Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Mar. 25, 2016

Mar. 27, 2015

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of March 25, 2016

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	0.1	$	137.9	$	203.4	$	—		$	341.4
Accounts receivable, net	—		—		503.5		—			503.5
Inventories	—		—		377.1		—			377.1
Deferred income taxes	—		—		116.3		—			116.3
Prepaid expenses and other current assets	0.8		0.3		204.5		—			205.6
Current assets held for sale	—		—		1.0		—			1.0
Intercompany receivables	38.9		4.4		10,729.7		(10,773.0		)	—
Total current assets	39.8		142.6		12,135.5		(10,773.0		)	1,544.9
Property, plant and equipment, net	—		—		999.4		—			999.4
Goodwill	—		—		3,645.3		—			3,645.3
Intangible assets, net	—		—		9,425.3		—			9,425.3
Investment in subsidiaries	15,133.9		19,316.0		10,507.3		(44,957.2		)	—
Intercompany loans receivable	22.0		—		1,989.0		(2,011.0		)	—
Other assets	—		—		288.7		—			288.7
Total Assets	$	15,195.7	$	19,458.6	$	38,990.5	$	(57,741.2	)	$	15,903.6
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	19.6	$	2.0	$	—		$	21.6
Accounts payable	—		0.3		117.7		—			118.0
Accrued payroll and payroll-related costs	—		—		99.6		—			99.6
Accrued interest	—		97.8		0.5		—			98.3
Accrued and other current liabilities	1.4		8.9		539.2		—			549.5
Current liabilities held for sale	—		—		5.1		—			5.1
Intercompany payables	10,096.4		633.3		43.3		(10,773.0		)	—
Total current liabilities	10,097.8		759.9		807.4		(10,773.0		)	892.1
Long-term debt	—		6,173.5		236.1		—			6,409.6
Pension and postretirement benefits	—		—		132.7		—			132.7
Environmental liabilities	—		—		72.5		—			72.5
Deferred income taxes	—		—		2,872.2		—			2,872.2
Other income tax liabilities	—		—		118.3		—			118.3
Intercompany loans payable	—		2,011.0		—		(2,011.0		)	—
Other liabilities	—		6.9		301.4		—			308.3
Total Liabilities	10,097.8		8,951.3		4,540.6		(12,784.0		)	10,805.7
Shareholders' Equity	5,097.9		10,507.3		34,449.9		(44,957.2		)	5,097.9
Total Liabilities and Shareholders' Equity	$	15,195.7	$	19,458.6	$	38,990.5	$	(57,741.2	)	$	15,903.6

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 25, 2015

(unaudited, 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 receivables	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
Investment in subsidiaries	14,797.7		18,838.6		10,050.0		(43,686.3		)	—
Intercompany loans 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 interest	—		77.1		3.1		—			80.2
Accrued and other current liabilities	1.8		0.3		515.3		—			517.4
Current liabilities held for sale	—		—		72.8		—			72.8
Intercompany payables	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
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

Schedule of Condensed Consolidating Statements of Comprehensive Income

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the six months ended March 25, 2016

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	1,832.8		$	—		$	1,832.8
Cost of sales	—			—			861.5			—			861.5
Gross profit	—			—			971.3			—			971.3
Selling, general and administrative expenses	24.3			0.5			448.9			—			473.7
Research and development expenses	—			—			122.2			—			122.2
Restructuring charges, net	—			—			15.0			—			15.0
Non-restructuring impairment charges	—			—			16.9			—			16.9
Gains on divestiture and license	—			—			(0.3		)	—			(0.3		)
Operating (loss) income	(24.3		)	(0.5		)	368.6			—			343.8
Interest expense	(137.9		)	(163.4		)	(42.7		)	149.0			(195.0		)
Interest income	—			0.2			149.2			(149.0		)	0.4
Other income (expense), net	80.0			1.6			(80.3		)	—			1.3
Intercompany fees	(6.0		)	—			6.0			—			—
Equity in net income of subsidiaries	403.5			644.0			524.5			(1,572.0		)	—
Income from continuing operations before income taxes	315.3			481.9			925.3			(1,572.0		)	150.5
Income tax benefit	(14.1		)	(3.8		)	(67.8		)	—			(85.7		)
Income from continuing operations	329.4			485.7			993.1			(1,572.0		)	236.2
Income from discontinued operations, net of income taxes	—			38.8			54.4			—			93.2
Net income	329.4			524.5			1,047.5			(1,572.0		)	329.4
Other comprehensive loss, net of tax	(66.0		)	(66.0		)	(132.3		)	198.3			(66.0		)
Comprehensive income	$	263.4		$	458.5		$	915.2		$	(1,373.7	)	$	263.4

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended March 25, 2016

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	918.0		$	—		$	918.0
Cost of sales	—			—			438.4			—			438.4
Gross profit	—			—			479.6			—			479.6
Selling, general and administrative expenses	13.9			0.2			217.1			—			231.2
Research and development expenses	—			—			58.6			—			58.6
Restructuring charges, net	—			—			8.7			—			8.7
Non-restructuring impairment charges	—			—			16.9			—			16.9
Gains on divestiture and license	—			—			(0.2		)	—			(0.2		)
Operating (loss) income	(13.9		)	(0.2		)	178.5			—			164.4
Interest expense	(69.9		)	(81.5		)	(21.7		)	75.9			(97.2		)
Interest income	—			0.2			75.9			(75.9		)	0.2
Other income (expense), net	12.3			(0.1		)	(12.9		)	—			(0.7		)
Intercompany fees	(2.8		)	0.1			2.7			—			—
Equity in net income of subsidiaries	192.5			332.0			252.8			(777.3		)	—
Income from continuing operations before income taxes	118.2			250.5			475.3			(777.3		)	66.7
Income tax benefit	(0.1		)	(3.8		)	(49.7		)	—			(53.6		)
Income from continuing operations	118.3			254.3			525.0			(777.3		)	120.3
Income (loss) from discontinued operations, net of income taxes	—			(1.5		)	(0.5		)	—			(2.0		)
Net income	118.3			252.8			524.5			(777.3		)	118.3
Other comprehensive loss, net of tax	0.2			0.2			0.2			(0.4		)	0.2
Comprehensive income	$	118.5		$	253.0		$	524.7		$	(777.7	)	$	118.5

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended March 27, 2015

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	819.0		$	—		$	819.0
Cost of sales	—			—			356.1			—			356.1
Gross profit	—			—			462.9			—			462.9
Selling, general and administrative expenses	31.7			0.1			276.6			—			308.4
Research and development expenses	—			—			58.0			—			58.0
Restructuring charges, net	0.9			—			2.6			—			3.5
Gains on divestiture and license	—			—			(0.9		)	—			(0.9		)
Operating (loss) income	(32.6		)	(0.1		)	126.6			—			93.9
Interest expense	—			(49.0		)	(8.4		)	—			(57.4		)
Interest income	—			—			0.4			—			0.4
Other income (expense), net	138.9			—			(134.7		)	—			4.2
Intercompany fees	(3.1		)	—			3.1			—			—
Equity in net income of subsidiaries	(4.4		)	44.7			(4.4		)	(35.9		)	—
Income (loss) from continuing operations before income taxes	98.8			(4.4		)	(17.4		)	(35.9		)	41.1
Income tax benefit	—			—			(34.1		)	—			(34.1		)
Income (loss) from continuing operations	98.8			(4.4		)	16.7			(35.9		)	75.2
Income from discontinued operations, net of income taxes	—			—			23.6			—			23.6
Net income (loss)	98.8			(4.4		)	40.3			(35.9		)	98.8
Other comprehensive loss, net of tax	(36.5		)	(36.5		)	(73.1		)	109.6			(36.5		)
Comprehensive income (loss)	$	62.3		$	(40.9	)	$	(32.8	)	$	73.7		$	62.3

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the six months ended March 27, 2015

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	1,587.2		$	—		$	1,587.2
Cost of sales	—			—			719.5			—			719.5
Gross profit	—			—			867.7			—			867.7
Selling, general and administrative expenses	62.4			0.2			469.9			—			532.5
Research and development expenses	—			—			110.7			—			110.7
Restructuring charges, net	7.7			—			3.0			—			10.7
Gains on divestiture and license	—			—			(1.7		)	—			(1.7		)
Operating (loss) income	(70.1		)	(0.2		)	285.8			—			215.5
Interest expense	—			(97.7		)	(8.5		)	—			(106.2		)
Interest income	—			—			0.5			—			0.5
Other income (expense), net	142.4			—			(134.0		)	—			8.4
Intercompany fees	(5.0		)	—			5.0			—			—
Equity in net income of subsidiaries	124.2			222.1			124.2			(470.5		)	—
Income from continuing operations before income taxes	191.5			124.2			273.0			(470.5		)	118.2
Income tax benefit	—			—			(44.4		)	—			(44.4		)
Income from continuing operations	191.5			124.2			317.4			(470.5		)	162.6
Income from discontinued operations, net of income taxes	—			—			28.9			—			28.9
Net income	191.5			124.2			346.3			(470.5		)	191.5
Other comprehensive loss, net of tax	(57.8		)	(57.8		)	(115.8		)	173.6			(57.8		)
Comprehensive income	$	133.7		$	66.4		$	230.5		$	(296.9	)	$	133.7

Schedule of Condensed Consolidating Statements of Cash Flows

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended March 25, 2016

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Cash Flows From Operating Activities:
Net cash provided by operating activities	$	42.9		$	77.9		$	419.3		$	—		$	540.1
Cash Flows From Investing Activities:
Capital expenditures	—			—			(91.4		)	—			(91.4		)
Acquisitions and intangibles, net of cash acquired	—			—			(170.1		)	—			(170.1		)
Proceeds from disposal of discontinued operations, net of cash	—			234.0			35.8			—			269.8
Intercompany loan investment, net	—			(16.0		)	(436.4		)	452.4			—
Investment in subsidiary	—			(176.2		)	—			176.2			—
Restricted cash	—			—			21.1			—			21.1
Other	—			—			4.6			—			4.6
Net cash provided by (used in) investing activities	—			41.8			(636.4		)	628.6			34.0
Cash Flows From Financing Activities:
Issuance of external debt	—			—			78.4			—			78.4
Repayment of external debt and capital leases	—			(133.9		)	(17.6		)	—			(151.5		)
Debt financing costs	—			—			(0.1		)	—			(0.1		)
Proceeds from exercise of share options	6.3			—			—			—			6.3
Repurchase of shares	(501.6		)	—			—			—			(501.6		)
Intercompany loan borrowings, net	452.4			—			—			(452.4		)	—
Capital contribution	—			—			176.2			(176.2		)	—
Other	—			—			(30.0		)	—			(30.0		)
Net cash (used in) provided by financing activities	(42.9		)	(133.9		)	206.9			(628.6		)	(598.5		)
Effect of currency rate changes on cash	—			—			(0.1		)	—			(0.1		)
Net increase in cash and cash equivalents	—			(14.2		)	(10.3		)	—			(24.5		)
Cash and cash equivalents at beginning of period	0.1			152.1			213.7			—			365.9
Cash and cash equivalents at end of period	$	0.1		$	137.9		$	203.4		$	—		$	341.4

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended March 27, 2015

(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	$	120.7		$	(78.3	)	$	323.1		$	—		$	365.5
Cash Flows From Investing Activities:
Capital expenditures	—			—			(55.1		)	—			(55.1		)
Intercompany loan investment, net	(127.3		)	—			(335.6		)	462.9			—
Investment in subsidiary	—			(124.9		)	—			124.9			—
Restricted cash	—			—			0.4			—			0.4
Other	—			—			1.7			—			1.7
Net cash used in investing activities	(127.3		)	(124.9		)	(388.6		)	587.8			(53.0		)
Cash Flows From Financing Activities:
Issuance of external debt	—			—			80.0			—			80.0
Repayment of external debt and capital leases	—			(8.2		)	(55.3		)	—			(63.5		)
Debt financing costs	—			—			(0.4		)	—			(0.4		)
Excess tax benefit from share-based compensation	—			—			20.2			—			20.2
Proceeds from exercise of share options	20.6			—			—			—			20.6
Repurchase of shares	(12.3		)	—			—			—			(12.3		)
Intercompany loan borrowings, net	—			462.9			—			(462.9		)	—
Capital contribution	—			—			124.9			(124.9		)	—
Other	—			—			(4.0		)	—			(4.0		)
Net cash provided by financing activities	8.3			454.7			165.4			(587.8		)	40.6
Effect of currency rate changes on cash	—			—			(7.4		)	—			(7.4		)
Net increase in cash and cash equivalents	1.7			251.5			92.5			—			345.7
Cash and cash equivalents at beginning of period	0.3			18.5			689.0			—			707.8
Cash and cash equivalents at end of period	$	2.0		$	270.0		$	781.5		$	—		$	1,053.5