Other Consolidated Financial Statement Detail

Supplemental Cash Flow Information

Supplemental disclosure of cash flow information for the years ended December 31, 2015, 2014 and 2013, is as follows:



	For the Years Ended December 31,
(In millions)	2015		2014		2013
Cash paid during the year for:
Interest	$	39.1	$	41.2	$	53.6
Income taxes	$	1,674.8	$	1,163.2	$	643.2

Non-cash Investing and Financing Activity

In the fourth quarter of 2015, we accrued $300.0 million upon reaching $7.0 billion in total cumulative sales of Fumapharm Products. The amount, net of tax benefit, was accounted for as an increase to goodwill in accordance with the accounting standard applicable to business combinations when we acquired Fumapharm and is expected to be paid in the first quarter of 2016. For additional information related to this transaction, please read Note 21, Commitment and Contingencies to these consolidated financial statements.

In connection with the construction of our manufacturing facility in Solothurn, Switzerland, we accrued charges related to processing equipment and engineering services of approximately $59.1 million in our consolidated balance sheet. For additional information related to this transaction, please read Note 10, Property, Plant and Equipment to these consolidated financial statements.

In February 2015, upon completion of our acquisition of Convergence, we recorded a contingent consideration obligation of $274.5 million as part of the purchase price. For additional information related to this transaction, please read Note 2, Acquisitions to these consolidated financial statements.

In July and November 2013, the construction of two office buildings in Cambridge, Massachusetts was completed and we started leasing the facilities. Upon completion of the construction of the buildings, we determined that we were no longer considered the owner of the buildings because we did not have any unusual or significant continuing involvement. Consequently, we derecognized the buildings and their associated financing obligation of approximately $161.5 million from our consolidated balance sheet.

Other Income (Expense), Net

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



	For the Years Ended December 31,
(In millions)	2015			2014			2013
Interest income	$	22.1		$	12.2		$	8.2
Interest expense	(95.5		)	(29.5		)	(31.9		)
Impairments on investments	—			—			(2.8		)
Gain (loss) on investments, net	(3.8		)	11.8			21.7
Foreign exchange gains (losses), net	(32.7		)	(11.6		)	(15.2		)
Other, net	(13.8		)	(8.7		)	(14.9		)
Total other income (expense), net	$	(123.7	)	$	(25.8	)	$	(34.9	)

Other Current Assets

Other current assets includes prepaid taxes totaling approximately $550.6 million and $57.6 million as of December 31, 2015 and 2014, respectively.

Accrued Expenses and Other

Accrued expenses and other consists of the following:



	As of December 31,
(In millions)	2015		2014
Revenue-related reserves for discounts and allowances	$	518.1	$	359.2
Current portion of contingent consideration obligations	504.7		265.5
Employee compensation and benefits	270.8		393.8
Royalties and licensing fees	167.9		172.4
Deferred revenue	55.7		120.9
Other	579.6		505.9
Total accrued expenses and other	$	2,096.8	$	1,817.7

Other Long-Term Liabilities

Other long-term liabilities consists of the following:



	As of December 31,
(In millions)	2015		2014
Contingent consideration obligation	$	301.3	$	200.0
Employee compensation and benefits	235.4		200.7
Other	369.1		249.4
Total other long-term liabilities	$	905.8	$	650.1

Pricing of TYSABRI in Italy - AIFA

In the fourth quarter of 2011, Biogen Italia SRL (formerly Biogen Idec Italia SRL), our Italian subsidiary, received a notice from the Italian National Medicines Agency (Agenzia Italiana del Farmaco or AIFA) that sales of TYSABRI after mid-February 2009 through mid-February 2011 exceeded by EUR30.7 million a reimbursement limit established pursuant to a Price Determination Resolution granted by AIFA in December 2006. In December 2011, we filed an appeal against AIFA in administrative court in Rome, Italy seeking a ruling that the reimbursement limit in the Price Determination Resolution should apply as written to only “the first 24 months” of TYSABRI sales, which ended in mid-February 2009. That appeal is still pending. Since being notified in the fourth quarter of 2011 that AIFA believed a reimbursement limit was still in effect, we deferred revenue on sales of TYSABRI as if the reimbursement limit were in effect for each biannual period beginning in mid-February 2009.

In July 2013, we negotiated an agreement in principle with AIFA's Price and Reimbursement Committee that would have resolved all of AIFA's claims relating to sales of TYSABRI in excess of the reimbursement limit for the periods from February 2009 through January 2013 for an aggregate repayment of EUR33.3 million. The agreement was sent to the Avvocatura Generale dello Stato (Attorney General) for its opinion. As a result of this agreement in principle, we recorded a liability and reduction to revenue of EUR15.4 million at June 30, 2013, which approximated 50% of the claim related to the period from mid-February 2009 through mid-February 2011. In October 2014, we proposed a revised settlement for the period from February 2009 through January 2013 of EUR35.6 million to be paid in one payment. AIFA and Biogen Italia SRL are still discussing a possible resolution for the period from February 2009 through January 2013.

In June 2014, AIFA approved a resolution affirming that there is no reimbursement limit from and after February 2013. As a result, we recognized $53.5 million of TYSABRI revenues related to the periods beginning February 2013 that were previously deferred.

We have approximately EUR75 million recorded as accrued expenses and long-term deferred revenue in our consolidated balance sheets for this matter as of December 31, 2015 and 2014, respectively.