Accounts Receivable, Net

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Accounts Receivable, Net

Accounts Receivable, Net

Accounts receivable as of June 30, 2018 of $3,005.1 million (December 31, 2017: $3,009.8 million), are stated at the invoiced amount and net of reserve for discounts and doubtful accounts of $335.5 million (December 31, 2017: $271.5 million).

Reserve for discounts and doubtful accounts consists of the following:

(In millions)	2018			2017
As of January 1,	$	271.5		$	169.6
Provision charged to operations	1,204.4			600.3
Payments/credits	(1,140.4		)	(587.9		)
As of June 30,	$	335.5		$	182.0

Reserve for discounts and doubtful accounts increased for the six months ended June 30, 2018 compared to the corresponding period in 2017, primarily due to increased usage of biological distributors, higher invoice price to those distributors, and the resulting increase in chargebacks for the distribution of Shire’s Hematology and Immunology products.

As of June 30, 2018, accounts receivable included $47.6 million (December 31, 2017: $106.6 million) related to royalties receivable.