Segmental Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure

18.       Segmental reporting

For the six months to June 30, 2013 Shire's internal financial reporting is in line with its existing business unit and management reporting structure. The Company has three business units and three reportable segments: SP, HGT and RM. 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 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.

On May 2, 2013 the Company announced that there would be a re-alignment of the Company's business to integrate the three divisions into a simplified “One Shire” organization in order to drive future growth and innovation. The Company is continuing to evaluate the timing and impact that this re-alignment will have on its operating and reportable segments.

	SP	HGT	RM	All Other	Total
3 months to June 30, 2013	$’M	$’M	$’M	$’M	$’M
	___________	___________	___________	___________	___________
Product sales	813.2	394.9	22.1	-	1,230.2
Royalties	24.8	-	-	11.5	36.3
Other revenues	4.8	3.2	-	-	8.0
	___________	____________	____________	___________	___________
Total revenues	842.8	398.1	22.1	11.5	1,274.5
	___________	____________	____________	___________	___________
Cost of product sales(1)	95.0	69.4	11.3	-	175.7
Research and development(1)	181.9	70.7	7.5	-	260.1
Selling, general and administrative(1)	242.2	103.3	47.1	65.0	457.6
Gain on sale of product rights	(4.5)	-	-	-	(4.5)
Reorganization costs	-	-	-	26.4	26.4
Integration and acquisition costs	9.9	6.6	0.9	-	17.4
	_____________	____________	____________	___________	___________
Total operating expenses	524.5	250.0	66.8	91.4	932.7
	_____________	____________	____________	___________	___________
Operating income/(loss)	318.3	148.1	(44.7)	(79.9)	341.8
	_____________	____________	____________	___________	___________
Total assets	3,058.6	2,220.2	748.1	1,876.0	7,902.9
Long-lived assets(2)	117.2	684.2	52.5	102.1	956.0
Capital expenditure on long-lived assets(2)	9.5	13.5	15.0	5.3	43.3
	_____________	___________	___________	___________	___________

(1) Depreciation from manufacturing plants ($10.0million) is included in Cost of product sales; depreciation of research and development assets ($4.3million) and impairment of IPR&D intangible assets in the SP reporting segment ($19.9million) is included in Research and development; and all other depreciation andamortization charges ($61.9million) 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, 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 ($7.0million) is included in Cost of product sales; depreciation of research and development assets ($6.4million) and impairment of IPR&D intangible assets in the SP reporting segment ($27.0million) is included in Research and development; and all other depreciation andamortization charges ($65.5million) 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, 2013	$’M	$’M	$’M	$’M	$’M
	___________	___________	___________	___________	___________
Product sales	1,559.3	746.8	40.8	-	2,346.9
Royalties	50.3	-	-	24.5	74.8
Other revenues	11.2	3.5	-	-	14.7
	___________	____________	____________	___________	___________
Total revenues	1,620.8	750.3	40.8	24.5	2,436.4
	___________	____________	____________	___________	___________
Cost of product sales(1)	180.8	130.9	19.8	0.1	331.6
Research and development(1)	329.3	140.3	14.7	-	484.3
Selling, general and administrative(1)	500.1	208.8	94.9	92.5	896.3
Goodwill impairment charge	-	-	198.9	-	198.9
Gain on sale of product rights	(11.0)	-	-	-	(11.0)
Reorganization costs	-	-	-	43.9	43.9
Integration and acquisition costs	11.8	8.0	1.7	-	21.5
	_____________	____________	____________	___________	___________
Total operating expenses	1,011.0	488.0	330.0	136.5	1,965.5
	_____________	____________	____________	___________	___________
Operating income/(loss)	609.8	262.3	(289.2)	(112.0)	470.9
	_____________	____________	____________	___________	___________
Total assets	3,058.6	2,220.2	748.1	1,876.0	7,902.9
Long-lived assets(2)	117.2	684.2	52.5	102.1	956.0
Capital expenditure on long-lived assets(2)	16.9	22.8	24.3	12.2	76.2
	_____________	___________	___________	___________	___________

(1) Depreciation from manufacturing plants ($17.8million)is included in Cost of product sales; depreciation of research and development assets ($8.9million) and impairment of IPR&D intangible assets in the SP reporting segment ($19.9million) is included in Research and development; and all other depreciation andamortization charges ($124.5million) 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 ($14.2million) is included in Cost of product sales; depreciation of research and development assets ($12.8million) 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 andamortization charges ($124.7million) 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).