Biogen (BIIB) 10-Q 20 Apr 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Apr. 16, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	BIOGEN IDEC INC.
Entity Central Index Key	0000875045
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$13,005,469,098
Entity Common Stock, Shares Outstanding		266,998,007

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues:
Product	$824,220	$733,409
Unconsolidated joint business	254,928	278,818
Other	29,712	24,257
Total revenues	1,108,860	1,036,484
Costs and expenses:
Cost of sales, excluding amortization of acquired intangible assets	97,055	98,197
Research and development	307,030	279,478
Selling, general and administrative	248,664	221,830
Collaboration profit sharing	63,557	42,773
Amortization of acquired intangible assets	48,889	89,248
Acquired in-process research and development	39,976
Total costs and expenses	805,171	731,526
Income from operations	303,689	304,958
Other income (expense), net	(8,386)	6,846
Income before income tax expense	295,303	311,804
Income tax expense	75,310	65,225
Net income	219,993	246,579
Net income attributable to noncontrolling interest, net of tax	2,551	2,592
Net income attributable to Biogen Idec Inc.	$217,442	$243,987
Net income per share:
Basic earnings per share attributable to Biogen Idec Inc.	0.8	0.85
Diluted earnings per share attributable to Biogen Idec Inc.	0.8	0.84
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Idec Inc.	269,922	287,703
Diluted earnings per share attributable to Biogen Idec Inc.	272,703	289,744

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current assets:
Cash and cash equivalents	$639,559	$581,889
Marketable securities	513,115	681,835
Accounts receivable, net	560,777	551,208
Due from unconsolidated joint business	205,228	193,789
Inventory	280,038	293,950
Other current assets	210,295	177,924
Total current assets	2,409,012	2,480,595
Marketable securities	1,032,223	1,194,080
Property, plant and equipment, net	1,604,573	1,637,083
Intangible assets, net	1,822,133	1,871,078
Goodwill	1,138,621	1,138,621
Investments and other assets	210,761	230,397
Total assets	8,217,323	8,551,854
Current liabilities:
Accounts payable	121,356	118,534
Taxes payable	108,972	75,891
Accrued expenses and other	432,887	500,755
Current portion of notes payable and line of credit	19,115	19,762
Total current liabilities	682,330	714,942
Notes payable and line of credit	1,076,201	1,080,207
Long-term deferred tax liability	248,898	240,618
Other long-term liabilities	259,300	254,205
Total liabilities	2,266,729	2,289,972
Commitments and contingencies (Notes 13, 15 and 16)
Shareholders' equity:
Preferred stock, par value $0.001 per share	0	0
Common stock, par value $0.0005 per share	139	144
Additional paid-in capital	5,268,465	5,781,920
Accumulated other comprehensive income	22,872	50,496
Retained earnings	1,131,523	1,068,890
Treasury stock, at cost	(513,627)	(679,920)
Total Biogen Idec Inc. shareholders' equity	5,909,372	6,221,530
Noncontrolling interest	41,222	40,352
Total shareholders' equity	5,950,594	6,261,882
Total liabilities and shareholders' equity	$8,217,323	$8,551,854

1_Consolidated Balance Sheets (

Consolidated Balance Sheets (Unaudited) (Parenthetical)
	Mar. 31, 2010	Dec. 31, 2009
Shareholders' equity:
Preferred stock, par value	0.001	0.001
Common stock, par value	0.0005	0.0005

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities:
Net income	$219,993	$246,579
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization of property, plant and equipment and intangible assets	82,510	122,146
Acquired in-process research and development (Note 2)	39,976
Share-based compensation	51,006	37,889
Non-cash interest expense (income) and foreign exchange remeasurement, net	3,982	(10,412)
Deferred income taxes	8,042	(6,973)
Realized gain on sale of marketable securities and strategic investments	(4,985)	(4,313)
Write-down of inventory to net realizable value	2,289	9,386
Impairment of marketable securities, investments and other assets	16,111	6,021
Excess tax benefit from share-based compensation	(4,379)	(2,282)
Changes in operating assets and liabilities, net:
Accounts receivable	(20,201)	(37,935)
Due from unconsolidated joint business	(11,439)	26,259
Inventory	12,264	(12,720)
Other assets	(13,463)	(14,264)
Accrued expenses and other current liabilities	(82,854)	(120,007)
Other liabilities and taxes payable	38,043	61,376
Net cash flows provided by operating activities	336,895	300,750
Cash flows from investing activities:
Purchases of marketable securities	(699,677)	(1,110,368)
Proceeds from sales and maturities of marketable securities	1,029,307	1,057,671
Acquisitions (Note 2)	(39,976)
Purchases of property, plant and equipment	(38,209)	(37,041)
Purchases of other investments	(1,708)	(31,959)
Collateral received under securities lending		29,991
Net cash flows provided by (used in) investing activities	249,737	(91,706)
Cash flows from financing activities:
Purchase of treasury stock	(577,580)	(57,631)
Proceeds from issuance of stock for share-based compensation arrangements	52,818	17,043
Change in cash overdraft	(1,826)	1,369
Net contributions from noncontrolling interest	760
Excess tax benefit from share-based compensation	4,379	2,282
Repayment of borrowings	(2,011)
Obligation under securities lending		(29,991)
Net cash flows used in financing activities	(523,460)	(66,928)
Net increase in cash and cash equivalents	63,172	142,116
Effect of exchange rate changes on cash and cash equivalents	(5,502)	(397)
Cash and cash equivalents, beginning of the period	581,889	622,385
Cash and cash equivalents, end of the period	$639,559	$764,104

Business Overview

Business Overview
	3 Months Ended Mar. 31, 2010
Business Overview [Abstract]
Business Overview	1. Business Overview Overview Biogen Idec is a global biotechnology company that creates new standards of care in therapeutic areas with high unmet medical needs. We currently have four marketed products: AVONEX, RITUXAN, TYSABRI, and FUMADERM. Our marketed products are used for the treatment of multiple sclerosis (MS), non-Hodgkins lymphoma (NHL), rheumatoid arthritis (RA), Crohns disease, chronic lymphocytic leukemia and psoriasis. Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States (U.S.GAAP). The information included in this quarterly report on Form10-Q should be read in conjunction with our consolidated financial statements and the accompanying notes included in our Annual Report on Form10-K for the year ended December31, 2009 (2009 Form10-K). Our accounting policies are described in the Notes to Consolidated Financial Statements in our 2009 Form10-K and updated, as necessary, in this Form10-Q. The year-end consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by U.S.GAAP. The results of operations for the three months ended March31, 2010 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period. Consolidation Our consolidated financial statements reflect our financial statements, those of our wholly-owned subsidiaries, certain variable interest entities in which we are the primary beneficiary and those of our joint ventures in Italy and Switzerland, Biogen Domp SRL and Biogen Domp Switzerland GmbH, respectively. For such consolidated entities in which we own less than a 100% interest, we record net income (loss) attributable to noncontrolling interest in our consolidated statements of income equal to the percentage of the economic or ownership interest retained in the collaborative arrangement or joint venture by the respective noncontrolling parties. All material intercompany balances and transactions have been eliminated in consolidation. In determining whether we are the primary beneficiary, we consider a number of factors, including our ability to direct the activities that most significantly affect the entitys economic success, our contractual rights and responsibilities under the arrangement and the significance of the arrangement to each party. These considerations impact the way we account for our existing collaborative and joint venture relationships and may result in the future consolidation of companies or entities with which we have collaborative or other arrangements. Use of Estimates The preparation of consolidated financial statements in accordance with U.S.GAAP requires management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure

Acquisitions and Dispositions

Acquisitions and Dispositions
	3 Months Ended Mar. 31, 2010
Acquisitions and Dispositions [Abstract]
Acquisitions and Dispositions	2. Acquisitions and Dispositions Syntonix Pharmaceuticals, Inc. In connection with our acquisition of Syntonix Pharmaceuticals, Inc. (Syntonix) in January 2007, we agreed to make additional future consideration payments based upon the achievement of certain milestone events associated with the development of Syntonixs lead product, long-acting recombinant Factor IX, a product for the treatment of hemophilia B. In January 2010, we initiated patient enrollment in a registrational stage study for Factor IX which resulted in the achievement of one of those milestone events. As a result of the achievement of this milestone, we paid approximately $40.0million to the former shareholders of Syntonix. As the Syntonix acquisition occurred prior to our January1, 2009 adoption of a new accounting standard for business combinations, this acquisition continues to be accounted for under previously issued guidance. Accordingly, we recorded this payment as a charge to acquired in-process research and development (IPRD) within our consolidated statement of income for the three months ended March31, 2010. Please read Note2, Acquisitions and Dispositions, to our Consolidated Financial Statements included within our 2009 Form10-K, for a more detailed description of this acquisition.

Revenue Recognition

Revenue Recognition
	3 Months Ended Mar. 31, 2010
Revenue Recognition [Abstract]
Revenue Recognition	3. 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; the sellers price to the buyer 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. However, sales of TYSABRI in the U.S.are recognized on the sell-through model, that is, upon shipment of the product by Elan Pharma International, Ltd. (Elan), an affiliate of Elan Corporation, plc, to its third party distributor rather than upon shipment to Elan. Product revenues are recorded net of applicable 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 applicable allowances. Revenues from Unconsolidated Joint Business We collaborate with the Roche Group, through its wholly-owned member Genentech, Inc., on the development and commercialization of RITUXAN. Revenues from unconsolidated joint business consist of (1)our share of pre-tax co-promotion profits in the U.S.; (2)reimbursement of our selling and development expense in the U.S.; and (3)revenue on sales of RITUXAN in the rest of world, which consists of our share of pretax co-promotion profits in Canada and royalty revenue on sales of RITUXAN outside the U.S.and Canada by F. Hoffmann-LaRoche Ltd. (Roche) and its sublicensees. Pre-tax co-promotion profits 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 of RITUXAN to third-party customers net of discounts and allowances less the cost to manufacture RITUXAN, third-party royalty expenses, distribution, selling and marketing, and joint development expenses incurred by Genentech, Roche and us. We record our royalty and co-promotion profits revenue on sales of RITUXAN in the rest of world on a cash basis. Royalty Revenues We receive royalty revenues on sales by our licensees of other products covered under patents that we own. There are no future performance obligations on our part 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. We maintain regular communication with our licensees in order to assess the reasonableness of our estimates. Differences between actual royalty revenues 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. To the extent we do not have sufficient ability to accurately estimate revenue, we record revenues on a cash basis. Milesto

Inventory

Inventory
	3 Months Ended Mar. 31, 2010
Inventory [Abstract]
Inventory	4. Inventory Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. Included in inventory are raw materials used in the production of pre-clinical and clinical products, which are charged to research and development expense when consumed. The components of inventories are summarized as follows: As of As of March31, December31, (In millions) 2010 2009 Raw materials $ 43.7 $ 49.2 Work in process 155.7 174.0 Finished goods 80.6 70.8 Total inventory $ 280.0 294.0

Intangible Assets and Goodwill

Intangible Assets and Goodwill
	3 Months Ended Mar. 31, 2010
Intangible Assets and Goodwill [Abstract]
Intangible Assets and Goodwill	5. Intangible Assets and Goodwill Intangible Assets Intangible assets, net of accumulated amortization, impairment charges and adjustments, are summarized as follows: As of March31, 2010 As of December31, 2009 Estimated Accumulated Accumulated (In millions) Life Cost Amortization Net Cost Amortization Net Out-licensed patents 12years $ 578.0 $ (316.8 ) $ 261.2 $ 578.0 $ (306.0 ) $ 272.0 Core developed technology 15-23years 3,005.3 (1,510.4 ) 1,494.9 3,005.3 (1,472.4 ) 1,532.9 Trademarks and tradenames Indefinite 64.0 64.0 64.0 64.0 In-licensed patents 14years 3.0 (1.2 ) 1.8 3.0 (1.1 ) 1.9 Assembled workforce 4years 2.1 (1.9 ) 0.2 2.1 (1.8 ) 0.3 Distribution rights 2years 12.7 (12.7 ) 12.7 (12.7 ) Total intangible assets $ 3,665.1 $ (1,843.0 ) $ 1,822.1 $ 3,665.1 $ (1,794.0 ) $ 1,871.1 Intangible assets were unchanged as of March31, 2010 as compared to December31, 2009, exclusive of the impact of amortization. Our most significant intangible asset is the core technology related to our AVONEX product. The net book value of this asset as of March31, 2010 was $1,479.2 million. For the three months ended March31, 2010 compared to the same period in 2009, amortization for acquired intangible assets totaled $48.9million and $89.2million, respectively. Goodwill Goodwill remained unchanged as of March31, 2010 as compared to December31, 2009. As of March31, 2010, we had no accumulated impairment losses.

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Fair Value Measurements [Abstract]
Fair Value Measurements	6. Fair Value Measurements In January 2010, we adopted a newly issued accounting standard which requires additional disclosure about the amounts of and reasons for significant transfers in and out of Level1 and Level2 fair value measurements. This standard also clarifies existing disclosure requirements related to the level of disaggregation of fair value measurements for each class of assets and liabilities and disclosures about inputs and valuation techniques used to measure fair value for both recurring and nonrecurring Level2 and Level3 measurements. As this newly issued accounting standard only requires enhanced disclosure, the adoption of this standard did not impact our financial position or results of operations. In addition, effective for interim and annual periods beginning after December15, 2010, this standard will require additional disclosure and require an entity to present disaggregated information about activity in Level3 fair value measurements on a gross basis, rather than as one net amount. The tables below present information about our assets and liabilities that are measured at fair value on a recurring basis as of March31, 2010 and December31, 2009 and indicate the fair value hierarchy of the valuation techniques we utilized to determine such fair value. In general, fair values determined by Level1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level2 inputs utilize data points that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level3 inputs utilize unobservable data points for the asset or liability. A majority of our financial assets and liabilities have been classified as Level2. Our financial assets and liabilities (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, typically 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, analyzing pricing data in certain instances and confirming that the relevant markets are active. After completing our validation procedures, we did not adjust or override any fair value measurements provided by our pricing services as of March31, 2010 and December31, 2009. Our strategic investments in publicly traded equity securities are classified as Level1 assets as their fair values are readily determinable and based on quoted market prices. Our venture capital investments represent investments in equity securit

Financial Instruments

Financial Instruments
	3 Months Ended Mar. 31, 2010
Financial Instruments [Abstract]
Financial Instruments	7. Financial Instruments Marketable Securities, including Strategic Investments The following tables summarize our marketable securities and strategic investments: Gross Gross Fair Unrealized Unrealized Amortized As of March31, 2010 (In millions): Value Gains Losses Cost Available-for-sale Corporate debt securities Current $ 153.7 $ 1.5 $ $ 152.2 Non-current 330.3 4.5 (0.4 ) 326.2 Government securities Current 356.0 0.8 (0.1 ) 355.3 Non-current 497.1 2.0 (0.4 ) 495.5 Mortgage and other asset backed securities Current 3.4 0.1 3.3 Non-current 204.8 4.0 (0.3 ) 201.1 Total available-for-sale securities $ 1,545.3 $ 12.9 $ (1.2 ) $ 1,533.6 Other Investments Strategic investments, non-current $ 30.8 $ 2.0 $ (0.4 ) $ 29.2 Gross Gross Fair Unrealized Unrealized Amortized As of December31, 2009 (In millions): Value Gains Losses Cost Available-for-sale Corporate debt securities Current $ 177.2 $ 1.5 $ $ 175.7 Non-current 326.9 5.7 (0.3 ) 321.5 Government securities Current 501.6 1.2 500.4 Non-current 631.9 4.1 (0.5 ) 628.3 Mortgage and other asset backed securities Current 3.0 0.1 2.9 Non-current 235.3 4.1 (0.5 ) 231.7 Total available-for-sale securities $ 1,875.9 $ 16.7 $ (1.3 ) $ 1,860.5 Other Investments Strategic investments, non-current $ 5.9 $ 2.7 $ (0.3 ) $ 3.5 In the tables above, as of March31, 2010 and December31, 2009, government securities included $229.9million and $298.8million, respectively, of Federal Deposit Insurance Corporation (FDIC) guaranteed senior notes issued by financial institut

Derivative Instruments

Derivative Instruments
	3 Months Ended Mar. 31, 2010
Derivative Instruments [Abstract]
Derivative Instruments	8. Derivative Instruments Our primary market exposure is to foreign exchange rates. We use certain derivative instruments to help manage this exposure. We execute these instruments with financial institutions we judge to be creditworthy and the majority of the foreign currencies are denominated in currencies of major industrial countries. We do not hold or issue derivative instruments for trading or speculative purposes. We recognize all derivative instruments as either assets or liabilities at fair value in our consolidated balance sheets. We classify the cash flows from these instruments in the same category as the cash flows from the hedged items. Foreign Currency Forward Contracts 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 subject to changes in currency exchange rates. In order to mitigate these changes we use foreign currency forward contracts to lock in exchange rates. Foreign currency forward contracts in effect as of March31, 2010 and December31, 2009 had remaining durations of 1 to 9months. 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). 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 at each reporting date. The notional value of foreign currency forward contracts that were entered into to hedge forecasted revenue are summarized as follows: Notional Amount Foreign Currency: (In millions) As of March31, 2010 As of December31, 2009 Euro $ 481.4 $ 495.9 Canadian Dollar 37.3 22.3 Total $ 518.7 $ 518.2 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 net gains of $32.0million and $1.2million as of March31, 2010 and December31, 2009, respectively. 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 obligations under the contract. As of March31, 2010 and December31, 2009, respectively, credit risk did not materially change the fair value of our forward contracts. In relation to our foreign currency forward contracts, we recognize gains and losses in earnings due to hedge ineffectiveness. During the three months ended March31, 2010, we recognized a net gain of $0.1million. During the three months ended March31, 2009, we recognized a net loss of $2.5million. In addition, we recognized $0.2million of gains in product revenue for the settlement of certain effective cash flow hedge forward c

Property, Plant and Equipment

Property, Plant and Equipment
	3 Months Ended Mar. 31, 2010
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	9. Property, Plant and Equipment Property, plant and equipment are recorded at historical cost, net of accumulated depreciation. Accumulated depreciation on property, plant and equipment was $671.9million at March31, 2010 and $642.5million at December31, 2009. We own or lease real estate primarily consisting of buildings that contain research laboratories, office space, and biologic manufacturing operations, some of which are located in markets that are experiencing high vacancy rates and decreasing property values. If we decide to consolidate, co-locate or dispose of certain aspects of our business operations, for strategic or other operational reasons, we may dispose of one or more of our properties. Due to reduced expectations of product demand, improved yields on production and other factors, we may not fully utilize our manufacturing facilities at normal levels resulting in idle time at facilities or substantial excess manufacturing capacity. We are always evaluating our current strategy, as well as other alternatives, including whether to delay completion of a manufacturing facility in Denmark. If any of our owned properties are held for sale and we determine that the fair value of the properties is lower than their book value, we may not realize the full investment in these properties and incur significant impairment charges. In addition, if we decide to fully or partially vacate a leased property, we may incur significant costs, including lease termination fees, rent expense in excess of sublease income and impairment of leasehold improvements.

Comprehensive Income

Comprehensive Income
	3 Months Ended Mar. 31, 2010
Comprehensive Income [Abstract]
Comprehensive Income	10. Comprehensive Income The following tables reflect the activity in comprehensive income included within equity attributable to the shareholders of Biogen Idec, equity attributable to noncontrolling interests, and total shareholders equity: For the Three Months For the Three Months Ended March31, 2010 Ended March31, 2009 Biogen Idec Total Biogen Idec Total Shareholders Noncontrolling Shareholders Shareholders Noncontrolling Shareholders (In millions) Equity Interest Equity Equity Interest Equity Comprehensive income: Net income $ 217.4 $ 2.6 $ 220.0 $ 244.0 $ 2.6 $ 246.6 Unrealized (losses) gains on investments (2.9 ) (2.9 ) 2.0 2.0 Unrealized gains on foreign currency forward contracts 27.9 27.9 28.1 28.1 Unfunded status of pension and post-retirement benefit plans (0.1 ) (0.1 ) (0.1 ) (0.1 ) Translation adjustments (52.4 ) (2.6 ) (55.0 ) (51.3 ) 2.1 (49.2 ) Comprehensive income (loss) $ 189.9 $ 0.0 $ 189.9 $ 222.7 $ 4.7 $ 227.4 Unrealized holding gains (losses) on investments are shown net of tax of $1.7million and $1.2million for the three months ended March31, 2010 and 2009, respectively. Unrealized gains on foreign currency forward contracts are shown net of tax of $3.0million, and $3.1million for the three months ended March31, 2010 and 2009, respectively. The unfunded status of pension and post-retirement benefit plans is shown net of tax as of March31, 2010 and 2009. Tax amounts in both years were immaterial. The following table reconciles equity attributable to noncontrolling interest: For the Three Months Ended March31, (In millions) 2010 2009 Noncontrolling interest, January 1 $ 40.4 $ 27.9 Net income attributable to noncontrolling interest 2.6 2.6 Translation adjustments (2.6 ) 2.1 Distributions to noncontrolling interest Capital contributions from noncontrolling interest 0.8 Noncontrolling interest, March 31 $ 41.2 $ 32.6 Total distributions to us from our joint ventures were negligible for the three months ended March31, 2010 and 2009.

Earnings per Share

Earnings per Share
	3 Months Ended Mar. 31, 2010
Earnings per Share [Abstract]
Earnings per Share	11. Earnings per Share Basic and diluted earnings per share are calculated as follows: For the Three Months Ended March31, (In millions) 2010 2009 Numerator: Net income attributable to Biogen Idec $ 217.4 $ 244.0 Adjustment for net income allocable to preferred shares (0.4 ) (0.4 ) Net income used in calculating basic and diluted earnings per share $ 217.0 $ 243.6 Denominator: Weighted average number of common shares outstanding 269.9 287.7 Effect of dilutive securities: Stock options and employee stock purchase plan 1.1 0.7 Time-vested restricted stock units 1.7 1.3 Market stock units Performance-vested restricted stock units settled in shares Dilutive potential common shares 2.8 2.0 Shares used in calculating diluted earnings per share 272.7 289.7 The following amounts were not included in the calculation of net income per diluted share because their effects were anti-dilutive: For the Three Months Ended March31, (In millions) 2010 2009 Numerator: Net income allocable to preferred shares $ 0.4 $ 0.4 Denominator: Stock options 5.0 7.3 Time-vested restricted stock units 0.7 2.4 Market stock units Performance-vested restricted stock units 0.1 Convertible preferred stock 0.5 0.5 Total 6.2 10.3

Share-Based Payments

Share-Based Payments
	3 Months Ended Mar. 31, 2010
Share-Based Payments [Abstract]
Share-Based Payments	12. Share-based Payments Share-based Compensation Expense The following table summarizes share-based compensation expense included within our consolidated statements of income: For the Three Months Ended March31, (In millions) 2010 2009 Research and development $ 16.7 $ 16.3 Selling, general and administrative 36.2 23.2 Subtotal 52.9 39.5 Capitalized share-based payment costs (0.9 ) (1.6 ) Share-based compensation expense included in total costs and expenses 52.0 37.9 Income tax effect (16.7 ) (11.6 ) Share-based compensation expense included in net income attributable to Biogen Idec $ 35.3 $ 26.3 The following table summarizes share-based compensation expense associated with each of our share-based compensation programs: For the Three Months Ended March31, (In millions) 2010 2009 Stock options $ 10.8 $ 5.2 Market stock units 3.6 Time-vested restricted stock units 33.5 31.5 Performance-vested restricted stock units settled in shares 2.4 1.2 Performance-vested restricted stock units settled in cash 1.0 Employee stock purchase plan 1.6 1.6 Subtotal $ 52.9 $ 39.5 Capitalized share-based payment costs (0.9 ) (1.6 ) Share-based compensation expense included in total costs and expenses $ 52.0 $ 37.9 Stock Options In the first quarter of 2010, approximately 120,000 stock options were granted with a weighted average exercise price of $57.38 and weighted average grant date fair value of $15.62. In the first quarter of 2009, approximately 825,000 stock options were granted with a weighted average exercise price of $49.51 and weighted average grant date fair value of $17.72. The fair values of our stock option grants are estimated as of the date of grant using the Black-Scholes option valuation model. The estimated fair values of the stock options, including the effect of estimated forfeitures, are then expensed over the options requisite service period, which is typically the vesting period. Market Stock Units and Cash Settled Performance Shares Beginning in the first quarter of 2010, we revised our long term incentive program to include two new forms of equity-based compensation awards to certain employees: restricted stock units which will vest based on stock price performance, referred to as Market Stock Units (MSUs) and performance-vested restricted stock units which will be settled in cash, referred to as Cash Settled Performance Shares (CSPSs). We will apply forfeiture rate assumptions to these types of awards similar to those utilized by us wh

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes [Abstract]
Income Taxes	13. Income Taxes Tax Rate For the three months ended March31, 2010 and 2009, our effective tax rates were 25.5% and 21.0%, respectively. The increase in our tax rate for the three months ended March31, 2010 compared to the same period in 2009 was primarily a result of the expiration of the federal research and development tax credit at the end of 2009 and, in the first quarter of 2009, a favorable change in certain state tax laws. As a result of the 2009 changes in tax law we reduced our first quarter 2009 tax expense by $30.2million. The federal research and development tax credit had a 1.6% favorable impact on our effective tax rate for first quarter of 2009. The unfavorable impact of not having these benefits recur in 2010 was partially offset by a higher percentage of our profits being earned in lower rate international jurisdictions. This change is caused by lower 2010 domestic earnings, as a proportion of total consolidated earnings due to the recently enacted U.S. healthcare reform legislation, the growth in our international operations and a reorganization of our international operations. During 2010, we also had a favorable impact from a statutory increase in the U.S.manufacturers tax deduction. Reconciliation between the U.S.federal statutory tax rate and our effective tax rate is summarized as follows: For the Three Months Ended March31, 2010 2009 Statutory rate 35.0 % 35.0 % State taxes 1.9 (1.1 ) Taxes on foreign earnings (9.8 ) (5.8 ) Credits and net operating loss utilization (1.6 ) (9.4 ) Purchased intangible assets 1.5 1.6 IPRD 0.8 1.1 Permanent items (1.6 ) (1.1 ) Other (0.7 ) 0.7 Effective tax rate 25.5 % 21.0 % Accounting for Uncertainty in Income Taxes We and our subsidiaries are routinely examined by various taxing authorities. We file income tax returns in the U.S.federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, we are no longer subject to U.S.federal tax examination for years before 2007 or state, local, or non-U.S.income tax examinations by tax authorities for years before 2001. In 2006, the Massachusetts Department of Revenue (DOR) issued a Notice of Assessment against Biogen Idec MA Inc. for $38.9million of corporate excise tax for 2002, which includes associated interest and penalties. The assessment asserts that the portion of sales attributable to Massachusetts, the computation of Biogen Idec MAs research and development credits and the availability of certain claimed deductions were not appropriate, resulting in unpaid taxes for 2002. In December 2006, we filed an abatement application with the DOR, seeking abatement for 2001-2003, which was denied. In July 2007, we filed a petition with the Massachusetts Appellate Tax Board, seeking among other items, abatements of corporate excise tax for 2001

Other Income

Other Income (Expense), Net
	3 Months Ended Mar. 31, 2010
Other Income (Expense), Net [Abstract]
Other Income (Expense), Net	14. Other Income (Expense), Net Components of other income (expense), net, are summarized as follows: For the Three Months Ended March31, (In millions) 2010 2009 Interest income $ 8.9 $ 14.8 Interest expense (8.3 ) (9.9 ) Impairments of investments (Note7) (15.8 ) (6.1 ) Net realized gains on foreign currency transactions 1.0 3.0 Net realized gains on marketable securities 5.0 4.3 Other, net 0.8 0.7 Total other income (expense), net $ (8.4 ) $ 6.8

Investments in Variable Interes

Investments in Variable Interest Entities
	3 Months Ended Mar. 31, 2010
Investments in Variable Interest Entities [Abstract]
Investments in Variable Interest Entities	15. Investments in Variable Interest Entities Effective January1, 2010, we adopted a newly issued accounting standard which provides guidance for the consolidation of variable interest entities and requires an enterprise to determine whether its variable interest or interests give it a controlling financial interest in a variable interest entity. This amended consolidation guidance for variable interest entities replaces the existing quantitative approach for identifying which enterprise should consolidate a variable interest entity, which was based on which enterprise is exposed to a majority of the risks and rewards, with a qualitative approach, based on which enterprise has 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 the variable interest entity. The adoption of this standard did not have an impact on our financial position or results of operations. Determination about whether an enterprise should consolidate a variable interest entity is required to be evaluated continuously as changes to existing relationships or future transactions may result in us consolidating or deconsolidating our partner(s) to collaborations and other arrangements. 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 We consolidate the operations of Biogen Domp SRL and Biogen Domp Switzerland GmbH, our respective sales affiliates in Italy and Switzerland, as we retain the contractual power to direct the activities of these entities which most significantly and directly impact their economic performance. The activity of each of these joint ventures is significant to our overall operations. The assets of these joint ventures are restricted, from the standpoint of Biogen Idec, in that they are not available for our general business use outside the context of each joint venture. The holders of the liabilities of each joint venture, including the credit line from Dompe described in our 2009 Form10-K, have no recourse to Biogen Idec. Included within our consolidated balance sheet at March31, 2010 are total joint venture assets and liabilities of $111.5million and $26.9million, respectively, the most significant of which are accounts receivable from the ordinary course of business of $102.3million. We have provided no financing to these joint ventures other than previously contractually required amounts. Neurimmune We have a collaboration agreement with Neurimmune SubOne AG (Neurimmune), a subsidiary of Neurimmune Therapeutics AG, for the development and commercialization of antibodies for the treatment of Alzheimers disease. Neurimmune conducts research to identify potential therapeutic antibodies and we are responsible for the development, manufacturing and commercialization of all products. We may pay Neurimmune up to $360.0million in remaining milestone payments, as well as royalties o

Litigation

Litigation
	3 Months Ended Mar. 31, 2010
Litigation [Abstract]
Litigation	16. Litigation Along with several other major pharmaceutical and biotechnology companies, Biogen, Inc. (now Biogen Idec MA Inc., one of our wholly-owned subsidiaries) or, in some cases, Biogen Idec Inc., was named as a defendant in lawsuits filed by the City of New York and numerous Counties of the State of New York. All of the cases except for cases filed by the County of Erie, County of Oswego and County of Schenectady (Three County Actions) are the subject of a Consolidated Complaint, first filed on September15, 2005 in the U.S.District Court for the District of Massachusetts in Multi-District Litigation No.1456 (MDL proceedings). The complaints allege that the defendants (i)fraudulently reported (or caused others to report incorrectly) the Average Wholesale Price for certain drugs for which Medicaid provides reimbursement (Covered Drugs); (ii)marketed and promoted the sale of Covered Drugs to providers based on the providers ability to collect inflated payments from the government and Medicaid beneficiaries that exceeded payments possible for competing drugs; (iii)provided financing incentives to providers to over-prescribe Covered Drugs or to prescribe Covered Drugs in place of competing drugs; and (iv)overcharged Medicaid for illegally inflated Covered Drugs reimbursements. Among other things, the complaints allege violations of New York state law and advance common law claims for unfair trade practices, fraud, and unjust enrichment. In addition, the amended Consolidated Complaint alleges that the defendants failed to accurately report the best price on the Covered Drugs to the Secretary of Health and Human Services pursuant to rebate agreements, and excluded from their reporting certain discounts and other rebates that would have reduced the best price. With respect to the MDL proceedings, some of the plaintiffs claims were dismissed, and the parties, including Biogen Idec, began a mediation of the outstanding claims on July1, 2008. We have not formed an opinion that an unfavorable outcome is either probable or remote in any of these cases, and do not express an opinion at this time as to their likely outcome or as to the magnitude or range of any potential loss. We believe that we have good and valid defenses to each of these complaints and are vigorously defending against them. In 2006, the Massachusetts Department of Revenue (DOR) issued a Notice of Assessment against Biogen Idec MA Inc. for $38.9million of corporate excise tax for 2002, which includes associated interest and penalties. On December6, 2006, we filed an abatement application with the DOR, seeking abatements for 2001, 2002 and 2003. The abatement application was denied on July24, 2007. On July25, 2007, we filed a petition with the Massachusetts Appellate Tax Board, seeking, among other items, abatements of corporate excise tax for 2001, 2002 and 2003 and adjustments in certain credits and credit carryforwards for 2001, 2002 and 2003. Issues before the Board include the computation of Biogen Idec MAs sales factor for 2001, 2002 and 2003, computation of Biogen Idec MAs research credits for those same years, and the availability of deductions for ce

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information [Abstract]
Segment Information	17. Segment Information We operate in one business segment, which is the business of development, manufacturing and commercialization of novel therapeutics for human health care and therefore, our chief operating decision-maker manages the operation of our Company as a single operating segment.

New Accounting Pronouncements

New Accounting Pronouncements
	3 Months Ended Mar. 31, 2010
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements	18. 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. Recently Issued Accounting Standards In October 2009, the FASB issued Accounting Standards Update (ASU) No.2009-13, Multiple-Deliverable Revenue Arrangements (ASU No.2009-13). ASU No.2009-13, which amends existing revenue recognition accounting pronouncements and provides accounting principles and application guidance on whether multiple deliverables exist, how the arrangement should be separated, and the consideration allocated. This guidance eliminates the requirement to establish the fair value of undelivered products and services and instead provides for separate revenue recognition based upon managements estimate of the selling price for an undelivered item when there is no other means to determine the fair value of that undelivered item. Previous accounting principles required that the fair value of the undelivered item be the price of the item either sold in a separate transaction between unrelated third parties or the price charged for each item when the item is sold separately by the vendor. This was difficult to determine when the product was not individually sold because of its unique features. If the fair value of all of the elements in the arrangement was not determinable, then revenue was deferred until all of the items were delivered or fair value was determined. This new approach is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June15, 2010, which for Biogen Idec means no later than January1, 2011. Early adoption is permitted; however, adoption of this guidance as of a date other than January1, 2011, will require us to apply this guidance retrospectively effective as of January1, 2010 and will require disclosure of the effect of this guidance as applied to all previously reported interim periods in the fiscal year of adoption. While we do not expect the adoption of this standard to have a material impact on our financial position and results of operations, this standard may impact us in the event we complete future transactions or modify existing collaborative relationships. In June 2009, the FASB issued ASU No.2009-16, Accounting for Transfers of Financial Assets (ASU No.2009-16). ASU No.2009-16 prescribes the information that a reporting entity must provide in its financial reports about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement in transferred financial assets. Specifically, among other aspects, this standard amends previously issued accounting guidance, modifies the financial-components approach and removes the concept of a qualifying special pu