Earnings Per Share

6 Months Ended

Jun. 30, 2016

16. Earnings per Share

The following table reconciles net income and loss and the weighted average ordinary shares outstanding for basic and diluted earnings per share for the periods presented:



	3 Months Ended June 30,		6 Months Ended June 30,
(in millions)	2016	2015	2016	2015

Income from continuing operations, net of taxes	86.6	164.1	496.1	577.0
Gain/(loss) from discontinued operations¹	(248.7)	(4.5)	(239.2)	(7.0)
	_________________	_________________	_________________	_________________
Numerator for basic and diluted earnings per share	(162.1)	159.6	256.9	570.0
	_________________	_________________	_________________	_________________


Weighted average number of shares:
(in millions)

Basic	682.8	590.5	637.3	589.8
Effect of dilutive shares:
Share-based awards to employees	-	2.7	2.8	3.2
	_________________	_________________	_________________	_________________
Diluted	682.8	593.2	640.1	593.0
	_________________	_________________	_________________	_________________

Weighted average number of basic shares excludes shares purchased by the Employee Benefit Trust (“EBT”) and under the shares buy-back program are presented by Shire as treasury stock. Share-based awards to employees are calculated using the treasury method.

The share equivalents not included in the calculation of the diluted weighted average number of shares are shown below:


	3 Months Ended June 30,		6 Months Ended June 30,
	2016	2015	2016	2015
	No. of shares	No. of shares	No. of shares	No. of shares
	Millions	Millions	Millions	Millions
	_________________	_________________	_________________	_________________
Share-based awards to employees	8.3	1.0	4.4	3.2
	_________________	_________________	_________________	_________________

Certain stock options have been excluded from the calculation of diluted Earnings per Share (“EPS”) for the six months ended June 30, 2016 and for the three and six months ended June 30, 2015 because either their exercise prices exceeded Shire's average share price during the calculation period or the required performance conditions were not satisfied as of the balance sheet date.

Stock options for the three months ended June 30, 2016 have been excluded from the calculation of diluted EPS because the inclusion of these shares would have been antidilutive.