Subsequent Events

3 Months Ended

Dec. 25, 2015

Subsequent Events [Abstract]

Subsequent Events

20. Subsequent Events

Acquisition of Hemostasis Products from The Medicines Company

On February 1, 2016, the Company acquired three commercial stage topical hemostasis drugs from The Medicines Company - RECHOTHROM® Thrombin topical (Recombinant), PreveLeak^TM Surgical Sealant, and RAPLIXA^TM (Fibrin Sealant (Human)) - for upfront consideration of approximately $175.0 million, inclusive of existing inventory, and contingent milestone payments that could result in up to $395.0 million of additional consideration. The Company has not yet completed a preliminary purchase price allocation, but expects the purchase price will primarily be attributed to intangible assets and inventory.

Commitments and Contingencies

On January 19, 2016, Tyco International announced it had entered into an agreement with the IRS to resolve certain disputes currently before the U.S. Tax Court. The disputes involve IRS audits of Tyco International for years in which companies that are now subsidiaries of Mallinckrodt were subsidiaries of Tyco International. Mallinckrodt is not a participant in the tax sharing agreement between Medtronic plc (as successor to Covidien plc), Tyco International and TE Connectivity and will not share in or be responsible for any payments to be made under the terms of the tentative resolution. The Company believes that it is adequately reserved for taxes related to periods prior to the legal separation of the Company from Covidien plc and intends to adjust its reserves when the tentative resolution is finalized.