annual report 2013
shire plc annual report 2013 one shire from the way we work together to 
the distinctive qualities of our 
treatments we strive for excellence 
throughout our business…
see page 50
our strategic focus is  
on providing innovative 
treatments for patients  
with rare and other  
specialized conditions…
see page 32
innovation is fundamental to our 
business including development 
of new treatments for unmet 
patient needs…
see page 02
at shire we put patients with specialized conditions at the 
heart of our business we are dedicated to transforming 
their lives around the world by developing and marketing 
innovative treatments that meet their needs 
we live up to this commitment through our unified 
business – one shire working together as one we 
strive for success characterized by innovation focus 
excellence growth and change for the better   we know that we have to 
always embrace change to 
stay ahead and deliver our 
growth ambitions… 
see page 156
we aim to deliver 
significantly above 
average industry  
growth levels…
see page 98
strategic report
chairman’s review  04
chief executive officer’s review  06
financial highlights  10
where we are  11
year in review  12
at a glance inline  14
at a glance pipeline  16
strategy and business model  18
responsibility  20
principal risks and uncertainties  24
key performance indicators  30
review of our business 34
governance
board of directors 52
corporate governance report 54
board committees 59
directors’ remuneration report 64
additional statutory information 91
directors’ responsibilities statement 94
independent auditor’s report 95
financial statements
consolidated balance sheets 100
consolidated statements of income 101
consolidated statements of  
comprehensive income 102
consolidated statements of  
changes in equity 103
consolidated statements of cash flows 104
notes to the consolidated  
financial statements 106
other financial information
other financial information 158
shareholder information 164
shire head offices and main  
operating locations 166
cautionary statements 167
parent company financial  
statements of shire plc 168
shire trade marks 187 
  more online at  
ar2013shirecom
 annual report 2013 shire plc 01  innovation is fundamental to our business 
including the development of new treatments 
for unmet patient needs 
we balance the risks of developing different 
treatments with the acquisition of premacure 
for example we added shp607 to our pipeline – 
our phase 2 clinical program for the prevention 
of the rare eye disorder retinopathy of prematurity 
“rop” this acquisition also gives us access to 
neonatology a growing market with many 
underserved specialist patient needs 
shp607 – a key innovation in our pipeline 
phase 2 multicenter trial ongoing in sweden 
• in the us and eu there are 
approximately 78000 and 
68000 premature infants 
born annually  32 weeks 
of gestational age
• surgery is currently the 
only widely recognized 
treatment option
• igf1 protein replacement 
therapy administered 
preventatively by continuous 
iv infusion in first 2448 hours 
of life 
• delivered until endogenous 
production of igf1 begins at 
3032 weeks gestational age
• phase 2 studies ongoing 
with headline data expected 
1h 2015
• dose optimization 
completed
 number of premature infants us—cdc national vital statistics reports births final data for 2010  
eu—eu peristat 2010 and blencowe et al lancet 2012 3792162–72
patients product progress
wwwshirecom annual report 2013 shire plc 03
strategic report
governance financial statements other information chairman’s review
i am proud to be the chairman of a 
company with a 28 billion
1
 market 
capitalization that focuses on developing 
and marketing innovative specialty 
medicines for patients
if you look at the track record of shire over 
the past 25 years you will see a theme of 
change as the company has adapted to 
anticipate and meet patient needs and 
maximize growth opportunities from 
acquiring new businesses to expanding 
overseas from developing new treatments 
to reorganizing our company – change 
has always been part of shire and 2013 
was a standout year in this respect but at 
the core of all this change is an enduring 
commitment to meet the needs of patients 
with a range of specialized conditions 
this has always been at shire’s heart 
and we are determined to continue 
making the most of this strength for 
all our stakeholders
changing for the better
for us 2013 was a year of further success 
our new chief executive dr flemming 
ornskov led a major reorganization 
refocusing our company on our core 
strengths and on where we need to be 
to continue to grow and succeed in the 
future flemming has a rare combination of 
science medical business and commercial 
acumen and his impact on shire has been 
2013 highlights
• we grew significantly both 
organically and through a 
number of targeted acquisitions
• we strengthened our enduring 
focus on specialty medicines  
for patients
• we created a simpler more 
streamlined and effective  
organization – one shire
• we brought in new talent and 
developed existing talent
1 
correct at february 24 2014
wwwshirecom 04 shire plc immediate and significant we have reset 
shire to create a simpler more streamlined 
and effective organization – one shire – 
entirely focused on developing and 
marketing innovative specialty medicines 
to meet significant unmet patient needs 
making big changes quickly is inevitably 
challenging but the ones we have made 
through 2013 are making our company 
stronger and better positioned to drive 
a new era of growth ahead as a result 
we face the future fit and lean more 
focused and flexible and we remain as 
motivated as ever to make the most of a 
world where medical science is getting 
more sophisticated treatments are 
becoming more specialized and better
informed patients are demanding access 
to new and better treatments 
continuing to specialize
specializing has served us well over the 
years particularly so in a pharmaceuticals 
industry which is not only more competitive 
but also more geared towards highly 
differentiated and effective treatments and 
often very niche scientific developments 
going forward shire will continue to look 
for specialist areas where there is high 
unmet medical need
identifying and developing assets
one of our greatest strengths has been 
our ability to identify assets that address 
very specific patient needs and to develop 
and bring these assets to market these 
products and product candidates are 
typically either already approved and 
marketed or we assess them as having 
a high probability of being approved 
our skill is finding those assets to deliver 
growth and knowing how to maximize 
their commercial potential
over the years we have established 
ourselves as an active dealmaker our 
most recent acquisition of viropharma 
inc “viropharma” is an excellent strategic 
fit and we are confident in our ability to 
maximize value for shareholders and of 
course for patients the acquisition is 
expected to enhance shire’s revenue and 
earnings growth profile going forward 
expanding internationally
we continue to focus on expanding our 
international presence we have developed 
a robust international strategy through the 
commercialization of our rare diseases 
treatments which are now sold in over  
50 countries in addition to the continued 
launch of elvanse in europe we have 
succeeded in scaling up steadily while 
building valuable understanding along 
the way of how to gain approval and 
market the same products in many 
different countries we continue to 
expand particularly into asia in 2013 
we announced the establishment of a 
subsidiary office in japan the second 
largest pharmaceutical market in the 
world we also established a presence 
in china and in south korea
doing the right things
i am pleased with the composition of 
our board we have a good multinational 
mix of skills and experience drawn from 
different areas including the worlds of 
pharmaceuticals science finance and 
banking the atmosphere is open 
participative and constructively challenging 
together we focus on ensuring that shire 
does the right things and does things right 
– strategically and responsibly 
we welcomed dominic blakemore to 
the board of directors on january 1 2014 
dominic is a nonexecutive director and 
member of the audit compliance  
risk committee he brings a wealth 
of experience and fresh perspective 
to the board 
making the most of specialty
looking ahead we see even more 
growth potential in and around focusing 
on specialized unmet needs with ever 
more finelyfocused scientific developments 
and highlytargeted therapies for rare 
diseases we aim to find new opportunities 
to lead the way in our core space 
specialized highvalue targeted medicine 
is the future for shire – we will continue to 
develop and market innovative treatments 
for distinct patient populations with 
specialized and often quite rare conditions 
around the world
i’d like to thank all shire employees for 
their immense efforts and unwavering 
commitment to meeting the needs of 
our patients and creating value for our 
shareholders during another 
successful year
after more than ten years at shire at the 
annual general meeting on april 29 2014 
i will hand over the chairmanship to susan 
kilsby having worked with susan on the 
board for a number of years i believe she is 
the ideal chairman for the company going 
forward she has excellent commercial 
experience and will be a great new leader 
for the next era of shire’s growth i have 
thoroughly enjoyed my time with shire as 
it has developed and grown and i am 
confident that its track record of success 
will continue
matthew emmens
chairman
wwwshirecom annual report 2013 shire plc 05
strategic report
governance financial statements other information chief executive officer’s review
we have enjoyed a strong year 
characterized by wide‑ranging change 
good results and the outstanding 
contributions of our people who 
continue to make all the difference 
to our patient‑focused success
delivering strong results
in 2013 we refined and strengthened 
our strategy and created a simpler 
more streamlined integrated 
organization – one shire we also 
established our inline and pipeline 
committees to further reinforce our 
focus on commercial excellence 
and innovation this enabled 
us to significantly reset our cost 
base and accelerate our growth
  more online at  
ar2013shirecom
wwwshirecom 06 in my first year as chief executive 
i am pleased to say that shire has 
made considerable progress achieving 
a great deal 
resetting our strategy
the first accomplishment was to reset 
our strategy – honing in on certain high 
growth areas within specialty medicine 
we are focusing even more than before 
on rare specialized conditions building 
on our strengths and on where there is the 
greatest potential to grow and make a real 
difference to patients’ lives our priorities 
are to drive optimum performance from 
our currently marketed inline products 
for patients today and to build our pipeline 
of potential products for patients in the 
future through focused rd and business 
development
reorganizing to form one shire
to better support this strategic focus 
we reorganized the company to form a 
simpler more cohesive and streamlined 
organization – one shire instead of three 
separate divisions we now have four 
business units focused exclusively on 
the commercial execution of our inline 
products in our specialist therapeutic 
areas rare diseases neuroscience 
gastrointestinal gi and internal medicine 
our single rd organization focuses 
on developing our pipeline of innovative 
treatments to address unmet patient 
needs and we have one global business 
development team that searches for 
valueadded therapeutics that fit our 
strategic focus
the reorganization of shire is well 
advanced with some final internal 
systems and processes to be concluded 
over 2014 we will however always seek 
to adopt new approaches and structures 
in the pursuit of continuous improvement 
and delivery of growth
changing the way we manage 
the company
we also changed the way we manage the 
business – reconstituting the executive 
committee formerly known as the 
leadership team as well as establishing 
two new management committees – the 
inline committee and the pipeline 
committee the executive committee 
manages the business of the shire group 
the inline committee is responsible for 
ensuring the optimal performance of our 
current portfolio of marketed products 
the pipeline committee is responsible for 
overseeing and driving the development of 
our pipeline of future products as a result 
we have been better able to enhance sales 
and address performance of our inline 
products and also consider our pipeline 
investments and business development 
strategy on a shirewide basis
reducing costs
significant cost savings are coming from 
our much simpler more streamlined 
integrated organization this has enabled 
us to direct our investment into the areas 
that we believe will provide growth for the 
company in the future
delivering efficient growth
additionally we have been able to 
streamline decision making so we can 
make faster decisions with a more acute 
focus on customers in our neuroscience 
one shire 
reorganization
well underway
resetting  
our cost  
base
growth in 
the short and 
long term
inline pipeline
inline drive optimum 
performance from our currently 
marketed products
pipeline build our future 
assets through both rd and 
business development
wwwshirecom annual report 2013 shire plc 07
strategic report
governance financial statements other information the premacure ab “premacure” 
acquisition brought us a phase 2 protein 
replacement therapy for the prevention 
of rop  a rare and potentially blinding eye 
disorder that primarily affects premature 
babies rop is one of the most common 
causes of visual loss in childhood and 
there are only symptomatic treatments 
available 
our move into ophthalmology was 
enhanced by the acquisition of sarcode 
bioscience inc “sarcode” sarcode 
brought us lifitegrast shp606 in phase 3 
development for the treatment of dry eye 
disease a chronic and potentially 
debilitating ocular disease the worldwide 
market for dry eye disease was worth 
15 billion
1
 in 2012 and is growing we 
announced topline data from a phase 3 
clinical trial and were pleased to meet the 
primary symptom endpoint although the 
primary sign endpoint was not met this 
is the first drug to show a statistically 
significant improvement in the prespecified 
symptoms of dry eye disease in a phase 3 
clinical trial we will be discussing these 
findings with the food and drug 
administration “fda” and hope in due 
course to be able to make lifitegrast 
available to patients with this potentially 
debilitating condition
towards the end of the year we 
announced a significant strategic 
acquisition of the high growth rare 
disease biopharmaceutical company 
viropharma for approximately 42billion 
the acquisition brought us a new growth
driving product cinryze used for the 
prophylactic treatment for hereditary 
angiodema hae complementing shire’s 
firazyr which is used for the treatment 
of acute hae attacks the acquisition also 
brought us other inline and pipeline 
assets in addition to enhancing both 
shire’s immediate and long term growth 
prospects the acquisition is also expected 
to bring significant cost synergies
1 
source team analysis evaluate pharma
making the most of existing assets
as well as focusing on finding and 
acquiring great new assets and 
opportunities for shire we also work 
hard to make the most of our existing 
assets whether by taking them into new 
countries or by exploring and developing 
new uses for them take for example 
lisdexamfetamine dimesylate “ldx” 
as the active ingredient in vyvanse 
our treatment for adhd in the us we 
are exploring the very real potential for 
ldx to form the basis of treatment for 
binge eating disorder bed estimates 
suggest there are around three million 
patients with bed in the us this is a 
huge unmet need with no currently 
approved pharmacologic treatment 
positive results in phase 3 bed trials 
in 2013 underline the great potential of 
this new use for ldx we are currently 
discussing the next steps with the fda
in line with our strategy to prioritize 
investments that have the greatest 
strategic clinical and commercial value in 
january 2014 we sold our dermagraft 
assets to organogenesis inc despite 
great efforts we could not generate the 
growth in sales that we expected from 
this product as a result of this transaction 
we are now able to concentrate our 
investment and resources on products 
and pipeline programs that have better 
profitability and growth prospects
continuing to change
if you look at the history of shire over 
the past 25 years we have always been 
a fast growing adaptive company shire 
continues to evolve never stands still and 
we strive to surprise positively this ability 
to embrace and incorporate change is key 
to our success it is in our dna
chief executive officer’s 
review continued
business unit for example we have 
restructured and reinvested in our sales 
force in the us to help provide better 
service to physicians 
as a result of strong product sales 
growth and reducing costs our bottom 
line profitability has improved reflecting 
our focus on delivering efficient growth
focusing our innovation
we have restructured our rd 
organization into one innovationdriven 
team in our early stage research we 
have committed to focus on rare diseases 
where there is significant unmet need 
and where we have strong expertise 
our current pipeline has a very promising 
range of late stage assets and we will 
seek to add to these through business 
development by aligning our efforts and 
investments on fewer areas with greater 
potential we aim to be more efficient 
and effective in developing our portfolio 
of distinctive and innovative products in 
our chosen areas of specialization
acquiring great new assets
we announced four acquisitions in 2013 to 
further strengthen our pipeline and inline 
portfolio these all fit our growth strategy 
by adding to our strength in specialized 
or rare diseases
with lotus tissue repair premacure and 
sarcode biosciences we have exciting 
new assets in areas of unmet patient need 
with significant growth opportunities 
lotus tissue repair inc “lotus tissue 
repair” is developing the first and 
currently only protein replacement therapy 
for the treatment of deb a devastating 
orphan disease for which there is no 
currently approved treatment option other 
than palliative care the product is in late 
preclinical development and has the 
potential to be a firstinclass systemic 
therapy for the treatment of deb 
08 shire plc annual report 2013 wwwshirecom putting patients at the heart of our 
business
a core aspect of shire is our very real 
focus on patients like change it has 
always been part of what makes us 
special when we try to be great in a 
specialized area the first thing we look at 
is the patient are there significant unmet 
patient needs do we truly understand 
these patients do we have the product 
or potential product to meet their needs 
putting patients at the heart of our 
business has always been our guiding 
principle it is why there are pictures of 
patients around our offices everywhere 
and it is reinforced by our enduring culture 
of striving to be as brave as the patients we 
serve our brave culture is integral to the 
way we attract and retain great people it 
keeps the company fresh and engaged 
and it plays a major part in our people’s 
remarkable ability to continue to deliver 
results while also focusing on changing 
for the future
our people
i would like to take this opportunity 
to thank everyone in shire for their 
tremendous contribution this year and 
for their amazing willingness to embrace 
change for the better
after almost six years at shire graham 
hetherington is stepping down as chief 
financial officer cfo on march 1 2014 
we are grateful for graham’s many 
contributions to the company and wish 
him all the best shire’s senior vice 
president and group financial controller 
james bowling will be interim cfo and 
we are undertaking the global search for 
graham’s successor
evolving the business
this year we have undergone another 
evolution in shire we have increased 
our focus on developing and marketing 
innovative specialty medicines to meet 
significant unmet patient needs and we 
have simplified and streamlined to reset 
our cost base and accelerate our growth 
we now have a sharper stronger shire – 
a shire that is well set for high growth 
both in the top and bottom line in the 
years ahead we will focus on even more 
specialty even more rare diseases even 
more targeted conditions where we can 
lead the way in developing and delivering 
treatments for patients
investors have responded well to the 
changes and we were pleased with the 
steady and significant increase in shire’s 
share price during 2013 we are grateful 
to our shareholders for their continued 
support as we continue to do everything 
we can to build the success and grow 
the value of shire 
focusing on growth
where 2013 was essentially a year of 
evolution we expect that 2014 will above 
all be a year of growth we now have 
a sharper focus and a stronger more 
streamlined organization together with 
our brave culture and unswerving 
commitment to patients with specialized 
conditions 
boosted by this firm foundation we will 
focus on growth – through our existing 
inline products through our pipeline of 
potential products and through identifying 
and maximizing all the opportunities that 
lie ahead i look forward to another 
exciting year for shire
dr flemming ornskov
chief executive officer
wwwshirecom annual report 2013 shire plc 09
strategic report
governance financial statements other information  
financial highlights
shire has delivered excellent 
financial results in 2013 and 
now has the foundations in 
place for further future growth 
48bn
product sales

5300
1
people 

30
1
countries
1734m
us gaap 
operating income
2
 
66
2013
2011
2012
total revenues
1
  ’bn
42
45
49
2013
2011
2012
non gaap ebitda ’bn
15
16
19
2013
2011
2012
non gaap adjusted roic 
growth
 
127
138
156
1 
as at december 31 2013
2 
continuing business results exclude dermagraft
wwwshirecom  
 
 
 
where we are
2013 employment by country 
as at december 31 2013
major sites
local operating companies
inline
our currently marketed 
products to meet the 
needs of patients today and 
maximize revenue growth
see page 14
pipeline
the innovative products 
we are developing to 
meet patients’ significant 
unmet needs
see page 16
employees by geographic region
l usa 69
l europe 25
l latin america 3
l all other geographies 3
wwwshirecom annual report 2013 shire plc 11
strategic report
governance financial statements other information w
year in review
june
• mark enyedy appointed as leader of 
internal medicine business unit
 
more online at 
ar2013shirecom
july
• kim stratton appointed as head of 
international commercial
 
february
• elvanse receives uk marketing 
authorization providing a new 
option for the treatment of adhd in 
children and adolescents in the uk
january
• rare diseases pipeline enhanced 
with the acquisition of lotus tissue 
repair which is developing a protein 
replacement therapy for the 
treatment of dystrophic 
epidermolysis bullosa 
“ our growth strategy  
is to focus on developing  
and marketing innovative 
specialty medicines”
october
• fourth annual scholarship 
program for individuals  
with adhd launched
• dominic blakemore 
announced as  
nonexecutive director
march
• latestage pipeline enhanced with 
the acquisition of premacure which 
is developing a phase 2 protein 
replacement therapy for the 
prevention of rop 
wwwshirecom 12  w
september
• perry sternberg appointed as head 
of the neuroscience business unit
• john neeley appointed as head of 
global market access
october
• phil vickers 
appointed as 
shire’s head of 
research 
and development
april
• phase 2 studies commence evaluating 
vascugel in patients with endstage 
renal disease undergoing arteriovenous 
access creation for hemodialysis
• flemming ornskov appointed 
chief executive officer
february
• vpriv wins first ever ‘novel treatment 
award’ from lysosomal disease 
network at the 9th world symposium
december
• opus2 topline results a phase 3 study 
investigating the use of lifitegrast shp 606 
50 ophthalmic solution in adults with  
dry eye disease
may
•  vyvanse capsules approved  
in the us for maintenance 
treatment in children and 
adolescents with adhd
• flemming ornskov md ceo sets 
out his strategy for shire’s future 
and outlines a realignment of its 
business structure to drive future 
growth and innovation
• bill ciambrone appointed head  
of technical operations
november
• positive topline results shown for vyvanse 
capsules in adults with binge eating disorder 
• viropharma acquisition announced to 
strengthen rare diseases portfolio
august
• marianne jackson 
appointed as head  
of global commercial 
operations
march
• sarcode acquisition brings shire a new 
phase 3 compound being investigated 
for dry eye disease
wwwshirecom annual report 2013 shire plc 13
strategic report
governance financial statements other information  
year on product growth ’m
 2013   2012  
lialda
mezavant
vyvanse
elaprase
replagal
adderall xr
vpriv
intuniv
pentasa
firazyr
forsrenal
xagrid
other
19
10
32
6
12
12
16
6
102
7
2
11
our four business units
internal medicine
rare diseases
neuroscience
gastrointestinal
at a glance inline
double digit product 
sales growth in 2013
strategy
our strategy describes how we will 
achieve our vision
our strategy is to grow our business 
and deliver value to our stakeholders 
by focusing on significant unmet 
patient needs in specialist areas and 
providing more innovative treatments 
to more patients
see page 18
business model
we implement our strategy through 
our business model it is our structure 
for success and drives our growth
during 2013 we unified our business 
– our one shire model has created a 
simple structure and focused efficient 
organization that is scalable for growth
see page 18
14 shire plc annual report 2013 wwwshirecom a dh d hunter syndrome ulcerative colitis
1228m
2012 1030m
546m
2012 498m
529m
2012 400m
vyvanse product sales grew strongly 
19 in 2013 primarily as a result of 
price increases as well as higher 
prescription demand due to growth 
in the us adhd market 6 and 
vyvanse’s share of that market
reported elaprase sales growth 
10 was driven by an increase in 
the number of patients on therapy 
the increase in elaprase sales 
between q3 and q4 of 2013 was 
partly driven by the timing of certain 
large orders from markets which 
order less frequently
the growth in product sales for 
lialdamezavant 32 in 
2013 was primarily driven by higher 
market share in the us the effects 
of which were partially offset by 
higher sales deductions in 2013 
as compared to 2012
fabry disease adhd gaucher disease
468m
2012 497m
375m
2012 429m
343m
2012 307m
replagal sales were down 6 
compared to 2012 down 4 on a 
cer basis as sales in 2013 were 
impacted by foreign exchange pricing 
pressure primarily in europe and 
slightly lower volumes due to the return 
of competition to the fabry market 
adderall xr product sales 
decreased 12 in 2013 as a result 
of higher sales deductions partially 
offset by the effect of higher stocking 
in 2013 compared to 2012
reported vpriv sales growth of 
12 was driven by an increase in 
the number of patients on therapy 
adhd ulcerative colitis hereditary angiodema
335m
2012 288m
281m
2012 266m
235m
2012 116m
intuniv product sales were up 16 
compared to 2012 driven by growth 
in us prescription demand up 9 
compared to 2012 together with 
price increases these positive factors 
were partially offset by higher sales 
deductions in 2013 compared to 2012
pentasa product sales were up 
6 as the benefit of price increases 
was partially offset by higher sales 
deductions in 2013 as compared 
to 2012
firazyr sales growth 102 
compared to 2012 was primarily 
driven by the us market where we 
continue to see both good growth in 
new patients and increased levels of 
repeat usage by existing patients
wwwshirecom annual report 2013 shire plc 15
strategic report
governance financial statements other information  
at a glance pipeline
discovery  
preclinical
phase  
one
phase  
two
phase  
three
registration  
phase four
  d i s c o v e r y  
and preclinical 
assets focused 
on rare 
diseases
  
shp611 
mld
1
  
cinryze iv 
low vol 
hae prophylaxis
  
cinryze sc
4
 
hae prophylaxis
  
vp20629 
friedreich’s ataxia
  
ldx japan  
adhd
  
shp602  
ferrokin 
iron overload
  
shp613  
acute vascular  
repair
  
shp607  
premiplex
®
  
prevention of rop
  
shp609 
hunter cns
  
shp610  
sanfilippo a
2
  
maribavir  
cmv in transplant 
patients
  
shp606 
lifitegrast  
dry eye disease
  
ldx 
bed
  
firazyr  
ace inhibitor 
induced ae
  
intuniv
® 
eu  
adhd
  
shp555 us  
chronic  
constipation
3
  
intuniv 
japan 
adhd
  
xagrid
®
  
japan 
essential  
thrombocythaemia
  
vpriv japan  
gaucher
notes

 
 lisdexamfetamine dimesylate active ingredient  
in vyvanseelvanse
1 
shp611 is currently in a phase 12 clinical trial
2 
 shp610 has completed its phase 12 clinical trial  
and preparation is underway for a phase 2b trial
3 
discussions are planned with the fda to 
determine potential clinical development 
pathways
4 
subcutaneous formulation
strong  
innovative pipeline 
our current pipeline has a very 
promising range of late stage assets 
and we will seek to add to these 
through business development 
16 shire plc annual report 2013 wwwshirecom  
2014
multiple pipeline 
milestones expected
  intuniv eu 
maa submission
  v y v a nse 
head to head versus 
concerta phase 4 data
  s h p 6 02 
phase 2b iron overload 
headline data study 
203
  m a r ib a v ir  
phase 2 headline 
data
  shp607 rop 
phase 2 headline 
data
  shp613 avf 
phase 2 headline 
data
2015
wwwshirecom annual report 2013 shire plc 17
strategic report
governance financial statements other information  
strategy
vision
inline pipeline
innovation excellence support
culture governance
our vision
our vision is to transform the lives 
of people around the world whose 
health is impacted by rare and other 
specialized conditions through 
providing innovative treatments 
we bring this vision to life through 
our strategy and business model
our strategy
our strategy describes how we will 
achieve our vision
our strategy is to grow our business 
and deliver value to our stakeholders by 
focusing on significant unmet patient need 
in specialist areas and providing more 
innovative treatments to more patients
our business model
we implement our strategy through 
our business model it is our structure 
for success and drives our growth
during 2013 we unified our business 
– our one shire model has created a 
simple structure and focused efficient 
organization that is scalable for growth
strategy and business model
we are focused on growing shire by 
developing and marketing innovative 
specialty medicines that address 
significant unmet patient needs
inline
our currently marketed 
products to meet the 
needs of patients today and 
maximize revenue growth
see page 14
pipeline
the innovative products 
we are developing to 
meet patients’ significant 
unmet needs
see page 16
18 shire plc annual report 2013 wwwshirecom  
to deliver this we
• serve patients with high unmet needs in 
select commercially attractive specialty 
therapeutic areas
• drive optimum performance of our 
inline marketed products – to serve 
patients today
• build our pipeline of innovative treatments 
through both research and development 
“rd” and business development 
activities – to enable us to serve patients 
in the future
• concentrate our rd capabilities on 
the development of innovative specialist 
medicines 
commercial excellence
we have four business units that focus 
exclusively on the commercial execution 
of our inline products in our specialist 
therapeutic areas rare diseases 
neuroscience gastrointestinal and 
internal medicine this ensures we 
provide innovative treatments and 
service the needs of our customers 
and patients as efficiently as possible
innovation
we have moved to a single rd 
organization that focuses on developing 
our pipeline of innovative treatments to 
address unmet patient needs this 
ensures we prioritise the treatments 
we focus on to ensure they have the 
highest chance of clinical success and 
are aligned with our priority therapeutic 
areas and potential new areas such as 
ophthalmology and hematologyoncology 
our early stage research is primarily 
focused on rare diseases
our growth is also fueled by the acquisition 
of new compounds and marketed 
products shire’s global business 
development team searches the industry 
for valueadded therapeutics that fit our 
strategic focus and address patients’ 
unmet needs the team is engaged in 
conversations with scientists and 
entrepreneurs all around the world while 
collaborating daily with commercial and 
rd experts throughout shire 
support
our support functions including technical 
operations are unified across the 
business to ensure we support our inline 
and pipeline activities as efficiently and 
effectively as possible 
one way of working 
we lead our business through our 
executive committee which supported 
by our inline and pipeline committees 
ensures we allocate resources and make 
decisions across the enterprise in the best 
interests of one shire our patients 
shareholders and other stakeholders
our unified way of working means we can 
quickly adapt to focus our resources 
where the greatest opportunities exist
one culture
we have a clear and strong patient
focused culture where we all strive 
to be brave
bold we have the courage to lead 
the way
resilient we are agile and adaptable 
to meet the changing needs of our 
stakeholders
accountable we deliver on our 
promises to all of our stakeholders
visionary we fearlessly innovate 
to address unmet patient need
ethical we do the right thing in the 
right way
our culture comes to life through our 
employees who together form one shire 
we value and invest in our employees 
to ensure they have the capabilities 
and support to implement our strategy 
achieve our vision and deliver value to 
our patients payors and shareholders
wwwshirecom annual report 2013 shire plc 19
strategic report
governance financial statements other information responsibility
we are committed to 
demonstrating responsibility 
throughout shire
responsibility at shire
our vision is to transform the lives of people 
around the world whose health is impacted 
by rare and other specialized conditions by 
providing innovative treatments to this end 
we ground everything we do in our brave 
values – to be bold resilient accountable 
visionary and ethical this underpins our 
approach to responsibility and ultimately 
how we strive to develop novel treatments 
to serve patients and to create enduring 
value for stakeholders
responsibility at shire has always been 
embedded in our business – we have never 
separated it from our daily business 
activities decisions and relationships
  more online at  
wwwshirecomcr
taking an ethical and responsible 
approach in the best interests of our 
patients underpins everything we do 
we see this in the programs and activities 
designed to improve access to our rare 
disease medicines where they aren’t 
currently available in our efforts to raise 
awareness among physicians and parents 
of the signs of many rare and specialist 
diseases and provide the extra support 
often required with this type of diagnosis 
in our work with policy makers to raise 
awareness of the serious social impact 
of untreated adhd on families education 
and the criminal justice system and 
through our campaign in the us to 
discourage the misuse abuse and 
diversion of adhd medications
we are proud of the progress we are 
making but are not complacent we know 
there is more we can and will do we will 
continue to strive towards greater 
transparency of our policies goals and our 
progress towards those goals we will 
continue to work with governments policy 
makers and payors to improve access to 
treatments in both developed and 
developing countries and we will continue 
to invest in developing and marketing new 
treatments where the need is great and 
our skills and experience are most relevant
wwwshirecom core areas of focus 
while responsibility at shire covers a wide 
range of topics and areas – including the 
environment community involvement 
and our people – our stakeholders have 
emphasized that there are two primary 
areas where they believe we have the 
greatest responsibility access to 
medicines and disease awareness 
access to medicines
access to treatment for those with rare 
or specialist conditions can be a big 
challenge even in developed parts of 
the world such as north america and 
western europe shire’s rare disease 
impact report revealed that it takes more 
than seven and a half years in the us to 
receive a proper diagnosis of a rare 
disease – it isn’t difficult to see how much 
longer this might be in less developed 
parts of the world some 7 000 rare 
diseases have been identified and 
treatment exists for less than 5 
for those with rare and specialist 
conditions improving access is largely 
about continuing to focus on developing 
new treatments for unmet patient needs 
where there is currently little hope as a 
result we view the development of orphan 
drugs and treatments for other specialist 
conditions with significant unmet needs 
as a core responsibility in itself 
other ways to improve access involve 
reducing barriers such as affordability and 
geographic access for our existing 
treatments we have several programs to 
assist patients with affordability challenges 
in the us outside the us we have named 
patient programs to provide products to 
patients where they might not otherwise 
be available for countries where we have 
no commercial presence and there is no 
reimbursement we have a charitable 
access program administered by our ngo 
partner direct relief in conjunction with an 
independent medical expert committee 
we also have a longstanding relationship 
with americares donating medicines to 
people in need in poorer countries around 
the world these are just some of the ways 
we are working to provide hope to patients 
with few if any treatment options
disease awareness
disease awareness is especially important 
for shire because the conditions our 
products treat are often extremely rare 
or not well understood without the 
appropriate level of awareness conditions 
often remain undiagnosed to the detriment 
of the patient their family the health care 
system and society we believe that 
creating fact and evidencebased 
awareness of these conditions is key to 
enabling proper diagnosis and treatment 
we aim to share our expertise and provide 
balanced reliable and scientifically sound 
information to help improve understanding 
and appreciation of difficult and lifealtering 
conditions we do this in a variety of ways 
for example by sponsoring new research 
and conducting educational work with 
doctors patients and policy makers
we have a crossfunctional working 
group that convenes quarterly to share 
and encourage best practice and explore 
ways to improve how we can create 
awareness in the most effective and 
responsible manner
other areas of focus
diversity
our success continues to be driven by our 
diverse employee talent around the world 
we value all genders ages cultures 
experiences and backgrounds as we build 
and grow our global organization shire is 
an equal opportunity employer and strives 
to ensure that there is no discrimination 
against anyone applying for a job or in 
employment for reasons related to race 
religion national origin gender disability 
or on any other personal characteristic 
we do not have diversity targets or quotas 
and we do not focus exclusively on one 
group of employees over and above any 
other group of employees however 
we do focus very strongly on fostering 
our brave culture which aims to provide 
all our employees with a supportive work 
environment that values diverse opinions 
and experiences and enables individual 
group and organizational success 
in 2013 we communicated our diversity 
and inclusion philosophy statement to 
employees and on shirecom 
shire senior managers gender split 
as at december 31 2013
l male 149
l female  57
shire plc directors gender split 
as at december 31 2013
l male 8
l female 2
overall gender breakdown 
as at december 31 2013
l male 2736
l female 2600
wwwshirecom annual report 2013 shire plc 21
strategic report
governance financial statements other information having a diverse workforce is only half the 
equation – the benefit to our employees 
our patients our business and society 
comes from the respect consideration 
and inclusion of these different views into 
our work every day our growing global 
reach gives us the opportunity to bring to 
our business and for the benefit of our 
patients greater depth of experiences and 
capabilities beyond our immediate 
workforce we also have a supplier 
diversity program in place in the us which 
provides opportunities for minority or 
disabled and veteranowned businesses 
more than 10 of shire’s total 2013 us 
spend was in support of these businesses 
in all hiring and employment practices 
shire is committed to ensuring that it 
does not discriminate against qualified 
individuals who have a disability the 
company further asserts its commitment 
to fair treatment and reasonable 
accommodation of applicants’ or 
employees’ disabilities in accordance 
with all applicable laws in the respective 
locations of all shire facilities 
our people
as of december 31 2013 shire employed 
over 5000 talented people with operations 
in 31 countries we promote the best use 
of our human resources on the basis of 
individual skills and experience matched 
against those required for the work to be 
performed and actively seek out a 
diversity of views and experiences
we believe we are better able to achieve 
our goals and continuously improve by 
supporting a strong performance culture 
while many factors contribute to this 
research has shown that the most 
important factor in performance is an 
employee’s relationship with his or her 
manager that’s why we have devoted 
considerable resources to help our 
managers be the best they can be this 
includes a dedicated online resource 
center for managers which provides 
critical support tips and elearning 
opportunities this tool is supplemented 
by facetoface and group opportunities 
to learn how to 1 manage performance 
2 develop people and 3 foster a brave 
culture – also known as the ‘three 
expectations of people managers’– for 
which all shire people managers are 
accountable our pay for performance 
philosophy provides managers with a 
variety of programs to recognize and 
reward employee contributions and our 
employee share purchase plans enable 
employees to have a ‘vested’ interest in 
the success of the business
driving performance requires a clear 
understanding of where we are heading 
and this happens at every level of the 
business – from the oneonone 
performance discussions between 
managers and employees to the all
employee meetings held at many of 
our major sites shire communicates 
with all employees via an active internal 
communications program which included 
the launch of a new global intranet in 2013 
designed to promote greater engagement 
and dialog the new intranet enables 
more effective and efficient twoway 
communication with the introduction 
of social features including a ceo blog 
and regular live ceo chats other 
communications include allemployee 
emails from the ceo our own social 
networking platform known as shiral 
and quarterly leadership briefings 
and cascades 
our planet
shire is committed to operating a 
sustainable organization that protects 
our employees the environment and 
the communities where we conduct 
our activities we are committed to 
demonstrating respect for the individual 
and the environment we firmly believe that 
effective environmental management is 
a key component in achieving excellent 
company performance and making shire 
a worldclass organization and responsible 
corporate citizen 
we strive to conserve resources and 
minimize adverse environmental impacts 
and risks that may be associated with our 
products facilities and operations we are 
committed to promoting the sustainable 
and efficient use of natural resources 
waste minimization recycling energy 
efficiency and responsible product 
stewardship in our business activities 
we have implemented key components 
of a health safety and environmental 
management system for our operations 
responsibility
continued
ethnic minorities usa  
as at december 31 2013
l minority 23
l nonminority 77
2013 employment by country  
as at december 31 2013
l us 69
l uk  9
l switzerland  4
l ireland  2
l all other geographies 16
22 shire plc annual report 2013 wwwshirecom which are compatible with the international 
standards ohsas 18001 and iso 14001 
our health safety and environmental team 
continually work to improve this system 
while shire is a global company most 
environmental impacts from our facilities 
are local so we believe the impacts 
are most effectively addressed locally 
we therefore focus on setting local 
sitespecific goals rather than global 
goals to reduce our impacts at shire 
we continuously strive to do the right thing 
and at each of our facilities our staff work 
to identify and implement projects to 
reduce our environmental impacts 
shire’s reporting of its greenhouse 
gas emissions ghg is outlined in 
the table below 
human rights
we support the un universal declaration 
of human rights httpwwwunorgen
documentsudhr and recognize the 
obligation to promote universal respect 
for and observance of human rights and 
fundamental freedoms for all without 
distinction to sex age race religion or 
any other characteristic protected by law
of paramount importance we safeguard 
the human rights of those taking part in our 
clinical trials which is primarily achieved 
through the process of informed consent 
shire adheres to the international 
conference on harmonization ich good 
clinical practice gcp guidelines in 2013 
we summarized and posted on shirecom 
our approach to clinical trials which makes 
explicit reference to the rights and 
protection of clinical trial participants
we are committed to the protection of the 
human rights of our employees in our 
offices and manufacturing facilities around 
the world we recognize that commercial 
success depends on the full commitment 
of all our employees and commit to 
respecting their human rights to provide 
them with safe and favorable working 
conditions that are free from unnecessary 
risk and to maintain fair and competitive 
terms and conditions of service at all times 
we seek to comply fully with all relevant 
laws rules and regulations governing labor 
employment and the employment 
relationship in all of the countries where 
shire does business 
we commit to the principles articulated in 
the international labor organization’s ilo 
“declaration on fundamental principles 
and rights at work” which includes the 
following four major principles 1 freedom 
of association and the effective recognition 
of the right to collective bargaining 
2 elimination of all forms of forced or 
compulsory labor 3 abolition of child 
labor and 4 elimination of employment 
discrimination
we also commit to the protection of 
human rights of our partners and 
suppliers and in turn expect them to do 
the same in their operations and to their 
employees around the world we do this 
through a regular and systematic audit 
of our suppliers and our responsible 
supply chain policy explicitly states our 
expectations of suppliers to uphold the 
ilo principles this policy can be found 
on our website shirecom 
organizing for greatest effect
we have more than a dozen internal 
responsibility leaders who serve as 
“sponsors” for focus areas such as 
the environment our people and the 
community the sponsors are responsible 
for setting goals which support our 
overall strategy ensuring progress and 
maintaining high standards they include 
senior representatives from legal rd 
human resources environment health 
 safety compliance and risk 
management facilities corporate 
communications and public affairs in 
addition we have three working groups 
in the areas of clinical trials access to 
medicines and disease awareness each 
looking to improve our programs and 
approaches our responsibility steering 
and communications group rscg 
facilitates the activities of the working 
groups oversees communications and 
works with sponsors our approach to 
responsibility is championed by our ceo 
supported by the executive inline and 
pipeline committees and endorsed by 
our board
staying close to our stakeholders
we recognize the importance of seeking 
external input from key stakeholders such 
as patients physicians and others to 
understand what is most important to 
them and regularly consult and engage 
with them on these important areas 
during the year we engaged with investors 
patient groups and policy makers on a 
range of issues including our environmental 
approaches and disclosure our approach 
to clinical trials our role in ensuring the 
appropriate use of our adhd products 
philanthropy and access to medicines 
sharing and improving
we communicate widely and regularly 
on responsibility with all our stakeholders 
through our biannual publication 
responsibility matters our intranet 
and on our website shirecom we’re 
always interested to hear feedback 
and suggestions on how we can be 
an even more responsible organization
greenhouse gas assessment parameters
baseline year fy 2013
consolidation  
approach
operational control
boundary summary all facilities with emissions greater than 1 of the overall footprint were 
included in the scope 1 and 2 reporting of emissions from natural gas and 
electricity all global fleet fuel usage is included emissions from dieselfuel 
oil generators are less than 1 of total footprint and are excluded scope 3 
only includes business air travel which is significant enough to warrant 
inclusion in our annual report though not required by law
consistency with 
the financial 
statements
any facility with less than 1 of overall emissions is excluded from the 
reported inventory
assessment  
methodology
greenhouse gas protocol and iso 140641 2006
intensity ratio ghg emissions per unit revenue
greenhouse gas emission source 2013
tco
2
e
1
intensity metric tbd
scope 1
2
28554
scope 2 24855
total scope 1  2 53399 108
scope 3 18579
total emissions
3
 71978 146
1
  ghg emissions reported in metric tonnes of carbon dioxide equivalents
2
  for scope 1 fleet usage 2012 fleet data was used to approximate fleet emissions for spain and france 
due to data availability for sweden and ireland novdec 2013 fleet usage was extrapolated based on 
average monthly 2013 usage
3
  emissions factors were sourced from uk’s defra database the climate registry the wri ghg protocol 
calculation tools and the usa’s epa’s climate leaders and egrid emission factors
wwwshirecom annual report 2013 shire plc 23
strategic report
governance financial statements other information principal risks and uncertainties
risk management internal 
governance framework
•  the audit compliance  
 risk committee “acr”
monitors the effectiveness of the risk management 
process and the internal control structure
•  b oa r d
established a risk governance framework  
and ensures the acr committee has the  
resources to fulfill its role
• internal audit  other  
assurance functions
provides an independent assurance to the ec  
and acr committees that the risk management and 
internal control environment is operating effectively
• global compliance  risk  
managementrisk council “gcrm”
facilitates and supports the enterprise risk  
management process
• business units   
corporate functions
implements a risk management process and 
establishes internal controls within their respective 
organizations
• the executive committee “ec”
ensures that an effective risk management  
process and a robust internal control structure  
are implemented
the company has adopted a risk 
management strategy designed to identify 
assess and manage the significant risks 
that it faces while the company aims to 
identify and manage such risks no risk 
management strategy can provide 
absolute assurance against loss
mitigation of principal risks
the management and mitigation of risks 
are a key focus of the board which 
together with the audit compliance  risk 
“acr” committee reviews risks impacting 
the company on a timely basis as they 
arise as well as periodically in addition 
the company has established a risk 
council which is supported by the global 
compliance and risk management 
“gcrm” department to oversee 
the management and mitigation of the 
principal risks faced by the company 
as set out below the risk council and 
the gcrm department are respectively 
chaired and managed by the chief 
compliance and risk officer 
risk council
the risk council’s membership includes 
senior members of the company’s 
business units and corporate functions in 
addition to the head of internal audit it is 
charged with overseeing the company’s 
risk management process and activities 
and as such ensures that each business 
unit and corporate function periodically 
reviews the significant risks they face in 
accordance with an approved framework 
this review which occurs biannually 
includes identifying operational risks 
compliance risks and risks to the 
achievement of goals and objectives 
the risk council ensures that there is 
an owner who is responsible for the 
management or mitigation of each 
identified risk material risks and 
associated mitigation plans are recorded 
on a corporate risk schedule for ongoing 
review and assessment by the risk 
council which is also reviewed and 
validated by the executive committee 
in addition the risk schedule is reviewed 
biannually by the acr committee and 
annually by the board
24 shire plc annual report 2013 wwwshirecom gcrm
the gcrm department is responsible for 
supporting the development and 
implementation of practices that facilitate 
employees’ compliance with laws and 
company policy the principal focus of the 
department’s compliance effort is to 
prevent and detect misconduct or 
noncompliance with laws or regulations 
through the promotion of ethical behavior 
policy development appropriate training 
monitoring and audit the gcrm 
department provides assistance to help 
employees meet high ethical standards 
and comply with applicable laws and 
regulations encouraging them to seek 
help and to report suspected cases of 
misconduct without fear of retaliation 
further details are available on page 61
chief compliance and risk officer
the chief compliance and risk officer 
who reports directly to the chief executive 
has access at all times to the chairman of 
the acr committee which provides a 
mechanism for bypassing executive 
management should the need arise in 
addition the acr committee is regularly 
provided with summary reports on the 
risk council and general compliance 
activities 
risk factors
set out below are the company’s key risk 
factors that have been identified through 
the implementation of the company’s risk 
management strategy some of these risk 
factors are specific to the company and 
others are more generally applicable to the 
pharmaceutical industry or specific 
markets within which the company 
operates the company considers that 
these risk factors apply equally and 
therefore all should be carefully considered 
before any investment is made in shire
risk factors related to the 
company’s business 
the company’s products may not be 
a commercial success
the commercial success of the company’s 
marketed products and other new 
products that the company may launch 
in the future will depend on their approval 
and acceptance by physicians patients 
and other key decision makers as well 
as the receipt of marketing approvals in 
different countries the time taken to obtain 
such approvals the scope of marketing 
approvals as reflected in the product labels 
approval of reimbursement at commercially 
sustainable prices in those countries where 
price and reimbursement is negotiated 
and safety efficacy convenience and 
costeffectiveness of the product as 
compared to competitive products
the company’s revenues financial 
condition or results of operations may 
be adversely affected if any or all of the 
following occur 
• if the company’s products or competitive 
products are genericized 
• if the prices of the company’s products 
suffer forced reductions or if prices of 
competitor products are reduced 
significantly 
• if there are unanticipated adverse events 
experienced with the company’s 
products or those of a competitor’s 
product not seen in clinical trials that 
impact physicians’ willingness to 
prescribe the company’s products 
• if issues arise from clinical trials being 
conducted for postmarketing purposes 
or for registration in another country 
which raise questions or concerns about 
a product
• if the regulatory agencies in one country 
act in a way that raises concerns for 
regulatory agencies or for prescribers 
or patients in another country
• if patients payors or physicians favor 
other treatments over the company’s 
products
• if the company’s products are subject 
to more stringent government regulation 
than competitor products 
• if patent protection or other forms of 
exclusivity are lost or curtailed or if 
competitors are able to challenge or 
circumvent the company’s patents or 
other forms of exclusivity see note 19 to 
the consolidated financial statements set 
forth in this annual report for details of 
current litigation
• if launch of the company’s products in 
new markets is not successful 
• if the sizes of the patient populations for 
the company’s products are less than 
expected or
• if there are lawsuits filed against shire 
including but not limited to product 
liability claims consumer law claims and 
payor or reimbursement litigation
if the company is unable to commercialize 
its products successfully there may be a 
material adverse effect on the company’s 
revenues financial condition or results of 
operations
revenues from adderall xr are 
subject to generic competition and 
revenues from intuniv will become 
subject to generic erosion starting in 
december 2014
during 2012 the fda clarified the 
regulatory pathway required for approval 
of generic versions of adderall xr 
consequently in june 2012 and february 
2013 actavis and teva respectively 
received approval to launch their own 
generic versions of adderall xr shire 
currently sells authorized generic versions 
of adderall xr to teva and impax and 
also continues to sell the branded version 
of adderall xr 
in 2013 shire settled a number of patent 
lawsuits in the united states against 
certain companies that had filed for 
approval of their generic versions of 
intuniv under the terms of the 
settlements actavis was granted a license 
to make and market actavis’ generic 
versions of intuniv in the united states 
on december 1 2014 all other parties 
with whom shire has settled will be able 
to enter the market with their respective 
andaapproved products after actavis’ 
180day exclusivity period has expired
revenues from adderall xr declined 
following the launch of actavis’ generic 
version of adderall xr revenues from 
intuniv are expected to decline as a 
result of the launch of actavis’ generic 
versions of intuniv and to decline further 
following the expected launch of generic 
versions of intuniv by other companies 
after actavis’ 180day exclusivity period 
expires 
factors which could cause further or more 
rapid revenue decline include
• generic or authorized generic versions 
of the company’s products capture 
more of shire’s branded market share 
than expected
• the fda approves additional andas for 
generic versions of the company’s 
products which if launched further 
reduce branded market share or impact 
the amount of authorized generic sales 
and related royalties 
• the production of adderall xr is 
disrupted by difficulties in obtaining a 
sufficient supply of amphetamine salts 
including but not limited to an inability 
to obtain sufficient quota from the dea
• there are changes in reimbursement 
policies of third party payors or 
• there are changes to the level of sales 
deductions for adderall xr and 
intuniv for private or public payors
the failure to obtain and maintain 
reimbursement or an adequate level 
of reimbursement by thirdparty 
payors in a timely manner for the 
company’s products may impact 
future revenues financial condition 
and results of operations
the company’s revenues are partly 
dependent on the level of reimbursement 
provided to the company by governmental 
reimbursement schemes for its products 
changes to governmental policy or 
practices could adversely affect the 
company’s revenues financial condition 
and results of operations in addition the 
wwwshirecom annual report 2013 shire plc 25
strategic report
governance financial statements other information reimbursement of treatments by health 
care providers private health insurers 
and other organizations such as health 
maintenance organizations and managed 
care organizations is under downward 
pressure and this in turn could adversely 
impact the prices at which the company 
can sell its products factors affecting 
the company’s ability to obtain and 
maintain adequate reimbursement for 
its products include
• higher levels of controls on the use of the 
company’s products andor requirements 
for additional price concessions by 
managed health care organizations 
or government authorities
• legislative proposals to reform health care 
and government insurance programs in 
many of the company’s markets and
• price controls unsuccessful government 
tenders or nonreimbursement of new 
medicines or new indications 
the cost of treatment for some of the 
company’s products is high particularly 
those which are used for the treatment 
of rare genetic diseases the company 
may encounter difficulty in obtaining or 
maintaining satisfactory pricing and 
reimbursement for such products the 
failure to obtain and maintain pricing and 
reimbursement at satisfactory levels for 
its products may adversely affect the 
company’s revenues financial condition 
or results of operations
the company conducts its own 
manufacturing operations for certain 
of its rare diseases products and is 
reliant on third party contract 
manufacturers to manufacture other 
products and to provide goods and 
services some of the company’s 
products or ingredients are only 
available from a single approved 
source for manufacture any 
disruption to the supply chain for any 
of the company’s products may result 
in the company being unable to 
continue marketing or developing a 
product or may result in the company 
being unable to do so on a 
commercially viable basis for some 
period of time 
the company sources some products 
from third party contract manufacturers 
and for certain products has its own 
manufacturing capability although the 
company dualsources certain key 
products andor active ingredients the 
company currently relies on a single 
source for production of the final drug 
product for each of adderall xr 
cinryze firazyr fosrenol 
intuniv lialda pentasa and 
resolor relies on a single active 
ingredient source for each of elaprase 
firazyr fosrenol intuniv 
replagal resolor and vpriv in 
the us and relies on limited third party 
sources to provide the donated human 
plasma necessary for the manufacture 
of cinryze 
the company may experience supply 
failures or delays beyond its control if it 
does not or if any of its third party 
manufacturers do not supply the company 
on time with the required volumes or 
supply products that do not meet 
regulatory requirements any such supply 
failures could lead to significant delays 
increase in operating costs lost product 
sales an interruption of research activities 
or the delay of new product launches all of 
which could have a material adverse effect 
on the company’s revenues financial 
condition or results of operations
the company has also entered into 
many agreements with third parties for the 
provision of goods and services to enable 
it to manufacture its products if these 
third parties are unable to manufacture 
products or provide these goods and 
services in each case in accordance 
with its respective contractual obligations 
the company’s ability to manage its 
manufacturing processes or to operate 
its business including to continue the 
development or commercialization of its 
products as planned or on a commercial 
basis may be adversely impacted
the development approval and 
manufacturing of the company’s 
products is subject to extensive 
oversight by various regulatory 
agencies and regulatory approvals 
or interventions associated with 
changes to manufacturing sites 
ingredients or manufacturing 
processes could lead to significant 
delays increase in operating costs 
lost product sales an interruption of 
research activities or the delay of new 
product launches
pharmaceutical and device manufacturing 
sites must be inspected and approved by 
regulatory agencies such as the fda and 
similar agencies in other countries active 
ingredients excipients and packaging 
materials used in the manufacturing 
process must be obtained from sources 
approved by regulatory agencies
the development approval and 
manufacturing of the company’s products 
depend on the ability to procure ingredients 
and packaging materials from approved 
sources and for the manufacturing process 
to be conducted at approved sites 
changes of manufacturer or changes of 
source of ingredients or packaging 
materials must generally be approved by 
the regulatory agencies which will involve 
testing and additional inspections to 
ensure compliance with the applicable 
regulatory agency’s regulations and 
standards the need to qualify a new 
manufacturer or source of ingredients or 
packaging materials can take a significant 
amount of time should it become 
necessary to change a manufacturer or 
supplier of ingredients or packaging 
materials or to qualify an additional 
supplier the company may not be able 
do so quickly or at all which could delay 
or disrupt the manufacturing process 
usbased manufacturers must be 
registered with the dea and similar 
regulatory authorities in other countries 
if they handle controlled substances 
certain of the company’s products 
including adderall xr and vyvanse 
contain ingredients which are controlled 
substances subject to quotas managed 
by the dea as a result the company’s 
procurement and production quotas 
may not be sufficient to meet 
commercial demand 
cinryze elaprase replagal and 
vpriv are manufactured using highly 
complex biological processes the 
complexity of the manufacturing results in a 
number of risks including the risk of viral or 
other contamination additionally cinryze 
is derived from human plasma and is 
therefore subject to the risk of biological 
contamination inherent in plasmaderived 
products the sole manufacturer of 
cinryze has received observations on 
form 483 and a warning letter from the 
fda identifying issues with respect to the 
manufacturing process for cinryze which 
must be addressed to the satisfaction 
of the fda any regulatory interventions 
in relation to these or any other issues 
if they occur may delay or disrupt the 
manufacture of the company’s products 
the company has made significant 
investments in a new biologics 
manufacturing plant at its site in lexington 
principal risks and uncertainties
continued
26 shire plc annual report 2013 wwwshirecom massachusetts the company’s ability to 
manufacture certain of its rare diseases 
products or constituents in this new facility 
remains subject to the approval of the 
facility by the fda and other international 
agencies 
the failure to obtain regulatory approvals 
promptly or at all andor regulatory 
interventions associated with changes 
to manufacturing sites ingredients or 
manufacturing processes could lead to 
significant delays an increase in operating 
costs lost product sales an interruption 
of research activities the delay of new 
product launches or constraints on 
manufacturing output all of which could 
have a material adverse effect on the 
company’s revenues financial condition 
and results of operations 
the actions of certain customers 
could affect the company’s ability 
to sell or market products profitably 
fluctuations in buying or distribution 
patterns by such customers can 
adversely impact the company’s 
revenues financial conditions or 
results of operations 
a considerable portion of the company’s 
product sales are made to major 
pharmaceutical wholesale distributors as 
well as to large pharmacies in both the us 
and europe in 2013 for example 52 of 
the company’s product sales were 
attributable to three customers in the us 
mckesson corp cardinal health inc and 
amerisourcebergen corp in the event of 
financial failure of any of these customers 
there could be a material adverse effect 
on the company’s revenues financial 
condition or results of operations the 
company’s revenues financial condition or 
results of operations may also be affected 
by fluctuations in customer buying or 
distribution patterns these fluctuations 
may result from seasonality pricing 
wholesaler inventory objectives or other 
factors a significant portion of the 
company’s revenues for certain products 
for treatment of rare genetic diseases are 
concentrated within a small number of 
customers changes in the buying patterns 
of those customers may have an adverse 
effect on the company’s revenues 
financial condition or results of operations
investigations or enforcement action 
by regulatory authorities or law 
enforcement agencies relating to the 
company’s activities in the highly 
regulated markets in which it 
operates may result in significant 
legal costs and the payment of 
substantial compensation or fines
the company engages in various 
marketing promotional and educational 
activities pertaining to as well as the sale 
of pharmaceutical products and medical 
devices in a number of jurisdictions around 
the world the promotion marketing and 
sale of pharmaceutical products and 
medical devices is highly regulated and the 
operations of market participants such as 
the company are closely supervised by 
regulatory authorities and law enforcement 
agencies including the us department of 
hhs the fda the us department of 
justice the sec and the dea these 
authorities and agencies and their 
equivalents in countries outside the us 
have broad authority to investigate market 
participants for potential violations of laws 
relating to the sales marketing and 
promotion of pharmaceutical products and 
medical devices including the false 
claims act the antikickback statute and 
the foreign corrupt practices act among 
others for alleged improper conduct 
including corrupt payments to government 
officials improper payments to medical 
professionals offlabel marketing of 
pharmaceutical products and medical 
devices and the submission of false claims 
for reimbursement by the federal 
government healthcare companies may 
also be subject to enforcement actions or 
prosecution for such improper conduct 
any inquiries or investigations into the 
operations of or enforcement or other 
regulatory action against the company by 
such authorities could result in significant 
defense costs fines penalties and 
injunctive or administrative remedies 
distract management to the detriment of 
the business result in the exclusion of 
certain products or the company from 
government reimbursement programs or 
subject the company to regulatory 
controls or government monitoring of its 
activities in the future the company is 
subject to certain ongoing investigations 
by governmental agencies for further 
information see note 19 to the 
consolidated financial statements 
adverse outcomes in legal matters 
and other disputes including shire’s 
ability to enforce and defend patents 
and other intellectual property rights 
required for its business could have a 
material adverse effect on the 
company’s revenues financial 
condition or results of operations
during the ordinary course of its business 
the company may be involved in claims 
disputes and litigation with third parties 
employees regulatory agencies 
governmental authorities and other parties 
the range of matters of a legal nature that 
might arise is extremely broad but could 
include without limitation employment 
claims and disputes intellectual property 
claims and disputes contract claims and 
disputes product liability claims and 
disputes regulatory litigation and tax 
audits and disputes
any unfavorable outcome in such matters 
could adversely impact the company’s 
ability to develop or commercialize its 
products adversely affect the profitability 
of existing products subject the company 
to significant defense costs fines 
penalties audit findings and injunctive 
or administrative remedies distract 
management to the detriment of the 
business result in the exclusion of 
certain products or the company from 
government reimbursement programs 
or subject the company to regulatory 
controls or government monitoring of its 
activities in the future any such outcomes 
could have a material adverse effect on the 
company’s revenue financial condition or 
results of operations for further information 
see note 19 to the consolidated financial 
statements
the company faces intense 
competition for highly qualified 
personnel from other companies 
academic institutions government 
entities and other organizations the 
company is undergoing a corporate 
reorganization and the consequent 
uncertainty could adversely impact 
the company’s ability to attract and
or retain the highly skilled personnel 
needed for the company to meet its 
strategic objectives
the company relies on recruiting and 
retaining highly skilled employees to meet 
its strategic objectives the company 
faces intense competition for highly 
qualified personnel and the supply of 
people with the requisite skills may be 
limited generally or geographically 
the range of skills required and the 
geographies in which they are required 
by the company may also change 
over time as shire’s business evolves 
the company’s ongoing one shire 
reorganization which aims to simplify 
the company’s organizational structure 
involves changes to and geographic 
relocation of certain skilled roles if the 
company is unable to retain key personnel 
or attract new personnel with the requisite 
skills and experience it could adversely 
affect the implementation of the company’s 
strategic objectives and ultimately adversely 
impact the company’s revenues financial 
condition or results of operations 
failure to achieve the company’s 
strategic objectives with respect to 
the acquisition of viropharma may 
adversely affect the company’s 
financial condition and results of 
operations 
on january 24 2014 shire completed the 
acquisition of viropharma for a total cash 
consideration of approximately 42 billion 
acquisitions of this size typically entail 
various risks which if they materialize may 
adversely impact the company’s revenues 
financial condition or results of operations 
these risks include but are not limited to
• failure to achieve the targeted growth and 
expected benefits of the acquisition if 
sales of viropharma products including 
cinryze are lower than anticipated
wwwshirecom annual report 2013 shire plc 27
strategic report
governance financial statements other information • difficulties in integrating viropharma into 
shire may lead to the combined 
company not being able to realize the 
expected operating efficiencies cost 
savings revenue enhancements 
synergies or other benefits in the 
timeframe anticipated or at all
• undiscovered or unanticipated risks and 
liabilities including legal and compliance 
related liabilities may emerge after 
closing the acquisition or may be higher 
than anticipated and
• the company may not be able to retain 
the existing customers of viropharma or 
attract new customers
any failure to achieve the company’s 
strategic objectives with respect to the 
viropharma acquisition could result in 
slower growth higher than expected 
costs the recording of asset impairment 
charges and other actions which could 
adversely affect the company’s business 
financial condition and results of 
operations 
general risk factors related to the 
company and to the healthcare industry
the actions of governments industry 
regulators and the economic 
environments in which the company 
operates may adversely affect its 
ability to develop and profitably 
market its products 
the healthcare industry is heavily 
regulated changes to laws or regulations 
impacting the healthcare industry in any 
country in which the company conducts 
its business may adversely impact the 
company’s revenues financial condition or 
results of operations for example 
changes to the regulations relating to the 
exclusivity periods available for the 
company’s products may allow for the 
earlier entry of generic or biosimilar 
competitor products 
a slowdown of global economic 
growth or continued instability of 
the eurozone could have negative 
consequences for the company’s 
business and increase the risk of 
nonpayment by the company’s 
customers
growth of the global pharmaceutical 
market has become increasingly tied to 
global economic growth accordingly 
a substantial and lasting slowdown of 
the global economy or major national 
economies could negatively affect growth 
in the markets in which the company 
operates such a slowdown or any 
resultant austerity measures adopted by 
governments in response to a slowdown 
could also reduce the level of 
reimbursement that governments are 
willing and able to provide to the company 
for its products and as a result adversely 
affect the company’s revenues financial 
condition or results of operations
any slowing economic environment may 
also lead to financial difficulties for some 
of the company’s significant customers 
in such situations the company could 
experience delays in payment or non
payment of amounts owed which may 
result in a rising level of contractual defaults 
by its contractual counterparties 
the company does business both directly 
with government hospitals clinics 
pharmacies and other agencies and 
indirectly through wholesalers and 
distributors with a number of eurozone 
governments including the governments 
of greece ireland italy portugal and 
spain these and other countries have 
experienced and may continue to 
experience declines in their 
creditworthiness these events could 
in turn result in these countries making 
significant cuts to their public spending 
including national healthcare budgets in 
an attempt to manage their budget deficits 
or could result in a greater risk of default 
or nonpayment of outstanding payment 
obligations any of which could adversely 
affect the company’s revenues financial 
condition or results of operations
in addition concerns have been expressed 
for the overall stability and suitability of 
the euro as a single currency given the 
economic and political challenges facing 
individual eurozone countries continuing 
deterioration in the creditworthiness of 
eurozone countries the withdrawal of one 
or more member countries from the eu 
or the failure of the euro as a common 
european currency could adversely affect 
the company’s revenues financial 
condition or results of operations 
the introduction of new products 
by competitors may impact future 
revenues
the pharmaceutical biotechnology and 
device industries are highly competitive 
and are characterized by substantial 
investment in continuous product 
development and technological change 
the company’s products could therefore 
be rendered obsolete or uneconomic 
through the development of new products 
new methods of treatment or technological 
advances in manufacturing or production 
by its competitors which may impact 
future revenues
the successful development of 
products is highly uncertain and 
requires significant expenditures 
and time
products that initially appear promising 
in research or development may be 
delayed or fail to reach later stages of 
development as
• preclinical or clinical tests may show 
the product to lack safety or efficacy
• delays may be caused by slow enrolment 
in clinical studies regulatory requirements 
for clinical trial drug supplies extended 
length of time to achieve study endpoints 
additional time requirements for data 
analysis or dossier preparation time 
required for discussions with regulatory 
agencies including regulatory agency 
requests for additional preclinical or 
clinical data delays at regulatory 
agencies due to staffing or resource 
limitations analysis of or changes to 
study design unexpected safety efficacy 
or manufacturing issues delays may 
arise from shared control with 
collaborative partners in the planning and 
execution of the product development 
scaling of the manufacturing process 
or getting approval for manufacturing
• manufacturing issues pricing or 
reimbursement issues or other factors 
may render the product economically 
unviable
• the proprietary rights of others and their 
competing products and technologies 
may prevent the product from being 
developed or commercialized or
• the product may fail to receive necessary 
regulatory approvals
success in preclinical and early clinical 
trials does not ensure that late stage 
clinical trials will be successful clinical 
results are frequently susceptible to varying 
interpretations that may delay limit or 
prevent regulatory approvals the length of 
time necessary to complete clinical trials 
and to submit an application for marketing 
approval for a final decision by a regulatory 
authority varies significantly and may be 
difficult to predict if the company’s 
largescale or latestage clinical trials for a 
product are not successful the company 
principal risks and uncertainties
continued
28 shire plc annual report 2013 wwwshirecom will not recover its substantial investments 
in that product 
in addition even if the products receive 
regulatory approval they remain subject 
to ongoing regulatory requirements 
including for example obligations to 
conduct additional clinical trials or other 
nonclinical testing changes to the 
product label which could impact its 
marketability and prospects for 
commercial success new or revised 
requirements for manufacturing written 
notifications to physicians or product 
recalls or withdrawals 
the failure of a strategic partner to 
develop and commercialize products 
could result in delays in development 
approval or loss of revenue
the company enters into strategic 
partnerships with other companies in 
areas such as product development 
manufacturing sales and marketing in 
these partnerships the company is 
sometimes dependent on its partner to 
deliver results while these partnerships 
are governed by contracts the company 
may not exercise direct control if a partner 
fails to perform or experiences financial 
difficulties the company may suffer a 
delay in the development a delay in the 
approval or a reduction in sales or 
royalties of a product
the failure to secure new products 
or compounds for development either 
through inlicensing acquisition or 
internal research and development 
efforts or the failure to realize 
expected benefits from acquisitions 
of businesses or products may have 
an adverse impact on the company’s 
future results
the company’s future results will depend 
to a significant extent upon its ability to 
develop inlicense or acquire new 
products or compounds or to acquire 
other businesses the expected benefits 
from acquired products compounds or 
businesses may not be realized or may 
require significantly greater resources 
and expenditure than originally anticipated 
the failure to realize expected benefits 
from acquisitions of businesses or 
products including those resulting from 
integration into the group or the failure 
to develop inlicense or acquire new 
products or compounds on a commercially 
viable basis could have a material adverse 
effect on the company’s revenues 
financial condition or results of operations
the company may fail to obtain 
maintain enforce or defend the 
intellectual property rights required 
to conduct its business
the company’s success depends upon 
its ability and the ability of its partners and 
licensors to protect their intellectual 
property rights where possible the 
company’s strategy is to register 
intellectual property rights such as patents 
and trademarks the company also relies 
on various trade secrets unpatented 
knowhow and technological innovations 
and contractual arrangements with third 
parties to maintain its competitive position 
the failure to obtain maintain enforce or 
defend such intellectual property rights for 
any reason could allow third parties to 
make competing products or impact the 
company’s ability to develop manufacture 
and market its own products on a 
commercially viable basis or at all which 
could have a material adverse effect on the 
company’s revenues financial condition or 
results of operations
the company intends to enforce its patent 
rights vigorously and believes that its 
commercial partners licensors and third 
party manufacturers intend to enforce 
vigorously those patent rights they have 
licensed to the company however the 
company’s patent rights and patent rights 
that the company has licensed may not 
provide valid patent protection sufficiently 
broad to prevent any third party from 
developing using or commercializing 
products that are similar or functionally 
equivalent to the company’s products or 
technologies these patent rights may be 
challenged revoked invalidated infringed 
or circumvented by third parties laws 
relating to such rights may in future also 
be changed or withdrawn
additionally the company’s products or 
the technologies or processes used to 
formulate or manufacture those products 
may now or in the future infringe the 
patent rights of third parties it is also 
possible that third parties will obtain patent 
or other proprietary rights that might be 
necessary or useful for the development 
manufacture or sale of the company’s 
products the company may need to 
obtain licenses for intellectual property 
rights from others and may not be able to 
obtain these licenses on commercially 
reasonable terms if at all 
the company also relies on trade secrets 
and other unpatented proprietary 
information which it generally seeks to 
protect by confidentiality and nondisclosure 
agreements with its employees consultants 
advisors and partners these agreements 
may not effectively prevent disclosure of 
confidential information and may not 
provide the company with an adequate 
remedy in the event of unauthorized 
disclosure in addition if the company’s 
employees scientific consultants or 
partners develop inventions or processes 
that may be applicable to the company’s 
products under development such 
inventions and processes will not 
necessarily become the company’s 
property but may remain the property 
of those persons or their employers 
the company has filed applications to 
register various trademarks for use in 
connection with its products in various 
countries and also with respect to certain 
products relies on the trademarks of third 
parties these trademarks may not afford 
adequate protection or the company or 
the third parties may not have the financial 
resources to enforce their rights under 
these trademarks which may enable 
others to use the trademarks and dilute 
their value
in the regular course of business the 
company is party to litigation or other 
proceedings relating to intellectual property 
rights see note 19 to the consolidated 
financial statements for details of current 
patent litigation
if a marketed product fails to work 
effectively or causes adverse side 
effects this could result in damage 
to the company’s reputation the 
withdrawal of the product and legal 
action against the company
unanticipated side effects or unfavorable 
publicity from complaints concerning any 
of the company’s products or those of its 
competitors could have an adverse effect 
on the company’s ability to obtain or 
maintain regulatory approvals or 
successfully market its products 
the testing manufacturing marketing and 
sales of pharmaceutical products and 
medical devices entails a risk of product 
liability claims product recalls litigation 
and associated adverse publicity the cost 
of defending against such claims is 
expensive even when the claims are not 
merited a successful product liability claim 
against the company could require the 
company to pay a substantial monetary 
award if in the absence of adequate 
insurance coverage the company does 
not have sufficient financial resources to 
satisfy a liability resulting from such a claim 
or to fund the legal defense of such a 
claim it could become insolvent product 
liability insurance coverage is expensive 
difficult to obtain and may not be available 
in the future on acceptable terms 
although the company carries product 
liability insurance when available this 
coverage may not be adequate in 
addition it cannot be certain that 
insurance coverage for present or future 
products will be available moreover an 
adverse judgment in a product liability 
suit even if insured or eventually 
overturned on appeal could generate 
substantial negative publicity about the 
company’s products and business and 
inhibit or prevent commercialization of 
other products
wwwshirecom annual report 2013 shire plc 29
strategic report
governance financial statements other information key performance indicators
our strategy is to grow our business and 
deliver value to our stakeholders by focusing 
on significant unmet patient need in 
specialist areas and providing more 
innovative treatments to more patients
1 
net product sales include results from dermagraft operations
inline performance
financial non financial
strategic priority drive optimum 
performance from our currently 
marketed products to optimize 
revenue growth and cash generation
• acquisition of viropharma which brought 
cinryze for the prophylactic treatment 
of hereditary angiodema to shire’s 
portfolio of marketed products
• geographic expansion in asia including 
the establishment of new presences in 
south korea and china as well as a new 
office in japan
• launch of elvanse marketed as 
vyvanse in the us in a further four 
european countries and
• positive opinion received on the vpriv 
summary of product characteristics 
from the committee for medicinal 
products for human use of the 
european medicines agency
48bn
2013
2011
2012
40
44
48
net product sales ’bn
• strong revenues from net product sales
1
 
in 2013 up 10 to 48 billion continuing 
the good growth demonstrated in 2012 
12 and
• in 2013 six of our products delivered 
double digit growth yearonyear
we continue to focus on our strategic priorities of growing sales of our existing portfolio 
and bringing new innovative treatments to market through both rd and business 
development following our one shire reorganization which saw the company integrate 
its three separate businesses into one unified organization we are also striving to 
achieve greater collaboration and to reduce any overlap in resources
as part of the one shire reorganization we
• implemented our revised governance model incorporating the new inline and pipeline 
committees to ensure enterprisewide decision making and resource allocation that is 
overseen by the executive committee and
• simplified our business model which has reset our cost base and generated the 
capacity to invest in future growth
we implemented our strategy through our revised business model which is supported 
by the activities of our inline and pipeline committees in 2013 we measured our 
performance against our strategic priorities through both financial and nonfinancial 
kpis we believe that these kpis represent meaningful and relevant measurements 
of our performance and are an important illustration of our ability to meet our 
strategic priority
30 shire plc annual report 2013 wwwshirecom 1 
lisdexamfetamine dimesylate “ldx” currently marketed as vyvanse in the us  canada venvanse in 
latin america and elvanse in certain territories in the eu for the treatment of attention deficit hyperactivity 
disorder “adhd”
2 
ebitda being non gaap earnings before interest tax depreciation and amortization is a non gaap 
measure these non gaap measures are reconciled to their us gaap equivalents on pages 161 to 163
3 
adjusted roic – non gaap return on invested capital see page 160 for a definition
strong performance against our strategy  efficient growth in our business 
value delivered to our stakeholders and ability to invest in future growth
19bn 156
2013
2011
2012
15
16
19
non gaap ebitda ’bn
2013
2011
2012
127
138
156
non gaap adjusted roic growth 
non gaap ebitda
2
 and non gaap adjusted roic
3
 growth delivered in 2013 
demonstrates the progress made against our strategy to grow our business in 
an efficient manner delivering value to stakeholders and also giving us the ability 
to provide more innovative treatments to more patients
pipeline performance
financial non financial
strategic priority build our future 
assets through both rd and 
business development to deliver 
innovation and value for the future
• prioritization of the pipeline to focus on 
the development of innovative specialist 
medicines that have the best chance of 
clinical and commercial success together 
with early stage research in rare diseases
• positive topline results evaluating the 
efficacy and safety of ldx
1
 versus 
placebo in adults with binge eating 
disorder “bed”
• topline data results announced from 
opus2 study for lifitegrast shp606
• acquisition of sarcode bioscience 
developing a treatment for dry eye 
disease premacure developing a 
treatment for rop and lotus tissue 
repair developing a treatment for 
dystrophic epidermolysis bullosa 
“deb” and
• enrolment of the first patient in shire’s 
phase 2 clinical program for vascugel
8902m
• we invested 8902 million in targeted 
rd during 2013
wwwshirecom annual report 2013 shire plc 31
strategic report
governance financial statements other information our strategic focus is on providing innovative 
treatments for patients with rare and other 
specialized conditions 
leading the way in specialty
we focus on specialized 
conditions where we have 
expertise and where we can 
potentially have the biggest 
impact on patients’ lives
our focus ranges from 
neuroscience including 
adhd to a spectrum of rare 
diseases including hunter 
syndrome gaucher disease 
and hereditary angioedema
all our chosen areas are 
very different but they share 
the same core quality of 
being highly specialized 
conditions where there 
is great unmet need and 
where we can make a big 
difference for patients
in the years ahead we 
will maintain our focus on 
specialty conditions with 
a particular emphasis on 
more rare diseases where 
we can lead the way in 
meeting patient needs 
with innovative treatments
the future impact range progress
32 shire plc annual report 2013 wwwshirecom strategic report
governance financial statements other information review of our business
shire delivers double digit 
product sales growth and 
23 increase in non gaap 
earnings
summary
shire has delivered excellent financial 
results in 2013 and now has the 
foundations in place for further future 
growth our sharpened strategic focus 
and strong operational discipline have 
enabled us to deliver double digit product 
sales growth and non gaap earnings per 
ads growth in excess of 20 we’ve 
generated strong cash flows during the year 
which have helped us to strengthen our 
balance sheet
graham hetherington
chief financial officer
overview
• double digit product sales growth 
drives non gaap eps growth of 23
• step change in operating leverage
• expecting 2014 non gaap eps 
growth at a similar level to 2013
• repositioned for further growth
overview
shire is a leading specialty 
biopharmaceutical company that focuses 
on developing and marketing innovative 
specialty medicines that address 
significant unmet patient needs the 
company has grown through acquisition 
completing a series of major transactions 
that have brought therapeutic geographic 
and pipeline growth and diversification 
the company will continue to evaluate 
companies products and pipeline 
opportunities that offer a good strategic 
fit and have the potential to deliver 
demonstrable value to all of the company’s 
stakeholders patients physicians policy 
makers payors investors and employees
the company’s vision is to transform the 
lives of people around the world whose 
health is impacted by rare and other 
specialized conditions through providing 
innovative treatments the company will 
execute on its vision through its strategy 
and business model for further details 
of shire’s strategy and business model 
refer to page 18
34 shire plc annual report 2013 wwwshirecom through deep understanding of patients’ 
needs the company is able to
• serve patients with high unmet needs 
in select commercially attractive specialty 
therapeutic areas
• drive optimum performance of its 
marketed products – to serve 
patients today
• build its pipeline of innovative specialist 
treatments through both rd and 
business development activities – 
to enable the company to serve patients 
in the future
shire’s inlicensing and acquisition efforts 
are focused on products in specialist 
markets with strong intellectual property 
protection or other forms of market 
exclusivity and global rights shire believes 
that a carefully selected and balanced 
portfolio of products with strategically 
aligned and relatively smallscale sales 
forces will deliver strong results
substantially all of the company’s 
revenues expenditures and net assets 
are attributable to the rd manufacture 
sale and distribution of pharmaceutical 
products within one reportable segment 
the company also earns royalties where 
shire has outlicensed products to third 
parties which are recorded as revenues 
revenues are derived primarily from two 
sources – sales of the company’s own 
products and royalties 
• 96 2012 94 of total revenues are 
derived from product sales and
• 3 of total revenues are derived from 
royalties 2012 5 
the markets in which the company 
conducts its business are highly 
competitive and highly regulated
there is increasing legislation both in the 
us and the rest of the world which is 
placing downward pressure on the net 
pricing of pharmaceutical products and 
medical devices for example the us 
government passed healthcare reform 
legislation in 2010 which included an 
increase in medicaid rebate rates and 
extended medicaid rebates to those 
products provided through medicaid 
managed care organizations 
the legislation also imposed excise fees 
to be paid by both pharmaceutical 
manufacturers from 2011 and medical 
device companies from 2013 the cms 
are also increasingly bundling drug 
reimbursement into procedure costs which 
can severely decrease the reimbursement 
rates to physicians for some manufacturers’ 
drugs biologicals and medical devices 
the impact of these recent changes to us 
healthcare legislation and other healthcare 
reforms in the rest of the world has not to 
date had a material impact on the 
company’s results of operations
the healthcare industry is also 
experiencing
• pressure from governments and health 
care providers to keep prices low while 
increasing access to drugs
• increasing challenges from third party 
payors for products to have 
demonstrable clinical benefit with pricing 
and reimbursement approval becoming 
increasingly linked to a product’s clinical 
effectiveness and impact on overall costs 
of patient care 
• increased rd costs because 
development programs are typically 
larger and take longer to get approval 
from regulators 
• challenges to existing patents from 
generic manufacturers
• governments and healthcare systems 
favoring earlier entry of low cost generic 
drugs and
• higher marketing costs due to increased 
competition for market share
shire’s strategy has been developed to 
address these industrywide competitive 
pressures this strategy has resulted in a 
series of initiatives in the following areas
markets
shire’s current portfolio of approved 
products focuses on the following markets 
rare diseases neuroscience and 
gastrointestinal “gi” diseases shire also 
has a number of marketed products for 
other therapeutic areas from which it 
generates product revenues or royalties 
from third parties in 2013 shire derived 
41 of product sales from neuroscience 
products 33 from rare diseases 
products 17 from gi products and 9 
from products addressing other 
therapeutic areas shire’s early stage 
research is focused on rare diseases
shire has grown through acquisition which 
has brought therapeutic geographic and 
pipeline growth and diversification for 
example the recent acquisitions of ferrokin 
biosciences inc “ferrokin” in 2012 and 
lotus tissue repair premacure and 
sarcode in 2013 provide potential access 
to new markets such as ophthalmology 
neonatology and hematologyoncology 
the acquisition of viropharma which 
closed in january 2014 expands shire’s 
rare diseases portfolio including adding 
cinryze a leading currently marketed 
product for the prophylactic treatment 
of hae
in 2013 shire derived 30 of product sales 
from outside of the us shire has ongoing 
commercialization and latestage 
development activities which are expected 
to further supplement the diversification of 
revenues in the future including the 
following
• filing in 2013 of an application in japan for 
the approval of vpriv for the treatment of 
gaucher disease
• filing in 2013 of an application in japan for 
the approval of xagrid for the treatment 
of elevated platelet counts in at risk 
essential thrombocythemia patients and
• intuniv phase 3 clinical program to 
support submission of an maa in the eu 
wwwshirecom annual report 2013 shire plc 35
strategic report
governance financial statements other information rd
the company reorganized its rd efforts 
in 2013 combining the rd organizations 
of its former divisions into a single one 
shire rd organization focused around a 
prioritized portfolio of development and 
research programs shire has focused its 
rd efforts on five therapeutic areas rare 
diseases neuroscience gi hematology 
and ophthalmology shire concentrates its 
resources on obtaining regulatory approval 
for laterstage pipeline products within 
these therapeutic areas and focuses its 
early stage research activities primarily in 
rare diseases
evidence of the successful progression of 
the late stage pipeline can be seen in the 
granting of approval and associated 
launches of the company’s products over 
the last five years in this time several 
products have received regulatory 
approval including in the us intuniv in 
2009 vpriv in 2010 and firazyr in 
2011 in the eu vpriv in 2010 and 
elvansetyvense in 2012 in canada 
vyvanse in 2010
prior to the one shire rd reorganization 
the company’s management reviewed 
rd expenditure by operating segment 
following the one shire rd 
reorganization shire’s management 
reviews direct costs for rd projects by 
development phase
shire’s rd costs in 2013 included 
expenditure on programs in all stages of 
development the following table provides 
an analysis of the company’s direct rd 
spend categorized by development stage 
based upon the development stage of 
each program as at december 31 2013
year to december 31
2013 
’m
early stage programs 102
late stage programs 327
currently marketed products 179
total 608
in addition to the above the company 
recorded rd employee costs of 282 
million in 2013 and other indirect rd 
costs comprising depreciation and 
impairment charges of 43 million
patents and market exclusivity
the loss or expiration of patent protection 
or regulatory exclusivity with respect to any 
of the company’s major products could 
have a material adverse effect on the 
company’s revenues financial condition 
and results of operations as generic or 
biosimilar products may enter the market 
companies selling generic products often 
do not need to complete extensive clinical 
studies when they seek registration of a 
generic or biosimilar product and 
accordingly they are generally able to sell 
generic versions of the company’s 
products at a much lower price
as expected in 2009 teva and impax 
commenced commercial shipments of 
their authorized generic versions of 
adderall xr which led to lower sales 
of branded adderall xr compared 
to the period prior to the authorized 
generic launch 
in 2011 authorized generic and generic 
versions of the company’s carbatrol 
and reminyl products respectively were 
launched which led to lower sales of these 
branded products compared to the period 
before loss of exclusivity
shire is engaged in various legal 
proceedings with generic manufacturers 
with respect to its vyvanse lialda and 
adderall xr patents for more detail of 
current patent litigation see note 19 to the 
consolidated financial statements
business development
shire seeks to focus its business 
development activity on the acquisition and 
inlicensing of products and compounds 
which offer a good strategic fit and have 
the potential to deliver demonstrable value 
to all of the company’s stakeholders 
recent mergers or acquisitions
on january 24 2014 shire completed 
the acquisition of viropharma which added 
a marketed product for the prophylactic 
treatment of hae cinryze as well as 
a number of other marketed products 
and a pipeline of product candidates 
in the rare disease area
in 2013 shire acquired
• sarcode which added shp606 to the 
shire portfolio shp606 is currently in 
phase 3 development for the treatment 
of dry eye disease
• premacure which added shp607 to the 
shire portfolio shp607 is currently in 
phase 3 for the prevention of rop
• lotus tissue repair which added global 
rights to a protein replacement therapy 
in preclinical development for the 
treatment of deb
in 2012 shire acquired
• ferrokin which added shp602 to the 
shire portfolio shp602 is in phase 2 for 
the treatment of iron overload following 
numerous blood transfusions
• substantially all the assets and certain 
liabilities of pervasis therapeutics inc 
which added vascugel now shp613 
to the shire portfolio shp613 is in phase 
2 development for acute vascular repair
review of our business
continued
36 shire plc annual report 2013 wwwshirecom collaboration and licensing activity
shire has also entered into a number of 
collaboration and license agreements in 
recent years including
• a collaboration and license agreement 
with sangamo to develop therapeutics 
for hemophilia and other monogenic 
diseases based on sangamo’s zfp 
technology in 2012
• a worldwide exclusive license from igan 
biosciences inc “igan” to develop and 
commercialize proteasebased 
therapeutics for the treatment of iga 
nephropathy a rare kidney disease in 
2012 and
• shionogi codevelopment and co
commercialization agreement in 2012 for 
vyvanse and intuniv in japan
organization and structure 
on may 2 2013 the company announced 
that there would be a reorganization of the 
company’s business to integrate its 
specialty pharmaceuticals “sp” human 
genetic therapies “hgt” and 
regenerative medicine “rm” business 
units and reportable segments into a 
simplified one shire organization in order 
to drive future growth and innovation 
consequently the sp  hgt and rm 
segments no longer exist shire now 
comprises a single operating and 
reportable segment for further details see 
note 25 “segment reporting” to the 
consolidated financial statements
on november 7  2013 the company 
announced that as part of the one shire 
reorganization the company had 
undertaken a review of all of shire’s 
pipeline programs to identify those projects 
that fit with shire’s new strategic direction 
and have an acceptable likelihood of 
success shire’s preclinical investments 
will now be primarily focused on rare 
diseases meaning that the majority of 
other preclinical projects will not continue 
several clinical programs have also been 
discontinued
the impact of the prioritization and 
rationalization of the company’s 
development portfolio means many of 
the rd programs currently run from 
basingstoke uk will cease taken together 
with the overall streamlining of the rd 
organization this has resulted in a 
significant number of rd roles in 
basingstoke being eliminated and some 
positions being relocated a small number 
of functional roles that support rd in 
basingstoke have also been affected 
in addition the company announced plans 
to relocate its international commercial 
hub from nyon switzerland to zug 
switzerland all nyon based employees 
have been impacted by the one shire 
transition and the move to zug shire is 
planning for the new zug office to be ready 
for occupancy in summer 2014 and will 
phase out the nyon office over a 
reasonable period of time to enable 
employees and their families to manage 
their relocations
on october 22 2013 shire announced 
that it had decided to discontinue the 
construction of its new manufacturing 
facility in san diego on january 16 2014 
the company sold and transferred certain 
of the assets relating to the manufacturing 
marketing sale and distribution of 
dermagraft to organogenesis inc for 
further information see note 9 “results of 
discontinued operations and assets held 
for sale” to the consolidated financial 
statements
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 followed 
the conclusion of an information and 
consultation process shire continues to 
sell resolor in europe and the supply of 
resolor for patients in europe who rely 
on the medicine will not be affected the 
closure of the turnhout site was completed 
during 2013 
wwwshirecom annual report 2013 shire plc 37
strategic report
governance financial statements other information results of operations for the year to 
december 31 2013
financial highlights for the year to 
december 31 2013 are as follows
product sales from continuing operations 
in 2013 were up 12 to 4757 million 
2012 4253 million
the strong growth in product sales from 
continuing operations was driven by 
vyvanse up 19 to 1228 million 
lialdamezavant up 32 to 529 
million vpriv up 12 to 343 million 
intuniv up 16 to 335 million and 
firazyr up 102 to 235 million
total revenues from continuing operations 
were up 9 to 4934 million 2012 
4527 million as the growth in product 
sales was partially offset as expected 
by lower royalties and other revenues 
down 36
operating income from continuing 
operations in 2013 was up 66 to 
1734 million 2012 1045 million 
primarily due to the strong growth in 
product sales and an overall reduction in 
total operating expenses in 2013 compared 
to 2012 as the company focuses on 
delivering efficient growth operating 
expenses in 2013 include a net credit of 
159 million due to change in the fair value 
of contingent consideration liabilities in 
particular relating to the acquisition of 
sarcode following the release of topline 
opus2 operating expenses in 2012 
include impairment charges of 197 9 
million in 2012 related to resolor 
intangible assets research and 
development expenditure decreased by 
2 sga expenditure decreased by 15
diluted earnings per ordinary share 
from continuing operations increased 
74 to 245 2012 141 due to the 
higher operating income from continuing 
operations and a lower effective tax 
rate of 16 2012 20 
total revenues
the following table provides an analysis of the company’s total revenues by source
year to december 31
2013 
’m
2012 
’m
change 

product sales 47575 42529 12
royalties 1537 2416 36
other revenues 231 329 30
total 49343 45274 9
review of our business
continued
4757m
product sales from continuing 
operations 2012 4253m
4934m
total revenues from continuing 
operations 2012 4527m
1734m
us gaap operating income 
from continuing operations  
2012 1045m
38 shire plc annual report 2013 wwwshirecom product sales
year to  
december 31 
2013 
’m
year to  
december 31 
2012 
’m
product sales 
growth 

nongaap  
cer growth
4 

us prescription 
growth
1
 

exit market 
share
1 

vyvanse 12278 10298 19 19 6 16
elaprase 5456 4976 10 11 na
3
na
3
lialdamezavant 5289 3999 32 32 18 28
replagal 4679 4975 6 4 na
3
na
3
adderall xr 3754 4290 12 12 9 5
vpriv 3427 3066 12 12 na
2
na
2
intuniv 3349 2878 16 16 8 5
pentasa 2806 2658 6 6 1 14
firazyr 2348 1163 102 101 na
2
na
2
fosrenol 1834 1720 7 6 18 4
3
xagrid 994 972 2 1 na na
2
other product sales 1361 1534 8 11 na na
total product sales 47575 42529 12 – – –
1 
data provided by ims health national prescription audit “ims npa” exit market share represents the average us market share in the month ended 
december 31 2013
2 
ims npa data not available
3 
not sold in the us in the year to december 31 2013
4 
the company’s management analyzes product sales and revenue growth for certain products sold in markets outside of the us on a constant exchange rate “cer” 
basis so that product sales and revenue growth can be considered excluding movements in foreign exchange rates product sales and revenue growth on a cer 
basis is a non gaap financial measure “non gaap cer” computed by comparing 2013 product sales and revenues restated using 2012 average foreign 
exchange rates to 2012 actual product sales and revenues this non gaap financial measure is used by shire’s management and is considered to provide useful 
information to investors about the company’s results of operations because it facilitates an evaluation of the company’s yearonyear performance on a comparable 
basis average exchange rates for the year to december 31 2013 were 156£100 and 133€100 2012 159£100 and 129€100
vyvanse – adhd
vyvanse product sales grew strongly 
19 in 2013 primarily as a result of price 
increases as well as higher prescription 
demand primarily due to growth in the 
us adhd market 6
litigation proceedings regarding vyvanse 
are ongoing further information about this 
litigation can be found in note 19 to the 
consolidated financial statements
elaprase – hunter syndrome
reported elaprase sales growth 10 
was driven by an increase in the number of 
patients on therapy
lialdamezavant – ulcerative colitis
the growth in product sales for lialda
mezavant 32 in 2013 was primarily 
driven by higher market share in the us 
the effects of which were partially offset 
by higher sales deductions in 2013 as 
compared to 2012
litigation proceedings regarding lialda
mezavant are ongoing further 
information about this litigation can be 
found in note 19 to the consolidated 
financial statements
replagal – fabry disease
replagal sales were down 6 
compared to 2012 down 4 on a non 
gaap cer basis as sales in 2013 were 
impacted by foreign exchange pricing 
pressure primarily in europe and slightly 
lower volumes due to the return of 
competition to the fabry market
adderall xr – adhd
adderall xr product sales decreased 
12 in 2013 as a result of higher sales 
deductions partially offset by the effect of 
higher stocking in 2013 compared to 2012
litigation proceedings regarding 
adderall xr are ongoing further 
information about this litigation and the 
impax settlement can be found in note 19 
to the consolidated financial statements
vpriv – gaucher disease
reported vpriv sales growth of 12 was 
driven by an increase in the number of 
patients on therapy
intuniv – adhd
intuniv product sales were up 16 
compared to 2012 driven by growth in us 
prescription demand up 9 compared to 
2012 together with price increases
1
 
these positive factors were partially offset 
by higher sales deductions in 2013 
compared to 2012
further information about litigation 
proceedings regarding intuniv can be 
found in see note 19 to the consolidated 
financial statements
pentasa – ulcerative colitis
pentasa product sales were up 6 as 
the benefit of price increases was partially 
offset by higher sales deductions in 2013 
as compared to 2012
firazyr – hereditary angioedema
firazyr sales growth 102 compared 
to 2012 was primarily driven by the us 
market where we continue to see both 
good growth in new patients and 
increased levels of repeat usage by 
existing patients
1 
the actual net effect of price increases on current 
period net sales compared to the comparative 
period is difficult to quantify due to the various 
managed care rebates medicaid discounts 
other discount programs in which the company 
participates and fee for service agreements with 
wholesalers customers
wwwshirecom annual report 2013 shire plc 39
strategic report
governance financial statements other information royalties
december 31 
2013 
’m
december 31 
2012 
’m
change 

fosrenol 481 533 10
3tc and zeffix 467 916 49
adderall xr 276 703 61
other 313 264 19
total 1537 2416 36
royalties from adderall xr in 2013 
were significantly impacted by the lower 
royalty rate payable on sales of authorized 
generic adderall xr by impax following 
the launch of a new generic version of 
adderall xr late in the second quarter 
of 2012 as well as by impax’s lower market 
share in 2013 versus 2012
royalties from 3tc and zeffix in 2013 
were lower as 2012 included onetime 
royalty income of 38 million in respect 
of prior periods due to resolution of a 
disagreement with glaxosmithkline and 
viiv healthcare
cost of product sales from continuing 
operations
cost of product sales increased to 6708 
million for the year to december 31 2013 
14 of product sales up from 5858 
million in the corresponding period in 2012 
14 of product sales the costs of 
product sales as a percentage of product 
sales remained broadly constant in 2013 
as compared to 2012
for the year to december 31 2013 cost 
of product sales included depreciation 
of 37 5 million 2012 290 million
rd from continuing operations
rd expenditure decreased to 9334 
million for the year to december 31 2013 
20 of product sales compared to 
9530 million in the corresponding period 
in 2012 22 of product sales in the year 
to december 31 2012 rd included 
upfront payments of 130 million to 
sangamo and 100 million to acquire the 
us rights for prucalopride marketed in 
certain countries in europe as resolor 
and iprd impairment charges in respect 
of resolor of 712 million 2013 199 
million excluding these costs rd 
increased by 547 million or 6 in the 
year to december 31 2013 due to the 
company’s continuing investment in 
a number of targeted rd programs 
particularly new uses for ldx and other 
recently acquired assets including 
shp606 lifitegrast shp607 for 
the prevention of rop and shp608 
for the treatment of deb
rd in the year to december 31 2013 
included depreciation of 233 million 
2012 225 million
sga from continuing operations
sga expenditure decreased to 16513 
million 35 of product sales for the year 
to december 31 2013 from 19480 
million 46 of product sales in the 
corresponding period in 2012 in the year 
to december 31 2012 sga included 
impairment charges of 1267 million 
related to resolor intangible assets and 
higher legal and litigation costs including 
a charge of 57 5 million in relation to the 
agreement in principle with the us 
government excluding these costs sga 
decreased by 431 million or 3 due to 
the company’s continuing focus on 
simplifying its business and delivering 
efficient growth
for the year to december 31 2013 sga 
included depreciation of 668 million 
2012 57 5 million and amortization of 
1520 million 2012 1536 million
goodwill impairment charges from 
continuing operations
in the first quarter of 2013 shire recorded 
a goodwill impairment charge of 1989 
million 2012 nil in relation to the former 
rm business unit following a review of 
future forecasts for the rm business unit 
management determined in the first 
quarter of 2013 that future sales were 
expected to be lower than anticipated at 
the time of acquisition and consequently 
in accordance with us gaap  it was 
determined that the goodwill attributable 
to the rm business unit was impaired 
following the divestment of dermagraft 
on january 16 2014 the company has 
reclassified 1918 million of the impairment 
charge being the portion of the rm 
reporting unit goodwill impairment charge 
that related to the dermagraft 
business to discontinued operations
reorganization costs from continuing 
operations
for the year to december 31 2013 shire 
recorded reorganization costs of 882 
million 2012 nil comprising costs relating 
to the “one shire” reorganization 646 
million which included involuntary 
termination benefits and other 
reorganization costs of which 
approximately 42 million was paid in cash 
during 2013 as the company transitions to 
a new operating structure and the cost of 
closing the company’s facility at turnhout 
belgium 236 million
integration and acquisition costs from 
continuing operations
for the year to december 31 2013 
the company recorded a net credit of 
1341 million in integration and acquisition 
costs 2012 135 million charge this 
comprised a credit of 1591 million 2012 
92 million charge relating to the change 
in fair values of contingent consideration 
liabilities in particular relating to the 
acquisition of sarcode partially offset by 
250 million of acquisition and integration 
costs primarily for the acquisition of 
viropharma and integration of sarcode 
and lotus tissue repair in 2012 integration 
and acquisition costs was primarily related 
to the acquisition of ferrokin
interest expense from continuing 
operations
for the year to december 31 2013 the 
company incurred interest expense of 
381 million 2012 382 million interest 
expense principally related to the coupon 
and amortization of issue costs on the 
bonds which were fully redeemed or 
converted in the year and to a lesser 
extent costs incurred on facilities related 
to the purchase of viropharma
review of our business
continued
40 shire plc annual report 2013 wwwshirecom taxation from continuing operations
the effective tax rate was 16 2012 
20
the effective tax rate is lower than 2012 
primarily due to the impact of changes in 
the fair values of contingent consideration 
liabilities which have no tax impact and 
impairment charges in 2012 which had no 
tax benefit and were not repeated in 2013
discontinued operations
the loss from discontinued operations 
for the year to december 31 2013 was 
7545 million net of tax 2012 603 
million which included impairment 
charges in respect of the assets held for 
sale 6369 million goodwill impairment 
charges 1918 million net losses on the 
discontinued dermagraft business 
2522 million including reorganization 
costs and related taxes credits of 
3264 million
financial condition at december 31 
2013
cash  cash equivalents
cash and cash equivalents increased 
by 757 2 million to 22394 million 
december 31 2012 14822 million 
cash generated by operating activities of 
14630 million was offset by the cost of 
acquiring sarcode premacure and lotus 
the purchase of shares both by the 
employee benefit trust “ebt” and under 
the share buyback program other capital 
expenditure and dividend payments
accounts receivable net
accounts receivable net increased by 
137 0 million to 9612 million december 
31 2012 8242 million primarily due to 
the increase in revenue in the year to 
december 31 2013 days sales 
outstanding decreased to 46 days 
december 31 2012 50 days
other intangible assets net
other intangible assets increased by 
755 million to 23126 million december 
31 2012 23881 million due to the 
iprd assets acquired with sarcode 
premacure and lotus offset by the 
divestment of dermagraft intangible 
assets intangible asset amortization 
iprd impairment and foreign exchange 
movements
convertible bonds
as of december 31 2013 bondholders 
had voluntarily converted 1099050000 
aggregate principal amount of the bonds 
into 33806464 fully paid ordinary shares 
the remaining outstanding bonds in an 
aggregate principle amount of 950000 
were redeemed pursuant to the optional 
redemption notice issued on november 
26 2013
noncurrent deferred tax liabilities
noncurrent deferred tax liabilities 
increased by 398 million to 5606 million 
december 31 2012 5208 million 
primarily due to deferred tax liabilities 
arising on the iprd assets acquired 
with sarcode and lotus offset by a 
reduction in deferred tax liabilities arising 
from the impairment of dermagraft 
intangible assets
other noncurrent liabilities
other noncurrent liabilities increased by 
3469 million to 5885 million december 
31 2012 2416 million primarily due to 
the recognition of noncurrent contingent 
consideration payable related to the 
sarcode premacure and lotus business 
combinations
liquidity and capital resources
general
the company’s funding requirements 
depend on a number of factors including 
the timing and extent of its development 
programs corporate business and 
product acquisitions the level of resources 
required for the expansion of certain 
manufacturing and marketing capabilities 
as the product base expands increases 
in accounts receivable and inventory which 
may arise with any increase in product 
sales competitive and technological 
developments the timing and cost of 
obtaining required regulatory approvals 
for new products the timing and quantum 
of milestone payments on collaborative 
projects the timing and quantum of tax 
and dividend payments the timing and 
quantum of purchases by the ebt of 
shire shares in the market to satisfy 
awards granted under shire’s employee 
share plans and the amount of cash 
generated from sales of shire’s products 
and royalty receipts
an important part of shire’s business 
strategy is to protect its products and 
technologies through the use of patents 
proprietary technologies and trademarks 
to the extent available the company 
intends to defend its intellectual property 
and as a result may need cash for funding 
the cost of litigation
the company finances its activities 
through cash generated from operating 
activities credit facilities private and 
public offerings of equity and debt 
securities and the proceeds of asset 
or investment disposals
shire’s balance sheet includes 22394 
million of cash and cash equivalents at 
december 31 2013 shire has a revolving 
credit facility of 1200 million which 
matures in 2015 of which 700 million 
was utilized on january 24 2014 to 
partially fund the viropharma acquisition 
see section “term loan” “facilities 
agreement” for further details in addition 
in connection with its acquisition of 
viropharma shire entered into a 260 
billion facilities agreement which was 
subsequently reduced to 140 billion 
and comprises of two credit facilities 
i a 055 billion term loan facility of which 
035 billion was utilized on january 24 
2014 and ii a 085 billion term loan 
facility fully utilized on january 24 2014 
see section “term loan agreement” for 
further details further on january 24 
2014 viropharma commenced a tender 
offer to repurchase at the option of each 
holder any and all of viropharma’s 
outstanding 200 convertible senior 
notes due 2017 the “convertible notes” 
and notified the holders of their separate 
right to convert the convertible notes the 
repurchase and payment for conversion of 
the convertible notes forms part of the 
cash consideration payable to viropharma
shire 275 convertible bonds due 2014
on may 9 2007 shire issued 1100 million 
in principal amount of bonds as of 
december 31 2013 all of the bonds 
had been converted or redeemed as 
described below
wwwshirecom annual report 2013 shire plc 41
strategic report
governance financial statements other information on november 26 2013 shire issued an 
optional redemption notice under the trust 
deed to the holders of the bonds the 
aggregate outstanding principal amount 
of bonds on november 25 2013 the last 
practicable date prior to the date of the 
optional redemption notice was 
1075070000 the last day on which 
bondholders were able to exercise their 
conversion rights was december 13 2013 
those bonds which were not voluntarily 
converted were redeemed by the 
company on december 27  2013 at par 
together with interest accrued to that date 
as of december 31 2013 bonds in an 
aggregate principal amount of the 
1099050000 had been voluntarily 
converted into 33806464 fully paid 
ordinary shares at a conversion price 
of us3251 per ordinary share in the 
capital of the company with par value 
of £005 each the remaining outstanding 
bonds in an aggregate principle amount 
of 950000 were redeemed pursuant 
to the optional redemption notice issued 
on november 26 2013 following the 
redemption of all the outstanding bonds 
the company cancelled the listing of 
the bonds on the official list maintained 
by the uk listing authority and the 
admission to trading of the bonds 
on the professional securities market 
of the london stock exchange
revolving credit facilities agreement
on november 23 2010 the company 
entered into a committed multicurrency 
revolving and swingline facilities agreement 
with a number of financial institutions for 
which abbey national treasury services 
plc trading as santander global banking 
and markets bank of america securities 
limited barclays capital citigroup global 
markets limited lloyds tsb bank plc 
and the royal bank of scotland plc 
acted as mandated lead arrangers and 
bookrunners the “rcf” the rcf is for 
an aggregate amount of 1200 million 
and cancelled the company’s then 
existing committed revolving credit facility 
the rcf which includes a 250 million 
swingline facility may be used for general 
corporate purposes and matures on 
november 23 2015
the interest rate on each loan drawn under 
the rcf for each interest period is the 
percentage rate per annum which is the 
aggregate of the applicable margin 
ranging from 090 to 225 per cent per 
annum and libor for the applicable 
currency and interest period shire also 
pays a commitment fee on undrawn 
amounts at 35 per cent per annum 
of the applicable margin
under the rcf it is required that i shire’s 
ratio of net debt to ebitda as defined 
within the rcf agreement does not 
exceed 35 to 1 for either the 12 month 
period ending december 31 or june 30 
unless shire has exercised its option 
which is subject to certain conditions to 
increase it to 40 to 1 for two consecutive 
testing dates ii the ratio of ebitda to net 
interest as defined in the rcf agreement 
must not be less than 40 to 1 for either 
the 12 month period ending december 31 
or june 30 and iii additional limitations on 
the creation of liens disposal of assets 
incurrence of indebtedness making of 
loans giving of guarantees and granting 
security over assets these financial and 
operating covenants have not had and are 
not expected to have an effect on the 
company’s financial position and liquidity
on entering into the rcf in november 
2010 the company paid arrangement 
costs of 80 million which have been 
recorded as deferred charges with 
amortization of these costs to the 
company’s income statement over the 
contractual term of the rcf
the availability of loans under the new 
rcf is subject to customary conditions
term loan agreement
on november 11 2013 shire entered into 
a 260 billion facilities agreement with 
among others morgan stanley bank 
international limited acting as lead 
arranger and agent the “facilities 
agreement” the facilities agreement 
comprises two credit facilities i a 175 
billion term loan facility and ii a 085 
billion term loan facility
on december 13 2013 and on february 
21 2014 the company cancelled part of 
the 260 billion term loan facility the 
revised facilities agreement of 140 billion 
now comprises two credit facilities i a 
055 billion term loan facility and ii a 
085 billion term loan facility all other 
terms and conditions remain unchanged
the 055 billion term loan facility which 
matures on november 10 2014 may be 
used only to finance the purchase price 
payable in respect of shire’s acquisition 
of viropharma including certain related 
costs and for the redemption of shire’s 
bonds shire has the option to extend 
the maturity of the 055 billion term loan 
facility once by a further 364 days
the 085 billion term loan facility which 
matures on november 11 2015 may 
be used only to finance the purchase 
price payable in respect of shire’s 
acquisition of viropharma including 
certain related costs
interest on any loans made under the 
facilities will be payable on the last day 
of each interest period which may be 
one week or one two three or six months 
at the election of shire or as otherwise 
agreed with the lenders the interest rate 
applicable to the 055 billion term loan 
facility is libor plus 075 per annum 
and increases by 025 per annum on 
august 11 2014 and on threemonth 
intervals thereafter
the interest rate applicable to the 
085 billion term loan facility commenced 
at libor plus 115 per annum until 
delivery of the compliance certificate for 
the year ending december 31 2013 and 
thereafter is subject to change depending 
upon the prevailing ratio of net debt to 
ebitda of the group each as defined in 
the facilities agreement in respect of the 
most recently completed financial year or 
financial half year
review of our business
continued
42 shire plc annual report 2013 wwwshirecom shire shall also pay a commitment fee on 
the available but unutilized commitments 
under the 055 billion term loan facility 
and the 085 billion term loan facility for 
the availability period applicable to each 
facility with effect from first utilization the 
commitment fee rate will be 35 of the 
applicable margin before first utilization 
the commitment fee rate will increase in 
stages from 0 to 35 of the applicable 
margin over a period of 3 months
the facilities agreement includes 
customary representations and warranties 
covenants and events of default including 
requirements that the ratio of net debt to 
ebitda of the group each as defined in 
the facilities agreement must not at any 
time exceed 351 for the relevant period 
as defined in the facilities agreement 
except that following certain acquisitions 
including the viropharma acquisition shire 
may elect to increase the ratio to 401 in 
the relevant period in which the acquisition 
was completed and the immediately 
following relevant period in addition for 
each 12month period ending december 
31 or june 30 the ratio of ebitda of the 
group to net interest each as defined in 
the facilities agreement must not be less 
than 401
the facilities agreement restricts subject 
to certain covenants shire’s ability to incur 
additional financial indebtedness grant 
security over its assets or provide or 
guarantee loans further any lender may 
require mandatory prepayment of its 
participation if there is a change of control 
of shire in addition in certain 
circumstances the net proceeds of certain 
shares undertakings or business 
disposals by shire must be applied 
towards the mandatory prepayment of the 
facilities subject to certain exceptions
events of default under the facilities 
include i nonpayment of any amounts 
due under the facilities ii failure to satisfy 
any financial covenants iii material 
misrepresentation in any of the finance 
documents iv failure to pay or certain 
other defaults under other financial 
indebtedness v certain insolvency events 
or proceedings vi material adverse 
changes in the business operations 
assets or financial condition of shire and 
its subsidiaries vii if it becomes unlawful 
for shire or any of its subsidiaries that are 
parties to the facilities agreement to 
perform their obligations or viii if shire or 
any subsidiary of shire which is a party to 
the facilities agreement repudiates the 
facilities agreement or any other finance 
document among others
the facilities agreement is governed by 
english law
financing
shire anticipates that its operating cash 
flow together with available cash cash 
equivalents and the rcf will be sufficient 
to meet its anticipated future operating 
expenses capital expenditures tax and 
interest payments lease obligations and 
milestone payments as they become due 
over the next twelve months
shire’s existing cash the facilities 
agreement and the rcf are sufficient to 
finance the acquisition of viropharma
if the company decides to acquire other 
businesses in addition to viropharma it 
expects to fund these acquisitions from 
cash resources the rcf and possibly 
through new borrowings or the issuance 
of new equity if necessary
share buyback program
shire has a strong balance sheet and 
continued robust cash generation and 
considers efficient use of capital on behalf 
of shareholders an important objective 
therefore during the year to december 31 
2012 the company commenced a share 
buyback program for the purpose of 
returning funds to shareholders of up 
to 500 million through both direct 
purchases of ordinary shares and 
through the purchase of ordinary shares 
underlying adrs
during the year ended december 31 2013 
the company made onmarket repurchases 
totaling 6191965 ordinary shares at a 
cost of 193 million excluding transaction 
costs the program covers purchases of 
ordinary shares for cancellation or to be 
held as treasury shares in accordance 
with the authority renewed by shareholders 
at the company’s agm on april 30 2013 
when the company was authorized to 
make market purchases of up to 
55741587 of its own ordinary shares
on november 11 2013 contemporaneous 
with shire’s announcement of its 
acquisition of viropharma the company’s 
share buyback program was terminated 
since the inception of the share buyback 
program the company had purchased 
300 million of ordinary shares and 
ordinary shares underlying adrs
sources and uses of cash
the following table provides an analysis of the company’s gross and net cash 
excluding restricted cash as at december 31 2013 and 2012
december 31
2013 
’m
2012 
’m
cash and cash equivalents
1
22394 14822
shire 275 convertible bonds – 11000
other debt 89 93
total debt 89 11093
net cash 22305 3729
1  
substantially all of the company’s cash and cash equivalents are held by foreign subsidiaries ie those 
subsidiaries incorporated outside of jersey channel islands the jurisdiction of incorporation of shire plc 
shire’s holding company the amount of cash and cash equivalents held by foreign subsidiaries has not 
had and is not expected to have a material impact on the company’s liquidity and capital resources
 net cash is a non gaap measure the company believes that net cash is a useful measure as it indicates 
the level of borrowings after taking account the cash and cash equivalents that could be utilized to pay down 
the outstanding borrowings
wwwshirecom annual report 2013 shire plc 43
strategic report
governance financial statements other information cash flow activity
net cash provided by operating activities 
for the year to december 31 2013 
increased by 801 million or 6 to 
14630 million 2012 13829 million as 
higher cash receipts from gross product 
sales were more than offset by payments 
made in relation to the one shire 
reorganization approximately 42 million 
costs incurred on the closure of shire’s 
facility at turnhout in belgium 
approximately 24 million and the 
payment to settle the litigation with impax 
48 million see note 19 for details
net cash provided by operating activities 
for the year to december 31 2012 
increased by 3093 million or 29 to 
13829 million 2011 10736 million as 
higher cash receipts from gross product 
sales and improved cash collections for 
aged european receivables more than 
offset higher operating expenses and sales 
deduction payments in the year
net cash used in investing activities was 
3609 million in the year to december 31 
2013 principally relating to the cash paid 
net of cash acquired for the acquisitions 
of sarcode premacure and lotus tissue 
repair and for purchases of ppe
net cash used in investing activities was 
2710 million in the year to december 31 
2012 principally relating to the expenditure 
on property plant and equipment of 
1496 million and the cash paid net of 
cash acquired of 97 0 million for the 
acquisition of ferrokin 945 million and 
pervasis 25 million capital expenditure 
on property plant and equipment primarily 
includes expenditure of 650 million on 
computer software and hardware due to 
sap upgrade and construction and 
leasehold improvements at different 
company sites of 452 million
net cash used in financing activities was 
3446 million for the year to december 31 
2013 principally due to the purchase of 
shares under the share buyback program 
purchase of shares by the ebt and the 
dividend payment
net cash used in financing activities was 
2443 million for the year to december 31 
2012 principally due to the purchase of 
shares by the ebt the purchase of shares 
under the share buyback program and 
dividend payments offset by the tax 
benefit associated with the exercise of 
stock options
outstanding letters of credit
at december 31 2013 the company had 
irrevocable standby letters of credit and 
guarantees with various banks totaling 
513 million 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
cash requirements
at december 31 2013 the company’s cash requirements for long term liabilities reflected on the balance sheet and other contractual 
obligations were as follows
payments due by period
total 
’m
less than  
1 year 
’m
13 years 
’m
35 years 
’m
more than 
5 years 
’m
operating leases obligation
i
2159 449 575 301 834
purchase obligations
ii
6098 5001 962 119 16
other long term liabilities reflected on the balance sheet
iii
5785 – 3753 726 1306
total 14042 5450 5290 1146 2156
i the company leases certain land 
facilities motor vehicles and certain 
equipment under operating leases expiring 
through 2021
ii purchase obligations include 
agreements to purchase goods 
investments or services including clinical 
trials contract manufacturing and capital 
equipment including open purchase 
orders that are enforceable and legally 
binding and that specify all significant 
terms shire expects to fund these 
commitments with cash flows from 
operating activities
iii unrecognized tax benefits and 
associated interest and penalties of 1157 
million are included within payments due in 
one to three years
the contractual obligations table above 
does not include certain milestones and 
other contractual commitments where 
payment is contingent upon the 
occurrence of events which are yet to 
occur and therefore payment is not yet 
due at december 31 2013 the most 
significant of the company’s milestone and 
contractual commitments which are 
contingent on the occurrence of future 
events are as follows
i research collaboration with santaris 
pharma as “santaris” on locked nucleic 
acid “lna” drug platform
on august 24 2009 shire announced that 
it had entered into a research collaboration 
with santaris to develop its proprietary 
lna technology in a range of rare 
diseases lna technology has the benefit 
of shortened target validation and proof of 
concept potentially increasing the speed 
and lowering the cost of development as 
part of the joint research project santaris 
will design develop and deliver preclinical 
lna oligonucleotides for shireselected 
orphan disease targets and shire will have 
the exclusive right to further develop and 
commercialize these candidate 
compounds on a worldwide basis
review of our business
continued
44 shire plc annual report 2013 wwwshirecom in the year to december 31 2013 shire 
paid success milestones and other 
support costs of 15 million 2012 30 
million and 45 million 2012 81 million 
to santaris respectively which were 
expensed to rd shire has remaining 
obligations to pay santaris development 
and sales milestones up to a maximum 
of 710 million for current indication shire 
will also pay single or double digit tiered 
royalties on net sales of the product
shire and santaris have formed a joint 
research committee to monitor rd 
activities through preclinical lead candidate 
selection at which point all development 
and commercialization costs will be the 
responsibility of shire
ii collaboration and license agreement with 
sangamo to develop therapeutics for 
hemophilia
on february 1 2012 shire and sangamo 
announced that they had entered into a 
collaboration and license agreement to 
develop therapeutics for hemophilia and 
other monogenic diseases based on 
sangamo’s zfp technology sangamo 
is responsible for all activities through 
submission of investigational new drug 
applications and european clinical trial 
applications for each product and shire 
will reimburse sangamo for its internal 
and external research programrelated 
costs shire is responsible for clinical 
development and commercialization of 
products arising from the collaboration
in the year to december 31 2012 shire 
made an upfront payment to sangamo 
of 130 million for technology access 
and rd funding which was expensed 
to rd
in the year to december 31 2013 
shire’s share of rd costs under this 
collaboration agreement was 152 million 
2012 89 million which were expensed 
to rd shire may be required to pay 
research regulatory development and 
commercial milestone payments up to a 
maximum of 2135 million and to pay 
royalties on net sales of the product
iii acquisition of ferrokin
on april 2 2012 shire completed the 
acquisition of 100 of the outstanding 
share capital of ferrokin the acquisition
date fair value of consideration totaled 
1593 million comprising cash 
consideration paid on closing of 945 
million and the fair value of contingent 
consideration payable of 648 million 
the maximum amount of contingent cash 
consideration which may be payable by 
shire in future periods is 2250 million 
the amount of contingent cash 
consideration ultimately payable by shire 
is dependent upon the achievement of 
certain clinical development regulatory 
and net sales milestones for further 
details refer to note 4 of this annual report
iv acquisition of certain assets  liabilities 
of pervasis
on april 19 2012 shire acquired 
substantially all the assets and certain 
liabilities of pervasis the acquisition date 
fair value of the consideration totaled 261 
million comprising cash consideration paid 
on closing of 25 million and the fair value 
of contingent consideration payable of 
236 million the maximum amount of 
contingent cash consideration which may 
be payable by shire in future periods is 
1695 million the amount of contingent 
cash consideration ultimately payable by 
shire is dependent upon achievement of 
certain clinical development regulatory 
and net sales milestones for further 
details refer to note 4 of this annual report
v acquisition of lotus tissue repair
on february 12 2013 shire completed 
the acquisition of 100 of the outstanding 
share capital of lotus tissue repair the 
acquisition date fair value of consideration 
totaled 1742 million comprising cash 
consideration paid on closing of 494 
million and the fair value of contingent 
consideration payable of 1248 million 
the maximum amount of contingent cash 
consideration which may be payable by 
shire in future periods is 275 million the 
amount of contingent cash consideration 
ultimately payable by shire is dependent 
upon achievement of certain preclinical 
and clinical development milestones 
for further details refer to note 4 of this 
annual report
vi acquisition of premacure
on march 8 2013 shire completed the 
acquisition of 100 of the outstanding 
share capital of premacure the acquisition 
date fair value of the consideration totaled 
1402 million comprising cash 
consideration paid on closing of 306 
million and the fair value of contingent 
consideration payable of 1096 million 
the maximum amount of contingent cash 
consideration which may be payable by 
shire in future periods dependent upon 
the successful completion of certain 
development and commercial milestones 
is 169 million shire will also pay royalties 
on relevant net sales for further details 
refer to note 4 of this annual report
vii acquisition of sarcode
on april 17  2013 shire completed the 
acquisition of 100 of the outstanding 
share capital of sarcode the acquisition 
date fair value of the consideration totaled 
368 million comprising cash 
consideration paid on closing of 151 
million and the fair value of contingent 
consideration payable of 217 million 
the maximum amount of contingent 
cash consideration which may be payable 
by shire in future periods is 225 million 
dependent upon achievement of certain 
clinical regulatory and net sales 
milestones for further details refer 
to note 4 of this annual report
viii acquisition of viropharma
on november 11 2013 shire signed a 
definitive agreement to acquire all of the 
outstanding share capital of viropharma 
for 50 per share in cash or approximately 
42 billion the transaction was 
completed on january 24 2014 at which 
time viropharma became a whollyowned 
subsidiary shire’s consolidated financial 
statements will reflect the fair values of 
assets acquired and the liabilities assumed 
at and the results of viropharma will be 
included in shire’s consolidated statement 
of income from january 24 2014 further 
on january 24 2014 viropharma 
commenced a tender offer to repurchase 
at the option of each holder any and all of 
viropharma’s convertible notes and 
notified the holders of their separate right 
to convert the convertible notes the 
repurchase and payment for conversion of 
the convertible notes forms part of the 
cash consideration payable to viropharma 
for further details refer to note 4 of this 
annual report
wwwshirecom annual report 2013 shire plc 45
strategic report
governance financial statements other information offbalance sheet arrangements
there are no offbalance sheet 
arrangements aside from the 
collaborations containing contractual 
commitments and milestones which are 
contingent on future events as outlined 
above that have or are reasonably likely 
to have a current or future material effect 
on the company’s financial condition 
revenues or expenses results of 
operations liquidity capital expenditures 
or capital resources
foreign currency fluctuations
a number of the company’s subsidiaries 
have a functional currency other than the 
us dollar as such the consolidated 
financial results are subject to fluctuations 
in exchange rates particularly in the euro 
swiss franc and pound sterling against 
the us dollar
the accumulated foreign currency 
translation differences at december 31 
2013 of 253 million are reported within 
accumulated other comprehensive income 
in the consolidated balance sheet and 
foreign exchange losses for the year to 
december 31 2013 of 87 million are 
reported in the consolidated statements 
of income
at december 31 2013 the company had 
outstanding swap and forward foreign 
exchange contracts to manage the 
currency risk associated with 
intercompany transactions at december 
31 2013 the fair value of these contracts 
was a net asset of 12 million
concentration of credit risk
financial instruments that potentially 
expose shire to concentrations of credit 
risk consist primarily of short term cash 
investments derivative contracts and trade 
accounts receivable from product sales 
and from third parties from which the 
company receives royalties cash is 
invested in short term money market 
instruments including money market and 
liquidity funds and bank term deposits 
the money market and liquidity funds in 
which shire invests are all triple a rated by 
both standard and poor’s and by moody’s 
credit rating agencies
the company is exposed to the credit risk 
of the counterparties with which it enters 
into derivative instruments the company 
limits this exposure through a system of 
internal credit limits which vary according 
to ratings assigned to the counterparties 
by the major rating agencies the internal 
credit limits are approved by the board 
and exposure against these limits is 
monitored by the corporate treasury 
function the counterparties to these 
derivatives contracts are major 
international financial institutions
the company’s revenues from product 
sales in the us are mainly governed by 
agreements with major pharmaceutical 
wholesalers and relationships with other 
pharmaceutical distributors and retail 
pharmacy chains for the year to 
december 31 2013 there were three 
customers in the us that accounted for 
52 of the company’s product sales 
however such customers typically have 
significant cash resources and as such 
the risk from concentration of credit is 
considered acceptable the company has 
taken positive steps to manage any credit 
risk associated with these transactions and 
operates clearly defined credit evaluation 
procedures however an inability of one or 
more of these wholesalers to honor their 
debts to the company could have an 
adverse effect on company’s financial 
condition and results of operations
a substantial portion of the company’s 
accounts receivable in countries outside of 
the united states is derived from product 
sales to governmentowned or 
governmentsupported healthcare 
providers the company’s recovery of 
these accounts receivable is therefore 
dependent upon the financial stability and 
creditworthiness of the relevant 
governments in recent years the 
creditworthiness and general economic 
condition of a number of eurozone 
countries including greece italy portugal 
and spain the “relevant countries” has 
deteriorated as a result in some of these 
countries the company is experiencing 
delays in the remittance of receivables due 
from governmentowned or government
supported healthcare providers 
the company continued to receive 
remittances in relation to government
owned or governmentsupported 
healthcare providers in all the relevant 
countries in the year to december 31 
2013 including receipts of 1168 million 
and 1447 million in respect of spanish 
and italian receivables respectively
to date the company has not incurred 
significant losses on accounts receivable in 
the relevant countries and continues to 
consider that such accounts receivable are 
recoverable the company will continue to 
evaluate all its accounts receivable for 
potential collection risks and has made 
provision for amounts where collection is 
considered to be doubtful if the financial 
condition of the relevant countries or 
other eurozone countries suffer significant 
deterioration such that their ability to make 
payments becomes uncertain or if one 
or more eurozone member countries 
withdraws from the euro additional 
allowances for doubtful accounts may 
be required and losses may be incurred 
in future periods any such loss could 
have an adverse effect on the company’s 
financial condition and results of operations
inflation
although at reduced levels in recent years 
inflation continues to apply upward 
pressure on the cost of goods and 
services which are used in the business 
however the company believes that the 
net effect of inflation on its revenues and 
operations has been minimal during the 
past three years
review of our business
continued
46 shire plc annual report 2013 wwwshirecom treasury policies and organization
the company’s principal treasury 
operations are coordinated by its corporate 
treasury function all treasury operations 
are conducted within a framework of 
policies and procedures approved annually 
by the board of directors as a matter of 
policy the company does not undertake 
speculative transactions that would 
increase its credit currency or interest 
rate exposure
interest rate risk
the company is exposed to interest rate 
risk on its 1200 million rcf its 055 
billion term loan facility its 085 billion 
term loan facility the “facilities” to the 
extent the facilities are utilized restricted 
cash cash and cash equivalents and on 
foreign exchange contracts on which 
interest is at floating rates this exposure is 
primarily to us dollar pounds sterling 
euro and canadian dollar interest rates 
the company has evaluated the interest 
rate risk on its debt facilities and considers 
the floating rate as appropriate as the 
company maintains all of its cash liquid 
investments and foreign exchange 
contracts on a short term basis for liquidity 
purposes this risk is not actively managed 
in the year to december 31 2013 the 
average interest rate received on cash and 
liquid investments was less than 1 per 
annum the largest proportion of these 
cash and liquid investments was in us 
dollar money market and liquidity funds  
at december 31 2013 the facilities were 
not utilized
no derivative instruments were entered 
into during the year to december 31 2013 
to manage interest rate exposure the 
company continues to review its interest 
rate risk and the policies in place to 
manage the risk
foreign exchange risk
the company trades in numerous 
countries and as a consequence has 
transactional and translational foreign 
exchange exposures
transactional exposure arises where 
transactions occur in currencies different 
to the functional currency of the relevant 
subsidiary the main trading currencies of 
the company are the us dollar pounds 
sterling swiss franc and the euro 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 
being 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 these 
assets and liabilities relate predominantly 
to intercompany financing the foreign 
exchange contracts have not been 
designated as hedging instruments 
cash flows from derivative instruments 
are presented within net cash provided 
by operating activities in the consolidated 
cash flow statement unless the derivative 
instruments are economically hedging 
specific investing or financing activities
translational foreign exchange exposure 
arises on the translation into us dollars of 
the financial statements of nonus dollar 
functional subsidiaries
at december 31 2013 the company had 
29 swap and forward foreign exchange 
contracts outstanding to manage currency 
risk the swap and forward contracts 
mature within 90 days the company 
did not have credit risk related contingent 
features or collateral linked to the 
derivatives 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 
consolidated balance sheet as at 
december 31 2013 the potential effect of 
rights of set off associated with the foreign 
exchange contracts would be an offset to 
both assets and liabilities of 07 million 
resulting in net derivative assets and 
derivative liabilities of 33 million and 
21 million respectively further details 
are included on the next page
wwwshirecom annual report 2013 shire plc 47
strategic report
governance financial statements other information foreign exchange risk sensitivity
the following exchange rate sensitivity analysis summarises the sensitivity of the 
company’s reported revenues and net income to hypothetical changes in the average 
annual exchange rates of the euro pound sterling and swiss franc against the us 
dollar assuming a hypothetical 10 strengthening of the us dollar against each of the 
aforementioned currencies in the year to december 31 2013
increase
reduction in 
revenues  
’m
increase
reduction in 
net income 
’m
euro 78 36
pound sterling 19 7
swiss franc – 9
a 10 weakening of the us dollar against the aforementioned currencies would have 
an equal and opposite effect
the table below provides information about the company’s swap and forward foreign 
exchange contracts by currency pair the table presents the net principal amounts and 
weighted average exchange rates of all outstanding contracts all contracts have a 
maturity date of less than three months
december 31 2013
principal 
value of 
amount 
receivable 
’m
weighted 
average 
exchange  
rate 
’m
fair value 
’m
swap foreign exchange contracts
receive usdpay eur 2560 136 22
receive gbppay usd 1580 162 28
receive usdpay jpy 16 001 –
receive sekpay usd 243 015 06
receive usdpay mxn 104 008 –
concentration of credit risk
financial instruments that potentially 
expose shire to concentrations of credit 
risk consist primarily of short term cash 
investments derivative contracts and trade 
accounts receivable from product sales 
and from third parties from which the 
company receives royalties cash is 
invested in short term money market 
instruments including money market and 
liquidity funds and bank term deposits 
the money market and liquidity funds in 
which shire invests are all triple a rated by 
both standard and poor’s and by moody’s 
credit rating agencies
the company is exposed to the credit risk 
of the counterparties with which it enters 
into derivative instruments the company 
limits this exposure through a system of 
internal credit limits which vary according 
to ratings assigned to the counterparties 
by the major rating agencies the internal 
credit limits are approved by the board 
and exposure against these limits is 
monitored by the corporate treasury 
function the counterparties to these 
derivatives contracts are major 
international financial institutions
the company’s revenues from product 
sales in the us are mainly governed by 
agreements with major pharmaceutical 
wholesalers and relationships with other 
pharmaceutical distributors and retail 
pharmacy chains for the year to 
december 31 2013 there were three 
customers in the us that accounted for 
52 of the company’s product sales 
however such customers typically have 
significant cash resources and as such 
the risk from concentration of credit is 
considered acceptable the company has 
taken positive steps to manage any credit 
risk associated with these transactions and 
operates clearly defined credit evaluation 
procedures however an inability of one or 
more of these wholesalers to honor their 
debts to the company could have an 
adverse effect on the company’s financial 
condition and results of operations
a substantial portion of the company’s 
accounts receivable in countries outside  
of the united states is derived from 
product sales to governmentowned 
or governmentsupported healthcare 
providers the company’s recovery of 
these accounts receivable is therefore 
dependent upon the financial stability 
and creditworthiness of the relevant 
governments in recent years the 
creditworthiness and general economic 
condition of the relevant countries has 
deteriorated as a result in some of these 
countries the company is experiencing 
delays in the remittance of receivables due 
from governmentowned or government
supported healthcare providers
review of our business
continued
48 shire plc annual report 2013 wwwshirecom the company’s aggregate accounts receivable net of the allowance for doubtful 
accounts in total from governmentowned or governmentsupported healthcare 
providers in the relevant countries are as follows
december 31
december 31 
2013
’m
december 31 
2012
’m
total accounts receivable net in the relevant countries 127 136
total accounts receivable net in the relevant countries as 
a percentage of total outstanding accounts receivable net 13 17
accounts receivable net due from governmentowned 
or governmentsupported healthcare providers for the 
relevant countries 116 129
accounts receivable due from 
governmentowned or government
supported healthcare providers in the 
relevant countries of 116 million 2012 
130 million are split by country as follows 
greece 4 million 2012 6 million italy 
59 million 2012 62 million portugal 
14 million 2012 13 million and spain 
39 million 2012 48 million
the company continues to receive 
remittances in relation to government
owned or governmentsupported 
healthcare providers in the relevant 
countries and in the year to december 31 
2013 received 2849 million in settlement 
of accounts receivable in the relevant 
countries – 95 million was from greece 
1450 million from italy 134 million from 
portugal and 117 0 million from spain
to date the company has not incurred 
significant losses on the accounts 
receivable in the relevant countries 
and continues to consider that such 
accounts receivable are recoverable
other than the accounts receivable  
from governmentowned or supported 
healthcare providers outlined above  
the company does not hold any other 
government debt from the relevant 
countries additionally the company  
does not consider it is currently exposed  
to significant sovereign credit risk outside 
of the relevant countries
the company continues to evaluate all its 
accounts receivable for potential collection 
risks and has made provision for amounts 
where collection is considered to be 
doubtful if the financial condition of the 
relevant countries or other eurozone 
countries suffer significant deterioration 
such that their ability to make payments 
becomes uncertain or if one or more 
eurozone member countries withdraws 
from the euro additional allowances for 
doubtful accounts may be required and 
losses may be incurred in future periods 
any such loss could have an adverse 
effect on the company’s financial condition 
and results of operations
strategic report
the strategic report comprises 
pages 4 to 49 of this annual report 
and accounts
on behalf of the board
tatjana may
company secretary 
february 24 2014
wwwshirecom annual report 2013 shire plc 49
strategic report
governance financial statements other information 50 shire plc annual report 2013 wwwshirecom from the way we work together to the 
distinctive qualities of our treatments we 
strive for excellence throughout our business 
our work exploring how ldx the active 
ingredient in vyvanse can be used to 
treat bed is a great example of how we aim 
to excel – by building on our strengths and 
as ever focusing on people with high unmet 
specialist needs 
we’re working on extending ldx to treat adults with bed 
1 bed in adults is a huge unmet need and according to 
physicians there are few treatments of any kind available  
2 the seriousness of the disorder is increasingly 
acknowledged in the physician community 
3 the market is ready for a safe and effective treatment 
 
4 estimates suggest that there are around 3 million 
adults with bed in the us and about 9 out of 10 
of them are undiagnosed
5 of those that are diagnosed not all are being treated 
 
6 health care practitioners are generally dissatisfied with 
the mixed results from the current treatment options 
that include counseling and cognitive behavioral therapy 
or off label antidepressant and antipsychotic drugs  
7 with the two pivotal phase 3 eating disorder trials now 
fully enroled our phase 3 program is ahead of schedule
wwwshirecom annual report 2013 shire plc 51
strategic report governance financial statements other information board of directors
susan kilsby 55 
chairman designate
appointed september 1 2011 
committee chairmanship a 
committee membership n
skills  experience susan is to be 
appointed chairman of the board on april 29 
2014 at which time she will step down as 
chairman of the audit compliance  risk 
committee susan brings to her role her 
extensive ma and finance experience having 
enjoyed a distinguished global career in 
investment banking she held senior positions 
with the first boston corporation bankers 
trust barclays de zoete wedd and most 
recently credit suisse where she was 
chairman of the emea mergers  acquisitions 
team until 2009 susan has continued in a 
parttime senior advisory capacity at credit 
suisse and will do so until april 29 2014 
susan is also a former director of hong kong 
listed global skin care company l ’occitane 
international sa she holds a ba in 
economics and a mba
external appointments bba aviation plc 
nonexecutive director cocacola hbc ag 
nonexecutive director and green mountain 
coffee roasters inc nonexecutive director
graham hetherington 55 
chief financial officer
appointed july 1 2008 
committee membership e
skills  experience graham brings to 
his position a broad range of international 
finance management and planning audit risk 
management and ma experience he is due 
to step down from the board on march 1 
2014 graham was chief financial officer of 
bacardi in 2007 and chief financial officer of 
allied domecq plc from 1999 to 2005 he is a 
fellow of the chartered institute of 
management accountants
dominic blakemore 44 
nonexecutive director
appointed january 1 2014 
committee membership a
skills  experience dominic is to 
be appointed chairman of the audit 
compliance  risk committee on april 29 
2014 he brings to the board his strategic 
and financial experience having held the 
positions of chief financial officer at iglo 
foods group and european finance  
strategy director corporate finance director 
and group financial controller at cadbury plc 
earlier in his career dominic worked at 
pricewaterhousecoopers where he 
advised pharmaceutical sector clients
external appointments compass group 
plc group finance director
matthew emmens 62 
chairman
appointed march 12 2003 
committee membership n
skills  experience matthew served as 
shire’s chief executive officer prior to his 
appointment as chairman on june 18 2008 
with 40 years of pharmaceutical experience 
he contributes a wealth of strategic and 
operational knowledge to the company 
matthew is due to retire as chairman on april 
29 2014 matthew began his career in 
international pharmaceuticals with merck  
co inc in 1974 where he held a wide range of 
sales marketing and administrative positions 
in 1992 he helped to establish astra merck 
inc a joint venture between merck and astra 
ab of sweden becoming president and chief 
executive officer in 1999 he joined 
merck kgaa and established emd 
pharmaceuticals the company’s us 
prescription pharmaceuticals business he 
later served as president of merck kgaa’s 
global prescription pharmaceuticals business 
in germany matthew previously served on the 
boards of vertex pharmaceuticals inc and 
incyte corporation he holds a degree in 
business management 
dr flemming ornskov 56 
chief executive officer 
appointed january 2 2013 
committee chairmanship e
skills  experience flemming served as 
chief executive officer designate prior to his 
appointment as chief executive officer on 
april 30 2013 flemming brings to his role his 
operational and medical knowledge and his 
extensive international strategic and 
operational experience in the pharmaceutical 
sector he formerly held the position of 
nonexecutive chairman of evotec ag and 
was nonexecutive director of pci biotech 
holding asa from 2010 to 2012 he was chief 
marketing officer and global head strategic 
marketing for general and speciality medicine 
at bayer from 2008 to 2010 flemming served 
as global president pharmaceuticals and 
otc at bausch  lomb inc he also served 
as chairman and later as president and chief 
executive officer of lifecycle pharma as 
from 2006 to 2008 and as president and 
chief executive officer of ikaria inc from 
2005 to 2006 earlier in his pharmaceutical 
career flemming held roles of increasing 
responsibility at merck  co inc and novartis 
ag following a distinguished period spent in 
hospitals and academic medicine flemming 
received his md from the university of 
copenhagen mba from insead and master 
of public health from harvard university
david kappler 66 
deputy chairman and senior independent 
nonexecutive director
appointed april 5 2004 
committee chairmanship n 
committee membership a
skills  experience david was appointed 
senior independent nonexecutive director in 
july 2007 and deputy chairman in june 2008 
david brings to the board his extensive 
knowledge and experience in financial 
reporting risk management and internal 
financial controls he was chairman of premier 
foods plc until 2010 and held directorships at 
camelot group plc and hmv group plc david 
retired from cadbury schweppes plc in 2004 
after serving as chief financial officer since 
1995 he worked for the cadbury schweppes 
group between 1965 and 1984 and rejoined 
the company in 1989 following its acquisition 
of the trebor group where he was financial 
director david is a fellow of the chartered 
institute of management accountants
external appointments intercontinental 
hotels group plc nonexecutive director
52 shire plc annual report 2013 wwwshirecom dr steven gillis 50 
nonexecutive director
appointed october 1 2012 
committee membership r s
skills  experience steven brings to the 
board his extensive technical and scientific 
knowledge and commercial experience 
he is currently a managing director at arch 
venture partners a provider of venture capital 
for technology firms where he is focused on 
the evaluation of new life science technologies 
and the development and growth of arch’s 
biotechnology portfolio companies prior to this 
steven was a founder and director of corixa 
corporation acquired by glaxosmithkline in 
2005 prior to starting corixa he was a founder 
and director of immunex corporation an 
immunologist by training steven has authored 
more than 300 peerreviewed publications in 
the areas of molecular and tumor immunology 
he is credited as being a pioneer in the field of 
cytokines and cytokine receptors directing the 
development of multiple marketed products 
including leukine gmcsf prokine il 2 
and enbrel soluble tnf receptorfc fusion 
protein as well as the regulatory approval of 
bexxar radiolabeled anticd20 and the novel 
vaccine adjuvant mpl steven received his 
ba from williams college and his phd from 
dartmouth college
external appointments arch venture 
partners managing director and bluebird bio 
inc nonexecutive director
anne minto obe 60 
nonexecutive director
appointed june 16 2010 
committee chairmanship r  
committee membership n
skills  experience anne brings to the 
board her extensive legal commercial and 
remuneration experience she held the 
position of group director human resources 
at centrica plc from 2002 to 2011 and was a 
member of the centrica executive committee 
her extensive business career includes senior 
management roles at shell uk the position of 
deputy directorgeneral of the engineering 
employers’ federation and the position of 
group director human resources at smiths 
group plc she is also a former director of 
northumbrian water plc and sita uk anne 
holds a law degree and a postgraduate 
diploma in human resources and is also 
a qualified lawyer she is also a fellow 
of the chartered institute of personnel  
development the royal society of arts and 
the london city and guilds and is a member 
of the law society of scotland 
external appointments tate  lyle plc 
nonexecutive director exlservice holdings 
inc nonexecutive director university of 
aberdeen development trust trustee and 
university of aberdeen alumni fund patron
former director
angus russell 58 
former chief executive officer
appointment december 13 1999 –  
april 30 2013
skills  experience angus served as 
chief financial officer until 2008 when 
he was appointed chief executive officer 
he brought to his position his operational 
knowledge of shire and his extensive finance 
risk management strategic and operational 
experience in the pharmaceutical sector 
angus held positions at intermune inc and 
city of london investment trust plc and 
positions of increasing responsibility at ici 
zeneca and astrazeneca plc including vice 
president corporate finance at astrazeneca 
and group treasurer at zeneca angus is a 
chartered accountant and is a fellow of the 
association of corporate treasurers
william burns 66 
nonexecutive director
appointed march 15 2010 
committee membership r n s
skills  experience william brings to the 
board extensive international sales marketing 
integration and operational experience in the 
pharmaceutical sector he worked for many 
years at roche holding the position of ceo 
of their pharmaceuticals division from 2005 to 
2009 and serving as a member of the roche 
group corporate executive committee 
william holds a ba hons
external appointments roche holdings 
ltd director genentech inc director 
chugai pharmaceutical co ltd director 
biotie therapies corp vice chairman 
vestergaard frandsen director wellcome 
trust committee chairman masters 
pharmaceuticals chairman university of 
strathclyde international advisory panel 
chairman and university of colognebonn 
center for integrated oncology scientific 
advisory board member 
dr david ginsburg 61 
nonexecutive director
appointed june 16 2010 
committee chairmanship s
skills  experience david brings to the 
board his clinical medical background in 
internal medicine hematologyoncology 
and medical genetics as well as his extensive 
basic biomedical laboratory research expertise 
david obtained his ba at yale university md 
at duke university and completed his medical 
and research training at harvard medical 
school david is the recipient of numerous 
honors and awards including election to 
membership in the national academy of 
sciences the institute of medicine and the 
american academy of arts and sciences
external appointments university of 
michigan james v neel distinguished 
university professor of internal medicine 
human genetics and pediatrics and howard 
hughes medical institute investigator
david stout 59 
nonexecutive director
appointed october 31 2009 
committee membership a r
skills  experience david brings to the 
board extensive international sales marketing 
operational and supply chain experience 
gained in the pharmaceutical sector david 
was president pharmaceutical operations at 
glaxosmithkline where he was responsible 
for the company’s global pharmaceutical 
operations from 2003 to 2008 prior to that 
he was president of glaxosmithkline’s us 
pharmaceuticals business and before that 
smithkline beecham’s north american 
pharmaceuticals business before joining 
smithkline beecham david worked for many 
years at scheringplough he is also a former 
director of allos therapeutics inc and holds 
a ba in biology
external appointments jabil circuit inc 
nonexecutive director and airgas inc 
nonexecutive director
board committees
a  audit compliance  risk committee
r remuneration committee
n nomination committee
s science  technology committee
e  executive committee
wwwshirecom annual report 2013 shire plc 53
strategic report governance financial statements other information corporate governance report
matthew emmens
chairman
dear shareholder
shire’s governance structure 
is central to the operation of 
the board and the wider group 
and is therefore critical to the 
delivery of sustainable growth 
for our shareholders and other 
stakeholders this report 
outlines our approach to 
governance and shire’s 
application of the main 
principles outlined in the uk 
corporate governance code
  more online at  
ar2013shirecom
having been a member of the board since 
2003 serving as chairman since 2008 
the board and i agreed in 2013 that it 
was timely to consider my succession 
following a rigorous selection process 
the board decided in january that susan 
kilsby would succeed me as chairman 
of the board and that this would take 
effect from the conclusion of shire’s 2014 
annual general meeting i am delighted 
with this decision having worked with 
susan on the board over the past few 
years i believe she is the ideal chairman 
for shire as the company embarks upon 
a new era of growth
as part of our continued review of 
the composition of the board and its 
committees a number of other changes 
have also been effected dominic 
blakemore was appointed as a non
executive director and member of the 
audit compliance  risk committee 
with effect from january 1 2014 dominic 
brings to the board amongst other things 
his strategic and financial experience 
detail on the selection process is outlined 
on page 62 of this report susan kilsby 
succeeded david kappler as chairman of 
the audit compliance  risk committee 
and dr david ginsburg was appointed as 
chairman of the science  technology 
committee with effect from may 2 2013 
susan kilsby was also appointed as a 
member of the nomination committee 
with effect from february 1 2014 
upon susan’s appointment as chairman 
of the board she will be succeeded 
by dominic as chairman of the audit 
compliance  risk committee in addition 
graham hetherington will step down as 
chief financial officer on march 1 2014 
to be succeeded on an interim basis by 
james bowling shire’s group financial 
controller a search for graham’s 
successor is currently underway
the annual board performance evaluation 
was conducted internally in 2013 and 
concluded that the individual members 
of the board remain effective in their 
ability to undertake their respective roles 
disclosure of the process and outcomes 
can be found on page 57 of this report
in leaving the company i am pleased to 
see that the board and its committees 
have the appropriate balance of skills 
and experience to lead shire through 
its next phase of growth the refreshed 
governance structure brought about 
through the implementation of the one 
shire operating model sees shire well 
placed to achieve continued enhanced 
value for shareholders and other 
stakeholders
54 shire plc annual report 2013 wwwshirecom uk corporate governance code
this report seeks to demonstrate how 
the main principles of the uk corporate 
governance code 2012 the “governance 
code” were applied throughout the 
financial year ended december 31 2013 
the board is of the opinion that during 
this period the company complied with 
the provisions of the governance code 
published by the financial reporting 
council the governance code is 
publicly available at wwwfrcorguk
leadership
role of the board
the principal purpose of the board is 
to provide leadership to the company 
in a manner that promotes its success 
thereby maximizing value for stakeholders 
including shareholders the board is 
responsible for determining the group’s 
strategy as well as overseeing its 
implementation by management in 
addition the board has oversight of all 
material matters impacting the company 
and its operations including its key policies 
material financial matters acquisitions 
the risks that the company faces and the 
actions taken to mitigate these and 
succession planning
chairman’s succession
given that matthew emmens has been 
a member of shire’s board since 2003 
holding the position of chairman since 
2008 both he and the board agreed in 
2013 that it was timely to consider the 
skills and experience that would be sought 
in his successor as chairman a special 
committee of the board chaired by the 
senior independent nonexecutive 
director was established to progress this 
in determining the skills and experience 
sought the special committee took 
account of amongst other things the 
company’s strategy its operations and 
the diversity and expertise currently on 
the board a process was followed which 
included meetings with interested existing 
board members and external candidates 
and was assisted by odgers berndtson 
and catalyst advisors following 
consideration of the candidates the 
board decided in january that susan 
kilsby would be appointed as matthew 
emmens’ successor and that this would 
take effect from the conclusion of the 
annual general meeting on april 29 2014 
ms kilsby was also appointed to the 
nomination committee on february 1 
2014 upon becoming chairman of 
the company she will step down as 
chairman of the audit compliance  
risk committee to be succeeded by 
mr blakemore
division of responsibilities
the board comprises the chairman 
eight other nonexecutive directors 
the chief executive officer and the chief 
financial officer the executive directors 
together with the executive committee 
are responsible for business operations 
the nonexecutive directors are charged 
with exercising independent judgment 
in board deliberations and ensuring 
the effective performance by senior 
management of their responsibilities
the chairman deputy chairman 
senior independent director and chief 
executive officer have distinctly different 
functions which are defined in writing 
and have been approved by the board 
these are summarised as follows
• chairman 
as chairman it is matthew emmens’ 
primary responsibility to provide 
leadership to the board ensuring that it 
operates effectively this is achieved in 
part through his promotion of a culture 
that fosters open and robust debate 
and that in turn contributes to positive 
engagement and constructive dialog in 
meetings matthew is also responsible 
for ensuring effective communications 
between the board and shareholders 
susan kilsby will succeed matthew as 
chairman on april 29 2014
• deputy chairman 
as deputy chairman david kappler is 
responsible for supporting and 
deputising for the chairman as required
• senior independent director 
as senior independent director it is 
david kappler’s responsibility to provide 
a sounding board for the chairman and 
to serve as a trusted intermediary for the 
other directors he is also responsible for 
leading meetings of the nonexecutive 
directors in the absence of the 
chairman and for consulting with 
shareholders when communication with 
the chairman or chief executive officer 
would be inappropriate
• chief executive officer 
flemming ornskov’s principal 
responsibility as chief executive officer 
is to manage shire’s daytoday business 
he is accountable to the board for the 
development of the company and its 
operations having due regard for 
objectives strategy and policies set 
forth by the board and its committees
full details of the aforementioned roles 
and responsibilities can be found on the 
company’s website
key activities
the principal activities of the board 
during the year were
 
strategy
• consideration and approval of 
the refined corporate strategy
• review and approval of the 
one shire reorganization 
including the simplification of 
the company into business 
units supported by a single 
rd organization and unified 
corporate functions
• review of material ma and 
inlicensing transactions 
including the approval of the 
acquisition of viropharma
 
governance
• consideration of feedback 
from investors and investor 
sentiment
• review and approval of 
quarterly earnings releases 
and key financial reports
• review and approval of 
the budget
• review and approval of 
policies including updated 
code of ethics and securities 
dealing policy
• consideration of health safety 
 environment update
 
risk  internal controls
• review of the company’s 
material risks and internal 
controls
 
succession planning
• supporting the ceo 
transition with flemming 
ornskov becoming ceo 
on april 30 2013
• chairman succession planning
• talent assessment
wwwshirecom annual report 2013 shire plc 55
strategic report governance financial statements other information board operation
during the year the board met regularly in order to discharge its duties for the most 
part board meetings were scheduled well in advance however two ad hoc meetings 
were held during the year in order to address thenprevailing circumstances in total 
eight meetings were held with those scheduled taking place over a two day period 
exceptions being those held in june and october which were held over one and 
three days respectively
board member
1
date of appointment
meeting 
attendance
2
matthew emmens
3
march 12 2003 88
susan kilsby
4
sept 1 2011 88
flemming ornskov
5
jan 2 2013 88
graham hetherington
6
july 1 2008 88
david kappler
7
april 5 2004 78
william burns march 15 2010 88
steven gillis oct 1 2012 88
david ginsburg june 16 2010 88
anne minto june 16 2010 88
david stout
8
oct 31 2009 78
angus russell
9
dec 13 1999 – april 30 2013 11
note the number in brackets denotes the number of meetings that board members were eligible to attend
1 
dominic blakemore was appointed as a member of the board on january 1 2014
2 
there were six scheduled and two ad hoc board meetings held during the year
3 
matthew emmens served as shire’s chief executive officer from march 12 2003 until june 18 2008 prior 
to his appointment as chairman matthew is to step down as chairman on april 29 2014
4 
susan kilsby is to be appointed chairman on april 29 2014
5 
flemming ornskov served as chief executive officer designate prior to his appointment as chief executive 
officer on april 30 2013
6 
graham hetherington is to step down as chief financial officer on march 1 2014
7 
as agreed in advance by the board david kappler was absent from one scheduled board meeting as 
a result of external commitments
8 
david stout was absent from one ad hoc board meeting which at short notice was timed to facilitate 
maximum possible board attendance
9 
angus russell stood down as chief executive officer on april 30 2013
only members of the board have 
entitlement to attend board meetings 
however during the year additional 
individuals attended by invitation the 
general counsel and company secretary 
attended all meetings of the board with 
regular additional attendees including the 
chief compliance and risk officer and the 
head of business development external 
professional advisors also attended 
meetings when necessary at the 
conclusion of each board meeting the 
nonexecutive directors met without the 
executive directors being present following 
which a meeting of the nonexecutive 
directors was held in the absence of the 
chairman typically matters considered 
by the board were those reserved for 
their judgment and decision as defined 
in the board reserve powers although 
supplementary matters were considered 
by the board as circumstances required 
the board reserve powers are available 
on the company’s website
the agenda for board meetings is 
determined by the chairman in collaboration 
with the chief executive officer and the 
company secretary the chairman also 
has the responsibility of providing all 
necessary materials to each of the directors 
in respect of which he is supported by the 
company secretary and other members 
of management at board meetings the 
chairman encourages debate with a view to 
achieving resolution by consensus however 
decisions are taken by majority vote when 
this is unable to be achieved with the 
chairman having a casting vote in the 
case of an equality of votes
board effectiveness
effective leadership is integral to the 
execution of the company’s strategy and 
therefore to the fulfillment of its objectives 
the board is committed to providing the 
company with the highest caliber of 
governance and in doing so promoting 
the company’s success for the benefit 
of all stakeholders
composition and diversity
during the year the board reviewed the 
independence of the nonexecutive 
directors other than the chairman in 
accordance with the factors set forth for 
consideration in the governance code 
and determined that each continued to 
be independent the governance code 
suggests that a length of service of more 
than nine years is relevant to the 
determination of a director’s independence 
therefore in considering the independence 
of mr kappler the board gave particular 
regard to the fact that at the time of the 
company’s annual general meeting in april 
2014 he will have served as a member of the 
board for a period of ten years despite his 
length of tenure the board concluded that 
mr kappler remained independent in 
character and judgment demonstrating 
continued effective performance and 
commitment to his role details of the board 
performance evaluation which included 
the consideration of nonexecutive director 
independence are available on page 57  
in addition the board regards each of its 
members as possessing the skills 
knowledge and experience necessary for 
it to function effectively with its composition 
commensurate to the complexity of the 
business board members’ biographical 
information can be found on pages 52 
and 53
the board recognizes the inherent value of 
diversity at all levels within the group and 
is therefore committed to its furtherance 
in 2012 shire’s board diversity policy was 
implemented which acknowledges that 
the company its shareholders and other 
stakeholders are best served by a board 
diverse in skill experience and background 
including gender the principles of the 
policy are taken into consideration 
during both the contemplation of new 
appointments and the annual evaluation of 
the board’s performance with its diversity
corporate governance report
continued
56 shire plc annual report 2013 wwwshirecom endorsing values reflected in recruitment 
policies in effect throughout the group 
additional disclosure relating to diversity 
within shire is made on page 21
appointments
the board may appoint any individual as 
a director either to fill a vacancy or as an 
additional member of the board the 
process for new appointments is typically 
headed by the nomination committee 
procedural details are available on page 62 
which ultimately makes a recommendation 
to the board appointments may be made 
by the board at any time subject to election 
and annual reelection by the company’s 
shareholders with the exception of matthew 
emmens and graham hetherington all of 
the directors are seeking either election or 
reelection at the annual general meeting 
to be held on april 29 2014 at which 
nonexecutive directors’ terms of 
appointment and executive directors’ 
service contracts will be made available 
for inspection by shareholders the board 
confirms that during the year each of the 
directors seeking reelection underwent 
a performance evaluation with each 
evidencing continued effective 
performance and commitment to their 
role further details relating to the board 
performance evaluation can be found below
commitment
prior to appointment each nonexecutive 
director is required to disclose to the 
board their other significant commitments 
so as to enable an assessment of their 
capacity to effectively discharge their 
anticipated duties and responsibilities 
the board in turn is informed by each 
nonexecutive director of any changes 
to their other significant commitments 
each nonexecutive director has 
undertaken that they are able to meet 
the time commitment expected of them 
which was duly communicated by the 
board prior to appointment as part of 
its performance evaluation the board 
determined that each of its members 
had committed sufficient time to 
perform their role effectively
conflict of interests
directors are required to seek consent from 
the board prior to being appointed to or 
acquiring any material financial interest in 
any enterprise which competes is likely to 
compete or has a significant business 
relationship with the group in addition 
directors are required to disclose the nature 
and extent of any interest they have whether 
direct or indirect in any transaction entered 
into or proposed to be entered into by the 
group which conflicts or may conflict with 
the group’s interests such disclosures are 
made at the first board meeting at which the 
transaction is considered after the director 
concerned becomes aware of the conflict of 
interest or potential conflict following which 
the director abstains from all associated 
discussion and voting
induction and development
upon appointment to the board all 
directors undergo a formal induction 
program tailored to their individual skills 
knowledge and experience the purpose 
of such a program is to facilitate each 
director’s familiarisation with the company’s 
business and strategy as well as their own 
duties and responsibilities prior to his 
appointment as chief executive officer 
flemming ornskov held the position of 
chief executive officer designate for a 
period of four months during this time 
he became familiar with the company 
its people the risks it faces and its 
opportunities through meeting board 
members and investors through visiting 
many of the company’s sites and meeting 
employees from across the business
in addition to undergoing an initial 
induction on an annual basis each 
director discusses with the chairman 
their individual development requirements 
with a view to ensuring that their skills 
knowledge and experience are regularly 
refreshed and that their familiarity with 
the company’s business is maintained
information and support
the chairman in collaboration with the 
company secretary and the executive 
directors is responsible for ensuring that 
board members are provided at all times 
with the information necessary for them 
to effectively discharge their duties and 
responsibilities before decisions are 
made at board meetings consideration 
is had as to the adequacy of the information 
available to the board prompting the 
deferral of decisions if further information 
is required directors are able to seek 
clarification additional information or 
professional advice necessary to the 
fulfillment of their duties and responsibilities 
from across the business from the 
company secretary or from independent 
sources at the company’s expense in 
addition the chairman supported by the 
company secretary ensures that effective 
channels of communication exist between 
the board its committees and the 
company’s senior management and that 
directors are kept uptodate of matters 
pertaining to the company’s governance
board performance evaluation
2012 progress
the 2012 externally facilitated evaluation 
identified two key action points in terms of 
enhancing the board’s effectiveness 
progress made against these items during 
the 2013 financial year is as follows
increased time for discussion concerning 
feedback from board committees
at board meetings more time has been 
allowed to enable discussion around 
committee feedback committee 
chairmen have increased the level of detail 
they include in their reports to the board 
summarising the material issues 
considered at committee meetings
enhanced board connectivity between 
meetings
there has been an increase in the level 
of informal board member contact 
between meetings with board members 
also invited to attend meetings of some 
committees of which they are not 
members in addition the board is 
provided with a formal operational 
update from the chief executive officer 
on a monthly basis
2013 procedure conclusions and 
action points
the 2013 board performance evaluation 
was carried out internally led by the 
chairman with the support of the company 
secretary and covered the performance of 
the board and of its members in addition 
the chairman of each board committee 
conducted a committee effectiveness 
review with their respective members 
the evaluation and review procedures 
consisted of onetoone interviews 
between the chairmen and individual 
board and committee members the 
board performance evaluation included 
wwwshirecom annual report 2013 shire plc 57
strategic report governance financial statements other information a review of strategy risks and internal 
controls chief executive officer 
succession board dynamics including 
board member independence and 
individual development requirements
the overall conclusion drawn from the 
2013 evaluation is that the individual 
members of the board remain effective 
in their ability to discharge their duties 
and responsibilities each continues to 
make a valuable contribution whilst 
demonstrating commitment to their role 
with the chairman displaying continued 
effectiveness in leadership the resultant 
board and committees can be seen to 
operate at a standard conducive to shire’s 
commitment to effective governance 
they enjoy open and robust debate 
and are provided with the information 
necessary for them to make informed 
judgments and decisions
in contemplating the results of the 2013 
evaluation and how effectiveness might 
be improved the board agreed that 
periodically it would invite speakers to 
provide an external perspective on issues 
or trends which may impact the 
company’s strategy or operations
relations with shareholders
the board is committed to maintaining 
open and constructive dialog with 
shareholders helping to ensure common 
awareness and interpretation of strategic 
objectives matters of governance and of 
the company’s performance the principal 
points of contact for major shareholders 
are the chief executive officer and the 
chief financial officer with the views of 
investors communicated to the board 
as a whole during the year the group 
engaged with shareholders through 
the following media
corporate governance report
continued
medium action
investor days and meetings with 
shareholders
executive directors and senior management held and attended numerous events that facilitated 
engagement with a significant proportion of the company’s shareholder base
results announcements and presentations the company communicated its performance to shareholders and analysts through quarterly financial 
results announcements each accompanied by an explanatory teleconference presentation given by the 
chief executive officer and the chief financial officer
financial reporting the company published half and fullyear reports in accordance with its listing on the london stock 
exchange and filed quarterly form 10qs and an annual form 10k as a result of its listing on the 
nasdaq global select market
annual general meeting the company’s annual general meeting was held in dublin on april 30 2013 shareholders were 
invited to attend to vote on resolutions and also to meet with members of the board each of whom 
were in attendance
website the company’s website wwwshirecom provides information about the group and is regularly 
updated with corporate and regulatory news ir events broker forecasts and other information 
pertaining to the company’s operations
investor relations the group’s investor relations department regularly responds to shareholder communications through 
its dedicated inbox investorrelationsshirecom
corporate responsibility reports and 
engagement
the company produces a biannual publication entitled “responsibility matters” which is distributed to 
employees and interested socially responsible investors in addition the company participated in two 
socially responsible investor days hosted by goldman sachs and morgan stanley the company’s 
website also has a dedicated “responsibility” section which is regularly updated
digital application shire’s ir briefcase application is regularly updated with news and presentations and provides access 
to the company’s latest annual report and accounts
58 shire plc annual report 2013 wwwshirecom board committees
so as to ensure effective oversight and 
control over the group’s operations 
the board has constituted the audit 
compliance  risk committee the 
remuneration committee the nomination 
committee the science  technology 
committee and the executive committee 
each of which has been delegated specific 
authorities the board committees’ terms 
of reference which are subject to annual 
review and approval by the board are 
available on the company’s website with 
further details as to their operation and 
activities presented in the respective 
reports below
auditor attended all meetings at the invitation 
of the committee chairman so as to 
facilitate open and unreserved discussion 
time was set aside at each meeting for the 
committee’s private deliberation with 
additional meetings held with the group’s 
external auditor the head of internal audit 
and the chief compliance and risk officer 
in the absence of the executive directors or 
other members of senior management
role of the committee
the purpose of the committee is to 
oversee shire’s accounting and financial 
reporting processes the audits of its 
financial statements and the effectiveness 
of the company’s risk management and 
internal control framework in doing so 
the committee’s principal duties are to
• monitor the integrity of the financial 
reports and statements of the group and 
where requested by the board advise on 
whether taken as a whole the annual 
report and accounts is fair balanced 
and understandable
• make recommendations to the board 
on matters relating to the appointment of 
the external auditor and to consider the 
findings and recommendations arising 
from the external audit process
• monitor and review the integrity and 
effectiveness of the group’s internal 
financial controls and internal control 
and risk management systems
• review the group’s strategy for the 
management of key corporate and 
financial risks and
• review the status of the group’s 
compliance program to ensure 
adherence to applicable legal and 
regulatory standards and to the 
group’s internal policies
in addition the committee is authorized to 
investigate any activity included within its 
terms of reference and is responsible for 
the resolution of any disagreement 
between senior management and the 
group’s external auditor regarding financial 
reporting matters the committee is also 
permitted to seek any information it 
requires from any employee of the group 
and any external professional advice at the 
company’s expense necessary to the 
fulfillment of its duties
audit compliance  risk committee
susan kilsby
chairman of the audit compliance  
risk committee
membership and meetings
as at the year end the audit compliance 
 risk committee comprised three 
independent nonexecutive directors 
each chosen for their knowledge and 
experience of financial matters financial 
reporting risk management and internal 
controls the board is satisfied that at least 
one member of the committee has recent 
and relevant financial experience in 
accordance with the requirements of 
the governance code
committee member
1
date of 
appointment
meeting 
attendance
susan kilsby
2
sept 1 2011 55
david kappler april 5 2004 55
david stout dec 8 2009 55
note the number in brackets denotes the number 
of meetings that committee members were eligible 
to attend
1 
dominic blakemore was appointed as a member 
of the committee on january 1 2014 and is to be 
appointed committee chairman on april 29 2014
2 
susan kilsby was appointed as chairman of the 
committee on may 2 2013 susan is to step down 
from the committee on april 29 2014
committee meetings held during the year 
coincided with key dates in the group’s 
financial reporting cycle during the year the 
chairman of the board the chief executive 
officer the chief financial officer the 
general counsel and company secretary 
the group financial controller the chief 
compliance and risk officer the head of 
internal audit and the group’s external 
wwwshirecom annual report 2013 shire plc 59
strategic report governance financial statements other information financial reporting
key considerations
the significant issues considered by the 
committee during the year in relation to 
the financial statements were
• purchase accounting related to the 
group’s acquisition of sarcode lotus 
tissue repair and premacure the 
committee reviewed and critiqued the 
valuation techniques and critical 
accounting estimates used in the financial 
statements and satisfied itself that these 
were reasonable and appropriately 
applied the committee addresses 
these matters through receiving reports 
from management which discuss the 
assumptions used in addition as a 
prime source of audit focus deloitte 
provide detailed reporting to the 
committee see note 4 to the 
consolidated financial statements
• accounting for litigation provisions and 
costs see note 3 iv and note 19 to the 
consolidated financial statements
• the carrying value of the company’s 
intangible assets the committee 
reviewed and critiqued the judgments and 
sensitivities relevant to intangible asset and 
goodwill impairment reviews and the 
impairment charges recognised in respect 
of goodwill in the group’s former 
regenerative medicine division and the 
resolor inprocess research and 
development assets the judgments in 
relation to asset impairment largely relate 
to the assumptions underlying the 
calculation of the value in use of the asset 
being tested primarily the achievability of 
the long term business plan underlying the 
valuation process the committee 
received reports from management 
outlining the basis for the assumptions 
used and in addition deloitte provided 
detailed reporting to the committee 
see note 3 i to the consolidated 
financial statements
• the review of questions posed by the 
sec regarding shire’s 2012 form 10k 
filing and the approval of shire’s 
response
• accounting for sales deductions and 
rebates and the key judgments and 
estimates applied by the company in 
calculating the liability recorded in the 
balance sheet for such items these 
judgments are discussed by the 
committee with management and as 
an area of audit focus deloitte provide 
regular reporting to the committee 
see note 3 ii to the consolidated 
financial statements
• accounting for various tax related 
matters including the level of tax 
provisions accounting for income tax is 
underpinned by a range of judgments 
see note 3 iii to the consolidated 
financial statements the committee 
addresses these issues through a range 
of reporting from senior management 
and also receives verbal and written 
reporting from deloitte on these 
matters and
• disclosures contained within the group’s 
2012 fullyear and 2013 quarterly results 
announcements and related financial 
reports
internal controls and risk management 
pertaining to the financial reporting process
the group’s internal controls over financial 
reporting are designed to provide 
reasonable assurance regarding the 
reliability of financial reporting and the 
preparation of financial statements for 
external purposes in accordance with 
generally accepted accounting principles
the key features of the company’s internal 
controls over financial reporting include a 
series of policies and procedures that
• pertain to the maintenance of records 
that in reasonable detail accurately and 
fairly reflect the acquisitions and 
disposals of the assets of the company
• provide reasonable assurance that 
transactions are recorded correctly so as 
to permit the preparation of financial 
statements in accordance with generally 
accepted accounting principles and that 
receipts and expenditures of the 
company are being made only in 
accordance with prescribed authorization 
levels and
• provide reasonable assurance regarding 
prevention or timely detection of 
unauthorized acquisition use or disposal 
of the company’s assets that could have 
a material effect on the company’s 
financial statements
because of inherent limitations of internal 
controls over financial reporting material 
misstatements due to error may not be 
prevented or detected projections of any 
evaluation of effectiveness for future 
periods are subject to the risk that controls 
may become inadequate because of 
changes in conditions or that the degree 
of compliance with the policies or 
procedures may deteriorate to mitigate 
this risk during the year the group’s 
management assessed the effectiveness 
of internal controls over financial reporting 
based on the framework in internal control 
– integrated framework issued by the 
committee of sponsoring organizations 
‘coso’ of the treadway commission 
based on this assessment management 
believes that the group’s internal controls 
over financial reporting were effective as of 
december 31 2013
the board together with the committee 
reviews material risks impacting the 
company on a timely basis as they arise 
in addition on an annual basis the board 
reviews the key risks associated mitigation 
plans and the effectiveness of the group’s 
internal controls with the committee 
conducting biannual reviews further 
details on risk mitigation can be found on 
page 24 in addition the group’s external 
auditor deloitte an independent registered 
public accounting firm has issued an 
independent auditor’s report on the 
effectiveness of the group’s internal 
controls over financial reporting which 
can be found on page 95
committee activities
the committee’s activities during the year 
related to the financial statements and 
associated internal controls and risk 
management systems included
• the review of the group’s treasury policies 
and activities including a review of the 
company’s governance and systems 
relating to cash and investment 
management
• the review of proposed financing 
arrangements pertaining to potential and 
ongoing ma activity 
• the monitoring of the group’s accounts 
receivable exposure in certain eurozone 
countries and the associated risk 
mitigation activities
• annual review of the group’s tax strategy 
and assessment of fiscal risk and
• the review and approval of the group’s 
delegated levels of authority
external audit
independence and objectivity
the committee recognises both the need 
for an objective and independent external 
auditor and how such objectivity and 
independence might be or appear 
compromised through the provision of 
nonaudit services accordingly the 
corporate governance report
continued
60 shire plc annual report 2013 wwwshirecom committee has overseen the 
implementation of a policy on the provision 
of nonaudit services by the external 
auditor with a view to safeguarding these 
core attributes the policy provides that 
amongst other things the auditor must not 
provide a service which
• creates a mutuality of interest
• places the auditor in a position where 
they would audit their own work
• results in the auditor acting as a manager 
or employee of the company or
• puts the auditor in role of advocate for 
the company
in addition the policy prescribes services 
from which the external auditor is explicitly 
prohibited from providing and those the 
provision of which has been preapproved 
by the committee subject to individual and 
aggregate monetary limits all proposed 
services falling outside of the scope of the 
policy or the monetary limits contained 
therein must receive preapproval from the 
committee or from its chairman subject to 
committee approval at its subsequent 
scheduled meeting
further factors identified as contributing to 
external auditor objectivity and 
independence include the external 
auditor’s retention of an impartial and 
questioning approach particularly with 
respect to issues of heightened sensitivity 
the firm’s prudent attitude to the 
consideration and undertaking of non
audit services and shire’s own principle 
of not recruiting staff directly from the 
external auditor engagement team
during the year the committee met 
with the external auditor to consider the 
external auditor’s independence and 
objectivity ensuring that the relationship 
between the external auditor and members 
of financial management had not resulted 
or appeared to result in a lack of 
independence or objectivity the 
committee considers that during 2013 
the external auditor was sufficiently robust 
in dealings with members of financial 
management and that in their absence 
the external auditor was transparent and 
decisive in dealings with the committee 
details of the breakdown and value of 
nonaudit fees paid or due to the external 
auditor as a result of services provided 
during 2013 can be found in note 30 to 
the consolidated financial statements
effectiveness
the committee recognises the importance 
of having a high caliber of audit and as 
such undertakes an annual assessment 
of the effectiveness of the external audit 
process as part of its evaluation the 
committee drew upon a survey of 
members of financial management which 
measured the external auditor’s 
performance against predetermined 
“critical success factors” designed to 
facilitate continuing and measurable 
improvement in the effectiveness of the 
external audit process the committee 
concluded that the “critical success 
factors” had been substantially met with 
there existing a constructive working 
relationship between the external auditor 
and members of financial management 
moreover the committee determined that 
the audit process was sufficiently robust 
with the external auditor demonstrating 
continued commitment to the performance 
of highquality audit work further areas of 
development were identified and 
communicated to the external auditor 
which in turn has committed to working 
with management and the committee to 
address these in 2014
appointment and tendering
deloitte llp has served as shire’s external 
auditor since 2002 with the current audit 
partner having served since his 
appointment in 2012 following the review 
of deloitte’s continued objectivity 
independence and performance in 
respect of the 2013 financial year and 
having received an expression of 
willingness to continue in office as external 
auditor the committee recommended to 
the board the reappointment of deloitte 
llp as the company’s external auditor for 
the 2014 financial year there existed no 
contractual obligations that inhibited or 
influenced the committee’s 
recommendation
in accordance with developments in the 
uk corporate governance regime and best 
practice with respect to external audit 
tendering and rotation it is the company’s 
policy that the external audit be put to 
tender at least once in every tenyear 
period with the external audit partner 
rotating on a fiveyearly basis 
notwithstanding such policy having 
regard to the financial reporting council’s 
“transitional arrangements” for external 
audit tendering and the ongoing 
developments in audit regulation it is the 
committee’s intention subject to then
prevailing circumstances to consider the 
external audit tender nearer the time of 
the next scheduled audit partner rotation 
in 2016
committee activities
the committee’s activities related to 
external audit during the year included
• the review of quarterly updates provided 
by the external auditor encompassing key 
risks audit planning governance updates 
and other businessrelated matters
• the final review of the 2012 audit and the 
initial review of the external auditor’s 
performance and effectiveness during 
the 2013 financial year including a review 
of management’s assessment of the 
performance and effectiveness of the 
external auditor
• the review and approval of the 2013 
audit plan and audit fee and
• an assessment of the objectivity and 
independence of the external auditor
other matters
internal audit
internal audit effectiveness is monitored 
and reviewed on an ongoing basis by 
senior management overseen by the 
committee with auditees providing 
supplementary feedback as appropriate 
the internal audit plan is approved 
annually by the committee progression 
against which is reviewed quarterly in 
addition every four years the company’s 
internal audit procedures and capabilities 
undergo an independent external 
assessment against global standards 
with the ensuing report reviewed by 
the committee chairman and the 
chief financial officer
whistleblowing
shire’s compliance effort is focused on the 
prevention and detection of misconduct 
through policy development training 
monitoring and audit as part of this effort 
shire employees are encouraged to report 
suspected cases of misconduct 
confidentially and without fear of retaliation 
through management or through shire’s 
global compliance helpline the helpline 
the operation of which is overseen by the 
chief compliance and risk officer is 
managed by an independent third party so 
as to preserve anonymity as appropriate 
concerns and allegations are thoroughly 
investigated with disciplinary action taken 
where necessary periodically the chief 
compliance and risk officer provides the 
committee with a summary of matters 
raised through management and the 
helpline as well as details of any resultant 
investigations
committee activities
during the year the committee’s other 
areas of review included
• compliance updates from the 
chief compliance and risk officer 
and the head of internal audit
• the renewal of terms of the group’s 
insurance program against the wider 
insurance market
• developments to the uk corporate 
governance regime and the associated 
implications for the company
• the company’s strategy in respect of it 
systems and its approach to cyber 
security
• the review of the group’s internal audit 
program and
• the review of the group’s corporate risk 
schedule including consideration of the 
key risks faced by the group and the 
associated mitigation strategy
wwwshirecom annual report 2013 shire plc 61
strategic report governance financial statements other information • reviewing succession planning for 
executive and nonexecutive directors 
with a view to ensuring the long term 
success of the group
• making recommendations to the 
board regarding the reelection and 
reappointment of nonexecutive 
directors and
• making recommendations to the 
board with respect to the membership 
of board committees
key considerations and activities
during the year the committee’s principal 
considerations and activities were
appointment of dominic blakemore
following a regular review of the 
composition of the board it was agreed 
early in the year to seek a new board 
member who would bring amongst 
other things financial and strategic 
experience with odgers berndtson 
assisting the search the board agreed 
to dominic’s appointment which was 
announced in october upon dominic’s 
appointment on january 1 2014 he 
also became a member of the audit 
compliance  risk committee of 
which he is to be appointed chairman 
on april 29 2014
committee effectiveness review
this process was led by the chairman 
of the committee with the assistance 
of the company secretary and involved 
onetoone discussions with each 
committee member the results of the 
review and the conclusions drawn were 
noted at the next board meeting
terms of reference review
during the year the committee 
reviewed its terms of reference and 
recommended minor modifications 
to the board for approval
board appointments procedure
board composition is central to the 
effective leadership of the group and 
therefore prior to commencing any 
search for prospective board members 
the committee reflects on the board’s 
current balance of skills and experiences 
and those that would be conducive to 
the delivery of the company’s strategy 
a recommendation is then made to the 
nomination committee
david kappler
chairman of the nomination committee
membership and meetings
at the year end the nomination 
committee’s membership comprised three 
independent nonexecutive directors and 
the chairman of the board
committee 
member
1
date of 
appointment
meeting 
attendance
david kappler april 26 2006 55
william burns june 27  2011 55
matthew emmens
2
june 18 2008 55
anne minto feb 8 2012 55
note the number in brackets denotes the number  
of meetings that committee members were eligible  
to attend
1
 susan kilsby was appointed as a member 
of the committee on february 1 2014
2
 matthew emmens is to step down on april 29 
2014
committee meetings are typically held 
before scheduled meetings of the board 
with additional meetings convened as 
required at the invitation of the committee 
chairman the chief executive officer 
attended all committee meetings held 
during the year
role of the committee
the committee is responsible for
• reviewing the size and composition of the 
board and making recommendations to 
the board with respect to alterations
• identifying and nominating for the 
approval of the board candidates for 
new board appointments
science  technology committee
dr david ginsburg
chairman of the science  technology 
committee
membership and meetings
as at the year end the science  
technology committee’s membership 
comprised three independent non
executive directors in accordance 
with the committee’s terms of reference 
the board is satisfied that at least one 
committee member has scientific 
expertise relevant to pharmaceutical 
research and development
committee  
member
date of 
appointment
meeting 
attendance
david ginsburg june 16 2010 55
william burns feb 8 2012 55
steven gillis oct 1 2012 55
note the number in brackets denotes the number  
of meetings that committee members were eligible  
to attend
corporate governance report
continued
board as to the core attributes sought 
following which an appropriately qualified 
external search firm is engaged and 
informed amongst other things of the 
time commitment required of any 
appointee and of shire’s board diversity 
policy shortlisted candidates are 
interviewed by as many of the committee 
members as is feasible following which 
any preferred candidate is made available 
to meet with other members of the board 
who collectively make the decision 
whether or not to appoint during the year 
odgers berndtson and catalyst advisors 
assisted the board with candidate 
searches both of which have no other 
connection with the company
62 shire plc annual report 2013 wwwshirecom the committee typically meets before 
scheduled meetings of the board with five 
meetings held during the year in addition 
to members of the committee the chief 
executive officer the head of business 
development the head of research  
development the heads of strategic 
planning  program management and the 
head of clinical research  development 
regularly attended meetings at the 
invitation of the committee chairman
role of the committee
the committee’s principal responsibility is 
to periodically review and advise the board 
on the company’s investment in research 
development and technology in doing so 
the committee
• advises the board on emerging science 
and technology issues and trends
• provides assurance to the board on the 
overall quality and expertise of medical 
and scientific talent within the company
• assures the board from a scientific 
perspective on the quality and 
competitiveness of the company’s rd 
programs and technology initiatives and
• provides the board with its views on the 
scientific technical and medical merits of 
any potential significant rd investments
key considerations
the committee’s principal considerations 
during the year covered
• significant data generated by latestage 
development programs including 
vyvanse for adults with bed and 
lifitegrast for adults with dry eye disease
• the results of the rd operational 
restructuring in accordance with the 
wider one shire restructuring initiative 
and
• the relevant clinical or material preclinical 
data identified during due diligence 
relating to material business development 
transactions including lotus tissue 
repair premacure sarcode and 
viropharma
executive committee
dr flemming ornskov
chairman of the executive committee
membership and meetings
chaired by the chief executive officer the 
executive committee’s membership is 
drawn from shire’s executive directors and 
senior management the committee 
formerly known as the leadership team 
comprises the chief executive officer the 
chief financial officer and the general 
counsel and company secretary
the committee typically meets on a 
monthly basis to deliberate significant 
items of business scheduling additional 
meetings as required in addition to its 
members during the year other members 
of senior management attended 
committee meetings at the invitation 
of the committee chairman
role of the committee
the committee is charged with managing 
shire’s business including
• ensuring that the group is run within the 
governance framework agreed by the 
board
• making strategic recommendations to the 
board and implementing the strategy 
approved by the board
• considering matters referred from 
management committees that are 
material from a risk financial reputational 
or strategic perspective referring 
decisions to the board as appropriate
• supervising the preparation of financial 
plans and budgets to be recommended 
to the board and monitoring the 
performance of the group’s inline 
products and pipeline projects against 
budget and
• managing internal talent and senior 
leadership succession planning and 
directing the group’s human resources 
approach within parameters agreed with 
the remuneration committee including 
the reward framework
key considerations
the committee’s significant considerations 
during the year included
• refinement of the group’s strategy 
recommending it to the board for 
approval
• review of potential and ongoing business 
development opportunities including 
integration plans
• the one shire restructuring initiative 
including development implementation 
and impact assessment
• financial matters including product 
performance reviews and budget 
updates
• compliance updates from across the 
group and
• human resource matters including policy 
review and approval and the preparation 
of the corporate scorecard 
wwwshirecom annual report 2013 shire plc 63
strategic report governance financial statements other information anne minto
chairman of the remuneration 
committee
dear shareholder
as chairman of the 
remuneration committee  
i am pleased to present our 
remuneration report for the 
financial year ended december 
31 2013 which has been 
prepared in compliance 
with the new uk reporting 
requirements 
directors’ remuneration report
the committee believes that the purpose 
of its remuneration policy is to support the 
company’s strategy to grow the business 
and deliver value to stakeholders by 
focusing on significant unmet patient need 
in specialist areas and providing more 
innovative treatments to more patients 
the remuneration policy therefore has a 
strong focus on strategic alignment and 
both corporate and individual performance
based remuneration in particular 
remuneration delivered in shares and vesting 
over the longer term it also recognizes that 
we compete internationally and in particular 
in the us labor market for limited talent in 
the biotechnology and pharmaceutical 
sectors
we have sought to ensure that the 
remuneration report sets out clearly 
our remuneration policy and how it was 
implemented in 2013 ahead of the detail 
i would like to take this opportunity to outline 
the committee’s key decisions over the past 
year and summarize the performance and 
other context for these decisions
context to the committee’s decisions
following the appointment of a new chief 
executive officer “ceo” in 2013 we have 
undertaken significant changes at shire 
we refined our strategy enhanced and 
reprioritized our portfolio to focus even 
more on rare diseases and late stage 
assets created a simpler more 
streamlined and effective organization 
one shire implemented a new 
governance model to ensure enterprise
wide decision making and resource 
allocation and reset our cost base 
shareholders have responded well to 
these wideranging changes and share 
price performance has been strong with 
an ordinary share price increase of 51 
and an american depositary share ads 
price increase of 53 in 2013
as well as implementing this major 
transformation which has made us even 
stronger more flexible and focused we 
have continued to deliver on short term 
performance as demonstrated by a strong 
set of financial results highlights of shire’s 
financial performance during 2013 include
• product sales from continuing operations 
in 2013 were up 12 to 4757 million 
and including dermagraft product 
sales were up 10 to 4847 million
• non gaap operating income
1
 increased 
by 23 to 1860 million in 2013 and
• non gaap adjusted roic
1
 grew by 180 
basis points in 2013 over 2012 to 156
in addition our non financial 
accomplishments include the successful 
completion of four acquisitions notably 
our most recent acquisition viropharma 
which is the highest value deal in shire’s 
history further geographical expansion 
particularly into asia and other 
achievements which further expanded 
our inline product portfolio and 
development pipeline as described in 
the key performance indicators section 
earlier in this report
key committee decisions
the committee is satisfied that there is 
strong alignment between company 
performance and the remuneration of the 
executive directors the key decisions 
made by the committee include
• a salary increase of approximately 8 for 
the ceo reflecting both his performance 
in role and bringing his salary in line with 
the median for comparable roles as set 
out in last year’s remuneration report 
and in line with our remuneration policy 
this is consistent with the pattern of 
increases across the organization where 
strong performers are given above 
average increases to achieve appropriate 
market positioning
• incentive awards for the ceo subject to 
stretching performance conditions and 
above target level reflecting shire’s 
strong corporate performance in 2013 
as well as his individual contribution to the 
company’s continued success
1 
refer to page 160 for details of this non gaap 
measure
2 
excluding results for dermagraft operations
64 shire plc annual report 2013 wwwshirecom • the maximum vesting of the 2011 
portfolio share plan “psp” award to the 
chief financial officer “cfo” reflecting 
our excellent financial performance over 
the performance period on the basis of 
a compound annual growth rate 
“cagr” of 182 in non gaap ebitda 
and a 220 basis point increase in non 
gaap adjusted roic
2
 over the last 
three years
• in addition the committee carefully 
considered the remuneration decisions in 
relation to the cfo’s departure including 
no salary increase or long term incentive 
award to be made in 2014 in the light of 
his scheduled leave date in line with the 
committee’s policy of transparency with 
shareholders further detail is set out later 
in this report
given the strategic and organizational 
changes through 2013 as well as the 
strong level of support from shareholders 
for our remuneration policy and decisions 
in recent years the committee decided 
not to make any significant changes to 
our overall remuneration approach
however a large amount of time was 
spent considering the new uk reporting 
requirements and associated guidance as 
well as meeting with our major shareholders 
and key shareholder advisory bodies to 
ensure the remuneration report was 
compliant clear and met our shareholders’ 
expectations as far as possible in the light 
of these shareholder discussions the 
committee made two important decisions 
firstly pending a wider remuneration 
review in 2014 to seek shareholder 
approval for a long term incentive grant 
policy limited to existing target ranges 
rather than the higher plan rule grant 
maxima and secondly to further 
enhance the transparency of its annual 
incentive award disclosure compared 
to previous years
looking forward
2013 was an important year in shire’s 
continued development as we laid 
foundations to grow the value of shire for 
the benefit of our patients shareholders 
and other stakeholders with the revised 
strategy and organizational structure 
coming into place a review of our 
remuneration policy and arrangements 
will take place in 2014 to ensure they 
remain appropriate this review will take 
into account a variety of considerations 
including strategic alignment linkages 
to performance market practice and 
shareholder views we will of course 
engage with shareholders at the 
appropriate time to discuss the findings
finally i would like to thank my fellow 
committee members for their extensive 
contributions as well as both the internal 
and external teams that have supported 
the committee over the past year
on behalf of the board
anne minto
chairman of the remuneration committee
february 24 2014 
index to the directors’ remuneration report
this report has been prepared in compliance with schedule 8 of the large and medium sized 
companies and groups accounts and reports regulations 2008 as amended during the course of 
2013 the “schedule 8 regulations” as well as the companies act 2006 and other related 
regulations this report is set out in the following key sections 
part 1 – annual statement
part 2 – directors’ remuneration policy
a executive director remuneration policy 66
b chairman and nonexecutive director remuneration policy 69
c recruitment remuneration policy 69
d service contracts and termination arrangements 70
e remuneration scenarios 72
f shareholder engagement 73
g remuneration of other employees 73
part 3 – annual report on remuneration 
a implementation of directors’ remuneration policy in 2014 75
b 2013 single total figure of remuneration for executive directors subject to audit 78
c 2013 single total figure of remuneration for the chairman and nonexecutive directors  
subject to audit 82
d executive directors’ interests under long term incentives awarded during 2013  
subject to audit 83
e retirement arrangements for angus russell subject to audit 84
f payments to past directors subject to audit 85
g directors’ shareholdings and scheme interests subject to audit 85
h tsr performance graph 87
i percentage change in ceo remuneration 88
j relative importance of spend on pay 88
k remuneration committee 89
the directors’ remuneration policy part 2 will be subject to a binding shareholder vote at the 2014 
annual general meeting “agm” to obtain approval for a period of no more than 12 months effective 
from january 1 2015 a strategic remuneration review is scheduled for 2014 and it is anticipated that 
a new remuneration policy will be presented to shareholders at the 2015 agm the remainder of this 
report will be put to an advisory shareholder vote at the 2014 agm
wwwshirecom annual report 2013 shire plc 65
strategic report governance financial statements other information directors’ remuneration report 
continued
part 2 – directors’ remuneration policy
a executive director remuneration policy
purpose  link to strategy operation  performance assessment opportunity 
overall remuneration
to recruit and retain high caliber 
executives and encourage them 
to enhance the company’s 
performance responsibly in line 
with the company’s strategy and 
shareholder interests
the overall remuneration package for the executive directors is 
designed to provide an appropriate balance between fixed and 
variable performancerelated components with a significant element 
of long term variable pay given the long term nature of the business
overall remuneration is positioned in line with a midatlantic peer group 
which comprises a blend of us and uk companies taking into account 
scale and international complexity uk market data is based on other 
companies within the ftse 100 index excluding financial services 
utilities and mining companies the greater number of comparable us 
companies allows further refinement of us market data to only include 
companies in the pharmaceutical biotechnology and related sectors
the committee is satisfied that the composition and structure of the 
remuneration package is appropriate and does not incentivize undue 
risk taking
in terms of total remuneration the company’s 
policy is to target at around median of the relevant 
market and to allow for higher pay levels to 
recognize superior performance
fixed elements – base salary
to recognize the market value 
of the role an individual’s skills 
experience and performance 
as well as their contribution 
to leadership and 
company strategy
base salary is paid in cash and is pensionable
individual and corporate performance are factors considered during the 
annual base salary review process any increases typically take effect 
on january 1 each year
any significant salary increases such as in cases where executive 
directors are relatively new in role changes in responsibilities or 
significant variance to the market will be appropriately explained
base salary is targeted at around median of the 
midatlantic peer group the exact positioning 
depends on a variety of factors such as individual 
experience and performance total remuneration 
increases across the company and shareholder 
views
where appropriate annual increases are made in 
line with the average of employees’ salary 
increases unless the committee determines 
otherwise based on the factors listed above
the annual base salaries for the executive 
directors are set out in part 3a of this report
66 shire plc annual report 2013 wwwshirecom purpose  link to strategy operation  performance assessment opportunity 
fixed elements – retirement and other benefits
to ensure that benefits are 
competitive in the markets in 
which the company operates
dr ornskov participates in the 401k plan and the supplemental 
executive retirement plan “serp” in the us the serp is an unfunded 
defined contribution scheme the benefits are payable as lump sums on 
leaving the company’s employment or in the event of death or disability
mr hetherington’s retirement benefits are provided through a 
combination at his election of cash allowance and participation in a 
uk hmrc registered defined contribution plan which the company 
operates for uk employees
the company provides a range of other benefits which may include 
a car allowance long term disability and life cover private medical 
insurance and financial and tax advisory support these benefits 
are not pensionable other benefits may be offered if considered 
appropriate by the committee
the company may also meet certain mobility costs such as relocation 
support expatriate allowances temporary living and transportation 
expenses in line with the prevailing mobility policy and practice for 
senior executives
executive directors are eligible to participate in any allemployee 
share plans operated by the company such as the sharesave scheme 
in the uk and the employee stock purchase plan “espp” in the us 
and other countries
dr ornskov receives a total fixed contribution of 
30 of annual salary and mr hetherington 
receives a total fixed contribution of 25 of annual 
salary by way of retirement benefit provision
the cost to the company of providing other 
benefits may vary depending on for example 
market practice and the cost of insuring certain 
benefits
short term incentives – executive annual incentive plan “eaip”
to reward individuals with an 
award based on achievement of 
predefined committee approved 
corporate objectives the 
corporate scorecard and the 
individual’s contributions toward 
achieving those objectives
key performance measures are 
set by the committee both in the 
context of annual performance 
as well as to ensure progress 
towards our strategy – to grow 
our business and deliver value to 
our stakeholders by focusing on 
significant unmet patient need in 
specialist areas and providing 
more innovative treatments to 
more patients
in determining eaip awards for the executive directors the committee 
considers performance against each of the key performance measures 
within the corporate scorecard taking into account the impact on the 
company’s performance of strategic actions as well as the company’s 
response to external opportunities and events that could not have been 
predicted at the beginning of the year together with performance 
against personal objectives in addition the committee may amend the 
performance measures or targets in exceptional circumstances where 
it considers that they are no longer appropriate
the cash element 75 of any award is paid in the first quarter of the 
year following the performance year and the deferred shares element 
25 of any award is deferred and released after a period of three 
years subject to the participant’s employment not being terminated 
for cause the release of deferred shares includes dividend shares 
representing accumulated dividends
clawback arrangements are in place for awards to cover situations 
where results are materially misstated or in the event of serious 
misconduct
90 and 80 of base salary is payable for target 
performance for the ceo and cfo respectively 
and up to 180 and 160 for maximum 
performance although actual payouts can range 
from 0 threshold performance upwards
each year the committee determines the 
measures and weightings for the corporate 
scorecard within the following parameters
• at least 75 of the corporate scorecard will 
be based on financial performance
• other corporate scorecard measures will 
comprise other strategic priorities such as
 − strengthening the commercial portfolio
 − expanding the development pipeline and
 − enhancing organizational effectiveness
the precise allocation between financial and non 
financial measures as well as the weightings 
within these measures will depend on the 
strategic focus of the company in any given year
wwwshirecom annual report 2013 shire plc 67
strategic report governance financial statements other information directors’ remuneration report 
continued
purpose  link to strategy operation  performance assessment opportunity 
long term incentives – portfolio share plan
to incentivize individuals to 
achieve sustained growth 
through superior long term 
performance and create 
alignment with shareholders
the performance measures for 
the psp awards are non gaap 
ebitda
1
 and non gaap 
adjusted roic
2
 these 
measures were selected by the 
committee as it believes that 
they represent meaningful and 
relevant measurements of our 
performance and are an 
important measure of our ability 
to meet our strategic objective to 
grow our business and deliver 
value to our stakeholders
the committee reviews annually 
whether the performance matrix 
structure and metrics remain 
appropriate and challenging 
taking into account the 
company’s strategic objectives 
and shareholder interests
psp grants for the executive directors comprise two types of award
• sar awards a stock appreciation right “sar” is the right to 
receive ordinary shares or adss linked to the increase in value of 
ordinary shares or adss from grant to exercise
• psa awards a performance share award “psa” is the right to 
receive a specified number of ordinary shares or adss
sar and psa awards granted to executive directors vest three years 
from the date of grant subject to the satisfaction of performance 
conditions and are governed by the psp rules sar awards can be 
exercised up to the seventh anniversary of the date of grant these two 
types of award are made to ensure a balance between the emphasis 
on share price growth that the sar awards provide and the retentive 
properties of the psa awards
vesting of awards requires the achievement of non gaap ebitda and 
non gaap adjusted roic targets within a performance matrix the 
committee reserves the right to make adjustments to the matrix to 
reflect significant one off items which occur during the vesting period 
significant adjustment events “saes” potential saes are reviewed 
by the committee against preexisting guidelines
3
 the committee will 
make full and clear disclosure of any such adjustments in the directors’ 
remuneration report “drr” together with the non gaap adjusted 
roic performance at the end of the performance period
in addition awards only vest if the committee determines that the 
underlying performance of the company is sufficient to justify the 
vesting of the award
performance targets are set by the committee to ensure alignment with 
the company’s current long range plans and strategy the company’s 
weighted average cost of capital and recent broker forecasts
clawback arrangements are in place for awards to cover situations where 
results are materially misstated or in the event of serious misconduct
the committee has established the following 
target levels of award in face value terms
for the ceo
• 400 of base salary for sar awards and
• 300 of base salary for psa awards
for the cfo
• 300 of base salary for sar awards and
• 220 of base salary for psa awards
the committee’s policy is that each year awards 
will be made to executive directors of between 
80 and 120 of these target levels depending 
on performance and consideration of appropriate 
benchmarks in doing so the committee gives 
consideration to the expected value of the award 
which enables comparison to other shire 
employees whose long term incentives are 
determined in expected value terms as well 
as to the external market
threshold vesting under the performance matrix is 
equal to 25 of any award made with maximum 
vesting being equal to 100 of any award made
1 
non gaap ebitda growth is defined as the cagr of non gaap ebitda as derived from the group’s non gaap financial results included in its full year earnings 
releases over the three year vesting period
2 
non gaap adjusted roic reflects the definition used by the company in its corporate scorecard this definition aims to measure true underlying economic 
performance of the company by making a number of adjustments to roic as derived from the company’s non gaap financial results including
• adding back to non gaap operating income all rd expenses and operating lease costs incurred in the period
• capitalizing on the group’s balance sheet historical cumulative rd in process rd and intangible asset impairment charges and operating lease costs which 
previously have been expensed
• deducting from non gaap operating income an amortization charge for the above capitalized costs based on the estimated commercial lives of the relevant products
• excluding the income statement and balance sheet impact of non operating assets such as surplus cash and non strategic investments and
• taxing the resulting adjusted operating income at the underlying non gaap tax rate
3 
the significant adjustment events preexisting guidelines consist of the following
• the event results from a strategic action that has a short term impact on non gaap adjusted roic or non gaap ebitda growth but is in the long term interest 
of shareholders or the event was external and results in a significant change to the company’s operating environment
• the event is a one off as opposed to recurring in nature
• the event is “significant” which is defined by reference to its impact on non gaap ebitda relative to a materiality threshold and
• the event was not taken into account when the performance matrix was set
legacy matters in relation to executive director remuneration
the committee will honor remuneration and related commitments to current and former directors including the exercise of any discretions available to the 
committee in relation to such commitments where the terms were agreed prior to the approval and implementation of the remuneration policy detailed in this report
68 shire plc annual report 2013 wwwshirecom b chairman and nonexecutive director remuneration policy
purpose  link to strategy operation  performance assessment opportunity 
overall remuneration
to attract and retain high caliber 
individuals by offering market 
competitive fee levels
the chairman is paid a single fee for all of hisher responsibilities 
the nonexecutive directors are paid a basic fee the members and 
chairmen of the main board committees and the senior independent 
director are paid a committee fee to reflect their extra responsibilities
the nonexecutive directors receive 25 of their total fees in the form 
of shares given his significant shareholding in shire the current 
chairman receives his fee in the form of cash only
the company reimburses reasonably incurred expenses and 
nonexecutive directors are also paid an additional fee in respect of 
each transatlantic trip made for board meetings
the fees paid to the chairman and the nonexecutive directors are not 
performancerelated the nonexecutive directors do not participate in 
any of the group share plans pension plans or other employee benefit 
schemes with the exception of the current chairman only who is 
provided with private family medical coverage to which both he and the 
company contribute
fees are determined by the executive directors 
and the chairman with the exception of the 
chairman’s fee which is determined by the 
committee they are benchmarked against a 
blend of us and uk companies similar to those 
used for benchmarking the executive directors’ 
remuneration the midatlantic peer group in 
addition the fees for the chairman also take into 
account the anticipated time commitment for the 
role and experience of the incumbent
benchmarking of nonexecutive directors’ fees 
takes place on an annual basis
c recruitment remuneration policy
the following table sets out the various components which would be considered for inclusion in the remuneration package for the 
appointment of an executive director and the approach to be adopted by the committee in respect of each component the 
committee will review this policy as part of the planned 2014 remuneration review in particular it will reflect further on whether some 
additional flexibility would be prudent to facilitate the recruitment of a new executive director any changes envisaged as a result of 
the 2014 review will be discussed with shareholders and will be included in the recruitment remuneration policy that will be put to 
shareholders for a binding vote at the 2015 agm
area policy and operation
overall • the committee’s approach when considering the overall remuneration arrangements in the recruitment of a member of 
the board from an external party is to take account of the executive director’s remuneration package in their prior role the 
market positioning of the remuneration package and to not pay more than necessary to facilitate the recruitment of the 
individual in question
fixed elements
base salary retirement and 
other benefits
• the salary level will be consistent with the company’s midatlantic peer group
• the executive director shall be eligible to participate in shire’s employee benefit plans including coverage under all 
executive and employee pension and benefit programs in accordance with the terms and conditions of such plans as 
may be amended by the company in its sole discretion from time to time
• the company may meet certain mobility costs including relocation support expatriate allowances temporary living and 
transportation expenses in line with the prevailing mobility policy and practice for senior executives
short term incentives • the appointed executive director will be eligible to earn a discretionary annual incentive award in accordance with the 
rules and terms of shire’s executive annual incentive plan or successor bonus plan
•  the level of opportunity will be consistent with that stated in part 2a of this report
long term incentives • the executive director will be eligible for performancebased equity awards in accordance with the rules and terms of 
shire’s portfolio share plan or successor long term incentive plan
•  the quantum will be consistent with that stated in part 2a of this report and the committee reserves the right to exceed 
target ranges in exceptional circumstances within the limits set out in the plan rules
wwwshirecom annual report 2013 shire plc 69
strategic report governance financial statements other information directors’ remuneration report 
continued
area policy and operation
replacement awards • the committee will consider what replacement awards if any are reasonably necessary to facilitate the recruitment of a 
new hire executive director in all circumstances this includes an assessment of the awards and any other compensation 
or benefits item that would be forfeited on leaving their current employer
•  the committee will seek to structure any replacement awards such that overall they are not significantly more generous in 
terms of quantum or vesting period than the awards due to be forfeited
•  in determining quantum and structure of these commitments the committee will seek to provide broadly equivalent value 
and replicate as far as practicable the timing and performance requirements of remuneration foregone
•  the committee will seek to ensure that a meaningful proportion of the replacement awards which are not attributable to 
long term incentives foregone will be delivered in shire deferred shares released at a later date and subject to continued 
employment
•  if the executive director’s prior employer pays any portion of the remuneration that was deemed foregone the 
replacement payments shall be reduced by an equivalent amount
•  replacement share awards if used will be granted using the company’s existing long term incentive plan to the extent 
possible although awards may also be granted outside of this plan if necessary and as permitted under the listing rules
•  in the case of an internal hire any outstanding awards made in relation to the previous role will be allowed to pay out 
according to their original terms if promotion is part way through the year an additional topup award may be made to 
bring the executive director’s opportunity to a level that is appropriate in the circumstances
d service contracts and termination arrangements
executive directors
the committee’s policy on service contracts and termination arrangements for executive directors is set out below as an overriding 
principle it is the committee’s policy that there should be no element of reward for failure the committee’s approach when 
considering payments in the event of termination is to take account of the individual circumstances including the reason for 
termination performance contractual obligations of both parties as well as share plan and pension scheme rules
notice period • the committee’s policy is that executive directors’ service contracts should provide for a notice period of 12 months from 
the company and the executive director
•  the committee believes this policy provides an appropriate balance between the need to retain the services of key 
individuals for the benefit of the business and the need to limit the potential liabilities of the company in the event of 
termination
• the contracts for flemming ornskov and graham hetherington do not have a fixed term but provide for a notice period of 
12 months in line with this policy their contracts are dated october 24 2012 and july 2 2008 respectively
contractual payments • executive directors’ contracts allow for termination with contractual notice from the company or termination by way of 
payment in lieu of notice at the company’s discretion neither notice nor a payment in lieu of notice will be given in the 
event of gross misconduct
•  payments in lieu of notice could potentially include up to 12 months’ base salary and the cash equivalent of 12 months’ 
pension contributions car allowance and other contractual benefits there is no contractual entitlement to annual incentive 
payments in respect of the notice period – any award is at the committee’s absolute discretion performancerelated and 
capped at the contractual target level
•  payment in lieu of notice would be made where circumstances dictate that the executive directors’ services are not 
required for the full 12 months of their notice period contracts also allow for phased payments on termination which allow 
for further reduction in payments if the individual finds alternative employment outside of the company during the notice 
period
70 shire plc annual report 2013 wwwshirecom retirement benefits • normal treatment to apply as governed by the rules of the relevant pension plan no enhancement for leavers will be made
short term incentives • where an executive director’s employment is terminated after the end of a performance year but before the payment is 
made the executive will remain eligible for an annual incentive award for that performance year subject to an assessment 
based on performance achieved over the period no award will be made in the event of gross misconduct
•  where an executive director’s employment is terminated during a performance year a prorata annual incentive award for 
the period worked in that performance year may be payable subject to an assessment based on performance achieved 
over the period
•  the committee’s policy is not to award an annual incentive for any portion of the notice period not served
•  the relevant plan rules provide that any outstanding deferred shares will vest in accordance with the regular vesting period 
except for where an executive director’s employment is terminated for cause
long term incentives • the treatment of unvested long term incentive awards is governed by the rules of the relevant incentive plan as approved 
by shareholders
•  where an individual’s employment terminates the current psp rules provide for unvested long term incentive awards to 
lapse except as set out below
•  under the current psp rules where an individual is determined to be a “good” leaver unvested long term incentive awards 
vest upon termination subject to performance against applicable performance conditions and unless the committee 
determines otherwise pro rating for time any committee determination will take into account a number of considerations 
in particular the individual’s performance and other circumstances relating to their termination of employment
•  good leaver reasons include retirement in accordance with the company’s retirement policy illhealth injury or disability 
and redundancy or in other circumstances that the committee determines
•  pro rating for time will be calculated on the basis of the number of complete weeks in the relevant period during which 
the executive was employed or would have been employed had the executive remained in employment throughout the 
notice period as a proportion of the number of complete weeks in the relevant period
•  where an executive director’s employment is terminated or an executive director is under notice of termination for any 
reason at the date of award of any long term incentive awards no long term incentive awards will be made
change in control • in relation to unvested long term incentive awards the current psp rules provide that unvested awards will normally only 
vest on a change in control to the extent that any performance condition has been satisfied unless the committee 
determines otherwise and would be reduced where less than two years have elapsed from the relevant grant date
•  the committee’s policy is that contracts of employment should not provide additional compensation on severance as a 
result of change in control
external appointments
executive directors are permitted to hold external nonexecutive directorships subject to prior approval by the board any fees 
received from such appointments are retained by the executive director
dr ornskov resigned from his position as nonexecutive chairman of evotec ag in june 2013 for his services as nonexecutive 
chairman from january 1 2013 to the date of resignation he was paid fees of €35048 mr russell is a nonexecutive director of 
intermune inc in respect of this position he was paid fees of 20000 in respect of such service whilst serving as chief executive 
officer of shire plc dr ornskov and mr russell both retained the fees paid in respect to their external appointments
chairman and nonexecutive directors
nonexecutive directors have letters of appointment and are appointed by the board ordinarily for a term of two years their initial 
appointment and any subsequent reappointment are subject to election and thereafter annual reelection by shareholders non
executive directors are not entitled to compensation for loss of office
details of the letters of appointment and length of service for each nonexecutive director are as follows
director
1
date of current letter of 
appointment expiry of current term
matthew emmens june 18 2012 june 17  2014
david kappler april 5 2012 april 4 2014
william burns march 15 2012 march 14 2014
steven gillis october 1 2012 september 30 2014
david ginsburg june 16 2012 june 15 2014
susan kilsby september 1 2013 august 31 2015
anne minto june 16 2012 june 15 2014
david stout october 31 2013 october 30 2015
dominic blakemore january 1 2014 december 31 2015
1 
all nonexecutive directors are subject to a three month notice period
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strategic report governance financial statements other information directors’ remuneration report 
continued
e remuneration scenarios
the composition and value of the executive directors’ remuneration packages in three performance scenarios are set out in the 
charts below these show that the proportion of the package delivered through long term incentives supports the long term nature of 
the business and changes significantly across the performance scenarios the level of remuneration is in accordance with the 
executive director remuneration policy set out in part 2a of this report
  fixed elements base salary retirement beneﬁts and other beneﬁts
  short term incentives executive annual incentive plan
  long term incentives portfolio share plan 
33
20
100
1736
5311
8886
22
26
45
54
fixed only
ontarget performance
maximum performance
ceo flemming ornskov
value of package ’000
0 2 4 6 8 10000
 
  fixed elements base salary retirement beneﬁts and other beneﬁts
  short term incentives executive annual incentive plan
  long term incentives portfolio share plan 
38
23
100
£626
£1664
£2702
23
28
39
49
fixed only
ontarget performance
maximum performance
cfo graham hetherington
value of package £’000
0 1 2 £3000
the scenarios are defined as follows
fixed only ontarget performance maximum performance
fixed elements fixed elements do not vary with performance and comprise
• 2014 annualised base salary
• benefits included in the summary of 2013 remuneration table on page 78 excluding any one off items and
• retirement benefits is the cash value of the total company contributions to the company plans by way of a contribution 
andor by way of a cash allowance this represents 30 of base salary for the ceo and 25 of base salary for the cfo
these definitions are consistent with the schedule 8 regulations
short term incentives –
eaip  of maximum 
opportunity
0 50 100
long term incentives –
psp  of maximum vesting
1
0 50 vesting
2
100 vesting
1 
in accordance with the schedule 8 regulations no allowance has been made for share price appreciation sar awards are valued with the same blackscholes 
model that is used to determine the share based compensation cost included in the company’s consolidated statements of income any dividend shares receivable 
have been ignored
2 
a level of 50 vesting for ‘ontarget’ performance reflects the midpoint of the performance range under the psp performance matrix which the committee believes 
to be a fair assumption for ‘ontarget’ performance
the executive directors’ remuneration package promotes the achievement of superior long term performance and aligns the 
interests of the executive directors with those of shareholders
72 shire plc annual report 2013 wwwshirecom f shareholder engagement
the committee takes the views of shareholders very seriously and is committed to ongoing dialogue with the company’s 
shareholder base which has a significant transatlantic element this can take a variety of forms including meetings with major 
shareholders to consider significant potential changes to policy or specific issues of interest to particular shareholder groups other 
dialogue to update shareholders and receive their feedback on planned refinements to arrangements and annual voting on the drr
in light of the new schedule 8 regulations and the first binding vote on remuneration policy scheduled for the 2014 agm the 
committee carried out a shareholder consultation exercise in late 2013early 2014 which included meetings with many of the 
company’s largest shareholders as well as key shareholder advisory bodies key topics discussed included
• application of the binding policy from january 1 2015
• approach to key new disclosures such as the recruitment remuneration policy and service contracts and termination arrangements 
and
• disclosure of prospective and retrospective annual incentive award targets
these discussions have informed the disclosures in this report in particular the disclosure of 2013 eaip outcomes the committee 
is also aware of shareholder views on a number of other issues including holding periods in relation to long term incentives 
the committee will take these views as well as market practice into account during the planned 2014 remuneration review
g remuneration of other employees
the committee recognizes that remuneration has an important role to play in supporting the implementation and achievement 
of the company’s strategy and ongoing performance when making remuneration decisions in respect of the executive directors 
the committee is sensitive to pay and employment conditions across the company in particular in relation to base salary decisions 
where the committee considers the broader employee salary increase budget the committee approves the overall annual bonus 
funding for the company each year and has oversight over the grant of all psp awards across the company in addition annual 
performance for the executive directors is measured against the backdrop of the same corporate scorecard that is appropriately 
cascaded across the organization
given shire’s diverse employee base employing over 5000 people in 30 locations the committee does not consider it appropriate 
to consult with employees over the remuneration policy for executive directors however many of the company’s employees are 
shareholders through the company’s allemployee share plans and are therefore able to express their views on director remuneration 
at each general meeting the company also periodically carries out an employee engagement survey which provides employees the 
opportunity to feedback their views on a variety of employmentrelated matters including remuneration
the diagram set out on the following page illustrates how our remuneration policy and arrangements reinforce the achievement 
of shire’s success and ensures that executives and employees are focused on delivering the same core objectives
wwwshirecom annual report 2013 shire plc 73
strategic report governance financial statements other information directors’ remuneration report 
continued
fixed elements 
base salary and benefits 
employees’ base salaries are benchmarked  
against the relevant market taking into 
account the companies with whom we 
compete for talent geography and where 
relevant company size
for example market data for the most 
senior leadership roles in particular the 
executive committee reflects both the 
geographies in which we operate with 
around two thirds of employees as well as 
the majority of senior management based in 
the us and companies of a comparable 
size in the pharmaceutical and 
biotechnology sectors 
base salary increases across the company  
are determined in light of similar factors  
as described for the executive directors
retirement and other benefit arrangements 
are provided to employees with appropriate 
consideration of market practice and 
geographical differences
short term incentives 
for executive directors’ short term 
incentives assessment is made against a 
corporate scorecard of key performance 
measures built around shire’s key financial 
goals and other strategic priorities for the 
relevant year
this same scorecard is cascaded to each 
business and corporate function to ensure 
alignment with corporate goals and also 
funds short term incentives across the 
company
scorecard targets are further cascaded to 
each employee through their performance 
objectives with annual incentive awards 
payable in cash strongly differentiated 
based on individual performance through 
linkages with the performance management 
system
long term incentives 
discretionary long term equity awards are 
made on an annual basis dependent on  
an employee’s level of responsibility within  
the company and individual performance
for executive directors executive 
committee members and evps all awards 
vest at the end of a three year period 
for the rest of the employee population 
phased vesting of awards occurs over  
a period of three years with the majority  
vesting at the end of the three year period
these act as a framework for remuneration  
decisions across the company
the shire remuneration policy
5
valued by employees 
• each element of the 
package is valued by 
employees and cost 
effective
4
performance oriented 
• plans allow for differentiation 
based on individual 
performance
• plans are linked to performance 
at the corporate business and 
individual level as appropriate
• remuneration arrangements 
provide for an appropriate 
balance between short and 
long term performance
•  the exercise of informed 
discretion plays an important  
role in remuneration decisions 
to help avoid perverse 
outcomes
3
strategically and 
culturally aligned 
•  arrangements are 
designed to support 
shareholder value 
creation by the delivery of 
sustainable performance 
consistent with the 
strategy and appropriate 
risk management
• behavior consistent with 
the company’s brave 
culture is expected
2
competitive 
• packages enable the 
company to attract 
and retain employees 
with the ability to 
deliver the strategy  
for the benefit of 
shareholders and 
other key stakeholders 
including patients
•  o v er a l l r em u n er a t i o n 
is both costeffective 
and appropriate
1
simple and  
understandable 
• employees 
understand their 
impact on business 
performance and how 
they will be rewarded 
accordingly
• arrangements are 
practical and easily 
communicated
overall remuneration 
the structure and quantum of individual remuneration packages varies by geography role and level of responsibility
in general the proportion of variable remuneration in the total remuneration package increases  
with the level of responsibility within the company
74 shire plc annual report 2013 wwwshirecom part 3 – annual report on remuneration
a implementation of directors’ remuneration policy in 2014
in 2014 the executive director and nonexecutive director remuneration policies will be implemented as follows
executive director remuneration policy
fixed elements – base salary
following the year end review the committee made the following 2014 base salary decisions effective january 1 2014 which are in 
line with the disclosed policy in part 2a of this report
2013 salary 2014 salary  change
flemming ornskov 1200000
1
1300000 83
graham hetherington £480000 £480000 0
1 
upon appointment to ceo effective april 30 2013
flemming ornskov in light of strong corporate performance and excellent leadership the committee decided to award 
dr ornskov a base salary increase of 83 to 1300000 in accordance with our remuneration policy and the recruitment 
arrangements disclosed in last year’s drr this brings his base salary in line with the median for comparable roles it is also 
consistent with the pattern of increases across the organization where strong performers are given aboveaverage increases 
to achieve appropriate market positioning
graham hetherington the committee decided that no increase would be applied to mr hetherington’s base salary this year given 
his announced departure from the company on march 1 2014 see “graham hetherington – departure arrangements” section below 
for further details
fixed elements – retirement and other benefits
the implementation of policy in relation to pension and benefits is unchanged and in line with the disclosed policy in part 2a of 
this report
short term incentives – eaip
there is no change to the level of eaip award opportunity for executive directors
the 2014 eaip will continue to use a scorecard approach and will be comprised of 75 financial and 25 non financial performance 
measures this weighting recognizes the critical importance of financial results to our shareholders bonus affordability and the 
important role that non financial performance plays in the success and growth of the company these measures are aligned with and 
support the budget and strategic focus for 2014 approved by the board in particular for 2014 there is considerable activity related to 
the one shire transformation which is reflected in both the financial and non financial measures below
the targets themselves are considered to be commercially sensitive on the grounds that disclosure could damage the company’s 
commercial interests however retrospective disclosure of the targets and performance against them will be provided in next year’s 
drr to the extent that they do not remain commercially sensitive at that time financial and non financial targets are set at the start of 
the performance year and are approved by the committee which believes the targets are suitably stretching relevant and 
measurable the 2014 corporate scorecard is set out below
strategic priorities weighting financial kpis
financial
1
75 • net product sales
• non gaap ebita
• non gaap roic
• cost management
strategic priorities weighting examples of non financial kpis
pipeline 15 • kpis built around the strategic priority of developing our future assets which will 
enable us to deliver innovation and value for the future these include clinical 
milestones regulatory filings and other critical pipeline expansion and 
advancement targets that will support our continued growth and future 
financial performance
organizational effectiveness 10 • execute against priority actions identified in relation to supporting a high 
performance culture
• execute against key financial and non financial success factors in relation to the 
integration of viropharma
• complete new organization structure
1
 financial targets are underpinned by a series of kpis relating to our inline product
wwwshirecom annual report 2013 shire plc 75
strategic report governance financial statements other information directors’ remuneration report 
continued
long term incentives – psp
following the year end review the committee made the following 2014 psp award decisions which are in line with the disclosed 
policy in part 2a of this report
award  
type
face value of base  
awardthreshold vesting  
 of 2014 salary
10x vesting under performance matrix
face value of total  
awardmaximum vesting  
 of 2014 salary
40x vesting under performance matrix
face value of total  
awardmaximum vesting  
000’s
40x vesting under performance matrix
flemming ornskov
sar 111 443 5761
psa 83 332 4320
the face value allocation between sars and psas is estimated as it is determined on an expected value basis upon grant
given his announced departure from the company on march 1 2014 the committee determined that no 2014 psp award would be made to graham hetherington 
see “graham hetherington – departure arrangements” section for further details
the base award is one quarter of the total award made 10x vesting under the matrix and is payable for threshold performance 
there is nil vesting below this performance level up to four times the base award 40x vesting under the matrix is payable for 
maximum performance which would result in the total award vesting with straight line vesting within this performance range in all 
cases awards will only vest if the committee determines that the underlying performance of the company is sufficient to justify the 
vesting of the award
the committee reviewed the performance matrix and determined that the structure and performance measures will be retained in 
their current form for 2014 the performance targets have been adjusted to maintain appropriate alignment with the company’s 
current long range plans and strategy the company’s weighted average cost of capital and recent broker forecasts the 2014 
performance matrix is set out below
2014 performance matrix
non gaap adjusted roic non gaap ebitda growth cagr 20132016
change in bp pa 9 10 11 12 13
100 10x 13x 17x 21x 25x
80 13x 16x 20x 24x 28x
60 16x 19x 24x 27x 31x
40 19x 23x 26x 31x 35x
20 22x 26x 31x 36x 40x
0 25x 30x 35x 40x 40x
for non gaap ebitda growth the non gaap ebitda in the final performance year 2016 is compared to the non gaap ebitda in 
the reference year 2013 a compound annual growth rate of non gaap ebitda is then calculated for non gaap adjusted roic 
the non gaap adjusted roic in the final performance year is compared to the non gaap adjusted roic in the reference year the 
change in these two numbers is then divided by three and expressed in basis points one hundredth of a percentage point to give an 
average per annum change in non gaap adjusted roic basis points
the acquisition of viropharma in january 2014 will add approximately 4 billion to the denominator used to calculate shire’s non 
gaap adjusted roic as a result in the short term including over the measurement period for the 2014 psp awards non gaap 
adjusted roic is expected to decline from the 156
1
 achieved in 2013 the performance matrix reflects this by awarding higher 
vesting for lower declines in non gaap adjusted roic
clawback arrangements are in place for awards to cover situations where results are materially misstated or in the event of serious 
misconduct
1 
including results from dermagraft operations
76 shire plc annual report 2013 wwwshirecom graham hetherington – departure arrangements
mr hetherington has agreed with the board that he will be stepping down from shire’s board of directors and his role as cfo on 
march 1 2014
in line with the committee’s policy the committee considered the overall circumstances of the departure as well as performance 
contractual obligations and plan rules in particular the committee considered mr hetherington’s sustained performance and 
contribution to the company over a period of almost six years the excellent 2013 financial results and confident outlook for 2014 
the committee’s determinations which are consistent with the committee’s termination policy are set out below
mr hetherington will not receive any payment in respect of salary or benefits or compensation in lieu in respect of any period after 
march 1 2014 or receive any compensation for loss of office
as set out above the committee determined that no 2014 base salary increase or 2014 psp grant would be appropriate given mr 
hetherington’s scheduled departure date in addition he will not receive any 2014 short term incentive in respect of his period of 
employment to or in respect of any period after march 1 2014
those elements of mr hetherington’s eaip awards from previous years that were compulsorily deferred into shares under the eaip 
will vest in accordance with the plan rules at the end of the relevant three year vesting periods see table below
the committee determined that the 2012 psp award will vest on the departure date in line with the terms of the plan rules taking into 
account the applicable performance conditions and the proportion of the performance period approximately two thirds during which 
mr hetherington remained in employment see table below the 2013 psp awards will lapse on the departure date
award
number of 
shares under
original award
1
number of
shares vesting
1
illustrative 
share price
2
estimated value
vestingrelease 
date
2012 psp
3
 sar element 55554 27915 £3368 £319906 march 1 2014
2012 psp
3
 psa element 40740 20471 £3368 £689463 march 1 2014
2011 deferral 2010 eaip award 6504 6504 £3368 £219055 march 31 2014
2012 deferral 2011 eaip award 4552 4552 £3368 £153311 march 30 2015
2013 deferral 2012 eaip award 4504 4504 £3368 £151695 march 31 2016
2014 deferral 2013 eaip award shares to the value of £106250 will be purchased on march 31 2014 march 31 2017
the release of psa awards and deferred shares under the eaip will include dividend shares representing any accrued dividends in accordance with the relevant plan rules
1 
awards are over ordinary shares
2 
closing share price as at february 21 2014
3 
the figures above represent the number of shares vesting taking into account the applicable performance conditions resulting in the vesting of 75 of the shares 
under the original award and in addition the proportion of the performance period approximately two thirds in which mr hetherington remained in employment
vested sar awards will in accordance with the terms of the psp  remain exercisable for a period of 12 months after the departure 
date and if not exercised will lapse
all other unvested equity awards namely the 2013 psp award and 2013 sharesave will lapse when mr hetherington ceases to be 
employed
mr hetherington was employed throughout performance period for the 2013 eaip and 2011 psp  therefore payments under the 
2013 eaip and vesting of the 2011 psp will be made as normal
the committee determined that it would be appropriate to continue the same level of medical cover under the company’s private 
medical scheme until december 31 2014 and to pay his reasonable legal costs incurred in connection with his departure 
arrangements
chairman and nonexecutive director remuneration policy
details of fee levels for 2014 compared to 2013 are set out below taking into account market positioning and the need to be able to 
attract high quality appropriately qualified individuals it was agreed to increase the basic fee payable to nonexecutive directors to 
£93000 in addition the nonexecutive directors will continue to receive 25 of their total fees in the form of shares given his 
significant shareholding in shire the current chairman will continue to receive his fee in the form of cash only
basic fees effective january 1 2014 2014 2013
chairman inclusive of all committees £390000
1
£390000
deputy chairman and senior independent nonexecutive director inclusive of nonexecutive director fee £98000 £98000
nonexecutive director £93000 £86400
1 
given that the current chairman matthew emmens will retire from the board at the company’s agm on april 29 2014 no increase will be made to the chairman’s 
fee for 2014 the chairman designate susan kilsby who will resume the role of chairman after the conclusion of the agm will be paid an annualised chairman fee 
of £365000 effective april 29 2014 to reflect that she is new in role
in addition to the basic nonexecutive director fee a committee fee will be paid to the members and chairman of the following 
committees
chairman member
committee fees effective january 1 2014 2014 2013 2014 2013
audit compliance  risk £20000 £20000 £10000 £10000
remuneration £18000 £18000 £9000 £9000
science  technology £15000 £15000 £7500 £7500
nomination £12500 £12500 £5750 £5750
nonexecutive directors will also continue to receive an additional fee of £5000 for each transatlantic trip made for board meetings
wwwshirecom annual report 2013 shire plc 77
strategic report governance financial statements other information directors’ remuneration report 
continued
b 2013 single total figure of remuneration for executive directors subject to audit
the summary table of 2013 remuneration for the executive directors comprises a number of key components which are set out in 
further detail in the relevant sections that follow
in both 2012 and 2013 the totals were significantly impacted by share price growth between the psp grant and vesting dates this 
alignment with shareholders and the significant role that long term variable remuneration plays in the overall remuneration package is 
consistent with our remuneration policy and the long term nature of our business in relation to 2013 stock price growth on the 2011 
psp awards from £17 23 to £27 00 the average ordinary share price over the last quarter of 2013 accounts for 40 of the total 
remuneration figure for mr hetherington
fixed elements variable elements
other 
payments
total
base  
salary
retirement 
benefits
other 
benefits
total fixed 
pay
short term  
incentives – eaip
long term 
incentives 
– psp
total 
variable  
pay
cash 
element
deferred 
share 
element
’000 ’000 ’000 ’000 ’000 ’000 ’000 ’000 ’000 ’000
flemming ornskov
2013 1071 207 74 1352 1200 400 – 1600 450 3402
2012 – – – – – – – – – –
angus russell
2013 422 110 99 631 150 50 4928 5128 – 5759
2012 1290 387 88 1765 845 281 10539
1
11665 – 13430
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
graham hetherington
2013 480 120 28 628 319 106 2475
2
2900 – 3528
2012 465 116 21 602 270 90 2934
3
3294 – 3896
dr ornskov’s and mr russell’s remuneration which is paid through the us payroll is reported in us dollars
average exchange rates for the year to december 31 2013 were 156£100
1 
actual vesting value of 10539158 is calculated using the closing share price at the date of vesting of 9629 march 1 2013 estimated vesting value as disclosed 
in the company’s 2012 drr of 9032545 was calculated using the average share price over the last quarter of 2012 in line with the methodology prescribed in the 
schedule 8 regulations
2 
the 2013 vesting value is calculated using the average share price over the last quarter of 2013 of £2700
3 
actual vesting value of £2933841 is calculated using the closing share price at the date of vesting of £2075 march 1 2013 estimated vesting value as disclosed 
in the company’s 2012 drr of £2341017 was calculated using the average share price over the last quarter of 2012 in line with the methodology prescribed in the 
schedule 8 regulations
base salary
corresponds to the amounts received during the year
• dr ornskov’s base salary comprises his ceo designate salary of 900000 received from january 2 2013 to april 29 2013 and his 
ceo salary of 1200000 received upon appointment to ceo from april 30 2013
• mr russell’s base salary comprises his annual salary of 1290000 pro rated for his worked notice period january 1 2013 to april 
30 2013
• mr hetherington’s base salary reflects his annual salary of £480000
retirement benefits
represents the cash value of the total company contributions towards retirement benefit provision
• dr ornskov received a contribution at a rate of 30 of his base salary through a combination of contributions to the company’s 
401k plan and credits to his serp account in accordance with the terms of the serp  he received credits on the basis of his ceo 
designate base salary for the three calendar quarters in 2013 for which he was eligible
• mr russell received a similar contribution of 30 of base salary into company plans in respect of his worked notice period as part 
of mr russell’s retirement arrangements he received a distribution of his serp account balance and was eligible to withdraw funds 
from his deferred uk pension due to his early retirement these actions were in accordance with the rules of the relevant plan without 
any form of enhancement being made the distribution of his serp account balance has not been included in the retirement benefits 
figure above as it reflects remuneration paid and disclosed in prior years however it has been included in the disclosure in part 3e 
of this report
• mr hetherington received a contribution of 25 of base salary by way of a cash allowance
78 shire plc annual report 2013 wwwshirecom other benefits
corresponds to the taxable value of all other benefits paid in respect of the year the 2013 figures for executive directors principally 
include car allowance financial and tax advisory support long term disability and life cover and private medical cover
• for dr ornskov the 2013 figure also includes 28519 principally in relation to immigration support and temporary living expenses 
in accordance with the company’s mobility policy and the recruitment arrangements disclosed in last year’s drr
• for mr russell the 2013 figure includes 58550 for advice in relation to us and uk tax return preparation and related tax advice 
as provided for in his contract
• for both mr russell and mr hetherington the 2012 and 2013 figures include a reimbursement reflecting a lower level of company 
paid private medical cover and dental cover in the case of mr russell in prior years than provided for in their contracts
short term incentives
corresponds to the annual incentive award earned under the eaip in respect of 2013 performance and comprises a cash element 
75 and a deferred share element 25
2013 corporate scorecard for executive directors
the 2013 eaip continued to use a scorecard approach with key corporate performance measures supporting shire’s strategic goals 
as set out below the non financial targets are considered by the company to be commercially sensitive on the grounds that the 
disclosure of these targets could damage the company’s commercial interests
financial goals net product sales
1
 – 49b  
actual 4847b
non gaap operating income
1
 – 16b 
actual 1755b
non gaap adjusted roic
1
 – 149  
actual 156
other strategic priorities strengthening the commercial portfolio expanding the development pipeline enhancing organizational effectiveness
performance outcomes
performance against financial goals
net product sales
1
• strong revenues from net product sales in 2013 being up 10 to 48 billion and
• six of our products delivered double digit growth yearonyear with further detail set out in the review of our business section earlier 
in this report
non gaap operating income
1
• non gaap operating income was up 19 to 1755 billion 2012 1474 billion demonstrating the progress made against our 
strategy to grow our business in an efficient manner delivering value to stakeholders and also giving us the ability to provide more 
innovative treatments to more patients
non gaap adjusted roic
1
• non gaap adjusted roic grew by 180 basis points in 2013 over 2012 as higher product sales up 10 and continued operating 
leverage led to an increase in margins
performance against other strategic priorities
strengthening the commercial portfolio
strategic priority drive optimum performance from our currently marketed products to optimize revenue growth and cash generation
achievements against this objective in 2013 include
• acquisition of viropharma adding cinryze prophylactic treatment of hereditary angioedema
• geographic expansion in asia office opened in japan and presence established in south korea and china
• launch of elvanse marketed as vyvanse in the us in a further four european countries and
• positive opinion received on the vpriv summary of product characteristics from the committee for medicinal products for human 
use of the european medicines agency
expanding the development pipeline
strategic priority build our future assets through both rd and business development to deliver innovation and value for the future
achievements against the 2013 objective include
• prioritization of the pipeline to focus on the development of innovative specialist medicines that have the best chance of clinical and 
commercial success together with early stage research in rare diseases
• positive topline results evaluating the efficacy and safety of ldx versus placebo in adults with bed
• topline data results announced from opus2 study for lifitegrast
• acquisition of sarcode bioscience inc dry eye disease premacure ab retinopathy of prematurity and lotus tissue repair inc 
dystrophic epidermolysis bullosa and
• enrolment of the first patient in its phase 2 clinical program for vascugel
1 
net product salesnon gaap operating incomenon gaap adjusted roic include results from dermagraft operations
wwwshirecom annual report 2013 shire plc 79
strategic report governance financial statements other information directors’ remuneration report 
continued
enhancing organizational effectiveness
achievements against the 2013 objective include
• implementation of our revised governance model inline and pipeline committees to ensure enterprisewide decision making and 
resource allocation that is overseen by the executive committee and
• simplification of our business model which has reset our cost base and generated the capacity to invest in future growth
2013 eaip award decisions
in determining 2013 eaip awards for the executive directors the committee considered performance against the key corporate 
performance measures including the achievements set out above as well as performance against personal objectives the 
committee approved the awards set out in the following table
executive director award  of 2013 base salary  of target opportunity  of maximum opportunity
flemming ornskov
1
1600000 145 162 81
angus russell
2
200000 44 52 26
graham hetherington £425000 89 111 55
eaip award figures are rounded to the nearest whole percentage
75 of the award is payable in cash nonpensionable and 25 is deferred into shares and released after a period of 3 years subject to the participant’s employment 
not being terminated for cause
the release of deferred shares will include dividend shares representing any accrued dividends
1 
dr ornskov’s eaip opportunity was based on his prevailing salary for periods in the ceo designate and ceo role during 2013
2 
the committee had previously determined that mr russell should receive no eaip award relating to the portion of his contractual notice period not served the eaip 
award therefore reflects time proration and an assessment of performance to the date of his retirement the figures in the table above are expressed as percentages 
of actual 2013 base salary the value included in the 2013 summary remuneration table and the eaip opportunity actually available taking into account the portion of 
his contractual notice period served in 2013 this eaip award is also set out in part 3e in the context of angus russell’s retirements arrangements
long term incentives
the value represents the market value of the 2011 psp awards for graham hetherington vesting in february 2014 and the market 
value of the 2011 and 2012 psp awards for angus russell that vested following his retirement
in accordance with the schedule 8 regulations the summary of 2013 remuneration figure includes the value of the 2011 psp awards 
performance period 2010 – 2013 which vest in february 2014 for angus russell the 2013 remuneration figure includes both the 
value of his 2011 and 2012 psp awards which vested on june 5 2013 following an assessment of performance to his retirement 
date by the committee in accordance with the psp plan rules
as previously disclosed the committee reserves the right to make adjustments to the performance conditions to reflect significant 
one off items which occur during the performance period in respect of the 2011 psp awards the committee carried out a 
comprehensive review of potential adjusting events saes against preexisting guidelines
consistent with the adjustments made in respect of the 2010 psp awards as disclosed in last year’s drr the committee 
determined that the same two 2012 sae adjustments would be appropriate for the 2011 psp awards
1 to exclude the impact of the acquisition of advanced biohealing which had a short term negative impact on non gaap ebitda 
and non gaap adjusted roic performance in 2013 this acquisition was completed in june 2011 after the 2011 performance 
matrix had been set and led to the creation of a new regenerative medicine business unit centered around the dermagraft 
product in line with our refined strategy to prioritize investments that have the greatest clinical and commercial value the 
company subsequently announced on january 17  2014 that it had sold its dermagraft assets without dermagraft and 
its assets regenerative medicine will no longer be one of the company’s business units and
2 to exclude the impact of the japanese tsunami on fosrenol sales in that market which benefited shire’s non gaap ebitda and 
non gaap adjusted roic performance in 2012 the company’s royalty and licensing revenue for fosrenol benefited from 
increased sales made by the company’s partner in japan following the tsunami which disrupted a key competitor’s supply chain
the committee noted that these adjustments did not in fact result in a change in the vesting outcome under the performance 
conditions applicable to the 2011 psp awards either individually or taken together
80 shire plc annual report 2013 wwwshirecom graham hetherington – vesting of 2011 psp awards
the table below sets out a summary of the performance outcome and the resulting gross estimated vesting value for the 2011 psp 
awards for mr hetherington this estimate is on the basis of an average share price over the last quarter of 2013 of £27 00 given that 
the 2011 psp awards 2011 – 2014 performance period vest following the date of this report there is no scheduled vesting of psp 
awards for dr ornskov until 2016 when his 2013 psp awards 2013 – 2016 performance period vest subject to the achievement of 
applicable performance conditions
performance conditions
2011 performance matrix
non gaap adjusted roic non gaap ebitda growth cagr 20102013
increase bp pa 8 10 12 14 16
10 10x 13x 17x 21x 25x
20 13x 16x 20x 24x 28x
40 16x 19x 24x 27x 31x
60 19x 23x 26x 31x 35x
80 22x 26x 31x 36x 40x
100 25x 30x 35x 40x 40x
performance period ended on december 31 2013 with vesting in february 2014
performance outcome 
182
1
 cagr in non gaap ebitda and 220 bp
1
 pa increase in non gaap adjusted roic between 2010 and 2013
resulting in a vesting multiplier of 40x
100 of the total award made
resulting estimated vesting
£2475272 value included in 2013 summary remuneration table
angus russell – vesting of 2011 and 2012 psp awards
under the psp rules approved by shareholders in respect of a retiree unvested share awards vest on retirement on a pro rata basis 
and subject to the early assessment of performance against the relevant performance conditions which were measured as at the 
date of retirement this treatment was applied to mr russell’s outstanding 2011 and 2012 psp grants
performance outcome
for the 2011 and 2012 psp awards performance was assessed over the period from the grant date up until april 30 2013 being the 
date of retirement with the awards vesting on june 5 2013
in respect of the 2011 psp awards the committee concluded that the same two 2012 sae adjustments would be appropriate for mr 
russell these saes were not relevant to mr russell’s 2012 psp awards as the events were known at the time of setting targets for 
the 2012 psp awards
taking into account performance against the performance matrices as well as an overall assessment of the underlying performance 
of the company the committee determined that in respect of the 2011 and 2012 psp awards an aggregate number of shares with 
a value on the date of vesting of 4928432 would vest
other payments
represents the value of any other payments received during the year
dr ornskov received a cash award of 450000 to replace cash payments foregone from his former employment this award forms 
part of his recruitment arrangements previously disclosed
1 
excluding results for dermagraft operations
wwwshirecom annual report 2013 shire plc 81
strategic report governance financial statements other information directors’ remuneration report 
continued
c 2013 single total figure of remuneration for the chairman and 
nonexecutive directors subject to audit
details of the total fees paid to the chairman and nonexecutive directors during 2013 are set out in the table below
date of current letter 
of appointment
board fees variable elements
total 2013 
fees
total 2012 
fees basic fee
additional 
fees
1
remuneration 
committee
audit 
compliance 
 risk 
committee
nomination 
committee
science  
technology 
committee
matthew emmens
2
june 18 2012 £407782 £15000 – – – – £422782 £395135
david kappler
3
april 5 2012 £98000 £10000 – £13086 £12500 – £133586 £135000
william burns
4
march 15 2012 £86400 £10000 £9000 – £5750 £7500 £118650 £109212
steven gillis
5
october 1 2012 £88868 £15000 £9000 – – £7500 £120368 £28750
david ginsburg
6
june 16 2012 £86400 £15000 – – – £11250 £112650 £102500
susan kilsby
3
september 1 2013 £86400 £10000 – £13086 – – £109486 £100000
anne minto
7
june 16 2012 £86400 £10000 £18000 – £5750 – £120150 £109474
david stout october 31 2013 £86400 £15000 £9000 £10000 – – £120400 £112500
1 
nonexecutive directors receive an additional fee of £5000 for each transatlantic trip made for board meetings
2 
mr emmen’s 2012 and 2013 fees include private medical insurance
3 
ms kilsby succeeded mr kappler as chair of the audit compliance  risk committee on may 2 2013 mr kappler remains a member of the audit compliance  
risk committee
4 
mr burns was appointed as a member of the science  technology committee on february 8 2012
5 
dr gillis was appointed as a nonexecutive director and as a member of the remuneration committee and the science  technology committee on october 1 
2012 his 2013 fees include an amount in relation to adjusting taxes paid on historical fees
6 
dr ginsburg was appointed chair of the science  technology committee on may 2 2013
7 
ms minto was appointed as a member of the nomination committee on february 8 2012
82 shire plc annual report 2013 wwwshirecom d executive directors’ interests under long term incentives awarded during 2013 
subject to audit
the following tables set out details of the psa and sar awards granted to executive directors under the psp during 2013 vesting of 
the 2013 psp awards will be determined by the committee in q1 2016 taking into account performance against the 2013 
performance matrix and any saes that are relevant as well as an overall assessment of the underlying performance of the company
2013 psp awards
2013 psp awards award type
share price on 
grantexercise 
price
face value of 
base award
threshold 
vesting  of 
2013 salary
face value of 
total award
maximum 
vesting  of 
2013 salary
face value of 
total award
maximum 
vesting ‘000
flemming ornskov
1
sar
2
9504
90 361 4334
psa
2
68 271 3250
graham hetherington
sar
£2088
73 290 £1393
psa 53 213 £1021
2013 performance matrix
non gaap adjusted roic non gaap ebitda growth cagr 20122015
increase bp pa 10 12 14 16 18
100 10x 13x 17x 21x 25x
120 13x 16x 20x 24x 28x
140 16x 19x 24x 27x 31x
160 19x 23x 26x 31x 35x
180 22x 26x 31x 36x 40x
200 25x 30x 35x 40x 40x
the maximum sar and psa awards are granted and subject to the achievement of performance conditions adjusted at the date of vesting
the number of sars and psas as well as the exercise price for sar awards is calculated using an approach based on the average three day closing midmarket share 
price at the time of grant
1 
based on dr ornskov’s 2013 annualised ceo base salary
2 
denotes an award over ads one ads is equal to three ordinary shares all other awards are over ordinary shares
the base award is one quarter of the total award made 10x vesting under the matrix and is payable for threshold performance 
there is nil vesting below this performance level up to four times the base award 40x vesting under the matrix is payable for 
maximum performance which would result in the total award vesting with straight line vesting within this performance range
the same definitions and measurement approach apply for the following performance matrices as set out in the earlier policy section 
of this report
wwwshirecom annual report 2013 shire plc 83
strategic report governance financial statements other information directors’ remuneration report 
continued
e retirement arrangements for angus russell subject to audit
as disclosed in last year’s drr the following tables set out the payments received by angus russell in respect of his retirement 
arrangements all payments have been made in accordance with the company’s policy on termination arrangements as set out in 
part 2d of this report details of the performance conditions for the eaip and psp awards and performance against these conditions 
are contained in the relevant sections above where relevant the amounts have been included in the 2013 summary of remuneration 
table
remuneration in respect 
of qualifying services amount description
short term incentives – eaip
eaip payment in respect of 2013 performance 200000
1
reflects a time pro rated award for january to april 2013 the “worked” notice period 
this is comprised of a cash element 75 of the award and a deferred share element 
25 of the award which is deferred into shares in the normal way
further details of the performance outcome are set out on pages 79 and 80
those elements of mr russell’s eaip awards from previous years that were 
compulsorily deferred into shares under the eaip will vest in accordance with the plan 
rules at the end of the relevant three year vesting periods
long term incentives – psp
201 1 psp award  2012 psp award 4928432
1
awards pro rated through the end of the unworked notice period in accordance with 
the plan rules the value is based on the final level of vesting set out on page 81 as 
determined by the committee and has been calculated using the share price on the 
date of vesting june 5 2013
in determining the vesting level of these awards the committee took account of 
performance against the performance matrices as well as an overall assessment of the 
underlying performance of the company
the plan rule provisions relating to retirement have been applied in respect of all 
unexercised sar awards previously granted to mr russell under the psp  these 
require the sars to be exercised within 12 months of retirement
other payments amount description
payment in lieu of notice
contractual payment in lieu of the remainder of the 
contractual notice period
866686 payment represents six months’ salary 645000 serp contribution 30 of base for 
relevant period 193500 car allowance 14580 and other contractual benefits 
13606
retirement benefits
serp balance 1410207 reflects remuneration paid and disclosed in prior years specifically this amount 
represents a distribution of his serp account balance in accordance with the rules 
of the plan
1 
value included in 2013 summary remuneration table
84 shire plc annual report 2013 wwwshirecom f payments to past directors subject to audit
no payments other the payments made to angus russell set out on the previous page have been made to past directors for the 
relevant financial year for the purposes of the schedule 8 regulations
g directors’ shareholdings and scheme interests subject to audit
employee share ownership is an important means to support alignment of employee interests with those of shareholders
the committee believes that employee share ownership is an important means to support long term commitment to the company 
and the alignment of employee interests with those of shareholders
the interests of the executive directors and other senior executives are closely aligned with those of other shareholders in this regard 
through the operation of the company’s long term incentive plan and for the executive committee the deferral of one quarter of any 
eaip award into shares for a period of three years these remuneration elements constitute a significant proportion of their individual 
remuneration packages
the ceo cfo and other members of the executive committee are encouraged to own shares in the company equivalent to 200 
150 and 100 of base salary respectively within a five year period following their appointment all shares beneficially owned by an 
executive or deferred under the eaip count towards achieving these guidelines the committee reviews share ownership levels 
annually for this group current shareholding levels for directors are set out in the table below
summary of directors’ shareholdings and scheme interests
security 
type
1
shareholding 
as at dec 31 
2013
2
scheme interests as at dec 31 2013
2
total shares 
held which 
count towards 
the shareholding 
guidelines  
as a  of  
2013 salary
total deferred 
shares
3
total psas 
unvested
4
total sars
options 
unvested
5
total sars
options vested 
but 
unexercised
6
total scheme 
interests
flemming ornskov
ads – 15286 44482 64585 – 124353 69
ord shares 22000 – – – – – –
angus russell
7
ads 45936 10024 83240 110987 105616 309867 1237
ord shares 261991 – – – – – –
graham 
hetherington ord shares 92089 15560 150428 205602 134814 506404 514
matthew emmens
ads 6289 – – – – – –
ord shares 92874 – – – – – –
david kappler ord shares 11016 – – – – – –
anne minto ord shares 3206 – – – – – –
william burns ord shares 975 – – – – – –
steven gillis ads 309 – – – – – –
david ginsburg ads 297 – – – – – –
susan kilsby ads 289 – – – – – –
david stout ads 307 – – – – – –
1 
one ads is equal to three ordinary shares
2 
with the exception of mr emmens and mr hetherington selling 36100 and 40000 ordinary shares respectively there were no changes in shareholdings in the 
period from december 31 2013 to february 24 2014
3 
this represents unvested shares deferred under the eaip plan which are forfeited in the case of termination for cause and in the case of dr ornskov deferred shares 
granted to him which are subject to continued service
4 
this represents unvested psas which are subject to the achievement of performance conditions adjusted at the date of vesting
5 
this represents unvested sars which are subject to the achievement of performance conditions adjusted at the date of vesting and options granted under the shire 
sharesave scheme
6 
this represents vested sars which are no longer subject to the achievement of performance conditions but are unexercised as at december 31 2013
7 
all information is presented as at april 30 2013 being the date of mr russell’s retirement
the company also operates broadbased share plans a sharesave scheme in the uk and an espp in the us and other countries 
to encourage wider share ownership among the company’s employees
awards under the company’s long term incentive plans and broadbased share plans are satisfied either by market purchased 
shares which are held in an employee benefit trust or the issue of new shares within the limits agreed by shareholders when the 
plans were approved these limits comply with the association of british insurers’ guidelines which require that no more than 10 
of a company’s issued share capital may be used for employee share plans in any ten year period within the 10 limit up to 5 
may be used for discretionary employee share plans under these guidelines
wwwshirecom annual report 2013 shire plc 85
strategic report governance financial statements other information directors’ remuneration report 
continued
directors’ scheme interests
details of directors’ interests under share based plans which were outstanding awarded lapsed or exercised during the year are set 
out in the audited table below the market price of the company’s ordinary shares at december 31 2013 was £2852 and the range 
during the year was £1853 to £2939 the market price of the company’s adss at december 31 2013 was 14129 and the range 
during the year was 8601 to 14129
award type
1
date of 
award
as at  
jan 1  
2013
shares 
awarded
23
dividend 
shares
4
lapsed
exercised
released
at  
dec 31  
2013
share 
price on 
grant
exercise 
price
5
share price 
on exercise
release
normal exercise period
vesting period
flemming ornskov
6
sar ads feb 28 2013 – 45601 – – – 45601 9504 – feb 28 2016 to feb 28 2020
psa ads feb 28 2013 – 34201 – – – 34201 9366 – feb 28 2016
sar ads may 2 2013 – 18984 – – – 18984 9159 – may 2 2016 to may 2 2020
psa ads may 2 2013 – 10281 – – – 10281 8775 – may 2 2016
deferred 
shares ads may 2 2013 – 15286 – – – 15286 8775 – feb 28 2015
angus russell
7
sar ads mar 01 2010 105616 – – – – 105616 6491 – mar 01 2013 to mar 01 2017
psa ads mar 01 2010 73948 – 1085 – 75033 – 6491 9629 mar 01 2013
eaip ads mar 31 2010 7421 – – – 7421 – 6601 9103 mar 31 2013
sar ads
7
feb 28 2011 63126 – – – – 63126 8379 – feb 28 2014 to feb 28 2018
psa ads
7
feb 28 2011 47344 – – – – 47344 8501 – feb 28 2014
eaip ads mar 31 2011 3994 – – – – 3994 8703 – mar 31 2014
sar ads
7
feb 28 2012 47861 – – – – 47861 10550 – feb 28 2015 to feb 28 2019
psa ads
7
feb 28 2012 35896 – – – – 35896 10553 – feb 28 2015
eaip ads mar 30 2012 2907 – – – – 2907 9475 – mar 30 2015
eaip ads mar 31 2013 3123 – – – 3123 9000 – mar 31 2016
graham hetherington
sar mar 01 2010 134814 – – – – 134814 £1443 – mar 01 2013 to mar 01 2017
psa mar 01 2010 98864 – 450 – 100314 – £1443 £2075 mar 01 2013
eaip mar 31 2010 12569 – – – 12569 – £1454 £1987 mar 31 2013
sar feb 28 2011 82873 – – – – 82873 £1723 – feb 28 2014 to feb 28 2018
psa feb 28 2011 60769 – – – – 60769 £1741 – feb 28 2014
eaip mar 31 2011 6504 – – – – 6504 £1811 – mar 31 2014
sar feb 28 2012 55554 – – – – 55554 £2222 – feb 28 2015 to feb 28 2019
psa feb 28 2012 40740 – – – – 40740 £2216 – feb 28 2015
eaip mar 30 2012 4552 – – – – 4552 £2020 – mar 30 2015
sar feb 28 2013 – 66708 – – – 66708 £2088 – feb 28 2016 to feb 28 2020
psa feb 28 2013 – 48919 – – – 48919 £2065 – feb 28 2016
eaip mar 31 2013 – 4504 – – – 4504 £1994 – mar 31 2016
sharesave sep 28 2013 – 467 – – – 467 £1924 – dec 1 2016 to may 31 2017
the number of psa and sar awards granted in 2011 and subsequently is calculated using an approach based on the average three day closing midmarket share price 
at the time of grant the number of psa and sar awards granted in 2010 was calculated using an approach based on the average closing midmarket share price over 
the prior twelve month period
1 
awards are over ordinary shares except where the award type is marked as an ads award one ads is equal to three ordinary shares
2 
the maximum sar and psa awards are granted and subject to the achievement of performance conditions adjusted at the date of vesting
3 
performance conditions attached to sar and psa awards granted from 2010 onwards are non gaap adjusted roic and non gaap ebitda further information 
on the 2011 and 2013 performance matrices can be found on pages 81 and 83 respectively for reference the performance matrices for the 2010 and 2012 awards 
are set out on the following page in all cases awards will only vest if the committee determines that the underlying performance of the company is sufficient to justify 
the vesting of the award
4 
in accordance with the plan rules the vested psa awards have been increased to reflect the dividends paid by shire in the period from the grant date to the vesting date
5 
the exercise price for sar awards granted in 2011 and subsequently is equal to the three day average up to and including the date of award of the closing 
midmarket share price the exercise price for sar awards granted in 2010 is the closing midmarket share price on the date of award the grant price for all psa 
awards is the closing midmarket share price on the date of award
6 
on november 1 2013 dr ornskov was granted an option over adss pursuant to the shire espp  dr ornskov elected to save 48076 per fortnight in accordance 
with the plan rules the option price is the lower of 85 of the fair market value of an ads on november 1 2013 and 85 of the fair market value of an ads on the 
exercise date october 31 2014
7 
all information is presented as at april 30 2013 being the date of mr russell’s retirement the 2011 and 2012 psp awards vested on june 5 2013 following  
mr russell’s retirement the vesting outcome is set out on page 81 of this report
86 shire plc annual report 2013 wwwshirecom 2010 performance matrix
non gaap adjusted roic non gaap ebitda growth cagr 20092012
increase bp pa 8 10 12 14 16
10 10x 13x 17x 21x 25x
20 13x 16x 20x 24x 28x
40 16x 19x 24x 27x 31x
60 19x 23x 26x 31x 35x
80 22x 26x 31x 36x 40x
100 25x 30x 35x 40x 40x
2012 performance matrix
non gaap adjusted roic non gaap ebitda growth cagr 20112014
increase bp pa 8 10 12 14 16
60 10x 13x 17x 21x 25x
80 13x 16x 20x 24x 28x
100 16x 19x 24x 27x 31x
120 19x 23x 26x 31x 35x
140 22x 26x 31x 36x 40x
160 25x 30x 35x 40x 40x
h tsr performance graph
the graph below shows the total shareholder return “tsr” for shire and the ftse 100 index over the five year period ending 
december 31 2013 tsr is calculated as the change indexed between the fourth quarter tsr in the relevant year and the base 
year the ftse 100 index reflects the 100 largest quoted companies by market capitalisation in the united kingdom and has been 
chosen because the ftse 100 represents the broad market index within which the company’s shares are traded
total shareholder return – change in value of a hypothetical £100 holding over five years
rebased to 100 gbp
ftse 100 shire
0
50
100
150
200
250
300
350
2013 2012 2011 2010 2009 2008
the historical total remuneration for the person undertaking the role of ceo is set out in the table below
2009 2010 2011 2012 2013
dr ornskov mr russell
short term incentive  of maximum 70 65 50 48 81 26
long term incentive  of maximum 84 88 100 100 – 50
total remuneration ’000 4781 9634 17506 13430 3402 5759
these calculations are based on the methodology prescribed in the schedule 8 regulations in particular the long term incentive figures relate to any awards that vest 
following the end of each financial year
wwwshirecom annual report 2013 shire plc 87
strategic report governance financial statements other information 990
955
290
193
4
50
2013
2012
2013
2012
overall spend on pay m
shareholder distributions m
23
20
16
2013
2012
non gaap ebitda bn
990
955
290
193
4
50
2013
2012
2013
2012
overall spend on pay m
shareholder distributions m
23
20
16
2013
2012
non gaap ebitda bn
990
955
290
193
4
50
2013
2012
2013
2012
overall spend on pay m
shareholder distributions m
23
20
16
2013
2012
non gaap ebitda bn
directors’ remuneration report 
continued
i percentage change in ceo remuneration
the following table shows the percentage change in the base salary taxable benefits and annual bonus of the ceo between the 
current and previous financial year compared to the average percentage change for all other employees
percentage change between 2012 to 2013
salary and fees taxable benefits
short term 
incentives
ceo
1
17 16 42
all other employees
2
6 0 45
1 
reflects the 2012 remuneration for angus russell and 2013 remuneration for flemming ornskov as reported in the single total figure of remuneration table
2 
reflects the average change in remuneration for all other employees globally that were annual bonus eligible to help minimise distortions in the underlying data 
certain adjustments have been made in particular the figures have been prepared on the basis of permanent employees who have been employed with the company 
for the two preceding calendar years
j relative importance of spend on pay
the company considers employee remuneration costs in the context of the general financial performance and position of the 
company including when determining the annual salary increase budget the annual equity grant budget and annual bonus funding 
for the organization
the following graphs set out for 2012 and 2013 the overall spend on pay shareholder distributions dividends and share buybacks 
and for further context non gaap ebitda from continuing operations
88 shire plc annual report 2013 wwwshirecom k remuneration committee
terms of reference
the committee is responsible for agreeing the broad remuneration policy for the organization and the individual packages for the 
chairman executive directors and certain other senior leadership roles within the agreed policy the committee determines the 
terms and conditions to be included in service agreements including termination payments and compensation commitments where 
applicable the committee also determines performance targets applicable to the company’s annual bonus and long term incentive 
plans and has oversight of the company’s share incentive schemes in october 2013 the committee reviewed its terms of reference 
and a number of minor changes were made to reflect various governance developments the revised terms of reference were 
approved by the board in december 2013 and are available in full on the company’s website wwwshirecom
membership and attendance
the board considers all members of the committee to be independent the directors in the table below served as members of the 
committee during the period within which remuneration for the relevant financial year was under consideration
committee member meeting attendance
1
anne minto chairman 77
william burns 77
steven gillis 77
david stout 77
the number in brackets denotes the number of meetings that committee members were eligible to attend
1 
there were five scheduled and two ad hoc committee meetings held during 2013
the chairman and the ceo attend meetings of the committee by invitation but neither is present in any discussions relating to their 
own remuneration
remuneration committee activities in 2013
in 2013 the committee discussed the key agenda items set out in the following table
key agenda items
overall remuneration • approval of 2012 performance and remuneration decisions for the ceo ceo designate cfo and the executive committee
• approval of final retirement arrangements for the former ceo
• review of the 2013 year end compensation process and budgets for all employees
• preliminary discussion of 2013 performance and remuneration decisions for the ceo cfo and the executive committee
short term incentives • assessment of company performance against the 2012 annual bonus funding scorecard
• approval of the 2013 corporate scorecard
• preliminary review of the 2014 corporate scorecard
long term incentives • determination of the vesting percentage of the 2010 psp awards granted under the psp for executive directors
• approval of the 2013 performance matrix for psp awards to executive directors
• approval of annual offerings of sharesave and espp awards
• approval of the vesting outcome for angus russell’s 201 1 and 2012 psp awards
• preliminary review of the 2014 performance matrix for psp awards to executive directors
• consideration of potential saes in relation to outstanding psp performance cycles
governance and other 
matters
• approval of the 2012 drr
• consideration of trends in executive remuneration and corporate governance developments
• preparation of preliminary 2013 drr including consideration of the schedule 8 regulations and review of shareholder 
and proxy advisory firm feedback on the 2012 drr
• approval of approach to autumn shareholder consultation exercise and review of shareholder and proxy advisory firm feedback
• review of the committee’s term of reference
• review of the ceo cfo and the executive committee’s shareholdings
wwwshirecom annual report 2013 shire plc 89
strategic report governance financial statements other information directors’ remuneration 
report continued
shareholder context for the committee’s activities
the table below shows how shareholders voted on the advisory vote in relation to the 2012 drr at the agm on april 30 2013  
this endorsement of the current remuneration approach informed the committee’s activities and decision making in 2013
for including discretionary votes  against 
votes cast as a 
 of relevant 
shares in issue withheld
1
361222372 9626 14042536 374 6756 12225569
1 
votes withheld are not a vote in law and are not counted in the calculation of the proportion of votes validly cast
advisors
in discharging its responsibilities in 2013 the committee was materially assisted by those employees performing the roles of human 
resources director and vice president total rewards in addition pricewaterhousecoopers llp “pwc” appointed by the 
committee continued to serve as independent external advisor to the committee following a competitive tendering process in early 
2012 pwc also provided global consultancy services to the company in 2013 primarily in respect of tax matters fees paid to pwc 
in relation to remuneration services provided to the committee totalled £201200 in 2013 and were determined based on the scope 
and nature of the projects undertaken for the committee
the committee is satisfied that the advice received by pwc in relation to executive remuneration matters during the year was 
independent the committee reviewed the potential for conflicts of interest and judged that there were appropriate safeguards 
against any potential conflicts pwc is a member of the remuneration consultants’ group which operates a code of conduct in 
relation to executive remuneration consulting in the uk
approval
this report was approved by the board on february 24 2014 and signed on its behalf by
anne minto
chairman of the remuneration committee 
90 shire plc annual report 2013 wwwshirecom additional statutory information
directors 
appointment and replacement
directors may be appointed by the 
company by ordinary resolution or by the 
board nonexecutive directors are 
appointed ordinarily for a term of two 
years subject to shareholder approval 
reappointment of nonexecutive 
directors following the expiry of their term 
of appointment is subject to board 
approval the board may from timeto
time appoint one or more directors for 
such period and on such terms as it may 
determine and may also revoke or 
terminate any such appointment
the company’s articles of association the 
“articles” provide that at each annual 
general meeting “agm” all those 
directors who have been appointed by the 
board since the last agm or who held 
office at the time of the two preceding 
agms and who did not retire at either of 
them or who held office with the 
company other than executive office for a 
continuous period of nine years or more at 
the date of the meeting shall retire from 
office and may offer themselves for 
reelection by the members 
notwithstanding the provisions in the 
articles in accordance with the uk 
corporate governance code all directors 
will be subject to annual reelection
powers
subject to the provisions of the companies 
jersey law 1991 as amended the 
“companies act” the articles and 
directions given by the company in general 
meeting by special resolution the business 
of the company is managed by the board 
which may exercise all the powers of the 
company whether relating to the 
management of the business of the 
company or not in particular the board 
may exercise all the powers of the 
company to borrow money and to 
mortgage or charge all or any part of the 
undertaking property and assets present 
and future and uncalled capital of the 
company and subject to the companies 
act to issue debentures and other 
securities whether outright or as collateral 
security for a debt liability or obligation of 
the company or of a third party
liability insurance and indemnification
in the year under review the group 
maintained an insurance policy for its 
directors and officers in respect of 
liabilities arising out of any act error or 
omission whilst acting in their capacity as 
directors or officers qualifying third party 
indemnity provisions were also in place 
during the year under review for the benefit 
of directors in relation to certain losses and 
liabilities which they may potentially incur to 
third parties in the course of their duties 
these remain in force at the date of this 
report
interests in material contracts
other than the insuranceindemnity 
provisions disclosed under “liability 
insurance and indemnification” above 
none of the directors had a material 
interest in any contract of significance to 
which the company or any of its subsidiary 
undertakings was a party during the 
period under review
dividends
subject to the provisions of the companies 
act the company may by ordinary 
resolution from timetotime declare 
dividends not exceeding the amount 
recommended by the board subject to 
the companies act the board may pay 
interim dividends and also any fixed rate 
dividend whenever the financial position of 
the company in the opinion of the board 
justifies its payment
the board may withhold payment of all or 
any part of any dividends or other monies 
payable in respect of the shares from a 
person with a 025 interest as defined in 
the articles if such person has been 
served with a restriction notice as defined 
in the articles after failure to provide the 
company with information concerning 
interests in those shares required to be 
provided under the articles
shire has put in place income access 
share arrangements which enable 
shareholders to elect to receive their 
dividends from a group company resident 
for tax purposes in the uk further details 
can be found in note 23 to the 
consolidated financial statements
in respect of the six months to december 
31 2013 the board resolved to pay an 
interim dividend of 1693 us cents 2012 
1460 us cents per ordinary share 
together with the first interim dividend 
payment of 300 us cents 2012 273 us 
cents per ordinary share this represents 
total dividends of 1993 us cents 2012 
17 33 us cents per ordinary share for the 
year ended december 31 2013 
acs hr solutions share plan services 
guernsey limited the “trustee” trustee 
of the shire employee benefit trust the 
“trust” has waived its entitlement to any 
dividends which become due and payable 
from timetotime in respect of shares or 
other securities which are registered in the 
name of the trustee or its nominees total 
dividends waived by the trustee during the 
year amounted to £34406629
shares
share capital
as at the year ended december 31 2013 
the company’s issued share capital 
comprised 597 542344 ordinary shares of 
5 pence each of which 9823536 ordinary 
shares were held in treasury 
rights and obligations attaching to shares
the rights and obligations attaching to the 
ordinary shares are set out in the articles 
which are available on the company’s 
website the articles may only be 
amended by special resolution of the 
members of the company
variation of rights
subject to the companies act rights 
attached to any class of shares may be 
varied with written consent of the holders 
of not less than two thirds in nominal value 
of the issued shares of that class 
calculated excluding any shares held in 
treasury or with the sanction of a special 
resolution passed at a separate meeting 
of the holders of those shares at each 
such separate general meeting except 
an adjourned meeting the quorum shall 
be two persons holding or representing 
by proxy not less than one third in nominal 
value of the issued shares of that class 
calculated excluding any shares held 
in treasury
wwwshirecom annual report 2013 shire plc 91
strategic report governance financial statements other information issuance of shares
subject to applicable statutes and subject 
to and without prejudice to any rights 
attached to existing shares shares may be 
issued with such rights and restrictions as 
the company may by special resolution 
decide or if no such resolution has been 
passed or so far as the resolution does not 
make specific provision as the board may 
decide subject to the articles the 
companies act and other shareholders’ 
rights unissued shares are at the disposal 
of the board
restrictions on transfer of shares
there are no restrictions on the transfer 
of shares in the company except i that 
certain restrictions may from timetotime 
be imposed by laws and regulations for 
example insider trading laws and ii 
pursuant to the listing rules of the uk 
financial conduct authority whereby 
certain directors and employees of the 
company require the approval of the 
company to deal in the company’s 
ordinary shares
voting 
it is the company’s practice to hold a poll 
on every resolution at general meetings 
every member present in person or by 
proxy has upon a poll one vote for every 
share held by him in the case of joint 
holders of a share the vote of the senior 
who tenders a vote whether in person or 
by proxy shall be accepted to the exclusion 
of the votes of the other joint holders and 
for this purpose seniority shall be 
determined by the order in which the 
names stand in the register of members in 
respect of the joint holding
restrictions on voting 
no member shall unless the board 
otherwise decides be entitled to attend or 
vote at any general or class meeting in 
respect of any shares held if any call or 
other sum payable by that member 
remains unpaid also a member may not 
be entitled to attend or vote if served with a 
restriction notice as defined in the articles
the company is not aware of any 
agreements between holders of 
securities that may result in restrictions 
on voting rights
the company maintains an american 
depositary receipt “adr” program in 
the us each american depositary share 
“ads” represents three ordinary shares 
an ads is evidenced by an adr issued by 
citibank na as depositary and is listed 
on the nasdaq global select market 
each ads holder is entitled to the financial 
rights attached to such shares although 
the adr depositary is the registered 
holder of the underlying ordinary shares
as at december 31 2013 the trust held 
075 of the issued share capital of the 
company on trust for the benefit of 
participants in the company’s employee 
share plans the voting rights in relation to 
these shares are exercised by the trustee 
the trustee may vote or abstain from 
voting in any way it thinks fit and in doing 
so may take into account both financial 
and nonfinancial interests of the 
beneficiaries of the trust or  
their dependants historically the trustee 
has not exercised its right to vote
purchase of own shares
at its agm held on april 30 2013 the 
company was authorized until the earlier 
of july 29 2014 or the conclusion of the 
2014 agm to make market purchases 
of up to 55741587 of its own ordinary 
shares further details regarding 
purchases by the company of its own 
shares can be found in note 23 to the 
consolidated financial statements
substantial shareholdings
as at the date of this report the company 
had been notified of the following holdings 
of 3 or more in the issued ordinary 
share capital of the company
number of 
ordinary  
shares
percentage of 
issued share 
capital
1
blackrock inc 55345849 999
fmr llc 27861459 495
1 excludes treasury shares
significant agreements
the following significant agreements 
contain provisions entitling counterparties 
to exercise the following rights in the event 
of a change of control of the company
• under the 1200 million credit facility 
agreement dated november 23 2010 
between amongst others the company 
and a number of its subsidiaries 
barclays bank plc as the facility agent 
and the banks and financial institutions 
named therein as lenders upon a 
change of control any lender may 
following not less than 30 days’ notice 
cancel its commitments and require 
prepayment of its participation in any 
outstanding loans for these purposes a 
change of control occurs if any person or 
group of persons acting in concert gains 
the ability to control more than half the 
votes at a general meeting of the 
company or holds more than half the 
equity share capital of the company 
a waiver of the mandatory prepayment 
provision would require the consent of 
each lender under the agreement as 
at february 24 2014 150 million was 
outstanding under the agreement
• under the 2600 million term loan 
agreement dated november 11 2013 
between amongst others the company 
and a number of its subsidiaries morgan 
stanley bank international limited as the 
facility agent and the banks and financial 
institutions named therein as lenders 
upon a change of control any lender 
may following not less than 30 days’ 
notice cancel its commitments and 
require prepayment of its participation in 
any outstanding loans for these 
purposes a change of control occurs if 
any person or group of persons acting in 
concert gains the ability to control more 
than half the votes at a general meeting 
of the company or holds more than half 
the equity share capital of the company 
a waiver of the mandatory prepayment 
provision would require the consent of 
each lender under the agreement as at 
february 24 2014 1200 million was 
outstanding under the agreement
additional statutory information 
continued
92 shire plc annual report 2013 wwwshirecom political donations
shire did not make any donations to 
political parties during the year ended 
december 31 2013 2012 nil
liquidity cash flow and going concern
the directors’ report sets out information 
on the financial position of the group its 
cash flows liquidity position and borrowing 
facilities its business activities together 
with the factors likely to affect its future 
development performance and financial 
position its objectives policies and 
processes for managing capital its 
financial risk management objectives 
details of its hedging activity and its 
exposures to credit risk and liquidity risk 
details of the group’s financial instruments 
are disclosed in note 21 to the 
consolidated financial statements
the directors have a reasonable 
expectation that the group has adequate 
resources to continue in operational 
existence for the foreseeable future 
thus they continue to adopt the going 
concern basis of accounting in preparing 
the annual financial statements
audit information
each of the persons who is a director at 
the date of approval of this report confirms 
that
• so far as the director is aware there is no 
relevant audit information of which the 
company’s auditor is unaware and
• the director has taken all the steps that 
the heshe ought to have taken as a 
director in order to make himselfherself 
aware of any relevant audit information 
and to establish that the company’s 
auditor is aware of that information 
directors’ report
the directors’ report comprises pages 
4 to 93 of this annual report and accounts
on behalf of the board
tatjana may
company secretary 
february 24 2014
wwwshirecom annual report 2013 shire plc 93
strategic report other information governance financial statements directors’ responsibilities statement
the directors are responsible for preparing 
the annual report the director’s 
remuneration report and the financial 
statements in accordance with applicable 
law and regulations
the directors have elected to prepare 
the consolidated financial statements in 
accordance with accounting principles 
generally accepted in the united states of 
america in preparing the parent company 
financial statements the directors are 
required to
• select suitable accounting policies and 
then apply them consistently
• present information including accounting 
policies in a manner that provides 
relevant reliable comparable and 
understandable information and
• make an assessment of the company’s 
ability to continue as a going concern
the directors are responsible for keeping 
adequate accounting records that are 
sufficient to show and explain the 
company’s transactions and disclose with 
reasonable accuracy at any time the 
financial position of the company and 
enable them to ensure that the financial 
statements comply with the companies 
jersey law 1991 they are also 
responsible for safeguarding the assets of 
the company and hence for taking 
reasonable steps for the prevention and 
detection of fraud and other irregularities
the directors are responsible for the 
maintenance and integrity of the corporate 
and financial information included on the 
company’s website 
responsibility statement 
the directors confirm that to the best of 
their knowledge
• the financial statements prepared in 
accordance with accounting principles 
generally accepted in the united states 
of america present fairly in all material 
respects the assets liabilities financial 
position and profit or loss of the group 
and the undertakings included in the 
consolidation taken as a whole and
• the strategic report includes a fair review 
of the development and performance 
of the business and the position of the 
group and the undertakings included 
in the consolidation taken as a whole 
together with a description of the 
principal risks and uncertainties that 
they face and
• the annual report and financial 
statements taken as a whole are fair 
balanced and understandable and 
provide the information necessary for 
shareholders to assess the company’s 
performance business model and 
strategy
on behalf of the board
chief executive officer
flemming ornskov
february 24 2014
chief financial officer
graham hetherington 
february 24 2014
94 shire plc annual report 2013 wwwshirecom opinion on financial statements of shire plc
in our opinion the consolidated financial statements of shire plc and subsidiaries together the “group”
•  present fairly in all material respects the financial position of the group as of december 31 2013 and the results of its operations 
and cash flows for the year ended december 31 2013 in conformity with accounting principles generally accepted in the united 
states of america and
• have been properly prepared in accordance with the requirements of the companies jersey law 1991
the financial statements comprise consolidated balance sheet the related consolidated statements of income equity and 
comprehensive income and cash flows and the related notes 1 to 31 the financial reporting framework that has been applied 
in their preparation is applicable law and accounting principles generally accepted in the united states of america
going concern
as required by the listing rules we have reviewed the directors’ statement on page 93 that the company is a going concern 
we confirm that
• we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements 
is appropriate and
• we have not identified any material uncertainties that may cast significant doubt on the company’s ability to continue as a going 
concern
however because not all future events or conditions can be predicted this statement is not a guarantee as to the company’s ability 
to continue as a going concern
our assessment of risks of material misstatement
the assessed risks of material misstatement described below are those that had the greatest effect on our audit strategy 
the allocation of resources in the audit and directing the efforts of the engagement team
risk how the scope of our audit responded to the risk
the acquisition of sarcode biosciences inc 
“sarcode”
the risk that the acquisition accounting including the 
valuation of acquired intangible assets and contingent 
consideration in respect of the group’s acquisition of 
sarcode is not performed correctly
the directors determination of the purchase price allocation for the acquisition of sarcode is included 
at note 4
we have challenged the key assumptions made by the directors in determining the fair value of the 
consideration and the allocation of the purchase price including
• the level of postlaunch cash flows and potential market size
•  the probability that certain key milestones such as the outcome of pharmaceutical trials will be 
achieved
• valuation assumptions such as the discount rate and tax rate
in doing so we have utilised experts in the areas of valuations and taxation and have considered the 
judgments in light of external data such as analyst expectations market size and comparator 
companies as well as considering the appropriateness of the process and controls adopted by 
management in determining the acquisition accounting 
carrying value of in process research and 
development intangible assets
there is a risk that in their formal annual and ongoing 
assessment of the carrying value of intangible assets 
the directors make inappropriate judgments in their 
impairment analysis
we have considered management’s impairment analysis understood and challenged the key 
judgments and sensitivities and the impact that each of these have in determining whether an 
impairment exists
in particular we focussed on the carrying value of inprocess research and development intangible 
assets and in doing so challenged management’s assessment of the probability of success of 
ongoing clinical trials and the launch of new products in the market
in doing so we have consulted with our own experts in valuations and have considered the 
judgments in light of external data
rebates and sales deductions
the directors are required to make judgments in 
respect of the level of rebates and other sales 
deductions that will be realised against the group’s 
sales there is a risk that these judgments are not 
appropriate and as a result rebate liabilities and sales 
deductions are recorded at an incorrect level
we have considered the group’s process for making judgments in this area performed an analysis 
of the historical accuracy of judgments and have understood and challenged the key elements of 
judgments made in the period in light of externally verifiable data and industry practice
impact of complex group structure on tax 
provisioning
as the group transacts globally within a complex group 
structure significant judgment is required in determining 
the level of tax provisions
we have considered the professional advice obtained by management reviewed correspondence with 
taxation authorities in key jurisdictions and have utilised taxation experts to both consider and 
challenge the level of provision for individual potential tax exposures
independent auditor’s report
wwwshirecom annual report 2013 shire plc 95
strategic report governance financial statements other information governance financial statements the audit committee’s consideration of these risks is set out on page 60
our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole and 
not to express an opinion on individual accounts or disclosures our opinion on the financial statements is not modified with respect 
to any of the risks described above and we do not express an opinion on these individual matters
our application of materiality
we define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic 
decisions of a reasonably knowledgeable person would be changed or influenced we use materiality both in planning the scope 
of our audit work and in evaluating the results of our work
we determined materiality for the company to be 60 million which is below 5 of normalised pretax profit and below 2 of equity 
pretax profit has been normalised by removing the impact of one off items such as impairments of goodwill and intangible assets and 
the derecognition of the group’s contingent consideration liability in respect of sarcode
we agreed with the audit committee that we would report to the committee all audit differences in excess of 3 million as well as 
differences below that threshold that in our view warranted reporting on qualitative grounds we also report to the audit committee 
on disclosure matters that we identified when assessing the overall presentation of the financial statements
an overview of the scope of our audit
our audit was scoped by obtaining an understanding of the entity and its environment including internal control and assessing 
the risks of material misstatement audit work to respond to the risks of material misstatement was performed directly by the audit 
engagement team
our group audit scope focused on three operating locations subject to a full scope audit for the year ended december 31 2013 
including
• the us operations of the group excluding regenerative medicine based in lexington ma us and chesterbrook pa us
•  uk  ireland operations of the group based in basingstoke uk and dublin ireland
• shire deutschland based in berlin germany
together with the group functions which were also subject to a full scope audit for the year ended december 31 2013 these locations 
represent the principal business units of the group and account for 94 of the group’s total assets and 82 of the group’s revenue 
audits of these locations are performed at a materiality level calculated by reference to a proportion of group materiality appropriate to 
the relative scale of the business concerned 
the audit procedures in respect of remaining operating locations included discussions with local management analytical reviews 
and the consideration of findings from internal audit reviews
in addition audits are expected to be performed for local statutory purposes at a further 26 locations which represent a further 11 
of the group’s revenue audits of these locations are performed at a local materiality level calculated by reference to the scale of the 
business concerned
the group audit team follows a programme of planned site visits that is designed to ensure that the senior statutory auditor or his 
designate visits each of the full scope locations during the year in addition to this the group audit team will visit other locations not 
in full scope on a rotational basis over a three year period
opinion on other matters 
in our opinion
• the financial statements have been properly prepared in accordance with the provisions of the companies act 2006 that would 
have been applied were the group incorporated in the united kingdom
• the information given in the directors report for the financial year for which the financial statements are prepared is consistent with 
the financial statements and
• the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the companies act 
2006 that would have been applied were the group incorporated in the united kingdom
independent auditor’s report 
continued
96 shire plc annual report 2013 wwwshirecom matters on which we are required to report by exception
adequacy of explanations received and accounting records 
under the companies jersey law 1991 we are required to report to you if in our opinion
• we have not received all the information and explanations we require for our audit or
•  proper accounting records have not been kept by the parent company or proper returns adequate for our audit have  
not been received from branches not visited by us or
• the financial statements are not in agreement with the accounting records and returns
we have nothing to report in respect of these matters
directors’ remuneration
under the listing rules we are required to review certain elements of the directors remuneration report we have nothing to report 
arising from these matters or our review 
corporate governance statement
under the listing rules we are also required to review the part of the corporate governance statement relating to the company’s 
compliance with nine provisions of the uk corporate governance code we have nothing to report arising from our review
our duty to read other information in the annual report
under international standards on auditing uk and ireland we are required to report to you if in our opinion information in the 
annual report is
• materially inconsistent with the information in the audited financial statements or
• apparently materially incorrect based on or materially inconsistent with our knowledge of the company acquired in the course of 
performing our audit or
• otherwise misleading
in particular we are required to consider whether we have identified any inconsistencies between our knowledge acquired during the 
audit and the directors’ statement that they consider the annual report is fair balanced and understandable and whether the annual 
report appropriately discloses those matters that we communicated to the audit committee which we consider should have been 
disclosed we confirm that we have not identified any such inconsistencies or misleading statements
respective responsibilities of directors and auditor
as explained more fully in the directors’ responsibilities statement the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law and international standards on auditing uk and ireland those standards 
require us to comply with the auditing practices board’s ethical standards for auditors
this report is made solely to the company’s members as a body in accordance with article 113a of the companies jersey law 
1991 our audit work has been undertaken so that we might state to the company’s members those matters we are required to state 
to them in an auditor’s report and for no other purpose to the fullest extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the company’s members as a body for our audit work for this report or for the 
opinions we have formed
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied 
and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall presentation 
of the financial statements in addition we read all the financial and non financial information in the annual report to identify material 
inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on 
or materially inconsistent with the knowledge acquired by us in the course of performing the audit if we become aware of any 
apparent material misstatements or inconsistencies we consider the implications for our report
james bates
for and on behalf of deloitte llp
chartered accountants and recognized auditors
london united kingdom
february 24 2014
 
wwwshirecom annual report 2013 shire plc 97
strategic report governance financial statements other information governance financial statements 98 shire plc annual report 2013
we aim to deliver significantly above average 
industry growth levels 
take for example firazyr our leading acute 
treatment for the rare genetic disease hereditary 
angiodema hae with only around half of sufferers 
in the us currently treated firazyr has great 
potential for future growth
102
firazyr growth yearonyear
•   portable ondemand 
subcutaneous 
selfadministered 
presentation
•  average patient on 
firazyr is treating 
1218 acute attacks 
per year
•   firazyr has the 
leading market share 
in us of hae attacks 
treated acutely
•  over 1600 patients 
in us have received 
firazyr commercial 
therapy to date
•  potential for significant 
growth in the future  
with only 50 of the 
market treated
potential
firazyr 
a leader with great growth potential
patients
•  estimated 7 0008000 
us hae sufferers
•  only around half of 
sufferers currently 
treated
product progress
 based on shire’s market research
98 shire plc annual report 2013 strategic report governance financial statements other information consolidated balance sheets
in millions of us dollars except share data
 notes 
december 31 
2013 
’m
december 31 
2012 
’m
assets   
current assets   
cash and cash equivalents 22394 14822
restricted cash 222 171 
accounts receivable net 7 9612 8242 
inventories 8 4553 4369 
assets held for sale 9 316 –
deferred tax asset 27 3156 2299 
prepaid expenses and other current assets 10 2630 2218 
total current assets 42883 32121 
noncurrent assets   
investments 318 387 
property plant and equipment net 11 8918 9558 
goodwill 12 6246 6445 
other intangible assets net 13 23126 23881 
deferred tax asset 27 1411 465 
other noncurrent assets 328 315 
total assets 83230 73172 
liabilities and equity   
current liabilities   
accounts payable and accrued expenses 14 16884 15015 
other current liabilities 15 1195 1441 
total current liabilities 18079 16456 
noncurrent liabilities   
convertible bonds 16 –  11000 
deferred tax liability 27 5606 5208 
other noncurrent liabilities 18 5885 2416 
total liabilities 29570 35080 
commitments and contingencies 19
equity   
common stock of 5p par value 1000 million shares authorized and 597 5 million shares 
issued and outstanding 2012 1000 million shares authorized and 5625 million shares 
issued and outstanding 23 586 557 
additional paidin capital 41863 29815 
treasury stock 134 million shares 2012 107 million shares 23 4506 3104
accumulated other comprehensive income 20 1102 869 
retained earnings 14615 9955 
total equity 53660 38092 
total liabilities and equity  83230 73172 
the accompanying notes are an integral part of these consolidated financial statements
the consolidated financial statements were approved by the board of directors on february 24 2014 and signed on its behalf by
graham hetherington
chief financial officer
february 24 2014
100 shire plc annual report 2013 wwwshirecom consolidated statements of income
in millions of us dollars except share and per share data
 notes 
2013  
’m
2012  
’m 
revenues
product sales 47575 42529 
royalties  1537 2416 
other revenues 231 329 
total revenues 49343 45274 
costs and expenses   
cost of product sales 6708 5858 
research and development
1
 9334 9530 
selling general and administrative
1
 16513 19480 
goodwill impairment charge 12 71 – 
gain on sale of product rights 5 159 181
reorganization costs 6 882 – 
integration and acquisition costs 4 1341 135 
total operating expenses 32008 34822 
operating income from continuing operations 17335 10452 
interest income 21 30 
interest expense 381 382
other expense net 39 22
total other expense net 399 374
income from continuing operations before income taxes and equity in earnings of equity method investees  16936 10078 
income taxes 27 2779 2031
equity in earnings of equity method investees net of taxes 39 10 
income from continuing operations net of taxes 14196 8057 
loss from discontinued operations net of taxes
 
9 7545 603
net income  6651 7454 
earnings per ordinary share – basic   
earnings from continuing operations  2572c 1451c
loss from discontinued operations  1367c 109c
earnings per ordinary share – basic  1205c 1342c
earnings per ordinary share – diluted   
earnings from continuing operations  2453c 1410c
loss from discontinued operations  1278c 101c
earnings per ordinary share – diluted 1175c 1309c
weighted average number of shares millions 
basic 24 5520 5554 
diluted 24 5903 5935 
1 
research and development “rd” includes intangible asset impairment charges of 199 million 2012 712 million for the year to december 31 2013 
selling general and administrative “sga” costs include amortization and impairment charges of intangible assets relating to intellectual property rights acquired 
of 1520 million for the year to december 31 2013 2012 2803 million
the accompanying notes are an integral part of these consolidated financial statements
 
wwwshirecom annual report 2013 shire plc 101
strategic report governance financial statements other information consolidated statements of comprehensive income
in millions of us dollars
  
2013  
’m 
2012
’m 
net income 6651 7454 
other comprehensive income  
foreign currency translation adjustments 253 237 
unrealized holding gainloss on availableforsale securities  
 net of taxes of 01 million and 25 million 20 29
comprehensive income 6884 7720 
the components of accumulated other comprehensive income as at december 31 2013 and december 31 2012 are as follows
  
december 31 
2013 
’m
december 31 
2012 
’m
foreign currency translation adjustments 1104 851 
unrealized holding gain on availableforsale securities net of taxes 02 18 
accumulated other comprehensive income 1102 869 
the accompanying notes are an integral part of these consolidated financial statements
102 shire plc annual report 2013 wwwshirecom consolidated statements of changes in equity
in millions of us dollars except share data
shire plc shareholders’ equity
common 
stock number 
of shares 
m’s
common 
stock
’m
additional 
paidin capital 
’m
treasury  
stock  
’m
accumulated 
other 
comprehensive 
income 
’m
retained 
earnings
’m
total  
equity
’m
as at january 1 2013 5625 557 29815 3104 869 9955 38092 
net income – – – – – 6651 6651 
other comprehensive income net of tax – – – – 233 – 233 
options exercised 12 01 161 – – – 162 
convertible bonds conversion 
to ordinary shares 338 28 10987 – – – 11015 
sharebased compensation – – 781 – – – 781 
tax benefit associated with 
exercise of stock options – – 119 – – – 119 
shares purchased by employee 
benefit trust ebt – – – 500 – – 500
shares purchased under 
share buyback program – – – 1938 – – 1938
shares released by ebt to satisfy 
exercise of stock options – – – 1036 – 1027 09 
dividends – – – – – 964 964
as at december 31 2013 5975 586 41863 4506 1102 14615 53660 
the accompanying notes are an integral part of these consolidated financial statements
dividends per share
during the year to december 31 2013 shire plc declared and paid dividends of 17 60 us cents per ordinary share equivalent to 
5280 us cents per ads totaling 964 million
shire plc shareholders’ equity
common 
stock number 
of shares 
m’s
common 
stock
’m
additional 
paidin capital 
’m
treasury  
stock  
’m
accumulated 
other 
comprehensive 
income 
’m
retained 
earnings
’m
total  
equity
’m
as at january 1 2012 5625 557 28533 2872 603 5029 31850 
net income – – – – – 7454 7454 
other comprehensive income net of tax – – – – 266 – 266 
options exercised – – 01 – – – 01 
sharebased compensation – – 880 – – – 880 
tax benefit associated with exercise 
of stock options – – 401 – – – 401 
shares purchased by ebt – – – 993 – – 993
shares purchased under share 
buyback program – – – 1065 –  – 1065
shares released by ebt to satisfy 
exercise of stock options – – – 1826 – 1665 161 
dividends – – – – – 863 863
as at december 31 2012 5625 557 29815 3104 869 9955 38092 
the accompanying notes are an integral part of these consolidated financial statements
dividends per share
during the year to december 31 2012 shire plc declared and paid dividends of 1532 us cents per ordinary share equivalent to 
4596 us cents per ads totaling 863 million
wwwshirecom annual report 2013 shire plc 103
strategic report governance financial statements other information consolidated statements of cash flows
in millions of us dollars
  
2013  
’m
2012  
’m 
cash flows from operating activities  
net income 6651 7454 
adjustments to reconcile net income to net cash provided by operating activities  
depreciation and amortization 3244 3086 
share based compensation 774 871 
change in fair value of contingent consideration 1591 92 
impairment of intangible assets 199 1979 
goodwill impairment charge 1989 – 
impairment of assets held for sale 6369 – 
write down of assets 582 09 
gain on sale of noncurrent investments – – 
gain on sale of product rights 159 181
other net 83 74 
movement in deferred taxes 3499 583
equity in earnings of equity method investees 39 10
changes in operating assets and liabilities  
increasedecrease in accounts receivable 1483 222 
increase in sales deduction accruals 1775 427 
increase in inventory 366 882
increase in prepayments and other assets 609 145
increase in accounts payable and other liabilities 679 1367 
returns on investment from joint venture 31 49 
net cash provided by operating activities 
a
14630 13829 
cash flows from investing activities  
movements in restricted cash 53 35 
purchases of subsidiary undertakings and businesses net of cash acquired 2278 970
purchases of non–current investments 106 180
purchases of property plant and equipment ppe 1570 1496
purchases of intangible assets – 435
proceeds from disposal of noncurrent investments and ppe 121 72 
proceeds received on sale of product rights 192 178 
return on investments 54 – 
other net 31 86 
net cash used in investing activities 
b
3609 2710
104 shire plc annual report 2013 wwwshirecom   
2013  
’m
2012  
’m 
cash flows from financing activities  
payments to acquire shares under share buyback program 1938 1065
payment of dividend 964 863
payments to acquire shares by the ebt 500 993
proceeds from exercise of options 172 162 
repayment of debt acquired through business combinations 60 –
facility arrangement fee 139 – 
excess tax benefit associated with exercise of stock options 134 407 
contingent consideration payments 141 58
other net 10 33
net cash used in financing activities
c
3446 2443
effect of foreign exchange rate changes on cash and cash equivalents 
d
03 54
net increase in cash and cash equivalents 
abcd
7572 8622 
cash and cash equivalents at beginning of period 14822 6200 
cash and cash equivalents at end of period 22394 14822 
supplemental information associated with continuing operations
  
2013  
’m
2012  
’m 
interest paid 299 346
income taxes paid 2902 1992
the accompanying notes are an integral part of these consolidated financial statements 
wwwshirecom annual report 2013 shire plc 105
strategic report governance financial statements other information notes to the consolidated financial statements
1 description of operations
shire plc and its subsidiaries collectively referred to as either 
“shire” or the “company” is a leading specialty 
biopharmaceutical company that focuses on developing and 
marketing innovative specialty medicines that address significant 
unmet patient needs 
the company has grown through acquisition completing a 
series of major transactions that have brought therapeutic 
geographic and pipeline growth and diversification the 
company will continue to evaluate companies products and 
pipeline opportunities that offer a good strategic fit and have the 
potential to deliver demonstrable value to all of the company’s 
stakeholders patients physicians policy makers payors 
investors and employees
2 summary of significant  
accounting policies
a basis of preparation
the accompanying consolidated financial statements include the 
accounts of shire plc all of its subsidiary undertakings and the 
income access share trust after elimination of intercompany 
accounts and transactions they have been prepared in 
accordance with generally accepted accounting principles in the 
united states of america “us gaap” and us securities and 
exchange commission “sec” regulations for annual reporting
b use of estimates in consolidated financial statements
the preparation of consolidated financial statements in 
conformity with us gaap and sec regulations requires 
management to make estimates and assumptions that affect the 
reported amounts of assets and liabilities disclosure of 
contingent assets and liabilities at the date of the consolidated 
financial statements and reported amounts of revenues and 
expenses during the reporting period estimates and 
assumptions are primarily made in relation to the valuation of 
intangible assets sales deductions income taxes including 
provisions for uncertain tax positions and the realization of 
deferred tax assets provisions for litigation and legal 
proceedings contingent consideration receivable from product 
divestments contingent consideration payable in respect of 
business combinations and asset purchases and assets held for 
sale if actual results differ from the company’s estimates or to 
the extent these estimates are adjusted in future periods the 
company’s results of operations could either benefit from or be 
adversely affected by any such change in estimate
c revenue recognition
the company recognizes revenue when all of the following 
conditions are met
• there is persuasive evidence of an agreement or arrangement
• delivery of products has occurred or services have 
been rendered
• the seller’s price to the buyer is fixed or determinable and
• collectability is reasonably assured
where applicable all revenues are stated net of value added and 
similar taxes and trade discounts no revenue is recognized for 
consideration the value or receipt of which is dependent on 
future events or future performance
the company’s principal revenue streams and their respective 
accounting treatments are discussed below
product sales
revenue for the sale of products is recognized when delivery has 
occurred and substantially all the risks and rewards of ownership 
have been transferred to the customer provisions for rebates 
product returns and discounts to customers are provided for as 
reductions to revenue in the same period as the related sales are 
recorded the provisions made at the time of revenue recognition 
are based on historical experience and updated for changes in 
facts and circumstances including the impact of new legislation 
the provisions are recognized as a reduction to revenues
royalty income
royalty income relating to licensed technology is recognized 
when the licensee sells the underlying product with the amount 
of royalty income recorded based on sales information received 
from the relevant licensee the company estimates sales 
amounts and related royalty income based on the historical 
product information for any period that the sales information is 
not available from the relevant licensee
licensing revenues
other revenue includes revenues derived from product out
licensing arrangements which typically consist of an initial upfront 
payment on inception of the license and subsequent milestone 
payments contingent on the achievement of certain clinical and 
sales milestones product outlicensing arrangements often 
require the company to provide multiple deliverables to the 
licensee
initial license fees received in connection with product out
licensing agreements entered into prior to january 1 2011 are 
deferred and recognized over the period in which the company 
has continuing substantive performance obligations typically the 
period over which the company participates in the development 
of the outlicensed product even where such fees are non
refundable and not creditable against future royalty payments
for product outlicensing arrangements entered into or subject 
to material modification after january 1 2011 consideration 
received is allocated between each of the separable elements in 
the arrangement using the relative selling price method an 
element is considered separable if it has value to the customer on 
a standalone basis the selling price used for each separable 
element will be based on vendor specific objective evidence 
“vsoe” if available third party evidence if vsoe is not available 
or estimated selling price if neither vsoe nor third party evidence 
is available revenue is then recognized as each of the separable 
elements to which the revenue has been allocated is delivered
milestone payments which are nonrefundable non creditable 
and contingent on achieving certain clinical milestones are 
recognized as revenues either on achievement of such 
milestones if the milestones are considered substantive or over 
the period the company has continuing substantive performance 
obligations if the milestones are not considered substantive if 
milestone payments are creditable against future royalty 
payments the milestones are deferred and released over the 
period in which the royalties are anticipated to be paid
106 shire plc annual report 2013 wwwshirecom 2 summary of significant  
accounting policies continued
d sales deductions 
i rebates
rebates primarily consist of statutory rebates to state medicaid 
agencies and contractual rebates with healthmaintenance 
organizations these rebates are based on price differentials 
between a base price and the selling price as a result rebates 
generally increase as a percentage of the selling price over the life 
of the product as prices increase provisions for rebates are 
recorded as reductions to revenue in the same period as the 
related sales are recorded with the amount of the rebate based 
on the company’s best estimate if any uncertainty exists over the 
unit rebate amount and with estimates of future utilization derived 
from historical trends
ii returns
the company estimates the proportion of recorded revenue that 
will result in a return based on historical trends and when 
applicable specific factors affecting certain products at the 
balance sheet date the accrual is recorded as a reduction to 
revenue in the same period as the related sales are recorded 
iii coupons 
the company uses coupons as a form of sales incentive an 
accrual is established based on the company’s expectation of 
the level of coupon redemption estimated using historical trends 
the accrual is recorded as a reduction to revenue in the same 
period as the related sales are recorded or the date the coupon is 
offered if later than the date the related sales are recorded
iv discounts
the company offers cash discounts to customers for the early 
payment of receivables which are recorded as reductions to 
revenue and accounts receivable in the same period as the 
related sale is recorded
v wholesaler chargebacks
the company has contractual agreements whereby it supplies 
certain products to third parties at predetermined prices 
wholesalers acting as intermediaries in these transactions are 
reimbursed by the company if the predetermined prices are less 
than the prices paid by the wholesaler to the company accruals 
for wholesaler chargebacks which are based on historical trends 
are recorded as reductions to revenue in the same period as the 
related sales are recorded
e collaborative arrangements
the company enters into collaborative arrangements to develop 
and commercialize drug candidates these collaborative 
arrangements often require upfront milestone royalty or profit 
share payments or a combination of these with payments often 
contingent upon the success of the related development and 
commercialization efforts collaboration agreements entered into 
by the company may also include expense reimbursements or 
other such payments to the collaborating partner
the company reports costs incurred and revenue generated 
from transactions with third parties as well as payments between 
parties to collaborative arrangements either on a gross or net 
basis depending on the characteristics of the collaborative 
relationship
f cost of product sales
cost of product sales includes the cost of purchasing finished 
product for sale the cost of raw materials and manufacturing for 
those products that are manufactured by the company shipping 
and handling costs depreciation and amortization of intangible 
assets in respect of favorable manufacturing contracts royalties 
payable on products to which the company does not own the 
rights are also included in cost of product sales
g leased assets
the costs of operating leases are charged to operations on a 
straightline basis over the lease term even if rental payments are 
not made on such a basis
assets acquired under capital leases are included in the 
consolidated balance sheet as property plant and equipment 
and are depreciated over the shorter of the period of the lease or 
their useful lives the capital element of future lease payments is 
recorded as a liability while the interest element is charged to 
operations over the period of the lease to produce a level yield on 
the balance of the capital lease obligation
h advertising expense
the company expenses the cost of advertising as incurred 
advertising costs amounted to 609 million and 858 million for 
the years to december 31 2013 and 2012 respectively and were 
included within selling general and administrative “sga” 
expenses
i rd expense
rd costs are expensed as incurred upfront and milestone 
payments made to third parties for inlicensed products that have 
not yet received marketing approval and for which no alternative 
future use has been identified are also expensed as incurred
milestone payments made to third parties on and subsequent to 
regulatory approval are capitalized as intangible assets and 
amortized over the remaining useful life of the related product
j valuation and impairment of longlived assets other than 
goodwill indefinite lived intangible assets and investments
the company evaluates the carrying value of longlived assets 
other than goodwill indefinite lived intangible assets and 
investments for impairment whenever events or changes in 
circumstances indicate that the carrying amounts of the relevant 
assets may not be recoverable when such a determination is 
made management’s estimate of undiscounted cash flows to be 
generated by the use and ultimate disposition of these assets is 
compared to the carrying value of the assets to determine 
whether the carrying value is recoverable if the carrying value is 
deemed not to be recoverable the amount of the impairment 
recognized in the consolidated financial statements is determined 
by estimating the fair value of the relevant assets and recording 
an impairment loss for the amount by which the carrying value 
exceeds the estimated fair value this fair value is usually 
determined based on estimated discounted cash flows
k finance costs of debt
finance costs relating to debt issued are recorded as a deferred 
charge and amortized to the consolidated statements of income 
over the period to the earliest redemption date of the debt using 
the effective interest rate method on extinguishment of the 
related debt any unamortized deferred financing costs are 
written off and charged to interest expense in the consolidated 
statements of income
wwwshirecom annual report 2013 shire plc 107
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
2 summary of significant  
accounting policies continued
l foreign currency
monetary assets and liabilities in foreign currencies are translated 
into the functional currency of the relevant subsidiary in which 
they arise at the rate of exchange ruling at the balance sheet date 
transactions in foreign currencies are translated into the relevant 
functional currency at the rate of exchange ruling at the date of 
the transaction transaction gains and losses other than those 
related to current and deferred tax assets and liabilities are 
recognized in arriving at income from operations before income 
taxes and equity in earnings of equity method investees 
transaction gains and losses arising on foreign currency 
denominated current and deferred tax assets and liabilities are 
included within income taxes in the consolidated statements of 
income
the results of operations for subsidiaries whose functional 
currency is not the us dollar are translated into the us dollar at 
the average rates of exchange during the period with the 
subsidiaries’ balance sheets translated at the rates ruling at the 
balance sheet date the cumulative effect of exchange rate 
movements is included in a separate component of other 
comprehensive income
foreign currency exchange transaction losses included in 
consolidated statements of income in the years to december 31 
2013 and 2012 amounted to 87 million and 35 million 
respectively
m income taxes
uncertain tax positions are recognized in the consolidated 
financial statements for positions which are considered more 
likely than not of being sustained based on the technical merits 
of the position on audit by the tax authorities the measurement 
of the tax benefit recognized in the consolidated financial 
statements is based upon the largest amount of tax benefit that 
in management’s judgment is greater than 50 likely of being 
realized based on a cumulative probability assessment of the 
possible outcomes the company recognizes interest relating to 
unrecognized tax benefits and penalties within income taxes
deferred tax assets and liabilities are recognized for differences 
between the carrying amounts of assets and liabilities in the 
consolidated financial statements and the tax bases of assets 
and liabilities that will result in future taxable or deductible 
amounts the deferred tax assets and liabilities are measured 
using the enacted tax laws and rates applicable to the periods in 
which the differences are expected to affect taxable income 
deferred tax assets are reduced by a valuation allowance when 
in the opinion of management it is more likely than not that some 
portion or all of the deferred tax assets will not be realized
n earnings per share
basic earnings per share is based upon net income attributable 
to shire plc divided by the weighted average number of ordinary 
shares outstanding during the period diluted earnings per share 
is based upon net income attributable to shire plc adjusted for 
the impact of interest expense on convertible debt on an 
“ifconverted” basis when the effect is dilutive and prior to the 
actual conversion or redemption of debt divided by the weighted 
average number of ordinary share equivalents outstanding 
during the period adjusted for the dilutive effect of all potential 
ordinary shares equivalents that were outstanding during the 
year such potentially dilutive shares are excluded when the effect 
would be to increase diluted earnings per share or reduce the 
diluted loss per share 
o sharebased compensation
sharebased compensation represents the cost of sharebased 
awards granted to employees the company measures share
based compensation cost for awards classified as equity at the 
grant date based on the estimated fair value of the award 
predominantly all of the company’s awards have service andor 
performance conditions and the fair values of these awards are 
estimated using a blackscholes valuation model 
for sharebased compensation awards which cliff vest the 
company recognizes the cost of the relevant share based 
payment award as an expense on a straightline basis net of 
estimated forfeitures over the employee’s requisite service 
period for those sharebased compensation awards with a 
graded vesting schedule the company recognizes the cost of 
the relevant share based payment award as an expense on a 
straightline basis net of estimated forfeitures over the requisite 
service period for the entire award that is over the requisite 
service period for the last separately vesting portion of the award 
the share based compensation expense is recorded in cost of 
product sales rd and sga in the consolidated statements of 
income based on the employees’ respective functions
the company records deferred tax assets for awards that result 
in deductions on the company’s income tax returns based on 
the amount of compensation cost recognized and the 
company’s statutory tax rate in the jurisdiction in which it will 
receive a deduction differences between the deferred tax assets 
recognized for financial reporting purposes and the actual tax 
deduction reported on the company’s income tax return are 
recorded in additional paidin capital if the tax deduction 
exceeds the deferred tax asset or in the consolidated statements 
of income if the deferred tax asset exceeds the tax deduction 
and no additional paidin capital exists from previous awards
the company’s sharebased compensation plans are described 
more fully in note 28
p cash and cash equivalents
cash and cash equivalents are defined as short term highly liquid 
investments with original maturities of ninety days or less 
q financial instruments – derivatives 
the company uses derivative financial instruments to manage its 
exposure to foreign exchange risk associated with intercompany 
financing these instruments consist of swap and forward foreign 
exchange contracts the company does not apply hedge 
accounting for these instruments the fair values of these 
instruments are included on the balance sheet in current assets
liabilities with changes in the fair value recognized in the 
consolidated statements of income the cash flows relating to 
these instruments are presented within net cash provided by 
operating activities in the consolidated statement of cash flows 
unless the derivative instruments are economically hedging 
specific investing or financing activities
108 shire plc annual report 2013 wwwshirecom 2 summary of significant  
accounting policies continued 
r inventories
inventories are stated at the lower of cost or market cost 
incurred in bringing each product to its present location and 
condition is based on purchase costs calculated on a firstin 
firstout basis including transportation costs
inventories include costs relating to both marketed products and 
for certain products cost incurred prior to regulatory approval 
inventories are capitalized prior to regulatory approval if the 
company considers that it is probable that the us food and 
drug administration “fda” or another regulatory body will grant 
commercial and manufacturing approval for the relevant product 
and it is probable that the value of capitalized inventories will be 
recovered through commercial sale
inventories are written down for estimated obsolescence or 
unmarketable inventory equal to the difference between the 
cost of inventory and estimated market value based upon 
assumptions about future demand and market conditions 
if actual market conditions are less favorable than those 
anticipated inventory adjustments may be required 
s assets heldforsale
an asset or asset disposal group is classified as heldforsale 
when amongst other things the company has committed to a 
plan of disposition the asset or asset disposal group is available 
for immediate sale and the plan is not expected to change 
significantly assets heldforsale are carried at the lower of their 
carrying amount or fair value less cost to sell
the company does not record depreciation or amortization on 
assets classified as heldforsale
t investments
the company has certain investments in pharmaceutical and 
biotechnology companies
investments are accounted for using the equity method of 
accounting if the investment gives the company the ability to 
exercise significant influence but not control over the investee 
significant influence is generally deemed to exist if the company 
has an ownership interest in the voting stock of the investee 
between 20 and 50 although other factors such as 
representation on the investee’s board of directors and the 
nature of commercial arrangements are considered in 
determining whether the equity method of accounting is 
appropriate under the equity method of accounting the 
company records its investments in equitymethod investees in 
the consolidated balance sheet under investments and its share 
of the investees’ earnings or losses together with otherthan
temporary impairments in value under equity in earnings of equity 
method investees in the consolidated statements of income
all other equity investments which consist of investments for 
which the company does not have the ability to exercise 
significant influence are accounted for under the cost method or 
at fair value investments in private companies are carried at cost 
less provisions for otherthantemporary impairment in value for 
public companies that have readily determinable fair values the 
company classifies its equity investments as availableforsale 
and accordingly records these investments at their fair values 
with unrealized holding gains and losses included in the 
consolidated statement of comprehensive income net of any 
related tax effect realized gains and losses and declines in 
value of availableforsale securities judged to be otherthan
temporary are included in other income net the cost of 
securities sold is based on the specific identification method 
interest on securities classified as availableforsale are included 
as interest income
u property plant and equipment
property plant and equipment is shown at cost reduced for 
impairment losses net of accumulated depreciation the cost of 
significant assets includes capitalized interest incurred during the 
construction period depreciation is recorded on a straightline 
basis at rates calculated to write off the cost less estimated 
residual value of each asset over its estimated useful life as 
follows
buildings 15 to 50 years
office furniture fittings and 
equipment
3 to 10 years
warehouse laboratory and 
manufacturing equipment 3 to 15 years
the cost of land is not depreciated assets under the course of 
construction are not depreciated until the relevant assets are 
available and ready for their intended use
expenditures for maintenance and repairs are charged to the 
consolidated statements of income as incurred the costs of 
major renewals and improvements are capitalized at the time 
property plant and equipment is retired or otherwise disposed of 
the cost and accumulated depreciation are eliminated from the 
asset and accumulated depreciation accounts the profit or loss 
on such disposition is reflected in operating income
v goodwill and other intangible assets
i goodwill
in business combinations completed subsequent to january 1 
2009 goodwill represents the excess of the fair value of the 
consideration given and the fair value of any noncontrolling 
interest in the acquiree over the fair value of the identifiable assets 
and liabilities acquired for business combinations completed 
prior to january 1 2009 goodwill represents the excess of the fair 
value of the consideration given over the fair value of the 
identifiable assets and liabilities acquired
goodwill is not amortized but instead is reviewed for impairment 
at least annually or whenever events or changes in circumstances 
indicate that the carrying value may not be recoverable for the 
purpose of assessing the carrying value of goodwill for 
impairment goodwill has been allocated to the company’s 
reporting unit events or changes in circumstances which could 
trigger an impairment review include but are not limited to 
significant underperformance of the reporting unit relative to 
expected historical or projected future operating results 
significant changes in the manner of the company’s use of 
acquired assets or the strategy for the overall business and 
significant negative industry trends
wwwshirecom annual report 2013 shire plc 109
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
2 summary of significant  
accounting policies continued 
goodwill is reviewed for impairment by comparing the carrying 
value of the reporting unit’s net assets including allocated 
goodwill to the fair value of the reporting unit if the reporting 
unit’s carrying amount is greater than its fair value a second step 
is performed whereby the portion of the reporting unit’s fair value 
relating to goodwill is compared to the carrying value of the 
reporting unit’s goodwill the company recognizes a goodwill 
impairment charge for the amount by which the carrying value of 
goodwill exceeds its estimated fair value in the year to december 
31 2013 the company has recorded an impairment charge of 
1989 million related to the goodwill allocated to the company’s 
former regenerative medicine “rm” reporting unit see note 12 
for further details
ii other intangible assets
other intangible assets principally comprise intellectual property 
rights for products with a defined revenue stream acquired 
product technology and iprd intellectual property rights for 
currently marketed products and acquired product technology 
are recorded at fair value and amortized over the estimated useful 
life of the related product which ranges from 1 to 20 years 
weighted average 101 years iprd acquired through a 
business combination is capitalized as an indefinite lived 
intangible asset until the completion or abandonment of the 
associated rd efforts iprd is reviewed for impairment using a 
“onestep” approach which compares the fair value of the iprd 
asset with its carrying amount an impairment loss is recognized 
to the extent that the carrying value exceeds the fair value of the 
iprd asset once the rd efforts are completed the useful life 
of the relevant assets will be determined and the iprd asset 
amortized over this useful economic life 
the following factors where applicable are considered in 
estimating the useful lives of other intangible assets
• expected use of the asset
• regulatory legal or contractual provisions including the 
regulatory approval and review process patent issues and 
actions by government agencies
• the effects of obsolescence changes in demand competing 
products and other economic factors including the stability of 
the market known technological advances development of 
competing drugs that are more effective clinically or 
economically 
• actions of competitors suppliers regulatory agencies or others 
that may eliminate current competitive advantages and
• historical experience of renewing or extending similar 
arrangements
when a number of factors apply to an intangible asset these 
factors are considered in combination when determining the 
appropriate useful life for the relevant asset
w nonmonetary transactions 
the company enters into certain nonmonetary transactions that 
involve either the granting of a license over the company’s 
patents or the disposal of an asset or group of assets in 
exchange for a non–monetary asset usually equity the 
company accounts for these transactions at fair value if the 
company is able to determine the fair value within reasonable 
limits to the extent the company concludes that it is unable to 
determine the fair value of a transaction that transaction is 
accounted for at the recorded amounts of the assets exchanged 
management is required to exercise its judgment in determining 
whether or not the fair value of the asset received or given up can 
be determined
x new accounting pronouncements adopted during the 
period
indefinitelived intangible assets other than goodwill  
impairment testing
in july 2012 the financial accounting standard board “fasb” 
issued guidance on the testing of indefinitelived intangible assets 
for impairment the guidance permits an entity to first assess 
qualitative factors to determine whether the existence of events or 
circumstances leads to a determination that it is more likely than 
not that the fair value of an indefinitelived intangible asset is less 
than its carrying amount if after assessing the totality of events 
or circumstances an entity determines it is not more likely than 
not that the fair value of an indefinitelived intangible asset is less 
than its carrying amount performing the impairment test is 
unnecessary the morelikelythannot threshold is defined as a 
likelihood of more than 50 percent an entity also has the option 
to bypass the qualitative assessment for any indefinitelived 
intangible asset in any period and proceed directly to performing 
the impairment test and may resume performing the qualitative 
assessment in any subsequent period the guidance has been 
adopted prospectively from january 1 2013 the adoption of the 
guidance did not impact the company’s consolidated financial 
position results of operations or cash flows
disclosure about offsetting assets and liabilities
in december 2011 the fasb issued guidance on disclosures 
about offsetting assets and liabilities in january 2013 the fasb 
amended the previous guidance to clarify the scope of guidance 
issued in december 2011 the amended guidance requires 
entities to disclose both gross and net information about 
derivatives including bifurcated embedded derivatives 
repurchase agreements and reverse repurchase agreements 
and securities borrowing and securities lending transactions that 
are either offset in accordance with fasb guidance on topics 
“balance sheet” and “derivatives and hedging” or subject to an 
enforceable master netting arrangement or similar agreement to 
enable users of financial statements to understand the effects or 
potential effects of those arrangements on its financial position 
the guidance has been adopted prospectively from january 1 
2013 the adoption of the guidance did not impact the 
company’s consolidated financial position results of operations 
or cash flows enhanced disclosure of balance sheet offsetting as 
required by this guidance is included in note 21
110 shire plc annual report 2013 wwwshirecom 2 summary of significant  
accounting policies continued 
amounts reclassified out of comprehensive income
in february 2013 the fasb issued guidance on reporting 
amounts reclassified out of accumulated other comprehensive 
income the guidance requires entities to provide information 
about the amount reclassified out of comprehensive income by 
component and presents either on the face of the financial 
statements or in the notes significant amounts reclassified out of 
other comprehensive income by the respective line items of net 
income but only if the amount reclassified is required under us 
gaap to be reclassified to net income in its entirety in the same 
reporting period for other amounts that are not required under 
us gaap to be reclassified in their entirety to net income an 
entity is required to crossreference to other disclosures required 
under us gaap that provide additional detail about those 
amounts the guidance has been adopted prospectively from 
january 1 2013 the adoption of the guidance did not impact the 
company’s consolidated financial position results of operations 
or cash flows
presentation of an unrecognized tax benefit
in july 2013 the fasb issued guidance on the financial statement 
presentation of an unrecognized tax benefit when a net operating 
loss carry forward a similar tax loss or a tax credit carry forward 
exists the guidance requires entities to present an unrecognized 
tax benefit or a portion of an unrecognized tax benefit in the 
financial statements as a reduction to a deferred tax asset for a 
net operating loss carry forward a similar tax loss or a tax credit 
carry forward except as follows to the extent a net operating 
loss carry forward a similar tax loss or a tax credit carry forward 
is not available at the reporting date under the tax law of the 
applicable jurisdiction to settle any additional income taxes that 
would result from the disallowance of a tax position or the tax law 
of the applicable jurisdiction does not require the entity to use 
and the entity does not intend to use the deferred tax asset for 
such purpose the unrecognized tax benefit should be presented 
in the financial statements as a liability and should not be 
combined with deferred tax assets the assessment of whether a 
deferred tax asset is available is based on the unrecognized tax 
benefit and deferred tax asset that exist at the reporting date and 
should be made presuming disallowance of the tax position at 
the reporting date the guidance will be effective for fiscal years 
and interim periods within those years beginning after december 
15 2013 with early adoption permitted the company has 
adopted this guidance in the period the adoption of the 
guidance did not materially impact the company’s consolidated 
financial position results of operations or cash flows
y statutory accounts
the consolidated financial statements as at december 31 2013 
and 2012 and for each of the two years in the period to 
december 31 2013 do not comprise statutory accounts within 
the meaning of section 434 of the uk companies act 2006 or 
article 104 of the companies jersey law 1991
statutory accounts of the company consisting of the solus 
accounts of shire plc for the year to december 31 2013 prepared 
under uk gaap and in compliance with jersey law will be 
delivered to the registrar of companies in jersey in 2014 the 
company further expects to file the consolidated accounts of the 
company for the year to december 31 2013 prepared in 
accordance with us gaap  in fulfillment of the company’s ukla 
annual reporting requirements with the ukla in 2014 
statutory accounts of the company consisting of the solus 
accounts of shire plc for the year to december 31 2012 prepared 
under uk gaap and in compliance with jersey law have been 
delivered to the registrar of companies for jersey the 
consolidated accounts of the company for the year ended 
december 31 2012 prepared in accordance with us gaap  in 
fulfillment of the company’s united kingdom listing authority 
“ukla” annual reporting requirements were filed with the ukla 
the auditor’s reports on these accounts were unqualified
3 critical accounting estimates
the preparation of consolidated financial statements in 
conformity with accounting principles generally accepted in the 
united states “us gaap” and sec regulations requires 
management to make estimates and assumptions that affect the 
reported amounts of assets and liabilities disclosure of 
contingent assets and liabilities at the date of the consolidated 
financial statements and reported amounts of revenues and 
expenses during the reporting period estimates and 
assumptions are primarily made in relation to the valuation of 
intangible assets sales deductions income taxes including 
provisions for uncertain tax positions and the realization of 
deferred tax assets provisions for litigation and legal 
proceedings contingent consideration receivable from product 
divestmentscontingent consideration payable in respect of 
business combinations and asset purchases and noncurrent 
assets or disposal groups classified as held for sale if actual 
results differ from the company’s estimates or to the extent 
these estimates are adjusted in future periods the company’s 
results of operations could either benefit from or be adversely 
affected by any such change in estimate
i valuation of intangible assets
in accordance with us gaap the company classifies intangible 
assets into three categories 1 finite lived intangible assets which 
are amortized over their estimated useful lives 2 intangible 
assets with indefinite lives which are not subject to amortization 
and 3 goodwill 
at december 31 2013 the carrying value of the company’s finite 
lived intangible assets was 1361 million 2012 2157 million 
the carrying value of the company’s indefinite lived intangible 
assets was 952 million 2012 231 million and the carrying 
value of the company’s goodwill was 625 million 2012 645 
million the company’s indefinite lived intangible assets relate 
solely to iprd assets acquired through business combinations
wwwshirecom annual report 2013 shire plc 111
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
3 critical accounting estimates continued
1 initial valuation of intangible assets acquired through 
business combinations
the company accounts for business combinations using the 
acquisition method of accounting which requires that the assets 
acquired and liabilities assumed be recorded at the date of 
acquisition at their respective fair values any excess of the fair 
value of consideration given and the fair value of any 
noncontrolling interest over the fair values of the identifiable 
assets and liabilities acquired is recorded as goodwill the 
determination of estimated fair values of acquired intangible 
assets as well as the useful economic life ascribed to finite lived 
intangible assets requires the use of significant judgement the 
use of different estimates and assumptions to those used by the 
company could result in a materially different valuation of 
acquired intangible assets which could have a material effect on 
the company’s results of operations 
initial valuation of finite lived intangible assets
at december 31 2013 the carrying value of the company’s finite 
lived intangible assets was 1361 million primarily representing 
the following products vyvanse 737 million replagal 
220 million firazyr 200 million and resolor 
121 million 
the fair values of all finite lived identifiable intangible assets for 
commercialized products and developed product technologies 
acquired through business combinations have been determined 
using an income approach on a projectbyproject basis using 
the multiperiod excess earnings method the multiperiod 
excess earnings method starts with a forecast of all expected 
future net cash flows which a market participant could have either 
generated or saved as a result of ownership of the intellectual 
property customer relationships product technologies and other 
intangible assets these cash flows are then adjusted to present 
value by applying a market participant discount rate that reflects 
the risk factors that a market participant would associate with the 
cash flows to the extent the underlying cash flows have not 
similarly been risk adjusted forecasting these future cash flows 
requires various assumptions to be made these valuations are 
based on information at the time of the acquisition of the 
identifiable intangible assets and the expectations and 
assumptions that i have been deemed reasonable by the 
company’s management and ii are based on information 
expectations and assumptions that would be available to and 
made by a market participant no assurance can be given 
however that the underlying assumptions or events associated 
with such valuations will occur as projected for these reasons 
among others actual cash flows may differ from these forecasts 
and dependent on the outcome of future events or 
circumstances impairment losses as outlined below may result 
the use of different estimates and assumptions to those used by 
the company could result in a materially different valuation of 
finite lived intangible assets however as the valuation process for 
intangible assets involves a number of interrelated assumptions 
the company does not consider it meaningful to quantify the 
sensitivity of the valuation of intangible assets to changes in any 
individual assumption 
initial valuation of indefinite lived intangible assets iprd
iprd represents the fair value assigned to incomplete 
technologies and development projects that the company has 
acquired through business combinations which completed after 
january 1 2009 which at the time the business combination 
closed had not reached technological feasibility or which had no 
alternative future use at december 31 2013 the carrying value of 
the company’s indefinite lived intangible assets iprd was 
952 million primarily representing the following pipeline 
programs or products lifitegrast shp606 for the treatment 
of dry eye disease 412 million rc7  for the treatment of deb 
177 million shp602 an iron chelating agent for the treatment 
of iron overload secondary to chronic transfusion 166 million 
and premiplex shp607 for the treatment of retinopathy of 
prematurity 153 million
the fair value of iprd assets is determined using the income 
approach on a projectbyproject basis using the multiperiod 
excess earnings method the fair value of the acquired iprd 
assets has been based on the present value of probability 
adjusted incremental cash flows which a market participant 
would expect the iprd projects to generate after the deduction 
of contributory asset charges for other assets employed in these 
projects this method incorporates an evaluation of the 
probability of success of each development project and the 
application of an appropriate market participant discount rate 
commensurate with the project’s stage of completion the nature 
of the product the scientific data associated with the technology 
the current patent situation and market competition 
the cash flows that will ultimately be generated by iprd 
projects are subject to major risks and uncertainties including 
whether the iprd projects will be completed in a timely manner 
if at all whether the necessary regulatory approvals will be 
obtained and how commercially successful the project will be 
subsequent to commercial launch the company is required to 
use estimates and assumptions in relation to these risks and 
uncertainties when valuing iprd projects the use of different 
estimates and assumptions to those used by the company could 
result in a materially different valuation of the related iprd 
however as the valuation process for iprd involves a number 
of interrelating assumptions the company does not consider it 
meaningful to quantify the sensitivity of the valuation of iprd to 
changes in any individual assumption 
the initial valuation of indefinite lived iprd is based on 
information that existed at the time of the acquisition of the 
relevant development project and utilizes expectations and 
assumptions that i have been deemed reasonable by the 
company’s management and ii are based on information 
expectations and assumptions that would be available to and 
made by a market participant however no assurance can be 
given that the underlying assumptions or estimates associated 
with the valuation of iprd will occur as projected if iprd 
projects fail during development are abandoned or do not 
receive the relevant regulatory approvals the company may not 
realize the future cash flows that it has estimated nor recover the 
value of the rd investment made subsequent to acquisition of 
the project if such circumstances occur the company’s future 
operating results could be materially adversely impacted
112 shire plc annual report 2013 wwwshirecom 3 critical accounting estimates continued
2 subsequent measurement of intangible assets
finite lived intangible assets – estimation of amortization charges 
and impairment losses 
management’s estimate of the useful life of its finite lived intangible 
assets considers amongst other things the following factors
i  the expected use of the finite lived intangible asset by the 
company
ii any legal regulatory or contractual provisions that may limit 
or extend the useful life
iii the effects of demand and competition including the launch 
of generic products and 
iv other general economic andor industry specific factors such 
as the stability of the industry known technological 
advances legislative action that results in an uncertain or 
changing regulatory environment and expected changes in 
distribution channels
the company reviews the useful life of its intangible assets 
subject to amortization at each reporting period and revises its 
estimate of the useful life if warranted by events or circumstances 
any future changes to the useful life of the company’s finite lived 
intangible assets could result in higher or lower amortization 
charges in future periods which could materially affect the 
company’s results from operations
the company reviews its finite lived intangible assets for 
impairment using a “twostep” approach whenever events or 
circumstances suggest that the carrying value of its finite lived 
intangible assets may not be recoverable under step one if the 
undiscounted cash flows resulting from the use and ultimate 
disposition of the finite lived intangible asset based on entity 
specific assumptions are less than its carrying value the 
intangible asset is considered not to be recoverable the 
impairment loss is determined under step two as the amount by 
which the carrying value of the intangible asset exceeds its fair 
value based on market participant assumptions 
events or circumstances that could suggest that the company’s 
finite lived intangible assets may not be recoverable and which 
would lead to an evaluation of the recoverability of the relevant 
asset include but are not limited to the following
i changes to a product’s commercialization strategy
ii the loss of patent protection regulatory exclusivity or 
challenge or circumvention by competitors of the company’s 
regulatory exclusivity patents
iii the development and marketing of competitive products 
including generic entrants into the marketplace
iv changes to the product labels or other regulatory 
intervention
v sustained government pressure on prices and specifically 
competitive pricing 
vi the occurrence of significant adverse events in respect to the 
company’s products
vii a significant deterioration in a product’s operating 
performance compared to expectations and
viii an expectation that the intangible asset will be divested 
before the end of its previously estimated useful life
the occurrence of any such events or circumstances may result 
in the company reducing the estimated future net cash flows to 
be generated by and the fair value of its finite lived intangible 
assets and therefore give rise to an impairment loss 
as a result of divestment of dermagraft to organogenesis 
the company has reclassified the dermagraft intangible asset 
and other assets subject to disposal as assets held for sale and 
recorded an impairment charge of 6114 million measured at fair 
value less costs to sell in the year to december 31 2013 in the 
year to december 31 2012 the company recognized impairment 
losses of 1267 million to writedown its resolor finite lived 
intangible assets to their fair value 
dependent on future events or circumstances the company’s 
operating results could be materially and adversely affected by 
future impairment losses relating to its finite lived intangible 
assets
indefinite lived intangible assets iprd – estimation  
of impairment losses
the company reviews its indefinite lived intangible assets which 
currently only relate to iprd assets for impairment annually or 
more frequently if events or changes in circumstances indicate 
that the asset might be impaired indefinite lived assets are 
reviewed for impairment by comparing the fair value of the 
indefinite lived asset based on market participant assumptions 
with its carrying amount an impairment loss is recognized to the 
extent that the carrying value exceeds the estimated fair value of 
the relevant indefinite lived intangible asset 
events or circumstances that could suggest that the company’s 
iprd assets may not be recoverable and which would lead to 
an evaluation of the relevant asset for impairment include those 
factors considered for finite lived intangible assets outlined 
above as well as any adverse changes to the technological or 
commercial viability of the iprd projects which could include 
abandonment of the iprd project or a decline in its estimated 
commercial potential the occurrence of any such events or 
circumstances could result in the company reducing the 
estimated future net cash flows to be generated by and the fair 
value of its indefinite lived intangible assets and therefore give rise 
to an impairment loss
after the identification of any such events or circumstances and 
the resultant impairment reviews the company recognized 
impairment losses of 199 million in the year to december 31 
2013 2012 712 million to writedown its resolor iprd 
assets to their fair value see note 13 “other intangible assets 
net” to the consolidated financial statements set forth in this 
annual report for details dependent on future events or 
circumstances the company’s operating results could be 
materially and adversely affected by future impairment losses 
relating to its indefinite lived intangible assets
wwwshirecom annual report 2013 shire plc 113
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
3 critical accounting estimates continued
goodwill – estimation of impairment losses
the company reviews goodwill for impairment at least annually 
or more frequently if events or circumstances indicate the 
carrying amount of goodwill may not be recoverable
the company reviews goodwill for impairment by firstly 
comparing the fair value of a reporting unit with its carrying value 
if the fair value of a reporting unit exceeds its carrying value then 
the goodwill is considered recoverable and no further testing is 
performed if the carrying value of a reporting unit is greater than 
its fair value then goodwill is considered impaired and a further 
test is performed to determine the amount by which the carrying 
value of a reporting unit’s goodwill exceeds its fair value with an 
impairment loss recognized in an amount equal to that excess
the company determines the fair value of a reporting unit and if 
required the fair value of its goodwill through a present value 
technique principally using the income approach the 
determination of fair value of a reporting unit requires the use of 
significant judgment and assumptions which include amongst 
other things the estimation of future forecast cash flows and an 
appropriate discount rate used to determine the fair value
in the first quarter of 2013 the company identified circumstances 
which indicated that the carrying value of goodwill in the rm 
reporting unit may not be recoverable which triggered an 
impairment test in advance of the annual testing date the results 
of the company’s march 31 2013 impairment test showed that 
the carrying amount of the rm reporting unit exceeded its fair 
value and the implied value of the goodwill was nil as a result 
the company recorded an impairment charge of 1989 million 
related to the goodwill allocated to the rm reporting unit of which 
1918 million was subsequently presented within discontinued 
operations see note 12 “goodwill” to the consolidated financial 
statements set forth in this annual report for details
the company performed its annual goodwill impairment review 
at october 1 2013 which indicated that the company’s goodwill 
was recoverable and was not deemed to be at risk of failing the 
first step in testing for impairment 
ii sales deductions 
sales deductions consist primarily of statutory rebates to state 
medicaid and other government agencies medicare part d 
rebates contractual rebates with managed care organizations 
“mcos” product returns sales discounts including trade 
discounts distribution service fees wholesaler chargebacks and 
allowances for coupon and patient assistance programs these 
deductions are recorded as reductions to revenue in the same 
period as the related sales estimates of future obligations are 
derived from historical experience adjusted to reflect known 
changes in the factors that impact such reserves on the balance 
sheet the company records wholesaler chargebacks and trade 
discounts as a reserve against accounts receivable whereas all 
other sales deductions are recorded within current liabilities
the company has the following significant categories of sales 
deductions all of which involve estimates and judgments which 
the company considers to be critical accounting estimates and 
require the company to use information from external sources
medicaid and managed care rebates
statutory and any supplemental rebates to state medicaid 
agencies and contractual rebates to mcos under managed care 
programs are based on statutory or negotiated discounts to the 
selling price medicaid rebates generally increase as a percentage 
of the selling price over the life of the product if prices increase 
faster than general inflation
as it can take up to six months for information to reach the 
company on actual usage of the company’s products in 
managed care and medicaid programs and on the total rebates 
to be reimbursed the company estimates the reserves required 
for amounts payable under these programs relating to sold 
products
the amount of these reserves is based on historical experience of 
rebates the timing of payments the level of reimbursement 
claims changes in prices both normal selling prices and 
statutory or negotiated prices changes in prescription demand 
patterns projected product returns and the levels of inventory in 
the distribution channel adjustments are made for known 
changes in these factors
shire’s estimates of the level of inventory in the distribution 
channel are derived from productbyproduct inventory data 
provided by wholesalers and results of independently 
commissioned retail inventory surveys 
revisions or clarification of guidelines from the cms related to 
state medicaid and other government program reimbursement 
practices with retroactive application can result in changes to 
management’s estimates of the rebates reported in prior periods
the accrual estimation process for medicaid and managed care 
rebates involves in each case a number of interrelating 
assumptions which vary for each combination of product and 
medicaid agency or mco accordingly it would not be 
meaningful to quantify the sensitivity to change for any individual 
assumption or uncertainty however shire does not believe that 
the effect of these uncertainties taken as a whole significantly 
impacts the company’s financial condition or results of 
operations 
aggregate accruals for medicaid and mco rebates at december 
31 2013 and 2012 were 807 2 million and 6405 million or 17 
and 15 respectively of net product sales historically actual 
rebates have not varied significantly from the reserves provided
product returns
the company typically accepts customer product returns in the 
following circumstances a expiration of shelf life 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 up to one year after 
expiration date of the relevant product and the returned product 
is destroyed 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 
114 shire plc annual report 2013 wwwshirecom 3 critical accounting estimates continued
the company estimates the proportion of recorded revenue that 
will result in a return by considering relevant factors including
i past product returns activity
ii the duration of time taken for products to be returned
iii the estimated level of inventory in the distribution channel
iv product recalls and discontinuances
v the shelf life of products
vi the launch of new drugs or new formulations and
vii the loss of patent protection or new competition
the company’s estimates of the level of inventory in the 
distribution channel are based on productbyproduct inventory 
data provided by wholesalers and results of independently 
commissioned third party retail inventory surveys
returns reserves for new products and for those products with 
generic competition generally require a higher level of estimation 
than those for established products without generic competition 
for shipments made to support the commercial launch of a new 
product which can include guaranteed sales the company’s 
policy is to defer recognition of the sales revenue until there is 
evidence of endpatient acceptance of the new product primarily 
through thirdparty prescription data for shipments after launch 
under standard terms ie not guaranteed sales the company’s 
initial estimates of sales return accruals are primarily based on the 
historical sales returns experience of similar products shortly after 
launch once sufficient historical data on actual returns of the 
product are available the returns provision is based on this data 
and any other relevant factors as noted above
the company estimates returns reserves for products with 
generic competition based on historical sales the estimated level 
of inventory in the distribution channel product utilization and 
rebate data which are modified through the use of management 
judgment to take into account many factors including but not 
limited to current market dynamics changes in contract terms 
changes in sales trends and product pricing 
the accrual estimation process for product returns involves in 
each case a number of interrelating assumptions which vary for 
each combination of product and customer accordingly it would 
not be meaningful to quantify the sensitivity to change for any 
individual assumption or uncertainty however shire does not 
believe that the effect of uncertainties as a whole significantly 
impacts the company’s financial condition or results of 
operations 
at december 31 2013 and 2012 provisions for product returns 
were 988 million and 905 million or 2 and 2 respectively 
of net product sales historically actual returns have not varied 
significantly from the reserves provided
iii income taxes
in accounting for uncertainty in income taxes management is 
required to develop estimates as to whether a tax benefit should 
be recognized in the consolidated financial statements based on 
whether it is more likely than not that the technical merits of the 
position will be sustained based on audit by the tax authorities 
the measurement of the tax benefit recognized in the 
consolidated financial statements is based upon the largest 
amount of tax benefit that in management’s judgment is greater 
than 50 likely to be realized based on a cumulative probability 
assessment of the possible outcomes in accounting for income 
tax uncertainties management is required to make judgments in 
the determination of the unit of account the evaluation of the 
facts circumstances and information in respect of the tax 
position taken together with the estimates of amounts that the 
company may be required to pay in ultimate settlement with the 
tax authority
the company operates in numerous countries where its income 
tax returns are subject to audit and adjustment by local tax 
authorities as the company operates globally the nature of the 
uncertain tax positions is often very complex and subject to 
change and the amounts at issue can be substantial the 
company develops its cumulative probability assessment to 
measure uncertain tax positions using internal expertise 
experience and judgment together with assistance from 
professional advisors original estimates are refined as additional 
information becomes known for example in the year to 
december 31 2013 the company recognized additional 
provisions for uncertain tax positions of 913 million in relation to 
ongoing compliance management for current and prior years 
any outcome upon settlement that differs from the recorded 
provision for uncertain tax positions may result in a materially 
higher or lower tax expense in future periods which could 
significantly impact the company’s results of operations or 
financial condition however the company does not believe it is 
possible to reasonably estimate the potential impact of any such 
change in assumptions estimates or judgments and the resultant 
change if any in the company’s provision for uncertain tax 
positions as any such change is dependent on factors such as 
future changes in tax law or administrative practice the amount 
and nature of additional taxes which may be asserted by the 
taxation authorities and the willingness of the relevant tax 
authorities to negotiate a settlement for any such position
at december 31 2013 the company recognized a liability of 
3552 million for total unrecognized tax benefits 2012 2787 
million and had accrued 1122 million 2012 1196 million for 
the payment of interest and penalties the company is required 
in certain tax jurisdictions to make advance deposits to tax 
authorities on receipt of a tax assessment these payments are 
either offset against the income tax liability or establish an income 
tax receivable but do not reduce the provision for unrecognized 
tax benefits
wwwshirecom annual report 2013 shire plc 115
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
3 critical accounting estimates continued
the company has significant deferred tax assets due to various 
tax attributes including net operating losses “nols” and tax 
credits from research and development and investment tax 
credits principally in the republic of ireland the us belgium 
germany and the uk at december 31 2013 the company had 
gross deferred tax assets of 822 million 2012 764 million 
against which the company had recorded valuation allowances 
of 282 million 2012 269 million and deferred tax liabilities of 
644 million 2012 740 million 
the realization of these assets is not assured and is dependent 
on various factors management is required to exercise judgment 
in determining whether it is more likely than not that it would 
realize these deferred tax assets in assessing the need for a 
valuation allowance management weighs all available positive 
and negative evidence including cumulative losses in recent 
years expectations of future taxable income carry forward and 
carry back potential under relevant tax law expiration period of 
tax attributes taxable temporary differences and prudent and 
feasible taxplanning strategies a valuation allowance is 
established where there is an expectation that on the balance of 
probabilities management considers it is more likely than not that 
the relevant deferred tax assets will not be realized if actual 
events differ from management’s estimates or to the extent that 
these estimates are adjusted in the future any changes to the 
valuation allowance could significantly impact the company’s 
financial condition and results of operations
iv litigation and legal proceedings
the company has a number of lawsuits pending the company’s 
principal pending legal and other proceedings are disclosed in 
note 19 to the consolidated financial statements set forth in this 
annual report 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 substantially before the ultimate loss is known 
and are therefore refined each accounting period as additional 
information becomes known in instances where the company is 
unable to develop a reasonable estimate of loss no loss 
contingency provision is recorded at that time as information 
becomes known a loss contingency provision is recorded when a 
reasonable estimate can be made these estimates are reviewed 
quarterly and changed when expectations are revised an 
outcome that deviates from the company’s estimate may result in 
an additional expense or credit in a future accounting period at 
december 31 2013 provisions for litigation losses insurance 
claims and other disputes totaled 727 million december 31 
2012 1305 million
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 the estimation of the likelihood 
amount and range of any loss arising from these proceedings 
requires significant judgment any revisions in the company’s 
estimates or outcomes upon settlement that deviate from the 
company’s best estimate may result in an additional expense or 
credit in a future accounting period which could materially 
impact the company’s financial condition or results of operations 
contingent consideration receivable from product divestments
at december 31 2013 the company has contingent 
consideration assets of 361 million 2012 383 million all of 
which relate to the divestment of daytrana to noven in october 
2010 
consideration receivable by the company on the divestment of 
product rights typically includes upfront receipts andor 
milestones and royalties which are contingent on the outcome of 
future events with such milestones and royalties being for 
example based upon the future sales performance of the 
divested product contingent consideration occasionally 
represents a significant proportion of the economic value 
receivable by the company for a divested product in these 
situations the company initially recognizes this contingent 
consideration as an asset at its divestment date fair value with 
remeasurement of this asset to its then current fair value at 
subsequent balance sheet dates
the company estimates the fair value of contingent consideration 
receivable using the income approach based on a discounted 
cash flow method this discounted cash flow approach uses 
significant unobservable level 3 inputs as defined in us gaap 
including the probability weightings applied to different sales 
scenarios and related forecast future royalties receivable under 
scenarios developed by the company and the discount rate to 
be applied in calculating the present value of these forecast future 
cash flows significant judgment is employed by the company in 
developing these estimates and assumptions if actual events 
differ from management’s estimates or to the extent that these 
estimates are adjusted in the future the company’s financial 
condition and results of operations could be affected in the 
period of any such change of estimate 
v contingent consideration payable
the fair value of the company’s contingent consideration payable 
at december 31 2013 was 4059 million december 31 2012 
1364 million
116 shire plc annual report 2013 wwwshirecom 3 critical accounting estimates continued
contingent consideration payable represents i future milestones 
the company may be required to pay in conjunction with various 
business combinations and ii future royalties payable as a result 
of certain business combinations and licenses the amounts 
ultimately payable by shire are dependent upon i the successful 
achievement of the relevant milestones and ii future net sales of 
the relevant products over the life of the royalty term respectively 
the company remeasures its contingent consideration payable 
to fair value at each balance sheet date gains or losses arising 
on changes to the fair value of contingent consideration payable 
are recorded within integration and acquisition costs in the 
company’s consolidated income statement 
the company estimates the fair value of contingent consideration 
payable using the income approach based on a discounted cash 
flow method the discounted cash flow method uses significant 
unobservable level 3 inputs as defined under us gaap 
including the probability of and period in which the relevant 
milestone event is expected to be achieved the amount of 
royalties that will be payable based on forecast net sales of the 
relevant products and the discount rates to be applied in 
calculating the present values of the relevant milestone or royalty 
significant judgment is employed by the company in developing 
these estimates and assumptions if actual events differ from 
management’s estimates or to the extent that these estimates 
are adjusted in the future the company’s financial condition and 
results of operations could be materially affected in the period of 
any such change of estimate
vi assets held for sale
assets held for sale comprise noncurrent assets or disposal 
groups together with any liabilities the carrying amounts of 
which will be realized principally through a sale transaction 
expected to conclude within the next twelve months rather than 
through continued use 
at december 31 2013 the company has presented 316 million 
2012 nil of net assets as assets held for sale in the 
consolidated balance sheet the assets and liabilities within this 
disposal group all relate to the disposal of the dermagraft 
asset group which was announced on january 16 2014
at the time of their classification as “held for sale” such assets 
are collectively measured at the lower of their carrying amount 
and fair value less costs to sell and depreciation or amortization 
ceases an impairment charge of 6369 million was recorded in 
the fourth quarter of 2013 reflecting the adjustment of the 
dermagraft disposal group’s carrying amount to its fair value 
less cost to sell
significant judgment is employed by the company in assessing 
at what point all the held for sale presentation conditions are met 
for the disposal group whether it is necessary to allocate 
goodwill to the disposal group and estimating both the fair value 
of the disposal group and the incremental costs to transact a sale 
of the disposal group if actual events differ from management’s 
estimates or to the extent that estimates of selling price or costs 
to sell are adjusted in the future the company’s financial 
condition and results of operations could be affected in the 
period of any such change of estimate
4 business combinations
acquisition of viropharma inc “viropharma”
on november 11 2013 the company signed a definitive 
agreement to acquire all of the outstanding share capital of 
viropharma for 50 per share in cash or approximately 4200 
million the transaction was completed on january 24 2014 at 
which time viropharma became a whollyowned subsidiary 
viropharma is a high growth rare disease biopharmaceutical 
company whose commercial product cinryze c1 esterase 
inhibitor human is a leading brand for the prophylactic treatment 
of hereditary angioedema “hae” 
the acquisition of viropharma will be accounted for as a business 
combination using the acquisition method the assets acquired 
and the liabilities assumed from viropharma will be recorded at 
the date of acquisition at their fair value the company’s 
consolidated financial statements will reflect these fair values at 
and the results of viropharma will be included in the company’s 
consolidated statement of income from january 24 2014 as the 
initial accounting for the business combination has not yet been 
completed further disclosure relating to this acquisition will be 
included in the company’s form 10q for the three months 
ended march 31 2014
in the year to december 31 2013 the company expensed costs 
of 128 million 2012 nil relating to the acquisition of 
viropharma which have been recorded within integration and 
acquisition costs in the company’s consolidated income 
statement
acquisition of sarcode bioscience inc “sarcode”
on april 17  2013 shire completed the acquisition of 100 of the 
outstanding share capital of sarcode the acquisition date fair 
value of consideration totaled 368 million comprising cash 
consideration paid on closing of 151 million and the acquisition 
date fair value of contingent consideration payable of 217 million 
following topline phase 3 study results in december 2013 the 
maximum amount of contingent cash consideration which may 
now be payable by shire in future periods is 225 million 
dependent upon achievement of certain net sales milestones 
this acquisition brings the global rights of a new phase 3 
compound lifitegrast currently under development for the 
treatment of dry eye disease into shire’s portfolio topline 
results from opus2 a phase 3 efficacy and safety study of 50 
lifitegrast ophthalmic solution were announced on 6 december 
2013 shire intends to investigate the full data from opus2 and 
is planning further interactions with the fda in the first half of 
2014 in order to advance this program 
the acquisition of sarcode has been accounted as a business 
combination using the acquisition method the assets and 
liabilities assumed from sarcode have been recorded at their 
fair values at the date of acquisition being april 17  2013 the 
company’s consolidated financial statements and results of 
operations include the results of sarcode from april 17  2013 
in the year to december 31 2013 the company’s consolidated 
income statement includes pretax losses of 260 million in 
relation to the post acquisition results of sarcode
wwwshirecom annual report 2013 shire plc 117
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
4 business combinations continued
the purchase price has been allocated to acquired in process 
research and development “iprd” in respect of lifitegrast 
412 million net current liabilities assumed 82 million net 
noncurrent liabilities assumed including deferred tax liabilities 
1224 million and goodwill 866 million this acquisition 
resulted in goodwill of 866 million which is not deductible for 
tax purposes goodwill includes the value of the assembled 
workforce and the related scientific expertise in ophthalmology 
which allows for potential expansion into a new therapeutic area 
in the year to december 31 2013 the company recorded a net 
credit of 1707 million 2012 nil within integration and 
acquisition costs relating to the acquisition of sarcode this 
amount principally comprises a credit of 1760 million on 
remeasuring the fair value of the contingent consideration 
payable following opus2 trial results in addition acquisition and 
integration costs related to sarcode amounted to 153 million 
acquisition of premacure ab “premacure”
on march 8 2013 the company completed the acquisition of 
100 of the outstanding share capital of premacure the 
acquisition date fair value of the consideration totaled 1402 
million comprising cash consideration paid on closing of 306 
million and the fair value of contingent consideration payable of 
1096 million the maximum amount of contingent cash 
consideration which may be payable by the company in future 
periods dependent upon the successful completion of certain 
development and commercial milestones is 169 million the 
company will also pay royalties on relevant net sales
premacure is developing a protein replacement therapy 
“premiplex” currently in phase 2 development for the 
prevention of retinopathy of prematurity “rop” rop is a rare 
and potentially blinding eye disorder that primarily affects 
premature infants and is one of the most common causes of 
visual loss in childhood together the acquisitions of sarcode 
and premacure build the company’s presence in the 
ophthalmology therapeutic area
the acquisition of premacure has been accounted for as a 
business combination using the acquisition method the assets 
and the liabilities assumed from premacure have been recorded 
at their fair values at the date of acquisition being march 8 2013 
the company’s consolidated financial statements and results of 
operations include the results of premacure from march 8 2013
the purchase price has been allocated to acquired iprd in 
respect of premiplex 1518 million net current liabilities 
assumed 117 million net noncurrent liabilities assumed 
including deferred tax liabilities 295 million and goodwill 296 
million this acquisition resulted in goodwill of 296 million 
which is not deductible for tax purposes 
in the year to december 31 2013 the company expensed costs 
of 95 million 2012 nil relating to the acquisition of premacure 
including charges related to the change in fair value of contingent 
consideration payable which have been recorded within 
integration and acquisition costs in the company’s consolidated 
income statement
acquisition of lotus tissue repair inc “lotus”
on february 12 2013 the company completed the acquisition of 
100 of the outstanding share capital of lotus the acquisition 
date fair value of consideration totaled 1742 million comprising 
cash consideration paid on closing of 494 million and the fair 
value of contingent consideration payable of 1248 million the 
maximum amount of contingent cash consideration which may 
be payable by the company in future periods is 275 million the 
amount of contingent cash consideration ultimately payable by 
the company is dependent upon achievement of certain 
preclinical and clinical development milestones
lotus is developing a proprietary recombinant form of human 
collagen type vii “rc7” as the first and only intravenous protein 
replacement therapy currently being investigated for the 
treatment of dystrophic epidermolysis bullosa “deb” deb is a 
devastating orphan disease for which there is no currently 
approved treatment option other than palliative care the 
acquisition adds to the company’s pipeline a late stage pre
clinical product for the treatment of deb with global rights 
the acquisition of lotus has been accounted for as a business 
combination using the acquisition method the assets and the 
liabilities assumed from lotus have been recorded at their fair 
values at the date of acquisition being february 12 2013 the 
company’s consolidated financial statements and results of 
operations include the results of lotus from february 12 2013 
the purchase price has been allocated to acquired iprd in 
respect of rc7 1767 million net current assets assumed 68 
million net noncurrent liabilities assumed including deferred tax 
liabilities 634 million and goodwill 541 million this 
acquisition resulted in goodwill of 541 million which is not 
deductible for tax purposes 
in the year to december 31 2013 the company expensed costs 
of 23 million 2012 05 million relating to the acquisition of 
lotus which have been recorded within integration and 
acquisition costs in the company’s consolidated income 
statement 
acquisition of ferrokin biosciences inc “ferrokin”
on april 2 2012 the company completed the acquisition of 
100 of the outstanding share capital of ferrokin the 
acquisitiondate fair value of consideration totalled 1593 million 
comprising cash consideration paid on closing of 945 million 
and the fair value of contingent consideration payable of 648 
million the maximum amount of contingent cash consideration 
which may be payable by the company in future periods is 
2250 million the amount of contingent cash consideration 
ultimately payable by the company is dependent upon the 
achievement of certain clinical development regulatory and net 
sales milestones
118 shire plc annual report 2013 wwwshirecom 4 business combinations continued
the acquisition of ferrokin adds global rights to a phase 2 
product shp602 formerly referred to as fbs0701 to the 
company’s pipeline shp602 is intended to serve a chronic 
patient need for treatment of iron overload following numerous 
blood transfusions together with the company’s collaboration 
with sangamo biosciences inc “sangamo” this acquisition is  
a strategic step in building the company’s hematology business 
which already includes xagrid and a growing development 
pipeline 
the acquisition of ferrokin has been accounted for as a business 
combination using the acquisition method the assets acquired 
and the liabilities assumed from ferrokin have been recorded at 
their fair values at the date of acquisition being april 2 2012 the 
company’s consolidated financial statements and results of 
operations include the results of ferrokin from april 2 2012 in 
the year to december 31 2012 the company included pretax 
losses of 191 million for ferrokin within its consolidated 
statement of income
the purchase price has been allocated to acquired inprocess 
research and development “iprd” in respect of shp602 
1660 million net current liabilities assumed 66 million net 
noncurrent liabilities assumed including deferred tax liabilities 
462 million and goodwill 461 million goodwill arising of 
461 million is not deductible for tax purposes 
in the year to december 31 2013 the company expensed costs 
of 104 million 2012 121 million relating to the ferrokin 
acquisition which have been recorded within integration and 
acquisition costs in the company’s consolidated statement of 
income
acquisition of certain assets  liabilities of pervasis 
therapeutics inc “pervasis”
on april 19 2012 the company acquired substantially all the 
assets and certain liabilities of pervasis the acquisition date fair 
value of the consideration totaled 261 million comprising cash 
consideration paid on closing of 25 million and the fair value of 
contingent consideration payable of 236 million the maximum 
amount of contingent cash consideration which may be payable 
by the company in future periods is up to 1695 million the 
amount of contingent cash consideration ultimately payable by 
the company is dependent upon achievement of certain clinical 
development regulatory and net sales milestones the 
acquisition adds shp613 formerly vascugel to the 
company’s regenerative medicine business shp613 is currently 
in phase 2 development for acute vascular repair focused on 
improving hemodialysis access for patients with endstage renal 
disease
the acquisition has been accounted for as a business 
combination using the acquisition method the assets acquired 
and the liabilities assumed from pervasis have been recorded at 
their fair values at the date of acquisition being april 19 2012 
the company’s consolidated financial statements and results of 
operations include the results of the assets acquired and the 
liabilities assumed from pervasis from april 19 2012 the 
purchase price has been allocated to acquired iprd principally 
for vascugel 243 million current liabilities assumed 02 
million and goodwill 20 million goodwill arising of 20 million 
is not deductible for tax purposes
acquisition of advanced biohealing inc “abh”
on june 28 2011 the company completed its acquisition of 
100 of the outstanding shares and other equity instruments of 
abh the fair value of cash consideration paid by the company 
during 2011 was 7396 million 
the acquisition of abh added the dermagraft product a 
bioengineered skin substitute to the company’s portfolio on 
january 16 2014 the company sold the dermagraft 
business to organogenesis
the acquisition of abh was accounted for as a business 
combination using the acquisition method the assets acquired 
and the liabilities assumed from abh have been recorded at their 
fair values at the date of acquisition being june 28 2011 the 
determination of final fair values was completed on june 28 
2012 the company’s consolidated financial statements and 
results of operations include the results of abh from june 28 
2011 the amount of abh’s revenues and pretax losses included 
in the company’s consolidated statement of income for the year 
ended december 31 2011 were 1053 million and 153 million 
after intangible asset amortization of 200 million respectively
wwwshirecom annual report 2013 shire plc 119
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
4 business combinations continued
the company’s allocation of the purchase price to the assets acquired and liabilities assumed is outlined below
 
fair value  
’m 
assets
current assets 
cash and cash equivalents 146 
accounts receivable 301 
inventories 307 
deferred tax assets 511 
other current assets 79 
total current assets 1344 
noncurrent assets 
property plant and equipment 166 
goodwill 1970 
other intangible assets 
 – dermagraft product technology 7100 
 – other intangible assets 15 
other noncurrent assets 02 
total assets 10597 
liabilities 
current liabilities 
accounts payable and other current liabilities 524 
noncurrent liabilities 
long term debt less current portion 91 
deferred tax liabilities 2585 
other noncurrent liabilities 01 
total liabilities 3201 
fair value of identifiable assets acquired and liabilities assumed 7396 
consideration
cash consideration paid 7396 
supplemental disclosure of pro forma information
the unaudited pro forma financial information to present the combined results of the operations of shire sarcode premacure and 
lotus are not provided as the impacts of these acquisitions were not material to the company’s results of continuing operations for 
any period presented 
5 divestment of product rights
on october 1 2010 the company completed the divestment of daytrana to noven noven developed and manufactures 
daytrana and the company licensed daytrana from noven in 2003 no consideration was received at the time of divestment 
however consideration is receivable from noven dependent on daytrana’s performance in the period subsequent to divestment 
on divestment the company recorded the fair value of contingent consideration receivable from noven within current and non
current assets during the year to december 31 2013 the company recognized a gain of 159 million 2012 gain of 181 million 
due to changes in the fair value of this contingent consideration at december 31 2013 the company has recorded a receivable 
based on the fair value of future contingent consideration totaling 361 million 2012 392 million split between current assets 
96 million 2012 116 million and noncurrent assets 265 million 2012 27 6 million
120 shire plc annual report 2013 wwwshirecom 6 reorganization costs
turnhout belgium site closure
on january 23 2013 the company 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 the company 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 the 
closure of the turnhout site was completed during 2013 in the year to december 31 2013 the company incurred reorganization 
costs totaling 236 million relating to employee involuntary termination benefits and other reorganization costs 
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 
on november 7  2013 the company announced that as part of the one shire reorganization the company had undertaken a 
review of all of shire’s pipeline programs to identify those projects that fit with shire’s new strategic direction and have an acceptable 
likelihood of success shire’s preclinical investments will now be primarily focused on rare diseases meaning that the majority of 
other preclinical projects will not continue several clinical programs have also been discontinued the impact of the prioritization 
and rationalization of the company’s development portfolio means many of the rd programs currently run from basingstoke 
uk will cease taken together with the overall streamlining of the rd organization this has resulted in a significant number of rd 
roles in basingstoke being eliminated and some positions being relocated a small number of functional roles that support rd in 
basingstoke have also been affected 
in addition the company also announced plans to relocate its international commercial hub from nyon switzerland to zug 
switzerland all nyonbased employees have been impacted by the one shire transition and the proposed move to zug shire is 
planning for the new zug office to be ready for occupancy in summer 2014 and will phase out the nyon office over a reasonable 
period of time to enable employees and their families to manage their relocations
in the year to december 31 2013 the company incurred reorganization costs totaling 646 million relating to employee involuntary 
termination benefits and other reorganization costs the one shire reorganization is expected to be substantially completed by the 
end of 2014 currently the company estimates that further costs in respect of the one shire reorganization of approximately 
150 million will be expensed as incurred during 2014
the liability for reorganization costs arising on the closure of company’s site in turnhout belgium and the one shire business 
reorganization at december 31 2013 is as follows
 
opening 
liability at 
january 1 
2013
 ’m
amount 
charged to 
reorganization
’m
paidutilized
’m
closing 
liability at 
december 31 
2013 
’m
involuntary termination benefits – 447 294 153 
other reorganization costs – 435 340 95 
– 882 634 248 
at december 31 2013 the closing reorganization cost liability was recorded within accounts payable and accrued expenses 
248 million
7  accounts receivable net 
accounts receivable at december 31 2013 of 9612 million december 31 2012 8242 million are stated net of a provision for 
discounts and doubtful accounts of 47 9 million december 31 2012 417 million 
provision for discounts and doubtful accounts
  
2013  
’m
2012  
’m 
as at january 1 417 311 
provision charged to operations 3068 2833 
provision utilization 3006 2727
as at december 31 479 417 
at december 31 2013 accounts receivable included 37 8 million december 31 2012 385 million related to royalty income
wwwshirecom annual report 2013 shire plc 121
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
8 inventories
inventories are stated at the lower of cost or market and comprise
  
december 31 
2013  
’m
december 31 
2012  
’m
finished goods 1566 1244 
workinprogress 2405 2206 
raw materials 582 919 
4553 4369 
9 results of discontinued operations and assets held for sale 
on january 16 2014 the company entered into an asset purchase agreement the “asset purchase agreement” with 
organogenesis inc the “purchaser” or “organogenesis” pursuant to which on january 16 2014 the company sold and transferred 
to the purchaser certain of the assets the “transferred assets” relating to the manufacturing marketing sale and distribution of 
dermagraft the “business” and the purchaser assumed certain of the liabilities relating to the business the company will 
receive no upfront payment from the purchaser but is entitled to receive total milestone payments of up to 300 million in cash if the 
purchaser meets certain annual net sales targets during the five consecutive calendar years ending with the calendar year ending 
december 31 2018 
the transferred assets include intellectual property relating to dermagraft including patents trademarks and knowhow 
regulatory filings and registrations relating to dermagraft 6114 million certain manufacturing plant equipment and materials 
relating to the business 291 million and dermagraft product inventory 162 million and accounts receivable 118 million 
the company is generally retaining liabilities incurred prior to the date of the asset purchase agreement relating to the 
dermagraft business including the previously disclosed investigation by the us department of justice relating to the sales and 
marketing practices of advanced biohealing inc “abh”
the transferred assets have been measured at their fair value less costs to sell amounting to 316 million and are presented within 
“assets heldforsale” in the consolidated balance sheet as at december 31 2013 the fair value of these assets was determined 
using the income approach which used significant unobservable level 3 inputs see note 22 for further details
on october 22 2013 the company announced that it had decided to discontinue the construction of its new manufacturing facility in 
san diego the company is currently assessing disposal options for this facility in the year to december 31 2013 the company 
recorded charges of 996 million comprising charges to write down the carrying value of the assets related to this manufacturing 
facility accruals for noncancellable contractual costs in relation to the construction and a provision for the onerous land lease these 
costs have been presented within discontinued operations in the consolidated income statement
the operating results associated with the dermagraft business including the costs of discontinuing the second manufacturing 
facility have been classified as discontinued operations in the consolidated statements of income for all periods presented 
122 shire plc annual report 2013 wwwshirecom 9 results of discontinued operations and assets held for sale continued
the components of discontinued operations which relate to the dermagraft business are as follows
  
2013  
’m
2012  
’m 
revenues
product revenues 898 1538 
loss from discontinued operations before income taxes 10809 964
income taxes 3264 361 
loss from discontinued operations net of taxes 7545 603
the loss from discontinued operations before income taxes in 2013 includes 1918 million being the proportion of the rm reporting 
unit goodwill impairment charge recorded in the first quarter of 2013 that relates to the dermagraft business 6369 million 
being the impairment charge recorded upon remeasurement of the divested assets to their fair value less costs to sell in the fourth 
quarter of 2013 and 996 million being amounts previously recorded to reorganization costs in relation to the dermagraft 
business
10 prepaid expenses and other current assets
 
december 31 
2013 
’m
december 31 
2012 
’m
prepaid expenses 294 317 
income tax receivable 1774 1306 
value added taxes receivable 145 209 
other current assets 417 386 
 2630 2218 
1 1 property plant and equipment net
 
december 31 
2013 
’m
december 31 
2012 
’m
land and buildings 6950 7012 
office furniture fittings and equipment 4670 3838 
warehouse laboratory and manufacturing equipment 2762 2872 
assets under construction 456 938 
 14838 14660 
less accumulated depreciation 5920 5102
 8918 9558 
depreciation expense for the years to december 31 2013 and 2012 was 127 6 million and 1090 million respectively
wwwshirecom annual report 2013 shire plc 123
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
12 goodwill
 
december 31 
2013 
’m
december 31 
2012 
’m
goodwill arising on businesses acquired 6246 6445 
in the year to december 31 2013 the company completed the acquisitions of sarcode premacure and lotus which resulted in 
goodwill of 866 million 296 million and 541 million respectively see note 4 for details
as a result of the realignment of the business into a simplified one shire organization the company now comprises one operating 
and one reportable segment see note 25 for further details 
 
2013 
’m
2012 
’m
as at january 1 6445 5926 
acquisitions 1703 481 
goodwill impairment charge related to continuing operations 71 – 
goodwill impairment charge related to dermagraft business and transferred to discontinued operations 1918 – 
foreign currency translation 87 38 
as at december 31 6246 6445 
goodwill is tested for impairment at least annually as at october 1 each year this assessment is also performed whenever there is a 
change in circumstances that indicates the carrying value of these assets may not be recoverable 
in the first quarter of 2013 the company identified circumstances which indicated that the carrying value of goodwill in the company’s 
former rm reporting unit may not be recoverable which triggered an impairment test in advance of the annual testing date
those circumstances included the results of an independent market research study of the dermagraft sales potential 
commissioned by the company which was finalized late in the first quarter of 2013 in addition the recently completed restructuring 
of the rm sales and marketing organization and the implementation of a new commercial model had a more pronounced impact 
than previously expected as a result of those and other factors forecast future sales were lower than at the time of acquisition
the results of the company’s march 31 2013 impairment test showed that the carrying amount of the former rm reporting unit 
exceeded its fair value and the implied value of the goodwill was nil as a result the company recorded an impairment charge of 
1989 million related to the goodwill allocated to the former rm reporting unit the rm goodwill impairment charge is not deductible 
for tax purposes accumulated goodwill impairment as at december 31 2013 was 1989 million december 31 2012 nil
the company determined the estimated fair value of the rm reporting unit using discounted cash flow analyses which used 
significant unobservable level 3 inputs these unobservable inputs included among other things expected cash flows for the 
period from march 31 2013 to december 31 2023 and the associated discount rate of 151 which was derived from 
management’s best estimate of the aftertax weighted average cost of capital for the rm reporting unit
discounted cash flow analyses are dependent upon a number of quantitative and qualitative factors including estimates of forecasted 
revenue profitability earnings before interest taxes depreciation and amortization and terminal values the discount rates applied in 
the discounted cash flow analyses also have an impact on the estimates of fair value as use of a higher rate will result in a lower 
estimate of fair value
following the divestment of dermagraft see note 9 the company has reclassified the goodwill and related accumulated 
impairment of 1918 million being the portion of the former rm reporting unit goodwill impairment charge that relates to the 
dermagraft business to discontinued operations
124 shire plc annual report 2013 wwwshirecom 13 other intangible assets net
 
december 31 
2013 
’m
december 31 
2012 
’m
amortized intangible assets  
intellectual property rights acquired for currently marketed products 25733 24620 
acquired product technology – 7100 
other intangible assets 461 445 
 26194 32165 
unamortized intangible assets 
intellectual property rights acquired for iprd 9515 2310 
 35709 34475 
less accumulated amortization 12583 10594
 23126 23881 
the change in the net book value of other intangible assets for the year to to december 31 2013 and 2012 is shown in the 
table below
other intangible assets
 
2013 
’m
2012 
’m
as at january 1 23881 24930 
acquisitions 7318 2816 
amortization charged 1520 1536
amortization charged on dermagraft product technology presented within discontinued 
operations in the consolidated income statement 394 405
impairment charges 199 1979
reclassification of dermagraft product technology to assets held for sale 6114 – 
foreign currency translation 154 55 
as at december 31 23126 23881 
in the year to december 31 2013 the company acquired intangible assets totaling 7318 million relating to intangible assets 
acquired with sarcode premacure and lotus see note 4 for further details
in the second quarter of 2013 the company reviewed certain intangible assets acquired through movetis nv “movetis” for 
impairment and recognized an impairment charge of 199 million 2012 197 9 million in the consolidated income statement to 
writedown these assets to their fair value the fair values of these assets were determined using the income approach which used 
significant unobservable level 3 inputs see note 22 for further details
following the divestment of dermagraft see note 9 the company has reclassified 61144 million of intangible assets related to 
the dermagraft product technology to assets held for sale
management estimates that the annual amortization charge in respect of intangible assets held at december 31 2013 will be 
approximately 127 million for each of the five years to december 31 2018 estimated amortization expense can be affected by 
various factors including future acquisitions disposals of product rights regulatory approval and subsequent amortization of acquired 
iprd projects foreign exchange movements and the technological advancement and regulatory approval of competitor products
wwwshirecom annual report 2013 shire plc 125
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
14 accounts payable and accrued expenses
 
december 31 
2013 
’m
december 31 
2012 
’m
trade accounts payable and accrued purchases 2026 2081 
accrued rebates – medicaid 5491 4556 
accrued rebates – managed care 2581 1849 
sales return reserve 988 905 
accrued bonuses 1309 1090 
accrued employee compensation and benefits payable 794 645 
rd accruals 696 735 
provisions for litigation losses and other claims 717 1182 
other accrued expenses 2282 1972 
 16884 15015 
15 other current liabilities
 
december 31 
2013 
’m
december 31 
2012 
’m
income taxes payable 690 784 
value added taxes 158 236 
contingent consideration payable 129 160 
other current liabilities 218 261 
 1195 1441 
16 convertible bonds 
shire 275 convertible bonds due 2014 
on may 9 2007  shire issued 1100 million in principal amount of bonds as of december 31 2013 all of the bonds had been 
converted or redeemed as described below
on november 26 2013 shire issued an optional redemption notice under the trust deed to the holders of the bonds the aggregate 
outstanding principal amount of the bonds on november 25 2013 the last practicable date prior to the date of the optional 
redemption notice was 1075070000 the last day on which holders were able to exercise their conversion rights was december 
13 2013 those bonds which were not voluntarily converted by holders were redeemed by the company on december 27  2013 at 
par together with interest accrued to that date as at december 31 2013 bonds in an aggregate principal amount of the 
1099050000 had been voluntarily converted into 33806464 fully paid ordinary shares at a conversion price of us3251 per 
ordinary share in the capital of the company with par value of £005 each the remaining outstanding bonds in an aggregate 
principal amount of 950000 were redeemed pursuant to the optional redemption notice issued on november 26 2013 following 
the redemption of all the outstanding bonds the company cancelled the listing of the bonds on the official list maintained by the uk 
listing authority and the admission to trading of the bonds on the professional securities market of the london stock exchange
126 shire plc annual report 2013 wwwshirecom 17  other long term debt
term loan agreement
on november 11 2013 the company entered into a 260 billion facilities agreement with among others morgan stanley bank 
international limited acting as lead arranger and agent the “facilities agreement” the facilities agreement comprises two credit 
facilities i a 175 billion term loan facility and ii a 085 billion term loan facility 
on december 13 2013 and on february 21 2014 the company cancelled part of the 260 billion term loan facility the revised 
facilities agreement of 140 billion now comprises two credit facilities i a 055 billion term loan facility and ii a 085 billion term 
loan facility all other terms and conditions remained unchanged
the 055 billion term loan facility which matures on november 10 2014 may be used only to finance the purchase price payable in 
respect of the company’s proposed acquisition of viropharma including certain related costs and for the redemption of the 
company’s bonds the company has the option to extend the maturity of the 055 billion term loan facility once by a further 364 
days
the 085 billion term loan facility which matures on november 11 2015 may be used only to finance the purchase price payable in 
respect of the company’s proposed acquisition of viropharma including certain related costs
interest on any loans made under the facilities will be payable on the last day of each interest period which may be one week or one 
two three or six months at the election of shire or as otherwise agreed with the lenders the interest rate applicable to the 055 
billion term loan facility is libor plus 075 per annum and increases by 025 per annum on august 11 2014 and on threemonth 
intervals thereafter
the interest rate applicable to the 085 billion term loan facility commenced at libor plus 115 per annum until delivery of the 
compliance certificate for the year ending december 31 2013 and thereafter is subject to change depending upon the prevailing ratio 
of net debt to ebitda of the group each as defined in the facilities agreement in respect of the most recently completed financial 
year or financial half year
the company shall also pay a commitment fee on the available but unutilized commitments under the 055 billion term loan facility 
and the 085 billion term loan facility for the availability period applicable to each facility with effect from first utilization the 
commitment fee rate will be 35 of the applicable margin before first utilization the commitment fee rate will increase in stages from 
0 to 35 of the applicable margin over a period of three months
the facilities agreement includes customary representations and warranties covenants and events of default including requirements 
that the ratio of net debt to ebitda of the group each as defined in the facilities agreement must not at any time exceed 351 for 
the relevant period as defined in the facilities agreement except that following certain acquisitions including the viropharm 
acquisition the company may elect to increase the ratio to 401 in the relevant period in which the acquisition was completed and 
the immediately following relevant period in addition for each 12month period ending december 31 or june 30 the ratio of ebitda 
of the group to net interest each as defined in the facilities agreement must not be less than 401
the facilities agreement restricts subject to certain covenants shire’s ability to incur additional financial indebtedness grant security 
over its assets or provide or guarantee loans further any lender may require mandatory prepayment of its participation if there is a 
change of control of the company in addition in certain circumstances the net proceeds of certain shares undertakings or 
business disposals by the company must be applied towards the mandatory prepayment of the facilities subject to certain 
exceptions
events of default under the facilities include i nonpayment of any amounts due under the facilities ii failure to satisfy any financial 
covenants iii material misrepresentation in any of the finance documents iv failure to pay or certain other defaults under other 
financial indebtedness v certain insolvency events or proceedings vi material adverse changes in the business operations assets 
or financial condition of the company and its subsidiaries vii if it becomes unlawful for the company or any of its subsidiaries that 
are parties to the facilities agreement to perform their obligations or viii if s the company or any subsidiary of the company which is 
a party to the facilities agreement repudiates the facilities agreement or any other finance document among others
the facilities agreement is governed by english law
wwwshirecom annual report 2013 shire plc 127
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
18 other noncurrent liabilities
 
december 31 
2013 
’m
december 31 
2012 
’m
income taxes payable 1157 589 
deferred revenue 98 114 
deferred rent 113 119 
insurance provisions 10 123 
contingent consideration payable 3930 1204 
other noncurrent liabilities 577 267 
 5885 2416 
19 commitments and contingencies
a leases
future minimum lease payments under operating leases at december 31 2013 are presented below
 
operating 
leases  
’m
2014 449 
2015 336 
2016 239 
2017 179 
2018 122 
thereafter 834 
2159 
the company leases land facilities motor vehicles and certain equipment under operating leases expiring through 2032 lease and 
rental expense amounted to 440 million and 432 million for the years ended december 31 2013 and 2012 respectively which is 
predominately included in sga expenses in the company’s consolidated income statement
b letters of credit and guarantees
at december 31 2013 the company had irrevocable standby letters of credit and guarantees with various banks and insurance 
companies totaling 510 million 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
c collaborative arrangements
details of significant updates in collaborative arrangements are included below
inlicensing arrangements
i research collaboration with santaris pharma as “santaris” on locked nucleic acid “lna” drug platform 
on august 24 2009 the company announced that it had entered into a research collaboration with santaris to develop its 
proprietary lna technology in a range of rare diseases lna technology has the benefit of shortened target validation and proof of 
concept potentially increasing the speed and lowering the cost of development as part of the joint research project santaris will 
design develop and deliver preclinical lna oligonucleotides for the company selected orphan disease targets and the company 
will have the exclusive right to further develop and commercialize these candidate compounds on a worldwide basis
in the year to december 31 2013 the company paid success milestones and other support costs of 15 million 2012 30 million 
and 45 million 2012 81 million to santaris respectively which were expensed to rd the company has remaining obligations to 
pay santaris development and sales milestones up to a maximum of 710 million for each current indication the company will also 
pay single or double digit tiered royalties on net sales of the product
the company and santaris have formed a joint research committee to monitor rd activities through preclinical lead candidate 
selection at which point all development and commercialization costs will be the responsibility of the company
iii collaboration and license agreement with sangamo to develop therapeutics for hemophilia
on february 1 2012 the company and sangamo announced that they had entered into a collaboration and license agreement to 
develop therapeutics for hemophilia and other monogenic diseases based on sangamo’s zfp technology sangamo is responsible 
for all activities through submission of investigational new drug applications and european clinical trial applications for each product 
and the company will reimburse sangamo for its internal and external research programrelated costs the company is responsible 
for clinical development and commercialization of products arising from the collaboration 
128 shire plc annual report 2013 wwwshirecom 19 commitments and  
contingencies continued
in the year to december 31 2012 the company made an upfront 
payment to sangamo of 130 million for technology access and 
rd funding which was expensed to rd 
in the year to december 31 2013 the company’s share of rd 
costs under this collaboration agreement was 152 million 2012 
89 million which were expensed to rd the company may be 
required to pay research regulatory development and 
commercial milestone payments up to a maximum of 2135 
million and to pay royalties on net sales of the product
outlicensing arrangements
the company has entered into various collaborative 
arrangements under which the company has outlicensed 
certain product or intellectual property rights for consideration 
such as upfront payments development milestones sales 
milestones andor royalty payments in some of these 
arrangements the company 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 under the terms of these 
arrangements the company may receive development milestone 
payments up to an aggregate amount of 390 million and sales 
milestones up to an aggregate amount of 715 million the 
receipt of these substantive milestones is uncertain and 
contingent on the achievement of certain development 
milestones or the achievement of a specified level of annual net 
sales by the licensee in the year to december 31 2013 the 
company received upfront and milestone payments totaling 30 
million 2012 183 million in the year to december 31 2013 
shire recognized milestone income of 50 million 2012 194 
million in other revenues and 583 million 2012 838 million in 
product sales for shipment of product to the relevant licensee
d commitments
i clinical testing 
at december 31 2013 the company had committed to pay 
approximately 346 million december 31 2012 425 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
ii contract manufacturing
at december 31 2013 the company had committed to pay 
approximately 109 million december 31 2012 125 million in 
respect of contract manufacturing the company expects to pay 
109 million of these commitments in 2014 
iii other purchasing commitments
at december 31 2013 the company had committed to pay 
approximately 128 million december 31 2012 145 million for 
future purchases of goods and services predominantly relating to 
active pharmaceutical ingredients sourcing the company 
expects to pay 121 million of these commitments in 2014
iv investment commitments
at december 31 2013 the company had outstanding 
commitments to subscribe for interests in companies and 
partnerships for amounts totaling 14 million december 31 2012 
15 million which may all be payable in 2014 depending on the 
timing of capital calls the investment commitments include 
additional funding to nimbus neptune inc a variable interest 
entity of which the company is not the primary beneficiary 
under the terms of the agreement nimbus neptune inc controls 
and conducts all related research up to achievement of drug 
candidate status at which point shire will have an exclusive option 
to acquire the program shire will then be responsible for all 
clinical development and future commercialization activities 
nimbus neptune inc will be eligible to receive further 
consideration contingent upon achievement of certain 
development and commercial milestones 
v capital commitments
at december 31 2013 the company had committed to spend 
12 million december 31 2012 97 million on capital projects 
e legal and other proceedings
the company expenses legal costs as they are 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 
substantially before the ultimate loss is known and are therefore 
refined each accounting period as additional information 
becomes known in instances where the company is unable to 
develop a reasonable estimate of loss no loss contingency 
provision is recorded at that time as information becomes known 
a loss contingency provision is recorded when a reasonable 
estimate can be made the estimates are reviewed quarterly and 
the estimates are changed when expectations are revised an 
outcome that deviates from the company’s estimate may result in 
an additional expense or release in a future accounting period at 
december 31 2013 provisions for litigation losses insurance 
claims and other disputes totaled 727 million december 31 
2012 1305 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
vyvanse
in may and june 2011 the company was notified that six 
separate abbreviated new drug applications “andas” were 
submitted under the hatchwaxman act seeking permission to 
market generic versions of all approved strengths of vyvanse 
the notices were from sandoz inc “sandoz” amneal 
pharmaceuticals llc “amneal” watson laboratories inc 
roxane laboratories inc “roxane” mylan pharmaceuticals 
inc and actavis elizabeth llc and actavis inc collectively 
“actavis” within the requisite 45 day period the company filed 
lawsuits for infringement of certain of shire’s vyvanse patents in 
the us district court for the district of new jersey against each 
of sandoz roxane amneal and actavis in the us district court 
for the central district of california against watson laboratories 
inc and in the us district court for the eastern district of new 
york against mylan pharmaceuticals inc and mylan inc 
collectively “mylan” in february 2013 the company withdrew its 
lawsuit against watson following watson’s withdrawal of its 
anda on december 9 2011 the district court of new jersey 
consolidated the sandoz roxane amneal and actavis cases 
wwwshirecom annual report 2013 shire plc 129
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
19 commitments and  
contingencies continued 
the filing of the lawsuits triggered a stay of approval of all six 
andas for up to 30 months from the expiration of the new 
chemical entity exclusivity which will expire on august 23 2014 
in december 2011 and february 2012 the company received 
additional notifications that mylan had filed further certifications 
challenging other vyvanse patents listed in the orange book 
within the requisite 45 day period the company filed a new 
lawsuit against mylan johnson matthey pharmaceutical 
materials and johnson matthey inc in new jersey in may 2012 
the mylan case that was filed in the eastern district of new york 
was transferred and consolidated with the mylan sandoz 
roxane amneal and actavis cases in new jersey in december 
2012 the parties completed a markman briefing a markman 
hearing took place on august 5 2013 and a ruling was rendered 
on august 8 2013 no trial dates have been set 
intuniv 
between march 2010 and march 2011 the company was notified 
that seven separate andas had been submitted to the fda 
under the hatchwaxman act seeking permission to market 
generic versions of all approved strengths of intuniv the anda 
filers were actavis inc teva pharmaceuticals usa inc anchen 
inc watson pharmaceuticals inc impax laboratories inc 
mylan pharmaceuticals inc sandoz inc and certain of their 
respective affiliates the company filed lawsuits against each of 
these anda filers all of the lawsuits have now been settled 
under the terms of the actavis settlement actavis has a license 
to make and market actavis’ generic versions of intuniv in the 
united states on december 1 2014 such sales will require the 
payment of a royalty of 25 of gross profits to the company 
during the 180 day period of actavis’ exclusivity all other parties 
with whom the company has settled will be able to enter the 
market with their respective andaapproved products after 
actavis’ 180 day exclusivity period has expired each of the 
settlements included a consent judgment confirming that the 
proposed anda products infringe the patentsinsuit us 
patents 6287 599 and 6811794 and that those patents are valid 
and enforceable with respect to their respective proposed anda 
products us patent 5854290 which was originally asserted in 
some of the litigations has been dedicated to the public
fosrenol
between february 2009 and december 2010 the company was 
notified that four separate andas had been submitted to the fda 
under the hatchwaxman act seeking permission to market 
generic versions of all approved strengths of fosrenol the 
anda filers were barr laboratories inc mylan inc natco 
pharma limited and alkem laboratories ltd and certain of their 
respective affiliates the company filed lawsuits against each of 
these anda filers in april 2011 the company and barr reached a 
settlement and the lawsuit against barr was dismissed the 
settlement provides barr with a license to market its own generic 
version of fosrenol upon receiving fda approval in the us on 
the earlier of the date of entry of another company’s generic 
version of fosrenol to the us market or october 1 2021 the 
company’s lawsuits against mylan alkem and natco have each 
been dismissed and consequently each of mylan alkem and 
natco may enter the us market upon fda approval of their 
respective anda products 
lialda 
in may 2010 the company was notified that zydus 
pharmaceuticals usa inc “zydus” had submitted an anda 
under the hatchwaxman act seeking permission to market a 
generic version of lialda within the requisite 45 day period the 
company filed a lawsuit in the us district court for the district of 
delaware against zydus and cadila healthcare limited doing 
business as zydus cadila as of february 22 2013 the case has 
been administratively closed no further activity will take place 
until after one of the parties files a motion to reopen the case
in february 2012 the company was notified that osmotica 
pharmaceutical corporation “osmotica” had submitted an 
anda under the hatchwaxman act seeking permission to 
market a generic version of lialda within the requisite 45 day 
period the company filed a lawsuit in the us district court for 
the northern district of georgia against osmotica the filing of 
the lawsuit triggered a stay of approval of the anda for up to 30 
months the court has appointed a special master to assist with 
a markman hearing and to preside over any discovery disputes 
a markman hearing took place on august 22 2013 but no ruling 
has been rendered no trial date has been set
in march 2012 the company was notified that watson 
laboratories incflorida had submitted an anda under the 
hatchwaxman act seeking permission to market a generic 
version of lialda within the requisite 45 day period the 
company filed a lawsuit in the us district court for the southern 
district of florida against watson laboratories incflorida and 
watson pharmaceuticals inc the filing of the lawsuit triggered 
a stay of approval of the anda for up to 30 months in august 
2012 the company filed an amended complaint adding watson 
pharma inc and watson laboratories inc as defendants 
a markman hearing was held on december 20 2012 and a 
written markman decision was given by the court on january 17  
2013 a trial took place in april 2013 and on may 9 2013 the trial 
court issued a decision finding that the proposed generic product 
infringes the patentinsuit and that the patent is not invalid 
watson has appealed the trial court’s ruling to the court of 
appeals of the federal circuit “cafc” and a hearing took place 
on december 2 2013 no ruling has been issued by the cafc
in april 2012 the company was notified that mylan 
pharmaceuticals inc “mylan” had submitted an anda under 
the hatchwaxman act seeking permission to market a generic 
version of lialda within the requisite 45 day period the 
company filed a lawsuit in the us district court for the middle 
district of florida against mylan the filing of the lawsuit triggered 
a stay of approval of the anda for up to 30 months no date for a 
markman hearing has been set a trial is scheduled to occur in 
september 2014
130 shire plc annual report 2013 wwwshirecom 19 commitments and  
contingencies continued
adderall xr
on november 1 2010 impax laboratories inc “impax” filed suit 
against the company in the us district court for the southern 
district of new york claiming that the company was in breach of 
its supply contract for the authorized generic version of 
adderall xr on february 7  2013 the company and impax 
settled this dispute and agreed to discontinue all court and 
related proceedings under the terms of the settlement the 
company made a onetime cash payment to impax of 48 million 
in the first quarter of 2013 also as part of the settlement the 
parties have entered into an amended supply agreement which 
will govern the supply of authorized generic adderall xr from 
the company to impax until the end of the supply term on 
september 30 2014
in february 2011 the company was notified that watson 
laboratories incflorida had submitted an anda under the 
hatchwaxman act seeking permission to market a generic 
version of all approved strengths of adderall xr the company 
filed a lawsuit in the us district court for the southern district of 
new york against watson pharmaceuticals inc and certain of its 
affiliates for infringement of certain of the company’s adderall 
xr patents par pharmaceutical inc the successor in interest to 
watson’s anda for adderall xr has withdrawn its anda and 
the litigation was dismissed on january 23 2013 by agreement 
between the company watson and par pharmaceutical inc
in february 2013 the company was notified that neos 
therapeutics inc had submitted a new drug application under 
section 505b2 of the hatch waxman act “505b2 
application” the 505b2 application was submitted with a 
paragraph iv certification for us reissued patent nos re41148 
and 42096 listed in the orange book within the requisite 45 day 
period the company filed a lawsuit in the northern district of 
texas against neos therapeutics inc for infringement of those 
patents the filing of the lawsuit triggered a stay of final approval 
of the 505b2 application for 30 months no trial date has been 
set
subpoena related to adderall xr daytrana and vyvanse 
on september 23 2009 the company received a civil subpoena 
from the us department of health and human services office of 
inspector general in coordination with the us attorney for the 
eastern district of pennsylvania seeking production of documents 
related to the sales and marketing of adderall xr daytrana 
and vyvanse the investigation covered whether the company 
engaged in offlabel promotion and other conduct that may 
implicate the civil false claims act 
on february 1 2013 the company announced it had reached an 
agreement in principle to resolve this matter the agreement also 
addresses sales and marketing practices relating to lialda and 
pentasa pursuant to a subsequent voluntary disclosure made 
by the company the company cooperated with the us 
government throughout the process that led to this agreement in 
principle
the company has recorded a 57 5 million charge comprised of 
the agreement in principle amount interest and costs which has 
been charged to sga in the fourth quarter of 2012 the 
agreement in principle is subject to change until this matter is 
finally resolved discussions between the company and the us 
government are ongoing to establish a final resolution to the 
investigation
louisiana complaint related to adderall adderall xr 
daytrana vyvanse and intuniv 
on july 22 and july 23 2013 the state of louisiana served 
shire llc and shire us inc respectively with a civil complaint 
filed in the 19th judicial district court for the parish of east 
baton rouge the complaint alleges that the company’s sales 
marketing and promotion of adderall adderall xr 
daytrana vyvanse and intuniv violated state law the 
state is seeking monetary relief for its claims of fraud redhibition 
and unjust enrichment as well as violations of louisiana’s 
medical assistance programs integrity law unfair trade 
practices act and antitrust laws shire intends vigorously to 
defend these claims the company is not in a position at this 
time to predict the timing result or outcome of these claims
investigation related to dermagraft
the company understands that the department of justice 
including the us attorney’s office for the middle district of 
florida tampa division and the us attorney’s office for 
washington dc is conducting civil and criminal investigations 
into the sales and marketing practices of advanced biohealing 
inc “abh” relating to dermagraft shire is cooperating fully 
with these investigations the company is not in a position at 
this time to predict the scope duration or outcome of these 
investigations
civil investigative demand for adderall xr adderall xr 
authorized generics and vyvanse
on april 5 2012 the company received a civil investigative 
demand “cid” from the united states federal trade 
commission “ftc” requesting that the company provide it with 
certain information regarding the supply and reported shortages 
of adderall xr and its authorized generics and the marketing 
and sale of adderall xr its authorized generics and 
vyvanse the company believes the cid was triggered by 
reports of product shortages of adderall xr and the 
authorized generic products in 2011 the company responded 
to the cid in 2012 on august 29 2013 the ftc informed the 
company that it was closing the investigation without taking any 
further action
wwwshirecom annual report 2013 shire plc 131
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
20 accumulated other comprehensive income
the changes in accumulated other comprehensive income net of their related tax effects in the year to to december 31 2013 are 
included below
 
foreign 
currency 
translation 
adjustment 
unrealized 
holding gain
loss on 
availablefor
sale securities
accumulated 
other 
comprehensive 
income
as at january 1 2013 851 18 869 
current period change   
other comprehensive income before reclassification 253 15 268 
gain transferred to the income statement within other expenseincome net on disposal 
of availableforsale securities – 35 35
net current period other comprehensive income 253 20 233 
as at december 31 2013 1104 02 1102 
21 financial instruments
treasury policies and organization
the company’s principal treasury operations are coordinated by its corporate treasury function all treasury operations are 
conducted within a framework of policies and procedures approved annually by the board as a matter of policy the company does 
not undertake speculative transactions that would increase its currency or interest rate exposure
interest rate risk
the company is exposed to interest rate risk on its 1200 million revolving credit facility its 055 billion term loan facility its 085 
billion term loan facility the “facilities” to the extent the facilities are utilized restricted cash cash and cash equivalents and on 
foreign exchange contracts on which interest is at floating rates this exposure is primarily to us dollar pounds sterling euro and 
canadian dollar interest rates the company has evaluated the interest rate risk on its debt facilities and considers the floating rate as 
appropriate as the company maintains all of its cash liquid investments and foreign exchange contracts on a short term basis for 
liquidity purposes this risk is not actively managed in the year to to december 31 2013 the average interest rate received on cash 
and liquid investments was less than 1 per annum the largest proportion of these cash and liquid investments was in us dollar 
money market and liquidity funds at december 31 2013 the facilities were not utilized
the company incurred interest at a fixed rate of 275 on its 1100 million in principal amount convertible bonds which was 
converted and redeemed at december 31 2013 
no derivative instruments were entered into during the year to december 31 2013 to manage interest rate exposure the company 
continues to review its interest rate risk and the policies in place to manage the risk 
credit risk 
financial instruments that potentially expose the company to concentrations of credit risk consist primarily of short term cash 
investments derivative contracts and trade accounts receivable from product sales and from third parties from which the company 
receives royalties cash is invested in short term money market instruments including money market and liquidity funds and bank 
term deposits the money market and liquidity funds in which the company invests are all triple a rated by both standard and poor’s 
and by moody’s credit rating agencies
the company is exposed to the credit risk of the counterparties with which it enters into derivative instruments the company limits 
this exposure through a system of internal credit limits which vary according to ratings assigned to the counterparties by the major 
rating agencies the internal credit limits are approved by the board and exposure against these limits is monitored by the corporate 
treasury function the counterparties to these derivatives contracts are major international financial institutions 
the company’s revenues from product sales in the us are mainly governed by agreements with major pharmaceutical wholesalers 
and relationships with other pharmaceutical distributors and retail pharmacy chains for the year to december 31 2013 there were 
three customers in the us that accounted for 52 of the company’s product sales however such customers typically have 
significant cash resources and as such the risk from concentration of credit is considered acceptable the company has taken 
positive steps to manage any credit risk associated with these transactions and operates clearly defined credit evaluation procedures 
however an inability of one or more of these wholesalers to honor their debts to the company could have an adverse effect on the 
company’s financial condition and results of operations
132 shire plc annual report 2013 wwwshirecom 21 financial instruments continued 
a substantial portion of the company’s accounts receivable in countries outside of the united states is derived from product sales 
to governmentowned or governmentsupported healthcare providers the company’s recovery of these accounts receivable is 
therefore dependent upon the financial stability and creditworthiness of the relevant governments in recent years the 
creditworthiness and general economic condition of a number of eurozone countries including greece italy portugal and spain 
the “relevant countries” has deteriorated as a result in some of these countries the company is experiencing delays in the 
remittance of receivables due from governmentowned or governmentsupported healthcare providers the company continued 
to receive remittances in relation to governmentowned or governmentsupported healthcare providers in all the relevant countries 
in the year to december 31 2013 including receipts of 1168 million and 1447 million in respect of spanish and italian receivables 
respectively
to date the company has not incurred significant losses on accounts receivable in the relevant countries and continues to consider 
that such accounts receivable are recoverable the company will continue to evaluate all its accounts receivable for potential 
collection risks and has made provision for amounts where collection is considered to be doubtful if the financial condition of the 
relevant countries or other eurozone countries suffer significant deterioration such that their ability to make payments becomes 
uncertain or if one or more eurozone member countries withdraws from the euro additional allowances for doubtful accounts may 
be required and losses may be incurred in future periods any such loss could have an adverse effect on the company’s financial 
condition and results of operations
foreign exchange risk
the company trades in numerous countries and as a consequence has transactional and translational foreign exchange exposures
transactional exposure arises where transactions occur in currencies different to the functional currency of the relevant subsidiary 
the main trading currencies of the company are the us dollar pounds sterling swiss franc and the euro 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 being 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 these assets and liabilities relate predominantly to intercompany financing the foreign exchange contracts 
have not been designated as hedging instruments cash flows from derivative instruments are presented within net cash provided by 
operating activities in the consolidated cash flow statement unless the derivative instruments are economically hedging specific 
investing or financing activities
translational foreign exchange exposure arises on the translation into us dollars of the financial statements of nonus dollar 
functional subsidiaries
at december 31 2013 the company had 29 swap and forward foreign exchange contracts outstanding to manage currency risk 
the swap and forward contracts mature within 90 days the company did not have credit risk related contingent features or 
collateral linked to the derivatives 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 consolidated balance sheet as at december 31 2013 the potential effect of rights of set off associated with the 
foreign exchange contracts would be an offset to both assets and liabilities of 07 million resulting in net derivative assets and 
derivative liabilities of 33 million and 21 million respectively further details are included below
 
fair value
december 31 
2013 
’m
fair value
december 31 
2012 
’m
assets prepaid expenses and other current assets 40 13 
liabilities other current liabilities 28 30 
net lossesgains both realized and unrealized arising on foreign exchange contracts have been classified in the consolidated 
statements of income as follows
 
location of net lossgain 
recognized in income
amount of net lossgain 
recognized in income
in the year to
december 31 
2013 
’m
december 31 
2012 
’m
foreign exchange contracts other income net 18 62 
these net foreign exchange lossesgains are offset within other income net by net foreign exchange gainslosses arising on the 
balance sheet items that these contracts were put in place to manage
wwwshirecom annual report 2013 shire plc 133
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
22 fair value measurement 
assets and liabilities that are measured at fair value on a recurring basis
as at december 31 2013 and december 31 2012 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
carrying value fair value
at december 31 2013 ’m
total
’m
level 1
’m
level 2
’m
level 3
’m
financial assets
availableforsale securities
1
67 67 67 – – 
contingent consideration receivable
2
361 361 – – 361 
foreign exchange contracts 40 40 – 40 – 
financial liabilities     
foreign exchange contracts 28 28 – 28 – 
contingent consideration payable
3
4059 4059 – – 4059 
at december 31 2012 ’m 
total 
’m
level 1 
’m
level 2 
’m
level 3 
’m
financial assets
availableforsale securities
1
142 142 142 – – 
contingent consideration receivable
2
383 383 – – 383 
foreign exchange contracts 13 13 – 13 – 
financial liabilities    
foreign exchange contracts 30 30 – 30 – 
contingent consideration payable
3
1364 1364 – – 1364 
1
 availableforsale securities are included within investments in the consolidated balance sheet
2 
contingent consideration receivable is included within prepaid expenses and other current assets and other noncurrent assets in the consolidated balance sheet
3 
contingent consideration payable is included within other current liabilities and other noncurrent liabilities in the consolidated balance sheet
certain estimates and judgments were required to develop the fair value amounts the 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
• availableforsale securities – the fair values of availableforsale securities are estimated based on quoted market prices for those 
investments 
• contingent consideration receivable – the fair value of the contingent consideration receivable has been estimated using the income 
approach using a probability weighted discounted cash flow method 
• foreign exchange contracts – the fair values of the swap and forward foreign exchange contracts have been determined using an 
income approach based on current market expectations about the future cash flows
• contingent consideration payable – the fair value of the contingent consideration payable has been estimated using the income 
approach using a probability weighted discounted cash flow method
134 shire plc annual report 2013 wwwshirecom 22 fair value measurement continued
assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs level 3
the change in the fair value of the company’s contingent consideration receivable and payables which are measured at fair value on 
a recurring basis using significant unobservable inputs level 3 are as follows
contingent consideration receivable 
2013 
’m
2012 
’m
balance at january 1 383 378 
gain recognized in the income statement within gain on sale of product rights 
due to change in fair value during the period 159 181 
reclassification of amounts to other receivables within other current assets 195 187
amounts recorded to other comprehensive income within foreign currency translation adjustments 14 11 
balance at december 31 361 383 
contingent consideration payable 
2013 
’m
2012 
’m
balance at january 1 1364 – 
initial recognition of contingent consideration payable 4514 1278 
change in fair value during the period with the corresponding adjustment recognized as a gain in the income statement
within integration and acquisition costs 1591 92 
reclassification of amounts to other current liabilities 139 88
change in fair value during the period with corresponding adjustment to the associated intangible asset 89 82 
balance at december 31 4059 1364 
quantitative information about sssets and liabilities measured at fair value on a recurring basis using significant 
unobservable inputs level 3
quantitative information about the company’s recurring level 3 fair value measurements is included below
financial assets  fair value at the measurement date
at december 31 2013
fair value
m valuation technique
significant 
unobservable inputs range
contingent consideration 
receivable “ccr”
361 income approach 
probability weighted 
discounted cash flow
probability weightings 
applied to different sales 
scenarios
10 to 45
future forecast royalties 
receivable at relevant 
contractual royalty rates
 40 million to  
148 million
assumed market 
participant discount rate
62 
financial liabilities  fair value at the measurement date
at december 31 2013
fair value
m valuation technique
significant 
unobservable inputs range
contingent consideration payable 4059 income approach 
probability weighted 
discounted cash flow
cumulative probability  
of milestones  
being achieved
18 to 57  
weighted average
assumed market 
participant discount rate
29 to 15  
weighted average
periods in which 
milestones are expected 
to be achieved 
2014 to 2025
forecast quarterly 
royalties payable on net 
sales of relevant products
24 to 7 6 million
wwwshirecom annual report 2013 shire plc 135
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
22 fair value measurement continued
the company remeasures the ccr relating to contingent consideration due to the company following divestment of one of the 
company’s products at fair value at each balance sheet date with the fair value measurement based on forecast cash flows over a 
number of scenarios which vary depending on the expected performance outcome of the product following divestment the forecast 
cash flows under each of these differing outcomes have been included in probability weighted estimates used by the company in 
determining the fair value of the ccr
contingent consideration payable represents future milestones the company may be required to pay in conjunction with various 
business combinations and future royalties payable as a result of certain business combinations and licenses the amount ultimately 
payable by the company in relation to business combinations is dependent upon the achievement of specified future milestones 
such as the achievement of certain future development regulatory and sales milestones the company assesses the probability and 
estimated timing of these milestones being achieved and remeasures the related contingent consideration to fair value each balance 
sheet date the amount of contingent consideration which may ultimately be payable by the company in relation to future royalties is 
dependent upon future net sales of the relevant products over the life of the royalty term the company assesses the present value of 
forecast future net sales of the relevant products and remeasures the related contingent consideration to fair value each balance 
sheet date 
the fair value of the company’s contingent consideration receivable and payable could significantly increase or decrease due to 
changes in certain assumptions which underpin the fair value measurements each set of assumptions and milestones are specific to 
the individual contingent consideration receivable or payable the assumptions include among other things the probability and 
expected timing of certain milestones being achieved the forecast future net sales of the relevant products and related future 
royalties payable the probability weightings applied to different sales scenarios of one of the company’s divested products and 
forecast future royalties receivable under scenarios developed by the company and the discount rates used to determine the present 
value of contingent future cash flows the company regularly reviews these assumptions and makes adjustments to the fair value 
measurements as required by facts and circumstances
assets measured at fair value on a nonrecurring basis in the period using significant unobservable inputs level 3
in the second quarter of 2013 the company reviewed certain iprd intangible assets acquired through movetis for impairment and 
recognized an impairment charge of 199 million recorded within rd in the consolidated income statement to writedown these 
assets to their fair value the fair value of these assets was determined using the income approach which used significant 
unobservable level 3 inputs these unobservable inputs included among other things riskadjusted forecast future cash flows to 
be generated by these assets and the determination of an appropriate discount rate to be applied in calculating the present value of 
forecast future cash flows the fair value of these assets determined at the time of the impairment review was 203 million
on january 16 2014 the company sold and transferred certain of the assets relating to the manufacturing marketing sale and 
distribution of dermagraft to organogenesis inc see note 9 for details the transferred assets include intellectual property 
relating to dermagraft including patents trademarks and knowhow regulatory filings and registrations relating to 
dermagraft certain manufacturing plant equipment and materials relating to the business and dermagraft product inventory 
and accounts receivable the transferred assets have been measured at their fair value less costs to sell as at december 31 2013 
an impairment charge of 6369 million was recorded within discontinued operations in the consolidated income statement upon 
remeasurement of the divested assets to their fair value less costs to sell the fair value of these assets was determined using the 
income approach which used significant unobservable level 3 inputs these unobservable inputs included among other things 
riskadjusted forecast future cash flows to be generated by the company following the divestment of these assets and the 
determination of an appropriate discount rate to be applied in calculating the present value of forecast future cash flows the fair 
value of these assets at the date the heldforsale conditions were met amounted to 316 million
quantitative information about nonrecurring level 3 fair value measurements which occurred in the period is included below 
  fair value at the measurement date
at december 31 2013
fair value 
m valuation technique
significant 
unobservable inputs rate used
movetisrelated iprd intangible assets 203 income approach 
discounted cash flow
decline in forecast  
peak sales since last 
impairment test
50
 assumed  
market participant 
discount rate
89
dermagraft assets heldforsale 316 income approach 
discounted cash flow
future forecast  
milestones to  
be received
15 to 95 million 
assumed market 
participant discount rate
115
136 shire plc annual report 2013 wwwshirecom 22 fair value measurement continued
financial assets and liabilities that are not measured at fair value on a recurring basis
the carrying amounts and estimated fair values as at december 31 2013 and december 31 2012 of the company’s financial assets 
and liabilities which are not measured at fair value on a recurring basis are as follows
december 31 2013 december 31 2013
 
carrying
amount
’m
fair value
’m
carrying
amount
’m
fair value
’m
financial liabilities    
convertible bonds level 1 – – 11000 12282 
building financing obligation level 3 78 101 80 103 
certain estimates and judgments were required to develop the fair value amounts the 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
building finance obligations – the fair value of building finance obligations are estimated based on the present value of future cash 
flows and an estimate of the residual value of the underlying property at the end of the lease term associated with these obligations
the carrying amounts of other financial assets and liabilities materially approximate to their fair value because of the short term 
maturity of these amounts
23 shareholders’ equity
authorized common stock
the authorized stock of shire plc as at december 31 2013 was 1000000000 ordinary shares and 2 subscriber ordinary shares
dividends
under jersey law shire plc is entitled to make payments of dividends from its accumulated profits and other distributable reserves 
at december 31 2013 shire plc’s distributable reserves were approximately 104 billion
treasury stock 
the company records the purchase of its own shares by the ebt and under share buyback program as a reduction of shareholders’ 
equity based on the price paid for the shares at december 31 2013 the ebt held 24 million ordinary shares 2012 38 million and 
04 million adss 2012 11 million and shares held under share buyback program were 7 1 million ordinary shares 2012 27 million 
and 09 million adss 2012 03 million during the year to december 31 2013 a total of 42 million 2012 45 million ordinary shares 
and 08 million 2012 09 million adss had been purchased for total consideration of 2438 million 2012 2058 million including 
stamp duty and broker commission 
share buyback program
in 2012 the company commenced a share buyback program of up to 500 million through both direct purchases of ordinary 
shares and through the purchase of ordinary shares underlying adrs the purchases have been made through independent third 
parties who have made trading decisions independently of and uninfluenced by the company the independence of the third parties 
enabled the company to purchase ordinary shares including ordinary shares underlying adrs during close periods and other 
prohibited periods should they arise the amount timing or prices of purchases varied based on market conditions and other 
factors the shares purchased to date are held as treasury shares
during the year ending december 31 2013 the company made onmarket repurchases totaling 6191965 ordinary shares at a cost 
of 193 million excluding transaction costs this represents 10 of the issued share capital of the company as at the end of the 
quarter ordinary shares purchased may be cancelled or be held as treasury shares in accordance with the authority renewed by 
shareholders at the company’s annual general meeting “agm” at its agm on april 24 2012 the company was authorized to make 
market purchases of up to 56253208 of its own ordinary shares that authority expired at the agm held on april 30 2013 and was 
renewed under the new authority which expires on the earlier of july 29 2014 or the conclusion of the 2014 agm the company 
was authorized to make market purchases of up to 55741587 of its own ordinary shares
on november 11 2013 contemporaneous with shire’s announcement of its acquisition of viropharma the company’s share 
buyback program was terminated since the inception of the share buyback program the company had purchased 300 million of 
ordinary shares and ordinary shares underlying adrs
wwwshirecom annual report 2013 shire plc 137
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
23 shareholders’ equity continued
conversion of shire’s 275 convertible bonds 
on november 26 2013 the company issued an optional redemption notice under the trust deed dated may 9 2007 to holders of 
the company’s bonds consequently as of december 31 2013 bondholders had voluntarily converted the bonds into 33806464 
fully paid ordinary shares see note 16 for further details
income access share arrangements “ias trust”
the company has put into place income access arrangements which enable ordinary shareholders other than ads holders to 
choose whether they receive their dividends from the company a company tax resident in the republic of ireland or from shire 
biopharmaceutical holdings “old shire” a shire group company tax resident in the uk 
old shire has issued one income access share to the income access trust the “ias trust” which is held by the trustee of the ias 
trust the “trustee” the mechanics of the arrangements are as follows
if a dividend is announced or declared by shire plc on its ordinary shares an amount is paid by old shire by way of a dividend on 
the income access share to the trustee and such amount is paid by the trustee to ordinary shareholders who have elected or are 
deemed to have elected to receive dividends under these arrangements the dividend which would otherwise be payable by shire 
plc to its ordinary shareholders will be reduced by an amount equal to the amount paid to its ordinary shareholders by the trustee
if the dividend paid on the income access share and onpaid by the trustee to ordinary shareholders is less than the total amount of 
the dividend announced or declared by shire plc on its ordinary shares shire plc will be obliged to pay a dividend on the relevant 
ordinary shares equivalent to the amount of the shortfall in such a case any dividend paid on the ordinary shares will generally be 
subject to irish withholding tax at the rate of 20 or such lower rate as may be applicable under exemptions from withholding tax 
contained in irish law
an ordinary shareholder is entitled to make an income access share election such that heshe will receive hisher dividends which 
would otherwise be payable by shire plc under these arrangements from old shire
an ordinary shareholder who holds 25000 or fewer ordinary shares at the first record date after heshe first becomes an ordinary 
shareholder and who does not make a contrary election will be deemed to have made an election pursuant to the shire plc articles 
of association such that heshe will receive hisher dividends under these arrangements from old shire
the ads depositary has made an election on behalf of all holders of adss such that they will receive dividends from old shire under 
the income access share arrangements dividends paid by old shire under the income access share arrangements will not under 
current legislation be subject to any uk or irish withholding taxes if a holder of adss does not wish to receive dividends from old 
shire under the income access share arrangements heshe must withdraw hisher ordinary shares from the ads program prior to 
the dividend record date set by the depositary and request delivery of the shire plc ordinary shares this will enable himher to 
receive dividends from shire plc if necessary by making an election to that effect
it is the expectation although there can be no certainty that old shire will distribute dividends on the income access share to the 
trustee for the benefit of all ordinary shareholders who make or are deemed to make an income access share election in an amount 
equal to what would have been such ordinary shareholders’ entitlement to dividends from shire plc in the absence of the income 
access share election if any dividend paid on the income access share and or paid to the ordinary shareholders is less than such 
ordinary shareholders’ entitlement to dividends from shire plc in the absence of the income access share election the dividend on 
the income access share will be allocated pro rata among the ordinary shareholders and shire plc will pay the balance to these 
ordinary shareholders by way of dividend in such circumstances there will be no grossing up by shire plc in respect of and old 
shire and shire plc will not compensate those ordinary shareholders for any adverse consequences including any irish withholding 
tax consequences 
the company will be able to suspend or terminate these arrangements at any time in which case the full shire plc dividend will be 
paid directly by shire plc to those ordinary shareholders including the depositary who have made or are deemed to have made an 
income access share election in such circumstances there will be no grossing up by shire plc in respect of and old shire and shire 
plc will not compensate those ordinary shareholders for any adverse consequences including any irish withholding tax 
consequences
in the year ended december 31 2013 old shire paid dividends totaling 911 million 2012 815 million on the income access share 
to the trustee in an amount equal to the dividend shire ordinary shareholders would have received from shire
138 shire plc annual report 2013 wwwshirecom 24 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
 
2013 
’m
2012 
’m
income from continuing operations net of taxes 14196 8057 
loss from discontinued operations
1
 7545 603
numerator for basic earnings per share 6651 7454 
interest on convertible bonds net of tax 283 313 
numerator for diluted earnings per share 6934 7767 
weighted average number of shares millions millions 
basic
1
 5520 5554 
effect of dilutive shares  
share based awards to employees
2
 48 46 
convertible bonds 275 due 2014
3
 335 335 
diluted 5903 5935 
1 
excludes shares purchased by the ebt and under the share buyback program and presented by shire as treasury stock
2 
calculated using the treasury stock method
3 
at december 31 2013 bondholders had voluntarily converted 1099050000 aggregate principal amount of the convertible bonds into 33806464 fully paid 
ordinary shares the remaining outstanding bonds in an aggregate principle amount of 950000 were redeemed pursuant to the option redemption notice issued 
on november 26 2013 the company has calculated the impact of the bonds on diluted eps from the beginning of the period to the actual date of bonds conversion 
using the ‘ifconverted’ method
year to december 31 2013 2012
earnings per ordinary share – basic  
earnings from continuing operations 2572c 1451c
loss from discontinued operations 1367c 109c
earnings per ordinary share – basic 1205c 1342c
earnings per ordinary share – diluted  
earnings from continuing operations 2453c 1410c
loss from discontinued operations 1278c 101c
earnings per ordinary share – diluted 1175c 1309c
the share equivalents not included in the calculation of the diluted weighted average number of shares are shown below
2013 
 no of  
shares
millions
2012 
 no of  
shares
millions
share based awards to employees
1
05 67 
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 the required performance conditions were not satisfied as at the balance sheet date
wwwshirecom annual report 2013 shire plc 139
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
25 segmental reporting
historically the company had three business units and three reportable segments specialty pharmaceuticals “sp” human genetic 
therapies “hgt” and regenerative medicine “rm” 
on may 2 2013 the company announced that there would be a reorganization of the company’s business to integrate the operation 
of these business units into a simplified one shire organization in order to drive future growth and innovation consequently the sp  
hgt and rm segments no longer exist
shire now comprises a single operating and reportable segment consistent with the one shire approach that underpins the 
business simplification this segment is engaged in the research development licensing manufacturing marketing distribution and 
sale of innovative specialist medicines to meet significant unmet patient needs 
this segment is supported by several key functions a pipeline group consisting of rd and business development will prioritize its 
activities towards late stage development programs across a variety of therapeutic areas while focusing its preclinical development 
activities primarily in rare diseases a technical operations group will be responsible for the company’s global supply chain and an 
inline marketed products group will focus on commercialized products the inline marketed products group currently consists of 
four commercial units focused exclusively on commercial delivery to drive optimum performance of currently marketed products 
the business is also supported by a simplified centralized corporate function group none of these functional groups meets all of the 
criteria to be an operating segment
the reorganization to a single operating and reportable segment is consistent with the financial information regularly reviewed by the 
executive committee which is the company’s chief operating decision maker for the purposes of evaluating performance allocating 
resources and planning and forecasting future periods 
geographic information
revenues based on the geographic location from which the sale originated
year to december 31
2013 
’m
2012 
’m
ireland 225 206 
united kingdom 2067 2070 
north america 33862 30061 
rest of world 13189 12937
total revenues 49343 45274 
longlived assets comprise all noncurrent assets excluding goodwill and other intangible assets deferred contingent consideration 
assets deferred tax assets investments and financial instruments based on the geographic location within which the economic 
benefits arise 
year to december 31
2013 
’m
2012 
’m
ireland 58 52 
united kingdom 703 722 
north america 8029 8610 
rest of world 138 188 
total 8928 9572 
140 shire plc annual report 2013 wwwshirecom 25 segmental reporting continued
material customers
in the periods set out below certain customers accounted for greater than 10 of the company’s product revenues
year to december 31
2013 
’m
2013 
 product
2012 
’m
2012 
 product
mckesson corp 9029 19 8359 20 
cardinal health inc 8537 18 10357 24 
amerisourcebergen corp 7210 15 3074 7
amounts outstanding as at december 31 in respect of these material customers were as follows
december 31
2013 
’m
2012 
’m
mckesson corp 1613 1274 
cardinal health inc 1495 1661
amerisourcebergen corp 1646 474 
in the periods set out below revenues by major product were as follows
2013 
’m
2012 
’m
vyvanse 12278 10298 
elaprase 5456 4976 
lialdamezavant 5289 3999 
replagal 4679 4975 
adderall xr 3754 4290 
vpriv 3427 3066 
intuniv 3349 2878 
pentasa 2806 2658 
firazyr 2348 1163 
fosrenol 1834 1720 
xagrid 994 972 
other product sales 1361 1534
total product sales 47575 42529 
wwwshirecom annual report 2013 shire plc 141
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
26 retirement benefits
the company makes contributions to defined contribution retirement plans that together cover substantially all employees the level 
of the company’s contribution is fixed at a set percentage of employee’s pay 
company contributions to personal defined contribution pension plans totalled 457 million and 464 million for the years to 
december 31 2013 and 2012 respectively and were charged to operations as they became payable
27  taxation
the components of pre tax income from continuing operations are as follows
year to december 31
2013 
’m
2012 
’m
republic of ireland 478 747
uk 109 307 
us 11533 6838 
other jurisdictions 5772 3680 
 16936 10078 
the provision for income taxes by location of the taxing jurisdiction for the years to december 31 2013 and 2012 consisted of the 
following
year to december 31
2013 
’m
2012 
’m
current income taxes
republic of ireland – – 
us federal tax 2743 2300 
us state and local taxes 179 113 
other 634 290 
total current taxes 3556  2703 
deferred taxes  
us federal tax 238 638
us state and local taxes 83 65
uk corporation tax 115 131 
other 1047 100
total deferred taxes 777 672
total income taxes 2779 2031 
the operating results associated with the dermagraft business have been classified as discontinued operations for all periods 
presented 
the group has determined the amount of income tax expense or benefit allocable to continuing operations using the incremental 
approach described in asc 74020458 and the relevant examples as a result 9 million of income tax expense associated with the 
us operations was allocated to income from continuing operations for 2013 based on the primacy of continuing operations due to 
changes in circumstances that caused a change in judgment about the realization of deferred tax assets in future years and in 
accordance with the rules prescribed under asc 7402045 
the amount of income tax attributed to discontinued operations is disclosed in note 9
142 shire plc annual report 2013 wwwshirecom 27  taxation continued
the reconciliation of income from continuing operations before income taxes noncontrolling interests and equity in earningslosses 
of equity method investees at the statutory tax rate to the provision for income taxes is shown in the table below
year to december 31
2013 
’m
2012 
’m
income from continuing operations before income taxes and equity 
in earnings of equity method investees  16936  10078 
statutory tax rate
1
250 250
adjustments to derive effective rate   
nondeductable items  
us rd credit 45 26
effect of the convertible bond 05 08
intragroup items
2
92 160
recognition of foreign tax credits – 66
other permanent items 07 08
other items   
change in valuation allowance 09 34
impact of resolor impairment – 49
difference in taxation rates 78 76
change in provisions for uncertain tax positions 38 11
prior year adjustment 34 08
change in fair value of contingent consideration 36 
change in tax rates 02 08
other 00 01
provision for income taxes on continuing operations 164 201
1 
in addition to being subject to the irish corporation tax rate of 25 in 2013 the company is also subject to income tax in other territories in which the company 
operates including canada 15 france 333 germany 15 italy 27 5 luxembourg 210 the netherlands 25 belgium 3399 spain 30 sweden 
22 switzerland 85 united kingdom 2325 and the us 35 the rates quoted represent the statutory federal income tax rates in each territory and do not 
include any state taxes or equivalents or surtaxes or other taxes charged in individual territories and do not purport to represent the effective tax rate for the company 
in each territory
2 
intragroup items principally relate to the effect of intercompany dividends capital receipts either taxable or nontaxable and other intraterritory eliminations the 
pretax effect of which has been eliminated in arriving at the company’s consolidated income from continuing operations before income taxes noncontrolling interests 
and equity in earningslosses of equity method investees
wwwshirecom annual report 2013 shire plc 143
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
27  taxation continued
provisions for uncertain tax positions
the company files income tax returns in the republic of ireland the uk the us both federal and state and various other 
jurisdictions see footnote 1 to the table above for major jurisdictions with few exceptions the company is no longer subject to 
income tax examinations by tax authorities for years before 1999 tax authorities in various jurisdictions are in the process of auditing 
the company’s tax returns for fiscal periods from 1999 these tax audits cover a range of issues including transfer pricing potential 
restrictions on the utilization of net operating losses potential taxation of overseas dividends and controlled foreign companies’ rules
while tax audits remain open the company also considers it reasonably possible that issues may be raised by tax authorities 
resulting in increases to the balance of unrecognized tax benefits however an estimate of such increase cannot be made
the company is required in certain tax jurisdictions to make advance deposits to tax authorities on receipt of tax assessments 
these payments have been offset against the income tax liability within the balance sheet but have not reduced the provision for 
unrecognized tax benefits
a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows
2013 
’m
2012 
’m
balance at january 1 2787 2655 
increases based on tax positions related to the current year 568 205 
decreases based on tax positions taken in the current year 05 – 
increases for tax positions taken in prior years 345 04 
decreases for tax positions taken in prior years 08 33
decreases resulting from settlements with the taxing authorities – 106
decreases as a result of expiration of the statute of limitations 06 03
foreign currency translation adjustments
1
129 65 
other –  –
balance at december 31
2
3552 2787 
1
 recognized within other comprehensive income
2
 the full amount of which would affect the effective rate if recognized
the company considers it reasonably possible that certain audits currently being conducted will be concluded in the next twelve 
months and as a result the total amount of unrecognized tax benefits recorded at december 31 2013 could decrease by up to 
approximately 210 million as at the balance sheet date the company believes that its reserves for uncertain tax positions are 
adequate to cover the resolution of these audits however the resolution of these audits could have a significant impact on the 
financial statements if the settlement differs from the amount reserved 
the company recognizes interest and penalties accrued related to unrecognized tax benefits within income taxes during the years 
ended december 31 2013 and 2012 the company recognized 04 million and 51 million in interest and penalties and the 
company had a liability of 1122 million and 1196 million for the payment of interest and penalties accrued at december 31 2013 
and 2012 respectively
144 shire plc annual report 2013 wwwshirecom 27  taxation continued
deferred taxes
the significant components of deferred tax assets and liabilities and their balance sheet classifications as at december 31 
are as follows
2013 
’m
2012 
’m
deferred tax assets  
deferred revenue 52 55 
inventory  warranty provisions 486 525 
losses carried forward including tax credits
1
 5006 4257 
provisions for sales deductions and doubtful accounts 1518 1449 
intangible assets 107 367 
sharebased compensation 255 327 
excess of tax value over book value of assets 221 – 
accruals and provisions 551 441 
other 26 216 
gross deferred tax assets 8222 7637 
less valuation allowance 2824 2686
 5398 4951 
deferred tax liabilities  
intangible assets 5868 7027
excess of book value over tax value of assets and investments 569 368
net deferred tax liabilities 1039 2444
balance sheet classifications  
deferred tax assets – current 3156 2299 
deferred tax assets – noncurrent 1411 465 
deferred tax liabilities – current – – 
deferred tax liabilities – noncurrent 5606 5208
 1039 2444
1 
excluding 150 million of deferred tax assets at december 31 2013 2012 68 million related to the net operating losses that result from excess stock based 
compensation and for which any benefit realized will be recorded to stockholders’ equity
at december 31 2013 the company had a valuation allowance of 2824 million 2012 2686 million to reduce its deferred tax 
assets to estimated realizable value these valuation allowances related primarily to operating loss capital loss and taxcredit 
carryforwards in ireland 2013 788 million 2012 739 million the us 2013 609 million 2012 37 2 million germany 2013 
308 million 2012 969 million and other foreign tax jurisdictions 2013 1119 million 2012 606 million
management is required to exercise judgement in determining whether deferred tax assets will more likely than not be realized a 
valuation allowance is established where there is an expectation that on the balance of probabilities management considers it is more 
likely than not that the relevant deferred tax assets will not be realized in assessing the need for a valuation allowance management 
weighs all available positive and negative evidence including cumulative losses in recent years projection of future taxable income 
carry forward and carry back potential under relevant tax law expiration period of tax attributes taxable temporary differences and 
prudent and feasible taxplanning strategies
the net increase in valuation allowances of 138 million includes i increases of 1045 million primarily in respect of losses and other 
temporary differences in various jurisdictions where management consider that there is insufficient positive evidence in respect of the 
factors described above to overcome cumulative losses and therefore it is more likely than not that the relevant deferred tax assets 
will not be realized in full and ii a decrease of 907 million primarily in respect of german tax losses 67 4m which based on the 
assessment of the factors described above now provides sufficient positive evidence to support that the losses are more likely than 
not to be realized the release of this valuation allowance has been recorded in the current period due to changes in the financing of 
the german subsidiary
at december 31 2013 based upon a consideration of the factors described above management believes it is more likely than not 
that the company will realize the benefits of these deductible differences net of the valuation allowances however the amount of the 
deferred tax asset considered realizable could be adjusted in the future if these factors are revised in the future periods 
wwwshirecom annual report 2013 shire plc 145
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
27  taxation continued
the approximate tax effect of nols capital losses and tax credit carryforwards as at december 31 are as follows
2013 
’m
2012 
’m
us federal tax nols 322 261 
us state tax nols 615 314 
uk nols 67 207 
republic of ireland nols 788 726 
foreign tax jurisdictions 2731 2088 
rd and other tax credits 483 662
the approximate gross value of nols and capital losses at december 31 2013 is 25837 million 2012 17835 million the tax 
effected nols capital losses and tax credit carryforwards shown above have the following expiration dates
december 31
2013 
’m
within 1 year 09 
within 1 to 2 years 11 
within 2 to 3 years 07 
within 3 to 4 years 29 
within 4 to 5 years 30 
within 5 to 6 years 356 
after 6 years 1427 
indefinitely  3137 
the company does not provide for deferred taxes on the excess of the financial reporting over the tax basis in our investments in 
foreign subsidiaries that are essentially permanent in duration at december 31 2013 that excess totalled approximately 89 billion 
2012 7 8billion the determination of additional deferred taxes is not practicable and is not provided
28 sharebased compensation plans
the following table shows the total sharebased compensation expense see below for types of sharebased awards included in the 
consolidated statements of income 
2013 
’m
2012 
’m
cost of product sales 44 63 
research and development 228 258 
selling general and administrative 469 550 
reorganization costs 33  – 
total 774 871 
less tax 181 238
 593 633 
there were no capitalized sharebased compensation costs at december 31 2013 and 2012
at december 31 2013 97 0 million 2012 1023 million of total unrecognized compensation cost relating to nonvested awards is 
expected to be recognized over a period of three years 
at december 31 2013 903 million 2012 746 million of total unrecognized compensation cost relating to nonvested in the money 
awards based on the average share price during the year is expected to be recognized over a weighted average period of 17 years 
2012 17 years the total fair value of in the money awards vested during the year to december 31 2013 was 705 million 2012 
1139 million
146 shire plc annual report 2013 wwwshirecom 28 sharebased compensation plans continued
sharebased compensation plans
the company grants stocksettled share appreciation rights “sars” and performance share awards over ordinary shares and 
adss to executive directors and employees under the shire portfolio share plan parts a and b the sars and psas granted under 
the shire portfolio share plan part a  b to executive directors are exercisable subject to performance and service criteria
the principal terms and conditions of sars and psas are as follows i the contractual life of sars is seven years ii the vesting 
period of sars and psas granted to employees below the level of executive vice president allows for graded vesting and iii awards 
granted to executive directors contain performance conditions based on growth in adjusted return on invested capital “adjusted 
roic” and earnings before interest taxation depreciation and amortization “nongaap ebitda” 
the company also operates an employee share purchase plan and a sharesave scheme
the following awards were outstanding as at december 31 2013
compensation 
type
number  
of awards
expiration period  
from date of issue vesting period
portfolio share plan – part a sars 14083748 5 to 7 years 3 years cliff or graded vesting 
subject to market or 
performance criteria for 
executive directors only
sharesave scheme stock options 243783 6 months  
after vesting
3 or 5 years
stock purchase plan stock options 568828 on vesting date 1 to 5 years
legacy plans stock options 132823 7 to 10 years 310 years subject to market 
or performance criteria
stocksettled sars and stock options 15029182 
portfolio share plan – part b performance  
share awards
2701299 3 years 3 years cliff or graded vesting 
subject to market or 
performance criteria for 
executive directors only 
performance share awards 2701299

 
number of awards are stated in terms of ordinary share equivalents
stock settled sars and stock options
a portfolio share plan – part a
stocksettled share appreciation rights granted under the portfolio share plan – part a are exercisable subject to performance and 
service criteria 
in respect of any award made to executive directors performance criteria are based on nongaap ebitda and adjusted roic 
targets these performance measures provide increased alignment to the core activities and strategy of the company 
awards granted to employees below executive director level are not subject to performance conditions and are only subject to 
service conditions 
once awards have vested participants will have until the seventh anniversary of the date of grant to exercise their awards
b shire sharesave scheme sharesave scheme
options granted under the sharesave scheme are granted with an exercise price equal to 80 and 75 of the midmarket price on 
the day before invitations are issued to uk and ireland employees respectively employees may enter into three or five year savings 
contracts no performance conditions apply
c shire employee stock purchase plan stock purchase plan
under the stock purchase plan options are granted with an exercise price equal to 85 of the fair market value of a share on the 
enrolment date the first day of the offering period or the exercise date the last day of the offering period whichever is the lower 
employees agree to save for a period up to 12 months no performance conditions apply
wwwshirecom annual report 2013 shire plc 147
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
28 sharebased compensation plans continued
d legacy plans – principally the shire 2000 executive share option scheme 
options granted under this scheme were subject to certain performance criteria which were based on the company’s share price or 
diluted eps growth compared to a fixed growth rate at december 31 2013 all stock options outstanding under this scheme had met 
the required conditions and were exercisable 
a summary of the status of the company’s sars and stock options as at december 31 2013 and of the related transactions during 
the period then ended is presented below
year to december 31 2013
weighted 
average 
exercise  
price
£
number of 
shares
intrinsic  
value 
’m
outstanding as at beginning of period 1666 18536947  
granted 2005 6914026  
exercised 2209 8302740 
forfeited 1830 2119051 
outstanding as at end of period 1888 15029182 1439 
exercisable as at end of period 1567 3670446 469 

 
number of awards are stated in terms of ordinary share equivalents
the weighted average grant date fair value of sars and stock options granted in the year ended december 31 2013 was £337 
sars and stock options outstanding as at december 31 2013 have the following characteristics
number of awards outstanding
exercise 
prices
£
weighted 
average 
remaining 
contractual 
term years
weighted 
average 
exercise price 
of awards 
outstanding
£
number of 
awards 
exercisable
weighted 
average 
exercise price 
of awards 
exercisable
104658 338700 11 556 104658 556 
810822 7011400 28 1127 804402 1125 
14113702 14012800 49 1807 2761386 1734 
15029182    3670446 

 
number of awards are stated in terms of ordinary share equivalents
148 shire plc annual report 2013 wwwshirecom 28 sharebased compensation plans continued
performance shares
portfolio share plan – part b
performance share awards granted to executive directors under the portfolio share plan – part b are exercisable subject to certain 
market performance and service criteria 
in respect of any award granted to executive directors the performance criteria are based on nongaap ebitda and adjusted 
roic targets
awards granted to employees below executive director level are not subject to performance conditions and are only subject to 
service conditions
a summary of the status of the company’s performance share awards as at december 31 2013 and of the related transactions 
during the period then ended is presented below
performance share awards
number of 
shares
aggregate 
intrinsic  
value  
£’m
weighted 
average 
remaining life
outstanding as at beginning of period 3518138   
granted 1508631   
exercised 1826648  
forfeited 498822  
outstanding as at end of period 2701299 769 55 
exercisable as at end of period – na na
 number of awards are stated in terms of ordinary share equivalents
the weightedaverage grant date fair value of performance share awards granted in the year to december 31 2013 is £1971
exercises of employee sharebased awards
the total intrinsic values of sharebased awards exercised for the years to december 31 2013 2012 and 2011 were 2983 million 
2241 million and 1893 million respectively the total cash received from employees as a result of employee share option exercises 
for the period to december 31 2013 2012 and 2011 was approximately 17 2 million 162 million and 134 million respectively in 
connection with these exercises the tax benefit credited to additional paidin capital for the years to december 31 2013 2012 and 
2011 was 119 million 401 million and 294 million respectively
the company will settle future employee share award exercises with either newly listed common shares or with shares held in the 
ebt the number of shares to be purchased by the ebt during 2013 will be dependent on the number of employee share awards 
granted and exercised during the year and shire plc’s share price at december 31 2013 the ebt held 24 million ordinary shares 
and 04 million adss
wwwshirecom annual report 2013 shire plc 149
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
28 sharebased compensation plans continued
valuation methodologies
the company estimates the fair value of its sharebased awards using a blackscholes valuation model key input assumptions used 
to estimate the fair value of share–based awards include the grant price of the award the expected stockbased award term volatility 
of the company’s share price the riskfree rate and the company’s dividend yield the company believes that the valuation 
technique and the approach utilized to develop the underlying assumptions are appropriate in estimating the fair values of shire’s 
stockbased awards estimates of fair value are not intended to predict actual future events or the value ultimately realized by 
employees who receive equity awards and subsequent events are not indicative of the reasonableness of the original estimates of 
fair value made by the company under guidance issued by the fasb on sharebased payment transactions
the fair value of share awards granted was estimated using the following assumptions
period ended december 31
2013
 ’m 
2012
’m
riskfree interest rate
1
0109 021
expected dividend yield 0406 006
expected life 14 years 14 years
volatility 2326 2432
forfeiture rate 59 57
1 
risk free interest rate is
 
for uk and us grants
the following assumptions were used to value sharebased awards
• riskfree interest rate – for awards granted over adss the us federal reserve treasury constant maturities rate with a term 
consistent with the expected life of the award is used for awards granted over ordinary shares the yield on uk government 
bonds with a term consistent with the expected life of the award is used
• expected dividend yield – measured as the average annualized dividend estimated to be paid by the company over the expected 
life of the award as a percentage of the share price at the grant date
• expected life – estimated based on the contractual term of the awards and the effects of employees’ expected exercise and 
postvesting employment termination behaviour 
• expected volatility – measured using historical daily price changes of the company’s share price over the respective expected life of 
the sharebased awards at the date of the award and
• the forfeiture rate is estimated using historical trends of the number of awards forfeited prior to vesting
150 shire plc annual report 2013 wwwshirecom 29 principal subsidiaries as at december 31 2013
subsidiaryundertaking jurisdiction of incorporation
3829359 canada inc canada
advanced biohealing corp us
ferrokin biosciences inc united states
jerini holding limited malta
jerini ophthalmic holding gmbh germany
jerini ophthalmic inc united states
jerini trading limited malta
jpt peptide technologies inc united states
lotus tissue repair inc us
monmouth pharmaceuticals limited united kingdom
movetis gmbh germany
movetis limited united kingdom
pharma international insurance limited ireland
rybar laboratories limited united kingdom 
premacure ab luxembourgsweden
premacure uppsala ab sweden 
sarcode bioscience inc us
shgt executive services inc united states
shire shanghai pharmaceuticals consultancy co ltd china
shire 2005 investments limited cayman islands
shire acquisition inc canada
shire australia pty limited australia
shire belgium bvba belgium
shire biopharmaceuticals holdings united kingdom
shire biopharmaceuticals holdings ireland limited jersey
shire biopharmaceuticals ireland limited ireland
shire brandywine llc united states
shire canada inc canada
shire colombia sas colombia 
shire czech sro czech republic 
shire denmark aps denmark
shire deutschland gmbh germany
shire deutschland investments gmbh germany
shire development llc united states
shire europe finance united kingdom
shire europe limited united kingdom
shire executive services llc united states
shire farmacêutica brasil ltda brazil
shire finance limited cayman islands
shire finland oy finland 
shire france sa france
shire global finance united kingdom
shire gmbh germany
shire hellas pharmaceuticals import export and marketing sa greece
wwwshirecom annual report 2013 shire plc 151
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
29 principal subsidiaries as at december 31 2013 continued
subsidiaryundertaking jurisdiction of incorporation
shire holdings europe bv netherlands
shire holdings europe limited united kingdom
shire holdings europe no2 sarl luxembourg
shire holdings ireland ireland
shire holdings ireland no2 limited ireland
shire holdings limited bermuda
shire holdings luxembourg sa rl luxembourg
shire holdings uk canada limited united kingdom
shire holdings uk limited united kingdom
shire holdings us ag united states
shire human genetic therapies canada inc canada
shire human genetic therapies ab sweden
shire human genetic therapies limited united kingdom
shire human genetic therapies sa argentina
shire human genetic therapies securities corporation united states
shire human genetic therapies uk limited united kingdom
shire human genetic therapies inc united states
shire incorporated united states
shire intellectual property 2 srl barbados
shire intellectual property ireland limited ireland
shire intellectual property srl barbados
shire international gmbh switzerland
shire international licensing bv netherlands
shire investement inc united states
shire investments  finance uk company united kingdom
shire ip services corporation canada
shire ireland finance limited ireland
shire italia spa italy
shire ireland investement limited ireland
shire ireland premacure investment ireland
shire japan kk japan
shire jersey limited jersey
shire llc united states
shire luxembourg finance sarl luxembourg
shire luxembourg intellectual property no2 sa rl luxembourg
shire luxembourg intellectual property no3 sarl luxembourg
shire luxembourg intellectual property sa rl luxembourg
shire luxembourg sa rl luxembourg
shiremovetis nv belgium 
shire north america group inc united states
shire norway as norway
shire orphan therapies gmbh germany 
shire orphan therapies inc united states 
shire orphan and rare diseases gmbh switzerland
shire pharma korea yuhan hoesa korea
152 shire plc annual report 2013 wwwshirecom subsidiaryundertaking jurisdiction of incorporation
shire pharmaceutical contracts limited united kingdom
shire pharmaceutical development limited united kingdom
shire pharmaceutical development inc united states
shire pharmaceutical holdings ireland limited ireland
shire pharmaceutical investment holdings limited malta
shire pharmaceutical investment limited malta
shire pharmaceutical investment trading ireland ireland
shire pharmaceutical investments 2008 ireland
shire pharmaceuticals group united kingdom
shire pharmaceuticals iberica sl spain
shire pharmaceuticals international ireland
shire pharmaceuticals investments british virgin islands limited virgin islands british
shire pharmaceuticals investments 2007 ireland
shire pharmaceuticals ireland limited ireland
shire pharmaceuticals limited united kingdom
shire pharmaceuticals llc united states 
shire pharmaceuticals mexico sa de cv mexico
shire pharmaceuticals portugal lda portugal
shire pharmaceuticals services limited united kingdom
shire pharmaceuticals trading limited company turkey
shire polska sp z o o poland
shire properties us united states
shire regulatory inc united states
shire regenerative medicine inc united states
shire rus limited liability company russia
shire supplies us llc united states
shire sinagpore pte ltd singapore
shire sweden ab sweden
shire sweden holdings sarl sweden
shire uk investments limited united kingdom
shire us holdings inc united states 
shire us investments united kingdom
shire us manufacturing inc united states
shire us inc united states
sparkleflame limited united kingdom
tanaud international bv netherlands
tanaud ireland inc ireland
the endocrine centre limited united kingdom
tkt argentina srl argentina
venus newco inc united states
all subsidiary undertakings of shire plc are beneficially owned directly or indirectly as to 100 and are all consolidated in the 
consolidated financial statements of shire plc
29 principal subsidiaries as at december 31 2013 continued
wwwshirecom annual report 2013 shire plc 153
strategic report governance financial statements other information notes to the consolidated financial statements 
continued
30 auditor remuneration
the audit compliance  risk committee reviews the scope and results of the audit and nonaudit services including tax advisory 
and compliance services provided by the company’s independent registered public accountants deloitte llp  and the cost 
effectiveness and the independence and objectivity of the registered public accountants in recognition of the importance of 
maintaining the independence of deloitte llp  a process for preapproval has been in place since july 1 2002 and has continued 
through to the end of the period covered by this annual report
the following table provides an analysis of the amount paid to the company’s independent registered public accountants deloitte 
llp  all fees having been preapproved by the audit compliance  risk committee 
year to december 31
2013
’m 
2012
’m
audit of the company 35 25
audit of the company’s subsidiaries 05 05
total audit fee
1
40 30
tax compliance services ie related to assistance with corporate tax returns 02 02
total services relating to taxation
2
02 02
other nonaudit services
3
04 03
total nonaudit services 06 05
total fees 46 35
1 
audit fees consisted of audit work only the independent registered public accountant can reasonably be expected to perform such as statutory audits
2 
tax fees consisted principally of assistance with matters related to compliance planning and advice in various tax jurisdictions
3 
other nonaudit services consist of work generally only the independent registered public accountant can reasonably be expected to perform such as procedures 
relating to regulatory filings
154 shire plc annual report 2013 wwwshirecom 31 aggregate directors’ remuneration
the following table gives details of the aggregate remuneration paid to executive directors and nonexecutive directors including the 
value of the exercise of options sar awards and vesting of psa awards
year to december 31
2013
’000 
2012
’000
emoluments 7343 5595
money purchase pension contributions 505 571
subtotal of annual emoluments 7848 6166
other income arising from releaseexercise of long term incentives
1
gains on exercise of share options and sar awards and release of psa awards 10481 20447
gains on the release of eaip awards 1447 1515
total emoluments and other income arising from long term incentives
2
19776 28128
1 
includes the value of shares that were released under long term plans and gains realised in these years
2 
for the purpose of this table amounts denominated in pounds sterling have been converted to us dollar amounts at the average exchange rate for the year ended 
december 31 2013 of £115643 and for 2012 of £115869
wwwshirecom annual report 2013 shire plc 155
strategic report governance financial statements other information  working together as one 
• in 2013 we reorganized the company to form a simpler more cohesive and streamlined 
organization – one shire
• we now have four marketfocused business units and a single innovationdriven rd 
organization supported by unified global corporate functions
• significant cost savings have come from creating one shire
• we have also been able to streamline decision making and improve our commercial 
excellence which has underpinned accelerated growth
• our unified way of working comes to life through our employees who together form one 
shire their great contributions and unwavering commitment to meeting the needs of our 
patients make all the difference
we know that we have to always embrace 
change to stay ahead and deliver our growth 
ambitions 
 annual report 2013 shire plc 157
strategic report governance financial statements other information other financial information
quarterly results of operations unaudited 
the following tables reconcile previously reported data with current year quarterly data which has been updated for discontinued 
operations related to the dermagraft business see note 9 for further details
 first quarter of 2013 second quarter of 2013
previously
reported
’m
adjusted for
dermagraft
’m
as
reported
’m
previously
reported
’m
adjusted for
dermagraft
’m
as
reported
’m
total revenues 11619 185 11434 12745 223 12522 
cost of product sales 1559 85 1474 1757 114 1643 
income from continuing operations net of taxes 648 2162 2810 2581 328 2909 
loss from discontinued operations net of taxes – 2162 2162 – 328 328
net incomeloss 648  – 648 2581  – 2581 
earnings per ordinary share – basic      
earnings from continuing operations 117c 393c 510c 469c 60c 529c
loss from discontinued operations – 393c 393c – 60c 60c
earnings per share – basic 117c – 117 469c – 469c
earnings per ordinary share – diluted      
earnings from continuing operations 117 367c 490c 453c 56c 509c
loss from discontinued operations – 367c 367c – 56c 56c
earnings per share – diluted 117  – 123c 453c – 453c
 third quarter of 2013 fourth quarter of 2013
previously
reported
’m
adjusted for
dermagraft
’m
as
reported
’m
previously
reported
’m
adjusted for
dermagraft
’m
as
reported
’m
total revenues 12366 239 12127 13511 251 13260 
cost of product sales 1971 166 1805 1965 179 1786 
income from continuing operations net of taxes 2782 229 3011 640 4826 5466 
loss from discontinued operations net of taxes – 229 229 – 4826 4826
net income 2782  – 2782 640 – 640 
earnings per ordinary share – basic      
earnings from continuing operations 507c 42c 549c 115c 865c 980c
loss from discontinued operations – 42c 42c – 865c 865c
earnings per share – basic 507c – 507c 115c – 115c
earnings per ordinary share – diluted      
earnings from continuing operations 488c 39c 527c 117c 817c 934c
loss from discontinued operations – 39c 39c – 817c 817c
earnings per share – diluted 488c – 488c 117c – 117c
158 shire plc annual report 2013 wwwshirecom  
 
 first quarter of 2012 second quarter of 2012
previously
reported
’m
adjusted for
dermagraft
’m
as
reported
’m
previously
reported
’m
adjusted for
dermagraft
’m
as
reported
’m
total revenues 11718 488 11230 12078 524 11554 
cost of product sales 1584 100 1484 1525 170 1355 
income from continuing operations net of taxes 2384 74 2458 2378 107 2485 
loss from discontinued operations net of taxes – 74 74 – 107 107
net income 2384 – 2384 2378 – 2378 
earnings per ordinary share – basic      
earnings from continuing operations 431c 13c 444c 427c 19c 446c
loss from discontinued operations – 13c 13c – 19c 19c
earnings per share – basic 431c – 431c 427c – 427c
earnings per ordinary share – diluted      
earnings from continuing operations 414c 13c 427c 413c 18c 431c
loss from discontinued operations – 13c 13c – 18c 18c
earnings per share – diluted 414c – 414c 413c – 413c
 third quarter of 2012 fourth quarter of 2012
previously
reported
’m
adjusted for
dermagraft
’m
as
reported
’m
previously
reported
’m
adjusted for
dermagraft
’m
as
reported
’m
total revenues 11004 337 10667 12012 189 11823 
cost of product sales 1679 160 1519 1666 166 1500 
income from continuing operations net of taxes 2272 162 2434 420 260 680 
loss from discontinued operations net of taxes – 162 162 – 260 260
net income 2272 – 2272 420  – 420 
earnings per ordinary share – basic      
earnings from continuing operations 409c 29c 438c 75c 47c 122c
loss from discontinued operations – 29c 29c – 47c 47c
earnings per share – basic 409c – 409c 75c – 75c
earnings per share – diluted
earnings from continuing operations 396c 27c 423c 74c 47c 121c
loss from discontinued operations – 27c 27c – 47c 47c
earnings per share – diluted 396c – 396c 74c – 74c
wwwshirecom annual report 2013 shire plc 159
strategic report governance financial statements other information other financial information
continued
non gaap measures
non gaap financial measures are used by the company’s management to make operating decisions because they facilitate internal 
comparisons of the company’s performance to historical results and to competitors’ results the company’s remuneration 
committee uses certain key non gaap measures when assessing the performance and compensation of employees including 
shire’s executive directors
the non gaap measures are presented in this annual report as the company’s management believe that they will provide investors 
with a means of evaluating and an understanding of how shire’s management evaluates shire’s performance and results on a 
comparable basis that is not otherwise apparent on a us gaap basis since many nonrecurring infrequent or noncash items that 
shire’s management believe are not indicative of the core performance of the business may not be excluded when preparing financial 
measures under us gaap  
these non gaap measures should not be considered in isolation from as substitutes for or superior to financial measures prepared 
in accordance with us gaap 
where applicable the following items including their tax effect have been excluded from both 2013 and 2012 non gaap earnings
amortization and asset impairments
• intangible asset amortization and impairment charges and
• other than temporary impairment of investments
acquisitions and integration activities
• upfront payments and milestones in respect of inlicensed and acquired products
• costs associated with acquisitions including transaction costs fair value adjustments on contingent consideration and acquired 
inventory 
• costs associated with the integration of companies and
• noncontrolling interests in consolidated variable interest entities
divestments reorganizations and discontinued operations
• gains and losses on the sale of noncore assets
• costs associated with restructuring and reorganization activities
• termination costs and
• incomelosses from discontinued operations
legal and litigation costs
• net legal costs related to the settlement of litigation government investigations and other disputes excluding internal legal team 
costs
depreciation which is included in cost of product sales rd and sga costs in our us gaap results has been separately 
disclosed for the presentation of 2013 and 2012 non gaap earnings 
cash generation represents net cash provided by operating activities excluding upfront and milestone payments for inlicensed and 
acquired products tax and interest payments
free cashflow represents net cash provided by operating activities excluding upfront and milestone payments for inlicensed and 
acquired products but including capital expenditure in the ordinary course of business
non gaap adjusted roic aims to measure true underlying economic performance of the group by making a number of 
adjustments to roic as derived from shire’s non gaap financial results including
• adding back to non gaap operating income all rd expenses and operating lease costs incurred in the period
• capitalizing on the group’s balance sheet historic cumulative rd iprd intangible asset impairment charges and operating lease 
costs which previously have been expensed
• deducting from non gaap operating income an amortization charge for the above capitalized costs based on the estimated 
commercial lives of the relevant products 
• excluding the income statement and balance sheet impact of nonoperating assets such as surplus cash and nonstrategic 
investments and
• taxing the resulting adjusted operating income at the underlying non gaap tax rate
non gaap ebitda represents non gaap operating income before depreciation
160 shire plc annual report 2013 wwwshirecom the following table reconciles us gaap net income to non gaap ebitda
for the year 
ended 
december 31 
2013 
’m
for the year 
ended 
december 31 
2012 
’m
  
growth 
us gaap net income 6651 7454 123
deductadd back
loss from discontinued operations net of tax 7545 603
equity in earnings of equity method investees net of taxes 39 10
income taxes 2779 2031
other expense net 39 22
interest expense 381 382
interest income 21 30
us gaap operating income from continuing operations 17335 10452
amortization 1520 1536
depreciation 1276 1090
asset impairments 270 1979
integration and acquisition costs 1341 365
divestments reorganizations and discontinued operations 723 181
legal and litigation costs 90 941
non gaap ebitda 19873 16182 23
depreciation 1276 1090
non gaap operating income from continuing operations 18597 15092
wwwshirecom annual report 2013 shire plc 161
strategic report governance financial statements other information other financial information
continued
unaudited results for the year to december 31 2013 non gaap reconciliation
memo
us gaap adjustments
non gaap including 
dermagraft operations
year to december 31 2013 m
a
m
b
m
c
m
d
m
e
m
non 
gaap
dermagraft 
operations total
product sales 47575 – – – – – 47575 898 48473 
royalties 1537 – – – – – 1537 – 1537 
other revenues 231 – – – – – 231 – 231 
total revenues 49343 – – – – – 49343 898 50241 
costs and expenses
cost of product sales 6708 – – – – 375 6333 512 6845 
rd 9334 199 – – – 233 8902 127 9029 
sga 16513 1520 – – 90 668 14235 1247 15482 
goodwill impairment charge 71 71 – – – – – – – 
gain on sale of product rights 159 – – 159 – – – – – 
reorganization costs 882 – – 882 – – – – – 
integration and acquisition costs 1341 – 1341 – – – – – – 
depreciation – – – – – 1276 1276 56 1332 
total operating expenses 32008 1790 1341 723 90 – 30746 1942 32688 
operating income 17335 1790 1341 723 90 – 18597 1044 17553 
interest income 21 – – – – – 21 – 21 
interest expense 381 – – – – – 381 06 375
other expense net 39 – – – – – 39 37 02
total other expense net 399 – – – – – 399 43 356
income from continuing operations before 
income taxes and equity in earnings of 
equity method investees 16936 1790 1341 723 90 – 18198 1001 17197 
income taxes 2779 428 43 172 33 – 3455 417 3038
equity in earnings of equity method 
investees net of tax 39 – – – – – 39 – 39 
income from continuing operations 14196 1362 1384 551 57 – 14782 584 14198 
loss from discontinued operations  
net of tax 7545 – – 7545 – – – – – 
net income 6651 1362 1384 8096 57 – 14782 584 14198 
impact of convertible debt net of tax 283 – – – – – 283 – 283 
numerator for diluted eps 6934 1362 1384 8096 57 – 15065 584 14481 
weighted average number of shares 
millions – diluted 5903 – – – – – 5903 – 5903 
diluted earnings per ads 3525c 692c 703c 4113c 29c – 7656c 297c 7359c
diluted earnings per ads from  
continuing operations 7359c 692c 703c 279c 29c – 7656c 297c 7359c
the following items are included in adjustments
a amortization and asset impairments impairment of iprd intangible assets acquired with movetis 199 million impairment of goodwill relating to 
shire’s regenerative medicine business relating to the continuing operations 71 million amortization of intangible assets relating to intellectual 
property rights acquired 1520 million and tax effect of adjustments
b acquisitions and integration activities costs primarily associated with acquisition of viropharma sarcode and lotus 250 million net credit 
related to the change in fair values of contingent consideration liabilities 1591 million and tax effect of adjustments
c divestments reorganizations and discontinued operations remeasurement of daytrana contingent consideration to higher fair value 159 
million costs relating to the one shire reorganization announced at q1 2013 646 million and the collective dismissal and closure of shire’s facility at 
turnhout belgium 236 million tax effect of adjustments and loss from discontinued operations net of tax 7545 million 
d legal and litigation costs costs related to litigation government investigations other disputes and external legal costs 90 million and tax effect of 
adjustments and
e depreciation reclassification depreciation of 1276 million included in cost of product sales rd and sga for us gaap separately disclosed for 
the presentation of non gaap earnings
162 shire plc annual report 2013 wwwshirecom unaudited results for the year to december 31 2012 non gaap reconciliation
memo
us gaap adjustments
non gaap including 
dermagraft operations
year to december 31 2012 m
a
m
b
m
c
m
d
m
e
m
non 
gaap
dermagraft 
operations total
product sales 42529 – – – – – 42529 1538 44067 
royalties 2416 – – – – – 2416 – 2416 
other revenues 329 – – – – – 329 – 329 
total revenues 45274 – – – – – 45274 1538 46812 
costs and expenses         
cost of product sales 5858 – – – – 290 5568 571 6139 
rd 9530 712 230 – – 225 8363 125 8488 
sga 19480 2803 – – 941 575 15161 1147 16308 
gain on sale of product rights 181 – – 181 – – – – – 
integration and acquisition costs 135 – 135 – – – – – – 
depreciation – – – – – 1090 1090 48 1138 
total operating expenses 34822 3515 365 181 941 – 30182 1891 32073 
operating income 10452 3515 365 181 941 – 15092 353 14739 
interest income 30 – – – – – 30 01 31 
interest expense 382 – – – – – 382 – 382
other expense net 22 40 – – – – 18 05 13 
total other expense net 374 40 – – – – 334 04 338
income from continuing operations before 
income taxes and equity in earnings of 
equity method investees 10078 3555 365 181 941 – 14758 357 14401 
income taxes 2031 450 57 – 253 – 2791 144 2647
equity in earnings of equity method 
investees net of tax 10 – – – – – 10 – 10 
income from continuing operations 8057 3105 308 181 688 – 11977 213 11764 
loss from discontinued operations  
net of tax 603 – – 603 – – – – – 
net income 7454 3105 308 422 688 – 11977 213 11764 
impact of convertible debt net of tax 313 – – – – – 313 – 313 
numerator for diluted eps 7767 3105 308 422 688 – 12290 213 12077 
weighted average number of shares 
millions – diluted 5935 – – – – – 5935 – 5935 
diluted earnings per ads 3927c 1567c 155c 213c 348c – 6210c 108c 6105c
diluted earnings per ads from  
continuing operations 4230c 1567c 155c 90c 348c – 6210c 108c 6105c
the following items are included in adjustments
a amortization and asset impairments impairment of iprd intangible assets for resolor in the eu 712 million impairment charges of 
intellectual property rights acquired for resolor in the eu 1267 million amortization of intangible assets relating to intellectual property rights 
acquired 1536 million impairment of available for sale securities 40 million and tax effect of adjustments
b acquisitions and integration activities upfront payments made to sangamo biosciences inc and for the acquisition of the us rights to 
prucalopride marketed in certain countries in europe as resolor 230 million costs primarily associated with the acquisition of ferrokin 43 
million charges related to the change in fair values of contingent consideration liabilities 92 million and tax effect of adjustments
c divestments reorganizations and discontinued operations remeasurement of daytrana contingent consideration to fair value 181 million 
tax effect of adjustments and loss from discontinued operations net of tax 603 million 
d legal and litigation costs costs related to litigation government investigations other disputes and external legal costs 941 million and tax effect 
of adjustments and
e depreciation reclassification depreciation of 1090 million included in cost of product sales rd and sga for us gaap separately disclosed for 
the presentation of non gaap earnings
wwwshirecom annual report 2013 shire plc 163
strategic report governance financial statements other information shareholder information
ecommunications
shire offers shareholders the ability to access shareholder 
documents such as its annual reports and notices of agms 
by way of ecommunications as an alternative to receiving 
paper copies through the post
to register for ecommunications simply log onto  
wwwshareviewcoukmyportfolio and follow the online 
instructions to start you will require your shareholder reference 
number which you will find on your share certificate or dividend 
tax voucher following registration you will need to alter your 
mailing preference to ecommunications and confirm your  
email address
shareholders who do not elect to receive documents or 
notifications via ecommunications will continue to receive paper 
copies
shareholder security
many companies have become aware that their shareholders 
have received unsolicited phone calls or correspondence 
concerning investment matters these are typically from overseas 
based ‘brokers’ who target uk shareholders offering to sell them 
what often turn out to be worthless or high risk shares in us or 
uk investments
shareholders are advised to be very wary of any unsolicited 
advice offers to buy shares at a discount or offers of free 
company reports if you receive any unsolicited investment 
advice
• make sure you get the name of the person and organization
• check that they are properly authorized by the fsa before 
getting involved by visiting wwwfsagovukregister and
• report the matter to the fsa either by calling 0845 606 1234 or 
by completing an online form at wwwfsagovukpagesdoing
regulatedlawalertsformshtml
if you deal with an unauthorized firm you will not be eligible to 
receive payment under the financial services compensation 
scheme
details of any share dealing facilities that the company endorses 
will be included in company mailings
more detailed information on this or similar activity can be found 
on the fsa website wwwfsagovukconsumerinformation
scamsandswindles
this warning has been issued by the financial services authority 
and endorsed by the institute of chartered secretaries and 
administrators
financial calendar
second interim dividend payment april 2014
annual general meeting april 2014
first quarter results’ announcement may 2014
second quarter results’ announcement july 2014
first interim dividend payment october 2014
third quarter results’ announcement october 2014
annual results’ announcement february 2015
second interim dividend payment april 2015
dividends
shareholders are able to choose how they receive their 
dividends
• directly into their bank account or
• by cheque
 shire preferred option
the quickest and most efficient way to receive your dividends 
is to have them paid directly into your bank account those 
selecting this payment method receive a tax voucher with each 
payment to change how you receive your dividends either log 
on to wwwshareviewcoukmyportfolio or contact equiniti
income access share “ias” arrangements
shareholders who elect or are deemed to have elected to 
receive their dividends via the ias arrangements will receive their 
dividends from a uk source rather than directly from the 
company which is an irish tax resident company for uk tax 
purposes
shareholders who hold 25000 or fewer shares at the first 
dividend record date after becoming a shareholder in the 
company will be deemed to have elected to receive their 
dividends under the ias arrangements unless they elect 
otherwise
shareholders who hold more than 25000 shares and who wish 
to receive their dividends from a uk source must make an ias 
election all elections remain in force indefinitely unless revoked
unless shareholders have made an ias election or are deemed 
to have made an ias election dividends will be received from an 
irish source and will be taxed accordingly
an ias dividend election form can be found on shire’s website at 
httpwwwshirecomshireplceninvestors
shareholderinformationshareholderforms
sharegift
shareholders with a small number of shares the value of which 
makes it uneconomical to sell may wish to consider donating 
them to the charity sharegift registered charity no 1052686 
donated shares are aggregated and sold by sharegift the 
proceeds being passed on to a wide range of charities  
find out more about sharegift
website wwwsharegiftorg
email helpsharegiftorguk
tel 44 020 7930 3737
164 shire plc annual report 2013 wwwshirecom registered office
22 grenville street
st helier
je4 8px
jersey
registered in jersey no 99854
group headquarters
5 riverwalk
citywest business campus
dublin 24
republic of ireland
uk
unity place
hampshire international business park
chineham
basingstoke
hampshire
rg24 8ep
united kingdom
website
wwwshirecom
investor relations
laurie stelzer
tel 1 781 482 0733
email investorrelationsshirecom 
registrar
all administrative enquiries relating to shareholders should be 
addressed to equiniti clearly stating the registered shareholder’s 
name and address
equiniti
shire shareholder services
equiniti jersey limited
co equiniti limited
aspect house
spencer road
lancing
bn99 6da
shareholder helpline
from overseas
tel 44 0121 415 7593
in the uk
tel 0871 384 2553
 calls cost 8p per minute plus network extras
lines open 830am to 530pm monday to friday
american depositary shares
the company’s american depositary shares “adss” each 
representing three ordinary shares are listed on the nasdaq 
global select market under the symbol ‘shpg’ the company 
files reports and other documents with the securities and 
exchange commission ‘sec’ that are available for inspection 
and copying at the sec’s public reference facilities or can be 
obtained by writing to the company secretary
citibank na is the depository for shire adss all enquiries 
concerning ads records certificates or the transfer of ordinary 
shares into adss should be addressed to
citibank shareholder services
p o box 43077
providence rhode island
029403077
usa
general enquiries
toll free in us
1877citiadr 2484237
from outside the us
17815754555
email citibankshareholdersonlinecom
wwwshirecom annual report 2013 shire plc 165
strategic report governance financial statements other information shire head offices and main operating locations
ireland
group headquarters
5 riverwalk
citywest business campus
dublin 24
republic of ireland
tel 353 1 429 7700
fax 353 1 429 7701
uk
unity place
hampshire international business park
chineham
basingstoke
hampshire
rg24 8ep
united kingdom
tel 44 0 1256 894000
fax 44 0 1256 894708
switzerland
route de crassier 7
po box 2558
1262 eysins
switzerland
tel 41 22 419 4000
fax 41 22 419 4001
usa
lexington
300 shire way
lexington
massachusetts 02421
usa
tel 1 617 349 0200
fax 1 617 613 4004
chesterbrook
725 chesterbrook blvd
wayne philadelphia
190875637
usa
tel 1 484 595 8800
fax 1 484 595 8200
166 shire plc annual report 2013 wwwshirecom statements included in this release that are not historical facts are 
forwardlooking statements forwardlooking statements involve 
a number of risks and uncertainties and are subject to change at 
any time in the event such risks or uncertainties materialize 
shire’s results could be materially adversely affected the risks 
and uncertainties include but are not limited to that 
• shire’s products may not be a commercial success 
• revenues from adderall xr are subject to generic erosion 
and revenues from intuniv will become subject to generic 
competition starting in december 2014 
• the failure to obtain and maintain reimbursement or an 
adequate level of reimbursement by thirdparty payors in a 
timely manner for shire’s products may impact future revenues 
financial condition and results of operations
• shire conducts its own manufacturing operations for certain of 
its rare diseases products and is reliant on third party 
contractors to manufacture other products and to provide 
goods and services some of shire’s products or ingredients are 
only available from a single approved source for manufacture 
any disruption to the supply chain for any of shire’s products 
may result in shire being unable to continue marketing or 
developing a product or may result in shire being unable to do 
so on a commercially viable basis for some period of time
• the development approval and manufacturing of shire’s 
products is subject to extensive oversight by various regulatory 
agencies and regulatory approvals or interventions associated 
with changes to manufacturing sites ingredients or 
manufacturing processes could lead to significant delays 
increase in operating costs lost product sales an interruption of 
research activities or the delay of new product launches
• the actions of certain customers could affect shire’s ability to sell 
or market products profitably fluctuations in buying or 
distribution patterns by such customers can adversely impact 
shire’s revenues financial conditions or results of operations
• investigations or enforcement action by regulatory authorities or 
law enforcement agencies relating to shire’s activities in the 
highly regulated markets in which it operates may result in the 
distraction of senior management significant legal costs and the 
payment of substantial compensation or fines
• adverse outcomes in legal matters and other disputes including 
shire’s ability to enforce and defend patents and other 
intellectual property rights required for its business could have a 
material adverse effect on shire’s revenues financial condition 
or results of operations
• shire faces intense competition for highly qualified personnel 
from other companies academic institutions government 
entities and other organizations shire is undergoing a corporate 
reorganization and the consequent uncertainty could adversely 
impact shire’s ability to attract andor retain the highly skilled 
personnel needed for shire to meet its strategic objectives
• failure to achieve shire’s strategic objectives with respect to the 
acquisition of viropharma incorporated may adversely affect 
shire’s financial condition and results of operations
and other risks and uncertainties detailed from time to time in 
shire’s filings with the securities and exchange commission 
including those risks outlined in pages 24 to 29
cautionary statements
wwwshirecom annual report 2013 shire plc 167
strategic report governance financial statements other information shire plc
annual report and financial statements
for the year ended december 31 2013
168 shire plc annual report 2013 wwwshirecom contents page
officers and professional advisors 169
directors’ report 170
directors’ responsibilities statement 173
independent auditor’s report 174
profit and loss account 176
balance sheet 176
notes to the financial statements 177
officers and professional advisors
directors
matthew emmens 
dr flemming ornskov  
graham hetherington
dominic blakemore 
william burns 
dr steven gillis 
dr david ginsburg 
david kappler 
susan kilsby 
anne minto obe
david stout
company secretary
tatjana may
registered office
22 grenville street
st helier
je4 8px
jersey
corporate headquarters
5 riverwalk
citywest business campus
dublin 24
republic of ireland
auditor
deloitte llp
london
united kingdom
wwwshirecom annual report 2013 shire plc 169
strategic report governance financial statements other information directors’ report
the directors present their annual report and the audited financial 
statements for the year ended december 31 2013
principal activity and business review
shire plc and its subsidiaries collectively referred to as either 
“shire” or the “company” is a leading specialty 
biopharmaceutical company that focuses on developing and 
marketing innovative specialty medicines that address significant 
unmet patient needs 
the company has grown through acquisition completing a 
series of major transactions that have brought therapeutic 
geographic and pipeline growth and diversification the 
company will continue to evaluate companies products and 
pipeline opportunities that offer a good strategic fit and have the 
potential to deliver demonstrable value to all of the company’s 
stakeholders patients physicians policy makers payors 
investors and employees
the company unified its business during 2013 by integrating 
the operations of the specialty pharmaceuticals “sp” human 
genetic therapies “hgt” and regenerative medicine “rm” 
business units into a simplified “one shire” organization the 
one shire model has created a simple structure and a focused 
efficient organization that is scalable for growth 
the principal legislation under which the company operates is 
companies jersey law 1991 and regulations made thereunder 
the ordinary shares of the company are listed on the london 
stock exchange in the uk and american depositary shares 
‘ads’ representing three ordinary shares of the company 
evidenced by an american depositary receipt issued by shire’s 
depositary citibank na are listed on the nasdaq global 
select market in the usa
business review
the business review of the group can be found in the 
consolidated financial statements and annual report and 
accounts of the company for the year to december 31 2013 
prepared in accordance with united kingdom listing authority 
requirements the ‘shire annual report’ in the chairman’s 
review on pages 04 and 05 the chief executive officer’s review 
on pages 06 to 09 and the review of our business on pages 
34 to 49 the shire annual report also provides a description 
of the principal risks and uncertainties facing the company and 
the group as well as the group’s risk management objectives 
and policies that are in place to assist in mitigating the potential 
impact details of the company’s financial risks can be found 
in note n on page 184 to these financial statements
during the year the company continued in its capacity as 
the parent company for the group in the management of its 
subsidiaries
the company is tax resident in the republic of ireland
key performance indicators 
the company’s key performance indicators are the same as the 
group’s for details of the group’s key performance indicators 
see page 30 in the shire annual report
income access share arrangements
in 2008 shire put in place and continues to operate income 
access share ‘ias’ arrangements enabling shareholders to 
choose whether they receive their dividends from a company tax 
resident in the republic of ireland or from a company tax resident 
in the uk further details in respect of the ias arrangements can 
be found in the shire annual report
results and dividends
a loss on ordinary activities before taxation of 699 million was 
recorded for the year ended december 31 2013 year ended 
december 31 2012 741 million
the net assets of the company increased from 95484 million 
for the year ended december 31 2012 to 104741 million for 
the year ended december 31 2013 primarily as a result of the 
company’s 275 convertible bonds converting in the year
dividends paid and dividend policy
the company paid dividends amounting to 57 million in the 
year 2012 48 million in accordance with ias arrangements 
the company directed shire biopharmaceuticals holdings to 
pay dividends totalling 911 million 2012 815 million to 
those shareholders who choose to receive their dividends 
from a company tax resident in the uk
a first interim dividend for the six months to june 30 2013 
of 300 cents 195 pence per ordinary share equivalent to 
900 cents per ads was paid in october 2013 the board 
has resolved to pay a second interim dividend of 1693 cents 
1021 pence per ordinary share equivalent to 5079 cents 
per ads for the six months to december 31 2013
this is consistent with shire’s stated policy of paying a dividend 
semiannually set in us cents per ordinary share typically the 
first interim payment each year will be higher than the previous 
year’s first interim usd dividend dividend growth for the full year 
will be reviewed by the board when the second interim dividend 
is determined however there is no guarantee that dividends will 
be declared for any period
liquidity cash flow and going concern
the company and the group’s business activities together with 
the factors likely to affect its future development performance 
and position are set out in the shire annual report in the 
chairman’s review chief executive officer’s review and review 
of our business the financial position of the company and the 
group its cash flows liquidity position and borrowing facilities 
are described in the liquidity and capital resources section of the 
review of our business of the shire annual report the review 
of our business also includes information in respect of the 
group’s objectives policies and processes for managing capital 
its financial risk management objectives details of its hedging 
activity and its exposures to credit risk and liquidity risk details 
of the company’s financial instruments are disclosed in note n 
on page 184 to these financial statements
170 shire plc annual report 2013 wwwshirecom shire 275 convertible bonds due 2014 
on november 26 2013 shire issued an optional redemption 
notice under the trust deed dated may 9 2007 the “trust deed” 
to holders the “holders” of the company’s 275 convertible 
bonds due 2014 the “bonds” the aggregate outstanding 
principal amount of bonds on november 25 2013 the last 
practicable date prior to the date of the optional redemption 
notice was 1075070000 the last day on which bondholders 
were able to exercise their conversion rights was december 13 
2013 those bonds which were not voluntarily converted were 
redeemed by the company on december 27  2013 at par 
together with interest accrued to that date as of december 31 
2013 bonds in an aggregate principal amount of the 
1099050000 had been voluntarily converted into 33806464 
fully paid ordinary shares at a conversion price of us3251 per 
ordinary share in the capital of the company with par value of 
£005 each the remaining outstanding bonds in an aggregate 
principle amount of 950000 were redeemed pursuant to the 
optional redemption notice issued on november 26 2013 
following the redemption of all the outstanding bonds the 
company cancelled the listing of the bonds on the official list 
maintained by the uk listing authority and the admission to 
trading of the bonds on the professional securities market of the 
london stock exchange
term loan agreement
on november 11 2013 shire entered into a 260 billion facilities 
agreement with among others morgan stanley bank 
international limited acting as lead arranger and agent the 
“facilities agreement” the facilities agreement comprises two 
credit facilities i a 175 billion term loan facility and ii a 085 
billion term loan facility 
on december 13 2013 and on february 21 2014 the company 
cancelled part of the 260 billion term loan facility the revised 
facilities agreement of 175 billion now comprises two credit 
facilities i a 055 billion term loan facility and ii a 085 billion 
term loan facility all other terms and conditions remain 
unchanged
the 055 billion term loan facility which matures on november 
10 2014 may be used only to finance the purchase price payable 
in respect of shire’s acquisition of viropharma including certain 
related costs and for the redemption of shire’s bonds shire has 
the option to extend the maturity of the 055 billion term loan 
facility once by a further 364 days
the 085 billion term loan facility which matures on november 
11 2015 may be used only to finance the purchase price payable 
in respect of shire’s acquisition of viropharma including certain 
related costs
interest on any loans made under the facilities will be payable on 
the last day of each interest period which may be one week or 
one two three or six months at the election of shire or as 
otherwise agreed with the lenders the interest rate applicable to 
the 055 billion term loan facility is libor plus 075 per annum 
and increases by 025 per annum on august 11 2014 and on 
threemonth intervals thereafter
the interest rate applicable to the 085 billion term loan facility 
commenced at libor plus 115 per annum until delivery of the 
compliance certificate for the year ending december 31 2013 
and thereafter is subject to change depending upon the prevailing 
ratio of net debt to ebitda of the group each as defined in the 
facilities agreement in respect of the most recently completed 
financial year or financial half year
shire shall also pay a commitment fee on the available but 
unutilized commitments under the 055 billion term loan facility 
and the 085 billion term loan facility for the availability period 
applicable to each facility with effect from first utilization the 
commitment fee rate will be 35 of the applicable margin  
before first utilization the commitment fee rate will increase in 
stages from 0 to 35 of the applicable margin over a period  
of three months
the facilities agreement includes customary representations and 
warranties covenants and events of default including 
requirements that the ratio of net debt to ebitda of the group 
each as defined in the facilities agreement must not at any 
time exceed 351 for the relevant period as defined in the 
facilities agreement except that following certain acquisitions 
including the viropharma acquisition shire may elect to increase 
the ratio to 401 in the relevant period in which the acquisition 
was completed and the immediately following relevant period in 
addition for each 12month period ending december 31 or june 
30 the ratio of ebitda of the group to net interest each as 
defined in the facilities agreement must not be less than 401
the facilities agreement restricts subject to certain covenants 
shire’s ability to incur additional financial indebtedness grant 
security over its assets or provide or guarantee loans 
furthermore any lender may require mandatory prepayment of 
its participation if there is a change of control of shire in addition 
in certain circumstances the net proceeds of certain shares 
undertakings or business disposals by shire must be applied 
towards the mandatory prepayment of the facilities subject to 
certain exceptions
events of default under the facilities include i nonpayment of 
any amounts due under the facilities ii failure to satisfy any 
financial covenants iii material misrepresentation in any of the 
finance documents iv failure to pay or certain other defaults 
under other financial indebtedness v certain insolvency events 
or proceedings vi material adverse changes in the business 
operations assets or financial condition of shire and its 
subsidiaries vii if it becomes unlawful for shire or any of its 
subsidiaries that are parties to the facilities agreement to perform 
their obligations or viii if shire or any subsidiary of shire which is 
a party to the facilities agreement repudiates the facilities 
agreement or any other finance document among others the 
facilities agreement is governed by english law
revolving credit facilities agreement
in addition the group has committed multicurrency revolving 
and swingline facilities of 1200 million which mature in 2015 the 
“rcf” the rcf which includes a 250 million swingline facility 
may be used for general corporate purposes and matures on 
november 23 2015
going concern
the directors have a reasonable expectation that the company 
and the group has adequate resources to continue in operational 
existence for the foreseeable future accordingly the directors 
continue to adopt the going concern basis of accounting in 
preparing the financial statements further details regarding the 
adoption of the going concern basis can be found in the 
accounting policies in the notes to the financial statements
wwwshirecom annual report 2013 shire plc 171
strategic report governance financial statements other information directors
the directors who served during the year and up to the date of 
signing these financial statements are shown below
matthew emmens 
angus russell resigned april 30 2013
dr flemming ornskov appointed january 02 2013
graham hetherington 
dominic blakemore appointed january 01 2014
william burns 
dr steven gillis
dr david ginsburg 
david kappler 
susan kilsby 
anne minto obe
david stout 
purchase of own shares
during the year to december 31 2012 the company commenced 
a share buyback program for the purpose of returning funds to 
shareholders of up to 500 million through both direct purchases 
of ordinary shares and through the purchase of ordinary shares 
underlying adrs
during the year ended december 31 2013 the company made 
onmarket repurchases totaling 6191965 ordinary shares at a 
cost of 193 million excluding transaction costs the program 
covers purchases of ordinary shares for cancellation or to be 
held as treasury shares in accordance with the authority 
renewed by shareholders at the company’s agm on april 30 
2013 when the company was authorized to make market 
purchases of up to 55741587 of its own ordinary shares 
on november 11 2013 contemporaneous with shire’s 
announcement of its acquisition of viropharma the company’s 
share buyback program was terminated since the inception of 
the share buyback program the company had purchased 300 
million of ordinary shares and ordinary shares underlying adrs
payment of creditors
the company is nontrading and accordingly has no trade 
creditors
directors’ liability insurance and indemnification
in the year under review the group maintained an insurance 
policy for its directors and officers in respect of liabilities arising 
out of any act error or omission whilst acting in their capacity as 
directors or officers qualifying third party indemnity provisions 
were also in place during the year under review for the benefit of 
directors in relation to certain losses and liabilities which they may 
potentially incur to thirdparties in the course of their duties 
these remain in force at the date of this report
subsequent events
on january 16 2014 shire announced that it had sold its 
dermagraft assets to organogenesis comprising the key 
operating assets relating to the development manufacture and 
sale of the dermagraft product these assets include 
intellectual property relating to dermagraft including patents 
trademarks and knowhow regulatory filings and registrations 
relating to dermagraft certain manufacturing plant 
equipment and materials dermagraft product inventory and 
accounts receivable
auditor
each of the persons who is a director at the date of approval of 
this report confirms that
• so far as the director is aware there is no relevant audit 
information of which the company’s auditor is unaware and
• the director has taken all the steps that heshe ought to have 
taken as a director in order to make himselfherself aware of any 
relevant audit information and to establish that the company’s 
auditor is aware of that information
deloitte llp have expressed their willingness to continue in office 
as auditor and a resolution to reappoint them will be proposed at 
the forthcoming annual general meeting
approved by the board of directors and signed on its behalf by
tatjana may
company secretary
february 24 2014
directors’ report
continued
172 shire plc annual report 2013 wwwshirecom directors’ responsibilities statement 
the directors are responsible for preparing the annual report 
and the financial statements in accordance with applicable law 
and regulations
company law requires the directors to prepare financial 
statements for each financial year under that law the directors 
have elected to prepare the financial statements in accordance 
with united kingdom generally accepted accounting practice 
united kingdom accounting standards and applicable law 
under company law the directors must not approve the financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the company and of the profit or loss 
of the company for that period in preparing these financial 
statements the directors are required to
• select suitable accounting policies and then apply them 
consistently
• make judgments and accounting estimates that are reasonable 
and prudent
• state whether applicable uk accounting standards have been 
followed subject to any material departures disclosed and 
explained in the financial statements and
• prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the company will 
continue in business
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the company and enable them to ensure 
that the financial statements comply with the companies jersey 
law 1991 they are also responsible for safeguarding the assets 
of the company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the 
company’s website legislation in the united kingdom governing 
the preparation and dissemination of financial statements may 
differ from legislation in other jurisdictions 
responsibility statement 
we confirm that to the best of our knowledge
• the financial statements prepared in accordance with united 
kingdom generally accepted accounting practice give a true 
and fair view of the assets liabilities financial position and profit 
or loss of the company and the undertakings included in the 
consolidation taken as a whole
• the strategic report includes a fair review of the development 
and performance of the business and the position of the 
company and the undertakings included in the consolidation 
taken as a whole together with a description of the principal 
risks and uncertainties that they face and
• the annual report and financial statements taken as a whole are 
fair balanced and understandable and provide the information 
necessary for shareholders to assess the company’s 
performance business model and strategy
by order of the board
graham hetherington
director
february 24 2014
wwwshirecom annual report 2013 shire plc 173
strategic report governance financial statements other information independent auditor’s report to the members of shire plc 
opinion on financial statements of shire plc
in our opinion the financial statements
• give a true and fair view of the state of the company’s affairs as at 31 december 2013 and of its loss for the year then ended
• have been properly prepared in accordance with united kingdom accounting standards united kingdom generally accepted 
accounting practice
• have been prepared in accordance with the requirements of the companies jersey law 1991
the financial statements comprise the profit and loss account balance sheet and the related notes a to p  the financial reporting 
framework that has been applied in their preparation is applicable law and united kingdom accounting standards
going concern
as required by the listing rules we have reviewed the directors’ statement that the company is a going concern we confirm that we 
have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements 
is appropriate and
• we have not identified any material uncertainties that may cast significant doubt on the company’s ability to continue as a going 
concern
however because not all future events or conditions can be predicted this statement is not a guarantee as to the company’s ability 
to continue as a going concern
our assessment of risks of material misstatement
the assessed risks of material misstatement described below are those that had the greatest effect on our audit strategy 
the allocation of resources in the audit and directing the efforts of the engagement team
risk how the scope of our audit responded to the risk
investment in subsidiaries
there is a risk that the 
company’s investment in shire 
pharmaceutical holdings ireland 
limited may be impaired
we have challenged the directors’ impairment analysis and have considered the valuation of the company’s subsidiary 
against other indicators of value such as the overall market capitalisation of the shire group
our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole and 
not to express an opinion on individual accounts or disclosures our opinion on the financial statements is not modified with respect 
to any of the risks described above and we do not express an opinion on these individual matters
our application of materiality
we define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic 
decisions of a reasonably knowledgeable person would be changed or influenced we use materiality both in planning the scope of 
our audit work and in evaluating the results of our work
we determined materiality for the company to be 60 million based on the net assets of the company and then capped at 
materiality established for the shire plc group financial statements
we agreed with the audit committee that we would report to the committee all audit differences in excess of 3m as well as 
differences below that threshold that in our view warranted reporting on qualitative grounds we also report to the audit committee 
on disclosure matters that we identified when assessing the overall presentation of the financial statements
174 shire plc annual report 2013 wwwshirecom an overview of the scope of our audit 
• our audit was scoped by obtaining an understanding of the entity and its environment including internal control and assessing the 
risks of material misstatement audit work to respond to the risks of material misstatement was performed directly by the audit 
engagement team
matters on which we are required to report by exception
adequacy of explanations received and accounting records 
under the companies jersey law 1991 we are required to report to you if in our opinion
• we have not received all the information and explanations we require for our audit or
• adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited 
by us or
• the financial statements are not in agreement with the accounting records and returns
we have nothing to report in respect of these matters
our duty to read other information in the annual report
under international standards on auditing uk and ireland we are required to report to you if in our opinion information in the annual 
report is
•  materially inconsistent with the information in the audited financial statements or
• apparently materially incorrect based on or materially inconsistent with our knowledge of the company acquired in the course of 
performing our audit or
• otherwise misleading
in particular we are required to consider whether we have identified any inconsistencies between our knowledge acquired during the 
audit and the directors’ statement that they consider the annual report is fair balanced and understandable and whether the annual 
report appropriately discloses those matters that we communicated to the audit committee which we consider should have been 
disclosed we confirm that we have not identified any such inconsistencies or misleading statements
respective responsibilities of directors and auditor 
as explained more fully in the directors’ responsibilities statement the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law and international standards on auditing uk and ireland those standards 
require us to comply with the auditing practices board’s ethical standards for auditors
this report is made solely to the company’s members as a body in accordance with article 113a of the companies jersey law 
1991 our audit work has been undertaken so that we might state to the company’s members those matters we are required to 
state to them in an auditor’s report and for no other purpose to the fullest extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the company’s members as a body for our audit work for this report or for 
the opinions we have formed
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied 
and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall presentation 
of the financial statements in addition we read all the financial and nonfinancial information in the annual report to identify material 
inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on 
or materially inconsistent with the knowledge acquired by us in the course of performing the audit if we become aware of any 
apparent material misstatements or inconsistencies we consider the implications for our report
james bates
senior statutory auditor
for and on behalf of deloitte llp
chartered accountants and statutory auditor
london
february 24 2014
wwwshirecom annual report 2013 shire plc 175
strategic report governance financial statements other information financial statements
profit and loss account 
for the year ended december 31 2013
note
2013
’m
2012
’m
administrative expenses 346 285
operating loss c 346 285
interest payable and similar charges d 353 456
loss on ordinary activities before taxation 699 741
tax on loss on ordinary activities e – –
loss on ordinary activities after taxation 699 741
all activities of the company relate to continuing operations
there are no recognized gains and losses other than those stated above accordingly no statement of total recognized gains and 
losses has been presented
balance sheet
as at december 31 2013
note
2013
’m
2012
’m
fixed assets
investment in subsidiaries g 110449 109722
current assets
debtors h 532 291
current liabilities
creditors amounts falling due within one year i 6240 3529
net current liabilities 5708 3238
total assets less current liabilities 104741 106484
creditors amounts falling due after more than one year j – 11000
net assets 104741 95484
capital and reserves
called–up share capital k 585 557
share premium account l 70567 59419
equity component of convertible bonds l – 432
other reserve l 4183 3024
profit and loss account l 32407 33117
treasury shares m 3001 1065
shareholders’ funds l 104741 95484
the financial statements of the company were approved by the board of directors and authorized for issue on february 24 2014 
they were signed on its behalf by 
graham hetherington
director
176 shire plc annual report 2013 wwwshirecom a presentation of the financial statements
preparation of financial statements
these separate financial statements of the company are 
prepared in accordance with united kingdom generally 
accepted accounting practice ‘uk gaap’ as at december 31 
2013 and in accordance with the requirements of companies 
jersey law 1991 they have been prepared under the historical 
cost convention except for the revaluation of certain financial 
instruments at fair value as permitted by the companies jersey 
law 1991 and in accordance with applicable united kingdom 
accounting standards
consolidated accounts prepared in conformity with accounting 
principles generally accepted in the united states of america ‘us 
gaap’ in which the financial results and cash flow statement of 
the company and its subsidiaries are included can be found in 
the shire annual report
these financial statements have been prepared in accordance 
with the company’s accounting policies described below which 
have been applied consistently throughout the current and 
preceding year and have been approved by the board
b accounting policies
going liquidity cash flow and going concern
the group’s balance sheet includes 22394 million of cash and 
cash equivalents at december 31 2013 the group has 
committed multicurrency revolving and swingline facilities of 
120 billion which mature in 2015 and a 175 billion facilities 
agreement
the directors have a reasonable expectation that the company 
and the group have adequate resources to continue in 
operational existence for the foreseeable future accordingly the 
directors continue to adopt the going concern basis of 
accounting in preparing the report and financial statements
investments
investments held as fixed assets are stated at historic cost less 
any provision for impairment
dividends paid and received
dividend distributions to the company’s shareholders are 
recognized as a liability in the company’s financial statements  
in the period in which the shareholders’ right to receive payment 
is established dividend income is recognized in the profit and 
loss account on the date the company’s right to receive payment 
is established
expenditure
expenditure is recognized in respect of goods and services 
received when supplied in accordance with contractual terms 
provision is made when an obligation exists for a future liability in 
respect of a past event and where the amount of the obligation 
can be reliably estimated
local currency and currency translation
the financial statements have been presented in local currency 
us dollar the local currency is defined as the currency of the 
primary economic environment in which the company operates
transactions in foreign currencies are recorded at the rate of 
exchange ruling at the date of the transaction monetary assets 
and liabilities denominated in foreign currencies at the balance 
sheet dates are reported at the rate of exchange prevailing at that 
date nonmonetary items that are measured at historical cost in 
a foreign currency are not retranslated
sharebased compensation
the company operates equitysettled sharebased 
compensation plans the fair value of the employee services 
received in exchange for the grant of the options has been valued 
using optionpricing models options and performance share 
awards granted without market conditions are valued using the 
blackscholes optionpricing model options and performance 
share awards granted with market conditions are valued using a 
binomial model in accordance with frs 20 ‘sharebased 
payment’ the resulting cost for the company’s employees is 
recognized as an expense on a straightline basis over the vesting 
period of the awards the value of the charge is adjusted to 
reflect expected and actual levels of vesting the cost for awards 
granted to the company’s subsidiaries’ employees represents 
additional capital contributions by the company in its 
subsidiaries an additional investment in subsidiaries has been 
recorded in respect of those awards granted to the company’s 
subsidiaries’ employees with a corresponding increase in the 
company’s shareholders’ equity the additional capital 
contribution is based on the fair value at the grant date of the 
awards issued this accounting treatment applies as the parent 
has granted the share option rather than being subsidiary 
granting an option in the parent’s equity 
financial liabilities and equity
financial liabilities and equity instruments are classified  
according to the substance of the contractual arrangements 
entered into an equity instrument is any contract that evidences 
a residual interest in the assets of the company after deducting 
all of its liabilities
notes to the financial statements
for the year ended december 31  2013
wwwshirecom annual report 2013 shire plc 177
strategic report governance financial statements other information notes to the financial statements
for the year ended december 31  2013
continued
b accounting policies continued
taxation
current tax is provided at amounts expected to be paid or 
recovered using the tax rates and laws that have been enacted or 
substantively enacted by the balance sheet date
deferred tax is recognized in respect of all timing differences that 
have originated but not reversed at the balance sheet date where 
transactions or events that result in an obligation to pay more tax 
in the future or a right to pay less tax in the future have occurred 
at the balance sheet date timing differences are differences 
between the company’s taxable profits and its results as stated 
in the financial statements that arise from the inclusion of gains 
and losses in tax assessments in periods different from those in 
which they are recognized in the financial statements
a net deferred tax asset is regarded as recoverable and therefore 
recognized only when on the basis of all available evidence it 
can be regarded as more likely than not that there will be suitable 
taxable profits from which the future reversal of the underlying 
timing differences can be deducted
deferred tax is measured at the rates that are expected to apply 
in the periods in which the timing differences are expected to 
reverse based on tax rates and laws that have been enacted or 
substantively enacted by the balance sheet date deferred tax 
balances are not discounted
related party transactions
under the provisions of frs 8 ‘related party disclosures’ as the 
consolidated financial statements in which the company’s results 
are included have been made available to the public the 
company is not required to separately disclose details of related 
party transactions with relation to wholly owned subsidiaries 
pensions
the company contributes to personal defined contribution 
pension plans of employees contributions are charged to the 
profit and loss account as they become payable differences 
between contributions payable in the year and contributions 
actually paid are shown as either accruals or prepayments in the 
balance sheet
convertible bonds
on issuance or substitution from other shire group companies 
of convertible bonds the company bifurcates these convertible 
bonds into their debt and equity components the fair value of 
the debt component is estimated using the market interest rate 
for an equivalent nonconvertible bond if the fair value of an 
equivalent nonconvertible bond is greater than the carrying value 
of convertible bond then the limit of the carrying value of 
convertible bond allocated to the liabilities is that carrying value 
the amount allocated to the debt component is classified as a 
liability and subsequently measured on an amortized cost basis 
until extinguished on conversion or redemption of the bonds the 
remainder of the proceeds from the issuance or the fair value on 
substitution from other shire group companies of convertible 
bonds is allocated to the equity component which represents 
the embedded conversion option and is classified in 
shareholders’ equity net of any income tax effects the carrying 
amount of the equity component is not remeasured in 
subsequent periods on conversion the equity component has 
been reclassified to other reserves in line with the requirements 
of frs25 ‘financial instruments presentation’
treasury shares
where the company purchases the company’s own share 
capital the consideration paid is deducted from the total 
shareholders’ funds and classified as treasury shares until they 
are cancelled where such shares are subsequently sold or 
reissued any consideration received is included in total 
shareholders funds 
where the company enters a financial close or other prohibited 
period and broker contracts cannot be cancelled in this period a 
liability equivalent to the present value of the maximum number of 
shares available to purchase is debited against total equity 
accretion of the discount is recorded in the profit and loss during 
the close period shares purchased in the close period are 
deducted from the liability and are recorded as treasury shares 
with any remaining liability on leaving the close period is reversed 
with a corresponding credit in shareholder equity
178 shire plc annual report 2013 wwwshirecom c operating loss
the operating loss is stated after charging
2013
’m
2012
’m
staff costs
salaries and wages 54 41
social security costs 05 05
pension contributions 13 08
sharebased payments to directors 46 65
directors’ fees 23 21
141 140
foreign exchange losses 03 02
the company employed two employees during the year 2012 two
the auditor’s remuneration in respect of audit and other services is disclosed in note 30 of the shire annual report in the 
consolidated accounts for the year ending december 31 2013 the fee payable to the company’s auditor for the audit of the 
company’s financial statements was 13000 2012 13000
d interest payable and similar charges
2013
’m
2012
’m
interest payable on convertible bonds 283 439
interest payable on amounts owed to group undertakings 69 17
bank interest payable 01 –
353 456
interest charged on the convertible bonds represents the 275 coupon and the amortization of issue costs and discount arising on 
substitution of the convertible bonds at the time of the scheme of arrangement in 2008 see note i 
e tax on loss on ordinary activities
there was nil corporation tax charged for the year ended december 31 2013 2012 nil
the differences between the total current tax and the amount calculated by applying the standard rate of irish corporation tax to the 
loss before tax is as follows
2013
’m
2012
’m
loss on ordinary activities before taxation 699 741
tax on loss on ordinary activities at standard irish corporation tax rate of 25 175 185
effects of
expenses not deductible for tax purposes 89 130
group relief surrendered 13 02
movements on deferred tax not recognized 73 53
current tax charge for the year – –
wwwshirecom annual report 2013 shire plc 179
strategic report governance financial statements other information notes to the financial statements
for the year ended december 31  2013
continued
f dividends
ordinary shares
2013
’m
2012
’m
second interim dividend – 1438 cents 939 pence per ordinary share 
equivalent to 4380 cents per ads paid in april 2013
797
–
first interim dividend – 300 cents 195 pence per ordinary share 
equivalent to 900 cents per ads paid in october 2013
171
–
second interim dividend – 1259 cents 7 96 pence per ordinary share 
equivalent to 37 77 us cents per ads paid in april 2012
–
707
first interim dividend – 273 cents 174 pence per ordinary share 
equivalent to 819 cents per ads paid in october 2012
–
156
968 863
of the above amounts the company paid dividends amounting to 57 million in the year 2012 48 million in accordance with ias 
arrangements the company directed shire biopharmaceuticals holdings to pay dividends totalling 911 million 2012 815 million 
to those shareholders who choose to receive their dividends from a company tax resident in the uk
the board has resolved to pay a second interim dividend of 1693 cents 1021 pence per ordinary share equivalent to 5079 cents 
per ads for the six months to december 31 2013
g investments in subsidiaries
2013
’m
2012
’m
cost
as at january 1 109722 108916
capital contribution relating to sharebased payments 727 806
as at december 31 110449 109722
subsidiaries
details of the company’s direct subsidiaries as at december 31 2013 are as follows
country of incorporation principal activity holding 
shire pharmaceutical holdings ireland limited republic of ireland holding company 100
details of the company’s indirect subsidiaries can be found in note 29 of the shire annual report in the consolidated accounts for 
the year ending december 31 2013
h debtors
2013
’m
2012
’m
amounts due from group undertakings 422 290
other debtors 110 01
532 291
the amounts due from group undertakings are primarily us dollar denominated and noninterest bearing an amount of 123 million 
2012 nil bears interest at floating rates of interest
deferred tax
the company had an unrecognised deferred tax asset of 195 million 2012 147 million in respect of short term timing differences 
and losses as at december 31 2013
180 shire plc annual report 2013 wwwshirecom i creditors amounts falling due within one year
2013
’m
2012
’m
amounts owed to group undertakings 6205 3443
accrued interest 01 44
other creditors 34 41
6240 3529
the amounts due to group undertakings are primarily unsecured us dollar denominated repayable on demand and bear interest at 
floating rates of interest 
shire 275 convertible bonds 
the bonds bore interest at 275 per annum payable semiannually in arrears on november 9 and may 9 the bonds constituted 
direct unconditional unsubordinated and unsecured obligations of the company and rank pari passu and ratably without any 
preference amongst themselves and equally with all other existing and future unsecured and unsubordinated obligations of the 
company
the bonds were redeemable at the option of the company at their principal amount together with accrued and unpaid interest if i 
at any time after may 23 2012 if on no less than 20 dealing days in any period of 30 consecutive dealing days the value of shire’s 
ordinary shares underlying each bond in the principal amount of 100000 would exceed 130000 or ii at any time conversion 
rights have been exercised andor purchases and corresponding cancellations andor redemptions effected in respect of 85 or 
more in principal amount of bonds originally issued the bonds were repayable in us dollars but also contain provisions entitling the 
company to settle redemption amounts in pounds sterling or in the case of the final maturity date and or any change of control 
shire by delivery of the underlying ordinary shares and a cash topup amount 
the bonds were convertible into ordinary shares during the conversion period being the period from june 18 2007 until the earlier 
of i the close of business on the date falling fourteen days prior to the final maturity date ii if the bonds have been called for 
redemption by the company the close of business fourteen days before the date fixed for redemption iii the close of business on 
the day prior to a bond holder giving notice of redemption in accordance with the conditions and iv the giving of notice by the 
trustee that the bonds are accelerated by reason of the occurrence of an event of default
upon conversion the bond holder is entitled to receive ordinary shares at the conversion price of 3283 per ordinary share 
subject to adjustment as outlined below
the conversion price is subject to adjustment in respect of i any dividend or distribution by the company ii a change of control and 
iii customary antidilution adjustments for inter alia share consolidations share splits spinoff events rights issues bonus issues 
and reorganizations the initial conversion price of 335879 was adjusted to 3317 with effect from march 11 2009 as a result of 
cumulative dividend payments during the period from october 2007 to april 2009 inclusive and was further adjusted to 3283 with 
effect from march 11 2011 as a result of cumulative dividend payments during the period april 2009 to april 2011 inclusive the 
ordinary shares issued on conversion will be delivered credited as fully paid and will rank pari passu in all respects with all fully paid 
ordinary shares in issue on the relevant conversion date
wwwshirecom annual report 2013 shire plc 181
strategic report governance financial statements other information notes to the financial statements
for the year ended december 31  2013
continued
i creditors amounts falling due within one year continued
shire 275 convertible bonds 
the value of the bonds as recognized in the balance sheet is as follows
2013
’m
2012
’m
nominal value of 275 convertible bonds due 2014 – 11000
liability component at january 1 11044 10907
interest charged
i
283 245
interest paid 303 108
redeemed bonds converted to ordinary shares 11015 –
redeemed bonds settled by cash 09 –
liability component at december 31 – 11044
of which
creditors amounts falling due after more than one year – 11000
creditors amounts falling due within one year
ii
– 44
liability component at december 31 – 11044
i
 interest charged represents the accrued coupon and amortization of discount
ii
 interest payable represents the coupon of 275 on the bonds
on november 26 2013 shire issued an optional redemption notice under the trust deed to the holders of the bonds pursuant to 
the terms of the trust deed the bonds which holders elected to convert as of december 31 2013 were converted into 33806464 
ordinary shares at a conversion price of 3251 per ordinary share
j creditors amounts falling after more than one year
2013
’m
2012
’m
convertible bonds – 11000
as per note i the bonds were redeemed in the year and consequently there is no liability as at december 31 2013
k called up share capital
2013 2012
ordinary shares of 5p each number ’m number ’m
authorized
at january 1 2013 and 2012 1000000000 991 1000000000 991
at december 31 2013 and 2012 1000000000 991 1000000000 991
issued and fully paid
at january 1 2013 and 2012 562546335 557 562472830 557
issued on exercise of options 1189545 – 73505 –
issued on conversion of loan notes 33806464 28 – –
at december 31 2013 and 2012 597542344 585 562546335 557
2013 2012
subscriber ordinary shares of £1 each 
number ’m number ’m
authorized
at december 31 2 – 2 –
issued and fully paid
at december 31 2 – 2 –
182 shire plc annual report 2013 wwwshirecom income access share arrangements
details of the shire income access share arrangements are disclosed in note 23 of the shire annual report
share options
details of options and awards granted over the ordinary shares of the company which are outstanding as at december 31 2013 are 
provided in the shire annual report in note 28 together with the total cost of sharebased payment compensation in respect of such 
schemes
the charge for the period relating to sharebased payment plans in respect of directors of the company was 46 million 2012 65 
million all of which related to equitysettled sharebased payment transactions
details of options and awards granted to directors of the company are contained in the consolidated accounts of the director’ 
remuneration report of the shire annual report on page 64
conversion of loan notes
as per the information provided in note i ordinary shares have been issued on the conversion of the loan notes which were due to 
mature in 2014 33806464 shares were issued to the holders of the loan which has increased the issued and fully paid share capital 
of the company by 28m 
l movements in shareholders’ funds
called up
share 
capital
’m
share 
premium 
account
 ’m
equity 
component 
of convertible 
bonds
’m
other 
capital
 reserve
’m
profit and 
loss 
account
 ’m
treasury
shares
’m
other 
reserve
’m
total
’m
as at january 1 2013 557 59419 432 3024 33117 1065 – 95484
capital contribution relating 
to share based payments – – – 727 – – – 727
credit to equity for 
share based payment – – – – 46 – – 46
dividends paid – – – – 57 – – 57
options exercised – 161 – – – – – 161
shares issues on conversion 
of convertible bonds 28 10987 – – – – – 11015
reserve transfer of equity 
element of convertible debt  
on redemption of bonds – – 432 432 – – – –
recognition of liability to 
repurchase own shares in  
first close period note m – – – – – – 1405 1405
repurchase of own shares 
during close period – – – – – 574 574 –
derecognition of liability 
to repurchase own shares – – – – – – 831 831
recognition of liability to 
repurchase own shares in  
second close period note m – – – – – – 655 655
repurchase of own 
shares during close period – – – – – 595 595 –
derecognition of liability 
to repurchase own shares – – – – – – 60 60
recognition of liability 
to repurchase own shares  
in third close period note m – – – – – – 2484 2484
repurchase of own shares 
during close period – – – – – 253 253 –
derecognition of liability 
to repurchase own shares – – – – – – 2231 2231
repurchase of own 
shares note m – – – – – 514 – 514
loss for the year – – – – 699 – – 699
as at december 31 2013 585 70567 – 4183 32407 3001 – 104741
wwwshirecom annual report 2013 shire plc 183
strategic report governance financial statements other information notes to the financial statements
for the year ended december 31  2013
continued
m t reasury shares
the treasury shares reserve represents the cost of shares in the company purchased in the market and held by the company for the 
purpose of returning funds to shareholders the number of ordinary shares held by the company as at 31 december 2013 was 
9823536 with a purchase value of 3001 million including transaction costs 2012 3631571 with a purchase value of 1065 
million
the company instructed independent third parties to purchase the shares of the company up to a maximum value of 500m these 
contracts could be cancelled at any time other than when the company was in a financial close or other prohibited period as the 
contracts cannot be cancelled in a close or other prohibited period the company is obliged to recognise a liability equivalent to the 
present value of the maximum number of shares still available to purchase which is debited against total equity accretion of the 
discount is recorded in the profit and loss during the close or other prohibited period shares purchased in the close period or other 
prohibited were deducted from the liability and recorded as treasury shares with any remaining liability on leaving the close or other 
prohibited period is reversed with a credit recognised in shareholder equity on november 11 2013 contemporaneous with shire’s 
announcement of its acquisition of viropharma the company’s share buyback program was terminated since the inception of the 
share buyback program the company had purchased 300 million of ordinary shares and ordinary shares underlying adrs
n risk management and financial instruments
financial risk factors
the company’s risks are managed on a group basis
the group’s activities expose it to a variety of financial risks credit risk liquidity risk and market risk including foreign currency 
exchange risk price risk and interest rate risk
the group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential 
adverse effects on the group’s financial performance the group uses derivative financial instruments to hedge certain risk 
exposures
the group’s financial risk management is carried out by a corporate treasury function conducted within a framework of policies and 
procedures approved annually by the company’s board of directors the corporate treasury function identifies evaluates and 
hedges financial risks in close cooperation with the group’s operating units as a matter of policy the group does not undertake 
speculative transactions that would increase currency or interest rate exposure
further information in respect of the financial risk management of the group can be obtained from the shire annual report in the 
consolidated accounts for the year ending december 31 2013
credit risk
as at december 31 2013 the company had amounts due from group undertakings and other debtors which in the aggregate 
totalled 532 million the company’s maximum exposure to credit risk from these amounts is 532 million 
liquidity risk
prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the availability of funding through an 
adequate amount of committed credit facilities
the company finances its activities through debt securities and committed bank facilities borrowings and the repayment of loans 
from group companies and the proceeds of asset or investment disposals and cash generated from private and public offerings of 
equity
the company anticipates that its funding sources will be sufficient to meet its anticipated future administrative expenses debt 
principal dividend obligations and service costs as they become due over the next twelve months 
maturity analysis of financial liabilities
at december 31 2013
less than 3 
months
’m
between 36 
months
’m
between 612 
months
’m
between 13 
years 
’m
between 35 
years 
’m
total
’m
amounts owed to group undertakings
i
6205 – – – – 6205
convertible bonds
ii
– – – – – –
6205 – – – – 6205
at december 31 2012
amounts owed to group undertakings
i
3443 – – – – 3443
convertible bonds
ii
– 44 – 11000 – 11044
3443 44 – 11000 – 14487
i
 the amounts due to group undertakings are primarily unsecured us dollar denominated repayable on demand and bear interest at floating rates of interest 
ii
 as per note i shire’s 1100 million 275 convertible bonds were converted into shares during the year
184 shire plc annual report 2013 wwwshirecom market risk
foreign currency exchange risk
as at december 31 2013 substantially all of the company’s financial assets and financial liabilities were denominated in its functional 
currency the us dollar the company is not exposed to any significant foreign exchange currency risk
price risk
as at december 31 2013 the company held no investments other than fixed asset investments in subsidiary undertakings which are 
held at historic cost less any provision for impairment the company is not exposed to any price risk
interest rate risk
as at december 31 2013 the company held no cash or cash equivalents or had any trade debtors or creditors which were interest 
bearing the company had shortterm borrowings of 6205 million from another group company which are repayable on demand 
and bear interest at floating rates interest on these borrowings in the period amounted to 69 million and the directors do not 
perceive that servicing this debt poses any significant risk to the company given its size in relation to the company’s net assets 
market risk sensitivity analysis
frs 29 ‘financial instruments disclosures’ requires a market risk sensitivity analysis illustrating the fair value of the company’s 
financial instruments and the impact on the company’s profit and loss account and shareholders’ equity of reasonably possible 
changes in selected market risks the company has no financial assets or liabilities that expose it to market risk other than amounts 
owed to group undertakings of 6205 million the directors do not believe that a 1 movement in interest rates will have a material 
impact on the company’s profit and loss account or shareholders’ equity
financial instruments
the table below sets out the company’s accounting classification of each class of financial assets and financial liabilities and their fair 
values at december 31 2013
at december 31 2013
designated at 
fair value
available  
for sale
’m
loans and 
receivables
’m
amortized 
cost
’m
carrying 
amount
’m
fair value
’m
amounts due from group undertakings
i
– – 422 – 422 422
other debtors
i
– – 110 – 110
110
amounts owed to group undertakings
i
– – – 6205 6205 6205
convertible bonds
ii
– – – – – –
– – 532 6205 5673 5673
at december 31 2013
designated at 
fair value
available  
for sale
’m
loans and 
receivables
’m
amortized cost
’m
carrying 
amount
’m
fair value
’m
amounts due from group undertakings
i
– – 290 – 290 290
other debtors
i
– – 01 – 01 01
amounts owed to group undertakings
i
– – – 3443 3443 3443
convertible bonds
ii
– – – 11000 11000 12280
– – 291 14443 14152 15432
i
 the carrying amount of amounts due to and from group undertakings and other debtors is at approximate fair value because of the short term maturity of the amounts
ii
 the fair value of the company’s convertible bonds is based on the quoted market price of the bonds at the balance sheet date – as such the fair value quoted above 
represents the composite fair value for both the liability and equity components of the convertible bonds whereas the carrying amount represents only the liability 
component
capital risk management
the capital structure of the company consists of debt which includes borrowings disclosed in note i issued capital reserves and 
retained earnings as disclosed in note l the company manages its capital to ensure that entities in the group will be able to 
continue as a going concern and to ensure the group has sufficient capital available to meet future funding requirements the group 
had net cash as determined under us gaap  of 22305 million at december 31 2013 2012 net cash 3729 million which is low 
relative to its market capitalization and positions the group to take advantage of any opportunities that might arise to develop the 
business details of funding requirements are explained in the liquidity and capital resources section of the review of our business in 
the shire annual report in the consolidated accounts for the year ending december 31 2013
the company is not subject to any externally imposed capital requirements
wwwshirecom annual report 2013 shire plc 185
strategic report governance financial statements other information notes to the financial statements
for the year ended december 31  2013
continued
o commitments
capital commitments
there are no significant capital commitments relating to the company
guarantees
the company has guaranteed external lease commitments overdrafts trade facility lines and other banking obligations of various 
subsidiaries amounting to 1307 million 2012 1264 million
revolving credit facilities agreement
on november 23 2010 the company entered into the rcf the rcf is for an aggregate amount of 1200 million and canceled the 
company’s then existing committed revolving credit facility the rcf which includes a 250 million swingline facility may be used for 
general corporate purposes and matures on november 23 2015 
the interest rate on each loan drawn under the rcf for each interest period is the percentage rate per annum which is the aggregate 
of the applicable margin ranging from 090 to 225 per cent per annum and libor for the applicable currency and interest period 
shire also pays a commitment fee on undrawn amounts at 35 per cent per annum of the applicable margin
under the rcf it is required that i shire’s ratio of net debt to ebitda as defined within the rcf agreement does not exceed 35 to 
1 for either the 12 month period ending december 31 or june 30 unless shire has exercised its option which is subject to certain 
conditions to increase it to 40 to 1 for two consecutive testing dates ii the ratio of ebitda to net interest as defined in the rcf 
agreement must not be less than 40 to 1 for either the 12 month period ending december 31 or june 30 and iii additional 
limitations on the creation of liens disposal of assets incurrence of indebtedness making of loans giving of guarantees and granting 
security over assets these financial and operating covenants have not had and are not expected to have an effect on the 
company’s financial position and liquidity
on entering into the rcf in november 2010 the company paid arrangement costs of 80 million which have been recorded as 
deferred charges with amortization of these costs to the company’s income statement over the contractual term of the rcf 
the availability of loans under the new rcf is subject to customary conditions
fees for the arrangement of the rcf and ongoing commitment fees are borne by another group company
term loan agreement
see the director’s report for details of the term loan agreement entered into on november 11 2013
p  subsequent events
on january 17  2014 shire announced that it had sold its dermagraft assets to organogenesis comprising the key operating 
assets relating to the development manufacture and sale of the dermagraft product these assets include intellectual property 
relating to dermagraft including patents trademarks and knowhow regulatory filings and registrations relating to dermagraft 
certain manufacturing plant equipment and materials dermagraft product inventory and accounts receivable
186 shire plc annual report 2013 wwwshirecom the following are trade marks either owned or licensed by shire 
plc or its subsidiaries which are the subject of trade mark 
registrations in certain territories or which are owned by third 
parties as indicated and referred to in this annual report
adderall xr
®
 mixed salts of a single entity amphetamine
carbatrol
®
 carbamazepine extended release capsules
cinryze
®
 c1 esterase inhibitor human
daytrana
®
 trade mark of noven pharmaceutical inc
dermagraft
®
 trade mark of organogenesis inc
elaprase
®
 idursulfase
elvanse
®
 lisdexamfetamine dimesylate
firazyr
®
 icatibant
fosrenol
®
 lanthanum carbonate
intuniv
®
 guanfacine extended release
lialda
®
 trade mark of nogra international limited 
mezavant
®
 trade mark of giuliani international limited 
pentasa
®
 trade mark of ferring bv corp
premiplex
®
 igfiigfbp3
reminyl
®
 galantamine hydrobromide uk and republic of 
ireland trade mark of johnson  johnson excluding uk and 
republic of ireland
replagal
®
 agalsidase alfa
resolor
®
 prucalopride
tyvense
®
 lisdexamfetamine dimesylate
vascugel
®
 allogeneic aortic endothelial cells cultured in a 
porcine gelatin matrix gelfoam
®
 with cytokines implanted
venvanse
®
 lisdexamfetamine dimesylate
vpriv
®
 velaglucerase alfa
vyvanse
®
 lisdexamfetamine dimesylate
xagrid
®
 anagrelide hydrochloride 
zeffix
®
 trade mark of gsk 
3tc
®
 trade mark of gsk 
trade marks
wwwshirecom annual report 2013 shire plc 187
strategic report governance financial statements other information notes
188 shire plc annual report 2013 wwwshirecom shire plc
5 riverwalk 
citywest business campus
dublin 24 ireland
tel 353 1 429 7700
fax 353 1 429 7701
wwwshirecom
shire plc annual report 2013 one shire designed and produced by 
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Summary:
  
year on product growth ’m
 2013   2012  
lialda
mezavant
vyvanse
elaprase
replagal
adderall xr
vpriv
intuniv
pentasa
firazyr
forsrenal
xagrid
other
19
10
32
6
12
12
16
6
102
7
2
11
our four business units
internal medicine
rare diseases
neuroscience
gastrointestinal
at a glance inline
double digit product 
sales growth in 2013
strategy
our strategy describes how we will 
achieve our vision
our strategy is to grow our business 
and deliver value to our stakeholders 
by focusing on significant unmet 
patient needs in specialist areas and 
providing more innovative treatments 
to more patients
see page 18
business model
we implement our strategy through 
our business model it is our structure 
for success and drives our growth
during 2013 we unified our business 
– our one shire model has created a 
simple structure and focused efficient 
organization that is scalable for growth
see page 18
14 shire plc annual report 2013 wwwshirecom a dh d hunter syndrome ulcerative colitis
1228m
2012 1030m
546m
2012 498m
529m
2012 400m
vyvanse product sales grew strongly 
19 in 2013 primarily as a result of 
price increases as well as higher 
prescription demand due to growth 
in the us adhd market 6 and 
vyvanse’s share of that market
reported elaprase sales growth 
10 was driven by an increase in 
the number of patients on therapy 
the increase in elaprase sales 
between q3 and q4 of 2013 was 
partly driven by the timing of certain 
large orders from markets which 
order less frequently
the growth in product sales for 
lialdamezavant 32 in 
2013 was primarily driven by higher 
market share in the us the effects 
of which were partially offset by 
higher sales deductions in 2013 
as compared to 2012
fabry disease adhd gaucher disease
468m
2012 497m
375m
2012 429m
343m
2012 307m
replagal sales were down 6 
compared to 2012 down 4 on a 
cer basis as sales in 2013 were 
impacted by foreign exchange pricing 
pressure primarily in europe and 
slightly lower volumes due to the return 
of competition to the fabry market 
adderall xr product sales 
decreased 12 in 2013 as a result 
of higher sales deductions partially 
offset by the effect of higher stocking 
in 2013 compared to 2012
reported vpriv sales growth of 
12 was driven by an increase in 
the number of patients on therapy 
adhd ulcerative colitis hereditary angiodema
335m
2012 288m
281m
2012 266m
235m
2012 116m
intuniv product sales were up 16 
compared to 2012 driven by growth 
in us prescription demand up 9 
compared to 2012 together with 
price increases these positive factors 
were partially offset by higher sales 
deductions in 2013 compared to 2012
pentasa product sales were up 
6 as the benefit of price increases 
was partially offset by higher sales 
deductions in 2013 as compared 
to 2012
firazyr sales growth 102 
compared to 2012 was primarily 
driven by the us market where we 
continue to see both good growth in 
new patients and increased levels of 
repeat usage by existing patients
wwwshirecom annual report 2013 shire plc 15
strategic report
governance financial statements other information