Segment and Geographical Data

12 Months Ended

Sep. 25, 2015

Segment Reporting [Abstract]

Segment and Geographical Data

21. Segment and Geographical Data

During the first quarter of fiscal 2015, the Company changed its reportable segments to present the Specialty Brands and Specialty Generics businesses as reportable segments. The Company historically presented the Specialty Brands and Specialty Generics businesses within the Specialty Pharmaceuticals segment.

During the fourth quarter of fiscal 2015, the Company announced that it had entered into a definitive agreement to sell its CMDS business to Guerbet, which is expected to be completed during the first quarter of fiscal 2016. The CMDS business is deemed to be held for sale and the financial results of this business are presented as a discontinued operation. The CMDS business has been eliminated from the Global Medical Imaging segment, which has been renamed Nuclear Imaging.

Prior year amounts have been recast to conform to current presentation.

The three reportable segments are further described below:

• Specialty Brands produces and markets branded pharmaceuticals and biopharmaceuticals;

• Specialty Generics produces specialty generic pharmaceuticals and API consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients; and

• Nuclear Imaging manufactures and markets radiopharmaceuticals (nuclear medicine).

Management measures and evaluates the Company's operating segments based on segment net sales and operating income. Management excludes corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. These items include revenues and expenses associated with sales of products to Covidien, intangible asset amortization, net restructuring and related charges, non-restructuring impairments and separation costs. Although these amounts are excluded from segment operating income, as applicable, they are included in reported consolidated and combined operating income and in the following reconciliations.

Management manages assets on a total company basis, not by operating segment.  The chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, the Company does not report asset information by operating segment.  Total assets were approximately $16.4 billion and $12.8 billion at September 25, 2015 and September 26, 2014, respectively.

Selected information by business segment is as follows:

	Fiscal Year
	2015		2014		2013
Net sales:
Specialty Brands	1,622.8		413.5		206.4
Specialty Generics	1,251.6		1,199.4		1,011.2
Nuclear Imaging	423.8		431.7		437.6
Net sales of operating segments (1)	3,298.2		2,044.6		1,655.2
Other (2)	48.7		37.4		57.1
Net sales	3,346.9		2,082.0		1,712.3
Operating income:
Specialty Brands	651.3		(50.6	)	(36.2	)
Specialty Generics	622.0		617.4		347.9
Nuclear Imaging	66.4		(16.7	)	24.5
Segment operating income	1,339.7		550.1		336.2
Unallocated amounts:
Corporate and allocated expenses (3)	(286.9	)	(228.1	)	(134.3	)
Intangible asset amortization	(550.3	)	(154.8	)	(27.9	)
Restructuring and related charges, net (4)	(40.7	)	(81.9	)	(26.3	)
Non-restructuring impairments	—		(151.6	)	—
Separation costs	—		(9.6	)	(74.2	)
Operating income (loss)	461.8		(75.9	)	73.5
Depreciation and amortization (5):
Specialty Brands	559.8		152.9		24.9
Specialty Generics	81.9		77.8		72.7
Nuclear Imaging	12.4		18.8		18.5
Depreciation and amortization	654.1		249.5		116.1

(1) Amounts represent sales to external customers. There were no intersegment sales.

(2) Represents historical CMDS-related intercompany transactions that represent Mallinckrodt continuing operations under an ongoing supply agreement with the acquirer of the CMDS business.

(3) Includes administration expenses and certain compensation, environmental and other costs not charged to the Company's operating segments.

(4) Includes restructuring-related accelerated depreciation.

(5) Depreciation for certain shared facilities is allocated based on occupancy percentage.

Net sales by product family within the Company's segments are as follows:

	Fiscal Year
	2015		2014		2013
Acthar	$	1,037.3	$	122.9	$	—
Ofirmev	263.0		124.4		—
Inomax	185.2		—		—
Exalgo	39.4		76.1		126.1
Other	97.9		90.1		80.3
Specialty Brands	1,622.8		413.5		206.4
Hydrocodone (API) and hydrocodone-containing tablets	167.2		99.4		140.0
Oxycodone (API) and oxycodone-containing tablets	154.6		155.2		139.0
Methylphenidate ER	136.5		209.6		148.3
Other controlled substances	572.2		584.5		443.3
Other	221.1		150.7		140.6
Specialty Generics	1,251.6		1,199.4		1,011.2
Nuclear Imaging	423.8		431.7		437.6
Other (1)	48.7		37.4		57.1
Net sales	$	3,346.9	$	2,082.0	$	1,712.3

(1) Represents historical CMDS-related intercompany transactions that represent Mallinckrodt continuing operations under an ongoing supply agreement with the acquirer of the CMDS business.

Selected information by geographic area excluding assets held for sale is as follows:

	Fiscal Year
	2015		2014		2013
Net sales (1):
U.S.	$	2,973.2	$	1,780.9	$	1,421.6
Europe, Middle East and Africa	236.2		250.3		250.1
Other	137.5		50.8		40.6
	$	3,346.9	$	2,082.0	$	1,712.3
Long-lived assets (2):
U.S.	$	905.2	$	829.1
Europe, Middle East and Africa (3)	45.0		33.9
Other	44.5		41.0
	$	994.7	$	904.0

(1) Net sales are attributed to regions based on the location of the entity that records the transaction, none of which relate to the country of Ireland.

(2) Long-lived assets are primarily composed of property, plant and equipment.

(3) Includes long-lived assets located in Ireland of $10.7 million, and $0.4 million at the end of fiscal 2015 and 2014, respectively.