effective
treatments
and services
better
lives
for
patients
improved public
health and
societal value
superior clinical
evidence and clear
economic beneﬁts
return to
enable further
investment
commitment to
superior treatments
for their patients
brave culture driving
innovation to deliver
value to all
creating 
stakeholder
value
shirecom
shire plc annual report 2011
shire plc annual report 2011
creating stakeholder value
8446 annual report 2011annual report 2011  15032012  1627  page fc1 shire plc annual repo
wwwshirecom ››
more online at
shire trademarks
the following are trademarks either owned or licensed by shire plc or
companies within the shire group the “group” or the “company” which
are the subject of trademark 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
agrylin
®
anagrelide hydrochloride
apligraf
®
trademark of organogenesis inc “organogenesis”
apriso
®
trademark of salix pharmaceuticals ltd “salix”
asacol
®
trademark of medeva pharma suisse ag 
used under license by warner chilcott company llc “warner chilcott”
atripla
®
trademark of bristol myers squibb company “bms” and gilead sciences inc “gilead”
berinert p
®
trademark of aventis behring gmbh
calcichew
®
range calcium carbonate with or without vitamin d3
carbatrol
®
carbamazepine extended release capsules
cerezyme
®
trademark of genzyme corporation “genzyme”
cinryze
®
trademark of viropharma biologics inc
claversal
®
trademark of merckle recordati
colazal
®
trademark of salix pharmaceuticals inc
combivir
®
trademark of glaxosmithkline “gsk”
concerta
®
trademark of alza corporation “alza”
daytrana
®
trademark of noven pharmaceutical inc “noven”
dermagraft
®
human fibroblastderived dermal substitute
dipentum
®
trademark of ucb pharma ltd “ucb”
dynepo
®
trademark of sanofiaventis
elaprase
®
idursulfase
epivir
®
trademark of gsk
epivirhbv
®
trademark of gsk
epzicom
®
kivexa epzicom trademark of gsk
equasym
®
methylphenidate hydrochloride
equasym xl
®
methylphenidate hydrochloride
firazyr
®
icatibant
fosrenol
®
lanthanum carbonate
fabrazyme
®
trademark of genzyme
heptovir
®
trademark of gsk
intuniv
®
guanfacine extended release
juvista
®
trademark of renovo limited “renovo”
kalbitor
®
trademark of dyax corporation
kapvay
®
trademark of shionogi pharma inc “shionogi”
lialda
®
trademark of giuliani international limited “guiliani” 
medikinet
®
trademark of medice arzneimittel pütter gmbh  co kg “medice”
metazym™ arylsulfatasea
metadate cd
®
trademark of ucb pharma sa
mezavant
®
trademark of guiliani 
microtrol
®
trademark of supernus pharmaceuticals inc “supernus”
movicol
®
trademark of edra ag sa
pentasa
®
trademark of ferring bv  corp “ferring”
reminyl
®
galantamine hydrobromide united kingdom “uk” and republic of ireland 
trademark of jj excluding uk and republic of ireland
reminyl xl™ galantamine hydrobromide uk and republic of ireland 
trademark of jj excluding uk and republic of ireland
replagal
®
agalsidase alfa
resolor
®
prucalopride
ritalin la
®
trademark of novartis
ruconest
®
trademark of pharming intellectual property bv 
salofalk
®
trademark of dr falk pharma
seasonique
®
trademark of barr laboratories inc “barr”
strattera
®
trademark of eli lilly
trizivir
®
trademark of gsk
truvada
®
trademark of gilead
venvanse lisdexamfetamine dimesylate
vpriv
®
velaglucerase alfa
vyvanse
®
lisdexamfetamine dimesylate
xagrid
®
anagrelide hydrochloride
zavesca
®
trademark of actelion pharmaceuticals ltd
zeffix
®
trademark of gsk 
3tc
®
trademark of gsk
content online
discover more about our business online at wwwshirecom
scanning a qr code with your camera phone will directly 
link you to mobile content qr code reader applications 
are available from your app store 
8446 annual report 2011annual report 2011  15032012  1627  page ifc1 review of our business governance financial statements other ﬁnancial information
shire plc annual report 2011 1
contents
review of our business
2 financial highlights
4 shire today
6 chairman’s review
8 chief executive 
ofﬁcer’s review
12 financial review
governance
42 board of directors
44 directors’ report
48 corporate governance
report
55 directors’ remuneration
report
70 nomination committee
report
71 audit compliance  
risk committee report
73 statement of directors’
responsibilities
financial statements
74 independent auditors’ report
75 consolidated balance sheets
76 consolidated statements 
of income
77 consolidated statements 
of changes in equity
79 consolidated statements
of comprehensive income
80 consolidated statements 
of cash ﬂows
82 notes to the consolidated
ﬁnancial statements
other ﬁnancial information
125 other ﬁnancial information
129 shire head ofﬁces and 
main operating locations
130 shareholder information
132 cautionary statements
134 parent company ﬁnancial
statements of shire plc
shire continues to grow our proven business
model helps us to deliver on our mission 
of enabling people with lifealtering conditions
to lead better lives through leading the way 
in our chosen specialist areas 
we have a balanced portfolio of differentiated
products that have many years of growth still
ahead as well as the potential to expand into
further geographies and markets our pipeline
is strong and well focused offering potential
drivers of future growth for our portfolio
patients are at the heart of our business and
we are increasingly engaging with a broader
range of stakeholders to ensure that we
develop innovative products that payors and
policymakers around the world will welcome
as they deliver value to the healthcare system 
our 5000 plus employees in 29 countries 
are united by our distinctive culture that brings
the needs of our patients to the fore everyone
at shire aims to be as brave as the people 
we help through focusing on our patients’
needs we strive to meet the needs of all 
our stakeholders
8446 annual report 2011annual report 2011  15032012  1611  page 1 total revenue
2010 3471m
2011 4263m
2009 3008m
2008 3022m
2007 2436m
net product sales 
total revenues by 
2010 3471m
non gaap ebitda earnings before interest tax depreciation and amortization
2011 1478m
2010 1165m
2009 982m
non gaap diluted earnings per ads
2011 534
2010 423
2009 349
2011 cash ﬂow
cash generation
1
1391m
payment to acquire abh
–186m
–195m
–317m
63m net cash inﬂow 
other investing and ﬁnancing
capital expenditure
–725m
tax and interest payments
free cash ﬂow
1
95m disposal of longterm investment
23 yearonyear growth in 2011
26 yearonyear growth in 2011
27 yearonyear growth in 2011
strong cash generation has supported continued
investment in our business
1 cash generation and free cash ﬂow are non gaap measures
982m
879m
65 us
25 europe
 3 latin america
 7 other
25
7
64 specialty pharm
26 human genetic
10 royalties and o
64
26
10
3
2 shire plc annual report 2011
httpar2011shirecom ››
more online at
shire plc annual repo
financial highlights
another strong year for shire with
revenues exceeding 4 billion for 
the ﬁrst time and non gaap diluted
earnings per ads up 26 to 534
8446 annual report 2011annual report 2011  15032012  1611  page 2 net product sales by geographic region
total revenues by businesses
2010 3471m 2011 4263m
preciation and amortization
1478m
165m
1391m
g
free cash ﬂow
1
rm investment
yearonyear product growth ’m
tinued
s
79m
65 us
25 europe
 3 latin america
 7 other
65
25
7
64 specialty pharmaceutical
26 human genetic therapies
10 royalties and other revenues
64
26
10
61 specialty pharmaceutical
29 human genetic therapies
 3 regenerative medicine
 7 royalties and other revenues
61
29
7
3
3
2010 adderall xr 361m
2010 intuniv 166m
2010 lialdamezavant
2010 replagal 351m
2010 vyvanse 634m
293m
2011 adderall xr 533m
2011 intuniv 223m up 34
2011 lialdamezavant up 27
2011 replagal 475m
up 48
up 35
2010 elaprase 404m
2011 elaprase 465m up 15
2011 vyvanse 805m up 27
372m
2010 vpriv 143m
2011 vpriv up 79 256m
up 23
c annual report 2011 shire plc annual report 2011 3
review of our business
8446 annual report 2011annual report 2011  15032012  1611  page 3 specialty 
pharmaceuticals sp
human genetic 
therapies hgt
regenerative 
medicine rm
hunter syndrome
fabry disease
gaucher disease
hereditary angioedema
diabetic foot ulcers  
adhd
ulcerative colitis
ulcerative colitis
ulcerative colitis
adhd
chronic constipation
essential thrombocythaemia
renal disease
adhd
adhd
4 shire plc annual report 2011
httpar2011shirecom ››
more online at
shire plc annual repo
shire today
we focus on chronic symptomatic
diseases in specialist areas of unmet
needs through three businesses
1 specialty pharmaceuticals 
2 human genetic therapies
3 regenerative medicine 
not all of these products are
available in all countries where 
shire operates
8446 annual report 2011annual report 2011  15032012  1611  page 4 erative 
ne rm
diabetic foot ulcers  
preclinical and
discovery  
phase 1 phase 2 phase 3 registration 
hgt1110
mld 
hgt3010
sanﬁlippo b 
guanfacine 
carrier wave
adhd 
vyvanse
nssedsbed
xagrid japan
essential 
thrombocythaemia
dermagraft
canada
dfu
replagal us 
fabry disease
intuniv canada
adhd
venvanse eu
adhd
spd535
platelet reducing
spd557 
m0003
rgerd
intuniv eu
adhd
vyvanse
mdd
hgt1410
sanﬁlippo a
1
hgt4510
dmd
2
lialda
diverticular disease
hgt2310
hunter cns
1
resolor us
chronic
constipation
3
early
research
c annual report 2011 shire plc annual report 2011 5
review of our business
we continue to build our pipeline
with potential products that will 
deliver value to patients and the
healthcare system 
specialty pharmaceuticals
human genetic therapies 
regenerative medicine
1 hgt1410 and hgt2310 are
currently in phase 12 clinical trials
2 currently on clinical hold
3 phase 3 ready
8446 annual report 2011annual report 2011  15032012  1611  page 5 shire plc annual repo 6 shire plc annual report 2011
online at
chairman’s review
shire leveraged its proven business
model throughout the year achieving
remarkable results
those of us monitoring the global economy throughout
2011 saw many forces at play
on the one hand recessionary headwinds aging
populations the growing prevalence of chronic disease
and the resultant cost of funding new medicines and
technologies pressured already strained healthcare
budgets and payors 
on the other the healthcare expectations of people
grew and the extraordinary innovation of scientists 
and researchers brought new treatments to the market
continuing to change the way disease is both
diagnosed and treated
against this backdrop those who develop and market
medicines had important decisions to make what
pipeline projects should be advanced what products
will be reimbursed how should resources be
distributed within a rapidly changing world what could
pharmaceutical companies do for patients whose 
wellbeing—and indeed sometimes their lives—often
depend on effective treatment
as shire’ s chairman i was reassured by the many 
ways this specialty biopharmaceutical company both
recognized and addressed the global pressures 
matthew emmens chairman
httpar2011shirecom ››
8446 annual report 2011annual report 2011  15032012  1611  page 6 shire plc annual report 2011 7
review of our business
c annual report 2011
201 1 highlights 
another strong year for shire
� revenues exceed 4 billion for the ﬁrst time
� non gaap diluted earnings per ads up 26 to 534
shire leveraged its proven business model throughout
the year achieving remarkable results it reinforced 
its commitment to specialist physicians and specialty
medicines expanded key manufacturing capabilities
gained approvals for proven medications in new
countries and maintained its focus on responsibility 
it maintained its track record as a strategic organization
that doesn’t just react to the challenges of the day 
but also anticipates them
during the year shire took risks—moved into new
therapeutic areas launched innovative development
projects diversified its team and required more of 
itself in essential ways shire’ s ability to rise above the
noise of the year and to make steady progress on
behalf of patients physicians payors and policymakers
profoundly accelerated its position as a company 
willing to ask hard questions make significant changes
and lead by example
my association with shire began in 2003 i continue 
to be grateful for the depth of the leadership t eam 
and the dedication innovation and energy that all shire
people bring to work each day i am grateful as well 
for the considerable wisdom that jeffrey leiden and
patrick langlois brought to our board in their final year
with shire i now look forward to working with susan
kilsby an investment banker with global expertise 
who recently joined our board and the other members
of the shire board in the year ahead
no one is expecting the dynamics playing out across
the global economy to ease soon certainly there will
be more questions than answers but shire’ s strategy
and delivery of meaningful solutions will continue 
to differentiate the company as the future unfolds
matthew emmens
chairman
8446 annual report 2011annual report 2011  15032012  1611  page 7 shire plc annual repo 8 shire plc annual report 2011
httpar2011shirecom ››
online at
chief executive ofﬁcer’s review
angus russell chief executive officer
throughout 2011 at shire we were thinking about
value about how to do more in challenging times
about understanding the complex and interwoven
needs of patients physicians payors and
policymakers we recognize that patients’ lives improve
only when we understand not just them but the 
entire web of care we believe that when we respond
thoughtfully to the concerns of others we perpetuate
what we’ve come to call the circle of value we’re not
just interested in advancing our own standing in the
healthcare community we’re committed to the basic
ideal that when we can help create value for others 
we become more valuable ourselves
our longterm strategy of delivering differentiated
specialty products focusing on symptomatic diseases
and making responsible disciplined investments in
research and development produced yet another
strong year our worldwide product sales were up 26
for the year revenue grew to 4263 million operating
income was 1109 million and diluted earnings per
ads were 453 with some 5000 people operating
in 29 countries and a balanced portfolio of products
we continued to leverage a strategy that yearafteryear
delivers results even in turbulent economic times 
still we want to do more we’re focused on all our
stakeholders—patients physicians policymakers
payors investors and employees in 2011 we spent
time in the company of patients their families their
communities we talked to physicians about the
frustrations they face as they seek to treat symptoms
and make diagnoses we talked to policymakers
around the world and we talked to payors about how
they measure and reward value we talked we
listened and we responded to the benefit of all of our
stakeholders—systematically advancing our pipeline 
we grew both organically and through acquisitions 
we continued to explore the potential application 
of lisdexamfetamine dimesylate currently approved 
as vyvanse in the us for children and adults with
attention deficit hyperactivity disorder “adhd” 
in conditions ranging from negative symptoms and
cognitive impairment in schizophrenia and major
depressive disorder to binge eating and excessive
daytime sleepiness these are all conditions for which
there are not at this time adequate treatments
we also made significant headway in our research on
the potential application of mesalamine our ulcerative
colitis medicine sold as lialdamezavant in 16
countries around the world for those diagnosed with
8446 annual report 2011annual report 2011  15032012  1611  page 8 shire plc annual report 2011 9
review of our business
c annual report 2011
diverticulitis two phase 3 studies will be completed
this year for this painful and lifealtering condition
which often results in repeated flareups and is not
adequately managed by current medicines 
at the same time within our human genetic therapies
“hgt” business we continued our exploration of the
potential application of intrathecal delivery—the use 
of ports to deliver medicine directly to the central
nervous system—for the treatment of hunter syndrome
sanfilippo and metachromatic leukodystrophy as this
research program advances we hope to be able to 
do more for patients diagnosed with these often life
threatening and heartbreaking diseases 
we made great headway as well for patients depending
on our hgt enzyme replacement therapy products 
the accelerated construction and approval of a new
manufacturing facility in lexington massachusetts
ensured greater access and a sustainable supply 
of medication for patients diagnosed with fabry and
gaucher disease meanwhile we beat our own
deadlines as we worked to expand the manufacturing
capacity of vpriv  now available in 30 countries across
europe and serving patients with type 1 gaucher
disease we also launched firazyr an orphan drug
used for the treatment of acute attacks of hereditary
angioedema “hae” in adults 18 years of age or 
older in the us throughout the year we continued 
to meet with patients and physicians— in conferences
and at special meetings—all with an eye toward
working together to ensure better diagnoses and 
more effective treatments
our ambition to reach beyond our current expertise
also resulted in the acquisition of advanced
biohealing inc “abh” which brought us a new
business in regenerative medicine—adding to our
portfolio dermagraft a bioengineered skin
substitute that assists in restoring damaged tissue 
and supports the body’s natural healing process
created from cultured skin cells and applied via a
biodegradable mesh dermagraft is approved in
the us for the treatment of diabetic foot ulcers the
continued growth of abh within shire has we believe
demonstrated the potential that can be made from 
a focused regenerative medicine business we are
excited about the opportunities in this area and 
are looking forward to bringing dermagraft
to more patients and to expanding shire’s offering 
in regenerative medicine
we strengthened our global presence throughout 
the year—expanding our international hub in nyon
201 1 product highlights 
product sales were up 26 to 3950 million with growth
generated from across the portfolio particularly 
� vyvanse up 27 to 805 million
� adderall xr up 48 to 533 million
� replagal up 35 to 475 million
� elaprase up 15 to 465 million
� lialdamezavant up 27 to 372 million
� vpriv up 79 to 256 million
� dermagraft 105 million being product sales made 
subsequent to the acquisition of advanced biohealing inc
8446 annual report 2011annual report 2011  15032012  1611  page 9 shire plc annual repo 10 shire plc annual report 2011
switzerland with diverse and talented people opening
offices and finalizing marketing agreements in countries
ranging from brazil to japan and keeping an eager eye
on new opportunities where we can serve our multiple
stakeholders effectively
throughout the year we made continuing investments
in our culture—reinforcing through numerous channels
just what it is to be a shire employee through 
various programs we reinforced our commitment 
to differentiating ourselves as the company that 
always strives to be as brave as the people we help
we worked to ensure that our employees are inspired
by our strategic vision that they understand the
importance of fostering our brave values and that 
they are improving their ability to both listen and
respond—all of which contributes to our collaborative
responsible environment 
we launched the first of what will become an annual
external recognition program—the brave awards 
in which nonprofessional caregivers from around the
world were recognized and rewarded for their courage
and dedication and for the difference they make 
in the lives of those they care for 
though by many measures 2011 will be remembered
as another year of great success for shire we also
think of it as a year in which we developed new growth
opportunities in 2012 we’ll continue to invest in our
people pipeline and values—in those things that
differentiate us as a company we’ll prepare for the
launch of venvanse in europe advance pipeline
projects and look for new acquisitions—defining 
and assessing the value of such programs as early 
as possible 
but most of all we will be listening—paying acute
attention to the world around us and continuing 
to address the needs of the stakeholders who make 
up our circle of value i look forward to sharing our
news with you as the year progresses 
finally i would like to acknowledge those who make
shire’s story so distinct so vibrant and so full of
promise our people many have been helping to drive
our growth for some years now others such as the
400 or so individuals from abh and the talent newly
hired into positions all around the world are just
starting to contribute their insights creativity and
expertise to shire speaking for the entire leadership
team we are grateful for the relentless efforts and
dedication the ambitions and the proven capabilities
of all shire employees
angus russell
chief executive officer
chief executive ofﬁcer’s review
we’re not just interested in advancing
our own standing in the healthcare
community we’re committed to the
basic ideal that when we can help
create value for others we become
more valuable ourselves
8446 annual report 2011annual report 2011  15032012  1611  page 10 effective
treatments
and services
better
lives
for
patients
improved public
health and
societal value
superior clinical
evidence and clear
economic beneﬁts
return to
enable further
investment
commitment to
superior treatments
for their patients
brave culture driving
innovation to deliver
value to all
shire plc annual report 2011 11
review of our business
c annual report 2011
creating stakeholder value
our commitment to delivering value
we’ve built shire into one of the most
successful specialty biopharmaceutical
companies in the world 
everyone who works at shire is
committed to delivering value in the
broadest sense that means creating
value for our patients policymakers
payors physicians and investors 
it’s an approach that brings real
measurable benefits to our patients
the healthcare system and society
8446 annual report 2011annual report 2011  15032012  1611  page 11 shire plc annual repo 12 shire plc annual report 2011
financial review
currently marketed products
the table below lists the company’s material marketed products at december 31 2011 indicating the ownerlicensor disease area and the key
territories in which shire markets the product
specialty pharmaceuticals
product                                                                                              disease area                                           ownerlicensor                               key territories 
treatments for adhd
vyvansevenvanse lisdexamfetamine dimesylate                  adhd                                        shire                                    us canada and brazil
1
adderall xr mixed salts of a single entity amphetamine               adhd                                        shire                                    us and canada 
intuniv extended release guanfacine                                        adhd                                        shire                                    us
equasym methylphenidate hydrochloride modified release xl          adhd                                        shire                                    europe and latin america
2
treatments for gi diseases
lialda mesalaminemezavant mesalazine                          ulcerative colitis                         giuliani spa                         us and europe
3
pentasa mesalamine                                                         ulcerative colitis                         shire                                    us 
resolor prucalopride                                                                               chronic constipation                  shire                                    europe
                                                                                        in women                                   
treatments for diseases in other therapeutic areas
fosrenol lanthanum carbonate                                            hyperphosphatemia in              shire                                    us europe and japan
24
endstage renal disease            
xagrid anagrelide hydrochloride                                              elevated platelet counts             shire                                    europe
2
in at risk essential 
thrombocythemia patients         
1 the product is marketed as venvanse in brazil
2 marketed by distributors in certain markets
3 marketed in us as lialda and in europe as mezavant xl or mezavant
4 marketed in japan under license from shire by bayer yakuhin limited “bayer”
the following review should be read in conjunction with the consolidated
financial statements and related notes on pages 82 to 124 of this 
annual report 
overview
shire’s strategic goal is to be the world’s leading specialty
biopharmaceutical company that focuses on meeting the needs 
of the specialist physician shire focuses its business on adhd gi
diseases hgt and rm as well as opportunities in other therapeutic
areas to the extent they arise through acquisitions 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 three reportable segments sp  
hgt and rm 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 
� 93 2010 90 of total revenues are derived from product sales 
of which 66 2010 71 are within sp  31 2010 29 are within
hgt and 3 2010 nil are within rm and
� 6 of total revenues are derived from royalties 2010 9
8446 annual report 2011annual report 2011  15032012  1611  page 12 shire plc annual report 2011 13
review of our business
c annual report 2011
human genetic therapies
product                                                                                              disease area                                           ownerlicensor                               key territories 
replagal agalsidase alfa                                                   fabry disease                            shire                                    europe latin america 
and asia pacific
1
elaprase idursulfase                                                        hunter syndrome                       shire                                    us europe latin america 
mucopolysaccharidosis                                                        and asia pacific
2
type ii mps ii                                                                       
vpriv velaglucerase alfa                                                        gaucher disease type 1            shire                                    us europe and 
latin america
firazyr icatibant                                                              hae                                           shire                                    us europe and 
latin america
1 marketed in japan under license by dainippon sumitomo pharma co ltd “dsp” 
2 marketed in asia pacific by genzyme under license from shire 
regenerative medicine
product                                                                                              disease area                                           ownerlicensor                               key territories 
dermagraft human fibroblastderived dermal substitute            dfu                                           shire                                    us
product                                                                                              principal indications                                                                relevant territorymarketed by
3tcepivir lamivudine                                                        hiv                                                                      canadashire and viiv
1
 rowviiv 
combivir lamivudine and zidovudine                                       hiv                                                                      canadashire and viiv rowviiv 
trizivir lamivudine zidovudine and abacavir                                hiv                                                                      canadashire and viiv rowviiv 
epzicomkivexa lamivudine and abacavir                              hiv                                                                      canadashire and viiv rowviiv 
zeffixepivirhbvheptovir
2
lamivudine                     hepatitis b infection                                            canadashire and gsk rowgsk
1 in 1996 shire formed a commercialization partnership with gsk to market 3tc and zeffix in canada in 2009 gsk assigned its interest in the partnership to viiv 
2 this is not a comprehensive list of trademarks for this product the product is also marketed under other trademarks in some markets
royalties received from other products
anti viral products
the company receives royalties on anti viral products based on 
certain of the company’s patents licensed to gsk these anti viral
products are for human immunodeficiency virus “hiv” and hepatitis b
virus the table below lists these products indicating the principal
indications the company responsible for marketing the product and 
the relevant territory in 2009 gsk established a partnership with 
pfizer called viiv healthcare “viiv” that brought together the hiv
portfolios of gsk and pfizer viiv markets the hiv products licensed 
to gsk by the company
the terms of the company’s license agreement with gsk include
royalty rates in the midteens on sales of products in territories with
patent coverage and singledigit royalties in territories without patent
coverage gsk is required to pay royalties through the term of the last
to expire patent in each territory in territories where no patent exists
gsk is required to pay royalties for ten years from the first commercial
sale royalty terms expire in most territories outside of the us 
during 2012 in the us royalty terms expire between 2014 and 2018
after expiration the company will cease to receive royalties from 
gsk on sales of products in the affected territories
the company may terminate the agreement in the event gsk fails to
pay royalties for two successive quarters either party may terminate
the agreement for material breach or insolvency 
adhd
adderall xr
shire receives royalties from impax’s sales of authorized generic
adderall xr
hyperphosphatemia
fosrenol
the company licensed the rights to fosrenol in japan to bayer in
december 2003 bayer launched fosrenol in japan in march 2009
shire receives royalties from bayer’s sales of fosrenol in japan 
the company may also receive milestone payments from bayer 
based on the achievement of certain sales thresholds
other royalties
the company has licensed the rights to other products to third parties
and receives royalties on third party sales
8446 annual report 2011annual report 2011  15032012  1611  page 13 14 shire plc annual report 2011 shire plc annual repo
financial review
manufacturing and distribution
active pharmaceutical ingredient “api” sourcing
the company sources api from third party suppliers for its sp
products and its hgt product firazyr shire has manufacturing
capability for agalsidase alfa idursulfase and velaglucerase alfa 
at its protein manufacturing plant in cambridge massachusetts 
us for its hgt products replagal elaprase and vpriv 
and manufacturing capability for its rm product dermagraft 
at its manufacturing facility in la jolla california us
the company currently has dual sources of api for vyvanse
adderall xr lialda and pentasa and is developing a second
source for intuniv  the company manages the risks associated 
with reliance on single sources of api by carrying additional inventories
or developing second sources of supply 
in order to support the rapid growth of vpriv and replagal as well
as to support clinical development additional manufacturing capacity
has been added in lexington massachusetts us the facility has
been approved for the purification of replagal api and in november
2011 the company submitted regulatory filings with both the 
ema and the fda for the production of vpriv api at the new facility
on february 21 2012 the ema’s committee for medicinal products 
for human use approved the production of vpriv in this facility
dermagraft is grown from a cryopreserved master cell bank 
that was procured from a single neonatal foreskin sourced in 1990 
the cell line has been qualified by the fda and the company performs
extensive testing to help ensure the safety of the fibroblast cells in 
the master cell bank
finished product manufacturing
the company sources all of its sp products from third party contract
manufacturers hgt finished products are manufactured by contract
manufacturers specializing in aseptic fillfinish operations
the company currently has dual sources for elaprase replagal
and vyvanse and is developing a second source for the finished
product manufacturing of lialda the company sources finished
product for adderall xr firazyr fosrenol intuniv  pentasa
resolor and vpriv from a single contract manufacturer for each
product the company manages the risks associated with reliance 
on single sources of production by carrying additional inventories 
the company currently utilizes numerous third party suppliers 
for the raw materials used in the manufacturing of dermagraft 
the company currently obtains certain serum reagents the mesh
framework and the manifold used in the manufacture of dermagraft
from single suppliers the company manages the risks associated 
with reliance on single sources by carrying additional inventories and
where appropriate entering into contractual supply agreements with 
a bulk order provision in the case of early termination by the supplier
during 2009 following a comprehensive evaluation of its operations
and strategic focus shire decided to phase out operations at its sp
manufacturing facility at owings mills maryland this phase out was
successfully completed during 2011 
distribution
the company’s us distribution center for sp products which includes
a large vault to house us drug enforcement administration “dea”
regulated schedule ii products is located in kentucky from there 
the company primarily distributes its products through the three major
wholesalers who have hub or distribution centers that stock schedule ii
drugs in the us providing access to nearly all pharmacies in the us 
the distribution and warehousing of hgt products for the us market 
is contracted out to specialist third party contractors 
the company ships dermagraft from its la jolla california facility
using third party carriers that are experienced in coldchain logistics as
well as from a third party carrier and distributor’ s site located in louisville
kentucky from which the company ships the majority of dermagraft
intended for customers located in the eastern part of the us
outside of the us physical distribution of sp and hgt products is
either contracted out to third parties where the company has local
operations or facilitated via distribution agreements where the
company does not have local operations
material customers
the company’s three largest trade customers are cardinal health inc
mckesson corp and amerisourcebergen which are based in the us
in 2011 these wholesale customers accounted for approximately 23
19 and 7 of product sales respectively
intellectual property 
an important part of the company’s business strategy is to protect its
products and technologies through the use of patents and trademarks
to the extent available the company also relies on trade secrets
unpatented knowhow technological innovations and contractual
arrangements with third parties to maintain and enhance its
competitive position where it is unable to obtain patent protection 
or where marketed products are not covered by specific patents 
the company’s commercial success will depend in part upon its
ability to obtain and enforce strong patents to maintain trade secret
protection to operate without infringing the proprietary rights of others
and to comply with the terms of licenses granted to it the company’s
policy is to seek patent protection for proprietary technology whenever
possible in the us canada major european countries and japan
where practicable the company seeks patent protection in other
countries on a selective basis in all cases the company endeavors 
to either obtain patent protection itself or support patent applications
by its licensors the markets for some of the potential products for 
rare genetic diseases caused by protein deficiencies are small and
where possible the company has sought orphan drug designation 
for products directed to these markets
in the regular course of business the company’s patents may 
be challenged by third parties the company is a party to litigation 
or other proceedings relating to intellectual property rights 
details of ongoing litigation are provided in note 20 “commitments 
and contingencies” to the consolidated financial statements
the degree of patent protection afforded to pharmaceutical inventions
around the world is uncertain if patents are granted to other parties
that contain claims having a scope that is interpreted by the relevant
authorities to cover any of the company’s products or technologies
there can be no guarantee that the company will be able to obtain
licenses to such patents or make other arrangements at reasonable
cost if at all 
the existence scope and duration of patent protection varies among 
the company’ s products and among the different countries where 
the company’ s products may be sold they may also change over the
course of time as patents are granted or expire or become extended
modified or revoked the following nonexhaustive list sets forth details 
of granted us and ep patents pertaining to the company’ s material
products and certain products from which the company receives a
royalty which are owned by or licensed to the company and that are
8446 annual report 2011annual report 2011  15032012  1611  page 14 c annual report 2011 shire plc annual report 2011 15
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important to an understanding of the company’ s business taken as 
a whole the listed ep patents do not necessarily have a corresponding
national patent registered in each eu member state and the rights
granted pursuant to an ep patent are enforceable only in the eu member
state where the ep patent has been registered as a national patent 
the expiration dates set forth below do not necessarily reflect changes 
to the patent term afforded by patent t erm extensions in the us nor
supplementary protection certificates “spcs” which are available in
many eu member states the company also holds patents in other
jurisdictions such as canada and japan and has patent applications
pending in such jurisdictions as well as in the us and the eu
competition 
shire believes that competition in its markets is based on among 
other things product safety efficacy convenience of dosing reliability
availability and price companies with more resources and larger rd
expenditures than shire have a greater ability to fund the research and
clinical trials necessary for regulatory applications and consequently
may have a better chance of obtaining approval of drugs that would
then compete with shire’s products other products now in use or
being developed by others may be more effective or have fewer side
effects than the company’s current or future products the market
share data provided below is sourced from ims health
adhd market 
competition in the us adhd market has increased with the launch 
of competing products in recent years including the launch of an
authorized generic version of concerta and ritalin la in 2011 
and the launch of authorized generic adderall xr by teva and
impax in 2009 in late 2010 kapvay twice daily clonidine extended
release was approved by the fda for the treatment of adhd and 
was launched in the us by shionogi  co ltd in 2011 shire’s share 
of the us adhd market in december 2011 was 27 9 compared 
to 245 in december 2010 overall the us adhd market grew 
by 104 in the year to december 31 2011 compared to 124 
in the same period in 2010
shire’s key adhd market is the us with the company having three
products for the treatment of adhd vyvanse adderall xr and
intuniv shire also has adhd products in canada brazil mexico
south korea and selected eu markets and further geographic
expansion plans are underway including a collaboration with shionogi
and co ltd to develop and sell adhd products in japan
key branded competitors in the us are stimulants concerta and
focalin xr and nonstimulants strattera and kapvay generic
immediate release stimulants which constitute 286 of the adhd
market ims npa december 2011 are also formidable in the us
adhd market growing 24 in the year from december 31 2010 
to december 31 2011
key competitors in the european adhd market are concerta
janssencilag ritalin la novartis medikinet medice and
distributors and strattera eli lilly depending upon the country 
the canadian market continues to show strong growth driven
particularly by the adult market concerta is the number one 
selling brand in volume and share although for the moving annual 
total “mat” ending november 2011 generic methylphenidate 
volume and share grew by 15 and 2 respectively both the brazilian 
and mexican markets are growing strongly and in brazil which is
predominantly an ir market there is increasing penetration of the
extended release brands 
the company is also aware of several clinical development programs
underway by other pharmaceutical companies eli lilly and company
limited targacept otsuka pharmaceutical co ltd nextwave
pharmaceuticals inc purdue alcobra in collaboration with teva
theravance euthymics neuroderm durect pharma and supernus 
are seeking to develop additional treatment options for adhd
gi
ulcerative colitis “uc” market 
uc is a type of inflammatory bowel disease the first line treatments 
for patients with mild to moderate uc are formulations containing
mesalamine also known as 5asa shire defines the 5asa
competitive set as the nonsulfasalazine oral mesalamine and
mesalamine prodrug products 
the us oral 5asa market is led by warner chilcott’s asacol 
in december 2011 asacol had a 37 4 share of the oral 5asa
market declining from 422 in december 2010 
in december 2011 shire’s share of the us uc market was 358
compared to 345 in december 2010
the eu oral 5asa market was somewhat more fragmented all data 
in this paragraph is stated as at november 2011 ferring’s pentasa
and warner chilcott’s asacol were the major competitors across 
the eu pentasa marketed in the eu by ferring captured 296
versus asacol’s 190 share of the eu g5 oral 5asa market uk
germany spain italy and france warner chilcott’s asacol led 
the uk market with a 458 share followed by ferring’s pentasa
which had a 27 1 share the german market was led by dr falk’s
salofalk with 532 market share followed by ferring’s pentasa
with 18 share ferring’s pentasa and claversal were the 
leaders in the oral 5asa market in spain with 352 and 293
shares respectively in 2010 ferring launched a new competitor
pentasa 1g tablet in the eu and it has been launched in multiple
countries in 2010 and 2011
mesalamine and balsalazide mesalamine prodrug products are
generally protected by formulation patents only in december 2007  
the fda denied salix’s citizen petition for colazal and salix
subsequently announced the launch of an authorized generic version
by watson laboratories three other generic versions of colazal
were then introduced generic versions of colazal had a 7 5 
share of the us oral 5asa market in december 2011
in may 2011 cosmoferring submitted an maa in the eu for the 
oral corticosteroid budesonide mmx for the induction of remission 
in mild to moderate uc in december 2011 cosmosantarus
submitted an nda in the us for budesonide mmx for the same
indication if approved this will be a new competitor in 2012 or 2013
janssenmsd’s biologic remicade is approved for treatment and
maintenance of moderate to severe uc in the us canada and the eu
abbott submitted a supplemental nda “snda” in the us in late 2010
and the ema in early 2011 for an indication in moderate to severe uc
for humira
the company is aware of other 5asa and nonasa biologic
treatments in development for uc by tillotts salix janssen cosmo
pfizer and millenium
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chronic constipation market
in europe overthecounter and prescription laxatives are the current
first line therapy for chronic constipation the highest value laxative 
by revenue is movicol a polyethylene glycol “peg” 3350 sold by
norgine in europe resolor is indicated for symptomatic treatment
of chronic constipation in women in whom laxatives fail to provide
adequate relief and currently there are no other products available 
in the eu with the same indication
almirall submitted an maa in the eu in september 2011 for a guanylate
cyclase typec agonist linaclotide under license from ironwood for
the treatment of irritable bowel symptoms with constipation “ibsc”
which if approved would be a new competitor in the eu in 2012 or
2013 ironwood submitted an nda in october 2011 for linaclotide 
in the us for the treatment of ibsc and chronic constipation 
if approved we expect ironwood and forest who are co developing
and copromoting linaclotide in the us to launch linaclotide in 2012 
or 2013 in the us
in august 2011 sucampo submitted an maa in the uk for the chloride
channel activator lubiprostone for chronic idiopathic constipation
which if approved would be a new competitor in the uk in 2012
the company is aware of other therapies for the treatment of chronic
constipationibsc being developed by synergy pharmaceuticals inc
aryx therapeutics theravance inc sucampo pharmaceuticals inc
and albireo
markets for the treatment of rare genetic diseases
competitors for lsds include actelion ltd protalix biotherapeutics
inc “protalix” and genzyme for example replagal competes 
with genzyme’s fabrazyme and vpriv competes with genzyme’s
cerezyme actelion’s zavesca and will compete with the protalix
compound taliglucerase alfa worldwide rights outside of israel licensed
to pfizer if approved shire is aware of two companies korea green
cross corporation and jcr pharmaceuticals co ltd that are
developing erts for the treatment of hunter syndrome jcr and 
isuabxis also have early stage biosimilar programs for gaucher 
and fabry disease and harvest moon and dong a pharmaceuticals
have early stage biosimilar programs for gaucher disease
firazyr competes in europe with csl behring’s berinert p  
a human plasmaderived c1esterase inhibitor c1inh product 
and with pharming group nv ’s ruconest a recombinant version 
of c1inh which has been launched in certain european countries 
by swedish orphan biovitrum firazyr also competes in europe with
viropharma’s cinryze another human plasmaderived c1esterase
inhibitor c1inh product which was approved in 2011 for both acute
treatment and prevention of acute hae attacks firazyr competes 
in the us with berinert and with dyax corporation’s kalbitor 
a plasma kallikrein inhibitor viropharma’s cinryze is approved in the
us only for prophylaxis of hae attacks
for more information on orphan drug designation see “government
regulation” below
regenerative medicine
the medical device and biotechnology industries are characterized 
by rapidly advancing technologies intense competition and a strong
emphasis on proprietary products competition in the regenerative
medicine industry is particularly intense due largely to the fact that
regenerative medicine products currently compete with both traditional
and advanced products as well as bioengineered products
dermagraft competes with other products based on efficacy 
price reimbursement ease of use and healthcare provider education 
dermagraft competes in the us against other living cell products
such as organogenesis’s apligraf and also against manufacturers 
of traditional wound care products including healthpoint’s regranex
healthpoint’s oasis matrix products and soluble system’s
theraskin in addition dermagraft competes against advanced
mechanical technologies such as negative pressure wound therapy
negative pressure wound therapy uses a vacuum to remove excess
fluid and cellular waste that create inflammation and hinder ulcer
healing current competitors include kci’s v ac therapy and smith 
 nephew’s renasys 
hiv market 
the hiv competitive landscape is becoming more crowded and
complicated as treatment trends evolve the company’s
3tclamivudineepivir products all licensed to gsk are part of the
nucleosidenucleotide reverse transcriptase inhibitors “nrti”
market trizivir combivir and epzicomkivexa are part of the
combined nrti market truvada tenofoviremtricitabine sold by
gilead is the market leader in combination nrti in addition to the 
two nrti hiv markets in which lamivudine is sold there is competition
from nrtis pis and entry inhibitors
truvada and atripla efavirenzemtricitabinetenofovir crossclass
fixed dose combination also sold by gilead both represent the most
direct competition to lamivudine
several generic drug companies have filed abbreviated new drug
applications “andas” seeking approval for epivir combivir 
and epzicom in the us and several tentative approvals of generic
lamivudine have been issued by the fda in december 2011 the 
fda approved generic versions of epivir that are manufactured 
by aurobindo and apotex
business strategy overview
the market in which the company conducts its business is 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 annual fees to be paid by
both pharmaceutical manufacturers from 2011 and medical device
companies from 2013 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
8446 annual report 2011annual report 2011  15032012  1611  page 16 shire plc annual report 2011 17
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c annual report 2011
the healthcare industry is also experiencing
� pressure from governments and healthcare 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 to become the world’s leading specialty
biopharmaceutical company has been developed to address these
industrywide competitive pressures this strategy has resulted in 
a series of initiatives in the following areas
markets
historically shire’s portfolio of approved products has been heavily
weighted towards the north american market the acquisition 
in 2005 of transkaryotic therapies inc “tkt” and the consequent
establishment of our hgt business together with the acquisitions of
jerini in 2008 which brought the hae product firazyr equasym
in 2009 which facilitated shire’s immediate access to the european
adhd market and movetis in 2010 which brought eu rights to
resolor and further developed our gi pipeline provided shire with
platforms to increase its presence in europe and the row thereby
working towards diversifying the risk associated with reliance on one
geographic market
in 2011 the sp and hgt businesses derived 15 and 80
respectively of their product sales from outside of the us currently 
all rm product sales are generated in the us shire’ s longterm mission 
is to increase the value of product sales from i outside of the us 
and ii outside of us uk germany france italy spain and canada
shire has made significant progress towards geographic diversification
with additional development and commercialization activities in 2011
in addition shire has ongoing commercialization and late stage
development activities which are expected to further supplement the
diversification of revenues in the future including the following
� continued launch of vyvanse in brazil marketed as venvanse
and the potential approval and launch of vyvanse in mexico
� filing in 2011 of an maa for vyvanse to be marketed as
venvanse in certain countries in the eu to support registration 
for treatment of adhd in children
� intuniv phase 3 clinical program to support submission 
of an maa in the eu
� continued rollout of vpriv in certain eu and latin american
countries
� continued rollout of firazyr in certain european and latin
american countries
� the lialdamezavant diverticulitis phase 3 program and
� continued rollout of resolor in the eu and the rest of the 
world “row”
rd
over the last five years shire has focused its rd efforts on products 
in its core therapeutic areas and concentrated its resources on
obtaining regulatory approval for later stage pipeline products within
these core therapeutic areas in addition to continued efforts in its 
late stage pipeline for the adhd gi hgt and rm therapeutic areas
shire has also progressed work on an earlier stage pipeline
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 seven years since january 2005
several products have received regulatory approval including in the
us elaprase in 2006 lialda and vyvanse in 2007  intuniv 
in 2009 vpriv in 2010 and firazyr in 2011 in the eu fosrenol
in 2005 elaprase and mezavant in 2007  and vpriv in 2010 
in canada vyvanse in 2010
shire’s strategy is focused on the development of product candidates
that have a lower risk profile as shire further expanded its earlier
phase pipeline rd costs in 2011 included expenditure on several 
preclinical to phase 3 studies for products in development as well 
as phase 3b and phase 4 studies to support recently launched
products in the sp and hgt businesses together with the development
of new projects in both the sp  hgt and rm businesses
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 manufacturers 
may enter the market generic manufacturers often do not need 
to complete extensive clinical studies when they seek registration 
of a copy product and accordingly they are generally able to sell 
the company’s drugs 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 the fda has 
not yet reached a decision on the citizen petition for adderall xr 
which was filed in october 2005 an fda decision which does 
not require generic followon products to complete successful 
bioequivalence or additional clinical testing could lead to increased
generic competition for adderall xr in addition to the authorized
generic versions which already exist 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 intuniv  fosrenol
lialda and adderall xr patents for more detail of current 
patent litigation see note 20 “commitments and contingencies” 
to the consolidated financial statements
8446 annual report 2011annual report 2011  15032012  1611  page 17 shire plc annual repo 18 shire plc annual report 2011
financial review
products under development
the company focuses its development resources on projects within its core therapeutic areas of adhd gi hgt and rm as well as early
development projects in additional therapeutic areas total rd expenditures of 7707 million 6615 million and 6399 million were incurred 
in the years to december 31 2011 2010 and 2009 respectively
the table below lists the company’s products in clinical development as of december 31 2011 by disease areas indicating the most advanced
development status reached in key markets and the company’s territorial rights in respect of each product candidate
specialty pharmaceuticals
                                                                                                                                                                               development status                        
product                                                                                              disease area                                           at december 31 2011                    the company’s territorial rights
treatments for adhd
intuniv extended release guanfacine                                        adhd                                        registration in canada        global
entered phase 3
in q1 2003                         
vyvansevenvanse lisdexamfetamine dimesylate                  adhd                                        registration in eu                global
entered phase 3
in q4 2008                         
intuniv                                                                           adhd                                        phase 3 in eu                      global
entered phase 3
in q2 2010                          
guanfacine carrier wave                                                 adhd and other                        phase 1                               global
cns disorders                           
treatments for gi diseases
lialda mesalaminemezavant mesalazine                          diverticulitis                                phase 3 globally                  global excluding italy 
entered phase 3                 and latin america
1
in q4 2007                         
resolor prucalopride                                                       chronic constipation                  phase 3 in eu                      europe
males                                       entered phase 3
in q4 2010                          
resolor prucalopride                                                       chronic constipation                  phase 3ready in us           us
5
spd557 m0003                                                               refractory gastroesophageal    phase 2                               eu and north america
reflux disease “rgerd”            
treatments for diseases in other therapeutic areas
xagrid                                                                           essential thrombocythaemia     phase 3 in japan                global
entered phase 3
in q4 2010                          
vyvanse lisdexamfetamine dimesylate                                      adjunctive therapy                     phase 3                               global
in major depressive                   entered phase 3
disorder “mdd”                       in q4 2011                          
vyvanse lisdexamfetamine dimesylate                                      excessive daytime                     phase 2                               global
sleepiness “eds”                     
vyvanse lisdexamfetamine dimesylate                                      negative symptoms                  phase 2                               global
of schizophrenia “nss”           
vyvanse lisdexamfetamine dimesylate                                      other non adhd                       phase 2                               global
indications in adults                   
spd535                                                                          arteriovenous grafts                  phase 1                               global
in hemodialysis patients             
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c annual report 2011
human genetic therapies
                                                                                                                                                                               development status                        
product                                                                                              disease area                                           at december 31 2011                    the company’s territorial rights
treatment for fabry
replagal agalsidase alfa                                                   fabry disease                            registration in the us          global
additional study initiated
to support us dossier 
q1 2010
4
                           
treatment for duchenne muscular dystrophy “dmd”
hgt4510                                                                        dmd                                          phase 2a currently              global excluding 
on clinical hold                    north america
2
enzyme replacement therapies “ert”
hgt2310                                                                        hunter syndrome with               phase 12                            global
3
central nervous system
“cns” symptoms 
idursulfaseit                             
hgt1410                                                                        sanfilippo syndrome                 phase 12                            global
mucopolysaccharidosis iiia      
hgt1110                                                                        metachromatic                           preclinical                            global
leukodystrophy “mld”            
hgt3010                                                                        sanfilippo syndrome                 preclinical                            global
mucopolysaccharidosis iiib     
regenerative medicine
                                                                                                                                                                               development status                        
product                                                                                              disease area                                           at december 31 2011                    the group’s territorial rights
treatment for diabetic foot ulcers “dfu”
dermagraft                                                                dfu                                           registration in canada        global
dossier submitted for
approval in q1 2011           
treatment for venous leg ulcers “vlu”
dermagraft                                                                vlu                                           phase 3                               global
entered phase 3
in q2 2009                         
1 mochida pharmaceutical co ltd has rights to develop and sell lialda in japan under license with shire
2 as a result of a license and collaboration agreement with acceleron pharma inc “acceleron”
3 genzyme has rights to manage marketing and distribution in japan and certain other asia pacific countries under a license with shire
4 replagal entered phase 3 in q4 1998 for registration outside the us
5 us rights were acquired from jj in january 2012
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financial review
specialty pharmaceuticals
treatments for adhd
intuniv for adhd in canada
in october 2011 shire submitted a new drug submission “nds”
seeking the approval in canada for intuniv for the treatment of 
adhd in children and adolescents aged 6 to 17  in december 2011
health canada accepted the nds for screening 
vyvansevenvanse for adhd in the eu 
in december 2011 shire submitted an maa seeking approval 
for vyvanse to be marketed as venvanse for the treatment 
of adhd in children aged 6 to 17  in january 2012 the ema 
accepted this maa for review
intuniv for adhd in the eu 
intuniv for the treatment of adhd in children aged 6 to 17 in the 
eu is in phase 3 development 
guanfacine carrier wave for the treatment of various 
cns disorders
a lead candidate has been selected for development and a phase 1
program has been initiated to determine safety and tolerability of this
compound the ongoing phase 1 program will be supportive of
potentially three different cnsrelated indications adhd hyperactivity
in autism spectrum disorder and pediatric anxiety
treatments for gi diseases
lialdamezavant for the treatment of diverticulitis
phase 3 worldwide clinical trials investigating the use of
lialdamezavant to prevent recurrent attacks of diverticulitis 
were initiated in 2007 and are ongoing
resolor for the treatment of chronic constipation in males
a phase 3 european clinical trial to further assess the efficacy 
of resolor for the treatment of chronic constipation in males 
was initiated in 2010 and is ongoing
resolor for the treatment of chronic constipation in the us
on january 10 2012 shire announced that it acquired the rights 
to develop and market resolor in the us in an agreement 
with janssen pharmaceutica nv  this product is phase 3ready 
and definitive plans will be implemented following discussions 
with regulatory authorities
spd557 for the treatment of refractory gerd
spd557 m0003 is a selective 5ht4 receptor agonist an exploratory
phase 2 program to investigate the effect of the product on reflux
episodes in patients currently treated with proton pump inhibitors 
was initiated in the fourth quarter 2010 and is ongoing
treatments for diseases in other therapeutic areas
xagrid for the treatment of essential thrombocythaemia in japan
a phase 3 clinical program has been initiated to assess the safety 
and efficacy of xagrid in adult essential thrombocythaemia patients
treated with cytoreductive therapy who have become intolerant to their
current therapy or whose platelet counts have not been reduced to an
acceptable level
lisdexamfetamine dimesylate “ldx” currently marketed 
as vyvanse in the us for the treatment of adhd for the
treatment of inadequate response in mdd
a phase 3 clinical program to assess the efficacy and safety of ldx 
as adjunctive therapy in patients with mdd was initiated in the fourth
quarter of 2011 and is ongoing 
ldx currently marketed as vyvanse in the us for the
treatment of adhd for the treatment of eds
based on discussions with regulatory agencies regarding potential
development pathways for ldx as a possible eds treatment option
phase 3 studies could begin in 2012
ldx currently marketed as vyvanse in the us for the
treatment of adhd for the treatment of nss
based on discussions with regulatory agencies regarding potential
development pathways for ldx as a possible nss treatment option
phase 3 studies could begin in 2012 
ldx currently marketed as vyvanse in the us for the
treatment of adhd for the treatment of other non adhd
indications in adults
shire is conducting a phase 2 pilot clinical trial to assess the efficacy
and safety of ldx for the treatment of binge eating disorder
spd535 for the treatment of improvement in potency 
of arteriovenous access in hemodialysis patients
spd535 is in development as a novel molecule with platelet lowering
ability and without phosphodiesterase type iii inhibition apparent at
clinically relevant doses data from phase 1 clinical trials demonstrated
positive proof of principle work is ongoing on additional phase 1
studies to support progression to a phase 2 proof of concept program
that will target prevention of thrombotic complications associated with
arteriovenous access in hemodialysis patients
projects in preclinical development
a number of additional projects are underway in various stages 
of preclinical development for the sp area including programs using
carrier wave technology more data on these programs is expected
throughout 2012
development projects discontinued in 2011
the company has discontinued the following sp development 
projects during the year ended december 31 2011
� fosrenol for the treatment of predialysis chronic kidney disease 
� juvista for the improvement of scar appearance
� spd556 for the treatment of ascites
� carrier wave molecules for the treatment of pain 
� resolor for the treatment of opioidinduced constipation
8446 annual report 2011annual report 2011  15032012  1612  page 20 shire plc annual report 2011 21
review of our business
c annual report 2011
human genetic therapies
treatments for fabry disease
replagal—for the treatment of fabry disease in the us
on october 24 2011 shire initiated a rolling biologics license
application “bla” for replagal in the us designated fast track 
by the fda the company submitted the final bla sections in
november 2011 in 2010 shire withdrew an earlier bla in order to
gather additional clinical data for replagal these data including
data from shire’s ongoing us treatment protocol have now been
evaluated and included in the new filing the bla has been accepted
for priority review and assigned an action date of may 17  2012
treatment for dmd
hgt 4510 for dmd
hgt4510 also referred to as ace031 was added to the shire 
hgt portfolio in 2010 through an exclusive license in markets outside 
of north america for the actriib class of molecules being developed
by acceleron the lead actriib drug candidate hgt4510 is in
development for the treatment of patients with dmd the phase 2a 
trial is on hold additional preclinical toxicology work will be conducted
in 2012 this product has been granted orphan designation in the 
us and the eu
ert
hgt 2310 for the treatment of hunter syndrome with cns
symptoms idursulfaseit intrathecal delivery
hgt2310 is in development as an ert delivered intrathecally for
hunter syndrome patients with cns symptoms the company initiated
a phase 12 clinical trial in the first quarter of 2010 this trial is ongoing
this product has been granted orphan designation in the us
hgt 1410 for sanfilippo a syndrome mucopolysaccharidosis iiia
hgt1410 is in development as an ert delivered intrathecally for 
the treatment of sanfilippo a syndrome mucopolysaccharidosis iiia
an lsd the product has been granted orphan drug designation in 
the us and in the eu the company initiated a phase 12 clinical trial 
in august 2010 this trial is ongoing
early research products
hgt 3010 for sanfilippo b syndrome mucopolysaccharidosis iiib
hgt3010 is in preclinical development as an ert delivered
intrathecally for the treatment of sanfilippo b syndrome
mucopolysaccharidosis iiib
hgt 1110—for the treatment of mld 
hgt1110 is in preclinical development as an ert delivered intrathecally
for the treatment of metachromatic leukodystrophy this product has
been granted orphan drug designation in the us and the eu
a number of additional early stage research projects are also underway
for the hgt business area
regenerative medicine
treatments for dfu
dermagraft—for the treatment of dfu
on march 21 2011 prior to acquisition by the company abh filed 
a class iv medical device application to health canada to seek
approval for dermagraft for the treatment of dfu
treatments for vlu
dermagraft—for the treatment of vlu
on august 24 2011 shire announced its preliminary analysis of the
topline results from abh’s phase 3 pivotal trial of dermagraft 
in subjects with vlu the international pivotal trial was designed 
as a prospective multicenter randomized controlled clinical study 
to assess the product’s safety and efficacy in the promotion of 
healing vlu the preliminary analysis of the data was that the trial 
did not meet the primary endpoint mutually agreed with the fda and 
ema and a subsequent detailed analysis of the data set is ongoing
business development
shire seeks to focus its business development activity on the
acquisition and inlicensing of products and projects which have the
benefit of longterm patent protection andor data exclusivity other
forms of market exclusivity andor barriers to entry
through the acquisition of abh in 2011 shire obtained dermagraft
which is currently marketed in the us for the treatment of dfu
through the acquisition of movetis in 2010 shire obtained the recently
launched resolor a promising gi pipeline and worldclass rd
talent in addition in early 2012 shire acquired the rights to market
resolor in the us in 2010 shire also acquired an exclusive license 
in markets outside of north america for the actriib class of molecules
being developed by acceleron the collaboration with acceleron will
initially focus on further developing hgt4510 also called ace031 
for the treatment of patients with dmd
in 2009 shire acquired the worldwide rights excluding the us
canada and barbados to equasym and equasym xl from ucb
and entered into a research collaboration with santaris pharma as
“santaris” for the development of its locked nucleic acid “lna” 
drug platform technology 
organization and structure
in the third quarter of 2011 following the acquisition of abh 
an organizational realignment was carried out following this 
reorganization the company now has three business units 
and three reporting segments sp  hgt and rm which currently
comprises only the abh business
during 2010 to support the company’s mission to increase the
proportion of product sales generated outside of the us shire
established an international commercial hub in switzerland
8446 annual report 2011annual report 2011  15032012  1612  page 21 shire plc annual repo 22 shire plc annual report 2011
financial review
2011 performance overview
our purpose
we enable people with lifealtering conditions to lead better lives
our mission statement
by 2015 shire aspires to be the most valuable specialty
biopharmaceutical company in the world
to achieve these results shire aims to
� deliver leading financial performance within our peer group
� attain the number 1 or number 2 position in each of our chosen
therapeutic areas as measured by global market share
� continued longterm revenue and profit growth trajectory
� focus on markets with high unmet needs and demonstrate 
clinical and economic value to all stakeholders
our strategy principles
our purpose and mission are supported by a set of underlying strategy
principles
� specialist focus symptomatic diseases unmet needs niche
markets
� focus on our best opportunities and be prepared to exit
underperforming or low priority assets and businesses
� strong bias towards outsourcing nondifferentiating capabilities and
� strong bias towards projects and technologies that are lowerrisk
and allow for a quick development decision point
kpis
shire measures its performance against its mission statement and
strategy using a corporate scorecard the objectives and kpis in the
corporate scorecard are reviewed and approved by the company’s
remuneration committee which also assesses how the group has
performed against those kpis the 2011 corporate scorecard included
the following financial and non financial kpis
financial kpis
achieve revenue growth from net product sales
revenue growth from net product sales ’bn
revenues from net product sales in 2011 were up 26 to 39 billion
driven by strong growth across the portfolio including vyvanse
up 27 to 805 million adderall xr up 48 to 533 million
replagal up 35 to 475 million elaprase up 15 to
465 million lialdamezavant up 27 to 372 million 
intuniv up 34 to 223 million and vpriv up 79 to 256 million
product sales in 2011 also included 105 million of dermagraft
sales made subsequent to the acquisition of abh
2011 39
2010 31
2009 27
achieve ebitda
1
 growth
ebitda ’m
1 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 126 to 128
non gaap ebitda increased by 27 to 1478 million in 2011
as higher revenues up 23 to 4263 million grew at a faster rate 
than rd and selling general and administrative “sga” expenditure
which allowed the group to absorb the effects of increased investment
in our targeted rd programs and increases in sga activities to
support our product launches and continued growth
2011 1478
2010 1165
2009 982
2 net product sales from geographic markets outside of the us
product sales from exus markets were up 276 million or 25
in 2011 product sales from exus markets as a proportion of
the group’s total product sales in 2011 remained constant at 35
2011 35
2010 35
2009 30
3 roic – non gaap return on invested capital see page 125 for a deﬁnition
non gaap roic grew by 210 basis points in 2011 over 2010 
primarily due to higher product sales up 26 and continued 
operating leverage leading to an increase in margins together 
with improvements in net asset efﬁciency
2011 v 2010 210
2010 v 2009 190
2009 v 2008 –240
achieve sales growth from exus markets
2
sales from outside the us 
achieve roic growth
3
yearonyear roic growth basis points
8446 annual report 2011annual report 2011  15032012  1612  page 22 shire plc annual report 2011 23
review of our business
c annual report 2011
non financial kpis
non financial kpis for 2011 included
achieve diversity of experiences and capabilities that reflect 
the expanding geographic diversity of shire’s business
shire aims to ensure that its talent base has the experience and
capabilities to support its growing business including a reflection 
of geographic diversity
shire has identified a group of global leadership capabilities against
which potential company leaders will be assessed shire aims to have
possible successors in place for all of its leaders and to ensure that
those individuals have formal development plans to round out their
experience and skills this includes developing geographic diversity
through international assignments and onthejob development diversity
metric reports are generated and reviewed by the organization regularly
succession plans for the executive leadership team are also regularly
reviewed by the board and this process is replicated by executive
management throughout the organization at all management levels 
continue to foster a culture of compliance
shire aims to ensure that maintaining high ethical standards and
compliance are central to everything we do shire’ s compliance function
conducts regular training for employees distributors agents and other
partners doing business with shire in 2011 the compliance program
included extensive training on shire’s antibribery policies as well 
as policies and procedures concerning interactions with physicians
create an environment in which employees are highly engaged
and committed to achieving shire’s goals
shire believes that high levels of employee engagement are key 
to driving achievement of the company’s goals 
over the past few years shire has conducted a regular employee
engagement survey which this year demonstrated impressive gains 
on employee engagement the outputs are used to identify ways to
improve employee engagement throughout the company survey results
showed that shire’ s workforce is highly supportive of our culture and
mission to “enable people with lifealtering conditions to lead better lives”  
demonstrate value to all of shire’s customer segments
shire seeks to demonstrate that its products provide value to all 
of its stakeholders including patients physicians and payors 
shire recognizes that for its products to be successful they need 
to demonstrate clinical and economic value to all stakeholders 
measures of success in 2011 against these markers included
� increases in market share in its adhd gi hgt and rm therapeutic
areas
� completion of patient physician and payor surveys for certain
products that will help us continue to meet stakeholder needs
� demonstration of clinical value through the approval of 
—firazyr for selfadministration in the eu and us
—intuniv in the us as adjunctive therapy to stimulants for the
treatment of adhd for children and adolescents
—lialda in the us and canada for maintenance of remission 
of ulcerative colitis
� development of dossiers for certain products that demonstrate
economic value to support their pricing and reimbursement
results of operations for the years to december 31 2011 and 2010
financial highlights for the year to december 31 2011 are as follows
� product sales in 2011 were up 26 to 3950 million 
2010 3128 million on a constant exchange rate “cer”
1
basis which is a non gaap measure product sales were up 24
product sales growth was generated from across the portfolio
particularly vyvanse up 27 to 805 million adderall xr 
up 48 to 533 million replagal up 35 to 475 million
elaprase up 15 to 465 million lialdamezavant up 27
to 372 million and vpriv up 79 to 256 million product sales 
in 2011 also benefited from 105 million of dermagraft sales
made subsequent to the acquisition of abh
� total revenues in 2011 exceeded 4 billion for the first time
increasing by 23 non gaap cer up 21 to 4263 million
2010 3471 million the strong product sales growth more than
offset decreased royalties and other revenues down 9 due to
lower 3tc and zeffix royalties 
� operating income was up 40 to 1109 million 2010 794 million
as total revenues grew at a faster rate than rd and sga
expenditure operating income in 2010 included impairment charges
recorded on the divestment of daytrana and an up front payment
of 45 million to acceleron 
� diluted earnings per ordinary share were up 43 to 1509¢ 
2010 1053¢ due to higher operating income and a lower effective
tax rate in 2011 of 21 2010 24 
1 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 2011 product sales and revenues restated using 2010
average foreign exchange rates to 2010 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 2011 were 160£100 and 139€100 2010 155£100 and
133€100
8446 annual report 2011annual report 2011  15032012  1612  page 23 shire plc annual repo 24 shire plc annual report 2011
financial review
total revenues
the following table provides an analysis of the group’s total revenues by source
                                                                                                       2011                           2010                      change
year to december 31                                                           ’m                            ’m                               
product sales                                                      39502               31282                  26
royalties                                                                 2835                  3281                  –14
other revenues                                                         297                    148                101
total                                                                    42634                34711                  23
product sales
                                                                                                   year to                        year to
                                                                                        december 31            december 31            product sales         non gaap cer          us prescription                 exit market
                                                                                                       2011                           2010                        growth                        growth                        growth
1
                       share
1
                                                                                                         ’m                            ’m                                                                                                                             
specialty pharmaceuticals
adhd                                                                                                                                                                                                                         
vyvanse                                                               8050                  6342                     27                     27                     21                        17
adderall xr                                                       5328                  3608                     48                     47                     11                         7
intuniv                                                                 2230                  1659                     34                     34                     78                         4
equasym                                                                199                    220                      –10                      –14                      na
2
                    na
2
daytrana                                                                   –                    494                      na
4
                    na
4
                    na
4
                    na
gi                                                                                                                                                                                                                                
lialdamezavant                                               3721                  2934                     27                     26                       9                       21
pentasa                                                               2514                  2359                       7                       7                       –2                        14
resolor                                                                   61                      03                      na                      na                      na
3
                    na
3
general products                                                                                                                                                                                                      
fosrenol                                                             1669                  1821                       –8                      –11                      –16                         5
xagrid                                                                    906                     87 3                       4                       –1                      na                      na
2
carbatrol                                                            523                    823                     –36                     –36                     –30                         1
other product sales                                                  955                  1056                      –10                      –13                      na                      na 
                                                                            26156               22192                     18                                                                                   
human genetic therapies                                                                                                                                                                               
replagal                                                             4752                   3513                     35                     30                      na
3
                    na
3
elaprase                                                             4649                  4036                     15                     12                      na
2
                    na
2
vpriv                                                                     2562                  1430                     79                     76                      na
2
                    na
2
firazyr                                                                  330                     111                   197                   188                      na
2
                    na
2
                                                                            12293                  9090                     35                                                                                   
regenerative medicine                                                                                                                                                                                     
dermagraft                                                       1053                          –                      na                      na
5
                    na
2
                    na
2
total rm product sales                                           1053                          –                      na                                                                                   
total product sales                                            39502               31282                     26                                                                                   
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 2011
2 ims npa data not available
3 not sold in the us in the year to december 31 2011
4 the company divested daytrana to noven effective october 1 2010
5 dermagraft was acquired by shire on june 28 2011
8446 annual report 2011annual report 2011  15032012  1612  page 24 shire plc annual report 2011 25
review of our business
c annual report 2011
specialty pharmaceuticals
vyvanse—adhd
vyvanse product sales grew strongly in 2011 as a result of higher
prescription demand due to an increase in vyvanse’s market share
and growth in us adhd market 10 and the effect of a price
increase taken in 2011 these factors more than offset the effect of 
destocking and higher sales deductions in 2011 compared to 2010
litigation proceedings regarding vyvanse are ongoing further
information about this litigation can be found in note 20 “commitments
and contingencies” to the consolidated financial statements
adderall xr—adhd
adderall xr product sales grew by 48 or 172 million principally
as a result of lower sales deductions as a percentage of branded gross
product sales increases in us prescription demand in line with growth
in the us adhd market and a price increase taken during 2011 
sales deductions in 2011 represented 57 of branded gross product
sales 2010 65 of branded gross product sales the decrease 
in sales deductions was primarily due to the lowering of our estimate 
of inventory in the us retail pipeline and the related sales deduction
reserve in the third quarter of 2011 representing 2 of gross 
product sales in 2011 and the mix of customer sales affecting the
rebate calculation the eight percentage point decrease in sales
deductions as a percentage of branded gross product sales
contributed 85 million to adderall xr’s net product sales in 2011
adderall xr sales deductions in 2012 are expected to be in the
range of 60–65
there are potentially different interpretations as to how shipments 
of authorized generic adderall xr to teva and impax should be
included in the medicaid rebate calculation since authorized generic
launch in 2009 the company has recorded its accrual for medicaid
rebates based on its best estimate of the rebate payable consistent
with the company’s interpretation of the medicaid rebate legislation
shire believes that its interpretation of the medicaid rebate legislation 
is reasonable and correct additionally from october 1 2010 forward
provisions of the 2010 affordable care act provide further clarity 
in a manner consistent with the company’s interpretation as to how
shipments of authorized generics from that date should be included 
in the medicaid rebate calculation 
the cms could disagree with shire’s interpretation of the medicaid
rebate legislation for shipments of authorized generic products prior 
to october 1 2010 cms could require shire to apply an alternative
interpretation of the medicaid rebate legislation and request that shire
pays up to 212 million above the recorded liability however shire
believes it has a strong legal basis supporting its interpretation of the
medicaid rebate legislation and that there would be a strong basis 
to limit any additional payment to a level approximating the full 
unrebated cost to the states of adderall xr equivalent to
approximately 134 million above the recorded liability and to initiate
litigation to recover any amount paid in excess of the recorded liability
the result of any such litigation cannot be predicted 
litigation proceedings regarding adderall xr are ongoing further
information about this litigation can be found in note 20 “commitments
and contingencies” to the consolidated financial statements
intuniv—adhd
intuniv product sales were up 34 compared to 2010 primarily
driven by significant growth in us prescription demand together with 
a price increase taken during 2011 these positive factors were offset
by lower stocking and higher sales deductions in 2011 compared 
to 2010 and the effect of the inclusion of launch stocking shipments
within reported 2010 product sales
litigation proceedings relating to the company’s intuniv patents 
are in progress for further information see note 20 “commitments
and contingencies” to the consolidated financial statements
lialdamezavant—ulcerative colitis
the growth in product sales for lialdamezavant in 2011 was
primarily driven by higher us prescription demand following increases in
us market share a price increase taken since the fourth quarter of 2010
and the effect of stocking in 2011 compared to destocking in 2010 
litigation proceedings regarding lialdamezavant are ongoing
further information about this litigation can be found in note 20
“commitments and contingencies” to the consolidated financial
statements
pentasa—ulcerative colitis
product sales of pentasa continued to grow despite lower us
prescription demand due to the impact of a price increase taken
during 2011
fosrenol—hyperphosphatemia
product sales of fosrenol outside the us decreased marginally
primarily because of mandatory price reductions that were imposed in
several key markets product sales of fosrenol in the us decreased
due to lower us prescription demand and higher sales deductions
compared to 2010 which more than offset a 2011 price increase
litigation proceedings regarding shire’s fosrenol patents are
ongoing further information about this litigation can be found in 
note 20 “commitments and contingencies” to the consolidated
financial statements
human genetic therapies
replagal—fabry disease
the 35 growth 30 on a non gaap cer basis in replagal
product sales was driven by the treatment of new patients being 
both naïve patients and switches from patients being treated with
fabrazyme reported replagal sales also benefited from
favorable foreign exchange due to the weaker us dollar over the
course of 2011 compared to 2010
litigation proceedings regarding replagal are ongoing further
information about this litigation can be found in note 20 “commitments
and contingencies” to the consolidated financial statements
elaprase—hunter syndrome
product sales for elaprase increased as a result of increased patients
on therapy across all regions in which elaprase is sold reported
elaprase sales also benefited from favorable foreign exchange
8446 annual report 2011annual report 2011  15032012  1612  page 25 shire plc annual repo 26 shire plc annual report 2011
financial review
vpriv—gaucher disease
vpriv product sales growth was driven by the treatment of new
patients being both naïve patients and patients switching from
cerezyme reported sales also benefited from favorable foreign
exchange
firazyr—hae
the significant growth rate in global product sales in 2011 follows 
the successful launch of firazyr in the us in august 2011 
and the approval for selfadministration in the eu in march 2011
regenerative medicine
dermagraft—dfu
dermagraft continues to see strong revenue growth in the us up
33 for the full year 2011 compared to the full year 2010
1
 the growth
resulted from a combination of an expanding us diabetic population
continued adoption of dermagraft as a treatment for dfu and 
the continued investment in marketing programs and additional sales
representatives to market the product
1 shire acquired dermagraft through its acquisition of abh in june 2011
royalty income decreased in 2011 compared to 2010 as lower 
royalties from 3tc and zeffix more than offset higher royalty income
from adderall xr and fosrenol 
royalty income from 3tc and zeffix continues to be adversely
impacted by increased competition from other products additionally
with effect from the second quarter of 2011 shire has not recognized
royalty income for 3tc and zeffix in certain territories due to a
disagreement between gsk and shire about how the relevant royalty
rates should be applied given the expiry dates of certain patents 
gsk and shire are holding discussions in order to seek to resolve the
disagreement in 2012 royalty terms for 3tc and zeffix will begin 
to expire in most territories outside of the us and in the us royalty
terms for 3tc and zeffix expire between 2014 and 2018 
after expiry the company will cease to receive royalties from gsk 
on sales of 3tc and zeffix in those territories
cost of product sales
cost of product sales increased to 5881 million for the year to
december 31 2011 15 of product sales up from 4634 million 
in the corresponding period in 2010 15 of product sales 
cost of product sales as a percentage of product sales stayed
constant as the effect of slightly higher margins from existing products
and lower costs incurred on the transfer of manufacturing from 
owings mills in 2011 were offset by the inclusion of dermagraft
including the unwind of the fair value adjustment for inventory acquired
with abh and a write down of expired elaprase unpurified bulk
material which was not prioritized for purification as capacity was
directed towards meeting demand for replagal and vpriv in 2011
for the year to december 31 2011 cost of product sales included
depreciation of 398 million 2010 381 million
rd 
rd expenditure for the year to december 31 2011 increased 
to 7707 million 20 of product sales compared to 6615 million 
in the corresponding period in 2010 21 of product sales 
rd in 2010 included an up front payment of 450 million
representing 1 of product sales on entering the collaboration with
acceleron for development of the actriib class of molecules excluding
this up front payment rd increased by 1542 million in 2011
reflecting the company’s continued investment in a number of targeted
rd programs including new uses for vyvanse sanfilippo and other
development programs in addition rd in 2011 also included a full
year of movetis’s development programs and abh’s expenditure in the
second half of 2011 an impairment charge of 160 million 2010 nil
in respect of certain iprd assets and the adverse impact of foreign
exchange in 2011 compared to 2010
for the year to december 31 2011 rd included depreciation 
of 252 million 2010 190 million and an impairment charge 
of 160 million 2010 nil
sga 
sga expenses increased to 17514 million 44 of product 
sales for the year to december 31 2011 from 15263 million
49 of product sales in the corresponding period in 2010 
in 2010 sga included an impairment charge of 427 million to 
write down the daytrana intangible asset to its fair value less costs
to sell prior to the divestment of daytrana to noven excluding 
this impairment charge sga increased by 267 8 million as the
company supported the growth of its existing and recently launched
products along with developing its international infrastructure 
sga in 2011 also included a full year of movetis’s operating costs
abh’s expenditure in the second half of 2011 and the adverse impact
of foreign exchange in 2011 compared to 2010
for the year to december 31 2011 sga also included depreciation 
of 631 million 2010 621 million and intangible asset amortization
of 1650 million 2010 1335 million
royalties
                                                                                                                                                                                                                2011                           2010                      change
year to december 31                                                                                                                                                     ’m                            ’m                               
adderall xr                                                                                                                                           1071                  1003                    7
3tc and zeffix                                                                                                                                           827                  1540                  –46
fosrenol                                                                                                                                                  465                    268                  74
other                                                                                                                                                            472                     47 0                    1
total                                                                                                                                                           2835                  3281                  –14
8446 annual report 2011annual report 2011  15032012  1612  page 26 shire plc annual report 2011 27
review of our business
c annual report 2011
reorganization costs
for the year to december 31 2011 shire recorded reorganization 
costs of 243 million 2010 343 million relating to the transfer 
of manufacturing from its owings mills facility to a third party and 
the establishment of an international commercial hub in switzerland
integration and acquisition costs
for the year to december 31 2011 shire recorded integration and
acquisition costs of 137 million 2010 80 million which related 
to the acquisition and integration of abh 136 million and the
integration of movetis 83 million offset by an adjustment 
to contingent consideration payable for equasym 82 million 
in 2010 integration and acquisition costs primarily related to the
acquisition of movetis
interest expense
for the year to december 31 2011 shire incurred interest expense 
of 391 million 2010 351 million interest expense principally relates
to the coupon and amortization of issue costs on shire’s 1100 million
275 convertible bonds due 2014
other incomeexpense net
for the year to december 31  2011 the company recognized other
income net of 181 million 2010 7 9 million other income in the year
to december 31  2011 included a gain of 235 million arising on the
disposal of substantially all of shire’ s holding in vertex shire received
these shares as partial consideration for its investment in virochem
following virochem being acquired by vertex other income in the year
to december 31  2010 included a gain of 11 1 million arising on the
disposal of shire’ s investment in virochem
taxation
the effective rate of tax in 2011 was 21 2010 24 the effective
tax rate in 2011 is lower than 2010 due to favorable changes in profit
mix in 2011 including the full year effect in 2011 of the company’s
establishment of an international commercial hub in switzerland in the
fourth quarter of 2010 together with the effect of certain expenses 
in 2010 including the up front payment to acceleron being incurred 
in territories with a tax rate lower than shire’s effective tax rate 
results of operations for the years to december 31 2010 and 2009
financial highlights for the year to december 31 2010 are as follows
� product sales were up 16 to 3128 million 2009 2694 million
product sales excluding adderall xr grew strongly through 2010
up 34 to 2767 million more than offsetting the decline in
adderall xr product sales down 42 to 361 million following
loss of market exclusivity in april 2009 on a non gaap cer
1
basis product sales excluding adderall xr were up 35 
� the 34 growth in product sales excluding adderall xr to
2767 million was driven by vyvanse up 26 to 634 million
replagal up 81 to 351 million lialdamezavant 
up 24 to 293 million and recently launched intuniv 
166 million and vpriv 143 million
� total revenues were up 15 non gaap cer up 16 
to 3471 million 2009 3008 million due to the growth 
in product sales and higher royalties up 12 to 328 million
� operating income increased by 174 million or 28 to 794 million
2009 620 million due to higher revenues and continued operating
leverage which allowed the company to absorb the effects of
increased investment in its targeted rd programs and an increase
in selling general and administrative “sga” activities to support 
its recent and future growth 
� net income attributable to shire increased by 96 million to 
588 million 2009 492 million and diluted earnings per ordinary
share increased by 17 to 1053¢ 2009 897¢
1 the company’s management analyzes product sales and revenue growth for
certain products sold in markets outside of the us on a 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 computed by comparing 2010 product sales and revenues
restated using 2009 average foreign exchange rates to 2009 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 yearon
year performance on a comparable basis average key exchange rates for year 
to december 31 2010 were 155£100 and 133€100 2009 157£100 and
139€100 
total revenues
the following table provides an analysis of the group’s total revenues by source
                                                                                                                                                                                                                2010                          2009                      change
year to december 31                                                                                                                                                     ’m                            ’m                               
product sales                                                                                                                                          31282               26937                     16
royalties                                                                                                                                                    3281                  2925                     12
other revenues                                                                                                                                             148                     215                     –31 
total                                                                                                                                                         34711                3007 7                     15 
8446 annual report 2011annual report 2011  15032012  1612  page 27 shire plc annual repo 28 shire plc annual report 2011
financial review
product sales
                                                                                                    year to                        year to
                                                                                          december 31            december 31            product sales         non gaap cer          us prescription                 exit market
                                                                                                       2010                          2009                        growth                        growth                        growth
1
                       share
1
                                                                                                         ’m                            ’m                                                                                                                             
specialty pharmaceuticals                                                                                                                                                                          
adhd                                                                                                                                                                                                                         
vyvanse                                                               6342                  5047                     26                     26                     28                        15 
adderall xr                                                       3608                  6265                     –42                     –43                     –32                         7 
intuniv                                                                  1659                      54                      na
4
                    na
4
                    na
4
                       3 
daytrana                                                              494                     710                     –30                     –30                      na                      na
5
equasym                                                               220                    228                       –4                       1                      na                      na
2
gi                                                                                                                                                                                                                                
lialdamezavant                                               2934                  2359                     24                     24                     18                       20 
pentasa                                                               2359                  2148                     10                     10                       –5                        15 
resolor                                                                   03                          –                      na                      na                      na
3
                    na
3
general products                                                                                                                                                                                                      
fosrenol                                                             1821                  1844                       –1                       1                      –16                         6 
xagrid                                                                    87 3                    848                       3                       7                      na                      na
2
carbatrol                                                            823                    824                       1                       1                       –7                       57 
reminylreminyl xl                                            429                    424                       1                       2                      na                      na
2
calcichew                                                            389                    437                      –11                      –10                      na                      na
2
other product sales                                                  238                    194                     23                     17                      na                      na 
                                                                            22192               21382                       4                                                                                   
human genetic therapies                                                                                                                                                                               
elaprase                                                             4036                  3531                     14                     16                      na
2
                    na
2
replagal                                                             3513                  1938                     81                     87                      na
3
                    na
3
vpriv                                                                     1430                      25                      na
4
                    na                      na                      na
2
firazyr                                                                   111                      61                     82                     91                      na
3
                    na
3
                                                                               9090                  5555                     64                                                                                   
total product sales                                            31282               26937                     16                                                                                   
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 2010
2 ims npa data not available
3 not sold in the us in the year to december 31 2010
4 intuniv was launched in the us in the fourth quarter of 2009 in 2009 vpriv generated sales from early access programs prior to obtaining us and eu approval in 2010
5 the company divested daytrana to noven effective october 1 2010
specialty pharmaceuticals
vyvanse—adhd
the increase in vyvanse product sales was driven by both an
increase in vyvanse’s market share and us adhd market growth
12 as well as the effect of price increases taken since the fourth
quarter of 2009 these factors offset the effect of higher sales
deductions in 2010 due to the impact of increased medicaid rebates
principally as a result of us healthcare reforms
litigation proceedings regarding vyvanse are ongoing further
information about this litigation can be found in note 20 “commitments
and contingencies” to the consolidated financial statements
adderall xr—adhd
adderall xr product sales decreased due to lower us prescription
demand following the launch of authorized generic versions in 2009
which more than offset us adhd market growth and higher sales
deductions in 2010 65 of branded gross sales in 2010 compared 
to 47 in 2009 these factors more than offset the effects of stocking
in 2010 compared to destocking in 2009
litigation proceedings regarding adderall xr are ongoing further
information about this litigation can be found in note 20 “commitments
and contingencies” to the consolidated financial statements
intuniv—adhd
us prescription demand for intuniv continued to increase throughout
2010 intuniv was launched in the us in november 2009 and
product sales in 2010 included both shipments made in 2010 and 
the recognition into revenue of launch stocks which had been deferred
in 2009 in accordance with shire’s accounting policies
litigation proceedings relating to the company’s intuniv patents 
are in progress for further information see note 20 “commitments
and contingencies” to the consolidated financial statements
lialdamezavant—ulcerative colitis
product sales for lialdamezavant continued to grow in 2010
driven by an increase in us market share and price increases taken
since the fourth quarter of 2009 these factors were partially offset 
by higher sales deductions compared to the same period in 2009 
due in part to us healthcare reforms
8446 annual report 2011annual report 2011  15032012  1612  page 28 shire plc annual report 2011 29
review of our business
c annual report 2011
royalties
royalty revenue increased by 12 to 3281 million for the year to december 31 2010 2009 2925 million the following table provides an
analysis of shire’s royalty income
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                 2010                          2009                      change
year to december 31                                                                                                                                                                    ’m                            ’m                               
3tc and zeffix                                                                                                                                         1540                  1640                       –6
adderall xr                                                                                                                                           1003                    680                     48 
others                                                                                                                                                          738                    605                     22 
total                                                                                                                                                           3281                  2925                     12 
litigation proceedings regarding lialdamezavant are ongoing
further information about this litigation can be found in note 20
“commitments and contingencies” to the consolidated financial
statements
pentasa—ulcerative colitis
product sales of pentasa continued to grow despite lower us
prescription demand due to the impact of price increases taken 
during 2010
fosrenol—hyperphosphatemia
product sales of fosrenol outside the us increased by 6 primarily
because of higher prescription demand partially offset by mandatory 
price reductions that were imposed in 2010 product sales of fosrenol
in the us decreased by 7 due to lower us prescription demand and
higher sales deductions compared to 2009 which more than offset 
the effect of price increases taken since the fourth quarter of 2009 
litigation proceedings regarding shire’s fosrenol patents are
ongoing further information about this litigation can be found 
in note 20 “commitments and contingencies” to the consolidated
financial statements
human genetic therapies
elaprase—hunter syndrome
the growth in sales of elaprase was driven by new patients
commencing therapy across north america latin america and europe
middle east and asia on a non gaap cer basis sales grew by 16
replagal—fabry disease
the 81 growth 87 on a non gaap cer basis in replagal
product sales was driven by a significant increase in demand in 2010 
in all countries where replagal is sold as new patients commenced
therapy and existing patients switched to replagal from a competitor
product this was attributable in part to supply shortages of that
competitor product
litigation proceedings regarding replagal are ongoing further
information about this litigation can be found in note 20 “commitments
and contingencies” to the consolidated financial statements
vpriv—gaucher disease
following the grant of a marketing authorization from the european
commission on august 26 2010 vpriv is now being reimbursed on an
approved basis in several countries in the eu as well as in the us vpriv
was approved by the fda on february 26 2010 reimbursement 
on a preapproval basis continues in other eu countries 
firazyr—hae
product sales grew in line with increased volumes across markets 
in europe firazyr is the first new product for hae in europe in 
30 years and has orphan exclusivity for acute attacks of hae in adults
in the eu until 2018
the increase in royalty revenue in 2010 was primarily due to higher
royalties received on sales of authorized generic versions of
adderall xr adderall xr royalties have been received from
impax since october 2009 and were received from teva at a lower
rate between april and september 2009 royalties received for 
3tc and zeffix from gsk were lower in 2010 compared to 2009 
as 3tc based treatments continue to be adversely impacted by
increased competition from other products
cost of product sales 
cost of product sales increased to 4634 million for the year to
december 31 2010 15 of product sales up from 3880 million 
in the corresponding period in 2009 14 of product sales cost 
of product sales as a percentage of product sales increased by one
percentage point compared to 2009 as lower gross margins on
adderall xr in 2010 and higher costs incurred in 2010 on the
transfer of manufacturing from the company’s owings mills facility 
to a third party offset the positive effect on gross margins of recently
launched higher margin products and higher gross margins from
existing products excluding adderall xr
for the year to december 31 2010 cost of product sales included
depreciation of 381 million 2009 218 million depreciation 
charged in 2010 is higher than 2009 due to accelerated depreciation 
of 257 million 2009 120 million following a change in the estimate
of the useful lives of the property plant and equipment at shire’ s owings
mills facility as a result of the anticipated closure of the facility in 2011 
rd 
rd expenditure for the year to december 31 2010 increased to
6615 million 21 of product sales compared to 6399 million 
in the corresponding period in 2009 24 of product sales rd
expenditure in the year to december 31 2010 included the up front
payment of 450 million 1 of product sales on entering the
collaboration with acceleron for development of the actriib class 
of molecules rd in the year to december 31 2009 included 
369 million 1 of product sales related to the payment to amend 
an intuniv inlicense agreement 629 million 2 of product sales
following the agreement with duramed to terminate development 
of the women’s health products and the up front payment to 
santaris of 65 million for technology access and rd funding
excluding these termination license and up front payments rd
increased by 829 million in the year to december 31 2010 compared
to the same period in 2009 as the company continued to increase
investment in a number of targeted rd programs including
vyvanse international and investigative uses of vyvanse for new
indications guanfacine carrier wave rd programs acquired with
8446 annual report 2011annual report 2011  15032012  1612  page 29 shire plc annual repo 30 shire plc annual report 2011
financial review
movetis and other early stage development programs for the year 
to december 31 2010 rd included depreciation of 190 million
2009 155 million
sga 
sga expenses increased to 15263 million 49 of product sales
for the year to december 31 2010 from 13426 million 50 of
product sales in the corresponding period in 2009 sga increased 
in 2010 compared to the same period in 2009 due to costs incurred 
to support the launches of intuniv and vpriv  growth in new markets
and the inclusion of movetis operating costs from the fourth quarter 
of 2010 following completion of the acquisition for the year to
december 31 2010 sga also included depreciation of 621 million
2009 67 7 million intangible asset amortization of 1335 million
2009 1369 million and intangible asset impairment charges 
of 427 million 2009 nil to write down the daytrana intangible
asset to its fair value less costs to sell prior to divestment to noven
gain on sale of product rights
for the year to december 31 2010 the company recorded gains 
on sale of product rights of 165 million 2009 63 million of which
104 million 2009 nil resulted from the remeasurement of
contingent consideration receivable on divestment of daytrana 
to its fair value and 61 million 2009 63 million from the disposal 
of other noncore products 
reorganization costs
for the year to december 31 2010 shire recorded reorganization 
costs of 343 million 2009 127 million of which 130 million 
2009 127 million related to the transfer of manufacturing from its
owings mills facility to a third party and 213 million 2009 nil related
to the establishment of an international commercial hub in switzerland 
integration and acquisition costs
for the year to december 31 2010 the company recorded integration
and acquisition costs of 80 million 2009 106 million which 
in 2010 principally related to the acquisition of movetis and in 2009 
to the integration of jerini 
interest expense 
for the year to december 31 2010 the company incurred interest
expense of 351 million 2009 398 million interest expense
principally relates to the coupon and amortization of issue costs 
on shire’s 1100 million 275 convertible bonds due 2014 
other incomeexpense net
for the year to december 31 2010 the company recognized other
income net of 7 9 million 2009 607 million primarily due to the
recognition of a gain of 111 million 2009 552 million relating 
to the disposal of its investment in virochem in march 2009 at the 
time of disposal an element of the consideration was held in escrow 
for twelve months pending any warranty claims the consideration 
was released from escrow in march 2010 resulting in the remaining
gain being recognized in the year to december 31 2010
other incomeexpense net also includes a loss of 36 million in the
year to december 31 2010 relating to the extinguishment of building
finance obligations at lexington technology park and in 2009 
includes a gain of 57 million following the substantial modification 
of a property lease
taxation
the effective rate of tax in 2010 was 24 2009 22 
the effective rate of tax in 2010 benefited from increased profits in
lower tax territories including switzerland following the implementation
of an international commercial hub there in 2010 and an increase 
in us tax incentives notably the domestic production deduction
partially offset by up front payments to acceleron which were
deductible at tax rates lower than the company’s effective tax rate
the effective rate of tax in 2009 benefited from the decrease 
in valuation allowances relating to state tax credits and loss
carryforwards following massachusetts state tax changes and 
the favorable rate effect of the termination of the women’s health
development agreement with duramed and the amendment 
to the intuniv inlicense which were both tax effected at rates
higher than the company’s effective rate
financial condition at december 31 2011 and 2010
cash and cash equivalents 
cash and cash equivalents increased by 694 million to 6200 million
december 31 2010 5506 million cash generated by operating
activities of 10736 million and proceeds of 1060 million on disposal
of noncurrent investments and ppe were offset by the cost of
acquiring abh other capital expenditure the purchase of shares 
by the esot and dividend payments 
accounts receivable net
accounts receivable net increased by 1525 million to 8450 million
december 31 2010 6925 million due to increased total revenues 
in the year to december 31 2011 days sales outstanding remained
constant at 50 days december 31 2010 50 days
investments
investments decreased by 717 million to 299 million december 31
2010 1016 million due to the disposal of substantially all of the
company’s holding in vertex for a cash consideration of 947 million 
goodwill
goodwill has increased by 1901 million to 5926 million december
31 2010 4025 million principally due to goodwill arising on the
acquisition of abh
other intangible assets net
other intangible assets have increased by 5141 million to 
24930 million december 31 2010 19789 million principally 
due to intangible assets for dermagraft product technology 
of 7100 million acquired with abh offset by intangible asset
amortization and impairment charges of 1827 million
convertible bonds—current
convertible bonds—current have increased by 1100 million due to
the reclassification of the company’s 1100 million 275 convertible
bonds due 2014 and convertible into fully paid ordinary shares of 
shire plc the “bonds” from noncurrent to current liabilities in 2011  as
the exercise of the put option see “liquidity and capital resources”
below could require the company to redeem the bonds in 2012 
the company does not consider it likely that the put option will be
exercised in 2012 however if the bonds were redeemed in full in 2012
the company’s operating cash flow together with available cash cash
equivalents and the new rcf see “liquidity and capital resources”
below would be sufficient to fund repayment of the bonds in lieu of
settling any such redemption wholly in cash the terms of the bonds
also permit the company to deliver the underlying ordinary shares
and if necessary a cash topup amount
8446 annual report 2011annual report 2011  15032012  1612  page 30 shire plc annual report 2011 31
review of our business
c annual report 2011
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 esot of shire ordinary shares or adss in the market to satisfy
option exercises the timing and quantum of any amount that could be
paid by the company if cms were to employ an alternative interpretation
of the medicaid rebate legislation in respect of adderall xr medicaid
rebates for periods prior to october 1  2010 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 6200 million of cash and cash
equivalents at december 31  2011  substantially all of shire’ s debt
relates to its 1 100 million 275 convertible bond which matures in
2014 although these bonds include a put option as defined below
which could require repayment of the bonds in may 2012 in addition
shire has committed multicurrency revolving and swing line facilities 
of 1 200 million which mature in 2015 and are currently undrawn 
shire 275 convertible bonds due 2014 
on may 9 2007 shire issued the bonds and the net proceeds 
of the issuance after deducting the commissions and other direct 
costs of issue totaled 1 081 7 million in connection with the scheme
the trust deed was amended and restated in 2008 in order to 
provide that following the substitution of shire plc in place of shire
biopharmaceuticals holdings “old shire” as the principal obligor 
and issuer of the bonds the bonds would be convertible into 
ordinary shares of shire plc
the bonds were issued at 100 of their principal amount and 
unless previously purchased and canceled redeemed or converted 
will be redeemed on may 9 2014 the “final maturity date” at their
principal amount 
the bonds bear interest at 275 per annum payable semiannually 
in arrears on november 9 and may 9 the bonds constitute 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 may be redeemed 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 cancelations andor
redemptions effected in respect of 85 or more in principal amount 
of bonds originally issued the bonds may also be redeemed at the
option of the bondholder at their principal amount including accrued 
but unpaid interest on may 9 2012 the “put option” or following the
occurrence of a change of control of shire the bonds are 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 following exercise of the put option by 
delivery of the underlying ordinary shares and a cash topup amount
at february 21  2012 the bonds were trading at above par and the
company does not currently consider it likely that the put option will 
be exercised in 2012 however in accordance with us gaap  as the
exercise of the put option could require the company to redeem 
the bonds within twelve months of the balance sheet date the bonds 
have been presented as a current liability at december 31  2011 
the bonds are 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 14 days prior to the 
final maturity date ii if the bonds have been called for redemption 
by the company the close of business 14 days before the date fixed 
for redemption iii the close of business on the day prior to a
bondholder 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 bondholder 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 anti dilution 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
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 “new rcf” the new
rcf is for an aggregate amount of 1 200 million and canceled the
company’ s then existing committed revolving credit facility the “old
rcf” the new rcf  which includes a 250 million swingline facility
may be used for general corporate purposes and matures on
november 23 2015 
8446 annual report 2011annual report 2011  15032012  1612  page 31 shire plc annual repo 32 shire plc annual report 2011
financial review
the interest rate on each loan drawn under the new rcf for each
interest period is the percentage rate per annum which is the aggregate
of the applicable margin ranging from 090 to 225 percent per annum
and libor for the applicable currency and interest period shire also
pays a commitment fee on undrawn amounts at 35 percent per annum
of the applicable margin
under the new rcf it is required that i shire’ s ratio of net debt to
ebitda as defined within the new rcf agreement does not exceed 
35 to 1 for either the twelve 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 
new rcf agreement must not be less than 40 to 1  for either the 
twelve 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 new 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 new rcf  the
availability of the loans under the rcf is subject to customary conditions 
financing
shire anticipates that its operating cash flow together with available
cash cash equivalents and the new rcf will be sufficient to meet its
anticipated future operating expenses capital expenditures tax and
interest payments and lease obligations as they become due over the
next twelve months 
the company anticipates that its operating cash flow together with
available cash cash equivalents and the new rcf would be sufficient 
to enable repayment of the bonds if the put option was exercised 
in 2012 in lieu of settling any such redemption wholly in cash the 
terms of the bonds also permit the company to deliver the underlying
ordinary shares and if necessary a cash topup amount
if the company decides to acquire other businesses it expects 
to fund these acquisitions from existing cash resources the new 
rcf and possibly through new borrowings and the issue of new 
equity if necessary
sources and uses of cash 
the following table provides an analysis of the company’ s gross and 
net debt excluding restricted cash as at december 31  2011 and 2010
                                                                                                      2011 2010
december 31                                                                         ’m ’m
cash and cash equivalents
1
                                6200 5506 
shire 275 convertible bonds                         11000 11000 
building financing obligation                                      82 84 
total debt                                                           11082 11084 
net debt                                                               4882 557 8
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
cash flow activity
net cash provided by operating activities for the year to december 31 
2011 increased by 1187 million or 12 to 10736 million 2010
9549 million higher cash receipts from gross product sales and
lower cash tax payments were offset by the timing and quantum of
both sales deduction and operating expenditure payments and lower
royalty receipts in 2011 compared to 2010 
net cash provided by operating activities for the year to december 31
2010 increased by 3280 million to 9549 million 2009 6269
million primarily due to higher cash receipts from product sales and
royalties cash inflows from forward foreign exchange contracts in 2010
compared to outflows in 2009 partially offset by higher payments on
sales deductions operating costs and taxes in the year to december
31 2010 compared to the same period in 2009
net cash used in investing activities was 8092 million in the year 
to december 31 2011 principally relating to the cash paid net of cash
acquired of 7250 million for the acquisition of abh and expenditure
on property plant and equipment of 1943 million offset by proceeds
of 947 million received on the disposal of substantially all of shire’s
holding in vertex capital expenditure on property plant and equipment
includes 1100 million on construction work at hgt’s facility at
lexington technology park “ltp” 
net cash used in investing activities was 797 4 million in the year 
to december 31 2010 this included the cash paid net of cash
acquired of 4496 million for and payments of 334 million on 
foreign exchange contracts related to the acquisition of movetis 
in october 2010 and expenditure on property plant and equipment 
of 3266 million capital expenditure on property plant and 
equipment includes 1219 million for the acquisition of new properties
and properties previously occupied under operating leases and 
1345 million on construction work at ltp  
net cash used in financing activities was 1954 million for the year 
to december 31 2011 principally due to dividend payments the
purchase of shares by the esot and the repayment of debt acquired
with abh offset by the tax benefit associated with the exercise of
stock options
net cash used in financing activities was 995 million for the year 
to december 31 2010 including dividend payments of 620 million
and 431 million to extinguish building finance obligations at ltp 
outstanding letters of credit
at december 31  2011  the company had irrevocable standby letters 
of credit and guarantees with various banks totaling 347 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 the company has restricted cash of 92 million
as required by these letters of credit
8446 annual report 2011annual report 2011  15032012  1612  page 32 shire plc annual report 2011 33
review of our business
c annual report 2011
cash requirements 
at december 31 2011 the group’s cash requirement for longterm liabilities reflected on the balance sheet and other contractual obligations were
as follows
payments due by period
                                                                                                                                                                     less than                                                                                        more than
                                                                                                                                          total                        1 year                  1–3 years                  3–5 years                      5 years
                                                                                                                                            ’m                            ’m                            ’m                            ’m                            ’m
convertible bonds
1
                                                                        11757                    303               11454                          –                          –
operating leases obligation
2
                                                              1829                    435                    616                    364                    414 
purchase obligations
3
                                                                       6699                  5342                   1197                     141                      19 
other longterm liabilities reflected on the balance sheet
4
                 1318                      12                  1279                      13                      14 
total                                                                                               21603                  6092               14546                    518                    447 
1 shire’s 1100 million principal amount of 275 convertible bonds due 2014 and the interest on the bonds has been included based on their contractual payment dates 
the principal amount of 1100 million has been included within payments due in one to three years based on the final maturity date of the bonds the bondholders have 
a put option which would require the company to redeem the bonds at their principal amount in may 2012 and the company has the option to call the bonds subject 
to certain conditions after may 2012 as a result of the put option the bonds have been classified as a current liability at december 31 2011 nevertheless the company 
does not currently consider it likely that the put option will be exercised in 2012 further details are included within liquidity and capital resources shire 275 convertible
bonds due 2014 above
2 the company leases certain land facilities motor vehicles and certain equipment under operating leases expiring through 2021 
3 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
4 unrecognized tax benefits and associated interest and penalties of 797 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 the most significant 
of the company’s milestone and contractual commitments which 
are contingent on the occurrence of future events are as follows
collaboration with acceleron pharma inc “acceleron” 
for activin receptor type iib “actriib” class of molecules 
on september 9 2010 shire announced that it had expanded its 
hgt pipeline by acquiring an exclusive license in markets outside 
of north america for the actriib class of molecules being developed
by acceleron the collaboration will initially focus on further developing
hgt4510 also called ace031 the lead actriib drug candidate
which is in development for the treatment of patients with duchenne
muscular dystrophy “dmd” the phase 2a trial is on hold and 
clinical safety is under review hgt4510 and the other actriib 
class of molecules have the potential to be used in other muscular 
and neuromuscular disorders with high unmet medical need
in the year to december 31 2010 shire made an upfront payment 
of 45 million to acceleron which has been expensed to rd 
in the year to december 31 2011 shire’s share of rd costs under this
collaboration agreement was 101 million 2010 27 million 2009
nil which were expensed to rd shire will pay acceleron up to a
further 1650 million subject to certain development regulatory and
sales milestones being met for hgt4510 in dmd up to an additional
288 million for successful commercialization of other indications and
molecules and royalties on product sales
shire and acceleron will conduct the collaboration through a joint
steering committee with subcommittees including a joint manufacture
committee and a joint patent committee to monitor the development
of hgt4510 and other compounds 
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
in the year to december 31 2009 shire made an upfront payment 
to santaris of 65 million for technology access and rd funding
which was expensed to rd 
in the year to december 31 2011 shire paid success milestones 
and other support costs of 25 million 2010 40 million 2009 
nil and 53 million 2010 23 million 2009 01 million to santaris
respectively which were expensed to rd shire has remaining
obligations to pay santaris 135 million subject to certain success
criteria and development and sales milestones up to a maximum 
of 705 million for each 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
8446 annual report 2011annual report 2011  15032012  1612  page 33 shire plc annual repo 34 shire plc annual report 2011
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collaboration and license agreement with sangamo biosciences
inc “sangamo” to develop therapeutics for hemophilia
on february 1 2012 shire and sangamo announced that they 
have entered into a collaboration and license agreement to develop
therapeutics for hemophilia and other monogenic diseases based 
on sangamo’s zinc finger dnabinding protein “zfp” technology
shire will receive exclusive worldwide rights to zfp therapeutics
®
designed to target four genes in hemophilia and will also receive 
the right to designate three additional gene targets 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 alliance shire will pay sangamo an upfront fee followed 
by research regulatory development and commercial milestone
payments and royalties on product sales
principal risks and uncertainties
the group has adopted a risk management strategy designed 
to identify assess and manage the significant risks that it faces
while the group 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 for the group
the group has established the 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 group as set out below 
risk council
the risk council comprises a number of senior executives from
functions across the group and is charged with overseeing the risk
management process and activities of the group chaired by the 
chief compliance and risk officer the risk council’s membership
includes senior members of each of the group businesses in addition
to the head of internal audit each business unit and corporate
function is required to periodically review the significant risks facing 
their businesses and are provided with a framework for use in their
review this review includes identifying operational risks compliance
risks and risks to the achievement of goals and objectives that review
occurs twice annually and material risks are recorded on a corporate
risk schedule for review and assessment of the risks and associated
mitigation plans the risk council identifies a manager who is given
responsibility for the management of any given risk 
the risk schedule is reviewed and validated by the leadership team 
in addition the risk schedule is reviewed twice yearly by the audit
compliance  risk “acr” committee and on an annual basis 
by the board
gcrm
the risk council is assisted by the gcrm department which 
is responsible for supporting the development and implementation 
of practices that facilitate employees’ compliance with laws 
and group policy the department provides assistance to help
employees meet high ethical standards and comply with applicable
laws and regulations 
the principal focus of shire’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 shire employees are encouraged to seek help
and to report suspected cases of misconduct without fear of retaliation
employees can report suspected cases of misconduct to management
or through the confidential reporting lines managed by gcrm
concerns and allegations are fairly and independently investigated 
and appropriate disciplinary action is taken if warranted 
the gcrm department is managed by the chief compliance and 
risk officer who reports directly to the ceo the chief compliance
and risk officer chairs the risk council and regularly provides
summary reports on the risk council and compliance activities 
to the audit compliance  risk committee the chief compliance 
and risk officer has access at all times to the acr committee 
chair which provides a mechanism for bypassing the executive
management should the need ever arise 
set out below are the key risk factors associated with the business
that have been identified through the group’s approach to risk
management some of these risk factors are specific to the group 
and others are more generally applicable to the pharmaceutical
industry in which the group operates the group considers that 
these risk factors apply equally and therefore all should be carefully
considered before any investment is made in shire
8446 annual report 2011annual report 2011  15032012  1612  page 34 shire plc annual report 2011 35
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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 timing of the receipt 
of additional marketing approvals the scope of marketing approvals 
as reflected in the product’s label the countries in which such
approvals are obtained the authorization of price and reimbursement 
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 may not be able to grow its product revenues 
as quickly as anticipated if any or all of the following occur 
� if shire’s products or competitive products are genericized or if the
prices of competitor products are otherwise reduced significantly 
� if there are unanticipated adverse events experienced with the
company’s products or those of a competitor’s product in the 
same therapeutic area not seen in clinical trials that impact 
the physician’s willingness to prescribe the company’s products 
� if issues arise from clinical trials being conducted for post marketing
purposes or for registration in another country or if 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 government regulation is stricter for the company’s products than
for other treatments 
� loss of patent protection or ability of competitors to challenge or
circumvent patents see note 20 “commitments and contingencies”
to the consolidated financial statements for details of current patent
litigation
� if planned geographical expansion into emerging markets is not
successful 
� if the sizes of the patient populations for the company’s products 
are less than expected or the company fails to identify new patients
for its products 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 any of its products
successfully there may be a material adverse effect on the 
company’s revenues financial condition and results of operations
unanticipated decreases in revenues from adderall xr
could significantly reduce the company’s revenues and earnings
following the launch of authorized generic versions of adderall xr 
in 2009 shire’s sales of adderall xr decreased by 42 in 2010
compared to 2009 in the year to december 31 2011 product sales 
of adderall xr increased 48 to 5328 million representing
approximately 12 of the company’s total revenues sales of
adderall xr in the years to december 31 2010 and 2009 were
3608 million and 6265 million respectively 
the company sells authorized generic versions of adderall xr 
to teva and impax and currently receives royalties from impax in
respect of sales of its authorized generic shire continues to sell the
branded version of adderall xr 
factors that could negatively impact total revenue from adderall xr
include but are not limited to
� erosion of adderall xr product sales if the authorized generic
versions capture shire’s branded market share
� any approval by the fda of any andas for adderall xr which
could further reduce branded market share any such approval 
may eliminate or reduce royalties currently received from impax
� issues impacting the production of adderall xr or the supply 
of amphetamine salts including but not limited to the ability 
to get sufficient quota from the us dea
� changes in reimbursement policies of third party payors and
� changes to the level of sales deductions for adderall xr 
for private or public payors
in addition in respect of the period prior to october 1 2010 
when certain provisions of the 2010 affordable care act became
effective and provided further clarity there were potentially different
interpretations as to how shipments of authorized generic adderall
xr to teva and impax should be included in the medicaid rebate
calculation the cms may disagree with the company’s interpretation
as to how shipments of authorized generic adderall xr should be
included in the medicaid rebate calculation and require the company
to apply an alternative interpretation of the medicaid rebate legislation
resulting in additional liability to be recorded by the company
the failure to obtain and maintain reimbursement 
or an adequate level of reimbursement by third party 
payors in a timely manner for the company’s products 
may impact future revenues and earnings
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 
reimbursement of treatments by healthcare providers private 
health insurers and other organizations such as healthmaintenance
organizations and managed care organizations is under downward
pressure and this in turn could impact on the prices at which the
company can sell its products
the market for the company’s products could be significantly
influenced by the following which could result in lower prices for the
company’s products andor a reduced demand for the company’s
products
� higher levels of controls on the use of the company’s products
andor requirements for additional price concessions by managed
healthcare organizations
� legislative proposals to reform healthcare and government insurance
programs in many of the company’s markets and
� price controls and nonreimbursement of new and highly priced
medicines for which the economic and therapeutic rationales are 
not established
8446 annual report 2011annual report 2011  15032012  1612  page 35 shire plc annual repo 36 shire plc annual report 2011
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the prices for certain of the company’s products in particular
products for the treatment of rare genetic diseases such as
replagal elaprase and vpriv  may be high compared to other
pharmaceutical products the company may encounter difficulty in
obtaining satisfactory pricing and reimbursement for such products
the failure to obtain and maintain pricing and reimbursement 
at satisfactory levels for such products may adversely affect the
company’s revenues financial condition and results of operations
a disruption to a product’s supply chain 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 
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 firazyr fosrenol intuniv  pentasa resolor and vpriv 
relies on a single active ingredient source for each of elaprase
firazyr fosrenol intuniv  replagal resolor and vpriv
and relies on a single source for certain serum reagents the mesh
framework and the manifold used in the manufacture of dermagraft  
in the event of
� financial failure of a third party contract manufacturer or
� the failure of a third party manufacturer to comply with its contractual
obligations or
� the failure of the company or a third party contract manufacturer 
to comply with mandatory manufacturing standards “current good
manufacturing standards” or “cgmp” or
� the failure of the company or a third party contract manufacturer
to manufacture sufficient quantities of product to meet demand or
� any other form of disruption to the supply chain
the company may experience a delay in supply or be unable to supply
market or develop its products any disruption in the supply chain
could have a material adverse effect on the company’s revenues
financial condition and results of operations 
there is no assurance that suppliers will continue to supply 
on commercially viable terms or be able to supply components
that meet regulatory requirements the company is also subject
to the risk that suppliers will not be able to meet the quantities
needed to meet market requirements which may result in the
shortage of product supplies in the market
the development and approval of the company’s products depends
on the ability to procure active ingredients and special packaging
materials from sources approved by regulatory authorities as the
marketing approval process requires manufacturers to specify their
own proposed suppliers of active ingredients and special packaging
materials in their applications regulatory approval of a new 
supplier would be required if active ingredients or such packaging
materials were no longer available from the supplier specified in the
marketing approval the need to qualify a new supplier could delay 
the company’s development and commercialization efforts
the company uses bovinederived serum sourced from new zealand
and north america in the manufacturing process for elaprase and
dermagraft the discovery of additional cattle in north america 
or the discovery of cattle in new zealand with bovine spongiform
encephalopathy or mad cow disease could cause the regulatory
agencies in some countries to impose restrictions on these products
or prohibit the company from using them this could disrupt the
company’s ability to supply these products and would have a material
adverse effect on the company’s revenues financial conditions or
results of operations
the actions of certain customers can affect the company’s 
ability to sell or market products profitably as well as impact 
net sales and growth comparisons
a small number of large wholesale distributors control a significant
share of the us and certain european markets in 2011 for example
49 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 either 
of these customers the company may suffer financial loss and 
a decline in revenues and earnings in addition the number of
independent drug stores and small chains has decreased as retail
pharmacy consolidation has occurred consolidation or financial
difficulties could cause customers to reduce their inventory levels 
or otherwise reduce purchases of the company’s products 
such actions could have an adverse effect on the company’s
revenues financial condition and results of operations a significant
portion of the company’s sp product sales are made to major
pharmaceutical wholesale distributors as well as to large pharmacies 
in both the us and europe consequently product sales and growth
comparisons may be affected by fluctuations in the buying patterns 
of major distributors and other trade buyers these fluctuations may
result from seasonality pricing wholesaler buying decisions or other
factors in addition a significant portion of the company’s revenues 
for certain products for treatment of rare genetic diseases are
concentrated with 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 and 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 the distraction of senior management 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 in a number of jurisdictions around the world
the promotion marketing and sale of pharmaceutical products 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 health and
human services “hhs” the fda the us department of justice 
the sec and the dea these authorities and agencies have broad
authority to investigate market participants for violations of federal laws
relating to the marketing and promotion of pharmaceutical products
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 the submission of false claims 
for reimbursement by the federal government pharmaceutical
companies may be subject to enforcement actions or prosecution 
8446 annual report 2011annual report 2011  15032012  1612  page 36 shire plc annual report 2011 37
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for such conduct as well any inquiries or investigations into the
operations of or enforcement or other regulatory action against the
company by such authorities could result in the distraction of senior
management for prolonged periods of time significant defense costs
substantial monetary penalties and require extensive government
monitoring of company activities in the future as an example on
september 23 2009 the company received a subpoena from the 
hhs 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
vyvanse and daytrana shire is cooperating and responding 
to this subpoena for further information see note 20 “commitments 
and contingencies” to the consolidated financial statements
adverse outcomes in legal matters could have a material adverse
effect on our revenue financial condition and 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
any unfavorable outcome in such matters could adversely impact the
company’s ability to develop and commercialize its products distract
senior management to the detriment of the business adversely affect
the profitability of existing products possibly subject the company to
substantial fines penalties and injunctive or administrative remedies
and possibly result in the imposition of regulatory controls or exclusion
of certain products or the company from government reimbursement
programs any such outcomes could have a material adverse 
effect on our revenue financial condition and results of operations 
for further information see note 20 “commitments and contingencies”
to the consolidated financial statements
contractual relationships can create a significant dependency on
third parties the failure of whom can affect the ability to operate
the company’s business and to develop and market products
the company has entered into many agreements with third parties for
the provision of goods and services to enable it to operate its business
if the third party does not provide the goods or services on the agreed
basis the company may not be able to continue the development or
commercialization of its products as planned or on a commercial basis
additionally it may not be able to establish or maintain good relationships
with the suppliers
the company has entered into licensing codevelopment and other
agreements with third parties these contractual agreements may be
altered terminated or expire and the company may not be able to
renew extend or contract on similar commercial terms with the party
or another third party in such circumstances the company may be
unable to continue to develop or market its products as planned and
could be required to abandon or divest a product line
risk factors related to the pharmaceutical 
and biotechnology industries in general
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 
changes to laws or regulations impacting the pharmaceutical industry
in any country in which the company conducts its business may
adversely impact the company’s revenues financial condition and
results of operations for example changes to the regulations relating
to orphan drug status may affect the exclusivity granted to products
with such designation 
a slowdown of global economic growth or continued 
instability of the eurozone could have negative consequences 
for our 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 and
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 nonpayment 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 that 
have experienced or may continue to experience declines in their
creditworthiness which may result in the continuation of significant 
cuts to public spending in an attempt to manage their budget deficits 
in addition there are concerns 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 effect 
the company’s revenues financial condition or results of operations
the introduction of new products by competitors may impact
future revenues
the markets in which the company operates are highly competitive
many of the company’s competitors are large well known
pharmaceutical biotechnology chemical and healthcare companies 
with considerable resources companies with more resources and larger
rd expenditures have a greater ability to fund clinical trials and other
development work necessary for regulatory applications they may
also be more successful than the company in acquiring or licensing
new products for development and commercialization if any product
that competes with one of the company’s principal drugs is approved
the company’s sales of that drug could be negatively impacted
8446 annual report 2011annual report 2011  15032012  1612  page 37 shire plc annual repo 38 shire plc annual report 2011
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the pharmaceutical biotechnology and regenerative medicine
industries are also characterized by continuous product development
and technological change the company’s products could therefore
be rendered obsolete or uneconomic through the development 
of new products technological advances in manufacturing or
production by its competitors
the successful development of products is highly uncertain 
and requires significant expenditures and time
products that appear promising in research or development may
be delayed or fail to reach later stages of development or the market 
for several reasons including
� 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 and
� failure to receive necessary regulatory approvals
success in preclinical and early clinical trials does not ensure that
largescale 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 late stage clinical
trials for a product are not successful the company 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 non
clinical 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 further a number of the company’s
adhd products contain controlled substances and are subject to
regulation by the us dea and equivalent agencies in other countries 
the failure of a strategic partner to develop and commercialize
products could result in delays in approval or loss of revenue
the company enters into strategic partnerships with other companies
in areas such as product development and 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 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 inlicense acquire or develop new products or compounds
the company also expends significant resources on research and
development the failure to 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 and
results of operations the failure of these efforts to develop products
appropriate for testing in human clinical trials could have a material
adverse effect on the company’s revenues financial condition and
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 variously on trade secrets unpatented knowhow and
technological innovations and contractual arrangements with third
parties to maintain its competitive position
patents and patent applications covering a number of the technologies
and processes owned or licensed to the company have been granted
or are pending in various countries including the us canada major
european countries and japan the company intends to enforce
vigorously its patent rights and believes that its partners intend to
enforce vigorously patent rights they have licensed to the company
however patent rights may not prevent other entities from developing
using or commercializing products that are similar or functionally
equivalent to the company’ s products or technologies the company’ s
patent rights may be successfully challenged in the future or laws
providing such rights may be changed or withdrawn the company
cannot assure investors that its patents and patent applications or 
those of its commercial partners licensors and third party
manufacturers will provide valid patent protection sufficiently broad to
protect the company’ s products and technology or that such patents
will not be challenged revoked invalidated infringed or circumvented
by third parties in the regular course of business the company is party
to litigation or other proceedings relating to intellectual property rights
see note 20 “commitments and contingencies” to the consolidated
financial statements for details of current patent litigation
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 if third parties are the first to invent a particular
product or technology it is possible that those parties will obtain 
patent rights that will be sufficiently broad to prevent the company 
or its strategic partners from developing manufacturing or selling its
products the company may need to obtain licenses for intellectual
property rights from others to develop manufacture and market
commercially viable products and may not be able to obtain these
licenses on commercially reasonable terms if at all in addition any
licensed patents or proprietary rights may not be valid and enforceable
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
8446 annual report 2011annual report 2011  15032012  1612  page 38 shire plc annual report 2011 39
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c annual report 2011
effectively prevent disclosure of confidential information and may 
not provide the company with an adequate remedy in the event 
of unauthorized disclosure of such information 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 protracted and costly litigation could
be necessary to enforce and determine the scope of the company’s
proprietary rights the failure to obtain or maintain patent and trade
secret protection for any reason could allow other companies to make
competing products which could have a material adverse effect on 
the company’s revenues financial condition or results of operations
the company has filed applications to register various trademarks 
for use in connection with its products in various countries including 
the us and countries in europe and latin america and intends to
trademark new product names as new products are developed
in addition with respect to certain products the company 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 any rights under any of these
trademarks the company’s inability or the inability of these third
parties to protect their trademarks because of successful third party
claims to those trademarks could allow others to use the company’s
trademarks and dilute their value
if a marketed product fails to work effectively or causes 
adverse sideeffects this could result in damage to the
company’s reputation the withdrawal of the product and 
legal action against the company
unanticipated sideeffects 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 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
loss of highly qualified management and scientific personnel
could cause the company subsequent financial loss
the company faces competition for highly qualified management 
and scientific personnel from other companies academic institutions
government entities and other organizations it may not be able to
successfully attract and retain such personnel the company has
agreements with a number of its key scientific and management
personnel for periods of one year or less the loss of such personnel
or the inability to attract and retain the additional highly skilled
employees required for its activities could have an adverse effect 
on the company’s business
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 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 and euro interest rates as the company maintains 
all of its cash liquid investments and foreign exchange contracts on 
a shortterm basis for liquidity purposes this risk is not actively
managed in the year to december 31 2011 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
the company incurs interest at a fixed rate of 275 on 1100 million
in principal amount convertible bonds due 2014 
no derivative instruments were entered into during the year to
december 31 2011 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 inter company financing accruals for royalty receipts and specific
external receivables 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 2011 the company had 20 swap and forward foreign
exchange contracts outstanding to manage currency risk the swaps
and forward contracts mature within 90 days the company did 
not have credit risk related contingent features or collateral linked to 
the derivatives at december 31 2011 the fair value of these contracts 
was a net asset of 30 million further details are included below
8446 annual report 2011annual report 2011  15032012  1612  page 39 shire plc annual repo 40 shire plc annual report 2011
financial review
foreign exchange risk sensitivity
the following exchange rate sensitivity analysis summarizes the sensitivity of our reported revenues and net income to hypothetical changes in the
average annual exchange rates of the euro pounds 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 2011
                                                                                                                                                                                                                                            increase                   increase
                                                                                                                                                                                                                                           reduction                reduction
                                                                                                                                                                                                                                        in revenues           in net income
                                                                                                                                                                                                                                                     ’m                           ’m
euro                                                                                                                                                                                           64                     32
pounds sterling                                                                                                                                                                          21                       10
swiss franc                                                                                                                                                                                    –                        15 
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
                                                                                                                                                                                                          principal                  weighted
                                                                                                                                                                                                           value of                     average
                                                                                                                                                                                                            amount                  exchange
                                                                                                                                                                                                       receivable                           rate                  fair value
december 31 2011                                                                                                                                                                         ’m                                                               ’m
swap foreign exchange contracts                                                                                       
receive usdpay eur                                                                                                                              2035                    132                      34
receive gbppay usd                                                                                                                                807                    156                     04
receive cadpay usd                                                                                                                                517                    098                          –
receive usdpay sek                                                                                                                                   49                    691                          –
receive usdpay aud                                                                                                                                  15                    100                          –
receive usdpay chf                                                                                                                                  47                    107                          –
concentration of credit risk
financial instruments that potentially expose shire to concentrations 
of credit risk consist primarily of shortterm cash investments trade
accounts receivable and derivative contracts 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 require
counterparties to have a longterm credit rating of aa3 or better from
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 2011 there were three customers
in the us that accounted for 49 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 our financial condition and results of operations
a substantial portion of the company’ s accounts receivable in countries
outside of the us 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 2011 the creditworthiness and general economic condition of a
number of eurozone countries including greece ireland italy portugal
and spain has continued to deteriorate 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’s aggregate accounts receivable net of the allowance
for doubtful accounts in total from governmentowned or government
supported healthcare providers in greece ireland italy portugal and
spain the “relevant countries” are as follows 
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                     ’m                           ’m
total accounts receivable net in the relevant countries                                                                                                           184                     144
total accounts receivable net in the relevant countries as a percentage of total
outstanding accounts receivable net                                                                                                                                  22                    21
accounts receivable net due from governmentowned or governmentsupported healthcare
providers for the relevant countries                                                                                                                                      170                     126
8446 annual report 2011annual report 2011  15032012  1612  page 40 shire plc annual report 2011 41
review of our business
c annual report 2011
accounts receivable due from governmentowned or government
supported healthcare providers in the relevant countries of 170 million
2010 126 million are split by country as follows greece 4 million
2010 8 million ireland 1 million 2010 1 million italy 81 million
2010 60 million portugal 14 million 2010 5 million and spain
70 million 2010 52 million
in 2011 the company received 193 million in settlement of accounts
receivable in the relevant countries—11 million was from greece
including 21 million in the form of greek government bonds
“ggbs” 18 million from ireland 94 million from italy 5 million 
from portugal and 65 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 ggbs principal amount 21 million carrying value
07 million as at december 31 2011 and 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
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
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
graham hetherington
chief financial officer
february 23 2012
8446 annual report 2011annual report 2011  15032012  1612  page 41 shire plc annual repo 42 shire plc annual report 2011
online at
board of directors
1
matthew emmens 60
chairman
mr emmens was appointed chairman on june 18 2008
and has been a member of the board since march 12
2003 he is also a member of the nomination committee
mr emmens was the company’s chief executive ofﬁcer
from march 2003 to june 2008 
mr emmens brings to the board his operational knowledge
of shire and his wealth of international sales marketing
integration and operational experience in the pharmaceutical
sector he is chairman of vertex pharmaceuticals inc 
mr emmens was president and chief executive ofﬁcer 
of vertex pharmaceuticals inc to february 2012 and 
is a former director of incyte corporation
mr emmens 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 pharmaceutical business 
he later served as president of merck kgaa’ s global
prescription pharmaceuticals business in germany 
mr emmens holds a degree in business management
2
angus russell 56
chief executive ofﬁcer
mr russell was appointed chief executive ofﬁcer on june
18 2008 and has been a member of the board since
december 13 1999 he is also chairman of the company’s
leadership team mr russell was the company’s chief
financial ofﬁcer from december 1999 to june 2008 
mr russell brings to his position his operational knowledge
of shire and his extensive ﬁnance risk management
strategic and operational experience in the pharmaceutical
sector he is a nonexecutive director of intermune inc
and is a former nonexecutive director of the city of
london investment trust plc between 1980 and 1999 
he held a number of positions of increasing responsibility 
at ici zeneca and astrazeneca plc including vice
president corporate finance at astrazeneca and group
treasurer at zeneca mr russell is a chartered accountant
and is a fellow of the association of corporate treasurers
3
graham hetherington 53
chief financial ofﬁcer
mr hetherington has been the chief financial ofﬁcer 
and a member of the board since july 1 2008 he is also 
a member of the leadership team
mr hetherington brings to his position a broad range of
international ﬁnance management and planning audit risk
management and ma experience he was chief financial
ofﬁcer of bacardi in 2007 and chief financial ofﬁcer 
of allied domecq plc from 1999 to 2005 mr hetherington 
is a fellow of the chartered institute of management
accountants 
4
david kappler 64
deputy chairman and senior independent 
nonexecutive director
mr kappler has been a member of the board since april 5
2004 he was appointed senior independent nonexecutive
director in july 2007 and deputy chairman in june 2008
he is also chairman of the nomination committee and 
of the audit compliance  risk committee 
mr kappler brings to the board his extensive knowledge
and experience in ﬁnancial reporting risk management and
internal ﬁnancial controls he is a nonexecutive director 
of intercontinental hotels group plc 
he was chairman of premier foods plc until september
2010 and held directorships at camelot group plc and
hmv group plc mr kappler retired from cadbury
schweppes plc in april 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 mr kappler is a fellow 
of the chartered institute of management accountants
5
william burns 64
nonexecutive director
mr burns was appointed to the board on march 15 2010
and is a member of the remuneration committee the
nomination committee and of the science  technology
committee
mr burns brings to the board extensive experience in
international sales marketing integration and operational
experience in the pharmaceutical sector he is a director 
of biotie therapies corp roche holdings ltd chugai
pharmaceutical co ltd and genentech inc and is a
former director of crucell nv 
mr burns worked for many years for roche holding the
position of ceo of their pharmaceuticals division from 2005
to 2009 and was a member of the roche group corporate
executive committee among his many achievements
during his time with roche he had signiﬁcant involvement
in the acquisition and privatization of genentech he led the
integration of boehringer mannheim therapeutics and he
played a lead role in the negotiations resulting in roche
becoming a majority owner of chugai in japan mr burns
holds a ba hons
6
dr david ginsburg 59
nonexecutive director
dr ginsburg md was appointed to the board on june 16
2010 and is a member of the science  technology
committee
dr ginsburg 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 he is currently
james v  neel distinguished university professor of internal
medicine human genetics and pediatrics at the university
of michigan and a howard hughes medical institute
investigator dr ginsburg obtained his ba at yale university
md at duke university and completed his medical and
research training at harvard medical school before joining
the faculty at the university of michigan dr ginsburg 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
1
2
3
4
5
6
httpar2011shirecom ››
8446 annual report 2011annual report 2011  15032012  1612  page 42 shire plc annual report 2011 43
governance
7
susan kilsby 53
nonexecutive director
ms kilsby was appointed to the board on september 1
2011 and is a member of the audit compliance  risk
committee
ms kilsby brings to the board her extensive mergers and
acquisitions and ﬁnance experience she is a director of
hong kong listed global skin care company l’occitane
international sa ms kilsby has a distinguished global
career in investment banking having 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 and continues in a parttime senior advisory
capacity ms kilsby holds a ba in economics and a mba
8
anne minto obe 58
nonexecutive director
ms minto was appointed to the board on june 16 2010 
and is chairman of the remuneration committee
ms minto brings to the board her extensive legal
commercial and remuneration experience she held the
position of group director human resources at centrica
plc from october 2002 to june 30 2011 and sat on the
centrica executive committee until the end of june 2011
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 
ms minto has also held directorships at northumbrian
water plc and sita uk following her law degree at
aberdeen university and a post graduate diploma in human
resources she qualiﬁed as a lawyer ms minto is a fellow 
of the chartered institute of personnel  development 
the royal society of arts and the london city and guilds
and a member of law society of scotland she is on 
the council of the london city and guilds and is patron 
of the university of aberdeen alumni fund
9
david stout 57
nonexecutive director
mr stout was appointed to the board on october 31  2009
and is a member of the audit compliance  risk committee
and of the remuneration committee
mr stout brings to the board extensive international sales
marketing operational and supply chain experience gained 
in the pharmaceutical sector he is a director of allos
therapeutics inc jabil circuit inc and airgas inc 
mr stout was president pharmaceutical operations at
glaxosmithkline where he was responsible for the
company’ s global pharmaceutical operations from january
2003 to february 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 mr stout
worked for many years at scheringplough mr stout holds 
a ba in biology
former nonexecutive directors
patrick langlois 66
nonexecutive director
patrick was a member of the board from november 11 2005 to
november 10 2011 he was also a member of the audit compliance
 risk committee and of the remuneration committee until
november 10 2011
patrick brought to the board his extensive experience in ﬁnancial
reporting audit and risk management he is a director of scynexis
inc nanobiotix sa exonhit sa and newron spa patrick
previously served as vice chairman of the management board of
aventis sa having been group executive vice president and chief
financial ofﬁcer for several years he also spent many years in senior
ﬁnancial roles with the rhônepoulenc group including three years
as a member of the executive committee and chief financial ofﬁcer
patrick holds a phd in economics and a diploma in banking studies
dr jeffrey leiden 56
vice chairman and nonexecutive director
dr leiden was a member of the board from january 2007 to january
2012 and was vice chairman from april 2009 to january 2012 
he was also a member of the remuneration committee and of the
nomination committee and chairman of the science  technology
committee until january 2012
dr leiden brought to the board his extensive operational experience 
in pharmaceutical companies and his operational and scientiﬁc
experience in clinical research development and registration 
dr leiden is president and chief executive ofﬁcer of vertex
pharmaceuticals inc 
dr leiden was a managing director at clarus ventures llc 
and held board positions at a number of pharmaceutical 
and biotechnology companies dr leiden was president and 
chief operating ofﬁcer pharmaceutical products group and 
chief scientiﬁc ofﬁcer at abbott laboratories from 2001 to 
2006 during this time he held directorships at abbott and tap
pharmaceutical products inc prior to joining abbott dr leiden 
held several academic appointments dr leiden holds a medical
degree a phd and an honorary ma from harvard university 
7
8
9 shire plc annual repo 44 shire plc annual report 2011
directors’ report
the directors present their annual report on the affairs of the group
together with the audited consolidated financial statements for the 
year ended december 31 2011 the corporate governance statement
set out on pages 48 to 54 forms part of this report 
principal activities 
shire plc the “company” and its subsidiaries collectively referred 
to as the “group” or “shire” is a leading specialty biopharmaceutical
company that focuses on meeting the needs of the specialist
physician
shire focuses its business on attention deficit hyperactivity disorder
human genetic therapies gastrointestinal diseases and regenerative
medicine as well as opportunities in other specialty therapeutic areas 
to the extent they arise through acquisitions 
the subsidiaries and equity method investees principally affecting 
the profits andor net assets of shire in the year are listed in note 30 
to the consolidated financial statements including their country 
of incorporation 
business review
shire seeks to set out in this report a fair review of the business of the
group during the financial year to december 31 2011 the position 
of the group at the end of that financial year and a description of the
principal risks and uncertainties facing the group the information 
that fulfils the requirements of the business review can be found 
in the chairman’s review on pages 6 and 7  chief executive’s review 
on pages 8 to 11 the financial review on pages 12 to 41 and 
the corporate governance report on pages 48 to 54 which are
incorporated in this report by reference the financial review and 
note 21 to the consolidated financial statements also provide a
description of the principal risks and uncertainties facing the group 
as well as the group’s risk management objectives and policies
there were no significant events subsequent to the balance sheet date
results and dividends
the income before income taxes and equity in earnings of 
equity method investees for the year to december 31 2011 was
10901 million 2010 7693 million the net assets of shire at
december 31 2011 were 31850 million 2010 24514 million
in respect of the six months to december 31 2011 the board resolved
to pay a second interim dividend of 1259 us cents 2010 1085 
us cents per ordinary share together with the first interim payment 
of 248 us cents 2010 225 us cents per ordinary share this
represents total dividends for 2011 of 1507 us cents 2010 1310 
us cents per ordinary share
acs hr solutions share plan services guernsey limited “trustee”
trustee of the shire employee benefit trust has waived its entitlement
to any dividends which become due and payable in respect of shares
or other securities which are registered in the name of the trustee 
or its nominees from time to time except the right to receive 00001
pence per ordinary share
liquidity cash flow and going concern
the group’s business activities together with the factors likely to 
affect its future development performance and financial position are
set out in the chairman’s and chief executive officer’s reviews and
financial review the financial position of the group its cash flows
liquidity position and borrowing facilities are described in the liquidity
and capital resources section of the financial review the financial
review also includes information concerning 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 group’s 
financial instruments are disclosed in note 21 to the consolidated
financial statements
shire’s balance sheet includes 6200 million of cash and cash
equivalents at december 31 2011 substantially all of shire’s debt
relates to its 1100 million 275 convertible bond the “bonds” 
which matures in 2014 although these bonds include a put option
which could require repayment of the bonds in may 2012 in addition
shire has committed multicurrency revolving and swingline facilities 
of 1200 million which mature in 2015 and are currently undrawn 
the “rcf” at february 21 2012 the bonds were trading at above 
par and the company does not currently consider it likely that the 
put option will be exercised in 2012 however if the bonds were
redeemed in 2012 the group’s operating cash flow together with
available cash cash equivalents and the rcf would be sufficient 
to enable repayment of the bonds in lieu of settling any such
redemption wholly in cash the terms of the bonds also permit the
company to deliver the underlying ordinary shares and if necessary 
a cash top up amount
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
share capital 
at december 31 2011 the company’s issued share capital comprised
562472830 ordinary shares further details of the authorized and
called up share capital of the company as at december 31 2011
are set out in note 23 to the consolidated financial statements 
the company was given authority at the 2011 agm to make market
purchases of up to 56196681 of its own ordinary shares that
authority will expire at the 2012 agm and in accordance with usual
practice a resolution to renew it for another year will be proposed 
the company did not purchase any of its shares during 2011
directors’ interests in material contracts
other than the insuranceindemnity provisions disclosed under
“directors” liability insurance and indemnification’ below 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
related party transactions
there were no related party transactions in the year to december 
31 2011
8446 annual report 2011annual report 2011  15032012  1612  page 44 shire plc annual report 2011 45
governance
c annual report 2011
directors 
biographical details of directors who have served on the board 
during the year appear on pages 42 and 43
details of the current directors’ interests in the share capital of the
company together with details of the share awards granted to
executive directors are disclosed in the directors’ remuneration 
report on page 55
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 while 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
research and development
shire has incurred under its research and development program 
costs of 7707 million in the financial year to december 31 2011
2010 6615 million further details on the group’s research and
development program can be found in the financial review on 
pages 18 to 21 these costs have been charged to the consolidated
income statement in accordance with shire’s accounting policy
substantial shareholdings 
as at the date of this report the company had been notified of the
following holdings in voting rights of 3 or more in the issued ordinary
share capital of the company
� blackrock inc has a holding of 593
� fmr llc has a holding of 5 and
� legal and general group plc has a holding of 396
political donations 
shire did not make any donations to eu political parties during 
the year ended december 31 2011 2010 nil 
charitable donations
during the year donations to charities including matching of funds
raised by employees notforprofit organizations and entities
supporting medical education amounting to 50 million were made 
of which 08 million were made in the uk
for further information please refer 
to shire’s responsibility website 
at wwwshirecomshireplcenresp ››
employment policies
as of december 31 2011 shire employed 5251 personnel of which
69 are based in the us 10 in the uk 4 in switzerland and 
17 in the rest of the world as shire continues to grow we remain
dedicated to creating an environment in which employees are highly
engaged and committed to achieving shire’s goals
engagement happens at every level of the business from the 
onetoone performance discussions between managers and their
staff to the regular allemployee meetings held at our major sites 
shire communicates with all employees via an active internal
communications program which includes a worldwide intranet all
employee emails from the ceo and a global employee magazine
during 2011 the ceo used a quarterly blog to communicate in real
time and online with shire employees around the world within each
business hgt sp and regenerative medicine the presidents have
their own internal communications strategies and plans to ensure
employees are kept aware of priorities and have the opportunity to
exchange views shire believes in having a progressive collaborative
and positive workplace in which everyone feels valued and is treated
fairly and that is reflected in the way we work together every day
details of the group’ s employee share schemes are set out in note 29
to the consolidated financial statements
shire operates an equal opportunities policy that aims to treat
individuals fairly and not to discriminate on the basis of sex race 
ethnic origin disability or on any other basis applications for
employment are fully considered on their merits and employees 
are given appropriate training and equal opportunities for career
development and promotion 
it is shire’ s policy to ensure that applications for employment by disabled
persons are given full and fair consideration bearing in mind the aptitude
of the applicant relative to the requirements of the position in question 
in the event of members of staff becoming disabled every effort is 
made to ensure that their employment with shire continues and that
appropriate training or accommodation is arranged it is shire’ s policy
that the training career development and promotion of disabled persons
should as far as possible be identical to that of other employees and
that reasonable accommodation is made wherever possible
the directors are committed to ensuring the health safety and welfare
of shire’s employees at work accordingly it is shire’s policy to manage
its activities so as to avoid causing any unnecessary or unacceptable
risk to employees and those who may be affected by the group’s
business in addition shire takes its corporate responsibilities seriously
and maintains an active responsibility coordination team as well 
as a global environmental health and safety team devoted to promoting
employee safety at and outside work
payment of creditors
it is shire’ s policy to agree payment terms with all its suppliers making
sure the supplier is aware of those terms and to abide by them 
as at december 31  2011 the group trade creditors’ days outstanding
based on the average daily amount invoiced by suppliers during the
year were
                                                                                                      2011                    2010
                                                                                                     days                    days
group                                                                         29                  29
the company is nontrading and accordingly has no trade creditors
8446 annual report 2011annual report 2011  15032012  1612  page 45 shire plc annual repo 46 shire plc annual report 2011
directors’ report
financial instruments
details of shire’s use of financial instruments can be found in the
financial review on pages 40 and 41 and in note 21 to the
consolidated financial statements
audit information
the directors confirm that so far as they are aware there is no 
relevant audit information of which the group’s auditor is unaware 
and that they have taken all steps that they ought to have taken as 
a director in order to make themselves aware of any relevant audit
information and to establish that the group’s auditor is aware of that
information
significant agreements 
the following significant agreements contain provisions entitling the
counterparties to exercise the following rights in the event of a change
of control of the company
� under the 1100 million 275 convertible bonds due 2014 issued
by the company pursuant to a trust deed dated may 9 2007 
and a supplemental trust deed dated april 15 2008 upon a change 
of control bondholders will for 60 days after receiving notice of 
the change of control be able to exercise their right to convert their
bonds into ordinary shares in the company at a more advantageous
price than normal as specified in the terms and conditions of the
bonds unless the change of control is effected by a scheme of
arrangement which results in the interposition of a new holding
company between the company’s shareholders and the company
and certain other conditions are met an “exempt scheme” 
with respect to an offer or a scheme to acquire all or most of 
the ordinary shares in the company further requirements are 
also imposed on the company including a requirement to 
notify bondholders of the offer or scheme and to use reasonable
endeavors to procure the making of an equivalent offer to
bondholders unless the scheme is an exempt scheme for these
purposes a change of control is defined as the acquisition pursuant
to an offer or a scheme by a party of the ability to control more 
than half the votes at a general meeting of the company and
� 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 23 2012 no amounts are outstanding
under the credit facility agreement
additional information for shareholders
rights and obligations attaching to shares
the rights and obligations attaching to the ordinary shares are set 
out in the company’s articles of association the “articles” the
articles may only be changed by special resolution of the members 
of the company
issue 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 jersey law 1991 as amended
the “companies act” and other shareholders’ rights unissued shares
are at the disposal of the board
voting
it is the company’s practice to hold a poll on every resolution at 
annual and extraordinary 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
as at december 31 2011 the shire employee benefit trust held 192
of the issued share capital of the company on trust for the benefit of
participants of 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 non financial interests of the
beneficiaries of the trust or their dependants historically the trustee
has not exercised its right to vote
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 him 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 attaching to such shares although the adr depositary is the
registered holder of the shares
8446 annual report 2011annual report 2011  15032012  1612  page 46 shire plc annual report 2011 47
governance
c annual report 2011
dividends and distributions
subject to the provisions of the companies act the company 
may by ordinary resolution from time to time 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 shire
group company resident for tax purposes in the uk a shareholder 
who holds 25000 or fewer shares at the first dividend record date after
first becoming a shareholder will be deemed to have made an income
access share “ias” election such that dividends will be paid from 
a uk tax resident company unless the shareholder notifies the
company in writing to the contrary pursuant to the articles where any
dividend is paid by the company an amount is paid to the ias trustee
representing the dividend entitlement of persons who have elected to
receive dividends from a uk resident company and such amount is
paid by the ias trustee to shareholders who have made or are deemed
to have made an ias election the dividend which would otherwise 
be payable by shire to such shareholders will be reduced by an
amount equal to the amount paid to such shareholders by the ias
trustee if the dividend paid on the ias and onpaid by the ias trustee
to shareholders is less than the total amount of the dividend
announced or declared by shire on its ordinary shares shire will be
obliged to pay a dividend on its ordinary shares equivalent to the
amount of the shortfall the income access share arrangements may
be suspended or terminated at any time and for any reason 
by the company without financial recompense to shareholders
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 as treasury stock 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 as treasury stock
restrictions on transfer of shares
there are no restrictions on the transfer of shares in the company
except i that certain restrictions may from time to time be imposed by
laws and regulations for example insider trading laws and ii pursuant
to the listing rules of the uk financial services authority whereby
certain employees of the company require the approval of the
company to deal in the company’s ordinary shares 
the company is not aware of any agreements between shareholders
that may result in restrictions on the transfer of securities
powers of the directors 
subject to the provisions of 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
appointment and replacement of directors
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 nonexecutive
directors who have served on the board for nine years or more are
appointed for one year terms reappointment of nonexecutive
directors following the expiry of their term of appointment is subject 
to board approval the board may from time to time appoint one 
or more directors to hold any executive office for such period and 
on such terms as it may determine and may also revoke or terminate
any such appointment
the articles provide that at each 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 has 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 himself for reelection 
by the members however in accordance with the uk corporate
governance code all directors will be subject to annual reelection
by order of the board
tatjana may
company secretary
february 23 2012
8446 annual report 2011annual report 2011  15032012  1612  page 47 shire plc annual repo 48 shire plc annual report 2011
corporate governance report
dear shareholder
the board is committed to high standards of corporate governance
which i believe to be central to how the board its committees 
and its business function a sound governance structure engenders 
a successful company
the board is responsible for key areas such as strategy risk
management and succession planning 
each year the board spends time reviewing the company’s strategy
with management to ensure that the company continues to focus 
on growing the business for the longterm given the changing
dynamics of the external environment strategy is reviewed on an
ongoing basis by the board and one board meeting is dedicated 
to this area
the business we are in is an inherently risky business and the board 
is focused on ensuring that the management of risk is carefully
managed by employees the board recognizes that the culture of the
company is key to how risk is managed and that the board and senior
management has an important leadership role in promoting a culture 
of measured risk taking and ensuring that robust internal controls are 
in place the company’s audit compliance  risk committee reviews
the material risks to the business twice yearly and specific risks more
frequently as needed the board reviews material risks once a year
and specific risks more frequently as needed 
over the last few years the board has been focused on gaining 
greater visibility of executive talent and management succession 
this is managed in various ways including providing opportunities 
for executive talent to present to board members visits by board
members to key sites and enabling less formal interactions such 
as at dinners and receptions
as chairman it is my role to lead the board and to ensure its
effectiveness it is important in this regard that the composition of 
the board comprises a diverse mix of skills experiences background
and gender to ensure that it is best able to serve the interests of 
the company its shareholders and other stakeholders recognizing 
the importance of this the board recently formalized its approach 
by the adoption of a diversity policy on this basis any appointment 
to the board will be considered against this policy and these
considerations will be taken into account when reviewing the
performance effectiveness of the board the value of diversity 
is mirrored throughout the company with similar policies in place 
for employee recruitment 
consistent with this approach to diversity board members who have
joined shire’s board in the last two years bring with them expertise 
in varied areas including science mergers and acquisitions finance
international pharmaceuticals and remuneration which complement
the skill sets and backgrounds and gender of an already highly skilled
and experienced board 
the board has reviewed its approach to the reelection of directors 
and has agreed that with effect from the 2012 agm each board
member should stand for annual reelection
a comprehensive board and committee performance evaluation 
was undertaken internally in 2011 which included onetoone meetings
which i held with each of the directors a fuller disclosure of the
evaluation process can be found on page 50 of this report the board
has agreed that the 2012 performance evaluation will be externally
facilitated which is three years after the last external evaluation 
shire values its ongoing dialogue with institutional shareholders through
a series of meetings which are attended by various board members
and senior management the board is updated regularly by the 
ceo and cfo on shareholder views on a broad range of issues
as chairman i am reassured by the commitment of the board 
and all the individuals who work at shire to continue to achieve
exceptional results for our shareholders within a framework that
promotes good governance 
matthew emmens
chairman
8446 annual report 2011annual report 2011  15032012  1612  page 48 shire plc annual report 2011 49
governance
c annual report 2011
the following report outlines how shire has applied the main principles
set out in the uk corporate governance code issued by the uk
financial reporting council in june 2010 the “governance code”
compliance statement
for the year to december 31 2011 the company has in the directors’
opinion complied fully with the provisions set out in the governance
code
leadership
role of the board
the board which is collectively responsible for the longterm success 
of the company currently comprises two executive and seven 
nonexecutive directors including the chairman 
the board is responsible for the overall management of the company
the board has formally reserved certain matters for its determination
and approval including the company’s strategic direction risk profile
sound system of internal controls annual budget periodic financial
reports overall governance material transactions and succession
planning the full list of these matters known as the board’s reserve
powers is disclosed on the company’s website wwwshirecom 
the board discharges its responsibilities through regularly scheduled
meetings and ad hoc meetings as may be required the board meets
in person at least five times a year 
the board and its committees monitor and evaluate the performance
of the group as a whole through engaging with the chief executive
officer chief financial officer members of the leadership team and
other members of senior management
the nonexecutive directors are responsible for exercising
independent judgment in board deliberations and for scrutinizing and
challenging the actions of senior management the executive directors
are responsible for daytoday business operations
at each board meeting the chairman of each board committee
informs the board of key matters discussed and agreed at the
preceding committee meeting matters not formally reserved to the
board are delegated to the leadership team which is chaired by 
the chief executive
role and responsibilities of the chairman deputy chairman
senior independent director and chief executive officer
chairman 
the board is chaired by matthew emmens the chairman is
responsible for the leadership of the board which includes ensuring
that board discussions are conducted in a way which promotes 
open discussion between directors such that no individual director 
or small group of directors dominates proceedings the chairman is
available to meet with shareholders on any matter which is important 
to such shareholder
deputy chairman
david kappler as deputy chairman provides support and guidance 
to the chairman and deputizes for the chairman as required
senior independent director
as senior independent director david kappler acts as a sounding
board for the chairman and is available as an intermediary for the 
other directors if necessary the senior independent director is also
responsible for chairing meetings of the nonexecutive directors
without the chairman and executive directors present and in leading
the nonexecutive directors in evaluating annually the performance 
of the chairman 
chief executive officer
the chief executive officer angus russell has the overall responsibility
for running the business on a daytoday basis and he chairs meetings
of the leadership team
the roles and responsibilities of the chairman deputy chairman
senior independent director and the chief executive officer are clearly
defined separate and have been approved by the board more details
can be found on shire’s website
board effectiveness
composition of the board
the nomination committee regularly reviews the structure size and
composition including the skills knowledge experience and diversity
of the board and its committees to ensure that they are well balanced
to meet their respective responsibilities and makes recommendations
to the board with regard to any change 
the board is of the opinion that each of its members has the skills
knowledge aptitude and experience to perform the functions required
of a director of a listed company
biographical details of the members of the board who served 
during the year and up to the date of this report are shown on pages
42 and 43
the board considers william burns dr david ginsburg david kappler
susan kilsby anne minto and david stout to be independent non
executive directors the board views each of these nonexecutive
directors to be independent of management independent in judgment
and character and free from any business or other relationship which
could materially interfere with the exercise of their independent
judgment the board also considered dr jeffrey leiden and patrick
langlois to have been independent nonexecutive directors while
members of the board the board’s chairman matthew emmens 
is not considered to be an independent nonexecutive director
at the time of dr leiden stepping down from the board mr emmens
and dr leiden were both directors of vertex pharmaceuticals inc 
mr emmens in an executive capacity and dr leiden as a non
executive director when reappointing dr leiden in december 2010
the board concluded in its opinion that dr leiden remained
independent in judgment and character his commitment to the group
was undiminished and his performance continued to be effective 
appointment and reelection of directors 
the nomination committee report on page 70 provides information
about the appointment process for new directors
the board may appoint any person to be a director either to fill 
a vacancy or as an addition to the existing board any director 
so appointed must retire and offer himself or herself for election 
at the next agm following appointment
nonexecutive directors are appointed by the board ordinarily 
for a term of two years subject to reappointment by the board 
the board has considered and agreed that with effect from the 2012
agm directors will be subject to annual reelection by shareholders 
newly appointed nonexecutive directors receive a customized
detailed induction program which takes account of their particular
experience and backgrounds this program includes meetings with
senior management from the businesses and corporate functions
the terms of appointment of each of the nonexecutive directors 
and the service contracts of the executive directors are made available
for inspection at the company’s agm
8446 annual report 2011annual report 2011  15032012  1612  page 49 shire plc annual repo 50 shire plc annual report 2011
corporate governance report
time commitment
all nonexecutive directors are required to allocate sufficient time 
to discharge their responsibilities effectively in addition to their work 
in relation to scheduled meetings of the board any board committee
and the agm the nonexecutive directors commit time for meetings
with senior management site meetings and to participate in additional
board and committee meetings as the business of the company may
require from time to time 
prior to taking up a new role in another organization nonexecutive
directors are required to first discuss the opportunity with the
chairman this is to ensure that acceptance of the new role does 
not result in a conflict of interest or that the nonexecutive director 
is unable to give sufficient time to shire’s business
board performance evaluation 
the board agreed that the 2011 board performance effectiveness
review would be managed internally a detailed questionnaire was
circulated to all board members by the company secretary which
focused on assessing various matters including if the board is spending
adequate time on key areas of responsibility if the information being
provided to the board is of the right caliber if the board has appropriate
access to senior management and outside advisors if the board’ s
culture promotes active engagement and constructive challenge 
from all members if the chairman demonstrates effective leadership 
if board members are well prepared and if there are any suggestions 
to enhance effectiveness and performance the responses were
aggregated by the company secretary and were circulated on a 
nonattributable basis to all the board the chairman had onetoone
discussions with each board member following those discussions 
and the circulation of the outputs of the questionnaire the board met 
to review the feedback the board agreed ways to enhance the
operation of the board including the level of detail provided in feedback
from board committees and that with the business expanding and
growing geographically it would be helpful to hold meetings with board
members in additional key sites to enable the board to engage with
talent at those sites in addition to this process the senior independent
director spoke with each board member other than the chairman 
to assess the board’ s views as to the effectiveness of the chairman
this feedback was shared at a meeting of the nonexecutive directors
excluding the chairman chaired by the senior independent director
information and support
the executive directors and the company secretary are responsible
for ensuring that detailed information is provided to board members in
advance of any scheduled or ad hoc board meeting before decisions
are made consideration is given to the adequacy of information
available to the board and if necessary decisions are deferred if further
information is required
board members receive detailed information from the executive
directors the company secretary members of the leadership 
team and other senior managers to enable them to discharge their
responsibilities effectively all directors have access to employees 
in the company and to the advice and guidance of the company
secretary and are encouraged to seek independent advice at the
group’s expense where they feel it is appropriate 
committees of the board
the board has established the audit compliance  risk committee
the remuneration committee the nomination committee and the
science  technology committee together “the committees” each
committee has written terms of reference which have been approved
by the board and are available on shire’s website wwwshirecom
details of each committee are set out below
audit compliance  risk committee
the audit compliance  risk committee the “acr committee” has
been established for the purpose of overseeing the accounting and
financial reporting processes of the group the audit of its financial
statements and the effectiveness of the group’s risk management and
internal control framework the acr committee met on five occasions
in 2011 the members of the acr committee are all independent non
executive directors for further information about the acr committee
its membership and activities for the year ended december 31 2011
please refer to the acr committee report on pages 71 and 72
remuneration committee
the remuneration committee is responsible for developing reviewing
and overseeing the implementation of the group’s compensation 
and benefits policy the remuneration of the executive directors 
and the chairman is determined by the remuneration committee 
the remuneration of the nonexecutive directors is determined by 
the chairman and the executive directors the remuneration of the
members of the leadership team other than the executive directors
is determined by the chief executive officer following discussion with
the remuneration committee the members of the remuneration
committee are all independent nonexecutive directors 
the remuneration committee met on five occasions in 2011 
for further information about the remuneration committee its
membership and activities for the year ended december 31 2011
please refer to the directors’ remuneration report on pages 55 to 69
nomination committee
the nomination committee is responsible for identifying and
nominating for the approval of the board candidates for the board
the nomination committee also ensures adequate succession
planning for the board the nomination committee met on five
occasions in 2011 the members of the nomination committee 
with the exception of matthew emmens are all independent non
executive directors
the nomination committee retains the services of executive search
consultants to assist it in the discharge of its responsibilities as it
considers necessary
for further information about the nomination committee its
membership and activities for the year ended december 31 2011
please refer to the nomination committee report on page 70
science  technology committee
the science  technology committee is responsible for periodically
reviewing and advising the board on shire’s strategic direction and
investment in research development and technology the science 
 technology committee met on three occasions in 2011 the
members of the science  technology committee are all independent 
nonexecutive directors dr jeffrey leiden and dr david ginsburg
served on the committee during the year ended december 31 2011
dr leiden chaired the committee until he stepped down from the
board on january 31 2012 mr william burns was appointed as a
member of the committee with effect from february 8 2012
8446 annual report 2011annual report 2011  15032012  1612  page 50 shire plc annual report 2011 51
governance
c annual report 2011
leadership team
the board has delegated the daytoday management of shire to the
leadership team which operates within clear and formal parameters
the leadership team reports to and seeks guidance from the board
on a regular basis and normally meets once a month to deliberate 
on major business issues it also considers those matters that are of 
a size and significance as to require referral to the board before such
matters are referred to the board for final consideration and decision
during 2011 the leadership t eam held ten scheduled meetings the
leadership t eam currently comprises angus russell chief executive
officer who chaired the leadership t eam graham hetherington chief
financial officer michael cola president of specialty pharmaceuticals
sylvie grégoire president of human genetic therapies kevin rakin
president regenerative medicine barbara deptula chief corporate
development officer and t atjana may general counsel and company
secretary 
board and committee meetings
1
the attendance of the directors at board and committee meetings held in 2011 was as follows
                                                                                                                                                                            audit                                                                                         science 
                                                                                                      board                         board            compliance             remuneration                 nomination                 technology 
directors                                                                          scheduled                      ad hoc        risk committee                 committee                 committee                committee
matthew emmens                                                      55                      11                          –                          –                      55                          –
angus russell                                                             55                      11                          –                          –                          –                          –
graham hetherington                                                 55                      11                          –                          –                          –                          –
william burns                                                             55                      11                          –                      55                      22                          –
dr david ginsburg                                                     55                      11                          –                          –                          –                      33
david kappler
2
                                                          55                      01                      55                          –                      55                          –
anne minto
2
                                                              55                      01                          –                      55                          –                          –
susan kilsby                                                              22                      00                      22                          –                          –                          –
david stout
2
                                                              55                      01                      55                      22                          –                          –
former directors                                                                                                                                                                                                       
dr jeffrey leiden                                                       55                      11                          –                      55                      55                      33
patrick langlois
3
                                                       34                      11                      34                      34                          –                          –
1 xy where “x” is the number of meetings attended and “y” is the number of meetings that could have been attended 
for example 24 indicates two meetings attended out of a possible four
2 due to a conflict with prior commitments mr kappler mr stout and ms minto were unable to attend an ad hoc board meeting
3 mr langlois was unable to attend the october board and committee meetings due to illness
directors’ remuneration
the group’s remuneration policy is described in the directors’
remuneration report on pages 55 to 69 the report details the
directors’ remuneration and the basis upon which executive
remuneration is determined
relations with shareholders
the group is committed to maintaining constructive relationships 
with shareholders 
the group announces its financial results quarterly the chief executive
officer and chief financial officer gave presentations on the quarterly
results by teleconference for institutional investors and analysts as the
company has securities listed on the nasdaq global select market 
in the us shire also files quarterly reports on form 10q and an
annual report on form 10k with the us securities and exchange
commission “sec”
the chief executive officer and the chief financial officer supported
by other senior executives also attended individual and group
meetings with major shareholders throughout the year to discuss 
the group’s strategy and performance and to understand the views 
of major shareholders which are then communicated to the board 
as a whole the chairman and the senior independent nonexecutive
director are available also to meet with major shareholders
shire’s website at wwwshirecom provides information about the
group and its business and is regularly updated the group’s investor
relations department acts as a contact point for investors throughout
the year
at the company’ s agm shareholders were given the opportunity to ask
questions of the directors the directors also made themselves available
informally after the meeting to answer questions from shareholders
shire’s approach to responsibility
shire strives to ensure it delivers value to healthcare systems and 
to society it is therefore critical that responsibility is at the heart of
shire’s business in order that we continue to build and maintain trust
with our many stakeholders patients physicians policymakers
payors investors employees and others as well as in the communities
in which we operate shire therefore attaches great importance to
ethical business practices and to societal and environmental issues
accordingly ultimate responsibility for them is taken at the highest
levels the board has reviewed shire’s overall approach to
responsibility the board also periodically reviews the specific business
risks related to responsibility matters as part of the overall risk
management review process
during 2011 shire continued to further advance its responsibility
strategy by focusing on core areas that support the delivery of our
business goals the responsibility coordination team chaired by the
general counsel comprises senior employees who act as sponsors
for responsibility focus areas such as access to medicines public
policy and publicpatient education on the conditions and diseases
relevant to our business team members’ expertise spans the areas 
of health and safety supply chain rd marketing environment
community and drug safety the responsibility coordination team
meets at least four times a year and is responsible for working with
employees across the business to ensure that responsibility is
understood by all employees and is embedded in the way shire
conducts its business and seeks to deliver on its goals responsibility
risks are managed within the overall framework of risk management
explained below under the heading “internal control” 
8446 annual report 2011annual report 2011  15032012  1612  page 51 52 shire plc annual report 2011 shire plc annual repo
corporate governance report
further information about shire’s responsibility focus areas and 
regular news about responsibilityrelated achievements can 
be obtained from the area dedicated to responsibility on shire’s
website at wwwshirecomcr
code of ethics
the group is committed to the maintenance of high ethical standards
the group’s code of ethics applies to all directors and employees 
and is available for review on shire’s website
financial reporting and disclosure internal control and the role 
of the auditors 
the board has through the acr committee established formal and
transparent arrangements for financial reporting external auditing and
the review of the internal control environment including compliance
and other risk issues the acr committee’s terms of reference extend
to the group’s compliance and risk management activities as a whole
and not just the financial aspects of internal control
the acr committee has access as it may require to the group’s
internal and external auditors throughout the year in addition to
presentations from both on a quarterly basis any significant findings 
or identified risks are closely examined and are reported by the acr
committee chairman to the board with recommendations for action
all employees can via an independently managed global compliance
helpline raise any concerns in any of these areas and any other area
anonymously if they wish to the chief compliance and risk officer in
the strictest confidence without fear of retaliation periodically the chief
compliance and risk officer provides the acr committee with a
summary of concerns raised through the global compliance helpline
and to the extent required any specific significant concerns raised
including the result of any follow up investigation 
financial reporting and disclosure 
the board with the assistance of the acr committee has ultimate
responsibility for the preparation of accounts and for the monitoring 
of systems of internal control the board strives to present a balanced
assessment of the group’s financial position and prospects and it
endeavors to present all financial scientific and other information 
so as to be comprehensible to investors the group publishes quarterly
financial reports so that its shareholders can monitor the group’s
financial position regularly
in addition the group has established a disclosure committee which
is chaired by the chief financial officer its membership includes
executives and senior managers from the businesses and from the
legal finance compliance and risk functions its responsibilities include
ensuring that all material information is disclosed to investors in the
group’s periodic financial reports and that such information is
recorded summarized and reported accurately
following the enactment of the sarbanesoxley act 2002 in the us 
the chief executive officer and the chief financial officer are required 
to complete formal certifications which confirm inter alia that
� the annual report on form 10k the “form 10k” in the us does
not contain any material misstatements or omissions 
� financial information reported in the form 10k fairly presents the
financial condition results of operations and cash flows of the group 
� the chief executive officer and the chief financial officer are
responsible for determining and maintaining disclosure controls 
and procedures for the purposes of financial reporting in the us 
� the chief executive officer and the chief financial officer have
evaluated the effectiveness of those disclosure controls and
procedures 
� the chief executive officer and the chief financial officer have
indicated in the form 10k whether there were any significant
changes in the group’s internal control over financial reporting and 
� based on the evaluation of the chief executive officer and the chief
financial officer all significant deficiencies and material weaknesses
in the design or operation of internal control over financial reporting
which are reasonably likely to affect adversely the group’s ability 
to record process and report financial information included in the
form 10k have been disclosed to the group’s external auditor 
the chief executive officer and the chief financial officer have
completed these certifications and they have been filed with the 
sec in the us as part of the group’s annual report as at december
31 2011 on form 10k
risk management compliance and internal control 
the board in accordance with the turnbull guidance on internal
control recognizes its overall responsibility to maintain sound risk
management and internal control systems to safeguard shareholders’
investments and the group’s assets and to regularly review the
effectiveness of such systems while the board acknowledges its
responsibility for the systems of risk management and internal control
such systems are designed to manage rather than eliminate all risk
accordingly even the most effective systems of risk management 
and internal control can provide only reasonable and not absolute
assurance against material misstatement or loss
in 2011 the board reviewed both the key risks faced by the group 
and the effectiveness of the group’s risk management and internal
control systems aside from these reviews the board delegates
responsibility to the acr committee for more regular review of both
key risks and internal controls and for monitoring the activities of the
internal audit function the acr committee has kept these areas 
under regular review during 2011
the group has risk management compliance internal audit functions
and other corporate and business assurance functions the chief
compliance and risk officer and the head of internal audit report 
to the chief executive officer and chief financial officer respectively 
but each has direct and regular access to the chairman of the group
the chairman of the acr committee and the other members of that
committee they also both attend and regularly present at acr
committee meetings
the group’s risk management compliance and assurance strategy 
is based on a risk and control framework containing the following 
key elements
� an effective control environment
� an effective process to identify assess and manage risks
� effective internal control procedures and
� effective internal audit
8446 annual report 2011annual report 2011  15032012  1612  page 52 c annual report 2011 shire plc annual report 2011 53
governance
effective control environment
the key elements of the group’s control environment are as follows 
� the board has overall responsibility to maintain the risk management
and internal control systems and has delegated certain responsibilities
to the leadership team andor the acr committee 
� a framework of corporate values and a code of ethics which sets
appropriate standards of ethical behavior are operational throughout
the group 
� the internal structure of the organization is well documented with
clear reporting lines and clear limits of authority for different matters 
� a range of corporate policies procedures and training have been
implemented 
� the internal audit department overseen by the head of internal
audit carries out regular reviews of internal controls and reports
findings to management and the acr committee
� the company also maintains other corporate and business
assurance functions in the areas of environment health and safety
research and development and manufacturingsupply chain
these functions also carry out regular reviews of internal controls
and report findings to management and
� the acr committee considers the major findings of any internal
investigations and management’s response to them the acr
committee reports annually to the board on the effectiveness 
of the group’s control environment 
effective identification assessment and management of risks 
management of business risk is essential for ensuring that the group
creates and preserves shareholder value accordingly the group 
has an ongoing process for identifying evaluating and managing 
the significant risks that it faces this process has been in operation
throughout the period under review and up to the date of signing 
the annual report and accounts 
the risk council which is supported by the global compliance and
risk management department “gcrm” oversees the management
and mitigation of the principal risks faced by the group the risk
council comprises a number of crossfunctional senior managers
charged with overseeing the risk management process and activities 
of the group chaired by the chief compliance and risk officer the
membership includes senior employees of the businesses plus the
head of internal audit each business unit and corporate function 
must periodically review the significant risks facing their businesses
the functions are provided with a framework for use in their review 
this review includes identifying operational risks compliance risks 
and risks to the achievement of goals and objectives that review
occurs twice annually and material risks are recorded on a corporate
risk schedule for review and assessment of the risks and mitigation
plans identification of a manager with responsibility for management 
of any given risk is required 
the chief compliance and risk officer provides the risk schedule 
to the leadership team for review and validation the risk schedule 
is then provided twice yearly to the acr committee and annually 
to the board
the risk council is assisted by the gcrm which is responsible 
for supporting the development and implementation of practices 
that facilitate employees’ compliance with laws and group policy 
the gcrm provides assistance to help employees meet high 
ethical standards and comply with applicable laws and regulations 
the principal focus of shire’s compliance effort is to prevent and detect
misconduct or noncompliance with law or regulations through the
promotion of ethical behavior through policy development appropriate
training and monitoring or audit shire employees are encouraged to
seek help and to report suspected cases of misconduct without fear 
of retaliation employees can do this through management or through
the global compliance helpline concerns and allegations are fairly 
and independently investigated and appropriate disciplinary action 
is taken if warranted 
the gcrm is managed by the chief compliance and risk officer 
who reports directly to the chief executive officer the chief
compliance and risk officer chairs the risk council and regularly
provides summary reports on the risk council and compliance
activities to the acr committee the chief compliance and risk officer
has access at all times to the committee chairman which provides a
mechanism for bypassing management should the need ever arise
effective internal control procedures
the group has a system of internal control procedures compliance
with these procedures is monitored through a system of internal review
and regular reports prepared by internal audit the group’s external
auditor and other corporate and business assurance functions 
any significant issues arising are reported to the acr committee 
effective internal audit
the internal review of the group’s control procedures and compliance
with such procedures is mostly undertaken through internal audit 
the acr committee monitors and reviews the internal audit program
considers the findings of internal audit reviews and management’s
response to them and ensures efficient coordination between the
group’s internal and external auditors the group’s internal audit
function comprising a mixture of internal and outsourced resource
was operational throughout 2011 the acr committee which is
responsible for monitoring the activity of the internal audit function has
reviewed the effectiveness of the internal audit function during 2011
external auditing 
the acr committee has the primary responsibility for making 
a recommendation on the appointment reappointment and removal 
of the external auditor as well as for determining the remuneration of
and overseeing the work of the external auditor the acr committee
assesses at least annually the objectivity and independence of the
external auditor taking into account relevant regulatory requirements
the committee reviews and approves the annual external audit plan
each year and ensures it is consistent with the scope of the auditor’s
engagement in order to ensure that the independence and objectivity
of the external auditor is maintained the committee applies a formal
policy for the provision of nonaudit services such services are
categorized as follows
� services for which the external auditor are explicitly excluded 
� services for which the external auditor can be engaged without 
prior referral to the acr committee and 
� services for which preapproval of the acr committee is required 
the committee also considers the fees paid to the external auditor 
and whether the fee levels for nonaudit services individually and 
in aggregate relative to the audit fee are appropriate so as not to
undermine their independence
on an annual basis the acr committee assess the performance 
of the external audit firm based on preestablished critical success
factors management’s opinion on the firm’s independence and
objectivity and other key questions requiring acr committee
consideration
8446 annual report 2011annual report 2011  15032012  1612  page 53 shire plc annual repo 54 shire plc annual report 2011
corporate governance report
management’s report on internal control over financial reporting
the group’s management is responsible for establishing and
maintaining adequate internal control over financial reporting as 
defined in rules 13a to 15f promulgated under the us securities
exchange act of 1934 the group’s internal control over financial
reporting is a process 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 in the us 
the group’s internal control over financial reporting is a process
designed by or under the supervision of the company’s principal
executive and principal financial officers or persons performing 
similar functions and effected by the company’s board management 
and other personnel 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 a company’s internal control over
financial reporting includes those policies and procedures that 
i pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of 
the assets of the company ii provide reasonable assurance that
transactions are recorded as necessary to permit 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 authorizations 
of management and directors of the company and iii provide
reasonable assurance regarding prevention or timely detection 
of unauthorized acquisition use or disposition of the company’s 
assets that could have a material effect on the financial statements
because of inherent limitations of internal control 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
the group’s management assessed the effectiveness of internal
control 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 control over financial reporting was effective as of december
31 2011 
the group’s independent auditor deloitte llp  an independent
registered public accounting firm has issued an auditor’s report 
on the effectiveness of the group’s internal control over financial
reporting the auditor’s report appears on page f3 of the group’s
annual report on form 10k
changes in internal control over financial reporting
during the year ended december 31 2011 there were no changes in
the group’s internal control over financial reporting that have materially
affected or are reasonably likely to materially affect the group’s
internal control over financial reporting
8446 annual report 2011annual report 2011  15032012  1612  page 54 shire plc annual report 2011 55
governance
c annual report 2011
directors’ remuneration report
dear shareholder
on behalf of the board i am pleased to present the remuneration
committee’s report for 2011 for which we will be seeking approval 
from shareholders at our agm in april 2012
the committee’s continued approach is to strike a balance between
remuneration that is appropriate in order to attract and retain top talent
in a competitive global market and the need for remuneration to be
performancelinked and aligned with best practice the committee
also believes that remuneration must be viewed in the context of the
structure and international operations of the company the sector in
which we are operating and against appropriate benchmarks shire is
relatively unique in this regard given our uk listing global revenue
portfolio with over 90 of our product sales coming from markets
outside of the uk and transatlantic shareholder base our remuneration
policy is reviewed against this backdrop and it therefore considers pay
trends and structures in both the uk and us markets
context to the committee’s decisions
in making its decisions the committee considers shire’s overall
performance including both financial and non financial results and in
the light of longterm strategic goals the pharmaceutical industry has
continued to face a challenging operating environment within a difficult
economic climate against which shire has seen another year of strong
performance shire’s performance during 2011 is described in detail in
the chief executive’s review and particular financial highlights include
� total revenues up 23 to 43 billion
� product sales up 26 to 39 billion
� growth in adjusted return on invested capital “roic” of 210 basis
points over 2010
� product sales from nonus markets grew by 25 and
� ordinary share price increase of 45 and ads price increase 
of 44 in 2011
in addition other key accomplishments included a high level of
employee engagement the ongoing development of high potential
talent continued focus on compliance and the demonstration of value
to shire’s stakeholders described in further detail later in this report
individual performance also forms part of the committee’s
assessment consistent with the approach across the organisation
executive directors’ behaviour in the context of shire’s culture is
assessed as part of the performance assessment framework which
includes an examination of the executive directors’ performance 
from both a financial and non financial perspective the resulting
performance ratings have a direct impact on all individual
compensation decisions 
key committee decisions
the committee is comfortable that our pay decisions reflect
performance but also demonstrate responsibility in pay and that
current arrangements continue to appropriately reward our high
performing management team for delivering strong sustainable
performance and longterm shareholder value
� 2012 salary increases for the executive directors below the broader
employee budget and against the backdrop of continued strong
corporate performance
� annual incentive awards at or around target levels with maximum
being at 200 of target levels for executive directors 25 of their
annual incentive awards are deferred in shares for a threeyear period
� longterm incentive awards at or below target levels these awards
constitute a significant proportion of the overall remuneration
package and are subject to challenging performance conditions
closely aligned with the implementation of the company’s strategy
the quantum is consistent with both the nature of our business and
the labour markets in which we compete for talent including the us
pharmaceutical and biotechnology sector
� the maximum vesting of the 2009 portfolio share plan awards to
executive directors which were subject to total shareholder return
performance conditions reflects our excellent upper quartile share
price performance over the last three years
� in light of emerging best practice both annual incentive and 
longterm incentive awards will include clawback provisions going
forward clawback provisions may apply at the committee’s
discretion if it determines that results are materially misstated 
or in the event of serious misconduct
both the board and the remuneration committee reviewed and
discussed in 2011 the link between remuneration arrangements 
and strategic goals to ensure arrangements remain fully aligned 
the committee will continue to monitor the current arrangements 
to ensure they remain aligned with shire’s strategic goals
directors’ remuneration report
the committee remains committed to an ongoing dialogue with
shareholders this report which has been prepared in accordance 
with the uk companies act 2006 and related regulations is designed
to provide helpful context and explanation of the company’s
remuneration policies and considerations that influence our decision
making it is set out in the following key sections
1 key information
2 remuneration committee
3 remuneration policy
4 executive directors’ remuneration package
5 remuneration of other employees
6 performance graph
7 service contracts
8 nonexecutive directors and the chairman
9 statutory disclosures
finally i would like to mention that there have been some changes to
the membership of the committee i would like to welcome david stout
who joined the committee in july 2011 and brings with him extensive
international experience in the pharmaceutical industry in addition
patrick langlois and jeffrey leiden retired from the committee when
they stepped down from the board in november 2011 and january
2012 respectively on behalf of the committee i would like to thank
both patrick and jeffrey for their valuable contribution to the
committee’s work during their tenure 
on behalf of the board
anne minto
chairman of the remuneration committee
8446 annual report 2011annual report 2011  15032012  1612  page 55 shire plc annual repo 56 shire plc annual report 2011
directors’ remuneration report
0 10000 8000 6000 4000 2000
ceo value of package ’000
base salary
target
performance
stretch
performance
pension eaip psp
0 100 80 60 40 20
ceo composition of overall package 
base salary
target
performance
stretch
performance
pension eaip psp
£0 £3000 £2500 £2000 £1500 £1000 £500
cfo value of package £’000
base salary
target
performance
stretch
performance
pension eaip psp
0 100 80 60 40 20
cfo composition of overall package 
base salary
target
performance
stretch
performance
pension eaip psp
1 key information
the following key information sections set out the company’s remuneration policy including the composition and value of the executive directors’ remuneration
packages in target and stretch scenarios together with summaries of the 2011 remuneration package for the executive directors there have been no significant
changes to the structure of the package in 2011 more detail is provided later in the report as appropriate
remuneration policy
the company’s remuneration policy includes the following guiding principles such that all remuneration arrangements are designed to be 
� simple and understandable
� competitive
� strategically and culturally aligned
� performance oriented and
� valued by employees
the composition and value of the executive directors’ remuneration packages in target and stretch scenarios under this policy are set out in the charts below these
show that the proportion of the package delivered through longterm performance is in line with the longterm nature of the business and is significantly higher in the
stretch scenario than in the target scenario as a result the package promotes the achievement of superior longterm performance and aligns the interests of the
executive directors with those of other shareholders a brief description of each remuneration element is set out below the charts
base salary corresponds to 2011 salary pension represents 2011 employer contributions executive annual incentive plan “eaip” reflects the 2011 target award
level for the target scenario and the maximum award level for the stretch scenario portfolio share plan “psp” reflects the expected value of the 2011 target award
for the target scenario and maximum vesting for the stretch scenario options are valued using the same blackscholes model that is used to determine the share
based compensation cost included in the company’s financial statements
summary of 2011 total remuneration for executive directors
the table below sets out the remuneration outcomes for the executive directors in respect of 2011
remuneration element                    angus russell     graham hetherington          commentary
fixed remuneration                                                                                      
base salary                                          1260000                        £455000          base salary corresponds to the amounts received during the year in january 2011
mr russell’s base salary increased to 1260000 and mr hetherington’s base
salary increased to £455000
pension                                                  378000                         £114000          mr russell receives a contribution of 30 of base salary into company plans and
mr hetherington receives a contribution of 25 of base salary into company plans
andor by way of a cash allowance
other benefits                                           54000                           £18000          other benefits include car allowance and private fuel personal financial planning
assistance longterm disability and private medical insurance
variable remuneration                                                                                            
executive annual                                 1134000                        £385000          as a result of corporate and individual performance the committee approved
incentive plan “eaip”                                                                                              an eaip award of 90 of base salary of 180 maximum for mr russell and an
eaip award of 85 of base salary of 160 maximum for mr hetherington
                                                                                                                          25 of each of these awards is deferred in shares for a further three years
portfolio share plan “psp”                3545000                        £852000          these figures represent the expected value of the total grant 275 of base salary
for mr russell and 183 of base salary for mr hetherington the face value of
awards if the maximum vesting level under the performance matrix was realized
would represent 685 of base salary for mr russell and 460 of base salary for
mr hetherington
total remuneration                            6371000                     £1824000          
8446 annual report 2011annual report 2011  15032012  1612  page 56 shire plc annual report 2011 57
governance
c annual report 2011
summary of 2011 remuneration elements for executive directors
fixed remuneration—base salary pensions and other benefits
overview and link to performance                                strategic alignment                                     policy and 2011 decisions
base salary is paid in cash and is pensionable
individual performance and contribution to the
business influences the annual assessment of any
changes to base salary  taking account of relevant
market data
pension contributions of 30 of base salary for the
ceo and 25 of base salary for the cfo are made
either into company plans andor by way of cash
allowance
core benefits include a car allowance and private 
fuel longterm disability and private medical
insurance and personal financial planning assistance
shortterm variable remuneration—executive annual incentive plan
overview and link to performance                                strategic alignment                                     policy and 2011 decisions
the executive directors participate in the
executive annual incentive plan “eaip” which
rewards individuals with an award based on
achievement of predefined committeeapproved
corporate objectives and the individual’s
contributions toward achieving those objectives
75 of any eaip award is payable in cash non
pensionable and 25 is deferred into shares
which vest subject to the participant’ s
employment not being terminated for cause 
after three years
corporate objectives are established in a
scorecard format with key performance measures
established within each dimension including both
financial and non financial measures
the committee also considers 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
clawback arrangements will operate for awards 
in respect of 2012 onwards to cover situations 
where results are materially misstated or in the 
event of serious misconduct
longterm variable remuneration—portfolio share plan
overview and link to performance                                strategic alignment                                     policy and 2011 decisions
the portfolio share plan “psp” comprises stock
appreciation rights “sar awards” and
performance share awards “psa awards” which
vest after three years subject to the achievement
of performance conditions sar awards can be
exercised up to the seventh anniversary of grant
for 2011 awards vesting of awards require 
the achievement of non gaap ebitda and
adjusted roic targets within a performance
matrix 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
clawback arrangements will operate 
in respect of awards made from 2012 
onwards to cover situations where results 
are materially misstated or in the event 
of serious misconduct
shareholding guidelines
executive directors are encouraged to own shares in the company in order to ensure the alignment of their interests with those of the company’s shareholders 
both executive directors have met the shareholding guideline level of 200 and 150 of base salary for the ceo and cfo respectively
the provision of an internationally
competitive core package of base
salary pension and other benefits
enables the company to attract and
retain the executives in order to deliver
the strategy
base salaries are set by reference to relevant market data and 
are influenced by individual performance and contribution to the
business the external pay environment salary increases across 
the company and shareholder expectations
following the annual review the committee decided to 
increase mr russell’s base salary by 24 to 1290000 and 
mr hetherington’ s base salary increased by 22 to £465000 
the committee took into account a range of factors including 
market positioning the delivery of continued strong financial
performance with significant results to shareholders in terms 
of share price growth and the broader employee budget of 3
corporate objectives are the primary
driver for eaip decisions for the
executive directors 
2011 key performance measures are
directly aligned with the strategy set 
out on page 22 of this report and
include financial performance targets
global market share objectives and
sales growth goals
the 2011 key performance measures
are set by the committee both in the
context of annual performance as well
as to ensure progress towards longer
term strategic goals 
further detail on the strategy and some
of the financial and non financial key
performance measures are set out on
pages 22 and 23 of this report
80 and 90 of base salary is payable for “target” performance for the
cfo and ceo respectively and up to 160 and 180 at maximum
as referenced in more detail on page 60 the company’s key
achievements for 2011 included
� revenues from net product sales in 2011 were up 26 
to 39 billion
� non gaap earnings before interest tax depreciation and
amortization “ebitda” increased during 2011 by 27 
to 15 billion
� product sales from exus markets grew by 276 million 25 
in 2011 and represented 35 of total product sales in 2011
� adjusted roic grew by 210 basis points in 2011 over 2010
� regular board review of leadership team succession plans 
the ongoing development of high potential employees and
regular review of diversity metric reports by the organization
� in 2011 the compliance program included extensive training 
on shire’s antibribery policies as well as policies and 
procedures concerning interactions with physicians
� a continued increase in employee engagement as measured 
by a companywide engagement survey
� demonstration of clinical and economic value to shire’s
stakeholders including patients physicians and payors
in determining eaip awards in respect of 2011 for the executive
directors the committee considered performance against each 
of the scorecard dimensions taking into account the strategic
acquisition of advanced biohealing as well as performance 
against personal objectives
the performance measures for the
2011 awards were selected by the
committee to provide alignment to the
core activities and strategy of the group
as it believes that growth in non gaap
ebitda and achievement of adjusted
roic above the weighted average 
cost of capital are key drivers of value
creation these measures feature
significantly in the strategic corporate
scorecard as further set out on page
22 of this report which is reviewed 
and approved by the committee
the combination of these two measures
in a performance matrix is designed 
to reward the executive directors 
for delivering balanced growth
for the ceo the target face values continue to be 400 of base
salary for sar awards and 300 of base salary for psa awards
and for the cfo 300 of base salary for sar awards and 220
of base salary for psa awards the committee determines the level
of awards for the executive directors by reference to a range of
80 to 120 of these target values based on performance and
consideration of appropriate benchmarks 
for 2012 the total face value of psp awards including both psa 
and sar awards will be 685 of base salary for the ceo and 460 
of base salary for the cfo which would represent the maximum
vesting level under the performance matrix being realized
100 80
aip psp
100 80
aip psp
8446 annual report 2011annual report 2011  15032012  1612  page 57 shire plc annual repo 58 shire plc annual report 2011
directors’ remuneration report
2 remuneration committee
terms of reference
to ensure reward arrangements support the company’s payfor
performance philosophy strategy and culture the committee reviews
compensation and benefit plans for the executive directors senior
leadership ie leadership team members and the broader employee
population shareholder views are taken into account to ensure reward
programs are aligned with shareholder feedback and best practice
in december 2011 the committee reviewed its terms of reference 
and confirmed that they remain appropriate also in october 2011 
the committee reviewed its effectiveness and concluded that during
2011 it had operated effectively in fulfilling the duties placed upon it 
by its terms of reference the terms of reference are available on the
company’s website
membership
the board considers all members of the committee to be
independent the following directors served as members of the
committee during the year
member from                                       to
anne minto chairman june 16 2010               to date
william burns march 15 2010             to date
david stout july 27  2011                 to date
patrick langlois november 11 2005      november 10 2011
dr jeffrey leiden january 1 2007            january 31 2012
the chairman and the chief executive officer “ceo” attend meetings
of the committee by invitation but neither is present in any discussions
relating to their own remuneration
advisors
the committee was materially assisted in 2011 by joann verderese
vice president total rewards and ann judge senior vice president
global human resources
pricewaterhousecoopers llp continued to serve as the independent
external advisor to the committee pricewaterhousecoopers llp also
provided global consultancy services to the company in 2011 primarily
in respect of tax matters
remuneration committee activities for 2011
the committee met five times in 2011 and details of attendance at
these meetings are provided in the corporate governance report on
page 51
in 2011 the committee discussed the key agenda items set out in the
following table the committee considered pay conditions across the
company both in the context of remuneration decisions for the
executive directors as well as through specific agenda items relating to
annual compensation budgets the corporate scorecard assessment
that drives companywide annual incentive funding and the operation
of broadbased share plans
key agenda items
� assessment of company performance against the 2010 corporate
scorecard
� approval of 2010 performance and remuneration decisions for the
ceo cfo and oversight of the rest of the leadership team 
� determination of the vesting percentage of the 2008 awards granted
under the psp for executive directors 
� approval of the 2011 corporate scorecard objectives and key
performance indicators
� approval of the 2011 performance matrix for psp awards to
executive directors
� approval of the 2010 directors’ remuneration report
� consideration of trends in executive remuneration and corporate
governance developments
� review of shareholder and proxy advisory firm feedback on the 2010
directors’ remuneration report
� review of company’s remuneration philosophy and remuneration
linkages to business strategy
� review of uk pension arrangements in light of uk tax changes
� review and implementation of clawback arrangements
� approval of annual offerings of sharesave and employee stock
purchase plans “espp” awards
� review of committee effectiveness
� review of the 2011 year end compensation process and budgets 
for all employees
� preliminary discussion of 2011 performance and remuneration
decisions for the ceo cfo and the rest of the leadership team
including peer group review
� preliminary review of the 2012 performance matrix for psp awards
to executive directors
� preliminary review of the 2012 corporate scorecard
� review of the chairman’s fees
� review of ceo cfo and the rest of the leadership team’s
shareholdings and
� review of the committee’s terms of reference
8446 annual report 2011annual report 2011  15032012  1612  page 58 shire plc annual report 2011 59
governance
c annual report 2011
3 remuneration policy
guiding principles
the guiding principles of the company’s remuneration policy are set
out below
i simple and understandable
� employees understand their impact on business performance
and how they will be rewarded accordingly
� arrangements are practical and easily communicated
ii 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
� overall remuneration is both costeffective and appropriate
iii 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 this culture is based around the following values
a act with the highest ethical standards integrity and respect 
for others’ views and the world we live in always be mindful 
we work in a business where patients’ lives are at stake
b have the courage of your convictions challenge the status 
quo with a sense of urgency for great ideas and new 
solutions because in the lives of patients and their families
every day matters
c exemplify trust and openness through collaboration 
and teamwork recognize that being brave is a collective
and individual endeavor hold yourself accountable for what
you do and what you don’t do
iv 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 longterm performance
� the exercise of informed discretion plays an important role 
in remuneration decisions to help avoid perverse outcomes
v valued by employees
� each element of the package is valued by employees and 
costeffective 
the guiding principles provide a framework for remuneration decisions
across the company including the committee’s decisions for the
executive directors when making these decisions the committee 
is sensitive to pay and employment conditions elsewhere in the
company
as set out above the company’s remuneration policy is designed 
to attract retain and motivate talented executives of the high caliber
required to ensure that the company is managed successfully 
to the longterm benefit of shareholders to achieve this an
internationally competitive package linked to the company’s 
strategy and performance is provided the package and these 
linkages are outlined in the table on page 57 
remuneration benchmarking
the committee takes a responsible approach to benchmarking for 
the executive directors and reviews remuneration relative to company
and individual performance and to the practice of other comparable
organizations in the markets in which the company competes for
talent reflecting the shape of shire’s international operations market
data is based on 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 medical equipment
and medical supplies sectors
base salary is targeted at around median of the relevant market 
and may be positioned below or above the median depending on 
a variety of factors as described later in this report in terms of total
remuneration the company’s policy is to target at around median 
of the relevant market and to allow for the achievement of higher pay
levels to recognize superior performance
composition and structure of pay
the remuneration package for the executive directors is designed 
to provide an appropriate balance between fixed and variable
performancerelated components with a significant proportion 
of longterm variable pay given the longterm nature of the business
the eaip and psp are considered performancerelated elements
while base salary is essentially “fixed” although performance is
considered when determining any annual increases 
illustrations of the impact of the remuneration policy on the composition
and value of the ceo’s and cfo’s remuneration package in target 
and stretch scenarios are set out in the key information section on
page 56
the committee is satisfied that the composition and structure of the
remuneration package is appropriate and does not incentivize undue
risk taking in light of best practice clawback provisions will be
introduced in respect of future incentive awards to cover situations
where results are materially misstated or in the event of serious
misconduct
share ownership policy
the committee believes that employee share ownership is an
important means to support longterm 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 longterm incentive plan and for the
leadership team 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 individual remuneration packages
the ceo cfo and other members of the leadership team are
encouraged to own shares in the company equivalent to 200 
150 and 100 of base salary respectively within a fiveyear 
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
8446 annual report 2011annual report 2011  15032012  1612  page 59 shire plc annual repo 60 shire plc annual report 2011
directors’ remuneration report
figures in the table below are as at february 21 2012 using an ordinary
share price of £2225 and an ads price of 10395
percentage share
value of of base ownership
shares salary guideline
angus russell 9331613 723 200
graham hetherington £1381369 297 150
the company also operates broadbased share plans an hmrc
approved sharesave scheme in the uk and an employee stock
purchase plan in the us and other countries to encourage wider 
share ownership among the company’s employees
awards under the company’s longterm incentive plans and 
“allemployee” 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 tenyear
period within the 10 limit up to 5 may be used for discretionary
employee share plans
4 executive directors’ remuneration package
base salary
base salaries are reviewed annually to ensure the level remains
appropriate the committee’s salary decisions are informed by the
market rate for an executive director’s skills and experience as well 
as a variety of other factors including individual performance and
contribution to the business the external pay environment salary
increases across the company and shareholder expectations
following the annual review the committee decided to increase 
mr russell’s base salary by 24 to 1290000 and mr hetherington’s
base salary increased by 22 to £465000 the committee took 
into account a range of factors including market positioning the
delivery of continued strong financial performance with significant
results to shareholders in terms of share price growth and the broader
employee budget of 3 with individuals eligible to receive higher
increases depending on for example individual performance and
market positioning
base salaries for the executive directors are set out in the table below
any salary increases typically take effect on january 1 each year
2011 2012 
base salary base salary change
angus russell 1260000 1290000 24
graham hetherington £455000 £465000 22
executive annual incentive plan
the executive directors participate in the eaip which rewards the
achievement of predefined committeeapproved corporate objectives
and the individual’s contributions toward achieving those objectives
the committee also considers the impact of strategic actions on the
company’s performance as well as the company’s response to
external opportunities and events that could not have been predicted
at the beginning of the year
corporate objectives are established in a scorecard format with four
dimensions for 2011 these were as follows financial 40 weighting
operational excellence 20 weighting people and capabilities 
20 weighting and customers 20 weighting key performance
measures are established within each dimension with both financial
and non financial performance considered
eaip awards are paid in cash 75 and ordinary shares or american
depositary shares “ads” 25 the cash element is paid in the first
quarter of the year following the performance year and the share
based element 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 awarded from 2011 onwards include
dividend shares representing accumulated dividends in respect of the
shares under award that vest
for 2011 the company’s key achievements included the following
� revenues from net product sales in 2011 were up 26 to 
39 billion driven by strong growth from the group’s product
sales including vyvanse up 27 to 805 million replagal
up 35 to 475 million lialdamezavant up 27 to 
372 million intuniv up 34 to 223 million adderall xr
up 48 to 533 million and vpriv up 79 to 256 million 
� non gaap ebitda increased during 2011 by 27 to 15 billion
as a result of higher revenues and continued operating leverage
which allowed the group to absorb the effects of higher
investment in our targeted rd programs and increases in 
sga activities to support our recent and future growth
� product sales from exus markets grew by 276 million 25 
in 2011 and represented 35 of total product sales in 2011
� adjusted roic grew by 210 basis points in 2011 over 2010
primarily due to stronger operating margins and improvements 
in net asset efficiency
� succession plans for the leadership team are regularly reviewed
by the board and this process is replicated by executive
management throughout the organization at all management
levels in addition diversity metric reports are generated and
reviewed by the organization regularly
� shire’s compliance function conducts regular training for
employees distributors agents and other partners doing
business with shire in 2011 the compliance program included
extensive training on shire’s antibribery policies as well as
policies and procedures concerning interactions with physicians
� shire completed a companywide engagement survey that
showed a continued increase in employee engagement survey
results showed that shire’ s workforce is highly supportive of our
culture and mission to “enable people with lifealtering conditions
to lead better lives” 
� value has been demonstrated to shire’s stakeholders in 2011
with successes including
—increases in market share in its adhd gi hgt and rm
therapeutic areas
—completion of patient physician and payor surveys for certain
products that will help us continue to meet stakeholder needs
—demonstration of clinical value through the approval of 
—firazyr for selfadministration in the eu and us
—intuniv in the us as adjunctive therapy to stimulants 
for the treatment of adhd for children and adolescents
—lialda in the us and canada for maintenance of remission 
of ulcerative colitis and
� development of dossiers for certain products that demonstrate
economic value to support their pricing and reimbursement
8446 annual report 2011annual report 2011  15032012  1612  page 60 shire plc annual report 2011 61
governance
c annual report 2011
in determining 2011 eaip awards for the executive directors the
committee considered performance against each of the scorecard
dimensions including the achievements set out above taking 
into account the impact of the strategic acquisition of advanced
biohealing as well as performance against personal objectives 
the committee approved an eaip award of 90 of base salary 
of 180 maximum which represents 100 of target of 200
maximum for mr russell and an eaip award of 85 of base 
salary of 160 maximum which represents 106 of target 
of 200 maximum for mr hetherington 
the 2012 eaip will continue to use a scorecard approach with 
the number of key performance measures reduced and grouped 
under financial and non financial dimensions this change is 
intended to allow for greater focus on the most significant strategic
business drivers
key performance measures for 2012 include
� achieving net product sales targets
� achieving non gaap ebitda targets
� achieving adjusted roic targets
� strengthening the commercial portfolio over 2012–2015
� expanding the development pipeline portfolio and
� enhancing the leadership capabilities in the organization
as in previous years key performance measures are set by the
committee both in the context of annual performance as well as 
to ensure progress towards longerterm strategic goals in addition 
the board as well as the committee reviewed and discussed in 2011
the link between remuneration more widely and strategic goals to
ensure arrangements remain fully aligned
longterm incentives
the company uses the portfolio share plan “psp” to grant longterm
incentives to motivate reward and retain employees and to align the
interests of employees with those of the company’s shareholders
annual participation in the psp is at management discretion and is
approved by the committee
the psp comprises two types of award which can be operated
separately
� sar awards a stock appreciation right “sar” is the right to
receive ordinary shares or adss linked to the increase in value of a
specified number of ordinary shares or adss over a period between
one and seven years from the date of grant sar awards granted to
executive directors vest three years after the date of grant subject
to the satisfaction of certain performance conditions described
below sar awards can be exercised up to the seventh anniversary
of the date of grant
� psa awards a performance share award “psa” is the right to
receive a specified number of ordinary shares or adss between 
one and three years from the date of grant psa awards granted to
executive directors vest three years from the date of grant subject
to the satisfaction of certain performance conditions described
below upon vesting of the psa award ordinary shares or adss 
will be released to the participant automatically without any action 
on the part of the participant
the performance conditions for psp awards granted to executive
directors require the achievement of non gaap ebitda and adjusted
roic targets over a threeyear period these measures were selected
by the committee to provide alignment to the core activities and
strategy of the group as the company believes that growth in 
non gaap ebitda and achievement of adjusted roic above the
weighted average cost of capital are key drivers of value creation 
the combination of these two measures in a performance matrix 
is designed to reward the executive directors for delivering balanced
growth performance targets are set annually by the committee 
within the context of the company’s longrange plans and strategy
this timing also helps ensure that executives are not incentivized
inadvertently to take inappropriate risks
award levels
the maximum face value of awards for any participant under the psp
rules which were approved by shareholders in 2008 are 600 of
base salary for sar awards and 400 of base salary for psa awards 
for the ceo the target face values continue to be 400 of base salary
for sar awards and 300 of base salary for psa awards and for the
cfo 300 of base salary for sar awards and 220 of base salary
for psa awards these targets are considered by the committee in
expected value terms as it enables internal relativities and external
benchmarking to be more robustly taken into account the committee
determines the level of awards for the executive directors by reference
to a range of 80 to 120 of these target values based on
performance and consideration of appropriate benchmarks 
the expected value of psp awards is determined by using the black
scholes model which is widely accepted and takes into account
factors such as 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 and taking into account the
probability of vesting in light of applicable performance conditions 
the committee adopted this expected value approach across 
the entire company for the reasons set out above and also because 
it believes that it communicates the intrinsic value of the award
individuals receive is less sensitive to share price fluctuations running
up to the date of grant and allows the company to plan the cost 
of the awards as recorded in the company’s income statement 
the committee recognizes that some shareholders may be more
familiar with a face value approach and therefore has set out face
values in this report it also confirms that the move to an expected
value approach was not used to impact remuneration levels 
for completeness the expected value of 2012 psp awards are
included in the table on page 56
2012 awards
for 2012 the face value of the sar awards will be 391 of base salary
for the ceo and 265 of base salary for the cfo the face value of
the psa awards will be 294 of base salary for the ceo and 195 
of base salary for the cfo consistent with the 2011 awards set out
above these values represent maximum vesting levels and would 
be realized only if stretching and interdependent performance targets 
as provided below were met in full 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
8446 annual report 2011annual report 2011  15032012  1612  page 61 shire plc annual repo 62 shire plc annual report 2011
directors’ remuneration report
the committee reviewed the performance matrix and determined 
that for 2012 the structure and performance measures will be retained
in their current form for 2012 the performance targets have been
changed to maintain appropriate alignment with the company’s 
current longrange plans and strategy as well as the company’s
weighted average cost of capital and broker forecasts the resulting
2012 performance matrix is set out below
adjusted roic
                             ebitda growth cagr 2011–2014
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
the committee will continue to review annually whether the
performance matrix structure and performance targets described
above remain appropriate and challenging taking into account for
example economic expectations the industry’s outlook strategic
objectives and shareholder interests
for the purposes of the matrix ebitda growth is defined as the
compound annual growth rate “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 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
intangible asset impairment charges and operating lease costs
incurred in the period
� capitalizing on the group’s balance sheet historic cumulative rd
inprocess research and development “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
the committee reserves the right to make adjustments to the matrix to
reflect significant one time items which occur during the vesting period
the committee will make full and clear disclosure of any such
adjustments in the remuneration report together with the roic
performance as determined by the above definition at the end of the
performance period
outstanding longterm incentive awards
2011 awards
for 2011 the face value of the sar awards was 420 of base salary
for the ceo and 312 of base salary for the cfo the face value 
of the psa awards was 316 of base salary for the ceo and 232 
of base salary for the cfo
the 2011 performance matrix is set out below
adjusted roic
                             ebitda growth cagr 2010–2013
increase in 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
the same matrix was operated for 2010 psp awards
vesting of the 2009 awards
the 2009 psp awards to the executive directors were subject 
to a performance condition based on relative total shareholder 
return “tsr” measured against two comparator groups namely
ftse 100 constituents excluding financial institutions and a group 
of international companies from the pharmaceutical sector for these
awards which vested in february 2012 the company’s tsr was
1396 for the threemonth averaging period which placed it eighth
among the ftse 100 excluding financial institutions and third among 
its international pharmaceutical group this resulted in a vesting 
of 100 of the award reflecting the strong share price performance 
of the company over the period
vesting of the 2008 awards
as previously disclosed for the 2008 psp awards to executive
directors which vested in february 2011 and was subject to a similar
tsr performance condition the company’s tsr was 317 for 
the threemonth averaging period which placed it 20th among the 
ftse 100 excluding financial institutions and fifth among its peer
group this resulted in a vesting of 88 of the award
other outstanding longterm awards
the interests of each director under the psp and eaip are set out 
on page 67 and under other longterm plans on page 68 
pensions and other benefits
the company’s policy is to ensure that pension benefits are
competitive in the markets in which it operates
mr russell 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 to
certain senior us employees as lump sums on leaving the company’s
employment or in the event of death or disability the amount of 
benefit is based on the value of notional contributions adjusted for
“earned” investment returns as if they were invested in investments 
of the employee’s choice the company contributes a total of 30 
of mr russell’s annual salary to these plans
8446 annual report 2011annual report 2011  15032012  1612  page 62 shire plc annual report 2011 63
governance
c annual report 2011
mr hetherington participates in a uk hmrc registered defined
contribution plan which the company operates for uk employees 
mr hetherington receives a total contribution of 25 of annual salary
to a combination of this plan andor by way of a cash allowance at his
election this choice was put in place in 2011 in light of changes to the
taxation of members of uk registered pension plans from april 6 2011
in addition to pension benefits the executive directors receive certain
benefits principally a car allowance and private fuel private medical
insurance longterm disability insurance and personal financial
planning assistance executive directors are also eligible to participate
in the company’s uk hmrcapproved sharesave scheme and 
the us espp  depending on their location on the same basis 
as other eligible employees these benefits are not pensionable
mr russell was no longer eligible to participate in the sharesave
scheme following his transfer to the us as previously disclosed the
committee approved a cash payment for mr russell made in 2011
equivalent to the amount of gain that he would have made had
he been permitted to remain in the scheme for the full five years 
5 remuneration of other employees
the remuneration policy applies the same overarching guiding
principles to all employees including other members of the leadership
team the exact structure and quantum of individual remuneration
packages varies by business geography role and level of responsibility
within the company in general the proportion of variable remuneration
in the total remuneration package increases with level of responsibility
within the company
all employees’ base salaries are benchmarked against the appropriate
market and 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
the aggregate level of annual incentive funding is determined by
reference to the same corporate scorecard as described for the
executive directors this scorecard is cascaded to each business 
and corporate function to ensure alignment with corporate goals
scorecard targets are further cascaded to each employee through 
their performance objectives with annual incentive awards strongly
differentiated based on individual performance through linkages with
the performance management system members of the leadership
team must defer a proportion of their annual incentive one quarter 
of any eaip award into shares for a threeyear period
discretionary annual equity awards are dependent on an employee’s
level of responsibility within the company and individual performance
phased vesting occurs over a period of three years with the majority
vesting at the end of the threeyear period except for the leadership
team where all of the awards vest after a threeyear period
6 performance graph
the graph below sets out the company’s tsr performance for five
years ending december 31 2011 comparing the tsr performance 
of a hypothetical £100 holding of shire plc’s shares with that of a
holding of shares in the ftse 100 index
the group is a member of the ftse 100 index and consequently 
for the purpose of the graph set out below we have selected the 
ftse 100 index as the appropriate index
fiveyear historical tsr performance
change in value of a hypothetical £100 holding over ﬁve years
5year tsr
shire tsr ftse 100 tsr
150
100
50
250
200
2006 2007 2009 2008 2010 2011
0
8446 annual report 2011annual report 2011  15032012  1612  page 63 7 service contracts
the company’s policy is that executive directors’ service contracts should provide for a notice period from the company of twelve months 
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 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 
the contracts also allow for phased payments on termination with an obligation on the individual to mitigate loss
it is the company’s policy that there should be no element of reward for failure neither notice nor a payment in lieu of notice will be given in the
event of gross misconduct 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 contractual obligations of both parties as well as share plan and pension scheme rules
details of the executive directors’ contract terms are set out in the table below
                                                                 contract date                       notice period           potential compensation on termination
angus russell                           july 2 2008                  12 months        � 12 months’ base salary and the cash equivalent of 12 months’ pension
contributions car allowance and other contractual benefits
                                                                                                                  � no automatic contractual entitlement to annual incentive—any award
is discretionary performancerelated and capped at the contractual
target level or capped at the contractual maximum level if termination
follows a change in control
graham hetherington               july 2 2008                  12 months        � 12 months’ base salary and the cash equivalent of 12 months’ pension
contributions car allowance and other contractual benefits
                                                                                                                  � no automatic contractual entitlement to annual incentive—any award
is discretionary performancerelated and capped at the contractual
target level or capped at the contractual maximum level if termination
follows a change in control
angus russell was appointed as a nonexecutive director of intermune inc on october 31 2011 in respect of this position he will retain fees
payable to him for his services during 2011 which amounted to 8333 he was also awarded 12500 options and 5058 restricted share awards
over shares in intermune inc in respect of this position any other external appointments held by the executive directors do not attract fees
shire plc annual repo 64 shire plc annual report 2011
directors’ remuneration report
8446 annual report 2011annual report 2011  15032012  1612  page 64 8 nonexecutive directors and the chairman
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 periodic reelection by shareholders nonexecutive directors are not
entitled to compensation for loss of office
details of the letters of appointment and next election or reelection are as follows
director
1
                                                           date of appointment                                       date of term expiry                                                 next agm election or reelection
matthew emmens                                  june 18 2010                                  june 17  2012                                         april 2012
david kappler                                         april 5 2010                                     april 4 2012                                           april 2012
dr jeffrey leiden
2
                                 january 1 2011                                december 31 2012                                na
william burns                                         march 15 2010                                march 14 2012                                      april 2012
dr david ginsburg                                 june 16 2010                                  june 15 2012                                         april 2012
susan kilsby                                           september 1 2011                           august 31 2013                                     april 2012
anne minto                                             june 16 2010                                  june 15 2012                                         april 2012
david stout                                            october 31 2011                             october 30 2013                                   april 2012
1 all nonexecutive directors are subject to a threemonth notice period
2 dr jeffrey leiden stepped down from the board on january 31 2012
the nonexecutive directors are not eligible to join the group’s pension scheme nonexecutive directors do not participate in any of the 
group share schemes or other employee benefit schemes and no options have been granted to nonexecutive directors in their capacity 
as nonexecutive directors of shire plc the fees paid to the chairman and nonexecutive directors are not performancerelated
fees are determined by the executive directors and the chairman with the exception of the chairman’s fee which is determined by the
committee fees are benchmarked against chairman and nonexecutive director fees of comparable companies
each nonexecutive director is paid a fee for serving as a nonexecutive director additional fees for membership or chairmanship of the audit
compliance  risk remuneration nomination and science  technology committees the chairman of the group receives an inclusive fee
travel allowances are made for transatlantic trips made on board business
details of fees for 2011 and 2012 are set out in the table below no changes were made for 2012
annual fees
1
                                                                                                                                                               2011 fees           2012 fees
board membership
chairman of the board inclusive of all committees                                                                                                        £370000            £370000
deputy chairman and senior independent nonexecutive director inclusive of nonexecutive director fee                   £92500              £92500
nonexecutive director                                                                                                                                                      £80000              £80000
committee membership
audit compliance  risk committee chairman                                                                                                               £20000              £20000
remuneration committee chairman                                                                                                                                 £15000              £15000
science  technology committee chairman                                                                                                                     £15000              £15000 
nomination committee chairman                                                                                                                                     £12500              £12500
audit compliance  risk committee member                                                                                                                  £10000              £10000
remuneration committee member                                                                                                                                     £7500                £7 500
science  technology committee member                                                                                                                         £7500                £7 500 
nomination committee member                                                                                                                                         £5000                £5000
1 nonexecutive directors receive a £5000 travel allowance for each transatlantic trip made on board business
shire plc annual report 2011 65
governance
c annual report 2011
8446 annual report 2011annual report 2011  15032012  1612  page 65 shire plc annual repo 66 shire plc annual report 2011
directors’ remuneration report
9 statutory disclosures
from this point until the end of the remuneration report on page 69 the disclosures have been audited by the company’ s auditors deloitte llp 
executive directors’ remuneration
the following audited table gives details of the emoluments for each executive director
                                                                                                                             pension                       other                    eaip—cash           eaip—deferred
                                                                                       base salary             contributions               benefits
1
                    element                share element                   total
                                                                                      2011         2010         2011         2010         2011         2010         2011         2010           2011        2010         2011         2010
                                                                                    ’000        ’000        ’000        ’000        ’000        ’000        ’000        ’000         ’000      ’000        ’000        ’000
angus russell
234
                                   1260     1200       378       386         54         54       851     1050         283      350    2826    3040
                                                                                    £’000        £’000        £’000        £’000        £’000        £’000        £’000        £’000         £’000      £’000        £’000        £’000
graham hetherington
45
                             455       435        114        109          18          19       289       356           96       119       972     1038
remuneration for directors on the us payroll is reported in us dollars
1 other benefits include car allowance and private fuel personal financial planning assistance longterm disability and private medical insurance
2 as set out earlier in this report mr russell was no longer eligible to participate in the sharesave scheme following his transfer to the us as previously disclosed 
the committee approved a cash payment for mr russell made in 2011 equivalent to the amount of gain that he would have made had he been permitted to remain 
in the plan for the full five years the value of the payment was 77 25639 and is in addition to the figures in the table above
3 in 2010 mr russell received a cash payment in lieu of a pension contribution of £17 050 equal to 26324 based on an exchange rate at the time of payment which 
is included in his 2010 pension contribution
4 the other benefits received by mr russell and mr hetherington in 2010 have been restated to include payments in relation to private fuel and for mr russell in relation 
to personal financial planning assistance and longterm disability insurance which should have been disclosed in 2010
5 mr hetherington’s pension contribution of 25 of base salary is made through a combination of payments into a company defined contribution plan and a cash allowance
nonexecutive directors’ remuneration
the following audited table gives details of the fees for each nonexecutive director and the chairman
                                                                        board membership                                                        audit
                                                                                                 compliance                                       science 
                                                                                                        travel    remuneration                  risk         nomination         technology                    total                     total
                                                                               fee
1
        allowance         committee         committee         committee         committee           2011 fees             2010 fees
matthew emmens                       £382037         £15000                    –                    –                    –                    –       £397037       £350000
david kappler                                £98845         £10000                    –         £20000         £12500                    –       £141345       £120000
dr jeffrey leiden                           £88662         £15000           £7500                    –           £5000         £15000       £131162       £100000
william burns
2
                               £80672         £10000           £7500                    –           £2143                    –       £100315         £66403
dr david ginsburg
3
                       £80519         £15000                    –                    –                    –           £7500       £103019         £46730
susan kilsby
4
                                £26667         £10000                    –           £3333                    –                    –         £40000                    –
patrick langlois
5
                           £75372           £5000           £6481           £8641                    –                    –         £95494         £92500
anne minto
6
                                  £80504         £10000         £15000                    –                    –                    –       £105504         £48881
david stout
7
                                  £85893         £10000           £3214         £10000                    –                    –        £109107         £90000
1 fees include amounts paid resulting from the incorrect tax treatment of travel allowances in 2009 and 2010
2 mr burns was appointed as a nonexecutive director and a member of the remuneration committee on march 15 2010 and as a member of the nomination committee 
on july 27  2011
3 dr ginsburg was appointed as a nonexecutive director and a member of the science  technology committee on june 16 2010
4 ms kilsby was appointed as a nonexecutive director and a member of the audit compliance  risk committee on september 1 2011
5 mr langlois stepped down from the board and as a member of the remuneration committee and the audit compliance  risk committee on november 10 2011
6 ms minto was appointed as a nonexecutive director and a member of the remuneration committee on june 16 2010 and appointed as chairman of the remuneration
committee on july 27  2010
7 mr stout was appointed as a member of the remuneration committee on july 27  2011
8446 annual report 2011annual report 2011  15032012  1612  page 66 shire plc annual report 2011 67
governance
c annual report 2011
directors’ interests under current longterm plans
psa and sar awards under the portfolio share plan and deferred share awards under the executive annual incentive plan which were outstanding
awarded lapsed or exercised during the year are set out in the audited table below
                                                                                                                                                                                                               share price                        
                                                                                                                                                                                                                  on award     share price                          normal
                                                                                          at     maximum                                                                                     at             date       on date of                         exercise
                                                          date of               jan 1         shares       dividend                           exercised           dec 31       exercise         exercise                          period
award type
1
                                award                2011      awarded
23
     shares
4
         lapsed       released              2011             price
5
          release                   vesting date
matthew emmens
6
sar ads                 aug 17 2006     125562              –               –                 –   125562               –     4936        9156     aug 17  2009 to
                                                                                                                                                                                                              aug 17  2011
sar ads                 feb 27 2007       78825              –               –                 –     78825               –      6410     10253     feb 27  2010 to
                                                                                                                                                                                                              feb 27  2012
sar ads                 mar 28 2008       35126              –               –          4216     30910               –     5851     10253     mar 28 2011 to
                                                                                                                                                                                                              mar 28 2013
psa ads                 mar 28 2008       26345              –          498          3162     23681               –     5851        9156         mar 28 2011
eaip ads                mar 31 2008       12881             –               –                 –     12881               –      57 96        87 10         mar 31 2011
eaip ads                jul 31 2008         6471              –               –                 –       6471               –     5034     10253           jul 31 2011
angus russell
sar                          feb 22 2008       85000              –               –       10200     74800               –       £997       £2099     feb 22 2011 to
                                                                                                                                                                                                               feb 22 2013
sar                           jun 18 2008     123547              –               –       14826              –    108721        £813                 –      jun 18 2011 to
                                                                                                                                                                                                               jun 18 2013
psa                           feb 22 2008       60000              –        1135          7 200     53935               –       £997        £1867         feb 22 2011
psa                           jun 18 2008       96410             –        1543        11570     86383               –        £813        £1836          jun 18 2011
eaip                          mar 31 2008       20068              –               –                 –     20068               –        £974        £1811         mar 31 2011
sar                          feb 20 2009     295580              –               –                 –              –    295580       £883                 –     feb 20 2012 to
                                                                                                                                                                                                               feb 20 2014
psa                           feb 20 2009      221685              –               –                 –              –    221685       £883                 –         feb 20 2012
eaip                          mar 31 2009        37 814              –               –                 –              –       37 814       £863                 –         mar 31 2012
sar ads                mar 01 2010      105616              –               –                 –              –    105616     6491                 –     mar 01 2013 to
                                                                                                                                                                                                               mar 01 2017
psa ads                 mar 01 2010       73948              –               –                 –              –      73948     6491                 –         mar 01 2013
eaip ads                mar 31 2010          7 421              –               –                 –              –        7 421     6596                 –         mar 31 2013
sar ads                feb 28 2011                 –     63126               –                 –              –      63126     8379                 –     feb 28 2014 to
                                                                                                                                                                                                               feb 28 2018
psa ads                feb 28 2011                 –     47 344               –                 –              –      47 344      8501                 –         feb 28 2014
eaip ads                mar 31 2011                 –       3994               –                 –              –        3994      87 10                 –         mar 31 2014
graham hetherington
sar                           aug 01 2008     100000              –               –       12000     88000               –       £868       £2026     aug 01 2011 to
                                                                                                                                                                                                               aug 01 2013
psa                           aug 01 2008       75000              –        1200         9000     67 200               –       £868       £2026         aug 01 2011
sar                          feb 20 2009     100000              –               –                 –              –    100000       £883                 –     feb 20 2012 to
                                                                                                                                                                                                               feb 20 2014
psa                           feb 20 2009       75000              –               –                 –              –      75000       £883                 –         feb 20 2012
eaip                          mar 31 2009         9007              –               –                 –              –        9006       £863                 –         mar 31 2012
sar                           mar 01 2010      134814              –               –                 –              –    134814      £1443                 –     mar 01 2013 to
                                                                                                                                                                                                               mar 01 2017
psa                           mar 01 2010       98864              –               –                 –              –      98864      £1443                 –         mar 01 2013
eaip                          mar 31 2010       12569              –               –                 –              –      12569      £1454                 –         mar 31 2013
sar                           feb 28 2011                 –     82873               –                 –              –      82873      £17 23                 –     feb 28 2014 to
                                                                                                                                                                                                               feb 28 2018
psa                           feb 28 2011                 –     60769               –                 –              –      60769      £17 41                 –         feb 28 2014
eaip                          mar 31 2011                 –       6504               –                 –              –        6504      £1811                 –         mar 31 2014
8446 annual report 2011annual report 2011  15032012  1612  page 67 shire plc annual repo 68 shire plc annual report 2011
httpar2011shirecom ››
more online at
directors’ remuneration report
directors’ interests under current longterm plans continued
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 in 2010 and 2011 are adjusted roic and non gaap ebitda further information can be found 
on page 62
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 is equal to the three day average up to and including the date of award of the closing midmarket price the exercise
price for sar awards granted prior to 2011 is the midmarket closing price on the date of award
6 mr emmens’ awards were granted to him while he held the position of chief executive officer of the company
7 the percentage of the awards granted in 2008 that vested based on the performance conditions was 88 the remainder of these awards are shown in the table above 
as lapsed the percentage of the awards granted in 2009 that vested based on the performance conditions was 100 
the 2008 and 2009 awards include a market condition based on relative total shareholder return “tsr” measured against two comparator groups in determining the
vesting percentage of a sar award or psa award granted to executive directors 33 weighting depended upon the company’s tsr performance relative to the
performance of ftse 100 constituents excluding financial institutions and 67 weighting depended upon the company’s tsr performance relative to the performance 
of a group of international companies from the pharmaceutical sector vesting was determined as follows
 vesting tsr performance level achieved
0 vesting tsr performance below the median versus the comparator companies and the ftse 100 excluding financial institutions
33 vesting tsr performance at median versus the comparator companies and the ftse 100 excluding financial institutions
100 vesting tsr performance at or above upper quartile performance versus the comparator companies and the ftse 100 excluding financial institutions
tsr performance between median and upper quartile versus the comparator companies and the ftse 100 excluding financial institutions is calculated from 33 to 100
on a straightline basis
the comparator group set at the time of award for the 2008 awards was allergan inc atlana aktiengesellschaft biovail corporation cephalon inc forest laboratories inc
king pharmaceuticals inc kos pharmaceuticals inc h lundbeck as medicis pharmaceutical corporation novo nordisk as schering ag sepracor inc 
merck serono sa ucb sa valeant pharmeuticals international inc and watson pharmaceuticals inc
the comparator group set at the time of award for the 2009 awards was actelion pharmaceuticals ltd amgen inc biomarin pharmaceutical inc biogen idec inc 
biovail corporation celgene corporation cephalon inc endo pharmaceuticals holdings inc forest laboratories inc genzyme corporation gilead sciences inc 
ipsen ltd king pharmaceuticals inc h lundbeck as novo nordisk as and ucb sa
where a company delists during the performance period the proceeds are treated as being reinvested in an index that tracks the tsr of the remaining companies
tsr performance was measured using an averaging period of three months in addition the committee had regard to the same calculation using an averaging period 
of six months as part of a fairness review to ensure that vesting properly reflected underlying performance
8 as previously disclosed the company moved to calculating the number of psa and sar awards using an approach based on the average threeday share price at the 
time of grant for the awards made in 2010 and subsequently rather than an average share price over the prior twelve month period which had historically been applied
directors’ interests under other longterm plans
awards under other longterm plans which were outstanding awarded lapsed or exercised during the year are set out in the audited table below
                                                                                                                                                                                                                                              market                                      
                                                                                                               at                                                                                     at                                price on                          normal
                                                                                  date of            jan 1                                                                            dec 31       exercise         exercise                         exercise
award type                                                           award            2011       awarded        exercised        lapsed              2011             price            release                            period
angus russell
2000 executive scheme b           jun 05 2001     69213               –       69213              –               –      £1257        £1859     jun 05 2004 to
                                                                                                                                                                                                               jun 04 2011
graham hetherington
sharesave
1
                                 dec 01 2008      1240             –        1240             –              –       £774      £2126   dec 01 2011 to
                                                                                                                                                                                        may 31 2012
1 options granted under the sharesave scheme are granted with an exercise price equal to 80 of the midmarket price on the day before invitations are issued to employees
the market price of the company’s ordinary shares at december 31 2011 was £2243 and the range during the year was £1561 to £2243 
the market price of the company’s adss at december 31 2011 was 10390 and the range during the year was 7261 to 10400
8446 annual report 2011annual report 2011  15032012  1612  page 68 shire plc annual report 2011 69
governance
c annual report 2011
directors’ interests in the company shares
interests in the share capital of the company are set out in the audited table below
as at december 31 2011 as at february 21 2012
beneficial conditional beneficial conditional
psp psp
                                                                               security           number                sar                psa                                   number                sar                psa
                                                                                    type        of shares           awards            awards                eaip         of shares            awards            awards                   eaip
matthew emmens                                 ads
1
       6264
2
                –                 –                 –       6264
2
                –                 –                   –
                                               ordinary shares       92874                 –                 –                 –       92874                 –                 –                   –
angus russell                                        ads
1
                –      168742      121292        11415                 –      168742      121292           11415
                                               ordinary shares      131330     404301      221685        37 814     193582     295580                 –          37 814
graham hetherington           ordinary shares        17 865      317 687     234633       28080       34004      217 687     159633          28080
david kappler                       ordinary shares       10000                 –                 –                 –       10000                 –                 –                   –
anne minto                            ordinary shares         2228                 –                 –                 –         2228                 –                 –                   –
1 one ads is equal to three ordinary shares
2 mr emmens’ beneficial interests include 415 adss held by his partner
mr burns dr ginsburg ms kilsby and mr stout hold no interests in the share capital of shire plc dr leiden held no interests in the share capital of shire plc up to the date 
he stepped down from the board on january 31 2012
approval
this report was approved by the board of directors on february 23 2012 and signed on its behalf by
anne minto
chairman of the remuneration committee
8446 annual report 2011annual report 2011  15032012  1612  page 69 shire plc annual repo 70 shire plc annual report 2011
nomination committee report
the following directors served as members of the nomination committee
“the committee” during the year ended december 31 2011
member                                             from to
david kappler chairman           april 5 2004 to date
william burns                             july 27  2011 to date
matthew emmens                     june 18 2008 to date
dr jeffrey leiden                       july 25 2007 january 31 2012
a majority of the committee has been determined by the board 
to be independent nonexecutive directors for the purposes of the
governance code ms anne minto was appointed as a member 
of the committee with effect from february 8 2012
role of the nomination committee
the key responsibilities of the committee under its terms of reference
are to
� regularly review the structure size and composition of the board
including the skills knowledge diversity and experience of the
board and make recommendations to the board with regard 
to any changes
� identify and nominate for the approval of the board candidates 
for new board appointments
� in relation to appointments to the board to identify capabilities
required and consider candidates from a wide range of backgrounds
on merit against objective criteria and with due regard for the
benefits of diversity and also consider the candidate’s ability to
devote sufficient time to discharge their responsibilities effectively
� review succession planning for executive and nonexecutive
directors to ensure that this is managed in a timely manner with 
a view of ensuring longterm success of the group and
� make recommendations to the board concerning the re
appointment of any nonexecutive director at the conclusion 
of their specified term of office having regard to their performance
and ability to continue to contribute to the board in light of the
knowledge skills and experience required
the terms of reference of the committee are available on shire’s
website at wwwshirecom
nomination committee activities
the committee met five times during 2011 the attendance record 
is set out in the corporate governance report on page 51 at the
invitation of the committee mr russell attended all meetings
during 2011 the business reviewed by the committee included
� updates on corporate governance including board diversity 
and the annual reelection of directors
� the selection and engagement of search agencies to help the
committee identify potential new board candidates in engaging
search agencies the committee requests that the agency takes
account of board diversity including gender in their search for
potential board candidates the board considered and agreed 
with the committee’s recommendation that susan kilsby join the
board as a nonexecutive director
� a review of the composition diversity tenure independence and the
balance of skills and experience of the board and its committees
� succession planning for the board
� an evaluation of the committee’s performance to ensure it is
operating effectively taking into account feedback from the board
� recommendations to the board concerning the reappointment 
of nonexecutive directors whose terms of office expired during 
the year and
� a review of the committee’s terms of reference
david kappler
chairman of the nomination committee
8446 annual report 2011annual report 2011  15032012  1612  page 70 shire plc annual report 2011 71
governance
c annual report 2011
audit compliance  risk committee report
the following nonexecutive directors served as members of the audit
compliance  risk committee the “committee” during the year
ended december 31 2011
member from                                       to
david kappler chairman april 5 2004                 to date
susan kilsby september 1 2011        to date
david stout december 8 2009        to date
patrick langlois november 11 2005      november 10 2011
members of the committee are chosen from amongst the non
executive directors of the company and are selected on the basis of
their knowledge and experience of financial matters financial reporting
risk management and internal control each of the members of the
committee has been determined by the board to be an independent
nonexecutive director for the purposes of the governance code
each member also satisfies the nasdaq rules regarding the
independence of members of the committee
the board is satisfied that mr kappler who is a fellow of the chartered
institute of management accountants and who was chief financial
officer of the cadbury schweppes group from 1995 until his retirement
in april 2004 has relevant financial experience the board has also
determined that mr kappler is the committee’s financial expert for the
purposes of the sarbanesoxley act 2002
role of the committee
the committee’s terms of reference include all matters specified in 
the disclosure and transparency rule 7 1 and the governance code
the committee’s terms of reference are available on shire’s website
the key responsibilities of the committee under its terms of reference
are to
� monitor the integrity of the financial statements of the group
including its annual and quarterly reports preliminary results
announcements and any other shire announcement relating 
to the group’s financial performance
� ensure clarity of disclosure in financial reporting and the presentation
of a balanced and understandable assessment of the group’s
financial position
� make recommendations to the board on matters to be put to
shareholders in relation to the appointment reappointment and
removal of the external auditor to determine the remuneration 
of the external auditor and to assess at least annually the objectivity
and independence of the external auditor
� approve the external audit plan and review and discuss issues 
and recommendations arising from the external audit
� set and apply a formal policy in relation to the provision of nonaudit
services by the external auditor with a view to preserving the external
auditor’s independence and objectivity
� monitor and review the integrity of the internal audit program
consider the findings of internal audit reviews and management’s
response to them
� review the annual internal audit plan and review at least annually 
the effectiveness of the group’s internal control and risk
management systems
� review the group’s strategy for the management of key corporate
and financial risks of the group
� review procedures for the receipt and treatment of complaints
received by the group regarding accounting internal accounting
controls or auditing matters
� to review the status of the company’s compliance programme to
ensure adherence to applicable legal and regulatory standards and
to the company’s code of ethics where there may be a material
impact on the company
� review with the chief compliance and risk officer arrangements 
for the confidential anonymous submission by employees of
concerns regarding matters which could have a material impact 
on the group and to ensure these arrangements allow
proportionate and independent investigation of such matters 
and appropriate follow up action 
� review the major findings of internal investigations and
management’s response and material inquiries received from
regulators or governmental agencies and
� review the group’s procedures for detecting fraud and review the
investigation and remediation of any alleged or suspected fraud
the chairman of the committee briefs the board at each of its
meetings on the matters considered by the committee including those
items where it considers that action is required the committee’s terms
of reference give it authority to investigate any activity within its terms of
reference and to be responsible for the resolution of any disagreement
between management and the external auditor regarding the group’s
financial reporting the committee is also authorized to seek any
information it requires from any employee of the group in order for the
committee to perform its duties
approval of audit and nonaudit services provided 
by the external auditor
the committee has adopted a formal policy in relation to the provision
of audit and nonaudit services by the external auditor the principal
purpose of the policy is to ensure that the independence of the external
auditor is not impaired 
the policy which is in compliance with the sarbanesoxley act 2002
prohibits the provision of certain nonaudit services to the group 
by the external auditor including
� bookkeeping or other services related to the accounting records 
or financial statements of the group
� design and implementation of financial information systems
� appraisal or valuation services fairness opinions or contribution
inkind reports
� actuarial services or internal audit outsourcing services
� legal services and expert services unrelated to the audit
� management functions or human resources services
� broker dealer investment advisor or investment banking 
services and
� any other service that the public company accounting oversight
board determines is impermissible as a nonaudit service
all audit and permissible nonaudit services may be provided by 
the external auditor if the work is either specifically preapproved 
by the committee or if the work falls within a schedule of services 
preapproved by the committee in accordance with the preapproval
policy the committee’s preapproval policy covers four categories 
of work—audit services auditrelated services taxation services 
and other nonaudit related services if the services proposed to be
provided by the external auditor fall within a category of preapproved
services and additionally the fee for those services is below pre
approved annual and transactional limits such services may be
provided by the external auditor without specific individual approval 
of those services by the committee provided that management 
8446 annual report 2011annual report 2011  15032012  1612  page 71 shire plc annual repo 72 shire plc annual report 2011
does not need to exercise any discretion in determining whether 
a proposed service falls within one of the preapproved categories 
in all cases the committee is notified at the next committee meeting
of any preapproved service that is provided by the external auditor 
any audit or permissible nonaudit services proposed to be provided
by the external auditor which is either not a preapproved service 
or is a preapproved service for which fees are above the annual or
transactional limits must be approved in advance by the committee
who will consider whether the independence skills and experience of
the external auditor make it a suitable supplier of the proposed service
authority has been delegated to the chairman of the committee
to approve such services in situations where the company requires 
an expeditious decision any decision made under such delegation 
of authority is presented to the committee at its subsequent 
scheduled meeting
committee activities
the committee met on five occasions in 2011 the members of the
committee attended all meetings they were eligible to attend with 
the exception of mr langlois who was unable to attend one meeting
due to illness at the invitation of the chairman of the committee the
chief executive officer the chief financial officer the group financial
controller the chief compliance and risk officer the head of internal
audit the group’s external auditor and the chairman of the board
attended committee meetings
in addition the committee held a number of separate private meetings
during the course of the year with respectively the group’s external
auditor the head of internal audit and the chief compliance and risk
officer without any executive member of the board or other member of
management present the purpose of these meetings was to facilitate
open discussions between committee members and these persons
during 2011 the committee’s areas of review included
1 financial statements
� consideration of any key accounting judgments
� the financial disclosures contained in the group’s 2010 full year and
2011 quarterly results announcements and related financial reports
� various accounting matters including but not limited to the
application of the group’s critical accounting policies and us gaap
in the context of the financial statement disclosures accounting for
the acquisition of advanced biohealing inc accounting for sales
deductions revenue recognition for royalty income receivable from
gsk intangible asset impairment reviews the accounting for various
tax matters and the application of new accounting standards
� review of the questions raised by the sec concerning the group’s
2010 form 10k filing and the approval of shire’s responses 
the sec were satisfied with shire’s responses and
� quarterly audit reports from the external auditor were received 
by the committee and discussed the reports addressed the
following key areas
—external auditor responsibility and independence
—significant accounting estimates and judgments made by
management and
—significant accounting policies and one off transactions 
2 internal financial control and risk management systems
� semiannual review of the group’s corporate risk schedule which
included the consideration of the key risks faced by the group 
and review of the group’s plans to mitigate such risks
� review of the group’s annual internal audit plan compliance with
section 404 of the sarbanesoxley act 2002 and the effectiveness
of the group’s system of internal controls over financial reporting
� quarterly review of the results of the group’s internal audit program
� annual review of the group treasury policies and recommendation 
of proposed changes to the board
� quarterly reports on treasury activities and a review of the group’s
foreign exchange exposure risk management strategy
� annual review of the group’s tax strategy and assessment of fiscal
risk and
� review of the group’s arrangements for the confidential anonymous
submission by employees of concerns regarding matters which
could have a material impact on the group
3 other matters
� compliance updates including areas relating to bribery and
corruption
� review the renewal terms of the group’s insurance programme
� review of the committee’s terms of reference and
� the evaluation of the committee’s performance
4 external auditor
� an initial review of the external auditor’s performance and
effectiveness during 2011 and a final review of the 2011 audit 
at the february 2012 committee meeting 
� review of the policy on the provision of audit and nonaudit 
services by the external auditor
� approval of the 2011 audit plan and fees and 
� review of the objectivity and independence of the external auditor
the committee has remained satisfied that neither the level of non
audit services nor the nature of the work performed by the external
auditor has in any way impaired their objectivity and independence
details of the fees paid to the external auditor are disclosed in
note 31 to the consolidated financial statements
following the review of the external auditor’s performance as regards
the 2011 financial year the committee recommend to the board 
the reappointment of deloitte llp as the group’s external auditor 
a resolution to reappoint deloitte llp will be put to shareholders 
at the 2012 agm 
the external auditor is required to rotate the audit partner responsible
for the engagement every five years at the conclusion of the 2011 
year end audit paul franek will be replaced by james bates as the
audit partner there are no contractual obligations that restrict the
company’s choice of external auditor
david kappler
chairman of the audit compliance  risk committee
audit compliance  risk committee report
8446 annual report 2011annual report 2011  15032012  1612  page 72 shire plc annual report 2011 73
governance
c annual report 2011
statement of directors’ responsibilities
the directors are responsible for preparing the annual report 
the directors’ remuneration report and the financial statements 
in accordance with applicable law and regulations
the directors have elected to prepare the consolidated financial
statements in conformity with accounting principles generally accepted
in the united states of america the directors are also required to
� properly select and apply accounting policies
� present information including accounting policies in a manner 
that provides relevant reliable comparable and understandable
information and
� make an assessment of the group’s ability to continue as a going
concern
the directors are responsible for keeping proper accounting records
that disclose with reasonable accuracy at any time the financial position
of shire and enable them to ensure that the financial statements
comply with the companies jersey law 1991 the directors are also
responsible for safeguarding the assets of the group 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 shire’s website
the directors confirm to the best of their knowledge
� that 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 management report which is incorporated into the financial
review 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
8446 annual report 2011annual report 2011  15032012  1612  page 73 74 shire plc annual report 2011 shire plc annual repo
independent auditors’ report to the members of shire plc
we have audited the accompanying consolidated balance sheet 
of shire plc and subsidiaries as of december 31  2011 and the related
consolidated statements of income equity comprehensive income 
and cash flows for the year ended december 31  2011 and the related
notes 1 to 32 together the “financial statements” these financial
statements have been prepared in conformity with accounting principles
generally accepted in the united states of america we have also
audited the information in the directors’ remuneration report that is
described as having been audited
we have reported separately on the parent company financial
statements of shire plc for the year ended december 31  2011 
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 t o 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
respective responsibilities of directors and auditor
the directors’ responsibilities for preparing the annual report the
directors’ remuneration report and the financial statements are set 
out in the statement of directors’ responsibilities our responsibility 
is to audit and express an opinion on the financial statements and the
part of the directors’ remuneration report to be audited in accordance
with relevant legal and regulatory requirements and international
standards on auditing united kingdom and republic of ireland those
standards require us to comply with the united kingdom auditing
practices board’ s ethical standards for auditors
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 group’ 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 
if we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report
opinion on the financial statements
in our opinion the financial statements
� present fairly in all material respects the financial position of shire plc
and subsidiaries as of december 31  2011 and the results of its
operations and cash flows for the year ended december 31  2011  
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 
matters on which we are required to report by exception 
we have nothing to report in respect of the following matters where 
the companies jersey law 1991 requires us to report to you if 
in our opinion
� proper accounting records have not been kept 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 or
� we have not received all the information and explanations we require
for our audit
matters on which we are required to report by the listing rules
we have nothing to report in respect of our duty under the listing 
rules to review
� the directors’ statement contained within the financial statements 
in relation to going concern
� the part of the corporate governance report relating to the 
company’ s compliance with the nine provisions of the june 2008
combined code specified for our review and
� certain elements of the report to shareholders by the board on
directors’ remuneration
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
applied were the company 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 united kingdom
companies act 2006 that would have applied were the company
incorporated in the united kingdom
paul franek
for and on behalf of deloitte llp
chartered accountants and recognized auditors
london united kingdom
february 23 2011
8446 annual report 2011annual report 2011  15032012  1612  page 74 c annual report 2011 shire plc annual report 2011 75
financial statements
consolidated balance sheets
in millions of us dollars except share data
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                               notes                            ’m                            ’m
assets
current assets
cash and cash equivalents                                                                                                                                                    6200                  5506
restricted cash                                                                                                                                                                             206                    268 
accounts receivable net                                                                                                                                   8                       8450                  6925 
inventories                                                                                                                                                         9                       3401                  2600 
deferred tax asset                                                                                                                                            28                       2076                  1820 
prepaid expenses and other current assets                                                                                                     10                       1749                  1684 
total current assets                                                                                                                                                              22082                18803 
noncurrent assets
investments                                                                                                                                                      11                          299                   101 6
property plant and equipment net                                                                                                                  12                       9321                  8534 
goodwill                                                                                                                                                           13                       5926                  4025 
other intangible assets net                                                                                                                              14                   24930                19789 
deferred tax asset                                                                                                                                            28                          507                   1104 
other noncurrent assets                                                                                                                                                              737                    605 
total assets                                                                                                                                                                           63802                5387 6 
liabilities and equity                                                                                                    
current liabilities                                                                                                                    
accounts payable and accrued expenses                                                                                                       15                   13705                12393 
convertible bonds                                                                                                                                            16                   11000                          –
deferred tax liability                                                                                                                                          28                                –                      44 
other current liabilities                                                                                                                                      17                          638                    496 
total current liabilities                                                                                                                                                          25343                12933 
noncurrent liabilities                                                                                                               
convertible bonds                                                                                                                                            16                               –                11000 
deferred tax liability                                                                                                                                          28                       5166                  3521 
other noncurrent liabilities                                                                                                                               19                       1443                  1908 
total liabilities                                                                                                                                                                       31952               29362 
commitments and contingencies                                                                                                                    20                                   
equity
common stock of 5p par value 1000 million shares authorized
and 5625 million shares issued and outstanding 2010 1000 million shares authorized
and 5622 million shares issued and outstanding                                                                                        23                          557                    557 
additional paidin capital                                                                                                                                                        28533               27464 
treasury stock 118 million shares 2010 140 million shares                                                                          23                      2872                2761
accumulated other comprehensive income                                                                                                                                  603                    857 
retained earningsaccumulated deficit                                                                                                                               5029                  1603
total equity                                                                                                                                                                       31850                24514 
total liabilities and equity                                                                                                                                               63802                5387 6 
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 23 2012 and signed on its behalf by 
graham hetherington
chief financial officer
8446 annual report 2011annual report 2011  15032012  1613  page 75 shire plc annual repo 76 shire plc annual report 2011
consolidated statements of income
in millions of us dollars except share and per share data
                                                                                                                                                                                                                2011                           2010                          2009
                                                                                                                                                                            notes                            ’m                            ’m                            ’m
revenues
product sales                                                                                                                                          39502               31282               26937 
royalties                                                                                                                                                    2835                  3281                  2925 
other revenues                                                                                                                                             297                    148                     215 
total revenues                                                                                                                                       42634                34711                3007 7 
costs and expenses                                                                                                                                         
cost of product sales
1
                                                                                                                              5881                  4634                  3880 
research and development
1
                                                                                                                    7707                   6615                  6399 
selling general and administrative
1
                                                                                                           17514                15263                13426 
lossgain on sale of product rights                                                                                      6                            60                    165                     63
reorganization costs                                                                                                             7                          243                    343                    127 
integration and acquisition costs                                                                                           4                          137                      80                    106 
total operating expenses                                                                                                                        31542                2677 0                2387 5 
operating income                                                                                                                                     11092                  7941                  6202 
interest income                                                                                                                                                    19                      24                       19 
interest expense                                                                                                                                               391                  351                   398
other income net                                                                                                                26                          181                       7 9                    607 
total other expenseincome net                                                                                                                191                  248                   228 
income from continuing operations before income taxes and equity
in earningslosses of equity method investees                                                                                      10901                  7693                  6430 
income taxes                                                                                                                       28                      2276                 1827                 1385
equity in earningslosses of equity method investees net of taxes                                                                   25                       14                     07
income from continuing operations net of taxes                                                                                     8650                  5880                  5038 
loss from discontinued operations net of income tax expense of nil in all periods                                              –                          –                    124
net income                                                                                                                                                   8650                  5880                   4914 
add net loss attributable to the non controlling interest in subsidiaries                                                                  –                          –                      02 
net income attributable to shire plc                                                                                                      8650                  5880                   4916 
1 cost of product sales includes amortization of intangible assets relating to favorable manufacturing contracts of 1 7 million for the year to december 31  2011 2010 1 7 million
2009 17 million research and development costs include intangible asset impairment charges of 160 million for the year to december 31 2011 2010 nil 2009 nil
selling general and administrative costs include amortization and impairment charges of intangible assets relating to intellectual property rights acquired of 1650 million
including impairment losses of nil for the year to december 31 2011 2010 1762 million including impairment losses of 427 million 2009 1369 million including
impairment losses of nil 
                                                                                                                                                                            notes                           2011                           2010                          2009
earning per ordinary share—basic
earnings from continuing operations attributable to shire plc shareholders                                             1569¢                 107 7¢                  932¢
loss from discontinued operations attributable to shire plc shareholders                                                         –                          –                   23¢
earnings per ordinary share—basic                                                                                                       1569¢                 107 7¢                  909¢
earnings per ordinary share—diluted                                                                                                            
earnings from continuing operations attributable to shire plc shareholders                                             1509¢                1053¢                   919¢
loss from discontinued operations attributable to shire plc shareholders                                                         –                          –                   22¢
earnings per ordinary share—diluted                                                                                                      1509¢                1053¢                  897¢
weighted average number of shares millions                                                                                                    
basic                                                                                                                                    23                       5511                  5462                  5407 
diluted                                                                                                                                  23                       5954                  5903                  5480 
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
amounts attributable to shire plc                                                                                        
income from continuing operations net of taxes                                                                                       8650                  5880                  5040 
loss from discontinued operations net of taxes                                                                                               –                          –                    124
net income attributable to shire plc                                                                                                           8650                  5880                   4916 
the accompanying notes are an integral part of these consolidated financial statements
8446 annual report 2011annual report 2011  15032012  1613  page 76 shire plc annual report 2011 77
financial statements
c annual report 2011
consolidated statements of changes in equity
in millions of us dollars except share data
shire plc shareholders equity
                                                                                                             common                                                            accumulated                                              non
                                                                                                                stock—           additional                                              other                                      controlling                           
                                                                                  common          number of                paidin             treasury  comprehensive      accumulated            interest in                   total
                                                                                        stock                shares               capital                  stock              income                 deficit        subsidiaries                 equity
                                                                                           ’m                     m’s                    ’m                    ’m                    ’m                    ’m                    ’m                    ’m
as at january 1 2009                                   555            5602         25946           397 2             97 0        10227               03          1327 5 
net incomeloss                                               –                   –                   –                   –                   –            4916               02           4914 
foreign currency translation                               –                   –                   –                   –              352                   –                   –              352 
options exercised                                           01                13                05                   –                   –                   –                   –                06 
sharebased compensation                               –                   –              657                   –                   –                   –                   –              657 
tax benefit associated with exercise
of stock options                                              –                   –              168                   –                   –                   –                   –              168 
shares purchased by the employee 
share ownership trust “esot”                     –                   –                   –                10                 –                   –                   –                10
shares released by esot to satisfy
exercise of stock options                                –                   –                   –              508                   –             369                  –              139 
unrealized holding gain on available
for sale securities net of taxes                       –                   –                   –                   –              161                   –                   –              161 
other than temporary impairment of 
available for sale securities net of taxes         –                   –                   –                   –                08                   –                   –                08 
purchase of shares in jerini ag “jerini”
from non controlling interest                           –                   –                   –                   –                   –                   –               04              04
capital contribution attributable 
to non controlling interest in jerini                   –                   –                   –                   –                   –                   –                03                03 
dividends                                                           –                   –                   –                   –                   –             544                  –             544
as at december 31 2009                             556            5615         2677 6           347 4           1491           6224                  –         19125 
the accompanying notes are an integral part of these consolidated financial statements
dividends per share
during the year to december 31 2009 shire plc paid a dividend of 991 us cents per ordinary share equivalent to 2972 us cents per ads
totaling 544 million
shire plc shareholders equity
                                                                                                                                        common                                                            accumulated                                                      
                                                                                                                                           stock—           additional                                              other                                                      
                                                                                                             common          number of                paidin             treasury  comprehensive      accumulated                   total
                                                                                                                   stock                shares               capital                  stock              income                 deficit                 equity
                                                                                                                      ’m                     m’s                    ’m                    ’m                    ’m                    ’m                    ’m
as at january 1 2010                                                         556            5615         2677 6           347 4           1491           6224         19125 
net income                                                                              –                   –                   –                   –                   –            5880            5880 
foreign currency translation                                                     –                   –                   –                   –             513                  –             513
options exercised                                                                 01                07                20                   –                   –                   –                21 
sharebased compensation                                                    –                   –              622                   –                   –                   –              622 
tax benefit associated with exercise of stock options             –                   –                29                   –                   –                   –                29 
shares issuedpurchased by esot                                       –                   –                17                17                  –                   –                   –
shares released by esot to satisfy exercise 
of stock options                                                                   –                   –                   –              730                   –             639               91 
unrealized holding loss on available for sale securities 
net of taxes                                                                          –                   –                   –                   –             136                  –             136
other than temporary impairment of available for sale
securities net of taxes                                                         –                   –                   –                   –                15                   –                15 
dividends                                                                                 –                   –                   –                   –                   –             620            620
as at december 31 2010                                                   557            5622         27464           2761             857           1603        24514 
the accompanying notes are an integral part of these consolidated financial statements
dividends per share
during the year to december 31 2010 shire plc declared and paid dividends of 1150 us cents per ordinary share equivalent to 3450 us cents
per ads totaling 620 million
8446 annual report 2011annual report 2011  15032012  1613  page 77 shire plc annual repo 78 shire plc annual report 2011
consolidated statements of changes in equity continued
in millions of us dollars except share data
shire plc shareholders equity
                                                                                                                                       common                                                          accumulated           retained                           
                                                                                                                                          stock—         additional                                             other           earnings                           
                                                                                                            common         number of               paidin            treasury comprehensive    accumulated                   total
                                                                                                                   stock               shares              capital                 stock             income                deficit               equity
                                                                                                                      ’m                     m’s                    ’m                    ’m                    ’m                    ’m                    ’m
as at january 1 2011                                                         557            5622         27464           2761             857           1603        24514
net income                                                                              –                   –                   –                   –                   –            8650            8650
foreign currency translation                                                     –                   –                   –                   –             240                  –             240
options exercised                                                                    –                03                07                   –                   –                   –                07
sharebased compensation                                                    –                   –              768                   –                   –                   –              768 
t ax benefit associated with exercise of stock options              –                   –              294                   –                   –                   –              294
shares purchased by esot                                                     –                   –                   –           1518                  –                   –           1518
shares released by esot to satisfy exercise 
of stock options                                                                   –                   –                   –            1407                   –           1280             127
unrealized holding gain on available for sale 
securities net of taxes                                                         –                   –                   –                   –              162                   –              162
realized gain on divestment of available for sale
securities net of taxes                                                         –                   –                   –                   –             200                  –             200
other than temporary impairment 
of available for sale securities                                               –                   –                   –                   –                24                   –                24
dividends                                                                                 –                   –                   –                   –                   –             738            738
as at december 31 2011                                                 557            5625         28533           2872             603            5029         31850
the accompanying notes are an integral part of these consolidated financial statements
dividends per share
during the year to december 31 2011 shire plc declared and paid dividends of 1333 us cents per ordinary share equivalent to 3999 us cents
per ads totaling 738 million
8446 annual report 2011annual report 2011  15032012  1613  page 78 shire plc annual report 2011 79
financial statements
c annual report 2011
consolidated statements of comprehensive income
in millions of us dollars
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
net income                                                                                                                                                8650                  5880                   4914 
other comprehensive income                                                                                                
foreign currency translation adjustments                                                                                                240                   513                   352 
unrealized holding gainloss on available for sale securities
net of taxes of 02 million nil and 26 million                                                                                 162                    136                    161 
other than temporary impairment of available for sale securities 
net of taxes of nil in all periods                                                                                                            24                       15                      08 
realized gain on divestment of available for sale securities 
net of taxes of 35 million nil and nil                                                                                            200                         –                          –
comprehensive income                                                                                                                             8396                  5246                  5435 
add net loss attributable to the non controlling interest in subsidiaries                                                             –                          –                      02 
comprehensive income attributable to shire plc                                                                                        8396                  5246                  5437 
the components of accumulated other comprehensive income as at december 31 2011 and 2010 are as follows
                                                                                                                                                                                                  december 31            december 31
                                                                                                                                                                                                                 2011                           2010
                                                                                                                                                                                                                  ’m                            ’m
foreign currency translation adjustments                                                                                                     614                    854
unrealized holding lossgain on available for sale securities net of taxes                                                    11                     03 
accumulated other comprehensive income                                                                                                 603                    857 
the accompanying notes are an integral part of these consolidated financial statements
8446 annual report 2011annual report 2011  15032012  1613  page 79 80 shire plc annual report 2011 shire plc annual repo
consolidated statements of cash ﬂows
in millions of us dollars
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
cash flows from operating activities 
net income                                                                                                                                                8650                  5880                   4914 
adjustments to reconcile net income to net cash provided by operating activities                                                                        
loss from discontinued operations                                                                                                                –                          –                    124
depreciation and amortization                                                                                                               2948                  2555                  2502
sharebased compensation                                                                                                                     757                    622                    657 
impairment of intangible assets                                                                                                                160                    427                          –
gain on sale of noncurrent investments                                                                                                 235                   111                   552
lossgain on sale of product rights                                                                                                          60                    165                     63
other                                                                                                                                                        161                      91                    146 
movement in deferred taxes                                                                                                                        145                   150                   988
equity in earningslosses of equity method investees                                                                                 25                     14                     07 
changes in operating assets and liabilities 
increase in accounts receivable                                                                                                             1340                 1144                 2123
increase in sales deduction accrual                                                                                                          805                  2226                  1347 
increase in inventory                                                                                                                                644                  582                   387
increasedecrease in prepayments and other assets                                                                            368                  403                   309 
decreaseincrease in accounts payable and other liabilities                                                                   100                   259                    386 
returns on investment from joint venture                                                                                                       52                      58                      49 
cash flows used in discontinued operations                                                                                                     –                          –                     59
net cash provided by operating activities
a
                                                                                             10736                  9549                  6269 
cash flows from investing activities          
movements in restricted cash                                                                                                                        62                      63                     39
purchases of subsidiary undertakings net of cash acquired                                                                    7250                4496                   833
payments on foreign exchange contracts related to movetis nv “movetis’ acquisition                                    –                   334                         –
purchases of noncurrent investments                                                                                                        107                    29                     09
purchases of property plant and equipment “ppe”                                                                              1943                3266                2544
purchases of intangible assets                                                                                                                      52                    27                     7 0
proceeds from disposal of noncurrent investments and ppe                                                                 1060                      23                    202 
proceedsdeposits received on sales of product rights                                                                               120                      20                          –
proceeds from disposal of subsidiary undertakings                                                                                          –                          –                      67 
returns of equity investments and proceeds from shortterm investments                                                   18                       7 2                      02 
net cash used in investing activities
b
                                                                                                       8092                 797 4                3224
8446 annual report 2011annual report 2011  15032012  1613  page 80 c annual report 2011 shire plc annual report 2011 81
financial statements
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
cash flows from financing activities 
proceeds from drawing of revolving credit facility “rcf”                                                                            300                          –                          –
repayment of rcf                                                                                                                                     300                         –                          –
repayment of debt acquired with abh                                                                                                       131                         –                          –
payment under building finance obligation                                                                                                    15                    24                     47
extinguishment of building finance obligation                                                                                                    –                   431                         –
excess tax benefit of stockbased compensation                                                                                        314                      65                    168 
proceeds from exercise of options                                                                                                               134                     112                    146 
payment of facility arrangement costs                                                                                                               –                     80                         –
payment of dividend                                                                                                                                   738                  620                   544
payments to acquire shares by esot                                                                                                       1518                     17                     10
net cash used in financing activities
c
                                                                                                       1954                  995                   287
effect of foreign exchange rate changes on cash and cash equivalents
d
                                                     04                     63                     49 
net increase in cash and cash equivalents
abcd                                                                                                                              
694                     517                  2807 
cash and cash equivalents at beginning of period                                                                                    5506                  4989                  2182 
cash and cash equivalents at end of period                                                                                              6200                  5506                  4989 
supplemental information associated with continuing operations
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
interest paid                                                                                                                                                333                  259                   319
income taxes paid                                                                                                                                     2861                3292                2232
noncash investing and financing activities                                                                            
equity in vertex pharmaceuticals inc “vertex” received as part consideration for disposal 
of noncurrent investment in virochem pharma inc “virochem”                                                               –                      91                    508 
building financing obligation                                                                                                                              –                          –                       7 1 
the accompanying notes are an integral part of these consolidated financial statements
8446 annual report 2011annual report 2011  15032012  1613  page 81 shire plc annual repo 82 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
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 meeting the needs of the specialist physician 
the company has grown through acquisition completing a series 
of major mergers or acquisitions 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 enhance shareholder value
shire’s strategic goal is to become the world’s leading specialty
biopharmaceutical company that focuses on meeting the needs of the
specialist physician shire focuses its business on attention deficit and
hyperactivity disorder “adhd” gastrointestinal “gi” diseases human
genetic therapies “hgt” and regenerative medicine “rm” as well as
opportunities in other therapeutic areas to the extent they arise through
acquisitions shire’s inlicensing and acquisition efforts are focused 
on products in specialist markets with strong intellectual property
protection 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
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 inter company accounts and
transactions non controlling interests in the equity and earnings or
losses of a consolidated subsidiary are reflected in “non controlling
interest in subsidiaries” in the company’s consolidated balance sheet
and consolidated statements of income non controlling interest
adjusts the company’s consolidated results of operations to present
the net income or loss attributable to the company exclusive of the
earnings or losses attributable to the non controlling interest
b use of estimates in consolidated financial statements
the preparation of consolidated financial statements in conformity 
with accounting principles generally accepted in the us “us gaap”
and securities and exchange commission “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 the valuation of equity investments
sales deductions income taxes including provisions for uncertain 
tax positions and the realization of deferred tax assets provisions 
for litigation and legal proceedings and contingent consideration
receivable from product divestments 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
� 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 upon shipment to
customers or at the time of delivery to the customer depending on the
terms of sale 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 company monitors and
tracks the amount of sales deductions based on historical experience
to estimate the 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 outlicensing
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 outlicensing
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 nonrefundable 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 noncreditable 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
8446 annual report 2011annual report 2011  15032012  1613  page 82 shire plc annual report 2011 83
financial statements
c annual report 2011
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 up front 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 straight
line 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 1225 million 933 million and 813 million for
the years to december 31 2011 2010 and 2009 respectively and were
included within selling general and administrative “sga” expenses
i research and development “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
8446 annual report 2011annual report 2011  15032012  1613  page 83 shire plc annual repo 84 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
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
continuing operations before income taxes equity in earningslosses
of equity method investees and discontinued operations 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 lossesgains included in
consolidated net income in the years to december 31 2011 2010 
and 2009 amounted to a loss of 21 million a gain of 17 million 
and a gain of 23 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 divided by the weighted average number of
ordinary share equivalents outstanding during the period adjusted for
the dilutive effect of all potential ordinary shares 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 sharebased
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 sharebased 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 sharebased 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 sharebased 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 29
p cash and cash equivalents
cash and cash equivalents are defined as shortterm highly liquid
investments with original maturities of 90 days or less 
q financial instruments—derivatives 
the company uses derivative financial instruments to manage 
its exposure to foreign exchange risk associated with third party
transactions and inter company 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 assetsliabilities 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
8446 annual report 2011annual report 2011  15032012  1613  page 84 shire plc annual report 2011 85
financial statements
c annual report 2011
2 summary of significant accounting policies
continued
r inventories
inventories are stated at the lower of cost including manufacturing
overheads where appropriate 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 is classified as heldforsale when amongst other things the
company has committed to a plan of disposition the asset 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
assets acquired in a business combination that will be sold rather than
held and used are classified as heldfor sale at the date of acquisition
when it is probable that the company will dispose of the assets within
one year newly acquired assets heldforsale are carried at their fair
value less cost to sell at the acquisition date 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 equity method investees in the consolidated balance sheet under
investments and its share of the investees’ earnings or losses together
with other than temporary impairments in value under equity in
earningslosses 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 other than
temporary impairment in value for public companies that have readily
determinable fair values the company classifies its equity investments
as available for sale 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 available
for sale securities judged to be other than temporary are included in
other incomeexpense net see note 26 the cost of securities sold is
based on the specific identification method interest and dividends on
securities classified as available for sale are included as interest income
u property plant and equipment
property plant and equipment is shown at cost reduced for impairment
losses less accumulated depreciation the cost of significant assets
includes capitalized interest incurred during the construction period
depreciation is provided 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 non controlling 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 three reporting units being sp  hgt
and rm events or changes in circumstances which could trigger an
impairment review include significant underperformance of a 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
goodwill is reviewed for impairment by comparing the carrying value 
of each 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 
the company has determined that there are no impairment losses 
in respect of goodwill for any of the reporting periods covered 
by these consolidated financial statements
8446 annual report 2011annual report 2011  15032012  1613  page 85 shire plc annual repo 86 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
2 summary of significant accounting policies
continued
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
cost and amortized over the estimated useful life of the related product
which ranges from 1 to 20 years weighted average 165 years iprd
acquired through a business combination which completed subsequent
to january 1  2009 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 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
revenue recognition in multiple deliverable revenue arrangements 
on january 1 2011 the company adopted new guidance issued by the
financial accounting standard board “fasb” on revenue recognition
in multiple deliverable revenue arrangements this amends the existing
guidance on allocating consideration received between the elements
in a multiple deliverable arrangement and establishes a selling price
hierarchy for determining the selling price of a deliverable the selling
price used for each deliverable 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 it replaces the term “fair value” in the revenue
allocation with “selling price” to clarify that the allocation of revenue is
based on entity specific assumptions rather than the assumptions of a
market place participant the guidance eliminates the residual method
of allocation and requires that arrangement consideration be allocated
using the relative selling price method the guidance also significantly
expands the disclosures related to a vendor’s multipledeliverable
revenue arrangements the guidance has been adopted prospectively
from january 1 2011 for new arrangements or existing arrangements
which have been materially modified subsequent to the date of
adoption the adoption of the guidance did not impact the company’s
consolidated financial position results of operations or cash flows
effect of denominating the exercise price of a sharebased
payment award in the currency of the market in which the
underlying equity security trades
on january 1 2011 the company adopted new guidance issued 
by the fasb on the effect of denominating the exercise price of 
a sharebased payment award in the currency of the market in which 
the underlying equity security trades this guidance clarifies that an
employee sharebased payment award with an exercise price
denominated in the currency of a market in which a substantial portion
of the entity’s equity securities trades should not be considered to
contain a condition that is not a market performance or service
condition therefore an entity would not classify such an award as a
liability if it otherwise qualifies as equity the company has historically
accounted for sharebased payment awards in a manner consistent
with the guidance and therefore the adoption of this guidance did 
not impact the company’s consolidated financial position results of
operations or cash flows
milestone method of revenue recognition 
on january 1 2011 the company adopted new guidance issued 
by the fasb on defining a milestone and determining when it may 
be appropriate to apply the milestone method of revenue recognition
for research or development transactions this guidance clarifies that 
i consideration that is contingent on achievement of a milestone 
in its entirety may be recognized as revenue in the period in which 
the milestone is achieved only if the milestone is judged to meet 
certain criteria to be considered substantive ii milestones should 
be considered substantive in their entirety and may not be bifurcated
iii an arrangement may contain both substantive and nonsubstantive
milestones and iv each milestone should be evaluated individually 
to determine if it is substantive the adoption of the guidance did 
not impact the company’s consolidated financial position results 
of operations or cash flows
fees paid to federal government by pharmaceutical
manufacturers 
on january 1 2011 the company adopted new guidance issued by 
the fasb on the accounting for the annual fee paid by pharmaceutical
manufacturers to the us treasury in accordance with the patient
protection and affordable care act as amended by the healthcare and
education reconciliation act for each calendar year beginning on or after
january 1  2011  a portion of the fee will be allocated to individual entities
on the basis of the amount of their branded prescription drug sales to
certain us government programs for the preceding year as a percentage
of the industry’ s branded prescription drug sales for the same period 
to these same programs this guidance specifies that the liability for the
fee should be estimated and recorded in full upon the first qualifying sale
with a corresponding deferred cost that is amortized to expense using
a straightline method of allocation unless another method better allocates
the fee over the calendar year that it is payable the adoption of the
guidance did not have a material impact on the company’ s consolidated
financial position results of operations or cash flows
8446 annual report 2011annual report 2011  15032012  1613  page 86 shire plc annual report 2011 87
financial statements
c annual report 2011
2 summary of significant accounting policies
continued
disclosure of supplementary proforma information
for business combinations 
on january 1 2011 the company adopted new guidance issued 
by the fasb which clarifies the acquisition date that should be used 
for reporting proforma financial information disclosures in a business
combination when comparative financial statements are presented
the guidance specifies that the entity should disclose revenue and
earnings of the combined entity as though the business combination
that occurred during the current year had occurred as of the beginning
of the comparable prior annual reporting period the guidance 
also improves the usefulness of the proforma revenue and earnings
disclosures by requiring a description of the nature and amount 
of material nonrecurring proforma adjustments that are directly
attributable to the business combination the guidance is effective
prospectively for business combinations for which the acquisition date
is on or after january 1 2011 the company has historically presented
proforma business combination disclosures in accordance with 
the guidance and therefore the adoption of guidance did not impact
the company’s disclosures on business combinations
to be adopted in future periods 
amendments to achieve common fair value measurement
and disclosure requirements in us gaap and international
financial reporting standards “ifrs” 
in may 2011 the fasb issued guidance on fair value measurement 
and disclosure which both amends existing requirements and
improves the comparability of fair value measurement and disclosure
between us gaap and ifrs some of the amendments clarify the
application of existing fair value measurement requirements and 
other amendments change a particular principle or requirement for
measuring fair value or for disclosing information about fair value
measurements the guidance will be effective prospectively for interim
and annual periods beginning after december 15 2011 early adoption
is not permitted the company does not expect the adoption of this
guidance to have a material effect on its consolidated financial position
results of operations and cash flows 
presentation of comprehensive income
in june 2011 the fasb issued guidance on the presentation of
comprehensive income which revises the manner in which entities
present comprehensive income in their financial statements the
guidance requires entities to report components of comprehensive
income in either i a single continuous statement of comprehensive
income or ii two separate but consecutive statements the guidance
does not change those items which must be reported in other
comprehensive income and does not change the definition of net
income or the calculation of earnings per share 
in december 2011 the fasb amended the guidance issued in june
2011 on the presentation of comprehensive income the amendments
deferred the requirements to present on the face of the financial
statements the effects of reclassifications out of accumulated other
comprehensive income on the components of net income and other
comprehensive income for all periods presented
the guidance will be effective retrospectively for interim and annual
periods beginning after december 15 2011 early adoption is
permitted the company does not expect the adoption of this
guidance to have a material effect on its consolidated financial 
position results of operations and cash flows
goodwill impairment testing
in september 2011 the fasb issued guidance on the testing of
goodwill for impairment the guidance permits an entity to first assess
the 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 a reporting unit 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 a reporting
unit is less than its carrying amount then performing the twostep
impairment test is unnecessary the morelikelythannot threshold 
is defined as having a likelihood of more than 50 an entity also has
the option to bypass the qualitative assessment for any reporting unit 
in any period and proceed directly to performing the first step of the
twostep goodwill impairment test and may resume performing the
qualitative assessment in any subsequent periods the guidance will 
be effective for interim and annual goodwill impairment tests performed
for fiscal years beginning after december 15 2011 early adoption 
is permitted the company does not expect the adoption of this
guidance to have a material effect on its consolidated financial position
results of operations and cash flows
3 critical accounting estimates
the preparation of consolidated financial statements in conformity 
with accounting principles generally accepted in the us “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 actual results could differ
potentially significantly from amounts recorded based on the
company’s estimates and assumptions estimates and assumptions
are primarily made in relation to the valuation of intangible assets 
the valuation of equity investments sales deductions income taxes
provisions for litigation and the measurement of contingent
consideration receivable from product divestments
i valuation of intangible assets
in accordance with us gaap the company classifies intangible 
assets into three categories i finite lived intangible assets which are
amortized over their estimated useful lives ii intangible assets with
indefinite lives which are not subject to amortization and iii goodwill 
at december 31 2011 the carrying value of the company’s finite 
lived intangible assets was 23732 million 2010 18392 million
2009 17846 million the carrying value of the company’s indefinite
lived intangible assets was 1198 million 2010 1397 million 
2009 61 million and the carrying value of the company’s goodwill
was 5926 million 2010 4025 million 2009 3847 million 
the company’s indefinite lived intangible assets relate solely to 
iprd assets acquired through business combinations which are
either subject to amortization following completion or impairment 
on abandonment of the relevant development project
8446 annual report 2011annual report 2011  15032012  1613  page 87 88 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
shire plc annual repo
3 critical accounting estimates continued
a initial valuation of intangible assets acquired through business
combinations
the company accounts for business combinations primarily the
acquisitions of tkt in 2005 new river in 2007  jerini in 2008 movetis
in 2010 and abh in 2011 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 estimated fair
values any excess of the purchase price over the estimated fair values
of the net assets 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 judgment 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 2011 the carrying value of the company’s finite 
lived intangible assets was 23732 million 2010 18392 million
2009 17846 million primarily representing the following products
dermagraft product technology 6903 million firazyr 
2220 million replagal 2286 million resolor 2702
million and vyvanse 8240 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
the forecast of future cash flows requires various assumptions 
to be made including
i revenue that is reasonably likely to result from the sale of products
including the estimated number of units to be sold estimated
selling prices estimated market penetration and estimated market
share and yearoveryear growth rates over the product lifecycles
ii royalty or license fees saved by owning the intellectual property
associated with the products
iii cost of sales for the products using historical data industry data 
or other sources of market data
iv sales and marketing expense using historical data industry data 
or other sources of market data
v general and administrative expenses
vi rd expenses
vii the estimated life of the products and
viii the tax amortization benefit available to a market participant
purchasing the relevant assets outside of a business combination
the 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 assets will occur as
projected for these reasons among others the actual cash flows 
may vary from forecasts of future cash flows 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 inter
relating 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 or asset acquisitions which at the date of 
the relevant acquisition have not reached technological feasibility or
which have no alternative future use the company considers that 
a technology or development project has an alternative future use 
if it is probable that the company will use the asset in its current
incomplete state as it existed at the acquisition date the asset will 
be used in another development project that has not yet commenced
and future economic benefit is expected from that use the company
has determined that historically all such acquired development projects
did not have an alternative future use
prior to january 1 2009 the fair value ascribed to such technologies or
development projects was immediately expensed to the consolidated
statements of income in the year of acquisition the company
recorded iprd expense on the following significant business
combinations that closed prior to january 1 2009 128 million 
on acquisition of jerini in 2008 1866 million for new river in 2007
and 815 million for tkt in 2005 in 2008 the company also recorded
iprd expense of 135 million in respect of the asset acquisition 
of metazym from zymenex additionally nonrefundable fees paid 
on the inlicensing of products that have not yet received regulatory
approval and have no alternative future use have been expensed 
and presented within rd in the consolidated statements of income
for those business combinations which closed subsequent to january
1 2009 iprd has been recorded as an indefinite lived intangible
asset at the time of initial acquisition the company recorded indefinite
lived iprd assets of 139 million on acquisition of movetis in 2010
and 6 million on acquisition of equasym from ucb in 2009
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 to be generated by the
iprd projects after the deduction of contributory asset charges for
other assets employed in these projects this method incorporates an
evaluation of the risks associated with the development project which
include applying an appropriate 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 
8446 annual report 2011annual report 2011  15032012  1613  page 88 c annual report 2011 shire plc annual report 2011 89
financial statements
3 critical accounting estimates continued
the forecast of future cash flows required the following assumptions 
to be made
i revenue that is likely to result from specific iprd projects
including the likelihood of approval of the product estimated
number of units to be sold estimated selling prices estimated
market penetration estimated market share and yearoveryear
growth rates over the product lifecycles
ii cost of sales related to the potential products using historical 
data industry data or other sources of market data
iii sales and marketing expense using historical data industry 
data or other market data
iv general and administrative expenses
v rd expenses to complete the development of the acquired
products including the likelihood of the iprd project progressing
to the next development stage and
vi the tax amortization benefit available to a market participant
purchasing the relevant assets outside of a business combination
the major risks and uncertainties associated with the timely completion
of the acquired iprd projects consist of the ability to confirm the
safety and efficacy of the technology based on the data from ongoing
clinical trials and obtaining the necessary regulatory approvals 
the use of different estimates and assumptions to those used by 
the company could result in a materially different valuation of 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 valuation of iprd has been based on information that existed 
at the time of the acquisition of the relevant development project 
and utilized expectations and assumptions that i have been deemed
reasonable by shire’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 certain of the 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 relevant project if such
circumstances occur the company’s future operating results could 
be materially adversely impacted
b 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 inter alia the following factors
� the expected use of the finite lived intangible asset by the company
� any legal regulatory or contractual provisions that may limit 
or extend the useful life
� the effects of demand and competition including the launch 
of generic products and 
� 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 operating results
the company reviews its finite lived intangible assets for impairment
using a “twostep” approach whenever events or circumstances
suggest that the carrying value of these 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
� changes to a product’s commercialization strategy
� the loss of patent protection regulatory exclusivity or challenge 
or circumvention by competitors of the company’s regulatory
exclusivity patents
� the development and marketing of competitive products 
including generic entrants into the market place
� changes to the product labels or other regulatory intervention
� sustained government pressure on prices and specifically
competitive pricing 
� the occurrence of significant adverse events in respect to the
company’s products
� a significant deterioration in a product’s operating performance
compared to expectations and
� 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 could adversely
affect the company’s estimates of the future net cash flows generated
by its finite lived intangible assets the company has not recognized
any impairment losses in relation to finite lived intangible assets in the
year to december 31 2011 2010 427 million which related to the
daytrana intangible asset as a result of divestment to noven 2009
nil 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
using a “onestep” approach which compares 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 
8446 annual report 2011annual report 2011  15032012  1613  page 89 90 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
shire plc annual repo
3 critical accounting estimates continued
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 relevant project 
the occurrence of any such events or circumstances could adversely
affect the company’s estimates of the future net cash flows generated
by and the fair value of its indefinite lived intangible assets
after the identification of such events circumstances and the resultant
impairment reviews the company recognized impairment losses of
160 million in the year to december 31 2011 2010 and 2009 nil 
in respect of certain indefinite lived intangible assets 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
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 goodwill is reviewed for
impairment at the reporting unit level which for the company is at 
the same level as its operating segments sp  hgt and subsequent 
to the acquisition of abh in 2011 rm 
at december 31 2011 goodwill of 2435 million december 31 2010
2459 million is held in the sp segment 1521 million december 31
2010 1566 million in the hgt segment and 197 0 million
december 31 2010 nil is held in the rm segment
the company reviews goodwill for impairment using a “twostep”
approach step one requires a comparison of the fair value of the 
each of the company’s reporting units with its carrying value including
goodwill if the carrying value of each reporting unit exceeds its
estimated fair value goodwill included within that reporting unit is
deemed not to be recoverable in which case step two is performed
under step two if the carrying amount of a reporting unit’s goodwill
exceeds its fair value an impairment loss is recognized in an amount
equal to that excess
the company determines the fair value of its reporting units 
and if required in any step two the fair value of its goodwill through 
a present value technique principally using the income approach the
determination of fair value of the company’s reporting units requires the
use of significant judgment and assumptions which include inter alia
the estimation of future cash flows and an appropriate discount rate to
determine the fair value of each reporting unit
the company’s annual goodwill impairment review performed as of
october 1 2011 2010 and 2009 indicated that the estimated fair value
of each of the company’s reporting units exceeded their carrying
values goodwill was therefore not considered impaired however
dependent on future events or circumstances the company’s
operating results could be materially and adversely affected by any
future impairment losses relating to its goodwill
ii valuation of equity investments 
at december 31 2011 the carrying value of the company’s
investments in certain public and private pharmaceutical 
and biotechnology companies amounted to 299 million 
2010 1016 million 2009 1057 million the carrying values 
of these investments are periodically reviewed for other than 
temporary impairment at least quarterly or more frequently 
if certain events or circumstances suggest that the carrying value 
of an investment exceeds its fair value 
indicators of other than temporary impairment which are considered 
by the company include
a the market value of a quoted investment being below the cost 
of the investment
b adverse news on an investee’s progress in scientific technology
development of compounds and
c recent stock issuances at a price below the company’s 
investment price
if the fair value appears to be below the cost of the investment the
company considers all available evidence in assessing whether there 
is an other than temporary impairment this evidence would include
but is not limited to
� the length of time andor the extent to which the market value 
of the investee is less than the cost of the investment
� the level of progress in the investee’s scientific
technologydevelopment of compounds
� ongoing activity in collaborations with the investee
� whether or not other substantial investeespecific adverse 
events have occurred which may cause a decline in value
� analysis and valuation of comparable companies and
� the overall financial condition and nearterm prospects of the
investee including its ability to obtain financing to progress
development of its compounds
in instances when this review indicates that there is an other than
temporary impairment of the company’s investment in private
companies the company records an other than temporary impairment
loss to record the investment at its then current fair value for the
company’s investments in public companies which are accounted 
for as available for sale securities if these investments are deemed 
to be other than temporarily impaired any unrealized holding loss 
is reclassified from other comprehensive income by recording 
an other than temporary impairment charge in the consolidated
statements of income 
during 2011 shire recorded impairment charges for its noncurrent
investments in private companies of 13 million 2010 and 2009 nil
during the year to december 31 2011 the company recorded other
than temporary impairment charges of 24 million for its available for
sale securities 2010 15 million 2009 08 million at december 31
2011 the company has a net unrealized holding loss of 11 million 
net of taxes 2010 a gain of 03 million net
the determination of the fair value of private company investments 
and the determination of whether an unrealized holding loss on a
publicly quoted investment is other than temporary requires significant
management judgment any future events or circumstances which
could lead to the recognition of other than temporary impairment
charges could have a material adverse impact on the company’s
financial condition and results of operations
8446 annual report 2011annual report 2011  15032012  1613  page 90 c annual report 2011 shire plc annual report 2011 91
financial statements
3 critical accounting estimates continued
iii sales deductions 
sales deductions consist of statutory rebates to state medicaid 
and other government agencies contractual rebates with health
maintenance organizations “hmos” product returns sales discounts
including trade discounts and distribution service fees wholesaler
chargebacks and allowances for coupon sampling programs these
deductions are recorded as reductions to revenue in the same period
as the related sales with estimates of future utilization 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 prompt payment 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 rebates to state medicaid agencies and contractual rebates
to managed care organizations “mco” 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
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 maintains reserves for amounts payable under these
programs relating to sold products
the amount of the reserve 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 such as how shipments
of authorized generic adderall xr to teva and impax should 
be included in the medicaid rebate calculation pursuant to medicaid
rebate legislation
shire’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 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 with
the exception of the estimation of the medicaid unit rebate amount
“ura” for adderall xr for the period prior to october 1 2010 
see below 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
there are potentially different interpretations as to how shipments
of authorized generic adderall xr to teva and impax should be
included in the medicaid rebate calculation since authorized generic
launch in 2009 the company has recorded its accrual for medicaid
rebates based on its best estimate of the rebate payable consistent
with the company’s interpretation of the medicaid rebate legislation
shire believes that its interpretation of the medicaid rebate legislation 
is reasonable and correct in addition from october 1 2010 provisions
of the 2010 affordable care act provide further clarity in a manner
consistent with the company’s interpretation as to how shipments of
authorized generics from that date should be included in the medicaid
rebate calculation 
the cms could disagree with shire’s interpretation of the medicaid
rebate legislation for shipments of authorized generic products prior 
to october 1 2010 cms could require shire to apply an alternative
interpretation of the medicaid rebate legislation and request that shire
pays up to 212 million above the recorded liability however shire
believes it has a strong legal basis supporting its interpretation of the
medicaid rebate legislation and that there would be a strong basis to
limit any additional payment to a level approximating the full unrebated
cost to the states of adderall xr equivalent to approximately 
134 million above the recorded liability and to initiate litigation to
recover any amount paid in excess of the recorded liability the result 
of any such litigation cannot be predicted 
any future change in the company’s best estimate of the adderall
xr medicaid rebate liability for the period prior to october 1 2010 
could significantly decrease reported adderall xr net product sales
and impact the company’s financial condition and results of operations
in the period in which any such change of estimate were to occur
aggregate accruals for medicaid and mco rebates at december 31
2011 2010 and 2009 were  6126 million 5499 million and 
3416 million or 16 18 and 13 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 possession of shire c under sales terms that allow 
for unconditional return guaranteed sales or d following product
recalls or product withdrawals returns are generally accepted up 
to one year after expiration date of the relevant product the company
typically refunds the agreed proportion of the sales price by the
issuance of a credit rather than cash refund or exchanges from
inventory and the returned product is destroyed
shire estimates the proportion of recorded revenue that will result
in a return by considering relevant factors including
� past product returns activity
� the duration of time taken for products to be returned
� the estimated level of inventory in the distribution channel
� product recalls and discontinuances
� the shelf life of products
� the launch of new drugs or new formulations and
� the loss of patent protection or new competition
shire’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
8446 annual report 2011annual report 2011  15032012  1613  page 91 92 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
shire plc annual repo
3 critical accounting estimates continued
returns reserves for new products generally require a higher level 
of estimation than estimates for established products 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 third party 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 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 2011 2010 and 2009 provisions for product returns
were 888 million 698 million and 627 million or 2 2 and 2
respectively of net product sales historically actual returns have not
varied significantly from the reserves provided
iv 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
shire operates in numerous countries where its income tax returns 
are subject to audit and adjustment by local tax authorities as shire
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 shire develops its cumulative probability assessment to
measure uncertain tax positions using internal expertise experience
and judgment together with the assistance from professional advisors
original estimates are refined as additional information becomes
known for example in the year to december 31 2011 the company
released certain provisions for uncertain tax positions totaling 
150 million primarily following the conclusion of prior year audits
these releases were partially offset by the recognition of additional
provisions for uncertain tax positions of 196 million in relation to
ongoing compliance management for current and prior years in the
year to december 31 2010 the company recognized additional
provisions for uncertain tax positions in relation to ongoing compliance
management for prior years of 304 million which were partially offset
by a release in provisions for uncertain tax positions of 114 million
primarily following conclusion of ongoing audits in the year to
december 31 2009 the company recognized additional interest
expense of 213 million on its provision for uncertain tax positions
following the receipt of new information on the amount of interest 
that may be payable upon settlement of the relevant tax position 
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 we 
do not believe it 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 2011 the company recognized a liability of 
2655 million for total unrecognized tax benefits 2010 2908 million
and had accrued 1145 million 2010 1105 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
the company has significant deferred tax assets due to various tax
attributes including net operating losses “nols” tax credits from
research and development investment tax credits and alternative
minimum tax principally in the republic of ireland the us belgium
germany and the uk at december 31 2011 the company had
deferred tax liabilities of 714 million 2010 433 million 2009 
448 million and gross deferred tax assets of 667 million 2010 
569 million 2009 515 million against which the company had
recorded valuation allowances of 212 million 2010 200 million
2009 149 million 
the realization of these assets is not assured and is dependent 
on the generation of sufficient taxable income in future periods
management is required to exercise judgment in determining whether 
it is more likely than not that it would realize these deferred tax assets
based upon estimates of future taxable income and the availability of
prudent and feasible taxplanning strategies in the various jurisdictions
in which these nols and other tax attributes exist where there 
is an expectation that on the balance of probabilities there will not 
be sufficient taxable profits to utilize these tax attributes a valuation
allowance is held against these deferred tax assets 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
8446 annual report 2011annual report 2011  15032012  1613  page 92 c annual report 2011 shire plc annual report 2011 93
financial statements
3 critical accounting estimates continued
v litigation and legal proceedings
the company has a number of lawsuits pending that relate to
intellectual property infringement claims and in september 2009 the
company received a subpoena from the us department of health and
human services office of the inspector general seeking production
of documents related to the sales and marketing of adderall xr
daytrana and vyvanse see note 20 “commitments and
contingencies” to the consolidated financial statements for further
details shire records a loss contingency provision for probable losses
when management is able to reasonably estimate the loss where 
the estimated loss lies within a range management records a loss
contingency provision based on its best estimate of the probable loss
where no particular amount within that range is a better estimate than
any other amount the minimum amount is recorded these estimates
are often developed substantially earlier than the ultimate loss is
known so estimates are refined each accounting period as additional
information becomes known best estimates are reviewed quarterly
and estimates are changed when expectations are revised any
outcome upon settlement that deviates from shire’s best estimate may
result in an additional or lesser expense in a future accounting period
which could materially impact the company’s financial condition and
results of operations 
vi contingent consideration receivable from product divestments
consideration receivable by the company on the divestment of 
product rights typically includes up front 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
at december 31 2011 the company has contingent consideration
assets of 37 8 million 2010 610 million 2009 nil related to the
divestment of daytrana to noven in october 2010 the fair value 
of the contingent consideration receivable has been estimated using
the income approach using a discounted cash flow method this
discounted cash flow approach uses significant unobservable level 3
inputs as defined in us gaap including forecast future relevant sales
of the divested product the number of years over which such sales 
will be generated the relevant contractual royalty rates associated with
such sales an appropriate discount rate to be applied in calculating 
the present value of forecast future cash inflows and assumed
weightings applied to differing revenue scenarios used to derive a
probability weighted fair value significant judgment is employed by 
the company in developing these estimates and assumptions both 
at the date of divestment and in subsequent periods 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 
4 business combinations 
acquisition of abh
on may 17  2011 the company announced that it had entered into 
an agreement and plan of merger the “agreement” to acquire 100
of the outstanding shares and other equity instruments of abh on
june 28 2011 in accordance with the terms of the agreement shire
completed its acquisition of abh the fair value of cash consideration
paid by the company is 7396 million the purchase price was funded
by a combination of shire’s existing cash resources and 300 million
drawn down on shire’s revolving credit facility 
the acquisition of abh adds the dermagraft product a bio
engineered skin substitute to shire’s portfolio dermagraft is
marketed in the us for the treatment of dfu greater than six weeks 
in duration and brings future growth prospects in other territories and
indications the acquisition combines abh’s expertise and commercial
capability in regenerative medicine with the company’s strengths and
expertise in human cell biological manufacturing
the acquisition of abh has been accounted for as a purchase
business combination the assets acquired and the liabilities assumed
from abh have been recorded at their preliminary fair values at the
date of acquisition being june 28 2011 the company’s consolidated
financial statements and results of operations include the results 
of abh from june 28 2011 in the year to december 31 2011 the
company included revenues of 1053 million 2010 nil 2009 nil
and pre tax losses of 153 million 2010 nil 2009 nil after
intangible asset amortization of 200 million 2010 nil 2009 nil 
for abh within its consolidated statements of income
8446 annual report 2011annual report 2011  15032012  1613  page 93 94 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
shire plc annual repo
4 business combinations continued
the company’s preliminary allocation of the purchase price to the assets acquired and liabilities assumed is outlined below
                                                                                                                                                                                                                                                                            preliminary
                                                                                                                                                                                                                                                                              fair value
                                                                                                                                                                                                                                                                                        ’m
identifiable assets acquired and liabilities assumed
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                                                   
longterm 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 payable                                                                                                                                                                               7396 
the purchase price allocation is preliminary pending final determination of the fair values of certain assets acquired and liabilities assumed 
the final determination of these fair values will be completed as soon as possible but no later than one year from the acquisition date
8446 annual report 2011annual report 2011  15032012  1613  page 94 c annual report 2011 shire plc annual report 2011 95
financial statements
4 business combinations continued
other intangible assets principally comprise 7100 million relating
to dermagraft product technology the product brand name and
related relationships the fair value of this asset has been estimated
using an income approach using the excess earnings method the
estimated useful life of the technology is 18 years and amortization
expense will be recorded on a straightline basis
goodwill arising of 197 0 million which is not deductible for tax
purposes has been assigned to the regenerative medicine “rm”
operating segment goodwill includes the values of tax synergies
assembled workforce and future potential indications for
dermagraft which at the time of acquisition did not meet the 
criteria for recognition as separate intangible assets
in the year to december 31 2011 the company incurred integration
and acquisitionrelated costs of 136 million 2010 nil in respect 
of the acquisition of abh which have been charged to integration 
and acquisition costs in the company’s income statement
acquisition of movetis
on september 6 2010 the company launched a voluntary public
takeover offer for all the shares and warrants in movetis a belgium
based specialty gi company at a price of €19 per share in cash
on october 12 2010 the company’ s wholly owned subsidiary shire
holdings luxembourg sarl acquired 9921 of the shares of movetis
as a result of the successful tender offer by november 8 2010 following
a statutory squeezeout of the remaining shares and warrants not
tendered in the offer the company had acquired 100 of the shares and
warrants in movetis for a total cash consideration of 5920 million the
acquisition of movetis was funded from shire’ s existing cash resources
the acquisition significantly broadens shire’s global gi portfolio 
and adds growing revenues from resolor a new chemical entity
indicated for the symptomatic treatment of chronic constipation in
women in whom laxatives fail to provide adequate relief movetis 
has the rights to resolor in the european union “eu” iceland
lichtenstein norway and switzerland the “movetis territory” and is
entitled to royalties on sales of resolor outside europe and the us
from johnson  johnson “jj” the acquisition also brought to shire
worldclass rd talent and a promising gi pipeline on january 10
2012 shire also acquired the rights to resolor in the us from jj
the acquisition of movetis has been accounted for as a purchase
business combination the assets acquired and the liabilities assumed
from movetis have been recorded at their fair value at october 12 2010
being the date of acquisition the company’ s consolidated financial
statements and results of operations include the results of movetis from
october 12 2010 the company’ s allocation of the purchase price to
the movetis assets acquired and liabilities assumed is outlined below
                                                                                                                                                                                                                                                                              fair value
                                                                                                                                                                                                                                                                                        ’m
assets
current assets
cash and cash equivalents                                                                                                                                                                                1090 
shortterm investment                                                                                                                                                                                           70 
other current assets                                                                                                                                                                                              86 
total current assets                                                                                                                                                                                            1246 
noncurrent assets                                                       
property plant and equipment                                                                                                                                                                               11 
goodwill                                                                                                                                                                                                               279 
other intangible assets                                                    
– currently marketed product                                                                                                                                                                         3170 
– iprd                                                                                                                                                                                                          1390 
– other intangible assets                                                                                                                                                                                   140 
other noncurrent assets                                                                                                                                                                                       08 
deferred tax asset                                                                                                                                                                                                404 
total assets                                                                                                                                                                                                      6648 
liabilities                                                                    
current liabilities                                                           
accounts payable and other current liabilities                                                                                                                                                      190 
noncurrent liabilities                                                   
deferred tax liability                                                                                                                                                                                              538 
total liabilities                                                                                                                                                                                                    728 
fair value of identifiable assets acquired and liabilities assumed                                                                                                                        5920 
consideration
cash consideration paid                                                                                                                                                                                    5920 
8446 annual report 2011annual report 2011  15032012  1613  page 95 shire plc annual repo 96 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
4 business combinations continued
a other intangible assets—currently marketed product
other intangible assets include 317 0 million relating to intellectual
property rights in the movetis territory for movetis’ currently marketed
product resolor for the treatment of chronic constipation 
in women in whom laxatives fail to provide adequate relief the fair 
value of resolor for the treatment of chronic constipation in 
women in the movetis territory has been estimated using an income
approach based on the present value of incremental after tax 
cash flows attributable to the asset after deduction of contributory
asset charges
the estimated useful life of the resolor currently marketed product
intangible asset is 14 years with amortization being recorded on a
straightline basis
b other intangible assets—iprd
iprd relates to development projects acquired with movetis that
have been initiated and have achieved material progress and whose
fair value is estimable with reasonable certainty but i have not yet
reached technological feasibility or have not yet received the relevant
regulatory approval and ii have no alternative future use
iprd principally relates to resolor for the treatment of chronic
constipation in men 93 million and children 42 million in the
movetis territory the fair value of these iprd assets have been
estimated based on an income approach using the present value of
incremental after tax cash flows expected to be generated by these
development projects after the deduction of contributory asset charges
for other assets employed in these projects the estimated cash flows
have been probabilityadjusted to take into account their stage of
completion and the remaining risks and uncertainties surrounding their
future development and commercialization the estimated probability
adjusted after tax cash flows have been discounted at rates between
12–14 to determine a present or fair value
the major risks and uncertainties associated with the timely completion
of the acquired iprd projects consist of the ability to confirm the
efficacy of the technology based on the data from clinical trials and
obtaining the relevant regulatory approvals the valuation of iprd 
has been based on information available at the time of the acquisition
and on 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 a market participant however no assurance can be given that the
assumptions and events associated with such assets will occur as
projected for these reasons the actual cash flows may vary from
forecast future cash flows
c goodwill
goodwill arising of 27 9 million which is not deductible for tax
purposes has been assigned to the specialty pharmaceuticals
operating segment 
in the year to december 31 2010 the company expensed transaction
costs of 69 million relating to the movetis acquisition which 
have been recorded within integration and acquisition costs in the
company’s consolidated statements of income
the amounts of movetis’s revenue and losses included in the
company’s consolidated statements of income for the year ended
december 31 2010 are 03 million of revenues and 17 5 million 
of pre tax losses
acquisition of equasym ir and xl
on march 31 2009 the company acquired the worldwide rights
excluding the us canada and barbados to equasym ir and xl 
for the treatment of adhd from ucb pharma limited “ucb” for cash
consideration of 728 million included in the recognized purchase
price for the acquisition is further consideration of 182 million of
which 120 million was paid to ucb in the year to december 31 2010
the remaining contingent consideration was not paid in 2011 as the
relevant sales target was not met this acquisition broadened the
scope of shire’s adhd portfolio and facilitated immediate access to 
the european adhd market as well as providing shire the opportunity
to enter additional markets around the world
the acquisition of equasym ir and xl was accounted for as 
a business combination the purchase price was allocated to the
currently marketed products 730 million iprd 55 million 
other liabilities 07 million and goodwill 132 million
acquisition of jerini
on july 3 2008 the company announced that it was launching 
a voluntary public takeover offer for all outstanding shares in jerini 
a german corporation at a price of eur 625 per share by august 6
2008 the company had acquired 801 of the voting interests in jerini
for a cash consideration of 4563 million in the year to december 31
2008 the company acquired 986 of the voting interests in jerini 
for a cash consideration of 5565 million represented by jerini 
shares 5398 million the cash cost of canceling jerini stock options 
94 million and direct costs of acquisition 7 3 million in the year to
december 31 2009 the company acquired the rights to the remaining
1 4 of the voting interests in jerini for additional cash consideration of
105 million including direct acquisition costs such that the company
owned 100 of jerini the acquisition added jerini’s hereditary
angioedema “hae” product firazyr to the company’s portfolio 
the acquisition of jerini has been accounted for as a purchase
business combination the assets acquired and the liabilities assumed
from jerini have been recorded at the date of acquisition at their fair
value between acquiring the company’s controlling voting interest 
in early august 2008 and december 31 2009 the company acquired 
the remaining voting interests totaling 199 of jerini’s issued 
share capital the additional voting interests have been accounted 
for as stepacquisitions using the purchase method of accounting 
8446 annual report 2011annual report 2011  15032012  1613  page 96 shire plc annual report 2011 97
financial statements
c annual report 2011
4 business combinations continued
supplemental disclosure of proforma information
the following unaudited proforma financial information presents the combined results of the operations of shire abh and movetis as if the acquisitions
of abh and movetis had occurred at january 1  2010 and 2009 respectively the unaudited proforma financial information is not necessarily
indicative of what the consolidated results of operations actually would have been had the acquisition been completed at the date indicated 
in addition the unaudited proforma financial information does not purport to project the future results of operations of the combined company
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
revenues                                                                                                                                                43537               36189                3007 7 
net income from continuing operations                                                                                                     8509                  5084                  4530 
net income attributable to shire plc                                                                                                           8509                  5084                  4406 
per share amounts                                                                                                                 
net income from continuing operations per share—basic                                                                       1544¢                  931¢                  838¢
net income per ordinary share attributable to shire plc—basic                                                              1544¢                  931¢                   815¢
net income from continuing operations per share—diluted                                                                     1485¢                   913¢                  827¢
net income per ordinary share attributable to shire plc—diluted                                                            1485¢                   913¢                  804¢
the unaudited proforma financial information above reflects the
following proforma adjustments
abh
i an adjustment to net income of 499 million and 134 million for
the year to december 31 2011 and 2010 respectively to eliminate
the income statement effect of changes in the fair value of abh’s
preferred stock warrants which were extinguished on acquisition 
of abh 
ii an adjustment to increase amortization expense by approximately
200 million and 400 million for the year to december 31  2011
and 2010 respectively to reflect amortization of intangible assets
principally for dermagraft product technology over their
estimated useful lives
iii an adjustment to decrease net income by 136 million for the year
to december 31 2010 to reflect acquisition and integration costs
incurred by shire and increase net income by 306 million for 
the year to december 31 2011 to eliminate the acquisition and
integration costs incurred by abh and shire 
iv an adjustment of 21 million and 27 million in the year to
december 31 2011 and december 31 2010 respectively to reflect
interest income foregone on the company’s cash resources used
to fund the acquisition of abh and interest expense incurred as
result of the partial funding of the acquisition of abh through the
company’s revolving credit facility and
v adjustments to reflect the tax effects of the above adjustments
where applicable
movetis
i an adjustment to decrease interest incomeincrease interest
expense by 27 million and 36 million in the year to december
31 2010 and 2009 respectively to reflect the interest foregone 
on the company’s cash resources used to fund the acquisition 
of movetis and 
ii an adjustment to increase amortization expense by approximately
17 7 million and 236 million for the years to december 31 2010
and 2009 respectively to reflect amortization of intangible assets
relating to the currently marketed product over the estimated
useful life of 14 years
in addition in the years to december 31 2010 and 2009 the
calculations of proforma diluted earnings per share do not include the
effect of the company’s convertible bond as it would be anti dilutive 
on a proforma basis
5 termination of duramed pharmaceuticals inc
“duramed” collaboration agreement
in august 2006 shire and duramed a subsidiary of teva
pharmaceutical industries ltd “teva” entered into an agreement
related to seasonique a number of products using duramed’s
transvaginal ring technology and other oral products the “collaboration
products” under this agreement shire was required to reimburse
duramed for us development expenses incurred on collaboration
products up to a maximum of 140 million over eight years from
september 2006 and shire had the right to commercialize these
products in a number of markets outside of north america including
the larger european markets
on february 24 2009 shire and duramed amended this agreement
such that it terminated on december 31 2009 pursuant to this
amendment shire agreed to return to duramed its rights under the
agreement effective february 24 2009 shire also agreed to reimburse
duramed for incurred us development expenditures in 2009 up to a
maximum of 300 million shire has no rights with respect 
to the products on which such development expenditures are incurred
in addition shire agreed to a one time payment to duramed of 
100 million which was paid during the first quarter of 2009 and 
to forego royalties receivable from barr laboratories inc “barr” 
a subsidiary of teva and cost of goods otherwise payable by barr 
to shire in 2009 under the license agreement between the parties 
for the supply of authorized generic adderall xr up to a maximum
of 250 million during the year to december 31 2009 the company
recorded a charge of 629 million to research and development 
within the specialty pharmaceuticals operating segment to reflect 
the cash payment made in the first quarter of 2009 and other
termination related costs
8446 annual report 2011annual report 2011  15032012  1613  page 97 shire plc annual repo 98 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
the liability for reorganization costs arising on the establishment of the international commercial hub in switzerland and transfer of manufacturing
from owings mills at december 31 2011 is as follows
                                                                                                                                                                        opening                                                                                            closing
                                                                                                                                                                       liability at                      amount                                                     liability at
                                                                                                                                                                      january 1                charged to                                               december 31 
                                                                                                                                                                              2011            reorganization               paidutilized                           2011
                                                                                                                                                                               ’m                            ’m                            ’m                            ’m
involuntary termination benefits                                                                                        101                    128                    142                     87
other reorganization costs                                                                                                 23                     115                    137                      01
                                                                                                                                         124                    243                    27 9                     88
at december 31 2011 the closing liability for reorganization costs was recorded within accounts payable and accrued expenses
8 accounts receivable net
accounts receivable at december 31 2011 of 8450 million december 31 2010 6925 million are stated net of a provision for discounts and
doubtful accounts of 311 million december 31 2010 234 million december 31 2009 208 million 
provision for discounts and doubtful accounts
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
as at january 1                                                                                                                                            234                    208                    202 
provision charged to operations                                                                                                                 2408                  1781                   127 4 
provision utilization                                                                                                                                    2331                 1755                 1185
reclassification                                                                                                                                                  –                          –                     83
as at december 31                                                                                                                                      311                    234                    208 
during the year to december 31 2009 the group reclassified its provision for tricare healthcare program rebates of 83 million at january 1
2009 from provisions for discounts and doubtful accounts to accounts payable and accrued expenses
at december 31 2011 accounts receivable included 733 million december 31 2010 758 million related to royalty income
6 divestment of product rights
on october 1 2010 the company completed the divestment 
of daytrana to noven pharmaceutical inc “noven” noven
developed and manufactures daytrana and shire 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 shire recorded the fair 
value of contingent consideration receivable from noven within current
and noncurrent assets during the year to december 31 2011 the
company recognized a loss of 60 million 2010 gain of 104 million
due to changes in the fair value of this contingent consideration 
at december 31 2011 the company has recorded a receivable 
based on the fair value of future contingent consideration totaling 
426 million 2010 653 million split between current assets 
137 million 2010 21 6 million and noncurrent assets 289 million
2010 437 million
in the year to december 31 2011 the company recognized a loss 
of 60 million 2010 gain of 165 million 2009 gain of 63 million 
in respect of daytrana and other disposed product rights
all assets disposed of during 2011 2010 and 2009 formed part 
of the sp operating segment
7 reorganization costs
establishment of an international commercial hub in switzerland
in march 2010 the company initiated plans to relocate certain rd 
and commercial operations to switzerland to support its hgt and 
sp businesses outside the us in the year to december 31 2011 the
company incurred reorganization costs totaling 125 million relating 
to employee involuntary termination benefits and other reorganization
costs the transition to the international commercial hub in switzerland
has been completed in 2011 the total reorganization costs incurred
since march 2010 are 338 million
owings mills
in march 2009 the company initiated plans to phase out operations
and close its sp manufacturing facility at owings mills maryland 
in 2011 the company sold its owings mills facility and completed 
the transition of all products manufactured at this site to dsm
pharmaceuticals inc in the year to december 31 2011 the 
company incurred reorganization costs of 118 million which relate 
to employee involuntary termination benefits and other costs the total
reorganization costs incurred since march 2009 are 37 5 million
as a result of the decision to transfer manufacturing from the owings
mills site the company revised the useful life of property plant and
equipment in the facility and in the year to december 31 2011 incurred
accelerated depreciation of 66 million which has been charged 
to cost of product sales the reorganization costs and accelerated
depreciation have been recorded within the sp operating segment
8446 annual report 2011annual report 2011  15032012  1613  page 98 shire plc annual report 2011 99
financial statements
c annual report 2011
9 inventories
inventories are stated at the lower of cost or market value and comprise
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                           2010
                                                                                                                                                                                                                                                     ’m                           ’m
finished goods                                                                                                                                                                        999                     919 
workinprogress                                                                                                                                                                   1626                   1139 
raw materials                                                                                                                                                                          776                    542 
                                                                                                                                                                                               3401                  2600 
at december 31 2011 inventories included 227 million december 31 2010 41 million of costs capitalized prior to regulatory approval of the
related product or relevant manufacturing process at december 31 2011 preapproval inventory relates solely to vpriv manufactured at the
company’s new manufacturing facility at lexington technology park “ltp”
10 prepaid expenses and other current assets
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
prepaid expenses                                                                                                                                                                    469                    451 
income tax receivable                                                                                                                                                              481                    424 
value added taxes receivable                                                                                                                                                   189                     215 
other current assets                                                                                                                                                                 610                    594
                                                                                                                                                                                               1749                  1684 
11 investments
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
investments in private companies                                                                                                                                            128                      59 
available for sale securities                                                                                                                                                         74                    839 
equity method investments                                                                                                                                                        97                     118 
                                                                                                                                                                                                 299                   1016 
disposal of vertex
in the year to december 31  2011 the company disposed of 1 8 million shares in vertex representing substantially all of the company’ s holding
in vertex for a cash consideration of 947 million realizing a gain of 235 million which has been included in other income net in 2011  
the company obtained its holding in vertex on disposal of its investment in virochem pharma inc see below 
disposal of virochem pharma inc “virochem” 
on march 12 2009 the company completed the disposal of its investment in virochem to vertex in a cash and stock transaction the disposal 
was part of a transaction entered into by all the shareholders of virochem with vertex the carrying amount of the company’ s investment in
virochem on march 12 2009 was 148 million in 2009 shire received consideration of 192 million in cash and 2 million vertex shares valued 
at 508 million from the disposal recognizing a gain of 552 million in other expenseincome net in the year to december 31  2009
in the year to december 31  2010 the company received further consideration of 20 million in cash and 02 million vertex shares valued at 
91 million which had been held in escrow until certain substantive conditions expired in march 2010 the company recognized an additional 
gain on disposal of 11 1 million in other expenseincome net in the year to december 31  2010 
8446 annual report 2011annual report 2011  15032012  1613  page 99 shire plc annual repo 100 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
12 property plant and equipment net
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
land and buildings                                                                                                                                                                 7080                  6899
office furniture fittings and equipment                                                                                                                                  3381                  3049 
warehouse laboratory and manufacturing equipment                                                                                                          2719                   1194 
assets under construction                                                                                                                                                       817                   167 7 
                                                                                                                                                                                            13997                12819 
less accumulated depreciation                                                                                                                                           4676                4285
                                                                                                                                                                                               9321                  8534 
depreciation expense for the years to december 31 2011 2010 and 2009 was 1281 million 1192 million and 1050 million respectively 
purchase of the lexington technology park campus in lexington massachusetts
on june 30 2010 shire completed the purchase of certain properties on the lexington technology park campus in lexington massachusetts
some of which the company had previously leased for a cash purchase price of 1650 million the purchase price of 1650 million has been
allocated to the acquired properties and extinguishment of existing building finance obligations using a relative fair value approach 1219 million
has been recorded as property plant and equipment being land 721 million and buildings 498 million the remaining 431 million relates 
to the extinguishment of existing building finance obligations and has been applied against the relevant financing obligations see note 18
13 goodwill
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
goodwill arising on businesses acquired                                                                                                                               5926                  4025
during the year to december 31 2011 the company completed its acquisition of abh for cash consideration payable of 7396 million 
which resulted in goodwill with a preliminary value of 197 0 million see note 4 the goodwill has been assigned to the rm operating segment
during the year to december 31 2010 the company acquired all the shares and warrants in movetis for cash consideration of 5920 million
which resulted in goodwill of 27 9 million see note 4 the goodwill has been assigned to the sp operating segment
at december 31 2011 goodwill of 2435 million december 31 2010 2459 million is held in the sp segment 1521 million december 31
2010 1566 million in the hgt segment and 197 0 million december 31 2010 nil is held in the rm segment
                                                                                                                                                                                                                                                   2011                           2010
                                                                                                                                                                                                                                                     ’m                           ’m
as at january 1                                                                                                                                                                     4025                  3847
acquisitions                                                                                                                                                                            1970                     27 9 
foreign currency translation                                                                                                                                                      69                   101
as at december 31                                                                                                                                                               5926                  4025 
8446 annual report 2011annual report 2011  15032012  1613  page 100 shire plc annual report 2011 101
financial statements
c annual report 2011
in the year to december 31 2011 the company acquired intangible
assets totaling 717 1 million principally relating to dermagraft
product technology acquired with abh see note 4 for further details
the weighted average amortization period of acquired amortizable
intangible assets is 18 years
in the year to december 31 2011 the company recorded impairment
charges of 160 million 2010 nil in respect of certain iprd
intangible assets the impairment charge has been recorded within
rd in the sp operating segment
in the year to december 31 2010 the company acquired intangible
assets totaling 4727 million principally relating to the resolor
currently marketed product 317 0 million and iprd 1390 million
acquired through the movetis business combination see note 4 for
further details the weighted average amortization period for acquired
currently marketed products is 14 years
in the year to december 31 2010 the company divested daytrana
to noven on approval of the divestment in the third quarter of 2010
the held for sale criteria were met and the company recognized an
impairment loss of 427 million to record the daytrana disposal
group at the lower of its carrying amount or fair value less costs 
to sell the impairment loss was recorded to selling general and
administrative expenses in the year to december 31 2010 the
daytrana disposal group formed part of the sp operating segment 
management estimates that the annual amortization charge in respect
of intangible assets held at december 31 2011 will be approximately
190 million for each of the five years to december 31 2016 estimated
amortization expense can be affected by various factors including
future acquisitions disposals of product rights regulatory approval 
and subsequent amortization of the acquired iprd projects foreign
exchange movements and the technological advancement and
regulatory approval of competitor products
14 other intangible assets net
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2010                         2009
                                                                                                                                                                                                                                                     ’m                           ’m
amortized intangible assets
intellectual property rights acquired for currently marketed products                                                                             25007               25164 
acquired product technology                                                                                                                                             7100                          –
other intangible assets                                                                                                                                                         232                    220 
                                                                                                                                                                                        32339               25384
unamortized intangible assets 
intellectual property rights acquired for iprd                                                                                                                   1198                  1397 
                                                                                                                                                                                        33537               26781 
less accumulated amortization                                                                                                                                           8607                6992
                                                                                                                                                                                            24930                19789 
at december 31 2011 the net book value of intangible assets allocated to the sp segment was 13483 million december 31 2010 
14829 million to the hgt segment was 4532 million december 31 2010 4960 million and to the rm segment was 6915 million
december 31 2010 nil
the change in the net book value of other intangible assets for the year to december 31 2011 and 2010 is shown in the table below 
                                                                                                                                                                                                                                             other intangible assets
                                                                                                                                                                                                                                                   2011                           2010
                                                                                                                                                                                                                                                     ’m                           ’m
as at january 1                                                                                                                                                                  19789                17907
acquisitions                                                                                                                                                                            7171                  4727 
amortization charged                                                                                                                                                            1667                 1352
impairment charges                                                                                                                                                                160                         –
impairment on remeasurement of daytrana to fair value less costs to sell                                                                               –                   427
reclassification of daytrana to assets held for sale                                                                                                                  –                   560
foreign currency translation                                                                                                                                                    203                  506
as at december 31                                                                                                                                                            24930                19789 
8446 annual report 2011annual report 2011  15032012  1613  page 101 shire plc annual repo 102 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
15 accounts payable and accrued expenses
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
trade accounts payable and accrued purchases                                                                                                                  2596                  2347 
accrued rebates—medicaid                                                                                                                                                  4098                  3796 
accrued rebates—managed care                                                                                                                                          2028                   1703 
sales return reserve                                                                                                                                                                 888                    698 
accrued bonuses                                                                                                                                                                   1030                     916 
accrued employee compensation and benefits payable                                                                                                         593                    481 
rd accruals                                                                                                                                                                           527                    607 
marketing accruals                                                                                                                                                                   182                    265 
other accrued expenses                                                                                                                                                        1763                  1580 
                                                                                                                                                                                            13705                12393 
there are potentially different interpretations as to how shipments 
of authorized generic adderall xr to teva and impax should be
included in the medicaid rebate calculation since authorized generic
launch in 2009 the company has recorded its accrual for medicaid
rebates based on its best estimate of the rebate payable consistent
with the company’s interpretation of the medicaid rebate legislation
shire believes that its interpretation of the medicaid rebate legislation 
is reasonable and correct in addition from october 1 2010 provisions
of the 2010 affordable care act provide further clarity in a manner
consistent with the company’s interpretation as to how shipments 
of authorized generics from that date should be included in the
medicaid rebate calculation 
however the cms could disagree with shire’s interpretation of the
medicaid rebate legislation for shipments of authorized generic
products prior to october 1 2010 cms could require shire to apply 
an alternative interpretation of the medicaid rebate legislation and
request that shire pays up to 212 million above the recorded liability
however shire believes it has a strong legal basis supporting its
interpretation of the medicaid rebate legislation and that there would
be a strong basis to limit any additional payment to a level
approximating the full unrebated cost to the states of adderall xr
equivalent to approximately 134 million above the recorded liability
and to initiate litigation to recover any amount paid in excess of the
recorded liability the result of any such litigation cannot be predicted 
16 convertible bonds 
shire 275 convertible bonds due 2014 
on may 9 2007 shire issued 1100 million in principal amount of
275 convertible bonds due 2014 and convertible into fully paid
ordinary shares of shire plc the “bonds” the net proceeds of issuing
the bonds after deducting the commissions and other direct costs 
of issue totaled 10817 million in connection with the scheme the
trust deed was amended and restated in 2008 in order to provide 
that following the substitution of shire plc in place of old shire as 
the principal obligor and issuer of the convertible bonds the bonds
would be convertible into ordinary shares of shire plc
the bonds were issued at 100 of their principal amount and 
unless previously purchased and canceled redeemed or converted
will be redeemed on may 9 2014 the “final maturity date” at their
principal amount 
the bonds bear interest at 275 per annum payable semiannually 
in arrears on november 9 and may 9 the bonds constitute 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 may be redeemed 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 cancelations andor
redemptions effected in respect of 85 or more in principal amount 
of bonds originally issued the bonds may also be redeemed at the
option of the bondholder at their principal amount including accrued
but unpaid interest on may 9 2012 the “put option” or following the
occurrence of a change of control of shire the bonds are 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 following exercise of the put option by 
delivery of the underlying ordinary shares and a cash topup amount
in accordance with us gaap  as the exercise of the put option 
could require the company to redeem the bonds within twelve 
months of the balance sheet date the bonds have been presented 
as a current liability at december 31 2011
the bonds are 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 14 days prior to the final maturity
date ii if the bonds have been called for redemption by the company
the close of business 14 days before the date fixed for redemption 
iii the close of business on the day prior to a bondholder 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 bondholder 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 anti dilution 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 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
8446 annual report 2011annual report 2011  15032012  1613  page 102 shire plc annual report 2011 103
financial statements
c annual report 2011
17 other current liabilities
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
income taxes payable                                                                                                                                                              277                    162 
value added taxes                                                                                                                                                                    133                      99 
other current liabilities                                                                                                                                                              228                    235 
                                                                                                                                                                                                 638                    496 
18 longterm debt
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 “new
rcf” the new rcf is for an aggregate amount of 1200 million 
and canceled the company’ s existing committed revolving credit facility
the “old rcf” the new 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 new 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 annum and
libor for the applicable currency and interest period shire also pays 
a commitment fee on undrawn amounts at 35 per annum of the
applicable margin
under the new rcf it is required that i shire’s ratio of net debt to
ebitda as defined within the new rcf agreement does not exceed
35 to 1 for either the twelve 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 new rcf
agreement must not be less than 40 to 1 for either the twelve 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 new rcf in november 2010 the company 
paid arrangement costs of 80 million which have been recorded 
as deferred charges and amortized over the contractual term 
of the new rcf  
the availability of loans under the new rcf is subject to customary
conditions 
other longterm debt
during 2007 and 2009 shire entered into certain multiyear leases for
its hgt business unit at north reading and lexington massachusetts
for some of these leases shire was considered the insubstance
owner of the related properties over their construction period and as a
result shire recorded assets being the fair value of the building element 
at inception of the relevant lease within property plant and equipment
and the corresponding building financing obligations were recorded
within other longterm debt the land element of these leases was
accounted for as an operating lease
in the year to december 31 2009 on entering into certain of these
leases shire extended the term of the existing leases at lexington
technology park this lease extension was accounted for as a
substantial modification of the existing building finance obligation
whereby the existing liability was derecognized and a building financing
obligation based on the fair value of the liability under the revised lease
terms recorded in its place the substantial modification resulted in a
noncash gain of 57 million in the year to december 31 2009 which
was recorded to other expenseincome net
on june 30 2010 as outlined in note 12 shire completed the
purchase of certain properties on the lexington technology park
campus including the properties held under building finance
obligations accordingly shire applied 431 million of the purchase
price for the lexington campus to extinguish the existing building
finance obligations recognizing a loss of 36 million within other
expenseincome net in the year to december 31 2010
8446 annual report 2011annual report 2011  15032012  1613  page 103 shire plc annual repo 104 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
the company leases land facilities motor vehicles and certain
equipment under operating leases expiring through 2021 lease 
and rental expense amounted to 37 6 million 333 million and 
355 million for the year to december 31 2011 2010 and 2009
respectively which is predominately included in sga expenses 
in the consolidated statements of income
b letters of credit and guarantees
at december 31 2011 the company had irrevocable standby letters 
of credit and guarantees with various banks totaling 347 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 the company has restricted cash of 92 million 
as required by these letters of credit
c collaborative arrangements
details of significant collaborative arrangements are included below
inlicensing arrangements
i collaboration with acceleron pharma inc “acceleron” 
for activin receptor type iib “actriib” class of molecules 
on september 9 2010 shire announced that it had expanded its
hgt pipeline by acquiring an exclusive license in markets outside 
of north america for the actriib class of molecules being developed
by acceleron the collaboration will initially focus on further developing
hgt4510 also called ace031 the lead actriib drug candidate
which is in development for the treatment of patients with duchenne
muscular dystrophy “dmd” the phase 2a trial is on hold and 
clinical safety is under review hgt4510 and the other actriib class 
of molecules have the potential to be used in other muscular and
neuromuscular disorders with high unmet medical need
in the year to december 31 2010 shire made an upfront payment 
of 45 million to acceleron which has been expensed to rd 
in the year to december 31 2011 shire’s share of rd costs under this
collaboration agreement were 101 million 2010 27 million 2009
nil which were expensed to rd shire will pay acceleron up to a
further 1650 million subject to certain development regulatory and
sales milestones being met for hgt4510 in dmd up to an additional
288 million for successful commercialization of other indications and
molecules and royalties on product sales
shire and acceleron will conduct the collaboration through a joint
steering committee with subcommittees including a joint manufacture
committee and a joint patent committee to monitor the development
of hgt4510 and other compounds 
ii 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
in the year to december 31 2009 shire made an upfront payment 
to santaris of 65 million for technology access and rd funding
which was expensed to rd 
in the year to december 31 2011 shire paid success milestones 
and other support costs of 25 million 2010 40 million 2009 nil
and 53 million 2010 23 million 2009 01 million to santaris
respectively which were expensed to rd shire has remaining
obligations to pay santaris 135 million subject to certain success
criteria and development and sales milestones up to a maximum 
of 705 million for each 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
19 other noncurrent liabilities
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
income taxes payable                                                                                                                                                              783                  1300
deferred revenue                                                                                                                                                                      122                    141 
deferred rent                                                                                                                                                                            140                    128 
insurance provisions                                                                                                                                                                 145                    135 
other noncurrent liabilities                                                                                                                                                       253                    204 
                                                                                                                                                                                               1443                  1908 
20 commitments and contingencies
a leases
future minimum lease payments under operating leases at december 31 2011 are presented below
                                                                                                                                                                                                                                           operating
                                                                                                                                                                                                                                                 leases
                                                                                                                                                                                                                                                     ’m
2012                                                                                                                                                                                         435 
2013                                                                                                                                                                                         335 
2014                                                                                                                                                                                         281 
2015                                                                                                                                                                                         213 
2016                                                                                                                                                                                         151 
thereafter                                                                                                                                                                                 414 
                                                                                                                                                                                               1829 
8446 annual report 2011annual report 2011  15032012  1613  page 104 shire plc annual report 2011 105
financial statements
c annual report 2011
20 commitments and contingencies continued
iii collaboration and license agreement with sangamo
biosciences inc “sangamo” to develop therapeutics 
for hemophilia
on february 1 2012 shire and sangamo announced that they have
entered into a collaboration and license agreement to develop
therapeutics for hemophilia and other monogenic diseases based 
on sangamo’s zfp technology shire will receive exclusive worldwide
rights to zfp therapeutics designed to target four genes in hemophilia
and will also receive the right to designate three additional gene
targets 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 alliance shire will pay sangamo an upfront
fee followed by research regulatory development and commercial
milestone payments and royalties on product sales
iv juvista
on june 19 2007 shire signed an agreement with renovo limited
“renovo” to develop and commercialize juvista on february 11
2011 renovo announced its phase 3 trial for juvista in scar revision
surgery did not meet its primary or secondary endpoints on march 2
2011 shire terminated its agreement with renovo
outlicensing arrangements
shire 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 certain of
these arrangements shire 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 540 million the receipt of these substantive milestones 
is uncertain and is 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 2011
shire received milestone payments totaling 115 million 2010 nil
2009 40 million in the year to december 31 2011 shire 
recognized milestone income of 17 5 million 2010 84 million 
2009 88 million in other revenues and 652 million 2010 
511 million 2009 294 million in product sales for shipment 
of product to the relevant licensee
i collaboration with shionogi  co limited “shionogi” 
for adhd medicines in japan
on november 18 2011 shire announced that it had entered into an
agreement with shionogi to codevelop and cocommercialize certain 
of shire’s adhd medicines in japan shionogi paid shire an upfront 
fee and will share costs with shire in exchange for rights to jointly 
codevelop and cocommercialize the products upon approval for the
japanese market shionogi is a leading japanese pharmaceutical
company with an expertise in developing medicines for the central
nervous system among other therapeutic areas working together 
with the shionogi team shire believes the path to regulatory approval
market development and commercialization for adhd medicines 
will be more effective and efficient 
copromotion agreements—vyvanse
shire terminated its copromotion agreement for vyvanse with gsk 
in 2010 no termination payment or any other payments were made 
or are due to gsk following shire’ s termination gsk filed a lawsuit
against shire in the philadelphia court of common pleas relating to 
the copromotion agreement gsk is seeking compensation despite 
the failure to achieve the required sales thresholds shire believes 
that the lawsuit is frivolous and without merit and shire is vigorously
defending itself
d commitments
i clinical testing 
at december 31 2011 the company had committed to pay
approximately 3586 million december 31 2010 1562 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 enrolment
levels and related activities
ii contract manufacturing
at december 31 2011 the company had committed to pay
approximately 864 million december 31 2010 1086 million 
in respect of contract manufacturing the company expects 
to pay 864 million of these commitments in 2012 
iii other purchasing commitments
at december 31 2011 the company had committed to pay
approximately 1901 million december 31 2010 1041 million 
for future purchases of goods and services predominantly relating 
to active pharmaceutical ingredients sourcing the company 
expects to pay 1848 million of these commitments in 2012
iv investment commitments
at december 31 2011 the company had outstanding commitments 
to subscribe for interests in companies and partnerships for amounts
totaling 94 million december 31 2010 57 million which may all 
be payable in 2012 depending on the timing of capital calls
v capital commitments
at december 31 2011 the company had committed to spend 
254 million december 31 2010 760 million on capital projects 
e legal and other proceedings
general
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 where 
the estimated loss lies within a range the company records a loss
contingency provision based on its best estimate of the probable loss
where no particular amount within that range is a better estimate than
any other amount the minimum amount is recorded these estimates
are often developed substantially before the ultimate loss is known so
estimates are refined each accounting period as additional information
becomes known in instances where the company is unable to
develop a reasonable estimate of loss no litigation loss is recorded at
that time as information becomes known a loss provision is set up
when a reasonable estimate can be made the estimates are reviewed
quarterly and the estimates are changed when expectations are
revised any outcome upon settlement that deviates from the
company’s estimate may result in an additional expense or release 
in a future accounting period at december 31 2011 provisions 
for litigation losses insurance claims and other disputes totaled 
369 million december 31 2010 338 million
8446 annual report 2011annual report 2011  15032012  1613  page 105 shire plc annual repo 106 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
20 commitments and contingencies continued
specific
vyvanse
in may and june 2011 shire was notified that six separate abbreviated
new drug applications “andas” were submitted under the hatch
waxman 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 45day period shire 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” on
december 9 2011 the district court of new jersey consolidated the
sandoz roxane amneal and actavis cases on january 5 2012 the
watson case was transferred to the district court of new jersey and is
presently a separate action 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 in december 2011 and february 2012
shire received additional notifications that mylan had filed further
certifications challenging other vyvanse patents listed in the orange
book within the requisite 45day period shire filed a new law suit
against mylan johnson matthey pharmaceutical materials and
johnson matthey inc in new jersey no trial dates have been set
intuniv 
in march and april 2010 shire was notified that three separate andas
were submitted under the hatchwaxman act seeking permission 
to market generic versions of all approved strengths of intuniv  
the notices were from teva pharmaceuticals usa inc and teva
pharmaceutical industries ltd collectively “teva” actavis and
anchen pharmaceuticals inc and anchen inc collectively “anchen”
within the requisite 45day period shire filed lawsuits in the us district
court for the district of delaware against each of teva actavis and
anchen for infringement of certain of shire’ s intuniv patents the filing
of the lawsuits triggered a stay of approval of these andas for up 
to 30 months these lawsuits have been consolidated a markman
hearing was held on february 14 2012 a trial is scheduled to begin 
on september 17  2012
in october 2010 shire was notified that two separate andas were
submitted under the hatchwaxman act seeking permission to market
generic versions of the 4mg strength of intuniv  the notices were
from watson pharmaceuticals inc and from impax laboratories inc
“impax” shire was subsequently advised that impax amended its
anda to include the 1mg 2mg and 3mg strengths of intuniv  within
the requisite 45day period shire filed a lawsuit in the us district 
court for the northern district of california against each of watson
pharmaceuticals inc watson laboratories incflorida watson
pharma inc anda inc collectively “watson” and impax for
infringement of certain of shire’s intuniv patents the filing of the
lawsuit triggered a stay of approval of these andas for up to 30
months a markman hearing has been scheduled for may 30 2012 
no trial date has been set
in february 2011 shire was notified that mylan pharmaceuticals inc
submitted an anda under the hatchwaxman act seeking permission
to market a generic version of the 4mg strength of intuniv  within 
the requisite 45day period shire filed a lawsuit in the us district court 
for the southern district of new york against mylan for infringement 
of certain of shire’s intuniv patents in april 2011 shire filed a lawsuit
against mylan in the us district court for the district of west virginia
for infringement of certain of shire’s intuniv patents and dismissed
the lawsuit in the southern district of new york the filing of the 
lawsuit in west virginia did not trigger a stay of approval of this anda
a markman hearing has been scheduled for june 7  2012 a trial is
scheduled to start on september 16 2013 shire was subsequently
advised that mylan amended its anda to include the 1mg 2mg and
3mg strengths of intuniv and that mylan is challenging one of shire’s
intuniv patents that was not challenged as part of the originally filed
anda within the requisite 45day period shire filed another lawsuit
against mylan in the us district court for the district of west virginia
the filing of the second lawsuit triggered a stay of approval of the
anda for up to 30 months 
in march 2011 shire was notified that sandoz had submitted an 
anda under the hatchwaxman act seeking permission to market 
a generic version of the 4mg strength of intuniv  within the requisite
45day period shire filed a lawsuit in the us district court for the
district of colorado against sandoz for infringement of certain of shire’s
intuniv patents the filing of the lawsuit triggered a stay of approval 
of this anda for up to 30 months shire was subsequently advised 
that sandoz amended its anda to include the 1mg 2mg and 3mg
strengths of intuniv  within the requisite 45day period shire filed
another lawsuit against sandoz in the us district court for the district
of colorado the filing of the lawsuit triggered a stay of approval 
of the 1mg 2mg and 3mg strengths for up to 30 months no trial 
date has been set
replagal
mt sinai school of medicine of new york university “mt sinai”
initiated lawsuits against shire in sweden on april 14 2010 and in
germany on april 20 2010 alleging that shire’s enzyme replacement
therapy “ert” for fabry disease replagal infringes mt sinai’s
european patent no 1 942 189 granted april 14 2010 mt sinai
sought injunctions against the use of replagal in these jurisdictions
until expiration of the patent mt sinai has been granted
supplementary protection certificates “spc” in respect of the 
patent in certain eu countries including sweden and germany 
which where granted extends the patent until august 2016 
where no spc has been granted the patent expires november 2013
shire filed an opposition against mt sinai’s patent before the 
european patent office “epo” on july 23 2010 and commenced
invalidity proceedings in the uk on december 8 2010 mt sinai has
counterclaimed alleging infringement in the uk proceedings a hearing
date has not been set for the swedish law suit the epo opposition
hearing was originally scheduled for march 2012 and has been re
scheduled for july 2012 the uk invalidity and infringement hearing
date is scheduled for may 2012
on january 18 2011 the german court found that replagal
infringes mt sinai’s patent and granted mt sinai’s request for an
injunction shire has appealed this decision but no hearing date has
been set as a result of the supply shortage for the only other ert for
fabry disease mt sinai had undertaken not to enforce the injunction
in germany prior to september 30 2011 on june 30 2011 mt sinai
extended its undertaking until december 31 2011 on october 4 2011
mt sinai again extended its undertaking not to enforce the german
injunction until march 31 2012 and on december 30 2011 mt sinai
further extended this undertaking not to enforce the german injunction
until june 30 2012 
8446 annual report 2011annual report 2011  15032012  1613  page 106 shire plc annual report 2011 107
financial statements
c annual report 2011
20 commitments and contingencies continued
fosrenol
in february 2009 shire was notified that three separate andas were
submitted under the hatchwaxman act seeking permission to market
generic versions of all approved strengths of fosrenol the notices
were received from barr laboratories inc “barr” mylan inc mylan
pharmaceuticals inc and matrix laboratories inc collectively “mylan
matrix” and natco pharma limited “natco” in december 2010 
shire was notified that alkem laboratories ltd “alkem” submitted 
an anda under the hatchwaxman act seeking permission to market
generic versions of all approved strengths of fosrenol within the
requisite 45day period shire filed lawsuits in the us district court for
the southern district of new york against each of barr mylanmatrix
and natco and in both the us district court for the southern district 
of new york and the us district court for the northern district of illinois
against alkem for infringement of certain of shire’s fosrenol patents
in april 2011 shire and barr reached a settlement which provides 
barr with a license to market its own generic version of fosrenol 
in the us but only after october 1 2021 or earlier under certain
circumstances no payments to barr are involved with the settlement
as a result of the settlement the lawsuit against barr was subsequently
dismissed the lawsuits against both mylanmatrix and alkem have
been dismissed and consequently each of mylanmatrix and alkem
may enter the market upon fda approval of their respective versions 
of generic fosrenol no trial date has been set with respect to
natco and a stay of approval of up to 30 months remains in effect
lialda 
in may 2010 shire was notified that zydus pharmaceuticals usa inc
“zydus” submitted an anda under the hatchwaxman act seeking
permission to market a generic version of lialda within the requisite
45day period shire filed a lawsuit in the us district court for the
district of delaware against zydus and cadila healthcare limited
doing business as zydus cadila the filing of the lawsuit triggered a
stay of approval of the anda for up to 30 months a markman hearing
is scheduled for april 26 2012 a trial is scheduled for october 8 2012
in february 2012 shire received a paragraph iv notice letter from
osmotica pharmaceutical corporation “osmotica” advising of the
filing of an anda for a generic version of lialda shire is currently
reviewing the details of osmotica’s paragraph iv notice letter 
under the hatchwaxman act shire has 45 days from the receipt 
of the notice letter to determine if it will file a patent infringement 
suit if shire brings a suit pursuant to the hatchwaxman regulations 
a stay of approval of up to 30months will be imposed by the fda 
on osmotica’s anda
adderall xr
on november 1 2010 impax filed suit against shire in the us district
court for the southern district of new york claiming that shire is in
breach of its supply contract for the authorized generic version of
adderall xr shire’s ability to supply this product is limited by quota
restrictions that the us drug enforcement administration places on
amphetamine which is the product’s active ingredient impax is
seeking specific performance equitable relief and damages shire 
has filed a counterclaim against impax seeking damages and a
declaratory judgment that shire has satisfied its obligations under 
the supply contract a trial is scheduled for april 10 2012
in february 2011 shire was notified that watson laboratories inc
“watson laboratories” submitted an anda under the hatchwaxman
act seeking permission to market a generic version of all approved
strengths of adderall xr this new anda is not covered under 
the existing settlement agreements entered into in november 2007
between shire and watson pharmaceuticals inc the “settlement
agreements” the settlement agreements cover a different anda and
do not provide any license for watson laboratories to sell the products
covered in watson laboratories’ new anda within the requisite 
45day period shire filed a lawsuit in the us district court for the
southern district of new york against watson pharmaceuticals inc
watson laboratories incflorida watson pharm inc andrx
corporation and andrx pharmaceuticals llc for infringement 
of certain of shire’s adderall xr patents and also for breach of
contract in connection with the settlement agreements the filing 
of the lawsuit triggered a stay of approval of this anda for up 
to 30 months a markman hearing is scheduled for june 7  2012 
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 covers whether shire engaged in offlabel promotion 
and other conduct that may implicate the civil false claims act 
shire is cooperating fully with this investigation at this time shire 
is unable to predict the outcome or duration of this investigation
8446 annual report 2011annual report 2011  15032012  1614  page 107 shire plc annual repo 108 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
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 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 and euro interest rates as the company maintains 
all of its cash liquid investments and foreign exchange contracts on a
shortterm basis for liquidity purposes this risk is not actively managed
in the year to december 31 2011 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
the company incurs interest at a fixed rate of 275 on 1100 million
in principal amount convertible bonds due 2014 
no derivative instruments were entered into during the year to
december 31 2011 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 shire to concentrations 
of credit risk consist primarily of shortterm cash investments trade
accounts receivable from product sales and from third parties from
which the company receives royalties and derivative contracts cash
is invested in shortterm 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 require
counterparties to have a longterm credit rating of aa3 or better from
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 2011 there were three customers
in the us that accounted for 49 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 our financial condition and results of operations
a substantial portion of the company’s accounts receivable in
countries outside of the us 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 2011 the creditworthiness and general
economic condition of a number of eurozone countries including
greece ireland italy portugal and spain the “relevant countries” 
has continued to deteriorate 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’s aggregate accounts receivable net of the allowance for doubtful accounts in total and from governmentowned or government
supported healthcare providers in the relevant countries are as follows
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
total accounts receivable net in the relevant countries                                                                                                           184                     144 
total accounts receivable net in the relevant countries as a percentage of total outstanding 
accounts receivable net                                                                                                                                                      22                    21
accounts receivable net due from governmentowned or governmentsupported healthcare providers 
for the relevant countries                                                                                                                                                     170                     126 
accounts receivable due from governmentowned or government
supported healthcare providers in the relevant countries of 
170 million 2010 126 million are split by country as follows 
greece 4 million 2010 8 million ireland 1 million 2010 1 million
italy 81 million 2010 60 million portugal 14 million 2010 
5 million and spain 70 million 2010 52 million
in 2011 the company received 193 million in settlement of accounts
receivable in the relevant countries—11 million was from greece
including 21 million in the form of greek government bonds
“ggbs” 18 million from ireland 94 million from italy 5 million 
from portugal and 65 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 ggbs principal amount 21 million carrying value
07 million as at december 31 2011 and accounts receivable from
governmentowned or governmentsupported 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
8446 annual report 2011annual report 2011  15032012  1614  page 108 shire plc annual report 2011 109
financial statements
c annual report 2011
21 financial instruments continued
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 inter company financing accruals for royalty receipts and specific
external receivables 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 2011 the company had 20 swap and forward foreign
exchange contracts outstanding to manage currency risk the swaps
and forward contracts mature within 90 days the company did not
have credit risk related contingent features or collateral linked to the
derivatives at december 31 2011 the fair value of these contracts 
was a net asset of 30 million further details are included below
                                                                                                                                                                                                                                           fair value                    fair value
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
assets prepaid expenses and other current assets                                                                                                              34                      37
liabilities other current liabilities                                                                                                                                                04                      27 
net gains both realized and unrealized arising on foreign exchange contracts have been classified in the consolidated statements of income 
as follows 
location of net gain                                                     amount of net gain
recognized in income                                                recognized in income
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
year to                                                                                                                                                                                                                                      ’m                           ’m
foreign exchange contracts                                                                             other income net                                           213                    248
these net foreign exchange gains 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 
22 fair value measurement
assets and liabilities that are measured at fair value on a recurring basis
at december 31 2011 and december 31 2010 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
                                                                                                                                                                            total                       level 1                       level 2                       level 3
at december 31 2011                                                                                             ’m                            ’m                            ’m                            ’m                            ’m
financial assets
available for sale securities
1
                                                                  74                      74                      74                          –                          –
contingent consideration receivable
2
                                                  378                    378                          –                          –                    378
foreign exchange contracts                                                                   34                      34                          –                      34                          –
financial liabilities                                                                                                                                                                        
foreign exchange contracts                                                                   04                      04                          –                      04                          –
                                                                                                                                                                              total                        level 1                       level 2                       level 3
at december 31 2010                                                                                               ’m                            ’m                            ’m                            ’m                            ’m
financial assets
available for sale securities
1
                                                                839                    839                    839                          –                          –
contingent consideration receivable
2
                                                  610                     610                          –                          –                     610 
foreign exchange contracts                                                                   37                      37                          –                      37                          –
financial liabilities                                                                                                                                                                        
foreign exchange contracts                                                                   27                      27                          –                      27                          –
1 available for sale 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
8446 annual report 2011annual report 2011  15032012  1614  page 109 shire plc annual repo 110 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
22 fair value measurement continued
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
� available for sale securities—the fair values of available for sale
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 discounted cash flow method this discounted
cash flow approach uses significant unobservable inputs such 
as future sales of the divested product relevant contractual royalty
rates an appropriate discount rate and assumed weightings applied
to scenarios used in deriving a probability weighted fair value
� 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
assets 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 which is measured at fair value on a recurring basis using
significant unobservable inputs level 3 is as follows
                                                                                                                                                                                                                                                                            contingent
                                                                                                                                                                                                                                                                        consideration
                                                                                                                                                                                                                                                                             receivable
                                                                                                                                                                                                                                                                                       2011 
                                                                                                                                                                                                                                                                                        ’m
balance at january 1                                                                                                                                                                                           610
loss recognized in the income statement due to change in fair value during the period                                                                                      60
reclassification of amounts due from noven to other receivables within other current assets                                                                          165
foreign exchange translation recorded to other comprehensive income                                                                                                              07
balance at december 31                                                                                                                                                                                    378
assets measured at fair value on a nonrecurring basis using significant unobservable inputs level 3
in the year to december 31 2011 the company reviewed certain of its indefinite lived iprd intangible assets “iprd assets” for impairment 
and recognized an impairment charge of 160 million recorded within rd in the consolidated income statement to write down these iprd
assets to their fair value the fair value of these iprd assets was determined using the income approach which used significant unobservable
level 3 inputs these unobservable inputs included inter alia riskadjusted forecast future cash flows to be generated by these iprd assets
contributory asset charges for other assets employed in these iprd projects 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 iprd assets determined at the time of the impairment
review was 1080 million 
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 2011 and december 31 2010 of the company’s financial assets and liabilities
which are not measured at fair value on a recurring basis are as follows
                                                                                                                                                                          december 31 2011                                      december 31 2010
                                                                                                                                                                       carrying                                                        carrying
                                                                                                                                                                         amount                  fair value                      amount                    fair value
                                                                                                                                                                               ’m                            ’m                            ’m                            ’m
financial liabilities
convertible bonds                                                                                                       11000               13097                11000                11398
building financing obligation                                                                                               82                      97                      84                      82
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
� convertible bonds—the fair value of shire’s 1100 million 275 convertible bonds due 2014 is determined by reference to the market price 
of the instrument as the convertible bonds are publicly traded
� 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 cash and cash equivalents restricted cash accounts receivable accounts payable and accrued expenses materially
approximate to fair value because of the shortterm maturity of these amounts
8446 annual report 2011annual report 2011  15032012  1614  page 110 shire plc annual report 2011 111
financial statements
c annual report 2011
23 shareholders’ equity
authorized common stock
the authorized stock of shire plc as at december 31 2011 was
1000000000 ordinary shares and two 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 2011 shire plc’s distributable reserves were
approximately 95 billion
treasury stock 
the company records the purchase of its own shares by the esot 
as a reduction of shareholders’ equity based on the price paid for the
shares at december 31 2011 the esot held 46 million ordinary
shares 2010 44 million 2009 58 million and 24 million adss 2010
32 million 2009 40 million during the year to december 31 2011 
a total of 27 million 2010 002 million 2009 01 million ordinary
shares and 08 million 2010 002 million 2009 002 million adss 
had been purchased for total consideration of 1518 million 2010
17 million 2009 10 million including stamp duty and broker
commission 
income access share arrangements “ias trust”
shire has put into place income access arrangements which 
enable shire ordinary shareholders other than shire ads holders 
to choose whether they receive their dividends from shire a company
resident for tax purposes in the republic of ireland or from shire
biopharmaceuticals holdings “old shire” a shire group company
resident for tax purposes 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 shehe 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 shehe 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 shehe 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 shehe 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 
shire 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 2011 old shire paid dividends 
totaling 67 6 million 2010 583 million 2009 459 million on 
the income access share to the trustee in an amount equal to the
dividend ordinary shareholders would have received from shire plc 
8446 annual report 2011annual report 2011  15032012  1614  page 111 shire plc annual repo 112 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
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
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
amounts attributable to shire plc shareholders
income from continuing operations net of taxes                                                                                       8650                  5880                  5038 
loss from discontinued operations                                                                                                                   –                          –                    124
net loss attributable to non controlling interest in subsidiaries                                                                          –                          –                      02 
numerator for basic earnings per share                                                                                                     8650                  5880                   4916 
interest on convertible bonds net of tax
1
                                                                                                   336                    335                          –
numerator for diluted earnings per share                                                                                                   8986                   6215                   4916 
                                                                                                                                                                                                            millions                       millions                       millions
weighted average number of shares                                                                                 
basic
2
                                                                                                                                                        5511                  5462                  5407 
effect of dilutive shares                                                                                                           
sharebased awards to employees
3
                                                                                                           109                    109                       7 3 
convertible bonds 275 due 2014
4
                                                                                                          334                    332                         –
diluted                                                                                                                                                        5954                  5903                  5480 
1 for the year to december 31 2009 interest on the convertible bonds has not been added back as the effect would be anti dilutive
2 excludes shares purchased by the esot and presented by the company as treasury stock
3 calculated using the treasury stock method
4 calculated using the “ifconverted” method
year to december 31                                                                                                                                                                  2011                           2010                          2009
earnings per ordinary share—basic
earnings from continuing operations attributable to shire plc shareholders                                             1569¢                 107 7¢                  932¢
loss from discontinued operations attributable to shire plc shareholders                                                         –                          –                   23¢
earnings per ordinary share attributable to shire plc shareholders—basic                                             1569¢                 107 7¢                  909¢
earnings per ordinary share—diluted                                                                                
earnings from continuing operations attributable to shire plc shareholders                                             1509¢                1053¢                   919¢
loss from discontinued operations attributable to shire plc shareholders                                                         –                          –                   22¢
earnings per ordinary share attributable to shire plc shareholders—diluted                                           1509¢                1053¢                  897¢
the share equivalents not included in the calculation of the diluted weighted average number of shares are shown below
                                                                                                                                                                                                                 2011                           2010
                                       
2009
                                                                                                                                                                                                           number                      number                      number
                                                                                                                                                                                                         of shares                   of shares                   of shares
                                                                                                                                                                                                            millions                       millions                       millions
share awards
1
                                                                                                                                              29                      54                    164 
convertible bonds 275 due 2014
2
                                                                                                               –                          –                    332 
1 certain stock options have been excluded from the calculation of diluted eps because a their exercise prices exceeded shire plc’s average share price during the calculation
period or b satisfaction of the required performancemarket conditions cannot be measured until the conclusion of the performance period
2 for the year to december 31 2009 the ordinary shares underlying the convertible bonds have not been included in the calculation of the diluted weighted average number 
of shares as the effect of their inclusion would be anti dilutive
8446 annual report 2011annual report 2011  15032012  1614  page 112 shire plc annual report 2011 113
financial statements
c annual report 2011
25 segmental reporting
shire’s internal financial reporting is in line with its business unit and management reporting structure in the year to december 31 2011 following
the acquisition of abh an organizational realignment was carried out following this reorganization the company now has three business units
and three segments sp  hgt and rm the rm segment currently comprises the abh business the sp  hgt and rm reportable segments
represent the company’s revenues and costs for currently promoted and sold products together with the costs of developing projects for future
commercialization “all other” has been included in the table below in order to reconcile the three segments to the total consolidated figures
the company evaluates performance based on revenue and operating income the company does not have intersegment transactions 
assets that are directly attributable or allocable to the segments have been separately disclosed 
                                                                                                                                             sp                           hgt                             rm                    all other                           total
2011                                                                                                            ’m                            ’m                            ’m                            ’m                            ’m
product sales                                                                                  26156               12293                  1053                          –               39502 
royalties                                                                                             1996                          –                          –                   839                  2835 
other revenues                                                                                     245                      12                          –                     40                    297 
total revenues                                                                               28397               12305                  1053                    879               42634
cost of product sales
1
                                                                       3517                  2000                    364                          –                  5881 
research and development
1
                                                             4491                  3154                      62                          –                  7707 
selling general and administrative
1
                                                11313                  3406                    644                   2151               17514
loss on sale of product rights                                                                60                          –                          –                          –                      60 
reorganization costs                                                                            118                          –                          –                    125                    243 
integration and acquisition costs                                                            01                          –                    136                          –                    137 
total operating expenses                                                             19500                  8560                  1206                  2276               31542 
operating incomeloss                                                                     8897                  3745                   153                1397              11092 
total assets                                                                                     24217               18494                  9677                11414               63802 
longlived assets
2
                                                                             1268                  7208                    229                    632                  9337 
capital expenditure on longlived assets
2
                                           544                  1294                      15                    189                  2042 
1 depreciation from manufacturing plants 398 million and amortization of favorable manufacturing contracts 17 million is included in cost of product sales depreciation 
of research and development assets 252 million and impairment of iprd intangible assets in the sp reporting segment 160 million is included in research and
development and all other depreciation and amortization 2281 million is included in selling general and administrative
2 longlived assets comprise all noncurrent assets excluding goodwill and other intangible assets deferred contingent consideration assets deferred tax assets investments
income tax receivable and financial instruments
                                                                                                                                              sp                           hgt                             rm                     all other                           total
2010                                                                                                            ’m                            ’m                            ’m                            ’m                            ’m
product sales                                                                                  22192                  9090                          –                          –               31282
royalties                                                                                             1733                          –                          –                  1548                  3281
other revenues                                                                                       7 1                      26                          –                      51                    148
total revenues                                                                               23996                   9116                          –                  1599                34711
cost of product sales
1
                                                                      3321                  1293                          –                      20                  4634
research and development
1
                                                             3489                  3122                          –                      04                   6615
selling general and administrative
1
                                                10358                   297 7                          –                  1928                15263
gain on sale of product rights                                                              165                         –                          –                          –                    165
reorganization costs                                                                            130                          –                          –                     213                    343
integration and acquisition costs                                                            80                          –                          –                          –                      80
total operating expenses                                                              17213                  7392                          –                  2165                2677 0
operating incomeloss                                                                     6783                  1724                          –                   566                 7941
total assets                                                                                     24835                17869                          –                 1117 2                5387 6
longlived assets
2
                                                                             1547                  6554                          –                     47 3                   857 4
capital expenditure on longlived assets
2
                                            218                   2811                          –                    129                  3158
1 depreciation from manufacturing plants 381 million and amortization of favorable manufacturing contracts 17 million is included in cost of product sales depreciation 
of research and development assets 190 million is included in research and development and all other depreciation amortization and impairment charges 2383 million
is included in selling general and administrative
2 longlived assets comprise all noncurrent assets excluding goodwill and other intangible assets deferred contingent consideration assets deferred tax assets investments
income tax receivable and financial instruments
8446 annual report 2011annual report 2011  15032012  1614  page 113 shire plc annual repo 114 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
25 segmental reporting continued
                                                                                                                                              sp                           hgt                             rm                     all other                           total
2009                                                                                                                                  ’m                            ’m                            ’m                            ’m                            ’m
product sales                                                                                  21382                  5555                          –                          –               26937
royalties                                                                                             127 2                          –                          –                  1653                  2925
other revenues                                                                                       99                      26                          –                      90                     215
total revenues                                                                                 22753                  5581                          –                   1743                3007 7
cost of product sales
1
                                                                      2993                    887                          –                          –                  3880
research and development
1
                                                             3750                  2588                          –                      61                  6383
selling general and administrative
1
                                                   9544                  2087                          –                  1795                13426
gain on sale of product rights                                                               63                         –                          –                          –                     63
reorganization costs                                                                            127                          –                          –                          –                    127
integration and acquisition costs                                                            29                       7 7                          –                          –                    106
total operating expenses                                                                 16380                  5639                          –                  1856                2387 5
operating incomeloss                                                                      637 3                     58                         –                    113                 6202
total assets                                                                                      2067 1                15761                          –                  9743                4617 5
longlived assets
2
                                                                             2026                  4224                          –                    556                  6806
capital expenditure on longlived assets
2
                                           469                  1944                          –                    180                  2593
1 depreciation from manufacturing plants 218 million and amortization of favorable manufacturing contracts 17 million is included in cost of product sales depreciation 
of research and development assets 155 million is included in research and development and all other depreciation and amortization 2047 million is included in selling
general and administrative
2 longlived assets comprise all noncurrent assets excluding goodwill and other intangible assets deferred tax assets investments income tax receivable and financial
instruments
geographic information
revenues based on the geographic location from which the sale originated
                                                                                                                                                                                                                 2011                           2010                          2009
year to december 31                                                                                                                                                                    ’m                            ’m                            ’m
ireland                                                                                                                                                           211                     211                    195 
united kingdom                                                                                                                                         2199                  2039                  1639 
north america                                                                                                                                         28671               23331                21413 
rest of world                                                                                                                                          11553                  9130                  6830 
total revenues                                                                                                                                       42634                34711                3007 7 
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 
                                                                                                                                                                                                                 2011                           2010
year to december 31                                                                                                                                                                    ’m                            ’m
ireland                                                                                                                                                            29                          –
united kingdom                                                                                                                                           737                    709 
north america                                                                                                                                            8410                   777 8 
rest of world                                                                                                                                                161                      87 
total                                                                                                                                                          9337                   857 4 
8446 annual report 2011annual report 2011  15032012  1614  page 114 shire plc annual report 2011 115
financial statements
c annual report 2011
25 segmental reporting continued
material customers
in the periods set out below certain customers all within the sp operating segment accounted for greater than 10 of the company’ s product
revenues
                                                                                                       2011                           2011                           2010                           2010                          2009                          2009
year to december 31                                                           ’m                 revenue                            ’m                   revenue                            ’m                   revenue
cardinal health inc                                                9239                       23                   7912                       25                   797 0                       27
mckesson corp                                                    7429                        19                  5743                        19                  5763                        19
amounts outstanding as at december 31 in respect of these material customers were as follows
                                                                                                       2011                           2010
december 31                                                                           ’m                            ’m
cardinal health inc                                                1721                  1433
mckesson corp                                                     1014                    930
revenue by product
in the periods set out below revenues by major product were as follows
                                                                                                       2011                           2010                          2009
                                                                                                         ’m                            ’m                            ’m
specialty pharmaceuticals
vyvanse                                                               8050                  6342                  5047 
adderall xr                                                       5328                  3608                  6265 
intuniv                                                                 2230                  1659                      54 
equasym                                                                199                    220                    228 
daytrana                                                                   –                    494                     710 
lialdamezavant                                               3721                  2934                  2359 
pentasa                                                               2514                  2359                  2148
resolor                                                                   61                      03                          –
fosrenol                                                             1669                  1821                  1844 
xagrid                                                                    906                     87 3                    848 
carbatrol                                                            523                    823                    824 
other                                                                        955                  1056                  1055 
                                                                            26156               22192               21382 
human genetic therapies
replagal                                                             4752                  3513                  1938 
elaprase                                                             4649                 4036                 3531 
vpriv                                                                     2562                  1430                     25 
firazyr                                                                  330                    111                     61 
                                                                            12293                  9090                  5555 
regenerative medicine
dermagraft                                                       1053                          –                          –
                                                                               1053                          –                          –
                                                                            39502               31282               26937
8446 annual report 2011annual report 2011  15032012  1614  page 115 shire plc annual repo 116 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
26 other incomeexpense net
                                                                                                                                                                                                                 2011                           2010                          2009
year to december 31                                                                                                                                                                    ’m                            ’m                            ’m
gain on sale of noncurrent investments see note 11                                                                                235                     111                    552 
loss on extinguishmentgain on substantial modification of building finance obligation
see note 18                                                                                                                                                     –                     36                     57 
other                                                                                                                                                             54                     04                     02
                                                                                                                                                                 181                       7 9                    607 
27 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 totaled 444 million 318 million and 27 9 million for the years 
to december 31 2011 2010 and 2009 respectively and were charged to operations as they became payable
28 taxation
the components of pre tax income from continuing operations are as follows
                                                                                                                                                                                                                 2011                           2010                          2009
year to december 31                                                                                                                                                                    ’m                            ’m                            ’m
republic of ireland                                                                                                                                      659                 1700                2323
uk                                                                                                                                                                453                    354                    628 
us                                                                                                                                                              7476                  7455                  5522 
other jurisdictions                                                                                                                                      3631                  1584                  2603 
                                                                                                                                                                10901                  7693                  6430 
the provision for income taxes by location of the taxing jurisdiction for the years to december 31 2011 2010 and 2009 consisted of the following
                                                                                                                                                                                                                 2011                           2010                          2009
year to december 31                                                                                                                                                                    ’m                            ’m                            ’m
current income taxes
republic of ireland                                                                                                                                         18                         –                          –
us federal tax                                                                                                                                             1931                  1764                  1543 
us state and local taxes                                                                                                                                90                      66                    144 
other                                                                                                                                                            400                    259                    168 
total current taxes                                                                                                                                  2403                 2089                  1855 
deferred taxes                                                                                                                     
republic of ireland                                                                                                                                            –                          –                      10
us federal tax                                                                                                                                              225                     60                   245
us state and local taxes                                                                                                                               46                    98                   322
uk corporation tax                                                                                                                                        10                    01                     61 
other                                                                                                                                                           296                   103                     46 
total deferred taxes                                                                                                                                  127                  262                   47 0
total income taxes
1
                                                                                                                                2276                  1827                  1385 
1 total income taxes relate solely to continuing operations as there is no tax provisionbenefit relating to discontinued operations for the years to december 31 2011 2010 
or 2009 
8446 annual report 2011annual report 2011  15032012  1614  page 116 shire plc annual report 2011 117
financial statements
c annual report 2011
28 taxation continued
the reconciliation of income from continuing operations before income taxes non controlling 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
                                                                                                                                                                                                                 2011                           2010                          2009
year to december 31                                                                                                                                                                    ’m                            ’m                            ’m
income from continuing operations before income taxes and equity
in earnings of equity method investees                                                                                              10901                  7693                  6430 
statutory tax rate
1
                                                                                                                                   250                 250                 250
adjustments to derive effective rate                                                                                       
nondeductable items                                                                                                            
us rd credit                                                                                                                                       47                 57                 52
effect of the convertible bond                                                                                                                 08                   18                   20
intangible asset amortization
2
                                                                                                                      –                          –                   01
intragroup items
3
                                                                                                                                77               120                118
other permanent items                                                                                                                          04                  08                   22
other items                                                                                                                             
change in valuation allowance                                                                                                               21                   51                   13
difference in taxation rates                                                                                                                     45                  110                   85
change in provisions for uncertain tax positions                                                                                    13                  22                   23
prior year adjustment                                                                                                                              08                  42                 27
change in tax rates                                                                                                                                 14                         –                   19
other                                                                                                                                                      04                  02                 21
provision for income taxes on continuing operations                                                                        209                 238                 215
1 in addition to being subject to the irish corporation tax rate of 25 in 2011 the company is also subject to income tax in other territories in which the company operates
including canada 165 france 333 germany 15 italy 27 5 luxembourg 210 malta 35 the netherlands 255 belgium 3399 spain 30
sweden 263 switzerland 85 united kingdom 263 and the us 35 the rates quoted represent the headline 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 the permanent difference results from tax deductible amortization available following inter company asset transfers for which the recognition of a deferred tax asset 
is prohibited
3 intragroup items principally relate to the effect of inter company dividends capital receipts either taxable or nontaxable and other intraterritory eliminations 
the pre tax effect of which has been eliminated in arriving at the company’s consolidated income from continuing operations before income taxes non controlling 
interests and equity in earningslosses of equity method investees
4 certain of our activities operate under a tax holiday which is effective through december 2021 the impact of the tax holiday is to reduce the effective tax rate 
by 17 during 2011 2010 increase in the effective tax rate by 02 2009 nil effect
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
a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
balance at january 1                                                                                                                                 2908                  2540                  2287 
increases based on tax positions related to the current year                                                                       182                    124                      42 
decreases based on tax positions taken in the current year                                                                         25                     17                     02
increases for tax positions taken in prior years                                                                                               14                    180                    252 
decreases for tax positions taken in prior years                                                                                          120                    32                   194
decreases resulting from settlements with the taxing authorities                                                                257                    65                   161
decreases as a result of expiration of the statute of limitations                                                                     05                         –                          – 
foreign currency translation adjustments
1
                                                                                                   42                    17 8                     316 
balance at december 31
2
                                                                                                                        2655                  2908                  2540 
1 recognized within other comprehensive income
2 the full amount of which would affect the effective rate if recognized
8446 annual report 2011annual report 2011  15032012  1614  page 117 shire plc annual repo 118 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
28 taxation continued
the company considers it reasonably possible that the total amount 
of unrecognized tax benefits recorded at december 31 2011 will 
not materially decrease in the next twelve months as a result of the
conclusion of audits currently being conducted by various tax
authorities 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 an increase cannot be made 
at december 31 2011 the company had a valuation allowance of
2118 million 2010 2000 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 2011 685 million 2010 77 2 million the us 2011 
339 million 2010 445 million germany 2011 807 million 
2010 490 million and other foreign tax jurisdictions 2011 
287 million 2010 293 million
the net increase in valuation allowances of 118 million is principally
due to increases of losses and other temporary differences in european
jurisdictions as the company’s management considers that there is
insufficient future taxable income taxable temporary differences and
feasible taxplanning strategies to overcome cumulative losses and
therefore it is more likely than not that the relevant deferred tax assets
will not be realized in full
at december 31 2011 based upon a consideration in combination 
of the profit history of the relevant affiliates projections of future 
taxable income over the periods in which temporary differences are
anticipated to reverse any restrictions on uses of loss carryforwards
and prudent and feasible taxplanning strategies 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 future periods
the company is required in certain tax jurisdictions to make advance
deposits to tax authorities on receipt of a tax assessment these
payments have been offset against the income tax liability within the
balance sheet but have not reduced the provision for unrecognized 
tax benefits
the company recognizes interest and penalties accrued related 
to unrecognized tax benefits within income taxes during the years
ended december 31 2011 2010 and 2009 the company recognized 
40 million 10 million and 213 million in interest and penalties 
and the company had a liability of 1145 million and 1105 million 
for the payment of interest and penalties accrued at december 31
2011 and 2010 respectively
deferred taxes
the significant components of deferred tax assets and liabilities and their balance sheet classifications as at december 31 are as follows
                                                                                                                                                                                                                                     december 31            december 31
                                                                                                                                                                                                                                                   2011                          2010
                                                                                                                                                                                                                                                     ’m                           ’m
deferred tax assets
deferred revenue                                                                                                                                                                        60                      92 
inventory and warranty provisions                                                                                                                                           433                    331 
losses carried forward including tax credits                                                                                                                        3848                  3143 
provisions for sales deductions and doubtful accounts                                                                                                          1195                   1013 
restructuring                                                                                                                                                                             07                       11 
intangible assets                                                                                                                                                                      440                    147 
sharebased compensation                                                                                                                                                     348                    425 
excess of tax value over book value of fixed assets                                                                                                                      –                    243 
other                                                                                                                                                                                        341                    286 
gross deferred tax assets                                                                                                                                                      6672                  5691 
less valuation allowance                                                                                                                                                      2118                2000
                                                                                                                                                                                           4554                  3691 
deferred tax liabilities                                                                              
intangible assets                                                                                                                                                                   6915                4332
excess of book value over tax value of assets                                                                                                                        222                         –
net deferred tax liabilities                                                                                                                                                  2583                  641
balance sheet classifications                                                                      
deferred tax assets—current                                                                                                                                                 2076                  1820 
deferred tax assets—noncurrent                                                                                                                                           507                   1104 
deferred tax liabilities—current                                                                                                                                                      –                     44
deferred tax liabilities—noncurrent                                                                                                                                      5166                3521
                                                                                                                                                                                          2583                  641
8446 annual report 2011annual report 2011  15032012  1614  page 118 shire plc annual report 2011 119
financial statements
c annual report 2011
28 taxation continued
the approximate tax effect of nols capital losses and tax credit carryforwards as at december 31 are as follows
                                                                                                                                                                                                                 2011                           2010
                                                                                                                                                                                                                  ’m                            ’m
us federal tax nols                                                                                                                                    453                    147 
us state tax nols                                                                                                                                       198                    166 
uk nols                                                                                                                                                      248                    304 
republic of ireland nols                                                                                                                             580                    660 
foreign tax jurisdictions                                                                                                                              1747                    804 
rd tax credits                                                                                                                                            621                  1062 
the approximate gross value of nols and capital losses at december 31 2011 is 16101 million 2010 11783 million the tax effected nols
capital losses and tax credit carryforwards shown above have the following expiration dates
                                                                                                                                                                                                  december 31                                  
                                                                                                                                                                                                                2011
                                                                                                                                                                                                                  ’m
within 1 year                                                                                                                                                  01 
within 2 to 3 years                                                                                                                                        08 
within 3 to 4 years                                                                                                                                         11 
within 4 to 5 years                                                                                                                                        18
within 5 to 6 years                                                                                                                                        33 
after 6 years                                                                                                                                              1154 
indefinitely                                                                                                                                                 2622 
we do 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 2011 that excess totaled 62 billion 2010 58 billion the determination of the additional
deferred taxes that have not been provided is not practicable
29 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
                                                                                                                                                                                                                 2011                           2010                          2009
                                                                                                                                                                                                                  ’m                            ’m                            ’m
cost of product sales                                                                                                                                     88                       7 0                      44 
research and development                                                                                                                         218                    168                    201 
selling general and administrative                                                                                                               451                    384                     412 
total                                                                                                                                                             757                    622                    657 
less tax                                                                                                                                                      236                   17 2                   194
                                                                                                                                                                     521                    450                    463 
there were no capitalized sharebased compensation costs at december 31 2011 and 2010
at december 31 2011 1141 million 2010 948 million of total unrecognized compensation cost relating to nonvested awards is expected 
to be recognized over a period of three years 
at december 31 2011 1000 million 2010 731 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 18 years 2010 1 8 years 
the total fair value of in the money awards vested during the year to december 31 2011 was 87 4 million 2010 493 million
8446 annual report 2011annual report 2011  15032012  1614  page 119 shire plc annual repo 120 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
29 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 in 2010 the company amended the rules of the
shire portfolio share plan effective on a prospective basis for newly
granted awards the “amendment” after the amendment 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 amendments had the following principal effect on the terms and
conditions of sars and psas i the contractual life of sars has been
extended from five to seven years ii the vesting period of sars and
psas granted to employees below the level of executive vice president
allows for graded vesting rather than mandatory cliff 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 
as defined in the amendments “non gaap ebitda” rather than the
previous market based condition of total shareholder return 
the company also operates an employee share purchase plan and 
a sharesave scheme
the following awards were outstanding as at december 31 2011
                                                                             expiration 
compensation                        number              period from
type                                      of awards             date of issue                        vesting period
portfolio share plan—part a sars                     21600470           5 to 7 years                3 years cliff or graded vesting 
subject to market or performance
criteria for executive directors only
sharesave scheme stock options           328746           6 months                    3 or 5 years
                                                             after vesting               
stock purchase plan stock options           793706           on vesting                  1 to 5 years
                                                             date
legacy plans stock options           675526           7 to 10 years               3 to 10 years subject to market 
or performance criteria
stocksettled sars and                               23398448
stock options
portfolio share plan—part b performance           5709744           3 years                        3 years cliff or graded vesting
share awards                                                                           subject to market or performance
                                                                                                  criteria for executive directors only
performance share awards                                 5709744 
number of awards are stated in terms of ordinary share equivalents
stocksettled sars and stock options
a portfolio share plan—part a
stocksettled share appreciation rights granted under the portfolio
share plan—part a prior to the amendments are exercisable 
subject to certain market and service criteria stocksettled share
appreciation rights granted under the portfolio share plan—part a
subsequent to the amendments are exercisable subject to
performance and service criteria 
in respect of any awards made to executive directors prior to the
amendments the market conditions are based on relative total
shareholder return vesting of awards granted to executive directors
will depend on relative total shareholder return performance against
two comparator groups for one third of the award the comparator
group will be the financial times stock exchange 100 constituents
excluding financial institutions and for two thirds of the award the
comparator group will be a group of international companies from the
pharmaceutical sector in addition before awards granted to executive
directors will vest the remuneration committee must be satisfied that
the underlying performance of the company is sufficient to justify this
where median performance is achieved 33
1
⁄3 of stocksettled share
appreciation rights will vest rising on a straightline basis to full vesting
at upper quartile performance
in respect of any award made to executive directors subsequent to
amendments performance criteria are based on non gaap 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 market or performance conditions and are only subject
to service conditions 
once awards have vested participants will have until the fifth
anniversary for awards granted prior to the amendments or seventh
anniversary for awards granted subsequent to the amendments 
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 of the midmarket price on the day before
invitations are issued to employees employees may enter into three or
fiveyear 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 27 months no performance conditions apply
8446 annual report 2011annual report 2011  15032012  1614  page 120 shire plc annual report 2011 121
financial statements
c annual report 2011
29 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 2011 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 2011 and of the related transactions during the period
then ended is presented below
                                                                                                                                                                                          weighted average                     number                                   
                                                                                                                                                                                                 exercise price                   of shares          intrinsic value
year to december 31 2011                                                                                                                                                             £                                                               £’m
outstanding as at beginning of period                                                                                                       1036         29545584                           
granted                                                                                                                                                      1784           7551373                           
exercised                                                                                                                                                     771        12459335                          
expired                                                                                                                                                       1226          1239174                          
outstanding as at end of period                                                                                                                 1283         23398448                  2247
exercisable as at end of period                                                                                                                839           4384592                    616
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 2011 was £468
sars and stock options outstanding as at december 31 2011 have the following characteristics
                                                                                                                                                                                          weighted average                                       weighted average
                                                                                                                                                       weighted average           exercise price                     number           exercise price
                                                                                                                                    exercise                  remaining                  of awards                  of awards                  of awards
                                                                                                                                        prices      contractual term              outstanding               exercisable               exercisable
number of awards outstanding                                                                            £                        years                                £                                                                    £
622621                                                                                       338–700                      47                    541              595648                      53 
11780747                                                                                701–1400                      37                    821           2909836                      72
10995080                                                                              1401–2124                      57                    168              879108                    146 
23398448                                                                                                                                                                     4384592                           
number of awards are stated in terms of ordinary share equivalents
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 prior to the
amendments the market conditions are based on relative total
shareholder return vesting will depend on relative total shareholder
return performance against two comparator groups for one third 
of an award the comparator group will be the financial times stock
exchange 100 constituents excluding financial institutions and 
for two thirds of the award the comparator group will be a group 
of international companies from the pharmaceutical sector in addition
before awards granted to executive directors will vest the committee
must be satisfied that the underlying performance of the company 
is sufficient to justify this where median performance is achieved
33
1
⁄3 of performance shares will vest rising on a straightline basis 
to full vesting at upper quartile performance
in respect of any award granted to executive directors subsequent 
to the amendments the performance criteria are based on non gaap
ebitda and adjusted roic targets
awards granted to employees below executive director level are not
subject to market or 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 2011 and of the related transactions during the period
then ended is presented below
                                                                                                                                                                                                                                          aggregate    weighted average
                                                                                                                                                                                                           number          intrinsic value            remaining life
performance share awards                                                                                                                                               of shares                           £’m                        years 
outstanding as at beginning of period                                                                                               6391007                                                       
granted                                                                                                                                               1885525                                                       
exercised                                                                                                                                           2299295                                                      
expired                                                                                                                                                 267493                                                      
outstanding as at end of period                                                                                                      5709744                   1281                      15
exercisable as at end of period                                                                                                                     –                      na                      na
number of awards are stated in terms of ordinary share equivalents
8446 annual report 2011annual report 2011  15032012  1614  page 121 shire plc annual repo 122 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
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 post
vesting employment termination behavior 
� 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
29 sharebased compensation plans continued
the weighted average grant date fair value of performance share
awards granted in the year to december 31 2011 is £1804
exercises of employee sharebased awards
the total intrinsic values of sharebased awards exercised for the 
years to december 31 2011 2010 and 2009 were 1893 million
703 million and 438 million respectively the total cash received
from employees as a result of employee share option exercises for 
the period to december 31 2011 2010 and 2009 was approximately
134 million 112 million and 146 million respectively in connection
with these exercises the excess tax benefit credited to additional 
paidin capital for the years to december 31 2011 2010 and 2009 
was 294 million 29 million and 168 million respectively
the company will settle future employee share award exercises with
either newly listed common shares or with shares held in the esot 
the number of shares to be purchased by the esot during 2012 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
2011 the esot held 46 million ordinary shares and 24 million adss
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                                                                                                                                                    2011                           2010                          2009
riskfree interest rate
1
                                                                                                                        01–25            05–30            05–27
expected dividend yield                                                                                                                          0–05               0–06               0–07
expected life                                                                                                                                       1–5 years            1–5 years            3–4 years
volatility                                                                                                                                                  19–33              22–32              31–33
forfeiture rate                                                                                                                                            5–7                  5–7                      5
1 riskfree interest rate is for uk and us grants
30 principal subsidiaries
all subsidiary undertakings of shire plc are 100 beneficially owned directly or indirectly and are all consolidated in the consolidated financial
statements of shire plc
subsidiaryundertaking jurisdiction of incorporation
3829359 canada inc canada
advanced biohealing 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
monmouth pharmaceuticals limited united kingdom
movetis gmbh germany
movetis limited united kingdom
pharma international insurance limited ireland
rybar laboratories limited united kingdom 
shgt executive services inc united states
shire 2005 investments limited cayman islands
shire acquisition inc canada
shire acquisitions ireland limited ireland 
shire ag switzerland
shire australia pty limited australia
shire belgium bvba belgium
shire biopharmaceuticals holdings united kingdom
shire biopharmaceuticals holdings ireland limited jersey
8446 annual report 2011annual report 2011  15032012  1614  page 122 shire plc annual report 2011 123
financial statements
c annual report 2011
30 principal subsidiaries continued
subsidiaryundertaking jurisdiction of incorporation
shire biopharmaceuticals ireland limited ireland
shire biopharmaceuticals ireland no2 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 inc 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
shire holdings europe bv  netherlands
shire holdings europe limited united kingdom
shire holdings europe no2 sarl luxembourg
shire holdings ireland limited 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 licensing bv netherlands
shire investments  finance uk company united kingdom
shire ip services corporation canada
shire italia spa italy
shire jersey limited jersey
shire llc united states
shire luxembourg intellectual property no2 sa rl luxembourg
shire luxembourg intellectual property sa rl luxembourg
shire luxembourg sarl 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 pharmaceutical contracts limited united kingdom
shire pharmaceutical development inc united states
shire pharmaceutical development limited united kingdom
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 inc united states
shire pharmaceuticals investments british virgin islands limited virgin islands british
shire pharmaceuticals investments 2007 ireland
shire pharmaceuticals ireland limited ireland
8446 annual report 2011annual report 2011  15032012  1614  page 123 shire plc annual repo 124 shire plc annual report 2011
notes to the consolidated ﬁnancial statements
in millions of us dollars except where indicated
30 principal subsidiaries continued
subsidiaryundertaking jurisdiction of incorporation
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 singapore pte ltd singapore 
shire supplies us llc united states
shire sweden ab sweden
shire uk investments limited united kingdom
shire us acquisitions llc united states 
shire us holdings inc united states
shire us holdings llc united states 
shire us inc united states
shire us investments united kingdom
shire us manufacturing 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
31 auditors’ 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 
                                                                                                                                                                                                                                                    2011                           2010
year to december 31                                                                                                                                                                                                       ’m                            ’m
audit fees
1
                                                                                                                                                                                33                      34
auditrelated fees
2
                                                                                                                                                                     01                          –
tax fees
3
                                                                                                                                                                                      –                      01
total fees                                                                                                                                                                                  34                      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 audit related fees consist of work generally only the independent registered public accountant can reasonably be expected to perform such as procedures relating 
to regulatory filings
3 tax fees consisted principally of assistance with matters related to compliance planning and advice in various tax jurisdictions
32 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
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                  ’000                         ’000
emoluments                                                                                                                                                                           5787                  5600
money purchase pension contributions                                                                                                                                    561                     529
subtotal of annual emoluments                                                                                                                                            6348                  6129
other income arising from releaseexercise of longterm incentives
1
                                     
gains on exercise of share options and sar awards and release of psa awards                                                          21851                14286
gains on the release of eaip awards                                                                                                                                 2368                   11 83
total emoluments and other income arising from longterm incentives
2
                                                                            30567                 21598
1 includes the value of shares that were released under longterm plans and gains realized 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 2011 of £116038 and for 2010 of £115459
8446 annual report 2011annual report 2011  15032012  1614  page 124 shire plc annual report 2011 125
other ﬁnancial information
c annual report 2011
other ﬁnancial information
non gaap measures
these non gaap financial measures are used by shire’s management
to make operating decisions because they facilitate internal
comparisons of shire’s performance to historical results and to
competitors’ results shire’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 shire’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 2011 2010 and 2009 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
� non controlling 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
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 2011 2010 and 2009 non gaap earnings 
cash generation represents net cash provided by operating activities
excluding up front and milestone payments for inlicensed and acquired
products tax and interest payments
free cash flow represents net cash provided by operating activities
excluding up front and milestone payments for inlicensed and 
acquired products but including capital expenditure in the ordinary
course of business
non gaap ebitda represents non gaap operating income before
depreciation
non gaap 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
intangible asset impairment charges 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 non
operating assets such as surplus cash and nonstrategic
investments and
� taxing the resulting adjusted operating income at the underlying 
non gaap tax rate
quarterly results of operations unaudited
the following table presents summarized unaudited quarterly results for the years to december 31 2011 and 2010
                                                                                                                                                                                 q1                              q2                              q3                              q4
2011                                                                                                                                                                     ’m                            ’m                            ’m                            ’m
total revenues                                                                                                                9727              10629              10861              11422 
operating income                                                                                                           2665                  2833                  2554                  3040 
net income attributable to shire plc                                                                               2113                  2055                  1929                  2553 
earnings per share—basic                                                                                            385¢                  372¢                  350¢                  464¢
earnings per share—diluted                                                                                           370¢                  359¢                  339¢                  444¢
                                                                                                                                                                                 q1                              q2                              q3                              q4
2010                                                                                                                                                                     ’m                            ’m                            ’m                            ’m
total revenues                                                                                                                8162                 8494                  8743                   9312
operating income                                                                                                           217 8                  2244                  1558                  1961 
net income attributable to shire plc                                                                               1659                  1605                    963                  1653 
earnings per share—basic                                                                                            305¢                  294¢                   17 6¢                  301¢
earnings per share—diluted                                                                                           297¢                  286¢                   17 3¢                  294¢
8446 annual report 2011annual report 2011  15032012  1614  page 125 126 shire plc annual report 2011
other ﬁnancial information
shire plc annual repo
a reconciliation of non gaap financial measures to the most directly comparable measure under us gaap is presented below
non gaap reconciliation 2011
                                                                                          us gaap                                                                    adjustments                                                                   non gaap
                                                                                                                                                                                                  divestments                                   
                                                                                                                            amortization              acquisitions        reorganizations
                                                                                        december 31                 and asset         and integration     and discontinued                 reclassify            december 31
                                                                                                       2011             impairments
a
                 activities
b
              operations
c
           depreciation
d
                        2011
year to                                                                                         ’m                            ’m                            ’m                            ’m                            ’m                            ’m
total revenues                                                   42634                          –                          –                          –                          –               42634
costs and expenses                                                                                                                                                                                                 
cost of product sales                                             5881                          –                    110                   113                   332                 5326 
rd                                                                        7707                    160                         –                          –                   252                 7295 
sga                                                                   17514                  1650                         –                          –                   631               15233 
loss on sale of product rights                                    60                          –                          –                     60                         –                          –
reorganization costs                                                243                          –                          –                   243                         –                          –
integration and acquisition costs                              137                          –                    137                         –                          –                          –
depreciation                                                                   –                          –                          –                          –                   1215                   1215 
total operating expenses                                 31542                  1810                  247                  416                         –               29069 
operating income                                              11092                   1810                    247                     416                          –                13565 
interest income                                                           19                          –                          –                          –                          –                       19 
interest expense                                                      391                         –                          –                          –                          –                   391
other incomeexpense net                                    181                      24                          –                   235                         –                     30
total other expense net                                        191                     24                          –                   235                         –                   402
income before income taxes and equity 
in earnings of equity method investees             10901                  1834                    247                    181                          –                13163 
income taxes                                                         227 6                   587                     83                     27                                              2919
equity in earnings of equity method
investees net of tax                                                25                          –                          –                          –                          –                      25 
net income                                                           8650                  1247                    164                    208                          –               10269 
impact of convertible debt net of tax                       336                          –                          –                          –                          –                    336 
numerator for diluted eps                                  8986                  1247                    164                    208                          –               10605 
weighted average number of shares
millions—diluted                                                5954                          –                          –                          –                          –                  5954 
diluted earnings per ads                                  4527¢                  627¢                    84¢                  105¢                          –                5343¢
the following items are included in adjustments
a amortization and asset impairments impairment of intangible assets 160 million amortization of intangible assets relating to intellectual property rights acquired 
1650 million impairment of available for sale securities 24 million and tax effect of adjustments
b acquisitions and integration activities unwind of abh inventory fair value adjustment 110 million costs associated with acquisition and integration of abh 
136 million and integration of movetis 83 million less adjustment to contingent consideration payable for equasym 82 million and tax effect of adjustments
c divestments reorganizations and discontinued operations accelerated depreciation 66 million and dual running costs 47 million on the transfer of manufacturing
from owings mills to a third party remeasurement of daytrana contingent consideration to fair value 60 million reorganization costs 243 million on the transfer 
of manufacturing from owings mills to a third party and the establishment of an international commercial hub in switzerland gain on disposal of investment in vertex 
235 million and tax effect of adjustments and
d depreciation depreciation of 1215 million included in cost of product sales rd costs and sga costs for us gaap separately disclosed for the presentation 
of non gaap earnings
8446 annual report 2011annual report 2011  15032012  1614  page 126 c annual report 2011 shire plc annual report 2011 127
other ﬁnancial information
non gaap reconciliation 2010
                                                                                           us gaap                                                                      adjustments                                                                    non gaap
                                                                                                                                                                                                    divestments                                   
                                                                                                                              amortization                acquisitions           reorganizations
                                                                                          december 31                  and asset           and integration       and discontinued                   reclassify             december 31
                                                                                                       2010               impairments
a
                   activities
b
               operations
c
             depreciation
d
                        2010
year to                                                                                         ’m                            ’m                            ’m                            ’m                            ’m                            ’m
total revenues                                                    34711                          –                          –                          –                          –               34711
costs and expenses                                                                                                                                                                                                 
cost of product sales                                             4634                          –                          –                   304                   124                 4206
rd                                                                        6615                          –                   450                         –                    190                  597 5
sga                                                                   15263                  1762                         –                          –                   621               12880
gain on sale of product rights                                  165                         –                          –                    165                          –                          – 
reorganization costs                                                343                          –                          –                   343                         –                          – 
integration and acquisition costs                                80                          –                     80                         –                          –                          – 
depreciation                                                                   –                          –                          –                          –                    935                    935
total operating expenses                                  2677 0                  1762                   530                   482                         –               23996
operating income                                                 7941                  1762                    530                    482                          –                10715
interest income                                                           24                          –                          –                          –                          –                      24
interest expense                                                      351                         –                          –                          –                          –                   351
other incomeexpense net                                       7 9                          –                          –                    111                         –                     32
total other expense net                                       248                         –                          –                    111                         –                   359
income before income taxes and equity
in earnings of equity method investees               7693                  1762                    530                     37 1                          –                10356
income taxes                                                         1827                   389                     35                   135                         –                 2386
equity in earnings of equity method 
investees net of tax                                                14                          –                          –                          –                          –                       14
net income                                                           5880                   137 3                    495                    236                          –                  7984
impact of convertible debt net of tax                       335                          –                          –                          –                          –                    335
numerator for diluted eps                                   6215                   137 3                    495                    236                          –                  8319
weighted average number of shares
millions—diluted                                                5903                          –                          –                          –                          –                  5903
diluted earnings per ads                                  3159¢                  697¢                  251¢                  120¢                          –                4227¢
the following items are included in adjustments
a amortization and asset impairments amortization of intangible assets relating to intellectual property rights acquired 1335 million impairment charge to record
daytrana assets at fair value less costs to sell 427 million and tax effect of adjustments
b acquisitions and integration activities up front payment to acceleron 450 million acquisition costs 80 million primarily related to the movetis acquisition 
and tax effect of adjustments
c divestments reorganizations and discontinued operations accelerated depreciation 257 million and dual running costs 47 million on the transfer 
of manufacturing from owings mills to a third party gain on sale of noncore product rights 61 million remeasurement of daytrana contingent consideration 
to fair value 104 million reorganization costs 343 million on the transfer of manufacturing from owings mills to a third party and the establishment of an 
international commercial hub in switzerland gain on disposal of the investment in virochem 111 million and tax effect of adjustments and
d depreciation depreciation of 935 million included in cost of product sales rd costs and sga costs for us gaap separately disclosed for the presentation 
of non gaap earnings
8446 annual report 2011annual report 2011  15032012  1614  page 127 shire plc annual repo 128 shire plc annual report 2011
other ﬁnancial information
non gaap reconciliation 2009
                                                                                           us gaap                                                                      adjustments                                                                    non gaap
                                                                                                                                                                                                    divestments                                   
                                                                                                                              amortization                acquisitions           reorganizations
                                                                                          december 31                  and asset           and integration       and discontinued                   reclassify             december 31
                                                                                                       2009               impairments
a
                   activities
b
               operations
c
             depreciation
d
                        2009
year to                                                                                          ’m                            ’m                            ’m                            ’m                            ’m                            ’m
total revenues                                                    3007 7                          –                          –                          –                          –               30077
costs and expenses                                                                                                                                                                                                 
cost of product sales                                             3880                          –                      19                   120                     98                 3643
rd                                                                        6399                          –                   369                   629                   155                 5230
sga                                                                   13426                  1369                         –                          –                    67 7               11380
gain on sale of product rights                                   63                         –                          –                      63                          –                          – 
reorganization costs                                                127                          –                          –                    127                         –                          – 
integration and acquisition costs                              106                          –                    106                         –                          –                          – 
depreciation                                                                   –                          –                          –                          –                    930                    930
total operating expenses                                  2387 5                  1369                   510                   813                         –                21183
operating income                                                 6202                  1369                     510                     813                          –                  8894
interest income                                                           19                          –                          –                          –                          –                       19
interest expense                                                      398                         –                          –                          –                          –                   398
other incomeexpense net                                    607                          –                          –                   552                         –                      55
total other incomeexpense net                        228                          –                          –                   552                         –                   324
income before income taxes and equity
in losses of equity method investees                  6430                  1369                     510                    261                          –                   857 0
income taxes                                                         1385                   388                   162                   207                         –                  2142
equity in losses of equity method 
investees net of tax                                               07                         –                          –                          –                          –                     07
income from continuing operations 
net of tax                                                           5038                    981                    348                      54                          –                  6421
loss from discontinued operations                          124                         –                          –                    124                          –                          –
net income                                                             4914                    981                    348                     17 8                          –                  6421
add net loss attributable to non controlling 
interest in subsidiaries                                                02                          –                          –                          –                          –                      02
net income attributable to shire plc                   4916                    981                    348                     17 8                          –                  6423
impact of convertible debt net of tax
1
                          –                    336                          –                          –                          –                    336
numerator for diluted eps                                   4916                   1317                    348                     17 8                          –                  6759
weighted average number of shares 
millions—diluted
1
                                             5480                    331                          –                          –                          –                   5811
diluted earnings per ads                                  2691¢                  526¢                  180¢                    92¢                          –                3489¢
1 the impact of convertible debt net of tax has a dilutive effect on a non gaap basis
the following items are included in adjustments
a amortization and asset impairments amortization of intangible assets relating to intellectual property rights acquired 1369 million and tax effect of adjustment
b acquisitions and integration activities inventory fair value adjustment related to the acquisition of jerini 19 million payment on amendment of intuniv inlicense
agreement 369 million iprd charge in respect of jerini 16 million costs associated with the integration and acquisition of jerini and equasym 106 million 
and tax effect of adjustments
c divestments reorganizations and discontinued operations accelerated depreciation 120 million and reorganization costs 127 million for the transition 
of manufacturing from owings mills to a third party costs associated with the agreement to terminate women’s health products with duramed 629 million 
gain on disposal of noncore product rights 63 million gain on disposal of investment in virochem 552 million discontinued operations in respect of noncore 
jerini operations 124 million and tax effect of adjustments and
d depreciation depreciation of 930 million included in cost of product sales rd costs and sga costs for us gaap separately disclosed for the presentation 
of non gaap earnings
our markets
argentina
australia
belgium
brazil
canada
colombia
czech republic
denmark
finland
france
germany
greece
ireland
italy 
japan
8446 annual report 2011annual report 2011  15032012  1615  page 128 shire plc annual report 2011 129
other ﬁnancial information
c annual report 2011
shire head ofﬁces and main operating locations
ireland
corporate 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
basingstoke
hampshire
rg24 8ep
united kingdom
tel 44 0 1256 894000
fax 44 0 1256 894708
switzerland
business park terrebonne
route de crassier 7
1262 eysins
switzerland
tel 41 22 419 4000 
fax 41 22 419 4001
us specialty pharmaceuticals
725 chesterbrook blvd
wayne philadelphia
19087–5637
usa
tel 1 484 595 8800
fax 1 484 595 8200
us human genetic therapies
300 shire way
lexington
massachusetts 02421
usa
tel 1 617 349 0200
fax 1 617 613 4004
us regenerative medicine
11095 t orreyana road
san diego
ca 92121
usa
tel 1 858 754 3700
fax 1 858 754 3750
our markets
argentina
australia
belgium
brazil
canada
colombia
czech republic
denmark
finland
france
germany
greece
ireland
italy 
japan
luxembourg
mexico
netherlands
norway
poland
portugal
russia
singapore
spain
sweden
switzerland
turkey
united kingdom
united states
8446 annual report 2011annual report 2011  15032012  1615  page 129 shire plc annual repo 130 shire plc annual report 2011
shareholder information
electronic communication
shire will communicate with those shareholders who have elected or
who are deemed to have elected to receive documents electronically
by publishing documents on its website and will write to shareholders
to inform them of the availability of these documents on shire’s website
alternatively shareholders can elect to receive electronic notification 
of company communications instead of a letter an email will be 
sent to the shareholder’s email address with a link to the documents 
on shire’s website to effect this you must register free of charge at
wwwshareviewcoukmyportfolio by following the online instructions
the advantages of electronic communication are
� receiving shareholder information speedily and efficiently
� reducing the demand on natural resources and
� helping your company reduce its costs
shareholders who do not elect to receive documents or notifications
electronically will receive paper copies of materials
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
wwwfsagovukpagesdoingregulatedlawalertsformshtml
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
wwwfsagovukconsumerinformationscamsandswindles
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 2012
annual general meeting april 2012
first quarter results’ announcement april 2012
second quarter results’ announcement july 2012
first interim dividend payment october 2012
third quarter results’ announcement october 2012
annual results’ announcement february 2013
second interim dividend payment april 2013
dividends
shareholders are able to choose how they receive their dividends
� directly into their bank account or 
� by cheque
shire preferred option
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 
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 at
wwwsharegiftorg or by telephoning sharegift on 44 020 7930 3737 
8446 annual report 2011annual report 2011  15032012  1615  page 130 shire plc annual report 2011 131
other ﬁnancial information
c annual report 2011
registered office
22 grenville street
st helier
jersey
je4 8px
registered in jersey no 99854
corporate headquarters
5 riverwalk
citywest business campus
dublin 24
republic of ireland
uk headquarters
unity place
hampshire international business park
chineham
basingstoke
hampshire
rg24 8ep
united kingdom
website
wwwshirecom
investor relations
eric rojas
tel 1 617 349 0200
email investorrelationsshirecom
registrars
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
po box 75
26 new street
st helier
jersey
je4 8pp
shareholder helpline
from overseas
tel 44 0121 415 7593 
in the uk
tel 0871 384 2553
calls to this number are charged at 8p per minute from 
a bt landline other telephone providers’ charges may vary
us shareholders
i adss
the company’ s american depositary shares “adss” each
representing three ordinary shares are listed on the nasdaq 
global select market under the symbol “shpgy”  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
ii ads depositary
citi bank na is the depositary 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
8446 annual report 2011annual report 2011  15032012  1615  page 131 shire plc annual repo 132 shire plc annual report 2011
statements included herein that are not historical facts are forward
looking statements such 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 the
company’s results could be materially adversely affected the risks 
and uncertainties include but are not limited to risks associated 
with the inherent uncertainty of research development approval 
reimbursement manufacturing and commercialization of the
company’s specialty pharmaceuticals human genetic therapies 
and regenerative medicine products as well as the ability to secure
new products for commercialization andor development government
regulation of the company’s products the company’s ability to
manufacture its products in sufficient quantities to meet demand 
the impact of competitive therapies on the company’s products 
the company’s ability to register maintain and enforce patents and 
other intellectual property rights relating to its products the company’s
ability to obtain and maintain government and other third party
reimbursement for its products and other risks and uncertainties 
detailed from time to time in the company’s filings with the securities
and exchange commission
cautionary statements
8446 annual report 2011annual report 2011  15032012  1615  page 132 shire plc annual report 2011 133
other ﬁnancial information
c annual report 2011
intentionally left blank
8446 annual report 2011annual report 2011  15032012  1615  page 133 shire plc
annual report and financial statements
for the year ended december 31  2011
company registration number 99854
shire plc annual repo 134 shire plc annual report 2011
8446 annual report 2011annual report 2011  15032012  1615  page 134 shire plc annual report 2011 135
other ﬁnancial information
c annual report 2011
135 ofﬁcers and professional advisors
136 directors’ report
138 statement of directors’ responsibilities
139 independent auditors’ report
140 proﬁt and loss account
140 balance sheet
141 notes to the ﬁnancial statements
contents
directors
matthew emmens 
angus russell
graham hetherington 
william burns 
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
ofﬁcers and professional advisors
8446 annual report 2011annual report 2011  15032012  1615  page 135 136 shire plc annual report 2011 shire plc annual repo
the directors present their annual report and the audited financial
statements for the year ended december 31 2011
principal activity and business review
shire plc the “company” is the parent company of the shire group
the “group” or “shire” the principal activity of which is the research
and development manufacture sale and distribution of pharmaceutical
products
shire’s strategic goal is to be the world’s leading specialty
biopharmaceutical company that focuses on meeting the needs of 
the specialist physician shire focuses its business on attention deficit
hyperactivity disorder “adhd” human genetic therapies “hgt”
gastrointestinal “gi” diseases and regenerative medicine “rm” as
well as opportunities in other therapeutic areas to the extent they arise
through acquisitions shire’s inlicensing merger and acquisition efforts
are focused on products in specialist markets with strong intellectual
property protection 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 
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 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 united states of america
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 2011 prepared in accordance with united
kingdom listing authority requirements the “shire annual report”
in the chairman’s review on pages 6 and 7 the chief executive
officer’s review on pages 8 to 11 and the financial review on pages 
12 to 41 the financial review 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 m on page 146 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 22 in the financial review included 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 united
kingdom “uk” further details in respect of the ias arrangements 
can be found in note 23 of the shire annual report
results and dividends
a loss on ordinary activities before taxation of 883 million was
recorded for the year ended december 31 2011 year ended
december 31 2010 867 million
the net assets of the company decreased from 96644 million for the
year ended december 31 2010 to 96466 million for the year ended
december 31 2011 primarily as a result of the loss the company made
during 2011
dividends paid and dividend policy
the company paid dividends amounting to 62 million in the year
2010 37 million in accordance with ias arrangements the
company directed shire biopharmaceuticals holdings which prior to
the scheme of arrangement in 2008 was the former parent company
of the group “old shire” to pay dividends totaling 67 6 million 
2010 583 million to those shareholders who choose to receive their
dividends from a company tax resident in the uk
a first interim dividend for the first half of 2011 of 248 us cents 
152 pence per ordinary share equivalent to 7 44 us cents per ads
was paid in october 2011 the board has resolved to pay a second
interim dividend of 1259 us cents 7 96 pence per ordinary share
equivalent to 37 77 us cents per ads for the six months to december
31 2011
this is consistent with shire’s stated policy of paying a dividend semi
annually 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
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 chairman’s review chief executive officer’s review
and financial review on pages 6 to 41 of the shire annual report 
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 financial review of the shire annual
report the financial review 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 m on page 146 to these
financial statements
the group’s balance sheet includes 6200 million of cash and cash
equivalents at december 31 2011 substantially all of the group’s debt
relates to its 1100 million 275 convertible bond the “bonds” which
matures in 2014 although these bonds include a put option which
could require repayment of the bonds in may 2012 in addition the
group has committed multicurrency revolving and swingline facilities 
of 1200 million which mature in 2015 and are currently undrawn the
“rcf” at february 21 2012 the bonds were trading at above par and
the company does not currently consider it likely that the put option
will be exercised in 2012 however if the bonds were redeemed in
2012 the group’s operating cash flow together with available cash
cash equivalents and the rcf would be sufficient to enable repayment
of the bonds in lieu of settling any such redemption wholly in cash the
terms of the bonds also permit the company to deliver the underlying
ordinary shares and if necessary a cash top up amount
the directors have a reasonable expectation that the company 
has adequate resources to continue in operational existence for the
foreseeable future accordingly the directors continue to adopt the going
basis of accounting in preparing the report and financial statements
directors’ report
8446 annual report 2011annual report 2011  15032012  1615  page 136 c annual report 2011 shire plc annual report 2011 137
other ﬁnancial 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
graham hetherington 
william burns 
dr david ginsburg 
david kappler 
susan kilsby appointed september 1 2011
patrick langlois resigned november 10 2011
dr jeffrey leiden resigned january 31 2012
anne minto obe
david stout
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 23 2012
8446 annual report 2011annual report 2011  15032012  1615  page 137 shire plc annual repo 138 shire plc annual report 2011
the directors are responsible for preparing the annual report and
financial statements in accordance with applicable law and regulations
the directors have elected to prepare the parent company financial
statements in accordance with united kingdom generally accepted
accounting practice united kingdom accounting standards and
applicable law the financial statements are required by law to 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 
parent company financial statements the directors are required to
� select suitable accounting policies and then apply them consistently
� make judgments and 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 proper accounting records
that 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
statement of directors’ responsibilities
8446 annual report 2011annual report 2011  15032012  1615  page 138 shire plc annual report 2011 139
other ﬁnancial information
c annual report 2011
we have audited the parent company financial statements of shire plc
for the period from january 1 2011 to december 31 2011 which
comprises the profit and loss account balance sheet and the related
notes a to n these parent company financial statements have been
prepared in accordance with applicable law and united kingdom
accounting standards united kingdom generally accepted
accounting practice
we have reported separately on the consolidated financial statements
and annual report and accounts of shire plc for the year ended
december 31 2011 prepared in accordance with the united kingdom
listing authority requirements the “shire annual report”
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
respective responsibilities of directors and auditor
the directors’ responsibilities for preparing the parent company
financial statements are set out in the statement of directors’
responsibilities our responsibility is to audit and express an opinion 
on the parent company financial statements in accordance with
relevant legal and regulatory requirements and international standards
on auditing united kingdom and republic of ireland those standards
require us to comply with the united kingdom auditing practices
board’s ethical standards for auditors
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 if we become aware of any apparent material
misstatements or inconsistencies we consider the implications 
for our report
opinion on the financial statements
in our opinion the financial statements
� give a true and fair view of the state of the parent company’s affairs
as at december 31 2011 and of the parent company’s loss for the
year then ended
� have been properly prepared in accordance with united kingdom
generally accepted accounting practice and
� have been properly prepared in accordance with the companies
jersey law 1991
matters on which we are required to report by exception
under companies jersey law 1991 we are required to report 
to you if in our opinion
� 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 or
� we have not received all the information and explanations 
we require for our audit
we have nothing to report in respect of the above
paul franek
for and on behalf of deloitte llp
chartered accountants and recognized auditors
london united kingdom
february 23 2012
independent auditors’ report to the members of shire plc
8446 annual report 2011annual report 2011  15032012  1615  page 139 shire plc annual repo 140 shire plc annual report 2011
proﬁt and loss account
for the year ended december 31 2011
balance sheet
as at december 31 2011
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                 note                            ’m                            ’m
administrative expenses                                                                                                                                                         206                   216
operating loss                                                                                                                                                 c                        206                        216
interest payable and similar charges                                                                                                                 d                        677                       651
loss on ordinary activities before taxation                                                                                                                            883                       867
tax on loss on ordinary activities                                                                                                                       e                                –                                –
loss on ordinary activities after taxation                                                                                                                           883                  867
all activities 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
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                 note                            ’m                            ’m
fixed assets
investment in subsidiaries                                                                                                                                 g                 108916                9457 9
current assets
debtors                                                                                                                                                             h                          317                1427 4
current liabilities                                                            
creditors amounts falling due within one year                                                                                                   i                  12767                 1710
net current liabilitiesassets                                                                                                                                             12450               12564
total assets less current liabilities                                                                                                                                     96466             107143
creditors amounts falling due after more than one year                                                                            j                                –               10499
net assets                                                                                                                                                                             96466               96644
capital and reserves                                                                                                             
called up share capital                                                                                                                                      k                          557                    557
share premium account                                                                                                                                    l                   59418                59411
equity component of convertible bonds                                                                                                            l                          432                    432
other reserve                                                                                                                                                     l                       2218                   151 3
profit and loss account                                                                                                                                      l                   33841               34731
shareholders’ funds                                                                                                                                        l                   96466               96644
the financial statements were approved by the board of directors on february 23 2012 and signed on its behalf by
graham hetherington
director
8446 annual report 2011annual report 2011  15032012  1615  page 140 shire plc annual report 2011 141
other ﬁnancial information
c annual report 2011
notes to the ﬁnancial statements
for the year ended december 31 2011
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 2011 and in accordance 
with the requirements of companies jersey law 1991 they have
been prepared under the historical cost convention 
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
the 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
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 
this occurs in the period in which the dividends are approved by the
company’s shareholders or in the case of an interim dividend when
the dividend is paid
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
foreign currency transactions
items included in the financial statements of the company are
measured using the currency of the primary economic environment in
which the company operates the functional currency these financial
statements are presented in us dollars which is the company’s
functional and presentational currency
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
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
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
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 not provided on timing differences arising on unremitted
earnings of subsidiaries and associates where there is no commitment
to remit these earnings
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 other group undertakings in the financial statements
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 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
8446 annual report 2011annual report 2011  15032012  1615  page 141 shire plc annual repo 142 shire plc annual report 2011
c operating loss
the operating loss is stated after charging
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                     ’m                            ’m
staff costs                                                                                                                              
salaries and wages                                                                                                                                                                    42                      35
social security costs                                                                                                                                                                  01                      02
pension contributions                                                                                                                                                                05                      02
sharebased payments to directors                                                                                                                                          55                      22
directors’ fees                                                                                                                                                                            23                       15
                                                                                                                                                                                                 126                       76
foreign exchange gains                                                                                                                                                            06                    04
the company employed two employees during the year 2010 two
the auditor’s remuneration in respect of audit and other services is disclosed in note 31 of the shire annual report the fee payable to the
company’s auditor for the audit of the company financial statements was 13000 2010 13000
d interest payable and similar charges
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                     ’m                            ’m
interest payable on convertible bonds                                                                                                                                     666                    645
interest payable on amounts owed to group undertakings                                                                                                       11                      06
                                                                                                                                                                                                 677                    651
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 no corporation tax charged for the year ended december 31 2011 2010 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
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                     ’m                            ’m
loss on ordinary activities before taxation                                                                                                                              883                  867
tax on loss on ordinary activities at standard irish corporation tax rate of 25                                                                      221                   217
effects of
expenses not deductible for tax purposes                                                                                                                               182                    165
group relief surrendered                                                                                                                                                             19                          –
movements on deferred tax not recognized                                                                                                                              20                      52
current tax charge for the year                                                                                                                                                  –                          –
notes to the ﬁnancial statements
for the year ended december 31 2011
8446 annual report 2011annual report 2011  15032012  1615  page 142 shire plc annual report 2011 143
other ﬁnancial information
c annual report 2011
f dividends
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                     ’m                            ’m
ordinary shares                                                             
second interim dividend—1085 us cents 673 pence per ordinary share
equivalent to 3255 us cents per ads paid in april 2011                                                                                                   605                          –
first interim dividend—248 cents 152 pence per ordinary share
equivalent to 7 44 cents per ads paid in october 2011                                                                                                     133                          –
second interim dividend—925 us cents 591 pence per ordinary share
equivalent to 27 75 us cents per ads paid in april 2010                                                                                                        –                    497
first interim dividend—220 cents 141 pence per ordinary share
equivalent to 675 cents per ads paid in october 2010                                                                                                         –                    123
                                                                                                                                                                                                 738                    620
of the above amounts the company paid dividends amounting to 62 million in the year 2010 37 million in accordance with ias
arrangements the company directed old shire to pay dividends totaling 67 6 million 2010 583 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 1259 us cents 7 96 pence per ordinary share equivalent to 37 77 us cents per
ads for the six months to december 31 2011
g investments in subsidiaries
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                     ’m                            ’m
cost                                                                                                            
as at january 1 2011 and 2010                                                                                                                                          94579                9397 9
additions                                                                                                                                                                             13635                          –
capital contribution relating to sharebased payments                                                                                                            702                    600
as at december 31                                                                                                                                                        108916                9457 9
the addition in the year relates to the novation of a receivable due from one of the company’s indirect wholly owned subsidiaries to shire
pharmaceutical holdings ireland limited in return for an issue of ordinary shares
subsidiaries
details of the company’s direct subsidiaries as at december 31 2011 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 30 of the shire annual report
h debtors
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                     ’m                            ’m
amounts due from group undertakings                                                                                                                                   313                1427 4
other debtors                                                                                                                                                                             04                          –
                                                                                                                                                                                                 317                1427 4
amounts due from group undertakings at december 31 2010 include a noninterest bearing loan receivable of 14000 million which was
denominated in us dollars and was repayable on demand
deferred tax
the company had an unrecognized deferred tax asset of 87 million 2010 100 million in respect of shortterm timing differences and losses
as at december 31 2011
8446 annual report 2011annual report 2011  15032012  1615  page 143 shire plc annual repo 144 shire plc annual report 2011
notes to the ﬁnancial statements
for the year ended december 31 2011
i creditors amounts falling due within one year
                                                                                                                                                                                                                                                    2011                           2010
                                                                                                                                                                                                                                                     ’m                            ’m
amounts owed to group undertakings                                                                                                                                  1842                  1650
accrued interest                                                                                                                                                                         44                      44
other creditors                                                                                                                                                                           18                       16
convertible bonds                                                                                                                                                              10863                          –
                                                                                                                                                                                            12767                   171 0
amounts owed to group undertakings include a noninterest bearing loan payable of 139 million which is denominated in us dollars 
and repayable on demand also included in amounts owed to group undertakings is an interest bearing loan payable of 1703 million which 
is denominated in us dollars and repayable on demand interest is charged on this borrowing at 05 above the us fed funds rate
shire 275 convertible bonds due 2014 
on may 9 2007 shire issued 1100 million in principal amount 
of 275 convertible bonds due 2014 and convertible into fully paid
ordinary shares of shire plc the “bonds” the net proceeds of issuing
the bonds after deducting the commissions and other direct costs 
of issue totaled 10817 million in connection with the scheme the
trust deed was amended and restated in 2008 in order to provide 
that following the substitution of shire plc in place of old shire as 
the principal obligor and issuer of the convertible bonds the bonds 
would be convertible into ordinary shares of shire plc
the bonds were issued at 100 of their principal amount and unless
previously purchased and canceled redeemed or converted will be
redeemed on may 9 2014 the “final maturity date” at their principal
amount 
the bonds bear interest at 275 per annum payable semiannually 
in arrears on november 9 and may 9 the bonds constitute 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 may be redeemed 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 cancelations andor
redemptions effected in respect of 85 or more in principal amount 
of bonds originally issued the bonds may also be redeemed at the
option of the bondholder at their principal amount including accrued
but unpaid interest on may 9 2012 the “put option” or following the
occurrence of a change of control of shire the bonds are 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 following exercise of the put option by 
delivery of the underlying ordinary shares and a cash top up amount
in accordance with uk gaap  as the exercise of the put option could
require the company to redeem the bonds within twelve months 
of the balance sheet date the bonds have been presented as a
current liability at december 31 2011
the bonds are 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 14 days prior to the final
maturity date ii if the bonds have been called for redemption 
by the company the close of business 14 days before the 
date fixed for redemption iii the close of business on the day prior 
to a bondholder 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 bondholder 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 anti dilution 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 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
8446 annual report 2011annual report 2011  15032012  1615  page 144 shire plc annual report 2011 145
other ﬁnancial information
c annual report 2011
i creditors amounts falling due within one year continued
the value of the bonds as recognized in the balance sheet is as follows
                                                                                                                                                                                                                 2011                           2010
                                                                                                                                                                                                                  ’m                            ’m                                   
nominal value of 275 convertible bonds due 2014                                                                             11000                11000
liability component at january 1                                                                                                            10543                10201
interest charged
i
                                                                                                                                          666                    645
interest paid                                                                                                                                                302                  303
liability component at december 31                                                                                                      10907                10543
of which
creditors amounts falling due after more than one year                                                                                   –                10499
creditors amounts falling due within one year
ii
                                                                                     10907                      44
liability component at december 31                                                                                                      10907                10543
i interest charged represents the accrued coupon and amortization of discount
ii interest payable represents the coupon of 275 on the bonds
j creditors amounts falling due after more than one year
                                                                                                                                                                                                                 2011                           2010
                                                                                                                                                                                                                  ’m                            ’m                                   
convertible bonds                                                                                                                                             –                10499
                                                                                                                                                                          –                10499
in accordance with uk gaap  as the exercise of the put option could require the company to redeem the bonds within twelve months of the
balance sheet date the bonds have been reclassified as a current liability at december 31 2011 see note i
k called up share capital
                                                                                                                                                                                   2011                                                                 2010
ordinary shares of 5p each                                                                                                             number                            ’m                      number                            ’m
authorized                                                                                                                                                         
at january 1 2011 and 2010                                                                           1000000000                    991    1000000000                    991
at december 31 2011 and 2010                                                                     1000000000                    991    1000000000                    991
issued and fully paid                                                                                                                                         
at january 1 2011 and 2010                                                                               562212495                    557        561477 011                    556
issued on exercise of options                                                                                     260335                          –              735484                      01
at december 31 2011 and 2010                                                                        562472830                    557       562212495                    557
                                                                                                                                                                                   2011                                                                 2010
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                          –
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 2011 are provided 
in the shire annual report in note 29 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 55 million 2010 22 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 director’ remuneration report of shire annual report 
on page 67 
8446 annual report 2011annual report 2011  15032012  1615  page 145 shire plc annual repo 146 shire plc annual report 2011
notes to the ﬁnancial statements
for the year ended december 31 2011
l movements in shareholders’ funds
                                                                                                                                                           equity 
                                                                                         called up                    share          component
                                                                                               share               premium      of convertible                    other             profit and 
                                                                                            capital               account                  bonds                reserve        loss account                      2011                      2010
                                                                                                  ’m                       ’m                       ’m                       ’m                      ’m                       ’m                        ’m
as at january 1 2011                                        557            59411                432               1513           34731           96644           96907
options exercised                                                   –                  07                      –                      –                      –                  07                   19
capital contribution relating 
to sharebased payments                                  –                      –                      –                705                      –                705                600
credit to equity for 
sharebased payments                                      –                      –                      –                      –                  55                  55                  22
dividends paid                                                        –                      –                      –                      –                 62                62                 37
loss for the year                                                     –                      –                      –                      –               883              883               867
as at december 31 2011                                 557           59418                432               2218           33841           96466           96644
m risk management and financial instruments
financial risk factors
the company’s risks are managed as part of the shire group’s risk
management strategy
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 and 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
for further details of shire’s risk management policies see the financial
review in the shire annual report
credit risk
as at december 31 2011 the company had amounts due from 
group undertakings and other debtors which in the aggregate totaled
317 million the company’s maximum exposure to credit risk from
these amounts is 317 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
including the repayment of the bonds if the put option were exercised
in may 2012 and service costs and dividend obligations as they
become due over the next twelve months in addition if the put option
were exercised in 2012 in lieu of settling any such redemption wholly 
in cash the terms of the bonds also permit the company to deliver the
underlying ordinary shares and if necessary a cash top up amount
8446 annual report 2011annual report 2011  15032012  1615  page 146 shire plc annual report 2011 147
other ﬁnancial information
c annual report 2011
m risk management and financial instruments continued
maturity analysis of financial liabilities
                                                                                               less than                    between                    between                    between                    between
                                                                                               3 months              3–6 months             6–12 months                  1–3 years                  3–5 years                           total
at december 31 2011                                                          ’m                            ’m                            ’m                            ’m                            ’m                            ’m
amounts owed to group undertakings
i
                 1842                          –                          –                          –                          –                  1842
convertible bonds
ii
                                                       –               11044                          –                          –                          –               11044
                                                                               1842               11044                          –                          –                          –               12886
                                                                                                less than                    between                    between                    between                    between
                                                                                                3 months               3–6 months              6–12 months                   1–3 years                   3–5 years                           total
at december 31 2010                                                            ’m                            ’m                            ’m                            ’m                            ’m                            ’m
amounts owed to group undertakings
i
                 1650                          –                          –                          –                          –                  1650
convertible bonds
ii
                                                       –                      44                          –                11000                          –                11044
                                                                               1650                      44                          –                11000                          –                12694
i amounts owed to group undertakings are shortterm unsecured borrowings from group undertakings and are repayable on demand
ii shire 1100 million 275 convertible bonds are due 2014 although they contain a put option that could require repayment of these bonds in 2012 plus accrued interest
although at december 31 2011 the bonds have been included as a financial liability due between three and six months at february 23 2012 the bonds were trading at
above par and the company does not currently consider it likely that the put option will be exercised in 2012 for further details see note i
market risk
foreign currency exchange risk
as at december 31 2011 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 2011 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 2011 the company held no cash or cash
equivalents or had any trade debtors or creditors which were interest
bearing the company had a shortterm borrowing of 1703 million
from another group company which is repayable on demand and 
is interest bearing at 05 above the us federal funds target rate
interest on this borrowing in the period amounted to 11 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 the company had debt at a carrying value of
10863 million outstanding in respect of the liability component of the
company’s 11000 million in principal amount of 275 convertible
bonds due 2014 which were issued in may 2007  the company incurs
interest at a fixed rate on the convertible bonds
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 1703 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
8446 annual report 2011annual report 2011  15032012  1615  page 147 148 shire plc annual report 2011
notes to the ﬁnancial statements
for the year ended december 31 2011
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 annum 
and libor for the applicable currency and interest period shire also
pays a commitment fee on undrawn amounts at 35 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 351 for either
the twelve month period ending december 31 or june 30 unless 
shire has exercised its option which is subject to certain conditions 
to increase it to 401 for two consecutive testing dates ii the ratio 
of ebitda to net interest as defined in the rcf agreement must not
be less than 401 for either the twelve 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 the financial and
operating covenants have not had and are not expected to have 
an effect on the company’s financial position and liquidity
the availability of loans under the rcf is subject to customary
conditions
fees for the arrangement of the rcf and ongoing commitment 
fees are borne by another group company
m risk management and financial instruments continued
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 2011
                                                                                            designated                   available                 loans and
                                                                                            at fair value                      for sale              receivables         amortized cost      carrying amount                  fair value
at december 31 2011                                                          ’m                            ’m                            ’m                            ’m                            ’m                            ’m
amounts due from group undertakings
i
                       –                          –                    313                          –                    313                    313
other debtors
i
                                                               –                          –                      04                          –                      04                      04
amounts owed to group undertakings
i
                        –                          –                          –                 1842                1842                1842
convertible bonds
ii
                                                       –                          –                          –              10863             10863             13097
                                                                                      –                          –                    317              12705             12388             14622
                                                                                             designated                     available                  loans and
                                                                                             at fair value                       for sale                receivables          amortized cost        carrying amount                    fair value
at december 31 2010                                                            ’m                            ’m                            ’m                            ’m                            ’m                            ’m
amounts due from group undertakings
i
                       –                          –                1427 4                          –                1427 4                1427 4
amounts owed to group undertakings
i
                        –                          –                          –                  1650                 1650                 1650
convertible bonds
ii
                                                       –                          –                          –               10499              10499              11398
                                                                                      –                          –                1427 4               12149                  2125                  1226
i the carrying amount of amounts due to and from group undertakings and other debtors approximate fair value because of the shortterm 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 debt as
determined under us gaap  of 4882 million at december 31 2011
2010 557 8 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
financial review in the shire annual report
the company is not subject to any externally imposed capital
requirements
n 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 981 million 2010 1103 million
revolving credit facilities agreement
the company has a 1200 million committed multicurrency revolving
and swingline facilities agreement entered into by 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  which includes 
a 250 million swingline facility may be used for general corporate
purposes and matures on november 23 2015
8446 annual report 2011annual report 2011  15032012  1615  page 148 c annual report 2011
designed and produced by
bostock and pollitt limited london
print managed by
urban life support
this report is printed on greencoat offset 
a carbon balanced paper—where the 
carbon intensity has been measured through 
the production process and an equivalent 
carbon credit offset has been purchased 
made from 100 recovered fibre certified in
accordance with the fsc forest stewardship
council it is manufactured to the iso 14001
international standard minimising negative 
impacts on the environment
cbp0001241203122357
on the back cover
student attending shire community event 
in philadelphia dr edward neilan from the
boston children’s hospital with patient kyle
shire employees
8446 annual report 2011annual report 2011  15032012  1615  page 149 better
lives
for
patients
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 2011
creating stakeholder value
8446 annual report 2011annual report 2011  15032012  1627  page bc1


Summary:
 shire plc annual repo 8 shire plc annual report 2011
httpar2011shirecom ››
online at
chief executive ofﬁcer’s review
angus russell chief executive officer
throughout 2011 at shire we were thinking about
value about how to do more in challenging times
about understanding the complex and interwoven
needs of patients physicians payors and
policymakers we recognize that patients’ lives improve
only when we understand not just them but the 
entire web of care we believe that when we respond
thoughtfully to the concerns of others we perpetuate
what we’ve come to call the circle of value we’re not
just interested in advancing our own standing in the
healthcare community we’re committed to the basic
ideal that when we can help create value for others 
we become more valuable ourselves
our longterm strategy of delivering differentiated
specialty products focusing on symptomatic diseases
and making responsible disciplined investments in
research and development produced yet another
strong year our worldwide product sales were up 26
for the year revenue grew to 4263 million operating
income was 1109 million and diluted earnings per
ads were 453 with some 5000 people operating
in 29 countries and a balanced portfolio of products
we continued to leverage a strategy that yearafteryear
delivers results even in turbulent economic times 
still we want to do more we’re focused on all our
stakeholders—patients physicians policymakers
payors investors and employees in 2011 we spent
time in the company of patients their families their
communities we talked to physicians about the
frustrations they face as they seek to treat symptoms
and make diagnoses we talked to policymakers
around the world and we talked to payors about how
they measure and reward value we talked we
listened and we responded to the benefit of all of our
stakeholders—systematically advancing our pipeline 
we grew both organically and through acquisitions 
we continued to explore the potential application 
of lisdexamfetamine dimesylate currently approved 
as vyvanse in the us for children and adults with
attention deficit hyperactivity disorder “adhd” 
in conditions ranging from negative symptoms and
cognitive impairment in schizophrenia and major
depressive disorder to binge eating and excessive
daytime sleepiness these are all conditions for which
there are not at this time adequate treatments
we also made significant headway in our research on
the potential application of mesalamine our ulcerative
colitis medicine sold as lialdamezavant in 16
countries around the world for those diagnosed with
8446 annual report 2011annual report 2011  15032012  1611  page 8 shire plc annual report 2011 9
review of our business
c annual report 2011
diverticulitis two phase 3 studies will be completed
this year for this painful and lifealtering condition
which often results in repeated flareups and is not
adequately managed by current medicines 
at the same time within our human genetic therapies
“hgt” business we continued our exploration of the
potential application of intrathecal delivery—the use 
of ports to deliver medicine directly to the central
nervous system—for the treatment of hunter syndrome
sanfilippo and metachromatic leukodystrophy as this
research program advances we hope to be able to 
do more for patients diagnosed with these often life
threatening and heartbreaking diseases 
we made great headway as well for patients depending
on our hgt enzyme replacement therapy products 
the accelerated construction and approval of a new
manufacturing facility in lexington massachusetts
ensured greater access and a sustainable supply 
of medication for patients diagnosed with fabry and
gaucher disease meanwhile we beat our own
deadlines as we worked to expand the manufacturing
capacity of vpriv  now available in 30 countries across
europe and serving patients with type 1 gaucher
disease we also launched firazyr an orphan drug
used for the treatment of acute attacks of hereditary
angioedema “hae” in adults 18 years of age or 
older in the us throughout the year we continued 
to meet with patients and physicians— in conferences
and at special meetings—all with an eye toward
working together to ensure better diagnoses and 
more effective treatments
our ambition to reach beyond our current expertise
also resulted in the acquisition of advanced
biohealing inc “abh” which brought us a new
business in regenerative medicine—adding to our
portfolio dermagraft a bioengineered skin
substitute that assists in restoring damaged tissue 
and supports the body’s natural healing process
created from cultured skin cells and applied via a
biodegradable mesh dermagraft is approved in
the us for the treatment of diabetic foot ulcers the
continued growth of abh within shire has we believe
demonstrated the potential that can be made from 
a focused regenerative medicine business we are
excited about the opportunities in this area and 
are looking forward to bringing dermagraft
to more patients and to expanding shire’s offering 
in regenerative medicine
we strengthened our global presence throughout 
the year—expanding our international hub in nyon
201 1 product highlights 
product sales were up 26 to 3950 million with growth
generated from across the portfolio particularly 
� vyvanse up 27 to 805 million
� adderall xr up 48 to 533 million
� replagal up 35 to 475 million
� elaprase up 15 to 465 million
� lialdamezavant up 27 to 372 million
� vpriv up 79 to 256 million
� dermagraft 105 million being product sales made 
subsequent to the acquisition of advanced biohealing inc
8446 annual report 2011annual report 2011  15032012  1611  page 9 shire plc annual repo 10 shire plc annual report 2011
switzerland with diverse and talented people opening
offices and finalizing marketing agreements in countries
ranging from brazil to japan and keeping an eager eye
on new opportunities where we can serve our multiple
stakeholders effectively
throughout the year we made continuing investments
in our culture—reinforcing through numerous channels
just what it is to be a shire employee through 
various programs we reinforced our commitment 
to differentiating ourselves as the company that 
always strives to be as brave as the people we help
we worked to ensure that our employees are inspired
by our strategic vision that they understand the
importance of fostering our brave values and that 
they are improving their ability to both listen and
respond—all of which contributes to our collaborative
responsible environment 
we launched the first of what will become an annual
external recognition program—the brave awards 
in which nonprofessional caregivers from around the
world were recognized and rewarded for their courage
and dedication and for the difference they make 
in the lives of those they care for 
though by many measures 2011 will be remembered
as another year of great success for shire we also
think of it as a year in which we developed new growth
opportunities in 2012 we’ll continue to invest in our
people pipeline and values—in those things that
differentiate us as a company we’ll prepare for the
launch of venvanse in europe advance pipeline
projects and look for new acquisitions—defining 
and assessing the value of such programs as early 
as possible 
but most of all we will be listening—paying acute
attention to the world around us and continuing 
to address the needs of the stakeholders who make 
up our circle of value i look forward to sharing our
news with you as the year progresses 
finally i would like to acknowledge those who make
shire’s story so distinct so vibrant and so full of
promise our people many have been helping to drive
our growth for some years now others such as the
400 or so individuals from abh and the talent newly
hired into positions all around the world are just
starting to contribute their insights creativity and
expertise to shire speaking for the entire leadership
team we are grateful for the relentless efforts and
dedication the ambitions and the proven capabilities
of all shire employees
angus russell
chief executive officer
chief executive ofﬁcer’s review
we’re not just interested in advancing
our own standing in the healthcare
community we’re committed to the
basic ideal that when we can help
create value for others we become
more valuable ourselves
8446 annual report 2011annual report 2011  15032012  1611  page 10 effective
treatments
and services
better
lives
for
patients
improved public
health and
societal value
superior clinical
evidence and clear
economic beneﬁts
return to
enable further
investment
commitment to
superior treatments
for their patients
brave culture driving
innovation to deliver
value to all
shire plc annual report 2011 11
review of our business
c annual report 2011
creating stakeholder value
our commitment to delivering value
we’ve built shire into one of the most
successful specialty biopharmaceutical
companies in the world 
everyone who works at shire is
committed to delivering value in the
broadest sense that means creating
value for our patients policymakers
payors physicians and investors 
it’s an approach that brings real
measurable benefits to our patients
the healthcare system and society
8446 annual report 2011annual report 2011  15032012  1611  page 11