Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

17.       Earnings per share

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

	3 months to	3 months to	9 months to	9 months to
	September 30,	September 30,	September 30,	September 30,
	2011	2010	2011	2010
	$’M	$’M	$’M	$’M
Amounts attributable to Shire plc shareholders
Numerator for basic earnings per share	192.9	96.3	609.7	422.7
	_________________	_________________	_________________	_________________
Interest on convertible bonds, net of tax 1	8.4	0.0	25.2	25.2
	_________________	_________________	_________________	_________________
Numerator for diluted earnings per share	201.3	96.3	634.9	447.9
	_________________	_________________	_________________	_________________
Weighted average number of shares:
	Millions	Millions	Millions	Millions
	_________________	_________________	_________________	_________________
Basic 2	551.3	547.0	551.2	546.1
Effect of dilutive shares:
Share based awards to employees 3	9.0	9.7	10.4	10.4
Convertible bonds 2.75% due 2014 4	33.5	0.0	33.4	33.2
	_________________	_________________	_________________	_________________
Diluted	593.8	556.7	595.0	589.7
	_________________	_________________	_________________	_________________

1. For the three months period ended September 30, 2010 Interest on convertible bond has not been added back as the effect would be anti-dilutive.

2. Excludes shares purchased by the ESOT and presented by the Company as treasury stock.

3. Calculated using the treasury stock method.

4. Calculated using the 'if-converted' method.

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

		3 months to	3 months to	9 months to	9 months to
		September 30,	September 30,	September 30,	September 30,
		2011	2010	2011	2010
		No. of shares	No. of shares	No. of shares	No. of shares
		Millions	Millions	Millions	Millions
		_________________	_________________	_________________	_________________
Share awards	1	3.2	3.6	3.9	8.9
Convertible bonds 2.75% due 2014	2	-	33.2	-	-
		_________________	_________________	_________________	_________________

1. Certain stock options have been excluded from the calculation of diluted EPS because (a) their exercise prices exceeded Shire plc's average share price during the calculation period or (b) satisfaction of the required performance/market conditions cannot be measured until the conclusion of the performance period.

2. For the three month period ended September 30, 2010 the ordinary shares underlying the convertible bonds have not been included in the calculation of the diluted weighted average number of shares, as the effect of their inclusion would be anti-dilutive.