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Document and Company Information - USD ($)	12 Months Ended
Document and Company Information - USD ($)	Dec. 31, 2009	Feb. 05, 2010	Jun. 30, 2009
Document And Company Information [Abstract]
Entity Registrant Name	BIOGEN IDEC INC.
Entity Central Index Key	0000875045
Document Type	10-K
Document Period End Date	Dec. 31, 2009
Amendment Flag	false
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		269,601,262

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Revenues:
Product	$ 3,152,941	$ 2,839,651	$ 2,136,821
Unconsolidated joint business	1,094,863	1,128,238	926,098
Other	129,544	129,618	108,698
Total revenues	4,377,348	4,097,507	3,171,617
Costs and expenses:
Cost of sales, excluding amortization of acquired intangible assets	382,104	401,989	335,192
Research and development	1,283,068	1,072,058	925,164
Selling, general and administrative	911,034	925,305	776,103
Collaboration profit sharing	215,904	136,041	14,079
Amortization of acquired intangible assets	289,811	332,745	257,495
Acquired in-process research and development	0	25,000	84,172
Gain on dispositions, net	0	(9,242)	(360)
Total costs and expenses	3,081,921	2,883,896	2,391,845
Income from operations	1,295,427	1,213,611	779,772
Other income (expense), net	37,252	(57,728)	72,396
Income before income tax expense	1,332,679	1,155,883	852,168
Income tax expense	355,617	365,776	272,423
Net income	977,062	790,107	579,745
Net income (loss) attributable to noncontrolling interest, net of tax	6,930	6,940	(58,427)
Net income attributable to Biogen Idec Inc.	$ 970,132	$ 783,167	$ 638,172
Net income per share:
Basic earnings per share attributable to Biogen Idec Inc.	$ 3.37	$ 2.67	$ 2.02
Diluted earnings per share attributable to Biogen Idec Inc.	$ 3.35	$ 2.65	$ 1.99
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Idec Inc.	287,356	292,332	315,836
Diluted earnings per share attributable to Biogen Idec Inc.	289,476	294,984	320,171

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$ 581,889	$ 622,385
Marketable securities	681,835	719,586
Collateral received for loaned securities	0	29,991
Accounts receivable, net of allowances of $43,818 and $32,047 at December 31, 2009 and 2008, respectively	551,208	446,665
Due from unconsolidated joint business	193,789	206,925
Loaned securities	0	29,446
Inventory	293,950	263,602
Other current assets	177,924	139,400
Total current assets	2,480,595	2,458,000
Marketable securities	1,194,080	891,406
Property, plant and equipment, net	1,637,083	1,594,754
Intangible assets, net	1,871,078	2,161,058
Goodwill	1,138,621	1,138,621
Investments and other assets	230,397	235,152
Total assets	8,551,854	8,478,991
Current liabilities:
Collateral payable on loaned securities	0	29,991
Accounts payable	118,534	107,417
Taxes payable	75,891	223,260
Accrued expenses and other	500,755	534,887
Current portion of notes payable and line of credit	19,762	27,667
Total current liabilities	714,942	923,222
Notes payable and line of credit	1,080,207	1,085,431
Long-term deferred tax liability	240,618	356,017
Other long-term liabilities	254,205	280,369
Total liabilities	$ 2,289,972	$ 2,645,039
Commitments and contingencies (Notes 16, 17, 18 and 19)
Shareholders' Equity:
Preferred stock, par value $0.001 per share (8,000 shares authorized, of which 1,750 are designated Series A and 1,000 are designated Series X Junior Participating; 8 shares of Series A issued and outstanding with a $551 liquidation value at December 31, 2009 and 2008)	$ 0	$ 0
Common stock, par value $0.0005 per share (1,000,000 shares authorized; 288,494 shares issued and 274,855 shares outstanding at December 31, 2009; 297,253 shares issued and 288,046 shares outstanding at December 31, 2008)	144	149
Additional paid-in capital	5,781,920	6,073,957
Accumulated other comprehensive income (loss)	50,496	(11,106)
Retained earnings	1,068,890	270,180
Treasury stock, at cost; 13,639 and 9,207 shares at December 31, 2009 and 2008, respectively	(679,920)	(527,097)
Total Biogen Idec Inc. shareholders' equity	6,221,530	5,806,083
Noncontrolling interest	40,352	27,869
Total shareholders' equity	6,261,882	5,833,952
Total liabilities and shareholders' equity	$ 8,551,854	$ 8,478,991

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Allowance for doubtful accounts receivable, current	$ 43,818,000	$ 32,047,000
Shareholders' Equity:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	8,000	8,000
Preferred stock, liquidation value per share of Series A	$ 551	$ 551
Common stock, par value	$ 0.0005	$ 0.0005
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	288,494	297,253
Common stock, shares outstanding	274,855	288,046
Treasury stock, at cost	13,639	9,207
Series X Junior Participating Preferred Stock
Shareholders' Equity:
Preferred stock, shares authorized	1,000	1,000
Series A Preferred Stock
Shareholders' Equity:
Preferred stock, shares authorized	1,750	1,750
Preferred stock, shares issued	8	8
Preferred stock, shares outstanding	8	8

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Cash flows from operating activities:
Net income	$ 977,062	$ 790,107	$ 579,745
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization of property, plant and equipment and intangible assets	427,961	462,059	380,293
Acquired in process research and development and license	0	25,000	136,172
Share-based compensation	160,902	146,207	123,129
Cash received upon termination of interest rate swap	0	53,873	0
Non-cash interest (income) expense and foreign exchange remeasurement, net	(7,892)	(4,934)	1,444
Deferred income taxes	(137,351)	(139,549)	(81,555)
Realized (gain) loss on sale of marketable securities and strategic investments	(23,974)	1,078	(16,732)
Write-down of inventory to net realizable value	16,924	29,850	21,599
Gain on sale of property, plant and equipment, net	0	(9,242)	(360)
Impairment of marketable securities, investments and other assets	16,184	61,644	24,445
Excess tax benefit from stock options	(3,436)	(27,990)	(69,666)
Changes in operating assets and liabilities, net:
Accounts receivable	(100,442)	(57,565)	(70,701)
Due from unconsolidated joint business	13,136	(40,239)	2,022
Inventory	(42,772)	(54,204)	(83,192)
Other assets	22,271	3,711	238
Accrued expenses and other current liabilities	(48,942)	146,420	30,579
Other liabilities and taxes payable	(194,733)	176,219	41,294
Net cash flows provided by operating activities	1,074,898	1,562,445	1,018,754
Cash flows from investing activities:
Purchases of marketable securities	(3,548,119)	(3,163,824)	(2,945,244)
Proceeds from sales and maturities of marketable securities	3,319,007	2,941,060	3,154,290
Acquisitions, net of cash acquired	0	(25,000)	(95,789)
Purchases of property, plant and equipment	(165,646)	(275,954)	(284,106)
Proceeds from sale of property, plant and equipment	0	0	16,669
Purchase of other investments	(44,086)	(20,373)	(23,672)
Proceeds from the sale of strategic investments	13,822	0	99,489
Collateral received under securities lending	29,991	178,218	(208,209)
Net cash flows used in investing activities	(395,031)	(365,873)	(286,572)
Cash flows from financing activities:
Purchase of treasury stock	(751,170)	(738,938)	(2,991,184)
Proceeds from issuance of stock for share-based compensation arrangements	47,810	178,486	489,180
Change in cash overdraft	12,275	(498)	(5,399)
Excess tax benefit from stock options	3,436	27,990	69,666
Proceeds from borrowings	0	986,980	1,512,913
Repayments of borrowings	(10,867)	(1,512,474)	(12,042)
Repayments of long-term debt	0	0	(6,563)
Net capital contribution from noncontrolling interest	4,356	2,047	1,881
Obligation under securities lending	(29,991)	(178,218)	208,209
Net cash flows used in financing activities	(724,151)	(1,234,625)	(733,339)
Net decrease in cash and cash equivalents	(44,284)	(38,053)	(1,157)
Effect of exchange rate changes on cash and cash equivalents	3,788	776	(558)
Cash and cash equivalents, beginning of the year	622,385	659,662	661,377
Cash and cash equivalents, end of the year	581,889	622,385	659,662
Cash paid during the year for:
Interest	68,094	40,026	35,439
Income taxes	745,402	371,978	251,928
Non-cash financing activity:
Conversion of subordinated notes to common and treasury stock	$ 0	$ 0	$ 38,986

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Statement [Line Items]
Beginning Balance	$ 5,833,952	$ 5,554,023	$ 7,159,617
Comprehensive income:
Net income	977,062	790,107	579,745
Unrealized loss on securities available for sale, net of tax of ($379), ($1,123) and ($3,984) for year 2009, 2008 and 2007, respectively	795	(67)	9,124
Unrealized gains on foreign currency forward contracts, net of tax of ($3,582), $1,522 and $2,263 for year 2009, 2008 and 2007, respectively	41,668	(36,140)	(3,962)
Unrealized loss on pension benefit obligation, net of tax of ($67), $0 and ($370) for year 2009, 2008 and 2007, respectively	501	(43)	2,421
Translation adjustment	19,835	(54,948)	51,205
Total comprehensive income	1,039,861	698,909	638,533
Fair value of assets and liabilities acquired and assigned to noncontrolling interest due to the adoption of a new accounting standard for the consolidation of variable interests			65,038
Distribution to noncontrolling interest	(2,832)	(2,817)
Capital contribution from noncontrolling interest	7,188	4,864	1,881
Repurchase of common stock for Treasury, at cost	(751,170)	(738,938)
Repurchase and retirement of common stock pursuant to tender offer			(2,991,184)
Retirement of common stock pursuant to 2009 stock repurchase plan	0
Issuance of treasury stock from conversion of subordinated notes payable			36,113
Issuance of common stock from conversion of subordinated notes payable		227	2,371
Issuance of treasury stock under stock option and stock purchase plans	47,810		101,896
Issuance of common stock under stock option and stock purchase plans		178,486	386,932
Issuance of treasury stock under stock award plans	(43,305)		(30,081)
Issuance of common stock under stock award plans		(44,395)	(3,420)
Compensation expense related to share-based payments	167,207	153,748	128,101
Tax benefit from share-based payments	(36,829)	29,845	67,227
Adjustment for adoption for accounting of uncertain tax positions			(8,998)
Treasury stock reclassifications			(3)
Ending Balance	6,261,882	5,833,952	5,554,023
Biogen Idec Inc. Shareholders Equity
Statement [Line Items]
Beginning Balance	5,806,083	5,534,295	7,149,778
Comprehensive income:
Net income	970,132	783,167	638,172
Unrealized loss on securities available for sale, net of tax of ($379), ($1,123) and ($3,984) for year 2009, 2008 and 2007, respectively	795	(67)	9,124
Unrealized gains on foreign currency forward contracts, net of tax of ($3,582), $1,522 and $2,263 for year 2009, 2008 and 2007, respectively	41,668	(36,140)	(3,962)
Unrealized loss on pension benefit obligation, net of tax of ($67), $0 and ($370) for year 2009, 2008 and 2007, respectively	501	(43)	2,421
Translation adjustment	18,638	(54,102)	49,808
Total comprehensive income	1,031,734	692,815	695,563
Repurchase of common stock for Treasury, at cost	(751,170)	(738,938)
Repurchase and retirement of common stock pursuant to tender offer			(2,991,184)
Retirement of common stock pursuant to 2009 stock repurchase plan	0
Issuance of treasury stock from conversion of subordinated notes payable			36,113
Issuance of common stock from conversion of subordinated notes payable		227	2,371
Issuance of treasury stock under stock option and stock purchase plans	47,810		101,896
Issuance of common stock under stock option and stock purchase plans		178,486	386,932
Issuance of treasury stock under stock award plans	(43,305)		(30,081)
Issuance of common stock under stock award plans		(44,395)	(3,420)
Compensation expense related to share-based payments	167,207	153,748	128,101
Tax benefit from share-based payments	(36,829)	29,845	67,227
Adjustment for adoption for accounting of uncertain tax positions			(8,998)
Treasury stock reclassifications			(3)
Ending Balance	6,221,530	5,806,083	5,534,295
Common Stock
Statement [Line Items]
Beginning Balance	$ 149	$ 147	$ 173
Beginning Balance, shares	297,253	295,698	345,637
Comprehensive income:
Repurchase and retirement of common stock pursuant to tender offer			$ (29)
Retirement of common stock pursuant to 2009 stock repurchase plan	$ (5)
Repurchase and retirement of common stock pursuant to tender offer, shares			(56,424)
Retirement of common stock pursuant to 2009 stock repurchase plan, shares	(8,759)
Issuance of common stock from conversion of subordinated notes payable, shares		16	182
Issuance of common stock under stock option and stock purchase plans		$ 1	$ 4
Issuance of common stock under stock option and stock purchase plans, shares		852	8,017
Issuance of common stock under stock award plans		$ 1
Issuance of common stock under stock award plans, shares		688	45
Forfeiture of common stock under restricted stock plan, shares		(1)	(16)
Treasury stock reclassifications			$ (1)
Treasury stock reclassifications, shares			(1,743)
Ending Balance	$ 144	$ 149	$ 147
Ending Balance, shares	288,494	297,253	295,698
Convertible Preferred Stock
Statement [Line Items]
Beginning Balance, shares	8	8	8
Comprehensive income:
Ending Balance, shares	8	8	8
Additional Paid-in Capital
Statement [Line Items]
Beginning Balance	$ 6,073,957	$ 5,807,071	$ 8,308,232
Comprehensive income:
Repurchase and retirement of common stock pursuant to tender offer			(2,991,155)
Retirement of common stock pursuant to 2009 stock repurchase plan	(422,415)
Issuance of common stock from conversion of subordinated notes payable		227	2,371
Issuance of common stock under stock option and stock purchase plans		34,297	386,928
Issuance of treasury stock under stock award plans			(48,292)
Issuance of common stock under stock award plans		(29,800)	(2,744)
Compensation expense related to share-based payments	167,207	153,748	128,101
Tax benefit from share-based payments	(36,829)	29,845	67,227
Adjustment for adoption for accounting of uncertain tax positions			(10,583)
Treasury stock reclassifications			(33,014)
Treasury stock reclassifications		78,569
Ending Balance	5,781,920	6,073,957	5,807,071
Treasury Stock
Statement [Line Items]
Beginning Balance	$ (527,097)		$ (319,655)
Beginning Balance, shares	(9,207)		(7,463)
Comprehensive income:
Repurchase of common stock for Treasury, at cost	$ (751,170)	$ (738,938)
Repurchase of common stock for Treasury, shares	(15,982)	(12,778)
Retirement of common stock pursuant to 2009 stock repurchase plan	$ 422,420
Retirement of common stock pursuant to 2009 stock repurchase plan, shares	8,759
Issuance of treasury stock from conversion of subordinated notes payable			$ 119,795
Issuance of treasury stock from conversion of subordinated notes payable, shares			2,850
Issuance of treasury stock under stock option and stock purchase plans	$ 75,001		$ 135,720
Issuance of treasury stock under stock option and stock purchase plans, shares	1,181		2,994
Issuance of common stock under stock option and stock purchase plans		$ 200,411
Issuance of common stock under stock option and stock purchase plans, shares		3,380
Issuance of treasury stock under stock award plans	$ 100,926		$ 18,076
Issuance of treasury stock under stock award plans, shares	1,610		465
Issuance of common stock under stock award plans		$ 11,430
Issuance of common stock under stock award plans, shares		191
Forfeiture of common stock under restricted stock plan			$ (2,378)
Forfeiture of common stock under restricted stock plan, shares			(50)
Treasury stock reclassifications			$ 48,442
Treasury stock reclassifications, shares			1,204
Ending Balance	$ (679,920)	$ (527,097)
Ending Balance, shares	(13,639)	(9,207)
Retained Earnings/(accumulated deficit)
Statement [Line Items]
Beginning Balance	$ 270,180	$ (352,169)	$ (860,827)
Comprehensive income:
Net income	970,132	783,167	638,172
Issuance of treasury stock from conversion of subordinated notes payable			(83,682)
Issuance of treasury stock under stock option and stock purchase plans	(27,191)		(33,824)
Issuance of common stock under stock option and stock purchase plans		(56,223)
Issuance of treasury stock under stock award plans	(144,231)		135
Issuance of common stock under stock award plans		(26,026)	(676)
Forfeiture of common stock under restricted stock plan			2,378
Adjustment for adoption for accounting of uncertain tax positions			1,585
Treasury stock reclassifications			(15,430)
Treasury stock reclassifications		(78,569)
Ending Balance	1,068,890	270,180	(352,169)
Accumulated other comprehensive income
Statement [Line Items]
Beginning Balance	(11,106)	79,246	21,855
Comprehensive income:
Unrealized loss on securities available for sale, net of tax of ($379), ($1,123) and ($3,984) for year 2009, 2008 and 2007, respectively	795	(67)	9,124
Unrealized gains on foreign currency forward contracts, net of tax of ($3,582), $1,522 and $2,263 for year 2009, 2008 and 2007, respectively	41,668	(36,140)	(3,962)
Unrealized loss on pension benefit obligation, net of tax of ($67), $0 and ($370) for year 2009, 2008 and 2007, respectively	501	(43)	2,421
Translation adjustment	18,638	(54,102)	49,808
Ending Balance	50,496	(11,106)	79,246
Noncontrolling Interest
Statement [Line Items]
Beginning Balance	27,869	19,728	9,839
Comprehensive income:
Net income	6,930	6,940	(58,427)
Translation adjustment	1,197	(846)	1,397
Total comprehensive income	8,127	6,094	(57,030)
Fair value of assets and liabilities acquired and assigned to noncontrolling interest due to the adoption of a new accounting standard for the consolidation of variable interests			65,038
Distribution to noncontrolling interest	(2,832)	(2,817)
Capital contribution from noncontrolling interest	7,188	4,864	1,881
Ending Balance	$ 40,352	$ 27,869	$ 19,728

Consolidated Statements of Shareholders Equity (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Comprehensive income:
Tax effect on unrealized gains on securities available for sale	$ (379,000)	$ (1,123,000)	$ (3,984,000)
Tax effect on unrealized loss on foreign currency forward contracts	(3,582,000)	1,522,000	2,263,000
Tax effect on unrealized gains on pension benefit obligation	(67,000)	0	(370,000)
Biogen Idec Inc. Shareholders Equity
Comprehensive income:
Tax effect on unrealized gains on securities available for sale	(379,000)	(1,123,000)	(3,984,000)
Tax effect on unrealized loss on foreign currency forward contracts	(3,582,000)	1,522,000	2,263,000
Tax effect on unrealized gains on pension benefit obligation	(67,000)	0	(370,000)
Accumulated other comprehensive income
Comprehensive income:
Tax effect on unrealized gains on securities available for sale	(379,000)	(1,123,000)	(3,984,000)
Tax effect on unrealized loss on foreign currency forward contracts	(3,582,000)	1,522,000	2,263,000
Tax effect on unrealized gains on pension benefit obligation	$ (67,000)	$ 0	$ (370,000)

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2009

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies


1.	Summary of Significant Accounting Policies

Basis of Presentation

Consolidation

Biogen Idec Inc. (“Biogen Idec,” “we,” “us” or “the Company”) is a global biotechnology company that creates new standards of care in therapeutic areas with high unmet medical needs. 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 Dompé SRL and Biogen Dompé 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 interest retained in the collaborative arrangement 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 determining the expected losses and residual returns of the technologies being developed pursuant to collaborations and other economic risk and reward of such collaborations; these considerations impact the way we account for our existing collaborative relationships and may result in the future consolidation of companies or entities with which we have a collaborative arrangement.

Use of Estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires our management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition and related allowances, marketable securities, derivatives and hedging activities, inventory, impairments of long-lived assets including intangible assets, impairments of goodwill, income taxes including the valuation allowance for deferred tax assets, valuation of investments, research and development expenses, contingencies and litigation, and share-based payments. 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.

Reclassifications

Where specified, certain prior-year amounts have been reclassified to conform to the current year’s presentation.

Subsequent Events

We evaluated all events and transactions through February 9, 2009, the date we issued these financial statements. During this period we did not have any material recognizable subsequent events. However, we did have the following nonrecognizable subsequent events:


	•	In January 2010, Syntonix Pharmaceuticals, Inc. (Syntonix) achieved a significant development milestone obligating us to pay $40.0 million to its former shareholders. As the milestone occurred after December 31, 2009, the obligation is not reflected within our consolidated balance sheet as of that date. Such obligations are recorded when the milestone has been achieved due to the uncertainty surrounding triggering events. Refer to Note 2, Acquisitions and Dispositions to our Consolidated Financial Statements for additional discussion.

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 seller’s price to the buyer is fixed or determinable; and collectibility 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, Elan 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) rebates, 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 consist 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-La Roche 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.

Milestone Revenues

Under the terms of our collaboration agreement with Elan was required to make milestone payments to us in order to continue sharing equally in the collaboration’s results. These amounts, recorded as deferred revenue upon receipt, are recognized as product revenue in our consolidated statements of income over the term of the collaboration agreement based on a units of revenue method whereby the revenue recognized is based on the ratio of units shipped in the current period over the total units expected to be shipped over the remaining term of the collaboration.

Reserves for Discounts and Allowances

We establish reserves for trade term discounts, wholesaler incentives, Medicaid rebates, Veteran’s Administration (VA) rebates, managed care rebates, product returns and other applicable allowances. Reserves established for these discounts and allowances are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer).

In addition, we distribute no-charge product to qualifying patients under our patient assistance and patient replacement goods programs. This program is administered through one of our distribution partners, who ships product for qualifying patients from their own inventory purchased 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.

Product revenue reserves are categorized as follows: discounts, contractual adjustments, and returns.

Discount reserves include trade term discounts and wholesaler incentives. Trade term discounts and wholesaler incentive reserves 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 adjustment reserves primarily relate to Medicaid, VA and managed care rebates.


	•	Medicaid rebate reserves 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 accrued expenses and other current liabilities. Rebate amounts are generally determined at the time of claim by the state, and we generally make cash payments for such amounts within a few weeks of receiving billings from the state.

	•	VA rebates or chargeback reserves 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 accruals 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 receiving notification from the wholesaler.

	•	Managed care rebates reserves 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 to product revenue and the establishment of a liability which is included in accrued expenses and other current liabilities. These rebates result from performance-based offers that are primarily based on attaining contractually specified sales volumes and growth. 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.

Allowances for product returns are established for returns made by wholesalers and patients and are recorded in the period the related revenue is recognized, resulting in a reduction to product revenue. In accordance with contractual terms, wholesalers are permitted to return product for reasons such as damaged or expired product. We also accept returns from our patients for various reasons.

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.

Bad debt reserves are based on our estimated uncollectible accounts receivable. Given our historical experiences with bad debts, combined with our credit management policies and practices, we do not presently maintain significant bad debt reserves.

In addition to the discounts and rebates 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 and distribution services. We have established the fair value of these services and classified these customer service contracts as sales and marketing expense. If we had concluded that we did not receive a separate identifiable benefit or have sufficient evidence that the fair value did not exist for these services, we would have been required to classify these costs as a reduction of revenue.

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, 2009, cash equivalents were comprised of money market funds and commercial paper.

Fair Value Measurements

Effective January 1, 2009, we adopted a newly issued accounting standard for fair value measurements of all nonfinancial assets and nonfinancial liabilities not recognized or disclosed at fair value in the financial statements on a recurring basis. The adoption of the accounting standard for these assets and liabilities did not have a material impact on our financial position or results of operations; however, this standard may impact us in subsequent periods and require additional disclosures.

In the second quarter of 2009, we implemented newly issued accounting standards which provide guidance for determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying circumstances that indicate that a transaction is not orderly. Specifically, the new standards provide additional guidelines for making fair value measurements more consistent with the principles presented and provide authoritative guidance in determining whether a market is active or inactive, and whether a transaction is distressed. This guidance is applicable to all assets and liabilities (i.e. financial and nonfinancial) and requires enhanced disclosures, including interim and annual disclosure of the input and valuation techniques (or changes in techniques) used to measure fair value and the defining of the major security types comprising debt and equity securities held based upon the nature and risk of the security. The adoption of the new standards did not impact our financial position or results of operations; however, adoption has enhanced disclosures for our investments in marketable debt securities and resulted in the reclassification of certain amounts included within our previously reported disclosures to conform to the presentation adopted in the current year.

Effective January 1, 2008, we adopted a standard for fair value measurements for our financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The adoption of this guidance did not have an impact on our consolidated financial position or results of operations.

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 carrying amounts reflected in the consolidated balance sheets for cash, 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.

Concentration of Credit Risks

Our primary exposure to credit risk derives from our cash, cash equivalents, marketable securities, and receivables from customers and collaborative partners.

Until required for use in the business, we invest our cash in bank deposits, certificates of deposit, commercial paper, corporate notes, foreign and U.S. government instruments, including government sponsored enterprise mortgage-backed securities, credit card and auto loan asset-backed securities and other marketable debt instruments in accordance with our investment policy. We mitigate credit risk by maintaining a well diversified portfolio and limiting the amount of investment exposure as to institution, maturity and investment type.

Concentrations of credit risk with respect to receivables, which are typically unsecured, are generally limited due to the wide variety of customers and markets using our products, as well as their dispersion across many different geographic areas. Our accounts receivable are payable by wholesale distributors, large pharmaceutical companies and public hospitals. 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. Our historical write-offs of accounts receivable have not been significant. As of December 31, 2009 and 2008, one wholesale distributor accounted for approximately 8.1% and 11.0% of consolidated receivables, respectively.

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 in shareholders’ 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.

Strategic Investments

As part of our strategic product development efforts, we invest in equity securities of certain biotechnology companies. These investments are known as strategic investments and are classified as available-for-sale and accounted for as marketable equity investments or as cost investments based upon our percentage ownership interest and other factors which may indicate the presumption of significant influence. When assessing whether a decline in the fair value of a strategic investment below our cost basis 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 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 percentage ownership interest and other factors which may indicate the presence of 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 from any recent rounds of financing completed by the company, public market prices of comparable companies, and general market conditions.

Securities Lending

We are able to loan certain securities from our portfolio to other institutions. Such securities are classified as loaned securities on the accompanying consolidated balance sheets. Collateral for the loaned securities, consisting of cash or other securities, is maintained at a rate of approximately 102% of the market value of each loaned security. We previously loaned certain securities from our portfolio to other institutions and held collateral in the amount of $30.0 million as of December 31, 2008 in relation to such loans. The cash collateral was recorded as collateral received for loaned securities on the accompanying consolidated balance sheet. No such loans were outstanding as of December 31, 2009; accordingly, no collateral was held as of December 31, 2009.

Other-than-Temporary Impairments

In April 2009, we implemented a newly issued accounting standard which provides guidance for the recognition, measurement and presentation of other-than-temporary impairments. This newly issued standard amended the other-than-temporary impairment model for debt securities and requires additional disclosures regarding the calculation of credit losses and the factors considered in reaching a conclusion that an investment is other-than-temporarily impaired. The impairment model for equity securities was not affected.

Prior to our adoption of this new accounting standard, we recognized all other-than-temporary impairment amounts related to our debt securities in earnings as required under the previously effective guidance which required that management assert that it had the ability and intent to hold a debt security until maturity or until we recovered the cost of our investment. Under the new accounting standards, an other-than-temporary impairment must be recognized through earnings if an investor has the intent to sell the debt security or if it is more likely than not that the investor will be required to sell the debt security before recovery of its amortized cost basis. However, even if an investor does not expect to sell a debt security, expected cash flows to be received must be evaluated to determine if a credit loss has occurred. In the event of a credit loss, only the amount associated with the credit loss is recognized in income. The amount of losses relating to other factors, including those resulting from changes in interest rates, are recorded in accumulated other comprehensive income. The adoption of this guidance did not have a material impact on our financial position or results of operations.

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.

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.

Inventory Write-Offs

We periodically review our inventories for excess or obsolete inventory and write-down obsolete or otherwise unmarketable inventory to its estimated net realizable value.

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. 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 manufacturing equipment for the production of a commercially approved drug. These costs include primarily direct labor and material and are incurred in preparing the equipment for its intended use. The validation costs are amortized over the life of the related equipment. Maintenance costs are expensed as incurred.

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
Machinery and Equipment		6 to 15 years
Furniture and Fixtures		7 years
Computer Software and Hardware		3 to 5 years

Intangible Assets

Effective January 1, 2009, we implemented an amendment to the accounting and disclosure requirements related to intangible assets. This amendment provides guidance for determining the useful life of a recognized intangible asset and requires enhanced disclosures so that users of financial statements are able to assess the extent to which the expected future cash flows associated with the asset are affected by our intent and ability to renew or extend the arrangement. The adoption of this guidance did not impact our financial position or results of operations as this standard was required to be implemented prospectively; however, this standard may impact us in subsequent periods.

Our intangible assets consist of patents, licenses, core developed technology, trademarks, tradenames, assembled workforce, and distribution rights, the majority of which arose in connection with the merger of Biogen Inc. and IDEC Pharmaceuticals Corporation. These intangible assets were recorded at fair value and are stated net of accumulated amortization and impairments.

The useful lives of our intangible assets are primarily based on the legal or contractual life of the underlying patent or contract, which does not include additional years for the potential extension or renewal of the contract or patent. Our policy is based on the generally accepted accounting principles for amortization of intangible assets, which requires that the amortization of intangible assets reflect the pattern that the economic benefits of the intangible assets are consumed.

Intangible assets related to patents, licenses, core developed technology, assembled workforce, and distribution rights are amortized over their remaining estimated useful lives. Intangible assets related to trademarks and tradenames have indefinite lives, and as a result are not amortized, but 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.

Our most significant intangible asset is the core technology related to our AVONEX product which was established at the time of the merger of Biogen, Inc. and IDEC Pharmaceuticals Corporation. The net book value of this asset as of December 31, 2009 was $1,516.7 million.

We believe the economic benefit of this core technology is consumed as revenue is generated from our AVONEX product. An analysis of the anticipated lifetime revenue of AVONEX is performed at least annually during our long range planning cycle. The results of this forecast serve as the basis for our assumptions used in the economic consumption amortization model for our core technology intangible asset. Although we believe this process has allowed us to reliably determine the best estimate of the pattern in which we will consume the economic benefits of our core technology intangible asset, the model could result in deferring amortization charges to future periods in certain instances due to continued sales of the product at a nominal level after patent expiration or otherwise. In order to ensure amortization charges are not unreasonably deferred to future periods, we use the straight-line method to determine the minimum annual amount of amortization expense (the minimum amortization amount). This minimum amortization amount is recalculated each year based on the remaining unamortized balance of the intangible asset and the remaining estimated useful life of the intangible asset and is compared to the amount of amortization determined under the economic consumption model. We record amortization based upon the higher of the amount of amortization determined under the economic consumption model or the minimum amortization amount determined under the straight-line method.

Impairment of Long-Lived Assets

Long-lived assets to be held and used, including property, plant and equipment as well as intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not 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 estimated fair values. Long-lived assets to be disposed of are carried at fair value less costs to sell.

Goodwill

Goodwill relates largely to amounts that arose in connection with the merger of Biogen, Inc. and IDEC Pharmaceuticals Corporation and 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 is subject to periodic review for impairment. Goodwill is reviewed annually, as of October 31, and whenever events or changes in circumstances indicate that the carrying amount of the goodwill might not be recoverable.

We perform a two-step impairment test. In the first step, we compare the fair value of the reporting unit to its carrying value. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the second step of the impairment test is performed in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then the company records an impairment loss equal to the difference. As described in Note 20, Segment Information to our Consolidated Financial Statements, we operate in one business segment which we consider our only reporting unit.

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. 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.

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.

Acquired In-Process Research and Development (IPR&D)

Acquired IPR&D represents the fair value assigned to research and development projects that we acquire that have not been completed at the date of acquisition and which have no future alternative use. 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 net cash flows from the projects, and discounting the net cash flows to present value. The revenue and costs projections used to value acquired IPR&D were, as applicable, reduced based on the probability of developing a new drug. Additionally, the projections considered 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 resulting net cash flows from such projects are based on management’s estimates of cost of sales, operating expenses, and income taxes from such projects. The rates utilized to discount the net cash flows to their present value were commensurate with the stage of development of the projects and uncertainties in the economic estimates used in the projections described above.

Effective January 1, 2009, we account for business combinations completed on or after January 1, 2009 in accordance with the revised guidance for accounting for business combinations, which modifies the criteria that must be met to qualify as a business combination and prescribes new accounting requirements, including the accounting treatment associated with acquired IPR&D. Prior to January 1, 2009, we measured acquired IPR&D at fair value and expensed it on acquisition date, or capitalized as an intangible assets if certain criteria were met; however, effective January 1, 2009, acquired IPR&D will be measured at fair value and capitalized as an intangible assets and tested for impairment until completion of the programs and amortized from the date of completion over the estimated useful life.

Accounting for Share-based Compensation

Our share-based compensation programs grant awards which have included stock options, time-vested restricted stock units, performance-vested restricted stock units, restricted stock awards 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, including the effect of estimated forfeitures, are then expensed over the options’ vesting periods. The fair values of our time-vested restricted units and restricted stock awards are based on the market value of our stock on the date of grant. Compensation expense for restricted stock units and restricted stock awards are recognized over the applicable service period, adjusted for the effect of estimated forfeitures.

We apply a graded vesting expense methodology when accounting for our performance-vested restricted stock units. 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. The vesting of these awards is also subject to the respective employees’ continued employment. 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 the 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. However, for each participant whose entry date is other than the start date of the offering period, the amount shall in no event be less than the market value per share of the common stock as of the beginning of the related offering period. The fair value of the discounted purchases made under the employee stock purchase plan 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 purchase period. We apply a graded vesting approach since our ESPP provides for multiple purchase periods and is, in substance, a series of linked awards.

Earnings per Share

We calculate earnings per share in accordance with the Earning Per Share Topic of the Codification which requires the presentation of “basic” earnings per share and “diluted” 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 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. For basic earnings per share, net income available to holders of common stock is divided by the weighted average number of shares of common stock outstanding. For purposes of calculating diluted earnings per share, net income is adjusted for the after-tax amount of interest associated with convertible debt and net income allocable to preferred shares, and the denominator includes both the weighted average number of shares of common stock outstanding and potential dilutive shares of common stock from stock options, unvested restricted stock awards, restricted stock units and other convertible securities, to the extent they are dilutive.

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.

We account for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on 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, new audit activity and changes in facts or circumstances related to a tax position. We evaluate this tax position on a quarterly basis. We also accrue for potential interest and penalties, related to unrecognized tax benefits in income tax expense.

Derivatives and Hedging Activities

Accounting standards require that all derivatives be recognized on the balance sheets at their fair value. 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 it is, the type of hedge transaction. 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 to the extent significant. 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. 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 shareholders’ equity.

Foreign exchange transaction gains and losses are included in the results of operations in other income (expense), net. We had net foreign exchange gains (losses) of $11.4 million, $(9.8) million, and $3.0 million in 2009, 2008, and 2007, respectively.

Assets Held for Sale

We consider certain real property and certain other miscellaneous assets as held for sale when they meet the criteria set out in the accounting standard for impairment or disposal of long-lived assets.

As of December 31, 2009 and 2008, there were no assets held for sale on the accompanying consolidated balance sheets.

Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2009

Acquisitions and Dispositions [Abstract]

Acquisitions and Dispositions


2.	Acquisitions and Dispositions

Syntonix Pharmaceuticals, Inc.

In January 2007, we acquired 100% of the stock of Syntonix. Syntonix focuses on discovering and developing long-acting therapeutic products to improve treatment regimens for chronic diseases, and is engaged in multiple programs in hemophilia. The purchase price was $44.4 million, including transaction costs, and could increase to as much as $124.4 million if certain development milestones with respect to Syntonix’s lead product, long-acting recombinant Factor IX, a proprietary long-acting Factor IX product for the treatment of hemophilia B, are achieved. Under the acquisition agreement we also agreed to make additional future consideration payments upon the achievement of certain milestone events. Future contingent consideration payments, if any, will be recorded as IPR&D. Due to the uncertainty surrounding triggering events related to the attainment of milestones, such charges and related obligations are generally recorded when the milestone has been achieved. The acquisition was funded from our existing cash on hand and was accounted for as an asset acquisition as Syntonix was a development-stage company.

The purpose of the acquisition was to enhance our pipeline and to expand into additional specialized markets and as a result of the acquisition we obtained the rights to the in-process technology of the Fc-fusion technology platform. Syntonix has two programs in development using the Fc-fusion platform, long-acting recombinant Factor IX and long-acting recombinant Factor VIII. Syntonix’s lead product, long-acting recombinant Factor IX, is a proprietary long-acting Factor IX product for the treatment of hemophilia B. Long-acting recombinant Factor VIII is a product being developed for the treatment of hemophilia A and is the subject of a Phase 1 study in hemophilia A.

In January 2010, we initiated patient enrollment in a registrational study for long-acting recombinant Factor IX in hemophilia B. The initiation of this study resulted in the achievement of a significant milestone, obligating us to pay $40.0 million to the former shareholders of Syntonix. As the milestone occurred subsequent to December 31, 2009, the obligation is not reflected in our consolidated balance sheet as of that date and will be reflected as IPR&D expense in the first quarter of 2010.

The results of operations of Syntonix are included in our consolidated results of operations from the date of acquisition. We have completed our purchase price allocation for the acquisition as set out below:


(In millions)	Total

Current assets	$	0.3
Fixed assets		0.2
Deferred tax asset		27.8
Assembled workforce		0.7
In-process research and development		18.4
Current liabilities		(3.0	)

Total purchase price	$	44.4

The purchase price included $2.0 million in loan forgiveness and $0.7 million in transaction fees. In addition, $0.3 million of severance charges were accrued as a result of the acquisition. The amount allocated to IPR&D relates to the development of long-acting recombinant Factor IX and long-acting recombinant Factor VIII. At the date of acquisition, these compounds were in development stage, had not reached technological feasibility and had no alternative future use. Accordingly, $18.4 million in IPR&D was expensed upon acquisition.

Upon acquisition, we recognized a deferred tax asset of $27.8 million. The deferred tax asset included approximately $12.8 million of net operating loss and research credit carryovers that will be utilized prior to applicable expiration dates, as well as approximately $15.3 million of other deferred tax assets primarily related to start-up and research expenditures that have been capitalized for tax purposes and are being amortized over the next several years.

The pro forma impact on total revenue, operating income (loss) and net income (loss) of the acquisition was not material for the year ended December 31, 2007.

We collaborate with Swedish Orphan Biovitrum AB (Biovitrum) on the development and commercialization of long-acting recombinant Factor VIII and Factor IX. Please read Note 17, Collaborations to our Consolidated Financial Statements for a description and summary of activities related to this collaboration.

ZEVALIN

Our product line previously included ZEVALIN (ibritumomab tiuxetan), which is part of a treatment regimen for certain B-cell NHL. In December 2007, we sold the rights to market, sell, manufacture and develop ZEVALIN in the U.S. to Cell Therapeutics, Inc. (CTI), for an upfront payment of $10.0 million and agreed to supply ZEVALIN product to CTI through 2014. In the European Union, we continue to sell ZEVALIN to Bayer Schering Pharma AG (Schering), our licensee for sales of ZEVALIN outside the U.S.

Under the terms of our agreement with CTI, we are further entitled to receive additional payments contingent upon the achievement of certain milestone events. In September 2009, the FDA approved an expansion of ZEVALIN’s label as part of the first line therapy in the treatment of follicular non-Hodgkin’s lymphoma. This approval triggered a $5.5 million payment to us in October 2009. We may receive up to an additional $10.0 million in milestone payments.

In addition, during December 2008 we received an additional $2.2 million payment from CTI pursuant to an amendment to our agreement with CTI as well as a $0.8 million consent fee received from CTI upon assigning their rights under the agreement to a third party in March 2009.

We recognize our sales of ZEVALIN to Schering for distribution in the European Union as product revenue, and we recognize sales related to our supply of ZEVALIN to CTI as corporate partner revenue. We continue to recognize royalties received from Schering on their sales of ZEVALIN in the European Union within the royalty revenue component of other revenues. The $10.0 million upfront and $7.7 million milestone payments received to date are being recognized in our results of operations over the term of our supply agreement with CTI.

Reserves

12 Months Ended

Dec. 31, 2009

Reserves [Abstract]

Reserves


3.	Reserves

Reserves for Discounts and Allowances

Revenues are recorded net of applicable reserves for trade term discounts, wholesaler incentives, Medicaid rebates, VA rebates, managed care rebates, product returns and other applicable allowances. Reserves established for these discounts and allowances are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer).

Our product revenue reserves are based on estimates of the amounts earned or to be claimed on the related sales. These estimates take into consideration our historical experience, current contractual requirements and statutory requirements, specific known market events and trends and forecasted customer buying patterns. If actual future results vary, we may need to adjust these estimates, which could have an effect on earnings in the period of the adjustment.

An analysis of the amount of, and change in, reserves is summarized as follows:


				Contractual
(In millions)	Discounts			Adjustments			Returns			Total

2009
Beginning balance	$	9.2		$	48.1		$	18.1		$	75.4
Current provisions relating to sales in current year		74.0			192.5			15.8			282.3
Adjustments relating to prior years		—			—			0.8			0.8
Payments/returns relating to sales in current year		(60.8	)		(124.4	)		(0.6	)		(185.8	)
Payments/returns relating to sales in prior years		(8.5	)		(45.9	)		(15.2	)		(69.6	)

Ending balance	$	13.9		$	70.3		$	18.9		$	103.1

2008
Beginning balance	$	6.4		$	33.1		$	20.4		$	59.9
Current provisions relating to sales in current year		67.1			150.6			14.7			232.4
Adjustments relating to prior years		—			(1.6	)		(2.5	)		(4.1	)
Payments/returns relating to sales in current year		(57.8	)		(101.2	)		(0.1	)		(159.1	)
Payments/returns relating to sales in prior years		(6.5	)		(32.8	)		(14.4	)		(53.7	)

Ending balance	$	9.2		$	48.1		$	18.1		$	75.4

2007
Beginning balance	$	12.7		$	30.5		$	17.8		$	61.0
Current provisions relating to sales in current year		45.7			113.1			17.1			175.9
Adjustments relating to prior years		—			(7.9	)		5.0			(2.9	)
Payments/returns relating to sales in current year		(39.4	)		(72.3	)		(0.4	)		(112.1	)
Payments/returns relating to sales in prior years		(12.6	)		(30.3	)		(19.1	)		(62.0	)

Ending balance	$	6.4		$	33.1		$	20.4		$	59.9

The total reserves above, included in our consolidated balance sheets, are summarized as follows:


	As of December 31,
(In millions)	2009		2008

Reduction of accounts receivable	$	43.3	$	31.6
Current liability		59.8		43.8

Total reserves	$	103.1	$	75.4

Reserves for discounts, contractual adjustments and returns that reduced gross product revenues are summarized as follows:


	For the Years Ended December 31,
(In millions, except percentages)	2009			2008			2007

Discounts	$	74.0		$	67.1		$	45.7
Contractual adjustments		192.5			149.0			105.2
Returns		16.6			12.2			22.1

Total reserves	$	283.1		$	228.3		$	173.0

Gross product revenues	$	3,436.0		$	3,068.0		$	2,309.8

Percent of gross product revenues		8.2	%		7.4	%		7.5	%

Inventory

12 Months Ended

Dec. 31, 2009

Inventory [Abstract]

Inventory


4.	Inventory

The components of inventories are summarized as follows:


	As of December 31,
(In millions)	2009		2008

Raw materials	$	49.2	$	29.8
Work in process		174.0		180.0
Finished goods		70.8		53.8

Total inventory	$	294.0	$	263.6

The following table provides a summary of work in process and finished goods by product:


	As of December 31,
(In millions)	2009		2008

AVONEX	$	76.8	$	79.2
TYSABRI		144.0		126.2
Other		24.0		28.4

Total finished goods and work in process	$	244.8	$	233.8

Raw materials		49.2		29.8

Total inventory	$	294.0	$	263.6

Write-downs from Unmarketable Inventory

Amounts written-down related to unmarketable inventory are charged to cost of sales, excluding amortization of acquired intangible assets. Amounts written-down during 2009, 2008, and 2007 totaled $16.9 million, $29.8 million and $21.6 million, respectively.

Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2009

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill


5.	Intangible Assets and Goodwill

Intangible assets, net of accumulated amortization, impairment charges and adjustments, are summarized as follows:


		As of December 31, 2009							As of December 31, 2008
	Estimated			Accumulated							Accumulated
(In millions)	Life	Cost		Amortization			Net		Cost		Amortization			Net

Out-licensed patents	12 years	$	578.0	$	(306.0	)	$	272.0	$	578.0	$	(250.3	)	$	327.7
Core developed technology	15-23 years		3,005.3		(1,472.4	)		1,532.9		3,005.3		(1,241.0	)		1,764.3
Trademarks and tradenames	Indefinite		64.0		—			64.0		64.0		—			64.0
In-licensed patents	14 years		3.0		(1.1	)		1.9		3.0		(0.9	)		2.1
Assembled workforce	4 years		2.1		(1.8	)		0.3		2.1		(1.2	)		0.9
Distribution rights	2 years		12.7		(12.7	)		—		12.7		(10.6	)		2.1

Total intangible assets		$	3,665.1	$	(1,794.0	)	$	1,871.1	$	3,665.1	$	(1,504.0	)	$	2,161.1

Intangible Assets

Intangible assets were unchanged as of December 31, 2009 as compared to December 31, 2008 exclusive of the impact of foreign exchange and amortization.

In September 2009, we were issued a U.S. patent for the use of beta interferon for immunomodulation or treating a viral condition, viral disease, cancers or tumors. This patent, expiring in September 2026, covers the treatment of multiple sclerosis with AVONEX, which is our brand of recombinant beta interferon and extends the expected remaining life of the related core intangible asset.

Amortization of Acquired Intangible Assets


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Amortization of acquired intangible assets	$	289.8	$	332.7	$	257.5

Our most significant intangible asset is the core technology related to our AVONEX product. We believe the economic benefit of our core technology is consumed as revenue is generated from our AVONEX product, which we refer to as the economic consumption amortization model. An analysis of the anticipated product sales of AVONEX is performed annually during our long range planning cycle each year. This analysis serves as the basis for the calculation of economic consumption for the core technology intangible asset.

We completed our most recent long range planning cycle in the third quarter of 2009, which includes an analysis of the anticipated product sales of AVONEX. Based upon our most recent analysis, amortization of intangible assets included within our consolidated balance sheet as of December 31, 2009 is expected to be in the range of approximately $160.0 million to $220.0 million for each of the next five years.

Goodwill

The following table summarizes changes to goodwill:


	As of December 31,
(In millions)	2009		2008

Balance as of January 1	$	1,138.6	$	1,137.4
Foreign currency translation		—		1.2

Balance as of December 31	$	1,138.6	$	1,138.6

As of December 31, 2009 we had no accumulated impairment losses.

Fair Value Measurements

12 Months Ended

Dec. 31, 2009

Fair Value Measurements [Abstract]

Fair Value Measurements


6.	Fair Value Measurements

Summary of Assets and Liabilities Recorded at Fair Value

The tables below present information about our assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2009 and 2008 and indicate the fair value hierarchy of the valuation techniques we utilized to determine such fair value, which is described further within Note 1, Summary of Significant Accounting Policies to our Consolidated Financial Statements.

A majority of our financial assets and liabilities have been classified as Level 2. These assets and liabilities have been initially valued at the transaction price and subsequently valued typically utilizing third party pricing services. The pricing services use many observable market inputs to determine value, including 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 understanding the models used, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming those securities trade in active markets. After completing our validation procedures, we did not adjust or override any fair value measurements provided by our pricing services as of December 31, 2009 and 2008.

Our strategic investments in publicly traded equity securities are classified as Level 1 assets as their fair values are readily determinable and based on quoted market prices.

Our venture capital investments are the only assets for which we used Level 3 inputs to determine the fair value. Venture capital investments represented approximately 0.3% of total assets as of December 31, 2009 and 2008. We have funding commitments of up to approximately $24.8 million as part of our investment in these funds. These funds primarily invest in small privately-owned, ventured-backed, biotechnology companies. The fair value of funds has been estimated using the net asset value of our ownership interest in partner’s capital. The investments cannot be redeemed within the funds. Distributions from each will be received as the underlying investments of the fund are liquidated. The funds and therefore a majority of the underlying assets of the funds will not be liquidated in the near future. The underlying assets in these funds are 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. Gains and losses (realized and unrealized) included in earnings for the period are reported in other income (expense), net.

The following tables set forth our financial assets and liabilities that were recorded at fair value:


			Quoted		Significant
			Prices		Other		Significant
	As of		in Active		Observable		Unobservable
	December 31,		Markets		Inputs		Inputs
(In millions)	2009		(Level 1)		(Level 2)		(Level 3)

Assets:
Cash equivalents	$	476.4	$	—	$	476.4	$	—
Marketable debt securities:
Corporate debt securities		504.1		—		504.1		—
Government securities		1,133.5		—		1,133.5		—
Mortgage and other asset backed securities		238.3		—		238.3		—
Strategic investments		5.9		5.9		—		—
Venture capital investments		21.9		—		—		21.9
Derivative contracts		15.8		—		15.8		—
Plan assets for deferred compensation		13.6		—		13.6		—

Total	$	2,409.5	$	5.9	$	2,381.7	$	21.9

Liabilities:
Derivative contracts	$	11.1	$	—	$	11.1	$	—

Total	$	11.1	$	—	$	11.1	$	—


			Quoted		Significant
			Prices		Other		Significant
	As of		in Active		Observable		Unobservable
	December 31,		Markets		Inputs		Inputs
(In millions)	2008		(Level 1)		(Level 2)		(Level 3)

Assets:
Cash equivalents	$	500.9	$	—	$	500.9	$	—
Marketable debt securities:
Corporate debt securities		328.5		—		328.5		—
Government securities		1,005.0		—		1,005.0		—
Mortgage and other asset backed securities		306.9		—		306.9		—
Strategic investments		4.6		4.6		—		—
Venture capital investments		23.9		—		—		23.9
Derivative contracts		1.9		—		1.9		—
Plan assets for deferred compensation		13.3		—		13.3		—

Total	$	2,185.0	$	4.6	$	2,156.5	$	23.9

Liabilities:
Derivative contracts	$	46.0	$	—	$	46.0	$	—

Total	$	46.0	$	—	$	46.0	$	—

The fair values of our cash equivalents, marketable debt securities, derivative contracts and plan assets for deferred compensation are determined through market and observable sources.

The following table provides a roll forward of the fair value of our venture capital investments, where fair value is determined by Level 3 inputs:


	As of December 31,
(In millions)	2009			2008

Beginning balance	$	23.9		$	28.1
Total net unrealized gains (losses) included in earnings		(3.6	)		(7.6	)
Purchases, issuances, and settlements		1.6			3.4

Ending balance	$	21.9		$	23.9

The fair values of our debt instruments are summarized as follows:


	As of December 31,
(In millions)	2009		2008

Credit line from Dompé	$	17.2	$	16.4
Notes payable to Fumedica		31.3		37.5
6.0% Senior Notes due 2013		475.7		429.8
6.875% Senior Notes due 2018		589.1		562.4

Total fair value	$	1,113.3	$	1,046.1

The fair values of our credit line from Dompe and our note payable to Fumedica were estimated using market observable inputs. The fair value of our Senior Notes was determined through market, observable and corroborated sources. Within the hierarchy of fair value measurements, these are Level 2 fair values.

Financial Instruments

12 Months Ended

Dec. 31, 2009

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 December 31, 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


			Gross		Gross
	Fair		Unrealized		Unrealized			Amortized
As of December 31, 2008 (In millions):	Value		Gains		Losses			Cost

Available-for-Sale
Corporate debt securities
Current	$	128.2	$	0.4	$	—		$	127.8
Non-current		200.3		2.6		—			197.7
Government securities
Current		582.8		1.5		—			581.3
Non-current		422.2		8.7		—			413.5
Mortgage and other asset backed securities
Current		13.9		—		—			13.9
Non-current		293.0		3.3		(0.3	)		290.0

Total available-for-sale securities	$	1,640.4	$	16.5	$	(0.3	)	$	1,624.2

Other Investments
Strategic investments, non-current	$	4.6	$	0.5	$	(0.1	)	$	4.2

In the tables above, as of December 31, 2009 and 2008, government securities included $298.8 million and $139.1 million, respectively, of Federal Deposit Insurance Corporation (FDIC) guaranteed senior notes issued by financial institutions under the Temporary Liquidity Guarantee Programs.

Certain commercial paper and short-term debt securities with original maturities of less than 90 days are included in cash and cash equivalents on the accompanying consolidated balance sheets and are not included in the tables above. As of December 31, 2009 and 2008, such commercial paper, including accrued interest, had fair and carrying values of $76.9 million and $42.7 million, respectively, and short-term debt securities had fair and carrying values of $399.5 million and $458.2 million, respectively.

In addition, the balances as of December 31, 2008 include amounts related to loaned securities under our securities lending program.

Summary of Contractual Maturities: Available-for-Sale Securities

The estimated fair value and amortized cost of securities, excluding strategic investments, available-for-sale by contractual maturity are summarized as follows:


	As of December 31, 2009				As of December 31, 2008
	Estimated		Amortized		Estimated		Amortized
(In millions)	Fair Value		Cost		Fair Value		Cost

Due in one year or less	$	522.0	$	519.5	$	714.9	$	713.0
Due after one year through five years		1,143.7		1,133.4		733.7		722.0
Due after five years		210.2		207.6		191.8		189.2

Total	$	1,875.9	$	1,860.5	$	1,640.4	$	1,624.2

The average maturity of our marketable securities as of December 31, 2009 and 2008 was 15 months and 13 months, respectively.

Proceeds from Maturities and Sales of Marketable Securities, excluding Strategic Investments

The proceeds from maturities and sales of marketable securities, excluding strategic investments, which were primarily reinvested and resulting realized gains and losses, are summarized as follows:


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Proceeds from maturities and sales	$	3,319.0	$	2,941.1	$	3,154.3
Realized gains	$	19.8	$	15.9	$	4.5
Realized losses	$	4.0	$	17.0	$	4.9

The realized losses for the year ended December 31, 2009 and 2008 primarily relate to losses on the sale of corporate debt securities and non-agency mortgage-backed securities.

Strategic Investments

In 2009 we sold two strategic investments for $5.9 million, which resulted in a $3.0 million gain. In 2008, we did not sell any portion of our strategic investments. In 2007, we sold our share in one strategic investment for $99.5 million, which resulted in a $17.2 million gain. Strategic investments are included in investments and other assets on the accompanying consolidated balance sheets.

In addition to the strategic investments and venture capital investments noted in Note 6, Fair Value Measurements, to our Consolidated Financial Statements, we hold other investments in equity securities of certain privately held biotechnology companies and biotechnology oriented venture capital funds accounted for using the cost method. The cost basis of these securities as of December 31, 2009 and 2008 is $73.9 million and $40.8 million, respectively. These securities are also included in investments and other assets on the accompanying consolidated balance sheets.

Impairments

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, as required by U.S. GAAP. 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 recorded 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 fair value below our cost basis 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 recorded within earnings as an impairment loss.

Recognition and Measurement of Other-than-Temporary Impairment

Prior to the adoption of new accounting standards for the recognition, measurement and presentation of other-than-temporary impairments in April 2009, we recognized all other-than-temporary impairment amounts related to our marketable debt securities in earnings as required under the previously effective guidance which required that management assert that it had the ability and intent to hold a debt security until maturity or until we recovered the cost of our investment.

In 2009, 2008, and 2007, we recognized $3.8 million, $16.3 million, and $17.6 million in charges, respectively, for the impairment of publicly-held strategic investments and for declines in value of funds that were determined to be other-than-temporary.

In 2009, 2008, and 2007, we recorded $3.2 million, $2.3 million, and $0.8 million, respectively, in charges for the impairment for certain investments in privately-held companies and declines in value of funds recorded under the cost method that were determined to be other-than-temporary.

In 2009, we recognized $3.6 million in charges for the other-than-temporary impairment on marketable debt securities. For 2008 and 2007, we recognized $41.7 million and $7.5 million, respectively, in charges for the other-than-temporary impairment of marketable debt securities primarily related to mortgage and asset-backed securities.

Derivative Instruments

12 Months Ended

Dec. 31, 2009

Derivative Instruments [Abstract]

Derivative Instruments


8.	Derivative Instruments

Forward Contracts and Interest Rate Swaps

On January 1, 2009, we adopted a newly issued accounting standard which requires additional disclosure about our objectives for using derivative instruments, the level of derivative activity we engage in, and the effect of derivative instruments and related hedged items on our financial position and performance. The adoption of this standard did not impact our financial position or results of operations.

Our primary market exposure is to foreign exchange rates and interest rates. We use certain derivative instruments to help manage these exposures. We execute these instruments with financial institutions we judge to be creditworthy and the majority of these instruments 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.

Forward Contracts

Due to the global nature of our operations, portions of our revenues are in currencies other than the U.S. dollar. The value of revenue measured in U.S. dollars is subject to changes in foreign exchange rates. In order to mitigate these changes we use forward contracts to lock in foreign exchange rates. We do not engage in currency speculation.

All foreign currency forward contracts in effect as of December 31, 2009 and 2008 had durations of 1 to 12 months. 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.

Foreign currency forward contracts that were entered into to hedge forecasted revenue are summarized as follows:


	Notional Amount
	As of December 31,
Foreign Currency: (In millions)	2009		2008

Euro	$	495.9	$	489.4
Canadian Dollar		22.3		34.1

Total	$	518.2	$	523.5

The portion of the fair value of these contracts that was included in accumulated other comprehensive income (loss) within total equity reflected gains of $1.2 million and losses of $44.1 million as of December 31, 2009 and 2008, 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 December 31, 2009 and 2008, respectively, credit risk did not materially change the fair value of our foreign currency forward contracts.

In relation to our foreign currency forward contracts, we recognize gains and losses in earnings due to hedge ineffectiveness. During the years ended December 31, 2009, 2008 and 2007 we recognized net losses of $1.1 million, $0.2 million, and $2.6 million, respectively. In addition, we recognized $49.7 million, $8.5 million, and $13.1 million, respectively, of losses in product revenue for the settlement of certain effective cash flow hedge instruments for the years ended December 31, 2009, 2008 and 2007, respectively. These settlements were recorded in the same period as the related forecasted revenue.

Interest Rate Swaps

In connection with the issuance of our 6.875% Senior Notes in March 2008, we entered into interest rate swap contracts with an aggregate notional amount of $550.0 million. These contracts were settled in December 2008. Under the settlement we received $53.9 million. As the interest rate swaps were settled in 2008, no hedge ineffectiveness was recognized for the year ended December 31, 2009. In the year ended December 31, 2008, we recognized a net loss of $8.9 million in earnings due to hedge ineffectiveness.

Additionally, upon termination of the swaps in December 2008, the carrying amount of the 6.875% Senior Notes increased $62.8 million. This amount will be recognized as a reduction of interest expense and amortized using the effective interest rate method over the remaining life of the 6.875% Senior Notes. In 2009, approximately $5.4 million was recorded as a reduction of interest expense.

Summary of Derivatives Designated as Hedging Instruments

The following table summarizes the fair value and presentation in the consolidated balance sheets for derivatives designated as hedging instruments:

Foreign Currency Contracts

Asset Derivatives

Liability Derivatives

(In millions)

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

December 31, 2009

Other Current Assets

10.8

Accrued Expenses and Other

9.8

December 31, 2008

Other Current Assets

1.9

Accrued Expenses and Other

46.0

As noted above, the interest rate swap contracts were settled in December 2008.

The following table summarizes the effect of derivatives designated as hedging instruments on the consolidated statements of income:


	Amount					Amount
	Recognized in					Reclassified from
	Accumulated Other					Accumulated Other
	Comprehensive					Comprehensive
	Income					Income				Amount of
	on Derivative			Income Statement		into Income			Income Statement	Gain/(Loss)
	Gain/(Loss)			Location		Gain/(Loss)			Location	Recorded
For the Years Ended (In millions)	(Effective Portion)			(Effective Portion)		(Effective Portion)			(Ineffective Portion)	(Ineffective Portion)

December 31, 2009:
Foreign currency contracts	$	1.2			Revenue	$	(49.7	)	Other income (expense)	$	(1.1	)
December 31, 2008:
Foreign currency contracts	$	(44.1	)		Revenue	$	(8.5	)	Other income (expense)	$	0.2
Interest rate swap	$	—			Interest Expense	$	—		Interest Expense	$	(8.9	)

December 31, 2007:
Foreign currency contracts	$	(6.4	)		Revenue	$	(13.1	)	Other income (expense)	$	(2.6	)

Other Derivatives

In 2009, we entered into several foreign currency forward contracts to mitigate the foreign currency risk related to certain balance sheet items. We have not elected hedge accounting for these items. As of December 31, 2009, the aggregate notional amount of our outstanding foreign currency contracts was $188.0 million. The fair value of these contracts was a net asset of $3.8 million. Net gains of $2.5 million were recognized as a component of other income (expense), net related to these contracts in the year ended December 31, 2009.

Indebteness

12 Months Ended

Dec. 31, 2009

Indebtedness [Abstract]

Indebtedness


9.	Indebtedness

Our indebtedness is summarized as follows:


	As of December 31,
(In millions)	2009		2008

Current portion:
Notes payable to Fumedica	$	11.2	$	10.9
Credit line from Dompé		8.6		16.8

Current portion of notes payable and line of credit	$	19.8	$	27.7

Non-current portion:
6.0% Senior notes due 2013	$	449.6	$	449.6
6.875% Senior notes due 2018		603.2		608.2
Notes payable to Fumedica		18.8		27.6
Credit line from Dompé		8.6		—

Notes payable and line of credit	$	1,080.2	$	1,085.4

The following is a summary description of our principal indebtedness as of December 31, 2009.

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 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 interest rate on the notes if the credit rating on the notes declines below investment grade. Offering costs of approximately $8.0 million have been recorded as debt issuance costs on our consolidated balance sheet and are amortized as additional interest expense using the effective interest rate method over the period from issuance through maturity.

Upon the issuance of the debt we entered into interest rate swap contracts where we received a fixed rate and paid a variable rate, as further described in Note 8, Derivative Instruments to our Consolidated Financial Statements. These contracts have been subsequently terminated. Upon termination of these swaps, the carrying amount of the 6.875% Senior Notes due in 2018 was increased by $62.8 million. This increase is 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.

We used the proceeds of this borrowing, along with cash and the proceeds from the liquidation of marketable securities, to repay the full $1,500.0 million outstanding under the term loan facility we had entered into in July 2007 in connection with the funding of our June 2007 common stock tender offer. This term loan facility expired upon repayment.

Revolving Credit Facility

We have a $360.0 million senior unsecured revolving credit facility, which may be used for future working capital and general corporate purposes. The facility terminates in June 2012. As of December 31, 2009 and 2008, there were no borrowings under this credit facility and we were in compliance with applicable covenants.

Biogen-Dompé

As of December 31, 2009 and 2008, Biogen-Dompé SRL, a consolidated joint venture, has a loan balance of 12.0 million Euros ($17.2 million) and 12.0 million Euros ($16.7 million), respectively. These balances represent a line of credit from us and Dompé Farmaceutici SpA of 24.0 million Euros, half of which has been eliminated for purposes of presenting our consolidated financial position as it is an intercompany loan. Borrowings under this line of credit are to be made equally between the partners, with any repayments paid in a similar manner. The loan was originally due June 1, 2009; however, a new loan was subsequently executed with a maturity date of December 1, 2011. The interest rate on the line of credit under the new agreements is determined at a rate of three month Euro LIBOR plus 150 basis points and was 2.2% as of December 31, 2009. The interest rate is reset quarterly and payable quarterly in arrears.

Notes Payable to Fumedica

As of December 31, 2009 and 2008, the notes payable to Fumedica have a present value of 31.2 million Swiss Francs ($30.0 million) and 41.2 million Swiss Francs ($38.6 million), respectively. The notes, which were entered into in connection with the settlement of various agreements associated with Fumedica, are non-interest bearing, have been discounted for financial statement presentation purposes and are being accreted at a rate of 5.75% and are payable in a series of payments through June 2018.

Debt Maturity

Our total debt matures as follows:


(In millions)	As of December 31, 2009

2010	$	20.1
2011		11.6
2012		3.1
2013		453.1
2014		3.1
2015 and thereafter		562.3

Total	$	1,053.3

The fair value of our debt is disclosed in Note 6, Fair Value Measurements to our Consolidated Financial Statements.

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Dec. 31, 2009
Sahreholders' Equity [Abstract]
Shareholders' Equity	<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 10 - biib:ShareholdersEquityTextBlock--> <div style="margin-left: 0%"> <div style="margin-top: 12pt; font-size: 1pt"> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff; text-align: left"> <tr> <td width="5%"></td> <td width="95%"></td> </tr> <tr valign="top"> <td> <b><font style="font-family: 'Times New Roman', Times">10. </font></b> </td> <td> <b><font style="font-family: 'Times New Roman', Times">Shareholders’ Equity</font></b> </td> </tr> </table> <div style="margin-top: 6pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Preferred Stock</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Preferred stock was comprised of the following: </div> <div style="margin-top: 6pt; font-size: 1pt"> </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="28%"> </td><!-- colindex=01 type=maindata --> <td width="1%"> </td><!-- colindex=02 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=02 type=lead --> <td width="6%" align="right"> </td><!-- colindex=02 type=body --> <td width="1%" align="left"> </td><!-- colindex=02 type=hang1 --> <td width="1%"> </td><!-- colindex=03 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=03 type=lead --> <td width="2%" align="right"> </td><!-- colindex=03 type=body --> <td width="1%" align="left"> </td><!-- colindex=03 type=hang1 --> <td width="1%"> </td><!-- colindex=04 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=04 type=lead --> <td width="7%" align="right"> </td><!-- colindex=04 type=body --> <td width="1%" align="left"> </td><!-- colindex=04 type=hang1 --> <td width="1%"> </td><!-- colindex=05 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=05 type=lead --> <td width="6%" align="right"> </td><!-- colindex=05 type=body --> <td width="1%" align="left"> </td><!-- colindex=05 type=hang1 --> <td width="1%"> </td><!-- colindex=06 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=06 type=lead --> <td width="2%" align="right"> </td><!-- colindex=06 type=body --> <td width="1%" align="left"> </td><!-- colindex=06 type=hang1 --> <td width="1%"> </td><!-- colindex=07 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=07 type=lead --> <td width="7%" align="right"> </td><!-- colindex=07 type=body --> <td width="1%" align="left"> </td><!-- colindex=07 type=hang1 --> <td width="1%"> </td><!-- colindex=08 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=08 type=lead --> <td width="6%" align="right"> </td><!-- colindex=08 type=body --> <td width="1%" align="left"> </td><!-- colindex=08 type=hang1 --> <td width="1%"> </td><!-- colindex=09 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=09 type=lead --> <td width="2%" align="right"> </td><!-- colindex=09 type=body --> <td width="1%" align="left"> </td><!-- colindex=09 type=hang1 --> <td width="1%"> </td><!-- colindex=10 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=10 type=lead --> <td width="7%" align="right"> </td><!-- colindex=10 type=body --> <td width="1%" align="left"> </td><!-- colindex=10 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> </td> <td> </td> <td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>As of December 31, 2009</b> </td> <td> </td> <td> </td> <td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>As of December 31, 2008</b> </td> <td> </td> <td> </td> <td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>As of December 31, 2007</b> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(In thousands)</b> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Authorized</b> </td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Issued</b> </td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Outstanding</b> </td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Authorized</b> </td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Issued</b> </td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Outstanding</b> </td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Authorized</b> </td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Issued</b> </td> <td> </td> <td> </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Outstanding</b> </td> <td> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td> </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -8pt; margin-left: 8pt"> Series A Preferred Stock </div> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,750 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,750 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,750 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -8pt; margin-left: 8pt"> Series X Junior Participating Preferred Stock </div> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -8pt; margin-left: 8pt"> Undesignated </div> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 5,250 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 5,250 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 5,250 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> — </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td style="border-top: 1px solid #000000"> </td> <td style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td> </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td style="border-top: 3px double #000000"> </td> <td style="border-top: 3px double #000000"> </td> <td> </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> We have 8,000,000 shares of Preferred Stock authorized, of which 1,750,000 shares have been designated as Series A Preferred Stock and 1,000,000 shares have been designated as Series X Junior Participating Preferred Stock. The balance 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 stock certificate. 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. As of December 31, 2009, 2008 and 2007, there were 8,221 shares of Series A Preferred Stock issued and outstanding. These shares carry a liquidation preference of $67 and are convertible into 60 shares of common stock per share of Preferred Stock. No other shares of Preferred Stock are issued and outstanding as of December 31, 2009, 2008 and 2007. </div> <div style="margin-top: 9pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Stockholder Rights Plan</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In January 2009, our Board of Directors voted to terminate our stockholders rights plan effective as of January 30, 2009. The plan was scheduled to expire on July 26, 2011 and was originally adopted by the Board of Directors in 1997. Under the rights plan, each share of our common stock had one “right” attached to it that entitled the holder to purchase our Series X Junior Participating Preferred Stock under the circumstances specified in the rights plan. As a result of our Board of Director’s action, no rights are outstanding or exercisable. </div> <div style="margin-top: 8pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Stock Repurchase Programs</font></i></b> </div> <div style="margin-top: 4pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In October 2009, our Board of Directors authorized the repurchase of up to $1.0 billion of our common stock with repurchased shares being retired. This repurchase program does not have an expiration date. As of December 31, 2009, approximately 8.8 million shares at a cost of $422.4 million were repurchased under this authorization, all of which were retired. From January 1, 2010 through February 5, 2010, we repurchased approximately an additional 5.4 million shares under this program at a total cost of approximately $289.4 million, all of which were also retired. Approximately $288.2 million remains available for the repurchase of our common stock under the 2009 program. </div> <div style="margin-top: 4pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In October 2006, our Board of Directors authorized the repurchase of up to 20.0 million shares of our common stock. As of December 31, 2009, all shares under this program have been repurchased as approximately 7.2 million shares of our common stock were repurchased in 2009 for approximately $328.8 million. In 2008, approximately 12.8 million shares of our common stock were repurchased under this program for approximately $738.9 million. </div> <div style="margin-top: 6pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Reclassifications</font></i></b> </div> <div style="margin-top: 4pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The adoption of a newly issued accounting standard for noncontrolling interests on January 1, 2009, changed the accounting and reporting for our minority interests by recharacterizing them as noncontrolling interests and classifying them as a separate component of total shareholders’ equity in our accompanying consolidated balance sheets and consolidated statements of shareholders’ equity. Additionally, net income attributable to noncontrolling interest is now shown separately from net income in the consolidated statements of income. As a result, prior year amounts related to noncontrolling interest have been reclassified to conform to the current year presentation. This reclassification had no effect on our previously reported financial position or results of operations. </div> <div style="margin-top: 4pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In the year ended December 31, 2008, we reclassified amounts within our consolidated statement of shareholders’ equity, resulting in an approximately $78.6 million correction in Additional Paid-in Capital and Retained Earnings (Accumulated Deficit) balances in connection with the re-issuance of treasury stock at a loss. </div> <div style="margin-top: 4pt; font-size: 1pt"> </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In the year ended December 31, 2007 we reclassified amounts within our consolidated statements of equity, resulting in an approximately $48.0 million correction in the treasury stock and common stock balances. </div> </div>

Earnings per Share

12 Months Ended

Dec. 31, 2009

Earnings per Share [Abstract]

Earnings per Share


11.	Earnings per Share

Basic and diluted earnings per share are calculated as follows:


	For the Years Ended December 31,
(In millions)	2009			2008			2007

Numerator:
Net income attributable to Biogen Idec Inc.	$	970.1		$	783.2		$	638.2
Adjustment for net income allocable to preferred shares		(1.7	)		(1.3	)		(1.0	)

Net income used in calculating basic and diluted earnings per share	$	968.4		$	781.9		$	637.2

Denominator:
Weighted average number of common shares outstanding		287.4			292.3			315.8
Effect of dilutive securities:
Stock options and employee stock purchase plan		0.6			1.3			2.6
Restricted stock awards		—			0.1			0.5
Time-vested restricted stock units		1.4			1.3			1.1
Performance-vested restricted stock units		0.1			—			—
Convertible promissory notes due 2019		—			—			0.2
Convertible promissory notes due 2032		—			—			—

Dilutive potential common shares		2.1			2.7			4.4

Shares used in calculating diluted earnings per share		289.5			295.0			320.2

The following amounts were not included in the calculation of net income per basic and diluted share because their effects were anti-dilutive:


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Numerator:
Net income allocable to preferred stock	$	1.7	$	1.3	$	1.0

Denominator:
Stock options		8.5		6.9		8.2
Time-vested restricted stock units		2.1		1.5		0.1
Performance-vested restricted stock units		0.2		—		—
Convertible preferred stock		0.5		0.5		0.5

Total		11.3		8.9		8.8

Earnings per share for the year ended December 31, 2009 reflects, on a weighted average basis, the repurchase of 16.0 million shares of our common stock under our 2009 and 2006 share repurchase programs.

As a result of our 2007 tender offer, earnings per share for the year ended December 31, 2007 reflects, on a weighted average basis, the repurchase of 56.4 million shares as of June 27, 2007, the date the obligation was incurred, in accordance with accounting standards for earning per share.

Share-based Payments

12 Months Ended

Dec. 31, 2009

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 Years Ended December 31,
(In millions)	2009			2008			2007

Research and development	$	60.8		$	59.9		$	51.7
Selling, general and administrative		106.4			93.8			76.1

Subtotal	$	167.2		$	153.7		$	127.8
Capitalized share-based compensation costs		(6.3	)		(7.5	)		(4.7	)

Share-based compensation expense included in total costs and expenses	$	160.9		$	146.2		$	123.1
Income tax effect		(49.4	)		(45.4	)		(37.5	)

Share-based compensation expense included in net income attributable to Biogen Idec Inc.	$	111.5		$	100.8		$	85.6

Our share-based compensation programs include stock options, time-vested restricted stock units, performance-vested restricted stock units, restricted stock and shares issued under our ESPP. The following table summarizes share-based compensation expense associated with each of these programs:


	For the Years Ended December 31,
(In millions)	2009			2008			2007

Stock options	$	21.6		$	20.0		$	30.7
Time-vested restricted stock units		133.7			125.6			75.2
Performance-vested restricted stock units		4.6			1.1			5.0
Restricted stock awards		—			0.5			11.7
Employee stock purchase plan		7.3			6.5			5.2

Subtotal	$	167.2		$	153.7		$	127.8
Capitalized share-based compensation costs		(6.3	)		(7.5	)		(4.7	)

Share-based compensation expense included in total costs and expenses	$	160.9		$	146.2		$	123.1

Windfall tax benefits from vesting of stock awards, exercises of stock options and ESPP participation were $3.4 million, $28.0 million, and $69.7 million in 2009, 2008, and 2007, respectively. These amounts have been calculated under the alternative transition method in accordance with U.S. GAAP.

As of December 31, 2009, unrecognized compensation cost related to unvested share-based compensation was approximately $178.1 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 six share-based compensation plans pursuant to which outstanding awards have been made, 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, Inc. 1987 Scientific Board Stock Option Plan; (v) the Biogen Idec Inc. 2003 Omnibus Equity Plan (2003 Omnibus Plan); and (vi) 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 options, shares of restricted stock awards, 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 850,000 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 options, shares of restricted stock awards, 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

All stock option grants to employees are for a ten-year term and generally vest one-fourth per year over four years on the anniversary of the date of grant, provided the employee remains continuously employed with us. Stock option grants to directors are for ten-year terms and generally vest as follows: (1) grants made on the date of a director’s initial election to our Board of Directors vest one-third per year over three years on the anniversary of the date of grant, and (2) grants made 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. 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 option grants awarded in 2009, 2008, and 2007 was estimated as of the date of grant using a Black-Scholes option valuation model that uses the following weighted-average assumptions:


	For the Years Ended December 31,
	2009			2008			2007

Expected option life (in years)		4.7			5.1			4.9
Expected stock price volatility		39.3	%		34.4	%		33.6	%
Risk-free interest rate		1.9	%		2.4	%		4.4	%
Expected dividend yield		0.0	%		0.0	%		0.0	%
Per share grant-date fair value	$	18.00		$	20.85		$	18.78

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.

A summary of stock option activity is presented in the following table:


				Weighted
				Average
				Exercise
(In thousands, except weighted average exercise price)	Shares			Price

Outstanding at December 31, 2006		25,106		$	47.96

Granted		1,470		$	51.23
Exercised		(10,524	)	$	44.84
Cancelled		(1,152	)	$	53.97

Outstanding at December 31, 2007		14,900		$	50.03

Granted		1,475		$	60.23
Exercised		(3,769	)	$	41.99
Cancelled		(506	)	$	55.70

Outstanding at December 31, 2008		12,100		$	53.53

Granted		1,031		$	49.96
Exercised		(637	)	$	40.16
Cancelled		(1,664	)	$	60.74

Outstanding at December 31, 2009		10,830		$	52.88

Of the options outstanding, 8.3 million were exercisable as of December 31, 2009. The exercisable options had a weighted-average exercise price of $52.80. The aggregate intrinsic value of options exercisable as of December 31, 2009 was $45.2 million. The weighted average remaining contractual term for options exercisable as of December 31, 2009 was 3.8 years.

A total of 10.3 million vested and expected to vest options were outstanding as of December 31, 2009. These vested and expected to vest options had a weighted average exercise price of $52.87 and an aggregated intrinsic value of $51.0 million. The weighted average remaining contractual term of vested and expected to vest options as of December 31, 2009 was 4.6 years.

The total intrinsic values of options exercised in 2009, 2008, and 2007, were $6.7 million, $85.1 million, and $226.7 million, respectively. The aggregate intrinsic values of options outstanding as of December 31, 2009 was $52.8 million. The weighted average remaining contractual term for options outstanding as of December 31, 2009 was 4.8 years.

A summary of the amount of tax benefit realized for stock options and cash received from the exercise of stock options is as follows:


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Tax benefit realized for stock options	$	1.5	$	28.0	$	72.4
Cash received from the exercise of stock options	$	25.2	$	158.3	$	471.0

Time-Vested Restricted Stock Units

Time-vested restricted stock units (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.

A summary of RSU activity is presented in the following table:


				Weighted
				Average
				Grant Date
(In thousands, except weighted average grant date fair value)	Shares			Fair Value

Unvested at December 31, 2006		2,508		$	44.48

Granted		3,387		$	51.19
Vested		(845	)	$	44.58
Forfeited		(458	)	$	47.38

Unvested at December 31, 2007		4,592		$	49.12

Granted		3,129		$	58.42
Vested		(1,645	)	$	47.93
Forfeited		(499	)	$	53.95

Unvested at December 31, 2008		5,577		$	54.26

Granted		2,674		$	48.93
Vested		(2,421	)	$	52.08
Forfeited		(445	)	$	53.02

Unvested at December 31, 2009		5,385		$	52.72

Performance-Vested Restricted Stock Units

A summary of performance-vested restricted stock units (PVRSUs) activity is presented in the following table:


				Weighted
				Average
				Grant Date
(In thousands, except weighted average grant date fair value)	Shares			Fair Value

Unvested at December 31, 2006		411		$	41.62

Granted		120		$	51.55
Vested		(357	)	$	41.76
Forfeited		(54	)	$	40.67

Unvested at December 31, 2007		120		$	51.55

Granted		—		$	—
Vested		(27	)	$	49.33
Forfeited		(3	)	$	49.33

Unvested at December 31, 2008		90		$	52.29

Granted		325		$	49.42
Vested		(30	)	$	52.29
Forfeited		(97	)	$	51.30

Unvested at December 31, 2009		288		$	49.39

2009 Grant Activity

We apply a graded vesting expense methodology when accounting for the PVRSUs issued in 2009. In 2009, approximately 325,000 PVRSUs were granted with a weighted average grant date fair value of $49.42 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.

2007 Grant Activity

In 2007, our Board of Directors awarded a total of 120,000 PVRSUs to Dr. Cecil Pickett, our former President, Research and Development. Vesting of these PVRSUs was subject to certain performance criteria established at the beginning of each of four performance periods, beginning January 1 on each of 2007, 2008, 2009 and 2010, and Dr. Pickett’s continued employment through the end of the respective performance periods. In February 2008, a total of 27,000 shares were issued based upon the attainment of performance criteria set for 2007. An additional 30,000 shares were issued in February 2009 based on the attainment of performance criteria set for 2008. No additional shares were issued to Dr. Pickett in 2009, 2008 and 2007. Dr. Pickett retired from the position of President, Research and Development effective October 5, 2009. Accordingly, no additional PVRSUs awarded to Dr. Pickett will vest or be issued. Expense previously recognized in relation to unvested awards was reversed in 2009.

Prior Period Grant Activity

In the first quarter of 2006, our Board of Directors awarded 100,000 PVRSUs to our CEO, under the 2005 Omnibus Plan, subject to certain 2006 financial performance criteria. In February 2007, our Board of Directors determined that the performance criteria had been attained and that 100,000 PVRSUs would convert into shares of our common stock. A total of 58,250 shares were issued, reflecting the fact that certain shares were withheld for income tax purposes.

In the third quarter of 2005, we granted 1.2 million PVRSUs, to be settled in shares of our common stock, to a group of approximately 200 senior employees excluding our CEO. On September 14, 2006, 758,262 shares vested for which 510,859 shares were issued, reflecting the fact that certain shares were withheld for income tax purposes. On March 14, 2007, 258,387 shares vested based on the level of performance versus the pre-established goals, for which a total of 172,054 shares were issued, reflecting the fact that certain shares were withheld for income tax purposes. No other shares vested in relation to this 2005 grant.

Restricted Stock Awards

In 2005, we awarded restricted common stock to our employees under the 2005 Omnibus Plan and the 2003 Omnibus Plan. The restricted stock awards (RSAs) granted under the 2003 Omnibus Plan vested in full on the third anniversary of the date of grant for employees that remained continuously employed with us through the vesting dates. The RSAs granted under the 2005 Omnibus Plan vested at a rate of approximately one-third per year over three years on the anniversary of the date of grant for employees that remained continuously employed with us through the vesting dates.

The fair value of all time-vested RSAs 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. All awards of restricted stock were fully vested as of December 31, 2008.

A summary of RSA activity is presented in the following table:


				Weighted
				Average
				Grant Date
(In thousands, except weighted average grant date fair value)	Shares			Fair Value

Unvested at December 31, 2006		1,247		$	53.64

Granted		—		$	—
Vested		(713	)	$	44.10
Forfeited		(79	)	$	59.64

Unvested at December 31, 2007		455		$	67.54

Granted		—		$	—
Vested		(454	)	$	67.54

Forfeited		(1	)	$	67.57

Unvested at December 31, 2008		—		$	—

ESPP

The purchase price of common stock under the ESPP is equal to 85% of the lower of (1) the market value per share of the common stock on the participant’s entry date into an offering period or (2) the market value per share of the common stock on the purchase date. However, for each participant whose entry date is other than the start date of the offering period, the amount shall in no event be less than the market value per share of the common stock as of the beginning of the related offering period. The fair value of the discounted purchases made under the employee stock purchase plan are 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 purchase period. We apply a graded vesting approach since our ESPP provides for multiple purchase periods and is, in substance, a series of linked awards.

The table below provides a summary of shares issued under our ESPP for 2009, 2008 and 2007, respectively:


	For The Years Ended December 31,
(In millions)	2009		2008		2007

Shares issued under ESPP		0.6		0.5		0.5
Cash received under ESPP	$	22.6	$	21.3	$	18.2

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2009

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)


13.	Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consisted of the following:


	As of December 31,
(In millions)	2009		2008

Translation adjustments	$	35.6	$	17.0
Unrealized gains on securites available for sale		11.3		10.5
Unrealized gains (losses) on foreign currency forward contracts		1.5		(40.2	)
Unfunded status of pension and postretirement benefit plans		2.1		1.6

Accumulated other comprehensive income (loss)	$	50.5	$	(11.1	)

Unrealized holding gains on securities available for sale is shown net of tax of $(6.6) million and $(6.2) million as of December 31, 2009 and 2008, respectively. Unrealized gains (losses) on foreign currency forward contracts is shown net of tax of $0.3 million, and $3.9 million as of December 31, 2009 and 2008, respectively. The unfunded status of pension and retirement benefit plans is shown net of tax as of December 31, 2009 and 2008. Tax amounts in both years were immaterial. See Note 15, Employee Benefit Plans to our Consolidated Financial Statements for discussion of unfunded status of pension and retirement benefit plans.

Amounts comprising noncontrolling interests, as reported in our consolidated statements of equity as of December 31, 2009 and 2008 included accumulated translation adjustments of $2.4 million and $1.2 million, respectively.

Comprehensive income (loss) and its components are presented in the consolidated statements of shareholders’ equity.

Other Consolidated Financial Statement Detail

12 Months Ended

Dec. 31, 2009

Other Consolidated Financial Statement Detail [Abstract]

Other Consolidated Financial Statement Detail


14.	Other Consolidated Financial Statement Detail

Other Income (Expense), Net

Components of other income (expense), net, are summarized as follows:


	For the Years Ended December 31,
(In millions)	2009			2008			2007

Interest income	$	48.5		$	72.1		$	103.6
Interest expense		(35.8	)		(52.0	)		(40.5	)
Impairment on investments		(10.6	)		(60.3	)		(24.4	)
Gain (loss) on sales of investments, net		22.8			(1.1	)		16.7
Foreign exchange gains (losses), net		11.4			(9.8	)		3.0
Gain on the sale of property		—			—			7.1
Other, net		1.0			(6.6	)		6.9

Other income (expense), net	$	37.3		$	(57.7	)	$	72.4

Interest Expense

In 2009, we incurred interest costs of $69.7 million. This amount was reduced by $28.5 million because we capitalized interest related to the construction of our large scale manufacturing facility in Hillerød, Denmark. In addition, in 2009, approximately $5.4 million was recorded as a reduction due to the amortization of the deferred gain associated with the termination of an interest rate swap in December 2008.

In 2008, we incurred interest costs of $66.3 million. This amount was reduced by $23.2 million of capitalized interest on the manufacturing facility in Hillerød, Denmark. In addition, we incurred approximately $8.9 million of expenses related to hedge ineffectiveness on interest rate swaps executed in March 2008.

In 2007, we incurred interest costs of $50.6 million, which were reduced by $10.1 million of capitalized interest on the manufacturing facility in Hillerød, Denmark.

Impairment on Investments

In April 2009, we implemented newly issued accounting standards which provided guidance for recognition and presentation of other-than-temporary impairments. The adoption of the guidance did not have a material impact on our financial position or results of operations; however, this standard amended the other-than-temporary impairment model for marketable debt securities. The impairment model for equity securities was not affected. Refer to Note 7, Financial Instruments to our Consolidated Financial Statements for additional information on the adoption of this guidance.

In 2009, we recognized impairment losses of $7.0 million on our strategic investments and non-marketable securities. In addition, during 2008 and 2007, we recognized $18.6 million and $18.4 million, respectively, in charges for the impairment of strategic investments and non-marketable securities that were determined to be other-than-temporary.

Reclassification

The adoption of a new issued accounting standard for noncontrolling interests on January 1, 2009, changed the accounting and reporting for our minority interests by recharacterizing them as noncontrolling interest. Prior year amounts related to noncontrolling interest, historically reflected as a component of other income (expense), net, have been reclassified to conform to current year presentation. Amounts previously reported as minority interest are now shown separately from net income in the accompanying consolidated statements of income and total $6.9 million, $6.9 million, and $(58.4) million for the years ended December 31, 2009, 2008 and 2007, respectively. This reclassification had no effect on our previously reported financial position or results of operations. Refer to Note 10, Shareholders’ Equity to our Consolidated Financial Statements for additional information on the adoption of this guidance.

Other Current Assets

Other current assets consist of the following:


	As of December 31,
(In millions)	2009		2008

Deferred tax assets	$	88.8	$	70.8
Receivable from collaborations		5.3		1.7
Prepaid expenses		52.6		46.4
Interest receivable		10.6		11.8
Other		20.6		8.7

Other current assets	$	177.9	$	139.4

Property, Plant and Equipment, net

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)	2009			2008

Land	$	111.2		$	108.8
Buildings		669.7			676.1
Leasehold improvements		73.1			80.1
Furniture and fixtures		50.7			48.1
Machinery and equipment		868.2			798.5
Construction in progress		506.7			420.2

Total cost	$	2,279.6		$	2,131.8

Less: accumulated depreciation		(642.5	)		(537.0	)

Property, plant and equipment, net	$	1,637.1		$	1,594.8

In 2009, 2008, and 2007, we capitalized to construction in progress approximately $28.4 million, $23.2 million and $10.1 million, respectively, of interest costs primarily related to the development of our large-scale biologic manufacturing facility in Hillerød, Denmark.

As of December 31, 2009 and 2008, the construction in progress balance related to the construction of our large-scale biologic manufacturing facility in Hillerød, Denmark totaled $441.2 million and $388.4 million, respectively.

Depreciation expense is summarized as follows:


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Depreciation expense	$	137.9	$	129.1	$	122.6

Accrued Expenses and Other

Accrued expenses and other consists of the following:


	As of December 31,
(In millions)	2009		2008

Employee compensation and benefits	$	123.7	$	156.0
Royalties and licensing fees		41.8		40.6
Collaboration expenses		35.7		29.6
Clinical development expenses		43.2		41.5
Revenue-related rebates		52.0		37.7
Construction in progress accrual		12.8		18.6
Other		191.6		210.9

Accrued expenses and other	$	500.8	$	534.9

Gain on Sale of Property, Plant and Equipment, net

In 2008, as part of the lease agreement described in Note 18, Commitments and Contingencies to our Consolidated Financial Statements, we sold the development rights on a parcel of land in Cambridge, MA for $11.4 million in a non-monetary transaction and we recorded a pre-tax gain of approximately $9.2 million on the sale.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2009

Employee Benefit Plans [Abstract]

Employee Benefit Plans


15.	Employee Benefit Plans

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. Beginning in January 2008, all past and current matching contributions will vest immediately. Previously, the matching contributions vested over four years of service by the employee. 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.


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Expense related to our 401(k) Savings Plan	$	27.9	$	22.8	$	20.2

Deferred Compensation Plan

We maintain a non-qualified deferred compensation plan, known as the Supplemental Savings Plan (SSP), that 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, 2009 and 2008 totaled approximately $63.6 million and $48.5 million, respectively, and are included in other long-term liabilities in 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. Beginning in 2008, the Restoration Match vests immediately. Previously, the Restoration Match and transition contributions vested over four and seven years of service, respectively, by the employee. 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

We currently maintain retiree benefit plans which include, a defined benefit plan for employees in our German affiliate and other insignificant defined benefit plans in certain other countries in which we have an operating presence.

The obligations under the German plan totaled $5.7 million and $4.8 million as of December 31, 2009 and 2008, respectively.


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Net periodic pension cost related to the German plan	$	1.1	$	1.0	$	1.3

Income Taxes

12 Months Ended

Dec. 31, 2009

Income Taxes [Abstract]

Income Taxes


16.	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)	2009			2008			2007

Income before income taxes (benefit):
Domestic	$	1,073.8		$	829.2		$	664.9
Foreign		258.9			326.7			187.3

Total	$	1,332.7		$	1,155.9		$	852.2

Income tax expense (benefit):
Current
Federal	$	439.9		$	431.2		$	305.9
State		3.1			24.3			25.8
Foreign		50.0			49.8			22.3

Total	$	493.0		$	505.3		$	354.0

Deferred
Federal	$	(94.8	)	$	(119.2	)	$	(76.7	)
State		(39.0	)		(20.0	)		(4.4	)
Foreign		(3.6	)		(0.3	)		(0.5	)

Total	$	(137.4	)	$	(139.5	)	$	(81.6	)


Total income tax expense	$	355.6		$	365.8		$	272.4

Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities are summarized as follows:


	As of December 31,
(In millions)	2009			2008

Tax credits	$	35.2		$	11.0
Inventory, deferred revenue and other reserves		166.4			90.4
Capitalized costs		8.7			36.6
Intangibles, net		83.2			89.6
Net operating loss		30.5			33.1
Share-based compensation		60.8			59.9
Other		60.6			57.9

Deferred tax assets	$	445.4		$	378.5

Purchased intangible assets	$	(475.4	)	$	(552.7	)
Unrealized gain on investments and cumulative translation adjustment		(6.3	)		(2.3	)
Depreciation, amortization and other		(115.6	)		(108.7	)

Deferred tax liabilities	$	(597.3	)	$	(663.7	)

Tax Rate

Reconciliation between the U.S. federal statutory tax rate and our effective tax rate is summarized as follows:


	For the Years Ended December 31,
(In percentages)	2009			2008			2007

Statutory rate		35.0	%		35.0	%		35.0	%
State taxes		(0.1	)		1.6			3.2
Taxes on foreign earnings		(5.0	)		(5.8	)		(8.1	)
Credits and net operating loss utilization		(3.8	)		(2.9	)		(3.3	)
Purchased intangible assets		2.0			3.7			3.7
IPR&D		—			0.8			0.8
Permanent items		(1.3	)		(0.9	)		(0.6	)
Other		(0.1	)		0.1			1.3

Effective tax rate		26.7	%		31.6	%		32.0	%

As of December 31, 2009, we had net operating losses and general business credit carry forwards for federal income tax purposes of approximately $59.3 million and $3.2 million, respectively, which begin to expire in 2020. Additionally, for state income tax purposes, we had net operating loss carry forwards of approximately $195.8 million, which begin to expire in 2010. For state income tax purposes, we also had research and investment credit carry forwards of approximately $49.2 million, of which approximately $46.9 million begin to expire in 2010, with the remainder having no prescribed expiration date.

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 our entire deferred tax assets. 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, 2009, undistributed foreign earnings of non-U.S. subsidiaries included in consolidated retained earnings aggregated approximately $2.2 billion. We intend to reinvest these earnings indefinitely in operations outside the U.S. It is not practicable to estimate the amount of additional tax that might be payable if such earnings were remitted to the U.S.

Accounting for Uncertainty in Income Taxes

Effective January 1, 2007, we adopted a new accounting standard concerning the accounting for income tax contingencies. This standard clarified the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. As a result of the adoption, we recognized a reduction in the liability for unrecognized tax benefits of $14.2 million, which was recorded as a $1.8 million reduction to the January 1, 2007 balance of our accumulated deficit, a $9.1 million reduction in goodwill and a $3.3 million increase in our deferred tax liability.

A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows:


(In millions)	2009			2008			2007

Balance at January 1	$	249.6		$	221.1		$	196.8
Additions based on tax positions related to the current period		14.4			21.8			29.7
Additions for tax positions of prior periods		77.4			20.4			83.5
Reductions for tax positions of prior periods		(88.7	)		(13.7	)		(70.2	)
Settlements		(105.6	)		—			(18.7	)

Balance at December 31	$	147.1		$	249.6		$	221.1

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.

Included in the balance of unrecognized tax benefits as of December 31, 2009, 2008, and 2007 are $42.8 million, $155.1 million, and $110.5 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 do not anticipate any 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.

We recognize potential interest and penalties accrued related to unrecognized tax benefits in income tax expense. During 2009 we recognized a net interest benefit of approximately $3.1 million. During 2008 and 2007, we recognized approximately $16.1 million and $14.5 million in interest expense, respectively. We have accrued approximately $33.1 million and $47.7 million for the payment of interest as of December 31, 2009 and 2008, respectively.

Contingency

In September 2006, the Massachusetts Department of Revenue (DOR) issued a Notice of Assessment against Biogen Idec MA, Inc. for $38.9 million 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 our research and development credits, and the availability of certain deductions were not appropriate, resulting in unpaid taxes for those years. In December 2006, we filed an abatement application with the DOR seeking abatements for 2001-2003, which was denied. In July 2007, we filed a petition with the Massachusetts Appellate Tax Board seeking abatements of corporate excise tax for 2001-2003 and adjustments in certain credits and credit carryforwards for 2001-2003. We anticipate that the trial will take place in 2010. In the fourth quarter of 2009, the DOR completed its audit fieldwork of our 2004, 2005 and 2006 tax filings. We believe that the DOR may make an assessment for taxes, interest and penalties claiming that our computation and deductions for these periods were also inappropriate. We believe that positions taken in our tax filings are valid and we have meritorious defenses to the assessment. We will vigorously oppose the assessment through the appeals and litigation process.

Our tax filings for 2007 and 2008 have not yet been audited by the DOR but have been prepared in a manner consistent with prior filings which may result in an assessment for those years. Due to tax law changes effective January 1, 2009, the computations and deductions at issue in previous tax filings will not be part of our tax filings starting in 2009.

There is a possibility that we may not prevail in defending all of our assertions with the DOR. If these matters are resolved unfavorably in the future, the resolution could have a material adverse impact on our future effective tax rate and our results of operations.

Settlements

During 2007, the IRS completed its examination of our consolidated federal income tax returns for our fiscal years 2003 and 2004. We subsequently paid amounts related to issues agreed to with the IRS, appealed several other issues and adjusted our income tax contingencies based on the result of the examination.

During 2009, the IRS completed its examination of our consolidated income tax returns for our fiscal years 2005 and 2006. We then reached an agreement to pay an amount to settle all matters related to the 2005 and 2006 years and resolve those matters under appeal related to 2003 and 2004. There are no remaining U.S. federal income tax contingencies for the periods prior to tax year 2007.

During 2009, the California Franchise Tax Board completed its examination of our worldwide income tax returns for fiscal years 2003 through 2007 and issued assessments for each period. We agreed to these assessments and will make payments to settle all matters related to these audits. There are no remaining California income tax contingencies related to the periods prior to tax year 2008.

We have also reached agreement with Arizona concerning our outstanding matters in that state and completed an audit of our transfer pricing in Denmark.

As a result of these 2009 domestic settlements, and completion of the related audits, we have made payments totaling approximately $118.0 million during 2009 and will make payments of approximately $105.0 million in the first half of 2010, which have been accrued as of December 31, 2009. We have also reduced our net unrecognized tax benefits by approximately $123.5 million, of which approximately $28.0 million was recorded as a benefit in our consolidated statement of income in 2009.

Collaborations

12 Months Ended

Dec. 31, 2009

Collaborations [Abstract]

Collaborations


17.	Collaborations

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.

Effective January 1, 2009, we adopted a newly issued accounting standard for the accounting and disclosure of an entity’s collaborative arrangements. This newly issued standard prescribes that certain transactions between collaborators be recorded in the income statement on either a gross or net basis, depending on the characteristics of the collaboration relationship, and provides for enhanced disclosure of collaborative relationships. In accordance with this guidance, we must also evaluate our collaborative agreements for proper income statement classification based on the nature of the underlying activity. Amounts due from our collaborative partners related to development activities are generally reflected as a reduction of research and development expense because the performance of contract development services is not central to our operations. For collaborations with commercialized products, if we are the principal (as defined in reporting revenue as a principal versus net as an agent as required by the Revenue Recognition Topic of the Codification) 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. The guidance describes the principal as the party who is responsible for delivering the product or service to the customer, has latitude to determine price, and has the risks and rewards of providing product or service to the customer, including inventory and credit risk. The adoption of this newly issued accounting standard did not impact our financial position or results of operations; however it resulted in enhanced disclosures for our collaboration activities.

Roche Group — Genentech

We collaborate with the Roche Group, through its wholly-owned member Genentech, Inc., on the development and commercialization of RITUXAN. We also have rights to collaborate with Genentech on the development and commercialization of (1) anti-CD20 products that Genentech acquires or develops, which we refer to as New Anti-CD20 Products, and (2) anti-CD20 products that Genentech licenses from a third party, which we refer to as Third Party Anti-CD20 Products. Currently, there is only one New Anti-CD20 Product, ocrelizumab, and only one Third Party Anti-CD20 Product, GA101. Our collaboration rights for New Anti-CD20 Products are limited to the U.S. and our collaboration rights for Third Party Anti-CD20 Products are dependent upon Genentech’s underlying license rights. A joint development committee (JDC) composed of three members from each company must unanimously approve a development plan for each specific indication of certain pharmaceutical products, and Genentech has responsibility for implementing JDC approved development plans in accordance with the provisions of our collaboration agreement. In the event that 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 to RITUXAN on the same terms as its offer. If Genentech presents such an offer, then they will be deemed concurrently to have exercised a right, in exchange for a royalty on net sales in the U.S. of any anti-CD20 product acquired or developed by Genentech or any anti-CD20 product that Genentech licenses from a third party that is developed under the agreement, to purchase our interest in each such product. Our collaboration with Genentech was created through a contractual arrangement and not through a joint venture or other legal entity.

While 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 and New Anti-CD20 Products in the U.S. Although we contribute to the marketing and continued development of RITUXAN, we have a limited sales force dedicated to RITUXAN and limited development activity. Genentech is primarily responsible for the commercialization of RITUXAN in the U.S. Its responsibilities include selling and marketing, customer service, order entry, distribution, shipping and billing, and other administrative support. Genentech also incurs the majority of continuing development costs for RITUXAN.

Canada

We and Genentech have assigned our rights to develop, commercialize and market RITUXAN, in 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.

Revenues from unconsolidated joint business consists of (1) our share of pretax co-promotion profits in the U.S. (2) reimbursement of our selling and development expenses in the U.S.; and (3) revenue on sales of RITUXAN in the rest of world, which consist of our share of pretax co-promotion profits in Canada and royalty revenue on sales of RITUXAN outside the U.S. and Canada by 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 expenses, 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.

Revenues from unconsolidated joint business consist of the following:


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Biogen Idec’s share of co-promotion profits in the U.S.	$	773.6	$	733.5	$	616.8
Reimbursement of selling and development expenses in the U.S.		65.6		59.7		58.5
Revenue on sales of RITUXAN in the rest of world		255.7		335.0		250.8

Total unconsolidated joint business revenues	$	1,094.9	$	1,128.2	$	926.1

Under the collaboration agreement, our current pretax co-promotion profit-sharing formula, which resets annually, provides for a 30% share of co-promotion profits on the first $50.0 million of co-promotion operating profit with our share increasing to 40% if co-promotion operating profits exceed $50.0 million. In 2009, 2008, and 2007, the 40% threshold was met during the first quarter.

Our agreement with Genentech provides that the successful development and commercialization of the first New Anti-CD20 Product will decrease our percentage of co-promotion profits of the collaboration. Specifically, for each calendar year or portion thereof following the approval date of the first New Anti-CD20 Product, the pretax co-promotion profit-sharing formula for RITUXAN and New Anti-CD20 Products sold by us and Genentech will change as follows:


	First New Anti-CD20 Product	Biogen Idec’s Share
Co-promotion Operating Profits	U.S. Gross Product Sales	of Co-promotion Profits

First $50 million(1)	Not Applicable		30	%
Greater than $50 million	Until such sales exceed $150 million in any calendar year(2)		38	%
	Or
	After such sales exceed $150 million in any calendar year until such sales exceed $350 million in any calendar year(3)		35	%
	Or
	After such sales exceed $350 million in any calendar year(4)		30	%


(1)		Not applicable in the calendar year the first New Anti-CD20 Product is approved if $50 million in co-promotion operating profits has already been achieved in such calendar year through sales of RITUXAN.

(2)		If we are recording our share of RITUXAN co-promotion profits at 40%, upon the approval date of the first New Anti-CD20 Product, our share of co-promotion profits for RITUXAN and the New Anti-CD20 Product will be immediately reduced to 38% following the approval date of the first New Anti-CD20 Product until the $150 million in first New Anti-CD20 Product sales level is achieved.

(3)		If $150 million in first New Anti-CD20 Product sales is achieved in the same calendar year the first New Anti-CD20 Product receives approval, then the 35% co-promotion profit-sharing rate will not be effective until January 1 of the following calendar year. Once the $150 million in first New Anti-CD20 Product sales level is achieved then our share of co-promotion profits for the balance of the year and all subsequent years (after the first $50 million in co-promotion operating profits in such years) will be 35% until the $350 million in first New Anti-CD20 Product sales level is achieved.

(4)		If $350 million in first New Anti-CD20 Product sales is achieved in the same calendar year that $150 million in new product sales is achieved, then the 30% co-promotion profit-sharing rate will not be effective until January 1 of the following calendar year (or January 1 of the second following calendar year if the first New Anti-CD20 Product receives approval and, in the same calendar year, the $150 million and $350 million in first New Anti-CD20 Product sales levels are achieved). Once the $350 million in first New Anti-CD20 Product sales level is achieved then our share of co-promotion profits for the balance of the year and all subsequent years will be 30%.

We will participate in Third Party Anti-CD20 Products on similar financial terms as for ocrelizumab.

Currently, we record our share of the expenses incurred by the collaboration for the development of New Anti-CD20 Products and Third Party Anti-CD20 Products in research and development expense in our consolidated statements of income. We incurred $62.5 million, $43.6 million, and $26.1 million in development expense related to New Anti-CD20 Products and Third Party Anti-CD20 Products for the years ended December 31, 2009, 2008, and 2007, respectively. Reimbursement to Genentech for our share of these costs occurs through the net amount of co-promotion profits in the U.S. remitted to us. After a New Anti-CD20 Product or Third Party Anti-CD20 Product is approved, we will record our share of the development expenses related to that product as a reduction of our share of pretax co-promotion profits in revenues from unconsolidated joint business.

Elan

We collaborate with Elan on the development, manufacture and commercialization of TYSABRI. Under the terms of our collaboration agreement, we manufacture TYSABRI and collaborate with Elan on the product’s marketing, commercial distribution and ongoing development activities. The agreement is 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. As of December 31, 2009, Elan has made milestone payments to us of $75.0 million in the third quarter of 2008 and $50.0 million in the first quarter of 2009. We have recorded these amounts as deferred revenue upon receipt and are recognizing the entire $125.0 million as product revenue in our consolidated statements of income over the term of the collaboration agreement based on a units of revenue method whereby the revenue recognized is based on the ratio of units shipped in the current period over the total units expected to be shipped over the remaining term of the collaboration. No additional milestone payments are required under the agreement to maintain the current profit sharing split. Our collaboration agreement provides Elan or us with the option to buy the rights to TYSABRI in the event that the other company undergoes a change of control (as defined in the collaboration agreement).

In the U.S., we sell TYSABRI to Elan who sells the product to third party distributors. Our sales price to Elan in the U.S. is set prior to the beginning of each quarterly period to effect an approximate equal sharing of the gross margin between Elan and us. We recognize 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 have been met. As of December 31, 2009 and 2008, we had deferred revenue of $23.6 million and $6.2 million, respectively, for shipments to Elan that remained in Elan’s ending inventory pending shipment of the product to the third party distributors. We incur manufacturing and distribution costs, research and development expenses, commercial expenses, and general and administrative expenses. We record these expenses to their respective line items within our consolidated statements of income when they are incurred. Research and development and sales and marketing expenses are shared equally with Elan and the reimbursement of these expenses is recorded as reductions of the respective expense categories. During the years ended December 31, 2009, 2008 and 2007, we recorded $25.3 million, $23.6 million, and $21.5 million, respectively, as reductions of research and development expense for reimbursements from Elan. In addition, for the years ended December 31, 2009, 2008 and 2007, we recorded $62.5 million, $33.7 million, and $37.9 million, respectively, as reductions of selling, general and administrative expense for reimbursements from Elan.

In the rest of world, we are responsible for distributing TYSABRI to customers and are primarily responsible for all operating activities. Generally, we recognize revenue for sales of TYSABRI in the rest of world at the time of product delivery to our customers. Payments are 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 include the reimbursement for our portion of third-party royalties that Elan pays on behalf of the collaboration relating to rest of world sales. These amounts are reflected in the collaboration profit sharing line in our consolidated statements of income. For the years ended December 31, 2009, 2008 and 2007, $215.9 million, $136.0 million, and $14.1 million, respectively, was reflected in the collaboration profit sharing line for our collaboration with Elan. As rest of world sales of TYSABRI increase, our collaboration profit sharing expense is expected to increase.

Acorda

On June 30, 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. The transaction represents a sublicensing of an existing license agreement between Acorda and Elan. The parties have also entered into a related supply agreement. The $110.0 million upfront payment made on July 1, 2009 to Acorda was recorded as research and development expense during the second quarter 2009 as the product candidate had not received regulatory approval. Fampridine was approved in the U.S. on January 22, 2010 under the trade name AMPYRA (dalfampridine). AMPYRA is indicated to improve walking in patients with MS. This was demonstrated by an increase in walking speed. Acorda is developing and marketing AMPYRA in the U.S.

Under the terms of the agreement, we will commercialize fampridine and any aminopyridine products developed in our territory and will also have responsibility for regulatory activities and future clinical development of fampridine in those markets. We may incur additional milestone payments of up to $400.0 million based upon the successful achievement of regulatory and commercial sales milestones. We will also make tiered royalty payments to Acorda on sales outside of the U.S. The consideration that we pay for products will reflect all amounts due from Acorda to Elan for sales in markets outside the U.S., including royalties owed. We can also carry out future joint development activities under a cost-sharing arrangement.

Elan will continue to manufacture commercial supply of fampridine based upon its existing supply agreement with Acorda. Under the existing agreements with Elan, Acorda will pay Elan 7% of the upfront and milestone payments that Acorda receives from us.

A summary of activity related to this collaboration is as follows:


	For the Years Ended
	December 31,
(In millions)	2009		2008		2007

Upfront and milestones payments made to Acorda	$	110.0	$	—	$	—
Total expense incurred by Biogen Idec Inc. excluding upfront and milestone payments	$	4.7	$	—	$	—
Total expense reflected within our consolidated statements of income	$	114.7	$	—	$	—

A summary of activity related to this collaboration since inception, along with an estimate of additional future development expense expected to be incurred by us, is as follows:


	As of
	December 31,
(In millions)	2009

Total upfront and milestone payments made to Acorda	$	110.0
Total development expense incurred by Biogen Idec Inc., excluding upfront and milestone payments	$	4.7
Estimate of additional amounts to be incurred by us in development of fampridine	$	45.0

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 Alzheimer’s disease. Neurimmune will conduct research to identify potential therapeutic antibodies and we will be responsible for the development, manufacturing and commercialization of all products. We may pay Neurimmune up to $360.0 million in remaining milestone payments, as well as royalties on sales of any resulting commercial products. Milestone payments are reflected within our consolidated statements of income when achieved. The royalty term for sales in each country will be no less than 12 years from the first commercial sale of product using such compound in such country.

We have determined that we are the primary beneficiary of Neurimmune in accordance with the guidance provided by the Consolidation Topic of the Codification because we control the activities of the collaboration and are required to fund 100% of the research and development costs incurred in support of the collaboration agreement. As such, we consolidate the results of Neurimmune and recorded an IPR&D charge of $34.3 million in 2007 upon signing of the collaboration agreement. The amount allocated to IPR&D relates to the development of the Beta-Amyloid antibody compound which, as of the effective date of the agreement, had not reached technological feasibility and had no alternative future use. We allocated the IPR&D charge to noncontrolling interest, as the IPR&D charge represents the fair value of the underlying technology retained by the parent.

The assets and liabilities of Neurimmune are not significant as it is a research and development organization. Amounts that we reimburse Neurimmune for research and development expenses incurred in support of the collaboration are reflected in research and development expense in our statements of income.

A summary of activity related to this collaboration is as follows:


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Upfront and milestone payments made to Neurimumune	$	7.5	$	10.5	$	2.0
Total expense incurred by Biogen Idec Inc. excluding upfront and milestone payments	$	9.0	$	5.9	$	0.6
Total expense reflected within our consolidated statements of income	$	16.5	$	16.4	$	2.6

A summary of activity related to this collaboration since inception, along with an estimate of additional future development expense expected to be incurred by us, is as follows:


	As of
	December 31,
(In millions)	2009

Total upfront and milestone payments made to Neurimumune	$	20.0
Total development expense incurred by Biogen Idec Inc. excluding upfront and milestone payments	$	15.5
Estimate of additional amounts to be incurred by us in development of the lead compound	$	530.0

Cardiokine

We collaborate with Cardiokine Biopharma LLC (Cardiokine), a subsidiary of Cardiokine Inc., on the joint development of lixivaptan, an oral compound for the potential treatment of hyponatremia in patients with congestive heart failure. The royalty term under our collaboration agreement for sales in each country will be no less than 10 years from the first commercial sale of a lixivaptan product in such country. If successful, we will be responsible for certain development activities, manufacturing and global commercialization of lixivaptan, and Cardiokine has an option for limited co-promotion in the U.S. Based upon our current development plans, we may pay up to $125.0 million in remaining development milestone payments as well as royalties on commercial sales under the terms of our collaboration agreement.

We have determined that we are the primary beneficiary of Cardiokine in accordance with the guidance provided by the Consolidation Topic of the Codification because we control the activities of the collaboration and are required to fund 90% of the development costs under the collaboration agreement. As such, we consolidate the results of Cardiokine and recorded an IPR&D charge of $30.0 million in 2007 upon signing the collaboration agreement. The amount allocated to IPR&D relates to the development of the lixivaptan compound which, as of the effective date of the agreement, had not reached technological feasibility and had no alternative future use. We allocated the IPR&D charge to noncontrolling interest, as the IPR&D charge represents the fair value of the underlying technology retained by the parent. The assets and liabilities of Cardiokine are not significant as it is a research and development organization.

A summary of activity related to this collaboration is as follows:


	For the Years Ended December 31,
(In millions)	2009		2008		2007

Upfront and milestone payments made to Cardiokine	$	20.0	$	—	$	50.0
Total expense incurred by collaboration	$	66.5	$	50.5	$	17.2
Biogen Idec Inc.’s share of expense reflected within our consolidated statements of income	$	79.8	$	45.5	$	65.5
Collaboration expense allocated to noncontrolling interests, net of tax	$	6.7	$	5.0	$	1.7

A summary of activity related to this collaboration since inception, along with an estimate of additional future development expense expected to be incurred by us, is as follows:


	As of
	December 31,
(In millions)	2009

Total upfront and milestone payments made to Cardiokine	$	70.0
Total development expense incurred by Biogen Idec Inc. excluding upfront and milestone payments	$	122.8
Estimate of additional amounts to be incurred by us in development of lixivaptan (all indications)	$	430.0

Biovitrum

We have a collaboration agreement with Biovitrum to jointly develop and commercialize long-acting recombinant Factor VIII and Factor IX for the treatment of hemophilia. Under the agreement, development costs are shared equally. We have commercial rights to North America and Biovitrum has commercial rights to Europe. Each party shares in the other’s net sales based on a royalty percentage of up to 33.3%. All other territories are to be managed by a third party with us and Biovitrum sharing equally in all royalties, license fees and other revenues arising from arrangements with third party licenses and distributors.

Amounts incurred by us in the development of long-acting recombinant Factor VIII and Factor IX are reflected as research and development expense in our consolidated statements of income, reduced by amounts due from Biovitrum. A summary of collective activity related to these programs is as follows:


	For the Years Ended
	December 31,
(In millions)	2009		2008		2007

Total expense incurred by collaboration	$	44.9	$	37.7	$	26.7
Total expense reflected within our consolidated statements of income	$	22.5	$	18.8	$	13.3

A summary of activity related to this collaboration since inception, along with an estimate of additional future development expense expected to be incurred by us, is as follows:


	As of
	December 31,
(In millions)	2009

Total upfront and milestone payments received from Biovitrum	$	5.0
Total development expense incurred by Biogen Idec Inc., excluding upfront and milestone payments	$	54.6
Estimate of additional amounts to be incurred by us in development of Factors XIII and IX	$	135.0

Under the agreement, Biovitrum may pay us an additional $18.0 million in milestone payments.

MondoBiotech

In December 2009, pursuant to our agreement with mondoBIOTECH AG and certain of its subsidiaries (Mondobiotech), we notified Mondobiotech that we would terminate our interest in continuing to fund, develop and commercialize Aviptadil, the collaboration’s only product, and have retained the right to receive a percentage of future milestones and royalties received by Mondobiotech from third parties related to the Aviptadil program. In accordance with the terms of the agreement, we made a final payment of $1.25 million in December 2009, bringing total 2009 payments to Mondobiotech to $13.3 million.

We had previously determined that we were the primary beneficiary of Mondobiotech because we were required to fund 100% of the development costs under the terms agreed. As such, we consolidated the results of Mondobiotech. Upon terminating our development interest, we ceased to consolidate the results of Mondobiotech because we no longer were responsible for funding development costs. Therefore, our consolidated financial statements as of December 31, 2009 no longer include the assets and liabilities of Mondobiotech. The assets and liabilities of Mondobiotech previously consolidated within our financial statements were not significant as Mondobiotech is a research and development organization. Expenses incurred by the collaboration were previously reflected in research and development expense in our consolidated statements of income.

A summary of activity related to this collaboration is as follows:


	For the Years Ended
	December 31,
(In millions)	2009		2008		2007

Total expense incurred by collaboration	$	12.1	$	14.4	$	13.7
Total expense reflected within our consolidated statements of income	$	12.1	$	14.4	$	13.7

A summary of activity related to this collaboration since inception is as follows:


	As of
	December 31,
(In millions)	2009

Total upfront and milestone payments made to Mondobiotech	$	7.5
Total development expense incurred by Biogen Idec Inc., excluding upfront and milestone payments	$	42.0

UCB

In June 2009, UCB, S.A., (UCB) and we announced the discontinuation of the Phase 2 clinical trial for this collaboration’s only product candidate due to the absence of clinically relevant efficacy. Since the inception of our collaboration agreement with UCB, we have incurred a total of $101.0 million in research and development expenses for the development and commercialization of an oral alpha4 integrin antagonist for the treatment of relapsing remitting MS.

A summary of activity related to this collaboration is as follows:


	For the Years Ended
	December 31,
(In millions)	2009		2008		2007

Total expense incurred by collaboration	$	31.8	$	33.6	$	34.2
Biogen Idec Inc., share of expense reflected within our consolidated statements of income	$	21.0	$	21.9	$	24.2

A summary of activity related to this collaboration since inception, along with an estimate of additional future development expense expected to be incurred by us, is as follows:


	As of
	December 31,
(In millions)	2009

Total upfront and milestone payments made to UCB	$	30.0
Total development expense incurred by Biogen Idec Inc., excluding upfront and milestone payments	$	71.0
Estimate of additional amounts to be incurred by us in development of the compound in this indication	$	2.0

Facet Biotech

We have a collaboration agreement with Facet Biotech Corporation (Facet) aimed at advancing the development and commercialization of daclizumab in MS and volociximab in solid tumors. Daclizumab is a humanized monoclonal antibody that binds to the IL-2 receptor on activated T cells. Volociximab is an anti-angiogenic chimeric antibody directed against alpha5 beta1 integrin. Under the agreement, development and commercialization costs and profits are shared equally. We may incur up to an additional $210.0 million of payments upon achievement of development and commercial milestones.

In January 2010, we agreed with our collaborator, Facet, to assume the manufacture of declizumab and began the process of transferring from Facet the manufacturing technology necessary for us to manufacture declizumab.

A summary of activity related to this collaboration is as follows:


	For the Years Ended
	December 31,
(In millions)	2009		2008		2007

Total expense incurred by collaboration	$	40.8	$	65.7	$	41.3
Biogen Idec Inc. share of expense reflected within our consolidated statements of income	$	20.4	$	32.8	$	20.7

A summary of activity related to this collaboration since inception, along with an estimate of additional future development expense expected to be incurred by us, is as follows:


	As of
	December 31,
(In millions)	2009

Total upfront and milestone payments made to Facet	$	50.0
Total development expense incurred by Biogen Idec Inc., excluding upfront and milestone payments	$	122.5
Estimate of additional amounts to be incurred by us in development of current indications of daclizumab and volociximab	$	475.0

Vernalis

We have a collaboration agreement with Vernalis plc (Vernalis) aimed at advancing the development and commercialization of an adenosine A2a receptor antagonist for treatment of Parkinson’s disease. Under the agreement, we received exclusive worldwide rights to develop and commercialize the compound. We are responsible for funding all development costs and may incur up to an additional $85.0 million of milestone payments upon achievement of certain objectives, as well as royalties on commercial sales.

A summary of activity related to this collaboration is as follows:


	For the Years Ended
	December 31,
(In millions)	2009		2008		2007

Total expense incurred by collaboration and reflected within our consolidated statements of income	$	14.8	$	16.9	$	9.6

A summary of activity related to this collaboration since inception, along with an estimate of additional future development expense expected to be incurred by us, is as follows:


	As of
	December 31,
(In millions)	2009

Total upfront and milestone payments made to Vernalis	$	13.0
Total development expense incurred by Biogen Idec Inc. excluding upfront and milestone payments	$	69.7
Estimate of additional amounts to be incurred by Biogen Idec Inc. in development of the compound in this indication	$	225.0

As of December 31, 2008, we held a total of approximately 7.6 million shares of Vernalis. During 2009, due to a reverse stock split, we received one new share for every twenty shares previously owned. As a result, as of December 31, 2009, we held a total of approximately 0.4 million shares of Vernalis. As of December 31, 2009 and 2008, our investment in Vernalis had a fair value of approximately $0.5 million and $0.3 million, respectively.

Our investment in Vernalis, which is included within investments and other assets, is subject to periodic review of impairment. In 2008 and 2007, we recorded an impairment charge of $0.5 million and $6.3 million, respectively, representing an other-than-temporary impairment in the stock we own. No impairment was recognized related to this investment during 2009.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2009

Commitments and Contingencies [Abstract]

Commitments and Contingencies


18.	Commitments and Contingencies

Leases

We rent laboratory and office space and certain equipment under noncancellable 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, which terminate at various dates through 2025, amounted to $36.4 million in 2009, $36.0 million in 2008, and $33.1 million in 2007.

As of December 31, 2009, minimum rental commitments under noncancellable leases for each of the next five years and total thereafter were as follows:


(In millions)	2010			2011		2012		2013		2014		Thereafter		Total

Minimum lease payments(1)	$	33.0		$	33.1	$	29.9	$	29.8	$	28.7	$	227.3	$	381.8
Income from subleases		(0.7	)		—		—		—		—		—		(0.7	)

Net minimum lease payments	$	32.3		$	33.1	$	29.9	$	29.8	$	28.7	$	227.3	$	381.1


(1)		Includes fifteen-year lease on a 356,000 square foot office building in Weston, Massachusetts, which will serve as the future location of our general and administrative offices with a planned occupancy around mid-year 2010. The initial lease term is from 2010 through 2025 under which the total minimum lease payments are $258.6 million.

Other Funding Commitments

As of December 31, 2009, we have funding commitments of up to approximately $24.8 million in biotechnology oriented venture capital funds.

As of December 31, 2009, we have accrued expenses totaling approximately $31.7 million on our consolidated balance sheet related to clinical research organizations for expenditures incurred in relation to ongoing clinical trials.

Contingent Milestone Payments

Based on our development plans as of December 31, 2009, we have committed to make potential future milestone payments to third parties of up to approximately $1,500.0 million 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 developmental, regulatory or commercial milestones. Because the achievement of these milestones had not occurred as of December 31, 2009, such contingencies have not been recorded in our financial statements.

Litigation

12 Months Ended

Dec. 31, 2009

Litigation [Abstract]

Litigation


19.	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 September 15, 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 July 1, 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 $38.9 million of corporate excise tax with respect to the 2002 tax year, which includes associated interest and penalties. On December 6, 2006, we filed an abatement application with the DOR, seeking abatements for 2001, 2002 and 2003 tax years. The abatement application was denied on July 24, 2007. On July 25, 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 tax years and adjustments in certain credits and credit carry forwards for 2001, 2002 and 2003 tax years. Issues before the Board include the computation of Biogen Idec MA’s sales factor for 2001, 2002 and 2003 tax years, computation of Biogen Idec MA’s research credits for those same years, and the availability of deductions for certain expenses and partnership flow-through items. We anticipate that the trial will take place in 2010. We intend to contest this matter vigorously.

On October 4, 2004, Genentech, Inc. received a subpoena from the U.S. Department of Justice requesting documents related to the promotion of RITUXAN. We market RITUXAN in the United States in collaboration with Genentech. We cooperated in the government’s investigation. It is our understanding that the government has not taken any action against Genentech as a result of the investigation. We therefore do not expect to report further on this matter.

On October 27, 2008, Sanofi-Aventis Deutschland GmbH (Sanofi) filed suit against Genentech and Biogen Idec in federal court in Texas (E.D. Tex.) (Texas Action) claiming that RITUXAN and certain other Genentech products infringe U.S. Patents 5,849,522 (‘522 patent) and 6,218,140 (‘140 patent). Sanofi seeks preliminary and permanent injunctions, compensatory and exemplary damages, and other relief. On October 27, 2008, Genentech and Biogen Idec filed a complaint against Sanofi, Sanofi-Aventis U.S. LLC, and Sanofi-Aventis U.S., Inc. in federal court in California (N.D. Cal.) (California Action) seeking a declaratory judgment that RITUXAN and other Genentech products do not infringe the ‘522 patent or the ‘140 patent, and a declaratory judgment that those patents are invalid. (Sanofi-Aventis U.S. LLC and Sanofi-Aventis U.S., Inc. were later dismissed voluntarily.) On May 22, 2009, the United States Court of Appeals for the Federal Circuit granted Genentech’s and our petition for a writ of mandamus transferring the Texas Action to the federal court in California, and denied Sanofi’s petition for rehearing on August 10, 2009. The Texas Action has been consolidated with the California Action and we refer to the two actions together as the Consolidated Actions. We have not formed an opinion that an unfavorable outcome in the Consolidated Actions is either “probable” or “remote,” and do not express an opinion at this time as to the likely outcome of the matters or as to the magnitude or range of any potential loss. We believe that we have good and valid defenses and intend vigorously to defend against the allegations against us.

On October 24, 2008, Hoechst GmbH filed with the ICC International Court of Arbitration (Paris) a request for arbitration against Genentech, relating to a terminated license agreement between Hoechst’s predecessor and Genentech that pertained to the above-referenced patents and related patents outside the U.S. The license was entered as of January 1, 1991 and was terminated by Genentech on October 27, 2008. We understand that Hoechst seeks payment of royalties on sales of Genentech products, including RITUXAN, damages for breach of contract, and other relief. Although we are not a party to the arbitration, any damages awarded to Hoescht based on sales of RITUXAN may be a cost allocable to our collaboration with Genentech. Under the collaboration agreement, we may be responsible for a portion of any such damages. We have not formed an opinion that an unfavorable outcome in the arbitration is either “probable” or “remote,” and do not express an opinion at this time as to the likely outcome of the matter or as to the magnitude or range of any potential loss.

In addition, we are 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 conditions.

Segment Information

12 Months Ended

Dec. 31, 2009

Segment Information [Abstract]

Segment Information


20.	Segment Information

We operate in one business segment, which is the business of development, manufacturing and commercialization of novel therapeutics for human healthcare 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,
	2009						2008						2007
	United		Rest of				United		Rest of				United		Rest of
(In millions)	States		World		Total		States		World		Total		States		World		Total

AVONEX	$	1,406.2	$	916.7	$	2,322.9	$	1,276.5	$	926.1	$	2,202.6	$	1,085.0	$	782.8	$	1,867.8
TYSABRI		231.8		544.2		776.0		196.4		392.2		588.6		104.4		125.5		229.9
Other		—		54.0		54.0		—		48.5		48.5		14.2		24.9		39.1

Total product revenues	$	1,638.0	$	1,514.9	$	3,152.9	$	1,472.9	$	1,366.8	$	2,839.7	$	1,203.6	$	933.2	$	2,136.8

Our geographic information is summarized as follows (in millions):


December 31, 2009	U.S.		Europe		Germany		Asia		Other		Total

Product revenues from external customers	$	1,638.0	$	913.7	$	374.8	$	47.9	$	178.5	$	3,152.9
Revenues from unconsolidated joint business	$	839.2	$	190.2	$	—	$	24.1	$	41.4	$	1,094.9
Other revenues from external customers	$	102.8	$	26.2	$	0.5	$	—	$	—	$	129.5
Long-lived assets	$	1,092.7	$	705.6	$	1.4	$	3.6	$	2.1	$	1,805.4


December 31, 2008	U.S.		Europe		Germany		Asia		Other		Total

Product revenues from external customers	$	1,472.9	$	822.6	$	354.5	$	36.5	$	153.2	$	2,839.7
Revenues from unconsolidated joint business	$	793.2	$	272.3	$	—	$	21.7	$	41.0	$	1,128.2
Other revenues from external customers	$	96.5	$	32.8	$	0.3	$	—	$	—	$	129.6
Long-lived assets	$	1,111.2	$	658.8	$	2.5	$	4.2	$	1.2	$	1,777.9


December 31, 2007	U.S.		Europe		Germany		Asia		Other		Total

Product revenues from external customers	$	1,203.6	$	565.9	$	231.1	$	4.2	$	132.0	$	2,136.8
Revenues from unconsolidated joint business	$	675.3	$	200.2	$	—	$	18.1	$	32.5	$	926.1
Other revenues from external customers	$	78.1	$	27.0	$	0.4	$	3.2	$	—	$	108.7
Long-lived assets	$	1,145.7	$	494.9	$	2.6	$	3.5	$	2.0	$	1,648.7

Revenues from Unconsolidated Joint Business

Approximately 25%, 28%, and 29% of our total revenues in 2009, 2008, and 2007, respectively, are derived from our joint business arrangement with Genentech (see Note 17, Collaborations to our Consolidated Financial Statements).

Significant Customers

We recorded revenue from two wholesale distributors accounting for 17.7% and 12.3% of gross product revenues in 2009, 16.2% and 13.1% of gross product revenues in 2008 and 19.4% and 15.2% of gross product revenues in 2007.

Other

Included in long-lived assets in Europe as of December 31, 2009, 2008 and 2007 is approximately $665.8 million, $611.5 million and $480.5 million, respectively, related to our operations in Denmark.

Guarantees

12 Months Ended

Dec. 31, 2009

Guarantees [Abstract]

Guarantees


21.	Guarantees

As of December 31, 2009 and 2008, 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, 2009 and 2008, respectively.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2009

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Data (Unaudited)


22.	Quarterly Financial Data (Unaudited)


	First		Second			Third			Fourth			Total
(In millions, except per share amounts)	Quarter(b)		Quarter(c)			Quarter			Quarter(d)(e)			Year

2009
Product revenues	$	733.4	$	791.0		$	801.7		$	826.8		$	3,152.9
Unconsolidated joint business revenues	$	278.8	$	275.6		$	283.9		$	256.6		$	1,094.9
Other revenues	$	24.3	$	26.7		$	34.9		$	43.6		$	129.5
Total revenues	$	1,036.5	$	1,093.3		$	1,120.5		$	1,127.0		$	4,377.3
Total costs and expenses and income tax expense	$	796.8	$	963.1		$	850.3		$	827.3		$	3,437.5
Other income (expense), net	$	6.8	$	14.7		$	9.4		$	6.4		$	37.3
Net income attributable to Biogen Idec Inc.	$	244.0	$	142.8		$	277.7		$	305.6		$	970.1
Basic earnings per share attributable to Biogen Idec Inc.	$	0.85	$	0.49		$	0.96		$	1.07		$	3.37
Diluted earnings per share attributable to Biogen Idec Inc.	$	0.84	$	0.49		$	0.95		$	1.06		$	3.35

	First		Second			Third			Fourth			Total
(In millions, except per share amounts)	Quarter(a)		Quarter			Quarter			Quarter			Year

2008
Product revenues	$	665.1	$	684.5		$	758.3		$	731.8		$	2,839.7
Unconsolidated joint business revenues	$	247.2	$	278.8		$	299.0		$	303.2		$	1,128.2
Other revenues	$	29.9	$	30.1		$	35.7		$	33.9		$	129.6
Total revenues	$	942.2	$	993.4		$	1,093.0		$	1,068.9		$	4,097.5
Total costs and expenses and income tax expense	$	779.5	$	781.4		$	861.5		$	827.3		$	3,249.7
Other income (expense), net	$	3.1	$	(4.0	)	$	(23.7	)	$	(33.1	)	$	(57.7	)
Net income attributable to Biogen Idec Inc.	$	163.1	$	206.6		$	206.8		$	206.7		$	783.2
Basic earnings per share attributable to Biogen Idec Inc.	$	0.55	$	0.71		$	0.71		$	0.71		$	2.67
Diluted earnings per share attributable to Biogen Idec Inc.	$	0.54	$	0.70		$	0.70		$	0.70		$	2.65


(a)		Total costs and expenses and income tax expense for the first quarter of 2008 includes $25.0 million of in-process research and development expense related to a milestone payment made to the former shareholders of Conforma Therapeutics Inc. pursuant to the terms of our acquisition of Conforma Therapeutics Inc. in 2006.

(b)		Changes in tax law in certain state jurisdictions in which we operate during the first quarter of 2009 resulted in a $30.2 million reduction to our first quarter 2009 income tax expense.

(c)		Total costs and expenses and income tax expense for the second quarter of 2009 includes the $110.0 million upfront payment made to Acorda Therapeutics, Inc. pursuant to our June 30, 2009 collaboration and license agreement to develop and commercialize products containing fampridine in markets outside the U.S.

(d)		During the fourth quarter of 2009, we repurchased 8.8 million shares of our common stock at a cost of approximately $422.4 million under our $1.0 billion share repurchase program authorized in October 2009. In addition, we also purchased an additional 6.0 million shares of our common stock at a cost of approximately $271.1 million during the fourth quarter of 2009 under our 2006 share repurchase program.

(e)		Resolution of federal, state and foreign tax audits, including the effective settlement of several uncertain tax positions during the fourth quarter of 2009 resulted in a $34.0 million reduction to our fourth quarter 2009 income tax expense.

New Accounting Pronouncements

12 Months Ended

Dec. 31, 2009

New Accounting Pronouncements [Abstract]

New Accounting Pronouncements


23.	New Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the 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 management’s 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 June 15, 2010, which for Biogen Idec means no later than January 1, 2011. Early adoption is permitted; however, adoption of this guidance as of a date other than January 1, 2011, will require us to apply this guidance retrospectively effective as of January 1, 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 the following two new accounting standards, which were integrated into the Codification in December 2009:


	•	ASU No. 2009-16, Accounting for Transfers of Financial Assets (ASU No. 2009-16); and

	•	ASU No. 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities (ASU No. 2009-17).

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 transferor’s 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 purpose entity when accounting for transfers and servicing of financial assets and extinguishments of liabilities, and removes the exception from applying the general accounting principles for the consolidation of variable interest entities that are qualifying special-purpose entities. This new accounting standard is effective for transfers of financial assets occurring on or after January 1, 2010. The adoption of this standard will not have an impact on our financial position or results of operations.

ASU No. 2009-17 amends previously issued accounting guidance for the consolidation of variable interest entities to require 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 also 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 the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. This new standard may affect how we account for the consolidation of common structures, such as joint ventures, equity method investments, collaboration and other agreements and purchase arrangements. Under this revised guidance, more entities may meet the definition of a variable interest entity, and the determination about whether an enterprise should consolidate a variable interest entity is required to be evaluated continuously. This standard is effective for us for interim and annual periods beginning after January 1, 2010. We have completed our evaluation of the impact of adopting this standard and determined that the adoption will not have an impact on our financial position or results of operations. However, changes to existing relationships or future transactions may result in us consolidating or deconsolidating our partner(s) to collaborations and other arrangements. Refer to Note 17, Collaborations to our Consolidated Financial Statements for information about our relationships with significant variable interest entities.

Recently Adopted Accounting Standards

In September 2009, the FASB issued ASU No. 2009-12, Fair Value Measurements and Disclosure (ASU No. 2009-12). This standard provides additional guidance on using the net asset value per share, provided by an investee, when estimating the fair value of an alternate investment that does not have a readily determinable fair value and enhances the disclosures concerning these investments. Examples of alternate investments, within the scope of this standard, include investments in hedge funds and private equity, real estate, and venture capital partnerships. This standard is effective for interim and annual periods ending after December 15, 2009. As of December 31, 2009, our only investments falling within the scope of this guidance are our venture capital investments. For these investments we use the net asset value to assess fair value. Refer to Note 6, Fair Value Measurements to our Consolidated Financial Statements for additional disclosure related to our venture capital investments. The adoption of this standard did not have an impact on our financial position or results of operations; however, this standard may impact us in future periods.

In April 2009, the FASB issued a new accounting standard providing guidance for the accounting of assets acquired and liabilities assumed in a business combination that arise from contingencies. This guidance amends and clarifies previous accounting standards to address application issues regarding the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. Due to the fact that this guidance is applicable to acquisitions completed after January 1, 2009 and we did not have any business combinations during 2009, the adoption of this standard did not impact our financial position or results of operations.

Effective January 1, 2009, we adopted a newly issued accounting standard for business combinations. This standard requires an acquiring company to measure all assets acquired and liabilities assumed, including contingent considerations and all contractual contingencies, at fair value as of the acquisition date. In addition, an acquiring company is required to capitalize IPR&D and either amortize it over the life of the product, or write it off if the project is abandoned or impaired. Due to the fact that this guidance is applicable to acquisitions completed after January 1, 2009 and we did not have any business combinations during 2009, the adoption of this standard did not impact our financial position or results of operations. The standard also amended accounting for uncertainty in income taxes. Previously, accounting standards generally required post-acquisition adjustments related to business combination deferred tax asset valuation allowances and liabilities for uncertain tax positions to be recorded as an increase or decrease to goodwill. This new standard does not permit this accounting and, generally, requires any such changes to be recorded in current period income tax expense. Thus, all changes to valuation allowances and liabilities for uncertain tax positions established in acquisition accounting, whether the business combination was accounted for under this guidance, will be recognized in current period income tax expense.