On January 23, 2013 Shire announced that it had decided to proceed with a collective dismissal and business closure at its site in Turnhout, Belgium. This decision follows the conclusion of an information and consultation process. Shire will continue to sell RESOLOR in Europe and the supply of RESOLOR for patients in Europe who rely on the medicine will not be affected. The closure of the Turnhout site was completed during 2013. In the year to December 31, 2013 the Company incurred reorganization costs totaling $23.6 million, relating to employee involuntary termination benefits and other re-organization costs.

On May 2, 2013, the Company announced that there would be a reorganization of the business to integrate the three divisions into a simplified One Shire organization in order to drive future growth and innovation.

On November 7, 2013 the Company announced that, as part of the One Shire reorganization, the Company had undertaken a review of all of Shire's pipeline programs to identify those projects that fit with Shire's new strategic direction and have an acceptable likelihood of success. Shire's pre-clinical investments will now be primarily focused on Rare Diseases, meaning that the majority of other pre-clinical projects will not continue. Several clinical programs have also been discontinued. The impact of the prioritization and rationalization of the Company's development portfolio means many of the R&D programs currently run from Basingstoke, UK will cease. Taken together with the overall streamlining of the R&D organization, this has resulted in a significant number of R&D roles in Basingstoke being eliminated and some positions being re-located. A small number of functional roles that support R&D in Basingstoke have also been affected.

In addition the Company also announced plans to relocate its international commercial hub from Nyon, Switzerland to Zug, Switzerland. All Nyon-based employees have been impacted by the One Shire transition and the proposed move to Zug. Shire is planning for the new Zug office to be ready for occupancy in summer 2014, and will phase out the Nyon office over a reasonable period of time to enable employees and their families to manage their re-locations.

In the year to December 31, 2013 the Company incurred reorganization costs totaling $64.6 million, relating to employee involuntary termination benefits and other reorganization costs. The One Shire reorganization is expected to be substantially completed by the end of 2014. Currently, the Company estimates that further costs in respect of the One Shire reorganization of approximately $150 million will be expensed as incurred during 2014.

The liability for reorganization costs arising on the closure of Company's site in Turnhout, Belgium and the One Shire business reorganization at December 31, 2013 is as follows:.



	Opening liability	Amount		Closing liability at
	at January 1,	charged to re-		December 31,
	2013	organization	Paid/Utilized	2013
	$'M	$'M	$'M	$'M
	___________	____________	___________	___________

Involuntary termination benefits	-	44.7	(29.4)	15.3
Other reorganization costs	-	43.5	(34.0)	9.5
	___________	____________	___________	___________
	-	88.2	(63.4)	24.8
	___________	___________	___________	___________

At December 31, 2013 the closing reorganization cost liability was recorded within accounts payable and accrued expenses ($24.8 million).