Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Dec. 30, 2016

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 30, 2016

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	0.5	$	44.5	$	297.0	$	—		$	342.0
Accounts receivable, net	—		—		431.0		—			431.0
Inventories	—		—		350.7		—			350.7
Prepaid expenses and other current assets	1.0		—		130.9		—			131.9
Current assets held for sale	—		—		310.9		—			310.9
Intercompany receivables	59.7		65.1		1,081.3		(1,206.1		)	—
Total current assets	61.2		109.6		2,601.8		(1,206.1		)	1,566.5
Property, plant and equipment, net	—		—		881.5		—			881.5
Goodwill	—		—		3,498.1		—			3,498.1
Intangible assets, net	—		—		9,000.5		—			9,000.5
Investment in subsidiaries	5,534.1		20,624.1		10,988.5		(37,146.7		)	—
Intercompany loans receivable	3.5		—		3,325.9		(3,329.4		)	—
Other assets	—		—		259.7		—			259.7
Total Assets	$	5,598.8	$	20,733.7	$	30,556.0	$	(41,682.2	)	$	15,206.3
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	19.7	$	251.5	$	—		$	271.2
Accounts payable	0.1		0.1		111.9		—			112.1
Accrued payroll and payroll-related costs	—		—		76.1		—			76.1
Accrued interest	—		53.9		14.8		—			68.7
Accrued and other current liabilities	1.9		7.5		649.4		—			658.8
Current liabilities held for sale	—		—		120.3		—			120.3
Intercompany payables	612.5		467.1		126.5		(1,206.1		)	—
Total current liabilities	614.5		548.3		1,350.5		(1,206.1		)	1,307.2
Long-term debt	—		5,860.6		20.2		—			5,880.8
Pension and postretirement benefits	—		—		136.4		—			136.4
Environmental liabilities	—		—		73.0		—			73.0
Deferred income taxes	—		—		2,398.1		—			2,398.1
Other income tax liabilities	—		—		70.4		—			70.4
Intercompany loans payable	—		3,329.4		—		(3,329.4		)	—
Other liabilities	—		7.0		349.1		—			356.1
Total Liabilities	614.5		9,745.3		4,397.7		(4,535.5		)	10,222.0
Shareholders' Equity	4,984.3		10,988.4		26,158.3		(37,146.7		)	4,984.3
Total Liabilities and Shareholders' Equity	$	5,598.8	$	20,733.7	$	30,556.0	$	(41,682.2	)	$	15,206.3

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 30, 2016

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	0.3	$	25.0	$	255.2	$	—		$	280.5
Accounts receivable, net	—		—		465.8		—			465.8
Inventories	—		—		335.6		—			335.6
Prepaid expenses and other current assets	1.4		0.1		114.4		—			115.9
Current assets held for sale	—		—		308.8		—			308.8
Intercompany receivables	88.9		473.8		1,081.4		(1,644.1		)	—
Total current assets	90.6		498.9		2,561.2		(1,644.1		)	1,506.6
Property, plant and equipment, net	—		—		844.0		—			844.0
Goodwill	—		—		3,705.3		—			3,705.3
Intangible assets, net	—		—		9,182.3		—			9,182.3
Investment in subsidiaries	5,657.8		20,168.4		11,020.0		(36,846.2		)	—
Intercompany loans receivable	143.5		—		3,159.4		(3,302.9		)	—
Other assets	—		—		260.5		—			260.5
Total Assets	$	5,891.9	$	20,667.3	$	30,732.7	$	(41,793.2	)	$	15,498.7
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	19.8	$	236.5	$	—		$	256.3
Accounts payable	0.2		—		109.9		—			110.1
Accrued payroll and payroll-related costs	—		—		116.0		—			116.0
Accrued interest	—		79.3		1.3		—			80.6
Accrued and other current liabilities	2.2		7.5		541.2		—			550.9
Current liabilities held for sale	—		—		120.8		—			120.8
Intercompany payables	618.8		462.6		562.7		(1,644.1		)	—
Total current liabilities	621.2		569.2		1,688.4		(1,644.1		)	1,234.7
Long-term debt	—		5,767.8		20.9		—			5,788.7
Pension and postretirement benefits	—		—		144.9		—			144.9
Environmental liabilities	—		—		73.4		—			73.4
Deferred income taxes	—		—		2,581.4		—			2,581.4
Other income tax liabilities	—		—		67.7		—			67.7
Intercompany loans payable	—		3,302.9		—		(3,302.9		)	—
Other liabilities	—		7.4		329.8		—			337.2
Total Liabilities	621.2		9,647.3		4,906.5		(4,947.0		)	10,228.0
Shareholders' Equity	5,270.7		11,020.0		25,826.2		(36,846.2		)	5,270.7
Total Liabilities and Shareholders' Equity	$	5,891.9	$	20,667.3	$	30,732.7	$	(41,793.2	)	$	15,498.7

Schedule of Condensed Consolidating Statements of Comprehensive Income

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended December 30, 2016

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	829.9		$	—		$	829.9
Cost of sales	—			—			384.1			—			384.1
Gross profit	—			—			445.8			—			445.8
Selling, general and administrative expenses	13.4			0.2			354.7			—			368.3
Research and development expenses	—			—			66.2			—			66.2
Restructuring charges, net	—			—			3.8			—			3.8
Non-restructuring impairment charges	—			—			214.3			—			214.3
Operating (loss) income	(13.4		)	(0.2		)	(193.2		)	—			(206.8		)
Interest expense	(2.9		)	(81.1		)	(17.9		)	10.6			(91.3		)
Interest income	—			0.1			11.0			(10.6		)	0.5
Other income (expense), net	1.8			0.7			(3.4		)	—			(0.9		)
Intercompany fees	(4.4		)	—			4.4			—			—
Equity in net income (loss) of subsidiaries	(136.5		)	35.2			(44.5		)	145.8			—
(Loss) income from continuing operations before income taxes	(155.4		)	(45.3		)	(243.6		)	145.8			(298.5		)
Income tax benefit	(2.2		)	(0.3		)	(119.2		)	—			(121.7		)
(Loss) income from continuing operations	(153.2		)	(45.0		)	(124.4		)	145.8			(176.8		)
Income from discontinued operations, net of income taxes	—			0.4			23.2			—			23.6
Net (loss) income	(153.2		)	(44.6		)	(101.2		)	145.8			(153.2		)
Other comprehensive loss, net of tax	13.1			13.1			26.0			(39.1		)	13.1
Comprehensive (loss) income	$	(140.1	)	$	(31.5	)	$	(75.2	)	$	106.7		$	(140.1	)

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended December 25, 2015

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	811.2		$	—		$	811.2
Cost of sales	—			—			360.3			—			360.3
Gross profit	—			—			450.9			—			450.9
Selling, general and administrative expenses	10.4			0.3			212.6			—			223.3
Research and development expenses	—			—			61.4			—			61.4
Restructuring charges, net	—			—			4.1			—			4.1
Operating (loss) income	(10.4		)	(0.3		)	172.8			—			162.1
Interest expense	(68.0		)	(81.9		)	(21.0		)	73.1			(97.8		)
Interest income	—			—			73.3			(73.1		)	0.2
Other income (expense), net	67.7			1.7			(67.4		)	—			2.0
Intercompany fees	(3.2		)	(0.1		)	3.3			—			—
Equity in net income of subsidiaries	211.0			312.0			271.7			(794.7		)	—
Income (loss) from continuing operations before income taxes	197.1			231.4			432.7			(794.7		)	66.5
Income tax benefit	(14.0		)	—			(23.3		)	—			(37.3		)
Income from continuing operations	211.1			231.4			456.0			(794.7		)	103.8
Income from discontinued operations, net of income taxes	—			40.3			67.0			—			107.3
Net income	211.1			271.7			523.0			(794.7		)	211.1
Other comprehensive (loss) income, net of tax	(66.2		)	(66.2		)	(132.5		)	198.7			(66.2		)
Comprehensive income	$	144.9		$	205.5		$	390.5		$	(596.0	)	$	144.9

Schedule of Condensed Consolidating Statements of Cash Flows

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended December 30, 2016

(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	$	17.4		$	(94.0	)	$	272.2		$	—		$	195.6
Cash Flows From Investing Activities:
Capital expenditures	—			—			(65.2		)	—			(65.2		)
Acquisitions and intangibles, net of cash acquired	—			—			(1.8		)	—			(1.8		)
Proceeds from disposal of discontinued operations, net of cash	—			—			—			—			—
Intercompany loan investment, net	—			—			(424.7		)	424.7			—
Investment in subsidiary	—			(260.0		)	—			260.0			—
Restricted cash	—			—			—			—			—
Other	—			—			(10.2		)	—			(10.2		)
Net cash used in investing activities	—			(260.0		)	(501.9		)	684.7			(77.2		)
Cash Flows From Financing Activities:
Issuance of external debt	—			175.0			15.0			—			190.0
Repayment of external debt and capital leases	—			(86.2		)	(0.5		)	—			(86.7		)
Debt financing costs	—			—			—			—			—
Proceeds from exercise of share options	0.4			—			—			—			0.4
Repurchase of shares	(158.8		)	—			—			—			(158.8		)
Intercompany loan borrowings, net	140.0			284.7			—			(424.7		)	—
Capital contribution	—			—			260.0			(260.0		)	—
Other	1.2			—			—			—			1.2
Net cash (used in) provided by financing activities	(17.2		)	373.5			274.5			(684.7		)	(53.9		)
Effect of currency rate changes on cash	—			—			(3.0		)	—			(3.0		)
Net increase in cash and cash equivalents	0.2			19.5			41.8			—			61.5
Cash and cash equivalents at beginning of period	0.3			25.0			255.2			—			280.5
Cash and cash equivalents at end of period	$	0.5		$	44.5		$	297.0		$	—		$	342.0

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended December 25, 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	$	39.2		$	51.9		$	220.3		$	—		$	311.4
Cash Flows From Investing Activities:
Capital expenditures	—			—			(49.0		)	—			(49.0		)
Proceeds from disposal of discontinued operations, net of cash	—			235.4			28.6			—			264.0
Intercompany loan investment, net	—			(105.8		)	(127.0		)	232.8			—
Investment in subsidiary	—			(46.2		)	—			46.2			—
Restricted cash	—			—			(0.1		)	—			(0.1		)
Other	—			—			0.7			—			0.7
Net cash provided from (used in) investing activities	—			83.4			(146.8		)	279.0			215.6
Cash Flows From Financing Activities:
Issuance of external debt	—			—			62.0			—			62.0
Repayment of external debt and capital leases	—			(128.9		)	(0.7		)	—			(129.6		)
Debt financing costs	—			—			(0.1		)	—			(0.1		)
Excess tax benefit from share-based compensation	—			—			—			—			—
Proceeds from exercise of share options	3.6			—			—			—			3.6
Repurchase of shares	(275.4		)	—			—			—			(275.4		)
Intercompany loan borrowings, net	232.8			—			—			(232.8		)	—
Capital contribution	—			—			46.2			(46.2		)	—
Other	—			—			(30.0		)	—			(30.0		)
Net cash (used in) provided by financing activities	(39.0		)	(128.9		)	77.4			(279.0		)	(369.5		)
Effect of currency rate changes on cash	—			—			(1.5		)	—			(1.5		)
Net increase in cash and cash equivalents	0.2			6.4			149.4			—			156.0
Cash and cash equivalents at beginning of period	0.1			152.1			213.7			—			365.9
Cash and cash equivalents at end of period	$	0.3		$	158.5		$	363.1		$	—		$	521.9