Segmental Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure

16.       Segmental reporting

Shire's internal financial reporting is in line with its business unit and management reporting structure. The Company has three business units and three reportable segments: SP, HGTand RM. The SP, HGT and RMreportable segments represent the Company's revenues and costs for currently promoted and sold products, together with the costs of developing products 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.

	SP	HGT	RM	All Other	Total
3 months to June 30, 2012	$’M	$’M	$’M	$’M	$’M
	___________	___________	___________	___________	___________
Product sales	735.5	359.8	52.4	-	1,147.7
Royalties	45.4	-	-	10.9	56.3
Other revenues	3.6	0.2	-	-	3.8
	___________	____________	____________	___________	___________
Total revenues	784.5	360.0	52.4	10.9	1,207.8
	___________	____________	____________	___________	___________
Cost of product sales(1)	84.8	50.7	17.0	-	152.5
Research and development(1)	158.3	76.0	4.3	-	238.6
Selling, general and administrative(1)	311.5	95.9	42.6	61.0	511.0
Gain on sale of product rights	(3.6)	-	-	-	(3.6)
Integration and acquisition costs	2.8	-	4.3	-	7.1
	_____________	____________	____________	___________	___________
Total operating expenses	553.8	222.6	68.2	61.0	905.6
	_____________	____________	____________	___________	___________
Operating income/(loss)	230.7	137.4	(15.8)	(50.1)	302.2
	_____________	____________	____________	___________	___________
Total assets	2,534.6	1,931.1	980.5	1,594.8	7,041.0
Long-lived assets(2)	130.1	707.9	25.0	64.2	927.2
Capital expenditure on long-lived assets(2)	12.1	18.3	0.1	5.8	36.3
	_____________	___________	___________	___________	___________

(1) Depreciation from manufacturing plants ($7.0 million) and amortization of favorable manufacturing contracts ($0.5 million) is included in Cost of product sales; depreciation of research and development assets ($6.4 million) and impairment of certain IPR&D intangible assets in the SP reporting segment ($27.0 million) is included in Research and development; and all other depreciation andamortization ($65.5 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).

	SP	HGT	RM	All Other	Total
3 months to June 30, 2011	$’M	$’M	$’M	$’M	$’M
	___________	___________	___________	___________	___________
Product sales	674.7	316.6	2.0	-	993.3
Royalties	51.8	-	-	11.6	63.4
Other revenues	4.7	0.2	-	1.3	6.2
	___________	____________	____________	___________	___________
Total revenues	731.2	316.8	2.0	12.9	1,062.9
	___________	____________	____________	___________	___________
Cost of product sales(1)	93.8	49.6	0.3	-	143.7
Research and development(1)	105.0	71.8	0.1	-	176.9
Selling, general and administrative(1)	294.0	91.9	0.7	53.7	440.3
Loss on sale of product rights	2.2	-	-	-	2.2
Reorganization costs	2.7	-	-	4.8	7.5
Integration and acquisition costs	2.1	-	6.9	-	9.0
	_____________	____________	____________	___________	___________
Total operating expenses	499.8	213.3	8.0	58.5	779.6
	_____________	____________	____________	___________	___________
Operating income/(loss)	231.4	103.5	(6.0)	(45.6)	283.3
	_____________	____________	____________	___________	___________
Total assets	2,513.9	1,875.9	1,041.4	734.4	6,165.6
Long-lived assets(2)	158.1	691.1	16.8	42.9	908.9
Capital expenditure on long-lived assets(2)	18.2	27.4	-	5.3	50.9
	_____________	___________	___________	___________	___________

(1) Depreciation from manufacturing plants ($10.5 million) and amortization of favorable manufacturing contracts ($0.4 million) is included in Cost of product sales; depreciation of research and development assets ($6.1 million) is included in Research and development; and all other depreciation,amortization and impairment charges ($51.8 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).

	SP	HGT	RM	All Other	Total
6 months to June 30, 2012	$’M	$’M	$’M	$’M	$’M
	___________	___________	___________	___________	___________
Product sales	1,442.2	711.2	101.2	-	2,254.6
Royalties	87.8	-	-	24.8	112.6
Other revenues	11.9	0.5	-	-	12.4
	___________	____________	____________	___________	___________
Total revenues	1,541.9	711.7	101.2	24.8	2,379.6
	___________	____________	____________	___________	___________
Cost of product sales(1)	171.9	112.0	27.0	-	310.9
Research and development(1)	289.3	162.3	7.3	-	458.9
Selling, general and administrative(1)	611.6	200.4	84.2	114.8	1,011.0
Gain on sale of product rights	(10.8)	-	-	-	(10.8)
Integration and acquisition costs	4.4	-	8.0	-	12.4
	_____________	____________	____________	___________	___________
Total operating expenses	1,066.4	474.7	126.5	114.8	1,782.4
	_____________	____________	____________	___________	___________
Operating income/(loss)	475.5	237.0	(25.3)	(90.0)	597.2
	_____________	____________	____________	___________	___________
Total assets	2,534.6	1,931.1	980.5	1,594.8	7,041.0
Long-lived assets(2)	130.1	707.9	25.0	64.2	927.2
Capital expenditure on long-lived assets(2)	19.2	26.3	0.1	8.2	53.8
	_____________	___________	___________	___________	___________

1) Depreciation from manufacturing plants ($14.2 million) and amortization of favorable manufacturing contracts ($0.7 million) is included in Cost of product sales; depreciation of research and development assets ($12.8 million) and impairment of IPR&D intangible assets in the SP reporting segment ($27.0 million) is included in Research and development; and all other depreciation and amortization ($124.7 million) is included in Selling, general and administrative.

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

	SP	HGT	RM	All Other	Total
6 months to June 30, 2011	$’M	$’M	$’M	$’M	$’M
	___________	___________	___________	___________	___________
Product sales	1,290.8	589.8	2.0	-	1,882.6
Royalties	89.3	-	-	47.7	137.0
Other revenues	12.3	0.5	-	2.7	15.5
	___________	____________	____________	___________	___________
Total revenues	1,392.4	590.3	2.0	50.4	2,035.1
	___________	____________	____________	___________	___________
Cost of product sales(1)	175.7	92.2	0.3	-	268.2
Research and development(1)	207.7	147.0	0.1	-	354.8
Selling, general and administrative(1)	560.6	172.0	0.7	109.9	843.2
Loss on sale of product rights	3.5	-	-	-	3.5
Reorganization costs	5.0	-	-	8.0	13.0
Integration and acquisition costs	(4.3)	-	6.9	-	2.6
	_____________	____________	____________	___________	___________
Total operating expenses	948.2	411.2	8.0	117.9	1,485.3
	_____________	____________	____________	___________	___________
Operating income/(loss)	444.2	179.1	(6.0)	(67.5)	549.8
	_____________	____________	____________	___________	___________
Total assets	2,513.9	1,875.9	1,041.4	734.4	6,165.6
Long-lived assets(2)	158.1	691.1	16.8	42.9	908.9
Capital expenditure on long-lived assets(2)	23.1	63.8	-	7.9	94.8
	_____________	___________	___________	___________	___________

(1) Depreciation from manufacturing plants ($18.2 million) and amortization of favorable manufacturing contracts ($0.9 million) is included in Cost of product sales; depreciation of research and development assets ($10.8 million) is included in Research and development; and all other depreciation,amortization and impairment ($102.4 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).