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Guarantor Financial Information
 6 Months Ended
Jun. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

25.       Guarantor Financial Information

On June 3, 2016, Shire plc (for purposes of this section, the “Parent Guarantor”) provided full and unconditional, joint and several guarantees of the floating rate senior notes due 2018, 2.0% senior notes due 2018, 2.875% senior notes due 2020, 3.6% senior notes due 2022, 4.0% senior notes due 2025, and 5.25% senior notes due 2045 (collectively, “Senior Notes”), of Baxalta, Inc. (for purposes of this section, the “Issuer”), a 100% owned subsidiary of the Company. There were no Shire plc guarantees in respect of the Senior Notes in effect prior to the acquisition date.

 

The following financial information presents the related unaudited Condensed Consolidating Statements of Income for the three and six months ended June 30, 2016 and 2015, the unaudited Condensed Consolidating Statements of Comprehensive Income for the three and six months ended June 30, 2016 and 2015, the Unaudited Condensed Consolidating Balance Sheets as of June 30, 2016 and December 31, 2015, and the Unaudited Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2016 and 2015. Condensed consolidating financial information for the Parent Guarantor and Issuer, on a stand-alone basis, is presented using the equity method of accounting for subsidiaries, in accordance with SEC Regulation S-X Rule 3-10 “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.”

 

      
 Condensed Consolidating Balance Sheet
(As of June 30, 2016)Shire Plc. (Parent Guarantor)Baxalta Inc. (Issuer)Non-Guarantor subsidiariesEliminationsConsolidated
(in millions)     
      
ASSETS     
Current assets:     
Cash and cash equivalents$ -$ 53.4$ 640.0$ -$ 693.4
Restricted cash - - 20.0 - 20.0
Accounts receivable, net - - 2,432.0 (19.6) 2,412.4
Inventories - - 5,798.7 - 5,798.7
Prepaid expenses and other current assets 1.8 7.8 724.0 - 733.6
Intercompany receivables - 631.9 5,286.9 (5,918.8) -
Total current assets 1.8 693.1 14,901.6 (5,938.4) 9,658.1
      
Non-current assets:     
Investments 36,404.6 36,234.8 12,545.5 (85,010.9) 174.0
Property, plant and equipment, net - 18.5 6,577.8 - 6,596.3
Goodwill - - 12,962.4 - 12,962.4
Intangible assets, net - - 40,890.3 - 40,890.3
Other non-current assets 4.6 368.4 275.4 (209.0) 439.4
Total assets$ 36,411.0$ 37,314.8$ 88,153.0$ (91,158.3)$ 70,720.5
      
LIABILITIES AND EQUITY     
Current liabilities:     
Accounts payable and accrued expenses$ 66.0$ 131.5$ 3,550.5$ (19.9)$ 3,728.1
Short term borrowings 905.0 - 1,810.2 - 2,715.2
Intercompany payables 5,270.5 16.1 631.9 (5,918.5) -
Other current liabilities (0.1) 28.7 382.9 - 411.5
Total current liabilities 6,241.4 176.3 6,375.5 (5,938.4) 6,854.8
      
Non-current liabilities:     
Long term borrowings - 5,114.7 16,197.4 - 21,312.1
Deferred tax liability - - 10,252.8 (199.0) 10,053.8
Other non-current liabilities 406.6 79.5 2,260.7 (10.0) 2,736.8
Total liabilities 6,648.0 5,370.5 35,086.4 (6,147.4) 40,957.5
      
Total equity 29,763.0 31,944.3 53,066.6 (85,010.9) 29,763.0
      
Total liabilities and equity $ 36,411.0$ 37,314.8$ 88,153.0$ (91,158.3)$ 70,720.5
      

      
 Condensed Consolidating Balance Sheet
(As of December 31, 2015)Shire Plc. (Parent Guarantor)Baxalta Inc. (Issuer)Non-Guarantor subsidiariesEliminationsConsolidated
(in millions)     
      
ASSETS     
Current assets:     
Cash and cash equivalents$ -$ -$ 135.5$ -$ 135.5
Restricted cash - - 86.0 - 86.0
Accounts receivable, net - - 1,201.2 - 1,201.2
Inventories - - 635.4 - 635.4
Prepaid expenses and other current assets (6.5) - 203.9 - 197.4
Intercompany receivables - - 3,145.3 (3,145.3) -
Total current assets (6.5) - 5,407.3 (3,145.3) 2,255.5
      
Non-current assets:     
Investments 14,477.2 - 50.8 (14,477.2) 50.8
Property, plant and equipment, net - - 828.1 - 828.1
Goodwill - - 4,147.8 - 4,147.8
Intangible assets, net - - 9,173.3 - 9,173.3
Other non-current assets 13.7 - 140.6 - 154.3
Total assets$ 14,484.4$ -$ 19,747.9$ (17,622.5)$ 16,609.8
      
LIABILITIES AND EQUITY     
Current liabilities:     
Accounts payable and accrued expenses$ 10.0$ -$ 2,040.6$ -$ 2,050.6
Short term borrowings 1,500.0 - 11.5 - 1,511.5
Intercompany payables 3,145.3 - - (3,145.3) -
Other current liabilities - - 144.0 - 144.0
Total current liabilities 4,655.3 - 2,196.1 (3,145.3) 3,706.1
      
Non-current liabilities:     
Long term borrowings - - 69.9 - 69.9
Deferred tax liability - - 2,205.9 - 2,205.9
Other non-current liabilities - - 798.8 - 798.8
Total liabilities 4,655.3 - 5,270.7 (3,145.3) 6,780.7
      
Total equity 9,829.1 - 14,477.2 (14,477.2) 9,829.1
      
Total liabilities and equity $ 14,484.4$ -$ 19,747.9$ (17,622.5)$ 16,609.8
      

      
 Condensed Consolidating Statements of Operations
(for the 3 months ended June 30, 2016)Shire Plc (Parent Guarantor)Baxalta Inc. (Issuer)Non-Guarantor subsidiariesEliminationsConsolidated
(in millions)     
      
      
Revenues:      
Product sales $ -$ -$ 2,322.1$ -$ 2,322.1
Royalties & other revenues - - 107.0 - 107.0
Total revenues - - 2,429.1 - 2,429.1
      
Costs and expenses:      
Cost of sales - 5.6 772.5 - 778.1
Research and development - 1.0 293.8 - 294.8
Selling, general and administrative 23.4 97.2 559.3 (4.6) 675.3
Integration and acquisition costs - 114.9 248.1 - 363.0
Amortization of acquired intangible assets - - 213.0 - 213.0
Other operating expenses - - 8.7 - 8.7
Total operating expenses 23.4 218.7 2,095.4 (4.6) 2,332.9
      
Operating income (loss) from continuing operations (23.4) (218.7) 333.7 4.6 96.2
      
Interest income/(expense), net (22.6) (5.7) (57.3) - (85.6)
Other income/(expense), net 1.2 7.7 (2.9) - 6.0
Total other income/(expense), net (21.4) 2.0 (60.2) - (79.6)
      
Income/(loss) from continuing operations before income taxes and equity in (losses)/earnings of equity method investees (44.8) (216.7) 273.5 4.6 16.6
      
Income tax benefit 0.9 58.8 11.2 - 70.9
Equity in income/(losses) of equity method investees, net of taxes (118.2) (131.5) (0.9) 249.7 (0.9)
      
Income/(loss) from continuing operations, net of taxes (162.1) (289.4) 283.8 254.3 86.6
Loss from discontinued operations, net of taxes1  - - (248.7) - (248.7)
Net income/(loss) (162.1) (289.4) 35.1 254.3 (162.1)
      
Comprehensive income/(loss)$ (388.5)$ (291.2)$ (189.5)$ 480.7$ (388.5)
      

      
 Condensed Consolidating Statements of Operations
(for the 6 months ended June 30, 2016)Shire Plc (Parent Guarantor)Baxalta Inc. (Issuer)Non-Guarantor subsidiariesEliminationsConsolidated
(in millions)     
      
Revenues:      
Product sales $ -$ -$ 3,949.4$ -$ 3,949.4
Royalties & other revenues - - 189.0 - 189.0
Total revenues - - 4,138.4 - 4,138.4
      
Costs and expenses:      
Cost of product sales - 5.6 1,021.1 - 1,026.7
Research and development - 1.0 510.9 - 511.9
Selling, general and administrative 35.8 97.2 1,017.2 - 1,150.2
Integration and acquisition costs - 114.9 339.2 - 454.1
Amortization of acquired intangible assets - - 347.6 - 347.6
Other operating expenses - - 7.8 - 7.8
Total operating expenses 35.8 218.7 3,243.8 - 3,498.3
      
Operating income (loss) from continuing operations (35.8) (218.7) 894.6 - 640.1
      
Interest income/(expense), net (44.5) (5.7) (79.1) - (129.3)
Other (expense)/income, net 0.9 7.7 (11.1) - (2.5)
Total other income/(expense), net (43.6) 2.0 (90.2) - (131.8)
      
Income/(loss) from continuing operations before income taxes and equity in (losses)/earnings of equity method investees (79.4) (216.7) 804.4 - 508.3
      
Income tax benefit/(charge) 1.9 58.8 (71.9) - (11.2)
Equity in income/(losses) of equity method investees, net of taxes 334.4 (131.5) (1.0) (202.9) (1.0)
      
Income/(loss) from continuing operations, net of taxes 256.9 (289.4) 731.5 (202.9) 496.1
Loss from discontinued operations, net of taxes1  - - (239.2) - (239.2)
Net income/(loss) 256.9 (289.4) 492.3 (202.9) 256.9
      
Comprehensive (loss)/income$ 54.9$ (291.2)$ 292.1$ (0.9)$ 54.9
      

      
 Condensed Consolidating Statements of Operations
(for the 3 months ended June 30, 2015)Shire Plc (Parent Guarantor)Baxalta Inc. (Issuer)Non-Guarantor subsidiariesEliminationsConsolidated
(in millions)     
      
Revenues:      
Product sales $ -$ -$ 1,476.2$ -$ 1,476.2
Royalties & other revenues - - 81.4 - 81.4
Total revenues - - 1,557.6 - 1,557.6
      
Costs and expenses:      
Cost of product sales - - 228.0 - 228.0
Research and development - - 775.9 - 775.9
Selling, general and administrative 7.4 - 488.2 0.4 496.0
Integration and acquisition costs - - (212.4) - (212.4)
Amortization of acquired intangible assets - - 131.3 - 131.3
Other operating expenses - - 6.2 - 6.2
Total operating expenses 7.4 - 1,417.2 0.4 1,425.0
      
Operating income (loss) from continuing operations (7.4) - 140.4 (0.4) 132.6
      
Interest income/(expense), net (16.4) - 5.7 - (10.7)
Other expense, net (0.2) - (1.8) - (2.0)
Total other income/(expense), net (16.6) - 3.9 - (12.7)
      
Income/(loss) from continuing operations before income taxes and equity in (losses)/earnings of equity method investees (24.0) - 144.3 (0.4) 119.9
      
Income tax benefit/(charge) 0.8 - 43.3 - 44.1
Equity in income/(losses) of equity method investees, net of taxes 182.8 - 0.1 (182.8) 0.1
      
Income/(loss) from continuing operations, net of taxes 159.6 - 187.7 (183.2) 164.1
Loss from discontinued operations, net of taxes1  - - (4.5) - (4.5)
Net income/(loss) 159.6 - 183.2 (183.2) 159.6
      
Comprehensive income/(loss)$ 208.4$ -$ 232.0$ (232.0)$ 208.4
      

      
 Condensed Consolidating Statements of Operations
(for the 6 months ended June 30, 2015)Shire Plc (Parent Guarantor)Baxalta Inc. (Issuer)Non-Guarantor subsidiariesEliminationsConsolidated
(in millions)     
      
Revenues:      
Product sales $ -$ -$ 2,899.4$ -$ 2,899.4
Royalties & other revenues - - 146.6 - 146.6
Total revenues - - 3,046.0 - 3,046.0
      
Costs and expenses:      
Cost of product sales - - 455.8 - 455.8
Research and development - - 969.6 - 969.6
Selling, general and administrative 12.8 - 900.8 0.7 914.3
Integration and acquisition costs - - (136.7) - (136.7)
Amortization of acquired intangible assets - - 219.6 - 219.6
Other operating expenses - - 16.2 - 16.2
Total operating expenses 12.8 - 2,425.3 0.7 2,438.8
      
Operating income/(loss) from continuing operations (12.8) - 620.7 (0.7) 607.2
      
Interest income/(expense), net (30.4) - 12.1 - (18.3)
Other income/(expense), net 1.2 - 1.1 - 2.3
Total other (expense)/income, net (29.2) - 13.2 - (16.0)
      
Income/(loss) from continuing operations before income taxes and equity in (losses)/earnings of equity method investees (42.0) - 633.9 (0.7) 591.2
      
Income tax benefit/(charge) 1.3 - (14.6) - (13.3)
Equity in income/(losses) of equity method investees, net of taxes 610.7 - (0.9) (610.7) (0.9)
      
Income/(loss) from continuing operations, net of taxes 570.0 - 618.4 (611.4) 577.0
Loss from discontinued operations, net of taxes1  - - (7.0) - (7.0)
Net income/(loss) 570.0 - 611.4 (611.4) 570.0
      
Comprehensive (loss)/income$ 490.0$ -$ 531.4$ (531.4)$ 490.0
      

      
 Condensed Consolidating Statement of Cash Flows
(For the six months ended June 30, 2016)Shire Plc. (Parent Guarantor)Baxalta Inc. (Issuer)Non-Guarantor subsidiariesEliminationsConsolidated
(in millions)     
      
CASH FLOWS FROM OPERATING ACTIVITIES     
      
Net cash provided (used in) operating activities $ (13.8)$ 1.6$ 992.6$ -$ 980.4
      
CASH FLOWS FROM INVESTING ACTIVITIES:      
Transactions with subsidiaries (1,900.0) - (21,625.6) 23,525.6 -
Movements in restricted cash - - 67.2 - 67.2
Purchases of businesses, net of cash acquired (19,049.0) - 1,572.8 - (17,476.2)
Purchases of non-current investments and PP&E - (1.9) (177.2) - (179.1)
Proceeds from sale of product rights - - 5.6 - 5.6
Other, net - - (2.3) - (2.3)
Net cash provided by (used in) investing activities (20,949.0) (1.9) (20,159.5) 23,525.6 (17,584.8)
      
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from revolving line of credit, long term and short term borrowings 905.0 - 17,990.0 - 18,895.0
Repayment of revolving line of credit, long term and short term borrowings (1,500.0) - (0.3) - (1,500.3)
Proceeds from intercompany borrowings 21,572.2 53.4 1,900.0 (23,525.6) -
Payment of dividend (14.4) - (115.8) - (130.2)
Excess tax benefit associated with exercise of stock options - - 5.1 - 5.1
Debt issuance costs - - (112.3) - (112.3)
Contingent consideration payments - - (4.2) - (4.2)
Other, net - 0.3 10.8 - 11.1
Net cash provided by (used in) financing activities 20,962.8 53.7 19,673.3 (23,525.6) 17,164.2
Effect of foreign exchange rate changes on cash and cash equivalents - - (1.9) - (1.9)
      
Net increase in cash and cash equivalents - 53.4 504.5 - 557.9
Cash and cash equivalents at beginning of period - - 135.5 - 135.5
Cash and cash equivalents at end of period $ -$ 53.4$ 640.0$ -$ 693.4
      
      

      
 Condensed Consolidating Statement of Cash Flows
(For the six months ended June 30, 2015)Shire Plc. (Parent Guarantor)Baxalta Inc. (Issuer)Non-Guarantor subsidiariesEliminationsConsolidated
(in millions)     
      
CASH FLOWS FROM OPERATING ACTIVITIES     
      
Net cash provided (used in) operating activities $ (85.0)$ -$ 1,098.9$ -$ 1,013.9
      
CASH FLOWS FROM INVESTING ACTIVITIES:      
Net transactions with subsidiaries (3,570.0) - (2,345.1) 5,915.1 -
Movements in restricted cash - - (19.5) - (19.5)
Purchases of businesses, net of cash acquired - - (5,249.2) - (5,249.2)
Purchases of non-current investments and PP&E - - (44.7) - (44.7)
Proceeds from short-term investments - - 67.0 - 67.0
Proceeds from sale of product rights - - 8.8 - 8.8
Proceeds from disposal of non-current investments - - 4.4 - 4.4
Other, net - - (0.9) - (0.9)
Net cash provided by (used in) investing activities (3,570.0) - (7,579.2) 5,915.1 (5,234.1)
      
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from revolving line of credit, long term and short term borrowings 2,850.0 - 75.6 - 2,925.6
Repayment of revolving line of credit, long term and short term borrowings (1,530.0) - (0.9) - (1,530.9)
Net proceeds from/(to) intercompany borrowings 2,345.1 - 3,570.0 (5,915.1) -
Payment of dividend (5.6) - (104.6) - (110.2)
Excess tax benefit associated with exercise of stock options - - 27.0 - 27.0
Contingent consideration payments - - (4.5) - (4.5)
Other, net (4.5) - - - (4.5)
Net cash provided by (used in) financing activities 3,655.0 - 3,562.6 (5,915.1) 1,302.5
      
Effect of foreign exchange rate changes on cash and cash equivalents - - (0.7) - (0.7)
      
Net decrease in cash and cash equivalents - - (2,918.4) - (2,918.4)
Cash and cash equivalents at beginning of period - - 2,982.4 - 2,982.4
Cash and cash equivalents at end of period $ -$ -$ 64.0$ -$ 64.0