Dispositions and Assets Held for Sale

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

On April 16, 2018, the Company entered into a definitive agreement with Servier to sell its Oncology franchise. Under the terms of the agreement, Servier has agreed to acquire Shire’s Oncology franchise for a total consideration of $2.4 billion, in cash, upon completion. The transaction covers the transfer of Shire’s Oncology franchise including marketed products and IPR&D, which were classified as held for sale and included within Held for sale and other current assets in these Unaudited Consolidated Financial Statements. The transaction is expected to close in the third quarter of 2018.

The assets and liabilities of the Oncology franchise classified as held for sale were as follows:



(In millions)	As of June 30, 2018
Intangible assets	$	1,571.8
Goodwill	565.1
Other	12.0
Current assets	$	2,148.9

Current liabilities	$	116.8

During the six months ended June 30, 2018, the Company determined it would divest certain facilities as part of its integration efforts. As of June 30, 2018, the Company classified $123.2 million of assets as held for sale and included within Held for sale and other current assets in these Unaudited Consolidated Financial Statements. The $123.2 million of held for sale assets consisted primarily of property, plant and equipment and was net of $137.5 million of impairment charges recorded during the six months ended June 30, 2018. The impairment charges were reported in Integration and acquisition costs in these Unaudited Consolidated Financial Statements.

Results of Discontinued Operations

Following the divestment of the Company’s DERMAGRAFT business in January 2014, the operating results associated with the DERMAGRAFT business have been classified as discontinued operations in the Company’s Unaudited Consolidated Statements of Operations for all periods presented.

In January 2017, Shire entered into a final settlement agreement with the Department of Justice (DOJ) in the amount of $350.0 million, plus interest which was accrued in 2016 and paid during 2017.

After the civil settlement with the DOJ was finalized, Shire and Advanced BioHealing Inc.'s (ABH) equity holders entered into a settlement agreement and ABH’s equity holders released the $37.5 million escrow to Shire. Shire released its claims against ABH equity holders upon receiving the entire amount held in escrow.

For the three and six months ended June 30, 2017, the Company recorded a loss of $1.2 million and gain of $19.0 million (net of tax benefit of $0.6 million and expense of $10.9 million, respectively), primarily related to legal contingencies related to the divested DERMAGRAFT business and the release of escrow to Shire, respectively.