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Share Plans (Tables)

12 Months Ended

Sep. 26, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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:

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 shares granted in fiscal 2014, along with the weighted-average grant-date fair value, were as follows:



	2014
Expected share price volatility	32		%
Risk-free interest rate	1.96		%
Expected annual dividend per share	—		%
Expected life of options (in years)	5.5
Fair value per option	$	17.38

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 September 27, 2013	2,760,231		$	37.30
Granted	675,921		52.63
Converted from Questcor Acquisition	1,292,736		25.08
Exercised	(878,330	)	30.96
Expired/Forfeited	(323,769	)	41.83
Outstanding at September 26, 2014	3,526,789		36.84		6.4	$	187.5

Vested and unvested expected to vest as of September 26, 2014	3,362,751		36.27		6.5	180.7
Exercisable at September 26, 2014	832,680		31.32		4.7	48.8

Share-based Compensation, Performance Shares Award Outstanding Activity

PSU activity is as follows ⁽¹⁾:



	Shares		Weighted-Average Grant-Date Fair Value
Non-vested at September 27, 2013	—		$	—
Granted	79,230		63.40
Performance metric adjustment	—		—
Vested	—		—
Forfeited	(6,490	)	62.65
Non-vested at September 26, 2014	72,740		63.46

(1) The number of shares disclosed within this table are at the target number of 100%.

Schedule of Share-based Payment Award, Performance Share Awards, Valuation Assumptions

The assumptions used in the Monte Carlo model for PSUs granted during each year were as follows:



	2014
Expected stock price volatility	28	%
Peer group stock price volatility	33	%
Correlation of returns	17	%

Schedule of Restricted Share Unit Activity

RSU activity is as follows:



	Shares		Weighted-Average Grant-Date Fair Value
Non-vested at June 28, 2013	724,269		$	40.62
Granted	229,281		55.40
Converted from Questcor Acquisition	30,747		70.88
Vested	(300,237	)	34.77
Forfeited	(94,838	)	42.48
Non-vested at September 26, 2014	589,222		47.88

The grant-date fair value of RSAs, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the service period.



	Shares		Weighted-Average Grant-Date Fair Value
Non-vested at September 27, 2013	—		$	—
Granted	—		—
Converted from Questcor Acquisition	1,829,164		70.88
Vested	(390,731	)	70.88
Forfeited	(6,402	)	70.88
Non-vested at September 26, 2014	1,432,031		70.88

- 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.

+ References+ Details

Weighted-Average
Grant-Date
Fair Value

Share options

Restricted share units