Accounts Receivable

9 Months Ended

Sep. 30, 2011

Accounts Receivable [Abstract]

Accounts Receivable

5.   Accounts Receivable

Our accounts receivable primarily arise from product sales in the U.S. and Europe and primarily represent amounts due from our wholesale distributors, large pharmaceutical companies, public hospitals and other government entities. The majority of our accounts receivable have standard payment terms which are generally between 30 and 90 days. 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. We provide reserves against trade receivables for estimated losses that may result from a customer’s inability to pay. Amounts determined to be uncollectible are charged or written-off against the reserve. To date, such losses have not exceeded management’s estimates.

Concentrations of credit risk with respect to receivables, which are typically unsecured, are limited due to the wide variety of customers and markets using our products, as well as their dispersion across many different geographic areas. We monitor economic conditions, including volatility associated with international economies, and related impacts on the relevant financial markets and our business, especially in light of sovereign credit issues. The credit and economic conditions within Italy, Spain, Portugal and Greece, among other members of the European Union, have deteriorated. These conditions have increased, and may continue to increase, the average length of time that it takes to collect on our accounts receivable outstanding in these countries.

Our net accounts receivable balances from product sales in these countries are summarized as follows:

	As of September 30, 2011
	Current		Non-Current
	Balance Included		Balance Included
	within Accounts		within Investments
(In millions)	Receivable, net		and Other Assets		Total
Spain	$	58.5	$	66.0	$	124.5
Italy		40.2		—		40.2
Portugal		21.0		11.7		32.7
Greece		4.2		—		4.2

	As of December 31, 2010
	Current		Non-Current
	Balance Included		Balance Included
	within Accounts		within Investments
(In millions)	Receivable, net		and Other Assets		Total
Spain	$	70.8	$	29.8	$	100.6
Italy		103.2		14.8		118.0
Portugal		17.8		5.5		23.3
Greece		3.9		—		3.9

Approximately $65.0 million and $45.0 million of the aggregate balances for these countries were outstanding for more than one year as of September 30, 2011 and December 31, 2010, respectively. Amounts included as a component of investments and other assets within our condensed consolidated balance sheets represent amounts that are expected to be collected beyond one year.

In connection with our purchase of the noncontrolling interest in our joint venture investments in Biogen Dompé SRL, we entered into a credit assignment agreement with Dompé Farmaceutici SpA. Under the terms of this agreement, Dompé Farmaceutici SpA purchased all of Biogen Dompé SRL’s outstanding receivables as of June 30, 2011, adjusted for cash received through September 5, 2011, for $104.6 million. We have no retained interests in these receivables and have accounted for this transaction as a sale recognizing a loss of $1.8 million upon their disposition. For additional information related to these transactions, please read Note 2, Acquisitions to these condensed consolidated financial statements. As of September 30, 2011, our accounts receivable balances in Italy totaled $40.2 million, all of which resulted from sales of product subsequent to June 30, 2011.