Integration and Acquisition Costs

For the three months ended March 31, 2017, Shire recorded Integration and acquisition costs of $116.0 million primarily due to the acquisition and integration of Baxalta. These costs include $36.9 million of employee severance and acceleration of stock compensation, $35.2 million of third-party professional fees and $24.5 million of expenses associated with facility consolidations. The Company expects the majority of those expenses, except for certain costs related to facility consolidations, to be paid within the next 12 months.

As part of the Company’s activities to integrate Baxalta, it terminated certain employees and announced plans to close certain offices, which includes lease termination costs. The integration of Baxalta is estimated to be completed by mid to late 2019 and the Company is continuing to evaluate the total costs expected to be incurred.

The following table summarizes the type and amount of integration costs recorded as of March 31, 2017:



(In millions)	Severance and employee benefits			Lease terminations			Total
As of January 1,	$	74.0		$	—		$	74.0
Amount charged to integration costs	23.2			24.5			47.7
Paid/utilized	(30.9		)	(2.4		)	(33.3		)
As of March 31,	$	66.3		$	22.1		$	88.4

For the three months ended March 31, 2016, Shire recorded integration and acquisition costs of $91.1 million primarily related to the acquisition and integration of Dyax and the proposed acquisition of Baxalta. These costs primarily consist of $58.5 million acquisition costs including legal, investment banking and other transaction-related fees, as well as $11.0 million of employee severance and acceleration of stock compensation, $10.0 million of third-party professional fees and an $11.4 million change in fair value of contingent consideration. The Company did not have any reserve related to employee termination for the three months ended March 31, 2016.