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Condensed Consolidating Financial Statements
 3 Months Ended
Mar. 29, 2019
Condensed Consolidating Financial Statements [Abstract]  
Condensed Consolidating Financial Statements
17.
Condensed Consolidating Financial Statements
MIFSA, an indirectly 100%-owned subsidiary of Mallinckrodt plc established to own, directly or indirectly, substantially all of the operating subsidiaries of the Company, to issue debt securities and to perform treasury operations.
MIFSA is the borrower under the 4.75% notes due April 2023 ("the 2013 Notes"), which are fully and unconditionally guaranteed by Mallinckrodt plc. The following information provides the composition of the Company's comprehensive income, assets, liabilities, equity and cash flows by relevant group within the Company: Mallinckrodt plc as guarantor of the 2013 Notes, MIFSA as issuer of the 2013 Notes and the operating companies that represent assets of MIFSA. There are no subsidiary guarantees related to the 2013 Notes.
Set forth below are the condensed consolidating financial statements for the three months ended March 29, 2019 and March 30, 2018, and as of March 29, 2019 and December 28, 2018. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among Mallinckrodt plc, MIFSA and other subsidiaries. Condensed consolidating financial information for Mallinckrodt plc and MIFSA, on a standalone basis, has been presented using the equity method of accounting for subsidiaries.


MALLINCKRODT PLC
CONDENSED CONSOLIDATING BALANCE SHEET
As of March 29, 2019
(unaudited, in millions)

 
Mallinckrodt plc
 
Mallinckrodt International Finance S.A.
 
Other Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
0.5

 
$
27.2

 
$
198.1

 
$
—

 
$
225.8

Accounts receivable, net
—

 
—

 
575.9

 
—

 
575.9

Inventories
—

 
—

 
319.7

 
—

 
319.7

Prepaid expenses and other current assets
2.1

 
—

 
118.0

 
—

 
120.1

Intercompany receivables
140.5

 
29.2

 
5,925.8

 
(6,095.5
)
 
—

Total current assets
143.1

 
56.4

 
7,137.5

 
(6,095.5
)
 
1,241.5

Property, plant and equipment, net
—

 
—

 
977.0

 
—

 
977.0

Intangible assets, net
—

 
—

 
8,060.2

 
—

 
8,060.2

Investment in subsidiaries
2,652.3

 
12,978.3

 
3,813.5

 
(19,444.1
)
 
—

Intercompany loans receivable
469.1

 
—

 
2,568.0

 
(3,037.1
)
 
—

Other assets
—

 
—

 
276.8

 
—

 
276.8

Total Assets
$
3,264.5

 
$
13,034.7

 
$
22,833.0

 
$
(28,576.7
)
 
$
10,555.5

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
$
—

 
$
—

 
$
19.8

 
$
—

 
$
19.8

Accounts payable
0.1

 
—

 
132.5

 
—

 
132.6

Accrued payroll and payroll-related costs
—

 
—

 
60.8

 
—

 
60.8

Accrued interest
—

 
20.3

 
52.1

 
—

 
72.4

Income taxes payable
—

 
—

 
7.7

 
—

 
7.7

Accrued and other current liabilities
0.6

 
0.2

 
559.9

 
—

 
560.7

Intercompany payables
209.9

 
5,668.6

 
217.0

 
(6,095.5
)
 
—

Total current liabilities
210.6

 
5,689.1

 
1,049.8

 
(6,095.5
)
 
854.0

Long-term debt
—

 
487.0

 
5,330.6

 
—

 
5,817.6

Pension and postretirement benefits
—

 
—

 
59.7

 
—

 
59.7

Environmental liabilities
—

 
—

 
59.6

 
—

 
59.6

Deferred income taxes
—

 
—

 
81.1

 
—

 
81.1

Other income tax liabilities
—

 
—

 
262.8

 
—

 
262.8

Intercompany loans payable
—

 
3,037.1

 
—

 
(3,037.1
)
 
—

Other liabilities
—

 
8.0

 
358.8

 
—

 
366.8

Total Liabilities
210.6

 
9,221.2

 
7,202.4

 
(9,132.6
)
 
7,501.6

Shareholders' Equity
3,053.9

 
3,813.5

 
15,630.6

 
(19,444.1
)
 
3,053.9

Total Liabilities and Shareholders' Equity
$
3,264.5

 
$
13,034.7

 
$
22,833.0

 
$
(28,576.7
)
 
$
10,555.5


MALLINCKRODT PLC
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 28, 2018
(unaudited, in millions)

 
Mallinckrodt plc
 
Mallinckrodt International Finance S.A.
 
Other Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
0.4

 
$
140.8

 
$
207.7

 
$
—

 
$
348.9

Accounts receivable, net
—

 
—

 
623.3

 
—

 
623.3

Inventories
—

 
—

 
322.3

 
—

 
322.3

Prepaid expenses and other current assets
3.9

 
0.2

 
128.6

 
—

 
132.7

Intercompany receivables
131.1

 
29.2

 
1,087.9

 
(1,248.2
)
 
—

Total current assets
135.4

 
170.2

 
2,369.8

 
(1,248.2
)
 
1,427.2

Property, plant and equipment, net
—

 
—

 
982.0

 
—

 
982.0

Intangible assets, net
—

 
—

 
8,282.8

 
—

 
8,282.8

Investment in subsidiaries
2,481.6

 
25,506.1

 
8,362.1

 
(36,349.8
)
 
—

Intercompany loans receivable
497.7

 
—

 
12,343.0

 
(12,840.7
)
 
—

Other assets
—

 
—

 
185.3

 
—

 
185.3

Total Assets
$
3,114.7

 
$
25,676.3

 
$
32,525.0

 
$
(50,438.7
)
 
$
10,877.3

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
$
—

 
$
22.1

 
$
0.3

 
$
—

 
$
22.4

Accounts payable
0.1

 
—

 
147.4

 
—

 
147.5

Accrued payroll and payroll-related costs
—

 
—

 
124.0

 
—

 
124.0

Accrued interest
—

 
48.7

 
28.9

 
—

 
77.6

Income taxes payable
—

 
—

 
25.0

 
—

 
25.0

Accrued and other current liabilities
0.6

 
0.4

 
546.2

 
—

 
547.2

Intercompany payables
226.7

 
827.8

 
193.7

 
(1,248.2
)
 
—

Total current liabilities
227.4

 
899.0

 
1,065.5

 
(1,248.2
)
 
943.7

Long-term debt
—

 
3,566.9

 
2,502.3

 
—

 
6,069.2

Pension and postretirement benefits
—

 
—

 
60.5

 
—

 
60.5

Environmental liabilities
—

 
—

 
59.7

 
—

 
59.7

Deferred income taxes
—

 
—

 
324.3

 
—

 
324.3

Other income tax liabilities
—

 
—

 
228.0

 
—

 
228.0

Intercompany loans payable
—

 
12,840.7

 
—

 
(12,840.7
)
 
—

Other liabilities
—

 
7.6

 
297.0

 
—

 
304.6

Total Liabilities
227.4

 
17,314.2

 
4,537.3

 
(14,088.9
)
 
7,990.0

Shareholders' Equity
2,887.3

 
8,362.1

 
27,987.7

 
(36,349.8
)
 
2,887.3

Total Liabilities and Shareholders' Equity
$
3,114.7

 
$
25,676.3

 
$
32,525.0

 
$
(50,438.7
)
 
$
10,877.3







MALLINCKRODT PLC
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
For the three months ended March 29, 2019
(unaudited, in millions)

 
Mallinckrodt plc
 
Mallinckrodt International Finance S.A.
 
Other Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
—

 
$
790.6

 
$
—

 
$
790.6

Cost of sales
0.6

 
—

 
454.9

 
—

 
455.5

Gross (loss) profit
(0.6
)
 
—

 
335.7

 
—

 
335.1

Selling, general and administrative expenses
11.3

 
0.2

 
218.7

 
—

 
230.2

Research and development expenses
1.4

 
—

 
83.9

 
—

 
85.3

Restructuring charges, net
—

 
—

 
4.2

 
—

 
4.2

Operating (loss) income
(13.3
)
 
(0.2
)
 
28.9

 
—

 
15.4

 
 
 
 
 
 
 
 
 
 
Interest expense
(11.1
)
 
(70.3
)
 
(39.0
)
 
37.7

 
(82.7
)
Interest income
12.2

 
0.1

 
26.9

 
(37.7
)
 
1.5

Other income, net
3.2

 
1.2

 
11.9

 
—

 
16.3

Intercompany fees
(6.5
)
 
—

 
6.5

 
—

 
—

Equity in net income of subsidiaries
169.3

 
298.4

 
229.0

 
(696.7
)
 
—

Income (loss) from continuing operations before income taxes
153.8

 
229.2

 
264.2

 
(696.7
)
 
(49.5
)
Income tax benefit
(1.1
)
 
—

 
(203.6
)
 
—

 
(204.7
)
Income from continuing operations
154.9

 
229.2

 
467.8

 
(696.7
)
 
155.2

Loss from discontinued operations, net of income taxes
—

 
(0.2
)
 
(0.1
)
 
—

 
(0.3
)
Net income
154.9

 
229.0

 
467.7

 
(696.7
)
 
154.9

Other comprehensive income, net of tax
1.3

 
1.3

 
2.4

 
(3.7
)
 
1.3

Comprehensive income
$
156.2

 
$
230.3

 
$
470.1

 
$
(700.4
)
 
$
156.2

MALLINCKRODT PLC
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
For the three months ended March 30, 2018
(unaudited, in millions)

 
Mallinckrodt plc
 
Mallinckrodt International Finance S.A.
 
Other Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
—

 
$
755.3

 
$
—

 
$
755.3

Cost of sales
0.2

 
—

 
407.6

 
—

 
407.8

Gross (loss) profit
(0.2
)
 
—

 
347.7

 
—

 
347.5

Selling, general and administrative expenses
6.4

 
0.2

 
204.6

 
—

 
211.2

Research and development expenses
0.5

 
—

 
81.5

 
—

 
82.0

Restructuring charges, net
—

 
—

 
28.2

 
—

 
28.2

Operating (loss) income
(7.1
)
 
(0.2
)
 
33.4

 
—

 
26.1

 
 
 
 
 
 
 
 
 
 
Interest expense
(3.0
)
 
(101.2
)
 
(7.1
)
 
19.9

 
(91.4
)
Interest income
2.2

 
1.7

 
19.2

 
(19.9
)
 
3.2

Other income (expense), net
6.1

 
2.8

 
(4.3
)
 
—

 
4.6

Intercompany fees
(4.5
)
 
—

 
4.5

 
—

 
—

Equity in net income of subsidiaries
(12.9
)
 
175.4

 
79.2

 
(241.7
)
 
—

(Loss) income from continuing operations before income taxes
(19.2
)
 
78.5

 
124.9

 
(241.7
)
 
(57.5
)
Income tax benefit
(1.2
)
 
(0.8
)
 
(34.6
)
 
—

 
(36.6
)
(Loss) income from continuing operations
(18.0
)
 
79.3

 
159.5

 
(241.7
)
 
(20.9
)
(Loss) income from discontinued operations, net of income taxes
—

 
(0.1
)
 
3.0

 
—

 
2.9

Net (loss) income
(18.0
)
 
79.2

 
162.5

 
(241.7
)
 
(18.0
)
Other comprehensive loss, net of tax
(2.4
)
 
(2.4
)
 
(5.2
)
 
7.6

 
(2.4
)
Comprehensive (loss) income
$
(20.4
)
 
$
76.8

 
$
157.3

 
$
(234.1
)
 
$
(20.4
)






























MALLINCKRODT PLC
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the three months ended March 29, 2019
(unaudited, in millions)

 
Mallinckrodt plc
 
Mallinckrodt International Finance S.A.
 
Other Subsidiaries
 
Eliminations
 
Consolidated
Cash Flows From Operating Activities:
 
 
 
 
 
 
 
 
 
Net cash from operating activities
$
(6.6
)
 
$
75.2

 
$
95.9

 
$
—

 
$
164.5

Cash Flows From Investing Activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(39.8
)
 
—

 
(39.8
)
Acquisitions, net of cash
—

 
—

 
—

 
—

 
—

Proceeds from divestitures, net of cash
—

 
—

 
—

 
—

 
—

Intercompany loan investment, net
31.3

 
—

 
(337.4
)
 
306.1

 
—

Investment in subsidiary
—

 
(480.8
)
 
—

 
480.8

 
—

Other
—

 
—

 
0.4

 
—

 
0.4

Net cash from investing activities
31.3

 
(480.8
)
 
(376.8
)
 
786.9

 
(39.4
)
Cash Flows From Financing Activities:
 
 
 
 
 
 
 
 
 
Issuance of external debt
—

 
—

 
200.0

 
—

 
200.0

Repayment of external debt and capital lease obligation
—

 
(39.0
)
 
(409.7
)
 
—

 
(448.7
)
Debt financing costs
—

 
—

 
—

 
—

 
—

Proceeds from exercise of share options
0.3

 
—

 
—

 
—

 
0.3

Repurchase of shares
(0.5
)
 
—

 
—

 
—

 
(0.5
)
Intercompany loan borrowings, net
(24.9
)
 
331.0

 
—

 
(306.1
)
 
—

Intercompany dividends
—

 
—

 
—

 
—

 
—

Capital contribution
—

 
—

 
480.8

 
(480.8
)
 
—

Other
0.5

 
—

 
—

 
—

 
0.5

Net cash from financing activities
(24.6
)
 
292.0

 
271.1

 
(786.9
)
 
(248.4
)
Effect of currency rate changes on cash
—

 
—

 
0.3

 
—

 
0.3

Net change in cash, cash equivalents and restricted cash
0.1

 
(113.6
)
 
(9.5
)
 
—

 
(123.0
)
Cash, cash equivalents and restricted cash at beginning of period
0.4

 
140.8

 
226.3

 
—

 
367.5

Cash, cash equivalents and restricted cash at end of period
$
0.5

 
$
27.2

 
$
216.8

 
$
—

 
$
244.5

 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents at end of period
$
0.5

 
$
27.2

 
$
198.1

 
$
—

 
$
225.8

Restricted Cash, included in other assets at end of period
—

 
—

 
18.7

 
—

 
18.7

Cash, cash equivalents and restricted cash at end of period
$
0.5

 
$
27.2

 
$
216.8

 
$
—

 
$
244.5


MALLINCKRODT PLC
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the three months ended March 30, 2018
(unaudited, in millions)

 
Mallinckrodt plc
 
Mallinckrodt International Finance S.A.
 
Other Subsidiaries
 
Eliminations
 
Consolidated
Cash Flows From Operating Activities:
 
 
 
 
 
 
 
 
 
Net cash from operating activities
$
459.0

 
$
201.1

 
$
776.5

 
$
(1,418.8
)
 
$
17.8

Cash Flows From Investing Activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(34.3
)
 
—

 
(34.3
)
Acquisitions, net of cash
—

 
—

 
(699.9
)
 
—

 
(699.9
)
Proceeds from divestitures, net of cash
—

 
—

 
298.3

 
—

 
298.3

Intercompany loan investment, net
(412.2
)
 
(85.3
)
 
430.7

 
66.8

 
—

Investment in subsidiary
—

 
(121.8
)
 
—

 
121.8

 
—

Other
—

 
—

 
8.3

 
—

 
8.3

Net cash from investing activities
(412.2
)
 
(207.1
)
 
3.1

 
188.6

 
(427.6
)
Cash Flows From Financing Activities:
 
 
 
 
 
 
 
 
 
Issuance of external debt
—

 
600.0

 
26.8

 
—

 
626.8

Repayment of external debt and capital lease obligation
—

 
(530.6
)
 
(371.6
)
 
—

 
(902.2
)
Debt financing costs
—

 
(12.0
)
 
—

 
—

 
(12.0
)
Proceeds from exercise of share options
—

 
—

 
—

 
—

 
—

Repurchase of shares
(46.6
)
 
—

 
—

 
—

 
(46.6
)
Intercompany loan borrowings, net
—

 
66.8

 
—

 
(66.8
)
 
—

Intercompany dividends
—

 
(814.2
)
 
(604.6
)
 
1,418.8

 
—

Capital contribution
—

 
—

 
121.8

 
(121.8
)
 
—

Other
0.5

 
—

 
(5.3
)
 
—

 
(4.8
)
Net cash from financing activities
(46.1
)
 
(690.0
)
 
(832.9
)
 
1,230.2

 
(338.8
)
Effect of currency rate changes on cash
—

 
—

 
(0.3
)
 
—

 
(0.3
)
Net change in cash, cash equivalents and restricted cash
0.7

 
(696.0
)
 
(53.6
)
 
—

 
(748.9
)
Cash, cash equivalents and restricted cash at beginning of period
0.7

 
908.8

 
369.6

 
—

 
1,279.1

Cash, cash equivalents and restricted cash at end of period
$
1.4

 
$
212.8

 
$
316.0

 
$
—

 
$
530.2

 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents at end of period
$
1.4

 
$
212.8

 
$
297.7

 
$
—

 
$
511.9

Restricted Cash, included in other assets at end of period
—

 
—

 
18.3

 
—

 
18.3

Cash, cash equivalents and restricted cash at end of period
$
1.4

 
$
212.8

 
$
316.0

 
$
—

 
$
530.2