Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 936,402 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Trading Symbol | SHP, SHPG | |
Entity Registrant Name | Shire plc | |
Entity Common Stock, Shares Outstanding | 914,818,708 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 193.2 | $ 472.4 |
Restricted cash | 39.9 | 39.4 |
Accounts receivable, net | 3,207.4 | 3,009.8 |
Inventories | 3,458.7 | 3,291.5 |
Other current assets | 900.1 | 795.3 |
Total current assets | 7,799.3 | 7,608.4 |
Investments | 470.7 | 241.1 |
Property, plant and equipment (PP&E), net | 6,453 | 6,635.4 |
Goodwill | 19,095 | 19,831.7 |
Intangible assets, net | 29,625.4 | 33,046.1 |
Deferred tax asset | 151.2 | 188.8 |
Other non-current assets | 171.3 | 205.4 |
Total assets | 63,765.9 | 67,756.9 |
Current liabilities: | ||
Accounts payable and accrued expenses | 4,025.1 | 4,184.5 |
Short term borrowings and capital leases | 4,248.7 | 2,788.7 |
Other current liabilities | 237.8 | 908.8 |
Total current liabilities | 8,511.6 | 7,882 |
Long term borrowings and capital leases | 11,098 | 16,752.4 |
Deferred tax liability | 4,571.2 | 4,748.2 |
Other non-current liabilities | 2,294.9 | 2,197.9 |
Total liabilities | 26,475.7 | 31,580.5 |
Commitments and contingencies | ||
Equity: | ||
Common stock of 5p par value; 1,500 shares authorized; and 922.1 shares issued and outstanding (2017: 1,500 shares authorized; and 917.1 shares issued and outstanding) | 81.9 | 81.6 |
Additional paid-in capital | 25,390.2 | 25,082.2 |
Treasury stock: 7.5 shares (2017: 8.4 shares) | (260.7) | (283) |
Accumulated other comprehensive income | 626.4 | 1,375 |
Retained earnings | 11,452.4 | 9,920.6 |
Total equity | 37,290.2 | 36,176.4 |
Total liabilities and equity | $ 63,765.9 | $ 67,756.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - £ / shares shares in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value (in GBP per share) | £ 0.05 | £ 0.05 |
Common Stock, Shares Authorized | 1,500 | 1,500 |
Common Stock, Shares, Issued | 922.1 | 917.1 |
Common Stock, Shares, Outstanding | 922.1 | 917.1 |
Treasury Stock, Shares | 7.5 | 8.4 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Total revenues | $ 3,871.7 | $ 3,697.6 | $ 11,556.9 | $ 11,015.7 |
Costs and expenses: | ||||
Cost of sales | 1,157.6 | 1,001.4 | 3,398.3 | 3,437.3 |
Research and development | 407.2 | 402.8 | 1,240 | 1,324.5 |
Selling, general and administrative | 836.8 | 859.7 | 2,549.3 | 2,647.7 |
Amortization of acquired intangible assets | 433.7 | 482.4 | 1,375.3 | 1,280.5 |
Integration and acquisition costs | 93 | 237 | 512 | 696.7 |
Reorganization costs | 254.8 | 5.4 | 268.9 | 24.5 |
(Gain)/loss on sale of Oncology and product rights | (267.2) | 0.3 | (267.2) | (0.4) |
Total operating expenses | 2,915.9 | 2,989 | 9,076.6 | 9,410.8 |
Operating income from continuing operations | 955.8 | 708.6 | 2,480.3 | 1,604.9 |
Interest income | 1.3 | 1.5 | 4.8 | 5.7 |
Interest expense | (125.2) | (141.8) | (378.1) | (425.4) |
Other (expense)/income, net | (96.1) | (0.2) | (43.9) | 6.8 |
Total other expense, net | (220) | (140.5) | (417.2) | (412.9) |
Income from continuing operations before income taxes and equity in earnings of equity method investees | 735.8 | 568.1 | 2,063.1 | 1,192 |
Income taxes | (203.3) | (13.5) | (371) | (44.6) |
Equity in earnings/(losses) of equity method investees, net of taxes | 4.7 | (3.4) | 11.2 | 0.1 |
Income from continuing operations, net of taxes | 537.2 | 551.2 | 1,703.3 | 1,147.5 |
(Loss)/gain from discontinued operations, net of taxes | 0 | (0.4) | 0 | 18.6 |
Net income | $ 537.2 | $ 550.8 | $ 1,703.3 | $ 1,166.1 |
Earnings per Ordinary Share – basic | ||||
Earnings from continuing operations (in usd per share) | $ 0.59 | $ 0.61 | $ 1.87 | $ 1.27 |
Earnings from discontinued operations (in usd per share) | 0 | 0 | 0 | 0.02 |
Earnings per Ordinary Share - basic (in usd per share) | 0.59 | 0.61 | 1.87 | 1.29 |
Earnings per Ordinary Share – diluted | ||||
Earnings from continuing operations (in usd per share) | 0.58 | 0.60 | 1.86 | 1.26 |
Earnings from discontinued operations (in usd per share) | 0 | 0 | 0 | 0.02 |
Earnings per Ordinary Share - diluted (in usd per share) | $ 0.58 | $ 0.60 | $ 1.86 | $ 1.28 |
Weighted average number of shares: | ||||
Basic (in shares) | 914 | 907.2 | 912 | 905.9 |
Diluted (in shares) | 921.1 | 911.6 | 916.9 | 912.1 |
Product sales | ||||
Revenues: | ||||
Total revenues | $ 3,752.8 | $ 3,533.8 | $ 11,198.5 | $ 10,537.9 |
Royalties and other revenues | ||||
Revenues: | ||||
Total revenues | $ 118.9 | $ 163.8 | $ 358.4 | $ 477.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 537.2 | $ 550.8 | $ 1,703.3 | $ 1,166.1 | |
Other comprehensive income: | |||||
Foreign currency translation adjustments | (100.7) | 744.6 | (679.2) | 2,441.1 | |
Pension and other employee benefits (net of tax expense of $nil for the three and nine months ended September 30, 2018 and $nil and $0.9 for the three and nine months ended September 30, 2017, respectively) | (0.5) | 0.4 | (1.5) | 11 | |
Unrealized gain on available-for-sale securities (net of tax expense of $nil for the three and nine months ended September 30, 2018 and $5.5 and $7.2 for the three and nine months ended September 30, 2017, respectively) | 0 | 23.8 | (67.9) | 20.3 | |
Hedging activities (net of tax benefit of $nil for the three and nine months ended September 30, 2018 and $nil and $3.2 for the three and nine months ended September 30, 2017, respectively) | 0 | 0.2 | 0 | (5.7) | |
Comprehensive income | 436 | $ 1,319.8 | 954.7 | $ 3,632.8 | |
Components of accumulated other comprehensive loss | |||||
Foreign currency translation adjustments | 600.4 | 600.4 | $ 1,279.6 | ||
Pension and other employee benefits, net of taxes | 26 | 26 | 27.5 | ||
Unrealized holding gain on available-for-sale securities, net of taxes | 0 | 0 | 67.9 | ||
Accumulated other comprehensive income | $ 626.4 | $ 626.4 | $ 1,375 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and other employee benefits, tax expense | $ 0 | $ 0 | $ 0 | $ 0.9 |
Unrealized holding gain on available-for-sale securities, tax expense | 0 | 5.5 | 0 | 7.2 |
Hedging activities, tax benefit | $ 0 | $ 0 | $ 0 | $ 3.2 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Additional paid-in capital | Treasury stock | Accumulated other comprehensive income | Retained earnings |
Beginning balance at Dec. 31, 2016 | $ (1,497.6) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 1,166.1 | |||||
Other comprehensive income (loss), net of tax | 2,466.7 | |||||
Dividends | $ (234.7) | |||||
Ending balance at Sep. 30, 2017 | 969.1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment | ASU 2014-09 | 52 | 52 | ||||
Cumulative-effect adjustment | ASU 2016-01 | 67.9 | 67.9 | ||||
Cumulative-effect adjustment | ASU 2016-06 | 7.5 | 7.5 | ||||
Beginning balance at Dec. 31, 2017 | $ 36,176.4 | $ 81.6 | $ 25,082.2 | $ (283) | 1,375 | 9,920.6 |
Beginning balance (in shares) at Dec. 31, 2017 | 917.1 | 917.1 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 1,703.3 | |||||
Other comprehensive income (loss), net of tax | (748.6) | (748.6) | ||||
Shares issued under employee benefit plans and other (in shares) | 5 | |||||
Shares issued under employee benefit plans and other | 172.6 | $ 0.3 | 172.3 | |||
Share-based compensation | 135.7 | 135.7 | ||||
Shares released by employee benefit trust to satisfy exercise of stock options | 22.3 | (22.3) | ||||
Dividends | (276.6) | (276.6) | ||||
Ending balance at Sep. 30, 2018 | $ 37,290.2 | $ 81.9 | $ 25,390.2 | $ (260.7) | $ 626.4 | $ 11,452.4 |
Ending balance (in shares) at Sep. 30, 2018 | 922.1 | 922.1 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Dividends | $ (276.6) | |
Common stock | ||
Dividends declared (in usd per share) | $ 0.2979 | $ 0.257 |
Dividends paid (in usd per share) | 0.2979 | 0.257 |
ADS | ||
Dividends declared (in usd per share) | 0.8937 | 0.771 |
Dividends paid (in usd per share) | $ 0.8937 | $ 0.771 |
Retained earnings | ||
Dividends | $ (276.6) | $ (234.7) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,703.3 | $ 1,166.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,808.1 | 1,644 |
Share based compensation | 135.7 | 159.7 |
Expense related to the unwind of inventory fair value adjustments | 40.9 | 688.7 |
Change in deferred taxes | 14.2 | (392.4) |
Change in fair value of contingent consideration | 100.4 | 144.3 |
Impairment of PP&E and intangible assets | 169.5 | 167.6 |
Gain on sale of Oncology franchise | (267.2) | 0 |
Other, net | (7.2) | 99.2 |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (362) | (301.5) |
(Decrease)/increase in sales deduction accrual | (22.6) | 94 |
Increase in inventory | (305.4) | (245.2) |
Decrease in prepayments and other assets | 44.6 | 70.4 |
Decrease in accounts payable and other liabilities | (244.8) | (557.8) |
Net cash provided by operating activities | 2,807.5 | 2,737.1 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of Oncology franchise | 2,412.2 | 0 |
Purchases of PP&E | (564.6) | (565.5) |
Acquisition of business, net of cash acquired | (104.7) | 0 |
Proceeds from sale of investments | 31.8 | 48.1 |
Other, net | (97.9) | 34.8 |
Net cash provided by/(used in) investing activities | 1,676.8 | (482.6) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit, long term and short term borrowings | 3,735.3 | 3,261.6 |
Repayment of revolving line of credit, long term and short term borrowings | (7,969) | (5,664.5) |
Payment of contingent consideration | (396) | 0 |
Payment of dividend | (276.6) | (234.7) |
Proceeds from issuance of stock for share-based compensation arrangements | 180.8 | 92.2 |
Other, net | (25.6) | (26.2) |
Net cash used in financing activities | (4,751.1) | (2,571.6) |
Effect of foreign exchange rate changes on cash and cash equivalents | (11.9) | 6.2 |
Net decrease in cash, cash equivalents, and restricted cash | (278.7) | (310.9) |
Cash, cash equivalents, and restricted cash at beginning of period | 511.8 | 554.5 |
Cash, cash equivalents, and restricted cash at end of period | 233.1 | 243.6 |
Supplemental information: | ||
Interest paid | 427.1 | 434.9 |
Income taxes paid, net | 528.4 | 308 |
Cash, cash equivalents, and restricted cash at end of period | $ 511.8 | $ 554.5 |
Description of Operations
Description of Operations | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Operations | Description of Operations Shire plc and its subsidiaries (collectively referred to as either “Shire” or the “Company”) is the leading global biotechnology company focused on serving people with rare diseases. Some of the Company's marketed products include GAMMAGARD, HYQVIA, and CINRYZE for Immunology, ADVATE/ADYNOVATE, VONVENDI, and FEIBA for Hematology, ELAPRASE and REPLAGAL for Genetic Diseases, VYVANSE, ADDERALL XR, and MYDAYIS for Neuroscience, GATTEX/REVESTIVE and NATPARA/NATPAR for Internal Medicine, and XIIDRA for Ophthalmics. The Company has grown both organically and through acquisition, completing a series of major transactions that have brought therapeutic, geographic, and pipeline growth and diversification. The Company will continue to conduct its own research and development (R&D) focused on rare diseases, as well as evaluate companies, products and pipeline opportunities that offer a strategic fit and have the potential to deliver value to all of the Company’s stakeholders: patients, physicians, policy makers, payers, partners, investors, and employees. On August 31, 2018, Shire completed the sale of its Oncology franchise to Servier S.A.S. (Servier) for $2.4 billion . On May 8, 2018, the boards of Takeda Pharmaceutical Company Limited (Takeda) and Shire announced that they have reached agreement on the terms of a recommended offer pursuant to which Takeda will acquire the entire issued and to be issued ordinary share capital of Shire (the "Acquisition"). Shire shareholders will be entitled to receive $30.33 in cash for each Shire ordinary share and either 0.839 of a new share in Takeda (as proposed to be issued in connection with the Acquisition) (each a "New Takeda Share") or 1.678 ADSs in Takeda (one ADS equals 0.5 New Takeda Share). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation These interim financial statements of Shire plc and its subsidiaries are unaudited. They have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP). The Consolidated Balance Sheet as of December 31, 2017 was derived from the Audited Consolidated Financial Statements as of that date. These interim Unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , as filed with the SEC on February 20, 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from these interim financial statements. However, these interim financial statements include all adjustments, consisting of normal recurring adjustments, which are, in the opinion of management, necessary to fairly state the results of the interim period and the Company believes that the disclosures are adequate to make the information presented not misleading. Interim results are not necessarily indicative of results to be expected for the full year. Use of Estimates The preparation of Financial Statements, in conformity with U.S. GAAP and SEC regulations, requires management to make estimates, judgments, and assumptions that affect the reported and disclosed amounts of assets, liabilities, and equity at the date of the Unaudited Consolidated Financial Statements and reported amounts of revenues and expenses during the period. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. Estimates are based on historical experience, current conditions, and on various other assumptions that are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity and the amounts of revenues and expenses. Actual results may differ from these estimates under different assumptions or conditions. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that the Company adopts as of the specified effective date. Unless otherwise discussed below, the Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on the Company’s financial position or results of operations upon adoption. Adopted during the current period Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The FASB subsequently issued several additional ASUs amending the guidance and deferred effective date to January 1, 2018. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements, and financial instruments. Under this accounting standard, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The Company adopted this new standard on January 1, 2018, using the modified retrospective transition method. Under this method, the Company recognized the cumulative-effect of initially applying the standard as an adjustment to the opening balance of retained earnings. As a result, the Company recorded a cumulative-effect adjustment to increase Retained earnings by $ 52.0 million , net of tax of $15.6 million . The modified retrospective transition method was applied only to the contracts that were not completed as of the adoption date. For a complete discussion of accounting for revenue with customers, refer to Note 3 , Revenue Recognition , to these Unaudited Consolidated Financial Statements. Impact of adoption As a result of adopting the new accounting for revenue with customers on January 1, 2018 , the following financial statement line items as of and for the three and nine months ended September 30, 2018 were affected. The following tables provide the amounts as reported in these Unaudited Consolidated Financial Statements and as if the previous accounting guidance was in effect. Unaudited Consolidated Balance Sheets As of September 30, 2018 (In millions) As reported Before Adoption of Topic 606 Other current assets $ 900.1 $ 844.5 Other current liabilities 237.8 238.8 Other non-current liabilities 2,294.9 2,296.9 Retained earnings 11,452.4 11,414.5 Unaudited Consolidated Statements of Operations Three months ended September 30, 2018 Nine months ended September 30, 2018 (In millions, except per share) As reported Before Adoption of Topic 606 As reported Before Adoption of Topic 606 Product sales $ 3,752.8 $ 3,741.5 $ 11,198.5 $ 11,162.5 Royalties and other revenues 118.9 128.0 358.4 412.7 Net income 537.2 535.5 1,703.3 1,717.4 Net income per share applicable to common shareholders - basic 0.59 0.59 1.87 1.88 Net income per share applicable to common shareholders - diluted 0.58 0.58 1.86 1.87 Unaudited Consolidated Statements of Cash Flows Nine months ended September 30, 2018 (In millions) As reported Before Adoption of Topic 606 Net income $ 1,703.3 $ 1,717.4 Adjustments to reconcile net income to net cash provided by operating activities: Decrease in prepayments and other assets 44.6 100.2 Decrease in accounts payable and other liabilities (244.8 ) (241.8 ) Financial Instrument Accounting In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard amends certain aspects of accounting and disclosure requirements of financial instruments, including the requirement that equity investments with readily determinable fair values be measured at fair value with changes in fair value recognized in the results of operations. The new standard was effective January 1, 2018. The Company adopted ASU No. 2016-01 in the first quarter of 2018. As a result of the adoption, the Company recorded a cumulative-effect adjustment to Retained earnings of $67.9 million to reclassify unrealized gains from available-for-sale equity securities previously recognized in the Other comprehensive income. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies certain aspects of the statement of cash flows, and aims to reduce diversity in practice regarding how certain transactions are classified in the statement of cash flows. This standard was effective January 1, 2018. The Company adopted ASU No. 2016-15 in the first quarter of 2018. The adoption of this guidance did not have a material impact on the Company's financial position and results of operations. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new guidance is intended to reduce diversity in the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The guidance requires that restricted cash and restricted cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. This standard was effective January 1, 2018. The Company adopted ASU No. 2016-18 in the first quarter of 2018 and amended the presentation of its statements of cash flows for the nine months ended September 30, 2018 and 2017 accordingly. The adoption of this guidance did not have a material impact on the Company's financial position and results of operations. Income Taxes In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers Other than Inventory. This standard removes the current exception in U.S. GAAP prohibiting entities from recognizing current and deferred income tax expenses or benefits related to transfer of assets, other than inventory, within the consolidated entity. The current exception to defer the recognition of any tax impact on the transfer of inventory within the consolidated entity until it is sold to a third party remains unaffected. The standard was effective January 1, 2018. The Company adopted the new standard in the first quarter of 2018 using a modified retrospective approach with a cumulative-effect adjustment to opening retained earnings. The adoption of this guidance did not have a material impact on the Company's financial position and results of operations. Retirement Benefits Income Statement Presentation In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard amends the income statement presentation of the components of net periodic benefit cost for defined benefit pension and other postretirement plans. The standard requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if such a subtotal is presented. It also requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The standard was effective January 1, 2018. The Company adopted ASU No. 2017-07 in the first quarter of 2018. Adoption of this standard did not have a material impact on the Company’s financial position and results of operations. Share-Based Payment Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope Modification Accounting. The new standard clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. This standard was effective January 1, 2018. The Company adopted ASU No. 2017-09 in the first quarter of 2018. Adoption of this standard did not have a material impact on the Company’s financial position and results of operations. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment. This new standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The Company adopted ASU No. 2017-04 in the first quarter of 2018. Adoption of this standard did not have a material impact on the Company’s financial position and results of operations. To be adopted in future periods Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new accounting guidance will require the recognition of all long-term lease assets and lease liabilities by lessees and sets forth new disclosure requirements for those lease assets and liabilities. The standard requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements. This standard will be effective for the Company on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the potential impact on its financial position and results of operations of adopting this guidance. The Company expects the adoption of this new standard may have a material impact on total assets and total liabilities within the Company's Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Operations. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The standard amends its hedge accounting model to enable entities to better portray the economics of their risk management activities in the financial statements. The new guidance also expands an entity's ability to hedge non-financial and financial risk components and reduces complexity in fair value hedges of interest rate risk. Additionally, it eliminates the requirement to separately measure and report hedge ineffectiveness, eases certain assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. This standard will be effective for the Company on January 1, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements. Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The new standard eliminates, adds and modifies certain disclosure requirements for fair value measurement as part of its disclosure framework project. The amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy will no longer be required to be disclosed, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This standard will be effective for the Company on January 1, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements. Retirement Benefits - Defined Benefit Plans In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The new standard changes the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefits plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. This standard will be effective for the Company on January 1, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements. Intangibles - Goodwill and Other Internal - Use Software In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will be effective for the Company on January 1, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue Recognition Product Revenue, Net The Company sells its products to major pharmaceutical wholesalers, distributors, and retail pharmacy chains (collectively, its "Customers"). These Customers subsequently resell the Company’s products to healthcare providers and patients. In addition to distribution agreements with Customers, the Company enters into arrangements with healthcare providers and payors that provide for government-mandated and/or privately-negotiated rebates, chargebacks, and discounts with respect to the purchase of the Company’s products. Revenues from Product sales are recognized when the Customer obtains control, typically upon delivery. When the terms of the contract include customer acceptance provisions, the Company defers revenue recognition until the customer has accepted the goods, unless the acceptance provision relates only to objective specifications which the Company can determine will be met upon shipment. Customer acceptance provisions include temperature checks, government inspections, and other quality control tests. Shipping and handling and fulfillment costs are accrued for when the related revenue is recognized. Taxes collected from Customers relating to product sales and remitted to governmental authorities are excluded from revenues. Estimates of Variable Consideration Revenues from Product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for reserves related to statutory rebates to State Medicaid and other government agencies; Medicare Part D rebates; commercial rebates and fees to Managed Care Organizations (MCOs), Group Purchasing Organizations (GPOs), distributors, and specialty pharmacies; product returns; sales discounts (including trade discounts); distribution service fees; wholesaler chargebacks; and allowances for coupon and patient assistance programs relating to the Company’s sales of its products. These reserves are based on estimates of the amounts earned or to be claimed on the related sales. Management's estimates take into consideration historical experience, current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable consideration included in the net sales price is limited to the amount that is probable not to result in a significant reversal in the amount of the cumulative revenue recognized in a future period. If actual results vary, the Company may adjust these estimates, which could have an effect on earnings in the period of adjustment. • Trade discounts are generally credits granted to wholesalers, specialty pharmacies, and other customers for remitting payment on their purchases within established incentive periods and are classified as a reduction of accounts receivable, offset by revenue in the same period that the related revenue is recognized. • Chargebacks are credits or payments issued to wholesalers and other distributors who provide products to qualified healthcare providers at prices lower than the list prices charged to the wholesalers or other distributors. Reserves are estimated based on expected purchases by those qualified healthcare providers. Chargeback reserves are classified as a reduction of accounts receivable in the same period that the related revenue is recognized. • Distribution service fees are credits or payments issued to wholesalers, distributors, and specialty pharmacies for compliance with various contractually-defined inventory management practices or services provided to support patient access to a product. These fees are generally based on a percentage of gross purchases but can also be based on additional services these entities provide. Most of these costs are reflected as a reduction of gross sales; however, to the extent benefit from services can be separately identified and the fair value determined, costs are classified as Selling, general and administrative expenses. Distribution service fees reserves are estimated based on the terms of each individual contract and are classified within accrued expenses. • Medicaid rebates are payments to States under statutory and voluntary reimbursement arrangements. Reserves for these rebates are generally based on an estimate of expected product usage by Medicaid patients and expected rebate rates. Statutory rates are generally based on a percentage of selling price adjusted upwards for price increases in excess of published inflation indices. As a result, rebates generally increase as a percentage of the selling price over the life of the product (as prices increase). Medicaid rebate reserves are estimated based on individual product purchase volumes and are classified within accrued expenses. • Managed care rebates are payments to third parties, primarily pharmacy benefit managers, and other health insurance providers. The reserve for these rebates is based on an estimate of customer buying patterns and applicable contractual rebate rates to be earned over each period. Managed care rebates reserves are estimated based on the terms of each individual contract and purchase volumes and are classified within accrued expenses. • Incentive rebates are generally credits or payments issued to specialty pharmacies, distributors, or Group Purchasing Organizations for qualified purchases of certain products. Incentive rebate reserves are estimated based on the terms of each individual contract and purchase volumes and are classified within accrued expenses. • Other discounts and allowances include Medicare rebates, coupon, and patient co-pay assistance. Medicare rebates are payments to health insurance providers of Medicare Part D coverage to qualified patients. Reserve estimates are based on customer buying patterns and applicable contractual rebate rates to be earned over each period. Coupon and co-pay assistance programs provide discounts to qualified patients. Reserve estimates are based on expected claim volumes under these programs and estimated cost per claim that the Company expects to pay. Reserves for Medicare and coupon and patient co-pay programs are classified within accrued expenses. Product Returns: The Company typically accepts customer product returns in the following circumstances: (a) expiration of shelf life on certain products; (b) product damaged while in the Company’s possession; (c) under sales terms that allow for unconditional return (guaranteed sales); or (d) following product recalls or product withdrawals. Generally, returns for expired product are accepted three months before and up to one year after the expiration date of the related product and the related product is destroyed after it is returned. Depending on the product and the Company’s return policy with respect to that product, the Company may either refund the sales price paid by the customer by issuance of a credit, or exchange the returned product with replacement inventory. The Company typically does not provide cash refunds. The Company estimates the proportion of recorded revenue that will result in a return by considering relevant factors, including but not limited to: • historical returns experience; • the duration of time taken for products to be returned; • the estimated level of inventory in the distribution channel; • product recalls and discontinuances; • the shelf life of products; • the launch of new drugs or new formulations; and • the loss of patent protection, exclusivity or new competition. The estimation process for product returns involves, in each case, a number of interrelating assumptions, which vary for each combination of product and customer. The Company estimates the amount of its product sales that may be returned by its Customers and records this estimate as a reduction of revenue from Product sales in the period the related revenue is recognized. Royalties and other revenues The Company enters into agreements, where it licenses certain rights to its products to customers. The terms of these arrangements typically include payment to the Company of one or more of the following: non-refundable, up-front license fees; development, regulatory and commercial milestone payments; payments for manufacturing supply services the Company provides; and royalties on net sales of licensed products. Each of these payments is recognized as Royalties and other revenues. As part of the accounting for these arrangements, the Company must develop estimates that require judgment to determine the stand-alone selling price for each performance obligation, identified in the contract. Performance obligations are promises in a contract to transfer a distinct good or service to the customer. The Company uses key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical, regulatory and commercial success. Licenses of intellectual property: If the license to the Company’s intellectual property is distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, up-front fees when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. If the performance obligation is satisfied over time, the Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Measures of progress for revenue recognition vary depending on the nature of the performance obligation. Milestone Payments: At the inception of each arrangement that includes milestone payments, the Company evaluates the recognition of milestone payments. Typically, milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are included in the transaction price upon achievement of the milestone. Milestone payments included in transaction price are recognized when or as the performance obligations are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, the Company recognizes revenue at the later of (i) when the related sales occur or (ii) when the license is transferred. The Company receives payments from its customers based on billing schedules established in each contract, which vary across Shire's locations, but generally range between 30 to 90 days. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation is that customer will pay for the product or services in one year or less of receiving those products or services. The following table presents changes in the Company’s contract assets and liabilities during the nine months ended September 30, 2018 : (In millions) As of January 1, 2018 Increase, net As of September 30, 2018 Contract assets: Unbilled receivables $ 42.7 $ 12.9 $ 55.6 Contract liabilities: Deferred revenue — 7.4 7.4 Contract assets consist of unbilled receivables typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer. The contract assets are included in Other current assets in these Unaudited Consolidated Balance Sheets. Contract liabilities consist of advance payments from customers for future performance obligations. Contract liabilities are included in Other current liabilities in these Unaudited Consolidated Balance Sheets. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition In September 2018, Shire acquired 100 percent of the voting equity interests in a source plasma collection company. The acquisition is expected to increase Shire’s access to plasma in the longer term and add to its European plasma collection network, complementing existing core capabilities in plasma supply, and manufacturing. The total cash consideration for the acquisition was $107.8 million (CHF 105.0 million ). Shire recorded the purchase price as goodwill, intangible assets, and other assets. The $96.3 million goodwill is not deductible for tax purposes. |
Dispositions and Assets Held fo
Dispositions and Assets Held for Sale | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions and Assets Held for Sale | Dispositions and Assets Held for Sale On August 31, 2018, the Company completed the sale of its Oncology franchise to Servier. Under the terms of the agreement, Servier acquired Shire’s Oncology franchise for a net consideration of $2.4 billion , in cash. The Company recognized $267.2 million as a gain, which is recorded within Total operating expenses in the Company's Unaudited Consolidated Statements of Operations. The assets and liabilities of the Oncology franchise were as follows: (In millions) As of August 31, 2018 Intangible Assets $ 1,628.3 Goodwill 565.1 Other 25.6 Current Assets $ 2,219.0 Current Liabilities $ 116.4 During the nine months ended September 30, 2018 , the Company determined it would divest certain facilities as part of its integration efforts. As of September 30, 2018 , the Company classified $115.4 million of assets as held for sale and included within Other current assets in these Unaudited Consolidated Financial Statements. The $115.4 million of held for sale assets consisted primarily of property, plant and equipment and was net of $145.4 million of impairment charges recorded during the nine months ended September 30, 2018 . The impairment charges were reported within Integration and acquisition costs in these Unaudited Consolidated Financial Statements. Results of Discontinued Operations Following the divestment of the Company’s DERMAGRAFT business in January 2014, the operating results associated with the DERMAGRAFT business have been classified as discontinued operations in the Company’s Unaudited Consolidated Statements of Operations for all periods presented. In January 2017, Shire entered into a final settlement agreement with the Department of Justice (DOJ) in the amount of $350.0 million , plus interest which was accrued in 2016 and paid during 2017. After the civil settlement with the DOJ was finalized, Shire and Advanced BioHealing Inc.'s (ABH) equity holders entered into a settlement agreement and ABH’s equity holders released the $37.5 million escrow to Shire. Shire released its claims against ABH equity holders upon receiving the entire amount held in escrow. For the three and nine months ended September 30, 2017 , the Company recorded a loss of $0.4 million (net of immaterial tax benefit) and gain of $18.6 million (net of tax expense of $10.9 million ), respectively, primarily related to legal contingencies related to the divested DERMAGRAFT business and the release of escrow to Shire, respectively. |
Collaborative and Other Licensi
Collaborative and Other Licensing Arrangements | 9 Months Ended |
Sep. 30, 2018 | |
Collaborative and Other Licensing Arrangements Disclosure [Abstract] | |
Collaborative and Other Licensing Arrangements | Collaborative and Other Licensing Arrangements The Company is party to certain collaborative and licensing arrangements. In some of these arrangements, Shire and the licensee are both actively involved in the development and commercialization of the licensed product and have exposure to risks and rewards dependent on its commercial success. On January 25, 2018, Shire entered into a licensing agreement with AB Biosciences Inc. (AB Biosciences). The license grants Shire exclusive worldwide rights to develop and commercialize a recombinant immunoglobulin product candidate. Under the terms of the agreement, AB Biosciences will grant Shire an exclusive, worldwide license to its intellectual property relating to its pan receptor interacting molecule program. The Company paid $10.0 million upfront license fee and AB Biosciences is eligible to receive contingent research, development, and commercialization milestone payments up to $282.5 million as well as tiered royalty payments. |
Integration and Acquisition Cos
Integration and Acquisition Costs | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Integration and Acquisition Costs | Integration and Acquisition Costs For the three and nine months ended September 30, 2018 , Shire recorded Integration and acquisition costs of $93.0 million and $512.0 million , respectively. These costs relate to the continued integration of Baxalta Inc. (Baxalta), which was acquired in June 2016, Takeda’s proposed acquisition of Shire, and the change in fair value of contingent consideration, primarily related to TAKHZYRO (lanadelumab-flyo), which was acquired from Dyax in 2016. The Company continues its activities to integrate Baxalta. The costs associated with the integration are primarily related to facility consolidation and professional consulting fees. The Company also drove savings through the continued re-prioritization of its research and development programs and consolidation of its commercial operations . For the three and nine months ended September 30, 2018 , these costs include $8.0 million and $151.4 million , respectively, of asset impairments, $12.4 million and $55.5 million , respectively, of third-party professional fees, $4.4 million and $19.2 million , respectively, of expenses associated with facility consolidations, and $5.7 million and $20.7 million , respectively, of employee severance and acceleration of stock compensation. The Company expects the majority of these expenses, except for certain costs related to facility consolidations, to be paid within 12 months from the date the related expenses were incurred. The integration of Baxalta is estimated to be completed by mid to late 2019. The following table summarizes the reserve for the Baxalta integration costs for certain types of activities during the nine months ended September 30, 2018 : (In millions) Severance and employee benefits Lease terminations Total As of January 1, $ 72.9 $ 56.6 $ 129.5 Amount charged to integration costs 9.2 2.3 11.5 Paid/utilized (41.0 ) (19.9 ) (60.9 ) As of September 30, $ 41.1 $ 39.0 $ 80.1 On May 8, 2018, the Boards of Takeda and Shire announced that they had reached an agreement on the terms of a recommended offer pursuant to which Takeda will acquire the entire issued and to be issued ordinary share capital of Shire. The closing of the acquisition is expected in the first half of 2019, subject to shareholder approval of both companies as well as the receipt of regulatory approvals. For the three and nine months ended September 30, 2018 , costs associated with this proposed offer include $8.0 million and $72.0 million , respectively, of third-party professional fees and $36.4 million and $40.4 million , respectively, of employee incentives. The Company expects the majority of these expenses to be paid within 12 months from the date the related expenses were incurred. In the three and nine months ended September 30, 2018 , $54.5 million and $100.4 million , respectively, are included in Integration and acquisition costs relating to the change in fair value of contingent consideration payable mainly related to TAKHZYRO. For the three and nine months ended September 30, 2017 , Shire recorded Integration and acquisition costs of $237.0 million and $696.7 million , respectively, primarily related to the acquisition and integration of Baxalta and Dyax. In the three and nine months ended September 30, 2017 , a credit of $3.4 million and a charge of $144.3 million , respectively, is included in Integration and acquisition costs due to the change in fair value of contingent consideration payable mainly related to TAKHZYRO. For the three and nine months ended September 30, 2017 , the Baxalta Integration and acquisition costs include $60.2 million and $177.4 million , respectively, of employee severance and acceleration of stock compensation, $28.4 million and $114.0 million , respectively, of third-party professional fees, and $29.7 million and $71.4 million , respectively, of expenses associated with facility consolidations and $114.1 million and $147.8 million , respectively, of asset impairments. |
Reorganization Costs
Reorganization Costs | 9 Months Ended |
Sep. 30, 2018 | |
Reorganizations [Abstract] | |
Reorganization Costs | Reorganization Costs For the three and nine months ended September 30, 2018 , Shire recorded Reorganization costs of $254.8 million and $268.9 million , respectively. These costs include $249.2 million and $256.7 million , respectively, of expenses mainly related to the closure of certain of its Cambridge office facilities and $5.6 million and $12.2 million , respectively, of asset impairment, employee severance, professional fees, and consulting fees. For the three and nine months ended September 30, 2018 , cash payments associated with these costs were not significant. For the three and nine months ended September 30, 2017 , Shire recorded Reorganization costs of $5.4 million and $24.5 million , respectively. These costs include $ nil and $10.8 million , respectively, of expenses related to the closure of certain office facilities and $5.4 million and $13.7 million , respectively, of employee severance, professional fees, and consulting fees. |
Results of Discontinued Operati
Results of Discontinued Operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of Discontinued Operations | Dispositions and Assets Held for Sale On August 31, 2018, the Company completed the sale of its Oncology franchise to Servier. Under the terms of the agreement, Servier acquired Shire’s Oncology franchise for a net consideration of $2.4 billion , in cash. The Company recognized $267.2 million as a gain, which is recorded within Total operating expenses in the Company's Unaudited Consolidated Statements of Operations. The assets and liabilities of the Oncology franchise were as follows: (In millions) As of August 31, 2018 Intangible Assets $ 1,628.3 Goodwill 565.1 Other 25.6 Current Assets $ 2,219.0 Current Liabilities $ 116.4 During the nine months ended September 30, 2018 , the Company determined it would divest certain facilities as part of its integration efforts. As of September 30, 2018 , the Company classified $115.4 million of assets as held for sale and included within Other current assets in these Unaudited Consolidated Financial Statements. The $115.4 million of held for sale assets consisted primarily of property, plant and equipment and was net of $145.4 million of impairment charges recorded during the nine months ended September 30, 2018 . The impairment charges were reported within Integration and acquisition costs in these Unaudited Consolidated Financial Statements. Results of Discontinued Operations Following the divestment of the Company’s DERMAGRAFT business in January 2014, the operating results associated with the DERMAGRAFT business have been classified as discontinued operations in the Company’s Unaudited Consolidated Statements of Operations for all periods presented. In January 2017, Shire entered into a final settlement agreement with the Department of Justice (DOJ) in the amount of $350.0 million , plus interest which was accrued in 2016 and paid during 2017. After the civil settlement with the DOJ was finalized, Shire and Advanced BioHealing Inc.'s (ABH) equity holders entered into a settlement agreement and ABH’s equity holders released the $37.5 million escrow to Shire. Shire released its claims against ABH equity holders upon receiving the entire amount held in escrow. For the three and nine months ended September 30, 2017 , the Company recorded a loss of $0.4 million (net of immaterial tax benefit) and gain of $18.6 million (net of tax expense of $10.9 million ), respectively, primarily related to legal contingencies related to the divested DERMAGRAFT business and the release of escrow to Shire, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable as of September 30, 2018 of $3,207.4 million ( December 31, 2017 : $3,009.8 million ), are stated at the invoiced amount and net of reserve for discounts and doubtful accounts of $331.4 million ( December 31, 2017 : $271.5 million ). Reserve for discounts and doubtful accounts consists of the following: (In millions) 2018 2017 As of January 1, $ 271.5 $ 169.6 Provision charged to operations 1,884.2 1,074.1 Payments/credits (1,824.3 ) (1,000.0 ) As of September 30, $ 331.4 $ 243.7 Reserve for discounts and doubtful accounts increased for the nine months ended September 30, 2018 compared to the corresponding period in 2017, primarily due to increased usage of biological distributors, higher invoice price to those distributors, and the resulting increase in chargebacks for the distribution of Shire’s Hematology and Immunology products. As of September 30, 2018 , Accounts receivable included $44.1 million ( December 31, 2017 : $106.6 million ) related to royalties receivable. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. The components of Inventories are as follows: (In millions) September 30, 2018 December 31, 2017 Finished goods $ 959.7 $ 926.1 Work-in-progress 1,671.6 1,574.0 Raw materials 827.4 791.4 $ 3,458.7 $ 3,291.5 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment are recorded at historical cost, net of accumulated depreciation. Components of Property, plant and equipment, net are summarized as follows: (In millions) September 30, 2018 December 31, 2017 Land $ 296.2 $ 332.3 Buildings and leasehold improvements 2,975.1 1,940.7 Machinery, equipment and other 3,942.5 3,106.3 Assets under construction 759.4 2,568.2 Total property, plant and equipment at cost 7,973.2 7,947.5 Less: Accumulated depreciation (1,520.2 ) (1,312.1 ) Property, plant and equipment, net $ 6,453.0 $ 6,635.4 Depreciation expense for the three and nine months ended September 30, 2018 was $156.8 million and $432.8 million , respectively, and for the three and nine months ended September 30, 2017 was $119.9 million and $363.5 million , respectively. In the second quarter of 2018, the FDA approved a new plasma manufacturing facility near Covington, Georgia. Following the approval, $1,840.5 million of assets were reclassified from Asset under construction to Buildings and leasehold improvements and Machinery, equipment and other assets classes. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible assets The following table summarizes the Company's Intangible assets: (In millions) Currently marketed products IPR&D Other intangible assets Total September 30, 2018 Gross acquired intangible assets $ 33,767.4 $ 1,012.7 $ 830.8 $ 35,610.9 Accumulated amortization (5,561.2 ) — (424.3 ) (5,985.5 ) Intangible assets, net $ 28,206.2 $ 1,012.7 $ 406.5 $ 29,625.4 December 31, 2017 Gross acquired intangible assets $ 31,973.5 $ 5,113.9 $ 835.9 $ 37,923.3 Accumulated amortization (4,549.2 ) — (328.0 ) (4,877.2 ) Intangible assets, net $ 27,424.3 $ 5,113.9 $ 507.9 $ 33,046.1 During the third quarter of 2018, the U.S. Food and Drug Administration (FDA) approved TAKHZYRO injection, for prophylaxis to prevent attacks of HAE in patients 12 years of age and older. Following the approval, the Company reclassified the TAKHZRO intangible asset from IPR&D to Currently marketed products and started amortizing the asset. Other intangible assets are comprised primarily of royalty rights and other contract rights associated with Baxalta, Dyax Corp. (Dyax), and NPS Pharmaceuticals Inc. Activities in the net book value of intangible assets for the nine months ended September 30, 2018 and 2017 are as follows: (In millions) 2018 2017 As of January 1, $ 33,046.1 $ 34,697.5 Sale of Oncology franchise (1,598.5 ) — Measurement period adjustments — (1,397.0 ) Amortization charged (1,375.3 ) (1,280.5 ) Foreign currency translation (314.2 ) 1,350.3 Contribution to JV (163.7 ) — Impairment (10.0 ) (20.0 ) Other 35.9 — Acquisition 5.1 — As of September 30, $ 29,625.4 $ 33,350.3 Measurement period adjustments included in the nine months ended September 30, 2017 related to the acquisition of Baxalta. For further details regarding the sale of the Oncology franchise, refer to Note 5 , Dispositions and Assets Held for Sale . During the nine months ended September 30, 2018 , the Company contributed distributions rights for certain products to a joint venture formed by the Company. Upon the contribution, the net carrying value ( $163.7 million ) related to those products was recorded within Investments in these Unaudited Consolidated Balance Sheets. The Company reviews its amortized intangible assets for impairment whenever events or circumstances suggest that their carrying value may not be recoverable. Unamortized intangible assets are reviewed for impairment annually or whenever events or circumstances suggest that their carrying value may not be recoverable. Estimated amortization expense can be affected by various factors including future acquisitions, disposals of product rights, regulatory approval and subsequent amortization of acquired IPR&D projects, foreign exchange movements, and the technological advancement and regulatory approval of competitor products. The estimated future amortization of acquired intangible assets for the next five years is expected to be as follows: (In millions) Anticipated future amortization 2018 (remaining three months) $ 444.4 2019 1,808.0 2020 1,730.7 2021 1,710.9 2022 1,679.3 2023 1,627.3 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table provides a roll-forward of the Goodwill balance for the nine months ended September 30, 2018 and 2017 : (In millions) 2018 2017 As of January 1, $ 19,831.7 $ 17,888.2 Acquisitions 96.3 1,076.2 Sale of Oncology franchise (565.1 ) — Foreign currency translation and other (267.9 ) 754.0 September 30, $ 19,095.0 $ 19,718.4 For further details regarding acquisitions during the nine months ended September 30, 2018, refer to Note 4 , Acquisition . The increase in Goodwill during the nine months ended September 30, 2017 related to measurement period adjustments of the acquisition of Baxalta. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Assets and liabilities that are measured at fair value on a recurring basis The following financial assets and liabilities are measured at fair value on a recurring basis using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3): Fair value (In millions) Total Level 1 Level 2 Level 3 As of September 30, 2018 Financial assets: Marketable equity securities $ 161.0 $ 161.0 $ — $ — Marketable debt securities 17.0 3.6 13.4 — Derivative instruments 13.9 — 13.9 — Total assets $ 191.9 $ 164.6 $ 27.3 $ — Financial liabilities: Joint venture net written option $ 48.0 $ — $ — $ 48.0 Derivative instruments 30.8 — 30.8 — Contingent consideration payable 616.2 — — 616.2 Total liabilities $ 695.0 $ — $ 30.8 $ 664.2 Fair value (In millions) Total Level 1 Level 2 Level 3 As of December 31, 2017 Financial assets: Marketable equity securities $ 89.7 $ 89.7 $ — $ — Marketable debt securities 17.9 3.8 14.1 — Derivative instruments 17.9 — 17.9 — Total assets $ 125.5 $ 93.5 $ 32.0 $ — Financial liabilities: Joint venture net written option $ 40.0 $ — $ — $ 40.0 Derivative instruments 14.2 — 14.2 — Contingent consideration payable 1,168.2 — — 1,168.2 Total liabilities $ 1,222.4 $ — $ 14.2 $ 1,208.2 Marketable equity and debt securities are included within Investments in these Unaudited Consolidated Balance Sheets. Contingent consideration payable is included within Other current liabilities and Other non-current liabilities in these Unaudited Consolidated Balance Sheets. For information regarding the Company's derivative arrangements, refer to Note 16 , Financial Instruments , to these Unaudited Consolidated Financial Statements. Certain estimates and judgments were required to develop the fair value amounts. The estimated fair value amounts shown above are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or ability to dispose of the financial instrument. The following methods and assumptions were used to estimate the fair value of each material class of financial instrument: • Marketable equity securities: the fair values of marketable equity securities are estimated based on quoted market prices for those investments. • Marketable debt securities: the fair values of debt securities are obtained from pricing services or broker/dealers who either use quoted prices in an active market or proprietary pricing applications, which include observable market information for like or same securities. • Derivative instruments: the fair values of the swap and forward foreign exchange contracts have been determined using the month-end interest rate and foreign exchange rates, respectively. • Joint venture net written option and contingent consideration payable: the fair values have been estimated using the income approach (using a probability weighted discounted cash flow method). There were no changes in valuation techniques or inputs utilized or transfers between fair value measurement levels during the three and nine months ended September 30, 2018 and 2017 . Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) Contingent consideration payable (In millions) 2018 2017 Balance as of January 1, $ 1,168.2 $ 1,058.0 Acquisitions — (4.0 ) Payments (647.1 ) — Change in fair value included in earnings 100.4 144.3 Other (5.3 ) (11.4 ) Balance as of September 30, $ 616.2 $ 1,186.9 Of the $616.2 million of contingent consideration payable as of September 30, 2018 , $82.3 million is recorded within Other current liabilities and $533.9 million is recorded within Other non-current liabilities in these Unaudited Consolidated Balance Sheets. The decrease in contingent consideration payable during the nine months ended September 30, 2018 is related to payments of contingent consideration following the approval of TAKHZYRO acquired from Dyax in 2016. Joint venture net written option In March 2017, Shire executed option agreements related to a joint venture that provides Shire with a call option on the partner’s investment in joint venture equity and the partner with a put option on its investment in joint venture equity. The Company had a liability of $48.0 million for the net written option based on the estimated fair value of these options as of September 30, 2018 and the Company re-measures the instrument to fair value through the Unaudited Consolidated Statements of Operations. Quantitative Information about Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) Financial liabilities: Fair value as of the measurement date As of September 30, 2018 (In millions, except %) Fair value Valuation technique Significant unobservable inputs Range Contingent consideration payable $ 616.2 Income approach (probability weighted discounted cash flow) • Cumulative probability of milestones being achieved • 10.5 to 90% • Assumed market participant discount rate • 3.2 to 9.2% • Periods in which milestones are expected to be achieved • 2018 to 2040 • Forecast quarterly royalties payable on net sales of relevant products • $0.1 to $16.0 Contingent consideration payable represents future milestones and royalties the Company may be required to pay in conjunction with various business combinations and license agreements. The fair value of the Company’s contingent consideration payable could significantly increase or decrease due to changes in certain assumptions which underpin the fair value measurements. Each set of assumptions is specific to the individual contingent consideration payable. Financial liabilities: Fair value as of the measurement date As of September 30, 2018 (In millions, except %) Fair value Valuation technique Significant unobservable inputs Range Joint venture net written option $ 48.0 Income approach (probability weighted discounted cash flow) • Cash flow scenario probability weighting • 100% • Assumed market participant discount rate • 14% Financial assets and liabilities that are disclosed at fair value The carrying amounts and estimated fair values of the Company’s financial assets and liabilities that are not measured at fair value on a recurring basis are as follows: September 30, 2018 December 31, 2017 (In millions) Carrying amount Fair value Carrying amount Fair value Financial liabilities: SAIIDAC notes $ 12,058.9 $ 11,604.7 $ 12,050.2 $ 11,913.7 Baxalta notes 1,939.9 1,951.3 5,057.7 5,229.9 Capital lease obligation 366.8 366.8 349.2 349.2 The estimated fair values of long-term debt were based upon recent observable market prices and are considered Level 2 in the fair value hierarchy. The estimated fair value of capital lease obligations is based on Level 2 inputs. The carrying amounts of other financial assets and liabilities approximate their estimated fair value due to their short-term nature, such as liquidity and maturity of these amounts, or because there have been no significant changes since the asset or liability was last re-measured to fair value on a non-recurring basis. For more details on the carrying amount and fair value of Baxalta notes, refer to Note 17 , Borrowings and Capital Leases . |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instrument Detail [Abstract] | |
Financial Instruments | Financial Instruments Foreign Currency Contracts Due to the global nature of its operations, portions of the Company's revenues and operating expenses are recorded in currencies other than the U.S. dollar. The value of revenues and operating expenses measured in U.S. dollars is therefore subject to changes in foreign currency exchange rates. The main trading currencies of the Company are the U.S. dollar, Euro, British pound sterling, Swiss franc, Canadian dollar, and Japanese yen. Transactional exposure arises where transactions occur in currencies different to the functional currency of the relevant subsidiary. It is the Company’s policy that these exposures are minimized to the extent practicable by denominating transactions in the subsidiary’s functional currency. Where significant exposures remain, the Company uses foreign exchange contracts (spot, forward, and swap contracts) to manage the exposure for balance sheet assets and liabilities that are denominated in currencies different to the functional currency of the relevant subsidiary. The Company has master netting agreements with a number of counterparties to these foreign exchange contracts and on the occurrence of specified events, the Company has the ability to terminate contracts and settle them with a net payment by one party to the other. The Company has elected to present derivative assets and derivative liabilities on a gross basis in the Unaudited Consolidated Balance Sheets. The Company does not have credit risk related contingent features or collateral linked to the derivatives. Undesignated Foreign Currency Derivatives The Company uses forward and option contracts to mitigate the foreign currency risk related to certain balance sheet positions, including intercompany and third-party receivables and payables. The Company has not elected hedge accounting for these derivative instruments. The changes in fair value of these derivatives are reported in earnings. The table below presents the notional amount, maximum duration, and fair value for the undesignated foreign currency derivatives: (In millions, except duration) September 30, 2018 December 31, 2017 Notional amount $ 2,192.4 $ 1,672.3 Maximum duration 11 months 3 months Fair value - net (liability)/asset $ (1.3 ) $ 11.4 The Company considers the impact of its and its counterparties’ credit risk on the fair value of the contracts as well as the ability of each party to execute its contractual obligations. As of September 30, 2018 , credit risk did not materially change the fair value of the Company’s foreign currency contracts. Interest Rate - Contracts The Company is exposed to the risk that its earnings and cash flows could be adversely impacted by fluctuations in benchmark interest rates relating to its debt obligations on which interest is set at floating rates. The Company’s policy is to manage this risk to an acceptable level. The Company is principally exposed to interest rate risk on any borrowings under the Company’s various debt facilities. Interest on these facilities is set at floating rates, to the extent utilized. Shire’s exposure under these facilities is to changes in U.S. dollar interest rates. For further details related to interest rates on the Company’s various debt facilities, refer to Note 17 , Borrowings and Capital Leases , to these Unaudited Consolidated Financial Statements. Designated Interest Rate Derivatives The Company has elected hedge accounting for interest rate swap contracts designated as fair value hedges. The effective portion of the changes in the fair value of interest rate swap contracts are recorded as a component of the underlying Baxalta Notes with the ineffective portion recorded in Interest expense. Any net interest payments made or received on the interest rate swap contracts are recognized as a component of Interest expense in the Unaudited Consolidated Statements of Operations. The table below presents the notional amount, maturity, and fair value for the designated interest rate derivatives: (In millions, except maturity) September 30, 2018 December 31, 2017 Notional amount $ 431.0 $ 1,000.0 Maturity June 2020 and June 2025 June 2020 and June 2025 Fair value - net liability $ (15.6 ) $ (7.7 ) In conjunction with the debt tender offer and extinguishment of debt as more fully described in Note 17 , Shire terminated $569.0 million of its interest swaps for a loss of $9.3 million , which is reported in Other (expense)/income, net in the Unaudited Consolidated Statements of Operations. Summary of Derivatives The following tables summarize the effect of the derivative instruments in the Company's Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 . Designated Foreign exchange contracts (In millions) Loss recognized in OCI Gain reclassified from AOCI into income Cash flow hedges 2018 2017 Location 2018 2017 Three months ended September 30, Foreign exchange contracts $ — $ (0.2 ) Cost of sales $ — $ 0.3 Nine months ended September 30, Foreign exchange contracts $ — $ (0.9 ) Cost of sales $ — $ 8.6 Undesignated foreign exchange contracts (In millions) Gain/(loss) recognized in income Location 2018 2017 Three months ended September 30, Foreign exchange contracts Other (expense)/income, net $ 4.7 $ 36.7 Nine months ended September 30, Foreign exchange contracts Other (expense)/income, net $ (28.6 ) $ 57.4 Designated Interest Rate Derivatives (In millions) Loss recognized in income Fair value hedges Location 2018 2017 Three months ended September 30, Interest rate contracts, net Interest expense $ (1.0 ) $ (1.1 ) Nine months ended September 30, Interest rate contracts, net Interest expense $ (4.9 ) $ (2.5 ) Summary of Derivatives The following table presents the classification and estimated fair value of derivative instruments on the Company's Unaudited Consolidated Balance Sheets: Asset position Liability position Fair value Fair value (In millions) Location September 30, 2018 December 31, 2017 Location September 30, 2018 December 31, 2017 Undesignated derivative instruments Foreign exchange contracts Other current assets $ 13.9 $ 17.9 Other current liabilities $ 15.2 $ 6.5 $ 13.9 $ 17.9 $ 15.2 $ 6.5 Designated derivative Instruments Interest rate contracts Long term borrowings $ — $ — Long term borrowings $ 15.6 $ 7.7 $ — $ — $ 15.6 $ 7.7 Total derivative fair value $ 13.9 $ 17.9 $ 30.8 $ 14.2 Potential effect of rights to offset (8.3 ) (2.7 ) (8.3 ) (2.7 ) Net derivative $ 5.6 $ 15.2 $ 22.5 $ 11.5 |
Borrowings and Capital Leases
Borrowings and Capital Leases | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings and Capital Leases | Borrowings and Capital Leases (In millions) September 30, 2018 December 31, 2017 Short term borrowings and capital leases: SAIIDAC Notes $ 3,295.3 $ — Baxalta Notes — 748.8 Borrowings under the Revolving Credit Facilities Agreement 915.0 810.0 Borrowings under the November 2015 Facilities Agreement — 1,196.3 Capital leases 9.5 7.5 Other borrowings 28.9 26.1 $ 4,248.7 $ 2,788.7 Long term borrowings and capital leases: SAIIDAC Notes $ 8,763.6 $ 12,050.2 Baxalta Notes 1,939.9 4,308.9 Capital leases 357.3 341.7 Other borrowings 37.2 51.6 $ 11,098.0 $ 16,752.4 Total borrowings and capital leases $ 15,346.7 $ 19,541.1 For a more detailed description of the Company's financing agreements, refer below and to Note 17 , Borrowings and Capital Leases , of Shire's Annual Report on Form 10-K for the year ended December 31, 2017. Debt Tender Offer On September 11, 2018, Shire purchased an aggregate of $2.3 billion in principal amount of Baxalta Notes from existing holders consisting of its 2.875% Notes due June 2020, 3.600% Notes due June 2022, 4.000% Notes due June 2025 and 5.250% Notes due June 2045 pursuant to a debt tender offer. Shire paid approximately $2.4 billion , including accrued and unpaid interest and tender premium, to purchase such notes. As a result of the debt tender offer, the Company recognized a loss on extinguishment of debt in the third quarter of 2018 of $40.6 million , which is included in Other (expense)/income, net within the Unaudited Consolidated Statements of Operations. SAIIDAC Notes On September 23, 2016 , Shire Acquisitions Investments Ireland Designated Activity Company (SAIIDAC), a wholly owned subsidiary of Shire plc, issued unsecured senior notes with a total aggregate principal value of $12.1 billion (SAIIDAC Notes), guaranteed by Shire plc and, as of December 1, 2016, by Baxalta. Below is a summary of the SAIIDAC Notes as of September 30, 2018 : (In millions, except %) Aggregate amount Coupon rate Carrying amount as of September 30, 2018 Fixed-rate notes due 2019 $ 3,300.0 1.900 % $ 3,295.3 Fixed-rate notes due 2021 3,300.0 2.400 % 3,289.0 Fixed-rate notes due 2023 2,500.0 2.875 % 2,490.8 Fixed-rate notes due 2026 3,000.0 3.200 % 2,983.8 $ 12,100.0 $ 12,058.9 As of September 30, 2018 , there were $41.1 million of debt issuance costs and discounts recorded as a reduction of the carrying amount of debt. These costs will be amortized as additional interest expense using the effective interest rate method over the period from issuance through maturity. Baxalta Notes Shire plc guaranteed senior notes issued by Baxalta in connection with the acquisition of Baxalta (Baxalta Notes). Following repayment of the $375.0 million floating-rate notes and the $375.0 million fixed-rate notes due in June 2018 and the subsequent $2.3 billion bond tender offer on September 11, 2018, the remaining Baxalta Notes as of September 30, 2018 are shown below: (In millions, except %) Aggregate principal Coupon rate Carrying amount as of September 30, 2018 Fixed-rate notes due 2020 $ 404.5 2.875 % $ 403.0 Fixed-rate notes due 2022 219.4 3.600 % 221.9 Fixed-rate notes due 2025 800.5 4.000 % 799.7 Fixed-rate notes due 2045 500.4 5.250 % 515.3 Total assumed Senior Notes $ 1,924.8 $ 1,939.9 The book values above include any premiums, discounts, and adjustments related to hedging instruments. For further details related to the interest rate derivative contracts, please see Note 16 , Financial Instruments , to these Unaudited Consolidated Financial Statements. Revolving Credit Facilities Agreement On December 12, 2014 , Shire entered into a $ 2.1 billion revolving credit facilities agreement (RCF) with a number of financial institutions. As of September 30, 2018 , the Company utilized $915.0 million of the RCF. The RCF, which terminates on December 12, 2021 , may be used for financing the general corporate purposes of Shire. The RCF incorporates a $250.0 million U.S. dollar and Euro swingline facility operating as a sub-limit thereof. Term Loan Facilities Agreements November 2015 Facilities Agreement On November 2, 2015 , Shire entered into a $5.6 billion facilities agreement (November 2015 Facilities Agreement), which comprised of three amortizing credit facilities with ultimate maturity on November 2, 2018. As of September 30, 2018 , there were no amounts outstanding under the November 2015 Facilities Agreement as it was fully repaid and canceled on September 28, 2018. Short-term uncommitted lines of credit (Credit lines) Shire has access to various Credit lines from a number of banks which are available to be utilized from time to time to provide short-term cash management flexibility. These Credit lines can be withdrawn by the banks at any time. The Credit lines are not relied upon for core liquidity. As of September 30, 2018 , these lines of credit were not utilized. Capital Lease Obligations The capital leases are primarily related to office and manufacturing facilities. As of September 30, 2018 , the total capital lease obligations, including current portions, were $366.8 million . |
Retirement and Other Benefit Pr
Retirement and Other Benefit Programs | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Retirement and Other Benefit Programs | Retirement and Other Benefit Programs The Company sponsors various pension and other post-employment benefit (OPEB) plans in the U.S. and other countries. Net periodic benefit cost for the three and nine months ended September 30, 2018 and 2017 is as follows: Three months ended September 30, 2018 2017 (In millions) U.S. pensions International pensions OPEB (U.S.) U.S. pensions International pensions OPEB (U.S.) Net periodic benefit cost Service cost $ — $ 9.5 $ — $ 3.7 $ 9.4 $ 0.4 Interest cost 3.9 1.3 0.1 3.9 1.2 0.3 Expected return on plan assets (4.3 ) (2.0 ) — (4.0 ) (1.8 ) — Amortization of net prior service cost — — (0.2 ) — — — Amortization of actuarial (gain)/loss — (0.3 ) — — 0.4 — Net periodic benefit cost $ (0.4 ) $ 8.5 $ (0.1 ) $ 3.6 $ 9.2 $ 0.7 Nine months ended September 30, 2018 2017 (In millions) U.S. pensions International pensions OPEB (U.S.) U.S. pensions International pensions OPEB (U.S.) Net periodic benefit cost Service cost $ — $ 28.5 $ — $ 11.1 $ 28.2 $ 1.2 Interest cost 11.7 3.9 0.3 11.7 3.6 0.9 Expected return on plan assets (12.9 ) (6.0 ) — (12.0 ) (5.4 ) — Amortization of net prior service cost — — (0.6 ) — — — Amortization of actuarial (gain)/loss — (0.9 ) — — 1.3 — Net periodic benefit cost $ (1.2 ) $ 25.5 $ (0.3 ) $ 10.8 $ 27.7 $ 2.1 The components of net periodic benefit cost other than the service cost component are included in the line item Other (expense)/income, net in these Unaudited Consolidated Statements of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss) The changes in Accumulated other comprehensive income/(loss) (AOCI), net of their related tax effects, for the nine months ended September 30, 2018 and 2017 are as follows: (In millions) Foreign currency translation adjustment Pension and other employee benefits Unrealized holding gain/(loss) on available-for-sale debt securities Accumulated other comprehensive income/(loss) As of January 1, 2018 $ 1,279.6 $ 27.5 $ 67.9 $ 1,375.0 Current period change: Other comprehensive loss before reclassifications (679.2 ) — — (679.2 ) Amounts reclassified from AOCI — (1.5 ) (67.9 ) (69.4 ) Net current period other comprehensive loss (679.2 ) (1.5 ) (67.9 ) (748.6 ) As of September 30, 2018 $ 600.4 $ 26.0 $ — $ 626.4 On January 1, 2018 , the Company adopted a new standard related to accounting for investments in equity securities. Upon adoption, the Company reclassified unrealized holding gain on available-for-sale equity securities totaling $67.9 million to Retained earnings. For further information, refer to Note 2 , Summary of Significant Accounting Policies , to these Unaudited Consolidated Financial Statements. (In millions) Foreign currency translation adjustment Pension and other employee benefits Unrealized holding loss on available-for-sale securities Hedging activities Accumulated other comprehensive (loss)/income As of January 1, 2017 $ (1,505.4 ) $ (5.2 ) $ 6.6 $ 6.4 $ (1,497.6 ) Current period change: Other comprehensive income before reclassifications 2,441.1 9.7 24.7 0.5 2,476.0 Amounts reclassified from AOCI — 1.3 (4.4 ) (6.2 ) (9.3 ) Net current period other comprehensive income/(loss) 2,441.1 11.0 20.3 (5.7 ) 2,466.7 As of September 30, 2017 $ 935.7 $ 5.8 $ 26.9 $ 0.7 $ 969.1 Reclassifications from AOCI to net income during the three and nine months ended September 30, 2018 and 2017 were not material. |
Taxation
Taxation | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxation | Taxation For the three and nine months ended September 30, 2018 , the effective tax rate on income from continuing operations was 28% ( 2017 : 2% ) and 18% (2017: 4% ), respectively. The effective tax rate for the three and nine months ended September 30, 2018 has been affected by certain provisions of the U.S. Tax Cuts and Jobs Act (Tax Act) passed in December, 2017, which reduces the U.S. federal corporate income tax rate from 35% to 21% along with anti-deferral provisions related to non-U.S. operations, new limitations on certain deductions required under the Tax Act, and reductions in the quantum of and tax benefit associated with U.S. integration costs over the prior year. The Company continued to assess the financial statement impact of the applicable provisions of the Tax Act upon enactment during the three and nine months ended September 30, 2018 and based on these assessments, income tax expense increased by $60.0 million and $37.9 million during these periods, respectively. The increase in tax expense recorded during the three and nine months ended September 30, 2018 was due to i) an adjustment to the U.S. deferred tax balances recorded as of December 31, 2017 related to the corporate income tax rate reduction of a $15.0 million tax expense and $7.1 million tax benefit, respectively; and ii) an increase to income tax expense of $45.0 million related to the repatriation toll charge. The change in the toll charge was partially driven by an adjustment of $31.0 million related to the tax rates applied to certain drivers of the provisional repatriation toll charge in 2017, as well as the finalization of inputs to the calculation of the repatriation toll charge and the refinement of the Company’s computation for the various guidance and regulations issued during 2018 . The changes to its original tax reform impacts increased the effective tax rate for the three and nine months ended September 30, 2018 by 8% and 2% , respectively. It is expected that additional interpretive guidance will be issued during the measurement period that may change how the Company has computed the provisional amounts for the year ended December 31, 2017 . The Company will continue to assess the impact of the Tax Act during the measurement period and will record any adjustments to its provisional estimates as needed during the remainder of the measurement period and continues to assert that all amounts recorded and disclosed to date remain provisional. The effective tax rate for the three and nine months ended September 30, 2017 was affected by the combined impact of the relative quantum of the profit before tax for the period by jurisdiction as well as significant acquisition and integration costs. Additionally, certain discrete tax adjustments were recorded during the year, which contributed to the low effective rate, including a tax benefit associated with the filing of the US tax returns and reversal of prior period income tax reserves. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles net income and the weighted average ordinary shares outstanding for basic and diluted earnings per share (EPS) for the periods presented: Three months ended September 30, Nine months ended September 30, (In millions) 2018 2017 2018 2017 Income from continuing operations, net of taxes $ 537.2 $ 551.2 $ 1,703.3 $ 1,147.5 (Loss)/Gain from discontinued operations, net of taxes — (0.4 ) — 18.6 Numerator for basic and diluted earnings per share $ 537.2 $ 550.8 $ 1,703.3 $ 1,166.1 Weighted average number of shares: Basic 914.0 907.2 912.0 905.9 Effect of dilutive shares: Share-based awards to employees 7.1 4.4 4.9 6.2 Diluted 921.1 911.6 916.9 912.1 Weighted average number of basic shares excludes shares purchased by the Employee Benefit Trust and those under the shares buy-back program, which are both 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: Three months ended September 30, Nine months ended September 30, (Number of shares in millions) 2018 2017 2018 2017 Share-based awards to employees 10.0 16.2 13.4 14.8 Certain stock options have been excluded from the calculation of diluted EPS for three and nine months ended September 30, 2018 and 2017 because either their exercise prices exceeded Shire’s average share price during the calculation period, the required performance conditions were not satisfied as of the balance sheet date or their inclusion would have been antidilutive. |
Share-based Compensation Plans
Share-based Compensation Plans | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Plans | Share-based Compensation Plans Total share-based compensation recorded by the Company during the three and nine months ended September 30, 2018 and 2017 by line item is as follows: Three months ended September 30, Nine months ended September 30, (In millions) 2018 2017 2018 2017 Cost of sales $ 6.3 $ 17.4 $ 21.2 $ 30.1 Research and development 10.0 3.2 35.5 22.9 Selling, general and administrative 29.5 30.9 75.2 94.1 Integration and acquisition costs 3.0 1.8 3.8 12.6 Total 48.8 53.3 135.7 159.7 Less tax (7.8 ) (13.3 ) (22.2 ) (42.9 ) $ 41.0 $ 40.0 $ 113.5 $ 116.8 For further details on existing share-based compensation plans, refer to Note 23 , Share-based Compensation Plans , of Shire's Annual Report on Form 10-K for the year ended December 31, 2017 . The Company amended the mix of performance share units to include market condition, based on relative total shareholder return, commencing with the 2018 annual grant. During the nine months ended September 30, 2018 , the Company made equity compensation grants to employees consisting of 10.8 million stock-settled share appreciation rights (SARs), 3.0 million restricted stock units (RSUs), and 0.9 million performance share units (PSUs) equivalent in ordinary shares. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company leases land, facilities, motor vehicles, and certain equipment under operating leases expiring through 2045. For the three and nine months ended September 30, 2018 lease and rental expense amounted to $49.4 million and $136.9 million ( 2017 : $41.7 million and $126.7 million , respectively), which is predominately included within Cost of sales and SG&A expenses in these Unaudited Consolidated Statement of Operations. Letters of credit and guarantees As of September 30, 2018 and December 31, 2017 , the Company had irrevocable standby letters of credit and guarantees with various banks and insurance companies totaling $249.5 million and $224.8 million (being the contractual amounts), respectively, providing security for the Company’s performance of various obligations. These obligations are primarily in respect of the recoverability of insurance claims, lease obligations, and supply commitments. Commitments Clinical testing As of September 30, 2018 , the Company had committed to pay approximately $1,451.3 million ( December 31, 2017 : $1,409.9 million ) to contract vendors for administering and executing clinical trials. The timing of these payments is dependent upon actual services performed by the organizations as determined by patient enrollment levels and related activities. Contract manufacturing As of September 30, 2018 , the Company had committed to pay approximately $910.8 million ( December 31, 2017 : $467.2 million ) in respect of contract manufacturing. The Company expects to pay $169.5 million of these commitments in 2018. Other purchasing commitments As of September 30, 2018 , the Company had committed to pay approximately $1,363.0 million ( December 31, 2017 : $1,692.5 million ) for future purchases of goods and services, predominantly relating to active pharmaceutical ingredients sourcing. The Company expects to pay $839.4 million of these commitments in 2018. Investment commitments As of September 30, 2018 , the Company had outstanding commitments to purchase common stock and interests in companies and partnerships, respectively, for amounts totaling $48.0 million ( December 31, 2017 : $48.9 million ), which may all be payable during 2018, depending on the timing of capital calls. The investment commitments include additional funding to certain variable interest entities (VIEs) for which Shire is not the primary beneficiary. Capital commitments As of September 30, 2018 , the Company had committed to spend $348.8 million ( December 31, 2017 : $328.2 million ) on capital projects. Baxter related tax indemnification Baxter International Inc. (Baxter) and Baxalta entered into a tax matters agreement, effective on the date of Baxalta’s separation from Baxter, which employs a direct tracing approach, or where direct tracing approach is not feasible, an allocation methodology, to determine which company is liable for pre-separation income tax items for U.S. federal, state, and foreign jurisdictions. With respect to tax liabilities that are directly traceable or allocated to Baxalta but for which Baxalta was not the primary obligor, Baxalta recorded a tax indemnification amount that would be due to Baxter upon Baxter discharging the associated tax liability to the taxing authority. |
Legal and Other Proceedings
Legal and Other Proceedings | 9 Months Ended |
Sep. 30, 2018 | |
Legal Proceedings [Abstract] | |
Legal and Other Proceedings | Legal and Other Proceedings The Company expenses legal costs when incurred. The Company recognizes loss contingency provisions for probable losses when management is able to reasonably estimate the loss. When the estimated loss lies within a range, the Company records a loss contingency provision based on its best estimate of the probable loss. If no particular amount within that range is a better estimate than any other amount, the minimum amount is recorded. Estimates of losses may be developed before the ultimate loss is known, and are therefore refined each accounting period as additional information becomes known. An outcome that deviates from the Company’s estimate may result in an additional expense or release in a future accounting period. As of September 30, 2018 , provision for litigation losses, insurance claims, and other disputes totaled $82.0 million ( December 31, 2017 : $76.2 million ). The Company’s principal pending legal and other proceedings are disclosed below. The outcomes of these proceedings are not always predictable and can be affected by various factors. For those legal and other proceedings for which it is considered at least reasonably possible that a loss has been incurred, the Company discloses the possible loss or range of possible loss in excess of the recorded loss contingency provision, if any, where such excess is both material and estimable. MYDAYIS On October 12, 2017, Shire was notified that Teva Pharmaceuticals USA, Inc. had submitted an abbreviated new drug application (ANDA) to the FDA seeking permission to market a generic version of MYDAYIS. Within the requisite 45-day period, Shire filed a lawsuit in the U.S. District Court for the District of Delaware against Teva Pharmaceuticals USA, Inc., Actavis Laboratories, Inc. and Teva Pharmaceutical Industries Limited (collectively the “Teva entities”). A Markman hearing is scheduled to take place on January 23, 2019. A trial is scheduled to take place beginning on December 9, 2019. On March 8, 2018, Shire was notified that Impax Laboratories, Inc. (Impax) had submitted an ANDA to the FDA seeking permission to market a generic version of MYDAYIS. Within the requisite 45-day period, Shire filed a lawsuit in the U.S. District Court for the District of Delaware against Impax. A Markman hearing is scheduled to take place on January 23, 2019. A trial is scheduled to take place beginning on December 9, 2019. On April 19, 2018, Shire was notified that SpecGX LLC (SpecGX) had submitted an ANDA to the FDA seeking permission to market a generic version of MYDAYIS. Within the requisite 45-day period, Shire filed a lawsuit in the U.S. District Court for the District of Delaware against SpecGx. No dates for a Markman hearing or trial have been set. Petitions to institute inter partes reviews (IPRs) against U.S. Patent numbers 8,846,100 and 9,173,857 were filed by KVK Tech in January 2018 and the petitions were granted in July 2018. Both of these patents are listed in the Orange Book as covering MYDAYIS and are among the patents-in-suit in the infringement action brought against the Teva entities and Impax as noted above. A decision on the merits is expected on or before July 10, 2019. VANCOCIN On April 6, 2012, ViroPharma Incorporated (ViroPharma) received a notification that the United States Federal Trade Commission (FTC) was conducting an investigation into whether ViroPharma had engaged in unfair methods of competition with respect to VANCOCIN, which Shire acquired in January 2014. Following the divestiture of VANCOCIN in August 2014, Shire retained certain liabilities including any potential liabilities related to the VANCOCIN citizen petition. On August 3, 2012, and September 8, 2014, ViroPharma and Shire respectively received Civil Investigative Demands from the FTC requesting additional information related to this matter. Shire has fully cooperated with the FTC’s investigation. On February 7, 2017, the FTC filed a Complaint against Shire alleging that ViroPharma engaged in conduct in violation of U.S. antitrust laws arising from a citizen petition ViroPharma filed in 2006 related to Food & Drug Administration’s policy for evaluating bioequivalence for generic versions of VANCOCIN. The complaint seeks equitable relief, including an injunction and disgorgement. The Company filed a motion to dismiss on April 10, 2017. On March 20, 2018, the court granted the Company’s motion. On April 11, 2018, the FTC filed a Notice of Appeal. The FTC’s appeal is still pending. At this time, Shire is unable to predict the outcome or duration of this case. ELAPRASE In 2014, Shire’s Brazilian affiliate, Shire Farmaceutica Brasil Ltda, was served with a lawsuit brought by the State of Sao Paulo and in which the Brazilian Public Attorney’s office has intervened alleging that Shire is obligated to provide certain medical care including ELAPRASE for an indefinite period at no cost to patients who participated in ELAPRASE clinical trials in Brazil, and seeking recoupment to the Brazilian government for amounts paid on behalf of these patients to date, and moral damages associated with these claims. On May 6, 2016, the trial court judge ruled on the case and dismissed all the claims under the class action, which was appealed. On February 20, 2017, the Court of Appeals in Sao Paulo issued the final decision on merit in favor of Shire and dismissed all the claims under the class action. On July 12, 2017, the Public Prosecutor filed an appeal addressed to the Supreme Court. During the last quarter of 2017, the State of Sao Paulo filed appeals addressed to the Superior Court of Justice and to the Supreme Court. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting In the first quarter of 2018, the Company announced a change to its internal structure to create two distinct business segments within Shire: a Rare Disease division and a Neuroscience division. The change was based on the Board's conclusion that the Neuroscience business warranted additional focus and investment and that there was a strong business rationale for creating the two divisions. In the second quarter of 2018, the Company returned to a single segment approach to managing its business. This decision was precipitated by the Shire Board's acceptance of Takeda's offer to acquire the Company and reflects the Company’s focus on the performance of the entire business as it operates in this current environment. This step was taken to more closely align with how the financial information is viewed by the Executive Committee (Shire’s chief operating decision maker) for the purposes of making resource allocation decisions and assessing the performance of the business. Additionally, in the second quarter of 2018, the Company introduced a new product franchise called Established Brands to capture revenue for its non-promoted products that are facing or could face generic competition, such as LIALDA and PENTASA. Comparative financial information for 2017 was retrospectively restated herein. In the periods set out below, U.S. and International Product sales by franchise were as follows: Three months ended September 30, 2018 September 30, 2017 (In millions) U.S. Sales International Sales Total Sales U.S. Sales International Sales Total Sales Product sales by franchise IMMUNOGLOBULIN THERAPIES $ 530.7 $ 125.2 $ 655.9 $ 486.6 $ 118.5 $ 605.1 HEREDITARY ANGIOEDEMA 291.3 37.7 329.0 235.8 32.6 268.4 BIO THERAPEUTICS 91.9 120.4 212.3 86.3 110.3 196.6 Immunology 913.9 283.3 1,197.2 808.7 261.4 1,070.1 HEMOPHILIA 386.6 349.3 735.9 357.5 367.8 725.3 INHIBITOR THERAPIES 44.7 124.4 169.1 70.6 120.1 190.7 Hematology 431.3 473.7 905.0 428.1 487.9 916.0 VYVANSE 528.5 66.5 595.0 476.8 61.6 538.4 ADDERALL XR 71.5 4.8 76.3 99.4 6.6 106.0 MYDAYIS 19.3 — 19.3 10.2 — 10.2 Other Neuroscience (1) 0.9 40.2 41.1 6.7 29.8 36.5 Neuroscience 620.2 111.5 731.7 593.1 98.0 691.1 ELAPRASE 41.7 128.9 170.6 41.4 111.5 152.9 REPLAGAL — 123.0 123.0 — 117.2 117.2 VPRIV 39.0 48.8 87.8 37.5 52.1 89.6 Genetic Diseases 80.7 300.7 381.4 78.9 280.8 359.7 LIALDA/MEZAVANT 88.9 30.2 119.1 61.4 25.3 86.7 PENTASA 65.7 — 65.7 72.1 — 72.1 Other Established Brands (2) 10.7 21.0 31.7 11.4 20.3 31.7 Established Brands 165.3 51.2 216.5 144.9 45.6 190.5 GATTEX/REVESTIVE 82.2 14.9 97.1 72.6 12.3 84.9 NATPARA/NATPAR 47.8 3.2 51.0 39.1 — 39.1 Other Internal Medicine (3) 0.1 28.9 29.0 0.6 35.9 36.5 Internal Medicine 130.1 47.0 177.1 112.3 48.2 160.5 Ophthalmics 92.1 1.3 93.4 77.4 — 77.4 Oncology (4) 33.4 17.1 50.5 47.2 21.3 68.5 Total product sales $ 2,467.0 $ 1,285.8 $ 3,752.8 $ 2,290.6 $ 1,243.2 $ 3,533.8 (1) Other Neuroscience includes INTUNIV, EQUASYM, and BUCCOLAM. (2) Other Established Brands includes FOSRENOL and CARBATROL. (3) Other Internal Medicine includes AGRYLIN, PLENADREN, and RESOLOR. (4) Results include the Oncology franchise until the date of its sale on August 31, 2018. In the periods set out below, Royalties and other revenues were as follows: Three months ended (In millions) September 30, 2018 September 30, 2017 Royalties $ 45.1 $ 111.4 Other revenues 73.8 52.4 Royalties and other revenues $ 118.9 $ 163.8 Nine months ended September 30, 2018 September 30, 2017 (In millions) U.S. Sales International Sales Total Sales U.S. Sales International Sales Total Sales Product sales by franchise IMMUNOGLOBULIN THERAPIES $ 1,409.6 $ 416.3 $ 1,825.9 $ 1,299.9 $ 314.0 $ 1,613.9 HEREDITARY ANGIOEDEMA 949.9 113.1 1,063.0 878.9 89.5 968.4 BIO THERAPEUTICS 254.8 328.9 583.7 231.9 314.8 546.7 Immunology 2,614.3 858.3 3,472.6 2,410.7 718.3 3,129.0 HEMOPHILIA 1,152.6 1,072.8 2,225.4 1,082.1 1,037.5 2,119.6 INHIBITOR THERAPIES 160.5 422.7 583.2 217.4 414.5 631.9 Hematology 1,313.1 1,495.5 2,808.6 1,299.5 1,452.0 2,751.5 VYVANSE 1,572.3 207.5 1,779.8 1,445.4 174.9 1,620.3 ADDERALL XR 219.4 12.7 232.1 225.9 16.4 242.3 MYDAYIS 40.4 — 40.4 25.9 — 25.9 Other Neuroscience (1) 6.0 111.8 117.8 13.5 77.8 91.3 Neuroscience 1,838.1 332.0 2,170.1 1,710.7 269.1 1,979.8 ELAPRASE 126.6 338.9 465.5 119.4 335.1 454.5 REPLAGAL — 372.8 372.8 — 349.0 349.0 VPRIV 113.9 153.4 267.3 110.3 147.0 257.3 Genetic Diseases 240.5 865.1 1,105.6 229.7 831.1 1,060.8 LIALDA/MEZAVANT 194.8 92.2 287.0 402.0 67.6 469.6 PENTASA 215.6 — 215.6 224.5 — 224.5 Other Established Brands (2) 43.8 62.1 105.9 67.0 55.3 122.3 Established Brands 454.2 154.3 608.5 693.5 122.9 816.4 GATTEX/REVESTIVE 280.2 46.6 326.8 193.3 35.9 229.2 NATPARA/NATPAR 153.5 7.3 160.8 103.2 0.1 103.3 Other Internal Medicine (3) 0.8 100.5 101.3 1.3 103.9 105.2 Internal Medicine 434.5 154.4 588.9 297.8 139.9 437.7 Ophthalmics 252.9 2.9 255.8 173.4 — 173.4 Oncology (4) 124.8 63.6 188.4 135.3 54.0 189.3 Total product sales $ 7,272.4 $ 3,926.1 $ 11,198.5 $ 6,950.6 $ 3,587.3 $ 10,537.9 (1) Other Neuroscience includes INTUNIV, EQUASYM, and BUCCOLAM. (2) Other Established Brands includes FOSRENOL and CARBATROL. (3) Other Internal Medicine includes AGRYLIN, PLENADREN, and RESOLOR. (4) Results include the Oncology franchise until the date of its sale on August 31, 2018. In the periods set out below, Royalties and other revenues were as follows: Nine months ended (In millions) September 30, 2018 September 30, 2017 Royalties $ 175.4 $ 329.7 Other revenues 183.0 148.1 Royalties and other revenues $ 358.4 $ 477.8 |
Agreements and Transactions wit
Agreements and Transactions with Baxter | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Baxter | Agreements and Transactions with Baxter In connection with Baxalta’s separation from Baxter on July 1, 2015, Baxalta and Baxter entered into several separation-related agreements that provided a framework for Baxalta’s relationship with Baxter after the separation. These agreements, among others, included a manufacturing and supply agreement, a transition services agreement and a tax matters agreement. For further details on existing agreements with Baxter, refer to Note 28 , Agreements and Transactions with Baxter , of Shire's Annual Report on Form 10-K for the year ended December 31, 2017 . During the three and nine months ended September 30, 2018 , the Company reported revenues associated with the manufacturing and supply agreement with Baxter of approximately $57.6 million and $142.6 million , respectively ( 2017 : $35.8 million and $106.5 million , respectively) and Selling, general and administrative expense associated with the transition services agreement with Baxter of approximately $0.3 million and $10.2 million , respectively and ( 2017 : $9.8 million and $43.5 million , respectively). Net tax-related indemnification liabilities as of September 30, 2018 , associated with the tax matters agreement with Baxter are discussed in Note 23 , Commitments and Contingencies , of these Unaudited Consolidated Financial Statements. |
Guarantor Financial Information
Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Guarantor Financial Information | Guarantor Financial Information On June 3, 2016, Shire plc provided full and unconditional, joint and several guarantees of the floating rate senior notes due 2018, 2.000% senior notes due 2018 (repaid upon maturity in June 2018), 2.875% senior notes due 2020, 3.600% senior notes due 2022, 4.000% senior notes due 2025, and 5.250% senior notes due 2045 (collectively, "Baxalta Notes"), of Baxalta Inc., a 100% owned subsidiary of the Company. Amounts related to Baxalta Inc. and its subsidiaries are included in the condensed consolidating financial information for periods subsequent to June 3, 2016, the date of Baxalta Inc.'s acquisition. On September 23, 2016, Shire plc provided full and unconditional, joint and several guarantees of the 1.900% senior notes due 2019, 2.400% senior notes due 2021, 2.875% senior notes due 2023, and 3.200% senior notes due 2026, of SAIIDAC (collectively, "SAIIDAC Notes"), a 100% owned subsidiary of the Company. On December 1, 2016, Baxalta Inc. became a guarantor to the SAIIDAC Notes. Accordingly, both Baxalta Inc. and Shire plc are now co-guarantors of the SAIIDAC Notes. On September 11, 2018, Shire purchased an aggregate of $2.3 billion in principal amount of Baxalta Notes. For further information, refer to Note 17, Borrowings and Capital Leases, to these unaudited Consolidated Financial Statements. In accordance with the requirements of SEC Regulation S-X Rule 3-10 “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered”, the following tables present Unaudited Condensed Consolidating Financial Statements of the two separate guarantee structures of the Baxalta Notes and SAIIDAC Notes, for: • Shire plc - Parent Guarantor; • SAIIDAC Subsidiary Issuer - issuer subsidiary of the SAIIDAC Notes; (a) • Baxalta Inc. - issuer subsidiary of the Baxalta Notes and guarantor subsidiary of the SAIIDAC Notes; (b) • Non-Guarantor Non-Issuer Subsidiaries - presents all other subsidiaries of the Parent Guarantor on a combined basis, none of which guarantee the Baxalta Notes or SAIIDAC Notes; (c) • Non-Guarantor Subsidiaries of Baxalta Notes - presents combined Non-Guarantor Non-Issuer Subsidiaries, including SAIIDAC, under the guarantee structure where Baxalta Inc. is the subsidiary issuer (a+c); and • Eliminations - primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The Unaudited Condensed Consolidating Financial Statements present investments in subsidiaries using the equity method of accounting. Condensed Consolidating Balance Sheets (Unaudited, In millions) As of September 30, 2018 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ — $ 193.2 $ 193.2 $ — $ 193.2 Restricted cash — — — 39.9 39.9 — 39.9 Accounts receivable, net — — — 3,207.4 3,207.4 — 3,207.4 Inventories — — — 3,458.7 3,458.7 — 3,458.7 Other current assets — 1.5 81.2 817.4 818.9 — 900.1 Intercompany receivables — 41.0 — 7,811.8 7,852.8 (7,852.8 ) — Short term intercompany loan receivable — 4,210.3 — — 4,210.3 (4,210.3 ) — Total current assets — 4,252.8 81.2 15,528.4 19,781.2 (12,063.1 ) 7,799.3 Non-current assets: Investments 44,695.6 — 38,547.8 13,312.3 13,312.3 (96,085.0 ) 470.7 Property, plant and equipment (PP&E), net — — 4.6 6,448.4 6,448.4 — 6,453.0 Goodwill — — — 19,095.0 19,095.0 — 19,095.0 Intangible assets, net — — — 29,625.4 29,625.4 — 29,625.4 Deferred tax asset — — 304.1 151.2 151.2 (304.1 ) 151.2 Long term intercompany loan receivable — 8,763.6 3,507.0 — 8,763.6 (12,270.6 ) — Other non-current assets — 1.9 — 169.4 171.3 — 171.3 Total assets $ 44,695.6 $ 13,018.3 $ 42,444.7 $ 84,330.1 $ 97,348.4 $ (120,722.8 ) $ 63,765.9 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 6.4 $ 8.0 $ 33.6 $ 3,977.1 $ 3,985.1 $ — $ 4,025.1 Short term borrowings and capital leases — 4,210.3 — 38.4 4,248.7 — 4,248.7 Intercompany payables 3,612.5 — 4,240.3 — — (7,852.8 ) — Short term intercompany loan payable — — — 4,210.3 4,210.3 (4,210.3 ) — Other current liabilities — — 3.8 234.0 234.0 — 237.8 Total current liabilities 3,618.9 4,218.3 4,277.7 8,459.8 12,678.1 (12,063.1 ) 8,511.6 Long term borrowings and capital leases — 8,763.6 1,939.9 394.5 9,158.1 — 11,098.0 Deferred tax liability — — — 4,875.3 4,875.3 (304.1 ) 4,571.2 Long term intercompany loan payable 3,786.5 — — 8,484.1 8,484.1 (12,270.6 ) — Other non-current liabilities — — 60.3 2,234.6 2,234.6 — 2,294.9 Total liabilities 7,405.4 12,981.9 6,277.9 24,448.3 37,430.2 (24,637.8 ) 26,475.7 Total equity 37,290.2 36.4 36,166.8 59,881.8 59,918.2 (96,085.0 ) 37,290.2 Total liabilities and equity $ 44,695.6 $ 13,018.3 $ 42,444.7 $ 84,330.1 $ 97,348.4 $ (120,722.8 ) $ 63,765.9 Condensed Consolidating Balance Sheets (Unaudited, In millions) As of December 31, 2017 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 0.5 $ 471.9 $ 471.9 $ — $ 472.4 Restricted cash — — — 39.4 39.4 — 39.4 Accounts receivable, net — — — 3,009.8 3,009.8 — 3,009.8 Inventories — — — 3,291.5 3,291.5 — 3,291.5 Other current assets — 1.6 95.2 698.5 700.1 — 795.3 Intercompany receivables — 120.2 — 4,682.3 4,802.5 (4,802.5 ) — Short term intercompany loan receivable — 2,006.3 — — 2,006.3 (2,006.3 ) — Total current assets — 2,128.1 95.7 12,193.4 14,321.5 (6,808.8 ) 7,608.4 Non-current assets: Investments 43,204.3 — 38,924.6 13,059.4 13,059.4 (94,947.2 ) 241.1 Property, plant and equipment (PP&E), net — — 7.6 6,627.8 6,627.8 — 6,635.4 Goodwill — — — 19,831.7 19,831.7 — 19,831.7 Intangible assets, net — — — 33,046.1 33,046.1 — 33,046.1 Deferred tax asset — — 304.1 188.8 188.8 (304.1 ) 188.8 Long term intercompany loan receivable — 12,050.2 1,609.3 — 12,050.2 (13,659.5 ) — Other non-current assets — 2.8 — 202.6 205.4 — 205.4 Total assets $ 43,204.3 $ 14,181.1 $ 40,941.3 $ 85,149.8 $ 99,330.9 $ (115,719.6 ) $ 67,756.9 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 0.2 $ 85.9 $ 18.1 $ 4,080.3 $ 4,166.2 $ — $ 4,184.5 Short term borrowings and capital leases — 2,006.3 748.8 33.6 2,039.9 — 2,788.7 Intercompany payables 3,585.3 — 1,217.2 — — (4,802.5 ) — Short term intercompany loan payable — — — 2,006.3 2,006.3 (2,006.3 ) — Other current liabilities 573.5 — 10.7 324.6 324.6 — 908.8 Total current liabilities 4,159.0 2,092.2 1,994.8 6,444.8 8,537.0 (6,808.8 ) 7,882.0 Long term borrowings and capital leases — 12,050.2 4,308.9 393.3 12,443.5 — 16,752.4 Deferred tax liability — — — 5,052.3 5,052.3 (304.1 ) 4,748.2 Long term intercompany loan payable 2,868.9 — — 10,790.6 10,790.6 (13,659.5 ) — Other non-current liabilities — — 70.0 2,127.9 2,127.9 — 2,197.9 Total liabilities 7,027.9 14,142.4 6,373.7 24,808.9 38,951.3 (20,772.4 ) 31,580.5 Total equity 36,176.4 38.7 34,567.6 60,340.9 60,379.6 (94,947.2 ) 36,176.4 Total liabilities and equity $ 43,204.3 $ 14,181.1 $ 40,941.3 $ 85,149.8 $ 99,330.9 $ (115,719.6 ) $ 67,756.9 Condensed Consolidating Statements of Operations (Unaudited, In millions) Three months ended September 30, 2018 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated Revenues: Product sales $ — $ — $ — $ 3,752.8 $ 3,752.8 $ — $ 3,752.8 Royalties and other revenues — — — 118.9 118.9 — 118.9 Total revenues — — — 3,871.7 3,871.7 — 3,871.7 Costs and expenses: Cost of sales — — — 1,157.6 1,157.6 — 1,157.6 Research and development — — — 407.2 407.2 — 407.2 Selling, general and administrative (14.5 ) — — 851.3 851.3 — 836.8 Amortization of acquired intangible assets — — — 433.7 433.7 — 433.7 Integration and acquisition costs 45.0 — 5.3 42.7 42.7 — 93.0 Reorganization costs — — — 254.8 254.8 — 254.8 Gain on sale of Oncology franchise and product rights — — — (267.2 ) (267.2 ) — (267.2 ) Total operating expenses 30.5 — 5.3 2,880.1 2,880.1 — 2,915.9 Operating income/(loss) from continuing operations (30.5 ) — (5.3 ) 991.6 991.6 — 955.8 Interest income/(expense), net (43.7 ) 5.6 (37.1 ) (48.7 ) (43.1 ) — (123.9 ) Other income/(expense), net 0.2 — (24.8 ) (71.5 ) (71.5 ) — (96.1 ) Total other income/(expense), net (43.5 ) 5.6 (61.9 ) (120.2 ) (114.6 ) — (220.0 ) Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees (74.0 ) 5.6 (67.2 ) 871.4 877.0 — 735.8 Income taxes 0.2 (2.4 ) 15.2 (216.3 ) (218.7 ) — (203.3 ) Equity in earnings/(losses) of equity method investees, net of taxes 611.0 — (74.2 ) 4.7 4.7 (536.8 ) 4.7 Income/(loss) from continuing operations, net of taxes 537.2 3.2 (126.2 ) 659.8 663.0 (536.8 ) 537.2 Net income/(loss) 537.2 3.2 (126.2 ) 659.8 663.0 (536.8 ) 537.2 Comprehensive income/(loss) $ 436.0 $ 3.2 $ (220.3 ) $ 558.6 $ 561.8 $ (341.5 ) $ 436.0 Condensed Consolidating Statements of Operations (Unaudited, In millions) Nine months ended September 30, 2018 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated Revenues: Product sales $ — $ — $ — $ 11,198.5 $ 11,198.5 $ — $ 11,198.5 Royalties and other revenues — — — 358.4 358.4 — 358.4 Total revenues — — — 11,556.9 11,556.9 — 11,556.9 Costs and expenses: Cost of sales — — — 3,398.3 3,398.3 — 3,398.3 Research and development — — — 1,240.0 1,240.0 — 1,240.0 Selling, general and administrative 76.4 — 7.2 2,465.7 2,465.7 — 2,549.3 Amortization of acquired intangible assets — — — 1,375.3 1,375.3 — 1,375.3 Integration and acquisition costs 142.7 — 7.4 361.9 361.9 — 512.0 Reorganization costs — — — 268.9 268.9 — 268.9 Gain on sale of Oncology franchise and product rights — — — (267.2 ) (267.2 ) — (267.2 ) Total operating expenses 219.1 — 14.6 8,842.9 8,842.9 — 9,076.6 Operating income/(loss) from continuing operations (219.1 ) — (14.6 ) 2,714.0 2,714.0 — 2,480.3 Interest income/(expense), net (110.4 ) (2.2 ) (91.6 ) (169.1 ) (171.3 ) — (373.3 ) Other income/(expense), net — — (23.9 ) (20.0 ) (20.0 ) — (43.9 ) Total other income/(expense), net (110.4 ) (2.2 ) (115.5 ) (189.1 ) (191.3 ) — (417.2 ) Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees (329.5 ) (2.2 ) (130.1 ) 2,524.9 2,522.7 — 2,063.1 Income taxes 17.4 0.6 28.4 (417.4 ) (416.8 ) — (371.0 ) Equity in earnings/(losses) of equity method investees, net of taxes 2,015.4 — 243.2 11.2 11.2 (2,258.6 ) 11.2 Income/(loss) from continuing operations, net of taxes 1,703.3 (1.6 ) 141.5 2,118.7 2,117.1 (2,258.6 ) 1,703.3 Net income/(loss) 1,703.3 (1.6 ) 141.5 2,118.7 2,117.1 (2,258.6 ) 1,703.3 Comprehensive income/(loss) $ 954.7 $ (1.6 ) $ (538.7 ) $ 1,370.1 $ 1,368.5 $ (829.8 ) $ 954.7 Condensed Consolidating Statements of Operations (Unaudited, In millions) Three months ended September 30, 2017 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated Revenues: Product sales $ — $ — $ — $ 3,533.8 $ 3,533.8 $ — $ 3,533.8 Royalties and other revenues — — — 163.8 163.8 — 163.8 Total revenues — — — 3,697.6 3,697.6 — 3,697.6 Costs and expenses: Cost of sales — — — 1,001.4 1,001.4 — 1,001.4 Research and development — — — 402.8 402.8 — 402.8 Selling, general and administrative 6.1 — 4.0 849.6 849.6 — 859.7 Amortization of acquired intangible assets — — — 482.4 482.4 — 482.4 Integration and acquisition costs — — 9.2 227.8 227.8 — 237.0 Reorganization costs — — — 5.4 5.4 — 5.4 Loss on sale of product rights — — — 0.3 0.3 — 0.3 Total operating expenses 6.1 — 13.2 2,969.7 2,969.7 — 2,989.0 Operating income/(loss) from continuing operations (6.1 ) — (13.2 ) 727.9 727.9 — 708.6 Interest income/(expense), net (48.0 ) 3.0 (23.6 ) (71.7 ) (68.7 ) — (140.3 ) Other income/(expense), net — — 4.4 (4.6 ) (4.6 ) — (0.2 ) Total other income/(expense), net (48.0 ) 3.0 (19.2 ) (76.3 ) (73.3 ) — (140.5 ) Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees (54.1 ) 3.0 (32.4 ) 651.6 654.6 — 568.1 Income taxes 0.9 0.6 (8.9 ) (6.1 ) (5.5 ) — (13.5 ) Equity in earnings/(losses) of equity method investees, net of taxes 604.0 — (79.8 ) (3.3 ) (3.3 ) (524.3 ) (3.4 ) Income/(loss) from continuing operations, net of taxes 550.8 3.6 (121.1 ) 642.2 645.8 (524.3 ) 551.2 Loss from discontinued operations, net of taxes — — — (0.4 ) (0.4 ) — (0.4 ) Net income/(loss) 550.8 3.6 (121.1 ) 641.8 645.4 (524.3 ) 550.8 Comprehensive income/(loss) $ 1,319.8 $ 3.6 $ 581.0 $ 1,411.2 $ 1,414.8 $ (1,995.8 ) $ 1,319.8 Condensed Consolidating Statements of Operations (Unaudited, In millions) Nine months ended September 30, 2017 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated Revenues: Product sales $ — $ — $ — $ 10,537.9 $ 10,537.9 $ — $ 10,537.9 Royalties and other revenues — — — 477.8 477.8 — 477.8 Total revenues — — — 11,015.7 11,015.7 — 11,015.7 Costs and expenses: Cost of sales — — — 3,437.3 3,437.3 — 3,437.3 Research and development — — — 1,324.5 1,324.5 — 1,324.5 Selling, general and administrative 24.2 — 15.3 2,608.2 2,608.2 — 2,647.7 Amortization of acquired intangible assets — — — 1,280.5 1,280.5 — 1,280.5 Integration and acquisition costs 164.7 — 52.3 479.7 479.7 — 696.7 Reorganization costs — — — 24.5 24.5 — 24.5 Loss on sale of product rights — — — (0.4 ) (0.4 ) — (0.4 ) Total operating expenses 188.9 — 67.6 9,154.3 9,154.3 — 9,410.8 Operating income/(loss) from continuing operations (188.9 ) — (67.6 ) 1,861.4 1,861.4 — 1,604.9 Interest income/(expense), net (109.1 ) 14.5 (66.5 ) (258.6 ) (244.1 ) — (419.7 ) Other income/(expense), net 1.8 — 4.3 0.7 0.7 — 6.8 Total other income/(expense), net (107.3 ) 14.5 (62.2 ) (257.9 ) (243.4 ) — (412.9 ) Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees (296.2 ) 14.5 (129.8 ) 1,603.5 1,618.0 — 1,192.0 Income taxes 1.7 (3.6 ) (45.0 ) 2.3 (1.3 ) — (44.6 ) Equity in earnings/(losses) of equity method investees, net of taxes 1,460.6 — (119.7 ) 0.1 0.1 (1,340.9 ) 0.1 Income/(loss) from continuing operations, net of taxes 1,166.1 10.9 (294.5 ) 1,605.9 1,616.8 (1,340.9 ) 1,147.5 Gain from discontinued operations, net of taxes — — — 18.6 18.6 — 18.6 Net income/(loss) 1,166.1 10.9 (294.5 ) 1,624.5 1,635.4 (1,340.9 ) 1,166.1 Comprehensive income/(loss) $ 3,632.8 $ 10.9 $ 2,031.5 $ 4,088.2 $ 4,099.1 $ (6,130.6 ) $ 3,632.8 Condensed Consolidating Statements of Cash Flows (Unaudited, In millions) Nine months ended September 30, 2018 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by/(used in) operating activities $ (251.2 ) $ (17.4 ) $ 264.2 $ 2,811.9 $ 2,794.5 $ — $ 2,807.5 CASH FLOWS FROM INVESTING ACTIVITIES: Transactions with subsidiaries (228.0 ) (16,010.0 ) (11,268.3 ) (32,187.9 ) (48,197.9 ) 59,694.2 — Proceeds from sale of Oncology franchise — — — 2,412.2 2,412.2 — 2,412.2 Purchases of PP&E — — — (564.6 ) (564.6 ) — (564.6 ) Acquisition of business, net of cash acquired — — — (104.7 ) (104.7 ) — (104.7 ) Proceeds from sale of investments — — — 31.8 31.8 — 31.8 Other, net — — — (97.9 ) (97.9 ) — (97.9 ) Net cash provided by/(used in) investing activities (228.0 ) (16,010.0 ) (11,268.3 ) (30,511.1 ) (46,521.1 ) 59,694.2 1,676.8 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving line of credit, long term and short term borrowings — 2,685.0 — 1,050.3 3,735.3 — 3,735.3 Repayment of revolving line of credit, long term and short term borrowings — (3,780.0 ) (3,129.5 ) (1,059.5 ) (4,839.5 ) — (7,969.0 ) Proceeds from/(to) intercompany borrowings 923.5 17,122.4 14,142.0 27,506.3 44,628.7 (59,694.2 ) — Contingent consideration payment (396.0 ) — — — — — (396.0 ) Payment of dividend (48.6 ) — — (228.0 ) (228.0 ) — (276.6 ) Proceeds from issuance of stock for share-based compensation arrangements 0.3 — 9.1 171.4 171.4 — 180.8 Other, net — — (18.0 ) (7.6 ) (7.6 ) — (25.6 ) Net cash provided by/(used in) financing activities 479.2 16,027.4 11,003.6 27,432.9 43,460.3 (59,694.2 ) (4,751.1 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (11.9 ) (11.9 ) — (11.9 ) Net decrease in cash, cash equivalents and restricted cash — — (0.5 ) (278.2 ) (278.2 ) — (278.7 ) Cash, cash equivalents and restricted cash — — 0.5 511.3 511.3 — 511.8 Cash, cash equivalents and restricted cash $ — $ — $ — $ 233.1 $ 233.1 $ — $ 233.1 Condensed Consolidating Statements of Cash Flows (Unaudited, In millions) Nine months ended September 30, 2017 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by/(used in) operating activities $ (102.9 ) $ (62.9 ) $ 0.6 $ 2,902.3 $ 2,839.4 $ — $ 2,737.1 CASH FLOWS FROM INVESTING ACTIVITIES: Transactions with subsidiaries (1,339.3 ) (262.9 ) (659.3 ) (4,209.1 ) (4,472.0 ) 6,470.6 — Purchases of PP&E — — — (565.5 ) (565.5 ) — (565.5 ) Proceeds/(payments) from sale of investments — — (9.8 ) 57.9 57.9 — 48.1 Other, net — — — 34.8 34.8 — 34.8 Net cash provided by/(used in) investing activities (1,339.3 ) (262.9 ) (669.1 ) (4,681.9 ) (4,944.8 ) 6,470.6 (482.6 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving line of credit, long term and short term borrowings 2,110.0 1,150.0 — 1.6 1,151.6 — 3,261.6 Repayment of revolving line of credit, long term and short term borrowings (2,560.0 ) (3,100.0 ) — (4.5 ) (3,104.5 ) — (5,664.5 ) Proceeds from/(to) intercompany borrowings 1,919.6 2,275.8 623.9 1,651.3 3,927.1 (6,470.6 ) — Payment of dividend (27.6 ) — — (207.1 ) (207.1 ) — (234.7 ) Proceeds from issuance of stock for share-based compensation arrangements 0.2 — 4.6 87.4 87.4 — 92.2 Other, net — — (0.8 ) (25.4 ) (25.4 ) — (26.2 ) Net cash provided by/(used in) financing activities 1,442.2 325.8 627.7 1,503.3 1,829.1 (6,470.6 ) (2,571.6 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — 6.2 6.2 — 6.2 Net decrease in cash and cash equivalents and restricted cash — — (40.8 ) (270.1 ) (270.1 ) — (310.9 ) Cash, cash equivalents, and restricted cash — — 41.7 512.8 512.8 — 554.5 Cash, cash equivalents, and restricted cash $ — $ — $ 0.9 $ 242.7 $ 242.7 $ — $ 243.6 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These interim financial statements of Shire plc and its subsidiaries are unaudited. They have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP). The Consolidated Balance Sheet as of December 31, 2017 was derived from the Audited Consolidated Financial Statements as of that date. These interim Unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , as filed with the SEC on February 20, 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from these interim financial statements. However, these interim financial statements include all adjustments, consisting of normal recurring adjustments, which are, in the opinion of management, necessary to fairly state the results of the interim period and the Company believes that the disclosures are adequate to make the information presented not misleading. Interim results are not necessarily indicative of results to be expected for the full year. |
Use of Estimates | Use of Estimates The preparation of Financial Statements, in conformity with U.S. GAAP and SEC regulations, requires management to make estimates, judgments, and assumptions that affect the reported and disclosed amounts of assets, liabilities, and equity at the date of the Unaudited Consolidated Financial Statements and reported amounts of revenues and expenses during the period. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. Estimates are based on historical experience, current conditions, and on various other assumptions that are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity and the amounts of revenues and expenses. Actual results may differ from these estimates under different assumptions or conditions. |
New Accounting Pronouncements | New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that the Company adopts as of the specified effective date. Unless otherwise discussed below, the Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on the Company’s financial position or results of operations upon adoption. Adopted during the current period Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The FASB subsequently issued several additional ASUs amending the guidance and deferred effective date to January 1, 2018. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements, and financial instruments. Under this accounting standard, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The Company adopted this new standard on January 1, 2018, using the modified retrospective transition method. Under this method, the Company recognized the cumulative-effect of initially applying the standard as an adjustment to the opening balance of retained earnings. As a result, the Company recorded a cumulative-effect adjustment to increase Retained earnings by $ 52.0 million , net of tax of $15.6 million . The modified retrospective transition method was applied only to the contracts that were not completed as of the adoption date. For a complete discussion of accounting for revenue with customers, refer to Note 3 , Revenue Recognition , to these Unaudited Consolidated Financial Statements. Impact of adoption As a result of adopting the new accounting for revenue with customers on January 1, 2018 , the following financial statement line items as of and for the three and nine months ended September 30, 2018 were affected. The following tables provide the amounts as reported in these Unaudited Consolidated Financial Statements and as if the previous accounting guidance was in effect. Unaudited Consolidated Balance Sheets As of September 30, 2018 (In millions) As reported Before Adoption of Topic 606 Other current assets $ 900.1 $ 844.5 Other current liabilities 237.8 238.8 Other non-current liabilities 2,294.9 2,296.9 Retained earnings 11,452.4 11,414.5 Unaudited Consolidated Statements of Operations Three months ended September 30, 2018 Nine months ended September 30, 2018 (In millions, except per share) As reported Before Adoption of Topic 606 As reported Before Adoption of Topic 606 Product sales $ 3,752.8 $ 3,741.5 $ 11,198.5 $ 11,162.5 Royalties and other revenues 118.9 128.0 358.4 412.7 Net income 537.2 535.5 1,703.3 1,717.4 Net income per share applicable to common shareholders - basic 0.59 0.59 1.87 1.88 Net income per share applicable to common shareholders - diluted 0.58 0.58 1.86 1.87 Unaudited Consolidated Statements of Cash Flows Nine months ended September 30, 2018 (In millions) As reported Before Adoption of Topic 606 Net income $ 1,703.3 $ 1,717.4 Adjustments to reconcile net income to net cash provided by operating activities: Decrease in prepayments and other assets 44.6 100.2 Decrease in accounts payable and other liabilities (244.8 ) (241.8 ) Financial Instrument Accounting In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard amends certain aspects of accounting and disclosure requirements of financial instruments, including the requirement that equity investments with readily determinable fair values be measured at fair value with changes in fair value recognized in the results of operations. The new standard was effective January 1, 2018. The Company adopted ASU No. 2016-01 in the first quarter of 2018. As a result of the adoption, the Company recorded a cumulative-effect adjustment to Retained earnings of $67.9 million to reclassify unrealized gains from available-for-sale equity securities previously recognized in the Other comprehensive income. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies certain aspects of the statement of cash flows, and aims to reduce diversity in practice regarding how certain transactions are classified in the statement of cash flows. This standard was effective January 1, 2018. The Company adopted ASU No. 2016-15 in the first quarter of 2018. The adoption of this guidance did not have a material impact on the Company's financial position and results of operations. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new guidance is intended to reduce diversity in the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The guidance requires that restricted cash and restricted cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. This standard was effective January 1, 2018. The Company adopted ASU No. 2016-18 in the first quarter of 2018 and amended the presentation of its statements of cash flows for the nine months ended September 30, 2018 and 2017 accordingly. The adoption of this guidance did not have a material impact on the Company's financial position and results of operations. Income Taxes In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers Other than Inventory. This standard removes the current exception in U.S. GAAP prohibiting entities from recognizing current and deferred income tax expenses or benefits related to transfer of assets, other than inventory, within the consolidated entity. The current exception to defer the recognition of any tax impact on the transfer of inventory within the consolidated entity until it is sold to a third party remains unaffected. The standard was effective January 1, 2018. The Company adopted the new standard in the first quarter of 2018 using a modified retrospective approach with a cumulative-effect adjustment to opening retained earnings. The adoption of this guidance did not have a material impact on the Company's financial position and results of operations. Retirement Benefits Income Statement Presentation In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard amends the income statement presentation of the components of net periodic benefit cost for defined benefit pension and other postretirement plans. The standard requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if such a subtotal is presented. It also requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The standard was effective January 1, 2018. The Company adopted ASU No. 2017-07 in the first quarter of 2018. Adoption of this standard did not have a material impact on the Company’s financial position and results of operations. Share-Based Payment Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope Modification Accounting. The new standard clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. This standard was effective January 1, 2018. The Company adopted ASU No. 2017-09 in the first quarter of 2018. Adoption of this standard did not have a material impact on the Company’s financial position and results of operations. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment. This new standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The Company adopted ASU No. 2017-04 in the first quarter of 2018. Adoption of this standard did not have a material impact on the Company’s financial position and results of operations. To be adopted in future periods Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new accounting guidance will require the recognition of all long-term lease assets and lease liabilities by lessees and sets forth new disclosure requirements for those lease assets and liabilities. The standard requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements. This standard will be effective for the Company on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the potential impact on its financial position and results of operations of adopting this guidance. The Company expects the adoption of this new standard may have a material impact on total assets and total liabilities within the Company's Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Operations. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The standard amends its hedge accounting model to enable entities to better portray the economics of their risk management activities in the financial statements. The new guidance also expands an entity's ability to hedge non-financial and financial risk components and reduces complexity in fair value hedges of interest rate risk. Additionally, it eliminates the requirement to separately measure and report hedge ineffectiveness, eases certain assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. This standard will be effective for the Company on January 1, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements. Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The new standard eliminates, adds and modifies certain disclosure requirements for fair value measurement as part of its disclosure framework project. The amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy will no longer be required to be disclosed, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This standard will be effective for the Company on January 1, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements. Retirement Benefits - Defined Benefit Plans In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The new standard changes the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefits plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. This standard will be effective for the Company on January 1, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements. Intangibles - Goodwill and Other Internal - Use Software In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will be effective for the Company on January 1, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Effect of Adoption of Topic 606 | Unaudited Consolidated Statements of Cash Flows Nine months ended September 30, 2018 (In millions) As reported Before Adoption of Topic 606 Net income $ 1,703.3 $ 1,717.4 Adjustments to reconcile net income to net cash provided by operating activities: Decrease in prepayments and other assets 44.6 100.2 Decrease in accounts payable and other liabilities (244.8 ) (241.8 ) Unaudited Consolidated Statements of Operations Three months ended September 30, 2018 Nine months ended September 30, 2018 (In millions, except per share) As reported Before Adoption of Topic 606 As reported Before Adoption of Topic 606 Product sales $ 3,752.8 $ 3,741.5 $ 11,198.5 $ 11,162.5 Royalties and other revenues 118.9 128.0 358.4 412.7 Net income 537.2 535.5 1,703.3 1,717.4 Net income per share applicable to common shareholders - basic 0.59 0.59 1.87 1.88 Net income per share applicable to common shareholders - diluted 0.58 0.58 1.86 1.87 Unaudited Consolidated Balance Sheets As of September 30, 2018 (In millions) As reported Before Adoption of Topic 606 Other current assets $ 900.1 $ 844.5 Other current liabilities 237.8 238.8 Other non-current liabilities 2,294.9 2,296.9 Retained earnings 11,452.4 11,414.5 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Reconciliation of Changes in Contract Assets and Liabilities | The following table presents changes in the Company’s contract assets and liabilities during the nine months ended September 30, 2018 : (In millions) As of January 1, 2018 Increase, net As of September 30, 2018 Contract assets: Unbilled receivables $ 42.7 $ 12.9 $ 55.6 Contract liabilities: Deferred revenue — 7.4 7.4 |
Dispositions and Assets Held _2
Dispositions and Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The assets and liabilities of the Oncology franchise were as follows: (In millions) As of August 31, 2018 Intangible Assets $ 1,628.3 Goodwill 565.1 Other 25.6 Current Assets $ 2,219.0 Current Liabilities $ 116.4 |
Integration and Acquisition C_2
Integration and Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Summary of Employee Termination Related Reserve and Other | The following table summarizes the reserve for the Baxalta integration costs for certain types of activities during the nine months ended September 30, 2018 : (In millions) Severance and employee benefits Lease terminations Total As of January 1, $ 72.9 $ 56.6 $ 129.5 Amount charged to integration costs 9.2 2.3 11.5 Paid/utilized (41.0 ) (19.9 ) (60.9 ) As of September 30, $ 41.1 $ 39.0 $ 80.1 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Reserve for discounts and doubtful accounts | Reserve for discounts and doubtful accounts consists of the following: (In millions) 2018 2017 As of January 1, $ 271.5 $ 169.6 Provision charged to operations 1,884.2 1,074.1 Payments/credits (1,824.3 ) (1,000.0 ) As of September 30, $ 331.4 $ 243.7 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of Inventories are as follows: (In millions) September 30, 2018 December 31, 2017 Finished goods $ 959.7 $ 926.1 Work-in-progress 1,671.6 1,574.0 Raw materials 827.4 791.4 $ 3,458.7 $ 3,291.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment are recorded at historical cost, net of accumulated depreciation. Components of Property, plant and equipment, net are summarized as follows: (In millions) September 30, 2018 December 31, 2017 Land $ 296.2 $ 332.3 Buildings and leasehold improvements 2,975.1 1,940.7 Machinery, equipment and other 3,942.5 3,106.3 Assets under construction 759.4 2,568.2 Total property, plant and equipment at cost 7,973.2 7,947.5 Less: Accumulated depreciation (1,520.2 ) (1,312.1 ) Property, plant and equipment, net $ 6,453.0 $ 6,635.4 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | The following table summarizes the Company's Intangible assets: (In millions) Currently marketed products IPR&D Other intangible assets Total September 30, 2018 Gross acquired intangible assets $ 33,767.4 $ 1,012.7 $ 830.8 $ 35,610.9 Accumulated amortization (5,561.2 ) — (424.3 ) (5,985.5 ) Intangible assets, net $ 28,206.2 $ 1,012.7 $ 406.5 $ 29,625.4 December 31, 2017 Gross acquired intangible assets $ 31,973.5 $ 5,113.9 $ 835.9 $ 37,923.3 Accumulated amortization (4,549.2 ) — (328.0 ) (4,877.2 ) Intangible assets, net $ 27,424.3 $ 5,113.9 $ 507.9 $ 33,046.1 |
Intangible Assets Roll Forward | Activities in the net book value of intangible assets for the nine months ended September 30, 2018 and 2017 are as follows: (In millions) 2018 2017 As of January 1, $ 33,046.1 $ 34,697.5 Sale of Oncology franchise (1,598.5 ) — Measurement period adjustments — (1,397.0 ) Amortization charged (1,375.3 ) (1,280.5 ) Foreign currency translation (314.2 ) 1,350.3 Contribution to JV (163.7 ) — Impairment (10.0 ) (20.0 ) Other 35.9 — Acquisition 5.1 — As of September 30, $ 29,625.4 $ 33,350.3 |
Future Amortization Expense | The estimated future amortization of acquired intangible assets for the next five years is expected to be as follows: (In millions) Anticipated future amortization 2018 (remaining three months) $ 444.4 2019 1,808.0 2020 1,730.7 2021 1,710.9 2022 1,679.3 2023 1,627.3 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table provides a roll-forward of the Goodwill balance for the nine months ended September 30, 2018 and 2017 : (In millions) 2018 2017 As of January 1, $ 19,831.7 $ 17,888.2 Acquisitions 96.3 1,076.2 Sale of Oncology franchise (565.1 ) — Foreign currency translation and other (267.9 ) 754.0 September 30, $ 19,095.0 $ 19,718.4 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following financial assets and liabilities are measured at fair value on a recurring basis using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3): Fair value (In millions) Total Level 1 Level 2 Level 3 As of September 30, 2018 Financial assets: Marketable equity securities $ 161.0 $ 161.0 $ — $ — Marketable debt securities 17.0 3.6 13.4 — Derivative instruments 13.9 — 13.9 — Total assets $ 191.9 $ 164.6 $ 27.3 $ — Financial liabilities: Joint venture net written option $ 48.0 $ — $ — $ 48.0 Derivative instruments 30.8 — 30.8 — Contingent consideration payable 616.2 — — 616.2 Total liabilities $ 695.0 $ — $ 30.8 $ 664.2 Fair value (In millions) Total Level 1 Level 2 Level 3 As of December 31, 2017 Financial assets: Marketable equity securities $ 89.7 $ 89.7 $ — $ — Marketable debt securities 17.9 3.8 14.1 — Derivative instruments 17.9 — 17.9 — Total assets $ 125.5 $ 93.5 $ 32.0 $ — Financial liabilities: Joint venture net written option $ 40.0 $ — $ — $ 40.0 Derivative instruments 14.2 — 14.2 — Contingent consideration payable 1,168.2 — — 1,168.2 Total liabilities $ 1,222.4 $ — $ 14.2 $ 1,208.2 |
Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | Contingent consideration payable (In millions) 2018 2017 Balance as of January 1, $ 1,168.2 $ 1,058.0 Acquisitions — (4.0 ) Payments (647.1 ) — Change in fair value included in earnings 100.4 144.3 Other (5.3 ) (11.4 ) Balance as of September 30, $ 616.2 $ 1,186.9 |
Fair Value Inputs, Liabilities Quantitative Information Table | Financial liabilities: Fair value as of the measurement date As of September 30, 2018 (In millions, except %) Fair value Valuation technique Significant unobservable inputs Range Contingent consideration payable $ 616.2 Income approach (probability weighted discounted cash flow) • Cumulative probability of milestones being achieved • 10.5 to 90% • Assumed market participant discount rate • 3.2 to 9.2% • Periods in which milestones are expected to be achieved • 2018 to 2040 • Forecast quarterly royalties payable on net sales of relevant products • $0.1 to $16.0 Contingent consideration payable represents future milestones and royalties the Company may be required to pay in conjunction with various business combinations and license agreements. The fair value of the Company’s contingent consideration payable could significantly increase or decrease due to changes in certain assumptions which underpin the fair value measurements. Each set of assumptions is specific to the individual contingent consideration payable. Financial liabilities: Fair value as of the measurement date As of September 30, 2018 (In millions, except %) Fair value Valuation technique Significant unobservable inputs Range Joint venture net written option $ 48.0 Income approach (probability weighted discounted cash flow) • Cash flow scenario probability weighting • 100% • Assumed market participant discount rate • 14% |
Schedule of Fair Value, Assets and Liabilities Not Measured at Fair Value on Recurring Basis | The carrying amounts and estimated fair values of the Company’s financial assets and liabilities that are not measured at fair value on a recurring basis are as follows: September 30, 2018 December 31, 2017 (In millions) Carrying amount Fair value Carrying amount Fair value Financial liabilities: SAIIDAC notes $ 12,058.9 $ 11,604.7 $ 12,050.2 $ 11,913.7 Baxalta notes 1,939.9 1,951.3 5,057.7 5,229.9 Capital lease obligation 366.8 366.8 349.2 349.2 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instrument Detail [Abstract] | |
Summary of Derivative Instruments | The table below presents the notional amount, maturity, and fair value for the designated interest rate derivatives: (In millions, except maturity) September 30, 2018 December 31, 2017 Notional amount $ 431.0 $ 1,000.0 Maturity June 2020 and June 2025 June 2020 and June 2025 Fair value - net liability $ (15.6 ) $ (7.7 ) The table below presents the notional amount, maximum duration, and fair value for the undesignated foreign currency derivatives: (In millions, except duration) September 30, 2018 December 31, 2017 Notional amount $ 2,192.4 $ 1,672.3 Maximum duration 11 months 3 months Fair value - net (liability)/asset $ (1.3 ) $ 11.4 |
Schedule of Foreign Exchange Contracts and Other Derivative Instruments, Statement of Financial Position | The following tables summarize the effect of the derivative instruments in the Company's Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 . Designated Foreign exchange contracts (In millions) Loss recognized in OCI Gain reclassified from AOCI into income Cash flow hedges 2018 2017 Location 2018 2017 Three months ended September 30, Foreign exchange contracts $ — $ (0.2 ) Cost of sales $ — $ 0.3 Nine months ended September 30, Foreign exchange contracts $ — $ (0.9 ) Cost of sales $ — $ 8.6 Undesignated foreign exchange contracts (In millions) Gain/(loss) recognized in income Location 2018 2017 Three months ended September 30, Foreign exchange contracts Other (expense)/income, net $ 4.7 $ 36.7 Nine months ended September 30, Foreign exchange contracts Other (expense)/income, net $ (28.6 ) $ 57.4 Designated Interest Rate Derivatives (In millions) Loss recognized in income Fair value hedges Location 2018 2017 Three months ended September 30, Interest rate contracts, net Interest expense $ (1.0 ) $ (1.1 ) Nine months ended September 30, Interest rate contracts, net Interest expense $ (4.9 ) $ (2.5 ) |
Classification and Estimated Fair Value Amounts of Derivative Instruments | The following table presents the classification and estimated fair value of derivative instruments on the Company's Unaudited Consolidated Balance Sheets: Asset position Liability position Fair value Fair value (In millions) Location September 30, 2018 December 31, 2017 Location September 30, 2018 December 31, 2017 Undesignated derivative instruments Foreign exchange contracts Other current assets $ 13.9 $ 17.9 Other current liabilities $ 15.2 $ 6.5 $ 13.9 $ 17.9 $ 15.2 $ 6.5 Designated derivative Instruments Interest rate contracts Long term borrowings $ — $ — Long term borrowings $ 15.6 $ 7.7 $ — $ — $ 15.6 $ 7.7 Total derivative fair value $ 13.9 $ 17.9 $ 30.8 $ 14.2 Potential effect of rights to offset (8.3 ) (2.7 ) (8.3 ) (2.7 ) Net derivative $ 5.6 $ 15.2 $ 22.5 $ 11.5 |
Borrowings and Capital Leases (
Borrowings and Capital Leases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Below is a summary of the SAIIDAC Notes as of September 30, 2018 : (In millions, except %) Aggregate amount Coupon rate Carrying amount as of September 30, 2018 Fixed-rate notes due 2019 $ 3,300.0 1.900 % $ 3,295.3 Fixed-rate notes due 2021 3,300.0 2.400 % 3,289.0 Fixed-rate notes due 2023 2,500.0 2.875 % 2,490.8 Fixed-rate notes due 2026 3,000.0 3.200 % 2,983.8 $ 12,100.0 $ 12,058.9 Following repayment of the $375.0 million floating-rate notes and the $375.0 million fixed-rate notes due in June 2018 and the subsequent $2.3 billion bond tender offer on September 11, 2018, the remaining Baxalta Notes as of September 30, 2018 are shown below: (In millions, except %) Aggregate principal Coupon rate Carrying amount as of September 30, 2018 Fixed-rate notes due 2020 $ 404.5 2.875 % $ 403.0 Fixed-rate notes due 2022 219.4 3.600 % 221.9 Fixed-rate notes due 2025 800.5 4.000 % 799.7 Fixed-rate notes due 2045 500.4 5.250 % 515.3 Total assumed Senior Notes $ 1,924.8 $ 1,939.9 (In millions) September 30, 2018 December 31, 2017 Short term borrowings and capital leases: SAIIDAC Notes $ 3,295.3 $ — Baxalta Notes — 748.8 Borrowings under the Revolving Credit Facilities Agreement 915.0 810.0 Borrowings under the November 2015 Facilities Agreement — 1,196.3 Capital leases 9.5 7.5 Other borrowings 28.9 26.1 $ 4,248.7 $ 2,788.7 Long term borrowings and capital leases: SAIIDAC Notes $ 8,763.6 $ 12,050.2 Baxalta Notes 1,939.9 4,308.9 Capital leases 357.3 341.7 Other borrowings 37.2 51.6 $ 11,098.0 $ 16,752.4 Total borrowings and capital leases $ 15,346.7 $ 19,541.1 |
Retirement and Other Benefit _2
Retirement and Other Benefit Programs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | Net periodic benefit cost for the three and nine months ended September 30, 2018 and 2017 is as follows: Three months ended September 30, 2018 2017 (In millions) U.S. pensions International pensions OPEB (U.S.) U.S. pensions International pensions OPEB (U.S.) Net periodic benefit cost Service cost $ — $ 9.5 $ — $ 3.7 $ 9.4 $ 0.4 Interest cost 3.9 1.3 0.1 3.9 1.2 0.3 Expected return on plan assets (4.3 ) (2.0 ) — (4.0 ) (1.8 ) — Amortization of net prior service cost — — (0.2 ) — — — Amortization of actuarial (gain)/loss — (0.3 ) — — 0.4 — Net periodic benefit cost $ (0.4 ) $ 8.5 $ (0.1 ) $ 3.6 $ 9.2 $ 0.7 Nine months ended September 30, 2018 2017 (In millions) U.S. pensions International pensions OPEB (U.S.) U.S. pensions International pensions OPEB (U.S.) Net periodic benefit cost Service cost $ — $ 28.5 $ — $ 11.1 $ 28.2 $ 1.2 Interest cost 11.7 3.9 0.3 11.7 3.6 0.9 Expected return on plan assets (12.9 ) (6.0 ) — (12.0 ) (5.4 ) — Amortization of net prior service cost — — (0.6 ) — — — Amortization of actuarial (gain)/loss — (0.9 ) — — 1.3 — Net periodic benefit cost $ (1.2 ) $ 25.5 $ (0.3 ) $ 10.8 $ 27.7 $ 2.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income, Net of Tax | (In millions) Foreign currency translation adjustment Pension and other employee benefits Unrealized holding loss on available-for-sale securities Hedging activities Accumulated other comprehensive (loss)/income As of January 1, 2017 $ (1,505.4 ) $ (5.2 ) $ 6.6 $ 6.4 $ (1,497.6 ) Current period change: Other comprehensive income before reclassifications 2,441.1 9.7 24.7 0.5 2,476.0 Amounts reclassified from AOCI — 1.3 (4.4 ) (6.2 ) (9.3 ) Net current period other comprehensive income/(loss) 2,441.1 11.0 20.3 (5.7 ) 2,466.7 As of September 30, 2017 $ 935.7 $ 5.8 $ 26.9 $ 0.7 $ 969.1 Reclassifications from AOCI to net income during the three and nine months ended September 30, 2018 and 2017 were not material. The changes in Accumulated other comprehensive income/(loss) (AOCI), net of their related tax effects, for the nine months ended September 30, 2018 and 2017 are as follows: (In millions) Foreign currency translation adjustment Pension and other employee benefits Unrealized holding gain/(loss) on available-for-sale debt securities Accumulated other comprehensive income/(loss) As of January 1, 2018 $ 1,279.6 $ 27.5 $ 67.9 $ 1,375.0 Current period change: Other comprehensive loss before reclassifications (679.2 ) — — (679.2 ) Amounts reclassified from AOCI — (1.5 ) (67.9 ) (69.4 ) Net current period other comprehensive loss (679.2 ) (1.5 ) (67.9 ) (748.6 ) As of September 30, 2018 $ 600.4 $ 26.0 $ — $ 626.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table reconciles net income and the weighted average ordinary shares outstanding for basic and diluted earnings per share (EPS) for the periods presented: Three months ended September 30, Nine months ended September 30, (In millions) 2018 2017 2018 2017 Income from continuing operations, net of taxes $ 537.2 $ 551.2 $ 1,703.3 $ 1,147.5 (Loss)/Gain from discontinued operations, net of taxes — (0.4 ) — 18.6 Numerator for basic and diluted earnings per share $ 537.2 $ 550.8 $ 1,703.3 $ 1,166.1 Weighted average number of shares: Basic 914.0 907.2 912.0 905.9 Effect of dilutive shares: Share-based awards to employees 7.1 4.4 4.9 6.2 Diluted 921.1 911.6 916.9 912.1 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The share equivalents not included in the calculation of the diluted weighted average number of shares are shown below: Three months ended September 30, Nine months ended September 30, (Number of shares in millions) 2018 2017 2018 2017 Share-based awards to employees 10.0 16.2 13.4 14.8 |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Expense | Total share-based compensation recorded by the Company during the three and nine months ended September 30, 2018 and 2017 by line item is as follows: Three months ended September 30, Nine months ended September 30, (In millions) 2018 2017 2018 2017 Cost of sales $ 6.3 $ 17.4 $ 21.2 $ 30.1 Research and development 10.0 3.2 35.5 22.9 Selling, general and administrative 29.5 30.9 75.2 94.1 Integration and acquisition costs 3.0 1.8 3.8 12.6 Total 48.8 53.3 135.7 159.7 Less tax (7.8 ) (13.3 ) (22.2 ) (42.9 ) $ 41.0 $ 40.0 $ 113.5 $ 116.8 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | In the periods set out below, U.S. and International Product sales by franchise were as follows: Three months ended September 30, 2018 September 30, 2017 (In millions) U.S. Sales International Sales Total Sales U.S. Sales International Sales Total Sales Product sales by franchise IMMUNOGLOBULIN THERAPIES $ 530.7 $ 125.2 $ 655.9 $ 486.6 $ 118.5 $ 605.1 HEREDITARY ANGIOEDEMA 291.3 37.7 329.0 235.8 32.6 268.4 BIO THERAPEUTICS 91.9 120.4 212.3 86.3 110.3 196.6 Immunology 913.9 283.3 1,197.2 808.7 261.4 1,070.1 HEMOPHILIA 386.6 349.3 735.9 357.5 367.8 725.3 INHIBITOR THERAPIES 44.7 124.4 169.1 70.6 120.1 190.7 Hematology 431.3 473.7 905.0 428.1 487.9 916.0 VYVANSE 528.5 66.5 595.0 476.8 61.6 538.4 ADDERALL XR 71.5 4.8 76.3 99.4 6.6 106.0 MYDAYIS 19.3 — 19.3 10.2 — 10.2 Other Neuroscience (1) 0.9 40.2 41.1 6.7 29.8 36.5 Neuroscience 620.2 111.5 731.7 593.1 98.0 691.1 ELAPRASE 41.7 128.9 170.6 41.4 111.5 152.9 REPLAGAL — 123.0 123.0 — 117.2 117.2 VPRIV 39.0 48.8 87.8 37.5 52.1 89.6 Genetic Diseases 80.7 300.7 381.4 78.9 280.8 359.7 LIALDA/MEZAVANT 88.9 30.2 119.1 61.4 25.3 86.7 PENTASA 65.7 — 65.7 72.1 — 72.1 Other Established Brands (2) 10.7 21.0 31.7 11.4 20.3 31.7 Established Brands 165.3 51.2 216.5 144.9 45.6 190.5 GATTEX/REVESTIVE 82.2 14.9 97.1 72.6 12.3 84.9 NATPARA/NATPAR 47.8 3.2 51.0 39.1 — 39.1 Other Internal Medicine (3) 0.1 28.9 29.0 0.6 35.9 36.5 Internal Medicine 130.1 47.0 177.1 112.3 48.2 160.5 Ophthalmics 92.1 1.3 93.4 77.4 — 77.4 Oncology (4) 33.4 17.1 50.5 47.2 21.3 68.5 Total product sales $ 2,467.0 $ 1,285.8 $ 3,752.8 $ 2,290.6 $ 1,243.2 $ 3,533.8 (1) Other Neuroscience includes INTUNIV, EQUASYM, and BUCCOLAM. (2) Other Established Brands includes FOSRENOL and CARBATROL. (3) Other Internal Medicine includes AGRYLIN, PLENADREN, and RESOLOR. (4) Results include the Oncology franchise until the date of its sale on August 31, 2018. In the periods set out below, Royalties and other revenues were as follows: Three months ended (In millions) September 30, 2018 September 30, 2017 Royalties $ 45.1 $ 111.4 Other revenues 73.8 52.4 Royalties and other revenues $ 118.9 $ 163.8 Nine months ended September 30, 2018 September 30, 2017 (In millions) U.S. Sales International Sales Total Sales U.S. Sales International Sales Total Sales Product sales by franchise IMMUNOGLOBULIN THERAPIES $ 1,409.6 $ 416.3 $ 1,825.9 $ 1,299.9 $ 314.0 $ 1,613.9 HEREDITARY ANGIOEDEMA 949.9 113.1 1,063.0 878.9 89.5 968.4 BIO THERAPEUTICS 254.8 328.9 583.7 231.9 314.8 546.7 Immunology 2,614.3 858.3 3,472.6 2,410.7 718.3 3,129.0 HEMOPHILIA 1,152.6 1,072.8 2,225.4 1,082.1 1,037.5 2,119.6 INHIBITOR THERAPIES 160.5 422.7 583.2 217.4 414.5 631.9 Hematology 1,313.1 1,495.5 2,808.6 1,299.5 1,452.0 2,751.5 VYVANSE 1,572.3 207.5 1,779.8 1,445.4 174.9 1,620.3 ADDERALL XR 219.4 12.7 232.1 225.9 16.4 242.3 MYDAYIS 40.4 — 40.4 25.9 — 25.9 Other Neuroscience (1) 6.0 111.8 117.8 13.5 77.8 91.3 Neuroscience 1,838.1 332.0 2,170.1 1,710.7 269.1 1,979.8 ELAPRASE 126.6 338.9 465.5 119.4 335.1 454.5 REPLAGAL — 372.8 372.8 — 349.0 349.0 VPRIV 113.9 153.4 267.3 110.3 147.0 257.3 Genetic Diseases 240.5 865.1 1,105.6 229.7 831.1 1,060.8 LIALDA/MEZAVANT 194.8 92.2 287.0 402.0 67.6 469.6 PENTASA 215.6 — 215.6 224.5 — 224.5 Other Established Brands (2) 43.8 62.1 105.9 67.0 55.3 122.3 Established Brands 454.2 154.3 608.5 693.5 122.9 816.4 GATTEX/REVESTIVE 280.2 46.6 326.8 193.3 35.9 229.2 NATPARA/NATPAR 153.5 7.3 160.8 103.2 0.1 103.3 Other Internal Medicine (3) 0.8 100.5 101.3 1.3 103.9 105.2 Internal Medicine 434.5 154.4 588.9 297.8 139.9 437.7 Ophthalmics 252.9 2.9 255.8 173.4 — 173.4 Oncology (4) 124.8 63.6 188.4 135.3 54.0 189.3 Total product sales $ 7,272.4 $ 3,926.1 $ 11,198.5 $ 6,950.6 $ 3,587.3 $ 10,537.9 (1) Other Neuroscience includes INTUNIV, EQUASYM, and BUCCOLAM. (2) Other Established Brands includes FOSRENOL and CARBATROL. (3) Other Internal Medicine includes AGRYLIN, PLENADREN, and RESOLOR. (4) Results include the Oncology franchise until the date of its sale on August 31, 2018. In the periods set out below, Royalties and other revenues were as follows: Nine months ended (In millions) September 30, 2018 September 30, 2017 Royalties $ 175.4 $ 329.7 Other revenues 183.0 148.1 Royalties and other revenues $ 358.4 $ 477.8 |
Guarantor Financial Informati_2
Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Income Statement | Condensed Consolidating Statements of Operations (Unaudited, In millions) Three months ended September 30, 2018 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated Revenues: Product sales $ — $ — $ — $ 3,752.8 $ 3,752.8 $ — $ 3,752.8 Royalties and other revenues — — — 118.9 118.9 — 118.9 Total revenues — — — 3,871.7 3,871.7 — 3,871.7 Costs and expenses: Cost of sales — — — 1,157.6 1,157.6 — 1,157.6 Research and development — — — 407.2 407.2 — 407.2 Selling, general and administrative (14.5 ) — — 851.3 851.3 — 836.8 Amortization of acquired intangible assets — — — 433.7 433.7 — 433.7 Integration and acquisition costs 45.0 — 5.3 42.7 42.7 — 93.0 Reorganization costs — — — 254.8 254.8 — 254.8 Gain on sale of Oncology franchise and product rights — — — (267.2 ) (267.2 ) — (267.2 ) Total operating expenses 30.5 — 5.3 2,880.1 2,880.1 — 2,915.9 Operating income/(loss) from continuing operations (30.5 ) — (5.3 ) 991.6 991.6 — 955.8 Interest income/(expense), net (43.7 ) 5.6 (37.1 ) (48.7 ) (43.1 ) — (123.9 ) Other income/(expense), net 0.2 — (24.8 ) (71.5 ) (71.5 ) — (96.1 ) Total other income/(expense), net (43.5 ) 5.6 (61.9 ) (120.2 ) (114.6 ) — (220.0 ) Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees (74.0 ) 5.6 (67.2 ) 871.4 877.0 — 735.8 Income taxes 0.2 (2.4 ) 15.2 (216.3 ) (218.7 ) — (203.3 ) Equity in earnings/(losses) of equity method investees, net of taxes 611.0 — (74.2 ) 4.7 4.7 (536.8 ) 4.7 Income/(loss) from continuing operations, net of taxes 537.2 3.2 (126.2 ) 659.8 663.0 (536.8 ) 537.2 Net income/(loss) 537.2 3.2 (126.2 ) 659.8 663.0 (536.8 ) 537.2 Comprehensive income/(loss) $ 436.0 $ 3.2 $ (220.3 ) $ 558.6 $ 561.8 $ (341.5 ) $ 436.0 Condensed Consolidating Statements of Operations (Unaudited, In millions) Nine months ended September 30, 2018 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated Revenues: Product sales $ — $ — $ — $ 11,198.5 $ 11,198.5 $ — $ 11,198.5 Royalties and other revenues — — — 358.4 358.4 — 358.4 Total revenues — — — 11,556.9 11,556.9 — 11,556.9 Costs and expenses: Cost of sales — — — 3,398.3 3,398.3 — 3,398.3 Research and development — — — 1,240.0 1,240.0 — 1,240.0 Selling, general and administrative 76.4 — 7.2 2,465.7 2,465.7 — 2,549.3 Amortization of acquired intangible assets — — — 1,375.3 1,375.3 — 1,375.3 Integration and acquisition costs 142.7 — 7.4 361.9 361.9 — 512.0 Reorganization costs — — — 268.9 268.9 — 268.9 Gain on sale of Oncology franchise and product rights — — — (267.2 ) (267.2 ) — (267.2 ) Total operating expenses 219.1 — 14.6 8,842.9 8,842.9 — 9,076.6 Operating income/(loss) from continuing operations (219.1 ) — (14.6 ) 2,714.0 2,714.0 — 2,480.3 Interest income/(expense), net (110.4 ) (2.2 ) (91.6 ) (169.1 ) (171.3 ) — (373.3 ) Other income/(expense), net — — (23.9 ) (20.0 ) (20.0 ) — (43.9 ) Total other income/(expense), net (110.4 ) (2.2 ) (115.5 ) (189.1 ) (191.3 ) — (417.2 ) Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees (329.5 ) (2.2 ) (130.1 ) 2,524.9 2,522.7 — 2,063.1 Income taxes 17.4 0.6 28.4 (417.4 ) (416.8 ) — (371.0 ) Equity in earnings/(losses) of equity method investees, net of taxes 2,015.4 — 243.2 11.2 11.2 (2,258.6 ) 11.2 Income/(loss) from continuing operations, net of taxes 1,703.3 (1.6 ) 141.5 2,118.7 2,117.1 (2,258.6 ) 1,703.3 Net income/(loss) 1,703.3 (1.6 ) 141.5 2,118.7 2,117.1 (2,258.6 ) 1,703.3 Comprehensive income/(loss) $ 954.7 $ (1.6 ) $ (538.7 ) $ 1,370.1 $ 1,368.5 $ (829.8 ) $ 954.7 Condensed Consolidating Statements of Operations (Unaudited, In millions) Three months ended September 30, 2017 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated Revenues: Product sales $ — $ — $ — $ 3,533.8 $ 3,533.8 $ — $ 3,533.8 Royalties and other revenues — — — 163.8 163.8 — 163.8 Total revenues — — — 3,697.6 3,697.6 — 3,697.6 Costs and expenses: Cost of sales — — — 1,001.4 1,001.4 — 1,001.4 Research and development — — — 402.8 402.8 — 402.8 Selling, general and administrative 6.1 — 4.0 849.6 849.6 — 859.7 Amortization of acquired intangible assets — — — 482.4 482.4 — 482.4 Integration and acquisition costs — — 9.2 227.8 227.8 — 237.0 Reorganization costs — — — 5.4 5.4 — 5.4 Loss on sale of product rights — — — 0.3 0.3 — 0.3 Total operating expenses 6.1 — 13.2 2,969.7 2,969.7 — 2,989.0 Operating income/(loss) from continuing operations (6.1 ) — (13.2 ) 727.9 727.9 — 708.6 Interest income/(expense), net (48.0 ) 3.0 (23.6 ) (71.7 ) (68.7 ) — (140.3 ) Other income/(expense), net — — 4.4 (4.6 ) (4.6 ) — (0.2 ) Total other income/(expense), net (48.0 ) 3.0 (19.2 ) (76.3 ) (73.3 ) — (140.5 ) Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees (54.1 ) 3.0 (32.4 ) 651.6 654.6 — 568.1 Income taxes 0.9 0.6 (8.9 ) (6.1 ) (5.5 ) — (13.5 ) Equity in earnings/(losses) of equity method investees, net of taxes 604.0 — (79.8 ) (3.3 ) (3.3 ) (524.3 ) (3.4 ) Income/(loss) from continuing operations, net of taxes 550.8 3.6 (121.1 ) 642.2 645.8 (524.3 ) 551.2 Loss from discontinued operations, net of taxes — — — (0.4 ) (0.4 ) — (0.4 ) Net income/(loss) 550.8 3.6 (121.1 ) 641.8 645.4 (524.3 ) 550.8 Comprehensive income/(loss) $ 1,319.8 $ 3.6 $ 581.0 $ 1,411.2 $ 1,414.8 $ (1,995.8 ) $ 1,319.8 Condensed Consolidating Statements of Operations (Unaudited, In millions) Nine months ended September 30, 2017 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated Revenues: Product sales $ — $ — $ — $ 10,537.9 $ 10,537.9 $ — $ 10,537.9 Royalties and other revenues — — — 477.8 477.8 — 477.8 Total revenues — — — 11,015.7 11,015.7 — 11,015.7 Costs and expenses: Cost of sales — — — 3,437.3 3,437.3 — 3,437.3 Research and development — — — 1,324.5 1,324.5 — 1,324.5 Selling, general and administrative 24.2 — 15.3 2,608.2 2,608.2 — 2,647.7 Amortization of acquired intangible assets — — — 1,280.5 1,280.5 — 1,280.5 Integration and acquisition costs 164.7 — 52.3 479.7 479.7 — 696.7 Reorganization costs — — — 24.5 24.5 — 24.5 Loss on sale of product rights — — — (0.4 ) (0.4 ) — (0.4 ) Total operating expenses 188.9 — 67.6 9,154.3 9,154.3 — 9,410.8 Operating income/(loss) from continuing operations (188.9 ) — (67.6 ) 1,861.4 1,861.4 — 1,604.9 Interest income/(expense), net (109.1 ) 14.5 (66.5 ) (258.6 ) (244.1 ) — (419.7 ) Other income/(expense), net 1.8 — 4.3 0.7 0.7 — 6.8 Total other income/(expense), net (107.3 ) 14.5 (62.2 ) (257.9 ) (243.4 ) — (412.9 ) Income/(loss) from continuing operations before income taxes and equity in earnings/(losses) of equity method investees (296.2 ) 14.5 (129.8 ) 1,603.5 1,618.0 — 1,192.0 Income taxes 1.7 (3.6 ) (45.0 ) 2.3 (1.3 ) — (44.6 ) Equity in earnings/(losses) of equity method investees, net of taxes 1,460.6 — (119.7 ) 0.1 0.1 (1,340.9 ) 0.1 Income/(loss) from continuing operations, net of taxes 1,166.1 10.9 (294.5 ) 1,605.9 1,616.8 (1,340.9 ) 1,147.5 Gain from discontinued operations, net of taxes — — — 18.6 18.6 — 18.6 Net income/(loss) 1,166.1 10.9 (294.5 ) 1,624.5 1,635.4 (1,340.9 ) 1,166.1 Comprehensive income/(loss) $ 3,632.8 $ 10.9 $ 2,031.5 $ 4,088.2 $ 4,099.1 $ (6,130.6 ) $ 3,632.8 |
Condensed Balance Sheet | Condensed Consolidating Balance Sheets (Unaudited, In millions) As of September 30, 2018 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ — $ 193.2 $ 193.2 $ — $ 193.2 Restricted cash — — — 39.9 39.9 — 39.9 Accounts receivable, net — — — 3,207.4 3,207.4 — 3,207.4 Inventories — — — 3,458.7 3,458.7 — 3,458.7 Other current assets — 1.5 81.2 817.4 818.9 — 900.1 Intercompany receivables — 41.0 — 7,811.8 7,852.8 (7,852.8 ) — Short term intercompany loan receivable — 4,210.3 — — 4,210.3 (4,210.3 ) — Total current assets — 4,252.8 81.2 15,528.4 19,781.2 (12,063.1 ) 7,799.3 Non-current assets: Investments 44,695.6 — 38,547.8 13,312.3 13,312.3 (96,085.0 ) 470.7 Property, plant and equipment (PP&E), net — — 4.6 6,448.4 6,448.4 — 6,453.0 Goodwill — — — 19,095.0 19,095.0 — 19,095.0 Intangible assets, net — — — 29,625.4 29,625.4 — 29,625.4 Deferred tax asset — — 304.1 151.2 151.2 (304.1 ) 151.2 Long term intercompany loan receivable — 8,763.6 3,507.0 — 8,763.6 (12,270.6 ) — Other non-current assets — 1.9 — 169.4 171.3 — 171.3 Total assets $ 44,695.6 $ 13,018.3 $ 42,444.7 $ 84,330.1 $ 97,348.4 $ (120,722.8 ) $ 63,765.9 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 6.4 $ 8.0 $ 33.6 $ 3,977.1 $ 3,985.1 $ — $ 4,025.1 Short term borrowings and capital leases — 4,210.3 — 38.4 4,248.7 — 4,248.7 Intercompany payables 3,612.5 — 4,240.3 — — (7,852.8 ) — Short term intercompany loan payable — — — 4,210.3 4,210.3 (4,210.3 ) — Other current liabilities — — 3.8 234.0 234.0 — 237.8 Total current liabilities 3,618.9 4,218.3 4,277.7 8,459.8 12,678.1 (12,063.1 ) 8,511.6 Long term borrowings and capital leases — 8,763.6 1,939.9 394.5 9,158.1 — 11,098.0 Deferred tax liability — — — 4,875.3 4,875.3 (304.1 ) 4,571.2 Long term intercompany loan payable 3,786.5 — — 8,484.1 8,484.1 (12,270.6 ) — Other non-current liabilities — — 60.3 2,234.6 2,234.6 — 2,294.9 Total liabilities 7,405.4 12,981.9 6,277.9 24,448.3 37,430.2 (24,637.8 ) 26,475.7 Total equity 37,290.2 36.4 36,166.8 59,881.8 59,918.2 (96,085.0 ) 37,290.2 Total liabilities and equity $ 44,695.6 $ 13,018.3 $ 42,444.7 $ 84,330.1 $ 97,348.4 $ (120,722.8 ) $ 63,765.9 Condensed Consolidating Balance Sheets (Unaudited, In millions) As of December 31, 2017 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 0.5 $ 471.9 $ 471.9 $ — $ 472.4 Restricted cash — — — 39.4 39.4 — 39.4 Accounts receivable, net — — — 3,009.8 3,009.8 — 3,009.8 Inventories — — — 3,291.5 3,291.5 — 3,291.5 Other current assets — 1.6 95.2 698.5 700.1 — 795.3 Intercompany receivables — 120.2 — 4,682.3 4,802.5 (4,802.5 ) — Short term intercompany loan receivable — 2,006.3 — — 2,006.3 (2,006.3 ) — Total current assets — 2,128.1 95.7 12,193.4 14,321.5 (6,808.8 ) 7,608.4 Non-current assets: Investments 43,204.3 — 38,924.6 13,059.4 13,059.4 (94,947.2 ) 241.1 Property, plant and equipment (PP&E), net — — 7.6 6,627.8 6,627.8 — 6,635.4 Goodwill — — — 19,831.7 19,831.7 — 19,831.7 Intangible assets, net — — — 33,046.1 33,046.1 — 33,046.1 Deferred tax asset — — 304.1 188.8 188.8 (304.1 ) 188.8 Long term intercompany loan receivable — 12,050.2 1,609.3 — 12,050.2 (13,659.5 ) — Other non-current assets — 2.8 — 202.6 205.4 — 205.4 Total assets $ 43,204.3 $ 14,181.1 $ 40,941.3 $ 85,149.8 $ 99,330.9 $ (115,719.6 ) $ 67,756.9 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 0.2 $ 85.9 $ 18.1 $ 4,080.3 $ 4,166.2 $ — $ 4,184.5 Short term borrowings and capital leases — 2,006.3 748.8 33.6 2,039.9 — 2,788.7 Intercompany payables 3,585.3 — 1,217.2 — — (4,802.5 ) — Short term intercompany loan payable — — — 2,006.3 2,006.3 (2,006.3 ) — Other current liabilities 573.5 — 10.7 324.6 324.6 — 908.8 Total current liabilities 4,159.0 2,092.2 1,994.8 6,444.8 8,537.0 (6,808.8 ) 7,882.0 Long term borrowings and capital leases — 12,050.2 4,308.9 393.3 12,443.5 — 16,752.4 Deferred tax liability — — — 5,052.3 5,052.3 (304.1 ) 4,748.2 Long term intercompany loan payable 2,868.9 — — 10,790.6 10,790.6 (13,659.5 ) — Other non-current liabilities — — 70.0 2,127.9 2,127.9 — 2,197.9 Total liabilities 7,027.9 14,142.4 6,373.7 24,808.9 38,951.3 (20,772.4 ) 31,580.5 Total equity 36,176.4 38.7 34,567.6 60,340.9 60,379.6 (94,947.2 ) 36,176.4 Total liabilities and equity $ 43,204.3 $ 14,181.1 $ 40,941.3 $ 85,149.8 $ 99,330.9 $ (115,719.6 ) $ 67,756.9 |
Condensed Cash Flow Statement | Condensed Consolidating Statements of Cash Flows (Unaudited, In millions) Nine months ended September 30, 2018 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by/(used in) operating activities $ (251.2 ) $ (17.4 ) $ 264.2 $ 2,811.9 $ 2,794.5 $ — $ 2,807.5 CASH FLOWS FROM INVESTING ACTIVITIES: Transactions with subsidiaries (228.0 ) (16,010.0 ) (11,268.3 ) (32,187.9 ) (48,197.9 ) 59,694.2 — Proceeds from sale of Oncology franchise — — — 2,412.2 2,412.2 — 2,412.2 Purchases of PP&E — — — (564.6 ) (564.6 ) — (564.6 ) Acquisition of business, net of cash acquired — — — (104.7 ) (104.7 ) — (104.7 ) Proceeds from sale of investments — — — 31.8 31.8 — 31.8 Other, net — — — (97.9 ) (97.9 ) — (97.9 ) Net cash provided by/(used in) investing activities (228.0 ) (16,010.0 ) (11,268.3 ) (30,511.1 ) (46,521.1 ) 59,694.2 1,676.8 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving line of credit, long term and short term borrowings — 2,685.0 — 1,050.3 3,735.3 — 3,735.3 Repayment of revolving line of credit, long term and short term borrowings — (3,780.0 ) (3,129.5 ) (1,059.5 ) (4,839.5 ) — (7,969.0 ) Proceeds from/(to) intercompany borrowings 923.5 17,122.4 14,142.0 27,506.3 44,628.7 (59,694.2 ) — Contingent consideration payment (396.0 ) — — — — — (396.0 ) Payment of dividend (48.6 ) — — (228.0 ) (228.0 ) — (276.6 ) Proceeds from issuance of stock for share-based compensation arrangements 0.3 — 9.1 171.4 171.4 — 180.8 Other, net — — (18.0 ) (7.6 ) (7.6 ) — (25.6 ) Net cash provided by/(used in) financing activities 479.2 16,027.4 11,003.6 27,432.9 43,460.3 (59,694.2 ) (4,751.1 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (11.9 ) (11.9 ) — (11.9 ) Net decrease in cash, cash equivalents and restricted cash — — (0.5 ) (278.2 ) (278.2 ) — (278.7 ) Cash, cash equivalents and restricted cash — — 0.5 511.3 511.3 — 511.8 Cash, cash equivalents and restricted cash $ — $ — $ — $ 233.1 $ 233.1 $ — $ 233.1 Condensed Consolidating Statements of Cash Flows (Unaudited, In millions) Nine months ended September 30, 2017 Shire plc (Parent Guarantor) SAIIDAC (SAIIDAC Notes Subsidiary Issuer) Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) Non-Guarantor Non-Issuer Subsidiaries Non-Guarantor Subsidiaries of Baxalta Notes Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by/(used in) operating activities $ (102.9 ) $ (62.9 ) $ 0.6 $ 2,902.3 $ 2,839.4 $ — $ 2,737.1 CASH FLOWS FROM INVESTING ACTIVITIES: Transactions with subsidiaries (1,339.3 ) (262.9 ) (659.3 ) (4,209.1 ) (4,472.0 ) 6,470.6 — Purchases of PP&E — — — (565.5 ) (565.5 ) — (565.5 ) Proceeds/(payments) from sale of investments — — (9.8 ) 57.9 57.9 — 48.1 Other, net — — — 34.8 34.8 — 34.8 Net cash provided by/(used in) investing activities (1,339.3 ) (262.9 ) (669.1 ) (4,681.9 ) (4,944.8 ) 6,470.6 (482.6 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving line of credit, long term and short term borrowings 2,110.0 1,150.0 — 1.6 1,151.6 — 3,261.6 Repayment of revolving line of credit, long term and short term borrowings (2,560.0 ) (3,100.0 ) — (4.5 ) (3,104.5 ) — (5,664.5 ) Proceeds from/(to) intercompany borrowings 1,919.6 2,275.8 623.9 1,651.3 3,927.1 (6,470.6 ) — Payment of dividend (27.6 ) — — (207.1 ) (207.1 ) — (234.7 ) Proceeds from issuance of stock for share-based compensation arrangements 0.2 — 4.6 87.4 87.4 — 92.2 Other, net — — (0.8 ) (25.4 ) (25.4 ) — (26.2 ) Net cash provided by/(used in) financing activities 1,442.2 325.8 627.7 1,503.3 1,829.1 (6,470.6 ) (2,571.6 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — 6.2 6.2 — 6.2 Net decrease in cash and cash equivalents and restricted cash — — (40.8 ) (270.1 ) (270.1 ) — (310.9 ) Cash, cash equivalents, and restricted cash — — 41.7 512.8 512.8 — 554.5 Cash, cash equivalents, and restricted cash $ — $ — $ 0.9 $ 242.7 $ 242.7 $ — $ 243.6 |
Description of Operations (Nar
Description of Operations (Narrative) (Details) $ / shares in Units, $ in Billions | 9 Months Ended | ||
Sep. 30, 2018 | May 08, 2018$ / shares | Apr. 16, 2018USD ($) | |
Takeda | |||
Business Acquisition [Line Items] | |||
Potential offer share price (in usd per share) | $ / shares | $ 30.33 | ||
New Takeda Shares | Takeda | |||
Business Acquisition [Line Items] | |||
Takeda shares per Shire shares | 0.839 | ||
Takeda ADS to Takeda share ratio | 0.5 | ||
Takeda ADS | Takeda | |||
Business Acquisition [Line Items] | |||
Takeda shares per Shire shares | 1.678 | ||
Disposal Group | Oncology | |||
Business Acquisition [Line Items] | |||
Agreement consideration | $ | $ 2.4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | Dec. 31, 2017USD ($) |
ASU 2014-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment | $ 52 |
ASU 2014-09 | Retained earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment | 52 |
Cumulative-effect adjustment, tax | 15.6 |
ASU 2016-01 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment | 67.9 |
ASU 2016-01 | Retained earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment | $ 67.9 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Effects of Adoption of Topic 606 - Unaudited Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Other current assets | $ 900.1 | $ 795.3 |
Other current liabilities | 237.8 | 908.8 |
Other non-current liabilities | 2,294.9 | 2,197.9 |
Retained earnings | 11,452.4 | $ 9,920.6 |
ASU 2014-09 | Before Adoption of Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Other current assets | 844.5 | |
Other current liabilities | 238.8 | |
Other non-current liabilities | 2,296.9 | |
Retained earnings | $ 11,414.5 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Effects of Adoption of Topic 606 - Unaudited Consolidated Statements of Operations) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 3,871.7 | $ 3,697.6 | $ 11,556.9 | $ 11,015.7 |
Net income | $ 537.2 | $ 550.8 | $ 1,703.3 | $ 1,166.1 |
Net income per share applicable to common shareholders - basic (in usd per share) | $ 0.59 | $ 0.61 | $ 1.87 | $ 1.29 |
Net income per share applicable to common shareholders - diluted (in usd per share) | $ 0.58 | $ 0.60 | $ 1.86 | $ 1.28 |
Before Adoption of Topic 606 | ASU 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net income | $ 535.5 | $ 1,717.4 | ||
Net income per share applicable to common shareholders - basic (in usd per share) | $ 0.59 | $ 1.88 | ||
Net income per share applicable to common shareholders - diluted (in usd per share) | $ 0.58 | $ 1.87 | ||
Product sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 3,752.8 | $ 3,533.8 | $ 11,198.5 | $ 10,537.9 |
Product sales | Before Adoption of Topic 606 | ASU 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 3,741.5 | 11,162.5 | ||
Royalties and other revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 118.9 | $ 163.8 | 358.4 | $ 477.8 |
Royalties and other revenues | Before Adoption of Topic 606 | ASU 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 128 | $ 412.7 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Effects of Adoption of Topic 606 - Unaudited Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net income | $ 537.2 | $ 550.8 | $ 1,703.3 | $ 1,166.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Decrease in prepayments and other assets | 44.6 | 70.4 | ||
Decrease in accounts payable and other liabilities | (244.8) | $ (557.8) | ||
Before Adoption of Topic 606 | ASU 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net income | $ 535.5 | 1,717.4 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Decrease in prepayments and other assets | 100.2 | |||
Decrease in accounts payable and other liabilities | $ (241.8) |
Revenue Recognition (Changes in
Revenue Recognition (Changes in Contract Assets and Liabilities) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Unbilled receivables | |
As of January 1, 2018 | $ 42.7 |
Increase, net | 12.9 |
As of September 30, 2018 | 55.6 |
Deferred revenue | |
As of January 1, 2018 | 0 |
Increase, net | 7.4 |
As of September 30, 2018 | $ 7.4 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) SFr in Millions, $ in Millions | 1 Months Ended | ||||
Sep. 30, 2018CHF (SFr) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 19,095 | $ 19,831.7 | $ 19,718.4 | $ 17,888.2 | |
Sanaplasma AG | |||||
Business Acquisition [Line Items] | |||||
Voting equity interests | 100.00% | ||||
Cash consideration | SFr 105 | $ 107.8 |
Dispositions and Assets Held _3
Dispositions and Assets Held for Sale (Narrative) (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Apr. 16, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain recognized on sale | $ 267.2 | $ 0 | ||
Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Property and equipment, net | 115.4 | |||
Oncology | Disposal Group | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Agreement consideration | $ 2,400 | |||
Gain recognized on sale | $ 267.2 | |||
Integration and acquisition costs | Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charges | $ 145.4 |
Dispositions and Assets Held _4
Dispositions and Assets Held for Sale (Assets and Liabilities of Oncology Franchise) (Details) - Oncology - Disposal Group $ in Millions | Aug. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Intangible assets | $ 1,628.3 |
Goodwill | 565.1 |
Other | 25.6 |
Current assets | 2,219 |
Current liabilities | $ 116.4 |
Collaborative and Other Licen_2
Collaborative and Other Licensing Arrangements (Narrative) (Details) - Collaborative and in-licensing arrangements $ in Millions | Jan. 25, 2018USD ($) |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Upfront licensing and milestone payments | $ 10 |
Potential future payments related to option fees and development, regulatory and commercialization milestones | $ 282.5 |
Integration and Acquisition C_3
Integration and Acquisition Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Integration and acquisition costs (credits) | $ 93 | $ 237 | $ 512 | $ 696.7 |
Baxalta | ||||
Business Acquisition [Line Items] | ||||
Integration and acquisition costs (credits) | 93 | 237 | 512 | 696.7 |
Asset impairments | Baxalta | ||||
Business Acquisition [Line Items] | ||||
Integration and acquisition costs (credits) | 8 | 151.4 | ||
Integration costs | 114.1 | 147.8 | ||
Third-party professional fees | Baxalta | ||||
Business Acquisition [Line Items] | ||||
Integration and acquisition costs (credits) | 12.4 | 55.5 | ||
Integration costs | 28.4 | 114 | ||
Change in fair value of contingent consideration payable | ||||
Business Acquisition [Line Items] | ||||
Integration costs | 54.5 | 3.4 | 100.4 | 144.3 |
Facility consolidations | Baxalta | ||||
Business Acquisition [Line Items] | ||||
Integration and acquisition costs (credits) | 4.4 | 19.2 | ||
Integration costs | 29.7 | 71.4 | ||
Employee severance and acceleration of stock compensation | Baxalta | ||||
Business Acquisition [Line Items] | ||||
Integration and acquisition costs (credits) | 5.7 | 20.7 | ||
Integration costs | $ 60.2 | $ 177.4 | ||
Takeda | Third-party professional fees | ||||
Business Acquisition [Line Items] | ||||
Integration and acquisition costs (credits) | 8 | 72 | ||
Takeda | Severance and employee benefits | ||||
Business Acquisition [Line Items] | ||||
Integration and acquisition costs (credits) | $ 36.4 | $ 40.4 |
Integration and Acquisition C_4
Integration and Acquisition Costs (Summary of Employee Termination Related Reserve and Other) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
As of January 1, | $ 129.5 |
Amount charged to integration costs | 11.5 |
Paid/utilized | (60.9) |
As of September 30, | 80.1 |
Severance and employee benefits | |
Restructuring Reserve [Roll Forward] | |
As of January 1, | 72.9 |
Amount charged to integration costs | 9.2 |
Paid/utilized | (41) |
As of September 30, | 41.1 |
Lease terminations | |
Restructuring Reserve [Roll Forward] | |
As of January 1, | 56.6 |
Amount charged to integration costs | 2.3 |
Paid/utilized | (19.9) |
As of September 30, | $ 39 |
Reorganization Costs (Narrative
Reorganization Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization costs | $ 254.8 | $ 5.4 | $ 268.9 | $ 24.5 |
Closure of manufacturing facilities and asset impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization costs | 249.2 | 0 | 256.7 | 10.8 |
Employee termination and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization costs | $ 5.6 | $ 5.4 | $ 12.2 | $ 13.7 |
Results of Discontinued Opera_2
Results of Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |||||
(Loss)/gain from discontinued operations, net of taxes | $ 0 | $ (0.4) | $ 0 | $ 18.6 | |
Tax expense (benefit) of discontinued operations | $ 10.9 | ||||
Settlement amount | $ 350 | ||||
Settlement agreement released from escrow | $ 37.5 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||||
Accounts receivable, net | $ 3,207.4 | $ 3,009.8 | ||
Reserve for discounts and doubtful accounts | 331.4 | 271.5 | $ 243.7 | $ 169.6 |
Accounts receivable related to royalty income | $ 44.1 | $ 106.6 |
Accounts Receivable (Summary of
Accounts Receivable (Summary of Reserve for Discounts and Allowances) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Provision for discounts and doubtful accounts | ||
As of January 1, | $ 271.5 | $ 169.6 |
Provision charged to operations | 1,884.2 | 1,074.1 |
Payments/credits | (1,824.3) | (1,000) |
As of September 30, | $ 331.4 | $ 243.7 |
Inventories (Summary of Invento
Inventories (Summary of Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Inventory | ||
Finished goods | $ 959.7 | $ 926.1 |
Work-in-progress | 1,671.6 | 1,574 |
Raw materials | 827.4 | 791.4 |
Total inventories | $ 3,458.7 | $ 3,291.5 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Summary of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment, Net | ||
Land | $ 296.2 | $ 332.3 |
Buildings and leasehold improvements | 2,975.1 | 1,940.7 |
Machinery, equipment and other | 3,942.5 | 3,106.3 |
Assets under construction | 759.4 | 2,568.2 |
Total property, plant and equipment at cost | 7,973.2 | 7,947.5 |
Less: Accumulated depreciation | (1,520.2) | (1,312.1) |
Property, plant and equipment, net | $ 6,453 | $ 6,635.4 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation | $ 156.8 | $ 119.9 | $ 432.8 | $ 363.5 | |
Property, Plant and Equipment [Line Items] | |||||
Assets reclassified | $ 1,840.5 | ||||
Held-for-sale | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, net | $ 115.4 | 115.4 | |||
Integration and acquisition costs | Held-for-sale | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment charges | $ 145.4 |
Intangible Assets (Summary of I
Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross acquired intangible assets | $ 35,610.9 | $ 37,923.3 | ||
Accumulated amortization | (5,985.5) | (4,877.2) | ||
Intangible assets, net | 29,625.4 | 33,046.1 | $ 33,350.3 | $ 34,697.5 |
Currently marketed products | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross acquired intangible assets | 33,767.4 | 31,973.5 | ||
Accumulated amortization | (5,561.2) | (4,549.2) | ||
Intangible assets, net | 28,206.2 | 27,424.3 | ||
IPR&D | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross acquired intangible assets | 1,012.7 | 5,113.9 | ||
Accumulated amortization | 0 | 0 | ||
Intangible assets, net | 1,012.7 | 5,113.9 | ||
Other intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross acquired intangible assets | 830.8 | 835.9 | ||
Accumulated amortization | (424.3) | (328) | ||
Intangible assets, net | $ 406.5 | $ 507.9 |
Intangible Assets (Roll Forward
Intangible Assets (Roll Forward) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Intangible Assets Roll Forward | ||
Beginning balance | $ 33,046.1 | $ 34,697.5 |
Sale of Oncology franchise | 1,598.5 | 0 |
Measurement period adjustments | 0 | (1,397) |
Amortization charged | (1,375.3) | (1,280.5) |
Foreign currency translation | (314.2) | 1,350.3 |
Contribution to JV | (163.7) | 0 |
Impairment | (10) | (20) |
Other | 35.9 | 0 |
Acquisition | 5.1 | 0 |
Ending balance | $ 29,625.4 | $ 33,350.3 |
Intangible Assets (Future Amort
Intangible Assets (Future Amortization Expense) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2018 (remaining three months) | $ 444.4 |
2,019 | 1,808 |
2,020 | 1,730.7 |
2,021 | 1,710.9 |
2,022 | 1,679.3 |
2,023 | $ 1,627.3 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Contribution to JV | $ (163.7) | $ 0 |
Goodwill (Rollforward of Goodwi
Goodwill (Rollforward of Goodwill) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Roll Forward] | ||
As of January, 1 | $ 19,831.7 | $ 17,888.2 |
Acquisitions | 96.3 | 1,076.2 |
Sale of Oncology franchise | (565.1) | 0 |
Foreign currency translation | (267.9) | 754 |
As of September 30, | $ 19,095 | $ 19,718.4 |
Fair Value Measurement (Assets
Fair Value Measurement (Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Financial liabilities: | ||
Joint venture net written option | $ 22.5 | $ 11.5 |
Recurring Basis | Level 1 | ||
Financial assets: | ||
Marketable equity securities | 161 | 89.7 |
Marketable debt securities | 3.6 | 3.8 |
Derivative instruments | 0 | 0 |
Total assets | 164.6 | 93.5 |
Financial liabilities: | ||
Joint venture net written option | 0 | 0 |
Derivative instruments | 0 | 0 |
Contingent consideration payable | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring Basis | Level 2 | ||
Financial assets: | ||
Marketable equity securities | 0 | 0 |
Marketable debt securities | 13.4 | 14.1 |
Derivative instruments | 13.9 | 17.9 |
Total assets | 27.3 | 32 |
Financial liabilities: | ||
Joint venture net written option | 0 | 0 |
Derivative instruments | 30.8 | 14.2 |
Contingent consideration payable | 0 | 0 |
Total liabilities | 30.8 | 14.2 |
Recurring Basis | Level 3 | ||
Financial assets: | ||
Marketable equity securities | 0 | 0 |
Marketable debt securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total assets | 0 | 0 |
Financial liabilities: | ||
Joint venture net written option | 48 | 40 |
Derivative instruments | 0 | 0 |
Contingent consideration payable | 616.2 | 1,168.2 |
Total liabilities | 664.2 | 1,208.2 |
Fair value | Recurring Basis | ||
Financial assets: | ||
Marketable equity securities | 161 | 89.7 |
Marketable debt securities | 17 | 17.9 |
Derivative instruments | 13.9 | 17.9 |
Total assets | 191.9 | 125.5 |
Financial liabilities: | ||
Joint venture net written option | 48 | 40 |
Derivative instruments | 30.8 | 14.2 |
Contingent consideration payable | 616.2 | 1,168.2 |
Total liabilities | $ 695 | $ 1,222.4 |
Fair Value Measurement (Asset_2
Fair Value Measurement (Assets and Liabilities Measure at Fair Value on Recurring Basis using Level 3 Inputs) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at January 1, | $ 1,168.2 | $ 1,058 |
Acquisitions | 0 | (4) |
Payments | (647.1) | 0 |
Change in fair value included in earnings | 100.4 | 144.3 |
Other | (5.3) | (11.4) |
Balance as of September 30, | $ 616.2 | $ 1,186.9 |
Fair Value Measurement (Qualita
Fair Value Measurement (Qualitative Information About Liabilities Measured at Fair Value on Recurring Basis Using Level 3 Inputs) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Joint venture net written option | $ 22.5 | $ 11.5 |
Recurring Basis | Contingent Consideration Payable | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Liabilities | $ 616.2 | |
Minimum | Recurring Basis | Contingent Consideration Payable | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Periods in which milestones are expected to be achieved | 2,018 | |
Forecast quarterly royalties payable on net sales of relevant products | $ 0.1 | |
Maximum | Recurring Basis | Contingent Consideration Payable | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Periods in which milestones are expected to be achieved | 2,040 | |
Forecast quarterly royalties payable on net sales of relevant products | $ 16 | |
Fair value | Recurring Basis | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Liabilities | 695 | 1,222.4 |
Joint venture net written option | $ 48 | $ 40 |
Cumulative probability of milestones being achieved | Minimum | Recurring Basis | Contingent Consideration Payable | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Contingent consideration, measurement input | 0.105 | |
Cumulative probability of milestones being achieved | Maximum | Recurring Basis | Contingent Consideration Payable | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Contingent consideration, measurement input | 0.90 | |
Discount for lack of marketability, liabilities | Minimum | Recurring Basis | Contingent Consideration Payable | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Contingent consideration, measurement input | 0.032 | |
Discount for lack of marketability, liabilities | Maximum | Recurring Basis | Contingent Consideration Payable | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Contingent consideration, measurement input | 0.092 | |
Cash flow scenario probability weighting | Recurring Basis | Derivative Financial Instruments, Liabilities | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative liability, measurement input | 1 | |
Assumed market participant discount rate | Recurring Basis | Derivative Financial Instruments, Liabilities | Income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative liability, measurement input | 0.14 |
Fair Value Measurement (Financi
Fair Value Measurement (Financial Assets and Liabilities Not Measured on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Capital lease obligation | $ 366.8 | |
Carrying amount | Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Capital lease obligation | 366.8 | $ 349.2 |
Fair value | Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Capital lease obligation | 366.8 | 349.2 |
Baxalta notes | Carrying amount | Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 1,939.9 | 5,057.7 |
Baxalta notes | Fair value | Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 1,951.3 | 5,229.9 |
SAIIDAC notes | Carrying amount | Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 12,058.9 | 12,050.2 |
SAIIDAC notes | Fair value | Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | $ 11,604.7 | $ 11,913.7 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||||
Liability | $ 616.2 | $ 1,168.2 | $ 1,186.9 | $ 1,058 |
Contingent consideration payable | 82.3 | |||
Contingent consideration payable | 533.9 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Joint venture net written option | 22.5 | 11.5 | ||
Level 3 | Recurring Basis | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Joint venture net written option | $ 48 | $ 40 |
Financial Instruments (Summary
Financial Instruments (Summary of Derivative Instruments) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Terminated amount | $ 569 | |
Undesignated derivative instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 2,192.4 | $ 1,672.3 |
Maximum duration | 11 months | 3 months |
Fair value - net asset/(liability) | $ (1.3) | $ 11.4 |
Designated derivative Instruments | Interest Rate Swap | Fair Value Hedging | ||
Derivative [Line Items] | ||
Notional amount | 431 | 1,000 |
Fair value - net asset/(liability) | (15.6) | $ (7.7) |
Other Expense | Interest Rate Swap | ||
Derivative [Line Items] | ||
Loss on extinguishment | $ 9.3 |
Financial Instruments (Derivati
Financial Instruments (Derivative Income Statement Location, Gains & Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Foreign exchange contracts | Designated derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses) recognized in OCI | $ 0 | $ (0.2) | $ 0 | $ (0.9) |
Foreign exchange contracts | Other income/(expense), net | Undesignated derivative instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses) recognized in income | 4.7 | 36.7 | (28.6) | 57.4 |
Foreign exchange contracts | Amounts reclassified from AOCI | Accumulated Net Gain (Loss) from Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain reclassified from AOCI into income | 0 | 0.3 | 0 | 8.6 |
Interest rate contracts, net | Interest expense | Designated derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses) recognized in income | $ (1) | $ (1.1) | $ (4.9) | $ (2.5) |
Financial Instruments (Foreign
Financial Instruments (Foreign Exchange Risk and Its Classification on Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Asset position | ||
Asset position | $ 13.9 | $ 17.9 |
Potential effect of rights to offset, asset position | (8.3) | (2.7) |
Net derivative, asset position | 5.6 | 15.2 |
Liability position | ||
Liability position | 30.8 | 14.2 |
Potential effect of rights to offset, liability position | (8.3) | (2.7) |
Net derivative, liability position | 22.5 | 11.5 |
Undesignated derivative instruments | ||
Asset position | ||
Asset position | 13.9 | 17.9 |
Liability position | ||
Liability position | 15.2 | 6.5 |
Designated derivative Instruments | ||
Asset position | ||
Asset position | 0 | 0 |
Liability position | ||
Liability position | 15.6 | 7.7 |
Foreign exchange contracts | Other current assets | Undesignated derivative instruments | ||
Asset position | ||
Asset position | 13.9 | 17.9 |
Foreign exchange contracts | Other current liabilities | Undesignated derivative instruments | ||
Liability position | ||
Liability position | 15.2 | 6.5 |
Interest rate contracts | Long term borrowings | Designated derivative Instruments | ||
Asset position | ||
Asset position | 0 | 0 |
Liability position | ||
Liability position | $ 15.6 | $ 7.7 |
Borrowings and Capital Leases_2
Borrowings and Capital Leases (Short-term Borrowings) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Capital leases | $ 9.5 | $ 7.5 |
Other borrowings | 28.9 | 26.1 |
Short-term Debt, Total | 4,248.7 | 2,788.7 |
Baxalta notes | ||
Short-term Debt [Line Items] | ||
Senior notes | 0 | 748.8 |
SAIIDAC Notes | ||
Short-term Debt [Line Items] | ||
Senior notes | 3,295.3 | 0 |
Revolving Credit Facility | ||
Short-term Debt [Line Items] | ||
Borrowings under the Facilities Agreement | 915 | 810 |
November 2015 Facilities Agreement | ||
Short-term Debt [Line Items] | ||
Borrowings under the Facilities Agreement | $ 0 | $ 1,196.3 |
Borrowings and Capital Leases_3
Borrowings and Capital Leases (Long-term Borrowings) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital leases | $ 357.3 | $ 341.7 |
Other borrowings | 37.2 | 51.6 |
Total long-term obligations | 11,098 | 16,752.4 |
Total borrowings and capital leases | 15,346.7 | 19,541.1 |
Baxalta notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,939.9 | 4,308.9 |
SAIIDAC notes | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 8,763.6 | $ 12,050.2 |
Borrowings and Capital Leases_4
Borrowings and Capital Leases (Senior Notes Issued by SAIIDAC) (Details) - SAIIDAC notes - Senior Notes - USD ($) | Sep. 30, 2018 | Sep. 23, 2016 |
Debt Instrument [Line Items] | ||
Aggregate amount | $ 12,100,000,000 | |
Carrying amount | 12,058,900,000 | |
Fixed-rate notes due 2019 | ||
Debt Instrument [Line Items] | ||
Aggregate amount | $ 3,300,000,000 | |
Coupon rate | 1.90% | 1.90% |
Carrying amount | $ 3,295,300,000 | |
Fixed-rate notes due 2021 | ||
Debt Instrument [Line Items] | ||
Aggregate amount | $ 3,300,000,000 | |
Coupon rate | 2.40% | 2.40% |
Carrying amount | $ 3,289,000,000 | |
Fixed-rate notes due 2023 | ||
Debt Instrument [Line Items] | ||
Aggregate amount | $ 2,500,000,000 | |
Coupon rate | 2.875% | 2.875% |
Carrying amount | $ 2,490,800,000 | |
Fixed-rate notes due 2026 | ||
Debt Instrument [Line Items] | ||
Aggregate amount | $ 3,000,000,000 | |
Coupon rate | 3.20% | 3.20% |
Carrying amount | $ 2,983,800,000 |
Borrowings and Capital Leases_5
Borrowings and Capital Leases (Senior Notes Related to Baxalta Acquisition) (Details) - Baxalta notes - Senior Notes | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | |
Aggregate amount | $ 1,924,800,000 |
Carrying amount | 1,939,900,000 |
Fixed-rate notes due 2020 | |
Debt Instrument [Line Items] | |
Aggregate amount | $ 404,500,000 |
Coupon rate | 2.875% |
Carrying amount | $ 403,000,000 |
Fixed-rate notes due 2022 | |
Debt Instrument [Line Items] | |
Aggregate amount | $ 219,400,000 |
Coupon rate | 3.60% |
Carrying amount | $ 221,900,000 |
Fixed-rate notes due 2025 | |
Debt Instrument [Line Items] | |
Aggregate amount | $ 800,500,000 |
Coupon rate | 4.00% |
Carrying amount | $ 799,700,000 |
Fixed-rate notes due 2045 | |
Debt Instrument [Line Items] | |
Aggregate amount | $ 500,400,000 |
Coupon rate | 5.25% |
Carrying amount | $ 515,300,000 |
Borrowings and Capital Leases_6
Borrowings and Capital Leases (Narrative) (Details) | Sep. 11, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 03, 2016 | Nov. 02, 2015USD ($)facility | Dec. 12, 2014USD ($) |
Line of Credit Facility [Line Items] | ||||||
Capital lease obligation | $ 366,800,000 | |||||
Floating-rate notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | 375,000,000 | |||||
Fixed-rate notes due June 2018 | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | 375,000,000 | |||||
November 2015 Facilities Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Facility amount outstanding | 0 | $ 5,600,000,000 | ||||
Number of amortizing credit facilities | facility | 3 | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings under the Facilities Agreement | 915,000,000 | $ 810,000,000 | ||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | $ 2,100,000,000 | |||||
Swingline Facility | $ 250,000,000 | |||||
Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Extinguishment of debt | $ 2,300,000,000 | |||||
Repayments of senior notes | $ 2,400,000,000 | |||||
Loss on extinguishment | 40,600,000 | |||||
Senior Notes | Senior Notes, 2.875% due 2020 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Interest Rate (Stated Rate) | 2.875% | |||||
Senior Notes | Senior Notes, 3.6% due 2022 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Interest Rate (Stated Rate) | 3.60% | |||||
Senior Notes | Senior Notes, 4.0% due 2025 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Interest Rate (Stated Rate) | 4.00% | |||||
Senior Notes | Senior Notes, 5.25% due 2045 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Interest Rate (Stated Rate) | 5.25% | |||||
Shire Acquisitions Investment Ireland Designated Activity Company | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | 12,100,000,000 | |||||
Deferred financing costs | (41,100,000) | |||||
Baxalta notes | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | 1,924,800,000 | |||||
Baxalta notes | Senior Notes | Fixed-rate notes due 2020 | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | $ 404,500,000 | |||||
Debt Interest Rate (Stated Rate) | 2.875% | |||||
Baxalta notes | Senior Notes | Fixed-rate notes due 2022 | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | $ 219,400,000 | |||||
Debt Interest Rate (Stated Rate) | 3.60% | |||||
Baxalta notes | Senior Notes | Fixed-rate notes due 2025 | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | $ 800,500,000 | |||||
Debt Interest Rate (Stated Rate) | 4.00% | |||||
Baxalta notes | Senior Notes | Fixed-rate notes due 2045 | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | $ 500,400,000 | |||||
Debt Interest Rate (Stated Rate) | 5.25% |
Retirement and Other Benefit _3
Retirement and Other Benefit Programs (Summary of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pensions | International | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 9.5 | $ 9.4 | $ 28.5 | $ 28.2 |
Interest cost | 1.3 | 1.2 | 3.9 | 3.6 |
Expected return on plan assets | (2) | (1.8) | (6) | (5.4) |
Amortization of net prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial (gain)/loss | (0.3) | 0.4 | (0.9) | 1.3 |
Net periodic benefit cost | 8.5 | 9.2 | 25.5 | 27.7 |
Pensions | United States | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 3.7 | 0 | 11.1 |
Interest cost | 3.9 | 3.9 | 11.7 | 11.7 |
Expected return on plan assets | (4.3) | (4) | (12.9) | (12) |
Amortization of net prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial (gain)/loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | (0.4) | 3.6 | (1.2) | 10.8 |
OPEB | United States | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0.4 | 0 | 1.2 |
Interest cost | 0.1 | 0.3 | 0.3 | 0.9 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net prior service cost | (0.2) | 0 | (0.6) | 0 |
Amortization of actuarial (gain)/loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ (0.1) | $ 0.7 | $ (0.3) | $ 2.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) (Summary of Changes in Accumulated Other Comprehensive Income/(Loss)) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 36,176.4 | |
Other comprehensive loss before reclassifications | (679.2) | $ 2,476 |
Amounts reclassified from AOCI | (69.4) | (9.3) |
Net current period other comprehensive loss | (748.6) | 2,466.7 |
Ending balance | 37,290.2 | |
Accumulated other comprehensive income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 1,375 | (1,497.6) |
Net current period other comprehensive loss | (748.6) | |
Ending balance | 626.4 | 969.1 |
Foreign currency translation adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 1,279.6 | (1,505.4) |
Other comprehensive loss before reclassifications | (679.2) | 2,441.1 |
Amounts reclassified from AOCI | 0 | 0 |
Net current period other comprehensive loss | (679.2) | 2,441.1 |
Ending balance | 600.4 | 935.7 |
Pension and other employee benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 27.5 | (5.2) |
Other comprehensive loss before reclassifications | 0 | 9.7 |
Amounts reclassified from AOCI | (1.5) | 1.3 |
Net current period other comprehensive loss | (1.5) | 11 |
Ending balance | 26 | 5.8 |
Unrealized holding gain/(loss) on available-for-sale debt securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 67.9 | 6.6 |
Other comprehensive loss before reclassifications | 0 | 24.7 |
Amounts reclassified from AOCI | (67.9) | (4.4) |
Net current period other comprehensive loss | (67.9) | 20.3 |
Ending balance | $ 0 | 26.9 |
Hedging activities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 6.4 | |
Other comprehensive loss before reclassifications | 0.5 | |
Amounts reclassified from AOCI | (6.2) | |
Net current period other comprehensive loss | (5.7) | |
Ending balance | $ 0.7 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income/(Loss) (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications for the period | $ 69.4 | $ 9.3 | |
Unrealized holding gain/(loss) on available-for-sale debt securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications for the period | $ 67.9 | $ 4.4 | |
ASU 2016-01 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative-effect adjustment | $ 67.9 | ||
ASU 2016-01 | Retained earnings | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative-effect adjustment | $ 67.9 |
Taxation (Narrative) (Details)
Taxation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes on continuing operations | 28.00% | 2.00% | 18.00% | 4.00% |
Increase in tax expense | $ 60 | $ 37.9 | ||
Adjustment to provisional estimate | $ 15 | 7.1 | ||
Repatriation toll charge | $ 45 | $ 31 | ||
Effect of remeasurement on effective tax rate | 8.00% | 2.00% |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of EPS) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations, net of taxes | $ 537.2 | $ 551.2 | $ 1,703.3 | $ 1,147.5 |
(Loss)/Gain from discontinued operations, net of taxes | 0 | (0.4) | 0 | 18.6 |
Net income | $ 537.2 | $ 550.8 | $ 1,703.3 | $ 1,166.1 |
Weighted average number of shares: | ||||
Basic (in shares) | 914 | 907.2 | 912 | 905.9 |
Effect of dilutive shares: | ||||
Share-based awards to employees (in shares) | 7.1 | 4.4 | 4.9 | 6.2 |
Diluted (in shares) | 921.1 | 911.6 | 916.9 | 912.1 |
Earnings Per Share (Summary of
Earnings Per Share (Summary of Antidilutive Securities) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share-based awards to employees (in shares) | 10 | 16.2 | 13.4 | 14.8 |
Share-based Compensation Plan_2
Share-based Compensation Plans (Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 48.8 | $ 53.3 | $ 135.7 | $ 159.7 |
Less tax | (7.8) | (13.3) | (22.2) | (42.9) |
Share-based compensation expense, net | 41 | 40 | 113.5 | 116.8 |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 6.3 | 17.4 | 21.2 | 30.1 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 10 | 3.2 | 35.5 | 22.9 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 29.5 | 30.9 | 75.2 | 94.1 |
Integration and acquisition costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 3 | $ 1.8 | $ 3.8 | $ 12.6 |
Share-based Compensation Plan_3
Share-based Compensation Plans (Narrative) (Details) shares in Millions | 9 Months Ended |
Sep. 30, 2018shares | |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 10.8 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 3 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 0.9 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Lease and rental expense | $ 49.4 | $ 41.7 | $ 136.9 | $ 126.7 | |
Irrevocable standby letters of credit and guarantees | 249.5 | 249.5 | $ 224.8 | ||
Clinical Testing | |||||
Other Commitments [Line Items] | |||||
Commitment amount | 1,451.3 | 1,451.3 | 1,409.9 | ||
Contract Manufacturing | |||||
Other Commitments [Line Items] | |||||
Commitment amount | 910.8 | 910.8 | 467.2 | ||
Commitments expected to be paid in next year | 169.5 | 169.5 | |||
Other Purchasing Commitment | |||||
Other Commitments [Line Items] | |||||
Commitment amount | 1,363 | 1,363 | 1,692.5 | ||
Commitments expected to be paid in next year | 839.4 | 839.4 | |||
Investment Commitment | |||||
Other Commitments [Line Items] | |||||
Commitment amount | 48 | 48 | 48.9 | ||
Capital Commitment | |||||
Other Commitments [Line Items] | |||||
Commitment amount | $ 348.8 | $ 348.8 | $ 328.2 |
Legal and Other Proceedings (Na
Legal and Other Proceedings (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Legal Proceedings [Abstract] | ||
Provisions for litigation loss, insurance claims and other disputes | $ 82 | $ 76.2 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) - segment | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 1 | 1 |
Number of reportable segments | 1 | 1 |
Segment Reporting (Revenue by P
Segment Reporting (Revenue by Product) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 3,871.7 | $ 3,697.6 | $ 11,556.9 | $ 11,015.7 |
Product sales | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 3,752.8 | 3,533.8 | 11,198.5 | 10,537.9 |
Immunology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 1,197.2 | 1,070.1 | 3,472.6 | 3,129 |
IMMUNOGLOBULIN THERAPIES | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 655.9 | 605.1 | 1,825.9 | 1,613.9 |
HEREDITARY ANGIOEDEMA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 329 | 268.4 | 1,063 | 968.4 |
BIO THERAPEUTICS | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 212.3 | 196.6 | 583.7 | 546.7 |
Hematology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 905 | 916 | 2,808.6 | 2,751.5 |
HEMOPHILIA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 735.9 | 725.3 | 2,225.4 | 2,119.6 |
INHIBITOR THERAPIES | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 169.1 | 190.7 | 583.2 | 631.9 |
Neuroscience | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 731.7 | 691.1 | 2,170.1 | 1,979.8 |
VYVANSE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 595 | 538.4 | 1,779.8 | 1,620.3 |
ADDERALL XR | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 76.3 | 106 | 232.1 | 242.3 |
MYDAYIS | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 19.3 | 10.2 | 40.4 | 25.9 |
Other Neuroscience | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 41.1 | 36.5 | 117.8 | 91.3 |
Genetic Diseases | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 381.4 | 359.7 | 1,105.6 | 1,060.8 |
ELAPRASE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 170.6 | 152.9 | 465.5 | 454.5 |
REPLAGAL | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 123 | 117.2 | 372.8 | 349 |
VPRIV | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 87.8 | 89.6 | 267.3 | 257.3 |
Established Brands | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 216.5 | 190.5 | 608.5 | 816.4 |
LIALDA/MEZAVANT | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 119.1 | 86.7 | 287 | 469.6 |
PENTASA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 65.7 | 72.1 | 215.6 | 224.5 |
Other Established Brands | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 31.7 | 31.7 | 105.9 | 122.3 |
Internal Medicine | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 177.1 | 160.5 | 588.9 | 437.7 |
GATTEX/REVESTIVE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 97.1 | 84.9 | 326.8 | 229.2 |
NATPARA/NATPAR | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 51 | 39.1 | 160.8 | 103.3 |
Other Internal Medicine | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 29 | 36.5 | 101.3 | 105.2 |
Ophthalmics | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 93.4 | 77.4 | 255.8 | 173.4 |
Oncology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 50.5 | 68.5 | 188.4 | 189.3 |
Royalties | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 45.1 | 111.4 | 175.4 | 329.7 |
Other revenues | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 73.8 | 52.4 | 183 | 148.1 |
Royalties and other revenues | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 118.9 | 163.8 | 358.4 | 477.8 |
United States | Product sales | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 2,467 | 2,290.6 | 7,272.4 | 6,950.6 |
United States | Immunology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 913.9 | 808.7 | 2,614.3 | 2,410.7 |
United States | IMMUNOGLOBULIN THERAPIES | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 530.7 | 486.6 | 1,409.6 | 1,299.9 |
United States | HEREDITARY ANGIOEDEMA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 291.3 | 235.8 | 254.8 | 878.9 |
United States | BIO THERAPEUTICS | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 91.9 | 86.3 | 949.9 | 231.9 |
United States | Hematology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 431.3 | 428.1 | 1,313.1 | 1,299.5 |
United States | HEMOPHILIA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 386.6 | 357.5 | 1,152.6 | 1,082.1 |
United States | INHIBITOR THERAPIES | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 44.7 | 70.6 | 160.5 | 217.4 |
United States | Neuroscience | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 620.2 | 593.1 | 1,838.1 | 1,710.7 |
United States | VYVANSE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 528.5 | 476.8 | 1,572.3 | 1,445.4 |
United States | ADDERALL XR | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 71.5 | 99.4 | 219.4 | 225.9 |
United States | MYDAYIS | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 19.3 | 10.2 | 40.4 | 25.9 |
United States | Other Neuroscience | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 0.9 | 6.7 | 6 | 13.5 |
United States | Genetic Diseases | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 80.7 | 78.9 | 240.5 | 229.7 |
United States | ELAPRASE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 41.7 | 41.4 | 126.6 | 119.4 |
United States | REPLAGAL | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
United States | VPRIV | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 39 | 37.5 | 113.9 | 110.3 |
United States | Established Brands | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 165.3 | 144.9 | 454.2 | 693.5 |
United States | LIALDA/MEZAVANT | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 88.9 | 61.4 | 194.8 | 402 |
United States | PENTASA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 65.7 | 72.1 | 215.6 | 224.5 |
United States | Other Established Brands | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 10.7 | 11.4 | 43.8 | 67 |
United States | Internal Medicine | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 130.1 | 112.3 | 434.5 | 297.8 |
United States | GATTEX/REVESTIVE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 82.2 | 72.6 | 280.2 | 193.3 |
United States | NATPARA/NATPAR | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 47.8 | 39.1 | 153.5 | 103.2 |
United States | Other Internal Medicine | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 0.1 | 0.6 | 0.8 | 1.3 |
United States | Ophthalmics | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 92.1 | 77.4 | 252.9 | 173.4 |
United States | Oncology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 33.4 | 47.2 | 124.8 | 135.3 |
International | Product sales | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 1,285.8 | 1,243.2 | 3,926.1 | 3,587.3 |
International | Immunology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 283.3 | 261.4 | 858.3 | 718.3 |
International | IMMUNOGLOBULIN THERAPIES | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 125.2 | 118.5 | 416.3 | 314 |
International | HEREDITARY ANGIOEDEMA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 37.7 | 32.6 | 328.9 | 89.5 |
International | BIO THERAPEUTICS | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 120.4 | 110.3 | 113.1 | 314.8 |
International | Hematology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 473.7 | 487.9 | 1,495.5 | 1,452 |
International | HEMOPHILIA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 349.3 | 367.8 | 1,072.8 | 1,037.5 |
International | INHIBITOR THERAPIES | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 124.4 | 120.1 | 422.7 | 414.5 |
International | Neuroscience | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 111.5 | 98 | 332 | 269.1 |
International | VYVANSE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 66.5 | 61.6 | 207.5 | 174.9 |
International | ADDERALL XR | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 4.8 | 6.6 | 12.7 | 16.4 |
International | MYDAYIS | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
International | Other Neuroscience | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 40.2 | 29.8 | 111.8 | 77.8 |
International | Genetic Diseases | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 300.7 | 280.8 | 865.1 | 831.1 |
International | ELAPRASE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 128.9 | 111.5 | 338.9 | 335.1 |
International | REPLAGAL | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 123 | 117.2 | 372.8 | 349 |
International | VPRIV | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 48.8 | 52.1 | 153.4 | 147 |
International | Established Brands | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 51.2 | 45.6 | 154.3 | 122.9 |
International | LIALDA/MEZAVANT | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 30.2 | 25.3 | 92.2 | 67.6 |
International | PENTASA | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
International | Other Established Brands | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 21 | 20.3 | 62.1 | 55.3 |
International | Internal Medicine | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 47 | 48.2 | 154.4 | 139.9 |
International | GATTEX/REVESTIVE | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 14.9 | 12.3 | 46.6 | 35.9 |
International | NATPARA/NATPAR | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 3.2 | 0 | 7.3 | 0.1 |
International | Other Internal Medicine | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 28.9 | 35.9 | 100.5 | 103.9 |
International | Ophthalmics | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 1.3 | 0 | 2.9 | 0 |
International | Oncology | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 17.1 | $ 21.3 | $ 63.6 | $ 54 |
Agreements and Transactions w_2
Agreements and Transactions with Baxter (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Agreements and Transactions by Party [Line Items] | ||||
Total revenues | $ 3,871.7 | $ 3,697.6 | $ 11,556.9 | $ 11,015.7 |
Selling, general and administrative | 836.8 | 859.7 | 2,549.3 | 2,647.7 |
Manufacturing and Supply Agreement with Baxter | ||||
Agreements and Transactions by Party [Line Items] | ||||
Selling, general and administrative | 0.3 | 9.8 | 10.2 | 43.5 |
Product sales | ||||
Agreements and Transactions by Party [Line Items] | ||||
Total revenues | 3,752.8 | 3,533.8 | 11,198.5 | 10,537.9 |
Product sales | Manufacturing and Supply Agreement with Baxter | ||||
Agreements and Transactions by Party [Line Items] | ||||
Total revenues | $ 57.6 | $ 35.8 | $ 142.6 | $ 106.5 |
Guarantor Financial Informati_3
Guarantor Financial Information (Senior Notes) (Details) - Senior Notes - USD ($) $ in Millions | Sep. 11, 2018 | Sep. 30, 2018 | Sep. 23, 2016 | Jun. 03, 2016 |
Debt Instrument [Line Items] | ||||
Extinguishment of debt | $ 2,300 | |||
Senior Notes, 2.0 % due 2018 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 2.00% | |||
Senior Notes, 2.875% due 2020 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 2.875% | |||
Senior Notes, 3.6% due 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 3.60% | |||
Senior Notes, 4.0% due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 4.00% | |||
Senior Notes, 5.25% due 2045 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 5.25% | |||
Shire Acquisitions Investment Ireland Designated Activity Company | Fixed-rate notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 1.90% | 1.90% | ||
Shire Acquisitions Investment Ireland Designated Activity Company | Fixed-rate notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 2.40% | 2.40% | ||
Shire Acquisitions Investment Ireland Designated Activity Company | Fixed-rate notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 2.875% | 2.875% | ||
Shire Acquisitions Investment Ireland Designated Activity Company | Fixed-rate notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt Interest Rate (Stated Rate) | 3.20% | 3.20% |
Guarantor Financial Informati_4
Guarantor Financial Information (Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 193.2 | $ 472.4 | $ 209.3 | |
Restricted cash | 39.9 | 39.4 | 34.3 | |
Accounts receivable, net | 3,207.4 | 3,009.8 | ||
Inventories | 3,458.7 | 3,291.5 | ||
Other current assets | 900.1 | 795.3 | ||
Intercompany receivables | 0 | 0 | ||
Short term intercompany loan receivable | 0 | 0 | ||
Total current assets | 7,799.3 | 7,608.4 | ||
Non-current assets: | ||||
Investments | 470.7 | 241.1 | ||
Property, plant and equipment (PP&E), net | 6,453 | 6,635.4 | ||
Goodwill | 19,095 | 19,831.7 | 19,718.4 | $ 17,888.2 |
Intangible assets, net | 29,625.4 | 33,046.1 | $ 33,350.3 | $ 34,697.5 |
Deferred tax asset | 151.2 | 188.8 | ||
Long term intercompany loan receivable | 0 | 0 | ||
Other non-current assets | 171.3 | 205.4 | ||
Total assets | 63,765.9 | 67,756.9 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 4,025.1 | 4,184.5 | ||
Short term borrowings and capital leases | 4,248.7 | 2,788.7 | ||
Intercompany payables | 0 | 0 | ||
Short term intercompany loan payable | 0 | 0 | ||
Other current liabilities | 237.8 | 908.8 | ||
Total current liabilities | 8,511.6 | 7,882 | ||
Long term borrowings and capital leases | 11,098 | 16,752.4 | ||
Deferred tax liability | 4,571.2 | 4,748.2 | ||
Long term intercompany loan payable | 0 | 0 | ||
Other non-current liabilities | 2,294.9 | 2,197.9 | ||
Total liabilities | 26,475.7 | 31,580.5 | ||
Total equity | 37,290.2 | 36,176.4 | ||
Total liabilities and equity | 63,765.9 | 67,756.9 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Intercompany receivables | (7,852.8) | (4,802.5) | ||
Short term intercompany loan receivable | (4,210.3) | (2,006.3) | ||
Total current assets | (12,063.1) | (6,808.8) | ||
Non-current assets: | ||||
Investments | (96,085) | (94,947.2) | ||
Property, plant and equipment (PP&E), net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Deferred tax asset | (304.1) | (304.1) | ||
Long term intercompany loan receivable | (12,270.6) | (13,659.5) | ||
Other non-current assets | 0 | 0 | ||
Total assets | (120,722.8) | (115,719.6) | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 0 | 0 | ||
Short term borrowings and capital leases | 0 | 0 | ||
Intercompany payables | (7,852.8) | (4,802.5) | ||
Short term intercompany loan payable | (4,210.3) | (2,006.3) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (12,063.1) | (6,808.8) | ||
Long term borrowings and capital leases | 0 | 0 | ||
Deferred tax liability | (304.1) | (304.1) | ||
Long term intercompany loan payable | (12,270.6) | (13,659.5) | ||
Other non-current liabilities | 0 | 0 | ||
Total liabilities | (24,637.8) | (20,772.4) | ||
Total equity | (96,085) | (94,947.2) | ||
Total liabilities and equity | (120,722.8) | (115,719.6) | ||
Shire plc (Parent Guarantor) | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Short term intercompany loan receivable | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Non-current assets: | ||||
Investments | 44,695.6 | 43,204.3 | ||
Property, plant and equipment (PP&E), net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Deferred tax asset | 0 | 0 | ||
Long term intercompany loan receivable | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Total assets | 44,695.6 | 43,204.3 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 6.4 | 0.2 | ||
Short term borrowings and capital leases | 0 | 0 | ||
Intercompany payables | 3,612.5 | 3,585.3 | ||
Short term intercompany loan payable | 0 | 0 | ||
Other current liabilities | 0 | 573.5 | ||
Total current liabilities | 3,618.9 | 4,159 | ||
Long term borrowings and capital leases | 0 | 0 | ||
Deferred tax liability | 0 | 0 | ||
Long term intercompany loan payable | 3,786.5 | 2,868.9 | ||
Other non-current liabilities | 0 | 0 | ||
Total liabilities | 7,405.4 | 7,027.9 | ||
Total equity | 37,290.2 | 36,176.4 | ||
Total liabilities and equity | 44,695.6 | 43,204.3 | ||
Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0.5 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 81.2 | 95.2 | ||
Intercompany receivables | 0 | 0 | ||
Short term intercompany loan receivable | 0 | 0 | ||
Total current assets | 81.2 | 95.7 | ||
Non-current assets: | ||||
Investments | 38,547.8 | 38,924.6 | ||
Property, plant and equipment (PP&E), net | 4.6 | 7.6 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Deferred tax asset | 304.1 | 304.1 | ||
Long term intercompany loan receivable | 3,507 | 1,609.3 | ||
Other non-current assets | 0 | 0 | ||
Total assets | 42,444.7 | 40,941.3 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 33.6 | 18.1 | ||
Short term borrowings and capital leases | 0 | 748.8 | ||
Intercompany payables | 4,240.3 | 1,217.2 | ||
Short term intercompany loan payable | 0 | 0 | ||
Other current liabilities | 3.8 | 10.7 | ||
Total current liabilities | 4,277.7 | 1,994.8 | ||
Long term borrowings and capital leases | 1,939.9 | 4,308.9 | ||
Deferred tax liability | 0 | 0 | ||
Long term intercompany loan payable | 0 | 0 | ||
Other non-current liabilities | 60.3 | 70 | ||
Total liabilities | 6,277.9 | 6,373.7 | ||
Total equity | 36,166.8 | 34,567.6 | ||
Total liabilities and equity | 42,444.7 | 40,941.3 | ||
Non-Guarantor Non-Issuer Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 193.2 | 471.9 | ||
Restricted cash | 39.9 | 39.4 | ||
Accounts receivable, net | 3,207.4 | 3,009.8 | ||
Inventories | 3,458.7 | 3,291.5 | ||
Other current assets | 817.4 | 698.5 | ||
Intercompany receivables | 7,811.8 | 4,682.3 | ||
Short term intercompany loan receivable | 0 | 0 | ||
Total current assets | 15,528.4 | 12,193.4 | ||
Non-current assets: | ||||
Investments | 13,312.3 | 13,059.4 | ||
Property, plant and equipment (PP&E), net | 6,448.4 | 6,627.8 | ||
Goodwill | 19,095 | 19,831.7 | ||
Intangible assets, net | 29,625.4 | 33,046.1 | ||
Deferred tax asset | 151.2 | 188.8 | ||
Long term intercompany loan receivable | 0 | 0 | ||
Other non-current assets | 169.4 | 202.6 | ||
Total assets | 84,330.1 | 85,149.8 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 3,977.1 | 4,080.3 | ||
Short term borrowings and capital leases | 38.4 | 33.6 | ||
Intercompany payables | 0 | 0 | ||
Short term intercompany loan payable | 4,210.3 | 2,006.3 | ||
Other current liabilities | 234 | 324.6 | ||
Total current liabilities | 8,459.8 | 6,444.8 | ||
Long term borrowings and capital leases | 394.5 | 393.3 | ||
Deferred tax liability | 4,875.3 | 5,052.3 | ||
Long term intercompany loan payable | 8,484.1 | 10,790.6 | ||
Other non-current liabilities | 2,234.6 | 2,127.9 | ||
Total liabilities | 24,448.3 | 24,808.9 | ||
Total equity | 59,881.8 | 60,340.9 | ||
Total liabilities and equity | 84,330.1 | 85,149.8 | ||
Non-Guarantor Subsidiaries of Baxalta Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 193.2 | 471.9 | ||
Restricted cash | 39.9 | 39.4 | ||
Accounts receivable, net | 3,207.4 | 3,009.8 | ||
Inventories | 3,458.7 | 3,291.5 | ||
Other current assets | 818.9 | 700.1 | ||
Intercompany receivables | 7,852.8 | 4,802.5 | ||
Short term intercompany loan receivable | 4,210.3 | 2,006.3 | ||
Total current assets | 19,781.2 | 14,321.5 | ||
Non-current assets: | ||||
Investments | 13,312.3 | 13,059.4 | ||
Property, plant and equipment (PP&E), net | 6,448.4 | 6,627.8 | ||
Goodwill | 19,095 | 19,831.7 | ||
Intangible assets, net | 29,625.4 | 33,046.1 | ||
Deferred tax asset | 151.2 | 188.8 | ||
Long term intercompany loan receivable | 8,763.6 | 12,050.2 | ||
Other non-current assets | 171.3 | 205.4 | ||
Total assets | 97,348.4 | 99,330.9 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 3,985.1 | 4,166.2 | ||
Short term borrowings and capital leases | 4,248.7 | 2,039.9 | ||
Intercompany payables | 0 | 0 | ||
Short term intercompany loan payable | 4,210.3 | 2,006.3 | ||
Other current liabilities | 234 | 324.6 | ||
Total current liabilities | 12,678.1 | 8,537 | ||
Long term borrowings and capital leases | 9,158.1 | 12,443.5 | ||
Deferred tax liability | 4,875.3 | 5,052.3 | ||
Long term intercompany loan payable | 8,484.1 | 10,790.6 | ||
Other non-current liabilities | 2,234.6 | 2,127.9 | ||
Total liabilities | 37,430.2 | 38,951.3 | ||
Total equity | 59,918.2 | 60,379.6 | ||
Total liabilities and equity | 97,348.4 | 99,330.9 | ||
SAIIDAC (SAIIDAC Notes Subsidiary Issuer) | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 1.5 | 1.6 | ||
Intercompany receivables | 41 | 120.2 | ||
Short term intercompany loan receivable | 4,210.3 | 2,006.3 | ||
Total current assets | 4,252.8 | 2,128.1 | ||
Non-current assets: | ||||
Investments | 0 | 0 | ||
Property, plant and equipment (PP&E), net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Deferred tax asset | 0 | 0 | ||
Long term intercompany loan receivable | 8,763.6 | 12,050.2 | ||
Other non-current assets | 1.9 | 2.8 | ||
Total assets | 13,018.3 | 14,181.1 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 8 | 85.9 | ||
Short term borrowings and capital leases | 4,210.3 | 2,006.3 | ||
Intercompany payables | 0 | 0 | ||
Short term intercompany loan payable | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 4,218.3 | 2,092.2 | ||
Long term borrowings and capital leases | 8,763.6 | 12,050.2 | ||
Deferred tax liability | 0 | 0 | ||
Long term intercompany loan payable | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Total liabilities | 12,981.9 | 14,142.4 | ||
Total equity | 36.4 | 38.7 | ||
Total liabilities and equity | $ 13,018.3 | $ 14,181.1 |
Guarantor Financial Informati_5
Guarantor Financial Information (Consolidating Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Total revenues | $ 3,871.7 | $ 3,697.6 | $ 11,556.9 | $ 11,015.7 |
Costs and expenses: | ||||
Cost of sales | 1,157.6 | 1,001.4 | 3,398.3 | 3,437.3 |
Research and development | 407.2 | 402.8 | 1,240 | 1,324.5 |
Selling, general and administrative | 836.8 | 859.7 | 2,549.3 | 2,647.7 |
Amortization of acquired intangible assets | 433.7 | 482.4 | 1,375.3 | 1,280.5 |
Integration and acquisition costs | 93 | 237 | 512 | 696.7 |
Reorganization costs | 254.8 | 5.4 | 268.9 | 24.5 |
Gain on sale of Oncology franchise | (267.2) | 0.3 | (267.2) | (0.4) |
Total operating expenses | 2,915.9 | 2,989 | 9,076.6 | 9,410.8 |
Operating income from continuing operations | 955.8 | 708.6 | 2,480.3 | 1,604.9 |
Interest income/(expense), net | (123.9) | (140.3) | (373.3) | (419.7) |
Other income/(expense), net | (96.1) | (0.2) | (43.9) | 6.8 |
Total other expense, net | (220) | (140.5) | (417.2) | (412.9) |
Income from continuing operations before income taxes and equity in earnings of equity method investees | 735.8 | 568.1 | 2,063.1 | 1,192 |
Income taxes | (203.3) | (13.5) | (371) | (44.6) |
Equity in income/(losses) of equity method investees, net of taxes | 4.7 | (3.4) | 11.2 | 0.1 |
Income from continuing operations, net of taxes | 537.2 | 551.2 | 1,703.3 | 1,147.5 |
Gain (loss) from discontinued operations, net of taxes | 0 | (0.4) | 0 | 18.6 |
Net income | 537.2 | 550.8 | 1,703.3 | 1,166.1 |
Comprehensive income/(loss) | 436 | 1,319.8 | 954.7 | 3,632.8 |
Eliminations | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Amortization of acquired intangible assets | 0 | 0 | 0 | 0 |
Integration and acquisition costs | 0 | 0 | 0 | 0 |
Reorganization costs | 0 | 0 | 0 | 0 |
Gain on sale of Oncology franchise | 0 | 0 | 0 | |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income from continuing operations | 0 | 0 | 0 | 0 |
Interest income/(expense), net | 0 | 0 | 0 | 0 |
Other income/(expense), net | 0 | 0 | 0 | 0 |
Total other expense, net | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes and equity in earnings of equity method investees | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Equity in income/(losses) of equity method investees, net of taxes | (536.8) | (524.3) | (2,258.6) | (1,340.9) |
Income from continuing operations, net of taxes | (536.8) | (524.3) | (2,258.6) | (1,340.9) |
Gain (loss) from discontinued operations, net of taxes | 0 | 0 | ||
Net income | (536.8) | (524.3) | (2,258.6) | (1,340.9) |
Comprehensive income/(loss) | (341.5) | (1,995.8) | (829.8) | (6,130.6) |
Shire plc (Parent Guarantor) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Selling, general and administrative | (14.5) | 6.1 | 76.4 | 24.2 |
Amortization of acquired intangible assets | 0 | 0 | 0 | 0 |
Integration and acquisition costs | 45 | 0 | 142.7 | 164.7 |
Reorganization costs | 0 | 0 | 0 | 0 |
Gain on sale of Oncology franchise | 0 | 0 | 0 | 0 |
Total operating expenses | 30.5 | 6.1 | 219.1 | 188.9 |
Operating income from continuing operations | (30.5) | (6.1) | (219.1) | (188.9) |
Interest income/(expense), net | (43.7) | (48) | (110.4) | (109.1) |
Other income/(expense), net | 0.2 | 0 | 0 | 1.8 |
Total other expense, net | (43.5) | (48) | (110.4) | (107.3) |
Income from continuing operations before income taxes and equity in earnings of equity method investees | (74) | (54.1) | (329.5) | (296.2) |
Income taxes | 0.2 | 0.9 | 17.4 | 1.7 |
Equity in income/(losses) of equity method investees, net of taxes | 611 | 604 | 2,015.4 | 1,460.6 |
Income from continuing operations, net of taxes | 537.2 | 550.8 | 1,703.3 | 1,166.1 |
Gain (loss) from discontinued operations, net of taxes | 0 | 0 | ||
Net income | 537.2 | 550.8 | 1,703.3 | 1,166.1 |
Comprehensive income/(loss) | 436 | 1,319.8 | 954.7 | 3,632.8 |
SAIIDAC (SAIIDAC Notes Subsidiary Issuer) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Amortization of acquired intangible assets | 0 | 0 | 0 | 0 |
Integration and acquisition costs | 0 | 0 | 0 | 0 |
Reorganization costs | 0 | 0 | 0 | 0 |
Gain on sale of Oncology franchise | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income from continuing operations | 0 | 0 | 0 | 0 |
Interest income/(expense), net | 5.6 | 3 | (2.2) | 14.5 |
Other income/(expense), net | 0 | 0 | 0 | 0 |
Total other expense, net | 5.6 | 3 | (2.2) | 14.5 |
Income from continuing operations before income taxes and equity in earnings of equity method investees | 5.6 | 3 | (2.2) | 14.5 |
Income taxes | (2.4) | 0.6 | 0.6 | (3.6) |
Equity in income/(losses) of equity method investees, net of taxes | 0 | 0 | 0 | 0 |
Income from continuing operations, net of taxes | 3.2 | 3.6 | (1.6) | 10.9 |
Gain (loss) from discontinued operations, net of taxes | 0 | 0 | ||
Net income | 3.2 | 3.6 | (1.6) | 10.9 |
Comprehensive income/(loss) | 3.2 | 3.6 | (1.6) | 10.9 |
Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 4 | 7.2 | 15.3 |
Amortization of acquired intangible assets | 0 | 0 | 0 | 0 |
Integration and acquisition costs | 5.3 | 9.2 | 7.4 | 52.3 |
Reorganization costs | 0 | 0 | 0 | 0 |
Gain on sale of Oncology franchise | 0 | 0 | 0 | 0 |
Total operating expenses | 5.3 | 13.2 | 14.6 | 67.6 |
Operating income from continuing operations | (5.3) | (13.2) | (14.6) | (67.6) |
Interest income/(expense), net | (37.1) | (23.6) | (91.6) | (66.5) |
Other income/(expense), net | (24.8) | 4.4 | (23.9) | 4.3 |
Total other expense, net | (61.9) | (19.2) | (115.5) | (62.2) |
Income from continuing operations before income taxes and equity in earnings of equity method investees | (67.2) | (32.4) | (130.1) | (129.8) |
Income taxes | 15.2 | (8.9) | 28.4 | (45) |
Equity in income/(losses) of equity method investees, net of taxes | (74.2) | (79.8) | 243.2 | (119.7) |
Income from continuing operations, net of taxes | (126.2) | (121.1) | 141.5 | (294.5) |
Gain (loss) from discontinued operations, net of taxes | 0 | 0 | ||
Net income | (126.2) | (121.1) | 141.5 | (294.5) |
Comprehensive income/(loss) | (220.3) | 581 | (538.7) | 2,031.5 |
Non-Guarantor Non-Issuer Subsidiaries | ||||
Revenues: | ||||
Total revenues | 3,871.7 | 3,697.6 | 11,556.9 | 11,015.7 |
Costs and expenses: | ||||
Cost of sales | 1,157.6 | 1,001.4 | 3,398.3 | 3,437.3 |
Research and development | 407.2 | 402.8 | 1,240 | 1,324.5 |
Selling, general and administrative | 851.3 | 849.6 | 2,465.7 | 2,608.2 |
Amortization of acquired intangible assets | 433.7 | 482.4 | 1,375.3 | 1,280.5 |
Integration and acquisition costs | 42.7 | 227.8 | 361.9 | 479.7 |
Reorganization costs | 254.8 | 5.4 | 268.9 | 24.5 |
Gain on sale of Oncology franchise | 0.3 | (0.4) | ||
Total operating expenses | 2,880.1 | 2,969.7 | 8,842.9 | 9,154.3 |
Operating income from continuing operations | 991.6 | 727.9 | 2,714 | 1,861.4 |
Interest income/(expense), net | (48.7) | (71.7) | (169.1) | (258.6) |
Other income/(expense), net | (71.5) | (4.6) | (20) | 0.7 |
Total other expense, net | (120.2) | (76.3) | (189.1) | (257.9) |
Income from continuing operations before income taxes and equity in earnings of equity method investees | 871.4 | 651.6 | 2,524.9 | 1,603.5 |
Income taxes | (216.3) | (6.1) | (417.4) | 2.3 |
Equity in income/(losses) of equity method investees, net of taxes | 4.7 | (3.3) | 11.2 | 0.1 |
Income from continuing operations, net of taxes | 659.8 | 642.2 | 2,118.7 | 1,605.9 |
Gain (loss) from discontinued operations, net of taxes | (0.4) | 18.6 | ||
Net income | 659.8 | 641.8 | 2,118.7 | 1,624.5 |
Comprehensive income/(loss) | 558.6 | 1,411.2 | 1,370.1 | 4,088.2 |
Non-Guarantor Subsidiaries of Baxalta Notes | ||||
Revenues: | ||||
Total revenues | 3,871.7 | 3,697.6 | 11,556.9 | 11,015.7 |
Costs and expenses: | ||||
Cost of sales | 1,157.6 | 1,001.4 | 3,398.3 | 3,437.3 |
Research and development | 407.2 | 402.8 | 1,240 | 1,324.5 |
Selling, general and administrative | 851.3 | 849.6 | 2,465.7 | 2,608.2 |
Amortization of acquired intangible assets | 433.7 | 482.4 | 1,375.3 | 1,280.5 |
Integration and acquisition costs | 42.7 | 227.8 | 361.9 | 479.7 |
Reorganization costs | 254.8 | 5.4 | 268.9 | 24.5 |
Gain on sale of Oncology franchise | (267.2) | 0.3 | (267.2) | (0.4) |
Total operating expenses | 2,880.1 | 2,969.7 | 8,842.9 | 9,154.3 |
Operating income from continuing operations | 991.6 | 727.9 | 2,714 | 1,861.4 |
Interest income/(expense), net | (43.1) | (68.7) | (171.3) | (244.1) |
Other income/(expense), net | (71.5) | (4.6) | (20) | 0.7 |
Total other expense, net | (114.6) | (73.3) | (191.3) | (243.4) |
Income from continuing operations before income taxes and equity in earnings of equity method investees | 877 | 654.6 | 2,522.7 | 1,618 |
Income taxes | (218.7) | (5.5) | (416.8) | (1.3) |
Equity in income/(losses) of equity method investees, net of taxes | 4.7 | (3.3) | 11.2 | 0.1 |
Income from continuing operations, net of taxes | 663 | 645.8 | 2,117.1 | 1,616.8 |
Gain (loss) from discontinued operations, net of taxes | (0.4) | 18.6 | ||
Net income | 663 | 645.4 | 2,117.1 | 1,635.4 |
Comprehensive income/(loss) | 561.8 | 1,414.8 | 1,368.5 | 4,099.1 |
Product sales | ||||
Revenues: | ||||
Total revenues | 3,752.8 | 3,533.8 | 11,198.5 | 10,537.9 |
Product sales | Eliminations | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Product sales | Shire plc (Parent Guarantor) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Product sales | SAIIDAC (SAIIDAC Notes Subsidiary Issuer) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Product sales | Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Product sales | Non-Guarantor Non-Issuer Subsidiaries | ||||
Revenues: | ||||
Total revenues | 3,752.8 | 3,533.8 | 11,198.5 | 10,537.9 |
Product sales | Non-Guarantor Subsidiaries of Baxalta Notes | ||||
Revenues: | ||||
Total revenues | 3,752.8 | 3,533.8 | 11,198.5 | 10,537.9 |
Royalties and other revenues | ||||
Revenues: | ||||
Total revenues | 118.9 | 163.8 | 358.4 | 477.8 |
Royalties and other revenues | Eliminations | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Royalties and other revenues | Shire plc (Parent Guarantor) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Royalties and other revenues | SAIIDAC (SAIIDAC Notes Subsidiary Issuer) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Royalties and other revenues | Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Royalties and other revenues | Non-Guarantor Non-Issuer Subsidiaries | ||||
Revenues: | ||||
Total revenues | 118.9 | 163.8 | 358.4 | 477.8 |
Royalties and other revenues | Non-Guarantor Subsidiaries of Baxalta Notes | ||||
Revenues: | ||||
Total revenues | $ 118.9 | $ 163.8 | $ 358.4 | $ 477.8 |
Guarantor Financial Informati_6
Guarantor Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash provided by/(used in) operating activities | $ 2,807.5 | $ 2,737.1 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Transactions with subsidiaries | 0 | 0 |
Proceeds from sale of Oncology franchise | 2,412.2 | 0 |
Purchases of PP&E | (564.6) | (565.5) |
Acquisition of business, net of cash acquired | (104.7) | 0 |
Proceeds/(payments) from sale of investments | 31.8 | 48.1 |
Other, net | (97.9) | 34.8 |
Net cash provided by/(used in) investing activities | 1,676.8 | (482.6) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit, long term and short term borrowings | 3,735.3 | 3,261.6 |
Repayment of revolving line of credit, long term and short term borrowings | (7,969) | (5,664.5) |
Proceeds from/(to) intercompany borrowings | 0 | 0 |
Payment of contingent consideration | (396) | 0 |
Payment of dividend | (276.6) | (234.7) |
Proceeds from issuance of stock for share-based compensation arrangements | 180.8 | 92.2 |
Other, net | (25.6) | (26.2) |
Net cash used in financing activities | (4,751.1) | (2,571.6) |
Effect of foreign exchange rate changes on cash and cash equivalents | (11.9) | 6.2 |
Net decrease in cash, cash equivalents, and restricted cash | (278.7) | (310.9) |
Cash, cash equivalents, and restricted cash at beginning of period | 511.8 | 554.5 |
Cash, cash equivalents, and restricted cash at end of period | 233.1 | 243.6 |
Eliminations | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash provided by/(used in) operating activities | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Transactions with subsidiaries | 59,694.2 | 6,470.6 |
Proceeds from sale of Oncology franchise | 0 | |
Purchases of PP&E | 0 | 0 |
Acquisition of business, net of cash acquired | 0 | |
Proceeds/(payments) from sale of investments | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided by/(used in) investing activities | 59,694.2 | 6,470.6 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit, long term and short term borrowings | 0 | 0 |
Repayment of revolving line of credit, long term and short term borrowings | 0 | 0 |
Proceeds from/(to) intercompany borrowings | (59,694.2) | (6,470.6) |
Payment of contingent consideration | 0 | |
Payment of dividend | 0 | 0 |
Proceeds from issuance of stock for share-based compensation arrangements | 0 | 0 |
Other, net | 0 | 0 |
Net cash used in financing activities | (59,694.2) | (6,470.6) |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
Shire plc (Parent Guarantor) | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash provided by/(used in) operating activities | (251.2) | (102.9) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Transactions with subsidiaries | (228) | (1,339.3) |
Proceeds from sale of Oncology franchise | 0 | |
Purchases of PP&E | 0 | 0 |
Acquisition of business, net of cash acquired | 0 | |
Proceeds/(payments) from sale of investments | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided by/(used in) investing activities | (228) | (1,339.3) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit, long term and short term borrowings | 0 | 2,110 |
Repayment of revolving line of credit, long term and short term borrowings | 0 | (2,560) |
Proceeds from/(to) intercompany borrowings | 923.5 | 1,919.6 |
Payment of contingent consideration | (396) | |
Payment of dividend | (48.6) | (27.6) |
Proceeds from issuance of stock for share-based compensation arrangements | 0.3 | 0.2 |
Other, net | 0 | 0 |
Net cash used in financing activities | 479.2 | 1,442.2 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
SAIIDAC (SAIIDAC Notes Subsidiary Issuer) | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash provided by/(used in) operating activities | (17.4) | (62.9) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Transactions with subsidiaries | (16,010) | (262.9) |
Proceeds from sale of Oncology franchise | 0 | |
Purchases of PP&E | 0 | 0 |
Acquisition of business, net of cash acquired | 0 | |
Proceeds/(payments) from sale of investments | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided by/(used in) investing activities | (16,010) | (262.9) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit, long term and short term borrowings | 2,685 | 1,150 |
Repayment of revolving line of credit, long term and short term borrowings | (3,780) | (3,100) |
Proceeds from/(to) intercompany borrowings | 17,122.4 | 2,275.8 |
Payment of contingent consideration | 0 | |
Payment of dividend | 0 | 0 |
Proceeds from issuance of stock for share-based compensation arrangements | 0 | 0 |
Other, net | 0 | 0 |
Net cash used in financing activities | 16,027.4 | 325.8 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
Baxalta Inc. (Baxalta Notes Subsidiary Issuer and SAIIDAC Notes Subsidiary Guarantor) | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash provided by/(used in) operating activities | 264.2 | 0.6 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Transactions with subsidiaries | (11,268.3) | (659.3) |
Proceeds from sale of Oncology franchise | 0 | |
Purchases of PP&E | 0 | 0 |
Acquisition of business, net of cash acquired | 0 | |
Proceeds/(payments) from sale of investments | 0 | (9.8) |
Other, net | 0 | 0 |
Net cash provided by/(used in) investing activities | (11,268.3) | (669.1) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit, long term and short term borrowings | 0 | 0 |
Repayment of revolving line of credit, long term and short term borrowings | (3,129.5) | 0 |
Proceeds from/(to) intercompany borrowings | 14,142 | 623.9 |
Payment of contingent consideration | 0 | |
Payment of dividend | 0 | 0 |
Proceeds from issuance of stock for share-based compensation arrangements | 9.1 | 4.6 |
Other, net | (18) | (0.8) |
Net cash used in financing activities | 11,003.6 | 627.7 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash, cash equivalents, and restricted cash | (0.5) | (40.8) |
Cash, cash equivalents, and restricted cash at beginning of period | 0.5 | 41.7 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0.9 |
Non-Guarantor Non-Issuer Subsidiaries | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash provided by/(used in) operating activities | 2,811.9 | 2,902.3 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Transactions with subsidiaries | (32,187.9) | (4,209.1) |
Proceeds from sale of Oncology franchise | 2,412.2 | |
Purchases of PP&E | (564.6) | (565.5) |
Acquisition of business, net of cash acquired | (104.7) | |
Proceeds/(payments) from sale of investments | 31.8 | 57.9 |
Other, net | (97.9) | 34.8 |
Net cash provided by/(used in) investing activities | (30,511.1) | (4,681.9) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit, long term and short term borrowings | 1,050.3 | 1.6 |
Repayment of revolving line of credit, long term and short term borrowings | (1,059.5) | (4.5) |
Proceeds from/(to) intercompany borrowings | 27,506.3 | 1,651.3 |
Payment of contingent consideration | 0 | |
Payment of dividend | (228) | (207.1) |
Proceeds from issuance of stock for share-based compensation arrangements | 171.4 | 87.4 |
Other, net | (7.6) | (25.4) |
Net cash used in financing activities | 27,432.9 | 1,503.3 |
Effect of foreign exchange rate changes on cash and cash equivalents | (11.9) | 6.2 |
Net decrease in cash, cash equivalents, and restricted cash | (278.2) | (270.1) |
Cash, cash equivalents, and restricted cash at beginning of period | 511.3 | 512.8 |
Cash, cash equivalents, and restricted cash at end of period | 233.1 | 242.7 |
Non-Guarantor Subsidiaries of Baxalta Notes | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash provided by/(used in) operating activities | 2,794.5 | 2,839.4 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Transactions with subsidiaries | (48,197.9) | (4,472) |
Proceeds from sale of Oncology franchise | 2,412.2 | |
Purchases of PP&E | (564.6) | (565.5) |
Acquisition of business, net of cash acquired | (104.7) | |
Proceeds/(payments) from sale of investments | 31.8 | 57.9 |
Other, net | (97.9) | 34.8 |
Net cash provided by/(used in) investing activities | (46,521.1) | (4,944.8) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit, long term and short term borrowings | 3,735.3 | 1,151.6 |
Repayment of revolving line of credit, long term and short term borrowings | (4,839.5) | (3,104.5) |
Proceeds from/(to) intercompany borrowings | 44,628.7 | 3,927.1 |
Payment of contingent consideration | 0 | |
Payment of dividend | (228) | (207.1) |
Proceeds from issuance of stock for share-based compensation arrangements | 171.4 | 87.4 |
Other, net | (7.6) | (25.4) |
Net cash used in financing activities | 43,460.3 | 1,829.1 |
Effect of foreign exchange rate changes on cash and cash equivalents | (11.9) | 6.2 |
Net decrease in cash, cash equivalents, and restricted cash | (278.2) | (270.1) |
Cash, cash equivalents, and restricted cash at beginning of period | 511.3 | 512.8 |
Cash, cash equivalents, and restricted cash at end of period | $ 233.1 | $ 242.7 |