Biogen Inc. (BIIB)

The provision for income taxes includes federal, state, local and foreign taxes. Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be recovered or settled. Biogen evaluates the realizability of the deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized.

All tax effects associated with intercompany transfers of assets within Biogen's consolidated group, both current and deferred, are recorded as a prepaid tax or deferred charge and recognized through the consolidated statements of income when the asset transferred is sold to a third party or otherwise recovered through amortization of the asset's remaining economic life. If the asset transferred becomes impaired, for example through the obsolescence of inventory or discontinuation of a research program, Biogen will expense any remaining deferred charge or prepaid tax.

Biogen accounts for uncertain tax positions using a "more-likely-than-not" threshold for recognizing and resolving uncertain tax positions. Biogen evaluates uncertain tax positions on a quarterly basis and considers various factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, information obtained during in process audit activities and changes in facts or circumstances related to a tax position. Biogen also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense.

Source: 10-K (filing date: 2018-02-01).

Biogen Inc., income tax expense (benefit), continuing operations

USD $ in thousands

	12 months ended	Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014		Dec 31, 2013
	Federal
	State
	Foreign
	Current
	Federal
	State
	Foreign
	Deferred
	Income tax expense

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

Biogen Inc., effective income tax rate (EITR) reconciliation

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	U.S. federal statutory tax rate
	State taxes
	Taxes on foreign earnings
	Credits and net operating loss utilization
	Purchased intangible assets
	Manufacturing deduction
	2017 Tax Act
	Impairment of ZINBRYTA related tax assets
	Other permanent items
	Other
	Effective tax rate

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

Biogen Inc., components of deferred tax assets and liabilities

USD $ in thousands

		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014		Dec 31, 2013
	Tax credits
	Inventory, other reserves, and accruals
	Intangibles, net
	Net operating loss
	Share-based compensation
	Other
	Deferred tax assets, gross
	Valuation allowance
	Deferred tax assets
	Purchased intangible assets
	Unrealized gain on investments and cumulative translation adjustment
	Depreciation, amortization and other
	Deferred tax liabilities
	Deferred tax assets and liabilities, net

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

Biogen Inc., adjustments to financial data

USD $ in thousands

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Adjustment to Total Liabilities
	Total liabilities (as reported)
	Less: Noncurrent deferred tax liabilities, net
	Total liabilities (adjusted)
	Adjustment to Total Biogen Inc. Shareholders' Equity
	Total Biogen Inc. shareholders' equity (as reported)
	Less: Net deferred tax assets (liabilities)
	Total Biogen Inc. shareholders' equity (adjusted)
	Adjustment to Net Income Attributable To Biogen Inc.
	Net income attributable to Biogen Inc. (as reported)
	Add: Deferred income tax expense (benefit)
	Net income attributable to Biogen Inc. (adjusted)

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

Biogen Inc., Financial Data: Reported vs. Adjusted

Biogen Inc., adjusted ratios

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Net Profit Margin
	Reported net profit margin
	Adjusted net profit margin
	Financial Leverage
	Reported financial leverage
	Adjusted financial leverage
	Return on Equity (ROE)
	Reported ROE
	Adjusted ROE
	Return on Assets (ROA)
	Reported ROA
	Adjusted ROA

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

Biogen Inc., Ratios: Reported vs. Adjusted

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Net income attributable to Biogen Inc.
	Revenues
	Ratio
	Net profit margin1
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Adjusted net income attributable to Biogen Inc.
	Revenues
	Ratio
	Adjusted net profit margin2

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

2017 Calculations

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Total assets
	Total Biogen Inc. shareholders' equity
	Ratio
	Financial leverage1
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Total assets
	Adjusted total Biogen Inc. shareholders' equity
	Ratio
	Adjusted financial leverage2

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

2017 Calculations

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Net income attributable to Biogen Inc.
	Total Biogen Inc. shareholders' equity
	Ratio
	ROE1
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Adjusted net income attributable to Biogen Inc.
	Adjusted total Biogen Inc. shareholders' equity
	Ratio
	Adjusted ROE2

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

2017 Calculations

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Net income attributable to Biogen Inc.
	Total assets
	Ratio
	ROA1
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Adjusted net income attributable to Biogen Inc.
	Total assets
	Ratio
	Adjusted ROA2

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04), 10-K (filing date: 2014-02-06).

2017 Calculations