licensed rights and patents primarily relates to our acquisition of TYSABRI rights 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 TYSABRI and AVONEX using the economic consumption method based on revenue generated from the products underlying the related intangible assets. An analysis of the anticipated lifetime revenues of 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 TYSABRI or AVONEX. This analysis serves as the basis for the calculation of our economic consumption models used for these products. This analysis is based upon certain assumptions that we evaluate on a periodic basis, such as the anticipated product sales of AVONEX and TYSABRI, the expected impact of competitor products and our own commercial and pipeline product candidates, including TECFIDERA and PLEGRIDY, and the issuance of new patents or the extension of existing patents. | ||
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 revenue from the projects, and discounting the net cash flows to present value. The revenue 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 an asset or group of assets that do not meet the definition of a business under applicable accounting standards, 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. | ||
We review amounts capitalized as acquired IPR&D for impairment at least annually, as of October 31, and whenever events or changes in circumstances indicate that the carrying value of the assets might not be recoverable. | ||
When performing our impairment assessment, we have the option to first assess qualitative factors to determine whether it is necessary to recalculate the fair value of our acquired IPR&D. If we elect this option and believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of our acquired IPR&D is less than its carrying amount, 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. Alternatively, we may elect to not first assess qualitative factors and immediately recalculate the fair value of our acquired IPR&D. | ||
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 have the option to first assess qualitative factors to determine whether it is necessary to perform the two-step impairment test. If we elect this option and believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of our reporting unit is less than its carrying amount, the quantitative two-step impairment test is required; otherwise, no further testing is required. Alternatively, we may elect to not first assess qualitative factors and immediately perform the quantitative two-step impairment test. In the first step, 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, then the second step of the impairment test is performed in order to determine the implied fair value of our reporting unit’s goodwill. If the carrying value of our reporting unit’s goodwill exceeds its implied fair value, then 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 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. 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 these contingent consideration obligations each reporting period. Changes in the fair value of our contingent consideration obligations are recognized within 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 determining 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 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 differs 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 net 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 within 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 which have included stock options, restricted stock units which vest based on stock performance known as market stock units (MSUs), performance-vested restricted stock units which settle in cash (CSPSs), performance-vested restricted stock units which settle in shares (PVRSUs), time-vested restricted stock units (RSUs) 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 on which the employee is 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. Compensation expense for MSUs is recognized over the applicable service period. | ||
The fair values of our RSUs are based on the market value of our stock on the date of grant. Compensation expense for RSUs is recognized over the applicable vesting period. | ||
We apply an accelerated attribution method to recognize stock based compensation expense, 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 will not be adjusted to reflect the actual units earned. | ||
We apply an accelerated attribution method to recognize stock based compensation expense when accounting for our CSPSs and the fair value of the liability is remeasured at the end of each reporting period through expected cash settlement. Compensation expense associated with CSPSs is 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. | ||
We apply an accelerated attribution method to recognize stock based compensation expense when accounting for our PVRSUs. The number of units reflected as granted represents the target number of shares that are eligible to vest in full or in part and are earned subject to the attainment of certain performance criteria established at the beginning of the performance period. Compensation expense associated with these units is initially based upon the number of shares expected to vest 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 quarterly to reflect subsequent changes in the estimated outcome of performance-related conditions until the date results are determined. | ||
The purchase price of common stock under our ESPP is equal to 85% of the lower of (i) the market value per share of the common stock on the participant’s entry date into an offering period or (ii) the 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, including compensation and benefits, facilities expenses, overhead expenses, clinical trial and related clinical manufacturing expenses, write-offs of pre-approved inventory that was previously capitalized that are determined to be no longer realizable, fees paid to clinical research organizations (CROs) 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 on 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 within 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 unconsolidated joint business revenues. | ||
For collaborations with commercialized products, if we are the principal, we record revenue and the corresponding operating costs in their respective line items within 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 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, 2013, 2012 and 2011, advertising costs totaled $72.7 million, $54.3 million and $45.3 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 the consolidated statement 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 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 revise our estimates. These revisions in the estimates of the potential liabilities could have a material impact on our consolidated results of operations and financial position. | ||
Restructuring Charges | ' | |
We have made estimates and judgments regarding the amount and timing of our restructuring expense and liability, including current and future period termination benefits, lease termination costs, and other exit costs to be incurred when related actions take place. We have also assessed the recoverability of certain long-lived assets employed in the business and, in certain instances shortened the expected useful life of the assets based on changes in their expected use. When we determine that the useful lives of assets are shorter than we had originally estimated, we record additional depreciation to reflect the assets’ new shorter useful lives. Severance and other related costs and asset-related charges are reflected within our consolidated statement of income as a component of total restructuring charges incurred. Actual results may differ from these estimates. | ||
Earnings per Share | ' | |
Basic earnings per share is computed using the two-class method. Under the two-class method, undistributed net income is allocated to common stock and participating securities based on their respective rights to share in dividends. We have determined that our preferred shares meet the definition of participating securities and, to the extent any are outstanding during a period, have allocated a portion of net income to our preferred shares on a pro rata basis. Net income allocated to preferred shares is excluded from the calculation of basic earnings per share. | ||
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 are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. | ||
ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scoping of Disclosures about Offsetting Assets and Liabilities (ASU 2013-01) clarifies the scope of ASU No. 2011-11 to apply to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. This ASU was effective for fiscal years beginning on or after January 1, 2013 and interim periods within those annual periods. We adopted this standard in the first quarter of 2013 and presented this information in Note 10, Derivative Instruments to these consolidated financial statements. The adoption of this standard did not have an impact on our financial position or results of operations. | ||
ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02) requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This ASU was effective for reporting periods beginning after December 15, 2012. We adopted this standard in the first quarter of 2013 and presented this information in Note 14, Accumulated Other Comprehensive Income (Loss) to these consolidated financial statements. The adoption of this standard did not have an impact on our financial position or results of operations. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
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 |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Receivables [Abstract] | ' | |||||||||||
Net accounts receivable balances from product sales in selected European countries | ' | |||||||||||
As of December 31, 2013 | ||||||||||||
(In millions) | Current | Non-Current | Total | |||||||||
Balance Included | Balance Included | |||||||||||
within Accounts | within Investments | |||||||||||
Receivable, net | and Other Assets | |||||||||||
Spain | $ | 113.3 | $ | 6.8 | $ | 120.1 | ||||||
Italy | $ | 76.1 | $ | 2.4 | $ | 78.5 | ||||||
Portugal | $ | 10.4 | $ | 8.2 | $ | 18.6 | ||||||
As of December 31, 2012 | ||||||||||||
(In millions) | Current | Non-Current | Total | |||||||||
Balance Included | Balance Included | |||||||||||
within Accounts | within Investments | |||||||||||
Receivable, net | and Other Assets | |||||||||||
Spain | $ | 78.9 | $ | — | $ | 78.9 | ||||||
Italy | $ | 94.4 | $ | 10.2 | $ | 104.6 | ||||||
Portugal | $ | 16.6 | $ | 7.4 | $ | 24 | ||||||
Revenue_Reserves_Tables
Revenue Reserves (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Reserves for Discounts and Allowances [Abstract] | ' | |||||||||||||||
Analysis of the change in reserves | ' | |||||||||||||||
(In millions) | Discounts | Contractual | Returns | Total | ||||||||||||
Adjustments | ||||||||||||||||
2013 | ||||||||||||||||
Beginning balance | $ | 14.3 | $ | 196 | $ | 26.8 | $ | 237.1 | ||||||||
Current provisions relating to sales in current year | 236.3 | 851.4 | 22.9 | 1,110.60 | ||||||||||||
Adjustments relating to prior years | (0.7 | ) | (16.4 | ) | 1.1 | (16.0 | ) | |||||||||
Payments/returns relating to sales in current year | (189.7 | ) | (560.4 | ) | — | (750.1 | ) | |||||||||
Payments/returns relating to sales in prior years | (13.2 | ) | (135.0 | ) | (17.1 | ) | (165.3 | ) | ||||||||
Ending balance | $ | 47 | $ | 335.6 | $ | 33.7 | $ | 416.3 | ||||||||
(In millions) | Discounts | Contractual | Returns | Total | ||||||||||||
Adjustments | ||||||||||||||||
2012 | ||||||||||||||||
Beginning balance | $ | 11.9 | $ | 120 | $ | 23.7 | $ | 155.6 | ||||||||
Current provisions relating to sales in current year | 96.5 | 534.2 | 22 | 652.7 | ||||||||||||
Adjustments relating to prior years | (0.3 | ) | (4.7 | ) | (0.1 | ) | (5.1 | ) | ||||||||
Payments/returns relating to sales in current year | (83.6 | ) | (363.2 | ) | (4.3 | ) | (451.1 | ) | ||||||||
Payments/returns relating to sales in prior years | (10.2 | ) | (90.3 | ) | (14.5 | ) | (115.0 | ) | ||||||||
Ending balance | $ | 14.3 | $ | 196 | $ | 26.8 | $ | 237.1 | ||||||||
(In millions) | Discounts | Contractual | Returns | Total | ||||||||||||
Adjustments | ||||||||||||||||
2011 | ||||||||||||||||
Beginning balance | $ | 13.9 | $ | 107 | $ | 21.1 | $ | 142 | ||||||||
Current provisions relating to sales in current year | 84.3 | 372.1 | 15.7 | 472.1 | ||||||||||||
Adjustments relating to prior years | — | (14.0 | ) | (0.9 | ) | (14.9 | ) | |||||||||
Payments/returns relating to sales in current year | (73.3 | ) | (277.0 | ) | (0.4 | ) | (350.7 | ) | ||||||||
Payments/returns relating to sales in prior years | (13.0 | ) | (68.1 | ) | (11.8 | ) | (92.9 | ) | ||||||||
Ending balance | $ | 11.9 | $ | 120 | $ | 23.7 | $ | 155.6 | ||||||||
Total reserves, included in consolidated balance sheets | ' | |||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Reduction of accounts receivable | $ | 151.4 | $ | 46.1 | ||||||||||||
Component of accrued expenses and other | 264.9 | 191 | ||||||||||||||
Total reserves | $ | 416.3 | $ | 237.1 | ||||||||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of inventory | ' | |||||||
As of December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Raw materials | $ | 115 | $ | 101.8 | ||||
Work in process | 435.4 | 244.9 | ||||||
Finished goods | 108.6 | 100.7 | ||||||
Total inventory | $ | 659 | $ | 447.4 | ||||
Components of inventory by product | ' | |||||||
As of December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
AVONEX | $ | 176.9 | $ | 144 | ||||
TYSABRI | 170.9 | 114.8 | ||||||
TECFIDERA | 33.6 | — | ||||||
Other | 162.6 | 86.8 | ||||||
Total finished goods and work in process | 544 | 345.6 | ||||||
Raw materials | 115 | 101.8 | ||||||
Total inventory | $ | 659 | $ | 447.4 | ||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Intangible assets | ' | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||
(In millions) | Estimated Life | Cost | Accumulated | Net | Cost | Accumulated | Net | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||
Out-licensed patents | 13-23 years | $ | 578 | $ | (450.8 | ) | $ | 127.2 | $ | 578 | $ | (421.0 | ) | $ | 157 | |||||||||||
Developed technology | 15-23 years | 3,005.30 | (2,165.4 | ) | 839.9 | 3,005.30 | (1,965.7 | ) | 1,039.60 | |||||||||||||||||
In-process research and development | Indefinite until commercialization | 327.4 | — | 327.4 | 330.1 | — | 330.1 | |||||||||||||||||||
Trademarks and tradenames | Indefinite | 64 | — | 64 | 64 | — | 64 | |||||||||||||||||||
Acquired and in-licensed rights and patents | 6-17 years | 3,240.00 | (123.8 | ) | 3,116.20 | 53.7 | (12.9 | ) | 40.8 | |||||||||||||||||
Total intangible assets | $ | 7,214.70 | $ | (2,740.0 | ) | $ | 4,474.70 | $ | 4,031.10 | $ | (2,399.6 | ) | $ | 1,631.50 | ||||||||||||
Estimated future amortization of intangible assets | ' | |||||||||||||||||||||||||
(In millions) | As of December 31, 2013 | |||||||||||||||||||||||||
2014 | $ | 426.3 | ||||||||||||||||||||||||
2015 | 336.4 | |||||||||||||||||||||||||
2016 | 322.7 | |||||||||||||||||||||||||
2017 | 327.5 | |||||||||||||||||||||||||
2018 | 330.2 | |||||||||||||||||||||||||
Total | $ | 1,743.10 | ||||||||||||||||||||||||
Summary of roll forward of the changes in goodwill | ' | |||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||||||||||||
Goodwill, beginning of year | $ | 1,201.30 | $ | 1,146.30 | ||||||||||||||||||||||
Increase to goodwill | 35.7 | 48.2 | ||||||||||||||||||||||||
Other | (4.1 | ) | 6.8 | |||||||||||||||||||||||
Goodwill, end of year | $ | 1,232.90 | $ | 1,201.30 | ||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Summary of assets and liabilities recorded at fair value | ' | |||||||||||||||
(In millions) | As of | Quoted | Significant | Significant | ||||||||||||
December 31, | Prices in | Other | Unobservable | |||||||||||||
2013 | Active | Observable | Inputs | |||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 424.7 | $ | — | $ | 424.7 | $ | — | ||||||||
Marketable debt securities: | ||||||||||||||||
Corporate debt securities | 439.8 | — | 439.8 | — | ||||||||||||
Government securities | 674.7 | — | 674.7 | — | ||||||||||||
Mortgage and other asset backed securities | 131.4 | — | 131.4 | — | ||||||||||||
Marketable equity securities | 11.2 | 11.2 | — | — | ||||||||||||
Venture capital investments | 21.9 | — | — | 21.9 | ||||||||||||
Derivative contracts | 3.8 | — | 3.8 | — | ||||||||||||
Plan assets for deferred compensation | 22.7 | — | 22.7 | — | ||||||||||||
Total | $ | 1,730.20 | $ | 11.2 | $ | 1,697.10 | $ | 21.9 | ||||||||
Liabilities: | ||||||||||||||||
Derivative contracts | $ | 23.5 | $ | — | $ | 23.5 | $ | — | ||||||||
Contingent consideration obligations | 280.9 | — | — | 280.9 | ||||||||||||
Total | $ | 304.4 | $ | — | $ | 23.5 | $ | 280.9 | ||||||||
(In millions) | As of | Quoted | Significant | Significant | ||||||||||||
December 31, | Prices | Other | Unobservable | |||||||||||||
2012 | in Active | Observable | Inputs | |||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 439.4 | $ | — | $ | 439.4 | $ | — | ||||||||
Marketable debt securities: | ||||||||||||||||
Corporate debt securities | 1,001.00 | — | 1,001.00 | — | ||||||||||||
Government securities | 1,657.80 | — | 1,657.80 | — | ||||||||||||
Mortgage and other asset backed securities | 512.9 | — | 512.9 | — | ||||||||||||
Marketable equity securities | 9 | 9 | — | — | ||||||||||||
Venture capital investments | 20.3 | — | — | 20.3 | ||||||||||||
Derivative contracts | 1.8 | — | 1.8 | — | ||||||||||||
Plan assets for deferred compensation | 14.3 | — | 14.3 | — | ||||||||||||
Total | $ | 3,656.50 | $ | 9 | $ | 3,627.20 | $ | 20.3 | ||||||||
Liabilities: | ||||||||||||||||
Derivative contracts | $ | 14.4 | $ | — | $ | 14.4 | $ | — | ||||||||
Contingent consideration obligations | 293.9 | — | — | 293.9 | ||||||||||||
Total | $ | 308.3 | $ | — | $ | 14.4 | $ | 293.9 | ||||||||
Fair value of venture capital investments | ' | |||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Fair value, beginning of year | $ | 20.3 | $ | 23.5 | ||||||||||||
Unrealized gains included in earnings | 10.5 | 5.4 | ||||||||||||||
Unrealized losses included in earnings | (6.3 | ) | (9.2 | ) | ||||||||||||
Purchases | 0.7 | 0.6 | ||||||||||||||
Settlements | (3.3 | ) | — | |||||||||||||
Fair value, end of year | $ | 21.9 | $ | 20.3 | ||||||||||||
Summary of fair and carrying value of debt instruments | ' | |||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Notes payable to Fumedica | $ | 17.5 | $ | 20 | ||||||||||||
Credit Facility | — | — | ||||||||||||||
6.0% Senior Notes due March 1, 2013 | — | 453.7 | ||||||||||||||
6.875% Senior Notes due March 1, 2018 | 647.9 | 681.6 | ||||||||||||||
Total | $ | 665.4 | $ | 1,155.30 | ||||||||||||
Fair value of contingent consideration obligations | ' | |||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Fair value, beginning of year | $ | 293.9 | $ | 151 | ||||||||||||
Additions | — | 122.2 | ||||||||||||||
Changes in fair value | (0.5 | ) | 27.2 | |||||||||||||
Payments | (12.5 | ) | (6.5 | ) | ||||||||||||
Fair value, end of year | $ | 280.9 | $ | 293.9 | ||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||
Marketable securities including strategic investments | ' | |||||||||||||||
As of December 31, 2013 (In millions) | Fair | Gross | Gross | Amortized | ||||||||||||
Value | Unrealized | Unrealized | Cost | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale: | ||||||||||||||||
Corporate debt securities | ||||||||||||||||
Current | $ | 100.7 | $ | — | $ | — | $ | 100.7 | ||||||||
Non-current | 339.1 | 0.4 | (0.1 | ) | 338.8 | |||||||||||
Government securities | ||||||||||||||||
Current | 519.5 | — | — | 519.5 | ||||||||||||
Non-current | 155.2 | — | (0.1 | ) | 155.3 | |||||||||||
Mortgage and other asset backed securities | ||||||||||||||||
Current | — | — | — | — | ||||||||||||
Non-current | 131.4 | — | (0.1 | ) | 131.5 | |||||||||||
Total marketable debt securities | $ | 1,245.90 | $ | 0.4 | $ | (0.3 | ) | $ | 1,245.80 | |||||||
Marketable equity securities, non-current | $ | 11.2 | $ | 8.7 | $ | — | $ | 2.5 | ||||||||
As of December 31, 2012 (In millions) | Fair | Gross | Gross | Amortized | ||||||||||||
Value | Unrealized | Unrealized | Cost | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale: | ||||||||||||||||
Corporate debt securities | ||||||||||||||||
Current | $ | 346.9 | $ | 0.3 | $ | — | $ | 346.6 | ||||||||
Non-current | 654.1 | 2.8 | (0.6 | ) | 651.9 | |||||||||||
Government securities | ||||||||||||||||
Current | 783.4 | 0.3 | — | 783.1 | ||||||||||||
Non-current | 874.4 | 0.8 | — | 873.6 | ||||||||||||
Mortgage and other asset backed securities | ||||||||||||||||
Current | 4.8 | — | — | 4.8 | ||||||||||||
Non-current | 508.1 | 1.4 | (1.3 | ) | 508 | |||||||||||
Total marketable debt securities | $ | 3,171.70 | $ | 5.6 | $ | (1.9 | ) | $ | 3,168.00 | |||||||
Marketable equity securities, non-current | $ | 9 | $ | 3 | $ | — | $ | 6 | ||||||||
Summary of financial assets with maturities of less than 90 days included within cash and cash equivalents | ' | |||||||||||||||
As of December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||
Commercial paper | $ | 1.2 | $ | 40.7 | ||||||||||||
Overnight reverse repurchase agreements | 22.4 | 67.4 | ||||||||||||||
Short-term debt securities | 401.1 | 331.3 | ||||||||||||||
Total | $ | 424.7 | $ | 439.4 | ||||||||||||
Summary of contractual maturities: Available-for-sale securities | ' | |||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||
(In millions) | Estimated | Amortized | Estimated | Amortized | ||||||||||||
Fair Value | Cost | Fair Value | Cost | |||||||||||||
Due in one year or less | $ | 620.2 | $ | 620.2 | $ | 1,135.00 | $ | 1,134.50 | ||||||||
Due after one year through five years | 573.1 | 572.9 | 1,744.30 | 1,741.20 | ||||||||||||
Due after five years | 52.6 | 52.7 | 292.4 | 292.3 | ||||||||||||
Total available-for-sale securities | $ | 1,245.90 | $ | 1,245.80 | $ | 3,171.70 | $ | 3,168.00 | ||||||||
Proceeds from marketable securities, excluding strategic investments | ' | |||||||||||||||
For the Years Ended December 31, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||
Proceeds from maturities and sales | $ | 5,190.10 | $ | 2,749.60 | $ | 2,276.70 | ||||||||||
Realized gains | $ | 6.6 | $ | 2.1 | $ | 3.9 | ||||||||||
Realized losses | $ | 2.1 | $ | 3.5 | $ | 2.3 | ||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Foreign currency forward contracts that were entered into to hedge forecasted revenue | ' | ||||||||||||||||||||||||||
Notional Amount | |||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
Foreign Currency: (In millions) | 2013 | 2012 | |||||||||||||||||||||||||
Euro | $ | 636.3 | $ | 492.2 | |||||||||||||||||||||||
Canadian dollar | 34 | 31.8 | |||||||||||||||||||||||||
British pound sterling | 72.3 | — | |||||||||||||||||||||||||
Total foreign currency forward contracts | $ | 742.6 | $ | 524 | |||||||||||||||||||||||
Summary of the effect of derivatives designated as hedging instruments on our consolidated statements of income | ' | ||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||||
Net Gains/(Losses) | Net Gains/(Losses) | ||||||||||||||||||||||||||
Reclassified from AOCI into Net Income | Recognized into Net Income | ||||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||||
Location | 2013 | 2012 | 2011 | Location | 2013 | 2012 | 2011 | ||||||||||||||||||||
Revenue | $ | (13.2 | ) | $ | 35.1 | $ | (36.9 | ) | Other income (expense) | $ | (0.2 | ) | $ | 4.8 | $ | (3.9 | ) | ||||||||||
Summary of the fair value for our outstanding derivatives | ' | ||||||||||||||||||||||||||
(In millions) | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||
Hedging Instruments: | |||||||||||||||||||||||||||
Asset derivatives | Other current assets | $ | 0.6 | ||||||||||||||||||||||||
Liability derivatives | Accrued expenses and other | $ | 23.4 | ||||||||||||||||||||||||
Other Derivatives: | |||||||||||||||||||||||||||
Asset derivatives | Other current assets | $ | 3.2 | ||||||||||||||||||||||||
Liability derivatives | Accrued expenses and other | $ | 0.1 | ||||||||||||||||||||||||
(In millions) | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||
Hedging Instruments: | |||||||||||||||||||||||||||
Asset derivatives | Other current assets | $ | 0.6 | ||||||||||||||||||||||||
Liability derivatives | Accrued expenses and other | $ | 11.5 | ||||||||||||||||||||||||
Other Derivatives: | |||||||||||||||||||||||||||
Asset derivatives | Other current assets | $ | 1.2 | ||||||||||||||||||||||||
Liability derivatives | Accrued expenses and other | $ | 2.9 | ||||||||||||||||||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components of property, plant and equipment, net | ' | |||||||
As of December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Land | $ | 59.7 | $ | 55.7 | ||||
Buildings | 961.5 | 902.5 | ||||||
Leasehold improvements | 139.6 | 107.3 | ||||||
Machinery and equipment | 944.5 | 882 | ||||||
Computer software and hardware | 559.2 | 476.6 | ||||||
Furniture and fixtures | 60.3 | 46.9 | ||||||
Construction in progress | 144.2 | 212.3 | ||||||
Total cost | 2,869.00 | 2,683.30 | ||||||
Less: accumulated depreciation | (1,118.3 | ) | (941.1 | ) | ||||
Total property, plant and equipment, net | $ | 1,750.70 | $ | 1,742.20 | ||||
Indebtedness_Tables
Indebtedness (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Summary of Indebtedness | ' | |||||||
As of December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Current portion: | ||||||||
6.0% Senior notes due March 1, 2013 | $ | — | $ | 450 | ||||
Note payable to Fumedica | 3.5 | 3.4 | ||||||
Credit facility | — | — | ||||||
Current portion of notes payable and line of credit | $ | 3.5 | $ | 453.4 | ||||
Non-current portion: | ||||||||
6.875% Senior notes due March 1, 2018 | 580.1 | 586.4 | ||||||
Note payable to Fumedica | 12.3 | 14.5 | ||||||
Financing arrangement for the construction of the Cambridge facilities | — | 86.5 | ||||||
Non-current portion of notes payable and other financing arrangements | $ | 592.4 | $ | 687.4 | ||||
Total debt maturities | ' | |||||||
(In millions) | As of December 31, 2013 | |||||||
2014 | $ | 3.5 | ||||||
2015 | 3.6 | |||||||
2016 | 3.6 | |||||||
2017 | 3.6 | |||||||
2018 | 553.6 | |||||||
2019 and thereafter | — | |||||||
Total | $ | 567.9 | ||||||
Equity_Tables
Equity (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||
Summary of preferred stock | ' | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
(In thousands) | Authorized | Issued | Outstanding | Authorized | Issued | Outstanding | ||||||||||||
Series A | 1,750 | — | — | 1,750 | — | — | ||||||||||||
Series X junior participating | 1,000 | — | — | 1,000 | — | — | ||||||||||||
Undesignated | 5,250 | — | — | 5,250 | — | — | ||||||||||||
Total preferred stock | 8,000 | — | — | 8,000 | — | — | ||||||||||||
Summary of common stock | ' | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
(In thousands) | Authorized | Issued | Outstanding | Authorized | Issued | Outstanding | ||||||||||||
Common stock | 1,000,000 | 255,973 | 236,332 | 1,000,000 | 254,237 | 236,582 | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
(In millions) | Unrealized Gains (Losses) on Securities Available for Sale | Unrealized Gains (Losses) on Foreign Currency Forward Contracts | Unfunded Status of Postretirement Benefit Plans | Translation Adjustments | Total | |||||||||||||||
Balance, December 31, 2012 | $ | 4.2 | $ | (10.7 | ) | $ | (21.7 | ) | $ | (27.1 | ) | $ | (55.3 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 11.8 | (26.7 | ) | 2.1 | 37.1 | 24.3 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (10.4 | ) | 13.7 | — | — | 3.3 | ||||||||||||||
Net current period other comprehensive income (loss) | 1.4 | (13.0 | ) | 2.1 | 37.1 | 27.6 | ||||||||||||||
Balance, December 31, 2013 | $ | 5.6 | $ | (23.7 | ) | $ | (19.6 | ) | $ | 10 | $ | (27.7 | ) | |||||||
(In millions) | Unrealized Gains (Losses) on Securities Available for Sale | Unrealized Gains (Losses) on Foreign Currency Forward Contracts | Unfunded Status of Postretirement Benefit Plans | Translation Adjustments | Total | |||||||||||||||
Balance, December 31, 2011 | $ | — | $ | 32.8 | $ | (9.0 | ) | $ | (50.3 | ) | $ | (26.5 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 5.1 | (11.8 | ) | (12.7 | ) | 23.2 | 3.8 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (0.9 | ) | (31.7 | ) | — | — | (32.6 | ) | ||||||||||||
Net current period other comprehensive income (loss) | 4.2 | (43.5 | ) | (12.7 | ) | 23.2 | (28.8 | ) | ||||||||||||
Balance, December 31, 2012 | $ | 4.2 | $ | (10.7 | ) | $ | (21.7 | ) | $ | (27.1 | ) | $ | (55.3 | ) | ||||||
(In millions) | Unrealized Gains (Losses) on Securities Available for Sale | Unrealized Gains (Losses) on Foreign Currency Forward Contracts | Unfunded Status of Postretirement Benefit Plans | Translation Adjustments | Total | |||||||||||||||
Balance, December 31, 2010 | $ | 12.4 | $ | (9.8 | ) | $ | 0.2 | $ | (24.4 | ) | $ | (21.6 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (0.2 | ) | 32.8 | (9.2 | ) | (25.9 | ) | (2.5 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (12.2 | ) | 9.8 | — | — | (2.4 | ) | |||||||||||||
Net current period other comprehensive income (loss) | (12.4 | ) | 42.6 | (9.2 | ) | (25.9 | ) | (4.9 | ) | |||||||||||
Balance, December 31, 2011 | $ | — | $ | 32.8 | $ | (9.0 | ) | $ | (50.3 | ) | $ | (26.5 | ) | |||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
(In millions) | Income Statement Location | Amounts Reclassified from | ||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Gains (losses) on securities available for sale | Other income (expense) | $ | 15.9 | $ | 1.4 | $ | 19.4 | |||||||||||||
Income tax benefit (expense) | (5.5 | ) | (0.5 | ) | (7.2 | ) | ||||||||||||||
Gains (losses) on foreign currency forward contracts | Revenues | (13.2 | ) | 35.1 | (11.1 | ) | ||||||||||||||
Income tax benefit (expense) | (0.5 | ) | (3.4 | ) | 1.3 | |||||||||||||||
Total reclassifications, net of tax | $ | (3.3 | ) | $ | 32.6 | $ | 2.4 | |||||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Basic and diluted earnings per share | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Numerator: | ||||||||||||
Net income attributable to Biogen Idec Inc. | $ | 1,862.30 | $ | 1,380.00 | $ | 1,234.40 | ||||||
Adjustment for net income allocable to preferred stock | — | — | (0.5 | ) | ||||||||
Net income used in calculating basic and diluted earnings per share | $ | 1,862.30 | $ | 1,380.00 | $ | 1,233.90 | ||||||
Denominator: | ||||||||||||
Weighted average number of common shares outstanding | 236.9 | 237.9 | 242.4 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and employee stock purchase plan | 0.3 | 0.5 | 1 | |||||||||
Time-vested restricted stock units | 0.8 | 1 | 1.3 | |||||||||
Market stock units | 0.3 | 0.3 | 0.3 | |||||||||
Dilutive potential common shares | 1.4 | 1.8 | 2.6 | |||||||||
Shares used in calculating diluted earnings per share | 238.3 | 239.7 | 245 | |||||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
Share-based compensation expense included in consolidated statements of income | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Research and development | $ | 95.6 | $ | 74.7 | $ | 62 | ||||||
Selling, general and administrative | 160.3 | 109.6 | 88.7 | |||||||||
Restructuring charges | — | — | (0.6 | ) | ||||||||
Subtotal | 255.9 | 184.3 | 150.1 | |||||||||
Capitalized share-based compensation costs | (9.8 | ) | (5.4 | ) | (4.5 | ) | ||||||
Share-based compensation expense included in total cost and expenses | 246.1 | 178.9 | 145.6 | |||||||||
Income tax effect | (73.3 | ) | (53.4 | ) | (44.6 | ) | ||||||
Share-based compensation expense included in net income attributable to Biogen Idec Inc. | $ | 172.8 | $ | 125.5 | $ | 101 | ||||||
Summary of share-based compensation expense associated with each of our share-based compensating programs | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Stock options | $ | 0.6 | $ | 2.3 | $ | 5.9 | ||||||
Market stock units | 32.8 | 23.3 | 14.6 | |||||||||
Time-vested restricted stock units | 103.5 | 93 | 89.6 | |||||||||
Performance-vested restricted stock units settled in shares | — | 0.1 | 1 | |||||||||
Cash settled performance shares | 109.8 | 60.4 | 32.7 | |||||||||
Employee stock purchase plan | 9.2 | 5.2 | 6.3 | |||||||||
Subtotal | 255.9 | 184.3 | 150.1 | |||||||||
Capitalized share-based compensation costs | (9.8 | ) | (5.4 | ) | (4.5 | ) | ||||||
Share-based compensation expense included in total cost and expenses | $ | 246.1 | $ | 178.9 | $ | 145.6 | ||||||
Stock option activity | ' | |||||||||||
Shares | Weighted | |||||||||||
Average | ||||||||||||
Exercise | ||||||||||||
Price | ||||||||||||
Outstanding at December 31, 2012 | 907,000 | $ | 54.48 | |||||||||
Granted | — | $ | — | |||||||||
Exercised | (523,000 | ) | $ | 53.73 | ||||||||
Cancelled | — | $ | — | |||||||||
Outstanding at December 31, 2013 | 384,000 | $ | 55.49 | |||||||||
Tax benefit and cash received from stock option exercises | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Tax benefit realized for stock options | $ | 29.4 | $ | 20.9 | $ | 47.5 | ||||||
Cash received from the exercise of stock options | $ | 28.1 | $ | 38.8 | $ | 291.9 | ||||||
Market stock units activity | ' | |||||||||||
Shares | Weighted | |||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Unvested at December 31, 2012 | 606,000 | $ | 94.73 | |||||||||
Granted (a) | 271,000 | $ | 193.45 | |||||||||
Vested | (296,000 | ) | $ | 85.12 | ||||||||
Forfeited | (31,000 | ) | $ | 128.39 | ||||||||
Unvested at December 31, 2013 | 550,000 | $ | 128.04 | |||||||||
Assumptions used in valuation of market based stock units | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Expected dividend yield | —% | —% | ||||||||||
Range of expected stock price volatility | 21.7% - 25.7% | 29.6% - 34.0% | ||||||||||
Range of risk-free interest rates | 0.1% - 0.7% | 0.2% - 0.6% | ||||||||||
60 calendar day average stock price on grant date | $150.33 - $240.14 | $113.83 - $149.79 | ||||||||||
Weighted-average per share grant date fair value | $193.45 | $134.95 | ||||||||||
Cash settled performance shares activity | ' | |||||||||||
Shares | ||||||||||||
Unvested at December 31, 2012 | 592,000 | |||||||||||
Granted (a) | 273,000 | |||||||||||
Vested | (317,000 | ) | ||||||||||
Forfeited | (34,000 | ) | ||||||||||
Unvested at December 31, 2013 | 514,000 | |||||||||||
Time-vested restricted stock units activity | ' | |||||||||||
Shares | Weighted | |||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Unvested at December 31, 2012 | 2,187,000 | $ | 90.37 | |||||||||
Granted (a) | 758,000 | $ | 176.53 | |||||||||
Vested | (1,181,000 | ) | $ | 79.17 | ||||||||
Forfeited | (104,000 | ) | $ | 119.42 | ||||||||
Unvested at December 31, 2013 | 1,660,000 | $ | 135.95 | |||||||||
Performance-vested restricted stock units activity | ' | |||||||||||
Shares | Weighted | |||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Unvested at December 31, 2012 | 930 | $ | 53.64 | |||||||||
Granted | — | $ | — | |||||||||
Vested | (930 | ) | $ | 53.64 | ||||||||
Forfeited | — | $ | — | |||||||||
Unvested at December 31, 2013 | — | $ | — | |||||||||
Shares issued under employee stock purchase plan | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions, except share amounts) | 2013 | 2012 | 2011 | |||||||||
Shares issued under ESPP | 245,000 | 274,000 | 434,000 | |||||||||
Cash received under ESPP | $ | 38.7 | $ | 28.7 | $ | 22.8 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income before income tax provision and the income tax expense | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Income before income taxes (benefit): | ||||||||||||
Domestic | $ | 1,953.00 | $ | 1,398.00 | $ | 1,408.90 | ||||||
Foreign | 527.6 | 457.1 | 302.3 | |||||||||
Total | $ | 2,480.60 | $ | 1,855.10 | $ | 1,711.20 | ||||||
Income tax expense (benefit): | ||||||||||||
Current: | ||||||||||||
Federal | $ | 700.9 | $ | 507.9 | $ | 231.7 | ||||||
State | 98.4 | 35.6 | 15.1 | |||||||||
Foreign | 46.8 | 44 | 44.1 | |||||||||
Total | 846.1 | 587.5 | 290.9 | |||||||||
Deferred: | ||||||||||||
Federal | $ | (200.6 | ) | $ | (133.0 | ) | $ | 160.9 | ||||
State | (35.9 | ) | (13.0 | ) | (8.1 | ) | ||||||
Foreign | (8.6 | ) | 29.1 | 0.8 | ||||||||
Total | (245.1 | ) | (116.9 | ) | 153.6 | |||||||
Total income tax expense | $ | 601 | $ | 470.6 | $ | 444.5 | ||||||
Components of deferred tax assets and liabilities | ' | |||||||||||
As of December 31, | ||||||||||||
(In millions) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Tax credits | $ | 64.1 | $ | 69.3 | ||||||||
Inventory, other reserves, and accruals | 169.6 | 118.3 | ||||||||||
Capitalized costs | 7.9 | 7.6 | ||||||||||
Intangibles, net | 124.2 | 84.5 | ||||||||||
Net operating loss | 14.7 | 37.5 | ||||||||||
Share-based compensation | 85 | 58.6 | ||||||||||
Other | 76.9 | 57.8 | ||||||||||
Valuation allowance | (1.5 | ) | (12.3 | ) | ||||||||
Total deferred tax assets | $ | 540.9 | $ | 421.3 | ||||||||
Deferred tax liabilities: | ||||||||||||
Purchased intangible assets | $ | (550.8 | ) | $ | (411.3 | ) | ||||||
Unrealized gain on investments and cumulative translation adjustment | (3.2 | ) | (1.2 | ) | ||||||||
Inventory | (24.9 | ) | (50.8 | ) | ||||||||
Depreciation, amortization and other | (112.6 | ) | (146.4 | ) | ||||||||
Total deferred tax liabilities | $ | (691.5 | ) | $ | (609.7 | ) | ||||||
Reconciliation between the U.S. federal statutory tax rate and effective tax rate | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes | 3.1 | 0.9 | 1.7 | |||||||||
Taxes on foreign earnings | (6.7 | ) | (6.2 | ) | (5.9 | ) | ||||||
Credits and net operating loss utilization | (2.6 | ) | (3.5 | ) | (4.4 | ) | ||||||
Purchased intangible assets | 1.5 | 1.2 | 1.3 | |||||||||
Manufacturing deduction | (6.6 | ) | (2.1 | ) | (1.5 | ) | ||||||
Other permanent items | 0.8 | (0.4 | ) | 0.3 | ||||||||
Contingent consideration | — | 0.5 | 0.7 | |||||||||
Other | (0.3 | ) | — | (1.2 | ) | |||||||
Effective tax rate | 24.2 | % | 25.4 | % | 26 | % | ||||||
Reconciliation of beginning and ending amount of unrecognized tax benefits | ' | |||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Balance at January 1, | $ | 125.9 | $ | 64.4 | $ | 121.5 | ||||||
Additions based on tax positions related to the current period | 11.9 | 13 | 2.2 | |||||||||
Additions for tax positions of prior periods | 71.7 | 69.8 | 48.6 | |||||||||
Reductions for tax positions of prior periods | (92.1 | ) | (18.6 | ) | (75.8 | ) | ||||||
Statute expirations | (1.9 | ) | (1.9 | ) | (2.3 | ) | ||||||
Settlements | (5.4 | ) | (0.8 | ) | (29.8 | ) | ||||||
Balance at December 31, | $ | 110.1 | $ | 125.9 | $ | 64.4 | ||||||
Other_Consolidated_Financial_S1
Other Consolidated Financial Statement Detail (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Supplementary cash flow information | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 53.6 | $ | 65.4 | $ | 66.7 | ||||||
Income taxes | $ | 643.2 | $ | 526.6 | $ | 332.7 | ||||||
Other income (expense), net | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Interest income | $ | 8.2 | $ | 29.5 | $ | 19.2 | ||||||
Interest expense | (31.9 | ) | (36.5 | ) | (33.0 | ) | ||||||
Impairments on investments | (2.8 | ) | (5.5 | ) | (9.9 | ) | ||||||
Gain (loss) on investments, net | 21.7 | 10.6 | 18.8 | |||||||||
Foreign exchange gains (losses), net | (15.2 | ) | (2.5 | ) | (6.3 | ) | ||||||
Other, net | (14.9 | ) | 3.7 | (2.3 | ) | |||||||
Total other income (expense), net | $ | (34.9 | ) | $ | (0.7 | ) | $ | (13.5 | ) | |||
Accrued expenses and other | ' | |||||||||||
As of December 31, | ||||||||||||
(In millions) | 2013 | 2012 | ||||||||||
Employee compensation and benefits | $ | 343.4 | $ | 248.5 | ||||||||
Revenue-related rebates | 264.9 | 191 | ||||||||||
Deferred revenue | 172.7 | 148 | ||||||||||
Royalties and licensing fees | 160.7 | 45.2 | ||||||||||
Clinical development expenses | 55.2 | 51.6 | ||||||||||
Current portion of contingent consideration obligations | 29 | 22.4 | ||||||||||
Construction in progress accrual | 25 | 12.3 | ||||||||||
Collaboration expenses | 18.7 | 37.4 | ||||||||||
Other | 285.6 | 223.5 | ||||||||||
Total accrued expenses and other | $ | 1,355.20 | $ | 979.9 | ||||||||
Investments_in_Variable_Intere1
Investments in Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Investments in Variable Interest Entities [Abstract] | ' | |||||||||||
Summary Of Activity Related To Collaboration With Knopp | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Milestone payments made to Knopp | $ | — | $ | — | $ | 10 | ||||||
Biogen Idec’s share of expense reflected within our consolidated statements of income | $ | — | $ | 113 | $ | 54.8 | ||||||
Collaboration expense attributed to noncontrolling interests, net of tax | $ | — | $ | — | $ | 8.6 | ||||||
Summary Of Activity Related To Collaboration With Neurimmune | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Milestone payments made to Neurimmune | $ | — | $ | — | $ | 15 | ||||||
Biogen Idec’s share of expense reflected within our consolidated statements of income | $ | 27.2 | $ | 13.3 | $ | 24.2 | ||||||
Collaboration expense attributed to noncontrolling interests, net of tax | $ | — | $ | — | $ | 14.7 | ||||||
Summary Of Activity Related To Collaboration With Neurimmune Along With Estimate Of Additional Future Development | ' | |||||||||||
(In millions) | As of December 31, 2013 | |||||||||||
Total expense incurred by Biogen Idec | $ | 115.7 | ||||||||||
Estimate of additional amounts to be incurred by us in development of the lead compound | $ | 800.9 | ||||||||||
Collaborative_and_Other_Relati1
Collaborative and Other Relationships (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Co-promotion profit sharing formula | ' | |||||||||||
Until GAZYVA First Non-CLL FDA Approval | 40 | % | ||||||||||
After GAZYVA First Non-CLL FDA Approval until First GAZYVA Threshold Date | 39 | % | ||||||||||
After First GAZYVA Threshold Date until Second GAZYVA Threshold Date | 37.5 | % | ||||||||||
After Second GAZYVA Threshold Date | 35 | % | ||||||||||
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 (1) 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 (2) 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 | ' | |||||||||||
Until First GAZYVA Threshold Date | 39 | % | ||||||||||
After First GAZYVA Threshold Date until Second GAZYVA Threshold Date | 37.5 | % | ||||||||||
After Second GAZYVA Threshold Date | 35 | % | ||||||||||
Revenues from unconsolidated joint business | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Biogen Idec’s share of pre-tax profits in the U.S. for RITUXAN and GAZYVA (1) | $ | 1,085.20 | $ | 1,031.70 | $ | 872.7 | ||||||
Reimbursement of selling and development expenses in the U.S. for RITUXAN | 2.1 | 1.6 | 6.1 | |||||||||
Revenue on sales in the rest of world for RITUXAN | 38.7 | 104.6 | 117.8 | |||||||||
Total unconsolidated joint business revenues | $ | 1,126.00 | $ | 1,137.90 | $ | 996.6 | ||||||
Summary of activity related to collaboration with Acorda | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Upfront and milestones payments made to Acorda (1) | $ | — | $ | — | $ | 25 | ||||||
Total cost of sales related to royalties and commercial supply of FAMPYRA reflected within our statements of income | $ | 24.3 | $ | 20.2 | $ | 6.5 | ||||||
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |||||||||||
Rates should Sobi exercise | ||||||||||||
its option right(3) | ||||||||||||
Royalty and Net Revenue Share Rates: | Method | Rate prior to 1st | Base Rate following | Rate during the | ||||||||
commercial sale in | 1st commercial sale in | Reimbursement | ||||||||||
the Sobi Territory: | the Sobi Territory: | Period: | ||||||||||
Sobi rate to Biogen Idec on net sales in the Sobi Territory | Royalty | N/A | 10 to 12% | Base Rate | ||||||||
plus 5% | ||||||||||||
Biogen Idec rate to Sobi on net sales in the Biogen Idec North America Territory | Royalty | 2% | 10 to 12% | Base Rate | ||||||||
less 5% | ||||||||||||
Biogen Idec rate to Sobi on net sales in the Biogen Idec Direct Territory | Royalty | 2% | 15 to 17% | Base Rate | ||||||||
less 5% | ||||||||||||
Biogen Idec rate to Sobi on net revenue(1) | Net | 10% | 50% | Base Rate | ||||||||
from the Biogen Idec Distributor Territory(2) | Revenue | less 15% | ||||||||||
Share | ||||||||||||
-1 | Net revenue represents Biogen Idec’s pre-tax receipts from third-party distributors, less expenses incurred by Biogen Idec in the conduct of commercialization activities supporting the distributor activities. | |||||||||||
-2 | The Biogen Idec Distributor Territory represents Biogen Idec territories where sales are derived utilizing a third-party distributor. | |||||||||||
-3 | A credit will be issued to Sobi against its reimbursement of the Opt-in Consideration in an amount equal to the difference in the rate paid by Biogen Idec to Sobi on sales in the Biogen Idec territories for certain periods prior to the first commercial sale in the Sobi Territory versus the rate that otherwise would have been payable on such sales. | |||||||||||
Summary of activity related to collaboration with AbbVie Inc. | ' | |||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Total development expense incurred by the collaboration | $ | 133.4 | $ | 128 | $ | 105.2 | ||||||
Biogen Idec’s share of development expense reflected within our consolidated statements of income | $ | 71 | $ | 65.6 | $ | 54.2 | ||||||
Summary of activity related to collaboration with Portola Pharmaceuticals, Inc. | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Total expense incurred by the collaboration | $ | 1.6 | $ | 18.8 | $ | 1.1 | ||||||
Total expense reflected within our consolidated statements of income, excluding upfront and milestone payments | $ | 1.6 | $ | 14.2 | $ | 0.9 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Minimum rental commitments under non-cancelable leases | ' | |||||||||||||||||||||||||||
(In millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||
Minimum lease payments (1) | $ | 66.8 | $ | 64.2 | $ | 57 | $ | 54.9 | $ | 49.8 | $ | 384.4 | $ | 677.1 | ||||||||||||||
Less: income from subleases | — | (5.6 | ) | (6.0 | ) | (6.0 | ) | (6.3 | ) | (41.5 | ) | (65.4 | ) | |||||||||||||||
Net minimum lease payments | $ | 66.8 | $ | 58.6 | $ | 51 | $ | 48.9 | $ | 43.5 | $ | 342.9 | $ | 611.7 | ||||||||||||||
-1 | Includes future minimum rental commitments related to leases executed for two office buildings in Cambridge, Massachusetts, which completed construction in July and November 2013. The leases both have 15 year terms and we have options to extend the term of each lease for two additional five-year terms. Future minimum rental commitments under these leases will total approximately $340.0 million over the initial 15 year lease terms. | |||||||||||||||||||||||||||
As a result of our decision to relocate our corporate headquarters to Cambridge, Massachusetts, we vacated part of our Weston, Massachusetts facility in the fourth quarter of 2013. We incurred a charge of $27.2 million in connection with this move. This charge represents our remaining lease obligation for the vacated portion of our Weston facility, net of sublease income expected to be received. The term of our sublease to the vacated portion of our Weston facility started in January 2014 and will continue through the remaining term of our lease agreement. | ||||||||||||||||||||||||||||
For additional information related to these transactions, please read Note 11, Property, Plant and Equipment to these consolidated financial statements. | ||||||||||||||||||||||||||||
Schedule of milestone payments based on the attainment of certain sales levels | ' | |||||||||||||||||||||||||||
Cumulative Sales Level | ||||||||||||||||||||||||||||
Prior 12 Month Sales | $500M | $1.0B | $2.0B | $3.0B | Each additional $1.0B up to $20.0B | |||||||||||||||||||||||
Payment Amount (In millions) | ||||||||||||||||||||||||||||
< $500 million | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
$500 million - $1.0 billion | 22 | 25 | 50 | 50 | 50 | |||||||||||||||||||||||
$1.0 billion - $1.5 billion | — | 50 | 100 | 100 | 100 | |||||||||||||||||||||||
$1.5 billion - $2.0 billion | — | — | 150 | 150 | 150 | |||||||||||||||||||||||
$2.0 billion - $2.5 billion | — | — | 200 | 200 | 200 | |||||||||||||||||||||||
$2.5 billion - $3.0 billion | — | — | — | 250 | 250 | |||||||||||||||||||||||
> $3.0 billion | — | — | — | — | 300 | |||||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Revenue by product | ' | |||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
(In millions) | United | Rest of | Total | United | Rest of | Total | United | Rest of | Total | |||||||||||||||||||||||||||
States | World | States | World | States | World | |||||||||||||||||||||||||||||||
AVONEX | $ | 1,902.40 | $ | 1,103.10 | $ | 3,005.50 | $ | 1,793.70 | $ | 1,119.40 | $ | 2,913.10 | $ | 1,628.30 | $ | 1,058.30 | $ | 2,686.60 | ||||||||||||||||||
TYSABRI | 814.2 | 712.3 | 1,526.50 | 383.1 | 752.8 | 1,135.90 | 326.5 | 753 | 1,079.50 | |||||||||||||||||||||||||||
TECFIDERA | 864.4 | 11.7 | 876.1 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other | — | 134.2 | 134.2 | — | 117.1 | 117.1 | — | 70 | 70 | |||||||||||||||||||||||||||
Total product revenues | $ | 3,581.00 | $ | 1,961.30 | $ | 5,542.30 | $ | 2,176.80 | $ | 1,989.30 | $ | 4,166.10 | $ | 1,954.80 | $ | 1,881.30 | $ | 3,836.10 | ||||||||||||||||||
Geographic information | ' | |||||||||||||||||||||||||||||||||||
December 31, 2013 (In millions) | U.S. | Europe(1) | Germany | Asia | Other | Total | ||||||||||||||||||||||||||||||
Product revenues from external customers | $ | 3,581.00 | $ | 1,170.20 | $ | 417.7 | $ | 93.2 | $ | 280.2 | $ | 5,542.30 | ||||||||||||||||||||||||
Revenues from unconsolidated joint business | $ | 1,087.30 | $ | 1.6 | $ | — | $ | 3.2 | $ | 33.9 | $ | 1,126.00 | ||||||||||||||||||||||||
Other revenues from external customers | $ | 193.5 | $ | 26.1 | $ | 1.2 | $ | 43.1 | $ | — | $ | 263.9 | ||||||||||||||||||||||||
Long-lived assets | $ | 984.4 | $ | 758.3 | $ | 2.5 | $ | 2.1 | $ | 3.3 | $ | 1,750.70 | ||||||||||||||||||||||||
December 31, 2012 (In millions) | U.S. | Europe(1) | Germany | Asia | Other | Total | ||||||||||||||||||||||||||||||
Product revenues from external customers | $ | 2,176.80 | $ | 1,216.20 | $ | 409.2 | $ | 93.2 | $ | 270.7 | $ | 4,166.10 | ||||||||||||||||||||||||
Revenues from unconsolidated joint business | $ | 1,033.30 | $ | 14.3 | $ | — | $ | 27.5 | $ | 62.8 | $ | 1,137.90 | ||||||||||||||||||||||||
Other revenues from external customers | $ | 170.2 | $ | 27.9 | $ | 1.1 | $ | 13.3 | $ | — | $ | 212.5 | ||||||||||||||||||||||||
Long-lived assets | $ | 996.6 | $ | 738.6 | $ | 1.9 | $ | 2.9 | $ | 2.2 | $ | 1,742.20 | ||||||||||||||||||||||||
December 31, 2011 (In millions) | U.S. | Europe(1) | Germany | Asia | Other | Total | ||||||||||||||||||||||||||||||
Product revenues from external customers | $ | 1,954.80 | $ | 1,163.30 | $ | 377.5 | $ | 88.7 | $ | 251.8 | $ | 3,836.10 | ||||||||||||||||||||||||
Revenues from unconsolidated joint business | $ | 878.8 | $ | 29.9 | $ | — | $ | 30.7 | $ | 57.2 | $ | 996.6 | ||||||||||||||||||||||||
Other revenues from external customers | $ | 187 | $ | 28.3 | $ | 0.6 | $ | — | $ | — | $ | 215.9 | ||||||||||||||||||||||||
Long-lived assets | $ | 1,012.50 | $ | 816.6 | $ | 1.6 | $ | 5.3 | $ | 2.4 | $ | 1,838.40 | ||||||||||||||||||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
2013 | (a) | (b) | (b) (c) | (b) | ||||||||||||||||
Product revenues | $ | 1,095.80 | $ | 1,385.90 | $ | 1,453.60 | $ | 1,607.10 | $ | 5,542.30 | ||||||||||
Unconsolidated joint business revenues | $ | 264.6 | $ | 288.8 | $ | 303.2 | $ | 269.4 | $ | 1,126.00 | ||||||||||
Other revenues | $ | 54.7 | $ | 48.8 | $ | 71 | $ | 89.4 | $ | 263.9 | ||||||||||
Total revenues | $ | 1,415.10 | $ | 1,723.50 | $ | 1,827.80 | $ | 1,965.90 | $ | 6,932.20 | ||||||||||
Gross profit | $ | 1,281.40 | $ | 1,492.80 | $ | 1,593.10 | $ | 1,707.30 | $ | 6,074.50 | ||||||||||
Net income | $ | 426.7 | $ | 490.7 | $ | 487.6 | $ | 457.3 | $ | 1,862.30 | ||||||||||
Net income attributable to Biogen Idec Inc. | $ | 426.7 | $ | 490.7 | $ | 487.6 | $ | 457.3 | $ | 1,862.30 | ||||||||||
Basic earnings per share attributable to Biogen Idec Inc. | $ | 1.8 | $ | 2.07 | $ | 2.06 | $ | 1.94 | $ | 7.86 | ||||||||||
Diluted earnings per share attributable to Biogen Idec Inc. | $ | 1.79 | $ | 2.06 | $ | 2.05 | $ | 1.92 | $ | 7.81 | ||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
2012 | (d) | (e) (f) | ||||||||||||||||||
Product revenues | $ | 975.4 | $ | 1,076.80 | $ | 1,039.10 | $ | 1,074.70 | $ | 4,166.10 | ||||||||||
Unconsolidated joint business revenues | $ | 284.6 | $ | 284.6 | $ | 287.8 | $ | 280.9 | $ | 1,137.90 | ||||||||||
Other revenues | $ | 32 | $ | 59.6 | $ | 58.6 | $ | 62.3 | $ | 212.5 | ||||||||||
Total revenues | $ | 1,292.00 | $ | 1,421.00 | $ | 1,385.50 | $ | 1,417.90 | $ | 5,516.50 | ||||||||||
Gross profit | $ | 1,158.80 | $ | 1,281.80 | $ | 1,246.20 | $ | 1,284.10 | $ | 4,971.00 | ||||||||||
Net income | $ | 302.4 | $ | 387.1 | $ | 398.4 | $ | 292.1 | $ | 1,380.00 | ||||||||||
Net income attributable to Biogen Idec Inc. | $ | 302.7 | $ | 386.8 | $ | 398.4 | $ | 292.1 | $ | 1,380.00 | ||||||||||
Basic earnings per share attributable to Biogen Idec Inc. | $ | 1.26 | $ | 1.62 | $ | 1.68 | $ | 1.24 | $ | 5.8 | ||||||||||
Diluted earnings per share attributable to Biogen Idec Inc. | $ | 1.25 | $ | 1.61 | $ | 1.67 | $ | 1.23 | $ | 5.76 | ||||||||||
Full year amounts may not sum due to rounding. | ||||||||||||||||||||
(a) | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | |||||||||||||||||||
(b) | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | |||||||||||||||||||
(c) | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | |||||||||||||||||||
(d) | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | |||||||||||||||||||
(e) | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | |||||||||||||||||||
(f) | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
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 market value per share of the common stock on the participant's entry date into an offering period or (ii) the market value per share of the common stock on the purchase date | ' | ' |
Percentage of market value per share of common stock | 85.00% | ' | ' |
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 | $72.70 | $54.30 | $45.30 |
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 | 34.50% | 14.50% | ' |
Distributor Two | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Percentage receivables of wholesale distributor accounted in consolidated receivables | 15.70% | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Apr. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 08, 2012 | Mar. 07, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 06, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Jan. 31, 2007 | Mar. 08, 2012 | |
TYSABRI product | TYSABRI product | Stromedix, Inc. | Stromedix, Inc. | Stromedix, Inc. | Stromedix, Inc. | Biogen Dompe SRL and Biogen Dompe Switzerland GmbH | Biogen Dompe SRL and Biogen Dompe Switzerland GmbH | Biogen Dompe SRL and Biogen Dompe Switzerland GmbH | Biogen Idec Hemophilia | Biogen Idec Hemophilia | Biogen Idec Hemophilia | STX One Hundred | ||||
Stromedix, Inc. | ||||||||||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of TYSABRI rights | $3,262,719,000 | $0 | $0 | $3,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | 172,700,000 | 148,000,000 | ' | ' | 84,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net intangible asset | ' | ' | ' | ' | 3,178,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated life, (In Years) | ' | ' | ' | '17 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future contingent payment for the first 12 months | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future contingent payment for annual worldwide net sales up to $2.0 billion | ' | ' | ' | ' | 18.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future contingent payment threshold | ' | ' | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future contingent payment for annual worldwide net sales that exceed $2.0 billion | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash portion of consideration | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | 152,900,000 | ' | ' | ' | ' | ' |
Maximum contingent consideration in the form of development and approval milestones | ' | ' | ' | ' | ' | ' | ' | 487,500,000 | ' | 38,500,000 | ' | 42,500,000 | ' | ' | 80,000,000 | 275,000,000 |
Contingent consideration obligation | 0 | 122,200,000 | ' | ' | ' | ' | 122,200,000 | ' | ' | ' | 38,800,000 | ' | ' | ' | ' | ' |
Total purchase price allocated to IPR&D | ' | ' | ' | ' | ' | ' | ' | 219,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price allocated to goodwill | 1,232,916,000 | 1,201,296,000 | 1,146,300,000 | ' | ' | ' | ' | 48,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate used to calculate fair value of in process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% |
Other goodwill adjustments | ' | 6,800,000 | ' | ' | ' | -4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity interest to the portion of total capital stock | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' |
Recognized gain | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone payments made during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | 40,000,000 | ' | ' | ' |
Additional contingent payment for Biologic license | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' |
Additional contingent payment for marketing authorization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | ' |
Gain_on_Sale_of_Rights_Details
Gain on Sale of Rights (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gain on Sale of Rights [Abstract] | ' | ' | ' |
Gain on sale of rights | $24,898 | $46,792 | $0 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts receivable balances on product sales from different countries | ' | ' |
Current balance included within accounts receivable, net | $824,406,000 | $686,848,000 |
Spain | ' | ' |
Accounts receivable balances on product sales from different countries | ' | ' |
Current balance included within accounts receivable, net | 113,300,000 | 78,900,000 |
Non-current balance included within investments and other assets | 6,800,000 | 0 |
Total | 120,100,000 | 78,900,000 |
Italy | ' | ' |
Accounts receivable balances on product sales from different countries | ' | ' |
Current balance included within accounts receivable, net | 76,100,000 | 94,400,000 |
Non-current balance included within investments and other assets | 2,400,000 | 10,200,000 |
Total | 78,500,000 | 104,600,000 |
Portugal | ' | ' |
Accounts receivable balances on product sales from different countries | ' | ' |
Current balance included within accounts receivable, net | 10,400,000 | 16,600,000 |
Non-current balance included within investments and other assets | 8,200,000 | 7,400,000 |
Total | $18,600,000 | $24,000,000 |
Accounts_Receivable_Details_Te
Accounts Receivable (Details Textual) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | USD ($) | Italy | Italy | Italy | Italy | Italy | Italy | |
EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | |||
Accounts Receivable (Textual) | ' | ' | ' | ' | ' | ' | ' | ' |
Payment terms of accounts receivable arising from product sales | '30 to 90 days | ' | ' | ' | ' | ' | ' | ' |
Minimum term for accounts receivable | '30 days | ' | ' | ' | ' | ' | ' | ' |
Maximum term for accounts receivable | '90 days | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable outstanding for greater than one year | $45.90 | $11.80 | ' | ' | ' | ' | ' | ' |
Payment in case of any unfavorable determination received | ' | ' | 30.7 | ' | ' | ' | ' | ' |
Reimbursement Limit Stated In Resolution | ' | ' | '24 months | ' | ' | ' | ' | ' |
Loss contingency, expected settlement | ' | ' | ' | ' | ' | ' | ' | 33.3 |
Loss contingency accrual | ' | ' | ' | ' | ' | ' | 20 | 15.4 |
Cumulative deferred revenue on sales | ' | ' | ' | 129.3 | ' | ' | ' | ' |
Amount of revenue deferred during the period | ' | ' | ' | $45.90 | $62.70 | $13.80 | ' | ' |
Revenue_Reserves_Details
Revenue Reserves (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Analysis of the amount of, and change in, reserves | ' | ' | ' |
Beginning balance | $237.10 | $155.60 | $142 |
Current provisions relating to sales in current year | 1,110.60 | 652.7 | 472.1 |
Adjustments relating to prior years | -16 | -5.1 | -14.9 |
Payments/returns relating to sales in current year | -750.1 | -451.1 | -350.7 |
Payments/returns relating to sales in prior years | -165.3 | -115 | -92.9 |
Ending balance | 416.3 | 237.1 | 155.6 |
Discounts | ' | ' | ' |
Analysis of the amount of, and change in, reserves | ' | ' | ' |
Beginning balance | 14.3 | 11.9 | 13.9 |
Current provisions relating to sales in current year | 236.3 | 96.5 | 84.3 |
Adjustments relating to prior years | -0.7 | -0.3 | 0 |
Payments/returns relating to sales in current year | -189.7 | -83.6 | -73.3 |
Payments/returns relating to sales in prior years | -13.2 | -10.2 | -13 |
Ending balance | 47 | 14.3 | 11.9 |
Contractual Adjustments | ' | ' | ' |
Analysis of the amount of, and change in, reserves | ' | ' | ' |
Beginning balance | 196 | 120 | 107 |
Current provisions relating to sales in current year | 851.4 | 534.2 | 372.1 |
Adjustments relating to prior years | -16.4 | -4.7 | -14 |
Payments/returns relating to sales in current year | -560.4 | -363.2 | -277 |
Payments/returns relating to sales in prior years | -135 | -90.3 | -68.1 |
Ending balance | 335.6 | 196 | 120 |
Returns | ' | ' | ' |
Analysis of the amount of, and change in, reserves | ' | ' | ' |
Beginning balance | 26.8 | 23.7 | 21.1 |
Current provisions relating to sales in current year | 22.9 | 22 | 15.7 |
Adjustments relating to prior years | 1.1 | -0.1 | -0.9 |
Payments/returns relating to sales in current year | 0 | -4.3 | -0.4 |
Payments/returns relating to sales in prior years | -17.1 | -14.5 | -11.8 |
Ending balance | $33.70 | $26.80 | $23.70 |
Revenue_Reserves_Details_1
Revenue Reserves (Details 1) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 |
Reserves for Discounts and Allowances [Abstract] | ' | ' | ' | ' |
Revenue reserves reclassification | $17.30 | $11.70 | ' | ' |
Summary of total product revenue reserves included in consolidated balance sheets | ' | ' | ' | ' |
Reduction of accounts receivable | 46.1 | ' | 151.4 | ' |
Components of accrued expenses | 191 | ' | 264.9 | ' |
Total reserves | $237.10 | $155.60 | $416.30 | $142 |
Inventory_Details
Inventory (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Components of inventories | ' | ' |
Raw materials | $115,000,000 | $101,800,000 |
Work in process | 435,400,000 | 244,900,000 |
Finished goods | 108,600,000 | 100,700,000 |
Total inventory | $659,003,000 | $447,373,000 |
Inventory_Details_1
Inventory (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Components of inventory | ' | ' |
Total finished goods and work in process | $544,000,000 | $345,600,000 |
Raw materials | 115,000,000 | 101,800,000 |
Total inventory | 659,003,000 | 447,373,000 |
AVONEX | ' | ' |
Components of inventory | ' | ' |
Total finished goods and work in process | 176,900,000 | 144,000,000 |
TYSABRI | ' | ' |
Components of inventory | ' | ' |
Total finished goods and work in process | 170,900,000 | 114,800,000 |
TECFIDERA | ' | ' |
Components of inventory | ' | ' |
Total finished goods and work in process | 33,600,000 | 0 |
Other | ' | ' |
Components of inventory | ' | ' |
Total finished goods and work in process | $162,600,000 | $86,800,000 |
Inventory_Details_Textual
Inventory (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Inventory Disclosure [Abstract] | ' | ' | ' |
Inventory reclassification | ' | $14.40 | ' |
Inventory, Various Programs, Gross | 93.7 | 38.3 | ' |
Write-downs on excess, obsolete, unmarketable or other inventory | $47.30 | $24.80 | $25.40 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 08, 2012 | Dec. 31, 2013 | Apr. 02, 2013 | |
Out-licensed patents | Out-licensed patents | Out-licensed patents | Out-licensed patents | AVONEX developed technology | AVONEX developed technology | AVONEX developed technology | AVONEX developed technology | Acquired and in-licensed rights and patents | Acquired and in-licensed rights and patents | Acquired and in-licensed rights and patents | Acquired and in-licensed rights and patents | In-process research and development | In-process research and development | Trademarks and trade names | Trademarks and trade names | AVONEX | Stromedix | TYSABRI product | TYSABRI product | ||||
Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | AVONEX developed technology | |||||||||||||||||
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated life, (In Years) | ' | ' | ' | ' | ' | '23 years | '13 years | ' | ' | '23 years | '15 years | ' | ' | '17 years | '6 years | ' | ' | ' | ' | ' | ' | '17 years | ' |
Indefinite lived intangible assets useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Indefinite | ' | 'Indefinite | ' | ' | ' | ' | ' |
Cost | ' | ' | ' | $578,000,000 | $578,000,000 | ' | ' | $3,005,300,000 | $3,005,300,000 | ' | ' | $3,240,000,000 | $53,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost and net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 327,400,000 | 330,100,000 | 64,000,000 | 64,000,000 | ' | ' | ' | ' |
Total intangible assets, gross | 7,214,700,000 | 4,031,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Amortization | -2,740,000,000 | -2,399,600,000 | ' | -450,800,000 | -421,000,000 | ' | ' | -2,165,400,000 | -1,965,700,000 | ' | ' | -123,800,000 | -12,900,000 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Net | ' | ' | ' | 127,200,000 | 157,000,000 | ' | ' | 839,900,000 | 1,039,600,000 | ' | ' | 3,116,200,000 | 40,800,000 | ' | ' | ' | ' | ' | ' | 829,700,000 | ' | ' | ' |
Intangible assets, net | 4,474,653,000 | 1,631,547,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible Assets and Goodwill (Additional Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected future amortization expense, 2014 | 426,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected future amortization expense, 2015 | 336,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected future amortization expense, 2016 | 322,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected future amortization expense, 2017 | 327,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected future amortization expense, 2018 | 330,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FiniteLivedIntangibleAssetsFutureAmortization | 1,743,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of acquired intangible assets | 342,948,000 | 202,204,000 | 208,566,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of intangible asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' |
Total purchase price allocated to IPR&D | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 219,200,000 | ' | ' |
Net intangible asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,178,300,000 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill [Line Items] | ' | ' | ' |
Income tax expense | $601,014,000 | $470,554,000 | $444,528,000 |
Accumulated impairment losses related to goodwill | 0 | ' | ' |
Summary of roll forward of the changes in goodwill | ' | ' | ' |
Goodwill, beginning of period | 1,201,296,000 | 1,146,300,000 | ' |
Increase to goodwill | 35,700,000 | 48,200,000 | ' |
Other goodwill adjustments | ' | 6,800,000 | ' |
Goodwill, end of period | 1,232,916,000 | 1,201,296,000 | 1,146,300,000 |
TECFIDERA | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Income tax expense | 1,500,000 | ' | ' |
Summary of roll forward of the changes in goodwill | ' | ' | ' |
Increase to goodwill | 15,000,000 | ' | ' |
Fumapharm AG | TECFIDERA | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Income tax expense | 2,800,000 | ' | ' |
Summary of roll forward of the changes in goodwill | ' | ' | ' |
Increase to goodwill | 25,000,000 | ' | ' |
One billion | Fumapharm AG | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Cumulative sales level | $1,000,000,000 | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Assets: | ' | ' | ' |
Marketable debt securities | $1,245.90 | $3,171.70 | ' |
Fair Value, Measurements, Recurring | ' | ' | ' |
Assets: | ' | ' | ' |
Cash equivalents | 424.7 | 439.4 | ' |
Derivative contracts | 3.8 | 1.8 | ' |
Plan assets for deferred compensation | 22.7 | 14.3 | ' |
Total | 1,730.20 | 3,656.50 | ' |
Liabilities: | ' | ' | ' |
Derivative contracts | 23.5 | 14.4 | ' |
Contingent consideration obligations | 280.9 | 293.9 | 151 |
Total | 304.4 | 308.3 | ' |
Fair Value, Measurements, Recurring | Corporate debt securities | ' | ' | ' |
Assets: | ' | ' | ' |
Marketable debt securities | 439.8 | 1,001 | ' |
Fair Value, Measurements, Recurring | Government securities | ' | ' | ' |
Assets: | ' | ' | ' |
Marketable debt securities | 674.7 | 1,657.80 | ' |
Fair Value, Measurements, Recurring | Mortgage and other asset backed securities | ' | ' | ' |
Assets: | ' | ' | ' |
Marketable debt securities | 131.4 | 512.9 | ' |
Fair Value, Measurements, Recurring | Marketable equity securities | ' | ' | ' |
Assets: | ' | ' | ' |
Investments | 11.2 | 9 | ' |
Fair Value, Measurements, Recurring | Venture capital investments | ' | ' | ' |
Assets: | ' | ' | ' |
Investments | 21.9 | 20.3 | 23.5 |
Quoted Prices in Active Markets (Level 1) | Fair Value, Measurements, Recurring | ' | ' | ' |
Assets: | ' | ' | ' |
Cash equivalents | 0 | 0 | ' |
Derivative contracts | 0 | 0 | ' |
Plan assets for deferred compensation | 0 | 0 | ' |
Total | 11.2 | 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 | ' |
Quoted Prices in Active Markets (Level 1) | Fair Value, Measurements, Recurring | Marketable equity securities | ' | ' | ' |
Assets: | ' | ' | ' |
Investments | 11.2 | 9 | ' |
Quoted Prices in Active Markets (Level 1) | Fair Value, Measurements, Recurring | Venture capital investments | ' | ' | ' |
Assets: | ' | ' | ' |
Investments | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ' | ' | ' |
Assets: | ' | ' | ' |
Cash equivalents | 424.7 | 439.4 | ' |
Derivative contracts | 3.8 | 1.8 | ' |
Plan assets for deferred compensation | 22.7 | 14.3 | ' |
Total | 1,697.10 | 3,627.20 | ' |
Liabilities: | ' | ' | ' |
Derivative contracts | 23.5 | 14.4 | ' |
Contingent consideration obligations | 0 | 0 | ' |
Total | 23.5 | 14.4 | ' |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate debt securities | ' | ' | ' |
Assets: | ' | ' | ' |
Marketable debt securities | 439.8 | 1,001 | ' |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Government securities | ' | ' | ' |
Assets: | ' | ' | ' |
Marketable debt securities | 674.7 | 1,657.80 | ' |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Mortgage and other asset backed securities | ' | ' | ' |
Assets: | ' | ' | ' |
Marketable debt securities | 131.4 | 512.9 | ' |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Marketable equity securities | ' | ' | ' |
Assets: | ' | ' | ' |
Investments | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Venture capital investments | ' | ' | ' |
Assets: | ' | ' | ' |
Investments | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ' | ' | ' |
Assets: | ' | ' | ' |
Cash equivalents | 0 | 0 | ' |
Derivative contracts | 0 | 0 | ' |
Plan assets for deferred compensation | 0 | 0 | ' |
Total | 21.9 | 20.3 | ' |
Liabilities: | ' | ' | ' |
Derivative contracts | 0 | 0 | ' |
Contingent consideration obligations | 280.9 | 293.9 | ' |
Total | 280.9 | 293.9 | ' |
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 | ' |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Marketable equity securities | ' | ' | ' |
Assets: | ' | ' | ' |
Investments | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Venture capital investments | ' | ' | ' |
Assets: | ' | ' | ' |
Investments | $21.90 | $20.30 | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | |||
Venture capital investments | Venture capital investments | Venture capital investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' |
Fair value, beginning of year | ' | ' | $21.90 | $20.30 | $23.50 |
Unrealized gains included in earnings | 10.5 | 5.4 | ' | ' | ' |
Unrealized losses included in earnings | -6.3 | -9.2 | ' | ' | ' |
Purchases | 0.7 | 0.6 | ' | ' | ' |
Settlements | -3.3 | 0 | ' | ' | ' |
Fair value, end of year | ' | ' | $21.90 | $20.30 | $23.50 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of fair and carrying value of debt instruments | ' | ' |
Credit facility, amount outstanding | $0 | $0 |
Total fair value | 665.4 | 1,155.30 |
Notes Payable to Fumedica | ' | ' |
Summary of fair and carrying value of debt instruments | ' | ' |
Notes payable, fair value | 17.5 | 20 |
6.0% Senior Notes due 2013 | ' | ' |
Summary of fair and carrying value of debt instruments | ' | ' |
Notes payable, fair value | 0 | 453.7 |
6.875% Senior Notes due 2018 | ' | ' |
Summary of fair and carrying value of debt instruments | ' | ' |
Notes payable, fair value | $647.90 | $681.60 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Additions | $0 | $122,200,000 | ' |
(Gain) loss on fair value remeasurement of contingent consideration | -547,000 | 27,202,000 | 36,065,000 |
Payments | -12,500,000 | -6,500,000 | ' |
Fair Value, Measurements, Recurring | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Fair value, end of period | $280,900,000 | $293,900,000 | $151,000,000 |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 08, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Sep. 06, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 |
Other Liabilities Non Current | Other Liabilities Non Current | Stromedix, Inc. | Stromedix, Inc. | Stromedix, Inc. | Biogen Dompe SRL and Biogen Dompe Switzerland GmbH | Biogen Dompe SRL and Biogen Dompe Switzerland GmbH | Biogen Dompe SRL and Biogen Dompe Switzerland GmbH | Biogen Dompe SRL and Biogen Dompe Switzerland GmbH | Biogen Idec International Neuroscience GmbH | Biogen Idec International Neuroscience GmbH | Biogen Idec International Neuroscience GmbH | 6.0% Senior Notes due 2013 | 6.875% Senior Notes due 2018 | |||
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Venture capital investments as percentage of our assets | 'approximately 0.2% of total assets | 'approximately 0.2% of total assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of venture capital investments to assets | 0.20% | 0.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.88% |
Contingent consideration obligations | ' | ' | $251.90 | $271.50 | $140.70 | $135.30 | ' | $31.60 | ' | $29.80 | ' | $108.60 | $128.80 | ' | ' | ' |
Additions | 0 | 122.2 | ' | ' | ' | 122.2 | ' | ' | 38.8 | ' | ' | ' | ' | 81.2 | ' | ' |
Maximum contingent consideration in the form of development and approval milestones | ' | ' | ' | ' | ' | ' | 487.5 | 38.5 | ' | ' | 42.5 | 375 | ' | ' | ' | ' |
Discount rate used for net cash outflow projections for fair value measurement | ' | ' | ' | ' | 3.76% | 4.40% | ' | 1.50% | ' | ' | ' | 3.80% | ' | ' | ' | ' |
Milestone payments made during period | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | 12.5 | 2.5 | ' | ' | ' |
Total purchase price allocated to IPR&D | ' | ' | ' | ' | ' | ' | $219.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value measurements, changes in valuation techniques | '0 | '0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Marketable Debt and Equity Securities | ' | ' |
Fair Value | $1,245.90 | $3,171.70 |
Gross Unrealized Gains | 0.4 | 5.6 |
Gross Unrealized Losses | -0.3 | -1.9 |
Amortized Cost | 1,245.80 | 3,168 |
Corporate debt securities Current | ' | ' |
Marketable Debt and Equity Securities | ' | ' |
Fair Value | 100.7 | 346.9 |
Gross Unrealized Gains | 0 | 0.3 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 100.7 | 346.6 |
Corporate debt securities Non-current | ' | ' |
Marketable Debt and Equity Securities | ' | ' |
Fair Value | 339.1 | 654.1 |
Gross Unrealized Gains | 0.4 | 2.8 |
Gross Unrealized Losses | -0.1 | -0.6 |
Amortized Cost | 338.8 | 651.9 |
Government securities Current | ' | ' |
Marketable Debt and Equity Securities | ' | ' |
Fair Value | 519.5 | 783.4 |
Gross Unrealized Gains | 0 | 0.3 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 519.5 | 783.1 |
Government securities Non-current | ' | ' |
Marketable Debt and Equity Securities | ' | ' |
Fair Value | 155.2 | 874.4 |
Gross Unrealized Gains | 0 | 0.8 |
Gross Unrealized Losses | -0.1 | 0 |
Amortized Cost | 155.3 | 873.6 |
Mortgage and other asset backed securities Current | ' | ' |
Marketable Debt and Equity Securities | ' | ' |
Fair Value | 0 | 4.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 0 | 4.8 |
Mortgage and other asset backed securities Non-current | ' | ' |
Marketable Debt and Equity Securities | ' | ' |
Fair Value | 131.4 | 508.1 |
Gross Unrealized Gains | 0 | 1.4 |
Gross Unrealized Losses | -0.1 | -1.3 |
Amortized Cost | 131.5 | 508 |
Marketable equity securities | ' | ' |
Marketable Debt and Equity Securities | ' | ' |
Fair Value | 11.2 | 9 |
Gross Unrealized Gains | 8.7 | 3 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | $2.50 | $6 |
Financial_Instruments_Details_
Financial Instruments (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ' | ' |
Cash equivalents | $424.70 | $439.40 |
Commercial Paper | ' | ' |
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ' | ' |
Cash equivalents | 1.2 | 40.7 |
Overnight Reverse Repurchase Agreements | ' | ' |
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ' | ' |
Cash equivalents | 22.4 | 67.4 |
Short-term Debt Securities | ' | ' |
Summary of financial assets with original maturities of less than 90 days included within cash and cash equivalents | ' | ' |
Cash equivalents | $401.10 | $331.30 |
Financial_Instruments_Details_1
Financial Instruments (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of Contractual Maturities: Available-for-Sale Securities | ' | ' |
Due in one year or less, Estimated Fair Value | $620.20 | $1,135 |
Due in one year or less, Amortized Cost | 620.2 | 1,134.50 |
Due after one year through five years, Estimated Fair Value | 573.1 | 1,744.30 |
Due after one year through five years, Amortized Cost | 572.9 | 1,741.20 |
Due after five years, Estimated Fair Value | 52.6 | 292.4 |
Due after five years, Amortized Cost | 52.7 | 292.3 |
Total available-for-sale securities, Fair Value | 1,245.90 | 3,171.70 |
Total available-for-sale securities, Amortized Cost | $1,245.80 | $3,168 |
Financial_Instruments_Details_2
Financial Instruments (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Proceeds from Marketable Debt Securities | ' | ' | ' |
Proceeds from maturities and sales | $5,190,052,000 | $2,749,558,000 | $2,276,720,000 |
Realized gains | 6,600,000 | 2,100,000 | 3,900,000 |
Realized losses | ($2,100,000) | ($3,500,000) | ($2,300,000) |
Financial_Instruments_Details_3
Financial Instruments (Details Textual 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Financial Instruments (Textual) | ' | ' | ' |
Acquisition of TYSABRI rights | $3,262,719,000 | $0 | $0 |
Original maturities of commercial paper and short-term debt securities | 'less than 90Â days | ' | ' |
Average maturity of marketable securities, months | '13 months | '14 months | ' |
TYSABRI product | ' | ' | ' |
Financial Instruments (Textual) | ' | ' | ' |
Acquisition of TYSABRI rights | 3,250,000,000 | ' | ' |
Strategic Investments | ' | ' | ' |
Financial Instruments (Textual) | ' | ' | ' |
Impairment charges | $2,800,000 | $5,500,000 | $9,900,000 |
Financial_Instruments_Details_4
Financial Instruments (Details Textual 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investment | |||
Stromedix, Inc. | ' | ' | ' |
Business Acquisition | ' | ' | ' |
Recognized gain | ' | $9 | ' |
Strategic Investments | ' | ' | ' |
Business Acquisition | ' | ' | ' |
Strategic investment portfolio | 56.9 | 64.2 | ' |
Venture capital investments | 33.1 | 29.3 | ' |
Cost basis of equity securities of certain privately-held companies and venture capital funds | 23.8 | 34.9 | ' |
Net gains (losses) realized | 14.4 | 6.5 | 7.3 |
Number of strategic investments sold | ' | ' | 4 |
Selling price of strategic investments | ' | ' | 40.6 |
Gain (loss) from sale of strategic equity investments | ' | ' | 13.5 |
Portola Pharmaceuticals Member | Strategic Investments | ' | ' | ' |
Business Acquisition | ' | ' | ' |
Gain (loss) from sale of strategic equity investments | $7.10 | ' | ' |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Aggregate notional amount | $273.30 | $243.20 |
Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Aggregate notional amount | 742.6 | 524 |
Foreign Exchange Contract | Other Current Assets | Designated as Hedging Instrument | ' | ' |
Summary of derivatives designated as hedging instruments | ' | ' |
Asset derivatives | 0.6 | 0.6 |
Foreign Exchange Contract | Other Current Assets | Not Designated as Hedging Instrument [Member] | ' | ' |
Summary of derivatives designated as hedging instruments | ' | ' |
Asset derivatives | 3.2 | 1.2 |
Foreign Exchange Contract | Accrued Liabilities | Designated as Hedging Instrument | ' | ' |
Summary of derivatives designated as hedging instruments | ' | ' |
Liability derivatives | 23.4 | 11.5 |
Foreign Exchange Contract | Accrued Liabilities | Not Designated as Hedging Instrument [Member] | ' | ' |
Summary of derivatives designated as hedging instruments | ' | ' |
Liability derivatives | 0.1 | 2.9 |
Euro | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Aggregate notional amount | 636.3 | 492.2 |
Canadian Dollar | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Aggregate notional amount | 34 | 31.8 |
British pound sterling | Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Aggregate notional amount | $72.30 | $0 |
Derivative_Instruments_Details1
Derivative Instruments (Details 1) (Foreign Exchange Contract, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
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) | ($13.20) | $35.10 | ($36.90) |
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 | ($0.20) | $4.80 | ($3.90) |
Derivative_Instruments_Details2
Derivative Instruments (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' |
Lower range of durations of foreign currency forward contracts | '1 month | '1 month | ' |
Higher range of durations of foreign currency forward contracts | '18 months | '12 months | ' |
Gain/Loss on fair value of foreign currency forward contracts | ($23.60) | $11.80 | ($36.50) |
Expected settlement time for contracts, in months | '18 months | ' | ' |
Aggregate notional amount | 273.3 | 243.2 | ' |
Net gains (losses) of other income (expense) related to foreign currency forward contracts | $5.20 | $4.20 | $12.10 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | ' | ' |
Land | $59,700,000 | $55,700,000 |
Buildings | 961,500,000 | 902,500,000 |
Leasehold improvements | 139,600,000 | 107,300,000 |
Machinery and equipment | 944,500,000 | 882,000,000 |
Computer software and hardware | 559,200,000 | 476,600,000 |
Furniture and fixtures | 60,300,000 | 46,900,000 |
Construction in progress | 144,200,000 | 212,300,000 |
Total cost | 2,869,000,000 | 2,683,300,000 |
Less: accumulated depreciation | -1,118,300,000 | -941,100,000 |
Total property, plant and equipment, net | $1,750,710,000 | $1,742,226,000 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
Cambridge Leases | Cambridge Leases | Cambridge Leases | Hillerod Denmark Facility | Hillerod Denmark Facility | Eisai | ||||
Property, Plant and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense | $187.80 | $164.30 | $143.90 | $6.20 | $11.40 | $4.70 | ' | ' | ' |
Interest cost capitalization related to construction in progress | 7.8 | 25.4 | 32.6 | ' | ' | ' | ' | ' | ' |
Derecognition of construction in progress assets | ' | ' | ' | 161.5 | ' | ' | ' | ' | ' |
Construction cost incurred not yet paid | ' | ' | ' | ' | 86.5 | ' | ' | ' | ' |
Charges recognized to vacate building | ' | ' | ' | 27.2 | ' | ' | ' | ' | ' |
Total cost | $2,869 | $2,683.30 | ' | ' | ' | ' | ' | $465.90 | ' |
Average estimated useful life | ' | ' | ' | ' | ' | ' | '20 years | ' | ' |
Term of lease | ' | ' | ' | '15 years | ' | ' | ' | ' | '10 years |
Cancellation Period of Lease | ' | ' | ' | ' | ' | ' | ' | ' | '5 years |
Indebtedness_Details
Indebtedness (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2006 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | 6.0% Senior notes due 2013 | 6.0% Senior notes due 2013 | 6.875% Senior notes due 2018 | 6.875% Senior notes due 2018 | Note payable to Fumedica | Note payable to Fumedica | Note payable to Fumedica | Financing arrangements | Financing arrangements | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CHF | USD ($) | USD ($) | |||
Current portion: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of notes payable | ' | ' | $0 | $450,000,000 | ' | ' | $3,500,000 | $3,400,000 | ' | ' | ' |
Current portion of credit facility | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of notes payable and line of credit | 3,494,000 | 453,379,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current portion: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current notes payable | 567,900,000 | ' | ' | ' | 580,100,000 | 586,400,000 | 12,300,000 | 14,500,000 | 61,400,000 | ' | ' |
Construction cost incurred not yet paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 86,500,000 |
Non-current portion of notes payable and other financing arrangements | $592,433,000 | $687,396,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indebtedness_Details_1
Indebtedness (Details 1) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Total debt maturities | ' |
2014 | $3.50 |
2015 | 3.6 |
2016 | 3.6 |
2017 | 3.6 |
2018 | 553.6 |
2019 and thereafter | 0 |
Total | $567.90 |
Indebtedness_Details_Textual
Indebtedness (Details Textual) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 01, 2013 | Mar. 04, 2008 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 04, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2006 | Dec. 31, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | 6.0% Senior notes due 2013 | 6.0% Senior notes due 2013 | 6.875% Senior notes due 2018 | 6.875% Senior notes due 2018 | 6.875% Senior notes due 2018 | 6.875% Senior notes due 2018 | Note payable to Fumedica | Note payable to Fumedica | Note payable to Fumedica | Note payable to Fumedica | Note payable to Fumedica | Cambridge Leases | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CHF | USD ($) | CHF | CHF | USD ($) | |||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of senior notes | ' | ' | ' | ' | ' | $450,000,000 | ' | ' | ' | $550,000,000 | ' | ' | ' | ' | ' | ' |
Interest rate on senior notes | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | 6.88% | ' | ' | ' | ' | ' | ' |
Redemption percentage par value of senior notes | ' | ' | ' | ' | ' | 99.89% | ' | ' | ' | 99.18% | ' | ' | ' | ' | ' | ' |
Percentage of redemption of notes | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased carrying amount of interest rate swap | ' | ' | ' | ' | ' | ' | 62,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest to be amortized on debt | 32,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of borrowings | 452,340,000 | 2,428,000 | 11,459,000 | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable and other financing arrangements | 567,900,000 | ' | ' | ' | ' | ' | ' | 580,100,000 | 586,400,000 | ' | 12,300,000 | ' | 14,500,000 | ' | 61,400,000 | ' |
Present value of notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,800,000 | 14,000,000 | 17,900,000 | 16,400,000 | ' | ' |
Senior unsecured revolving credit facility maximum borrowing capacity | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, amount outstanding | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining obligation of financing arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $86,500,000 |
Debt Instrument, Payment Terms | ' 100% of the principal amount plus accrued interest and a specified make-whole amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Details
Equity (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of preferred stock | ' | ' |
Preferred stock, shares authorized | 8,000,000 | 8,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Summary of common stock | ' | ' |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 255,973,000 | 254,237,000 |
Common stock, shares outstanding | 236,332,000 | 236,582,000 |
Series A | ' | ' |
Summary of preferred stock | ' | ' |
Preferred stock, shares authorized | 1,750,000 | 1,750,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series X Junior Participating | ' | ' |
Summary of preferred stock | ' | ' |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Undesignated | ' | ' |
Summary of preferred stock | ' | ' |
Preferred stock, shares authorized | 5,250,000 | 5,250,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Equity_Details_Textual
Equity (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2011 |
Equity (Textual) | ' | ' | ' | ' |
Preferred stock, shares authorized | 8,000,000 | 8,000,000 | ' | ' |
Common stock shares authorized for repurchase | 4,200,000 | ' | ' | 20,000,000 |
Repurchase of common stock, shares | 2,000,000 | 7,800,000 | ' | ' |
Repurchase of common stock, value | $400,309 | $984,715 | $497,975 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax beginning balance | ($55,305,000) | ($26,500,000) | ($21,600,000) |
Other comprehensive income (loss), before reclassifications | 24,300,000 | 3,800,000 | -2,500,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,300,000 | -32,600,000 | -2,400,000 |
Net current period other comprehensive income (loss) | 27,560,000 | -28,705,000 | -22,000 |
Accumulated other comprehensive income (loss), net of tax ending balance | -27,745,000 | -55,305,000 | -26,500,000 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax beginning balance | 4,200,000 | 0 | 12,400,000 |
Other comprehensive income (loss), before reclassifications | 11,800,000 | 5,100,000 | -200,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | -10,400,000 | -900,000 | -12,200,000 |
Net current period other comprehensive income (loss) | 1,400,000 | 4,200,000 | -12,400,000 |
Accumulated other comprehensive income (loss), net of tax ending balance | 5,600,000 | 4,200,000 | 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax beginning balance | -10,700,000 | 32,800,000 | -9,800,000 |
Other comprehensive income (loss), before reclassifications | -26,700,000 | -11,800,000 | 32,800,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 13,700,000 | -31,700,000 | 9,800,000 |
Net current period other comprehensive income (loss) | -13,000,000 | -43,500,000 | 42,600,000 |
Accumulated other comprehensive income (loss), net of tax ending balance | -23,700,000 | -10,700,000 | 32,800,000 |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax beginning balance | -21,700,000 | -9,000,000 | 200,000 |
Other comprehensive income (loss), before reclassifications | 2,100,000 | -12,700,000 | -9,200,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | 2,100,000 | -12,700,000 | -9,200,000 |
Accumulated other comprehensive income (loss), net of tax ending balance | -19,600,000 | -21,700,000 | -9,000,000 |
Accumulated Translation Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax beginning balance | -27,100,000 | -50,300,000 | -24,400,000 |
Other comprehensive income (loss), before reclassifications | 37,100,000 | 23,200,000 | -25,900,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | 37,100,000 | 23,200,000 | -25,900,000 |
Accumulated other comprehensive income (loss), net of tax ending balance | 10,000,000 | -27,100,000 | -50,300,000 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Net current period other comprehensive income (loss) | $27,560,000 | ($28,770,000) | ($4,925,000) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | ($34,930) | ($744) | ($13,477) | |||||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 601,014 | 470,554 | 444,528 | |||||
Revenues | 1,965,900 | [1],[2] | 1,827,800 | 1,723,500 | [3] | 1,415,100 | [4] | 1,417,900 | [5] | 1,385,500 | 1,421,000 | [6] | 1,292,000 | 6,932,199 | 5,516,461 | 5,048,634 |
Net income | 457,300 | [1],[2] | 487,600 | 490,700 | [3] | 426,700 | [4] | 292,100 | [5] | 398,400 | 387,100 | [6] | 302,400 | 1,862,341 | 1,380,033 | 1,266,686 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | -3,300 | 32,600 | 2,400 | |||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 3,300 | 2,500 | ' | |||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 15,900 | 1,400 | 19,400 | |||||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -5,500 | -500 | -7,200 | |||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 1,100 | ' | |||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -500 | -3,400 | 1,300 | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | -13,200 | 35,100 | -11,100 | |||||
Other comprehensive income loss before reclassifications [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 6,394 | 2,940 | 133 | |||||
Other comprehensive income loss before reclassifications [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | $1,721 | $1,396 | $3,647 | |||||
[1] | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | |||||||||||||||
[2] | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | |||||||||||||||
[3] | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | |||||||||||||||
[4] | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | |||||||||||||||
[5] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | |||||||||||||||
[6] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net income attributable to Biogen Idec Inc | $457,300,000 | [1],[2] | $487,600,000 | $490,700,000 | [3] | $426,700,000 | [4] | $292,100,000 | [5] | $398,400,000 | $386,800,000 | [6] | $302,700,000 | $1,862,341,000 | $1,380,033,000 | $1,234,428,000 |
Adjustment for net income allocable to preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -500,000 | |||||
Net income used in calculating basic and diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | $1,862,300,000 | $1,380,000,000 | $1,233,900,000 | |||||
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Weighted average number of common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 236,919,000 | 237,938,000 | 242,395,000 | |||||
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Dilutive potential common shares | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 1,800,000 | 2,600,000 | |||||
Shares used in calculating diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 238,308,000 | 239,740,000 | 245,033,000 | |||||
Earnings per share (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Repurchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | 5,800,000 | 6,000,000 | |||||
Stock options and employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Stock options and employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 500,000 | 1,000,000 | |||||
Time-vested restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Stock options and employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 1,000,000 | 1,300,000 | |||||
Market stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Stock options and employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 300,000 | 300,000 | |||||
[1] | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | |||||||||||||||
[2] | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | |||||||||||||||
[3] | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | |||||||||||||||
[4] | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | |||||||||||||||
[5] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | |||||||||||||||
[6] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. |
ShareBased_Payments_Details
Share-Based Payments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Expense included in consolidated statements of income | ' | ' | ' |
Share-based compensation expense | $146,210,000 | $123,956,000 | $117,347,000 |
Subtotal | 255,900,000 | 184,300,000 | 150,100,000 |
Capitalized share-based compensation costs | -9,800,000 | -5,400,000 | -4,500,000 |
Share-based compensation expense included in total costs and expenses | 246,100,000 | 178,900,000 | 145,600,000 |
Income tax effect | -73,300,000 | -53,400,000 | -44,600,000 |
Research and development | ' | ' | ' |
Share-based Compensation Expense included in consolidated statements of income | ' | ' | ' |
Share-based compensation expense | 95,600,000 | 74,700,000 | 62,000,000 |
Selling, general and administrative | ' | ' | ' |
Share-based Compensation Expense included in consolidated statements of income | ' | ' | ' |
Share-based compensation expense | 160,300,000 | 109,600,000 | 88,700,000 |
Restructuring Charges | ' | ' | ' |
Share-based Compensation Expense included in consolidated statements of income | ' | ' | ' |
Share-based compensation expense | 0 | 0 | -600,000 |
Total share-based compensation expense, net of tax | ' | ' | ' |
Share-based Compensation Expense included in consolidated statements of income | ' | ' | ' |
Share-based compensation expense | $172,800,000 | $125,500,000 | $101,000,000 |
ShareBased_Payments_Details_1
Share-Based Payments (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of share based compensation expense associated with different programs | ' | ' | ' |
Share-based compensation expense | $146,210,000 | $123,956,000 | $117,347,000 |
Subtotal | 255,900,000 | 184,300,000 | 150,100,000 |
Capitalized share-based compensation costs | -9,800,000 | -5,400,000 | -4,500,000 |
Share-based compensation expense included in total costs and expenses | 246,100,000 | 178,900,000 | 145,600,000 |
Stock options | ' | ' | ' |
Summary of share based compensation expense associated with different programs | ' | ' | ' |
Share-based compensation expense | 600,000 | 2,300,000 | 5,900,000 |
Market stock units | ' | ' | ' |
Summary of share based compensation expense associated with different programs | ' | ' | ' |
Share-based compensation expense | 32,800,000 | 23,300,000 | 14,600,000 |
Time-vested restricted stock units | ' | ' | ' |
Summary of share based compensation expense associated with different programs | ' | ' | ' |
Share-based compensation expense | 103,500,000 | 93,000,000 | 89,600,000 |
Performance-vested restricted stock units settled in shares [Member] | ' | ' | ' |
Summary of share based compensation expense associated with different programs | ' | ' | ' |
Share-based compensation expense | 0 | 100,000 | 1,000,000 |
Cash settled performance shares | ' | ' | ' |
Summary of share based compensation expense associated with different programs | ' | ' | ' |
Share-based compensation expense | 109,800,000 | 60,400,000 | 32,700,000 |
Employee stock purchase plan | ' | ' | ' |
Summary of share based compensation expense associated with different programs | ' | ' | ' |
Share-based compensation expense | $9,200,000 | $5,200,000 | $6,300,000 |
ShareBased_Payments_Details_2
Share-Based Payments (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Stock Option Activity | ' |
Beginning Balance, Outstanding shares | 907,000 |
Beginning Balance, Weighted Average Exercise Price | $54.48 |
Shares, Granted | 0 |
Weighted Average Exercise Price, Granted | $0 |
Shares, Exercised | -523,000 |
Weighted Average Exercise Price, Exercised | $53.73 |
Shares, Cancelled | 0 |
Weighted Average Exercise Price, Cancelled | $0 |
Ending Balance, Outstanding shares | 384,000 |
Ending Balance, Weighted Average Exercise Price | $55.49 |
ShareBased_Payments_Details_3
Share-Based Payments (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Tax benefit and cash received from stock option | ' | ' | ' |
Tax benefit realized for stock options | $29.40 | $20.90 | $47.50 |
Cash received from the exercise of stock options | $28.10 | $38.80 | $291.90 |
ShareBased_Payments_Details_4
Share-Based Payments (Details 4) (Market stock units, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Market stock units | ' | ' | |
Market stock units activity | ' | ' | |
Beginning Balance, Unvested, Shares | 606,000 | ' | |
Beginning Balance, Weighted Average Grant Date Fair Value | $94.73 | ' | |
Shares, Granted | 271,000 | [1] | ' |
Weighted Average Grant Date Fair Value, Granted | $193.45 | [1] | $134.95 |
Shares, Vested | -296,000 | ' | |
Weighted Average Grant Date Fair Value, Vested | $85.12 | ' | |
Shares, Forfeited | -31,000 | ' | |
Weighted Average Grant Date Fair Value, Forfeited | $128.39 | ' | |
Ending Balance, Unvested, Shares | 550,000 | 606,000 | |
Ending Balance, Weighted Average Grant Date Fair Value | $128.04 | $94.73 | |
[1] | MSUs granted in 2013 include approximately 18,000 and 39,000 MSUs issued in 2013 based upon the attainment of performance criteria set for 2012 and 2011, respectively, in relation to shares granted in those years. The remainder of MSUs granted during 2013 include awards granted in conjunction with our annual awards made in February 2013 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. |
ShareBased_Payments_Details_5
Share-Based Payments (Details 5) (Market stock units, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Assumptions used in valuation of market based stock units | ' | ' | |
Expected dividend yield | 0.00% | 0.00% | |
Minimum range of risk-free interest rates | 0.10% | 0.20% | |
Maximum range of risk-free interest rates | 0.70% | 0.60% | |
60 calendar day average stock price on grant date minimum | $150.33 | $113.83 | |
60 calendar day average stock price on grant date maximum | $240.14 | $149.79 | |
Weighted average grant date fair value | $193.45 | [1] | $134.95 |
Minimum | ' | ' | |
Assumptions used in valuation of market based stock units | ' | ' | |
Range of expected stock price volatility | 21.70% | 29.60% | |
Maximum | ' | ' | |
Assumptions used in valuation of market based stock units | ' | ' | |
Range of expected stock price volatility | 25.70% | 34.00% | |
[1] | MSUs granted in 2013 include approximately 18,000 and 39,000 MSUs issued in 2013 based upon the attainment of performance criteria set for 2012 and 2011, respectively, in relation to shares granted in those years. The remainder of MSUs granted during 2013 include awards granted in conjunction with our annual awards made in February 2013 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. |
ShareBased_Payments_Details_6
Share-Based Payments (Details 6) (Cash settled performance shares) | 12 Months Ended | |
Dec. 31, 2013 | ||
Cash settled performance shares | ' | |
Cash settled performance shares | ' | |
Beginning Balance, Unvested, Shares | 592,000,000 | |
Shares, Granted | 273,000,000 | [1] |
Shares, Vested | -317,000,000 | |
Shares, Forfeited | -34,000,000 | |
Ending Balance, Unvested, Shares | 514,000,000 | |
[1] | CSPSs granted in 2013 include approximately 76,000 CSPSs issued in 2013 based upon the attainment of performance criteria set for 2012 in relation to shares granted in 2012. The remainder of the CSPSs granted in 2013 include awards granted in conjunction with our annual awards made in February 2013 and CSPSs 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. |
ShareBased_Payments_Details_7
Share-Based Payments (Details 7) (Time-vested restricted stock units, USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Time-vested restricted stock units | ' | ' | ' | |
Time-vested restricted stock units | ' | ' | ' | |
Beginning Balance, Unvested, Shares | 2,187,000 | ' | ' | |
Beginning Balance, Weighted Average Grant Date Fair Value | $90.37 | ' | ' | |
Shares, Granted | 758,000 | [1] | ' | ' |
Weighted Average Grant Date Fair Value, Granted | $176.53 | [1] | $124.54 | $70.01 |
Shares, Vested | -1,181,000 | ' | ' | |
Weighted Average Grant Date Fair Value, Vested | $79.17 | ' | ' | |
Shares, Forfeited | -104,000 | ' | ' | |
Weighted Average Grant Date Fair Value, Forfeited | $119.42 | ' | ' | |
Ending Balance, Unvested, Shares | 1,660,000 | 2,187,000 | ' | |
Ending Balance, Weighted Average Grant Date Fair Value | $135.95 | $90.37 | ' | |
[1] | RSUs granted in 2013 primarily represent RSUs granted in conjunction with our annual awards made in February 2013 and awards made in conjunction with the hiring of new employees. RSUs granted in 2013 also include approximately 16,000 RSUs granted to our Board of Directors. |
ShareBased_Payments_Details_8
Share-Based Payments (Details 8) (Performance vested restricted stock units, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Performance vested restricted stock units | ' | ' | ' |
Performance-Vested Restricted Stock Units (PVRSUs) | ' | ' | ' |
Beginning Balance, Unvested, Shares | 930 | ' | ' |
Beginning Balance, Weighted Average Grant Date Fair Value | $53.64 | ' | ' |
Shares, Granted | 0 | ' | 1,000 |
Weighted Average Grant Date Fair Value, Granted | $0 | $53.64 | ' |
Shares, Vested | -930 | ' | ' |
Weighted Average Grant Date Fair Value, Vested | $53.64 | ' | ' |
Shares, Forfeited | 0 | ' | ' |
Weighted Average Grant Date Fair Value, Forfeited | $0 | ' | ' |
Ending Balance, Unvested, Shares | 0 | 930 | ' |
Ending Balance, Weighted Average Grant Date Fair Value | $0 | $53.64 | ' |
ShareBased_Payments_Details_9
Share-Based Payments (Details 9) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Shares issued under employee stock purchase plan | ' | ' | ' |
Shares issued under ESPP | 245,000 | 274,000 | 434,000 |
Cash received under ESPP | $38.70 | $28.70 | $22.80 |
ShareBased_Payments_Details_Te
Share-Based Payments (Details Textual) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Plan | ||||
Share-Based Payments (Textual) | ' | ' | ' | |
Windfall tax benefits from vesting of stock awards, exercises of stock options and ESPP participation | $73.50 | $54.70 | $50.60 | |
Unrecognized compensation cost related to unvested share-based compensation | 193.6 | ' | ' | |
Weighted-average period to recognize the cost of unvested awards | '1 year 5 months | ' | ' | |
Number of share-based compensation plans pursuant to which awards are currently being made | 3 | ' | ' | |
Number of share-based compensation plans pursuant to which no further awards will be made | 5 | ' | ' | |
Number of shares granted under stock options | 0 | 0 | 0 | |
Total intrinsic value of options exercised | 86.2 | 63 | 149 | |
Aggregate intrinsic values of options outstanding | 86.1 | ' | ' | |
Weighted average remaining contractual term for options outstanding | '3 years 1 month | ' | ' | |
Outstanding stock options exercisable | 400,000 | ' | ' | |
Weighted-average exercise price | $55.49 | ' | ' | |
Aggregate intrinsic value of options exercisable | 85.5 | ' | ' | |
Weighted average remaining contractual term for options exercisable | '3 years 1 month | ' | ' | |
Total of vested and expected to vest options outstanding | 400,000 | ' | ' | |
Weighted average exercise price for vested and expected to vest options | $55.49 | ' | ' | |
Aggregate intrinsic value of vested and expected to vest options | 86.1 | ' | ' | |
Weighted average remaining contractual term of vested and expected to vest options | '3 years 1 month | ' | ' | |
Market stock units | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Number of equal annual increments | 4 | ' | ' | |
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) | 150.00% | ' | ' | |
Number of shares granted | 271,000 | [1] | ' | ' |
Number of days for calculation of average closing stock price | '60 days | ' | ' | |
Weighted average grant date fair value | $193.45 | [1] | $134.95 | ' |
Cash settled performance shares | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Number of equal annual increments | 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 | 273,000,000 | [2] | ' | ' |
Number of days for calculation of average closing stock price | '60 days | ' | ' | |
Cash in settlement of CSPS awards upon vesting | $48.30 | ' | ' | |
Time-vested restricted stock units | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Number of shares granted | 758,000 | [3] | ' | ' |
Weighted average grant date fair value | $176.53 | [3] | $124.54 | $70.01 |
Performance vested restricted stock units | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Number of equal annual increments | 3 | ' | ' | |
Number of shares granted | 0 | ' | 1,000 | |
Weighted average grant date fair value | $0 | $53.64 | ' | |
Maximum percentage of earnings of target number of shares granted if maximum threshold limit is attained | 200.00% | ' | ' | |
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 | ' | ' | |
Omnibus Plans | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Total number of shares of common stock for issuance | 15,000,000 | ' | ' | |
Ratio of total number of shares reserved under the plan | '1.5-to-1 | ' | ' | |
Attainment Of Performance Criteria | Market stock units | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Number of shares granted | 18,000 | ' | ' | |
Attainment Of Performance Criteria | Cash settled performance shares | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Number of shares granted | 76,000 | ' | ' | |
Attainment Of Performance Criteria in 2010 [Member] | Market stock units | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Number of shares granted | 39,000 | ' | ' | |
Director | Time-vested restricted stock units | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Number of shares granted | 16,000 | ' | ' | |
Annual Vesting | Time-vested restricted stock units | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |
Time vested RSU vesting percentage | 33.00% | ' | ' | |
[1] | MSUs granted in 2013 include approximately 18,000 and 39,000 MSUs issued in 2013 based upon the attainment of performance criteria set for 2012 and 2011, respectively, in relation to shares granted in those years. The remainder of MSUs granted during 2013 include awards granted in conjunction with our annual awards made in February 2013 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. | |||
[2] | CSPSs granted in 2013 include approximately 76,000 CSPSs issued in 2013 based upon the attainment of performance criteria set for 2012 in relation to shares granted in 2012. The remainder of the CSPSs granted in 2013 include awards granted in conjunction with our annual awards made in February 2013 and CSPSs 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. | |||
[3] | RSUs granted in 2013 primarily represent RSUs granted in conjunction with our annual awards made in February 2013 and awards made in conjunction with the hiring of new employees. RSUs granted in 2013 also include approximately 16,000 RSUs granted to our Board of Directors. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income before income taxes (benefit): | ' | ' | ' |
Domestic | $1,953,000,000 | $1,398,000,000 | $1,408,900,000 |
Foreign | 527,600,000 | 457,100,000 | 302,300,000 |
Income before income tax expense and equity in loss of investee, net of tax | 2,480,579,000 | 1,855,105,000 | 1,711,214,000 |
Current | ' | ' | ' |
Federal | 700,900,000 | 507,900,000 | 231,700,000 |
State | 98,400,000 | 35,600,000 | 15,100,000 |
Foreign | 46,800,000 | 44,000,000 | 44,100,000 |
Total | 846,100,000 | 587,500,000 | 290,900,000 |
Deferred | ' | ' | ' |
Federal | -200,600,000 | -133,000,000 | 160,900,000 |
State | -35,900,000 | -13,000,000 | -8,100,000 |
Foreign | -8,600,000 | 29,100,000 | 800,000 |
Total | -245,077,000 | -116,900,000 | 153,576,000 |
Total income tax expense | $601,014,000 | $470,554,000 | $444,528,000 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Components of deferred tax assets and liabilities | ' | ' |
Tax credits | $64.10 | $69.30 |
Inventory, other reserves, and accruals | 169.6 | 118.3 |
Capitalized costs | 7.9 | 7.6 |
Intangibles, net | 124.2 | 84.5 |
Net operating loss | 14.7 | 37.5 |
Share-based compensation | 85 | 58.6 |
Other | 76.9 | 57.8 |
Valuation allowance | -1.5 | -12.3 |
Total deferred tax assets | 540.9 | 421.3 |
Purchased intangible assets | -550.8 | -411.3 |
Unrealized gain on investments and cumulative translation adjustment | -3.2 | -1.2 |
Inventory | -24.9 | -50.8 |
Depreciation, amortization and other | -112.6 | -146.4 |
Total deferred tax liabilities | $691.50 | $609.70 |
Income_Taxes_Details_2
Income Taxes (Details 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation between the U.S. federal statutory tax rate and effective tax rate | ' | ' | ' |
Statutory rate | 35.00% | 35.00% | 35.00% |
State taxes | 3.10% | 0.90% | 1.70% |
Taxes on foreign earnings | -6.70% | -6.20% | -5.90% |
Credits and net operating loss utilization | -2.60% | -3.50% | -4.40% |
Purchased intangible assets | 1.50% | 1.20% | 1.30% |
Manufacturing deduction | -6.60% | -2.10% | -1.50% |
Permanent items | 0.80% | -0.40% | 0.30% |
Contingent consideration | 0.00% | 0.50% | 0.70% |
Other | -0.30% | 0.00% | -1.20% |
Effective tax rate | 24.20% | 25.40% | 26.00% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of the beginning and ending of unrecognized tax benefits | ' | ' | ' |
Balance at January 1 | $125.90 | $64.40 | $121.50 |
Additions based on tax positions related to the current period | 11.9 | 13 | 2.2 |
Additions for tax positions of prior periods | 71.7 | 69.8 | 48.6 |
Reductions for tax positions of prior periods | -92.1 | -18.6 | -75.8 |
Statute expirations | -1.9 | -1.9 | -2.3 |
Settlements | -5.4 | -0.8 | -29.8 |
Balance at December 31 | $110.10 | $125.90 | $64.40 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Oct. 15, 2013 | Aug. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Aug. 18, 2011 | Jun. 08, 2010 | Dec. 31, 2006 | |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign | ' | ' | ' | ($8,600,000) | $29,100,000 | $800,000 | ' | ' | ' | ' |
Tax accounting correction | ' | ' | ' | ' | 29,000,000 | ' | ' | ' | ' | ' |
Total deferred charges and prepaid taxes | ' | ' | ' | 248,900,000 | 33,400,000 | ' | ' | ' | ' | ' |
Deferred tax liability recognized | ' | ' | ' | 203,700,000 | ' | ' | ' | ' | ' | ' |
Net benefit for a previously unrecognized position | ' | ' | ' | ' | ' | ' | 49,800,000 | ' | ' | ' |
Expense for non-income based state taxes | ' | ' | ' | ' | ' | ' | 11,300,000 | ' | ' | ' |
Proposed Disallowance By Tax Authorities For Payment For Services | ' | ' | 130,000,000 | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed Foreign Earnings Of Non Us Subsidiaries | ' | ' | ' | 3,800,000,000 | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefit | ' | ' | 31,300,000 | 32,500,000 | 109,500,000 | 31,300,000 | ' | ' | ' | ' |
Net Interest Expense Benefit | ' | ' | ' | 4,500,000 | 100,000 | 12,900,000 | ' | ' | ' | ' |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | ' | ' | ' | 11,300,000 | 2,500,000 | ' | ' | ' | ' | ' |
Notice of Assessment of corporate excise tax including penalties and interest | ' | ' | ' | ' | ' | ' | ' | ' | 103,500,000 | 38,900,000 |
Tax Adjustments, Settlements, and Unusual Provisions | 5,000,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Adjustments And Settlements Interest | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Tax Liability On Undistributed Earnings Of Foreign Subsidiaries | ' | ' | ' | 900,000,000 | ' | ' | ' | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Tax Liability On Undistributed Earnings Of Foreign Subsidiaries | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' |
General Business | Domestic Country | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | 36,800,000 | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Amount | ' | ' | ' | 4,200,000 | ' | ' | ' | ' | ' | ' |
General Business | State and Local Jurisdiction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | ' | ' | ' | 108,100,000 | ' | ' | ' | ' | ' | ' |
General Business | Foreign Tax Authority [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | 5,900,000 | ' | ' | ' | ' | ' | ' |
Research | State and Local Jurisdiction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Amount | ' | ' | ' | 113,000,000 | ' | ' | ' | ' | ' | ' |
Hillerod Denmark Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign | ' | ' | ' | ' | $33,100,000 | ' | ' | ' | ' | ' |
Other_Consolidated_Financial_S2
Other Consolidated Financial Statement Detail (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash Paid During the Year | ' | ' | ' |
Interest | $53,600,000 | $65,400,000 | $66,700,000 |
Income taxes | 643,200,000 | 526,600,000 | 332,700,000 |
Other Income (Expense), Net | ' | ' | ' |
Interest income | 8,200,000 | 29,500,000 | 19,200,000 |
Interest expense | -31,900,000 | -36,500,000 | -33,000,000 |
Impairment of investments | -2,800,000 | -5,500,000 | -9,900,000 |
Gain (loss) on sales of investments, net | 21,700,000 | 10,600,000 | 18,800,000 |
Foreign exchange gains (losses), net | -15,200,000 | -2,500,000 | -6,300,000 |
Other, net | -14,900,000 | 3,700,000 | -2,300,000 |
Total other income (expense), net | -34,930,000 | -744,000 | -13,477,000 |
Accrued Expenses and Other | ' | ' | ' |
Employee compensation and benefits | 343,400,000 | 248,500,000 | ' |
Revenue-related rebates | 264,900,000 | 191,000,000 | ' |
Deferred revenue | 172,700,000 | 148,000,000 | ' |
Royalties and licensing fees | 160,700,000 | 45,200,000 | ' |
Clinical development expenses | 55,200,000 | 51,600,000 | ' |
Current portion of contingent consideration obligations | 29,000,000 | 22,400,000 | ' |
Construction in progress accrual | 25,000,000 | 12,300,000 | ' |
Collaboration expenses | 18,700,000 | 37,400,000 | ' |
Other | 285,600,000 | 223,500,000 | ' |
Total accrued expenses and other | $1,355,187,000 | $979,945,000 | ' |
Other_Consolidated_Financial_S3
Other Consolidated Financial Statement Detail (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 08, 2012 | Dec. 31, 2011 | Mar. 04, 2008 | |
Cambridge Leases | Stromedix, Inc. | Stromedix, Inc. | Biogen Dompe SRL and Biogen Dompe Switzerland GmbH | 6.0% Senior notes due 2013 | ||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' |
Derecognition of construction in progress assets | ' | ' | ' | $161,500,000 | ' | ' | ' | ' |
Total purchase price allocated to IPR&D | ' | ' | ' | ' | ' | 219,200,000 | ' | ' |
Total purchase price allocated to goodwill | 1,232,916,000 | 1,201,296,000 | 1,146,300,000 | ' | ' | 48,200,000 | ' | ' |
Contingent consideration obligation | $0 | $122,200,000 | ' | ' | $122,200,000 | ' | $38,800,000 | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | 6.00% |
Investments_in_Variable_Intere2
Investments in Variable Interest Entities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Neurimmune | ' | ' | ' |
Summary of activity related to collaboration | ' | ' | ' |
Milestone payments made during period | $0 | $0 | $15 |
Biogen Idec's share of expense reflected within our consolidation statements of income | 27.2 | 13.3 | 24.2 |
Collaboration expense attributed to noncontrolling interests, net of tax | 0 | 0 | 14.7 |
Total expense incurred by Biogen Idec | 115.7 | ' | ' |
Estimate of additional amounts to be incurred by us in development of the lead compound | 800.9 | ' | ' |
Knopp | ' | ' | ' |
Summary of activity related to collaboration | ' | ' | ' |
Milestone payments made during period | 0 | 0 | 10 |
Biogen Idec's share of expense reflected within our consolidation statements of income | 0 | 113 | 54.8 |
Collaboration expense attributed to noncontrolling interests, net of tax | $0 | $0 | $8.60 |
Investments_in_Variable_Intere3
Investments in Variable Interest Entities (Details Textual) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Investment in Variable Interest Entities (Textual) | ' | ' | ' | ' |
Percentage of operations of joint venture investments on financial statements | ' | ' | 100.00% | ' |
Percentage of net income (loss) attributable to noncontrolling interests | ' | ' | 50.00% | ' |
Investment in biotechnology companies that are determined to be unconsolidated variable interest entities | $5.50 | $9.40 | ' | ' |
Knopp | ' | ' | ' | ' |
Investment in Variable Interest Entities (Textual) | ' | ' | ' | ' |
Total upfront and reimbursement payment made to collaborative partner | ' | ' | ' | 26.4 |
Purchase consideration for variable interest entities | ' | ' | ' | 60 |
Research and development expense | ' | 12.3 | ' | ' |
Percentage of funding for R&D cost required in support of the collaboration agreement | 100.00% | ' | ' | ' |
Milestone payments made during period | 0 | 0 | 10 | ' |
Neurimmune | ' | ' | ' | ' |
Investment in Variable Interest Entities (Textual) | ' | ' | ' | ' |
Percentage of funding for R&D cost required in support of the collaboration agreement | 100.00% | ' | ' | ' |
Remaining potential development milestone payments and royalties on commercial sales under the terms of collaboration agreement | 345 | ' | ' | ' |
Milestone payments made during period | $0 | $0 | $15 | ' |
Common Class B | Knopp | ' | ' | ' | ' |
Investment in Variable Interest Entities (Textual) | ' | ' | ' | ' |
Purchase of common shares in variable interest entities | ' | ' | ' | 30.00% |
Collaborative_and_Other_Relati2
Collaborative and Other Relationships (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue on sales in the rest of world for RITUXAN | $1,607,100,000 | [1],[2] | $1,453,600,000 | $1,385,900,000 | [3] | $1,095,800,000 | [4] | $1,074,700,000 | [5] | $1,039,100,000 | $1,076,800,000 | [6] | $975,400,000 | $5,542,331,000 | $4,166,074,000 | $3,836,117,000 |
Total unconsolidated joint business revenues | 269,400,000 | [1],[2] | 303,200,000 | 288,800,000 | [3] | 264,600,000 | [4] | 280,900,000 | [5] | 287,800,000 | 284,600,000 | [6] | 284,600,000 | 1,126,017,000 | 1,137,923,000 | 996,597,000 |
U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue on sales in the rest of world for RITUXAN | ' | ' | ' | ' | ' | ' | ' | ' | 3,581,000,000 | 2,176,800,000 | 1,954,800,000 | |||||
Roche Group - Genentech | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total unconsolidated joint business revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,126,000,000 | 1,137,900,000 | 996,600,000 | |||||
Roche Group - Genentech | U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Biogen Idec's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA | ' | ' | ' | ' | ' | ' | ' | ' | 1,085,200,000 | 1,031,700,000 | 872,700,000 | |||||
Reimbursement of our selling and development expenses in the U.S. for RITUXAN | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | 1,600,000 | 6,100,000 | |||||
GAZYVA [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
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% | ' | ' | |||||
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 | Roche Group - Genentech | Outside the U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue on sales in the rest of world for RITUXAN | ' | ' | ' | ' | ' | ' | ' | ' | $38,700,000 | $104,600,000 | $117,800,000 | |||||
[1] | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | |||||||||||||||
[2] | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | |||||||||||||||
[3] | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | |||||||||||||||
[4] | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | |||||||||||||||
[5] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | |||||||||||||||
[6] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. |
Collaborative_and_Other_Relati3
Collaborative and Other Relationships (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Acorda | ' | ' | ' |
Summary of activity related to collaboration with Acorda | ' | ' | ' |
Total upfront and milestone payments made to Acorda | $0 | $0 | $25 |
Total cost of sales related to royalties and commercial supply reflected within our consolidated statements of income | $24.30 | $20.20 | $6.50 |
GAZYVA [Member] | ' | ' | ' |
Collaborative arrangements and non-collaborative arrangement transactions | ' | ' | ' |
Percentage Of Co Promotion Operating Profits Greater Than First Fifty Million Option Two Sub Option Two | 37.50% | ' | ' |
Collaborative_and_Other_Relati4
Collaborative and Other Relationships (Details 2) | 12 Months Ended | |
Dec. 31, 2013 | ||
Sobi rate to Biogen on net sales in the Sobi Territory [Member] | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Reimbursement, under the amended agreement, Method | 'Royalty | |
Rate during the reimbursement period | 'Base Rate plus 5% | [1] |
Sobi rate to Biogen on net sales in the Sobi Territory [Member] | Maximum | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Base rate following first commercial sale in the territory | 12.00% | [1] |
Sobi rate to Biogen on net sales in the Sobi Territory [Member] | Minimum | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Base rate following first commercial sale in the territory | 10.00% | [1] |
Biogen rate to sobi on net sales in the Biogen North America Territory [Member] | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Reimbursement, under the amended agreement, Method | 'Royalty | |
Rate during the reimbursement period | 'Base Rate less 5% | [1] |
Biogen rate to sobi on net sales in the Biogen North America Territory [Member] | Maximum | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Base rate following first commercial sale in the territory | 12.00% | [1] |
Biogen rate to sobi on net sales in the Biogen North America Territory [Member] | Minimum | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Base rate following first commercial sale in the territory | 10.00% | [1] |
Biogen rate to sobi on net sales in the Biogen North America Territory [Member] | Sobi Territory [Member] | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Rate prior to first commercial sale in the territory | 2.00% | |
Biogen rate to sobi on net sales in the Biogen direct Territory [Member] | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Reimbursement, under the amended agreement, Method | 'Royalty | |
Rate during the reimbursement period | 'Base Rate less 5% | [1] |
Biogen rate to sobi on net sales in the Biogen direct Territory [Member] | Maximum | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Base rate following first commercial sale in the territory | 17.00% | [1] |
Biogen rate to sobi on net sales in the Biogen direct Territory [Member] | Minimum | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Base rate following first commercial sale in the territory | 15.00% | [1] |
Biogen rate to sobi on net sales in the Biogen direct Territory [Member] | Sobi Territory [Member] | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Rate prior to first commercial sale in the territory | 2.00% | |
Biogen rate to Sobi on net revenue from the Biogen distributor Territory [Member] | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Reimbursement, under the amended agreement, Method | 'Net Revenue Share | [2],[3] |
Rate during the reimbursement period | 'Base Rate less 15% | [1],[2],[3] |
Biogen rate to Sobi on net revenue from the Biogen distributor Territory [Member] | Sobi Territory [Member] | ' | |
Mechanism for reimbursement, under the amended agreement amounts payable | ' | |
Rate prior to first commercial sale in the territory | 10.00% | [2],[3] |
Base rate following first commercial sale in the territory | 50.00% | [1],[2],[3] |
[1] | A credit will be issued to Sobi against its reimbursement of the Opt-in Consideration in an amount equal to the difference in the rate paid by Biogen Idec to Sobi on sales in the Biogen Idec territories for certain periods prior to the first commercial sale in the Sobi Territory versus the rate that otherwise would have been payable on such sales. | |
[2] | Net revenue represents Biogen Idec’s pre-tax receipts from third-party distributors, less expenses incurred by Biogen Idec in the conduct of commercialization activities supporting the distributor activities. | |
[3] | The Biogen Idec Distributor Territory represents Biogen Idec territories where sales are derived utilizing a third-party distributor. |
Collaborative_and_Other_Relati5
Collaborative and Other Relationships (Details 3) (AbbVie, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
AbbVie | ' | ' | ' |
Summary of activity related to collaboration with Facet Biotech | ' | ' | ' |
Total expense incurred by collaboration | $133.40 | $128 | $105.20 |
Biogen Idec's share of expense reflected within our consolidation statements of income | $71 | $65.60 | $54.20 |
Collaborative_and_Other_Relati6
Collaborative and Other Relationships (Details 4) (Portola Pharmaceuticals, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Portola Pharmaceuticals | ' | ' | ' |
Summary of activity related to collaboration with Portola Pharmaceuticals, Inc. | ' | ' | ' |
Total expense incurred by collaboration | $1.60 | $18.80 | $1.10 |
Biogen Idec's share of expense reflected within our consolidation statements of income | $1.60 | $14.20 | $0.90 |
Collaborative_and_Other_Relati7
Collaborative and Other Relationships (Details Textual) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Jan. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 29, 2012 | Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Biogen Idec Hemophilia | U.S | U.S | U.S | Maximum | Minimum | Roche Group - Genentech | Roche Group - Genentech | Roche Group - Genentech | Genentech | Genentech | Elan | Elan | Elan | Acorda | Acorda | Swedish Orphan Biovitrum | Swedish Orphan Biovitrum | Swedish Orphan Biovitrum | AbbVie | Portola Pharmaceuticals | Portola Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | Proteostasis Therapeutics | Proteostasis Therapeutics | Other research and discovery | RITUXAN | RITUXAN | RITUXAN | RITUXAN | RITUXAN | GAZYVA [Member] | Ocrelizumab | Ocrelizumab | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | New Anti-CD20 | New Anti-CD20 | New Anti-CD20 | Hoechst | Hoechst | Hoechst | Hoechst | Cash and cash equivalents | Accrued Liabilities | Strategic Investments | Strategic Investments | ||||||
USD ($) | USD ($) | USD ($) | U.S | U.S | U.S | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Maximum | Minimum | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Maximum | Minimum | USD ($) | Maximum | Minimum | USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | Third Party Anti CD-20 | Third Party Anti CD-20 | Third Party Anti CD-20 | USD ($) | EUR (€) | USD ($) | RITUXAN | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | USD ($) | Portola Pharmaceuticals | ||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Roche Group - Genentech | Roche Group - Genentech | Roche Group - Genentech | Genentech | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collaborative arrangements and non-collaborative arrangement transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Royalties Terms Of Collaboration Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10% and 12% on sales of RITUXAN outside the U.S. and Canada, with the royalty period lasting 11 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Royalty Period For Substantially All Remaining Royalty Bearing Sales Rest Of World | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'expire through 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage Of Co Promotion Operating Profits Greater Than First Fifty Million Option Two Sub Option Three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Collaborative and Other Relationships (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of royalties as per collaboration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Period of collaboration agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '11 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of future development and commercialization expenses payable related to GAZYVA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Future royalties percentage to be received on sale of ocrelizumab | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.00% | 13.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of Co promotion Operating Profits first fifty million | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Limit of gross sale of GAZYVA to be achieved in preceding 12 months under option one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Limit of gross sale of GAZYVA to be achieved in any 12 months under option one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Sales Trigger Gross Sales Threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Future percentage of co-promotion operating profits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38.00% | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage Of Co Promotion Operating Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Estimates of compensatory damages and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Decrease In Share Of Co Promotion Profits Due To Estimated Compensation Damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,500,000 | ' | 49,700,000 | 50,000,000 | ' | ' | ' | ' | |||||
Compensatory damages and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108,000,000 | ' | ' | ' | ' | ' | ' | |||||
Prejudgment interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,000,000 | ' | ' | ' | ' | ' | ' | |||||
Revenue on sales in the rest of world for RITUXAN | 1,607,100,000 | [1],[2] | 1,453,600,000 | 1,385,900,000 | [3] | 1,095,800,000 | [4] | 1,074,700,000 | [5] | 1,039,100,000 | 1,076,800,000 | [6] | 975,400,000 | 5,542,331,000 | 4,166,074,000 | 3,836,117,000 | ' | 3,581,000,000 | 2,176,800,000 | 1,954,800,000 | ' | ' | ' | ' | ' | ' | 41,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Biogen Idec's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,085,200,000 | 1,031,700,000 | 872,700,000 | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of share of Co promotion profits exceeding $50 million | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 40.00% | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | 120,000,000 | ' | 36,800,000 | ' | ' | ' | ' | 10,000,000 | 75,000,000 | 30,000,000 | 12,000,000 | 29,000,000 | ' | ' | 2,500,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,700,000 | 35,400,000 | 26,900,000 | ' | ' | ' | ' | 21,000,000 | 15,000,000 | ' | ' | |||||
Reimbursements of research and developments expense from Elan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,700,000 | 43,700,000 | 47,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reimbursements of selling general and administrative expenses from Elan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,600,000 | 99,900,000 | 77,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Amount reflected in collaboration profit sharing line for collaboration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,400,000 | 317,900,000 | 317,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total milestone payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Expected additional milestone payments for successful achievement of regulatory and commercial sales milestones | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 375,000,000 | ' | ' | ' | ' | ' | 406,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Expected additional milestone payments when certain sales threshold is met | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Foreign sales required to trigger milestone | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Stock acquired in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Consideration per product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of reimbursement expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of development reimbursement expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reimbursement cost achieving period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Time period for paying remaining balance due | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Term for revocation option right | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Estimated additional payments upon achievement of development and commercial milestones. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Amount paid to purchase Portola equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Gain Loss From Sale Of Strategic Equity Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,500,000 | 7,100,000 | |||||
Term of collaboration agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total upfront and milestone payments made to collaborative partner | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Prepaid research and discovery services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
License Fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000,000 | 70,000,000 | 75,000,000 | ' | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Expected License Fee And Regulatory Milestone Payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | 130,000,000 | 150,000,000 | ' | 130,000,000 | 130,000,000 | 130,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Additional milestone payments for product candidate using a different modality | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Additional Milestone Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 59,000,000 | ' | ' | ' | 10,000,000 | 59,000,000 | ' | 40,000,000 | ' | 197,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Investments By Third Party In Joint Venture As Per Agreement. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | 280,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Other Assets, Noncurrent | 594,350,000 | ' | ' | ' | 274,054,000 | ' | ' | ' | 594,350,000 | 274,054,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Joint Venture Owner Ship Percentage By Third Party. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | 49,500,000,000 | 23,900,000 | 25,200,000,000 | 27,800,000 | 29,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of equity interest to the portion of total capital stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Equity Method Investment Ownership Percentage Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.90% | 49.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Payments to Acquire Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,400,000 | 13,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income (Loss) from Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | -17,224,000 | -4,518,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -17,200,000 | ' | -4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Other revenues from external customers | $89,400,000 | [1],[2] | $71,000,000 | $48,800,000 | [3] | $54,700,000 | [4] | $62,300,000 | [5] | $58,600,000 | $59,600,000 | [6] | $32,000,000 | $263,851,000 | $212,464,000 | $215,920,000 | ' | $193,500,000 | $170,200,000 | $187,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $43,100,000 | ' | $13,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. |
Litigation_Details
Litigation (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2011 |
Hoechst | Hoechst | Hoechst | Canada Lease Dispute | ITALY | ITALY | Genentech | |
USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | EUR (€) | RITUXAN | |
Hoechst | |||||||
USD ($) | |||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Compensatory damages | ' | € 108 | ' | $2.60 | ' | ' | ' |
Prejudgment interest | ' | 54 | ' | ' | ' | ' | ' |
Decrease In Share Of Co Promotion Profits Due To Estimated Compensation Damages | 41.5 | ' | 49.7 | ' | ' | ' | 50 |
Payment in case of any unfavorable determination received | ' | ' | ' | ' | 30.7 | ' | ' |
Limited period for government reimbursement | ' | ' | ' | ' | '24 months | ' | ' |
Automatic renewal period for the resolution | ' | ' | ' | ' | '24 months | ' | ' |
Reimbursement limit stated in the resolution | ' | ' | ' | ' | '24 months | ' | ' |
Loss contingency, expected settlement | ' | ' | ' | ' | ' | € 33.30 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 | |
In Millions, unless otherwise specified | ||
Minimum rental commitments under non-cancelable leases | ' | |
Minimum lease payments, 2014 | $66.80 | [1] |
Minimum lease payments, 2015 | 64.2 | [1] |
Minimum lease payments, 2016 | 57 | [1] |
Minimum lease payments, 2017 | 54.9 | [1] |
Minimum lease payments, 2018 | 49.8 | [1] |
Minimum lease payments, Thereafter | 384.4 | [1] |
Minimum lease payments, Total | 677.1 | [1] |
Less: income from subleases, 2014 | 0 | |
Less: income from subleases, 2015 | -5.6 | |
Less: income from subleases, 2016 | -6 | |
Less: income from subleases, 2017 | -6 | |
Less: income from subleases, 2018 | -6.3 | |
Less: income from subleases, Thereafter | -41.5 | |
Less: income from subleases, Total | -65.4 | |
Net minimum lease payments, 2014 | 66.8 | |
Net minimum lease payments, 2015 | 58.6 | |
Net minimum lease payments, 2016 | 51 | |
Net minimum lease payments, 2017 | 48.9 | |
Net minimum lease payments, 2018 | 43.5 | |
Net minimum lease payments, Thereafter | 342.9 | |
Net minimum lease payments, Total | $611.70 | |
[1] | Includes future minimum rental commitments related to leases executed for two office buildings in Cambridge, Massachusetts, which completed construction in July and November 2013. The leases both have 15 year terms and we have options to extend the term of each lease for two additional five-year terms. Future minimum rental commitments under these leases will total approximately $340.0 million over the initial 15Â year lease terms.As a result of our decision to relocate our corporate headquarters to Cambridge, Massachusetts, we vacated part of our Weston, Massachusetts facility in the fourth quarter of 2013. We incurred a charge of $27.2 million in connection with this move. This charge represents our remaining lease obligation for the vacated portion of our Weston facility, net of sublease income expected to be received. The term of our sublease to the vacated portion of our Weston facility started in January 2014 and will continue through the remaining term of our lease agreement. For additional information related to these transactions, please read Note 11, Property, Plant and Equipment to these consolidated financial statements. |
Commitments_and_Contingencies_2
Commitments and Contingencies Commitments and Contingencies (Details 1) (Fumapharm AG, USD $) | Dec. 31, 2013 |
Five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Cumulative sales level | $500,000,000 |
One billion | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Cumulative sales level | 1,000,000,000 |
Two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Cumulative sales level | 2,000,000,000 |
Three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Cumulative sales level | 3,000,000,000 |
Each additional one billion up to twenty billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Cumulative sales level | 20,000,000,000 |
Each additional sales level | 1,000,000,000 |
Less than five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 500,000,000 |
Less than five hundred million [Member] | Five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Less than five hundred million [Member] | One billion | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Less than five hundred million [Member] | Two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Less than five hundred million [Member] | Three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Less than five hundred million [Member] | Each additional one billion up to twenty billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Five hundred million to one billion [Member] | Five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 22,000,000 |
Five hundred million to one billion [Member] | One billion | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 25,000,000 |
Five hundred million to one billion [Member] | Two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 50,000,000 |
Five hundred million to one billion [Member] | Three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 50,000,000 |
Five hundred million to one billion [Member] | Each additional one billion up to twenty billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 50,000,000 |
One billion to one point five billion [Member] | Five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
One billion to one point five billion [Member] | One billion | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 50,000,000 |
One billion to one point five billion [Member] | Two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 100,000,000 |
One billion to one point five billion [Member] | Three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 100,000,000 |
One billion to one point five billion [Member] | Each additional one billion up to twenty billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 100,000,000 |
One point five billion to two billion [Member] | Five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
One point five billion to two billion [Member] | One billion | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
One point five billion to two billion [Member] | Two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 150,000,000 |
One point five billion to two billion [Member] | Three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 150,000,000 |
One point five billion to two billion [Member] | Each additional one billion up to twenty billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 150,000,000 |
Two billion to two point five billion [Member] | Five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Two billion to two point five billion [Member] | One billion | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Two billion to two point five billion [Member] | Two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 200,000,000 |
Two billion to two point five billion [Member] | Three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 200,000,000 |
Two billion to two point five billion [Member] | Each additional one billion up to twenty billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 200,000,000 |
Two point five billion to three billion [Member] | Five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Two point five billion to three billion [Member] | One billion | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Two point five billion to three billion [Member] | Two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Two point five billion to three billion [Member] | Three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 250,000,000 |
Two point five billion to three billion [Member] | Each additional one billion up to twenty billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 250,000,000 |
Greater than three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 3,000,000,000 |
Greater than three billion [Member] | Five hundred million [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Greater than three billion [Member] | One billion | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Greater than three billion [Member] | Two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Greater than three billion [Member] | Three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 0 |
Greater than three billion [Member] | Each additional one billion up to twenty billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Milestone payment due on the prior 12 month sales | 300,000,000 |
Minimum [Member] | Five hundred million to one billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 500,000,000 |
Minimum [Member] | One billion to one point five billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 1,000,000,000 |
Minimum [Member] | One point five billion to two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 1,500,000,000 |
Minimum [Member] | Two billion to two point five billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 2,000,000,000 |
Minimum [Member] | Two point five billion to three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 2,500,000,000 |
Maximum | Five hundred million to one billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 1,000,000,000 |
Maximum | One billion to one point five billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 1,500,000,000 |
Maximum | One point five billion to two billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 2,000,000,000 |
Maximum | Two billion to two point five billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | 2,500,000,000 |
Maximum | Two point five billion to three billion [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Sales level | $3,000,000,000 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details Textual) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 02, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Jan. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Feb. 29, 2012 | Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||
USD ($) | USD ($) | USD ($) | TYSABRI product | Biogen Idec Hemophilia | Biogen Idec Hemophilia | Biogen Idec Hemophilia | Fumapharm AG | Cambridge Leases | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | Samsung Biosimilar Agreement | TECFIDERA | TECFIDERA | One billion | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | USD ($) | Fumapharm AG | Fumapharm AG | |||||
USD ($) | USD ($) | ||||||||||||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Term of lease | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Future minimum rental commitments | $677,100,000 | [1] | ' | ' | ' | ' | ' | ' | ' | $340,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges recognized to vacate building | ' | ' | ' | ' | ' | ' | ' | ' | 27,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Maximum contingent consideration in the form of development and approval milestones | ' | ' | ' | ' | ' | ' | 80,000,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Milestone payments made during period | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Additional contingent payment for Biologic License | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Additional contingent payment for marketing authorization | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amount paid in cash | ' | ' | ' | ' | ' | ' | ' | 220,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Increase to goodwill | 35,700,000 | 48,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 25,000,000 | ' | |
Cumulative sales level | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | |
Commitments And Contingencies (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Lease rent expense which terminates at various dates through 2028 | 56,100,000 | 49,000,000 | 46,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Liabilities associated with uncertain tax positions | 99,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Payments to Acquire Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,400,000 | 13,500,000,000 | ' | ' | ' | ' | ' | ' | ' | |
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,900,000 | 25,200,000,000 | 27,800,000 | 29,700,000,000 | 45,000,000 | 49,500,000,000 | ' | ' | ' | |
Percentage of equity interest to the portion of total capital stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 15.00% | ' | ' | ' | |
Funding commitments, Approximately | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Accrued expenses | 28,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cancellable future commitments | 424,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Potential future milestone payments commitment, approximately | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Future contingent payment for the first 12 months | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Future contingent payment for annual worldwide net sales up to $2.0 billion | ' | ' | ' | 18.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Future contingent payment threshold | ' | ' | ' | $2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Future contingent payment for annual worldwide net sales that exceed $2.0 billion | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Includes future minimum rental commitments related to leases executed for two office buildings in Cambridge, Massachusetts, which completed construction in July and November 2013. The leases both have 15 year terms and we have options to extend the term of each lease for two additional five-year terms. Future minimum rental commitments under these leases will total approximately $340.0 million over the initial 15Â year lease terms.As a result of our decision to relocate our corporate headquarters to Cambridge, Massachusetts, we vacated part of our Weston, Massachusetts facility in the fourth quarter of 2013. We incurred a charge of $27.2 million in connection with this move. This charge represents our remaining lease obligation for the vacated portion of our Weston facility, net of sublease income expected to be received. The term of our sublease to the vacated portion of our Weston facility started in January 2014 and will continue through the remaining term of our lease agreement. For additional information related to these transactions, please read Note 11, Property, Plant and Equipment to these consolidated financial statements. |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Expenses related to savings plan | $39.30 | $32.80 | $24.80 |
Percentage of minimum investment return | 1.50% | 1.50% | 2.00% |
Unfunded net pension | 22.6 | 20.5 | ' |
Employee Benefit Plan obligations | 38.1 | 28.1 | ' |
Pension Expense | 10.9 | 3.8 | 3.6 |
Savings plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Minimum Qualifying Age For Employee Benefit Plan | '21 years | ' | ' |
Deferred compensation plan [Member] | ' | ' | ' |
Employee Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Deferred compensation related to Employee Benefit Plan | 84.7 | 66.9 | ' |
German plan [Member] | ' | ' | ' |
Employee Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Employee Benefit Plan obligations | 20 | 15.9 | ' |
Periodic pension cost | $3.30 | $1.90 | $1.80 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | $1,607,100 | [1],[2] | $1,453,600 | $1,385,900 | [3] | $1,095,800 | [4] | $1,074,700 | [5] | $1,039,100 | $1,076,800 | [6] | $975,400 | $5,542,331 | $4,166,074 | $3,836,117 |
U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 3,581,000 | 2,176,800 | 1,954,800 | |||||
Rest of world | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 1,961,300 | 1,989,300 | 1,881,300 | |||||
AVONEX | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 3,005,500 | 2,913,100 | 2,686,600 | |||||
AVONEX | U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 1,902,400 | 1,793,700 | 1,628,300 | |||||
AVONEX | Rest of world | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 1,103,100 | 1,119,400 | 1,058,300 | |||||
TYSABRI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 1,526,500 | 1,135,900 | 1,079,500 | |||||
TYSABRI | U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 814,200 | 383,100 | 326,500 | |||||
TYSABRI | Rest of world | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 712,300 | 752,800 | 753,000 | |||||
TECFIDERA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 876,100 | 0 | 0 | |||||
TECFIDERA | U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 864,400 | 0 | 0 | |||||
TECFIDERA | Rest of world | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 11,700 | 0 | 0 | |||||
Other products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 134,200 | 117,100 | 70,000 | |||||
Other products | U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||||
Other products | Rest of world | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue by product | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | $134,200 | $117,100 | $70,000 | |||||
[1] | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | |||||||||||||||
[2] | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | |||||||||||||||
[3] | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | |||||||||||||||
[4] | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | |||||||||||||||
[5] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | |||||||||||||||
[6] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||
Geographic information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Product, net | $1,607,100,000 | [1],[2] | $1,453,600,000 | $1,385,900,000 | [3] | $1,095,800,000 | [4] | $1,074,700,000 | [5] | $1,039,100,000 | $1,076,800,000 | [6] | $975,400,000 | $5,542,331,000 | $4,166,074,000 | $3,836,117,000 | |||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | 1,126,000,000 | 1,137,900,000 | 996,600,000 | ||||||||
Other revenues from external customers | 89,400,000 | [1],[2] | 71,000,000 | 48,800,000 | [3] | 54,700,000 | [4] | 62,300,000 | [5] | 58,600,000 | 59,600,000 | [6] | 32,000,000 | 263,851,000 | 212,464,000 | 215,920,000 | |||
Long-lived assets | 1,750,700,000 | ' | ' | ' | 1,742,200,000 | ' | ' | ' | 1,750,700,000 | 1,742,200,000 | 1,838,400,000 | ||||||||
U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Geographic information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 3,581,000,000 | 2,176,800,000 | 1,954,800,000 | ||||||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | 1,087,300,000 | 1,033,300,000 | 878,800,000 | ||||||||
Other revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 193,500,000 | 170,200,000 | 187,000,000 | ||||||||
Long-lived assets | 984,400,000 | ' | ' | ' | 996,600,000 | ' | ' | ' | 984,400,000 | 996,600,000 | 1,012,500,000 | ||||||||
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Geographic information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 1,170,200,000 | [7] | 1,216,200,000 | [7] | 1,163,300,000 | [7] | |||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | [7] | 14,300,000 | [7] | 29,900,000 | [7] | |||||
Other revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 26,100,000 | [7] | 27,900,000 | [7] | 28,300,000 | [7] | |||||
Long-lived assets | 758,300,000 | [7] | ' | ' | ' | 738,600,000 | [7] | ' | ' | ' | 758,300,000 | [7] | 738,600,000 | [7] | 816,600,000 | [7] | |||
Germany | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Geographic information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 417,700,000 | 409,200,000 | 377,500,000 | ||||||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||||||||
Other revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | 1,100,000 | 600,000 | ||||||||
Long-lived assets | 2,500,000 | ' | ' | ' | 1,900,000 | ' | ' | ' | 2,500,000 | 1,900,000 | 1,600,000 | ||||||||
Asia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Geographic information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 93,200,000 | 93,200,000 | 88,700,000 | ||||||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | 27,500,000 | 30,700,000 | ||||||||
Other revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 43,100,000 | 13,300,000 | 0 | ||||||||
Long-lived assets | 2,100,000 | ' | ' | ' | 2,900,000 | ' | ' | ' | 2,100,000 | 2,900,000 | 5,300,000 | ||||||||
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Geographic information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Product, net | ' | ' | ' | ' | ' | ' | ' | ' | 280,200,000 | 270,700,000 | 251,800,000 | ||||||||
Revenues from unconsolidated joint business | ' | ' | ' | ' | ' | ' | ' | ' | 33,900,000 | 62,800,000 | 57,200,000 | ||||||||
Other revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||||||||
Long-lived assets | $3,300,000 | ' | ' | ' | $2,200,000 | ' | ' | ' | $3,300,000 | $2,200,000 | $2,400,000 | ||||||||
[1] | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | ||||||||||||||||||
[2] | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | ||||||||||||||||||
[3] | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | ||||||||||||||||||
[4] | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | ||||||||||||||||||
[5] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | ||||||||||||||||||
[6] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | ||||||||||||||||||
[7] | Represents amounts related to Europe less those attributable to Germany. |
Segment_Information_Details_Te
Segment Information (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
segment | |||
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenues from unconsolidated joint business in percentage | 16.00% | 21.00% | 20.00% |
Long-lived assets related to operations in Denmark | $1,750.70 | $1,742.20 | $1,838.40 |
Segment Information (Textual) [Abstract] | ' | ' | ' |
Number of reportable segment | 1 | ' | ' |
Distributor One | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Entity wide percentage of revenue from major distributors | 32.00% | 20.00% | 18.00% |
Distributor Two | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Entity wide percentage of revenue from major distributors | 24.00% | 10.00% | 10.00% |
DENMARK | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Long-lived assets related to operations in Denmark | $731.10 | $713.40 | $668.50 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Product, net | $1,607,100,000 | [1],[2] | $1,453,600,000 | $1,385,900,000 | [3] | $1,095,800,000 | [4] | $1,074,700,000 | [5] | $1,039,100,000 | $1,076,800,000 | [6] | $975,400,000 | $5,542,331,000 | $4,166,074,000 | $3,836,117,000 |
Unconsolidated joint business revenues | 269,400,000 | [1],[2] | 303,200,000 | 288,800,000 | [3] | 264,600,000 | [4] | 280,900,000 | [5] | 287,800,000 | 284,600,000 | [6] | 284,600,000 | 1,126,017,000 | 1,137,923,000 | 996,597,000 |
Other | 89,400,000 | [1],[2] | 71,000,000 | 48,800,000 | [3] | 54,700,000 | [4] | 62,300,000 | [5] | 58,600,000 | 59,600,000 | [6] | 32,000,000 | 263,851,000 | 212,464,000 | 215,920,000 |
Total revenues | 1,965,900,000 | [1],[2] | 1,827,800,000 | 1,723,500,000 | [3] | 1,415,100,000 | [4] | 1,417,900,000 | [5] | 1,385,500,000 | 1,421,000,000 | [6] | 1,292,000,000 | 6,932,199,000 | 5,516,461,000 | 5,048,634,000 |
Gross Profit | 1,707,300,000 | [1],[2] | 1,593,100,000 | 1,492,800,000 | [3] | 1,281,400,000 | [4] | 1,284,100,000 | [5] | 1,246,200,000 | 1,281,800,000 | [6] | 1,158,800,000 | 6,074,500,000 | 4,971,000,000 | ' |
Net income | 457,300,000 | [1],[2] | 487,600,000 | 490,700,000 | [3] | 426,700,000 | [4] | 292,100,000 | [5] | 398,400,000 | 387,100,000 | [6] | 302,400,000 | 1,862,341,000 | 1,380,033,000 | 1,266,686,000 |
Net income attributable to Biogen Idec Inc | $457,300,000 | [1],[2] | $487,600,000 | $490,700,000 | [3] | $426,700,000 | [4] | $292,100,000 | [5] | $398,400,000 | $386,800,000 | [6] | $302,700,000 | $1,862,341,000 | $1,380,033,000 | $1,234,428,000 |
Basic earnings per share attributable to Biogen Idec Inc. | $1.94 | [1],[2] | $2.06 | $2.07 | [3] | $1.80 | [4] | $1.24 | [5] | $1.68 | $1.62 | [6] | $1.26 | $7.86 | $5.80 | $5.09 |
Diluted earnings per share attributable to Biogen Idec Inc. | $1.92 | [1],[2] | $2.05 | $2.06 | [3] | $1.79 | [4] | $1.23 | [5] | $1.67 | $1.61 | [6] | $1.25 | $7.81 | $5.76 | $5.04 |
[1] | Net income and net income attributable to Biogen Idec Inc. for the first quarter of 2012 includes a charge to research and development expense of $29.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. | |||||||||||||||
[2] | Net income and net income attributable to Biogen Idec Inc., for the third quarter of 2013, includes a charge to research and development expense of $75.0 million related to an upfront payment made in connection with our collaboration agreement entered into with Isis. | |||||||||||||||
[3] | Product revenues and total revenues for the second, third and fourth quarters of 2013 includes 100% of net revenues related to sales of TYSABRI as a result of our acquisition of TYSABRI rights from Elan on April 2, 2013 and net revenues related to sales of TECFIDERA, our new oral first-line treatment for people with relapsing forms of multiple sclerosis (MS), which was approved by the FDA in March 2013 and commenced commercial sales in April 2013. | |||||||||||||||
[4] | Our share of revenues from unconsolidated joint business reflects a charge of $41.5 million for damages and interest awarded to Hoechst in Genentech's arbitration with Hoechst for RITUXAN. | |||||||||||||||
[5] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes the correction of an error that had accumulated over several prior years in our deferred tax accounting for capitalized interest which resulted in an expense of $29.0 million. | |||||||||||||||
[6] | Net income and net income attributable to Biogen Idec Inc. for the fourth quarter of 2012 includes a charge to research and development expense of $30.0 million related to an upfront payment made in connection with our development agreement entered into with Isis. |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2013 |
ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | ISIS Pharmaceuticals | Hoechst | Hoechst | ||
Schedule Of Development Milestone And Collaboration [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in share of co-promotion profits due to estimated compensation damages | ' | ' | ' | ' | ' | ' | $41.50 | $49.70 |
Research and development | ' | 10 | 75 | 30 | 12 | 29 | ' | ' |
Tax accounting correction | $29 | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Subsequent_E1
Subsequent Events Subsequent Events (Details) (Sangamo BioSciences, USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 09, 2014 |
Sangamo BioSciences | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Research and development expense | $20 | ' |
Additional Milestone Payment | ' | $300 |