Biogen(BIIB) - 2024 Q4 - Annual Report

Financial Performance - Net cash flow from operating activities rose to $2,875.5 million in 2024, an 85.9$1,547.2 million in 2023[491]. - Cash and cash equivalents increased to approximately $2.4 billion as of December 31, 2024, compared to approximately$1.0 billion as of December 31, 2023, primarily due to operational cash generation and proceeds from asset sales[486]. - The company reported a decrease of $259.3 million in accounts receivable, net, related to ongoing operations[488]. Investment Activities - The company incurred a net cash outflow of$799.2 million in investing activities in 2024, a significant decrease from $4,101.0 million in 2023, primarily due to cash payments for the acquisition of HI-Bio[491]. - Cash generated from operations included$437.5 million received from Samsung BioLogics related to the sale of a 49.9% equity interest in Samsung Bioepis[486]. - The increase in cash and cash equivalents was offset by $1.15 billion used for the acquisition of HI-Bio and$650.0 million for the repayment of the 2023 Term Loan[486]. Debt and Liabilities - The current portion of debt increased by $1.6 billion, primarily due to the reclassification of$1.75 billion of Senior Notes from long-term to short-term[488]. - As of December 31, 2024, the company's outstanding long-term debt was $4,547.2 million[496]. - The company has accrued income tax liabilities of approximately$234.0 million under the Transition Toll Tax as of December 31, 2024[520]. Acquisitions and Future Commitments - The company recognized $279.3 million of short-term contingent consideration from the acquisition of HI-Bio, contributing to a$184.1 million increase in accrued expenses[488]. - The company may pay up to $650.0 million in potential future milestone payments related to the acquisition of HI-Bio, with an acquisition-date fair value of approximately$485.1 million[513]. - The company could trigger potential future milestone payments of up to approximately $3.8 billion based on development plans as of December 31, 2024[515]. Capital Expenditures and Facilities - The company is constructing a new manufacturing facility in North Carolina with an estimated total investment of$195.0 million, expected to be completed in 2025[502]. - The company has approximately $509.2 million in cancellable future commitments based on existing CRO contracts as of December 31, 2024[518]. Revenue Recognition and Accounting Practices - The company recognizes product revenue when the customer obtains control of the product, typically upon delivery[527]. - The company amortizes intangible assets related to marketed products using the economic consumption method based on revenue generated from those products[542]. - The fair value of contingent consideration from business combinations is revalued each reporting period, with changes recorded as adjustments to gain or loss on fair value remeasurement[544]. Impairment and Reserves - For the year ended December 31, 2024, impairment charges incurred were approximately$60.2 million related to clinical programs acquired from Reata and Samsung Bioepis[541]. - The company estimates reserves for discounts and allowances based on historical experience, current contractual requirements, and market trends[530]. - As of December 31, 2024, a 10.0% change in discounts, contractual adjustments, and reserves would have resulted in a decrease of pre-tax earnings by approximately $351.9 million[531].