Name: Biogen Inc. (NASDAQ:BIIB) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Download chart

Biogen Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	1,727,600)	4,060,500)	5,888,500)	4,474,000)	2,670,100)
Depreciation and amortization	487,700)	457,200)	464,700)	650,500)	1,081,000)
Impairment of intangible assets	629,300)	209,700)	215,900)	366,100)	—)
Excess and obsolescence charges related to inventory	167,600)	26,600)	52,200)	—)	—)
Acquired in-process research and development	18,000)	75,000)	—)	112,500)	120,000)
Share-based compensation	238,600)	198,300)	182,300)	157,500)	128,000)
Contingent consideration	(50,700)	(86,300)	(63,700)	(12,300)	62,700)
(Gain) loss on divestiture of Hillerød, Denmark manufacturing operations	—)	(92,500)	55,300)	—)	—)
Deferred income taxes	(426,800)	149,000)	67,100)	108,300)	91,700)
(Gain) loss on strategic investments	826,800)	(681,800)	(147,300)	(124,800)	—)
(Gain) loss on equity method investment	(34,900)	(3,300)	77,400)	—)	—)
Other	202,200)	104,600)	86,900)	55,700)	162,100)
Accounts receivable	324,800)	2,800)	68,800)	(205,200)	(435,600)
Due from anti-CD20 therapeutic programs	1,200)	176,700)	(63,300)	5,700)	(232,000)
Inventory	(462,400)	(316,300)	(19,200)	(52,100)	(94,500)
Accrued expense and other current liabilities	(95,400)	154,200)	240,200)	465,500)	(227,400)
Income tax assets and liabilities	230,800)	(67,500)	16,100)	321,700)	1,303,900)
Other changes in operating assets and liabilities, net	(144,500)	(137,100)	(43,300)	(135,400)	(79,000)
Changes in operating assets and liabilities, net	(145,500)	(187,200)	199,300)	400,200)	235,400)
Adjustments to reconcile net income to net cash flows from operating activities	1,912,300)	169,300)	1,190,100)	1,713,700)	1,880,900)
Net cash flow provided by operating activities	3,639,900)	4,229,800)	7,078,600)	6,187,700)	4,551,000)
Purchases of property, plant and equipment	(258,100)	(424,800)	(514,500)	(770,600)	(867,400)
Proceeds from sales and maturities of marketable securities	3,405,400)	7,299,400)	6,007,000)	9,173,700)	5,565,900)
Purchases of marketable securities	(3,808,700)	(6,397,700)	(5,252,600)	(7,694,800)	(5,355,200)
Contingent consideration paid related to Fumapharm AG acquisition	—)	—)	(300,000)	(1,500,000)	(1,200,000)
Acquisition of Nightstar Therapeutics plc, net of cash acquired	—)	—)	(744,400)	—)	—)
Purchase of Ionis Pharmaceuticals, Inc. stock	—)	—)	—)	(462,900)	—)
Purchase of Sangamo Therapeutics, Inc. stock	—)	(141,800)	—)	—)	—)
Purchase of Denali Therapeutics Inc. stock	—)	(423,700)	—)	—)	—)
Purchase of Sage Therapeutics, Inc. stock	—)	(441,000)	—)	—)	—)
Proceeds from divestiture of Hillerød, Denmark manufacturing operations	28,100)	—)	923,700)	—)	—)
Acquired in-process research and development	(18,000)	(75,000)	—)	(112,500)	(120,000)
Acquisitions of intangible assets	(18,800)	(52,000)	(155,000)	(3,000)	(975,400)
Investment in Samsung Bioepis	—)	—)	—)	(676,600)	—)
Proceeds from sales of strategic investments	93,500)	74,900)	479,300)	—)	—)
Other	12,900)	(26,900)	27,000)	400)	(11,000)
Net cash flow (used in) provided by investing activities	(563,700)	(608,600)	470,500)	(2,046,300)	(2,963,100)
Purchase of treasury stock	(1,800,000)	(6,679,100)	(5,868,300)	(4,352,600)	(1,365,400)
Payments related to issuance of stock for share-based compensation arrangements, net	(700)	(4,600)	—)	—)	—)
Repayments of borrowings and premiums paid on debt exchange	(170,000)	—)	—)	—)	—)
Proceeds from borrowings	—)	2,967,400)	—)	—)	—)
Repayments of borrowings	—)	(1,500,000)	—)	(3,200)	(560,900)
Net contribution (distribution) to noncontrolling interests	(94,400)	(71,000)	4,300)	(36,400)	(134,100)
Net cash contribution to Bioverativ, Inc.	—)	—)	—)	—)	(302,700)
Contingent consideration payments	—)	—)	—)	(58,200)	(3,000)
Other	(21,100)	14,600)	3,600)	(21,600)	(13,900)
Net cash flow used in financing activities	(2,086,200)	(5,272,700)	(5,860,400)	(4,472,000)	(2,380,000)
Effect of exchange rate changes on cash and cash equivalents	(59,800)	69,000)	400)	(18,600)	39,400)
Net increase (decrease) in cash and cash equivalents	930,200)	(1,582,500)	1,689,100)	(349,200)	(752,700)
Cash and cash equivalents, beginning of the year	1,331,200)	2,913,700)	1,224,600)	1,573,800)	2,326,500)
Cash and cash equivalents, end of the year	2,261,400)	1,331,200)	2,913,700)	1,224,600)	1,573,800)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Operating cash flow experienced a period of growth peaking in 2019 before entering a downward trajectory. Net income reached a high of 5.89 billion USD in 2019 but declined sharply to 1.73 billion USD by 2021. Despite this decline in net income, net cash flow provided by operating activities remained positive throughout the period, although it decreased from a peak of 7.08 billion USD in 2019 to 3.64 billion USD in 2021.

Operating Cash Flow Drivers: Non-cash adjustments significantly influenced operating cash flows. Depreciation and amortization showed a steady decline from 1.08 billion USD in 2017 to 487.7 million USD in 2021. Conversely, share-based compensation expenses increased consistently, rising from 128 million USD in 2017 to 238.6 million USD in 2021. Impairment of intangible assets peaked in 2021 at 629.3 million USD, contributing to the reconciliation of net income to cash flows.
Investing Activities and Capital Allocation: Investing activities were characterized by a reduction in capital expenditures for property, plant, and equipment, which fell from 867.4 million USD in 2017 to 258.1 million USD in 2021. Strategic investments became a prominent feature in 2020, with significant acquisitions of stock in Sangamo Therapeutics, Denali Therapeutics, and Sage Therapeutics. A notable liquidity event occurred in 2019 with the divestiture of manufacturing operations in Hillerød, Denmark, generating 923.7 million USD in proceeds.
Marketable Securities Management: There is evidence of active liquidity management through the frequent purchase and sale of marketable securities. High volumes of turnover are observed annually, such as in 2020, where 7.30 billion USD in proceeds were offset by 6.40 billion USD in purchases. This pattern suggests a strategy of maintaining high liquidity to fund operations and strategic acquisitions.
Financing Activities and Shareholder Returns: Financing activities consistently resulted in net cash outflows, driven primarily by aggressive share repurchase programs. Treasury stock purchases peaked in 2020 at 6.68 billion USD, having risen steadily from 1.37 billion USD in 2017. To support these outflows and other obligations, 2.97 billion USD in borrowings was secured in 2020, which was partially offset by 1.50 billion USD in repayments during the same year.
Overall Liquidity Position: The cash and cash equivalents balance fluctuated significantly over the five-year period. The balance reached a peak of 2.91 billion USD at the end of 2019, dropped to 1.33 billion USD by the end of 2020, and recovered to 2.26 billion USD by the end of 2021. This volatility reflects the balance between operating cash generation, strategic investment outflows, and substantial shareholder returns.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?