Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



Condensed Consolidating Statements of Operations
(Unaudited, In millions)
Three months ended March 31, 2018	Shire plc (Parent Guarantor)			SAIIDAC (SAIIDAC Notes Subsidiary Issuer)			Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor)			Non-Guarantor Non-Issuer Subsidiaries			Non-Guarantor Subsidiaries of Baxalta Notes			Eliminations			Consolidated
Revenues:
Product sales	$	—		$	—		$	—		$	3,637.1		$	3,637.1		$	—		$	3,637.1
Royalties and other revenues	—			—			—			128.6			128.6			—			128.6
Total revenues	—			—			—			3,765.7			3,765.7			—			3,765.7
Costs and expenses:
Cost of sales	—			—			—			1,132.4			1,132.4			—			1,132.4
Research and development	—			—			—			405.2			405.2			—			405.2
Selling, general and administrative	11.9			—			2.9			790.0			790.0			—			804.8
Amortization of acquired intangible assets	—			—			—			484.0			484.0			—			484.0
Integration and acquisition costs	4.4			—			2.1			233.2			233.2			—			239.7
Reorganization costs	—			—			—			5.3			5.3			—			5.3
Total operating expenses	16.3			—			5.0			3,050.1			3,050.1			—			3,071.4

Operating income/(loss) from continuing operations	(16.3		)	—			(5.0		)	715.6			715.6			—			694.3

Interest income/(expense), net	(32.3		)	(4.4		)	(21.3		)	(66.4		)	(70.8		)	—			(124.4		)
Other income/(expense), net	(0.6		)	—			2.0			21.8			21.8			—			23.2
Total other income/(expense), net	(32.9		)	(4.4		)	(19.3		)	(44.6		)	(49.0		)	—			(101.2		)

Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees	(49.2		)	(4.4		)	(24.3		)	671.0			666.6			—			593.1
Income taxes	0.9			1.1			4.4			(49.7		)	(48.6		)	—			(43.3		)
Equity in earnings/(losses) of equity method investees, net of taxes	598.9			—			92.6			0.8			0.8			(691.5		)	0.8
Income/(loss) from continuing operations, net of taxes	550.6			(3.3		)	72.7			622.1			618.8			(691.5		)	550.6
Net income/(loss)	550.6			(3.3		)	72.7			622.1			618.8			(691.5		)	550.6
Comprehensive income/(loss)	$	1,021.7		$	(3.3	)	$	572.8		$	1,093.2		$	1,089.9		$	(1,662.7	)	$	1,021.7



Condensed Consolidating Statements of Operations
(Unaudited, In millions)
Three months ended March 31, 2017	Shire plc (Parent Guarantor)			SAIIDAC (Subsidiary Issuer)			Baxalta Inc. (Subsidiary Issuer)			Non-Guarantor Non-Issuer Subsidiaries			Non-Guarantor Subsidiaries of Baxalta Notes			Eliminations			Consolidated
Revenues:
Product sales	$	—		$	—		$	—		$	3,412.3		$	3,412.3		$	—		$	3,412.3
Royalties and other revenues	—			—			—			160.0			160.0			—			160.0
Total revenues	—			—			—			3,572.3			3,572.3			—			3,572.3
Costs and expenses:
Cost of sales	—			—			1.2			1,325.8			1,325.8			—			1,327.0
Research and development	—			—			—			379.3			379.3			—			379.3
Selling, general and administrative	14.0			—			5.7			869.2			869.2			—			888.9
Amortization of acquired intangible assets	—			—			—			364.0			364.0			—			364.0
Integration and acquisition costs	—			—			25.6			90.4			90.4			—			116.0
Reorganization costs	—			—			—			5.5			5.5			—			5.5
Gain on sale of product rights	—			—			—			(5.5		)	(5.5		)	—			(5.5		)
Total operating expenses	14.0			—			32.5			3,028.7			3,028.7			—			3,075.2

Operating income/(loss) from continuing operations	(14.0		)	—			(32.5		)	543.6			543.6			—			497.1

Interest income/(expense), net	(30.3		)	5.4			(21.4		)	(92.9		)	(87.5		)	—			(139.2		)
Other income/(expense), net	—			—			0.5			4.0			4.0			—			4.5
Total other income/(expense), net	(30.3		)	5.4			(20.9		)	(88.9		)	(83.5		)	—			(134.7		)

Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees	(44.3		)	5.4			(53.4		)	454.7			460.1			—			362.4
Income taxes	1.5			(1.3		)	(19.9		)	12.9			11.6			—			(6.8		)
Equity in earnings/(losses) of equity method investees, net of taxes	417.8			—			(126.8		)	(0.8		)	(0.8		)	(291.0		)	(0.8		)
Income/(loss) from continuing operations, net of taxes	375.0			4.1			(200.1		)	466.8			470.9			(291.0		)	354.8
Gain from discontinued operations, net of taxes	—			—			—			20.2			20.2			—			20.2
Net income/(loss)	375.0			4.1			(200.1		)	487.0			491.1			(291.0		)	375.0
Comprehensive income/(loss)	$	645.5		$	4.1		$	48.7		$	754.0		$	758.1		$	(806.8	)	$	645.5

Condensed Balance Sheet



Condensed Consolidating Balance Sheets
(Unaudited, In millions)
As of March 31, 2018	Shire plc (Parent Guarantor)		SAIIDAC (SAIIDAC Notes Subsidiary Issuer)		Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor)		Non-Guarantor Non-Issuer Subsidiaries		Non-Guarantor Subsidiaries of Baxalta Notes		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	—	$	317.7	$	317.7	$	—		$	317.7
Restricted cash	—		—		—		35.5		35.5		—			35.5
Accounts receivable, net	—		—		—		3,140.5		3,140.5		—			3,140.5
Inventories	—		—		—		3,340.8		3,340.8		—			3,340.8
Prepaid expenses and other current assets	—		1.6		94.1		984.8		986.4		—			1,080.5
Intercompany receivables	—		37.6		—		4,510.5		4,548.1		(4,548.1		)	—
Short term intercompany loan receivable	—		974.0		—		—		974.0		(974.0		)	—
Total current assets	—		1,013.2		94.1		12,329.8		13,343.0		(5,522.1		)	7,915.0
Investments	44,476.9		—		39,557.0		13,223.5		13,223.5		(96,985.6		)	271.8
Property, plant and equipment (PP&E), net	—		—		5.6		6,454.5		6,454.5		—			6,460.1
Goodwill	—		—		—		19,988.6		19,988.6		—			19,988.6
Intangible assets, net	—		—		—		32,864.3		32,864.3		—			32,864.3
Deferred tax asset	—		—		304.1		189.2		189.2		(304.1		)	189.2
Long term intercompany loan receivable	—		12,053.3		1,386.7		—		12,053.3		(13,440.0		)	—
Other non-current assets	—		2.5		—		177.3		179.8		—			179.8
Total assets	$	44,476.9	$	13,069.0	$	41,347.5	$	85,227.2	$	98,296.2	$	(116,251.8	)	$	67,868.8
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	1.0	$	7.5	$	67.0	$	3,863.5	$	3,871.0	$	—		$	3,939.0
Short term borrowings and capital leases	—		974.0		749.5		63.7		1,037.7		—			1,787.2
Intercompany payables	3,605.5		—		942.6		—		—		(4,548.1		)	—
Short term intercompany loan payable	—		—		—		974.0		974.0		(974.0		)	—
Other current liabilities	578.0		—		3.1		637.3		637.3		—			1,218.4
Total current liabilities	4,184.5		981.5		1,762.2		5,538.5		6,520.0		(5,522.1		)	6,944.6
Long term borrowings and capital leases	—		12,053.3		4,292.4		388.0		12,441.3		—			16,733.7
Deferred tax liability	—		—		—		5,020.5		5,020.5		(304.1		)	4,716.4
Long term intercompany loan payable	2,892.4		—		—		10,547.6		10,547.6		(13,440.0		)	—
Other non-current liabilities	—		—		86.9		1,987.2		1,987.2		—			2,074.1
Total liabilities	7,076.9		13,034.8		6,141.5		23,481.8		36,516.6		(19,266.2		)	30,468.8
Total equity	37,400.0		34.2		35,206.0		61,745.4		61,779.6		(96,985.6		)	37,400.0
Total liabilities and equity	$	44,476.9	$	13,069.0	$	41,347.5	$	85,227.2	$	98,296.2	$	(116,251.8	)	$	67,868.8



Condensed Consolidating Balance Sheets
(Unaudited, In millions)
As of December 31, 2017	Shire plc (Parent Guarantor)		SAIIDAC (SAIIDAC Notes Subsidiary Issuer)		Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor)		Non-Guarantor Non-Issuer Subsidiaries		Non-Guarantor Subsidiaries of Baxalta Notes		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	0.5	$	471.9	$	471.9	$	—		$	472.4
Restricted cash	—		—		—		39.4		39.4		—			39.4
Accounts receivable, net	—		—		—		3,009.8		3,009.8		—			3,009.8
Inventories	—		—		—		3,291.5		3,291.5		—			3,291.5
Prepaid expenses and other current assets	—		1.6		95.2		698.5		700.1		—			795.3
Intercompany receivables	—		120.2		—		4,682.3		4,802.5		(4,802.5		)	—
Short term intercompany loan receivable	—		2,006.3		—		—		2,006.3		(2,006.3		)	—
Total current assets	—		2,128.1		95.7		12,193.4		14,321.5		(6,808.8		)	7,608.4
Investments	43,204.3		—		38,924.6		13,059.4		13,059.4		(94,947.2		)	241.1
Property, plant and equipment (PP&E), net	—		—		7.6		6,627.8		6,627.8		—			6,635.4
Goodwill	—		—		—		19,831.7		19,831.7		—			19,831.7
Intangible assets, net	—		—		—		33,046.1		33,046.1		—			33,046.1
Deferred tax asset	—		—		304.1		188.8		188.8		(304.1		)	188.8
Long term intercompany loan receivable	—		12,050.2		1,609.3		—		12,050.2		(13,659.5		)	—
Other non-current assets	—		2.8		—		202.6		205.4		—			205.4
Total assets	$	43,204.3	$	14,181.1	$	40,941.3	$	85,149.8	$	99,330.9	$	(115,719.6	)	$	67,756.9
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	0.2	$	85.9	$	18.1	$	4,080.3	$	4,166.2	$	—		$	4,184.5
Short term borrowings and capital leases	—		2,006.3		748.8		33.6		2,039.9		—			2,788.7
Intercompany payables	3,585.3		—		1,217.2		—		—		(4,802.5		)	—
Short term intercompany loan payable	—		—		—		2,006.3		2,006.3		(2,006.3		)	—
Other current liabilities	573.5		—		10.7		324.6		324.6		—			908.8
Total current liabilities	4,159.0		2,092.2		1,994.8		6,444.8		8,537.0		(6,808.8		)	7,882.0
Long term borrowings and capital leases	—		12,050.2		4,308.9		393.3		12,443.5		—			16,752.4
Deferred tax liability	—		—		—		5,052.3		5,052.3		(304.1		)	4,748.2
Long term intercompany loan payable	2,868.9		—		—		10,790.6		10,790.6		(13,659.5		)	—
Other non-current liabilities	—		—		70.0		2,127.9		2,127.9		—			2,197.9
Total liabilities	7,027.9		14,142.4		6,373.7		24,808.9		38,951.3		(20,772.4		)	31,580.5
Total equity	36,176.4		38.7		34,567.6		60,340.9		60,379.6		(94,947.2		)	36,176.4
Total liabilities and equity	$	43,204.3	$	14,181.1	$	40,941.3	$	85,149.8	$	99,330.9	$	(115,719.6	)	$	67,756.9

Condensed Cash Flow Statement



Condensed Consolidating Statements of Cash Flows
(Unaudited, In millions)
Three months ended March 31, 2018	Shire plc (Parent Guarantor)			SAIIDAC (SAIIDAC Notes Subsidiary Issuer)			Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor)			Non-Guarantor Non-Issuer Subsidiaries			Non-Guarantor Subsidiaries of Baxalta Notes			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by/(used in) operating activities	$	(4.6	)	$	(0.5	)	$	(5.6	)	$	1,021.0		$	1,020.5		$	—		$	1,010.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Transactions with subsidiaries	—			(584.7		)	(233.9		)	(1,858.4		)	(2,443.1		)	2,677.0			—
Purchases of PP&E	—			—			1.9			(179.7		)	(179.7		)	—			(177.8		)
Other, net	—			—			0.1			(11.2		)	(11.2		)	—			(11.1		)
Net cash provided by/(used in) investing activities	—			(584.7		)	(231.9		)	(2,049.3		)	(2,634.0		)	2,677.0			(188.9		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving line of credit, long term and short term borrowings	—			75.0			—			348.3			423.3			—			423.3
Repayment of revolving line of credit, long term and short term borrowings	—			(1,110.0		)	—			(329.4		)	(1,439.4		)	—			(1,439.4		)
Proceeds from intercompany borrowings	4.5			1,620.2			233.7			818.6			2,438.8			(2,677.0		)	—
Proceeds from exercise of options	0.1			—			3.3			37.1			37.1			—			40.5
Other, net	—			—			—			(6.5		)	(6.5		)	—			(6.5		)
Net cash provided by/(used in) financing activities	4.6			585.2			237.0			868.1			1,453.3			(2,677.0		)	(982.1		)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	—			—			—			2.1			2.1			—			2.1
Net decrease in cash and cash equivalents and restricted cash	—			—			(0.5		)	(158.1		)	(158.1		)	—			(158.6		)
Cash and cash equivalents and restricted cash at beginning of period	—			—			0.5			511.3			511.3			—			511.8
Cash and cash equivalents and restricted cash at end of period	$	—		$	—		$	—		$	353.2		$	353.2		$	—		$	353.2



Condensed Consolidating Statements of Cash Flows
(Unaudited, In millions)
Three months ended March 31, 2017	Shire plc (Parent Guarantor)			SAIIDAC (SAIIDAC Notes Subsidiary Issuer)			Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor)			Non-Guarantor Non-Issuer Subsidiaries			Non-Guarantor Subsidiaries of Baxalta Notes			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided/(used in) operating activities	$	(9.6	)	$	(84.1	)	$	(0.3	)	$	553.1		$	469.0		$	—		$	459.1
CASH FLOWS FROM INVESTING ACTIVITIES:
Transactions with subsidiaries	(760.6		)	—			(110.5		)	(733.2		)	(733.2		)	1,604.3			—
Purchases of PP&E	—			—			(2.4		)	(210.1		)	(210.1		)	—			(212.5		)
Other, net	0.3			—			2.0			(1.1		)	(1.1		)	—			1.2
Net cash provided by/(used in) investing activities	(760.3		)	—			(110.9		)	(944.4		)	(944.4		)	1,604.3			(211.3		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving line of credit, long term and short term borrowings	1,400.0			—			—			1.9			1.9			—			1,401.9
Repayment of revolving line of credit, long term and short term borrowings	(820.0		)	(1,000.0		)	—			(5.7		)	(1,005.7		)	—			(1,825.7		)
Proceeds from intercompany borrowings	189.8			1,084.1			69.3			261.1			1,345.2			(1,604.3		)	—
Proceeds from exercise of options	0.1			—			2.9			39.1			39.1			—			42.1
Other, net	—			—			(2.4		)	(17.7		)	(17.7		)	—			(20.1		)
Net cash provided by/(used in) financing activities	769.9			84.1			69.8			278.7			362.8			(1,604.3		)	(401.8		)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	—			—			—			2.7			2.7			—			2.7
Net decrease in cash and cash equivalents and restricted cash	—			—			(41.4		)	(109.9		)	(109.9		)	—			(151.3		)
Cash and cash equivalents and restricted cash at beginning of period	—			—			41.7			512.7			512.7			—			554.4
Cash and cash equivalents and restricted cash at end of period	$	—		$	—		$	0.3		$	402.8		$	402.8		$	—		$	403.1