XML 23 R13.htm IDEA: XBRL DOCUMENT v3.5.0.2
Restructuring and Related Charges
 9 Months Ended
Jun. 24, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Related Charges
5.
Restructuring and Related Charges
During fiscal 2013, the Company launched a restructuring program designed to improve its cost structure ("the 2013 Mallinckrodt Program"). The 2013 Mallinckrodt Program includes actions across all segments, as well as within corporate functions. The Company expected to incur charges of $100.0 million to $125.0 million under this program as the specific actions required to execute on these initiatives are identified and approved. As of June 24, 2016, the Company has substantially completed the 2013 Mallinckrodt Program. In addition to the 2013 Mallinckrodt Program, the Company has taken restructuring actions to generate synergies from its acquisitions.
Net restructuring and related charges within continuing operations by segment are as follows:
 
Three Months Ended
 
Nine Months Ended
 
June 24,
2016
 
June 26,
2015
 
June 24,
2016
 
June 26,
2015
Specialty Brands
$
8.8

 
$
20.2

 
$
18.4

 
$
35.3

Specialty Generics
1.0

 
0.5

 
2.7

 
3.2

Nuclear Imaging
0.1

 
0.2

 
2.6

 
(7.1
)
Corporate
5.4

 
1.8

 
8.4

 
2.2

Restructuring and related charges, net
15.3

 
22.7

 
32.1

 
33.6

Less: accelerated depreciation
(1.2
)
 
—

 
(3.0
)
 
(0.2
)
Restructuring charges, net
$
14.1

 
$
22.7

 
$
29.1

 
$
33.4



Net restructuring and related charges by program within continuing operations are comprised of the following:
 
Three Months Ended
 
Nine Months Ended
 
June 24,
2016
 
June 26,
2015
 
June 24,
2016
 
June 26,
2015
2013 Mallinckrodt Program
$
14.4

 
$
3.3

 
$
28.5

 
$
1.1

Acquisitions
0.9

 
19.7

 
3.6

 
32.8

Other
—

 
(0.3
)
 
—

 
(0.3
)
Total
15.3

 
22.7

 
32.1

 
33.6

Less: non-cash charges, including accelerated share-based compensation expense
(1.2
)
 
(1.5
)
 
(3.0
)
 
(9.4
)
Total charges expected to be settled in cash
$
14.1

 
$
21.2

 
$
29.1

 
$
24.2



Non-cash charges during the three and nine months ended June 26, 2015 included $1.5 million and $9.2 million of accelerated share-based compensation expense related to employee terminations, primarily associated with the acquisition of Questcor. No similar charges occurred during the three and nine months ended June 24, 2016.
The following table summarizes cash activity for restructuring reserves, substantially all of which are related to employee severance and benefits:
 
2013 Mallinckrodt Program
 
Acquisitions
 
Total
Balance at September 25, 2015
$
8.0

 
$
10.0

 
$
18.0

Charges
26.3

 
4.7

 
31.0

Changes in estimate
(0.8
)
 
(1.1
)
 
(1.9
)
Cash payments
(11.9
)
 
(11.7
)
 
(23.6
)
Reclassifications (1)
(1.2
)
 
—

 
(1.2
)
Balance at June 24, 2016
$
20.4

 
$
1.9

 
$
22.3


(1) Represents the reclassification of pension and other postretirement benefits from restructuring reserves to pension and postretirement obligations.

Net restructuring and related charges, including associated asset impairments, incurred cumulative-to-date related to the 2013 Mallinckrodt Program were as follows:
 
2013 Mallinckrodt Program
Specialty Brands
$
18.8

Specialty Generics
18.3

Nuclear Imaging (including CMDS)
69.9

Corporate
18.4

 
$
125.4


Substantially all of the restructuring reserves were included in accrued and other current liabilities on the Company's unaudited condensed consolidated balance sheets.