SHIRE PLC
|
||||
By: |
/s/ T May
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|||
Name: |
Tatjana May
|
|||
Title: |
General Counsel
|
EXHIBIT INDEX
|
|
Number
|
Description
|
99.1
|
Press release dated February 4, 2014
|
Press Release
|
|
www.shire.com
|
Investor Relations
|
||
Eric Rojas
|
erojas@shire.com
|
+1 781 482 0999
|
Sarah Elton-Farr
|
seltonfarr@shire.com
|
+44 1256 894157
|
Media
|
||
Jessica Mann
|
jmann@shire.com
|
+44 1256 894 280
|
Gwen Fisher
|
gfisher@shire.com
|
+1 484 595 9836
|
·
|
Shire’s products may not be a commercial success;
|
·
|
revenues from ADDERALL XR are subject to generic erosion;
|
·
|
the failure to obtain and maintain reimbursement, or an adequate level of reimbursement, by third-party payors in a timely manner for Shire's products may impact future revenues and earnings;
|
·
|
Shire relies on a single source for manufacture of certain of its products and a disruption to the supply chain for those products may result in Shire being unable to continue marketing or developing a product or may result in Shire being unable to do so on a commercially viable basis;
|
·
|
Shire uses third party manufacturers to manufacture many of its products and is reliant upon third party contractors for certain goods and services, and any inability of these third party manufacturers to manufacture products, or any failure of these third party contractors to provide these goods and services, in each case in accordance with its respective contractual obligations, could adversely affect Shire’s ability to manage its manufacturing processes or to operate its business;
|
·
|
the development, approval and manufacturing of Shire’s products is subject to extensive oversight by various regulatory agencies and regulatory approvals or interventions associated with changes to manufacturing sites, ingredients or manufacturing processes could lead to significant delays, increase in operating costs, lost product sales, an interruption of research activities or the delay of new product launches;
|
·
|
the actions of certain customers could affect Shire's ability to sell or market products profitably and fluctuations in buying or distribution patterns by such customers could adversely impact Shire’s revenues, financial conditions or results of operations;
|
·
|
investigations or enforcement action by regulatory authorities or law enforcement agencies relating to Shire’s activities in the highly regulated markets in which it operates may result in the distraction of senior management, significant legal costs and the payment of substantial compensation or fines;
|
·
|
adverse outcomes in legal matters and other disputes, including Shire’s ability to obtain, maintain, enforce and defend patents and other intellectual property rights required for its business, could have a material adverse effect on Shire’s revenues, financial condition or results of operations;
|
·
|
failure to achieve Shire’s strategic objectives with respect to the acquisition of ViroPharma Incorporated, may adversely affect Shire’s financial condition and results of operations;
|
Recast
|
Recast
|
Recast
|
Recast
|
|
Q1 2013
|
Q2 2013
|
Q3 2013
|
Sep YTD 2013
|
|
$’M
|
$’M
|
$’M
|
$’M
|
|
Revenues:
|
___________
|
___________
|
___________
|
___________
|
Product sales
|
1,098.2
|
1,207.9
|
1,171.0
|
3,477.1
|
Royalties
|
38.5
|
36.3
|
37.6
|
112.4
|
Other revenues
|
6.7
|
8.0
|
4.1
|
18.8
|
___________
|
___________
|
___________
|
___________
|
|
Total revenues
|
1,143.4
|
1,252.2
|
1,212.7
|
3,608.3
|
___________
|
___________
|
___________
|
___________
|
|
Costs and expenses:
|
||||
Cost of product sales
|
147.4
|
164.3
|
180.5
|
492.2
|
Research and development
|
220.6
|
256.5
|
226.2
|
703.3
|
Selling, general and administrative
|
391.7
|
410.0
|
396.3
|
1,198.0
|
Goodwill impairment charge
|
7.1
|
-
|
-
|
7.1
|
Gain on sale of product rights
|
(6.5)
|
(4.5)
|
(3.6)
|
(14.6)
|
Reorganization costs
|
17.5
|
17.7
|
12.0
|
47.2
|
Integration and acquisition costs
|
4.1
|
17.4
|
18.4
|
39.9
|
___________
|
___________
|
___________
|
___________
|
|
Total operating expenses
|
781.9
|
861.4
|
829.8
|
2,473.1
|
___________
|
___________
|
___________
|
___________
|
|
Operating income
|
361.5
|
390.8
|
382.9
|
1,135.2
|
Interest income
|
0.7
|
0.5
|
0.4
|
1.6
|
Interest expense
|
(9.2)
|
(9.1)
|
(9.2)
|
(27.5)
|
Other (expense)/income, net
|
(1.0)
|
(1.3)
|
0.7
|
(1.6)
|
___________
|
___________
|
___________
|
___________
|
|
Total other expense, net
|
(9.5)
|
(9.9)
|
(8.1)
|
(27.5)
|
___________
|
___________
|
___________
|
___________
|
|
Income from continuing operations before income taxes and equity in earnings/(losses) of equity method investees
|
352.0
|
380.9
|
374.8
|
1,107.7
|
Income taxes
|
(71.4)
|
(90.5)
|
(73.4)
|
(235.3)
|
Equity in earnings/(losses) of equity method investees, net of tax
|
0.4
|
0.5
|
(0.3)
|
0.6
|
___________
|
___________
|
___________
|
___________
|
|
Income from continuing operations
|
281.0
|
290.9
|
301.1
|
873.0
|
Loss from discontinued operations
|
(216.2)
|
(32.8)
|
(22.9)
|
(271.9)
|
___________
|
___________
|
___________
|
___________
|
|
Net Income
|
64.8
|
258.1
|
278.2
|
601.1
|
___________
|
___________
|
___________
|
___________
|
|
Impact of convertible debt, net of tax
|
7.6
|
7.5
|
7.6
|
22.7
|
Numerator for diluted EPS
|
72.4
|
265.6
|
285.8
|
623.8
|
___________
|
___________
|
___________
|
___________
|
|
Weighted average number of share (millions) - diluted
|
588.9
|
586.0
|
585.7
|
587.5
|
Diluted earnings per ADS
|
36.9c
|
135.9c
|
146.4c
|
318.6c
|
___________
|
___________
|
___________
|
___________
|
Recast
|
Recast
|
Recast
|
Recast
|
|
Q1 2013
|
Q2 2013
|
Q3 2013
|
Sep YTD 2013
|
|
$’M
|
$’M
|
$’M
|
$’M
|
|
Revenues:
|
___________
|
___________
|
___________
|
___________
|
Product sales
|
1,098.2
|
1,207.9
|
1,171.0
|
3,477.1
|
Royalties
|
38.5
|
36.3
|
37.6
|
112.4
|
Other revenues
|
6.7
|
8.0
|
4.1
|
18.8
|
___________
|
___________
|
___________
|
___________
|
|
Total revenues
|
1,143.4
|
1,252.2
|
1,212.7
|
3,608.3
|
___________
|
___________
|
___________
|
___________
|
|
Costs and expenses:
|
||||
Cost of product sales
|
140.3
|
155.1
|
170.3
|
465.7
|
Research and development
|
216.0
|
232.3
|
219.9
|
668.2
|
Selling, general and administrative
|
337.9
|
356.7
|
341.2
|
1,035.8
|
Depreciation
|
27.8
|
29.1
|
32.4
|
89.3
|
___________
|
___________
|
___________
|
___________
|
|
Total operating expenses
|
722.0
|
773.2
|
763.8
|
2,259.0
|
___________
|
___________
|
___________
|
___________
|
|
Operating income
|
421.4
|
479.0
|
448.9
|
1,349.3
|
Interest income
|
0.7
|
0.5
|
0.4
|
1.6
|
Interest expense
|
(9.2)
|
(9.1)
|
(9.2)
|
(27.5)
|
Other (expense)/income, net
|
(1.0)
|
(1.3)
|
0.7
|
(1.6)
|
___________
|
___________
|
___________
|
___________
|
|
Total other expense, net
|
(9.5)
|
(9.9)
|
(8.1)
|
(27.5)
|
___________
|
___________
|
___________
|
___________
|
|
Income from continuing operations before income taxes and equity in earnings/(losses) of equity method investees
|
411.9
|
469.1
|
440.8
|
1,321.8
|
Income taxes
|
(83.5)
|
(109.5)
|
(90.3)
|
(283.3)
|
Equity in earnings/(losses) of equity method investees, net of tax
|
0.4
|
0.5
|
(0.3)
|
0.6
|
___________
|
___________
|
___________
|
___________
|
|
Net Income
|
328.8
|
360.1
|
350.2
|
1,039.1
|
___________
|
___________
|
___________
|
___________
|
|
Impact of convertible debt, net of tax
|
7.6
|
7.5
|
7.6
|
22.7
|
Numerator for diluted EPS
|
336.4
|
367.6
|
357.8
|
1,061.8
|
___________
|
___________
|
___________
|
___________
|
|
Weighted average number of share (millions) - diluted
|
588.9
|
586.0
|
585.7
|
587.5
|
Diluted earnings per ADS
|
171.6c
|
188.1c
|
183.3c
|
542.1c
|
___________
|
___________
|
___________
|
___________
|
|
Memo:
|
||||
Previously reported Non GAAP EPS per ADS (prior to treatment of DERMAGRAFT operation as a discontinued operation)
|
162.9c
|
178.8c
|
176.7c
|
517.5c
|
Q1 2013
|
Q2 2013
|
Q3 2013
|
Sep YTD 2013
|
|
$’M
|
$’M
|
$’M
|
$’M
|
|
___________
|
___________
|
___________
|
___________
|
|
Total revenues
|
18.5
|
22.3
|
23.9
|
64.7
|
___________
|
___________
|
___________
|
___________
|
|
Cost of product sales
|
7.8
|
10.6
|
15.8
|
34.2
|
Research and development
|
3.6
|
3.6
|
2.9
|
10.1
|
Selling, general and administrative
|
34.0
|
33.7
|
30.5
|
98.2
|
Depreciation
|
1.3
|
1.3
|
1.4
|
4.0
|
___________
|
___________
|
___________
|
___________
|
|
Total operating expenses
|
46.7
|
49.2
|
50.6
|
146.5
|
Total other income, net
|
-
|
0.1
|
0.1
|
0.2
|
___________
|
___________
|
___________
|
___________
|
|
Loss from discontinued operations before income taxes
|
(28.2)
|
(26.8)
|
(26.6)
|
(81.6)
|
Income taxes
|
11.7
|
8.2
|
13.6
|
33.5
|
___________
|
___________
|
___________
|
___________
|
|
Non GAAP net loss from discontinued operations
|
(16.5)
|
(18.6)
|
(13.0)
|
(48.1)
|
___________
|
___________
|
___________
|
___________
|
|
Amortization and asset impairments, net of taxes
|
(198.0)
|
(6.3)
|
(6.3)
|
(210.6)
|
Divestments, reorganizations and discontinued operations, net of taxes
|
-
|
(5.6)
|
(1.1)
|
(6.7)
|
Legal and litigation costs, net of taxes
|
(1.7)
|
(2.3)
|
(2.5)
|
(6.5)
|
___________
|
___________
|
___________
|
___________
|
|
US GAAP net loss from discontinued operations
|
(216.2)
|
(32.8)
|
(22.9)
|
(271.9)
|
___________
|
___________
|
___________
|
___________
|
Recast
|
Recast
|
Recast
|
Recast
|
Recast
|
|
Q1 2012
|
Q2 2012
|
Q3 2012
|
Q4 2012
|
FY 2012
|
|
$’M
|
$’M
|
$’M
|
$’M
|
$’M
|
|
Revenues:
|
___________
|
___________
|
___________
|
___________
|
___________
|
Product sales
|
1,058.1
|
1,095.3
|
1,020.8
|
1,078.7
|
4,252.9
|
Royalties
|
56.3
|
56.3
|
41.8
|
87.2
|
241.6
|
Other revenues
|
8.6
|
3.8
|
4.1
|
16.4
|
32.9
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Total revenues
|
1,123.0
|
1,155.4
|
1,066.7
|
1,182.3
|
4,527.4
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Costs and expenses:
|
|||||
Cost of product sales
|
148.4
|
135.5
|
151.9
|
150.0
|
585.8
|
Research and development
|
217.3
|
235.8
|
221.0
|
278.9
|
953.0
|
Selling, general and administrative
|
458.1
|
467.7
|
396.9
|
625.3
|
1,948.0
|
Gain on sale of product rights
|
(7.2)
|
(3.6)
|
(5.7)
|
(1.6)
|
(18.1)
|
Integration and acquisition costs
|
1.5
|
3.1
|
1.5
|
7.4
|
13.5
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Total operating expenses
|
818.1
|
838.5
|
765.6
|
1,060.0
|
3,482.2
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Operating income
|
304.9
|
316.9
|
301.1
|
122.3
|
1,045.2
|
Interest income
|
0.8
|
0.6
|
0.9
|
0.7
|
3.0
|
Interest expense
|
(10.2)
|
(9.6)
|
(9.2)
|
(9.2)
|
(38.2)
|
Other income/(expense), net
|
1.9
|
(1.8)
|
3.5
|
(5.8)
|
(2.2)
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Total other expense, net
|
(7.5)
|
(10.8)
|
(4.8)
|
(14.3)
|
(37.4)
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Income from continuing operations before income taxes and equity in earnings/(losses) of equity method investees
|
297.4
|
306.1
|
296.3
|
108.0
|
1,007.8
|
Income taxes
|
(52.5)
|
(57.0)
|
(53.1)
|
(40.5)
|
(203.1)
|
Equity in earnings/(losses) of equity method investees, net of tax
|
0.9
|
(0.6)
|
0.2
|
0.5
|
1.0
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Income from continuing operations
|
245.8
|
248.5
|
243.4
|
68.0
|
805.7
|
Loss from discontinued operations
|
(7.4)
|
(10.7)
|
(16.2)
|
(26.0)
|
(60.3)
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Net Income
|
238.4
|
237.8
|
227.2
|
42.0
|
745.4
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Impact of convertible debt, net of tax
|
8.4
|
7.8
|
7.5
|
-
|
31.3
|
Numerator for diluted EPS
|
246.8
|
245.6
|
234.7
|
42.0
|
776.7
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Weighted average number of share (millions) - diluted
|
595.6
|
594.9
|
593.1
|
558.5
|
593.5
|
Diluted earnings per ADS
|
124.2c
|
123.9c
|
118.8c
|
22.5c
|
392.7c
|
___________
|
___________
|
___________
|
___________
|
___________
|
Recast
|
Recast
|
Recast
|
Recast
|
Recast
|
|
Q1 2012
|
Q2 2012
|
Q3 2012
|
Q4 2012
|
FY 2012
|
|
$’M
|
$’M
|
$’M
|
$’M
|
$’M
|
|
Revenues:
|
___________
|
___________
|
___________
|
___________
|
___________
|
Product sales
|
1,058.1
|
1,095.3
|
1,020.8
|
1,078.7
|
4,252.9
|
Royalties
|
56.3
|
56.3
|
41.8
|
87.2
|
241.6
|
Other revenues
|
8.6
|
3.8
|
4.1
|
16.4
|
32.9
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Total revenues
|
1,123.0
|
1,155.4
|
1,066.7
|
1,182.3
|
4,527.4
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Costs and expenses:
|
|||||
Cost of product sales
|
141.8
|
129.1
|
143.2
|
142.7
|
556.8
|
Research and development
|
187.9
|
202.4
|
215.5
|
230.5
|
836.3
|
Selling, general and administrative
|
409.4
|
380.3
|
341.5
|
384.9
|
1,516.1
|
Depreciation
|
25.9
|
26.7
|
27.9
|
28.5
|
109.0
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Total operating expenses
|
765.0
|
738.5
|
728.1
|
786.6
|
3,018.2
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Operating income
|
358.0
|
416.9
|
338.6
|
395.7
|
1,509.2
|
Interest income
|
0.8
|
0.6
|
0.9
|
0.7
|
3.0
|
Interest expense
|
(10.2)
|
(9.6)
|
(9.2)
|
(9.2)
|
(38.2)
|
Other income/(expense), net
|
1.9
|
(1.8)
|
3.5
|
(1.8)
|
1.8
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Total other expense, net
|
(7.5)
|
(10.8)
|
(4.8)
|
(10.3)
|
(33.4)
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Income from continuing operations before income taxes and equity in earnings/(losses) of equity method investees
|
350.5
|
406.1
|
333.8
|
385.4
|
1,475.8
|
Income taxes
|
(67.3)
|
(80.6)
|
(64.9)
|
(66.3)
|
(279.1)
|
Equity in earnings/(losses) of equity method investees, net of tax
|
0.9
|
(0.6)
|
0.2
|
0.5
|
1.0
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Net Income
|
284.1
|
324.9
|
269.1
|
319.6
|
1,197.7
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Impact of convertible debt, net of tax
|
8.4
|
7.8
|
7.5
|
7.6
|
31.3
|
Numerator for diluted EPS
|
292.5
|
332.7
|
276.6
|
327.2
|
1,229.0
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Weighted average number of share (millions) - diluted
|
595.6
|
594.9
|
593.1
|
592.0
|
593.5
|
Diluted earnings per ADS
|
147.3c
|
167.7c
|
139.8c
|
165.6c
|
621.0c
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Memo:
|
|||||
Previously reported Non GAAP EPS per ADS (prior to treatment of DERMAGRAFT operation as a discontinued operation)
|
147.9c
|
168.0c
|
136.2c
|
157.8c
|
610.5c
|
Q1 2012
|
Q2 2012
|
Q3 2012
|
Q4 2012
|
FY 2012
|
|
$’M
|
$’M
|
$’M
|
$’M
|
$’M
|
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Total revenues
|
48.8
|
52.4
|
33.7
|
18.9
|
153.8
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Cost of product sales
|
9.4
|
16.4
|
15.3
|
16.0
|
57.1
|
Research and development
|
3.0
|
2.8
|
3.7
|
3.0
|
12.5
|
Selling, general and administrative
|
31.4
|
29.3
|
27.2
|
26.8
|
114.7
|
Depreciation
|
1.3
|
1.2
|
1.2
|
1.1
|
4.8
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Total operating expenses
|
45.1
|
49.7
|
47.4
|
46.9
|
189.1
|
Total other expense, net
|
-
|
-
|
-
|
(0.4)
|
(0.4)
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Income/(loss) from discontinued operations before income taxes
|
3.7
|
2.7
|
(13.7)
|
(28.4)
|
(35.7)
|
Income taxes
|
(2.5)
|
(2.3)
|
6.4
|
12.8
|
14.4
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Non GAAP net income/(loss) from discontinued operations
|
1.2
|
0.4
|
(7.3)
|
(15.6)
|
(21.3)
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
Amortization and asset impairments, net of taxes
|
(6.2)
|
(6.4)
|
(6.7)
|
(6.7)
|
(26.0)
|
Acquisition and Integration activities , net of taxes
|
(2.4)
|
(2.5)
|
(0.7)
|
(1.9)
|
(7.5)
|
Legal and litigation costs, net of taxes
|
-
|
(2.2)
|
(1.5)
|
(1.8)
|
(5.5)
|
___________
|
___________
|
___________
|
___________
|
___________
|
|
US GAAP net loss from discontinued operations
|
(7.4)
|
(10.7)
|
(16.2)
|
(26.0)
|
(60.3)
|
___________
|
___________
|
___________
|
___________
|
___________
|
US GAAP Reported
|
Adjustments
|
Non GAAP Reported
|
|
Memo
|
||||||
Non GAAP including DERMAGRAFT operations
|
||||||||||
|
|
|
|
|
|
|
|
|
DERMAGRAFT operations
|
Total
|
|
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|
|
||
|
$M
|
$M
|
$M
|
$M
|
$M
|
$M
|
$M
|
|
$M
|
$M
|
Product sales
|
3,477.1
|
-
|
-
|
-
|
-
|
-
|
3,477.1
|
64.7
|
3,541.8
|
|
Royalties
|
112.4
|
-
|
-
|
-
|
-
|
-
|
112.4
|
-
|
112.4
|
|
Other revenues
|
18.8
|
-
|
-
|
-
|
-
|
-
|
18.8
|
-
|
18.8
|
|
Total revenues
|
3,608.3
|
-
|
-
|
-
|
-
|
-
|
3,608.3
|
64.7
|
3,673.0
|
|
|
||||||||||
Costs and expenses:
|
||||||||||
|
||||||||||
Cost of product sales
|
492.2
|
-
|
-
|
-
|
-
|
(26.5)
|
465.7
|
34.2
|
499.9
|
|
R&D
|
703.3
|
(19.9)
|
-
|
-
|
-
|
(15.2)
|
668.2
|
10.1
|
678.3
|
|
SG&A
|
1,198.0
|
(106.5)
|
-
|
-
|
(8.1)
|
(47.6)
|
1,035.8
|
98.2
|
1,134.0
|
|
Goodwill impairment charge
|
7.1
|
(7.1)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Gain on sale of product rights
|
(14.6)
|
-
|
-
|
14.6
|
-
|
-
|
-
|
-
|
-
|
|
Reorganization costs
|
47.2
|
-
|
-
|
(47.2)
|
-
|
-
|
-
|
-
|
-
|
|
Integration and acquisition costs
|
39.9
|
-
|
(39.9)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Depreciation
|
-
|
-
|
-
|
-
|
-
|
89.3
|
89.3
|
4.0
|
93.3
|
|
Total operating expenses
|
2,473.1
|
(133.5)
|
(39.9)
|
(32.6)
|
(8.1)
|
-
|
2,259.0
|
146.5
|
2,405.5
|
|
|
||||||||||
Operating income
|
1,135.2
|
133.5
|
39.9
|
32.6
|
8.1
|
-
|
1,349.3
|
(81.8)
|
1,267.5
|
|
|
||||||||||
Interest income
|
1.6
|
-
|
-
|
-
|
-
|
-
|
1.6
|
-
|
1.6
|
|
Interest expense
|
(27.5)
|
-
|
-
|
-
|
-
|
-
|
(27.5)
|
0.5
|
(27.0)
|
|
Other expense, net
|
(1.6)
|
-
|
-
|
-
|
-
|
-
|
(1.6)
|
(0.3)
|
(1.9)
|
|
Total other (expense)/income, net
|
(27.5)
|
-
|
-
|
-
|
-
|
-
|
(27.5)
|
0.2
|
(27.3)
|
|
|
||||||||||
Income/(loss) from continuing operations before income taxes and equity in earnings of equity method investees
|
1,107.7
|
133.5
|
39.9
|
32.6
|
8.1
|
-
|
1,321.8
|
(81.6)
|
1,240.2
|
|
|
||||||||||
Income taxes
|
(235.3)
|
(32.4)
|
(3.1)
|
(9.4)
|
(3.1)
|
-
|
(283.3)
|
33.5
|
(249.8)
|
|
|
||||||||||
Equity in earnings of equity method investees, net of tax
|
0.6
|
-
|
-
|
-
|
-
|
-
|
0.6
|
-
|
0.6
|
|
|
||||||||||
Income/(loss) from continuing operations
|
873.0
|
101.1
|
36.8
|
23.2
|
5.0
|
-
|
1,039.1
|
(48.1)
|
991.0
|
|
Loss from discontinued operations
|
(271.9)
|
-
|
-
|
271.9
|
-
|
-
|
-
|
-
|
-
|
|
|
||||||||||
Net income/(loss)
|
601.1
|
101.1
|
36.8
|
295.1
|
5.0
|
-
|
1,039.1
|
(48.1)
|
991.0
|
|
Impact of convertible debt, net of tax
|
22.7
|
-
|
-
|
-
|
-
|
-
|
22.7
|
-
|
22.7
|
|
|
||||||||||
Numerator for diluted EPS
|
623.8
|
101.1
|
36.8
|
295.1
|
5.0
|
-
|
1,061.8
|
(48.1)
|
1,013.7
|
|
|
||||||||||
Weighted average number of shares (millions) – diluted
|
587.5
|
-
|
-
|
-
|
-
|
-
|
587.5
|
-
|
587.5
|
|
|
||||||||||
Diluted earnings per ADS
|
318.6c
|
51.6c
|
18.8c
|
150.6c
|
2.5c
|
-
|
542.1c
|
(24.6c)
|
517.5c
|
|
|
|
|
|
|
|
|
|
|
|
|
The following items are included in Adjustments:
|
||||||||||
(a) Amortization and asset impairments: Impairment of IPR&D intangible assets acquired with Movetis ($19.9 million), impairment of goodwill relating to Shire’s Regenerative Medicine Business ($7.1 million), amortization of intangible assets relating to intellectual property rights acquired ($106.5 million), and tax effect of adjustments;
|
||||||||||
(b) Acquisitions and integration activities: Costs primarily associated with acquisition of SARcode, Lotus and Premacure ($11.5 million), charges related to the change in fair value of contingent consideration ($28.4 million), and tax effect of adjustments;
|
||||||||||
(c) Re-measurement of DAYTRANA contingent consideration to higher fair value ($14.6 million), costs relating to the “One Shire” reorganization announced at Q1 2013 and the collective dismissal and closure of Shire’s facility at Turnhout, Belgium ($47.2 million), tax effect of adjustments and loss from discontinued operations, net of tax ($271.9m);
|
||||||||||
(d) Legal and litigation costs: Costs related to litigation, government investigations, other disputes and external legal costs ($8.1 million), and tax effect of adjustments; and
|
||||||||||
(e) Depreciation reclassification: Depreciation of $89.3 million included in Cost of product sales, R&D costs and SG&A costs for US GAAP separately disclosed for the presentation of Non GAAP earnings.
|
US GAAP Reported
|
Adjustments
|
Non GAAP Reported
|
|
Memo
|
||||||
Non GAAP including DERMAGRAFT operations
|
||||||||||
|
|
|
|
|
|
|
|
|
DERMAGRAFT operations
|
Total
|
|
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|
|
||
|
$M
|
$M
|
$M
|
$M
|
$M
|
$M
|
$M
|
|
$M
|
$M
|
Product sales
|
4,252.9
|
-
|
-
|
-
|
-
|
-
|
4,252.9
|
153.8
|
4,406.7
|
|
Royalties
|
241.6
|
-
|
-
|
-
|
-
|
-
|
241.6
|
-
|
241.6
|
|
Other revenues
|
32.9
|
-
|
-
|
-
|
-
|
-
|
32.9
|
-
|
32.9
|
|
Total revenues
|
4,527.4
|
-
|
-
|
-
|
-
|
-
|
4,527.4
|
153.8
|
4,681.2
|
|
|
||||||||||
Costs and expenses:
|
||||||||||
|
||||||||||
Cost of product sales
|
585.8
|
-
|
-
|
-
|
-
|
(29.0)
|
556.8
|
57.1
|
613.9
|
|
R&D
|
953.0
|
(71.2)
|
(23.0)
|
-
|
-
|
(22.5)
|
836.3
|
12.5
|
848.8
|
|
SG&A
|
1,948.0
|
(280.3)
|
-
|
-
|
(94.1)
|
(57.5)
|
1,516.1
|
114.7
|
1,630.8
|
|
Goodwill impairment charge
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Gain on sale of product rights
|
(18.1)
|
-
|
-
|
18.1
|
-
|
-
|
-
|
-
|
-
|
|
Reorganization costs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Integration and acquisition costs
|
13.5
|
-
|
(13.5)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Depreciation
|
-
|
-
|
-
|
-
|
-
|
109.0
|
109.0
|
4.8
|
113.8
|
|
Total operating expenses
|
3,482.2
|
(351.5)
|
(36.5)
|
18.1
|
(94.1)
|
-
|
3,018.2
|
189.1
|
3,207.3
|
|
|
||||||||||
Operating income
|
1,045.2
|
351.5
|
36.5
|
(18.1)
|
94.1
|
-
|
1,509.2
|
(35.3)
|
1,473.9
|
|
|
||||||||||
Interest income
|
3.0
|
-
|
-
|
-
|
-
|
-
|
3.0
|
0.1
|
3.1
|
|
Interest expense
|
(38.2)
|
-
|
-
|
-
|
-
|
-
|
(38.2)
|
-
|
(38.2)
|
|
Other expense, net
|
(2.2)
|
4.0
|
-
|
-
|
-
|
-
|
1.8
|
(0.5)
|
1.3
|
|
Total other income/(expense), net
|
(37.4)
|
4.0
|
-
|
-
|
-
|
-
|
(33.4)
|
(0.4)
|
(33.8)
|
|
|
||||||||||
Income/(loss) from continuing operations before income taxes and equity in earnings of equity method investees
|
1,007.8
|
355.5
|
36.5
|
(18.1)
|
94.1
|
-
|
1,475.8
|
(35.7)
|
1,440.1
|
|
|
||||||||||
Income taxes
|
(203.1)
|
(45.0)
|
(5.7)
|
-
|
(25.3)
|
-
|
(279.1)
|
14.4
|
(264.7)
|
|
|
||||||||||
Equity in earnings of equity method investees, net of tax
|
1.0
|
-
|
-
|
-
|
-
|
-
|
1.0
|
-
|
1.0
|
|
|
||||||||||
Income/(loss) from continuing operations
|
805.7
|
310.5
|
30.8
|
(18.1)
|
68.8
|
-
|
1,197.7
|
(21.3)
|
1,176.4
|
|
Loss from discontinued operations
|
(60.3)
|
-
|
-
|
60.3
|
-
|
-
|
-
|
-
|
-
|
|
|
||||||||||
Net income/(loss)
|
745.4
|
310.5
|
30.8
|
42.2
|
68.8
|
-
|
1,197.7
|
(21.3)
|
1,176.4
|
|
Impact of convertible debt, net of tax
|
31.3
|
-
|
-
|
-
|
-
|
-
|
31.3
|
-
|
31.3
|
|
|
||||||||||
Numerator for diluted EPS
|
776.7
|
310.5
|
30.8
|
42.2
|
68.8
|
-
|
1,229.0
|
(21.3)
|
1,207.7
|
|
|
||||||||||
Weighted average number of shares (millions) – diluted
|
593.5
|
-
|
-
|
-
|
-
|
-
|
593.5
|
-
|
593.5
|
|
|
||||||||||
Diluted earnings per ADS
|
392.7c
|
156.7c
|
15.5c
|
21.3c
|
34.8c
|
-
|
621.0c
|
(10.5c)
|
610.5c
|
|
|
|
|
|
|
|
|
|
|
|
|
The following items are included in Adjustments:
|
||||||||||
(a) Amortization and asset impairments: Impairment of IPR&D intangible assets for RESOLOR in the EU ($71.2 million), impairment charges of intellectual property rights acquired for RESOLOR in the EU ($126.7 million), amortization of intangible assets relating to intellectual property rights acquired ($153.6 million), impairment of available for sale securities ($4.0 million), and tax effect of adjustments;
|
||||||||||
(b) Acquisitions and integration activities: Up-front payments made to Sangamo Biosciences Inc. and for the acquisition of the US rights to prucalopride (marketed in certain countries in Europe as RESOLOR) ($23.0 million), costs primarily associated with the acquisition of FerroKin ($4.3 million), charges related to the change in fair value of deferred contingent consideration ($9.2 million), and tax effect of adjustments;
|
||||||||||
(c) Divestments, reorganizations and discontinued operations: Re-measurement of DAYTRANA contingent consideration to fair value ($18.1 million), tax effect of adjustments and loss from discontinued operations, net of tax ($60.3m);
|
||||||||||
(d) Legal and litigation costs: Costs related to litigation, government investigations, other disputes and external legal costs ($94.1 million), and tax effect of adjustments; and
|
||||||||||
(e) Depreciation reclassification: Depreciation of $109.0 million included in Cost of product sales, R&D costs and SG&A costs for US GAAP separately disclosed for the presentation of Non GAAP earnings.
|
·
|
Intangible asset amortization and impairment charges; and
|
·
|
Other than temporary impairment of investments.
|
·
|
Up-front payments and milestones in respect of in-licensed and acquired products;
|
·
|
Costs associated with acquisitions, including transaction costs, fair value adjustments on contingent consideration and acquired inventory;
|
·
|
Costs associated with the integration of companies; and
|
·
|
Noncontrolling interests in consolidated variable interest entities.
|
·
|
Gains and losses on the sale of non-core assets;
|
·
|
Costs associated with restructuring and reorganization activities;
|
·
|
Termination costs; and
|
·
|
Income/(losses) from discontinued operations.
|
·
|
Net legal costs related to the settlement of litigation, government investigations and other disputes (excluding internal legal team costs).
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