Agreements and Transactions with Baxter

9 Months Ended

Sep. 30, 2018

Related Party Transactions [Abstract]

Agreements and Transactions with Baxter

Agreements and Transactions with Baxter

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 and nine months ended September 30, 2018, the Company reported revenues associated with the manufacturing and supply agreement with Baxter of approximately $57.6 million and $142.6 million, respectively (2017: $35.8 million and $106.5 million, respectively) and Selling, general and administrative expense associated with the transition services agreement with Baxter of approximately $0.3 million and $10.2 million, respectively and (2017: $9.8 million and $43.5 million, respectively). Net tax-related indemnification liabilities as of September 30, 2018, associated with the tax matters agreement with Baxter are discussed in Note 23, Commitments and Contingencies, of these Unaudited Consolidated Financial Statements.