Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

    Quarterly Financial Data (Unaudited)

(In millions, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
2019
Product revenues, net	$	2,680.0	$	2,880.3	$	2,894.7	$	2,924.8	$	11,379.8
Revenues from anti-CD20 therapeutic programs	$	517.4	$	576.4	$	595.8	$	600.8	$	2,290.4
Other revenues	$	292.4	$	160.0	$	109.6	$	145.7	$	707.7
Total revenues	$	3,489.8	$	3,616.7	$	3,600.1	$	3,671.3	$	14,377.9
Gross profit (1)	$	2,887.8	$	3,140.4	$	3,170.1	$	3,224.2	$	12,422.5
Net income (a)	$	1,408.8	$	1,494.1	$	1,545.9	$	1,439.7	$	5,888.5
Net income attributable to Biogen Inc. (a)	$	1,408.8	$	1,494.1	$	1,545.9	$	1,439.7	$	5,888.5
Net income per share:
Basic earnings per share attributable to Biogen Inc.	$	7.17	$	7.85	$	8.40	$	8.10	$	31.47
Diluted earnings per share attributable to Biogen Inc.	$	7.15	$	7.85	$	8.39	$	8.08	$	31.42
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Inc.	196.6		190.3		184.0		177.8		187.1
Diluted earnings per share attributable to Biogen Inc.	197.0		190.4		184.2		178.2		187.4

(In millions, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
2018
Product revenues, net	$	2,523.5	$	2,757.5	$	2,780.1	$	2,825.7	$	10,886.8
Revenues from anti-CD20 therapeutic programs	$	443.2	$	490.4	$	511.7	$	534.9	$	1,980.2
Other revenues	$	164.4	$	108.6	$	147.2	$	165.7	$	585.9
Total revenues	$	3,131.1	$	3,356.5	$	3,439.0	$	3,526.3	$	13,452.9
Gross profit (1)	$	2,685.1	$	2,935.5	$	2,978.2	$	3,037.8	$	11,636.6
Net income (b)	$	1,171.2	$	915.0	$	1,442.9	$	944.9	$	4,474.0
Net income attributable to Biogen Inc. (b)	$	1,172.9	$	866.6	$	1,444.4	$	946.8	$	4,430.7
Net income per share:
Basic earnings per share attributable to Biogen Inc.	$	5.55	$	4.18	$	7.17	$	4.74	$	21.63
Diluted earnings per share attributable to Biogen Inc.	$	5.54	$	4.18	$	7.15	$	4.73	$	21.58
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Inc.	211.4		207.1		201.4		199.8		204.9
Diluted earnings per share attributable to Biogen Inc.	211.7		207.3		201.9		200.3		205.3

(1) Gross profit is calculated as total revenues less cost of sales, excluding amortization and impairment of acquired intangible assets.

(a) Net income and net income attributable to Biogen Inc. for 2019 include:

• Pre-tax gains (losses) related to changes in the fair value of our strategic investments of $376.1 million, ($174.2) million, ($4.6) million and $2.8 million for the first, second, third and fourth quarters, respectively.

• Impairment charges related to certain intangible assets of $215.9 million in the third quarter. For additional information, please read Note 6, Intangible Assets and Goodwill, to these consolidated financial statements.

• A total net loss in our consolidated statements of income of approximately $124.2 million related to the sale of all the outstanding shares of our subsidiary that owned our biologics manufacturing operations in Hillerød, Denmark to FUJIFILM. This loss included a pre-tax loss of $55.3 million and a tax expense of $68.9 million related to this transaction. For additional information on the divestiture of our Hillerød, Denmark manufacturing operations, please read, Note 3, Divestitures, to these consolidated financial statements.

• An expense of $63.0 million was recorded in research and development expense in our consolidated statements of income in the fourth quarter as we completed a transaction with Samsung Bioepis and secured the exclusive rights to commercialize two potential ophthalmology biosimilar products, SB11 referencing LUCENTIS and SB15 referencing EYLEA, in major markets worldwide, including the U.S., Canada, Europe, Japan and Australia. We also acquired an option to extend our existing commercial agreement with Samsung Bioepis for BENEPALI, IMRALDI and FLIXABI in Europe and obtained exclusive rights to commercialize these products in China. For additional information, please read, Note 18, Collaborative and Other Relationships, to these consolidated financial statements.

• Losses (gains) related to the adjustments to the fair values of our contingent consideration obligations of $11.5 million, $(20.0) million, $(57.8) million and $2.6 million for the first, second, third and fourth quarters, respectively. For additional information on the valuation of our contingent consideration obligations, please read Note 7, Fair Value Measurements, to these consolidated financial statements.

• A payment of $45.0 million to Ionis in the fourth quarter, as we exercised our option to obtain a worldwide, exclusive, royalty-bearing license from Ionis to develop and commercialize BIIB080. For additional information, please read, Note 18, Collaborative and Other Relationships, to these consolidated financial statements.

• A payment of $38.5 million to Skyhawk in the first quarter as we entered into a collaboration and research and development services agreement with Skyhawk pursuant to which the companies are leveraging Skyhawk's SkySTAR technology platform with the goal of discovering innovative small molecule treatments for patients with neurological diseases, including MS and SMA. For additional information, please read, Note 18, Collaborative and Other Relationships, to these consolidated financial statements.

(b) Net income and net income attributable to Biogen Inc. for 2018 include:

• Pre-tax (losses) gains related to changes in the fair value of our strategic investments of $(6.4) million, $5.4 million, $141.2 million and $(12.2) million for the first, second, third and fourth quarters, respectively.

• Pre-tax charges to acquired IPR&D of $10.0 million, $75.0 million and $27.5 million for the first, second and third quarters, respectively, for upfront payments made upon closing of asset purchase transactions. For additional information, please read Note 2, Acquisitions, to these consolidated financial statements.

• Pre-tax research and development expenses for the second quarter of $486.2 million related to the 2018 Ionis Agreement. For additional information, please read, Note 18, Collaborative and Other Relationships, to these consolidated financial statements.

• Pre-tax charge to noncontrolling interests of $50.0 million for the second quarter for a payment to Neurimmune in exchange for a 5% reduction in the previously negotiated royalty rates payable on products developed under the Neurimmune Agreement, including royalties payable on potential commercial sales of aducanumab. For additional information, please read Note 19, Investments in Variable Interest Entities, to these consolidated financial statements.

• Impairment charges related to certain intangible assets of $189.3 million and $176.8 million in the third and fourth quarters, respectively. For additional information, please read Note 6, Intangible Assets and Goodwill, to these consolidated financial statements.

• Losses (gains) related to the adjustments to the fair values of our contingent consideration obligations of $(5.6) million, $1.9 million, $(87.9) million and $79.3 million for the first, second, third and fourth quarters,

respectively. For additional information, please read Note 7, Fair Value Measurements, to these consolidated financial statements.

• Net increase to income tax expense of $135.8 million for the fourth quarter reflecting the impact of electing to record deferred taxes on GILTI. For additional information, please read Note 16, Income Taxes, to these consolidated financial statements.

•

An upfront payment of $35.0 million to Ionis, as we exercised our option in the fourth quarter to obtain a worldwide, exclusive, royalty-bearing license from Ionis to develop and commercialize tofersen. For additional information, please read Note 18, Collaborative and Other Relationships, to these consolidated financial statements.