Condensed Consolidating and Combining Financial Statements (Tables)

12 Months Ended

Sep. 25, 2015

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 25, 2015

(in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	0.1	$	152.1	$	213.7	$	—		$	365.9
Accounts receivable, net	—		—		548.5		—			548.5
Inventories	—		—		281.8		—			281.8
Deferred income taxes	—		—		142.7		—			142.7
Prepaid expenses and other current assets	1.3		0.2		205.8		—			207.3
Current assets held for sale	—		—		299.9		—			299.9
Intercompany receivable	39.1		128.6		9,699.5		(9,867.2		)	—
Total current assets	40.5		280.9		11,391.9		(9,867.2		)	1,846.1
Property, plant and equipment, net	—		—		991.3		—			991.3
Goodwill	—		—		3,649.4		—			3,649.4
Intangible assets, net	—		—		9,666.3		—			9,666.3
Long-term assets held for sale	—		—		—		—			—
Investment in subsidiaries	14,797.7		18,838.6		10,050.0		(43,686.3		)	—
Intercompany loan receivable	174.4		—		2,498.2		(2,672.6		)	—
Other assets	—		0.1		250.9		—			251.0
Total Assets	$	15,012.6	$	19,119.6	$	38,498.0	$	(56,226.1	)	$	16,404.1
										—
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	20.0	$	2.3	$	—		$	22.3
Accounts payable	—		0.2		132.8		—			133.0
Accrued payroll and payroll-related costs	0.1		—		103.6		—			103.7
Accrued royalties	—		—		29.3		—			29.3
Accrued and other current liabilities	1.8		77.4		489.1		—			568.3
Current liabilities held for sale	—		—		72.8		—			72.8
Intercompany payable	9,699.5		—		167.7		(9,867.2		)	—
Total current liabilities	9,701.4		97.6		997.6		(9,867.2		)	929.4
Long-term debt	—		6,299.4		174.9		—			6,474.3
Pension and postretirement benefits	—		—		116.7		—			116.7
Environmental liabilities	—		—		73.3		—			73.3
Deferred income taxes	—		—		3,132.4		—			3,132.4
Other income tax liabilities	—		—		121.3		—			121.3
Long-term liabilities held for sale	—		—		—		—			—
Intercompany loans payable	—		2,672.6		—		(2,672.6		)	—
Other liabilities	—		—		245.5		—			245.5
Total liabilities	9,701.4		9,069.6		4,861.7		(12,539.8		)	11,092.9
Shareholders' equity	5,311.2		10,050.0		33,636.3		(43,686.3		)	5,311.2
Total Liabilities and Shareholders' Equity	$	15,012.6	$	19,119.6	$	38,498.0	$	(56,226.1	)	$	16,404.1

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 26, 2014

(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	—		—		476.6		—			476.6
Inventories	—		—		306.4		—			306.4
Deferred income taxes	—		—		152.3		—			152.3
Prepaid expenses and other current assets	0.5		10.8		215.8		—			227.1
Current assets held for sale	—		—		200.8		—			200.8
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	—		—		886.8		—			886.8
Goodwill	—		—		2,401.9		—			2,401.9
Intangible assets, net	—		—		7,082.2		—			7,082.2
Long-term assets held for sale	—		—		111.2		—			111.2
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	—		—		234.2		—			234.2
Total Assets	$	4,986.1	$	10,675.0	$	19,669.6	$	(22,543.4	)	$	12,787.3
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	18.2	$	3.0	$	—		$	21.2
Accounts payable	1.2		0.2		109.3		—			110.7
Accrued payroll and payroll-related costs	0.1		—		116.2		—			116.3
Accrued royalties	—		—		67.7		—			67.7
Accrued and other current liabilities	1.1		50.9		477.9		—			529.9
Current liabilities held for sale	—		—		59.0		—			59.0
Intercompany payable	25.7		—		13.5		(39.2		)	—
Total current liabilities	28.1		69.3		846.6		(39.2		)	904.8
Long-term debt	—		3,693.9		180.1		—			3,874.0
Pension and postretirement benefits	—		—		116.2		—			116.2
Environmental liabilities	—		—		59.2		—			59.2
Deferred income taxes	—		—		2,399.6		—			2,399.6
Other income tax liabilities	—		—		122.6		—			122.6
Long-term liabilities held for sale	—		—		9.7		—			9.7
Intercompany loans payable	—		1,966.6		4,360.0		(6,326.6		)	—
Other liabilities	—		—		343.2		—			343.2
Total liabilities	28.1		5,729.8		8,437.2		(6,365.8		)	7,829.3
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	$	10,675.0	$	19,669.6	$	(22,543.4	)	$	12,787.3

Schedule of Condensed Consolidating and Combining Statements of Comprehensive Income

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Fiscal year ended September 25, 2015

(in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	3,346.9		$	—		$	3,346.9
Cost of sales	—			—			1,493.3			—			1,493.3
Gross profit	—			—			1,853.6			—			1,853.6
Selling, general and administrative expenses	116.3			15.7			1,037.8			—			1,169.8
Research and development expenses	—			—			185.1			—			185.1
Restructuring charges, net	9.8			—			30.6			—			40.4
Gains on divestiture and license	—			—			(3.5		)	—			(3.5		)
Operating income (loss)	(126.1		)	(15.7		)	603.6			—			461.8
													—
Interest expense	(96.4		)	(230.2		)	(25.2		)	96.2			(255.6		)
Interest income	—			0.1			97.1			(96.2		)	1.0
Other income (expense), net	216.3			—			(208.2		)	—			8.1
Intercompany interest and fees	(14.7		)	—			14.7			—			—
Equity in net income of subsidiaries	330.6			496.3			250.5			(1,077.4		)	—
Income from continuing operations before income taxes	309.7			250.5			732.5			(1,077.4		)	215.3
Benefit from income taxes	(15.9		)	—			(77.0		)	—			(92.9		)
Income from continuing operations	325.6			250.5			809.5			(1,077.4		)	308.2
Gain (loss) from discontinued operations, net of income taxes	(0.9		)	—			17.4			—			16.5
Net income	324.7			250.5			826.9			(1,077.4		)	324.7
Other comprehensive loss, net of tax	(64.8		)	(64.8		)	(69.9		)	134.7			(64.8		)
Comprehensive income	$	259.9		$	185.7		$	757.0		$	(942.7	)	$	259.9

MALLINCKRODT PLC

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

Fiscal year ended September 26, 2014

(in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Combined
Net sales	$	—		$	—		$	2,082.0		$	—		$	2,082.0
Cost of sales	—			—			1,021.8			—			1,021.8
Gross profit	—			—			1,060.2			—			1,060.2
Selling, general and administrative expenses	37.7			7.3			700.0			—			745.0
Research and development expenses	—			—			163.5			—			163.5
Restructuring charges, net	35.3			—			46.1			—			81.4
Non-restructuring impairments	—			—			151.6			—			151.6
Separation costs	2.5			—			7.1			—			9.6
Gains on divestiture and license	—			—			(15.0		)	—			(15.0		)
Operating (loss) income	(75.5		)	(7.3		)	6.9			—			(75.9		)
Interest expense	—			(86.3		)	—			3.7			(82.6		)
Interest income	—			—			5.2			(3.7		)	1.5
Other income (expense), net	30.9			—			(27.8		)	—			3.1
Intercompany interest and fees	(9.0		)	—			9.0			—			—
Equity in net income of subsidiaries	(264.8		)	(171.2		)	(300.2		)	736.2			—
Loss from continuing operations before income taxes	(318.4		)	(264.8		)	(306.9		)	736.2			(153.9		)
Benefit from income taxes	—			—			(10.1		)	—			(10.1		)
Loss from continuing operations	(318.4		)	(264.8		)	(296.8		)	736.2			(143.8		)
Loss from discontinued operations, net of income taxes	(0.9		)	—			(174.6		)	—			(175.5		)
Net loss	(319.3		)	(264.8		)	(471.4		)	736.2			(319.3		)
Other comprehensive loss, net of tax	(42.8		)	(42.8		)	(84.1		)	126.9			(42.8		)
Comprehensive loss	$	(362.1	)	$	(307.6	)	$	(555.5	)	$	863.1		$	(362.1	)

MALLINCKRODT PLC

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

Fiscal year ended September 27, 2013

(in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Combined
Net sales	$	—		$	—		$	1,712.3		$	—		$	1,712.3
Cost of sales	—			—			890.0			—			890.0
Gross profit	—			—			822.3			—			822.3
Selling, general and administrative expenses	5.2			0.1			490.6			—			495.9
Research and development expenses	—			—			157.9			—			157.9
Restructuring charges, net	—			—			23.7			—			23.7
Separation costs	3.2			0.6			70.4			—			74.2
Gains on divestiture and license	—			—			(2.9		)	—			(2.9		)
Operating income (loss)	(8.4		)	(0.7		)	82.6			—			73.5
Interest expense	—			(19.6		)	0.1			—			(19.5		)
Interest income	—			—			0.3			—			0.3
Other income (expense), net	0.2			—			1.2			—			1.4
Intercompany interest and fees	(9.5		)	—			9.5			—			—
Equity in net income of subsidiaries	76.4			96.7			—			(173.1		)	—
Income from continuing operations before income taxes	58.7			76.4			93.7			(173.1		)	55.7
Provision for (benefit from) income taxes	(0.3		)	—			47.8			—			47.5
Income from continuing operations	59.0			76.4			45.9			(173.1		)	8.2
Gain (loss) from discontinued operations, net of income taxes	(0.2		)	—			50.8			—			50.6
Net income	58.8			76.4			96.7			(173.1		)	58.8
Other comprehensive income, net of tax	28.4			28.4			35.7			(64.1		)	28.4
Comprehensive income	$	87.2		$	104.8		$	132.4		$	(237.2	)	$	87.2

Schedule of Condensed Consolidating and Combining Statements of Cash Flows

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Fiscal year ended September 25, 2015

(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	$	207.0		$	(148.2	)	$	837.6		$	—		$	896.4
Cash Flows From Investing Activities:
Capital expenditures	—			—			(148.0		)	—			(148.0		)
Acquisitions and intangibles, net of cash acquired	—			—			(2,154.7		)	—			(2,154.7		)
Intercompany loan investment	(149.4		)	—			(554.2		)	703.6			—
Investment in subsidiary	—			(3,014.4		)	—			3,014.4			—
Restricted cash	—			—			3.1			—			3.1
Other	—			—			3.0			—			3.0
Net cash used in investing activities	(149.4		)	(3,014.4		)	(2,850.8		)	3,718.0			(2,296.6		)
Cash Flows From Financing Activities:
Issuance of external debt	—			2,890.0			120.0			—			3,010.0
Repayment of external debt and capital leases	—			(258.3		)	(1,590.1		)	—			(1,848.4		)
Excess tax benefit from share-based compensation	—			—			34.1			—			34.1
Debt financing costs	—			(39.1		)	(0.8		)	—			(39.9		)
Proceeds from exercise of share options	34.4			—			—			—			34.4
Intercompany loan borrowings	—			703.6			—			(703.6		)	—
Capital contribution	—			—			3,014.4			(3,014.4		)	—
Repurchase of shares	(92.2		)	—			—			—			(92.2		)
Other	—			—			(28.1		)	—			(28.1		)
Net cash provided by financing activities	(57.8		)	3,296.2			1,549.5			(3,718.0		)	1,069.9
Effect of currency rate changes on cash	—			—			(11.6		)	—			(11.6		)
Net (decrease) increase in cash and cash equivalents	(0.2		)	133.6			(475.3		)	—			(341.9		)
Cash and cash equivalents at beginning of period	0.3			18.5			689.0			—			707.8
Cash and cash equivalents at end of period	0.1			152.1			213.7			—			365.9

MALLINCKRODT PLC

CONDENSED COMBINING STATEMENT OF CASH FLOWS

Fiscal year ended September 26, 2014

(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	$	18.2		$	(65.0	)		$	420.2			$	—		$	373.4
Cash Flows From Investing Activities:
Capital expenditures	—			—				(127.8		)		—			(127.8		)
Acquisitions and intangibles, net of cash acquired	—			—				(2,793.8		)		—			(2,793.8		)
Intercompany loan investment	(25.0		)	(298.1		)		(915.8		)		1,238.9			—
Subsidiary dividend proceeds	—			300.5				—				(300.5		)	—
Investment in subsidiary	—			(3,735.5		)		—				3,735.5			—
Restricted Cash	—			—				4.1				—			4.1
Other	—			—				26.7				—			26.7
Net cash used in investing activities	(25.0		)	(3,733.1		)		(3,806.6		)	—	4,673.9			(2,890.8		)
Cash Flows From Financing Activities:
Issuance of external debt	—			2,893.3				149.9				—			3,043.2
Repayment of external debt and capital leases	—			(3.3		)		(31.5		)		—			(34.8		)
Excess tax benefit from share-based compensation	—			—				8.9				—			8.9
Debt financing costs	—			(70.7		)		(1.0		)		—			(71.7		)
Proceeds from exercise of share options	25.8			—				—				—			25.8
Subsidiary dividend payment	—			—				(300.5		)		300.5			—
Intercompany loan borrowings	(2.4		)	940.8				300.5				(1,238.9		)	—
Capital contribution	—			—				3,735.5				(3,735.5		)	—
Repurchase of shares	(17.5		)	—				—				—			(17.5		)
Other	—			—				—				—			—
Net cash provided by financing activities	5.9			3,760.1			—	3,861.8				(4,673.9		)	2,953.9
Effect of currency rate changes on cash	—			—				(4.2		)		—			(4.2		)
Net increase (decrease) in cash and cash equivalents	(0.9		)	(38.0		)		471.2				—			432.3
Cash and cash equivalents at beginning of period	1.2			56.5				217.8				—			275.5
Cash and cash equivalents at end of period	$	0.3		$	18.5			$	689.0			$	—		$	707.8

MALLINCKRODT PLC

CONDENSED COMBINING STATEMENT OF CASH FLOWS

Fiscal year ended September 27, 2013

(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	$	(1.8	)	$	(8.4	)		$	146.1			$	—		$	135.9
Cash Flows From Investing Activities:
Capital expenditures	—			—				(147.9		)		—			(147.9		)
Acquisitions and intangibles, net of cash acquired	—			—				(88.1		)		—			(88.1		)
Intercompany loan investment	—			(2.4		)		(409.6		)		412.0			—
Investment in subsidiary	—			(68.0		)		—				68.0			—
Other	—			—				1.3				—			1.3
Net cash used in investing activities	—			(70.4		)		(644.3		)	—	480.0			(234.7		)
Cash Flows From Financing Activities:
Issuance of external debt	—			898.1				—				—			898.1
Repayment of external debt and capital leases	—			—				(1.3		)		—			(1.3		)
Excess tax benefit from share-based compensation	—			—				3.4				—			3.4
Debt financing costs	—			(12.0		)		—				—			(12.0		)
Net transfers to parent	—			(1,160.4		)		644.5				—			(515.9		)
Proceeds from exercise of share options	0.6			—				—				—			0.6
Intercompany loan borrowings	2.4			409.6				—				(412.0		)	—
Capital contribution	—			—				68.0				(68.0		)	—
Other	—			—				0.1				—			0.1
Net cash provided by financing activities	3.0			135.3			—	714.7				(480.0		)	373.0
Effect of currency rate changes on cash	—			—				1.3				—			1.3
Net increase in cash and cash equivalents	1.2			56.5				217.8				—			275.5
Cash and cash equivalents at beginning of period	—			—				—				—			—
Cash and cash equivalents at end of period	$	1.2		$	56.5			$	217.8			$	—		$	275.5