Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Dec. 26, 2014

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 26, 2014

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	1.2	$	139.4	$	758.4	$	—		$	899.0
Accounts receivable, net	—		—		508.5		—			508.5
Inventories	—		—		369.3		—			369.3
Deferred income taxes	—		—		146.4		—			146.4
Prepaid expenses and other current assets	1.1		0.1		140.6		—			141.8
Intercompany receivable	10.9		—		30.4		(41.3		)	—
Total current assets	13.2		139.5		1,953.6		(41.3		)	2,065.0
Property, plant and equipment, net	—		—		945.6		—			945.6
Goodwill	—		—		2,413.7		—			2,413.7
Intangible assets, net	—		—		6,984.9		—			6,984.9
Investment in subsidiaries	703.3		10,830.7		5,061.6		(16,595.6		)	—
Intercompany loan receivable	4,396.9		—		2,116.9		(6,513.8		)	—
Other assets	—		73.4		291.0		—			364.4
Total Assets	$	5,113.4	$	11,043.6	$	19,767.3	$	(23,150.7	)	$	12,773.6
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	19.9	$	3.0	$	—		$	22.9
Accounts payable	10.0		0.4		112.0		—			122.4
Accrued payroll and payroll-related costs	—		—		44.8		—			44.8
Accrued royalties	—		—		69.0		—			69.0
Accrued and other current liabilities	1.2		42.2		462.5		—			505.9
Intercompany payable	30.4		—		10.9		(41.3		)	—
Total current liabilities	41.6		62.5		702.2		(41.3		)	765.0
Long-term debt	—		3,765.7		176.5		—			3,942.2
Pension and postretirement benefits	—		—		116.2		—			116.2
Environmental liabilities	—		—		62.0		—			62.0
Deferred income taxes	—		—		2,344.1		—			2,344.1
Other income tax liabilities	—		—		120.3		—			120.3
Intercompany loans payable	—		2,153.8		4,360.0		(6,513.8		)	—
Other liabilities	—		—		352.0		—			352.0
Total liabilities	41.6		5,982.0		8,233.3		(6,555.1		)	7,701.8
Shareholders' Equity	5,071.8		5,061.6		11,534.0		(16,595.6		)	5,071.8
Total Liabilities and Shareholders' Equity	$	5,113.4	$	11,043.6	$	19,767.3	$	(23,150.7	)	$	12,773.6

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 26, 2014

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	0.3	$	18.5	$	689.0	$	—		$	707.8
Accounts receivable, net	—		—		545.6		—			545.6
Inventories	—		—		396.6		—			396.6
Deferred income taxes	—		—		165.2		—			165.2
Prepaid expenses and other current assets	0.5		10.8		244.5		—			255.8
Intercompany receivable	13.5		—		25.7		(39.2		)	—
Total current assets	14.3		29.3		2,066.6		(39.2		)	2,071.0
Property, plant and equipment, net	—		—		949.2		—			949.2
Goodwill	—		—		2,401.9		—			2,401.9
Intangible assets, net	—		—		7,112.2		—			7,112.2
Investment in subsidiaries	586.8		10,645.7		4,945.1		(16,177.6		)	—
Intercompany loan receivable	4,385.0		—		1,941.6		(6,326.6		)	—
Other assets	—		76.5		254.0		—			330.5
Total Assets	$	4,986.1	$	10,751.5	$	19,670.6	$	(22,543.4	)	$	12,864.8
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	18.2	$	3.0	$	—		$	21.2
Accounts payable	1.2		0.2		127.3		—			128.7
Accrued payroll and payroll-related costs	0.1		—		125.0		—			125.1
Accrued royalties	—		—		68.0		—			68.0
Accrued and other current liabilities	1.1		50.9		509.8		—			561.8
Intercompany payable	25.7		—		13.5		(39.2		)	—
Total current liabilities	28.1		69.3		846.6		(39.2		)	904.8
Long-term debt	—		3,770.4		181.1		—			3,951.5
Pension and postretirement benefits	—		—		119.1		—			119.1
Environmental liabilities	—		—		59.9		—			59.9
Deferred income taxes	—		—		2,398.6		—			2,398.6
Other income tax liabilities	—		—		122.6		—			122.6
Intercompany loans payable	—		1,966.6		4,360.0		(6,326.6		)	—
Other liabilities	—		—		350.3		—			350.3
Total liabilities	28.1		5,806.3		8,438.2		(6,365.8		)	7,906.8
Shareholders' Equity	4,958.0		4,945.2		11,232.4		(16,177.6		)	4,958.0
Total Liabilities and Shareholders' Equity	$	4,986.1	$	10,751.5	$	19,670.6	$	(22,543.4	)	$	12,864.8

Schedule of Condensed Consolidating Statements of Comprehensive Income

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended December 26, 2014

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	866.3		$	—		$	866.3
Cost of sales	—			—			427.6			—			427.6
Gross profit	—			—			438.7			—			438.7
Selling, general and administrative expenses	30.7			0.1			231.7			—			262.5
Research and development expenses	—			—			42.4			—			42.4
Restructuring charges, net	6.8			—			0.4			—			7.2
Gains on divestiture and license	—			—			(0.8		)	—			(0.8		)
Operating (loss) income	(37.5		)	(0.1		)	165.0			—			127.4
Interest expense	—			(48.7		)	(0.1		)	—			(48.8		)
Interest income	—			—			0.1			—			0.1
Other income (expense), net	3.5			—			0.6			—			4.1
Intercompany interest and fees	(1.9		)	—			1.9			—			—
Equity in net income of subsidiaries	128.6			177.4			128.6			(434.6		)	—
Income from continuing operations before income taxes	92.7			128.6			296.1			(434.6		)	82.8
Income tax benefit	—			—			(9.3		)	—			(9.3		)
Income (loss) from continuing operations	92.7			128.6			305.4			(434.6		)	92.1
Income from discontinued operations, net of income taxes	—			—			0.6			—			0.6
Net income	92.7			128.6			306.0			(434.6		)	92.7
Other comprehensive loss, net of tax	(21.3		)	(21.3		)	(42.7		)	64.0			(21.3		)
Comprehensive income	$	71.4		$	107.3		$	263.3		$	(370.6	)	$	71.4

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended December 27, 2013

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	540.2		$	—		$	540.2
Cost of sales	—			—			284.6			—			284.6
Gross profit	—			—			255.6			—			255.6
Selling, general and administrative expenses	4.0			0.1			142.1			—			146.2
Research and development expenses	—			—			39.0			—			39.0
Separation costs	0.8			—			1.4			—			2.2
Restructuring charges, net	—			—			8.0			—			8.0
Gains on divestiture and license	—			—			(12.9		)	—			(12.9		)
Operating (loss) income	(4.8		)	(0.1		)	78.0			—			73.1
Interest expense	—			(10.5		)	0.7			—			(9.8		)
Interest income	—			—			0.3			—			0.3
Other income (expense), net	0.7			—			(1.3		)	—			(0.6		)
Intercompany interest and fees	(3.1		)	—			3.1			—			—
Equity in net income of subsidiaries	52.6			63.2			—			(115.8		)	—
Income from continuing operations before income taxes	45.4			52.6			80.8			(115.8		)	63.0
Income tax (benefit) expense	(0.2		)	—			16.8			—			16.6
Income from continuing operations	45.6			52.6			64.0			(115.8		)	46.4
Loss from discontinued operations, net of income taxes	—			—			(0.8		)	—			(0.8		)
Net income	45.6			52.6			63.2			(115.8		)	45.6
Other comprehensive income, net of tax	0.2			0.2			0.1			(0.3		)	0.2
Comprehensive income	$	45.8		$	52.8		$	63.3		$	(116.1	)	$	45.8

Schedule of Condensed Consolidating Statements of Cash Flows

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended December 26, 2014

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Cash Flows From Operating Activities:
Net cash provided by (used in) operating activities	$	14.7		$	(38.3	)	$	240.4		$	—		$	216.8
Cash Flows From Investing Activities:
Capital expenditures	—			—			(22.3		)	—			(22.3		)
Intercompany loan investment	(11.9		)	—			(170.6		)	182.5			—
Investment in subsidiary	—			(20.0		)	—			20.0			—
Restricted cash	—			—			0.4			—			0.4
Other	—			—			1.0			—			1.0
Net cash used in investing activities	(11.9		)	(20.0		)	(191.5		)	202.5			(20.9		)
Cash Flows From Financing Activities:
Repayment of external debt and capital leases	—			(3.3		)	(4.5		)	—			(7.8		)
Excess tax benefit from share-based compensation	—			—			8.9			—			8.9
Proceeds from exercise of share options	8.7			—			—			—			8.7
Repurchase of shares	(10.6		)	—			—			—			(10.6		)
Intercompany loan borrowings, net	—			182.5			—			(182.5		)	—
Capital contribution	—			—			20.0			(20.0		)	—
Net cash (used in) provided by financing activities	(1.9		)	179.2			24.4			(202.5		)	(0.8		)
Effect of currency rate changes on cash	—			—			(3.9		)	—			(3.9		)
Net increase in cash and cash equivalents	0.9			120.9			69.4			—			191.2
Cash and cash equivalents at beginning of period	0.3			18.5			689.0			—			707.8
Cash and cash equivalents at end of period	$	1.2		$	139.4		$	758.4		$	—		$	899.0

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended December 27, 2013

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Cash Flows From Operating Activities:
Net cash provided by (used in) operating activities	$	(5.0	)	$	(20.0	)	$	47.1		$	—		$	22.1
Cash Flows From Investing Activities:
Capital expenditures	—			—			(21.7		)	—			(21.7		)
Intercompany loan investment	—			(1.5		)	0.1			1.4			—
Restricted cash	—			—			4.1			—			4.1
Other	—			—			5.0			—			5.0
Net cash used in investing activities	—			(1.5		)	(12.5		)	1.4			(12.6		)
Cash Flows From Financing Activities:
Repayment of external debt and capital leases	—			—			(0.3		)	—			(0.3		)
Excess tax benefit from share-based compensation	—			—			1.3			—			1.3
Proceeds from exercise of share options	4.2			—			—			—			4.2
Repurchase of shares	(0.9		)	—			—			—			(0.9		)
Intercompany loan borrowings, net	1.5			(0.1		)	—			(1.4		)	—
Other	0.1			—			(0.2		)	—			(0.1		)
Net cash provided by (used in) financing activities	4.9			(0.1		)	0.8			(1.4		)	4.2
Effect of currency rate changes on cash	—			—			(1.4		)	—			(1.4		)
Net (decrease) increase in cash and cash equivalents	(0.1		)	(21.6		)	34.0			—			12.3
Cash and cash equivalents at beginning of period	1.2			56.5			217.8			—			275.5
Cash and cash equivalents at end of period	$	1.1		$	34.9		$	251.8		$	—		$	287.8