Indebtedness

12 Months Ended

Dec. 31, 2011

Indebtedness [Abstract]

Indebtedness

12.    Indebtedness

Our indebtedness is summarized as follows:

	As of December 31,
(In millions)	2011		2010
Current portion:
Note payable to Fumedica	$	3.3	$	3.3
Credit line from Dompé		—		8.0
Financing arrangement for the sale of the San Diego facility		—		125.9
Current portion of notes payable, line of credit and other financing arrangements	$	3.3	$	137.2
Non-current portion:
6.0% Senior notes due 2013	$	449.9	$	449.8
6.875% Senior notes due 2018		592.3		597.9
Note payable to Fumedica		16.4		18.7
Financing arrangement for the construction of the Cambridge facilities		2.2		—
Non-current portion of notes payable, line of credit and other financing arrangements	$	1,060.8	$	1,066.4

The following is a summary description of our principal indebtedness as of December 31, 2011:

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 that were originally priced 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 rate on the notes if the credit rating on the notes declines below investment grade.

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 10, Derivative Instruments to these consolidated financial statements. These contracts were terminated in December 2008. Upon termination of these swaps, the carrying amount of the 6.875% Senior Notes due in 2018 was increased by $62.8 million and is being 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. As of December 31, 2011, $45.4 million remains to be amortized.

Revolving Credit Facility

We have a $360.0 million senior unsecured revolving credit facility, which we may choose to use for future working capital and general corporate purposes. The terms of this revolving credit facility include various covenants, including financial covenants that require us to not exceed a maximum leverage ratio and, under certain circumstances, an interest coverage ratio. This facility terminates in June 2012. No borrowings have been made under this credit facility and as of December 31, 2011 and 2010 we were in compliance with all applicable covenants.

Notes Payable to Fumedica

In connection with our 2006 distribution agreement with Fumedica, we issued notes totaling 61.4 million Swiss Francs which were payable to Fumedica in varying amounts from June 2008 through June 2018. Our remaining note payable to Fumedica had a present value of 18.6 million Swiss Francs ($19.7 million) and 20.7 million Swiss Franc ($22.0 million) as of December 31, 2011 and 2010, respectively.

Credit Line from Dompé

On September 6, 2011, we completed the purchase of all the remaining outstanding shares of our joint venture investment in Biogen Dompé SRL, our sales affiliate in Italy, from our joint venture partner, Dompé Farmaceutici SpA. Balances outstanding under Biogen Dompé SRL’s credit line from us and Dompé Farmaceutici SpA were repaid in connection with this transaction. For additional information related to this transaction, please read Note 2, Acquisitions to these consolidated financial statements.

Financing Arrangements

During 2011 we recorded a financing obligation in relation to the construction of the two office buildings in Cambridge, Massachusetts, which will serve as the future location of our corporate headquarters and provide office space for our commercial operations, research and development and general and administrative functions. As of December 31, 2011, the financing obligation related to cost incurred in construction of these buildings totaled approximately $2.2 million.

During 2010 we also recorded a financing obligation in connection with our sale and subsequent lease back of the San Diego facility. We have had no continuing involvement or remaining obligation related to the San Diego facility after August 31, 2011.

For additional information related to these transactions, please read Note 11, Property, Plant & Equipment to these consolidated financial statements.

Debt Maturity

Our total debt, excluding amounts related to our financing arrangements, mature as follows:

(In millions)	As of December 31, 2011
2012	$	3.4
2013		453.4
2014		3.4
2015		3.4
2016		3.4
2017 and thereafter		556.7
Total	$	1,023.7

The fair value of our debt is disclosed in Note 8, Fair Value Measurements to these consolidated financial statements.