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Share Plans (Tables) (Post-Separation)

12 Months Ended

Sep. 27, 2013

Post-Separation

Schedule of Incentive Equity Awards Issued Upon Completion of Conversion

Mallinckrodt incentive equity awards issued upon completion of the Conversion and the related weighted average grant date fair value is presented below:


	Awards		Weighted- Average Grant-Date Fair Value
Share options		2,399,822	$	7.96
Restricted share units		575,213		38.97

Schedule of Share Option Awards Status Upon Completion of the Conversion

A summary of the status of the Company’s share option awards upon completion of the Conversion on June 28, 2013 is presented below:


	Shares Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 28, 2013		2,399,822	$	35.94		8.0	$	22.9
Exercisable at June 28, 2013		550,097		30.94		5.9		8.0

Schedule of the Valuation Assumptions Used in the Conversion

The weighted-average assumptions used in the Black-Scholes pricing model for determining the fair value of the share option awards immediately before and immediately after the Separation were as follows:


	Pre- Separation			Post- Separation
Expected share price volatility		26	%		32	%
Risk-free interest rate		0.99	%		0.99	%
Expected annual dividend per share		1.65	%		—
Expected life of options (in years)		3.8			3.8
Fair value per option	$	18.04		$	16.51
Share option awards		1,745,258			2,399,822

Schedule of Share Option Activity

Share option activity and information is as follows:


	Share Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 28, 2013		2,399,822		$	35.94
Granted		406,169			44.00
Exercised		(17,332	)		30.04
Expired/Forfeited		(28,428	)		36.85

Outstanding at September 27, 2013		2,760,231			37.30		8.2	$	17.3


Vested and unvested expected to vest as of September 27, 2013		2,394,431			37.27		8.2		15.1

Exercisable at September 27, 2013		536,405			31.04		5.7		6.7

Schedule of Restricted Share Unit Activity

RSU activity is as follows:


	Shares			Weighted- Average Grant-Date Fair Value
Non-vested at June 28, 2013		575,213		$	38.97
Granted		167,546			43.86
Vested		(1,656	)		31.28
Forfeited		(16,834	)		38.57

Non-vested at September 27, 2013		724,269			40.62

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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