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Reorganization Costs
6 Months Ended
Jun. 30, 2013
Restructuring and Related Activities [Abstract]  
Reorganization Costs Disclosure

3.       Reorganization costs

 

Turnhout, Belgium Site Closure

 

On January 23, 2013 Shire announced that it had decided to proceed with a collective dismissal and business closure at its site in Turnhout, Belgium. This decision follows the conclusion of an information and consultation process. Shire will continue to sell RESOLOR in Europe and the supply of RESOLOR for patients in Europe who rely on the medicine will not be affected. In the three and six months to June 30, 2013 the Company incurred reorganization costs totaling $1.7 million and $19.2 million, respectively relating to employee involuntary termination benefits and other re-organization costs (of which $0.4 million is accrued at June 30, 2013). The closure of the Turnhout site is expected to be completed by the end of 2013.

 

“One Shire” business re-alignment

 

On May 2, 2013 the Company announced that there would be a re-alignment of the business to integrate the three divisions into a simplified “One Shire” organization in order to drive future growth and innovation. In the three and six months to June 30, 2013, the Company incurred reorganization costs totaling $24.7 million, relating to contract termination and other re-organization costs (of which $0.4 million is accrued at June 30, 2013). This re-alignment is ongoing and the Company is continuing to evaluate the total costs expected to be incurred and the timeframe.