10-Q
MEDICINES CO /DE filed this form 10-Q on 9 Nov 2017
- velhartice.info

Interest Expense:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
Change $
 
Change %
 
2017
 
2016
 
Change $
 
Change %
 
(in thousands)
 
 
 
(in thousands)
 
 
Interest expense
$
11,886

 
$
12,089

 
$
(203
)
 
(1.7
)%
 
$
36,898

 
$
32,198

 
$
4,700

 
14.6
%

During the three and nine months ended September 30, 2017, we recorded approximately $11.9 million and $36.9 million, respectively, in interest expense related to the 2017 Notes, 2022 Notes, and 2023 Notes as compared to $12.1 million and $32.2 million, respectively, in interest expense related to the 2017 Notes and 2022 Notes during the three and nine months ended September 30, 2016. The decrease in interest expense in the three months ended September 30, 2017 compared to the three months ended September 30, 2016 is due to the settlement of the 2017 Notes during the second quarter of 2017. The increase in interest expense in the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 is due to an increase in the debt as well as a higher effective interest rate on the 2023 notes.

Other Income:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
Change $
 
Change %
 
2017
 
2016
 
Change $
 
Change %
 
(in thousands)
 
 
 
(in thousands)
 
 
Other income
$
71

 
$
865

 
$
(794
)
 
(91.8
)%
 
$
916

 
$
741

 
$
175

 
23.6
%

Other income, which is comprised of interest income and gains and losses on foreign currency transactions, decreased by $0.8 million during the three months ended September 30, 2017 as compared to the three months ended September 30, 2016, primarily due to losses on foreign currency transactions partially offset by increases in interest income on available for sale securities. Other increased by $0.2 million during the nine months ended September 30, 2017 as compared to the nine months ended September 30, 2016, primarily due to increases in interest income on available for sale securities partially offset by losses on foreign currency transactions.

Benefit (Provision) for Income Taxes:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
Change $
 
Change %
 
2017
 
2016
 
Change $
 
Change %
 
(in thousands)
 
 
 
(in thousands)
 
 
Benefit (provision) for income taxes
$
66,637

 
$
(163
)
 
$
66,800

 
*
 
$
89,607

 
$
(220
)
 
$
89,827

 
*
_______________________________________
*    Represents a change in excess of 100%

For the three months ended September 30, 2017 and 2016, we recorded a benefit for income taxes of $66.6 million and a provision for income taxes of $0.2 million, respectively. Our worldwide effective income tax rates for the three months ended September 30, 2017 and 2016 was approximately 68.8% and 0.2%, respectively.

For the nine months ended September 30, 2017 and 2016, we recorded a benefit for income taxes of $89.6 million and a provision for income taxes of $0.2 million, respectively. Our worldwide effective income tax rates for the nine months ended September 30, 2017 and 2016 was approximately 14.5% and 4.1%, respectively.

For the three and nine months ended September 30, 2017, our benefit for income taxes is primarily attributable to a reduction in our recorded valuation allowance against our deferred tax assets as a result of the commencement of amortization of IPR&D associated with Vabomore upon approval by the FDA, which resulted in a discrete benefit of $66.7 million, and the impairment of IPR&D associated with MDCO-700, which resulted in a discrete benefit of $23.0 million. For further details, see Note 9, “Intangible Assets and Goodwill,” in the accompanying notes to condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.



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