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Reorganization Costs
9 Months Ended
Sep. 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 nine months to September 30, 2013 the Company incurred reorganization costs totaling $1.8 million and $21.0 million, respectively relating to employee involuntary termination benefits and other re-organization costs. The closure of the Turnhout site is expected to be completed by the end of 2013.

 

“One Shire” business reorganization

 

On May 2, 2013, the Company announced that there would be a reorganization 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 nine months to September 30, 2013, the Company incurred reorganization costs totaling $11.9 million and $36.6 million respectively, relating to contract termination and other reorganization costs (of which $10.6 million is accrued at September 30, 2013). The Company is continuing to evaluate both the total costs expected to be incurred and the timeframe for completion of this reorganization.

 

Decision to discontinue the construction of the new manufacturing facility in San Diego

 

On October 22, 2013 Shire announced that it had decided to discontinue the construction of its new manufacturing facility in San Diego. Shire will continue to manufacture DERMAGRAFT in its existing facility in La Jolla, and Shire's ability to meet expected future demand for DERMAGRAFT is not impacted by this decision. Shire is currently assessing possible disposal opportunities in relation to this facility. It is reasonably possible that charges to write down the carrying value of the assets related to this manufacturing facility may be required in future periods.