Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Valuation and Qualifying Accounts [Abstract]

Provision for sales rebates, returns and coupons

Schedule II – Valuation and Qualifying Accounts

	Beginning balance	Provision charged to income⁽¹⁾	Costs incurred/ utilization⁽¹⁾	Ending balance
Provision for sales rebates, returns and coupons	$’M	$’M	$’M	$’M
	__________	__________	__________	__________
2012 :
Accrued rebates – Medicaid and HMOs	612.6	1,228.0	(1,201.0)	639.6
Sales returns reserve	88.8	37.7	(39.1)	87.4
Accrued coupons	8.1	71.7	(71.8)	8.0
	__________	__________	__________	__________
	709.5	1,337.4	(1,311.9)	735.0
	__________	__________	__________	__________

2011 :
Accrued rebates – Medicaid and HMOs	549.9	1,123.2	(1,060.5)	612.6
Sales returns reserve	69.8	51.2	(32.2)	88.8
Accrued coupons	5.2	60.5	(57.6)	8.1
	__________	__________	__________	__________
	624.9	1,234.9	(1,150.3)	709.5
	__________	__________	__________	__________

2010 :
Accrued rebates – Medicaid and HMOs	341.6	711	(502.7)	549.9
Sales returns reserve	62.7	30.8	(23.7)	69.8
Accrued coupons	3.8	1.6	(0.2)	5.2
	__________	__________	__________	__________
	408.1	743.4	(526.6)	624.9
	__________	__________	__________	__________

(1) In the analysis above, due to systems limitations, it is not practical and has not been necessary to break out current versus prior year activity. When applicable, Shire has performed general ledger reviews of sales deduction provisions charged to income, and the utilization of these provisions in subsequent years. Shire has determined that adjustments made in each year as a result of changes to estimates that related to prior year sales, and adjustments made as a result of differences between prior period provisions and actual payments, did not have a material impact on the Company's financial performance or position either in each individual year, or in the Company's performance over the reported period.