Condensed Consolidating and Combining Financial Statements (Tables)

9 Months Ended

Jun. 27, 2014

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 27, 2014

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	0.4	$	125.1	$	202.4	$	—		$	327.9
Accounts receivable, net	—		—		437.8		—			437.8
Inventories	—		—		398.3		—			398.3
Deferred income taxes	—		—		357.7		—			357.7
Prepaid expenses and other current assets	0.5		0.2		127.9		—			128.6
Intercompany receivable	5.3		—		10.1		(15.4		)	—
Total current assets	6.2		125.3		1,534.2		(15.4		)	1,650.3
Property, plant and equipment, net	—		—		1,000.0		—			1,000.0
Goodwill	—		—		854.2		—			854.2
Intangible assets, net	—		—		1,663.4		—			1,663.4
Investment in subsidiaries	1,305.1		4,530.9		—		(5,836.0		)	—
Intercompany loan receivable	26.3		—		1,148.1		(1,174.4		)	—
Other assets	—		40.3		215.2		—			255.5
Total Assets	$	1,337.6	$	4,696.5	$	6,415.1	$	(7,025.8	)	$	5,423.4
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	13.0	$	1.4	$	—		$	14.4
Accounts payable	0.4		0.1		124.8		—			125.3
Accrued payroll and payroll-related costs	0.1		—		76.3		—			76.4
Accrued branded rebates	—		—		21.6		—			21.6
Accrued and other current liabilities	0.6		21.3		379.0		—			400.9
Intercompany payable	8.1		2.0		5.3		(15.4		)	—
Total current liabilities	9.2		36.4		608.4		(15.4		)	638.6
Long-term debt	—		2,182.2		19.1		—			2,201.3
Pension and postretirement benefits	—		—		97.7		—			97.7
Environmental liabilities	—		—		60.9		—			60.9
Deferred income taxes	—		—		772.6		—			772.6
Other income tax liabilities	—		—		123.7		—			123.7
Intercompany loans payable	—		1,174.4		—		(1,174.4		)	—
Other liabilities	—		—		200.2		—			200.2
Total liabilities	9.2		3,393.0		1,882.6		(1,189.8		)	4,095.0
Shareholders' equity	1,328.4		1,303.5		4,532.5		(5,836.0		)	1,328.4
Total Liabilities and Shareholders' Equity	$	1,337.6	$	4,696.5	$	6,415.1	$	(7,025.8	)	$	5,423.4

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 27, 2013

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	1.2	$	56.5	$	217.8	$	—		$	275.5
Accounts receivable, net	—		—		400.8		—			400.8
Inventories	—		—		403.1		—			403.1
Deferred income taxes	—		—		171.1		—			171.1
Prepaid expenses and other current assets	1.0		—		133.4		—			134.4
Intercompany receivable	2.7		—		12.2		(14.9		)	—
Total current assets	4.9		56.5		1,338.4		(14.9		)	1,384.9
Property, plant and equipment, net	—		—		997.4		—			997.4
Goodwill	—		—		532.0		—			532.0
Intangible assets, net	—		—		422.1		—			422.1
Investment in subsidiaries	1,266.1		2,520.4		—		(3,786.5		)	—
Intercompany loan receivable	—		2.4		409.6		(412.0		)	—
Other assets	—		11.2		209.0		—			220.2
Total Assets	$	1,271.0	$	2,590.5	$	3,908.5	$	(4,213.4	)	$	3,556.6
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	—	$	1.5	$	—		$	1.5
Accounts payable	0.1		—		120.8		—			120.9
Accrued payroll and payroll-related costs	0.1		—		66.4		—			66.5
Accrued branded rebates	—		—		34.6		—			34.6
Accrued and other current liabilities	0.6		18.3		357.8		—			376.7
Intercompany payable	12.2		—		2.7		(14.9		)	—
Total current liabilities	13.0		18.3		583.8		(14.9		)	600.2
Long-term debt	—		898.1		20.2		—			918.3
Pension and postretirement benefits	—		—		108.0		—			108.0
Environmental liabilities	—		—		39.5		—			39.5
Deferred income taxes	—		—		310.1		—			310.1
Other income tax liabilities	—		—		153.1		—			153.1
Intercompany loans payable	2.4		409.6		—		(412.0		)	—
Other liabilities	—		—		171.8		—			171.8
Total liabilities	15.4		1,326.0		1,386.5		(426.9		)	2,301.0
Shareholders' equity	1,255.6		1,264.5		2,522.0		(3,786.5		)	1,255.6
Total Liabilities and Shareholders' Equity	$	1,271.0	$	2,590.5	$	3,908.5	$	(4,213.4	)	$	3,556.6

Schedule of Condensed Consolidating and Combining Statements of Comprehensive Income

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended June 27, 2014

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	653.1		$	—		$	653.1
Cost of sales	—			—			368.8			—			368.8
Gross profit	—			—			284.3			—			284.3
Selling, general and administrative expenses	7.0			0.2			214.1			—			221.3
Research and development expenses	—			—			42.7			—			42.7
Separation costs	0.5			—			1.3			—			1.8
Restructuring charges, net	0.2			—			23.6			—			23.8
Gains on divestiture and license	—			—			(0.9		)	—			(0.9		)
Operating (loss) income	(7.7		)	(0.2		)	3.5			—			(4.4		)
Interest expense	—			(24.2		)	1.5			—			(22.7		)
Interest income	—			—			0.3			—			0.3
Other income (expense), net	6.1			—			(6.0		)	—			0.1
Intercompany interest and fees	(2.9		)	—			2.9			—			—
Equity in net income of subsidiaries	(19.6		)	4.8			—			14.8			—
Income (loss) from continuing operations before income taxes	(24.1		)	(19.6		)	2.2			14.8			(26.7		)
Income tax expense (benefit)	—			—			(2.4		)	—			(2.4		)
Income (loss) from continuing operations	(24.1		)	(19.6		)	4.6			14.8			(24.3		)
Loss from discontinued operations, net of income taxes	—			—			0.2			—			0.2
Net income (loss)	(24.1		)	(19.6		)	4.8			14.8			(24.1		)
Other comprehensive loss, net of tax	4.1			4.1			3.9			(8.0		)	4.1
Comprehensive income (loss)	$	(20.0	)	$	(15.5	)	$	8.7		$	6.8		$	(20.0	)

MALLINCKRODT PLC

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended June 28, 2013

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations		Combined
Net sales	$	—		$	—		$	570.0		$	—	$	570.0
Cost of sales	—			—			304.2			—		304.2
Gross profit	—			—			265.8			—		265.8
Selling, general and administrative expenses	0.1			—			166.8			—		166.9
Research and development expenses	—			—			44.8			—		44.8
Separation costs	1.7			0.3			42.2			—		44.2
Restructuring charges, net	—			—			11.3			—		11.3
Gains on divestiture and license	—			—			(0.8		)	—		(0.8		)
Operating income	(1.8		)	(0.3		)	1.5			—		(0.6		)
Interest expense	—			(9.0		)	(0.4		)	—		(9.4		)
Interest income	—			—			—			—		—
Other income (expense), net	—			—			2.1			—		2.1
Intercompany interest and fees	—			—			—			—		—
Equity in net income of subsidiaries	(26.1		)	(16.8		)	—			42.9		—
Income from continuing operations before income taxes	(27.9		)	(26.1		)	3.2			42.9		(7.9		)
Income tax expense	—			—			19.8			—		19.8
Income from continuing operations	(27.9		)	(26.1		)	(16.6		)	42.9		(27.7		)
Loss from discontinued operations, net of income taxes	—			—			(0.2		)	—		(0.2		)
Net income	(27.9		)	(26.1		)	(16.8		)	42.9		(27.9		)
Other comprehensive loss, net of tax	(6.4		)	(6.4		)	(3.0		)	9.4		(6.4		)
Comprehensive income	$	(34.3	)	$	(32.5	)	$	(19.8	)	$	52.3	$	(34.3	)

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the nine months ended June 27, 2014

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	1,751.1		$	—		$	1,751.1
Cost of sales	—			—			948.6			—			948.6
Gross profit	—			—			802.5			—			802.5
Selling, general and administrative expenses	18.9			0.4			542.3			—			561.6
Research and development expenses	—			—			123.1			—			123.1
Separation costs	1.9			—			4.7			—			6.6
Restructuring charges, net	0.2			—			53.3			—			53.5
Gains on divestiture and license	—			—			(14.7		)	—			(14.7		)
Operating (loss) income	(21.0		)	(0.4		)	93.8			—			72.4
Interest expense	—			(47.5		)	2.6			—			(44.9		)
Interest income	—			—			1.1			—			1.1
Other income (expense), net	29.1			—			(30.0		)	—			(0.9		)
Intercompany interest and fees	(6.9		)	—			6.9			—			—
Equity in net income of subsidiaries	31.9			79.7			—			(111.6		)	—
Income from continuing operations before income taxes	33.1			31.8			74.4			(111.6		)	27.7
Income tax (benefit) expense	—			(0.1		)	(6.0		)	—			(6.1		)
Income from continuing operations	33.1			31.9			80.4			(111.6		)	33.8
Loss from discontinued operations, net of income taxes	—			—			(0.7		)	—			(0.7		)
Net income	33.1			31.9			79.7			(111.6		)	33.1
Other comprehensive loss, net of tax	2.0			2.0			1.6			(3.6		)	2.0
Comprehensive income	$	35.1		$	33.9		$	81.3		$	(115.2	)	$	35.1

MALLINCKRODT PLC

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the nine months ended June 28, 2013

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Combined
Net sales	$	—		$	—		$	1,659.3		$	—		$	1,659.3
Cost of sales	—			—			886.5			—			886.5
Gross profit	—			—			772.8			—			772.8
Selling, general and administrative expenses	0.1			—			474.3			—			474.4
Research and development expenses	—			—			122.4			—			122.4
Separation costs	1.7			0.3			68.6			—			70.6
Restructuring charges, net	—			—			17.9			—			17.9
Gains on divestiture and license	—			—			(2.2		)	—			(2.2		)
Operating income	(1.8		)	(0.3		)	91.8			—			89.7
Interest expense	—			(9.0		)	(0.6		)	—			(9.6		)
Interest income	—			—			0.1			—			0.1
Other income (expense), net	—			—			2.3			—			2.3
Intercompany interest and fees	—			—			—			—			—
Equity in net income of subsidiaries	27.1			36.4			—			(63.5		)	—
Income from continuing operations before income taxes	25.3			27.1			93.6			(63.5		)	82.5
Income tax expense	—			—			55.9			—			55.9
Income from continuing operations	25.3			27.1			37.7			(63.5		)	26.6
Loss from discontinued operations, net of income taxes	—			—			(1.3		)	—			(1.3		)
Net income	25.3			27.1			36.4			(63.5		)	25.3
Other comprehensive loss, net of tax	(20.3		)	(20.3		)	(12.9		)	33.2			(20.3		)
Comprehensive income	$	5.0		$	6.8		$	23.5		$	(30.3	)	$	5.0

Schedule of Condensed Consolidating and Combining Statements of Cash Flows

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended June 27, 2014

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Cash Flows From Operating Activities:
Net cash (used in) provided by operating activities	$	9.9		$	(39.2	)	$	197.4		$	—		$	168.1
Cash Flows From Investing Activities:
Capital expenditures	—			—			(80.1		)	—			(80.1		)
Acquisitions and intangibles, net of cash acquired	—			—			(1,303.2		)	—			(1,303.2		)
Intercompany loan investment	(26.3		)	—			(114.5		)	140.8			—
Repayment of intercompany loan investment	—			2.4			—			(2.4		)	—
Investment in subsidiary	—			(1,300.0		)	—			1,300.0			—
Restricted cash	—			—			4.1			—			4.1
Other	—			—			8.7			—			8.7
Net cash (used in) investing activities	(26.3		)	(1,297.6		)	(1,485.0		)	1,438.4			(1,370.5		)
Cash Flows From Financing Activities:
Issuance of external debt	—			1,296.8			—			—			1,296.8
Repayment of external debt	—			—			(30.1		)	—			(30.1		)
Repayment of capital leases	—			—			(1.1		)	—			(1.1		)
Debt financing costs	—			(32.2		)	—			—			(32.2		)
Excess tax benefit from share-based compensation	—			—			5.2			—			5.2
Proceeds from exercise of share options	19.9			—			—			—			19.9
Purchase of treasury shares	(1.9		)	—			—			—			(1.9		)
Advances from intercompany borrowings	—			140.8			—			(140.8		)	—
Payment on intercompany borrowings	(2.4		)	—			—			2.4			—
Capital contribution	—			—			1,300.0			(1,300.0		)	—
Net cash provided by (used in) financing activities	15.6			1,405.4			1,274.0			(1,438.4		)	1,256.6
Effect of currency rate changes on cash	—			—			(1.8		)	—			(1.8		)
Net increase in cash and cash equivalents	(0.8		)	68.6			(15.4		)	—			52.4
Cash and cash equivalents at beginning of period	1.2			56.5			217.8			—			275.5
Cash and cash equivalents at end of period	$	0.4		$	125.1		$	202.4		$	—		$	327.9

MALLINCKRODT PLC

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the nine months ended June 28, 2013

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Combined
Cash Flows From Operating Activities:
Net cash (used in) provided by operating activities	$	—	$	(7.5	)	$	13.7		$	—		$	6.2
Cash Flows From Investing Activities:
Capital expenditures	—		—			(110.5		)	—			(110.5		)
Acquisition, net of cash acquired	—		—			(88.1		)	—			(88.1		)
Intercompany loan investment	—		—			(371.9		)	371.9			—
Restricted cash	—		—			—			—			—
Other	—		—			0.1			—			0.1
Net cash (used in) investing activities	—		—			(570.4		)	371.9			(198.5		)
Cash Flows From Financing Activities:
Issuance of external debt	—		898.1			—			—			898.1
Repayment of capital leases	—		—			(1.0		)	—			(1.0		)
Debt financing costs	—		(12.0		)	—			—			(12.0		)
Excess tax benefit from share-based compensation	—		—			3.4			—			3.4
Net transfers from (to) parent	—		(1,200.1		)	684.2			—			(515.9		)
Intercompany loan borrowings	—		371.9			—			(371.9		)	—
Other	—		—			0.1			—			0.1
Net cash provided by (used in) financing activities	—		57.9			686.7			(371.9		)	372.7
Effect of currency rate changes on cash	—		—			—			—			—
Net increase in cash and cash equivalents	—		50.4			130.0			—			180.4
Cash and cash equivalents at beginning of period	—		—			—			—			—
Cash and cash equivalents at end of period	$	—	$	50.4		$	130.0		$	—		$	180.4