Agreements and Transactions with Baxter

3 Months Ended

Mar. 31, 2018

In connection with Baxalta’s separation from Baxter on July 1, 2015, Baxalta and Baxter entered into several separation-related agreements that provided a framework for Baxalta’s relationship with Baxter after the separation. These agreements, among others, included a manufacturing and supply agreement, a transition services agreement and a tax matters agreement. For further details on existing agreements with Baxter, refer to Note 28, Agreements and Transactions with Baxter, of Shire's Annual Report on Form 10-K for the year ended December 31, 2017.

During the three months ended March 31, 2018, the Company reported revenues associated with the manufacturing and supply agreement with Baxter of approximately $49.1 million (2017: $40.3 million) and Selling, general and administrative expense associated with the transition services agreement with Baxter of approximately $7.6 million (2017: $18.9 million). Net tax-related indemnification liabilities as of March 31, 2018, associated with the tax matters agreement with Baxter are discussed in Note 19, Commitments and Contingencies, of these Unaudited Consolidated Financial Statements.

Amounts due from or to Baxter consist of the following:



(In millions)	March 31, 2018		December 31, 2017
Accounts receivable from Baxter	$	104.4	$	103.1
Accounts payable to Baxter (current)	33.8		63.2
Accounts payable to Baxter (non-current)	59.6		59.6

Accounts receivable from Baxter are reported in Prepaid expenses and other current assets, and Accounts payable to Baxter (current) and (non-current) are reported in Other current liabilities and Other non-current liabilities, respectively, in these Unaudited Consolidated Balance Sheets.