SEC Info - Shire plc - ‘10-K’ for 12/31/09

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Shire plc – ‘10-K’ for 12/31/09 – ‘XML.R33’

On: Friday, 2/26/10, at 12:40pm ET · For: 12/31/09 · Accession #: 950103-10-520 · File #: 0-29630

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/26/10  Shire plc                         10-K       12/31/09   62:8.1M                                   Davis Polk & … LLP 01/FA

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML   2.87M 
 2: EX-10.26    Material Contract                                   HTML     37K 
 3: EX-21       Subsidiaries List                                   HTML     47K 
 4: EX-23.1     Consent of Experts or Counsel                       HTML     19K 
 5: EX-23.2     Consent of Experts or Counsel                       HTML     19K 
 6: EX-31.1     Certification -- §302 - SOA'02                      HTML     26K 
 7: EX-31.2     Certification -- §302 - SOA'02                      HTML     26K 
 8: EX-32.1     Certification -- §906 - SOA'02                      HTML     20K 
47: XML         IDEA XML File -- Definitions and References          XML    131K 
55: XML         IDEA XML File -- Filing Summary                      XML     94K 
52: XML.R1      Document And Entity Information                      XML     89K 
53: XML.R2      Consolidated Balance Sheets                          XML    268K 
32: XML.R3      Consolidated Balance Sheets (Parentheticals)         XML     57K 
37: XML.R4      Consolidated Balance Sheets (Parentheticals in       XML     33K 
                GBP)                                                             
45: XML.R5      Consolidated Statements of Operations                XML    365K 
44: XML.R6      Consolidated Statements of Operations                XML     51K 
                (Parentheticals)                                                 
59: XML.R7      Consolidated Statement of Changes in Shareholders'   XML   1.03M 
                Equity                                                           
22: XML.R8      Consolidated Statements of Comprehensive Income      XML    122K 
43: XML.R9      Components of Accumulated Other Comprehensive        XML     51K 
                Income                                                           
20: XML.R10     Consolidated Statements of Comprehensive Income      XML     59K 
                (Parentheticals)                                                 
19: XML.R11     Consolidated Statements of Cash Flows                XML    545K 
31: XML.R12     Description Of Operations                            XML     35K 
49: XML.R13     Summary Of Significant Accounting Policies           XML     80K 
33: XML.R14     Business combinations                                XML     79K 
34: XML.R15     Termination costs                                    XML     38K 
41: XML.R16     Gain on sale of product rights                       XML     35K 
62: XML.R17     Reorganization costs                                 XML     43K 
29: XML.R18     Intergration and Acquisition costs                   XML     35K 
15: XML.R19     Accounts receivable, net                             XML     38K 
36: XML.R20     Inventories                                          XML     37K 
48: XML.R21     Assets held for sale                                 XML     35K 
25: XML.R22     Prepaid expenses and other current assets            XML     37K 
46: XML.R23     Investments                                          XML     40K 
35: XML.R24     Property Plant and Equipment, net                    XML     38K 
58: XML.R25     Goodwill                                             XML     39K 
51: XML.R26     Other intangible assets, net                         XML     43K 
38: XML.R27     Accounts payable and accrued expenses                XML     43K 
42: XML.R28     Other current liabilities                            XML     37K 
18: XML.R29     Long-term debt                                       XML     40K 
21: XML.R30     Other long-term debt                                 XML     36K 
26: XML.R31     Other non-current liabilities                        XML     37K 
30: XML.R32     Derivative instruments                               XML     45K 
40: XML.R33     Fair value measurement                               XML     53K 
50: XML.R34     Commitments and contingencies                        XML     56K 
17: XML.R35     Shareholders Equity                                  XML     41K 
23: XML.R36     Earnings per share                                   XML     52K 
54: XML.R37     Segmental reporting                                  XML     97K 
57: XML.R38     Interest expense                                     XML     36K 
39: XML.R39     Other income (expenses), net                         XML     39K 
60: XML.R40     Retirement benefits                                  XML     34K 
24: XML.R41     Taxation                                             XML     86K 
61: XML.R42     Share-based compensation plans                       XML     71K 
28: XML.R43     Restatement of previously issued financial           XML     35K 
                statements                                                       
16: XML.R44     Income Access Share Trust Financial Statements       XML     62K 
27: XML.R45     Valuation and Qualifying Accounts Schedule           XML     45K 
56: EXCEL       IDEA Workbook of Financial Reports (.xls)            XLS    206K 
 9: EX-101.INS  XBRL Instance -- shpgf-20091231                      XML    826K 
11: EX-101.CAL  XBRL Calculations -- shpgf-20091231_cal              XML    203K 
12: EX-101.DEF  XBRL Definitions -- shpgf-20091231_def               XML     86K 
13: EX-101.LAB  XBRL Labels -- shpgf-20091231_lab                    XML    822K 
14: EX-101.PRE  XBRL Presentations -- shpgf-20091231_pre             XML    468K 
10: EX-101.SCH  XBRL Schema -- shpgf-20091231                        XSD     99K

‘XML.R33’ — Fair value measurement

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<div style="font-size:12pt">22. Fair value measurement Assets and liabilities that are measured at fair value on a recurring basis 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).<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="205" align="left"> </td><td height="17" width="94" align="right">Carrying</td><td width="400" align="center" height="17" colspan="4">Fair value</td></tr><tr><td height="17" width="205" align="left"> </td><td height="17" width="94" align="right">value</td><td height="17" width="100" align="center"> </td><td height="17" width="100" align="center"> </td><td height="17" width="100" align="center"> </td><td height="17" width="100" align="center"> </td></tr><tr><td height="17" width="205" align="left"> </td><td height="17" width="94" align="right"> </td><td height="17" width="100" align="right">Total</td><td height="17" width="100" align="right">Level 1</td><td height="17" width="100" align="right">Level 2</td><td height="17" width="100" align="right">Level 3</td></tr><tr><td height="17" width="205" align="left"> </td><td height="17" width="94" align="right">$'M</td><td height="17" width="100" align="right">$'M</td><td height="17" width="100" align="right">$'M</td><td height="17" width="100" align="right">$'M</td><td height="17" width="100" align="right">$'M</td></tr><tr><td height="11" width="205" align="right"> </td><td height="11" width="94" align="right">____________</td><td height="11" width="100" align="right">____________</td><td height="11" width="100" align="right">___________</td><td height="11" width="100" align="right">___________</td><td height="11" width="100" align="right">___________</td></tr><tr><td height="17" width="205" align="left">Financial assets:</td><td height="17" width="94" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td></tr><tr><td height="19" width="205" align="left">Available-for-sale securities(1)</td><td height="19" width="94" align="right">87.0 </td><td height="19" width="100" align="right">87.0 </td><td height="19" width="100" align="right">87.0 </td><td height="19" width="100" align="right">- </td><td height="19" width="100" align="right">- </td></tr><tr><td height="17" width="205" align="left">Foreign exchange contracts</td><td height="17" width="94" align="right">5.4 </td><td height="17" width="100" align="right">5.4 </td><td height="17" width="100" align="right">- </td><td height="17" width="100" align="right">5.4 </td><td height="17" width="100" align="right">- </td></tr><tr><td height="17" width="205" align="left"> </td><td height="17" width="94" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td></tr><tr><td height="17" width="205" align="left">Financial liabilities:</td><td height="17" width="94" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td></tr><tr><td height="17" width="205" align="left">Foreign exchange contracts</td><td height="17" width="94" align="right">1.2 </td><td height="17" width="100" align="right">1.2 </td><td height="17" width="100" align="right">- </td><td height="17" width="100" align="right">1.2 </td><td height="17" width="100" align="right">- </td></tr><tr><td height="11" width="205" align="right"> </td><td height="11" width="94" align="right">____________</td><td height="11" width="100" align="right">____________</td><td height="11" width="100" align="right">___________</td><td height="11" width="100" align="right">___________</td><td height="11" width="100" align="right">___________</td></tr></table>(1) Available-for-sale securities are included within Investments in the consolidated balance sheet. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown above are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or ability to dispose of the financial instrument. The following methods and assumptions were used to estimate the fair value of each material class of financial instrument: <ul><li>Available-for-sale securities – the fair values of available-for-sale securities are estimated based on quoted market prices for those investments. </li><li>Foreign exchange contracts – the fair value of the swap and forward foreign exchange contracts has been determined using an income approach based on current market expectations about the future cash flows. </li></ul> Assets and liabilities that have been measured at fair value on a non-recurring basis (after initial recognition) As outlined in Note 19, the building financing obligation for leased property in Lexington, Massachusetts was substantially modified in the year to December 31, 2009, by extension of the term of the relevant underlying lease on July 31, 2009. The existing liability of $45.1 million was derecognized, and a building financing obligation of $39.4 million was recorded, such liability measured using the fair value of the liability under the revised terms. This extension of the term of the building finance obligation was treated as a substantial modification resulting in a gain of $5.7 million, which has been recorded within Other income/(expense), net. The fair value of the building financing obligation was estimated based on the present value of the contractual cash flows under the revised lease and the estimated residual value of the property at the end of the lease term, such payments being discounted at a risk-free interest rate adjusted for Shire’s credit risk. The fair value measurement falls within Level 3 of the fair value hierarchy because the estimate of Shire’s credit risk was based on a significant unobservable input.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="19" width="386" align="left"> </td><td height="19" width="17" align="right"> </td><td width="300" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="19">Fair Value at Measurement Date</td></tr><tr><td height="19" width="386" align="left"> </td><td height="19" width="17" align="right"> </td><td height="19" style="border-top: 1px solid #000000;" align="center" width="75"> </td><td height="19" style="border-top: 1px solid #000000;" align="center" width="75"> </td><td height="19" style="border-top: 1px solid #000000;" align="center" width="75"> </td><td height="19" style="border-top: 1px solid #000000;" align="center" width="75"> </td></tr><tr><td height="17" width="386" align="left"> </td><td height="17" width="17" align="right"> </td><td height="17" width="75" align="right">Total</td><td height="17" width="75" align="right">Level 1</td><td height="17" width="75" align="right">Level 2</td><td height="17" width="75" align="right">Level 3</td></tr><tr><td height="19" width="386" align="left"> </td><td height="19" width="17" align="right"> </td><td height="19" width="75" align="right">$'M</td><td height="19" width="75" align="right">$'M</td><td height="19" width="75" align="right">$'M</td><td height="19" width="75" align="right">$'M</td></tr><tr><td height="17" width="386" align="right"> </td><td height="17" width="17" align="right"> </td><td height="17" width="75" align="right">____________</td><td height="17" width="75" align="right">___________</td><td height="17" width="75" align="right">___________</td><td height="17" width="75" align="right">___________</td></tr><tr><td height="19" width="386" align="left">Building financing obligation</td><td height="19" width="17" align="right"> </td><td height="19" width="75" align="right">39.4 </td><td height="19" width="75" align="right">-</td><td height="19" width="75" align="right">- </td><td height="19" width="75" align="right">39.4 </td></tr><tr><td height="19" width="386" align="left"> </td><td height="19" width="17" align="right"> </td><td height="19" width="75" align="right">____________</td><td height="19" width="75" align="right">____________</td><td height="19" width="75" align="right">____________</td><td height="19" width="75" align="center">____________</td></tr></table>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, 2009 and 2008 of the Company’s financial assets and liabilities which are not measured at fair value on a recurring basis are as follows:<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="278" align="left"> </td><td height="17" width="19" align="left"> </td><td width="199" align="center" height="17" colspan="2">December 31, 2009</td><td width="200" align="center" height="17" colspan="2">December 31, 2008</td></tr><tr><td height="17" width="278" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right">Carrying</td><td height="17" width="99" align="right"> </td><td height="17" width="100" align="right">Carrying</td><td height="17" width="100" align="right"> </td></tr><tr><td height="17" width="278" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right">amount</td><td height="17" width="99" align="right">Fair value</td><td height="17" width="100" align="right">amount</td><td height="17" width="100" align="right">Fair value </td></tr><tr><td height="17" width="278" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right">$’M</td><td height="17" width="99" align="right">$’M</td><td height="17" width="100" align="right">$’M</td><td height="17" width="100" align="right">$’M</td></tr><tr><td height="11" width="278" align="right"> </td><td height="11" width="19" align="right"> </td><td height="11" width="100" align="right">____________</td><td height="11" width="99" align="right">____________</td><td height="11" width="100" align="right">____________</td><td height="11" width="100" align="right">___________</td></tr><tr><td height="17" width="278" align="right"> </td><td height="17" width="19" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="99" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td></tr><tr><td height="17" width="278" align="left">Financial assets:</td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right"> </td><td height="17" width="99" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td></tr><tr><td height="17" width="278" align="left">Option over Avexa shares</td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right">- </td><td height="17" width="99" align="right">0.1 </td><td height="17" width="100" align="right">- </td><td height="17" width="100" align="right">- </td></tr><tr><td height="17" width="278" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right"> </td><td height="17" width="99" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td></tr><tr><td height="17" width="278" align="left">Financial liabilities:</td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right"> </td><td height="17" width="99" align="right"> </td><td height="17" width="100" align="right"> </td><td height="17" width="100" align="right"> </td></tr><tr><td height="17" width="278" align="left">Convertible bonds</td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right">1,100.0 </td><td height="17" width="99" align="right">1,067.0 </td><td height="17" width="100" align="right">1,100.0 </td><td height="17" width="100" align="right">892.9 </td></tr><tr><td height="17" width="278" align="left">Building financing obligation</td><td height="17" width="19" align="left"> </td><td height="17" width="100" align="right">46.7 </td><td height="17" width="99" align="right">47.3 </td><td height="17" width="100" align="right">45.6 </td><td height="17" width="100" align="right">40.7 </td></tr><tr><td height="11" width="278" align="right"> </td><td height="11" width="19" align="right"> </td><td height="11" width="100" align="right">____________</td><td height="11" width="99" align="right">____________</td><td height="11" width="100" align="right">____________</td><td height="11" width="100" align="right">___________</td></tr></table>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 carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate to fair value because of the short-term maturity of these amounts. The following methods and assumptions were used to estimate the fair value of each material class of financial instrument: 1. Option over Avexa shares - the fair values of the Avexa shares are based on quoted market prices for the shares. 2. Convertible bonds – the fair value of Shire $1,100 million 2.75% convertible bonds due 2014 is estimated by reference to the market price of the instrument as the convertible bonds are publicly traded. 3. Building financing obligations - the fair value of building financing 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.</div>

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2 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 5/25/10  SEC                               UPLOAD¶     9/11/17    1:21K  Shire plc
 4/14/10  SEC                               UPLOAD¶     9/11/17    1:31K  Shire plc

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Filing Submission 0000950103-10-000520 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Shire plc – ‘10-K’ for 12/31/09 – ‘XML.R33’

On: Friday, 2/26/10, at 12:40pm ET · For: 12/31/09 · Accession #: 950103-10-520 · File #: 0-29630

Previous ‘10-K’: ‘10-K’ on 2/27/09 for 12/31/08 · Next: ‘10-K’ on 2/23/11 for 12/31/10 · Latest: ‘10-K’ on 2/20/18 for 12/31/17 · 2 References: By: SEC – ‘UPLOAD’ on 5/25/10 By: SEC – ‘UPLOAD’ on 4/14/10

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34Filing Table of Contents

‘XML.R33’ — Fair value measurement

This Financial Report is an XBRL XML File.

2 Subsequent Filings that Reference this Filing

Previous ‘10-K’: ‘10-K’ on 2/27/09 for 12/31/08 · Next: ‘10-K’ on 2/23/11 for 12/31/10 · Latest: ‘10-K’ on 2/20/18 for 12/31/17 · 2 References:

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents