Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 29, 2019

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

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

Schedule of Condensed Consolidating Statements of Comprehensive Income

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	)

Schedule of Condensed Consolidating Statements of Cash Flows

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