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 Shire's Board 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
	June 30, 2018						June 30, 2017
(In millions)	U.S. Sales		International Sales		Total Sales		U.S. Sales		International Sales		Total Sales
Product sales by franchise
IMMUNOGLOBULIN THERAPIES	$	457.3	$	154.8	$	612.1	$	407.9	$	102.6	$	510.5
HEREDITARY ANGIOEDEMA	326.2		39.0		365.2		303.4		30.5		333.9
BIO THERAPEUTICS	80.4		91.8		172.2		75.9		96.3		172.2
Immunology	863.9		285.6		1,149.5		787.2		229.4		1,016.6
HEMOPHILIA	372.9		373.8		746.7		383.1		360.8		743.9
INHIBITOR THERAPIES	55.2		149.1		204.3		76.1		144.6		220.7
Hematology	428.1		522.9		951.0		459.2		505.4		964.6
VYVANSE	486.6		69.4		556.0		460.1		58.1		518.2
ADDERALL XR	75.7		4.1		79.8		67.2		4.2		71.4
MYDAYIS	16.6		—		16.6		15.7		—		15.7
Other Neuroscience⁽¹⁾	4.3		37.0		41.3		5.2		24.9		30.1
Neuroscience	583.2		110.5		693.7		548.2		87.2		635.4
ELAPRASE	43.8		132.7		176.5		39.8		121.2		161.0
REPLAGAL	—		125.6		125.6		—		122.1		122.1
VPRIV	38.2		51.4		89.6		37.3		50.6		87.9
Genetic Diseases	82.0		309.7		391.7		77.1		293.9		371.0
GATTEX/REVESTIVE	117.6		15.9		133.5		63.7		11.6		75.3
NATPARA/NATPAR	62.4		2.4		64.8		34.5		—		34.5
Other Internal Medicine⁽²⁾	0.2		34.4		34.6		0.3		35.0		35.3
Internal Medicine	180.2		52.7		232.9		98.5		46.6		145.1
LIALDA/MEZAVANT	75.4		30.5		105.9		187.5		20.3		207.8
PENTASA	77.5		—		77.5		83.3		—		83.3
Other Established Brands⁽³⁾	12.8		22.3		35.1		30.9		17.2		48.1
Established Brands	165.7		52.8		218.5		301.7		37.5		339.2
Ophthalmics	99.2		1.1		100.3		57.4		—		57.4
Oncology	47.9		23.1		71.0		45.8		16.7		62.5
Total product sales	$	2,450.2	$	1,358.4	$	3,808.6	$	2,375.1	$	1,216.7	$	3,591.8

⁽¹⁾ Other Neuroscience includes INTUNIV, EQUASYM, and BUCCOLAM.

⁽²⁾ Other Internal Medicine includes AGRYLIN, PLENADREN, and RESOLOR.

⁽³⁾ Other Established Brands includes FOSRENOL and CARBATROL.

In the periods set out below, Royalties and other revenues were as follows:



	Three months ended
(In millions)	June 30, 2018		June 30, 2017
Royalties	$	59.7	$	113.2
Other revenues	51.2		40.8
Royalties and other revenues	$	110.9	$	154.0



	Six months ended
	June 30, 2018						June 30, 2017
(In millions)	U.S. Sales		International Sales		Total Sales		U.S. Sales		International Sales		Total Sales
Product sales by franchise
IMMUNOGLOBULIN THERAPIES	$	878.9	$	291.1	$	1,170.0	$	813.3	$	195.5	$	1,008.8
HEREDITARY ANGIOEDEMA	658.6		75.4		734.0		643.1		56.9		700.0
BIO THERAPEUTICS	162.9		208.5		371.4		145.6		204.5		350.1
Immunology	1,700.4		575.0		2,275.4		1,602.0		456.9		2,058.9
HEMOPHILIA	766.0		723.5		1,489.5		724.6		669.7		1,394.3
INHIBITOR THERAPIES	115.8		298.3		414.1		146.8		294.4		441.2
Hematology	881.8		1,021.8		1,903.6		871.4		964.1		1,835.5
VYVANSE	1,043.8		141.0		1,184.8		968.6		113.3		1,081.9
ADDERALL XR	147.8		8.0		155.8		126.5		9.8		136.3
MYDAYIS	21.1		—		21.1		15.7		—		15.7
Other Neuroscience⁽¹⁾	5.2		71.5		76.7		6.8		48.0		54.8
Neuroscience	1,217.9		220.5		1,438.4		1,117.6		171.1		1,288.7
ELAPRASE	84.8		210.1		294.9		78.0		223.6		301.6
REPLAGAL	—		249.8		249.8		—		231.8		231.8
VPRIV	74.9		104.6		179.5		72.8		94.9		167.7
Genetic Diseases	159.7		564.5		724.2		150.8		550.3		701.1
GATTEX/REVESTIVE	198.0		31.7		229.7		120.7		23.6		144.3
NATPARA/NATPAR	105.6		4.2		109.8		64.1		0.1		64.2
Other Internal Medicine⁽²⁾	0.8		71.5		72.3		0.6		68.0		68.6
Internal Medicine	304.4		107.4		411.8		185.4		91.7		277.1
LIALDA/MEZAVANT	105.9		62.0		167.9		340.6		42.3		382.9
PENTASA	149.9		—		149.9		152.4		—		152.4
Other Established Brands⁽³⁾	33.1		41.1		74.2		55.6		35.1		90.7
Established Brands	288.9		103.1		392.0		548.6		77.4		626.0
Ophthalmics	160.8		1.6		162.4		96.0		—		96.0
Oncology	91.3		46.6		137.9		88.1		32.7		120.8
Total product sales	$	4,805.2	$	2,640.5	$	7,445.7	$	4,659.9	$	2,344.2	$	7,004.1

⁽¹⁾ Other Neuroscience includes INTUNIV, EQUASYM, and BUCCOLAM.

⁽²⁾ Other Internal Medicine includes AGRYLIN, PLENADREN, and RESOLOR.

⁽³⁾ Other Established Brands includes FOSRENOL and CARBATROL.

In the periods set out below, Royalties and other revenues were as follows



	Six months ended
(In millions)	June 30, 2018		June 30, 2017
Royalties	$	130.3	$	218.3
Other revenues	109.2		95.7
Royalties and other revenues	$	239.5	$	314.0