Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2017

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

MALLINCKRODT PLC

CONDENSED CONSOLIDATING BALANCE SHEET

As of March 31, 2017

(unaudited, in millions)

	Mallinckrodt plc		Mallinckrodt International Finance S.A.		Other Subsidiaries		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	0.4	$	130.3	$	129.1	$	—		$	259.8
Accounts receivable, net	—		—		486.3		—			486.3
Inventories	—		—		358.8		—			358.8
Prepaid expenses and other current assets	0.7		0.3		187.4		—			188.4
Notes receivable	—		—		154.0		—			154.0
Current assets held for sale	—		—		—		—			—
Intercompany receivables	71.2		19.5		1,101.1		(1,191.8		)	—
Total current assets	72.3		150.1		2,416.7		(1,191.8		)	1,447.3
Property, plant and equipment, net	—		—		911.4		—			911.4
Goodwill	—		—		3,446.2		—			3,446.2
Intangible assets, net	—		—		8,778.9		—			8,778.9
Investment in subsidiaries	4,763.5		21,387.3		10,310.0		(36,460.8		)	—
Intercompany loans receivable	904.4		—		4,056.7		(4,961.1		)	—
Other assets	—		—		191.8		—			191.8
Total Assets	$	5,740.2	$	21,537.4	$	30,111.7	$	(42,613.7	)	$	14,775.6
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt	$	—	$	18.3	$	226.6	$	—		$	244.9
Accounts payable	—		0.8		114.6		—			115.4
Accrued payroll and payroll-related costs	—		—		69.3		—			69.3
Accrued interest	—		79.2		1.6		—			80.8
Accrued and other current liabilities	1.2		9.2		515.4		—			525.8
Current liabilities held for sale	—		—		—		—			—
Intercompany payables	624.8		471.7		95.3		(1,191.8		)	—
Total current liabilities	626.0		579.2		1,022.8		(1,191.8		)	1,036.2
Long-term debt	—		5,679.9		20.0		—			5,699.9
Pension and postretirement benefits	—		—		67.5		—			67.5
Environmental liabilities	—		—		72.5		—			72.5
Deferred income taxes	—		—		2,338.1		—			2,338.1
Other income tax liabilities	—		—		71.8		—			71.8
Intercompany loans payable	—		4,961.1		—		(4,961.1		)	—
Other liabilities	—		7.2		368.2		—			375.4
Total Liabilities	626.0		11,227.4		3,960.9		(6,152.9		)	9,661.4
Shareholders' Equity	5,114.2		10,310.0		26,150.8		(36,460.8		)	5,114.2
Total Liabilities and Shareholders' Equity	$	5,740.2	$	21,537.4	$	30,111.7	$	(42,613.7	)	$	14,775.6

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
Notes receivable	—		—		—		—			—
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

Schedule of Condensed Consolidating Statements of Comprehensive Income

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended March 31, 2017

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	810.9		$	—		$	810.9
Cost of sales	—			—			392.3			—			392.3
Gross profit	—			—			418.6			—			418.6
Selling, general and administrative expenses	18.2			0.2			289.7			—			308.1
Research and development expenses	—			—			62.2			—			62.2
Restructuring charges, net	—			—			17.2			—			17.2
Non-restructuring impairment charges	—			—			—			—			—
Gains on divestiture and license	—			—			(59.1		)	—			(59.1		)
Operating income	(18.2		)	(0.2		)	108.6			—			90.2
Interest expense	(3.3		)	(85.3		)	(20.2		)	14.6			(94.2		)
Interest income	1.1			0.3			14.1			(14.6		)	0.9
Other expense, net	15.4			(9.9		)	(13.0		)	—			(7.5		)
Intercompany fees	(5.5		)	—			5.5			—			—
Equity in net income (loss) of subsidiaries	408.7			597.0			500.5			(1,506.2		)	—
(Loss) income from continuing operations before income taxes	398.2			501.9			595.5			(1,506.2		)	(10.6		)
Income tax benefit	(2.0		)	(0.3		)	(37.2		)	—			(39.5		)
Income from continuing operations	400.2			502.2			632.7			(1,506.2		)	28.9
Income from discontinued operations, net of income taxes	(1.0		)	(1.7		)	373.0			—			370.3
Net income	399.2			500.5			1,005.7			(1,506.2		)	399.2
Other comprehensive loss, net of tax	62.6			62.6			125.0			(187.6		)	62.6
Comprehensive income	$	461.8		$	563.1		$	1,130.7		$	(1,693.8	)	$	461.8

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	$	—		$	—		$	815.8		$	—		$	815.8
Cost of sales	—			—			390.7			—			390.7
Gross profit	—			—			425.1			—			425.1
Selling, general and administrative expenses	13.9			0.2			195.2			—			209.3
Research and development expenses	—			—			58.1			—			58.1
Restructuring charges, net	—			—			8.4			—			8.4
Non-restructuring impairment charge	—			—			16.9			—			16.9
Operating (loss) income	(13.9		)	(0.2		)	146.5			—			132.4
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 (loss) from continuing operations before income taxes	118.2			250.5			443.3			(777.3		)	34.7
Income tax benefit	(0.1		)	(3.8		)	(59.9		)	—			(63.8		)
Income from continuing operations	118.3			254.3			503.2			(777.3		)	98.5
Income from discontinued operations, net of income taxes	—			(1.5		)	21.3			—			19.8
Net income	118.3			252.8			524.5			(777.3		)	118.3
Other comprehensive (loss) income, 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

Schedule of Condensed Consolidating Statements of Cash Flows

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2017

(unaudited, in millions)

	Mallinckrodt plc			Mallinckrodt International Finance S.A.			Other Subsidiaries			Eliminations			Consolidated
Cash Flows From Operating Activities:
Net cash from operating activities	$	1,177.5		$	134.8		$	1,062.6		$	(2,472.3	)	$	(97.4	)
Cash Flows From Investing Activities:
Capital expenditures	—			—			(52.6		)	—			(52.6		)
Acquisitions and intangibles, net of cash acquired	—			—			—			—			—
Proceeds from divestiture of discontinued operations, net of cash	—			—			576.9			—			576.9
Intercompany loan investment, net	(900.9		)	—			(724.0		)	1,624.9			—
Investment in subsidiary	—			(307.9		)	—			307.9			—
Other	—			—			(10.8		)	—			(10.8		)
Net cash from investing activities	(900.9		)	(307.9		)	(210.5		)	1,932.8			513.5
Cash Flows From Financing Activities:
Issuance of external debt	—			—			25.0			—			25.0
Repayment of external debt and capital leases	—			(183.5		)	(50.4		)	—			(233.9		)
Debt financing costs	—			(12.5		)	(0.5		)	—			(13.0		)
Proceeds from exercise of share options	2.1			—			0.1			—			2.2
Repurchase of shares	(279.6		)	—			—			—			(279.6		)
Intercompany loan borrowings, net	—			1,624.9			—			(1,624.9		)	—
Intercompany dividends	—			(1,170.0		)	(1,302.3		)	2,472.3			—
Capital contribution	—			—			307.9			(307.9		)	—
Other	0.8			—			0.2			—			1.0
Net cash from financing activities	(276.7		)	258.9			(1,020.0		)	539.5			(498.3		)
Effect of currency rate changes on cash	—			—			—			—			—
Net change in cash, cash equivalents and restricted cash	(0.1		)	85.8			(167.9		)	—			(82.2		)
Cash, cash equivalents and restricted cash at beginning of period	0.5			44.5			316.1			—			361.1
Cash, cash equivalents and restricted cash at end of period	$	0.4		$	130.3		$	148.2		$	—		$	278.9
Cash and cash equivalents at end of period	$	0.4		$	130.3		$	129.1		$	—		$	259.8
Restricted Cash, Current at end of period	$	—		$	—		$	—		$	—		—
Restricted Cash, Noncurrent at end of period	$	—		$	—		$	19.1		$	—		19.1
Cash, cash equivalents and restricted cash at end of period	$	0.4		$	130.3		$	148.2		$	—		$	278.9

MALLINCKRODT PLC

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three 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 from operating activities	$	3.7		$	26.0		$	198.9		$	—		$	228.6
Cash Flows From Investing Activities:
Capital expenditures	—			—			(42.4		)	—			(42.4		)
Acquisitions and intangibles, net of cash acquired	—			—			(170.1		)	—			(170.1		)
Proceeds from divestiture of discontinued operations, net of cash	—			(1.4		)	7.2			—			5.8
Intercompany loan investment, net	—			89.8			(309.4		)	219.6			—
Investment in subsidiary	—			(130.0		)	—			130.0			—
Other	—			—			3.9			—			3.9
Net cash from investing activities	—			(41.6		)	(510.8		)	349.6			(202.8		)
Cash Flows From Financing Activities:
Issuance of external debt	—			—			16.4			—			16.4
Repayment of external debt and capital leases	—			(5.0		)	(16.9		)	—			(21.9		)
Debt financing costs	—			—			—			—			—
Proceeds from exercise of share options	2.7			—			—			—			2.7
Repurchase of shares	(226.2		)	—			—			—			(226.2		)
Intercompany loan borrowings, net	219.6			—			—			(219.6		)	—
Capital contribution	—			—			130.0			(130.0		)	—
Other	—			—			—			—			—
Net cash from financing activities	(3.9		)	(5.0		)	129.5			(349.6		)	(229.0		)
Effect of currency rate changes on cash	—			—			1.4			—			1.4
Net change in cash, cash equivalents and restricted cash	(0.2		)	(20.6		)	(181.0		)	—			(201.8		)
Cash, cash equivalents and restricted cash at beginning of period	0.3			158.5			429.6			—			588.4
Cash, cash equivalents and restricted cash at end of period	$	0.1		$	137.9		$	248.6		$	—		$	386.6
Cash and cash equivalents at end of period	$	0.1		$	137.9		$	203.4		$	—		$	341.4
Restricted Cash, Current at end of period	$	—		$	—		$	26.2		$	—		$	26.2
Restricted Cash, Noncurrent at end of period	$	—		$	—		$	19.0		$	—		$	19.0
Cash, cash equivalents and restricted cash at end of period	$	0.1		$	137.9		$	248.6		$	—		$	386.6