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Revenue Reserves
 12 Months Ended
Dec. 31, 2013
Reserves for Discounts and Allowances [Abstract]  
Reserves for Discounts and Allowances
Reserves for Discounts and Allowances
As a result of our acquisition of TYSABRI rights from Elan, we began recognizing reserves for discounts and allowances for U.S. TYSABRI revenue in the second quarter of 2013. Prior periods included reserves for discounts and allowances for rest of world TYSABRI revenue and worldwide AVONEX revenue. In addition, following our commercial launch of TECFIDERA in the second quarter of 2013, we began recognizing reserves for discounts and allowances related to TECFIDERA revenue.
An analysis of the change in reserves is summarized as follows:
(In millions)
Discounts
 
Contractual
Adjustments
 
Returns
 
Total
2013
 
 
 
 
 
 
 
Beginning balance
$
14.3

 
$
196.0

 
$
26.8

 
$
237.1

Current provisions relating to sales in current year
236.3

 
851.4

 
22.9

 
1,110.6

Adjustments relating to prior years
(0.7
)
 
(16.4
)
 
1.1

 
(16.0
)
Payments/returns relating to sales in current year
(189.7
)
 
(560.4
)
 
—

 
(750.1
)
Payments/returns relating to sales in prior years
(13.2
)
 
(135.0
)
 
(17.1
)
 
(165.3
)
Ending balance
$
47.0

 
$
335.6

 
$
33.7

 
$
416.3


(In millions)
Discounts
 
Contractual
Adjustments
 
Returns
 
Total
2012
 
 
 
 
 
 
 
Beginning balance
$
11.9

 
$
120.0

 
$
23.7

 
$
155.6

Current provisions relating to sales in current year
96.5

 
534.2

 
22.0

 
652.7

Adjustments relating to prior years
(0.3
)
 
(4.7
)
 
(0.1
)
 
(5.1
)
Payments/returns relating to sales in current year
(83.6
)
 
(363.2
)
 
(4.3
)
 
(451.1
)
Payments/returns relating to sales in prior years
(10.2
)
 
(90.3
)
 
(14.5
)
 
(115.0
)
Ending balance
$
14.3

 
$
196.0

 
$
26.8

 
$
237.1

(In millions)
Discounts
 
Contractual
Adjustments
 
Returns
 
Total
2011
 
 
 
 
 
 
 
Beginning balance
$
13.9

 
$
107.0

 
$
21.1

 
$
142.0

Current provisions relating to sales in current year
84.3

 
372.1

 
15.7

 
472.1

Adjustments relating to prior years
—

 
(14.0
)
 
(0.9
)
 
(14.9
)
Payments/returns relating to sales in current year
(73.3
)
 
(277.0
)
 
(0.4
)
 
(350.7
)
Payments/returns relating to sales in prior years
(13.0
)
 
(68.1
)
 
(11.8
)
 
(92.9
)
Ending balance
$
11.9

 
$
120.0

 
$
23.7

 
$
155.6


During 2013, we reclassified prior year amounts related to our AVONEX co-pay programs from discounts to contractual adjustments. For the years ended December 31, 2012 and 2011, we reclassified $17.3 million and $11.7 million, respectively.
The total reserves above, included in our consolidated balance sheets, are summarized as follows:
 
As of December 31,
(In millions)
2013
 
2012
Reduction of accounts receivable
$
151.4

 
$
46.1

Component of accrued expenses and other
264.9

 
191.0

Total reserves
$
416.3

 
$
237.1