XML 31 R12.htm IDEA: XBRL DOCUMENT v3.19.3
Restructuring and Related Charges
 9 Months Ended
Sep. 27, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Charges
5.
Restructuring and Related Charges
In July 2016, the Company's Board of Directors approved a $100.0 million to $125.0 million restructuring program (the "2016 Mallinckrodt Program"), designed to further improve its cost structure as the Company continues to transform its business. The 2016 Mallinckrodt Program included actions across the Specialty Brands segment and the Specialty Generics segment, as well as within the corporate functions. The 2016 Mallinckrodt Program was substantially completed in fiscal 2018.
In February 2018, the Company's Board of Directors approved a $100.0 million to $125.0 million restructuring program (the "2018 Mallinckrodt Program") that is of similar design as the 2016 Mallinckrodt Program. The utilization of the 2018 Mallinckrodt Program commenced upon substantial completion of the 2016 Mallinckrodt Program. There is no specified time period associated with the 2018 Mallinckrodt Program.
In addition to the 2018 and 2016 Mallinckrodt Programs, the Company has taken restructuring actions to generate synergies from its acquisitions.
Net restructuring and related charges by segment were as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Specialty Brands
$
—

 
$
4.9

 
$
0.4

 
$
52.4

Specialty Generics
6.7

 
0.1

 
9.3

 
5.3

Corporate
0.5

 
14.6

 
1.5

 
48.9

Restructuring and related charges, net
7.2

 
19.6

 
11.2

 
106.6

Less: accelerated depreciation
—

 
(4.8
)
 
—

 
(4.8
)
Restructuring charges, net
$
7.2

 
$
14.8

 
$
11.2

 
$
101.8



Net restructuring and related charges by program were comprised of the following:
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
2018 Mallinckrodt Program
$
6.7

 
$
5.2

 
$
9.3

 
$
5.2

2016 Mallinckrodt Program
0.5

 
9.8

 
2.7

 
70.2

Acquisition Programs
—

 
4.6

 
(0.8
)
 
31.2

Total
7.2

 
19.6

 
11.2

 
106.6

Less: non-cash charges, including accelerated depreciation
—

 
(4.8
)
 
—

 
(4.8
)
Total charges expected to be settled in cash
$
7.2

 
$
14.8

 
$
11.2

 
$
101.8



The following table summarizes cash activity for restructuring reserves, substantially all of which related to contract termination costs, employee severance and benefits, and exiting certain facilities:
 
2018 Mallinckrodt Program
 
2016 Mallinckrodt Program
 
Acquisition Programs
 
Total
Balance as of December 28, 2018
$
2.2

 
$
61.0

 
$
7.8

 
$
71.0

Charges
10.4

 
3.1

 
—

 
13.5

Changes in estimate
(1.1
)
 
(0.4
)
 
(0.8
)
 
(2.3
)
Cash payments
(6.9
)
 
(12.3
)
 
(1.9
)
 
(21.1
)
Reclassifications (1)
—

 
(5.0
)
 
(4.3
)
 
(9.3
)
Currency translation
—

 
(1.7
)
 
—

 
(1.7
)
Balance as of September 27, 2019
$
4.6

 
$
44.7

 
$
0.8

 
$
50.1


(1)
Represents the reclassification of lease liabilities, net to lease liabilities and lease assets, which are reflected within other liabilities and other assets on the unaudited condensed consolidated balance sheet, due to the adoption of ASU 2016-02.

As of September 27, 2019, net restructuring and related charges incurred cumulative to date were as follows:
 
2018 Mallinckrodt Program
 
2016 Mallinckrodt Program
Specialty Brands
$
3.0

 
$
82.2

Specialty Generics
9.3

 
14.6

Corporate
2.2

 
28.1

 
$
14.5

 
$
124.9



All of the restructuring reserves were included in accrued and other current liabilities on the Company's unaudited condensed consolidated balance sheets.