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

As part of the One Shire reorganization, the Company undertook a review of all of its pipeline programs and identified those projects that fit with the Company's new strategic direction and have an acceptable likelihood of success. Shire's pre-clinical investments are now primarily focused on Rare Diseases, meaning that the majority of other pre-clinical projects have been discontinued. 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 have ceased. 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 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 three months to March 31, 2014 the Company incurred reorganization costs totaling $49.4 million, relating to employee involuntary termination benefits and other reorganization costs. Reorganization costs of $114.0 million have been incurred since May 2013. 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 $101 million will be expensed as incurred during 2014.

The liability for reorganization costs arising from the One Shire business reorganization at March 31, 2014 is as follows:



	Opening liability	Amount		Closing liability at
	at January 1,	charged to re-		March 31,
	2014	organization	Paid/Utilized	2014
	$'M	$'M	$'M	$'M
	___________	____________	___________	___________

Involuntary termination benefits	15.3	42.2	(44.5)	13.0
Other reorganization costs	9.5	7.2	(14.5)	2.2
	___________	___________	___________	___________
	24.8	49.4	(59.0)	15.2
	___________	___________	___________	___________

At March 31, 2014 the closing reorganization cost liability was recorded within accounts payable and accrued expenses ($15.2 million).