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Segmental Reporting
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
Segment Reporting Disclosure

24.       Segmental reporting

 

Shire's internal financial reporting is in line with its business unit and management reporting structure. In the year to December 31, 2011, following the acquisition of ABH, an organizational realignment was carried out. Following this re-organization the Company now has three business units and three segments: SP, HGT and RM. The RM segment currently comprises the ABH business. The SP, HGT and RM reportable segments represent the Company's revenues and costs for currently promoted and sold products, together with the costs of developing projects for future commercialization. 'All Other' has been included in the table below in order to reconcile the three segments to the total consolidated figures.

 

The Company evaluates performance based on revenue and operating income. The Company does not have inter-segment transactions. Assets that are directly attributable or allocable to the segments have been separately disclosed.

 SPHGTRMAll OtherTotal
2011$’M$’M$’M$’M$’M
 _______________________________________________________
Product sales2,615.61,229.3105.3- 3,950.2
Royalties199.6- - 83.9283.5
Other revenues24.51.2- 4.029.7
 _________________________________________________________
Total revenues2,839.71,230.5105.387.94,263.4
 _________________________________________________________
      
Cost of product sales(1)351.7200.036.4- 588.1
Research and development(1)449.1315.46.20.0770.7
Selling, general and administrative(1)1,131.3340.664.4215.11,751.4
Loss on sale of product rights6.0- - - 6.0
Reorganization costs11.8- - 12.524.3
Integration and acquisition costs0.1- 13.6- 13.7
 ___________________________________________________________
Total operating expenses1,950.0856.0120.6227.63,154.2
 ___________________________________________________________
Operating income/(loss)889.7374.5(15.3)(139.7)1,109.2
 ___________________________________________________________
      
Total assets2,421.71,849.4967.71,141.46,380.2
Long-lived assets(2)126.8720.822.963.2933.7
Capital expenditure on long-lived assets(2)54.4129.41.518.9204.2
 _________________________________________________________

(1) Depreciation from manufacturing plants ($39.8 million) and amortization of favorable manufacturing contracts ($1.7 million) is included in Cost of product sales; depreciation of research and development assets ($25.2 million) and impairment of IPR&D intangible assets in the SP reporting segment ($16.0 million) is included in Research and development; and all other depreciation and amortization ($228.1 million) is included in Selling, general and administrative.

(2) Long-lived assets comprise all non-current assets (excluding goodwill and other intangible assets, deferred contingent consideration assets, deferred tax assets, investments, income tax receivable and financial instruments).

 

 SPHGTRMAll OtherTotal
2010$’M$’M$’M$’M$’M
 _______________________________________________________
Product sales2,219.2909.0- - 3,128.2
Royalties173.3- - 154.8328.1
Other revenues7.12.6- 5.114.8
 _________________________________________________________
Total revenues2,399.6911.6- 159.93,471.1
 _________________________________________________________
      
Cost of product sales(1)332.1129.3- 2.0463.4
Research and development(1)348.9312.2- 0.4661.5
Selling, general and administrative(1)1,035.8297.7- 192.81,526.3
Gain on sale of product rights(16.5)- - - (16.5)
Reorganization costs13.0- - 21.334.3
Integration and acquisition costs8.0- - - 8.0
 ___________________________________________________________
Total operating expenses1,721.3739.2- 216.52,677.0
 ___________________________________________________________
Operating income/(loss)678.3172.4- (56.6)794.1
 ___________________________________________________________
      
Total assets2,483.51,786.9- 1,117.25,387.6
Long-lived assets(2)154.7655.4- 47.3857.4
Capital expenditure on long-lived assets(2)21.8281.1- 12.9315.8
 _________________________________________________________

(1) Depreciation from manufacturing plants ($38.1 million) and amortization of favorable manufacturing contracts ($1.7 million) is included in Cost of product sales; depreciation of research and development assets ($19.0 million) is included in Research and development; and all other depreciation, amortization and impairment ($238.3 million) is included in Selling, general and administrative.

(2) Long-lived assets comprise all non-current assets (excluding goodwill and other intangible assets, deferred contingent consideration assets, deferred tax assets, investments, income tax receivable and financial instruments).

 

 SPHGTRMAll OtherTotal
2009$’M$’M$’M$’M$’M
 _______________________________________________________
Product sales2,138.2555.5- - 2,693.7
Royalties127.2- - 165.3292.5
Other revenues9.92.6- 9.021.5
 _________________________________________________________
Total revenues2,275.3558.1- 174.33,007.7
 _________________________________________________________
      
Cost of product sales(1)299.388.7- - 388.0
Research and development(1)375.0258.8- 6.1639.9
Selling, general and administrative(1)954.4208.7- 179.51,342.6
Gain on sale of product rights(6.3)- - - (6.3)
Reorganization costs12.7- - - 12.7
Integration and acquisition costs2.97.7- - 10.6
 ___________________________________________________________
Total operating expenses1,638.0563.9- 185.62,387.5
 ___________________________________________________________
Operating income/(loss)637.3(5.8)- (11.3)620.2
 ___________________________________________________________
      
Total assets2,067.11,576.1- 974.34,617.5
Long-lived assets(2)202.6422.4- 55.6680.6
Capital expenditure on long-lived assets(2)46.9194.4- 18.0259.3
 _________________________________________________________

(1) Depreciation from manufacturing plants ($21.8 million) and amortization of favorable manufacturing contracts ($1.7 million) is included in Cost of product sales; depreciation of research and development assets ($15.5 million) is included in Research and development; and all other depreciation and amortization ($204.7 million) is included in Selling, general and administrative.

(2) Long-lived assets comprise all non-current assets, (excluding goodwill and other intangible assets, deferred tax assets, investments, income tax receivable and financial instruments).

 

Geographic information

 

Revenues (based on the geographic location from which the sale originated):

 

 

 201120102009
Year to December 31,$’M$’M$’M
 _________________________________
Ireland 21.121.119.5
United Kingdom219.9203.9163.9
North America 2,867.12,333.12,141.3
Rest of World1,155.3913.0683.0
 ____________________________________
Total revenues4,263.43,471.13,007.7
 ____________________________________

Long-lived assets comprise all non-current assets, (excluding goodwill and other intangible assets, deferred contingent consideration assets, deferred tax assets, investments and financial instruments) based on the geographic location within which the economic benefits arise:

 

 20112010
Year to December 31,$’M$’M
 ______________________
Ireland 2.9-
United Kingdom73.770.9
North America 841.0777.8
Rest of World16.18.7
 ________________________
Total 933.7857.4
 ________________________

Material customers

 

In the periods set out below, certain customers, all within the SP operating segment, accounted for greater than 10% of the Company's product revenues:

 

       
 201120112010201020092009
Year to December 31,$’M% revenue$’M% revenue$’M% revenue
 __________________________________________________________________
Cardinal Health Inc.923.923791.225797.027
McKesson Corp.742.919574.319576.319
 _____________________________________________________________________
       
       
Amounts outstanding as at December 31, in respect of these material customers were as follows:
       
     20112010
December 31,    $’M$’M
     ______________________
Cardinal Health Inc.    172.1143.3
McKesson Corp.    101.493.0
     _______________________
       

Revenue by product

 

In the periods set out below, revenues by major product were as follows:

 

 201120102009
 $’M$’M$’M
 _________________________________
    
Specialty Pharmaceuticals   
VYVANSE805.0634.2504.7
ADDERALL XR532.8360.8626.5
INTUNIV 223.0165.95.4
EQUASYM 19.922.022.8
DAYTRANA- 49.471.0
LIALDA / MEZAVANT372.1293.4235.9
PENTASA251.4235.9214.8
RESOLOR6.10.3-
FOSRENOL166.9182.1184.4
XAGRID90.687.384.8
CARBATROL52.382.382.4
Other95.5105.6105.5
 ____________________________________
 2,615.62,219.22,138.2
 ____________________________________
    
Human Genetic Therapies   
REPLAGAL475.2 351.3 193.8
ELAPRASE464.9 403.6 353.1
VPRIV256.2 143.0 2.5
FIRAZYR33.0 11.1 6.1
 ____________________________________
 1,229.3909.0555.5
 ____________________________________
    
Regenerative Medicine   
DERMAGRAFT105.3 - -
 ____________________________________
 105.3- -
 ____________________________________
    
 3,950.23,128.22,693.7
 ____________________________________