Segment and Geographical Data

12 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment and Geographical Data

20. 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.

On November 27, 2015, the Company completed the sale of the CMDS business to Guerbet. As a result, the CMDS business was eliminated from the Global Medical Imaging segment, which was renamed Nuclear Imaging.

During the fourth quarter of fiscal 2016, the Company announced that it had entered into a definitive agreement to sell its Nuclear Imaging business to IBAM, which is expected to be completed during the first half of calendar 2017. The Nuclear Imaging business is deemed to be held for sale and the financial results of this business are presented as a discontinued operation.

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

The two reportable segments are further described below:

• Specialty Brands produces and markets branded pharmaceutical products and therapies; and

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

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 Guerbet, 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 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 $15.5 billion and $16.4 billion at September 30, 2016 and September 25, 2015, respectively.

Selected information by business segment is as follows:

	Fiscal Year
	2016			2015			2014
Net sales:
Specialty Brands	$	2,300.6		$	1,622.8		$	413.5
Specialty Generics	1,025.2			1,251.6			1,199.4
Net sales of operating segments (1)	3,325.8			2,874.4			1,612.9
Other (2)	55.0			48.7			37.4
Net sales	$	3,380.8		$	2,923.1		$	1,650.3
Operating income:
Specialty Brands	$	1,166.2		$	637.6		$	(68.6	)
Specialty Generics	376.1			594.4			599.4
Segment operating income	1,542.3			1,232.0			530.8
Unallocated amounts:
Corporate and allocated expenses (3)	(169.8		)	(282.6		)	(227.7		)
Intangible asset amortization	(700.1		)	(550.3		)	(154.8		)
Restructuring and related charges, net (4)	(38.2		)	(45.3		)	(68.2		)
Non-restructuring impairments	(16.9		)	—			(27.1		)
Separation costs	—			—			(9.6		)
Operating income	$	617.3		$	353.8		$	43.4
Depreciation and amortization (5):
Specialty Brands	$	716.6		$	559.5		$	153.3
Specialty Generics	96.8			81.6			78.2
	$	813.4		$	641.1		$	231.5

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

(2) Represents net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. Amounts for periods prior to the divestiture represent the reclassification of intercompany sales to third-party sales to conform with the expected presentation of the ongoing supply agreement.

(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
	2016		2015		2014
Acthar	$	1,160.4	$	1,037.3	$	122.9
Inomax	474.3		185.2		—
Ofirmev	284.3		263.0		124.4
Therakos immunotherapy	207.6		—		—
Hemostasis products	42.5		—		—
Other	131.5		137.3		166.2
Specialty Brands	2,300.6		1,622.8		413.5
Hydrocodone (API) and hydrocodone-containing tablets	146.5		167.2		99.4
Oxycodone (API) and oxycodone-containing tablets	126.2		154.6		155.2
Methylphenidate ER	103.5		136.5		209.6
Other controlled substances	468.1		572.2		584.5
Other	180.9		221.1		150.7
Specialty Generics	1,025.2		1,251.6		1,199.4
Other (1)	55.0		48.7		37.4
Net sales	$	3,380.8	$	2,923.1	$	1,650.3

(1) Represents net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. Amounts for periods prior to the divestiture represent the reclassification of intercompany sales to third-party sales to conform with the expected presentation of the ongoing supply agreement.

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

	Fiscal Year
	2016		2015		2014
Net sales (1):
U.S.	$	3,095.4	$	2,647.0	$	1,485.0
Europe, Middle East and Africa	211.8		159.0		140.8
Other	73.6		117.1		24.5
	$	3,380.8	$	2,923.1	$	1,650.3
Long-lived assets (2):
U.S.	$	742.4	$	747.8
Europe, Middle East and Africa (3)	61.2		13.4
Other	52.5		44.5
	$	856.1	$	805.7

(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 $59.3 million, and $10.7 million at the end of fiscal 2016 and 2015, respectively.