Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Nov. 16, 2015 | Mar. 27, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Mallinckrodt plc | ||
Entity Central Index Key | 1,567,892 | ||
Trading Symbol | MNK | ||
Current Fiscal Year End Date | --09-25 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 25, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Ordinary Shares Outstanding | 115,947,044 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 15,146.4 |
Consolidated and Combined State
Consolidated and Combined Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||||||||||
Net sales | $ 882.4 | $ 877.3 | $ 819 | $ 768.2 | $ 673.7 | $ 530.1 | $ 448.7 | $ 429.5 | $ 3,346.9 | $ 2,082 | $ 1,712.3 | |||||||||
Cost of sales | 1,493.3 | 1,021.8 | 890 | |||||||||||||||||
Gross profit | 482.1 | 503.8 | 462.9 | 404.8 | 363.2 | 254.1 | 226.7 | 216.2 | 1,853.6 | 1,060.2 | 822.3 | |||||||||
Selling, general and administrative expenses | 1,169.8 | 745 | 495.9 | |||||||||||||||||
Research and development expenses | 185.1 | 163.5 | 157.9 | |||||||||||||||||
Separation costs | 0 | 9.6 | 74.2 | |||||||||||||||||
Restructuring charges, net | 40.4 | 81.4 | 23.7 | |||||||||||||||||
Non-restructuring impairment charges | 0 | 151.6 | 0 | |||||||||||||||||
Gain on divestiture and license | (3.5) | (15) | (2.9) | |||||||||||||||||
Operating income (loss) | 461.8 | (75.9) | 73.5 | |||||||||||||||||
Interest expense | (255.6) | (82.6) | (19.5) | |||||||||||||||||
Interest income | 1 | 1.5 | 0.3 | |||||||||||||||||
Other income, net | 8.1 | 3.1 | 1.4 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | [1] | 215.3 | (153.9) | 55.7 | ||||||||||||||||
Provision for (benefit from) income taxes | [1] | (92.9) | (10.1) | 47.5 | ||||||||||||||||
Income (loss) from continuing operations | 90 | 55.6 | 75.2 | 87.4 | (173.5) | (29) | 20.2 | 38.5 | 308.2 | (143.8) | 8.2 | |||||||||
Income (loss) from discontinued operations, net of tax expense (benefit) of $11.5, $(34.7), and $21.1 | (14.8) | 2.4 | 23.6 | 5.3 | (178.9) | 4.9 | (8.6) | 7.1 | 16.5 | (175.5) | 50.6 | |||||||||
Net income (loss) | $ 75.2 | $ 58 | $ 98.8 | $ 92.7 | $ (352.4) | $ (24.1) | $ 11.6 | $ 45.6 | $ 324.7 | $ (319.3) | $ 58.8 | |||||||||
Basic earnings per share (Note 8): | ||||||||||||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.77 | [2] | $ 0.47 | [2] | $ 0.64 | [2] | $ 0.75 | [2] | $ (2.04) | [2] | $ (0.50) | [2] | $ 0.35 | [2] | $ 0.67 | [2] | $ 2.64 | $ (2.22) | $ 0.14 | |
Earnings Per Share, Basic | 0.14 | (2.70) | 0.88 | |||||||||||||||||
Net income (in usd per share) | $ 2.78 | $ (4.92) | $ 1.02 | |||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 115.8 | 64.9 | 57.7 | |||||||||||||||||
Diluted earnings per share (Note 8): | ||||||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.76 | [2] | $ 0.47 | [2] | $ 0.64 | [2] | $ 0.74 | [2] | $ (2.04) | [2] | $ (0.50) | [2] | $ 0.34 | [2] | $ 0.66 | [2] | $ 2.61 | $ (2.22) | $ 0.14 | |
Earnings Per Share, Diluted | 0.14 | (2.70) | 0.88 | |||||||||||||||||
Net income (in usd per share) | $ 2.75 | $ (4.92) | $ 1.02 | |||||||||||||||||
Diluted weighted-average shares oustanding (in shares) | 117.2 | 64.9 | 57.8 | |||||||||||||||||
[1] | Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. | |||||||||||||||||||
[2] | Quarterly and annual computations are prepared independently. Therefore, the sum of each quarter may not necessarily total the fiscal period amounts noted elsewhere within this Annual Report on Form 10-K. |
Consolidated and Combined Stat3
Consolidated and Combined Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Income Statement [Abstract] | |||
Tax (benefit) expense on income (loss) from discontinued operations | $ 11.5 | $ (34.7) | $ 21.1 |
Consolidated and Combined Stat4
Consolidated and Combined Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ 75.2 | $ 58 | $ 98.8 | $ 92.7 | $ (352.4) | $ (24.1) | $ 11.6 | $ 45.6 | $ 324.7 | $ (319.3) | $ 58.8 |
Other comprehensive income (loss), net of tax | |||||||||||
Currency translation adjustments | (70.8) | (27.6) | 1.5 | ||||||||
Unrecognized gain (loss) on derivatives, net of tax (benefit) expense of $0.2, $0.2 and $- | 0.4 | 0.5 | (7.3) | ||||||||
Unrecognized gain (loss) on benefit plans, net of tax (benefit) expense of $(2.1), $(7.3) and $23.9 | 5.6 | (15.7) | 34.2 | ||||||||
Total other comprehensive income (loss), net of tax | (64.8) | (42.8) | 28.4 | ||||||||
Comprehensive income (loss) | $ 259.9 | $ (362.1) | $ 87.2 |
Consolidated and Combined Stat5
Consolidated and Combined Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Unrecognized loss on derivatives, tax | $ (0.2) | $ (0.2) | $ 0 |
Unrecognized gain (loss) on benefit plans, tax | $ 2.1 | $ 7.3 | $ (23.9) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 365.9 | $ 707.8 |
Accounts receivable, less allowance for doubtful accounts of $4.7 and $3.7 | 548.5 | 476.6 |
Inventories | 281.8 | 306.4 |
Deferred income taxes | 142.7 | 152.3 |
Prepaid expenses and other current assets | 207.3 | 227.1 |
Current assets held for sale | 299.9 | 200.8 |
Total current assets | 1,846.1 | 2,071 |
Property, plant and equipment, net | 991.3 | 886.8 |
Goodwill | 3,649.4 | 2,401.9 |
Intangible assets, net | 9,666.3 | 7,082.2 |
Long-term assets held for sale | 0 | 111.2 |
Other assets | 251 | 234.2 |
Total Assets | 16,404.1 | 12,787.3 |
Current Liabilities: | ||
Current maturities of long-term debt | 22.3 | 21.2 |
Accounts payable | 133 | 110.7 |
Accrued payroll and payroll-related costs | 103.7 | 116.3 |
Accrued royalties | 29.3 | 67.7 |
Accrued and other current liabilities | 568.3 | 529.9 |
Current liabilities held for sale | 72.8 | 59 |
Total current liabilities | 929.4 | 904.8 |
Long-term debt | 6,474.3 | 3,874 |
Pension and postretirement benefits | 116.7 | 116.2 |
Environmental liabilities | 73.3 | 59.2 |
Deferred income taxes | 3,132.4 | 2,399.6 |
Other income tax liabilities | 121.3 | 122.6 |
Long-term liabilities held for sale | 0 | 9.7 |
Other liabilities | 245.5 | 343.2 |
Total Liabilities | 11,092.9 | 7,829.3 |
Shareholders' Equity: | ||
Preferred shares, $0.20 par value, 500,000,000 authorized; none issued or outstanding | 0 | 0 |
Ordinary A shares, €1.00 par value, 40,000 authorized; none issued or outstanding | 0 | 0 |
Ordinary shares, $0.20 par value, 500,000,000 authorized; 117,513,370 and 116,160,353 issued; 116,283,149 and 115,929,588 outstanding | 23.5 | 23.2 |
Ordinary shares held in treasury at cost, 1,230,221 and 230,765 | (109.7) | (17.5) |
Additional paid-in capital | 5,357.6 | 5,172.4 |
Retained earnings (deficit) | 38.9 | (285.8) |
Accumulated other comprehensive income | 0.9 | 65.7 |
Total Shareholders' Equity | 5,311.2 | 4,958 |
Total Liabilities and Shareholders' Equity | $ 16,404.1 | $ 12,787.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Millions | Sep. 25, 2015€ / shares | Sep. 25, 2015USD ($)$ / sharesshares | Sep. 26, 2014€ / shares | Sep. 26, 2014USD ($)$ / sharesshares |
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts | $ | $ 4.7 | $ 3.7 | ||
Preferred shares, par value (in usd per share) | $ / shares | $ 0.20 | $ 0.20 | ||
Preferred shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Preferred shares, shares issued (in shares) | 0 | 0 | ||
Preferred shares, shares outstanding (in shares) | 0 | 0 | ||
Ordinary A shares, par value (in eur per share) | € / shares | € 1 | € 1 | ||
Ordinary A shares, shares authorized (in shares) | 40,000 | 40,000 | ||
Ordinary A shares, shares issued (in shares) | 0 | 0 | ||
Ordinary A shares, shares outstanding (in shares) | 0 | 0 | ||
Ordinary shares, par value (in usd per share) | $ / shares | $ 0.20 | $ 0.20 | ||
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued (in shares) | 117,513,370 | 116,160,353 | ||
Ordinary shares, shares outstanding (in shares) | 116,283,149 | 115,929,588 | ||
Ordinary shares held in treasury (in shares) | 1,230,221 | 230,765 |
Consolidated and Combined Stat8
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 324.7 | $ (319.3) | $ 58.8 |
Adjustments to reconcile net cash provided by operating activities: | |||
Depreciation and amortization | 672.5 | 275.9 | 139.6 |
Share-based compensation | 117 | 67.7 | 16.2 |
Deferred income taxes | (191.6) | (107.5) | (9) |
Non-cash impairment charges | 0 | 381.2 | 0 |
Inventory provisions | 0 | 32.1 | 15.5 |
Other non-cash items | (59.6) | (23.6) | (6.2) |
Changes in assets and liabilities, net of the effects of acquisitions: | |||
Accounts receivable, net | 0.7 | (51.3) | (181.2) |
Inventories | 61.3 | 56 | 27.7 |
Accounts payable | 20.4 | (32.9) | 7.2 |
Income taxes | 30.2 | (54.8) | 60.7 |
Other | (79.2) | 149.9 | 6.6 |
Net cash provided by operating activities | 896.4 | 373.4 | 135.9 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (148) | (127.8) | (147.9) |
Acquisitions and intangibles, net of cash acquired | (2,154.7) | (2,793.8) | (88.1) |
Restricted cash | 3.1 | 4.1 | 0 |
Other | 3 | 26.7 | 1.3 |
Net cash used in investing activities | (2,296.6) | (2,890.8) | (234.7) |
Cash Flows from Financing Activities: | |||
Issuance of external debt | 3,010 | 3,043.2 | 898.1 |
Repayment of external debt and capital leases | (1,848.4) | (34.8) | (1.3) |
Excess tax benefit from share-based compensation | 34.1 | 8.9 | 3.4 |
Debt financing costs | (39.9) | (71.7) | (12) |
Net transfers to parent | 0 | 0 | (515.9) |
Proceeds from exercise of share options | 34.4 | 25.8 | 0.6 |
Repurchase of shares | (92.2) | (17.5) | 0 |
Other | (28.1) | 0 | 0.1 |
Net cash provided by financing activities | 1,069.9 | 2,953.9 | 373 |
Effect of currency rate changes on cash | (11.6) | (4.2) | 1.3 |
Net (decrease) increase in cash and cash equivalents | (341.9) | 432.3 | 275.5 |
Cash and cash equivalents at beginning of period | 707.8 | 275.5 | 0 |
Cash and cash equivalents at end of period | 365.9 | 707.8 | 275.5 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 200.5 | 57.2 | 0.8 |
Cash paid for income taxes, net | $ 123.8 | $ 128 | $ 15 |
Consolidated and Combined Stat9
Consolidated and Combined Statement of Changes in Shareholders' Equity Statement - USD ($) $ in Millions | Total | Ordinary Shares | Treasury Shares | Additional Paid-In Capital | Retained Earnings | Contributed Surplus | Parent Company Investment | Accumulated Other Comprehensive Income |
Beginning balance, shares at Sep. 28, 2012 | 0 | 0 | ||||||
Beginning balance, value at Sep. 28, 2012 | $ 1,891.9 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,807 | $ 84.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 58.8 | 33.5 | 25.3 | |||||
Currency translation adjustments | 1.5 | 1.5 | ||||||
Change in derivatives, net of tax | (7.3) | (7.3) | ||||||
Minimum pension liability, net of tax | 34.2 | 34.2 | ||||||
Net transfers to parent | (515.9) | (515.9) | ||||||
Separation related adjustments | (214.7) | (209.9) | (4.8) | |||||
Transfer of parent company investment to contributed surplus | 0 | 1,106.5 | (1,106.5) | |||||
Transfer of contributed surplus to distributable reserves | 0 | 1,095 | (1,095) | |||||
Share options exercised, value | 0.6 | 0.6 | ||||||
Share-based compensation | 6.5 | 6.5 | ||||||
Issuance of ordinary shares, shares | 57,700,000 | |||||||
Issuance of ordinary shares, value | 0 | $ (11.5) | (11.5) | |||||
Ending balance, shares at Sep. 27, 2013 | 57,700,000 | 0 | ||||||
Ending balance, value at Sep. 27, 2013 | 1,255.6 | $ 11.5 | $ 0 | 1,102.1 | 33.5 | 0 | 0 | 108.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (319.3) | (319.3) | ||||||
Currency translation adjustments | (27.6) | (27.6) | ||||||
Change in derivatives, net of tax | 0.5 | 0.5 | ||||||
Minimum pension liability, net of tax | (15.7) | (15.7) | ||||||
Ordinary shares issued in connection with the Questcor acquisition, shares | 57,300,000 | |||||||
Ordinary shares issued in connection with the Questcor acquisition, value | $ 3,979.6 | $ 11.4 | 3,968.2 | |||||
Share options exercised, shares | 878,330 | 800,000 | ||||||
Share options exercised, value | $ 25.8 | $ 0.2 | 25.6 | |||||
Vesting of restricted shares, shares | 400,000 | |||||||
Vesting of restricted shares, value | 0 | $ 0.1 | (0.1) | |||||
Excess tax benefit from share-based compensation | 8.9 | 8.9 | ||||||
Share-based compensation | 67.7 | 67.7 | ||||||
Repurchase of ordinary shares, shares | 200,000 | |||||||
Repurchase of ordinary shares, value | (17.5) | $ (17.5) | ||||||
Ending balance, shares at Sep. 26, 2014 | 116,200,000 | 200,000 | ||||||
Ending balance, value at Sep. 26, 2014 | 4,958 | $ 23.2 | $ (17.5) | 5,172.4 | (285.8) | 0 | 0 | 65.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 324.7 | |||||||
Currency translation adjustments | (70.8) | (70.8) | ||||||
Change in derivatives, net of tax | 0.4 | 0.4 | ||||||
Minimum pension liability, net of tax | $ 5.6 | 5.6 | ||||||
Share options exercised, shares | 1,132,778 | 1,200,000 | ||||||
Share options exercised, value | $ 34.4 | $ 0.2 | 34.2 | |||||
Vesting of restricted shares, shares | 1,300,000 | |||||||
Vesting of restricted shares, value | 0 | $ 0.3 | (0.3) | |||||
Shares canceled, shares | (1,200,000) | |||||||
Shares canceled, value | 0 | $ (0.2) | 0.2 | |||||
Excess tax benefit from share-based compensation | 34.1 | 34.1 | ||||||
Share-based compensation | 117 | 117 | ||||||
Repurchase of ordinary shares, shares | 1,000,000 | |||||||
Repurchase of ordinary shares, value | (92.2) | $ (92.2) | ||||||
Ending balance, shares at Sep. 25, 2015 | 117,500,000 | 1,200,000 | ||||||
Ending balance, value at Sep. 25, 2015 | $ 5,311.2 | $ 23.5 | $ (109.7) | $ 5,357.6 | $ 38.9 | $ 0 | $ 0 | $ 0.9 |
Background and Basis of Present
Background and Basis of Presentation (Notes) | 12 Months Ended |
Sep. 25, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | 1. Background and Basis of Presentation Background Mallinckrodt plc and its subsidiaries (collectively, "Mallinckrodt" or "the Company"), is a global specialty biopharmaceutical and nuclear imaging business that develops, manufactures, markets and distributes specialty pharmaceutical and biopharmaceutical products and nuclear imaging agents. Therapeutic areas of focus include autoimmune and rare disease specialty areas (including neurology, rheumatology, nephrology and pulmonology); immunotherapy and neonatal respiratory critical care therapies; and central nervous system drugs. The Company also supports the diagnosis of disease with nuclear medicine imaging agents. During the first quarter of fiscal 2015, the Company changed its reportable segments to present the Specialty Brands and Specialty Generics businesses as reportable segments. The Company historically presented the Specialty Brands and Specialty Generics businesses within the Specialty Pharmaceuticals segment. During the fourth quarter of fiscal 2015, the Company announced that it had entered into a definitive agreement to sell its global contrast media and delivery systems ("CMDS") business to Guerbet S.A. ("Guerbet"), which is expected to be completed during the first quarter of fiscal 2016. The CMDS business is deemed to be held for sale and the financial results of this business are presented as a discontinued operation. The CMDS business has been eliminated from the Global Medical Imaging segment, which has been renamed Nuclear Imaging. Prior year amounts have been recast to conform to current presentation. The three reportable segments are further described below: • Specialty Brands produces and markets branded pharmaceuticals and biopharmaceuticals; • Specialty Generics produces specialty generic pharmaceuticals and active pharmaceutical ingredients ("API") consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients; and • Nuclear Imaging manufactures and markets radiopharmaceuticals (nuclear medicine). In May 2015, the Board of Directors of Mallinckrodt plc approved the migration of the Company’s principal executive offices from Ireland to the United Kingdom. The Company remains incorporated in Ireland and continues to be subject to U.S. Securities and Exchange Commission ("SEC") reporting requirements and the applicable corporate governance rules of the New York Stock Exchange. Mallinckrodt plc was incorporated in Ireland on January 9, 2013 for the purpose of holding the Pharmaceuticals business of Covidien plc ("Covidien"), which was subsequently acquired by Medtronic plc. On June 28, 2013, Covidien shareholders of record received one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien held as of the record date, June 19, 2013, and the Pharmaceuticals business of Covidien was transferred to Mallinckrodt plc, thereby completing its legal separation from Covidien ("the Separation"). Basis of Presentation The accompanying consolidated and combined financial statements reflect the consolidated financial position of the Company as an independent, publicly-traded company for periods subsequent to June 28, 2013, and as a combined reporting entity of Covidien, including operations relating to Covidien's Pharmaceuticals business, for periods prior to June 28, 2013. The consolidated and combined financial statements have been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"). The preparation of the consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ from those estimates. The consolidated and combined financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which they own or control more than fifty percent of the voting shares, or have the ability to control through similar rights. The results of entities disposed of are included in the consolidated and combined financial statements up to the date of disposal and, where appropriate, these operations have been reflected as discontinued operations. Divestitures of product lines not representing businesses have been reflected in operating income. All intercompany balances and transactions have been eliminated in consolidation and, in the opinion of management, all normal recurring adjustments necessary for a fair presentation have been included in the results reported. As a result of the Company's classification of the CMDS business as held for sale and the change in reportable segments, certain amounts from prior years have been revised to conform to the current year presentation,. The Company's combined financial statements for periods prior to June 28, 2013, including the nine months ended June 28, 2013 that is included within the Company's fiscal 2013 results, may not be indicative of its future performance and do not necessarily reflect the results of operations, financial position and cash flows that would have been had it operated as an independent, publicly-traded company for the entirety of the periods presented, including as a result of changes in the Company's capitalization in connection with the Separation. The combined financial statements for periods prior to June 28, 2013 include expense allocations for certain functions provided by Covidien, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, employee benefits and incentives, insurance and share-based compensation. These expenses were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of operating expenses, headcount or other measures. The amounts allocated were $39.6 million for fiscal 2013 and were included within selling, general and administrative expenses. Management considers the bases on which the expenses have been allocated to reasonably reflect the utilization of services provided to, or the benefit received by, the Company during the periods presented; however, the allocations may not reflect the expense the Company would have incurred as an independent, publicly-traded company. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, including organizational structure, what functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. The Company is unable to determine what those costs would have been had the Company been independent during the applicable periods. Following the Separation, the Company has performed these functions using its own resources or purchased services, certain of which are being provided by Covidien during a transitional period pursuant to a transition services agreement dated June 28, 2013, between Mallinckrodt and Covidien, particularly in relation to areas outside the U.S. The terms and prices on which such services were rendered may not have been as favorable as those that were allocated to the Company by Covidien. The Company terminated the transition services agreement during the first quarter of fiscal 2015. The combined balance sheets prior to June 28, 2013 included certain assets and liabilities that have historically been recorded at the Covidien corporate level but are specifically identifiable or otherwise allocable to the Company. Covidien's debt and related interest expense were not allocated to the Company since the Company was not the legal obligor of such debt and Covidien's borrowings were not directly attributable to the Company's business. Debt incurred by the Company directly has been included in the combined financial statements. Intercompany transactions between the Company and Covidien, prior to the Separation, have been included in the combined financial statements and were considered to be effectively settled for cash at the time the transaction was recorded. The total net effect of the settlement of these intercompany transactions was reflected in the combined statements of cash flows as a financing activity and in the combined balance sheet as parent company investment. Prior to June 28, 2013, Covidien's investment in the Pharmaceuticals business is shown as parent company investment in the combined financial statements. On June 28, 2013, Covidien completed a distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. Upon completion of the Separation, the Company had 57,694,885 ordinary shares outstanding at a par value of $0.20 per share. After Separation adjustments were recorded, the remaining parent company investment balance, which included all earnings prior to the Separation, was transferred to contributed surplus. Under Irish law, the Company can only pay dividends and repurchase shares out of distributable reserves, as discussed further in the Company's information statement filed with the SEC as Exhibit 99.2 to the Company's Current Report on Form 8-K filed on July 1, 2013. Upon completion of the Separation, the Company did not have any distributable reserves. On July 22, 2013, the Company filed a petition with the High Court of Ireland seeking the court's confirmation of a reduction of the Company's share premium so that it can be treated as distributable for the purposes of Irish law. On September 9, 2013, the High Court of Ireland approved this petition and the High Court's order and minutes were filed with the Registrar of Companies. Upon this filing, the Company's share premium is treated as distributable reserves and the share premium balance was reclassified into additional paid-in capital within the consolidated balance sheet. Net income subsequent to the Separation has been included in retained earnings and is included in distributable reserves. Fiscal Year The Company reports its results based on a "52-53 week" year ending on the last Friday of September. Fiscal 2015 , 2014 and 2013 each consisted of 52 weeks. Unless otherwise indicated, fiscal 2015 , 2014 and 2013 refer to the Company's fiscal years ended September 25, 2015 , September 26, 2014 and September 27, 2013 , respectively. Fiscal 2016 will consist of 53 weeks and will end on September 30, 2016. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 25, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition The Company recognizes revenue for product sales when title and risk of loss have transferred from the Company to the buyer, which may be upon shipment, delivery to the customer site, consumption of the product by the customer, or over the period in which the customer has access to the product and any related services, based on contract terms or legal requirements in non-U.S. jurisdictions. The Company sells products through independent channels, including directly to retail pharmacies and end user customers and through distributors who resell the products to retail pharmacies, institutions and end user customers. Certain products are sold and distributed directly to hospitals. Chargebacks and rebates represent credits that are provided to certain distributors and customers for either the difference between the Company's contracted price with a customer and the distributor's invoice price paid to the Company or for contractually agreed volume price discounts. When the Company recognizes net sales, it simultaneously records an adjustment to revenue for estimated chargebacks, rebates, product returns and other sales deductions. These provisions are estimated based upon historical experience, estimated future trends, estimated customer inventory levels, current contracted sales terms with customers, level of utilization of the Company's products and other competitive factors. The Company adjusts these reserves to reflect differences between estimated activity and actual experience. Such adjustments impact the amount of net sales recognized by the Company in the period of adjustment. Taxes collected from customers relating to product sales and remitted to governmental authorities are accounted for on a net basis. Accordingly, such taxes are excluded from both net sales and expenses. Shipping and Handling Costs Shipping costs, which are costs incurred to physically move product from the Company's premises to the customer's premises, are classified as selling, general and administrative expenses. Handling costs, which are costs incurred to store, move and prepare product for shipment, are classified as cost of sales. Shipping costs included in selling, general and administrative expenses in continuing operations were $42.3 million , $47.8 million and $46.9 million in fiscal 2015 , 2014 and 2013 , respectively. Research and Development Internal research and development costs are expensed as incurred. Research and development expenses include salary and benefits, allocated overhead and occupancy costs, clinical trial and related clinical manufacturing costs, contract services and other costs. Upfront and milestone payments made to third parties under license arrangements are expensed as incurred up to the point of regulatory approval of the product. Milestone payments made to third parties upon or subsequent to regulatory approval are capitalized as an intangible asset and amortized to cost of sales over the estimated useful life of the related product. Currency Translation For the Company's non-U.S. subsidiaries that transact in a functional currency other than U.S. dollars, assets and liabilities are translated into U.S. dollars using fiscal year-end exchange rates. Revenues and expenses are translated at the average exchange rates in effect during the related month. The net effect of these translation adjustments is shown in the consolidated and combined financial statements as a component of accumulated other comprehensive income. For subsidiaries operating in highly inflationary environments or where the functional currency is different from the local currency, non-monetary assets and liabilities are translated at the rate of exchange in effect on the date the assets and liabilities were acquired or assumed, while monetary assets and liabilities are translated at fiscal year-end exchange rates. Translation adjustments of these subsidiaries are included in net income. Gains and losses resulting from foreign currency transactions are included in net income. During fiscal 2015 and 2014 , $30.7 million and $3.8 million of foreign currency gains , respectively, were included within net income from continuing operations. During fiscal 2013 , $12.8 million of foreign currency losses were included within net income from continuing operations. The Company entered into derivative instruments to mitigate the exposure of movements in certain of these foreign currency transactions and recognized a $24.8 million loss in fiscal 2015, a $6.3 million loss in fiscal 2014, and a $10.1 million gain in fiscal 2013 within net income from continuing operations. Cash and Cash Equivalents The Company classifies cash on hand and deposits in banks, including commercial paper, money market accounts and other investments it may hold from time to time, with an original maturity to the Company of three months or less, as cash and cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects an estimate of losses inherent in the Company's accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written off when management determines they are uncollectible. Trade accounts receivable are also presented net of reserves related to chargebacks and non-branded rebates payable to customers for whom we have trade accounts receivable and the right of offset exists. Inventories Inventories are recorded at the lower of cost or market value, primarily using the first-in, first-out convention. The Company reduces the carrying value of inventories for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. Property, Plant and Equipment Property, plant and equipment are stated at cost. Major renewals and improvements are capitalized, while routine maintenance and repairs are expensed as incurred. Depreciation for property, plant and equipment assets, other than land and construction in process, is generally based upon the following estimated useful lives, using the straight-line method: Buildings 10 to 45 years Leasehold improvements 1 to 20 years Capitalized software 1 to 10 years Machinery and equipment 1 to 20 years The Company capitalizes certain computer software and development costs incurred in connection with developing or obtaining software for internal use. Upon retirement or other disposal of property, plant and equipment, the cost and related amount of accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds is included in net income. The Company assesses the recoverability of assets or asset groups using undiscounted cash flows whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. If an asset or asset group is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value of the asset or asset group and its fair value. Acquisitions Amounts paid for acquisitions are allocated to the tangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The Company then allocates the purchase price in excess of net tangible assets acquired to identifiable intangible assets, including purchased research and development. The fair value of identifiable intangible assets is based on detailed valuations. The Company allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill. The Company's purchased research and development represents the estimated fair value as of the acquisition date of in-process projects that have not reached technological feasibility. The primary basis for determining technological feasibility of these projects is obtaining regulatory approval. The fair value of in-process research and development ("IPR&D") is determined using the discounted cash flow method. In determining the fair value of IPR&D, the Company considers, among other factors, appraisals, the stage of completion of the projects, the technological feasibility of the projects, whether the projects have an alternative future use and the estimated residual cash flows that could be generated from the various projects and technologies over their respective projected economic lives. The discount rate used includes a rate of return which accounts for the time value of money, as well as risk factors that reflect the economic risk that the cash flows projected may not be realized. The fair value attributable to IPR&D projects at the time of acquisition is capitalized as an indefinite-lived intangible asset and tested for impairment until the project is completed or abandoned. Upon completion of the project, the indefinite-lived intangible asset is then accounted for as a finite-lived intangible asset and amortized on a straight-line basis over its estimated useful life. If the project is abandoned, the indefinite-lived intangible asset is charged to expense. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to assets and liabilities assumed in a business combination. The Company tests goodwill for impairment during the fourth quarter of each fiscal year, or more frequently if impairment indicators arise. The impairment test is comprised of a two-step approach. The first step requires a comparison of the carrying value of the reporting units to the fair value of these units. The Company estimates the fair value of its reporting units through internal analyses and valuation, utilizing an income approach (a level three measurement technique) based on the present value of future cash flows. If the carrying value of a reporting unit exceeds its fair value, the Company will perform the second step of the goodwill impairment test to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of a reporting unit's goodwill with its carrying value. The implied fair value of goodwill is determined in the same manner that the amount of goodwill recognized in a business combination is determined, with the Company allocating the fair value of a reporting unit to all of the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. Intangible assets acquired in a business combination are recorded at fair value, while intangible assets acquired in other transactions are recorded at cost. Intangible assets with finite useful lives are subsequently amortized generally using the straight-line method over the following estimated useful lives of the assets, except for customer relationships which are amortized over the estimated pattern of benefit from these relationships: Completed technology 5 to 25 years License agreements 8 to 30 years Trademarks 13 to 30 years Customer relationships 12 years Amortization expense related to completed technology and certain other intangible assets is included in cost of sales, while amortization expense related to intangible assets that contribute to the Company's ability to sell, market and distribute products is included in selling, general and administrative expenses. When a triggering event occurs, we evaluate potential impairment of finite-lived intangible assets by first comparing undiscounted cash flows associated with the asset, or the asset group they are part of, to its carrying value. If the carrying value is greater than the undiscounted cash flows, the amount of potential impairment is measured by comparing the fair value of the assets, or the asset group they are part of, with their carrying value. The fair value of the intangible asset, or the asset group they are part of, is estimated using an income approach. If the fair value is less than the carrying value of the intangible asset, or the asset group they are part of, the amount recognized for impairment is equal to the difference between the carrying value of the asset and the fair value of the asset. The Company assesses the remaining useful life and the recoverability of finite-lived intangible assets whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. The Company annually tests the indefinite-lived intangible assets for impairment by comparing the fair value of the assets, estimated using an income approach, with their carrying value and records an impairment when the carrying value exceeds the fair value. Contingencies The Company is subject to various patent, product liability, government investigations, environmental liability and other legal proceedings in the ordinary course of business. The Company records accruals for contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. The Company discounts environmental liabilities using a risk-free rate of return when the obligation is fixed or reasonably determinable. The impact of the discount in the consolidated balance sheets was not material in any period presented. Legal fees, other than those pertaining to environmental and asbestos matters, are expensed as incurred. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. Assets and liabilities are not netted for financial statement presentation. Share-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments based on the grant-date fair value of those awards. That cost is recognized over the period during which an employee is required to provide service in exchange for the award, the requisite service period (generally the vesting period). For more information about our share-based awards, refer to Note 15. Income Taxes Income taxes for periods prior to the Separation were calculated on a separate tax return basis (inclusive of certain loss benefits), although the Company's operations had historically been included in Covidien's U.S. federal and state tax returns or the tax returns of non-U.S. jurisdictions. Accordingly, the income taxes presented for periods prior to June 28, 2013 do not necessarily reflect the results that would have occurred as an independent, publicly-traded company. With the exception of certain non-U.S. entities, the Company did not maintain taxes payable to or from Covidien and the Company was deemed to settle the annual current tax balances immediately with the legal tax-paying entities in the respective jurisdictions. These settlements were reflected as changes in parent company investment. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been reflected in the consolidated and combined financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax bases of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to reduce net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities are also recorded for deferred tax obligations related to installment sale arrangements. The deferral of tax payments to the IRS are subject to interest, which is accrued and included within interest expense. The Company determines whether it is more likely than not that a tax position will be sustained upon examination. The tax benefit of any tax position that meets the more-likely-than-not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the uncertainty. To the extent a full benefit is not expected to be realized on the uncertain tax position, an income tax liability is established. Interest and penalties on income tax obligations, associated with uncertain tax positions, are included in the provision for income taxes. The calculation of the Company's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across the Company's global operations. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from current estimates of the tax liabilities. If the Company's estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities may result in income tax benefits being recognized in the period when it is determined that the liabilities are no longer necessary. A significant portion of these potential tax liabilities are recorded in other income tax liabilities on the consolidated balance sheets as payment is not expected within one year. Parent Company Investment Parent company investment in periods prior to the Separation represents Covidien's historical investment in the Company, the Company's accumulated net earnings after income taxes for periods prior to that date, and the net effect of transactions with and allocations from Covidien. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Sep. 25, 2015 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Standards | 3. Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-11 in December 2011, "Disclosures about Offsetting Assets and Liabilities," which was clarified in January 2013 by ASU 2013-01 "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities." This guidance provides new disclosure requirements about instruments and transactions eligible for offset in the statement of financial position, as well as instruments and transactions subject to an agreement similar to a netting agreement, to enable users of financial statements to understand the effects or potential effects of those arrangements on an entity's financial position. The guidance was effective for the Company in the first quarter of fiscal 2014. The adoption did not have a material impact on the Company's financial condition, results of operations and cash flows. FASB issued ASU 2013-02, "Reporting Amounts Classified out of Accumulated Other Comprehensive Income," in February 2013. This guidance requires an entity to present, either on the face of the statement of income or separately in the notes to the financial statements, the effects on net income of significant amounts reclassified out of each component of accumulated other comprehensive income, if those amounts are required to be reclassified to net income in their entirety in the same reporting period. The guidance was effective for the Company in the first quarter of fiscal 2014. The adoption did not have a material impact on the Company's financial condition, results of operations and cash flows. FASB issued ASU 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date," in February 2013. This update provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance. An entity is required to measure those obligations as the sum of the amount the entity has agreed to pay on the basis of its arrangement among its co-obligors, and any additional amounts it expects to pay on behalf of its co-obligors. The guidance also requires the entity to disclose the nature and amount of those obligations. The guidance was effective for the Company in the first quarter of fiscal 2015. The adoption did not have a material impact to the Company's financial condition, results of operations and cash flows. FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," in July 2013. This update provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists, to eliminate diversity in practice in the presentation of unrecognized tax benefits in those instances. This guidance was effective for the Company in the first quarter of fiscal 2015. The adoption did not have a material impact to the Company's financial condition, results of operations and cash flows. FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," in April 2014. Under the new guidance, only disposals representing a strategic shift in a company's operations and financial results should be reported as discontinued operations, with expanded disclosures. In addition, disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify as a discontinued operation is required. This guidance is effective for the Company in the first quarter of fiscal 2016, with early adoption permitted. The Company early adopted the guidance during the fourth quarter of fiscal 2015 with the classification of the CMDS business as held for sale. FASB issued ASU 2014-09, "Revenue from Contracts with Customers," in May 2014. The issuance of ASU 2014-09 and International Financial Reporting Standards ("IFRS") 15, "Revenue from Contracts with Customers," completes the joint effort by FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and develop a common revenue standard for U.S. GAAP and IFRS. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance is effective for the Company in the first quarter of fiscal 2019. Early adoption is permitted in the first quarter of fiscal 2018. The Company continues to assess the potential impact of the guidance. FASB issued ASU 2015-03, "Interest - Imputation of Interest," in April 2015. The issuance of ASU 2015-03 is part of the FASB's initiative to simplify the presentation of debt issuance costs. Under the new guidance, debt issuance costs related to a recognized debt liability must be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amortization of such costs should continue to be calculated using the interest method and be reported as interest expense. The guidance is effective for the Company in the first quarter of fiscal 2016, with early adoption permitted. The Company early adopted the guidance during the fourth quarter of fiscal 2015 and reclassified debt issuance costs, of $103.1 million at September 25, 2015, and expanded disclosure. FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory," in July 2015. The issuance of ASU 2015-11 is part of the FASB's initiative to more closely align the measurement of inventory between GAAP and IFRS. Under the new guidance, inventory must be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for the Company in the first quarter of fiscal 2017. The Company is assessing the potential impact of the guidance. FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," in September 2015. Under the new guidance, the requirement to restate prior period financial statements for measurement period adjustments following a business combination is eliminated. The cumulative impact of a measurement period adjustment (including the impact on prior periods) should be recognized in the reporting period in which the adjustment is identified. The guidance is effective for the Company in the first quarter of fiscal 2017. The Company is assessing the potential impact of the guidance. |
Discontinued Operations and Div
Discontinued Operations and Divestitures | 12 Months Ended |
Sep. 25, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations and Divestitures | 4. Discontinued Operations and Divestitures Discontinued Operations CMDS: During the fourth quarter of fiscal 2015, the Company announced that it had entered into a definitive agreement to sell its CMDS business to Guerbet in a transaction valued at approximately $270.0 million , which is expected to be completed during the first quarter of fiscal 2016. As of September 25, 2015, the CMDS business is deemed to be held for sale and the financial results of this business are presented as a discontinued operation. The CMDS business has been eliminated from the Global Medical Imaging segment, which has been renamed Nuclear Imaging. Subsequent to the sale of the CMDS business, the Company will continue to supply certain products under a supply agreement with Guerbet. The following table summarizes the financial results of the CMDS discontinued operations for the fiscal years ended September 25, 2015, September 26, 2014 and September 27, 2013 as presented in the consolidated statements of operations and comprehensive income: Fiscal Year Major line items constituting income (loss) from discontinued operations 2015 2014 2013 Net sales $ 413.8 $ 495.8 $ 549.3 Cost of sales 306.4 352.9 346.7 Selling, general and administrative 97.5 97.1 114.0 Restructuring charges, net 0.3 47.2 9.5 Non-restructuring impairment charges — 204.0 — Other 4.7 4.1 8.4 Income (loss) from discontinued operations 4.9 (209.5 ) 70.7 Income tax expense (benefit) 10.8 (34.7 ) 21.1 Income (loss) from discontinued operations net of tax $ (5.9 ) $ (174.8 ) $ 49.6 The fiscal 2014 non-restructuring impairment charge of $204.0 million includes charges of $51.4 million associated with property, plant and equipment, $52.4 million associated with intangible assets and $100.2 million associated with goodwill. Further discussion of these impairment charges are included within Notes 10 and 11. The fiscal 2015 income tax expense of $10.8 million was impacted by approximately $10.0 million of tax expense related to taxes paid, or anticipated to be paid, in connection with the disposition. The fiscal 2014 income tax benefit of $34.7 million was impacted by receiving a tax benefit of $36.2 million on impairment of $204.0 million , by $3.0 million of tax expense associated with the rate difference between U.S. and non-U.S. jurisdictions, $2.5 million of tax benefit associated with nonrecurring valuation allowances, $0.9 million of tax expense associated with accrued income tax liabilities and uncertain tax positions, and $2.0 million of tax expense associated with permanently nondeductible, nontaxable, and other items. The fiscal 2013 income tax expense of $21.1 million was impacted by $0.7 million of tax benefit associated with the rate difference between U.S. and non-U.S. jurisdictions and $2.9 million of tax benefit associated with permanently nondeductible, nontaxable, and other items. Fiscal 2015 reflects $14.9 million of International current income tax expense, $4.4 million of International deferred income tax benefit, and none being allocable to the Domestic income tax provision. Fiscal 2014 reflects $10.4 million of Domestic current income tax expense, $6.6 million of International current income tax benefit, $35.6 million of Domestic deferred income tax benefit, and $3.0 million of International deferred income tax benefit. Fiscal 2013 reflects $5.6 million of Domestic current income tax expense, $10.7 million of International current income tax expense, $5.4 million of Domestic deferred income tax expense, and $0.5 million of International deferred income tax benefit. Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and 2013. The following table summarizes the assets and liabilities of the CMDS business that are classified as held for sale on the consolidated balance sheets as of September 25, 2015 and September 26, 2014: September 25, 2015 September 26, 2014 Carrying amounts of major classes of assets included as part of discontinued operations Accounts receivable $ 68.5 $ 68.9 Inventories 86.3 90.2 Property, plant and equipment, net 60.3 62.4 Intangible assets, net 27.7 30.0 Other current and non-current assets 57.1 60.5 Total assets classified as held for sale in the balance sheet $ 299.9 $ 312.0 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable $ 22.0 $ 18.0 Other current and non-current liabilities 50.8 50.7 Total liabilities classified as held for sale in the balance sheet $ 72.8 $ 68.7 The following table summarizes significant cash and non-cash transactions of the CMDS business that are included within the consolidated statements of cash flows for the fiscal years ended September 25, 2015, September 26, 2014 and September 27, 2013: Fiscal Year 2015 2014 2013 Depreciation $ 15.5 $ 18.9 $ 16.0 Amortization 2.3 7.5 7.5 Capital expenditures 9.5 12.3 17.4 Non-cash impairment charges — 204.0 — All other notes to the consolidated financial statements that were impacted by this discontinued operation have been reclassified accordingly. Mallinckrodt Baker: During fiscal 2010, the Specialty Chemicals business (formerly known as "Mallinckrodt Baker"), which was part of the Company's Specialty Pharmaceuticals segment, was sold because its products and customer bases were not aligned with the Company's long-term strategic objectives. This business met the discontinued operations criteria and, accordingly, was included in discontinued operations for all periods presented. During fiscal 2015 , 2014 and 2013 , the Company recorded a loss, net of tax, of $0.1 million , a loss of $0.7 million , and a gain of $1.0 million , respectively. These gains and losses were primarily related to the indemnification obligations to the purchaser, which are discussed in Note 18. Other: Prior to the Separation, the Company provided and accrued for an indemnification, to the purchaser of a certain legal entity, to indemnify it for tax obligations should the tax basis of certain assets not be recognized. The Company believes that, under the terms of the agreement between the parties, this indemnification obligation has expired. As such, the Company eliminated this liability and recorded a $22.5 million benefit, during fiscal 2015, in discontinued operations within the consolidated and combined statement of income. License of Intellectual Property The Company was involved in patent disputes with a counterparty relating to certain intellectual property related to extended-release oxymorphone. In December 2013, the counterparty agreed to pay the Company an upfront cash payment of $4.0 million and contractually obligated future payments of $8.0 million through July 2018, in exchange for the withdrawal of all claims associated with the intellectual property and a license to utilize the Company's intellectual property. The Company has completed the earnings process associated with the agreement and recorded an $11.7 million gain, included within gains on divestiture and license, during fiscal 2014 . |
Acquisitions and License Agreem
Acquisitions and License Agreements | 12 Months Ended |
Sep. 25, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and License Agreements | 5. Acquisitions and License Agreements Business Acquisitions Therakos, Inc. On September 25, 2015, the Company acquired Therakos, Inc. ("Therakos") through the acquisition of all the outstanding common stock of TGG Medical Solutions, Inc., the parent holding company of Therakos, in a transaction valued at approximately $1.3 billion , net of cash acquired ("the Therakos Acquisition"). Consideration for the transaction consisted of approximately $1.0 billion in cash paid to TGG Medical Solutions, Inc. shareholders and the assumption of approximately $0.3 billion of Therakos third-party debt, which was repaid in conjunction with the Therakos Acquisition. The acquisition and repayment of debt was funded through the issuance of $750.0 million aggregate principal amount of senior unsecured notes, a $500.0 million borrowing under a revolving credit facility and cash on hand. Therakos' primary immunotherapy products relate to the administering of extracorporeal photopheresis therapies through its UVAR XTS® and Cellex TM Photopheresis Systems, which accelerates the Company's growth in its Specialty Brands segment. Ikaria, Inc. On April 16, 2015, the Company acquired Ikaria, Inc. ("Ikaria") through the acquisition of all the outstanding common stock of Compound Holdings II, Inc., the parent holding company of Ikaria, in a transaction valued at approximately $2.3 billion , net of cash acquired ("the Ikaria Acquisition"). Consideration for the transaction consisted of approximately $1.2 billion in cash paid to Compound Holdings II, Inc. shareholders and the assumption of approximately $1.1 billion of Ikaria third-party debt, which was repaid in conjunction with the Ikaria Acquisition. The acquisition and repayment of debt was funded through the issuance of $1.4 billion aggregate principal amount of senior unsecured notes, a $240.0 million borrowing under the Revolver, which was repaid subsequent to the transaction, and cash on hand. Ikaria's primary product is INOMAX® (nitric oxide) for inhalation, a vital treatment option in neonatal critical care. Questcor Pharmaceuticals On August 14, 2014, the Company acquired all of the outstanding common stock of Questcor Pharmaceuticals, Inc. ("Questcor"), a biopharmaceutical company, for total consideration of approximately $5.9 billion , comprised of cash consideration of $30.00 per share, 0.897 ordinary shares of the Company for each share of Questcor common stock owned and the portion of outstanding equity awards deemed to have been earned as of August 14, 2014 ("the Questcor Acquisition"). The acquisition was funded through the issuance of approximately 57 million common shares, proceeds from the issuance of $900.0 million aggregate principal of senior unsecured notes, proceeds from a $700.0 million senior secured term loan facility, $150.0 million of cash from a receivable securitization program, as further discussed in Note 12, and cash on hand. H.P. Acthar® Gel (repository corticotropin injection) ("Acthar"), Questcor's primary product, is focused on the treatment of patients with serious, difficult-to-treat autoimmune and rare diseases. Acthar is an injectable drug that is approved by the U.S. Food and Drug Administration ("FDA") for use in 19 indications, including the areas of neurology, rheumatology, nephrology and pulmonology. Questcor also supplies specialty contract manufacturing services to the global pharmaceutical and biotechnology industry through its wholly-owned subsidiary, BioVectra Inc. Cadence Pharmaceuticals On March 19, 2014, the Company acquired all of the outstanding common stock of Cadence Pharmaceuticals, Inc. ("Cadence"), a biopharmaceutical company focused on commercializing products principally for use in the hospital setting, for total consideration of $14.00 per share in cash, or approximately $1.3 billion ("the Cadence Acquisition"). The acquisition was primarily funded through a $1.3 billion senior secured term loan credit facility, as further discussed in Note 12. Cadence's sole product, OFIRMEV® (acetaminophen) injection ("Ofirmev"), is a proprietary intravenous formulation of acetaminophen for the management of mild to moderate pain, the management of moderate to severe pain with adjunctive opioid analgesics and the reduction of fever. The Cadence Acquisition added a growth product to the Specialty Brands product portfolio and provided us the opportunity to expand our reach into the hospital market, in which Cadence had an established presence. CNS Therapeutics On October 1, 2012, the Company acquired all the outstanding equity of CNS Therapeutics, Inc. ("CNS Therapeutics"), a specialty pharmaceuticals company focused on developing and commercializing intrathecal products for site-specific administration to the central nervous system to treat neurological disorders and intractable chronic pain, for total consideration, net of cash acquired, of $95.0 million . The total consideration was comprised of an upfront cash payment of $88.1 million (net of cash acquired of $3.6 million ) and the fair value of contingent consideration of $6.9 million . This contingent consideration, which could potentially total a maximum of $9.0 million , is discussed further in Note 20. Fair Value Allocation The following amounts represent the preliminary allocation of the fair value of the identifiable assets acquired and liabilities assumed for the Therakos Acquisition and Ikaria Acquisition and final allocation of the fair value of the identifiable assets acquired and liabilities assumed for the Cadence Acquisition, Questcor Acquisition and CNS Therapeutics acquisition: Therakos Ikaria Questcor Cadence CNS Therapeutics Cash $ 41.3 $ 77.3 $ 445.1 $ 43.2 $ 3.6 Inventory 23.5 26.3 67.9 21.0 — Intangible assets 1,170.0 1,971.0 5,601.1 1,300.0 91.9 Goodwill (non-tax deductible) 437.2 792.4 1,789.4 318.1 24.5 Other assets, current and non-current (1) 42.1 172.9 274.3 18.0 9.7 Total assets acquired 1,714.1 3,039.9 8,177.8 1,700.3 129.7 Current liabilities 24.7 32.6 168.9 48.8 4.0 Unpaid purchase consideration (current) — — 128.8 — — Other liabilities (non-current) 0.6 9.1 186.8 — — Deferred tax liabilities, net (non-current) 324.3 623.6 1,906.8 292.3 27.1 Contingent consideration (non-current) — — — — 6.9 Total debt 344.8 1,121.0 — 30.0 — Total liabilities assumed 694.4 1,786.3 2,391.3 371.1 38.0 Net assets acquired $ 1,019.7 $ 1,253.6 $ 5,786.5 $ 1,329.2 $ 91.7 (1) This amount includes $22.0 million , $73.8 million , $87.3 million , $14.7 million and $3.3 million of accounts receivable for the Therakos Acquisition, Ikaria Acquisition, Questcor Acquisition, Cadence Acquisition, and CNS Therapeutics, respectively, which is also the gross contractual value. The following reconciles the total consideration to net assets acquired: Therakos Ikaria Questcor Cadence CNS Therapeutics Total consideration, net of cash $ 978.4 $ 1,176.3 $ 5,470.2 $ 1,286.0 $ 95.0 Plus: cash assumed in acquisition 41.3 77.3 445.1 43.2 3.6 Total consideration 1,019.7 1,253.6 5,915.3 1,329.2 98.6 Less: unpaid purchase consideration — — (128.8 ) — — Less: contingent consideration — — — — (6.9 ) Net assets acquired $ 1,019.7 $ 1,253.6 $ 5,786.5 $ 1,329.2 $ 91.7 Intangible assets acquired consist of the following: Therakos Amount Amortization Period Completed technology $ 1,170.0 15 years The completed technology intangible asset relates to extracorporeal photopheresis treatment therapies. The fair value of the intangible asset was determined using the income approach, which is a valuation technique that provides an estimate of the fair value of the asset based on market participant expectations of cash flows the asset would generate. The cash flows were discounted commensurate with the level of risk associated with each asset or its projected cash flows. The completed technology intangible asset utilized a discount rate of 17.0% . Based on the Company's preliminary estimate, the excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents the assembled workforce, future product and device development, anticipated synergies and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. All assets acquired are included within the Company's Specialty Brands segment. Ikaria Amount Amortization Period Completed technology $ 1,820.0 15 years Trademark 70.0 22 years In-process research and development - terlipressin 81.0 Non-Amortizable $ 1,971.0 The completed technology and trademark intangible assets relate to Inomax. The fair value of the intangible assets were determined using the income approach. The cash flows were discounted at various discount rates commensurate with the level of risk associated with each asset or its projected cash flows. Completed technology, trademark and in-process research and development ("IPR&D") terlipressin intangibles utilized discount rates of 14.5% , 14.5% , and 17.0% , respectively. The IPR&D discount rate for terlipressin was developed after assigning a probability of success to achieving the projected cash flows based on the current stage of development, inherent uncertainty in the FDA approval process and risks associated with commercialization of a new product. Based on the Company's preliminary estimate, the excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents the assembled workforce, future product and device development, anticipated synergies and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. All assets acquired are included within the Company's Specialty Brands segment. Questcor Amount Weighted-Average Amortization Period Completed technology $ 5,343.3 18 years Trademark 5.2 13 years Customer relationships 34.3 12 years In-process research and development - Synacthen 218.3 Non-Amortizable $ 5,601.1 The completed technology intangible asset relates to Acthar. The trademark and customer relationship intangible assets relate to BioVectra, Inc., a wholly-owned subsidiary of Questcor. The in-process research and development relates to the U.S. development of Synacthen, a synthetic pharmaceutical product. The fair value of the intangible assets were determined using the income approach. The cash flows were discounted at various discount rates commensurate with the level of risk associated with each asset or its projected cash flows. Completed technology, customer relationships, trademark and in-process research and development intangibles utilized discount rates of 14.5% , 10.0% , 10.0% and 16.0% , respectively. The in-process research and development discount rate was developed after assigning a probability of success to achieving the projected cash flows based on the current stage of development, inherent uncertainty in the FDA approval process and risks associated with commercialization of a new product. Based on the Company's preliminary estimate, the excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents the assembled workforce, anticipated synergies and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. The majority of assets acquired are included within the Company's Specialty Brands segment. Assets related to BioVectra, Inc. are included within the Company's Specialty Generics segment. Cadence Amount Amortization Period Completed technology $ 1,300.0 8 years The completed technology intangible asset relates to Ofirmev, the rights to which have been in-licensed from Bristol-Myers Squibb Company ("BMS"). The fair value of the intangible asset was determined using the income approach. The cash flows were discounted at a 13.0% rate. For more information on the BMS license agreement, refer to "License Agreement" below. The excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents the assembled workforce, anticipated synergies and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. All assets acquired are included within the Company's Specialty Brands segment. CNS Therapeutics Amount Weighted-Average Amortization Period Completed technology $ 73.1 13 years Trademark 0.2 3 years In-process research and development 18.6 Non-Amortizable $ 91.9 The in-process research and development projects primarily relate to certain investigational intrathecal pain products. As of the date of acquisition, these pain products were in various stages of development, with further development, testing, clinical trials and regulatory submission required in order to bring them to market. At the acquisition date, the total cost to complete these products was estimated to be approximately $18.0 million . The Company expects that regulatory approvals will occur between 2016 and 2019. The valuation of the in-process research and development was determined using, among other factors, appraisals primarily based on the discounted cash flow method. The cash flows were discounted at a 35% rate, which was considered commensurate with the risks and stages of development of the pain products. Future residual cash flows that could be generated from the products were determined based upon management's estimate of future revenue and expected profitability of the products. These projected cash flows were then discounted to their present values taking into account management's estimate of future expenses that would be necessary to bring the products to completion. The goodwill is not deductible for U.S. income tax purposes. All assets acquired are included within the Company's Specialty Brands segment. Financial Results - The amount of net sales and earnings included in the Company's results for the periods presented were as follows: Net sales 2015 2014 Ikaria $ 191.9 $ — Questcor 1,125.9 129.2 Cadence 263.0 124.4 $ 1,580.8 $ 253.6 Operating income (loss) Ikaria $ 47.1 $ — Questcor 223.3 17.4 Cadence (97.3 ) (66.9 ) $ 173.1 $ (49.5 ) The amount of amortization on acquired intangible assets included within operating income (loss) for the periods presented was as follows: Intangible asset amortization 2015 2014 Ikaria $ 57.1 $ — Questcor 301.4 34.9 Cadence 162.5 85.9 $ 521.0 $ 120.8 During fiscal 2015 and 2014, the Company recognized $44.1 million and $25.7 million , respectively, of expense primarily associated with fair value adjustments of acquired inventory. This expense was included within cost of sales. Acquisition-Related Costs - Acquisition-related costs incurred in fiscal 2015 and 2014 for each of the fiscal 2015 and 2014 acquisitions discussed above were as follows: Acquisition-related costs 2015 2014 Therakos $ 22.5 $ — Ikaria 30.9 — Questcor — 47.5 Cadence — 17.6 $ 53.4 $ 65.1 Unaudited Pro Forma Financial Information - The following unaudited pro forma information presents a summary of the results of operations for the periods indicated as if the Questcor Acquisition and Cadence Acquisition had been completed as of September 29, 2012 and the Ikaria Acquisition and Therakos Acquisition as of September 28, 2013. The pro forma financial information is based on the historical financial information for the Company, Ikaria, Questcor and Cadence, along with certain pro forma adjustments. These pro forma adjustments consist primarily of: • non-recurring costs related to the step-up in fair value of acquired inventory and transaction costs related to the acquisitions; • increased amortization expense related to the intangible assets acquired in the acquisitions; • elimination of direct acquisition transaction costs from the period of acquisition; • increased interest expense to reflect the fixed rate unsecured notes and revolving credit facility (utilizing the interest rate in effect at the date of the acquisition of 2.6% ) entered into in connection with the Therakos Acquisition, the fixed rate unsecured notes entered into in connection with the Ikaria Acquisition (assuming no interest related to the revolving credit facility which was paid down subsequent to the Ikaria Acquisition), the fixed-rate senior unsecured notes and variable-rate term loan entered into in connection with the acquisition of Questcor (utilizing the interest rate in effect at the date of acquisition of 3.50% ), and the variable-rate term loan and revolving credit facility entered into in connection with the Cadence Acquisition (utilizing the interest rate in effect at the date of acquisition of 3.50% ) including interest and amortization of deferred financing costs and original issue discount; and • the related income tax effects. The following unaudited pro forma information has been prepared for comparative purposes only and is not necessarily indicative of the results of operations as they would have been had the acquisition occurred on the assumed date, nor is it necessarily an indication of future operating results. In addition, the unaudited pro forma information does not reflect the cost of any integration activities, benefits from any synergies that may be derived from the acquisition or revenue growth that may be anticipated. 2015 2014 Net sales $ 3,755.8 $ 3,598.1 Income (loss) from continuing operations 359.9 (63.1 ) Basic earnings (loss) per share from continuing operations $ 3.11 $ (0.55 ) Diluted earnings (loss) from per share continuing operations 3.07 (0.55 ) License Agreements Ofirmev As part of the Cadence Acquisition, the Company acquired the exclusive development and commercialization rights to Ofirmev in the U.S. and Canada, as well as the rights to the patents and technology, which were originally in-licensed by Cadence from BMS in March 2006. BMS sublicensed these rights to Cadence under a license agreement with SCR Pharmatop S.A. ("Pharmatop"), and the Company has the right to grant sublicenses to third parties. Under this license agreement, the Company may be obligated to make future milestone payments of up to $25.0 million upon the achievement of certain levels of net sales, of which $10.0 million was paid during fiscal 2015. In addition, the Company is obligated to pay royalties on sales of the product. During fiscal 2015 and 2014, the Company paid royalties of $43.9 million and $13.2 million respectively. Exalgo In 2009, the Company's Specialty Brands segment acquired the rights to market and distribute the pain management drug EXALGO® (hydromorphone HCl) extended-release tablets (CII) ("Exalgo") in the U.S. Under the license agreement, the Company is obligated to make additional payments of up to $73.0 million based on the successful completion of specified development and regulatory milestones. Through fiscal 2015 , $65.0 million of additional payments had been made, with $55.0 million being capitalized as an intangible asset. The Company is also required to pay royalties on sales of the product. During fiscal 2015 , 2014 and 2013 , the Company paid royalties of $3.2 million , $22.0 million and $24.0 million , respectively. In January 2014, the Company purchased certain royalty rights associated with Exalgo for $7.2 million , which have been capitalized as an intangible asset. Depomed In 2009, the Company's Specialty Brands segment licensed worldwide rights to utilize Depomed, Inc.'s ("Depomed") Acuform gastric retentive drug delivery technology for the exclusive development of four products. Under this license agreement, the Company may be obligated to pay up to $64.0 million in development milestone payments. Through fiscal 2015 , approximately $22.0 million of these payments have been made by the Company. During fiscal 2014, upon approval by the FDA for XARTEMIS™ XR (oxycodone HCl and acetaminophen) extended release tablets CII ("Xartemis XR"), the Company made a milestone payment of $10.0 million , which has been capitalized as an intangible asset. Pennsaid In 2009, the Company's Specialty Brands segment entered into a licensing agreement which granted it rights to market and distribute Pennsaid and Pennsaid 2%, a formulation of diclofenac sodium topical solution which was approved in February 2014 by the FDA and indicated for the treatment of pain associated with osteoarthritis of the knee. The Company was responsible for future development activities and expenses and were required to make milestone payments of up to $120.0 million based upon the successful completion of specified regulatory and sales milestones. Through fiscal 2015 , $15.0 million of these payments were made, all of which were capitalized as an intangible asset. The Company is also required to pay royalties on sales of the products under this agreement. During fiscal 2015 , 2014 and 2013 , the Company paid royalties of $1.8 million , $4.3 million and $3.9 million , respectively. During the fourth quarter of fiscal 2014, the Company reached an agreement in principle with Nuvo to settle various claims associated with our license of Pennsaid obtained from Nuvo. As part of the legal settlement, the Company agreed to return the license to Nuvo, which resulted in the Company recording an impairment of $11.1 million during the fourth quarter of fiscal 2014. |
Restructuring and Related Charg
Restructuring and Related Charges | 12 Months Ended |
Sep. 25, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | 6. Restructuring and Related Charges During fiscal 2013, the Company launched a restructuring program designed to improve its cost structure ("the 2013 Mallinckrodt Program"). The 2013 Mallinckrodt Program includes actions across all segments, as well as within corporate functions. The Company expects to incur charges of $100.0 million to $125.0 million under this program as the specific actions required to execute on these initiatives are identified and approved, most of which are expected to be incurred by the end of fiscal 2016. Prior to Separation, Covidien initiated restructuring programs, which also applied to its Pharmaceutical business. These programs were substantially completed as of September 26, 2014 . Net restructuring and related charges by segment within continuing operations are as follows: Fiscal Year 2015 2014 2013 Specialty Brands $ 36.5 $ 57.0 $ 5.2 Specialty Generics 4.5 9.8 11.2 Nuclear Imaging (4.6 ) 13.7 6.9 Corporate 4.3 1.4 3.0 Restructuring and related charges, net 40.7 81.9 26.3 Less: accelerated depreciation (0.3 ) (0.5 ) (2.6 ) Restructuring charges, net $ 40.4 $ 81.4 $ 23.7 Net restructuring and related charges by program within continuing operations are comprised of the following: Fiscal Year 2015 2014 2013 2013 Mallinckrodt Program $ 7.4 $ 27.3 $ 8.5 Acquisition programs 33.6 56.4 — Other programs (0.3 ) (1.8 ) 17.8 Total programs 40.7 81.9 26.3 Less: non-cash charges, including impairments and accelerated share based compensation expense (10.1 ) (38.0 ) (2.6 ) Total charges expected to be settled in cash $ 30.6 $ 43.9 $ 23.7 Non-cash charges in fiscal 2015 and fiscal 2014 include $9.8 million and $35.1 million , respectively, of accelerated share based compensation expense related to employee terminations, primarily related to our Questcor acquisition, and fiscal 2014 includes $2.3 million of property, plant and equipment asset impairments. The following table summarizes cash activity for restructuring reserves, substantially all of which related to employee severance and benefits, with the exception of $8.5 million in fiscal 2014 related to consulting costs associated with restructuring initiatives related to the CMDS business: 2013 Mallinckrodt Program Acquisition Programs Other Programs Total Balance at September 28, 2012 $ — $ — $ 8.9 $ 8.9 Charges from continuing operations 8.5 — 17.6 26.1 Charges from discontinued operations 6.4 — 3.3 9.7 Changes in estimate from continuing operations — — (2.4 ) (2.4 ) Changes in estimate from discontinued operations — — (0.2 ) (0.2 ) Cash payments — — (15.1 ) (15.1 ) Reclassifications (1) — — (1.5 ) (1.5 ) Balance at September 27, 2013 14.9 — 10.6 25.5 Charges from continuing operations 32.9 22.9 1.4 57.2 Charges from discontinued operations 25.3 — 1.1 26.4 Changes in estimate from continuing operations (7.6 ) (1.6 ) (4.1 ) (13.3 ) Changes in estimate from discontinued operations (1.8 ) — (0.7 ) (2.5 ) Cash payments (34.8 ) (13.4 ) (6.8 ) (55.0 ) Reclassifications (1) (1.3 ) — (1.0 ) (2.3 ) Currency translation (1.0 ) — (0.1 ) (1.1 ) Balance at September 26, 2014 26.6 7.9 0.4 34.9 Charges from continuing operations 15.4 25.3 — 40.7 Charges from discontinued operations 1.0 — — 1.0 Changes in estimate from continuing operations (8.3 ) (1.5 ) (0.3 ) (10.1 ) Changes in estimate from discontinued operations (0.6 ) — — (0.6 ) Cash payments (22.5 ) (21.7 ) (0.1 ) (44.3 ) Reclassifications (1) (3.0 ) — — (3.0 ) Currency translation (0.6 ) — — (0.6 ) Balance at September 25, 2015 $ 8.0 $ 10.0 $ — $ 18.0 (1) Represents the reclassification of pension and other postretirement benefits from restructuring reserves to pension and postretirement obligations. Net restructuring and related charges, including associated asset impairments, incurred cumulative to date related to the 2013 Mallinckrodt Program are as follows: Specialty Brands $ 4.0 Specialty Generics 15.6 Nuclear Imaging (including CMDS) 67.3 Corporate 10.0 $ 96.9 Substantially all of the restructuring reserves are included in accrued and other current liabilities on the Company's consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 25, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes In May 2015, the activities of the Company's principal executive offices were relocated from Ireland to the U.K. which resulted in a change in the Company's tax residence to the U.K. Mallinckrodt plc remains incorporated in Ireland. The tax regime applicable to holding companies resident in the U.K. allows Mallinckrodt plc to continue to have flexibility in structuring its subsidiary operations and enhanced global cash management. The Company continues to be subject to taxation in various tax jurisdictions worldwide. As a result of the integration of acquired intellectual property, the Company's income and assets are no longer concentrated in a single tax jurisdiction. Accordingly, in 2015 the Company reports the U.K. tax jurisdiction as its Domestic jurisdiction and the International jurisdiction represents areas outside the U.K. tax jurisdiction. The Domestic and International components of income from continuing operations before income taxes were as follows (1) : 2015 2014 2013 Domestic $ (107.0 ) $ (159.9 ) $ 34.7 International 322.3 6.0 21.0 Total $ 215.3 $ (153.9 ) $ 55.7 (1) Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. Significant components of income taxes related to continuing operations are as follows (1) : 2015 2014 2013 Current: Domestic $ 0.3 $ 40.9 $ 49.3 International 95.1 17.9 12.1 Current income tax provision 95.4 58.8 61.4 Deferred: Domestic $ (0.8 ) $ (49.7 ) $ (18.3 ) International (187.5 ) (19.2 ) 4.4 Deferred income tax (benefit) provision (188.3 ) (68.9 ) (13.9 ) $ (92.9 ) $ (10.1 ) $ 47.5 (1) Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. The fiscal 2015 International current income tax provision reflects a utilization of $7.0 million of net operating losses (primarily in the U.S.) and $14.3 million of U.S. credits. The net operating loss utilization is comprised of $4.8 million of net operating losses acquired in conjunction with the Ikaria Acquisition and the remainder utilization relating to net operating losses carried forward from fiscal 2014. The U.S. credit utilization is comprised of $7.2 million of credits acquired in conjunction with the Ikaria Acquisition and the remainder utilization relating to credits carried forward or generated during fiscal 2015. The fiscal 2014 Domestic current income tax provision reflects a utilization of $221.3 million of net operating losses (primarily in the U.S.) and $8.6 million of U.S. credits. The net operating loss utilization is comprised of $187.8 million of net operating losses acquired in conjunction with the Cadence Acquisition and the remainder utilization relating to net operating losses carried forward. The Company has a provincial tax holiday in Canada that expires on April 1, 2017. The tax holiday reduced International tax expense by $5.1 million and $0.3 million for the fiscal years 2015 and 2014, respectively. The reconciliation between Domestic income taxes at the statutory rate and the Company's provision for income taxes on continuing operations is as follows: 2015 2014 2013 Provision for income taxes at Domestic statutory income tax rate (1) $ 43.1 $ (53.8 ) $ 19.5 Adjustments to reconcile to income tax provision: U.S. state income tax provision, net (6) — (6.1 ) 3.7 Rate difference between Domestic and International jurisdictions (2) (3) (138.6 ) (10.6 ) 3.3 U.S. manufacturing deduction (6) — (4.1 ) (2.5 ) Valuation allowances, nonrecurring (2.1 ) 0.1 3.4 Adjustments to accrued income tax liabilities and uncertain tax positions (3) (6.8 ) (1.5 ) 5.0 Interest and penalties on accrued income tax liabilities and uncertain tax positions (3) 0.2 (7.9 ) 4.7 Investment in partnership — 20.0 — Credits, principally research and orphan drug (4) (8.1 ) (0.8 ) (6.3 ) Impairments, nondeductible — 41.8 — Permanently nondeductible and nontaxable items (5) 16.4 13.8 15.3 Other 3.0 (1.0 ) 1.4 Provision for income taxes $ (92.9 ) $ (10.1 ) $ 47.5 (1) The statutory tax rate reflects the U.K. statutory tax rate of 20% for fiscal 2015, and the U.S. federal statutory tax rate of 35% for fiscal 2014 and 2013. (2) Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. (3) Fiscal year 2013 includes impact of items relating to entities retained by Covidien in connection with the Separation. (4) During fiscal 2013, the U.S. Research Credit legislation was extended, with a retroactive effective date of January 1, 2012. As such, fiscal 2013 includes approximately $2.3 million of credit related to the period January 1, 2012 through September 28, 2012. Due to the December 31, 2013 tax law expiration, fiscal 2014 includes $0.7 million for the period September 28, 2013 through December 31, 2013. During fiscal 2015, the legislation was extended, with a retroactive effective date of January 1, 2014. As such, fiscal 2015 includes approximately $3.6 million of credit related to the period January 1, 2014 through September 26, 2014. (5) Includes the impact of nondeductible transaction and separation costs. (6) For fiscal 2015, U.S. state income tax benefit of $36.4 million, and U.S. manufacturing deduction tax benefit of $5.6 million were combined with the rate differences between Domestic and International jurisdictions. Fiscal 2014 includes U.S. state income tax benefit of $4.4 million associated with fiscal 2014 acquisitions and integration thereof. The rate difference between Domestic and International jurisdictions changed from $10.6 million of tax benefit to $138.6 million of tax benefit for fiscal 2014 to fiscal 2015, respectively. The rate difference between Domestic and International jurisdictions would have been $32.1 million of tax benefit in fiscal 2014 if the referenced rate would have been the U.K. statutory rate of 21% . This change was predominately related to recent acquisitions, which resulted in more income in lower tax rate jurisdictions and less income in the higher tax rate U.S. jurisdiction relative to income in all jurisdictions. The change in the lower tax rate jurisdictions was predominately due to recent acquisitions, both of which resulted in more income in lower tax rate jurisdictions and less income in the higher tax rate U.S. jurisdiction relative to income in all jurisdictions. The change in the lower tax rate jurisdictions was primarily attributable to increased operating income partially offset by amortization. The change in the U.S. jurisdiction was primarily attributable to increased amortization and the cost of financing recent acquisitions. Of the $128.0 million increase to tax benefit, $21.5 million of tax benefit can be attributed to the change in the referenced rate from U.S. to U.K, $35.0 million of tax benefit to the change in operating income, $22.5 million of tax expense to the change in amortization, $31.8 million of tax benefit to the U.S. state tax benefit associated with the impact of recent acquisitions, integration thereof, and legislative changes, and $62.2 million of tax benefit related to acquisition and other non-acquisition related items. The rate difference between Domestic and International jurisdictions changed from $3.3 million of tax expense to $10.6 million of tax benefit for fiscal 2013 to fiscal 2014, respectively. The rate difference between Domestic and International jurisdictions would have been $10.0 million of tax expense and $32.1 million of tax benefit if the referenced rate would have been the U.K. statutory rate of 23% and 21% for fiscal 2013 and 2014 respectively. This change was predominately related to recent acquisitions, which resulted in more income in lower tax rate jurisdictions and less income in the higher tax rate U.S. jurisdiction relative to income in all jurisdictions. The change in the lower tax rate jurisdictions was predominately due to recent acquisitions and the benefit of intercompany debt transferred to the Company at Separation, both of which resulted in more income in lower tax rate jurisdictions and less income in the higher tax rate U.S. jurisdiction relative to income in all jurisdictions. The change in the lower tax rate jurisdictions was primarily attributable to increased operating income partially offset by amortization. The change in the U.S. jurisdiction was primarily attributable to increased amortization and the cost of financing recent acquisitions. Of the $13.9 million decrease in tax expense, $10.8 million of tax expense can be attributed to the change in operating income, $14.0 million of tax expense to the change in amortization, and $38.7 million of tax benefit related to acquisition and other non-acquisition related items. As of September 25, 2015 , September 26, 2014 and September 27, 2013 , the amounts of unrecognized tax benefits for which the Company is legally and directly liable and would be required to remit cash if not sustained were $89.2 million , $82.0 million and $100.1 million , respectively. For periods prior to the Separation, the Company's operations had been included in tax returns filed by Covidien or certain of its subsidiaries not included in the Company's historical combined financial statements. As a result, some U.S. uncertain tax positions related to the Company's operations resulted in unrecognized tax benefits that are obligations of entities not included in the combined financial statements for periods prior to June 28, 2013. Because the activities that gave rise to these unrecognized tax benefits relate to the Company's operations, the impact of these items (presented in the table below) were charged to the income tax provision through parent company investment, which was a component of parent company equity in the combined balance sheets. The following table summarizes the activity related to the Company's unrecognized tax benefits, excluding interest: 2015 2014 2013 Balance at beginning of fiscal year $ 82.0 $ 100.1 $ 165.5 Unrecognized tax benefits retained by Covidien — — (153.7 ) Unrecognized tax benefits transferred from Covidien — — 84.2 Additions related to current year tax positions 4.5 3.2 3.5 Additions related to prior period tax positions 19.9 30.6 6.6 Reductions related to prior period tax positions (7.7 ) (33.0 ) (4.3 ) Settlements (7.8 ) (6.9 ) (1.6 ) Lapse of statute of limitations (1.7 ) (12.0 ) (0.1 ) Balance at end of fiscal year 89.2 82.0 100.1 During fiscal 2015, the Company made a payment of $8.9 million ( $7.4 million of tax and $1.5 million of interest) to the U.S. Internal Revenue Service ("IRS") in connection with the settlement of certain tax matters for 2008 and 2009. During fiscal 2014, the Company made a payment of $35.9 million ( $27.3 million of tax and $8.6 million of interest) to the IRS in connection with the settlement of certain tax matters for 2005 through 2007. Unrecognized tax benefits, excluding interest, are reported in the following consolidated balance sheet captions in the amount shown: September 25, 2015 September 26, 2014 Accrued and other current liabilities $ 1.3 $ 6.5 Other income tax liabilities 80.0 70.7 Deferred income taxes (non-current liability) 7.9 4.8 $ 89.2 $ 82.0 Included within total unrecognized tax benefits at September 25, 2015 , September 26, 2014 and September 27, 2013 , were $87.4 million , $82.0 million and $96.3 million , respectively, of unrecognized tax benefits, which if favorably settled would benefit the effective tax rate. The remaining unrecognized tax benefits for each period would be offset by the write-off of related deferred and other tax assets, if recognized. During fiscal 2015 , the Company recorded $5.7 million of additional interest through tax provision and acquisition accounting and decreased interest $9.3 million related to cash payments related to settlements as well as reductions related to prior periods. During fiscal 2014 and 2013 , the Company accrued additional interest of $7.0 million and $2.4 million , respectively. The total amount of accrued interest related to uncertain tax positions was $41.7 million , $45.1 million and $62.1 million , respectively. It is reasonably possible that within the next twelve months, as a result of the resolution of various Domestic and International examinations and appeals and the expiration of various statutes of limitation, that the unrecognized tax benefits could decrease by up to $17.5 million . Interest and penalties could decrease by up to $8.8 million . Income taxes payable, including uncertain tax positions and related interest accruals, is reported in the following consolidated balance sheet captions in the amounts shown. September 25, 2015 September 26, 2014 Accrued and other current liabilities $ 19.8 $ 13.1 Other income tax liabilities 121.3 122.6 $ 141.1 $ 135.7 At September 25, 2015 , other assets includes $52.2 million of tax payments associated with non-current deferred intercompany transactions. Prepaid expenses and other current assets includes $8.7 million of tax payments associated with current deferred intercompany transactions, and $81.3 million of receivables associated with tax payments on account with the taxing authorities. At September 26, 2014 , other assets includes $14.8 million of tax payments associated with non-current deferred intercompany transactions. Prepaid expenses and other current assets includes a receivable of $60.0 million associated with the Questcor acquisition and tax payments of $0.6 million associated with current deferred intercompany transactions. All of the above items exclude amounts related to assets which are held for sale. September 25, 2015 September 26, 2014 Other assets $ 52.2 $ 14.8 Prepaid expenses and other current assets 90.0 63.4 $ 142.2 $ 78.2 Covidien continues to be examined by various taxing authorities for periods the Company was included within the consolidated results of Covidien. In connection with the Separation, the Company entered into a tax matters agreement ("the Tax Matters Agreement") with Covidien that generally governs Covidien's and Mallinckrodt's respective rights, responsibilities and obligations after the Separation with respect to certain taxes, including, but not limited to, ordinary course of business taxes. For further information on the Tax Matters Agreement, refer to Note 17. As of September 25, 2015 , the earliest open year for U.S. federal and state tax jurisdictions is 1996 . Additionally, a number of tax periods from 2009 to present are subject to examination by tax authorities in various jurisdictions, including Ireland, Luxembourg, Switzerland, and the U.K. Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred tax (liability) asset at the end of each fiscal year were as follows: September 25, 2015 September 26, 2014 Deferred tax assets: Accrued liabilities and reserves $ 92.5 $ 68.9 Inventories 23.2 21.4 Tax loss and credit carryforwards 163.3 93.8 Environmental liabilities 23.6 29.5 Rebate reserves 48.5 41.1 Expired product 26.3 39.0 Postretirement benefits 33.8 34.5 Federal and state benefit of uncertain tax positions and interest 33.6 29.5 Share-based compensation 18.9 28.1 Intangible assets 105.7 9.6 Other 20.2 32.0 589.6 427.4 Deferred tax liabilities: Property, plant and equipment (140.1 ) (121.6 ) Intangible assets (1,550.7 ) (2,177.9 ) Installment sale (1,465.3 ) (93.6 ) Investment in partnership (187.9 ) (191.3 ) (3,344.0 ) (2,584.4 ) Net deferred tax (liability) before valuation allowances (2,754.4 ) (2,157.0 ) Valuation allowances (233.0 ) (76.9 ) Net deferred tax (liability) $ (2,987.4 ) $ (2,233.9 ) Deferred taxes are reported in the following consolidated and combined balance sheet captions in the amounts shown: September 25, 2015 September 26, 2014 Deferred income taxes (current asset) $ 142.7 $ 152.3 Other non-current assets 7.0 13.4 Accrued and other current liabilities (4.7 ) — Deferred income taxes (non-current liability) (3,132.4 ) (2,399.6 ) Net deferred tax (liability) $ (2,987.4 ) $ (2,233.9 ) The Company's current deferred tax asset decreased from $152.3 million at September 26, 2014 to $142.7 million at September 25, 2015 primarily due to changes in inventory valuation as a result of profits in intercompany inventory, the increase in deferred tax assets from the Ikaria Acquisition, and decreases to operational deferred tax assets due to normal operating activities. Additionally, the Company's non-current deferred tax liability increased from $2,399.6 million at September 26, 2014 to $3,132.4 million at September 25, 2015 , primarily due to $623.6 million related to the Ikaria Acquisition, $324.3 million related to the Therakos Acquisition, offset by $54.3 million of decreases associated with the amortization of intangibles, $105.4 million of decreases associated with the payment of internal installment sale obligations, and approximately $44.0 million of decreases related to other impacts of recent acquisitions and integration. The Ikaria Acquisition resulted in a net deferred tax liability increase of $596.9 million . Significant components of this increase include $620.2 million of deferred tax liabilities associated with intangibles and $17.5 million of deferred tax liability associated with property, plant and equipment, partially offset by $21.7 million of deferred tax assets associated with U.S. tax credits, $13.1 million of deferred tax assets associated with financing repayments and $4.9 million of deferred tax assets associated with U.S. net operating losses. The Therakos Acquisition resulted in a net deferred tax liability increase of $324.3 million . Significant components of this increase include $334.1 million of deferred tax liabilities associated with intangibles partially offset by $13.5 million of deferred tax assets predominately associated with U.S. net operating losses. As a part of the Questcor integration, the Company entered into an internal installment sale transaction during the three months ended December 26, 2014. The Questcor internal installment sale transaction resulted in a decrease of $1,488.7 million to the deferred tax liability associated with the Acthar intangible asset, a $1,515.9 million increase to the deferred tax liability associated with an installment sale note receivable, a $25.3 million increase to deferred tax charge, and a $1.9 million increase to prepaid taxes. At September 25, 2015 , the Company had approximately $126.0 million of net operating loss carryforwards in certain non-U.K. jurisdictions, of which $91.4 million have no expiration and the remaining $34.6 million will expire in future years through 2025 . The Company had $19.6 million of U.K. net operating loss carryforwards at September 25, 2015 , which have no expiration date. At September 25, 2015 the Company also had $16.3 million of tax credits available to reduce future income taxes payable, primarily in jurisdictions within the U.S., of which $3.1 million have no expiration and the remainder expire during fiscal 2016 through 2034 . The deferred tax asset valuation allowances of $233.0 million and $76.9 million at September 25, 2015 and September 26, 2014 , respectively, relate principally to the uncertainty of the utilization of certain deferred tax assets, primarily International net operating losses and intangible assets. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets. The tax residency change impacts the Company’s analysis of its cumulative unrepatriated earnings. As of September 25, 2015 , the cumulative amount of undistributed earnings of the Company's subsidiaries that may be subject to tax, but are considered to be indefinitely reinvested, was $369.0 million . It is not practicable to determine the cumulative amount of tax liability that would arise if these indefinitely reinvested earnings were remitted due to a variety of factors including the complexity of the Company's global legal entity structure as well as the timing, extent, and nature of any hypothetical repatriation of unremitted earnings. The net decrease in such undistributed earnings as compared to the period ended September 26, 2014 was attributable to the impact of the tax residency change and associated jurisdictions that could be remitted in a tax-free manner as well as the removal of the earnings for the entities classified as held for sale. These decreases were partially offset by an increase in unrepatriated earnings associated with income and losses attributed to the current year activity. The Company has accrued a $0.7 million deferred tax liability associated with approximately $13.4 million of unrepatriated earnings that are not indefinitely reinvested on assets from continuing operations. The Company has also accrued a $6.5 million deferred tax liability associated with approximately $41.3 million of unrepatriated earnings that are not indefinitely reinvested related to assets held for sale. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 12 Months Ended |
Sep. 25, 2015 | |
Earnings (Loss) per Share [Abstract] | |
Earnings (Loss) per Share | 8. Earnings (Loss) per Share In fiscal 2015 and 2014, basic and diluted earnings (loss) per share were computed using the two-class method. The two-class method is an earnings allocation that determines earnings per share for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s restricted stock awards, issued in conjunction with the Questcor Acquisition in August 2014, are considered participating securities as holders are entitled to receive non-forfeitable dividends during the vesting term. Diluted earnings per share includes securities that could potentially dilute basic earnings per share during a reporting period, for which the Company includes all share-based compensation awards other than participating securities. Dilutive securities, including participating securities, are not included in the computation of loss per share when the Company reports a net loss from continuing operations as the impact would be anti-dilutive. In periods prior to fiscal 2014, basic earnings (loss) per share was computed by dividing net income by the number of weighted-average shares outstanding during the period. Diluted earnings (loss) per share was computed using the weighted-average shares outstanding and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares represent the incremental ordinary shares issuable for restricted share units and share option exercises. The Company calculated the dilutive effect of outstanding restricted share units and share options on earnings (loss) per share by application of the treasury stock method. The computations of basic and diluted earnings (loss) per share assumes that the number of shares outstanding for periods prior to June 28, 2013 was equal to the number of ordinary shares of Mallinckrodt outstanding on June 28, 2013, immediately following the distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. The dilutive effect of the Company's share-based awards that were issued as a result of the conversion of Covidien share-based awards with the Separation, the conversion of Questcor share-based awards with the Questcor Acquisition, the initial equity awards granted to certain of the Company's executives on July 1, 2013 and any other Company grants made since the Separation have been included in the computation of diluted earnings per share for fiscal 2015, 2014 and 2013, calculated under the methodologies outlined above, weighted appropriately for the portion of the period they were outstanding. 2015 2014 2013 Earnings (loss) per share numerator: Income (loss) from continuing operations attributable to common shareholders before allocation of earnings to participating securities $ 308.2 $ (143.8 ) $ 8.2 Less: earnings allocated to participating securities 2.5 — — Income (loss) from continuing operations attributable to common shareholders, after earnings allocated to participating securities 305.7 (143.8 ) 8.2 Income (loss) from discontinued operations 16.5 (175.5 ) 50.6 Less: earnings from discontinued operations allocated to participating securities 0.1 — — Income (loss) from discontinued operations attributable to common shareholders, after allocation of earnings to participating securities 16.4 (175.5 ) 50.6 Net income (loss) attributable to common shareholders, after allocation of earnings to participating securities $ 322.1 $ (319.3 ) $ 58.8 Earnings (loss) per share denominator: Weighted-average shares outstanding - basic 115.8 64.9 57.7 Impact of dilutive securities 1.4 — 0.1 Weighted-average shares outstanding - diluted 117.2 64.9 57.8 Basic earnings (loss) per share attributable to common shareholders Income (loss) from continuing operations $ 2.64 $ (2.22 ) $ 0.14 Income (loss) from discontinued operations 0.14 (2.70 ) 0.88 Net income (loss) attributable to common shareholders $ 2.78 $ (4.92 ) $ 1.02 Diluted earnings (loss) per share attributable to common shareholders Income (loss) from continuing operations $ 2.61 $ (2.22 ) $ 0.14 Income (loss) from discontinued operations 0.14 (2.70 ) 0.88 Net income (loss) attributable to common shareholders $ 2.75 $ (4.92 ) $ 1.02 The computation of diluted earnings per share for fiscal 2015 , 2014 and 2013 excludes approximately 0.1 million , 5.7 million and 0.5 million , respectively, of equity awards because the effect would have been anti-dilutive. As the Company incurred a net loss in fiscal 2014, there was no allocation of the undistributed loss to participating securities because the effect would have been anti-dilutive to basic and diluted earnings per share. |
Inventories
Inventories | 12 Months Ended |
Sep. 25, 2015 | |
Inventory, Net [Abstract] | |
Inventories | 9. Inventories Inventories are comprised of the following at the end of each period: September 25, September 26, Raw materials and supplies $ 66.3 $ 57.5 Work in process 124.2 184.7 Finished goods 91.3 64.2 Inventories $ 281.8 $ 306.4 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 25, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 10. Property, Plant and Equipment The gross carrying amount and accumulated depreciation of property, plant and equipment at the end of each period was as follows: September 25, 2015 September 26, 2014 Land $ 49.8 $ 47.3 Buildings 333.7 289.4 Capitalized software 120.2 94.5 Machinery and equipment 1,220.0 1,041.6 Construction in process 146.9 196.2 1,870.6 1,669.0 Less: accumulated depreciation (879.3 ) (782.2 ) Property, plant and equipment, net $ 991.3 $ 886.8 The amounts above include property under capital leases of $14.8 million and $16.9 million at September 25, 2015 and September 26, 2014 , respectively, consisting primarily of buildings. Accumulated amortization of capitalized leased assets was $14.6 million and $15.8 million at the end of fiscal 2015 and 2014 , respectively. Depreciation expense, including amounts related to capitalized leased assets, for continuing operations was $103.9 million , $94.7 million and $88.1 million for fiscal 2015 , 2014 and 2013 , respectively. Long-Lived Asset Impairment Analysis In fiscal 2014, the Company recorded long-lived asset impairment charges related to our CMDS asset group. During the fourth quarter of fiscal 2014, the Company received notification that we lost preferred supplier status with a significant group purchasing organization ("GPO") and that a related-party supply contract was terminated by the Company. The Company determined that these events constituted a triggering event with respect to our CMDS asset group assessed the recoverability of the CMDS asset group. The Company determined that the undiscounted cash flows of this asset group were less than its net book value. This would require the Company to record an impairment charge if the fair value of the CMDS asset group was less than its net book value. The Company determined the fair value of the CMDS asset group using the income approach, a level three measurement technique. For purposes of determining fair value the Company made various assumptions regarding estimated future cash flows, discount rates and other factors in determining the fair values of each reporting unit using the income approach. The Company's projections of future cash flows were then discounted based on a weighted-average cost of capital ("WACC") determined from relevant market comparisons, adjusted upward for specific risks (primarily the uncertainty of achieving projected operating cash flows). A terminal value growth rate was applied to the terminal year cash flows, both of which represent the Company's estimate of stable, sustainable growth. The fair value of the asset group represents the sum of the discounted cash flows from the discrete period and the terminal year cash flows. The Company's projections in the CMDS asset group included long-term net sales and operating income at lower than historical levels. The decrease in net sales and operating income is reflective of the notification of the loss of a significant customer, termination of a supply contract with a related party and increased competition in the marketplace. The Company utilized a WACC of 8.0% , which reflects the lower inherent risk with the decreasing revenue trends. These assumptions resulted in a fair value of the CMDS asset group that was less than its net book value. Therefore, the Company recorded impairment charges of $65.9 million and $52.4 million to the property, plant and equipment and long-lived amortizing intangible assets, respectively, included in the CMDS asset group. The Company announced that it had entered into a definitive agreement to sell its CMDS business, therefore the business is deemed to be held for sale and the financial results of this business are presented as a discontinued operation. The Company reclassified $51.4 million of the impairment charge associated with property, plant and equipment to discontinued operations as certain assets are expected to be retained by the Company based upon the terms of the Company's agreement with Guerbet. The Company reclassified $52.4 million of the impairment charge associated with intangible assets to discontinued operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 25, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 11. Goodwill and Intangible Assets The changes in the carrying amount of goodwill by segment were as follows: September 25, 2015 September 26, 2014 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Specialty Brands $ 3,442.4 $ — $ 2,194.9 $ — Specialty Generics 207.0 — 207.0 — Nuclear Imaging 119.5 (119.5 ) 119.5 (119.5 ) Total $ 3,768.9 $ (119.5 ) $ 2,521.4 $ (119.5 ) During the fiscal year ended September 25, 2015, the gross carrying value of goodwill in the Specialty Brands segment increased by $1,247.5 million , attributable to $792.4 million from the Ikaria Acquisition, $437.2 million from the Therakos Acquisition and $17.9 million resulting from adjustments to the Questcor Acquisition purchase price allocation. Goodwill Impairment Analysis The Company has identified the Specialty Brands, Specialty Generics and the Nuclear Imaging businesses as representing both segments and reporting units. For purposes of assessing impairment and the recoverability of goodwill for each reporting unit the Company makes various assumptions regarding estimated future cash flows, discount rates and other factors in determining the fair values of each reporting unit using the income approach. The Company's projections of future cash flows were then discounted based on a WACC determined from relevant market comparisons, adjusted upward for specific reporting unit risks (primarily the uncertainty of achieving projected operating cash flows). A terminal value growth rate was applied to the terminal year cash flows, both of which represent the Company's estimate of stable, sustainable growth. The fair value of the reporting unit represents the sum of the discounted cash flows from the discrete period and the terminal year cash flows. The fair values of the reporting units were assessed for reasonableness by aggregating the fair values and comparing this to the Company's market capitalization with a control premium. The Company's projections in its Specialty Brands reporting unit include long-term revenue and operating income at levels higher than historical levels, which is primarily associated with revenue growth for Acthar, Inomax and Ofirmev. The projections also reflect the potential impacts from the future loss of exclusivity related to Ofirmev. The Company utilized a WACC of 12.0% . These assumptions resulted in a fair value of the Specialty Brands reporting unit in excess of its net book value. Should the Specialty Brands reporting unit fail to experience growth in the aforementioned products, revise its long-term projections for these products downward or market conditions dictate utilization of higher discount rates, the Specialty Brands reporting unit could be subject to impairment in future periods. The Company's projections in its Specialty Generics and API reporting unit include long-term revenue and operating income at levels lower than historical levels primarily attributable to increased competition. The Company utilized a WACC of 11.0% . These assumptions resulted in a fair value of the Specialty Generics and API reporting unit in excess of its net book value. In fiscal 2014, the Company recorded goodwill impairment charges related to our former Global Medical Imaging reporting unit (which included the CMDS business that is now included within discontinued operations and the remaining Nuclear Imaging reporting unit). The Company recorded an impairment charge related to goodwill in fiscal 2014 of $219.7 million , which eliminated all goodwill balances related to the Global Medical Imaging reporting unit. In fiscal 2015, the Company announced that it had entered into a definitive agreement to sell its CMDS business, therefore the business was deemed to be held for sale and the financial results of this business are presented as a discontinued operation. The Company reclassified $100.2 million of the impairment charge to discontinued operations. The gross carrying amount and accumulated amortization of intangible assets, excluding held for sale intangible assets, at the end of each period were as follows: September 25, 2015 September 26, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 9,896.0 $ 765.8 $ 6,906.0 $ 235.6 Licenses 185.1 99.8 185.1 87.3 Customer relationships 28.1 4.4 33.8 0.6 Trademarks 82.1 6.2 13.0 4.1 Other 6.7 6.7 6.7 5.0 Total $ 10,198.0 $ 882.9 $ 7,144.6 $ 332.6 Non-Amortizable: Trademarks $ 35.0 $ 35.0 In-process research and development 316.2 235.2 Total $ 351.2 $ 270.2 Finite-lived intangible asset amortization expense within continuing operations was $550.3 million , $154.8 million and $27.9 million in fiscal 2015 , 2014 and 2013 , respectively. The estimated aggregate amortization expense on intangible assets owned by the Company, excluding held for sale intangible assets, is expected to be as follows: Fiscal 2016 $ 693.7 Fiscal 2017 691.9 Fiscal 2018 682.9 Fiscal 2019 682.6 Fiscal 2020 682.0 |
Debt
Debt | 12 Months Ended |
Sep. 25, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 12. Debt Debt was comprised of the following at the end of each period: September 25, 2015 September 26, 2014 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: 2.85% term loan due April 2016 $ — $ — $ 0.4 $ — Term loans due March 2021 20.0 — 18.2 — 4.00% term loan due February 2022 1.0 — 1.2 — Capital lease obligation and vendor financing agreements 1.3 — 1.4 — Total current debt 22.3 — 21.2 — Long-term debt: Variable rate receivable securitization 153.0 0.8 150.0 1.0 2.85% term loan due April 2016 — — 2.7 — 3.50% notes due April 2018 300.0 1.7 300.0 2.4 4.88% notes due April 2020 700.0 11.3 — — Term loans due March 2021 1,958.5 44.1 1,978.5 52.4 4.00% term loan due February 2022 6.9 — 9.6 — 9.50% debentures due May 2022 10.4 — 10.4 — 5.75% notes due August 2022 900.0 14.4 900.0 16.4 8.00% debentures due March 2023 4.4 — 8.0 — 4.75% notes due April 2023 600.0 7.1 600.0 7.9 5.625% notes due October 2023 750.0 13.7 — — 5.50% notes due April 2025 700.0 11.9 — — Revolving credit facility 500.0 4.9 — 5.5 Capital lease obligation and vendor financing agreements 1.0 — 0.4 — Total long-term debt 6,584.2 109.9 3,959.6 85.6 Total debt $ 6,606.5 $ 109.9 $ 3,980.8 $ 85.6 In November 2012, Mallinckrodt International Finance S.A. ("MIFSA") was formed as a 100% owned subsidiary of Covidien in connection with the Separation. MIFSA is a holding company established to own, directly or indirectly, substantially all of the operating subsidiaries of the Company, to issue debt securities and to perform treasury operations. At the time of the Separation, MIFSA became a 100% owned subsidiary of the Company. In April 2013, MIFSA issued $300.0 million aggregate principal amount of 3.50% senior unsecured notes due April 2018 and $600.0 million aggregate principal amount of 4.75% senior unsecured notes due April 2023 (collectively, "the Notes"). Mallinckrodt plc has fully and unconditionally guaranteed the Notes on an unsecured and unsubordinated basis. The Notes are subject to an indenture which contains covenants limiting the ability of MIFSA, its restricted subsidiaries (as defined in the Notes) and Mallinckrodt plc, as guarantor, to incur certain liens or enter into sale and lease-back transactions. It also restricts Mallinckrodt plc and MIFSA's ability to merge or consolidate with any other person or sell or convey all or substantially all of their assets to any one person. MIFSA may redeem all of the Notes at any time, and some of the Notes from time to time, at a redemption price equal to the principal amount of the Notes redeemed plus a make-whole premium. MIFSA will pay interest on the Notes semiannually in arrears on April 15 and October 15 of each year, which commenced on October 15, 2013. The net proceeds to MIFSA from the issuance and sale of the Notes was $889.3 million , the majority of which was retained by Covidien per the terms of the Separation and Distribution Agreement. In March 2014, MIFSA and Mallinckrodt CB LLC ("MCB"), each a wholly-owned subsidiary of the Company, entered into senior secured credit facilities consisting of a $1.3 billion term loan facility due 2021 ("the Term Loan") and a $250.0 million revolving credit facility due 2019 ("the Revolver") (collectively, "the Facilities"). The Facilities are fully and unconditionally guaranteed by Mallinckrodt plc, certain of its direct or indirect wholly-owned U.S. subsidiaries and each of its direct or indirect wholly-owned subsidiaries that owns directly or indirectly any such wholly-owned U.S. subsidiary (collectively, "the Guarantors"). The Facilities are secured by a security interest in certain assets of MIFSA, MCB and the Guarantors. The Facilities contain customary affirmative and negative covenants, which include, among other things, restrictions on the Company's ability to declare or pay dividends, create liens, incur additional indebtedness, enter into sale and lease-back transactions, make investments, dispose of assets and merge or consolidate with any other person. In addition, the Revolver contains a financial covenant that may limit the Company's total net debt leverage ratio, which is defined as the ratio of (i) the Company's consolidated debt, less any unrestricted cash and cash equivalents, to (ii) the Company's adjusted consolidated EBITDA, as defined in the credit agreement. The Facilities bear interest at LIBOR plus a margin based on the Company's total net debt leverage ratio, and the Term Loan is subject to a minimum LIBOR level of 0.75% . Interest payment dates are variable based on the LIBOR rate utilized, but the Company generally expects interest to be payable every 90 days . The Term Loan requires quarterly principal amortization payments in an amount equal to 0.25% of the original principal amount of the Term Loan payable on the last day of each calendar quarter, which commenced on June 30, 2014, with the remaining balance payable on the due date, March 19, 2021. The Company incurred an original issue discount of 0.25% , or $3.3 million , associated with the Term Loan. The Revolver contains a $150.0 million letter of credit provision, of which none had been issued as of September 25, 2015 . On August 28, 2015, in connection with the Therakos Acquisition, Mallinckrodt Enterprises LLC and Mallinckrodt plc, two wholly owned subsidiaries of Mallinckrodt plc, MIFSA and MCB, entered into a $250.0 million replacement revolving credit facility (the “2015 Replacement Revolving Credit Facility”), which refinanced and replaced in full the existing revolving credit facility, and an additional $250.0 million incremental revolving credit facility (the “2015 Incremental Revolving Credit Facility” and, together with the 2015 Replacement Revolving Credit Facility, the “2015 Revolving Credit Facility”), such that the 2015 Revolving Credit Facility has an aggregate facility size of $500.0 million . Unused commitments on the 2015 Revolving Credit Facility are subject to an annual commitment fee, which was 0.275% as of September 25, 2015 , and the fee applied to outstanding letters of credit is based on the interest rate applied to borrowings. As of September 25, 2015 , the applicable interest rate on outstanding borrowings under the 2015 Revolving Credit Facility was 2.6% , and outstanding borrowings totaled $500.0 million . In July 2014, Mallinckrodt Securitization S.À.R.L. ("Mallinckrodt Securitization"), a wholly-owned special purpose subsidiary of the Company, entered into a $160.0 million accounts receivable securitization facility that matures in July 2017 ("the Receivable Securitization"). In January 2015, Mallinckrodt Securitization amended the Receivable Securitization with third-party lenders to increase the borrowing limit from $160.0 million to $250.0 million . The terms of the Receivable Securitization, and the determination of interest rates, were largely unchanged. Mallinckrodt Securitization may, from time to time, obtain up to $250.0 million in third-party borrowings secured by certain receivables, which may be increased to $300.0 million upon approval of the third-party lenders, subject to certain conditions. The Receivable Securitization agreements contain customary representations, warranties and affirmative and negative covenants.The borrowings under the Receivable Securitization are to be repaid as the secured receivables are collected. Loans under the Receivable Securitization will bear interest (including facility fees) at a rate equal to one month LIBOR rate plus a margin of 0.80% . Unused commitments on the Receivables Securitization are subject to an annual commitment fee of 0.35% . As of September 25, 2015 , the applicable interest rate on outstanding borrowings under the Receivable Securitization was 0.99% and outstanding borrowings totaled $153.0 million . In August 2014, MIFSA and MCB issued $900.0 million aggregate principal amount of 5.75% senior unsecured notes due August 1, 2022 ("the 2022 Notes”). The 2022 Notes are guaranteed on an unsecured basis by certain of MIFSA's subsidiaries. The 2022 Notes are subject to an indenture that contains certain customary covenants and events of default (subject in certain cases to customary grace and cure periods). The occurrence of an event of default under the indenture could result in the acceleration of the 2022 Notes and could cause a cross-default that could result in the acceleration of other indebtedness of Mallinckrodt plc and its subsidiaries. MIFSA may redeem some or all of the 2022 Notes prior to August 1, 2017 by paying a make-whole premium. MIFSA may redeem some or all of the 2022 Notes on or after August 1, 2017 at specified redemption prices. In addition, prior to August 1, 2017, MIFSA may redeem up to 40% of the aggregate principal amount of the 2022 Notes with the net proceeds of certain equity offerings. The Issuers are obligated to offer to repurchase the 2022 Notes at a price of (a) 101% of their principal amount plus accrued and unpaid interest, if any, as a result of certain change of control events and (b) 100% of their principal amount plus accrued and unpaid interest, if any, in the event of certain asset sales. These obligations are subject to certain qualifications and exceptions. MIFSA pays interest on the 2022 Notes semiannually in arrears on February 1 and August 1 of each year, commencing on February 1, 2015. In August 2014, MIFSA and MCB entered into a $700.0 million senior secured term loan facility ("the New Term Loan”). The New Term Loan is an incremental tranche under the credit agreement governing our existing Term Loan and Revolver, entered into in March 2014, (collectively, with the New Term Loan, represent "the Senior Secured Credit Facilities"). New Term Loan has substantially similar terms to the Term Loan (other than pricing); including the determination of interest rates and quarterly principal amortization payments equal to 0.25% of the original principal amount of the New Term Loan. The quarterly principal payments commenced on December 31, 2014, with the remaining balance payable on the due date of March 19, 2021. Mallinckrodt plc and its subsidiaries (other than MIFSA, MCB and the subsidiaries of MIFSA that guarantee the Facilities) will not guarantee the New Term Loan, and the New Term Loan will not be secured by the assets of such entities. The August 2014 Term Loan bears interest under substantially similar terms of the March 2014 Term Loan, including the use of LIBOR rates with a minimum floor, except that the margin applied to LIBOR is not dependent upon the Company's total net debt leverage ratio. On April 15, 2015, MIFSA and MCB issued $700.0 million aggregate principal amount of 4.875% senior unsecured notes due April 15, 2020 ("the 2020 Notes") and $700.0 million aggregate principal amount of 5.50% senior unsecured notes due April 15, 2025 ("the 2025 Notes", and together with the 2020 Notes, the "Ikaria Notes"). The Ikaria Notes are guaranteed by Mallinckrodt plc and each of its subsidiaries that guarantee the obligations under the Facilities, which following the Ikaria Acquisition includes Compound Holdings II, Inc. and its U.S. subsidiaries. The Ikaria Notes are subject to an indenture that contains certain customary covenants and events of default (subject in certain cases to customary grace and cure periods). The occurrence of an event of default under the indenture could result in the acceleration of the Ikaria Notes and could cause a cross-default that could result in the acceleration of other indebtedness of the Company. The Issuers may redeem some or all of the (i) 2020 Notes prior to April 15, 2017 and (ii) 2025 Notes prior to April 15, 2020, in each case, by paying a “make-whole” premium. The Issuers may redeem some or all of the (i) 2020 Notes on or after April 15, 2017 and (ii) 2025 Notes on or after April 15, 2020, in each case, at specified redemption prices. In addition, prior to (i) April 15, 2017, in the case of the 2020 Notes, and (ii) April 15, 2018, in the case of the 2025 Notes, the Issuers may redeem up to 40% of the aggregate principal amount of the 2020 Notes or 2025 Notes, as the case may be, with the net proceeds of certain equity offerings. The Issuers are obligated to offer to repurchase (a) each series of Notes at a price of 101% of their principal amount plus accrued and unpaid interest, if any, as a result of certain change of control events and (b) the Notes at a price of 100% of their principal amount plus accrued and unpaid interest, if any, in the event of certain net asset sales. These obligations are subject to certain qualifications and exceptions. The Company pays interest on the Ikaria Notes semiannually on April 15 th and October 15 th of each year, commencing on October 15, 2015. On September 24, 2015, in connection with the Therakos Acquisition, MIFSA and MCB issued $750.0 million aggregate principal amount of 5.625% senior unsecured notes due October 2023 (the “2023 Notes”). The Notes are guaranteed by Mallinckrodt plc and each of its subsidiaries under the Facilities, which following the Therakos Acquisition includes TGG Medical Solutions, Inc. and its U.S. subsidiaries. The 2023 Notes are subject to an indenture that contains certain customary covenants and events of default (subject in certain cases to customary grace and cure periods). The occurrence of an event of default under the indenture could result in the acceleration of the 2023 Notes and could cause a cross-default that could result in the acceleration of other indebtedness of the Company. The Issuers may redeem some or all of the 2023 Notes on or after October 15, 2018 at specified redemption prices. In addition, prior to October 15, 2018, the Issuers may redeem up to 40% of the aggregate principal amount of the 2023 Notes with the net proceeds of certain equity offerings. The Issuers may also redeem all, but not less than all, of the Notes at any time at a price of 100% of their principal amount, plus accrued and unpaid interest, if any, in the event the Issuers become obligated to pay additional amounts as a result of changes affecting certain withholding tax laws applicable to payments on the Notes. The Issuers are obligated to offer to repurchase the 2023 Notes (a) at a price of 101% of their principal amount plus accrued and unpaid interest, if any, as a result of certain change of control events and (b) the 2023 Notes at a price of 100% of their principal amount plus accrued and unpaid interest, if any, in the event of certain net asset sales. These obligations are subject to certain qualifications and exceptions. The Company pays interest on the 2023 Notes semiannually on April 15 th and October 15 th of each year, commencing on April 15, 2016. As of September 25, 2015 , the applicable interest rate for the Term Loan and New Term Loan were 3.25% and 3.50% , respectively, and outstanding principal under these agreements totaled approximately $1,978.5 million . The aggregate amounts of debt, including the capital lease obligation, maturing during the next five fiscal years are as follows: Fiscal 2016 $ 22.3 Fiscal 2017 175.0 Fiscal 2018 321.2 Fiscal 2019 521.2 Fiscal 2020 721.2 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 25, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | 13. Retirement Plans Defined Benefit Plans The Company sponsors a number of defined benefit retirement plans covering certain of its U.S. employees and non-U.S. employees. As of September 25, 2015 , U.S. plans represented 70.6% of the Company's total pension plan assets and 73.1% of the Company's projected benefit obligation. The Company generally does not provide postretirement benefits other than retirement plan benefits for its employees; however, certain of the Company's U.S. employees participate in postretirement benefit plans that provide medical benefits. These plans are unfunded. The net periodic benefit cost (credit) for the Company's pension and postretirement benefit plans was as follows: Pension Benefits Postretirement Benefits Fiscal Year Fiscal Year 2015 2014 2013 2015 2014 2013 Service cost $ 4.5 $ 5.1 $ 5.0 $ 0.1 $ 0.1 $ 0.1 Interest cost 17.5 19.6 18.2 1.9 2.1 2.4 Expected return on plan assets (22.6 ) (24.6 ) (29.6 ) — — — Amortization of net actuarial loss 9.4 8.1 12.3 — — 0.3 Amortization of prior service cost (0.6 ) (0.6 ) 0.6 (4.0 ) (9.3 ) (9.1 ) Loss on plan settlements 6.0 3.8 6.8 — — — Net periodic benefit cost (credit) $ 14.2 $ 11.4 $ 13.3 $ (2.0 ) $ (7.1 ) $ (6.3 ) The following table represents the changes in benefit obligations, plan assets and the net amounts recognized on the consolidated balance sheets for pension and postretirement benefit plans at the end of fiscal 2015 and 2014 : Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Change in benefit obligation: Projected benefit obligations at beginning of year $ 538.4 $ 501.7 $ 52.0 $ 53.2 Service cost 4.5 5.1 0.1 0.1 Interest cost 17.5 19.6 1.9 2.1 Employee contributions 0.6 0.6 — — Actuarial (gain) loss (4.5 ) 60.0 2.1 0.5 Benefits and administrative expenses paid (21.1 ) (21.9 ) (3.9 ) (3.9 ) Plan settlements (23.6 ) (17.6 ) — — Net transfer in/(out) 0.6 — — — Currency translation (18.9 ) (9.1 ) — — Projected benefit obligations at end of year $ 493.5 $ 538.4 $ 52.2 $ 52.0 Change in plan assets: Fair value of plan assets at beginning of year $ 473.6 $ 456.0 $ — $ — Actual return on plan assets 12.5 59.7 — — Employer contributions 13.0 4.9 3.9 3.9 Employee contributions 0.6 0.6 — — Benefits and administrative expenses paid (21.1 ) (21.9 ) (3.9 ) (3.9 ) Plan settlements (23.6 ) (17.6 ) — — Currency translation (17.1 ) (8.1 ) — — Fair value of plan assets at end of year $ 437.9 $ 473.6 $ — $ — Funded status at end of year $ (55.6 ) $ (64.8 ) $ (52.2 ) $ (52.0 ) Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Amounts recognized on the consolidated balance sheet: Non-current assets $ 20.1 $ 9.8 $ — $ — Current liabilities (6.6 ) (2.7 ) (4.6 ) (4.8 ) Non-current liabilities (69.1 ) (71.9 ) (47.6 ) (47.2 ) Net amount recognized on the consolidated balance sheet $ (55.6 ) $ (64.8 ) $ (52.2 ) $ (52.0 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ (104.1 ) $ (115.1 ) $ (5.1 ) $ (2.9 ) Prior service credit 5.5 6.9 14.9 18.8 Net amount recognized in accumulated other comprehensive income $ (98.6 ) $ (108.2 ) $ 9.8 $ 15.9 The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost (credit) in fiscal 2016 are as follows: Pension Benefits Postretirement Benefits Amortization of net actuarial loss $ 10.8 $ — Amortization of prior service cost (0.5 ) (2.1 ) The accumulated benefit obligation for all pension plans at the end of fiscal 2015 and 2014 was $489.4 million and $533.6 million , respectively. Additional information related to pension plans is as follows: 2015 2014 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 368.8 $ 394.7 Fair value of plan assets 294.1 321.6 The accumulated benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets do not significantly differ from the amounts in the table above since substantially all of the Company's pension plans are frozen. Actuarial Assumptions Weighted-average assumptions used each fiscal year to determine net periodic benefit cost for the Company's pension plans are as follows: U.S. Plans Non-U.S. Plans 2015 2014 2013 2015 2014 2013 Discount rate 3.8 % 4.2 % 3.5 % 2.5 % 3.5 % 4.0 % Expected return on plan assets 6.0 % 6.5 % 7.9 % 2.9 % 3.1 % 3.5 % Rate of compensation increase — % — % — % 3.2 % 3.5 % 3.7 % Weighted-average assumptions used each fiscal year to determine benefits obligations for the Company's pension plans are as follows: U.S. Plans Non-U.S. Plans 2015 2014 2013 2015 2014 2013 Discount rate 3.9 % 3.9 % 4.3 % 2.5 % 2.5 % 3.7 % Rate of compensation increase — % — % — % 3.6 % 3.4 % 3.5 % For the Company's U.S. plans, the discount rate is based on the market rate for a broad population of Moody's AA-rated corporate bonds over $250.0 million . For the Company's non-U.S. plans, the discount rate is generally determined by reviewing country and region specific government and corporate bond interest rates. In determining the expected return on pension plan assets, the Company considers the relative weighting of plan assets by class and individual asset class performance expectations as provided by external advisors in reaching conclusions on appropriate assumptions. The investment strategy for the pension plans is to obtain a long-term return on plan assets that is consistent with the level of investment risk that is considered appropriate. Investment risks and returns are reviewed regularly against benchmarks to ensure objectives are being met. The weighted-average discount rate used to determine net periodic benefit cost and obligations for the Company's postretirement benefit plans are as follows: 2015 2014 2013 Net periodic benefit cost 3.6 % 4.0 % 3.2 % Benefit obligations 3.9 % 3.7 % 4.0 % Healthcare cost trend assumptions for postretirement benefit plans are as follows: 2015 2014 Healthcare cost trend rate assumed for next fiscal year 7.1 % 7.1 % Rate to which the cost trend rate is assumed to decline 4.5 % 4.5 % Fiscal year the ultimate trend rate is achieved 2029 2029 A one-percentage-point change in assumed healthcare cost trend rates would have the following effects: One-Percentage-Point Increase One-Percentage-Point Decrease Effect on total of service and interest cost $ — $ — Effect on postretirement benefit obligation 0.8 (0.7 ) Plan Assets The Company's U.S. pension plans have a target allocation of 24% equity securities and 76% debt securities. Various asset allocation strategies are in place for non-U.S. pension plans depending upon local law, status, funding level and duration of liabilities, and are 39% equity securities, 55% debt securities and 6% other (primarily cash) for our Japanese pension plan and 10% equity securities, 2% debt securities and 88% other (primarily insurance contracts) for our plan in the Netherlands. Pension plans have the following weighted-average asset allocations at the end of each fiscal year: U.S. Plans Non-U.S. Plans 2015 2014 2015 2014 Equity securities 27 % 28 % 6 % 8 % Debt securities 70 70 1 2 Cash and cash equivalents 3 1 — — Other — 1 93 90 Total 100 % 100 % 100 % 100 % The following tables provide a summary of plan assets held by the Company's pension plans that are measured at fair value on a recurring basis at the end of fiscal 2015 and 2014 : Basis of Fair Value Measurement Fiscal 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities: U.S. small mid cap $ 15.1 $ 15.1 $ — $ — U.S. large cap 46.2 46.2 — — International 31.0 22.7 8.3 — Debt securities: Diversified fixed income funds (1) 198.4 196.9 1.5 — High yield bonds 11.3 11.3 — — Emerging market funds 7.4 7.4 — — Insurance contracts 116.7 — — 116.7 Other 11.8 9.4 2.4 — Total $ 437.9 $ 309.0 $ 12.2 $ 116.7 Basis of Fair Value Measurement Fiscal 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities: U.S. small mid cap $ 16.6 $ 16.6 $ — $ — U.S. large cap 50.2 50.2 — — International 39.8 28.7 11.1 — Debt securities: Diversified fixed income funds (1) 218.7 216.6 2.1 — High yield bonds 13.0 13.0 — — Emerging market funds 9.5 9.5 — — Insurance contracts 119.8 — — 119.8 Other 6.0 2.6 3.4 — Total $ 473.6 $ 337.2 $ 16.6 $ 119.8 (1) Diversified fixed income funds consist of U.S. Treasury bonds, mortgage-backed securities, corporate bonds, asset-backed securities and U.S. agency bonds. Equity securities. Equity securities primarily consist of mutual funds with underlying investments in foreign equity and domestic equity markets. The fair value of these investments is based on net asset value of the units held in the respective fund, which are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1) or through net asset values provided by the fund administrators that can be corroborated by observable market data (level 2). Debt securities. Debt securities are primarily invested in mutual funds with underlying fixed income investments in U.S. government and corporate debt, U.S. dollar denominated foreign government and corporate debt, asset-backed securities, mortgage-backed securities and U.S. agency bonds. The fair value of these investments is based on the net asset value of the units held in the respective fund which are determined by obtaining quoted prices on nationally recognized securities exchanges. Insurance contracts. Insurance contracts held by the Company are issued primarily by Delta Lloyd, a well-known, highly rated insurance company. The fair value of these insurance contracts is based upon the present value of future cash flows under the terms of the contracts and therefore the fair value of these assets has been classified as level 3 within the fair value hierarchy. Significant assumptions used in determining the fair value of these contracts are the amount and timing of future cash flows and counterparty credit risk. The objective of the insurance contracts is to provide the Company with future cash flows that will match the estimated timing and amount of future pension benefit payments. Delta Lloyd's insurance subsidiaries have a Standard & Poor's credit rating of A. Other. Other includes cash and cash equivalents invested in a money market mutual fund, the fair value of which is determined by obtaining quoted prices on nationally recognized securities exchanges (level 1). In addition, other includes real estate funds, the fair value of which is determined using other inputs, such as net asset values provided by the fund administrators that can be corroborated by observable market data (level 2). The following table provides a summary of the changes in the fair value measurements that used significant unobservable inputs (level 3) for fiscal 2015 and 2014 : Insurance Contracts Balance at September 27, 2013 $ 112.0 Net unrealized gains 15.5 Net purchases, sales and issuances (0.6 ) Currency translation (7.1 ) Balance at September 26, 2014 119.8 Net unrealized gains 12.2 Net purchases, sales and issuances (0.1 ) Currency translation (15.2 ) Balance at September 25, 2015 $ 116.7 Mallinckrodt shares are not a direct investment of the Company's pension funds; however, the pension funds may indirectly include Mallinckrodt shares. The aggregate amount of the Mallinckrodt shares are not material relative to the total pension fund assets. Contributions The Company's funding policy is to make contributions in accordance with the laws and customs of the various countries in which the Company operates, as well as to make discretionary voluntary contributions from time to time. In fiscal 2015 and 2014, the Company made $13.0 million and $4.9 million in contributions, respectively, to the Company's pension plans. The Company does not anticipate making material involuntary contributions in fiscal 2016 , but may elect to make voluntary contributions to its defined pension plans or its postretirement benefit plans during fiscal 2016 . Expected Future Benefit Payments Benefit payments expected to be paid, reflecting future expected service as appropriate, are as follows: Pension Benefits Postretirement Benefits Fiscal 2016 $ 40.0 $ 4.6 Fiscal 2017 33.6 4.3 Fiscal 2018 33.0 4.0 Fiscal 2019 32.6 3.8 Fiscal 2020 31.4 3.5 Fiscal 2021 - 2025 143.9 15.6 Defined Contribution Retirement Plans The Company maintains one active tax-qualified 401(k) retirement plan and one active non-qualified deferred compensation plan in the U.S. The 401(k) retirement plan provides for an automatic Company contribution of three percent of an eligible employee's pay, with an additional Company matching contribution generally equal to 50% of each employee's elective contribution to the plan up to six percent of the employee's eligible pay. The deferred compensation plan permits eligible employees to defer a portion of their compensation. Total defined contribution expense related to continuing operations was $23.7 million , $20.5 million and $20.3 million for fiscal 2015 , 2014 and 2013 , respectively. Rabbi Trusts and Other Investments The Company maintains several rabbi trusts, the assets of which are used to pay retirement benefits. The rabbi trust assets are subject to the claims of the Company's creditors in the event of the Company's insolvency. Plan participants are general creditors of the Company with respect to these benefits. The trusts primarily hold life insurance policies and debt and equity securities, the value of which is included in other assets on the consolidated balance sheets. Note 20 provides additional information regarding the debt and equity securities. The carrying value of the 134 life insurance contracts held by these trusts was $57.9 million and $56.3 million at September 25, 2015 and September 26, 2014 , respectively. These contracts had a total death benefit of $147.3 million and $145.7 million at September 25, 2015 and September 26, 2014 , respectively. However, there are outstanding loans against the policies amounting to $40.4 million and $38.2 million at September 25, 2015 and September 26, 2014 , respectively. The Company has insurance contracts which serve as collateral for certain of the Company's non-U.S. pension plan benefits, which totaled $9.8 million and $11.0 million at September 25, 2015 and September 26, 2014 , respectively. These amounts were also included in other assets on the consolidated balance sheets. |
Equity Equity
Equity Equity | 12 Months Ended |
Sep. 25, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | Preferred Shares Mallinckrodt is authorized to issue 500,000,000 preferred shares, par value of $0.20 per share, none of which were issued or outstanding at September 25, 2015 . Rights as to dividends, return of capital, redemption, conversion, voting and otherwise with respect to these shares may be determined by Mallinckrodt's board of directors on or before the time of issuance. In the event of the liquidation of the Company, the holders of any preferred shares then outstanding would, if issued on such terms that they carry a preferential distribution entitlement on liquidation, be entitled to payment to them of the amount for which the preferred shares were subscribed and any unpaid dividends prior to any payment to the ordinary shareholders. Share Repurchases On January 23, 2015, the Company's board of directors authorized a program to purchase up to $300.0 million of the Company's ordinary shares from time to time based on market conditions to allow management to enhance shareholder value. The following table presents the number of shares and dollar amount of repurchases made under the repurchase program by fiscal year and the remaining amount available for repurchase as of September 25, 2015. 2015 Share Repurchase Program Number of Shares Amount Authorized repurchase amount $ 300.0 Repurchases: Fiscal 2015 823,592 75.0 Remaining amount available $ 225.0 The Company also repurchases shares from certain employees in order to satisfy employee tax withholding requirements in connection with the vesting of restricted shares. In addition, the Company repurchases shares to settle certain option exercises. The Company spent $17.2 million and $17.5 million to acquire shares in connection with equity-based awards in fiscal 2015 and 2014, respectively. |
Share Plans
Share Plans | 12 Months Ended |
Sep. 25, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Plans | 15. Share Plans Total share-based compensation cost from continuing operations was $116.1 million , $66.8 million and $16.0 million for fiscal 2015 , 2014 and 2013 , respectively. These amounts are generally included within selling, general and administrative expenses in the consolidated and combined statements of income. In conjunction with the Questcor Acquisition, Questcor equity awards were converted to Mallinckrodt equity awards which resulted in post-combination expense of $90.4 million in fiscal 2015, included in the above total share-based compensation, of which $80.6 million is included within selling, general and administrative expenses and $9.8 million is included within restructuring charges, net. The incremental fair value associated with the conversion of Covidien equity awards into Mallinckrodt equity awards is included in separation costs. The Company recognized a related tax benefit associated with this expense of $41.7 million , $24.1 million and $5.7 million in fiscal 2015 , 2014 and 2013 , respectively. Incentive Equity Awards Converted from Covidien Awards Prior to the Separation, all employee incentive equity awards were granted by Covidien. At the time of Separation, the restricted share units and share options granted to Mallinckrodt employees prior to June 28, 2013 were converted into restricted share units and share options, respectively, of Mallinckrodt, and all of the performance share awards granted to Mallinckrodt employees were converted to restricted share units of Mallinckrodt (collectively, "the Conversion"). Mallinckrodt incentive equity awards issued upon completion of the Conversion and the related weighted-average grant date fair value is presented below: Awards Weighted-Average Grant-Date Fair Value Share options 2,399,822 $ 7.96 Restricted share units 575,213 38.97 Share Options. A summary of the status of the Company's share option awards upon completion of the Conversion on June 28, 2013 is presented below: Shares Options Weighted- Weighted- Aggregate Outstanding at June 28, 2013 2,399,822 $ 35.94 8.0 $ 22.9 Exercisable at June 28, 2013 550,097 30.94 5.9 8.0 The Conversion resulted in a modification of the previously issued share option awards. The Company compared the aggregate fair value of the awards immediately before and immediately after the Separation. The fair value of the awards immediately after the Separation was higher than the awards immediately before, primarily due to the elimination of Covidien's dividend yield assumption and the Company's higher volatility as compared to Covidien. The incremental fair value for vested awards was recognized immediately within separation costs, as the incremental fair value is directly attributable to the Separation, and the incremental fair value for unvested awards will be recognized on a straight-line basis over the remaining vesting period of the applicable awards, also within separation costs. The weighted-average assumptions used in the Black-Scholes pricing model for determining the fair value of the share option awards immediately before and immediately after the Separation were as follows: Pre- Separation Post- Separation Expected share price volatility 26 % 32 % Risk-free interest rate 0.99 % 0.99 % Expected annual dividend per share 1.65 % — % Expected life of options (in years) 3.8 3.8 Fair value per option $ 18.04 $ 16.51 Share option awards 1,745,258 2,399,822 Restricted share units. The Conversion resulted in a modification of the previously issued restricted share unit awards ("RSUs"). The Company compared the aggregate fair value of the awards immediately before and immediately after the Separation. The Conversion did not result in incremental fair value. Performance share units. The Conversion resulted in a modification of the previously issued performance share unit awards ("PSUs"). The Company compared the aggregate fair value of the awards immediately before and immediately after the Separation. The fair value of the awards was higher after the Conversion as the performance factor utilized to convert the award was higher than what had previously been estimated. The incremental fair value was recognized immediately within separation costs for the service period to date and the remaining incremental fair value will be recognized over the remaining vesting period within separation costs. Stock Compensation Plans Prior to the Separation, the Company adopted the 2013 Mallinckrodt Pharmaceuticals Stock and Incentive Plan ("the 2013 Plan"). The 2013 Plan provides for the award of share options, share appreciation rights, annual performance bonuses, long-term performance awards, restricted units, restricted shares, deferred share units, promissory shares and other share-based awards (collectively, "Awards"). The 2013 Plan provided for a maximum of 5.7 million common shares to be issued as Awards, subject to adjustment as provided under the terms of the 2013 Plan. In fiscal 2015, the Company amended the 2013 Plan and adopted the 2015 Mallinckrodt Pharmaceuticals Stock and Incentive Plan ("the 2015 Plan"). The 2015 Plan provides for a maximum of 17.8 million common shares to be issued as Awards (an incremental 12.1 million Awards from the 2013 Plan subject to issuance), subject to adjustment as provided under the terms of the 2015 Plan. As of September 25, 2015 , all equity awards held by the Company's employees were either converted from Covidien equity awards at the Separation, converted from Questcor equity awards, or granted under the 2013 Plan or 2015 Plan. Share options. Share options are granted to purchase the Company's ordinary shares at prices that are equal to the fair market value of the shares on the date the share option is granted. Share options generally vest in equal annual installments over a period of four years and expire ten years after the date of grant. The grant-date fair value of share options, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures are estimated based on historical experience. Share option activity and information is as follows: Share Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at September 27, 2013 2,760,231 $ 37.30 Granted 675,921 52.63 Converted from Questcor Acquisition 1,292,736 25.08 Exercised (878,330 ) 30.96 Expired/Forfeited (323,769 ) 41.83 Outstanding at September 26, 2014 3,526,789 36.84 Granted 635,567 102.20 Exercised (1,132,778 ) 29.79 Expired/Forfeited (243,135 ) 58.00 Outstanding at September 25, 2015 2,786,443 52.76 7.3 $ 63.2 Vested and unvested expected to vest as of September 25, 2015 2,649,351 50.94 7.4 59.0 Exercisable at September 25, 2015 1,054,336 34.20 5.8 36.2 As of September 25, 2015 , there was $24.8 million of total unrecognized compensation cost related to unvested share option awards, which is expected to be recognized over a weighted-average period of 2.7 years . The grant date fair value of share options has been estimated using the Black-Scholes pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. The expected volatility assumption is based on the historical and implied volatility of the Company's peer group with similar business models for periods after the Separation, and on Covidien's peer group with similar business models for periods prior to the Separation. The expected life assumption is based on the contractual and vesting term of the share option, employee exercise patterns and employee post-vesting termination behavior. The expected annual dividend per share is based on the Company's current intentions regarding payment of cash dividends, or Covidien's dividend rate on the date of grant. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The weighted-average assumptions used in the Black-Scholes pricing model for share options granted in fiscal 2013 subsequent to the Separation are included within the discussion of modification expense above. The weighted-average assumptions used in the Black-Scholes pricing model for shares granted in fiscal 2015, along with the weighted-average grant-date fair value, were as follows: 2015 2014 Expected share price volatility 29 % 32 % Risk-free interest rate 1.72 % 1.96 % Expected annual dividend per share — % — % Expected life of options (in years) 5.3 5.5 Fair value per option $ 30.08 $ 17.38 In fiscal 2013, subsequent to the Separation, the total intrinsic value of share options exercised and the related tax benefit was not significant. In fiscal 2015 and 2014, the total intrinsic value of options exercised was $89.5 million and $34.2 million , respectively, and the related tax benefit was $33.1 million and $12.0 million , respectively. Restricted share units. Recipients of RSUs have no voting rights and receive dividend equivalent units which vest upon the vesting of the related shares. RSUs generally vest in equal annual installments over a period of four years . Restrictions on RSUs lapse upon normal retirement, death or disability of the employee. The grant-date fair value of RSUs, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the service period. The fair market value of RSUs granted after the Conversion is determined based on the market value of the Company's shares on the date of grant for periods after the Separation. RSU activity is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested at September 27, 2013 724,269 $ 40.62 Granted 229,281 55.40 Converted from Questcor Acquisition 30,747 70.88 Vested (300,237 ) 34.77 Forfeited (94,838 ) 42.48 Non-vested at September 26, 2014 589,222 47.88 Granted 273,733 105.68 Vested (219,189 ) 49.84 Forfeited (71,272 ) 68.15 Non-vested at September 25, 2015 572,494 73.45 The total fair value of Mallinckrodt restricted share unit awards granted during fiscal 2015 was $28.9 million . The total vest date fair value of Mallinckrodt restricted share units vested during fiscal 2015 was $21.6 million . As of September 25, 2015, there was $30.3 million of total unrecognized compensation cost related to non-vested restricted share units granted. The cost is expected to be recognized over a weighted-average period of 2.8 years . Performance share units. Similar to recipients of RSUs, recipients of PSUs have no voting rights and receive dividend equivalent units. The grant date fair value of PSUs, adjusted for estimated forfeitures, is generally recognized as expense on a straight-line basis from the grant date through the end of the performance period. The vesting of PSUs and related dividend equivalent units is generally based on various performance metrics and relative total shareholder return (total shareholder return for the Company as compared to total shareholder return of the PSU peer group), measured over a three -year performance period. The PSU peer group is comprised of various healthcare companies which attempts to replicate the Company’s mix of businesses. Depending on Mallinckrodt's relative performance during the performance period, a recipient of the award is entitled to receive a number of ordinary shares equal to a percentage, ranging from 0% to 200% , of the award granted. PSU activity is as follows (1) : Shares Weighted-Average Grant-Date Fair Value Non-vested at September 27, 2013 $ — $ — Granted 79,230 63.40 Performance metric adjustment — — Vested — — Forfeited (6,490 ) 62.65 Non-vested at September 26, 2014 72,740 63.46 Granted 77,306 125.84 Performance metric adjustment — — Vested — — Forfeited (19,072 ) 92.05 Non-vested at September 25, 2015 130,974 96.05 (1) The number of shares disclosed within this table are at the target number of 100%. The Company generally uses the Monte Carlo model to estimate the probability of satisfying the performance criteria and the resulting fair value of PSU awards. The assumptions used in the Monte Carlo model for PSUs granted during each year were as follows: 2015 2014 Expected stock price volatility 27 % 28 % Peer group stock price volatility 32 % 33 % Correlation of returns 14 % 17 % The weighted-average grant-date fair value per share of PSUs granted was $ 125.84 in fiscal 2015. As of September 25, 2015, there was $8.9 million of unrecognized compensation cost related to PSUs, which is expected to be recognized over a weighted-average period of 1.8 years . Restricted stock awards. Recipients of restricted stock awards ("RSAs") pertain solely to converted awards from the Questcor Acquisition, which were converted at identical terms to their original award. The converted RSAs maintain voting rights and a non-forfeitable right to receive dividends. RSAs are subject to accelerated vesting as prescribed by the terms of the original award based on a change in control, and substantially all of which will vest over a thirteen month period of time from the date of the Questcor Acquisition. Restrictions on RSAs lapse upon normal retirement, death or disability of the employee. The grant-date fair value of RSAs, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the service period. Shares Weighted-Average Grant-Date Fair Value Non-vested at September 27, 2013 — $ — Granted — — Converted from Questcor Acquisition 1,829,164 70.88 Vested (390,731 ) 70.88 Forfeited (6,402 ) 70.88 Non-vested at September 26, 2014 1,432,031 70.88 Granted — — Vested (1,362,823 ) 70.88 Forfeited (34,646 ) 70.88 Non-vested at September 25, 2015 34,562 70.88 The total vest date fair value of Mallinckrodt restricted share awards vested during fiscal 2015 was $ 127.4 million . As of September 25, 2015, there was $2.3 million of total unrecognized compensation cost related to non-vested restricted share units granted. The cost is expected to be recognized over a weighted-average period of 2.5 years . Employee Stock Purchase Plans The Company adopted the Mallinckrodt Employee Stock Purchase Plan ("ESPP") effective October 1, 2013. Substantially all full-time employees of the Company's U.S. subsidiaries and employees of certain qualified non-U.S. subsidiaries are eligible to participate in this ESPP. Eligible employees authorize payroll deductions to be made for the purchase of shares. The Company matches a portion of the employee contribution by contributing an additional 15% ( 25% in fiscal 2014 and fiscal 2015) of the employee's payroll deduction up to a $25,000 per employee contribution. All shares purchased under the ESPP are purchased on the open market by a designated broker. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Sep. 25, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 16. Accumulated Other Comprehensive Income The components of accumulated other comprehensive income are as follows: Currency Translation Unrecognized Loss on Derivatives Unrecognized Gain (Loss) on Benefit Plans Accumulated Other Comprehensive Income Balance at September 28, 2012 $ 157.1 $ — $ (72.2 ) $ 84.9 Other comprehensive income (loss), net 1.5 (7.3 ) 29.4 23.6 Balance at September 27, 2013 158.6 (7.3 ) (42.8 ) 108.5 Other comprehensive income (loss), net (27.6 ) — (17.1 ) (44.7 ) Reclassification from other comprehensive income (loss) — 0.5 1.4 1.9 Balance at September 26, 2014 131.0 (6.8 ) (58.5 ) 65.7 Other comprehensive loss before reclassification (70.8 ) — (1.1 ) (71.9 ) Reclassification from other comprehensive income (loss) — 0.4 6.7 7.1 Balance at September 25, 2015 $ 60.2 $ (6.4 ) $ (52.9 ) $ 0.9 The following summarizes reclassifications out of accumulated other comprehensive income for the 2015 and 2014 fiscal years: Amount Reclassified from Accumulated Other Comprehensive Income Amount Reclassified from September 25, 2015 September 26, 2014 Line Item in the Condensed Consolidated Statement of Income Amortization of unrealized loss on derivatives $ 0.6 $ 0.6 Interest expense Income tax provision (0.2 ) (0.1 ) Provision for income taxes Net of income taxes 0.4 0.5 Amortization of pension and post-retirement benefit plans: Net actuarial loss 9.4 8.1 (1) Prior service credit (4.6 ) (9.9 ) (1) Plan settlements 6.0 3.8 (1) Total before tax 10.8 2.0 Income tax provision (4.1 ) (0.6 ) Provision for income taxes Net of income taxes 6.7 1.4 Total reclassifications for the period $ 7.1 $ 1.9 (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 13 for additional details. |
Transactions with Former Parent
Transactions with Former Parent Company | 12 Months Ended |
Sep. 25, 2015 | |
Related Party Transactions [Abstract] | |
Transactions with Former Parent Company | 17. Transactions with Former Parent Company Prior to the completion of the Separation on June 28, 2013, the Company was part of Covidien and, as such, transactions between Covidien and the Company were considered related party transactions. As discussed in Note 1, these intercompany transactions are included in the combined financial statements and were considered to be effectively settled for cash at the time the transaction was recorded. The continuing relationship between Covidien and the Company is primarily governed through agreements entered into as part of the Separation, including a Separation Distribution Agreement, a Tax Matters Agreement and a transition services agreement. These agreements were filed with the SEC as Exhibits 2.1, 10.1 and 10.3, respectively, to the Company's Current Report on Form 8-K filed on July 1, 2013. The following discusses the related party transactions and those agreements. Sales and Purchases During fiscal 2015 , 2014 and 2013 , the Company sold inventory to Covidien in the amount of $35.3 million , $46.0 million and $51.2 million , respectively, which is included in net sales of discontinued operations in the consolidated and combined statements of income. The Company also purchases inventories from Covidien. The Company recognized cost of sales within discontinued operations from these inventory purchases of $17.0 million , $28.9 million and $38.4 million during fiscal 2015 , 2014 and 2013 , respectively. Allocated Expenses As discussed in Note 1, the combined financial statements for periods prior to June 28, 2013 include expense allocations for certain functions provided by Covidien, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, employee benefits and incentives, insurance and share-based compensation. These expenses were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of operating expenses, headcount or other measures. The amounts allocated were $39.6 million for fiscal 2013 and were included within selling, general and administrative expenses. Balance Sheet Impacts Subsequent to the Separation, the Company and Covidien maintain an ongoing relationship in which each party may provide services to the other party, including the distribution of goods. As a result of these relationships, the consolidated balance sheet as of September 25, 2015 includes $6.3 million of amounts due to the Company from Covidien, within prepaid expenses and other current assets, and $3.9 million of amounts the Company owes Covidien, included within accrued and other liabilities. Separation and Distribution Agreement On June 28, 2013, the Company entered into a Separation and Distribution Agreement and other agreements with Covidien to effect the Separation and provide a framework for the Company's relationships with Covidien after the Separation. These agreements govern the relationship between Mallinckrodt and Covidien subsequent to the Separation and provide for the assignment to Mallinckrodt of certain of Covidien's assets, liabilities and obligations attributable to periods prior to the Separation. In general, each party to the Separation and Distribution Agreement assumed liability for all pending, threatened and unasserted legal matters related to its own business or its assumed or retained liabilities and will indemnify the other party for any liability to the extent arising out of, or resulting from, such assumed or retained legal matters. The Separation and Distribution Agreement provided for the initial cash capitalization of Mallinckrodt in the amount of approximately $168.0 million at June 28, 2013. The Separation and Distribution Agreement also provided for an adjustment payment to compensate either Mallinckrodt or Covidien, as applicable, to the extent that the aggregate of the Company's cash, indebtedness and specified working capital accounts as of June 28, 2013 ("the Distribution Date"), as well as the capital expenditures made with respect to the Company's business during fiscal 2013 through the Distribution Date, deviated from the target. The target was calculated pursuant to a formula set forth in the Separation and Distribution Agreement, which assumed the Distribution Date would be June 28, 2013, that the Pharmaceuticals business was conducted in the ordinary course through that date and that the Company would have approximately $168.0 million of cash upon completion of the distribution. The Separation and Distribution Agreement also provided that an adjustment payment would only be payable if the amount of the adjustment payment exceeded $20.0 million (in which case the entire amount would be paid). Upon final calculation, no adjustment payment was required by either the Company or Covidien. Tax Matters Agreement In connection with the Separation, Mallinckrodt entered into the Tax Matters Agreement with Covidien that generally will govern Covidien's and Mallinckrodt's respective rights, responsibilities and obligations after the Separation with respect to certain taxes, including ordinary course of business taxes and taxes, if any, incurred as a result of any failure of the distribution of Mallinckrodt shares to qualify as a tax-free distribution for U.S. federal income tax purposes within the meaning of Section 355 of the U.S. Internal Revenue Code, or other applicable tax law, or any failure of certain internal transactions undertaken in anticipation of the distribution to qualify for tax-free or tax-favored treatment under the applicable tax law. The Company expects, with certain exceptions, to be responsible for the payment of all taxes attributable to Mallinckrodt or its subsidiaries for taxable periods beginning on or after September 29, 2012. For periods prior to September 29, 2012, the Company is subject to a $200.0 million liability limitation, net of any benefits, as prescribed by the Tax Matters Agreement. The Company has made $51.6 million of payments, net of benefits, for periods prior to September 29, 2012. To the extent that the Company's liability for such taxes, net of any tax benefits, does not exceed $200.0 million , it may be responsible for additional taxes attributable to periods prior to September 29, 2012, taxes related to the Separation and a percentage of any taxes arising from the Separation failing to qualify for tax-free or tax-favored treatment through no fault of Covidien or the Company. The Tax Matters Agreement also assigns rights and responsibilities for administrative matters, such as the filing of returns, payment of taxes due, retention of records, tax reporting practices and conduct of audits, examinations or similar proceedings. In addition, the Tax Matters Agreement provides for cooperation and information sharing with respect to tax matters. The Tax Matters Agreement also contains restrictions on the Company's ability to take actions without Covidien's consent that could cause the Separation or certain internal transactions undertaken in anticipation of the Separation to fail to qualify as tax-free or tax-favored transactions under applicable tax law. These transactions include, but are not limited to, entering into, approving or allowing any transaction that results in a change in ownership of more than 35.0% of Mallinckrodt's shares; any merger, consolidation, scheme of arrangement, liquidation or partial liquidation, or any approval or allowance of such transaction with respect to certain of the Company's subsidiaries; the cessation or transfer of certain business activities; the sale, issuance or other disposition of any equity interest in certain of the Company's subsidiaries; a sale or other disposition of a substantial portion of the Company's assets or a substantial portion of the assets of certain of the Company's subsidiaries; extraordinary distributions by or to certain of the Company's subsidiaries; or engaging in certain internal transactions. These restrictions will all apply for the two -year period after the Separation and in some cases will apply for periods as long as five years following the Separation. Any taxes imposed on the other party attributable to certain post-distribution actions taken by or in respect of the responsible party or its shareholders that result in failure of the Separation or internal transactions to qualify as tax-free or tax-favored transactions are the responsibility of the party at fault, regardless of whether the actions occur more than two years after the distribution, or whether Covidien consents to such actions. Any actions of the Company or its shareholders that directly give rise to additional taxes are not subject to the $200 million threshold noted previously. Transition Services Agreement Mallinckrodt and Covidien entered into a transition services agreement in connection with the Separation pursuant to which Mallinckrodt and Covidien will provide each other, on an interim and transitional basis, various services including, but not limited to, treasury administration, information technology services, non-exclusive distribution and importation services for our products in certain countries outside the U.S., regulatory, general administrative services and other support services. The agreed-upon charges for such services are generally intended to allow the servicing party to recover all out-of-pocket costs and expenses, and include a predetermined profit margin. Following the Separation, the Company has performed these functions using its own resources or purchased services, certain of which are being provided by Covidien during a transitional period pursuant to a transition services agreement dated June 28, 2013, between Mallinckrodt and Covidien, particularly in relation to areas outside the U.S. The terms and prices on which such services are rendered may not be as favorable as those that were allocated to the Company by Covidien. The Company terminated the transition services agreement during the first quarter of fiscal 2015. |
Guarantees
Guarantees | 12 Months Ended |
Sep. 25, 2015 | |
Guarantees [Abstract] | |
Guarantees | 18. Guarantees In disposing of assets or businesses, the Company has historically provided representations, warranties and indemnities to cover various risks and liabilities, including unknown damage to the assets, environmental risks involved in the sale of real estate, liability to investigate and remediate environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities related to periods prior to disposition. The Company assesses the probability of potential liabilities related to such representations, warranties and indemnities and adjusts potential liabilities as a result of changes in facts and circumstances. The Company believes, given the information currently available, that their ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. In connection with the sale of the Specialty Chemical business (formerly known as Mallinckrodt Baker) in fiscal 2010, the Company agreed to indemnify the purchaser with respect to various matters, including certain environmental, health, safety, tax and other matters. The indemnification obligations relating to certain environmental, health and safety matters have a term of 17 years from the sale, while some of the other indemnification obligations have an indefinite term. The amount of the liability relating to all of these indemnification obligations included in other liabilities on the Company's consolidated balance sheets at September 25, 2015 and September 26, 2014 was $15.7 million and $16.6 million , respectively, of which $13.0 million and $13.9 million , respectively, related to environmental, health and safety matters. The value of the environmental, health and safety indemnity was measured based on the probability-weighted present value of the costs expected to be incurred to address environmental, health and safety claims made under the indemnity. The aggregate fair value of these indemnification obligations did not differ significantly from their aggregate carrying value at September 25, 2015 and September 26, 2014 . As of September 25, 2015 , the maximum future payments the Company could be required to make under these indemnification obligations was $71.0 million . The Company was required to pay $30.0 million into an escrow account as collateral to the purchaser, of which $19.0 million and $19.4 million remained in other assets on the consolidated balance sheets at September 25, 2015 and September 26, 2014 , respectively. The Company has recorded liabilities for known indemnification obligations included as part of environmental liabilities, which are discussed in Note 19. In addition, the Company is liable for product performance; however the Company believes, given the information currently available, that their ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. The Company is required to provide the U.S. Nuclear Regulatory Commission financial assurance demonstrating its ability to fund the decommissioning of its Maryland Heights, Missouri radiopharmaceuticals production facility upon closure, though the Company does not intend to close this facility. The Company has provided this financial assurance in the form of surety bonds totaling $57.2 million . As of September 25, 2015 , the Company had various other letters of credit and guarantee and surety bonds totaling $39.4 million . In April 2015, the Company terminated a letter of credit to guarantee decommissioning costs associated with its Saint Louis, Missouri plant and placed $21.1 million of restricted cash on deposit with a trustee. This restricted cash is included within prepaid expenses and other current assets in the condensed consolidated balance sheet as of September 25, 2015. In addition, the separation and distribution agreement entered into with Covidien at the Separation provides for cross-indemnities principally designed to place financial responsibility of the obligations and liabilities of the Company's business with the Company and financial responsibility for the obligations and liabilities of Covidien's remaining business with Covidien, among other indemnities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 25, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies The Company has purchase obligations related to commitments to purchase certain goods and services. At September 25, 2015 , such obligations were as follows: Fiscal 2016 $ 125.9 Fiscal 2017 51.4 Fiscal 2018 49.8 Fiscal 2019 7.9 Fiscal 2020 — The Company is subject to various legal proceedings and claims, including patent infringement claims, product liability matters, environmental matters, employment disputes, contractual disputes and other commercial disputes, including those described below. The Company believes that these legal proceedings and claims likely will be resolved over an extended period of time. Although it is not feasible to predict the outcome of these matters, the Company believes, unless indicated below, given the information currently available, that their ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. Governmental Proceedings In November 2011 and October 2012, the Company received subpoenas from the U.S. Drug Enforcement Administration requesting production of documents relating to its suspicious order monitoring program. The United States Attorney’s Office (the “USAO”) for the Eastern District of Michigan is investigating the possibility of the Company failing to report suspicious orders of controlled substances during the period 2006-2011 in violation of the Controlled Substances Act and its related regulations. The USAO for the Northern District of New York and Office of Chief of Counsel for the U.S. Drug Enforcement Administration are investigating the possibility of the Company failing to maintain appropriate records and security measures with respect to manufacturing of certain controlled substances at its Hobart facility during the period 2012-2013. While it is not possible at this time to determine with certainty the ultimate outcome of this matter, the Company believes, given the information currently available, that the ultimate resolution, after taking into account amounts already accrued, could have a material adverse effect on its financial condition, results of operations and cash flows. In September 2012, Questcor received a subpoena from the USAO for the Eastern District of Pennsylvania for information relating to its promotional practices. Questcor has also been informed by the USAO for the Eastern District of Pennsylvania that the USAO for the Southern District of New York and the SEC are participating in the investigation to review Questcor's promotional practices and related matters. On March 9, 2015, the Company received a "No Action" letter from the SEC regarding its review of the Company's promotional practices. In June 2014, Questcor received a subpoena and Civil Investigative Demand ("CID") from the Federal Trade Commission ("FTC") seeking documentary materials and information regarding the FTC's investigation into whether Questcor's acquisition of certain rights to develop, market, manufacture, distribute, sell and commercialize Synacthen Depot® from Novartis AG and Novartis Pharma AG (collectively, "Novartis") violates antitrust laws. Subsequently, a small number of states commenced similar investigations focused on whether the transaction violates state antitrust laws. The Company is not aware of any existing or pending litigation in connection with these investigations. While it is not possible at this time to determine with certainty the ultimate outcome of this matter, the Company believes, given the information currently available, that the ultimate resolution, after taking into account amounts already accrued, could have a material adverse effect on its financial condition, results of operations and cash flows. In March 2014, the USAO for the Eastern District of Pennsylvania requested the production of documents related to an investigation of the potential promotion of Therakos’ immunotherapy drug/device system UVADEX/UVAR XTS and UVADEX/CELLEX (collectively, the “Therakos System”), for indications not approved by the FDA, including the treatment of patients with graft versus host disease (“GvHD”) and solid organ transplant patients, including pediatric patients. The investigation also includes Therakos’ efforts to secure FDA approval for additional uses of, and alleged quality issues relating to, UVADEX/UVAR. In August 2015, the USAO for the Eastern District of Pennsylvania sent Therakos a subsequent request for documents related to the investigation and we are in the process of responding to that request. In November 2014, the Company received a CID from the Civil Medicaid Fraud Division of the Texas Attorney General's Office. According to the CID, the Attorney General's office is investigating the possibility of false reporting of information by the Company regarding the prices of certain of its drugs used by Texas Medicaid to establish reimbursement rates for pharmacies that dispensed the Company's drugs to Texas Medicaid recipients. We are in the process of responding to each of the subpoenas and the CIDs and we intend to cooperate fully in each such investigation. Mallinckrodt Inc. v. U.S. Food and Drug Administration and United States of America. The Company filed a Complaint for Declaratory and Injunctive Relief ("the Complaint") in the U.S. District Court for the District of Maryland Greenbelt Division against the FDA and the United States of America in November 2014 for judicial review of what the Company believes is the FDA's inappropriate and unlawful reclassification of the Company's Methylphenidate HCl Extended-Release tablets USP (CII) ("Methylphenidate ER") in the Orange Book: Approved Drug Products with Therapeutic Equivalence ("Orange Book") on November 13, 2014. In its Complaint, the Company has asked the court to: issue an injunction to (a) set aside the FDA's reclassification of the Company's Methylphenidate ER products from freely substitutable at the pharmacy level (class AB) to presumed to be therapeutically inequivalent (class BX) in the Orange Book and (b) prohibit the FDA from reclassifying the Company's Methylphenidate ER products in the future without following applicable legal requirements; and issue a declaratory judgment that the FDA's action reclassifying the Company's Methylphenidate ER products in the Orange Book is unlawful. The Company concurrently filed a motion with the same court requesting an expedited hearing to issue a temporary restraining order ("TRO") directing the FDA to reinstate the Orange Book AB rating for the Company's Methylphenidate ER products on a temporary basis. The court denied the Company's motion for a TRO. In December 2014, the FDA filed a motion to dismiss the Compliant with the district court. The Company filed its opposition to the motion to dismiss in January 2015, and concurrently filed a motion for summary judgment. On July 29, 2015, the court granted the FDA’s motion to dismiss with respect to three of the five counts in the Complaint and granted summary judgment in favor of the FDA with respect to the two remaining counts. The Company has appealed the court’s decision to the U.S. Court of Appeals for the Fourth Circuit. Patent/Antitrust Litigation Tyco Healthcare Group LP, et al. v. Mutual Pharmaceutical Company, Inc. In March 2007, the Company filed a patent infringement suit in the U.S. District Court for the District of New Jersey against Mutual Pharmaceutical Co., Inc., et al. (collectively, "Mutual") after Mutual submitted an Abbreviated New Drug Application ("ANDA") to the FDA seeking to sell a generic version of the Company's 7.5mg RESTORIL™ sleep aid product. Mutual also filed antitrust and unfair competition counterclaims. The patents at issue have since expired or been found invalid. The trial court issued an opinion and order granting the Company's motion for summary judgment regarding Mutual's antitrust and unfair competition counterclaims. Mutual appealed this decision to the U.S. Court of Appeals for the Federal Circuit and the Federal Circuit issued a split decision, affirming the trial court in part and remanding to the trial court certain counterclaims for further proceedings. The Company filed a motion for summary judgment with the U.S. District Court regarding the remanded issues. In May 2015, the trial court issued an opinion granting-in-part and denying-in-part the Company’s motion for summary judgment. '222 and '218 Patent Litigation: Exela Pharma Sciences, LLC. In August 2011, Cadence, a subsidiary of the Company, and Pharmatop, the owner of the two U.S. patents licensed exclusively by Cadence, filed suit in the U.S. District Court for the District of Delaware against Exela Pharma Sciences, LLC, Exela PharmaSci, Inc. and Exela Holdings, Inc. (collectively, "Exela"), alleging that Exela infringed U.S. Patent Nos. 6,028,222 ("the '222 patent") and 6,992,218 ("the '218 patent"), by submitting an ANDA to the FDA seeking to sell a generic version of Ofirmev. The filing of the lawsuit triggered a stay of FDA approval of the Exela ANDA until the earlier of the expiration of a 30-month period, the expiration of the '222 and '218 patents, the entry of a settlement order or consent decree stating that the '222 and '218 patents are invalid or not infringed, a decision in the case concerning infringement or validity that is favorable to Exela, or such shorter or longer period as the court may order. After a bench trial, the court ruled in favor of Cadence in November 2013 and found that Exela's ANDA infringed the '222 and '218 patents. Exela appealed the decision and oral arguments in the appeal occurred in November 2014. In March 2015, the Federal Circuit affirmed the district court decision. '222 and '218 Patent Litigation: InnoPharma Licensing LLC and InnoPharma, Inc. In September 2014, Cadence and Mallinckrodt IP, subsidiaries of the Company, filed suit in the U.S. District Court for the District of Delaware against InnoPharma Licensing LLC and InnoPharma, Inc. (collectively "InnoPharma") following receipt of an August 2014 notice from InnoPharma concerning its submission of a New Drug Application (“NDA”), containing a Paragraph IV patent certification with the FDA for a competing version of Ofirmev. '222 and '218 Patent Litigation: Agila Specialties Private Limited, Inc. and Agila Specialties Inc. (a Mylan Inc. Company), (collectively “Agila”). In December 2014, Cadence and Mallinckrodt IP, subsidiaries of the Company, filed suit in the U.S. District Court for the District of Delaware against Agila following receipt of a November 2014 notice from Agila concerning its submission of a NDA containing a Paragraph IV patent certification with the FDA for a competing version of Ofirmev. The Company intends to vigorously enforce its intellectual property rights relating to Ofirmev to prevent the marketing of infringing generic or competing products prior to the expiration of the Cadence patents. An adverse outcome in either the Exela or InnoPharma matters ultimately could result in the launch of one or more generic versions of Ofirmev before the expiration of the last of the listed patents on June 6, 2021 (or December 6, 2021 if pediatric exclusivity is granted), which could adversely affect the Company's ability to successfully maximize the value of Ofirmev and have an adverse effect on our financial condition, results of operations and cash flows. '222 and '218 Patents: Ex Parte Reexamination. In September 2012, Exela filed with the U.S. Patent and Trademark Office ("USPTO") a Request for Ex Parte Reexamination of the '222 patent and the USPTO granted that request. The reexamination process requires the USPTO to consider the scope and validity of the patent based on substantial new questions of patentability raised by a third-party or the USPTO. Cadence and Pharmatop have filed, with the USPTO, a patent owner's statement commenting on the reexamination request, and thereafter the parties made various submissions. In March 2015, the USPTO issued an ex parte reexamination certificate for the '222 patent listing the claims that resulted from the reexamination proceeding. In addition, in January 2014, an unidentified third-party filed, with the USPTO, a Request for Ex Parte Reexamination of the '218 patent. The reexamination request was granted. In July 2014, the USPTO issued a Non-Final Office Action in the '218 reexamination in which it rejected certain claims. In September 2014, Cadence and Pharmatop filed an Amendment and Response to the Office Action. Cadence and Pharmatop filed a supplemental response in January 2015. In June 2015, the USPTO issued a Final Office Action confirming that effectively all of the original claims were patentable, and Cadence and Pharmatop subsequently filed an Amendment and Response to the Final Office Action. On July 15, 2015, the USPTO confirmed in the reexamination proceeding for the '218 patent that original claims 1-10 and 12-19 as well as amended original dependent claim 11 and six new dependent claims are all patentable. In August 2015, the USPTO issued an ex parte reexamination certificate for the '218 patent listing the claims that resulted from the reexamination proceeding. Because the Company and Pharmatop believe that the scope and validity of the patent claims in the '222 reexamination certificate and the '218 patent reexamination certificate are appropriate and that the USPTO's prior issuances of the patents were correct, the Company, in conjunction with Pharmatop, will vigorously defend these patents. '218 Patent Litigation: Exela Pharma Sciences, LLC. In April 2012, Exela filed suit against David J. Kappos and the USPTO in the U.S. District Court for the Eastern District of Virginia for declaratory judgment seeking a reversal of the USPTO's decision not to act on a petition by Exela to vacate the USPTO's April 2003 order reviving the international application for the '218 patent. The lawsuit followed the USPTO's rejection of Exela's petition to the USPTO filed in November 2011, which sought to vacate the April 2003 order. The USPTO determined that Exela lacked standing to seek such relief. Exela also seeks declaratory judgment that the USPTO's rules and regulations that allow for revival of abandoned, international patent applications under the "unintentional" standard are invalid, and seeks similar relief in connection with one or more counterclaims it has filed in the Delaware litigation. Cadence intervened in this lawsuit and in December 2012, the district court dismissed the case with prejudice as barred by the applicable statute of limitations. Exela appealed the dismissal to the Court of Appeals for the Federal Circuit and oral arguments were held in February 2014. In March 2015, the Federal Circuit affirmed the district court's dismissal of the Exela complaint. '222 and '218 Patent Litigation Settlements. Four other similar cases involving generic and/or competing versions of Ofirmev have previously settled. In each settlement, the defendant was granted the non-exclusive right to market a generic intravenous acetaminophen product in the U.S. under its respective ANDA after December 6, 2020, or earlier under certain circumstances. In connection with those settlements, one settling party was granted the exclusive right of first refusal to negotiate an agreement with Cadence to market an authorized generic of Ofirmev in the U.S. in the event that Cadence elects to launch an authorized generic version of the product. If that settling party elects not to exercise its right of first refusal, Cadence has agreed to grant a similar right of first refusal to another settling party. As part of another settlement, Cadence entered into a supply agreement under which an affiliate of one of the settling parties will develop, manufacture and supply commercial quantities of Ofirmev to the Company if certain regulatory approvals are obtained. Inomax Patents: Inter Partes Review ("IPR") Proceedings. In February 2015 and March 2015, the USPTO issued Notices of Filing Dates Accorded to Petitions for IPR petitions filed by Praxair Distribution, Inc. concerning ten patents covering Inomax. Patent Owner Preliminary responses for all of the IPR petitions were filed in May 2015 and June 2015. On July 29, 2015 the USPTO Patent Trial and Appeal Board ("PTAB") issued rulings denying the institution of four of the five IPR petitions challenging the five patents expiring in 2029. The PTAB also issued a ruling on July 29, 2015 that instituted the IPR proceeding in the fifth of this group of patents and the PTAB is statutorily required to complete the IPR process on that patent within one year. On September 22, 2015 the USPTO PTAB issued rulings that instituted the IPR proceedings in each of the second set of five patents that expire in 2031 and the PTAB is statutorily required to complete the IPR process on these five patents within one year. Inomax Patent Litigation: Praxair Distribution, Inc. and Praxair, Inc. (collectively “Praxair”). In February 2015, INO Therapeutics LLC and Ikaria, Inc., subsidiaries of the Company, filed suit in the U.S. District Court for the District of Delaware against Praxair following receipt of a January 2015 notice from Praxair concerning its submission of an ANDA containing a Paragraph IV patent certification with the FDA for a generic version of Inomax. The Company intends to vigorously enforce its intellectual property rights relating to Inomax to prevent the marketing of infringing generic products prior to the expiration of the patents covering Inomax. An adverse outcome in either the IPRs or the Praxair litigation ultimately could result in the launch of a generic version of Inomax before the expiration of the last of the listed patents on January 6, 2031 (July 6, 2031 including pediatric exclusivity), which could adversely affect the Company's ability to successfully maximize the value of Inomax and have an adverse effect on its financial condition, results of operations and cash flows. Commercial and Securities Litigation Retrophin Litigation. In January 2014, Retrophin, Inc. ("Retrophin") filed a lawsuit against Questcor in the U.S. District Court for the Central District of California, alleging a variety of federal and state antitrust violations based on Questcor's acquisition from Novartis of certain rights to develop, market, manufacture, distribute, sell and commercialize Synacthen. In June 2015, the parties entered into a binding settlement agreement, under the terms of which Retrophin agreed to dismiss the litigation with prejudice and Questcor agreed to make a one-time cash payment to Retrophin in the amount of $15.5 million . Glenridge Litigation. In June 2011, Glenridge Pharmaceuticals LLC (“Glenridge”), filed a lawsuit against Questcor in the Superior Court of California, Santa Clara County, alleging that Questcor had underpaid royalties to Glenridge under a royalty agreement related to net sales of Acthar. In August 2012, Questcor filed a separate lawsuit against the three principals of Glenridge, as well as Glenridge, challenging the enforceability of the royalty agreement. In August 2013, the two lawsuits were consolidated into one case in the Superior Court of California, Santa Clara County. In October 2014, the parties entered into a binding term sheet settling the lawsuit. Under the terms of the settlement, the royalty rate payable by Questcor was reduced, royalties were capped instead of being payable for so long as Acthar was sold and Questcor agreed to pay Glenridge a reduced amount in satisfaction of royalties Questcor had previously accrued but not paid during the course of the lawsuit. In February 2015, the settlement agreement was finalized, with terms consistent with the October 2014 term sheet. Putative Class Action Securities Litigation. In September 2012, a putative class action lawsuit was filed against Questcor and certain of its officers and directors in the U.S. District Court for the Central District of California, captioned John K. Norton v. Questcor Pharmaceuticals, et al. , No. SACvl2-1623 DMG (FMOx). The complaint purports to be brought on behalf of shareholders who purchased Questcor common stock between April 26, 2011 and September 21, 2012. The complaint generally alleges that Questcor and certain of its officers and directors engaged in various acts to artificially inflate the price of Questcor stock and enable insiders to profit through stock sales. The complaint asserts that Questcor and certain of its officers and directors violated sections l0(b) and/or 20(a) of the Securities Exchange Act of 1934, as amended ("the Exchange Act"), by making allegedly false and/or misleading statements concerning the clinical evidence to support the use of Acthar for indications other than infantile spasms, the promotion of the sale and use of Acthar in the treatment of multiple sclerosis and nephrotic syndrome, reimbursement for Acthar from third-party insurers, and Questcor's outlook and potential market growth for Acthar. The complaint seeks damages in an unspecified amount and equitable relief against the defendants. This lawsuit has been consolidated with four subsequently-filed actions asserting similar claims under the caption: In re Questcor Securities Litigation , No. CV 12-01623 DMG (FMOx). In October 2013, the District Court granted in part and denied in part Questcor's motion to dismiss the consolidated amended complaint. In October 2013, Questcor filed an answer to the consolidated amended complaint and fact discovery was concluded in January 2015. In April 2015, the parties executed a long-form settlement agreement, under the terms of which Questcor agreed to pay $38.0 million to resolve the plaintiff claims, inclusive of all fees and costs. Questcor and the individual defendants maintain that the plaintiffs' claims are without merit, and have entered into the settlement to eliminate the uncertainties, burden and expense of further protracted litigation. During fiscal 2015, the Company established a $38.0 million reserve for this settlement, which was subsequently paid to a settlement fund. The court issued its final approval of the settlement on September 18, 2015. Federal Shareholder Derivative Litigation. On October 4, 2012, another alleged shareholder filed a derivative lawsuit in the United States District Court for the Central District of California captioned Gerald Easton v. Don M Bailey, et al. , No. SACV12-01716 DOC (JPRx). The suit asserts claims substantially identical to those asserted in the do Valle derivative action described below against the same defendants. This lawsuit has been consolidated with five subsequently-filed actions asserting similar claims under the caption: In re Questcor Shareholder Derivative Litigation , CV 12- 01716 DMG (FMOx). Following the resolution of the motion to dismiss in the consolidated putative securities class action, the court issued an order staying the federal derivative action until the earlier of: (a) 60 days after the resolution of any motion for summary judgment filed in the putative class action lawsuit, (b) 60 days after the deadline to file a motion for summary judgment in the putative class action lawsuit, if none is filed, or (c) the execution of any settlement agreement (including any partial settlement agreement) to resolve the putative class action lawsuit. In July 2015, the parties stipulated to a dismissal of the derivative case and Questcor agreed to make a one-time cash payment to plaintiffs in the form of a mootness fee. State Shareholder Derivative Litigation. In October 2012, an alleged shareholder filed a derivative lawsuit purportedly on behalf of Questcor against certain of its officers and directors in the Superior Court of the State of California, Orange County, captioned Monika do Valle v. Virgil D. Thompson, et al. , No. 30-2012-00602258-CU-SL-CXC. The complaint asserted claims for breach of fiduciary duty, abuse of control, mismanagement and waste of corporate assets arising from substantially similar allegations as those contained in the putative securities class action described above, as well as from allegations relating to sales of Questcor common stock by the defendants and repurchases of Questcor common stock. The complaint sought an unspecified sum of damages and equitable relief. On October 24, 2012, another alleged shareholder filed a derivative lawsuit purportedly on behalf of Questcor against certain of its officers and directors in the Superior Court of the State of California, Orange County, captioned Jones v. Bailey, et al. , Case No. 30-2012-00608001-CU-MC-CXC. The suit asserted claims substantially identical to those asserted in the do Valle derivative action. In February 2013, the court issued an order staying the state derivative actions until the putative federal securities class action and federal derivative actions are resolved. In May 2014, the court granted plaintiffs' request for dismissal without prejudice of the Jones action. In November 2014, the do Valle matter was voluntarily dismissed. Put Options Securities Action. In March 2013, individual traders of put options filed a securities complaint in the United States District Court for the Central District of California captioned David Taban, et al. v. Questcor Pharmaceuticals, Inc., No. SACV13-0425. The complaint generally asserts claims against Questcor and certain of its officers and directors for violations of the Exchange Act and for state law fraud and fraudulent concealment based on allegations similar to those asserted in the putative securities class action described above. The complaint seeks compensatory and punitive damages of an unspecified amount. Following the resolution of the motion to dismiss in the consolidated putative securities class action, the court issued an order staying this action until the earlier of: (a) sixty ( 60 ) days after the resolution of any motion for summary judgment filed in the putative class action lawsuit, (b) sixty ( 60 ) days after the deadline to file a motion for summary judgment in the putative class action lawsuit, if none is filed, or (c) the execution of any settlement agreement (including any partial settlement agreement) to resolve the putative class action lawsuit. In May 2015, the parties entered into a binding settlement agreement, under the terms of which plaintiffs agreed to dismiss the litigation with prejudice and Questcor agreed to make a one-time cash payment to plaintiffs. Pricing Litigation State of Utah v. Apotex Corp., et al. The Company, along with several other pharmaceutical companies, is a defendant in this matter which was filed in May 2008, and is pending in the Third Judicial Circuit of Salt Lake County, Utah. The State of Utah alleges, generally, that the defendants reported false pricing information in connection with certain drugs that are reimbursable under Utah Medicaid, resulting in overpayment by Utah Medicaid for those drugs, and is seeking monetary damages and attorneys' fees. The Company believes that it has meritorious defenses to these claims and is vigorously defending against them. Environmental Remediation and Litigation Proceedings The Company is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites, including those described below. The ultimate cost of site cleanup and timing of future cash outlays is difficult to predict, given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations and alternative cleanup methods. The Company concluded that, as of September 25, 2015 , it was probable that it would incur remedial costs in the range of $39.8 million to $113.1 million . The Company also concluded that, as of September 25, 2015 , the best estimate within this range was $76.5 million , of which $3.2 million was included in accrued and other current liabilities and the remainder was included in environmental liabilities on the consolidated balance sheet at September 25, 2015 . While it is not possible at this time to determine with certainty the ultimate outcome of these matters, the Company believes, given the information currently available, that the final resolution of all known claims, after taking into account amounts already accrued, will not have a material adverse effect on its financial condition, results of operations and cash flows. Crab Orchard National Wildlife Refuge Superfund Site, near Marion, Illinois. The Company is a successor in interest to International Minerals and Chemicals Corporation ("IMC"). Between 1967 and 1982, IMC leased portions of the Additional and Uncharacterized Sites ("AUS") Operable Unit at the Crab Orchard Superfund Site ("the Site") from the government and manufactured various explosives for use in mining and other operations. In March 2002, the Department of Justice, the U.S. Department of the Interior and the U.S. Environmental Protection Agency ("EPA") (together, "the Government Agencies") issued a special notice letter to General Dynamics Ordnance and Tactical Systems, Inc. ("General Dynamics"), one of the other potentially responsible parties ("PRPs") at the Site, to compel General Dynamics to perform the remedial investigation and feasibility study ("RI/FS") for the AUS Operable Unit. General Dynamics negotiated an Administrative Order on Consent ("AOC") with the Government Agencies to conduct an extensive RI/FS at the Site under the direction of the U.S. Fish and Wildlife Service. General Dynamics asserted in August 2004 that the Company is jointly and severally liable, along with approximately eight other lessees and operators at the AUS Operable Unit, for alleged contamination of soils and groundwater resulting from historic operations, and has threatened to file a contribution claim against the Company and other parties for recovery of its costs incurred in connection with the RI/FS activities being conducted at the AUS Operable Unit. The Company and other PRPs who received demand letters from General Dynamics have explored settlement alternatives, but have not reached settlement to date. General Dynamics has completed the RI and the PRPs have entered into an agreement to enter into non-binding mediation. While it is not possible at this time to determine with certainty the ultimate outcome of this case, the Company believes, given the information currently available, that the final resolution of all known claims, after taking into account amounts already accrued, will not have a material adverse effect on its financial condition, results of operations and cash flows. Mallinckrodt Veterinary, Inc., Millsboro, Delaware. The Company previously operated a plant in Millsboro, Delaware ("the Millsboro Site") that manufactured various animal healthcare products. In 2005, the Delaware Department of Natural Resources and Environmental Control found trichloroethylene ("TCE") in the Millsboro public water supply at levels that exceeded the federal drinking water standards. Further investigation to identify the TCE plume in the ground water indicated that the plume has extended to property owned by a third party near the Millsboro Site. The Company, and another former owner, assumed responsibility for the Millsboro Site cleanup under the Alternative Superfund Program administered by the EPA. The Company and another PRP have entered into two AOCs with the EPA to perform investigations to abate, mitigate or eliminate the release or threat of release of hazardous substances at the Millsboro Site and to conduct an Engineering Evaluation/Cost Analysis to characterize the nature and extent of the contamination. The Company, along with the other party, continues to conduct the studies and prepare remediation plans in accordance with the AOCs. While it is not possible at this time to determine with certainty the ultimate outcome of this matter, the Company believes, given the information currently available, that the ultimate resolution of all known claims, after taking into account amounts already accrued, will not have a material adverse effect on its financial condition, results of operations and cash flows. Coldwater Creek, Saint Louis County, Missouri. The Company is named as a defendant in numerous tort complaints filed in and subsequent to February 2012 with numerous plaintiffs pending in the U.S. District Court for the Eastern District of Missouri. These cases allege personal injury for alleged exposure to radiological substances, including in Coldwater Creek in Missouri, and in the air. Plaintiffs allegedly lived and/or worked in various locations in Saint Louis County, Missouri near |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Sep. 25, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 20. Financial Instruments and Fair Value Measurements Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs used in measuring fair value. The levels within the hierarchy are as follows: Level 1— observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2— significant other observable inputs that are observable either directly or indirectly; and Level 3— significant unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. The following tables provide a summary of the significant assets and liabilities that are measured at fair value on a recurring basis at the end of each period: September 25, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 34.6 $ 24.2 $ 10.4 $ — $ 34.6 $ 24.2 $ 10.4 $ — Liabilities: Deferred compensation liabilities $ 20.0 $ — $ 20.0 $ — Contingent consideration and acquired contingent liabilities 174.6 — — 174.6 Foreign exchange forward and option contracts 3.3 3.3 — — $ 197.9 $ 3.3 $ 20.0 $ 174.6 September 26, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 35.7 $ 22.9 $ 12.8 $ — $ 35.7 $ 22.9 $ 12.8 $ — Liabilities: Deferred compensation liabilities $ 15.0 $ — $ 15.0 $ — Contingent consideration and acquired contingent liabilities 202.8 — — 202.8 Foreign exchange forward and option contracts 0.2 0.2 — — $ 218.0 $ 0.2 $ 15.0 $ 202.8 Debt and equity securities held in rabbi trust. Debt securities held in the rabbi trust primarily consist of U.S. government and agency securities and corporate bonds. When quoted prices are available in an active market, the investments are classified as level 1. When quoted market prices for a security are not available in an active market, they are classified as level 2. Equity securities held in the rabbi trust primarily consist of U.S. common stocks, which are valued using quoted market prices reported on nationally recognized securities exchanges. Foreign exchange forward and option contracts. Foreign currency option and forward contracts are used to economically manage the foreign exchange exposures of operations outside the U.S. Quoted prices are available in an active market; as such, these derivatives are classified as level 1. Deferred compensation liabilities. The Company maintains a non-qualified deferred compensation plan in the U.S., which permits eligible employees of the Company to defer a portion of their compensation. A recordkeeping account is set up for each participant and the participant chooses from a variety of funds for the deemed investment of their accounts. The recordkeeping accounts generally correspond to the funds offered in the Company's U.S. tax-qualified defined contribution retirement plan and the account balance fluctuates with the investment returns on those funds. Goodwill. The Company performs an annual goodwill impairment assessment using an income approach based on the present value of future cash flows. See further discussion in Notes 2 and 11. Contingent consideration and acquired contingent liabilities. In October 2012, the Company recorded contingent consideration of $6.9 million upon the acquisition of CNS Therapeutics. This contingent consideration, which could potentially total a maximum of $9.0 million , is primarily based on whether the FDA approves another concentration of Gablofen on or before December 31, 2016. The fair value of the contingent payments was measured based on the probability-weighted present value of the consideration expected to be transferred using a discount rate of 1.0% . At September 25, 2015, the fair value of this contingent consideration was $7.2 million . In August 2014, the Company recorded acquired contingent liabilities of $195.4 million from the Questcor Acquisition. The contingent liabilities relate to Questcor's contingent obligations associated with their acquisition of an exclusive, perpetual and irrevocable license to develop, market, manufacture, distribute, sell and commercialize Synacthen and Synacthen Depot (collectively "Synacthen") from Novartis AG and Novartis Pharma AG (collectively "Novartis") and their acquisition of BioVectra. The fair value of these contingent consideration obligations at September 25, 2015 were $167.4 million . Under the terms of the license agreement with Novartis, the Company is obligated to make a $25.0 million payment in fiscal 2016, make annual payments of $25.0 million subsequent to fiscal 2016 until such time that the Company obtains FDA approval of Synacthen and make a $25.0 million payment upon obtaining FDA approval of Synacthen. If FDA approval is obtained, the Company will pay an annual royalty to Novartis based on a percentage of net sales of the products in the U.S. market. The Company made its fiscal 2015 required payment of $25.0 million . As of September 25, 2015, the total remaining payments under the license agreement shall not exceed $190.0 million . The terms of the license agreement do allow the Company to terminate the license agreement at our discretion following the fiscal 2018 payment or upon the occurrence of certain events following the fiscal 2016 payment. The Company measured the fair value of the contingent payments based on a probability-weighted present value of the consideration expected to be transferred using a discount rate of 4.7% . Under the terms of the license agreement, the Company was required to maintain deposits equal to the fiscal 2016 annual $25.0 million payment which is included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. Based on the terms of the acquisition agreement with the former shareholders of BioVectra, the Company may be obligated to pay additional cash consideration of $50.0 million CAD based on BioVectra's financial results from January 2013 through a portion of fiscal 2016. During fiscal 2015 and 2014, the Company made $5.0 million CAD payments to the former shareholders and may be obligated for an additional $40.0 million CAD to be paid in fiscal 2016. The Company measured the fair value of the contingent payments based on a probability-weighted present value of the consideration expected to be transferred using a discount rate of 1.3% . Balance at September 26, 2014 $ 202.8 Payments (29.0 ) Accretion expense 7.5 Effect of currency rate change (6.7 ) Balance at September 25, 2015 $ 174.6 Financial Instruments Not Measured at Fair Value The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and the majority of other current assets and liabilities approximate fair value because of their short-term nature. The Company classifies cash on hand and deposits in banks, including commercial paper, money market accounts and other investments it may hold from time to time, with an original maturity to the Company of three months or less, as cash and cash equivalents (level 1). The fair value of restricted cash is equivalent to its carrying value of $66.3 million and $69.8 million as of September 25, 2015 and September 26, 2014 , respectively (level 1), substantially all of which is included in other assets on the consolidated balance sheets. The Company's life insurance contracts are carried at cash surrender value, which is based on the present value of future cash flows under the terms of the contracts (level 3). Significant assumptions used in determining the cash surrender value include the amount and timing of future cash flows, interest rates and mortality charges. The fair value of these contracts approximates the carrying value of $67.7 million and $67.3 million at September 25, 2015 and September 26, 2014 , respectively. These contracts are included in other assets on the consolidated and combined balances sheets. The carrying values of the Company's revolving credit facility and variable rate receivable securitization approximate the fair values due to the short-term nature of these instruments. The carrying values of the 2.85% and 4.00% term loans approximate the fair values of these instruments, as calculated using the discounted exit price for each instrument, and are therefore classified as level 3. Since the quoted market prices for the Company's term loans and 8.00% and 9.50% debentures are not available in an active market, they are classified as level 2 for purposes of developing an estimate of fair value. The Company's 3.50% , 4.75% , 4.875% , 5.50% , 5.625% and 5.75% notes are classified as level 1, as quoted prices are available in an active market for these notes. The following table presents the carrying values and estimated fair values of the Company's long-term debt, excluding capital leases, as of the end of each period: September 25, 2015 September 26, 2014 Carrying Value Fair Value Carrying Value Fair Value Variable rate receivable securitization $ 153.0 $ 153.0 $ 150.0 $ 150.0 2.85% term loan due April 2016 — — 3.1 3.1 3.50% notes due April 2018 300.0 294.3 300.0 290.2 4.875% notes due April 2020 700.0 684.1 — — Term loans due March 2021 1,978.5 1,966.5 1,996.7 1,970.4 4.00% term loan due February 2022 7.9 7.9 10.8 10.8 9.50% debentures due May 2022 10.4 13.0 10.4 14.2 5.75% notes due August 2022 900.0 876.1 900.0 907.3 8.00% debentures due March 2023 4.4 5.3 8.0 10.2 4.75% notes due April 2023 600.0 539.6 600.0 563.8 5.625% notes due October 2023 750.0 705.2 — — 5.50% notes due April 2025 700.0 646.0 — — Revolving credit facility 500.0 500.0 — — Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of accounts receivable. The Company does not require collateral from customers. A portion of the Company's accounts receivable outside the U.S. includes sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries' national economies. The following table shows net sales attributable to distributors that accounted for 10% or more of the Company's total net sales: Fiscal Year 2015 2014 2013 CuraScript, Inc. 31 % 6 % — % McKesson Corporation 18 % 21 % 19 % Cardinal Health, Inc. 14 % 22 % 24 % AmerisourceBergen Corporation 9 % 14 % 11 % The following table shows accounts receivable attributable to distributors that accounted for 10% or more of the Company's gross accounts receivable at the end of each period: September 25, September 26, McKesson Corporation 24 % 27 % CuraScript, Inc. 16 % 15 % Cardinal Health, Inc. 13 % 18 % AmerisourceBergen Corporation 12 % 14 % The following table shows net sales attributable to products that accounted for 10% or more of the Company's total net sales: Fiscal Year 2015 2014 2013 Acthar 31 % 6 % — % Acetaminophen products (API) 6 % 9 % 13 % Methylphenidate ER 4 % 10 % 9 % Molybdenum-99 ("Mo-99") is a key raw material in the Company's Ultra-Technekow DTE technetium generators that are sold by its Nuclear Imaging segment. There are only eight suppliers of this raw material worldwide. The Company has agreements to obtain Mo-99 from three nuclear research reactors and relies predominantly upon two of these reactors for its Mo-99 supply. Accordingly, a disruption in the commercial supply or a significant increase in the cost of this material from these sources could have a material adverse effect on the Company's financial condition, results of operations and cash flows. |
Segment and Geographical Data
Segment and Geographical Data | 12 Months Ended |
Sep. 25, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographical Data | 21. Segment and Geographical Data During the first quarter of fiscal 2015, the Company changed its reportable segments to present the Specialty Brands and Specialty Generics businesses as reportable segments. The Company historically presented the Specialty Brands and Specialty Generics businesses within the Specialty Pharmaceuticals segment. During the fourth quarter of fiscal 2015, the Company announced that it had entered into a definitive agreement to sell its CMDS business to Guerbet, which is expected to be completed during the first quarter of fiscal 2016. The CMDS business is deemed to be held for sale and the financial results of this business are presented as a discontinued operation. The CMDS business has been eliminated from the Global Medical Imaging segment, which has been renamed Nuclear Imaging. Prior year amounts have been recast to conform to current presentation. The three reportable segments are further described below: • Specialty Brands produces and markets branded pharmaceuticals and biopharmaceuticals; • Specialty Generics produces specialty generic pharmaceuticals and API consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients; and • Nuclear Imaging manufactures and markets radiopharmaceuticals (nuclear medicine). Management measures and evaluates the Company's operating segments based on segment net sales and operating income. Management excludes corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. These items include revenues and expenses associated with sales of products to Covidien, intangible asset amortization, net restructuring and related charges, non-restructuring impairments and separation costs. Although these amounts are excluded from segment operating income, as applicable, they are included in reported consolidated and combined operating income and in the following reconciliations. Management manages assets on a total company basis, not by operating segment. The chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, the Company does not report asset information by operating segment. Total assets were approximately $16.4 billion and $12.8 billion at September 25, 2015 and September 26, 2014, respectively. Selected information by business segment is as follows: Fiscal Year 2015 2014 2013 Net sales: Specialty Brands 1,622.8 413.5 206.4 Specialty Generics 1,251.6 1,199.4 1,011.2 Nuclear Imaging 423.8 431.7 437.6 Net sales of operating segments (1) 3,298.2 2,044.6 1,655.2 Other (2) 48.7 37.4 57.1 Net sales 3,346.9 2,082.0 1,712.3 Operating income: Specialty Brands 651.3 (50.6 ) (36.2 ) Specialty Generics 622.0 617.4 347.9 Nuclear Imaging 66.4 (16.7 ) 24.5 Segment operating income 1,339.7 550.1 336.2 Unallocated amounts: Corporate and allocated expenses (3) (286.9 ) (228.1 ) (134.3 ) Intangible asset amortization (550.3 ) (154.8 ) (27.9 ) Restructuring and related charges, net (4) (40.7 ) (81.9 ) (26.3 ) Non-restructuring impairments — (151.6 ) — Separation costs — (9.6 ) (74.2 ) Operating income (loss) 461.8 (75.9 ) 73.5 Depreciation and amortization (5) : Specialty Brands 559.8 152.9 24.9 Specialty Generics 81.9 77.8 72.7 Nuclear Imaging 12.4 18.8 18.5 Depreciation and amortization 654.1 249.5 116.1 (1) Amounts represent sales to external customers. There were no intersegment sales. (2) Represents historical CMDS-related intercompany transactions that represent Mallinckrodt continuing operations under an ongoing supply agreement with the acquirer of the CMDS business. (3) Includes administration expenses and certain compensation, environmental and other costs not charged to the Company's operating segments. (4) Includes restructuring-related accelerated depreciation. (5) Depreciation for certain shared facilities is allocated based on occupancy percentage. Net sales by product family within the Company's segments are as follows: Fiscal Year 2015 2014 2013 Acthar $ 1,037.3 $ 122.9 $ — Ofirmev 263.0 124.4 — Inomax 185.2 — — Exalgo 39.4 76.1 126.1 Other 97.9 90.1 80.3 Specialty Brands 1,622.8 413.5 206.4 Hydrocodone (API) and hydrocodone-containing tablets 167.2 99.4 140.0 Oxycodone (API) and oxycodone-containing tablets 154.6 155.2 139.0 Methylphenidate ER 136.5 209.6 148.3 Other controlled substances 572.2 584.5 443.3 Other 221.1 150.7 140.6 Specialty Generics 1,251.6 1,199.4 1,011.2 Nuclear Imaging 423.8 431.7 437.6 Other (1) 48.7 37.4 57.1 Net sales $ 3,346.9 $ 2,082.0 $ 1,712.3 (1) Represents historical CMDS-related intercompany transactions that represent Mallinckrodt continuing operations under an ongoing supply agreement with the acquirer of the CMDS business. Selected information by geographic area excluding assets held for sale is as follows: Fiscal Year 2015 2014 2013 Net sales (1) : U.S. $ 2,973.2 $ 1,780.9 $ 1,421.6 Europe, Middle East and Africa 236.2 250.3 250.1 Other 137.5 50.8 40.6 $ 3,346.9 $ 2,082.0 $ 1,712.3 Long-lived assets (2) : U.S. $ 905.2 $ 829.1 Europe, Middle East and Africa (3) 45.0 33.9 Other 44.5 41.0 $ 994.7 $ 904.0 (1) Net sales are attributed to regions based on the location of the entity that records the transaction, none of which relate to the country of Ireland. (2) Long-lived assets are primarily composed of property, plant and equipment. (3) Includes long-lived assets located in Ireland of $10.7 million , and $0.4 million at the end of fiscal 2015 and 2014, respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 25, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 22. Selected Quarterly Financial Data (Unaudited) Fiscal 2015 (by quarter) Q1 Q2 Q3 Q4 Net sales $ 768.2 $ 819.0 $ 877.3 $ 882.4 Gross profit 404.8 462.9 503.8 482.1 Income from continuing operations 87.4 75.2 55.6 90.0 Income (loss) from discontinued operations 5.3 23.6 2.4 (14.8 ) Net income 92.7 98.8 58.0 75.2 Basic earnings per share from continuing operations (1) $ 0.75 $ 0.64 $ 0.47 $ 0.77 Diluted earnings per share from continuing operations (1) 0.74 0.64 0.47 0.76 Fiscal 2014 (by quarter) Q1 Q2 Q3 Q4 Net sales $ 429.5 $ 448.7 $ 530.1 $ 673.7 Gross profit 216.2 226.7 254.1 363.2 Income (loss) from continuing operations 38.5 20.2 (29.0 ) (173.5 ) Income (loss) from discontinued operations 7.1 (8.6 ) 4.9 (178.9 ) Net income (loss) 45.6 11.6 (24.1 ) (352.4 ) Basic earnings per share from continuing operations (1) $ 0.67 $ 0.35 $ (0.50 ) $ (2.04 ) Diluted earnings per share from continuing operations (1) 0.66 0.34 (0.50 ) (2.04 ) (1) Quarterly and annual computations are prepared independently. Therefore, the sum of each quarter may not necessarily total the fiscal period amounts noted elsewhere within this Annual Report on Form 10-K. |
Condensed Consolidating and Com
Condensed Consolidating and Combining Financial Statements | 12 Months Ended |
Sep. 25, 2015 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating and Combining Financial Statements | 23. Condensed Consolidating and Combining Financial Statements In November 2012, MIFSA was formed as a 100% -owned subsidiary of Covidien in connection with the Separation. MIFSA is a holding company 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 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 Notes, MIFSA as issuer of the Notes and the operating companies that represent assets of MIFSA. There are no subsidiary guarantees related to the Notes. Set forth below are the condensed consolidating balance sheet as of September 25, 2015 and September 26, 2014 and condensed consolidating statements of comprehensive income and cash flows for the three years ended September 25, 2015 . Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among Mallinckrodt plc, MIFSA and the other subsidiaries. Condensed consolidating and combining 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 September 25, 2015 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.1 $ 152.1 $ 213.7 $ — $ 365.9 Accounts receivable, net — — 548.5 — 548.5 Inventories — — 281.8 — 281.8 Deferred income taxes — — 142.7 — 142.7 Prepaid expenses and other current assets 1.3 0.2 205.8 — 207.3 Current assets held for sale — — 299.9 — 299.9 Intercompany receivable 39.1 128.6 9,699.5 (9,867.2 ) — Total current assets 40.5 280.9 11,391.9 (9,867.2 ) 1,846.1 Property, plant and equipment, net — — 991.3 — 991.3 Goodwill — — 3,649.4 — 3,649.4 Intangible assets, net — — 9,666.3 — 9,666.3 Long-term assets held for sale — — — — — Investment in subsidiaries 14,797.7 18,838.6 10,050.0 (43,686.3 ) — Intercompany loan receivable 174.4 — 2,498.2 (2,672.6 ) — Other assets — 0.1 250.9 — 251.0 Total Assets $ 15,012.6 $ 19,119.6 $ 38,498.0 $ (56,226.1 ) $ 16,404.1 — Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 20.0 $ 2.3 $ — $ 22.3 Accounts payable — 0.2 132.8 — 133.0 Accrued payroll and payroll-related costs 0.1 — 103.6 — 103.7 Accrued royalties — — 29.3 — 29.3 Accrued and other current liabilities 1.8 77.4 489.1 — 568.3 Current liabilities held for sale — — 72.8 — 72.8 Intercompany payable 9,699.5 — 167.7 (9,867.2 ) — Total current liabilities 9,701.4 97.6 997.6 (9,867.2 ) 929.4 Long-term debt — 6,299.4 174.9 — 6,474.3 Pension and postretirement benefits — — 116.7 — 116.7 Environmental liabilities — — 73.3 — 73.3 Deferred income taxes — — 3,132.4 — 3,132.4 Other income tax liabilities — — 121.3 — 121.3 Long-term liabilities held for sale — — — — — Intercompany loans payable — 2,672.6 — (2,672.6 ) — Other liabilities — — 245.5 — 245.5 Total liabilities 9,701.4 9,069.6 4,861.7 (12,539.8 ) 11,092.9 Shareholders' equity 5,311.2 10,050.0 33,636.3 (43,686.3 ) 5,311.2 Total Liabilities and Shareholders' Equity $ 15,012.6 $ 19,119.6 $ 38,498.0 $ (56,226.1 ) $ 16,404.1 MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of September 26, 2014 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.3 $ 18.5 $ 689.0 $ — $ 707.8 Accounts receivable, net — — 476.6 — 476.6 Inventories — — 306.4 — 306.4 Deferred income taxes — — 152.3 — 152.3 Prepaid expenses and other current assets 0.5 10.8 215.8 — 227.1 Current assets held for sale — — 200.8 — 200.8 Intercompany receivable 13.5 — 25.7 (39.2 ) — Total current assets 14.3 29.3 2,066.6 (39.2 ) 2,071.0 Property, plant and equipment, net — — 886.8 — 886.8 Goodwill — — 2,401.9 — 2,401.9 Intangible assets, net — — 7,082.2 — 7,082.2 Long-term assets held for sale — — 111.2 — 111.2 Investment in subsidiaries 586.8 10,645.7 4,945.1 (16,177.6 ) — Intercompany loan receivable 4,385.0 — 1,941.6 (6,326.6 ) — Other assets — — 234.2 — 234.2 Total Assets $ 4,986.1 $ 10,675.0 $ 19,669.6 $ (22,543.4 ) $ 12,787.3 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 18.2 $ 3.0 $ — $ 21.2 Accounts payable 1.2 0.2 109.3 — 110.7 Accrued payroll and payroll-related costs 0.1 — 116.2 — 116.3 Accrued royalties — — 67.7 — 67.7 Accrued and other current liabilities 1.1 50.9 477.9 — 529.9 Current liabilities held for sale — — 59.0 — 59.0 Intercompany payable 25.7 — 13.5 (39.2 ) — Total current liabilities 28.1 69.3 846.6 (39.2 ) 904.8 Long-term debt — 3,693.9 180.1 — 3,874.0 Pension and postretirement benefits — — 116.2 — 116.2 Environmental liabilities — — 59.2 — 59.2 Deferred income taxes — — 2,399.6 — 2,399.6 Other income tax liabilities — — 122.6 — 122.6 Long-term liabilities held for sale — — 9.7 — 9.7 Intercompany loans payable — 1,966.6 4,360.0 (6,326.6 ) — Other liabilities — — 343.2 — 343.2 Total liabilities 28.1 5,729.8 8,437.2 (6,365.8 ) 7,829.3 Shareholders' equity 4,958.0 4,945.2 11,232.4 (16,177.6 ) 4,958.0 Total Liabilities and Shareholders' Equity $ 4,986.1 $ 10,675.0 $ 19,669.6 $ (22,543.4 ) $ 12,787.3 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 25, 2015 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 3,346.9 $ — $ 3,346.9 Cost of sales — — 1,493.3 — 1,493.3 Gross profit — — 1,853.6 — 1,853.6 Selling, general and administrative expenses 116.3 15.7 1,037.8 — 1,169.8 Research and development expenses — — 185.1 — 185.1 Restructuring charges, net 9.8 — 30.6 — 40.4 Gains on divestiture and license — — (3.5 ) — (3.5 ) Operating income (loss) (126.1 ) (15.7 ) 603.6 — 461.8 — Interest expense (96.4 ) (230.2 ) (25.2 ) 96.2 (255.6 ) Interest income — 0.1 97.1 (96.2 ) 1.0 Other income (expense), net 216.3 — (208.2 ) — 8.1 Intercompany interest and fees (14.7 ) — 14.7 — — Equity in net income of subsidiaries 330.6 496.3 250.5 (1,077.4 ) — Income from continuing operations before income taxes 309.7 250.5 732.5 (1,077.4 ) 215.3 Benefit from income taxes (15.9 ) — (77.0 ) — (92.9 ) Income from continuing operations 325.6 250.5 809.5 (1,077.4 ) 308.2 Gain (loss) from discontinued operations, net of income taxes (0.9 ) — 17.4 — 16.5 Net income 324.7 250.5 826.9 (1,077.4 ) 324.7 Other comprehensive loss, net of tax (64.8 ) (64.8 ) (69.9 ) 134.7 (64.8 ) Comprehensive income $ 259.9 $ 185.7 $ 757.0 $ (942.7 ) $ 259.9 MALLINCKRODT PLC CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 26, 2014 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Combined Net sales $ — $ — $ 2,082.0 $ — $ 2,082.0 Cost of sales — — 1,021.8 — 1,021.8 Gross profit — — 1,060.2 — 1,060.2 Selling, general and administrative expenses 37.7 7.3 700.0 — 745.0 Research and development expenses — — 163.5 — 163.5 Restructuring charges, net 35.3 — 46.1 — 81.4 Non-restructuring impairments — — 151.6 — 151.6 Separation costs 2.5 — 7.1 — 9.6 Gains on divestiture and license — — (15.0 ) — (15.0 ) Operating (loss) income (75.5 ) (7.3 ) 6.9 — (75.9 ) Interest expense — (86.3 ) — 3.7 (82.6 ) Interest income — — 5.2 (3.7 ) 1.5 Other income (expense), net 30.9 — (27.8 ) — 3.1 Intercompany interest and fees (9.0 ) — 9.0 — — Equity in net income of subsidiaries (264.8 ) (171.2 ) (300.2 ) 736.2 — Loss from continuing operations before income taxes (318.4 ) (264.8 ) (306.9 ) 736.2 (153.9 ) Benefit from income taxes — — (10.1 ) — (10.1 ) Loss from continuing operations (318.4 ) (264.8 ) (296.8 ) 736.2 (143.8 ) Loss from discontinued operations, net of income taxes (0.9 ) — (174.6 ) — (175.5 ) Net loss (319.3 ) (264.8 ) (471.4 ) 736.2 (319.3 ) Other comprehensive loss, net of tax (42.8 ) (42.8 ) (84.1 ) 126.9 (42.8 ) Comprehensive loss $ (362.1 ) $ (307.6 ) $ (555.5 ) $ 863.1 $ (362.1 ) MALLINCKRODT PLC CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 27, 2013 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Combined Net sales $ — $ — $ 1,712.3 $ — $ 1,712.3 Cost of sales — — 890.0 — 890.0 Gross profit — — 822.3 — 822.3 Selling, general and administrative expenses 5.2 0.1 490.6 — 495.9 Research and development expenses — — 157.9 — 157.9 Restructuring charges, net — — 23.7 — 23.7 Separation costs 3.2 0.6 70.4 — 74.2 Gains on divestiture and license — — (2.9 ) — (2.9 ) Operating income (loss) (8.4 ) (0.7 ) 82.6 — 73.5 Interest expense — (19.6 ) 0.1 — (19.5 ) Interest income — — 0.3 — 0.3 Other income (expense), net 0.2 — 1.2 — 1.4 Intercompany interest and fees (9.5 ) — 9.5 — — Equity in net income of subsidiaries 76.4 96.7 — (173.1 ) — Income from continuing operations before income taxes 58.7 76.4 93.7 (173.1 ) 55.7 Provision for (benefit from) income taxes (0.3 ) — 47.8 — 47.5 Income from continuing operations 59.0 76.4 45.9 (173.1 ) 8.2 Gain (loss) from discontinued operations, net of income taxes (0.2 ) — 50.8 — 50.6 Net income 58.8 76.4 96.7 (173.1 ) 58.8 Other comprehensive income, net of tax 28.4 28.4 35.7 (64.1 ) 28.4 Comprehensive income $ 87.2 $ 104.8 $ 132.4 $ (237.2 ) $ 87.2 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Fiscal year ended September 25, 2015 (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 $ 207.0 $ (148.2 ) $ 837.6 $ — $ 896.4 Cash Flows From Investing Activities: Capital expenditures — — (148.0 ) — (148.0 ) Acquisitions and intangibles, net of cash acquired — — (2,154.7 ) — (2,154.7 ) Intercompany loan investment (149.4 ) — (554.2 ) 703.6 — Investment in subsidiary — (3,014.4 ) — 3,014.4 — Restricted cash — — 3.1 — 3.1 Other — — 3.0 — 3.0 Net cash used in investing activities (149.4 ) (3,014.4 ) (2,850.8 ) 3,718.0 (2,296.6 ) Cash Flows From Financing Activities: Issuance of external debt — 2,890.0 120.0 — 3,010.0 Repayment of external debt and capital leases — (258.3 ) (1,590.1 ) — (1,848.4 ) Excess tax benefit from share-based compensation — — 34.1 — 34.1 Debt financing costs — (39.1 ) (0.8 ) — (39.9 ) Proceeds from exercise of share options 34.4 — — — 34.4 Intercompany loan borrowings — 703.6 — (703.6 ) — Capital contribution — — 3,014.4 (3,014.4 ) — Repurchase of shares (92.2 ) — — — (92.2 ) Other — — (28.1 ) — (28.1 ) Net cash provided by financing activities (57.8 ) 3,296.2 1,549.5 (3,718.0 ) 1,069.9 Effect of currency rate changes on cash — — (11.6 ) — (11.6 ) Net (decrease) increase in cash and cash equivalents (0.2 ) 133.6 (475.3 ) — (341.9 ) Cash and cash equivalents at beginning of period 0.3 18.5 689.0 — 707.8 Cash and cash equivalents at end of period 0.1 152.1 213.7 — 365.9 MALLINCKRODT PLC CONDENSED COMBINING STATEMENT OF CASH FLOWS Fiscal year ended September 26, 2014 (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 $ 18.2 $ (65.0 ) $ 420.2 $ — $ 373.4 Cash Flows From Investing Activities: Capital expenditures — — (127.8 ) — (127.8 ) Acquisitions and intangibles, net of cash acquired — — (2,793.8 ) — (2,793.8 ) Intercompany loan investment (25.0 ) (298.1 ) (915.8 ) 1,238.9 — Subsidiary dividend proceeds — 300.5 — (300.5 ) — Investment in subsidiary — (3,735.5 ) — 3,735.5 — Restricted Cash — — 4.1 — 4.1 Other — — 26.7 — 26.7 Net cash used in investing activities (25.0 ) (3,733.1 ) (3,806.6 ) — 4,673.9 (2,890.8 ) Cash Flows From Financing Activities: Issuance of external debt — 2,893.3 149.9 — 3,043.2 Repayment of external debt and capital leases — (3.3 ) (31.5 ) — (34.8 ) Excess tax benefit from share-based compensation — — 8.9 — 8.9 Debt financing costs — (70.7 ) (1.0 ) — (71.7 ) Proceeds from exercise of share options 25.8 — — — 25.8 Subsidiary dividend payment — — (300.5 ) 300.5 — Intercompany loan borrowings (2.4 ) 940.8 300.5 (1,238.9 ) — Capital contribution — — 3,735.5 (3,735.5 ) — Repurchase of shares (17.5 ) — — — (17.5 ) Other — — — — — Net cash provided by financing activities 5.9 3,760.1 — 3,861.8 (4,673.9 ) 2,953.9 Effect of currency rate changes on cash — — (4.2 ) — (4.2 ) Net increase (decrease) in cash and cash equivalents (0.9 ) (38.0 ) 471.2 — 432.3 Cash and cash equivalents at beginning of period 1.2 56.5 217.8 — 275.5 Cash and cash equivalents at end of period $ 0.3 $ 18.5 $ 689.0 $ — $ 707.8 MALLINCKRODT PLC CONDENSED COMBINING STATEMENT OF CASH FLOWS Fiscal year ended September 27, 2013 (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 $ (1.8 ) $ (8.4 ) $ 146.1 $ — $ 135.9 Cash Flows From Investing Activities: Capital expenditures — — (147.9 ) — (147.9 ) Acquisitions and intangibles, net of cash acquired — — (88.1 ) — (88.1 ) Intercompany loan investment — (2.4 ) (409.6 ) 412.0 — Investment in subsidiary — (68.0 ) — 68.0 — Other — — 1.3 — 1.3 Net cash used in investing activities — (70.4 ) (644.3 ) — 480.0 (234.7 ) Cash Flows From Financing Activities: Issuance of external debt — 898.1 — — 898.1 Repayment of external debt and capital leases — — (1.3 ) — (1.3 ) Excess tax benefit from share-based compensation — — 3.4 — 3.4 Debt financing costs — (12.0 ) — — (12.0 ) Net transfers to parent — (1,160.4 ) 644.5 — (515.9 ) Proceeds from exercise of share options 0.6 — — — 0.6 Intercompany loan borrowings 2.4 409.6 — (412.0 ) — Capital contribution — — 68.0 (68.0 ) — Other — — 0.1 — 0.1 Net cash provided by financing activities 3.0 135.3 — 714.7 (480.0 ) 373.0 Effect of currency rate changes on cash — — 1.3 — 1.3 Net increase in cash and cash equivalents 1.2 56.5 217.8 — 275.5 Cash and cash equivalents at beginning of period — — — — — Cash and cash equivalents at end of period $ 1.2 $ 56.5 $ 217.8 $ — $ 275.5 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 25, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent Events Share Repurchase & Debt Reduction Authorization On November 19, 2015, the Company's board of directors authorized an increase to our existing $300.0 million share repurchase program previously announced in January 2015. The authorization increased our existing repurchase program by $500.0 million from $300.0 million to $800.0 million . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Sep. 25, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Financial Statement Schedules. The financial statement schedule is included below. All other schedules have been omitted because they are not applicable, not required or the information is included in the financial statements or notes thereto. Schedule II - Valuation and Qualifying Accounts (in millions) Description Balance at Beginning of Period Charged to Income Additions and Other Deductions Balance at End of Period Allowance for doubtful accounts: Fiscal year ended September 25, 2015 $ 3.7 $ 1.9 $ — $ (0.9 ) $ 4.7 Fiscal year ended September 26, 2014 3.6 0.4 — (0.3 ) 3.7 Fiscal year ended September 27, 2013 9.4 1.1 — (6.9 ) 3.6 Sales reserve accounts: Fiscal year ended September 25, 2015 $ 404.9 $ 2,187.8 $ 1.3 $ (2,194.7 ) $ 399.3 Fiscal year ended September 26, 2014 287.7 1,720.9 30.6 (1,634.3 ) 404.9 Fiscal year ended September 27, 2013 235.0 1,171.9 — (1,119.2 ) 287.7 Tax valuation allowance: Fiscal year ended September 25, 2015 $ 76.9 $ 155.4 $ 0.2 $ 0.5 $ 233.0 Fiscal year ended September 26, 2014 28.3 33.9 14.7 — 76.9 Fiscal year ended September 27, 2013 15.3 10.0 3.0 — 28.3 |
Background and Basis of Prese35
Background and Basis of Presentation (Policies) | 12 Months Ended |
Sep. 25, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The consolidated and combined financial statements have been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"). |
Use of Estimates | The preparation of the consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ from those estimates. |
Consolidation | The consolidated and combined financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which they own or control more than fifty percent of the voting shares, or have the ability to control through similar rights. The results of entities disposed of are included in the consolidated and combined financial statements up to the date of disposal and, where appropriate, these operations have been reflected as discontinued operations. Divestitures of product lines not representing businesses have been reflected in operating income. All intercompany balances and transactions have been eliminated in consolidation and, in the opinion of management, all normal recurring adjustments necessary for a fair presentation have been included in the results reported. |
Fiscal Period | Fiscal Year The Company reports its results based on a "52-53 week" year ending on the last Friday of September. Fiscal 2015 , 2014 and 2013 each consisted of 52 weeks. Unless otherwise indicated, fiscal 2015 , 2014 and 2013 refer to the Company's fiscal years ended September 25, 2015 , September 26, 2014 and September 27, 2013 , respectively. Fiscal 2016 will consist of 53 weeks and will end on September 30, 2016. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 25, 2015 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue for product sales when title and risk of loss have transferred from the Company to the buyer, which may be upon shipment, delivery to the customer site, consumption of the product by the customer, or over the period in which the customer has access to the product and any related services, based on contract terms or legal requirements in non-U.S. jurisdictions. The Company sells products through independent channels, including directly to retail pharmacies and end user customers and through distributors who resell the products to retail pharmacies, institutions and end user customers. Certain products are sold and distributed directly to hospitals. Chargebacks and rebates represent credits that are provided to certain distributors and customers for either the difference between the Company's contracted price with a customer and the distributor's invoice price paid to the Company or for contractually agreed volume price discounts. When the Company recognizes net sales, it simultaneously records an adjustment to revenue for estimated chargebacks, rebates, product returns and other sales deductions. These provisions are estimated based upon historical experience, estimated future trends, estimated customer inventory levels, current contracted sales terms with customers, level of utilization of the Company's products and other competitive factors. The Company adjusts these reserves to reflect differences between estimated activity and actual experience. Such adjustments impact the amount of net sales recognized by the Company in the period of adjustment. Taxes collected from customers relating to product sales and remitted to governmental authorities are accounted for on a net basis. Accordingly, such taxes are excluded from both net sales and expenses. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping costs, which are costs incurred to physically move product from the Company's premises to the customer's premises, are classified as selling, general and administrative expenses. Handling costs, which are costs incurred to store, move and prepare product for shipment, are classified as cost of sales. |
Research and Development | Research and Development Internal research and development costs are expensed as incurred. Research and development expenses include salary and benefits, allocated overhead and occupancy costs, clinical trial and related clinical manufacturing costs, contract services and other costs. Upfront and milestone payments made to third parties under license arrangements are expensed as incurred up to the point of regulatory approval of the product. Milestone payments made to third parties upon or subsequent to regulatory approval are capitalized as an intangible asset and amortized to cost of sales over the estimated useful life of the related product. |
Currency Translation | Currency Translation For the Company's non-U.S. subsidiaries that transact in a functional currency other than U.S. dollars, assets and liabilities are translated into U.S. dollars using fiscal year-end exchange rates. Revenues and expenses are translated at the average exchange rates in effect during the related month. The net effect of these translation adjustments is shown in the consolidated and combined financial statements as a component of accumulated other comprehensive income. For subsidiaries operating in highly inflationary environments or where the functional currency is different from the local currency, non-monetary assets and liabilities are translated at the rate of exchange in effect on the date the assets and liabilities were acquired or assumed, while monetary assets and liabilities are translated at fiscal year-end exchange rates. Translation adjustments of these subsidiaries are included in net income. Gains and losses resulting from foreign currency transactions are included in net income. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company classifies cash on hand and deposits in banks, including commercial paper, money market accounts and other investments it may hold from time to time, with an original maturity to the Company of three months or less, as cash and cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects an estimate of losses inherent in the Company's accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written off when management determines they are uncollectible. Trade accounts receivable are also presented net of reserves related to chargebacks and non-branded rebates payable to customers for whom we have trade accounts receivable and the right of offset exists. |
Inventories | Inventories Inventories are recorded at the lower of cost or market value, primarily using the first-in, first-out convention. The Company reduces the carrying value of inventories for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Major renewals and improvements are capitalized, while routine maintenance and repairs are expensed as incurred. Depreciation for property, plant and equipment assets, other than land and construction in process, is generally based upon the following estimated useful lives, using the straight-line method: Buildings 10 to 45 years Leasehold improvements 1 to 20 years Capitalized software 1 to 10 years Machinery and equipment 1 to 20 years The Company capitalizes certain computer software and development costs incurred in connection with developing or obtaining software for internal use. Upon retirement or other disposal of property, plant and equipment, the cost and related amount of accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds is included in net income. The Company assesses the recoverability of assets or asset groups using undiscounted cash flows whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. If an asset or asset group is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value of the asset or asset group and its fair value. |
Acquisitions | Acquisitions Amounts paid for acquisitions are allocated to the tangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The Company then allocates the purchase price in excess of net tangible assets acquired to identifiable intangible assets, including purchased research and development. The fair value of identifiable intangible assets is based on detailed valuations. The Company allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill. The Company's purchased research and development represents the estimated fair value as of the acquisition date of in-process projects that have not reached technological feasibility. The primary basis for determining technological feasibility of these projects is obtaining regulatory approval. The fair value of in-process research and development ("IPR&D") is determined using the discounted cash flow method. In determining the fair value of IPR&D, the Company considers, among other factors, appraisals, the stage of completion of the projects, the technological feasibility of the projects, whether the projects have an alternative future use and the estimated residual cash flows that could be generated from the various projects and technologies over their respective projected economic lives. The discount rate used includes a rate of return which accounts for the time value of money, as well as risk factors that reflect the economic risk that the cash flows projected may not be realized. The fair value attributable to IPR&D projects at the time of acquisition is capitalized as an indefinite-lived intangible asset and tested for impairment until the project is completed or abandoned. Upon completion of the project, the indefinite-lived intangible asset is then accounted for as a finite-lived intangible asset and amortized on a straight-line basis over its estimated useful life. If the project is abandoned, the indefinite-lived intangible asset is charged to expense. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to assets and liabilities assumed in a business combination. The Company tests goodwill for impairment during the fourth quarter of each fiscal year, or more frequently if impairment indicators arise. The impairment test is comprised of a two-step approach. The first step requires a comparison of the carrying value of the reporting units to the fair value of these units. The Company estimates the fair value of its reporting units through internal analyses and valuation, utilizing an income approach (a level three measurement technique) based on the present value of future cash flows. If the carrying value of a reporting unit exceeds its fair value, the Company will perform the second step of the goodwill impairment test to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of a reporting unit's goodwill with its carrying value. The implied fair value of goodwill is determined in the same manner that the amount of goodwill recognized in a business combination is determined, with the Company allocating the fair value of a reporting unit to all of the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. Intangible assets acquired in a business combination are recorded at fair value, while intangible assets acquired in other transactions are recorded at cost. Intangible assets with finite useful lives are subsequently amortized generally using the straight-line method over the following estimated useful lives of the assets, except for customer relationships which are amortized over the estimated pattern of benefit from these relationships: Completed technology 5 to 25 years License agreements 8 to 30 years Trademarks 13 to 30 years Customer relationships 12 years Amortization expense related to completed technology and certain other intangible assets is included in cost of sales, while amortization expense related to intangible assets that contribute to the Company's ability to sell, market and distribute products is included in selling, general and administrative expenses. When a triggering event occurs, we evaluate potential impairment of finite-lived intangible assets by first comparing undiscounted cash flows associated with the asset, or the asset group they are part of, to its carrying value. If the carrying value is greater than the undiscounted cash flows, the amount of potential impairment is measured by comparing the fair value of the assets, or the asset group they are part of, with their carrying value. The fair value of the intangible asset, or the asset group they are part of, is estimated using an income approach. If the fair value is less than the carrying value of the intangible asset, or the asset group they are part of, the amount recognized for impairment is equal to the difference between the carrying value of the asset and the fair value of the asset. The Company assesses the remaining useful life and the recoverability of finite-lived intangible assets whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. The Company annually tests the indefinite-lived intangible assets for impairment by comparing the fair value of the assets, estimated using an income approach, with their carrying value and records an impairment when the carrying value exceeds the fair value. |
Contingencies | Contingencies The Company is subject to various patent, product liability, government investigations, environmental liability and other legal proceedings in the ordinary course of business. The Company records accruals for contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. The Company discounts environmental liabilities using a risk-free rate of return when the obligation is fixed or reasonably determinable. The impact of the discount in the consolidated balance sheets was not material in any period presented. Legal fees, other than those pertaining to environmental and asbestos matters, are expensed as incurred. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. Assets and liabilities are not netted for financial statement presentation. |
Share-Based Compensation | Share-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments based on the grant-date fair value of those awards. That cost is recognized over the period during which an employee is required to provide service in exchange for the award, the requisite service period (generally the vesting period). For more information about our share-based awards, refer to Note 15. |
Income Taxes | Income Taxes Income taxes for periods prior to the Separation were calculated on a separate tax return basis (inclusive of certain loss benefits), although the Company's operations had historically been included in Covidien's U.S. federal and state tax returns or the tax returns of non-U.S. jurisdictions. Accordingly, the income taxes presented for periods prior to June 28, 2013 do not necessarily reflect the results that would have occurred as an independent, publicly-traded company. With the exception of certain non-U.S. entities, the Company did not maintain taxes payable to or from Covidien and the Company was deemed to settle the annual current tax balances immediately with the legal tax-paying entities in the respective jurisdictions. These settlements were reflected as changes in parent company investment. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been reflected in the consolidated and combined financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax bases of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to reduce net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities are also recorded for deferred tax obligations related to installment sale arrangements. The deferral of tax payments to the IRS are subject to interest, which is accrued and included within interest expense. The Company determines whether it is more likely than not that a tax position will be sustained upon examination. The tax benefit of any tax position that meets the more-likely-than-not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the uncertainty. To the extent a full benefit is not expected to be realized on the uncertain tax position, an income tax liability is established. Interest and penalties on income tax obligations, associated with uncertain tax positions, are included in the provision for income taxes. The calculation of the Company's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across the Company's global operations. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from current estimates of the tax liabilities. If the Company's estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities may result in income tax benefits being recognized in the period when it is determined that the liabilities are no longer necessary. A significant portion of these potential tax liabilities are recorded in other income tax liabilities on the consolidated balance sheets as payment is not expected within one year. |
Parent Company Investment | Parent Company Investment Parent company investment in periods prior to the Separation represents Covidien's historical investment in the Company, the Company's accumulated net earnings after income taxes for periods prior to that date, and the net effect of transactions with and allocations from Covidien. |
Earnings (Loss) per Share (Poli
Earnings (Loss) per Share (Policies) | 12 Months Ended |
Sep. 25, 2015 | |
Earnings (Loss) per Share [Abstract] | |
Earnings (Loss) Per Share Policy | In periods prior to fiscal 2014, basic earnings (loss) per share was computed by dividing net income by the number of weighted-average shares outstanding during the period. Diluted earnings (loss) per share was computed using the weighted-average shares outstanding and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares represent the incremental ordinary shares issuable for restricted share units and share option exercises. The Company calculated the dilutive effect of outstanding restricted share units and share options on earnings (loss) per share by application of the treasury stock method. The computations of basic and diluted earnings (loss) per share assumes that the number of shares outstanding for periods prior to June 28, 2013 was equal to the number of ordinary shares of Mallinckrodt outstanding on June 28, 2013, immediately following the distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. The dilutive effect of the Company's share-based awards that were issued as a result of the conversion of Covidien share-based awards with the Separation, the conversion of Questcor share-based awards with the Questcor Acquisition, the initial equity awards granted to certain of the Company's executives on July 1, 2013 and any other Company grants made since the Separation have been included in the computation of diluted earnings per share for fiscal 2015, 2014 and 2013, calculated under the methodologies outlined above, weighted appropriately for the portion of the period they were outstanding. |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives for Property, Plant and Equipment | Depreciation for property, plant and equipment assets, other than land and construction in process, is generally based upon the following estimated useful lives, using the straight-line method: Buildings 10 to 45 years Leasehold improvements 1 to 20 years Capitalized software 1 to 10 years Machinery and equipment 1 to 20 years |
Schedule of Useful Lives for Finite Lived Intangible Assets | Intangible assets with finite useful lives are subsequently amortized generally using the straight-line method over the following estimated useful lives of the assets, except for customer relationships which are amortized over the estimated pattern of benefit from these relationships: Completed technology 5 to 25 years License agreements 8 to 30 years Trademarks 13 to 30 years Customer relationships 12 years |
Discontinued Operations and D39
Discontinued Operations and Divestitures (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Discontinued Operations [Abstract] | |
Schedule of Income (Loss) from Discontinued Operations | The following table summarizes the financial results of the CMDS discontinued operations for the fiscal years ended September 25, 2015, September 26, 2014 and September 27, 2013 as presented in the consolidated statements of operations and comprehensive income: Fiscal Year Major line items constituting income (loss) from discontinued operations 2015 2014 2013 Net sales $ 413.8 $ 495.8 $ 549.3 Cost of sales 306.4 352.9 346.7 Selling, general and administrative 97.5 97.1 114.0 Restructuring charges, net 0.3 47.2 9.5 Non-restructuring impairment charges — 204.0 — Other 4.7 4.1 8.4 Income (loss) from discontinued operations 4.9 (209.5 ) 70.7 Income tax expense (benefit) 10.8 (34.7 ) 21.1 Income (loss) from discontinued operations net of tax $ (5.9 ) $ (174.8 ) $ 49.6 |
Schedule of Assets and Liabilities Held-For-Sale | The following table summarizes the assets and liabilities of the CMDS business that are classified as held for sale on the consolidated balance sheets as of September 25, 2015 and September 26, 2014: September 25, 2015 September 26, 2014 Carrying amounts of major classes of assets included as part of discontinued operations Accounts receivable $ 68.5 $ 68.9 Inventories 86.3 90.2 Property, plant and equipment, net 60.3 62.4 Intangible assets, net 27.7 30.0 Other current and non-current assets 57.1 60.5 Total assets classified as held for sale in the balance sheet $ 299.9 $ 312.0 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable $ 22.0 $ 18.0 Other current and non-current liabilities 50.8 50.7 Total liabilities classified as held for sale in the balance sheet $ 72.8 $ 68.7 |
Schedule of Significant Cash and Non-Cash Transactions | The following table summarizes significant cash and non-cash transactions of the CMDS business that are included within the consolidated statements of cash flows for the fiscal years ended September 25, 2015, September 26, 2014 and September 27, 2013: Fiscal Year 2015 2014 2013 Depreciation $ 15.5 $ 18.9 $ 16.0 Amortization 2.3 7.5 7.5 Capital expenditures 9.5 12.3 17.4 Non-cash impairment charges — 204.0 — |
Acquisitions and License Agre40
Acquisitions and License Agreements (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Identifiable Assets Acquired and Liabilities Assumed | The following amounts represent the preliminary allocation of the fair value of the identifiable assets acquired and liabilities assumed for the Therakos Acquisition and Ikaria Acquisition and final allocation of the fair value of the identifiable assets acquired and liabilities assumed for the Cadence Acquisition, Questcor Acquisition and CNS Therapeutics acquisition: Therakos Ikaria Questcor Cadence CNS Therapeutics Cash $ 41.3 $ 77.3 $ 445.1 $ 43.2 $ 3.6 Inventory 23.5 26.3 67.9 21.0 — Intangible assets 1,170.0 1,971.0 5,601.1 1,300.0 91.9 Goodwill (non-tax deductible) 437.2 792.4 1,789.4 318.1 24.5 Other assets, current and non-current (1) 42.1 172.9 274.3 18.0 9.7 Total assets acquired 1,714.1 3,039.9 8,177.8 1,700.3 129.7 Current liabilities 24.7 32.6 168.9 48.8 4.0 Unpaid purchase consideration (current) — — 128.8 — — Other liabilities (non-current) 0.6 9.1 186.8 — — Deferred tax liabilities, net (non-current) 324.3 623.6 1,906.8 292.3 27.1 Contingent consideration (non-current) — — — — 6.9 Total debt 344.8 1,121.0 — 30.0 — Total liabilities assumed 694.4 1,786.3 2,391.3 371.1 38.0 Net assets acquired $ 1,019.7 $ 1,253.6 $ 5,786.5 $ 1,329.2 $ 91.7 (1) This amount includes $22.0 million , $73.8 million , $87.3 million , $14.7 million and $3.3 million of accounts receivable for the Therakos Acquisition, Ikaria Acquisition, Questcor Acquisition, Cadence Acquisition, and CNS Therapeutics, respectively, which is also the gross contractual value. |
Schedule of Reconciliation of Total Consideration | The following reconciles the total consideration to net assets acquired: Therakos Ikaria Questcor Cadence CNS Therapeutics Total consideration, net of cash $ 978.4 $ 1,176.3 $ 5,470.2 $ 1,286.0 $ 95.0 Plus: cash assumed in acquisition 41.3 77.3 445.1 43.2 3.6 Total consideration 1,019.7 1,253.6 5,915.3 1,329.2 98.6 Less: unpaid purchase consideration — — (128.8 ) — — Less: contingent consideration — — — — (6.9 ) Net assets acquired $ 1,019.7 $ 1,253.6 $ 5,786.5 $ 1,329.2 $ 91.7 |
Schedule of Earnings by Acquiree | Financial Results - The amount of net sales and earnings included in the Company's results for the periods presented were as follows: Net sales 2015 2014 Ikaria $ 191.9 $ — Questcor 1,125.9 129.2 Cadence 263.0 124.4 $ 1,580.8 $ 253.6 Operating income (loss) Ikaria $ 47.1 $ — Questcor 223.3 17.4 Cadence (97.3 ) (66.9 ) $ 173.1 $ (49.5 ) |
Schedule of Acquisition Cost | Acquisition-Related Costs - Acquisition-related costs incurred in fiscal 2015 and 2014 for each of the fiscal 2015 and 2014 acquisitions discussed above were as follows: Acquisition-related costs 2015 2014 Therakos $ 22.5 $ — Ikaria 30.9 — Questcor — 47.5 Cadence — 17.6 $ 53.4 $ 65.1 |
Business Combination Intangible Asset Amortization By Acquiree [Table Text Block] | The amount of amortization on acquired intangible assets included within operating income (loss) for the periods presented was as follows: Intangible asset amortization 2015 2014 Ikaria $ 57.1 $ — Questcor 301.4 34.9 Cadence 162.5 85.9 $ 521.0 $ 120.8 During fiscal 2015 and 2014, the Company recognized $44.1 million and $25.7 million , respectively, of expense primarily associated with fair value adjustments of acquired inventory. This expense was included within cost of sales. |
Schedule of Intangible Assets Acquired | Intangible assets acquired consist of the following: Therakos Amount Amortization Period Completed technology $ 1,170.0 15 years The completed technology intangible asset relates to extracorporeal photopheresis treatment therapies. The fair value of the intangible asset was determined using the income approach, which is a valuation technique that provides an estimate of the fair value of the asset based on market participant expectations of cash flows the asset would generate. The cash flows were discounted commensurate with the level of risk associated with each asset or its projected cash flows. The completed technology intangible asset utilized a discount rate of 17.0% . Based on the Company's preliminary estimate, the excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents the assembled workforce, future product and device development, anticipated synergies and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. All assets acquired are included within the Company's Specialty Brands segment. Ikaria Amount Amortization Period Completed technology $ 1,820.0 15 years Trademark 70.0 22 years In-process research and development - terlipressin 81.0 Non-Amortizable $ 1,971.0 The completed technology and trademark intangible assets relate to Inomax. The fair value of the intangible assets were determined using the income approach. The cash flows were discounted at various discount rates commensurate with the level of risk associated with each asset or its projected cash flows. Completed technology, trademark and in-process research and development ("IPR&D") terlipressin intangibles utilized discount rates of 14.5% , 14.5% , and 17.0% , respectively. The IPR&D discount rate for terlipressin was developed after assigning a probability of success to achieving the projected cash flows based on the current stage of development, inherent uncertainty in the FDA approval process and risks associated with commercialization of a new product. Based on the Company's preliminary estimate, the excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents the assembled workforce, future product and device development, anticipated synergies and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. All assets acquired are included within the Company's Specialty Brands segment. Questcor Amount Weighted-Average Amortization Period Completed technology $ 5,343.3 18 years Trademark 5.2 13 years Customer relationships 34.3 12 years In-process research and development - Synacthen 218.3 Non-Amortizable $ 5,601.1 The completed technology intangible asset relates to Acthar. The trademark and customer relationship intangible assets relate to BioVectra, Inc., a wholly-owned subsidiary of Questcor. The in-process research and development relates to the U.S. development of Synacthen, a synthetic pharmaceutical product. The fair value of the intangible assets were determined using the income approach. The cash flows were discounted at various discount rates commensurate with the level of risk associated with each asset or its projected cash flows. Completed technology, customer relationships, trademark and in-process research and development intangibles utilized discount rates of 14.5% , 10.0% , 10.0% and 16.0% , respectively. The in-process research and development discount rate was developed after assigning a probability of success to achieving the projected cash flows based on the current stage of development, inherent uncertainty in the FDA approval process and risks associated with commercialization of a new product. Based on the Company's preliminary estimate, the excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents the assembled workforce, anticipated synergies and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. The majority of assets acquired are included within the Company's Specialty Brands segment. Assets related to BioVectra, Inc. are included within the Company's Specialty Generics segment. Cadence Amount Amortization Period Completed technology $ 1,300.0 8 years The completed technology intangible asset relates to Ofirmev, the rights to which have been in-licensed from Bristol-Myers Squibb Company ("BMS"). The fair value of the intangible asset was determined using the income approach. The cash flows were discounted at a 13.0% rate. For more information on the BMS license agreement, refer to "License Agreement" below. The excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents the assembled workforce, anticipated synergies and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. All assets acquired are included within the Company's Specialty Brands segment. CNS Therapeutics Amount Weighted-Average Amortization Period Completed technology $ 73.1 13 years Trademark 0.2 3 years In-process research and development 18.6 Non-Amortizable $ 91.9 |
Schedule of Pro Forma Information | The following unaudited pro forma information has been prepared for comparative purposes only and is not necessarily indicative of the results of operations as they would have been had the acquisition occurred on the assumed date, nor is it necessarily an indication of future operating results. In addition, the unaudited pro forma information does not reflect the cost of any integration activities, benefits from any synergies that may be derived from the acquisition or revenue growth that may be anticipated. 2015 2014 Net sales $ 3,755.8 $ 3,598.1 Income (loss) from continuing operations 359.9 (63.1 ) Basic earnings (loss) per share from continuing operations $ 3.11 $ (0.55 ) Diluted earnings (loss) from per share continuing operations 3.07 (0.55 ) |
Restructuring and Related Cha41
Restructuring and Related Charges (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges by Segment | Net restructuring and related charges by segment within continuing operations are as follows: Fiscal Year 2015 2014 2013 Specialty Brands $ 36.5 $ 57.0 $ 5.2 Specialty Generics 4.5 9.8 11.2 Nuclear Imaging (4.6 ) 13.7 6.9 Corporate 4.3 1.4 3.0 Restructuring and related charges, net 40.7 81.9 26.3 Less: accelerated depreciation (0.3 ) (0.5 ) (2.6 ) Restructuring charges, net $ 40.4 $ 81.4 $ 23.7 |
Schedule of Net Restructuring and Related Charges | Net restructuring and related charges by program within continuing operations are comprised of the following: Fiscal Year 2015 2014 2013 2013 Mallinckrodt Program $ 7.4 $ 27.3 $ 8.5 Acquisition programs 33.6 56.4 — Other programs (0.3 ) (1.8 ) 17.8 Total programs 40.7 81.9 26.3 Less: non-cash charges, including impairments and accelerated share based compensation expense (10.1 ) (38.0 ) (2.6 ) Total charges expected to be settled in cash $ 30.6 $ 43.9 $ 23.7 |
Schedule of Restructuring Reserves by Type of Cost | The following table summarizes cash activity for restructuring reserves, substantially all of which related to employee severance and benefits, with the exception of $8.5 million in fiscal 2014 related to consulting costs associated with restructuring initiatives related to the CMDS business: 2013 Mallinckrodt Program Acquisition Programs Other Programs Total Balance at September 28, 2012 $ — $ — $ 8.9 $ 8.9 Charges from continuing operations 8.5 — 17.6 26.1 Charges from discontinued operations 6.4 — 3.3 9.7 Changes in estimate from continuing operations — — (2.4 ) (2.4 ) Changes in estimate from discontinued operations — — (0.2 ) (0.2 ) Cash payments — — (15.1 ) (15.1 ) Reclassifications (1) — — (1.5 ) (1.5 ) Balance at September 27, 2013 14.9 — 10.6 25.5 Charges from continuing operations 32.9 22.9 1.4 57.2 Charges from discontinued operations 25.3 — 1.1 26.4 Changes in estimate from continuing operations (7.6 ) (1.6 ) (4.1 ) (13.3 ) Changes in estimate from discontinued operations (1.8 ) — (0.7 ) (2.5 ) Cash payments (34.8 ) (13.4 ) (6.8 ) (55.0 ) Reclassifications (1) (1.3 ) — (1.0 ) (2.3 ) Currency translation (1.0 ) — (0.1 ) (1.1 ) Balance at September 26, 2014 26.6 7.9 0.4 34.9 Charges from continuing operations 15.4 25.3 — 40.7 Charges from discontinued operations 1.0 — — 1.0 Changes in estimate from continuing operations (8.3 ) (1.5 ) (0.3 ) (10.1 ) Changes in estimate from discontinued operations (0.6 ) — — (0.6 ) Cash payments (22.5 ) (21.7 ) (0.1 ) (44.3 ) Reclassifications (1) (3.0 ) — — (3.0 ) Currency translation (0.6 ) — — (0.6 ) Balance at September 25, 2015 $ 8.0 $ 10.0 $ — $ 18.0 (1) Represents the reclassification of pension and other postretirement benefits from restructuring reserves to pension and postretirement obligations. |
Schedule of Restructuring Charges Incurred Cumulative to Date | Net restructuring and related charges, including associated asset impairments, incurred cumulative to date related to the 2013 Mallinckrodt Program are as follows: Specialty Brands $ 4.0 Specialty Generics 15.6 Nuclear Imaging (including CMDS) 67.3 Corporate 10.0 $ 96.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income from Continuing Operations before Income Taxes | The Domestic and International components of income from continuing operations before income taxes were as follows (1) : 2015 2014 2013 Domestic $ (107.0 ) $ (159.9 ) $ 34.7 International 322.3 6.0 21.0 Total $ 215.3 $ (153.9 ) $ 55.7 (1) Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. |
Schedule of Significant Components of Income Taxes Related to Continuing Operations | Significant components of income taxes related to continuing operations are as follows (1) : 2015 2014 2013 Current: Domestic $ 0.3 $ 40.9 $ 49.3 International 95.1 17.9 12.1 Current income tax provision 95.4 58.8 61.4 Deferred: Domestic $ (0.8 ) $ (49.7 ) $ (18.3 ) International (187.5 ) (19.2 ) 4.4 Deferred income tax (benefit) provision (188.3 ) (68.9 ) (13.9 ) $ (92.9 ) $ (10.1 ) $ 47.5 (1) Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. |
Schedule of Reconciliation of Income Taxes at Statutory Rate and Tax Provision | The reconciliation between Domestic income taxes at the statutory rate and the Company's provision for income taxes on continuing operations is as follows: 2015 2014 2013 Provision for income taxes at Domestic statutory income tax rate (1) $ 43.1 $ (53.8 ) $ 19.5 Adjustments to reconcile to income tax provision: U.S. state income tax provision, net (6) — (6.1 ) 3.7 Rate difference between Domestic and International jurisdictions (2) (3) (138.6 ) (10.6 ) 3.3 U.S. manufacturing deduction (6) — (4.1 ) (2.5 ) Valuation allowances, nonrecurring (2.1 ) 0.1 3.4 Adjustments to accrued income tax liabilities and uncertain tax positions (3) (6.8 ) (1.5 ) 5.0 Interest and penalties on accrued income tax liabilities and uncertain tax positions (3) 0.2 (7.9 ) 4.7 Investment in partnership — 20.0 — Credits, principally research and orphan drug (4) (8.1 ) (0.8 ) (6.3 ) Impairments, nondeductible — 41.8 — Permanently nondeductible and nontaxable items (5) 16.4 13.8 15.3 Other 3.0 (1.0 ) 1.4 Provision for income taxes $ (92.9 ) $ (10.1 ) $ 47.5 (1) The statutory tax rate reflects the U.K. statutory tax rate of 20% for fiscal 2015, and the U.S. federal statutory tax rate of 35% for fiscal 2014 and 2013. (2) Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. (3) Fiscal year 2013 includes impact of items relating to entities retained by Covidien in connection with the Separation. (4) During fiscal 2013, the U.S. Research Credit legislation was extended, with a retroactive effective date of January 1, 2012. As such, fiscal 2013 includes approximately $2.3 million of credit related to the period January 1, 2012 through September 28, 2012. Due to the December 31, 2013 tax law expiration, fiscal 2014 includes $0.7 million for the period September 28, 2013 through December 31, 2013. During fiscal 2015, the legislation was extended, with a retroactive effective date of January 1, 2014. As such, fiscal 2015 includes approximately $3.6 million of credit related to the period January 1, 2014 through September 26, 2014. (5) Includes the impact of nondeductible transaction and separation costs. (6) For fiscal 2015, U.S. state income tax benefit of $36.4 million, and U.S. manufacturing deduction tax benefit of $5.6 million were combined with the rate differences between Domestic and International jurisdictions. Fiscal 2014 includes U.S. state income tax benefit of $4.4 million associated with fiscal 2014 acquisitions and integration thereof. |
Schedule of Unrecognized Tax Benefit Activity | The following table summarizes the activity related to the Company's unrecognized tax benefits, excluding interest: 2015 2014 2013 Balance at beginning of fiscal year $ 82.0 $ 100.1 $ 165.5 Unrecognized tax benefits retained by Covidien — — (153.7 ) Unrecognized tax benefits transferred from Covidien — — 84.2 Additions related to current year tax positions 4.5 3.2 3.5 Additions related to prior period tax positions 19.9 30.6 6.6 Reductions related to prior period tax positions (7.7 ) (33.0 ) (4.3 ) Settlements (7.8 ) (6.9 ) (1.6 ) Lapse of statute of limitations (1.7 ) (12.0 ) (0.1 ) Balance at end of fiscal year 89.2 82.0 100.1 |
Schedule of Unrecongized Tax Benefits Balance Sheet Location | Unrecognized tax benefits, excluding interest, are reported in the following consolidated balance sheet captions in the amount shown: September 25, 2015 September 26, 2014 Accrued and other current liabilities $ 1.3 $ 6.5 Other income tax liabilities 80.0 70.7 Deferred income taxes (non-current liability) 7.9 4.8 $ 89.2 $ 82.0 |
Schedule of Income Taxes Payable | Income taxes payable, including uncertain tax positions and related interest accruals, is reported in the following consolidated balance sheet captions in the amounts shown. September 25, 2015 September 26, 2014 Accrued and other current liabilities $ 19.8 $ 13.1 Other income tax liabilities 121.3 122.6 $ 141.1 $ 135.7 |
Schedule of Income Tax Receivables and Other Assets | At September 25, 2015 , other assets includes $52.2 million of tax payments associated with non-current deferred intercompany transactions. Prepaid expenses and other current assets includes $8.7 million of tax payments associated with current deferred intercompany transactions, and $81.3 million of receivables associated with tax payments on account with the taxing authorities. At September 26, 2014 , other assets includes $14.8 million of tax payments associated with non-current deferred intercompany transactions. Prepaid expenses and other current assets includes a receivable of $60.0 million associated with the Questcor acquisition and tax payments of $0.6 million associated with current deferred intercompany transactions. All of the above items exclude amounts related to assets which are held for sale. September 25, 2015 September 26, 2014 Other assets $ 52.2 $ 14.8 Prepaid expenses and other current assets 90.0 63.4 $ 142.2 $ 78.2 |
Schedule of Deferred Taxes Activity | The components of the net deferred tax (liability) asset at the end of each fiscal year were as follows: September 25, 2015 September 26, 2014 Deferred tax assets: Accrued liabilities and reserves $ 92.5 $ 68.9 Inventories 23.2 21.4 Tax loss and credit carryforwards 163.3 93.8 Environmental liabilities 23.6 29.5 Rebate reserves 48.5 41.1 Expired product 26.3 39.0 Postretirement benefits 33.8 34.5 Federal and state benefit of uncertain tax positions and interest 33.6 29.5 Share-based compensation 18.9 28.1 Intangible assets 105.7 9.6 Other 20.2 32.0 589.6 427.4 Deferred tax liabilities: Property, plant and equipment (140.1 ) (121.6 ) Intangible assets (1,550.7 ) (2,177.9 ) Installment sale (1,465.3 ) (93.6 ) Investment in partnership (187.9 ) (191.3 ) (3,344.0 ) (2,584.4 ) Net deferred tax (liability) before valuation allowances (2,754.4 ) (2,157.0 ) Valuation allowances (233.0 ) (76.9 ) Net deferred tax (liability) $ (2,987.4 ) $ (2,233.9 ) |
Schedule of Deferred Taxes Balance Sheet Location | Deferred taxes are reported in the following consolidated and combined balance sheet captions in the amounts shown: September 25, 2015 September 26, 2014 Deferred income taxes (current asset) $ 142.7 $ 152.3 Other non-current assets 7.0 13.4 Accrued and other current liabilities (4.7 ) — Deferred income taxes (non-current liability) (3,132.4 ) (2,399.6 ) Net deferred tax (liability) $ (2,987.4 ) $ (2,233.9 ) |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Earnings (Loss) per Share [Abstract] | |
Schedule of Earnings (Loss) per Share | The dilutive effect of the Company's share-based awards that were issued as a result of the conversion of Covidien share-based awards with the Separation, the conversion of Questcor share-based awards with the Questcor Acquisition, the initial equity awards granted to certain of the Company's executives on July 1, 2013 and any other Company grants made since the Separation have been included in the computation of diluted earnings per share for fiscal 2015, 2014 and 2013, calculated under the methodologies outlined above, weighted appropriately for the portion of the period they were outstanding. 2015 2014 2013 Earnings (loss) per share numerator: Income (loss) from continuing operations attributable to common shareholders before allocation of earnings to participating securities $ 308.2 $ (143.8 ) $ 8.2 Less: earnings allocated to participating securities 2.5 — — Income (loss) from continuing operations attributable to common shareholders, after earnings allocated to participating securities 305.7 (143.8 ) 8.2 Income (loss) from discontinued operations 16.5 (175.5 ) 50.6 Less: earnings from discontinued operations allocated to participating securities 0.1 — — Income (loss) from discontinued operations attributable to common shareholders, after allocation of earnings to participating securities 16.4 (175.5 ) 50.6 Net income (loss) attributable to common shareholders, after allocation of earnings to participating securities $ 322.1 $ (319.3 ) $ 58.8 Earnings (loss) per share denominator: Weighted-average shares outstanding - basic 115.8 64.9 57.7 Impact of dilutive securities 1.4 — 0.1 Weighted-average shares outstanding - diluted 117.2 64.9 57.8 Basic earnings (loss) per share attributable to common shareholders Income (loss) from continuing operations $ 2.64 $ (2.22 ) $ 0.14 Income (loss) from discontinued operations 0.14 (2.70 ) 0.88 Net income (loss) attributable to common shareholders $ 2.78 $ (4.92 ) $ 1.02 Diluted earnings (loss) per share attributable to common shareholders Income (loss) from continuing operations $ 2.61 $ (2.22 ) $ 0.14 Income (loss) from discontinued operations 0.14 (2.70 ) 0.88 Net income (loss) attributable to common shareholders $ 2.75 $ (4.92 ) $ 1.02 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories are comprised of the following at the end of each period: September 25, September 26, Raw materials and supplies $ 66.3 $ 57.5 Work in process 124.2 184.7 Finished goods 91.3 64.2 Inventories $ 281.8 $ 306.4 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The gross carrying amount and accumulated depreciation of property, plant and equipment at the end of each period was as follows: September 25, 2015 September 26, 2014 Land $ 49.8 $ 47.3 Buildings 333.7 289.4 Capitalized software 120.2 94.5 Machinery and equipment 1,220.0 1,041.6 Construction in process 146.9 196.2 1,870.6 1,669.0 Less: accumulated depreciation (879.3 ) (782.2 ) Property, plant and equipment, net $ 991.3 $ 886.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by segment were as follows: September 25, 2015 September 26, 2014 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Specialty Brands $ 3,442.4 $ — $ 2,194.9 $ — Specialty Generics 207.0 — 207.0 — Nuclear Imaging 119.5 (119.5 ) 119.5 (119.5 ) Total $ 3,768.9 $ (119.5 ) $ 2,521.4 $ (119.5 ) During the fiscal year ended September 25, 2015, the gross carrying value of goodwill in the Specialty Brands segment increased by $1,247.5 million , attributable to $792.4 million from the Ikaria Acquisition, $437.2 million from the Therakos Acquisition and $17.9 million resulting from adjustments to the Questcor Acquisition purchase price allocation. |
Schedule of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets, excluding held for sale intangible assets, at the end of each period were as follows: September 25, 2015 September 26, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 9,896.0 $ 765.8 $ 6,906.0 $ 235.6 Licenses 185.1 99.8 185.1 87.3 Customer relationships 28.1 4.4 33.8 0.6 Trademarks 82.1 6.2 13.0 4.1 Other 6.7 6.7 6.7 5.0 Total $ 10,198.0 $ 882.9 $ 7,144.6 $ 332.6 Non-Amortizable: Trademarks $ 35.0 $ 35.0 In-process research and development 316.2 235.2 Total $ 351.2 $ 270.2 |
Schedule of Future Amortization Expense, Intangible Assets | The estimated aggregate amortization expense on intangible assets owned by the Company, excluding held for sale intangible assets, is expected to be as follows: Fiscal 2016 $ 693.7 Fiscal 2017 691.9 Fiscal 2018 682.9 Fiscal 2019 682.6 Fiscal 2020 682.0 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt including Capital Lease Obligation | Debt was comprised of the following at the end of each period: September 25, 2015 September 26, 2014 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: 2.85% term loan due April 2016 $ — $ — $ 0.4 $ — Term loans due March 2021 20.0 — 18.2 — 4.00% term loan due February 2022 1.0 — 1.2 — Capital lease obligation and vendor financing agreements 1.3 — 1.4 — Total current debt 22.3 — 21.2 — Long-term debt: Variable rate receivable securitization 153.0 0.8 150.0 1.0 2.85% term loan due April 2016 — — 2.7 — 3.50% notes due April 2018 300.0 1.7 300.0 2.4 4.88% notes due April 2020 700.0 11.3 — — Term loans due March 2021 1,958.5 44.1 1,978.5 52.4 4.00% term loan due February 2022 6.9 — 9.6 — 9.50% debentures due May 2022 10.4 — 10.4 — 5.75% notes due August 2022 900.0 14.4 900.0 16.4 8.00% debentures due March 2023 4.4 — 8.0 — 4.75% notes due April 2023 600.0 7.1 600.0 7.9 5.625% notes due October 2023 750.0 13.7 — — 5.50% notes due April 2025 700.0 11.9 — — Revolving credit facility 500.0 4.9 — 5.5 Capital lease obligation and vendor financing agreements 1.0 — 0.4 — Total long-term debt 6,584.2 109.9 3,959.6 85.6 Total debt $ 6,606.5 $ 109.9 $ 3,980.8 $ 85.6 |
Schedule of Maturities of Long-term Debt including Capital Lease Obligation | The aggregate amounts of debt, including the capital lease obligation, maturing during the next five fiscal years are as follows: Fiscal 2016 $ 22.3 Fiscal 2017 175.0 Fiscal 2018 321.2 Fiscal 2019 521.2 Fiscal 2020 721.2 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Cost | The net periodic benefit cost (credit) for the Company's pension and postretirement benefit plans was as follows: Pension Benefits Postretirement Benefits Fiscal Year Fiscal Year 2015 2014 2013 2015 2014 2013 Service cost $ 4.5 $ 5.1 $ 5.0 $ 0.1 $ 0.1 $ 0.1 Interest cost 17.5 19.6 18.2 1.9 2.1 2.4 Expected return on plan assets (22.6 ) (24.6 ) (29.6 ) — — — Amortization of net actuarial loss 9.4 8.1 12.3 — — 0.3 Amortization of prior service cost (0.6 ) (0.6 ) 0.6 (4.0 ) (9.3 ) (9.1 ) Loss on plan settlements 6.0 3.8 6.8 — — — Net periodic benefit cost (credit) $ 14.2 $ 11.4 $ 13.3 $ (2.0 ) $ (7.1 ) $ (6.3 ) |
Schedule of Changes in Benefit Obligations, Plan Assets, and Funded Status of Plans | The following table represents the changes in benefit obligations, plan assets and the net amounts recognized on the consolidated balance sheets for pension and postretirement benefit plans at the end of fiscal 2015 and 2014 : Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Change in benefit obligation: Projected benefit obligations at beginning of year $ 538.4 $ 501.7 $ 52.0 $ 53.2 Service cost 4.5 5.1 0.1 0.1 Interest cost 17.5 19.6 1.9 2.1 Employee contributions 0.6 0.6 — — Actuarial (gain) loss (4.5 ) 60.0 2.1 0.5 Benefits and administrative expenses paid (21.1 ) (21.9 ) (3.9 ) (3.9 ) Plan settlements (23.6 ) (17.6 ) — — Net transfer in/(out) 0.6 — — — Currency translation (18.9 ) (9.1 ) — — Projected benefit obligations at end of year $ 493.5 $ 538.4 $ 52.2 $ 52.0 Change in plan assets: Fair value of plan assets at beginning of year $ 473.6 $ 456.0 $ — $ — Actual return on plan assets 12.5 59.7 — — Employer contributions 13.0 4.9 3.9 3.9 Employee contributions 0.6 0.6 — — Benefits and administrative expenses paid (21.1 ) (21.9 ) (3.9 ) (3.9 ) Plan settlements (23.6 ) (17.6 ) — — Currency translation (17.1 ) (8.1 ) — — Fair value of plan assets at end of year $ 437.9 $ 473.6 $ — $ — Funded status at end of year $ (55.6 ) $ (64.8 ) $ (52.2 ) $ (52.0 ) |
Schedule of Amounts Recognized in Balance Sheet | Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Amounts recognized on the consolidated balance sheet: Non-current assets $ 20.1 $ 9.8 $ — $ — Current liabilities (6.6 ) (2.7 ) (4.6 ) (4.8 ) Non-current liabilities (69.1 ) (71.9 ) (47.6 ) (47.2 ) Net amount recognized on the consolidated balance sheet $ (55.6 ) $ (64.8 ) $ (52.2 ) $ (52.0 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ (104.1 ) $ (115.1 ) $ (5.1 ) $ (2.9 ) Prior service credit 5.5 6.9 14.9 18.8 Net amount recognized in accumulated other comprehensive income $ (98.6 ) $ (108.2 ) $ 9.8 $ 15.9 |
Schedule of Amounts to be Amortized from Accumulated Other Comprehensive Income | The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost (credit) in fiscal 2016 are as follows: Pension Benefits Postretirement Benefits Amortization of net actuarial loss $ 10.8 $ — Amortization of prior service cost (0.5 ) (2.1 ) |
Schedule of Plans with Accumulated Benefit Obligations in Excess of Plan Assets | Additional information related to pension plans is as follows: 2015 2014 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 368.8 $ 394.7 Fair value of plan assets 294.1 321.6 |
Schedule of Actuarial Assumptions | The weighted-average discount rate used to determine net periodic benefit cost and obligations for the Company's postretirement benefit plans are as follows: 2015 2014 2013 Net periodic benefit cost 3.6 % 4.0 % 3.2 % Benefit obligations 3.9 % 3.7 % 4.0 % Weighted-average assumptions used each fiscal year to determine net periodic benefit cost for the Company's pension plans are as follows: U.S. Plans Non-U.S. Plans 2015 2014 2013 2015 2014 2013 Discount rate 3.8 % 4.2 % 3.5 % 2.5 % 3.5 % 4.0 % Expected return on plan assets 6.0 % 6.5 % 7.9 % 2.9 % 3.1 % 3.5 % Rate of compensation increase — % — % — % 3.2 % 3.5 % 3.7 % Weighted-average assumptions used each fiscal year to determine benefits obligations for the Company's pension plans are as follows: U.S. Plans Non-U.S. Plans 2015 2014 2013 2015 2014 2013 Discount rate 3.9 % 3.9 % 4.3 % 2.5 % 2.5 % 3.7 % Rate of compensation increase — % — % — % 3.6 % 3.4 % 3.5 % |
Schedule of Healthcare Cost Trend Rates | Healthcare cost trend assumptions for postretirement benefit plans are as follows: 2015 2014 Healthcare cost trend rate assumed for next fiscal year 7.1 % 7.1 % Rate to which the cost trend rate is assumed to decline 4.5 % 4.5 % Fiscal year the ultimate trend rate is achieved 2029 2029 |
Schedule of Effect of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rates | A one-percentage-point change in assumed healthcare cost trend rates would have the following effects: One-Percentage-Point Increase One-Percentage-Point Decrease Effect on total of service and interest cost $ — $ — Effect on postretirement benefit obligation 0.8 (0.7 ) |
Schedule of Weighted Average Allocation of Plan Assets | Pension plans have the following weighted-average asset allocations at the end of each fiscal year: U.S. Plans Non-U.S. Plans 2015 2014 2015 2014 Equity securities 27 % 28 % 6 % 8 % Debt securities 70 70 1 2 Cash and cash equivalents 3 1 — — Other — 1 93 90 Total 100 % 100 % 100 % 100 % |
Schedule of Fair Value of Plan Assets | The following tables provide a summary of plan assets held by the Company's pension plans that are measured at fair value on a recurring basis at the end of fiscal 2015 and 2014 : Basis of Fair Value Measurement Fiscal 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities: U.S. small mid cap $ 15.1 $ 15.1 $ — $ — U.S. large cap 46.2 46.2 — — International 31.0 22.7 8.3 — Debt securities: Diversified fixed income funds (1) 198.4 196.9 1.5 — High yield bonds 11.3 11.3 — — Emerging market funds 7.4 7.4 — — Insurance contracts 116.7 — — 116.7 Other 11.8 9.4 2.4 — Total $ 437.9 $ 309.0 $ 12.2 $ 116.7 Basis of Fair Value Measurement Fiscal 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity Securities: U.S. small mid cap $ 16.6 $ 16.6 $ — $ — U.S. large cap 50.2 50.2 — — International 39.8 28.7 11.1 — Debt securities: Diversified fixed income funds (1) 218.7 216.6 2.1 — High yield bonds 13.0 13.0 — — Emerging market funds 9.5 9.5 — — Insurance contracts 119.8 — — 119.8 Other 6.0 2.6 3.4 — Total $ 473.6 $ 337.2 $ 16.6 $ 119.8 (1) Diversified fixed income funds consist of U.S. Treasury bonds, mortgage-backed securities, corporate bonds, asset-backed securities and U.S. agency bonds. |
Schedule of Changes in Fair Value of Plan Assets | The following table provides a summary of the changes in the fair value measurements that used significant unobservable inputs (level 3) for fiscal 2015 and 2014 : Insurance Contracts Balance at September 27, 2013 $ 112.0 Net unrealized gains 15.5 Net purchases, sales and issuances (0.6 ) Currency translation (7.1 ) Balance at September 26, 2014 119.8 Net unrealized gains 12.2 Net purchases, sales and issuances (0.1 ) Currency translation (15.2 ) Balance at September 25, 2015 $ 116.7 |
Schedule of Expected Benefit Payments | Benefit payments expected to be paid, reflecting future expected service as appropriate, are as follows: Pension Benefits Postretirement Benefits Fiscal 2016 $ 40.0 $ 4.6 Fiscal 2017 33.6 4.3 Fiscal 2018 33.0 4.0 Fiscal 2019 32.6 3.8 Fiscal 2020 31.4 3.5 Fiscal 2021 - 2025 143.9 15.6 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Equity [Abstract] | |
Schedule of Share Repurchases under the Repurchase Plan | Share Repurchases On January 23, 2015, the Company's board of directors authorized a program to purchase up to $300.0 million of the Company's ordinary shares from time to time based on market conditions to allow management to enhance shareholder value. The following table presents the number of shares and dollar amount of repurchases made under the repurchase program by fiscal year and the remaining amount available for repurchase as of September 25, 2015. 2015 Share Repurchase Program Number of Shares Amount Authorized repurchase amount $ 300.0 Repurchases: Fiscal 2015 823,592 75.0 Remaining amount available $ 225.0 |
Share Plans (Tables)
Share Plans (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Incentive Equity Awards Issued Upon Completion of Conversion | Mallinckrodt incentive equity awards issued upon completion of the Conversion and the related weighted-average grant date fair value is presented below: Awards Weighted-Average Grant-Date Fair Value Share options 2,399,822 $ 7.96 Restricted share units 575,213 38.97 |
Schedule of Share Option Awards Status Upon Completion of the Conversion | A summary of the status of the Company's share option awards upon completion of the Conversion on June 28, 2013 is presented below: Shares Options Weighted- Weighted- Aggregate Outstanding at June 28, 2013 2,399,822 $ 35.94 8.0 $ 22.9 Exercisable at June 28, 2013 550,097 30.94 5.9 8.0 |
Schedule of the Valuation Assumptions Used in the Conversion | The weighted-average assumptions used in the Black-Scholes pricing model for determining the fair value of the share option awards immediately before and immediately after the Separation were as follows: Pre- Separation Post- Separation Expected share price volatility 26 % 32 % Risk-free interest rate 0.99 % 0.99 % Expected annual dividend per share 1.65 % — % Expected life of options (in years) 3.8 3.8 Fair value per option $ 18.04 $ 16.51 Share option awards 1,745,258 2,399,822 The weighted-average assumptions used in the Black-Scholes pricing model for shares granted in fiscal 2015, along with the weighted-average grant-date fair value, were as follows: 2015 2014 Expected share price volatility 29 % 32 % Risk-free interest rate 1.72 % 1.96 % Expected annual dividend per share — % — % Expected life of options (in years) 5.3 5.5 Fair value per option $ 30.08 $ 17.38 |
Schedule of Share Option Activity | Share option activity and information is as follows: Share Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at September 27, 2013 2,760,231 $ 37.30 Granted 675,921 52.63 Converted from Questcor Acquisition 1,292,736 25.08 Exercised (878,330 ) 30.96 Expired/Forfeited (323,769 ) 41.83 Outstanding at September 26, 2014 3,526,789 36.84 Granted 635,567 102.20 Exercised (1,132,778 ) 29.79 Expired/Forfeited (243,135 ) 58.00 Outstanding at September 25, 2015 2,786,443 52.76 7.3 $ 63.2 Vested and unvested expected to vest as of September 25, 2015 2,649,351 50.94 7.4 59.0 Exercisable at September 25, 2015 1,054,336 34.20 5.8 36.2 |
Share-based Compensation, Performance Shares Award Outstanding Activity | PSU activity is as follows (1) : Shares Weighted-Average Grant-Date Fair Value Non-vested at September 27, 2013 $ — $ — Granted 79,230 63.40 Performance metric adjustment — — Vested — — Forfeited (6,490 ) 62.65 Non-vested at September 26, 2014 72,740 63.46 Granted 77,306 125.84 Performance metric adjustment — — Vested — — Forfeited (19,072 ) 92.05 Non-vested at September 25, 2015 130,974 96.05 (1) The number of shares disclosed within this table are at the target number of 100%. |
Schedule of Share-based Payment Award, Performance Share Awards, Valuation Assumptions | The assumptions used in the Monte Carlo model for PSUs granted during each year were as follows: 2015 2014 Expected stock price volatility 27 % 28 % Peer group stock price volatility 32 % 33 % Correlation of returns 14 % 17 % |
Schedule of Restricted Share Unit Activity | The grant-date fair value of RSAs, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the service period. Shares Weighted-Average Grant-Date Fair Value Non-vested at September 27, 2013 — $ — Granted — — Converted from Questcor Acquisition 1,829,164 70.88 Vested (390,731 ) 70.88 Forfeited (6,402 ) 70.88 Non-vested at September 26, 2014 1,432,031 70.88 Granted — — Vested (1,362,823 ) 70.88 Forfeited (34,646 ) 70.88 Non-vested at September 25, 2015 34,562 70.88 RSU activity is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested at September 27, 2013 724,269 $ 40.62 Granted 229,281 55.40 Converted from Questcor Acquisition 30,747 70.88 Vested (300,237 ) 34.77 Forfeited (94,838 ) 42.48 Non-vested at September 26, 2014 589,222 47.88 Granted 273,733 105.68 Vested (219,189 ) 49.84 Forfeited (71,272 ) 68.15 Non-vested at September 25, 2015 572,494 73.45 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income are as follows: Currency Translation Unrecognized Loss on Derivatives Unrecognized Gain (Loss) on Benefit Plans Accumulated Other Comprehensive Income Balance at September 28, 2012 $ 157.1 $ — $ (72.2 ) $ 84.9 Other comprehensive income (loss), net 1.5 (7.3 ) 29.4 23.6 Balance at September 27, 2013 158.6 (7.3 ) (42.8 ) 108.5 Other comprehensive income (loss), net (27.6 ) — (17.1 ) (44.7 ) Reclassification from other comprehensive income (loss) — 0.5 1.4 1.9 Balance at September 26, 2014 131.0 (6.8 ) (58.5 ) 65.7 Other comprehensive loss before reclassification (70.8 ) — (1.1 ) (71.9 ) Reclassification from other comprehensive income (loss) — 0.4 6.7 7.1 Balance at September 25, 2015 $ 60.2 $ (6.4 ) $ (52.9 ) $ 0.9 |
Reclassification out of Accumulated Other Comprehensive Income | The following summarizes reclassifications out of accumulated other comprehensive income for the 2015 and 2014 fiscal years: Amount Reclassified from Accumulated Other Comprehensive Income Amount Reclassified from September 25, 2015 September 26, 2014 Line Item in the Condensed Consolidated Statement of Income Amortization of unrealized loss on derivatives $ 0.6 $ 0.6 Interest expense Income tax provision (0.2 ) (0.1 ) Provision for income taxes Net of income taxes 0.4 0.5 Amortization of pension and post-retirement benefit plans: Net actuarial loss 9.4 8.1 (1) Prior service credit (4.6 ) (9.9 ) (1) Plan settlements 6.0 3.8 (1) Total before tax 10.8 2.0 Income tax provision (4.1 ) (0.6 ) Provision for income taxes Net of income taxes 6.7 1.4 Total reclassifications for the period $ 7.1 $ 1.9 (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 13 for additional details. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Purchase Obligations | At September 25, 2015 , such obligations were as follows: Fiscal 2016 $ 125.9 Fiscal 2017 51.4 Fiscal 2018 49.8 Fiscal 2019 7.9 Fiscal 2020 — |
Schedule of Asset Retirement Obligations | The following table provides a summary of the changes in the Company's asset retirement obligations for fiscal 2015 and 2014 : 2015 2014 Balance at beginning of period $ 39.2 $ 48.9 Additions and adjustments (1.0 ) (11.5 ) Accretion expense 1.8 3.1 Payments — — Currency translation (3.1 ) (1.3 ) Balance at end of period $ 36.9 $ 39.2 |
Schedule of Minimum Lease Payments for Non-cancelable Leases | The following is a schedule of minimum lease payments for non-cancelable leases as of September 25, 2015 : Operating Leases Capital Leases Fiscal 2016 $ 21.1 $ 1.3 Fiscal 2017 17.7 0.9 Fiscal 2018 15.0 0.1 Fiscal 2019 11.3 — Fiscal 2020 9.3 — Thereafter 20.6 — Total minimum lease payments $ 95.0 2.3 Less: interest portion of payments — Present value of minimum lease payments $ 2.3 |
Financial Instruments and Fai53
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables provide a summary of the significant assets and liabilities that are measured at fair value on a recurring basis at the end of each period: September 25, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 34.6 $ 24.2 $ 10.4 $ — $ 34.6 $ 24.2 $ 10.4 $ — Liabilities: Deferred compensation liabilities $ 20.0 $ — $ 20.0 $ — Contingent consideration and acquired contingent liabilities 174.6 — — 174.6 Foreign exchange forward and option contracts 3.3 3.3 — — $ 197.9 $ 3.3 $ 20.0 $ 174.6 September 26, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 35.7 $ 22.9 $ 12.8 $ — $ 35.7 $ 22.9 $ 12.8 $ — Liabilities: Deferred compensation liabilities $ 15.0 $ — $ 15.0 $ — Contingent consideration and acquired contingent liabilities 202.8 — — 202.8 Foreign exchange forward and option contracts 0.2 0.2 — — $ 218.0 $ 0.2 $ 15.0 $ 202.8 |
Schedule of Reconciliation of Changes in Fair Value of Contingent Consideration | Balance at September 26, 2014 $ 202.8 Payments (29.0 ) Accretion expense 7.5 Effect of currency rate change (6.7 ) Balance at September 25, 2015 $ 174.6 |
Schedule of Carrying Amount and Fair Value of Long-term Debt | The following table presents the carrying values and estimated fair values of the Company's long-term debt, excluding capital leases, as of the end of each period: September 25, 2015 September 26, 2014 Carrying Value Fair Value Carrying Value Fair Value Variable rate receivable securitization $ 153.0 $ 153.0 $ 150.0 $ 150.0 2.85% term loan due April 2016 — — 3.1 3.1 3.50% notes due April 2018 300.0 294.3 300.0 290.2 4.875% notes due April 2020 700.0 684.1 — — Term loans due March 2021 1,978.5 1,966.5 1,996.7 1,970.4 4.00% term loan due February 2022 7.9 7.9 10.8 10.8 9.50% debentures due May 2022 10.4 13.0 10.4 14.2 5.75% notes due August 2022 900.0 876.1 900.0 907.3 8.00% debentures due March 2023 4.4 5.3 8.0 10.2 4.75% notes due April 2023 600.0 539.6 600.0 563.8 5.625% notes due October 2023 750.0 705.2 — — 5.50% notes due April 2025 700.0 646.0 — — Revolving credit facility 500.0 500.0 — — |
Schedules of Concentration of Risk | The following table shows net sales attributable to distributors that accounted for 10% or more of the Company's total net sales: Fiscal Year 2015 2014 2013 CuraScript, Inc. 31 % 6 % — % McKesson Corporation 18 % 21 % 19 % Cardinal Health, Inc. 14 % 22 % 24 % AmerisourceBergen Corporation 9 % 14 % 11 % The following table shows accounts receivable attributable to distributors that accounted for 10% or more of the Company's gross accounts receivable at the end of each period: September 25, September 26, McKesson Corporation 24 % 27 % CuraScript, Inc. 16 % 15 % Cardinal Health, Inc. 13 % 18 % AmerisourceBergen Corporation 12 % 14 % The following table shows net sales attributable to products that accounted for 10% or more of the Company's total net sales: Fiscal Year 2015 2014 2013 Acthar 31 % 6 % — % Acetaminophen products (API) 6 % 9 % 13 % Methylphenidate ER 4 % 10 % 9 % |
Segment and Geographical Data (
Segment and Geographical Data (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Business Segment | Selected information by business segment is as follows: Fiscal Year 2015 2014 2013 Net sales: Specialty Brands 1,622.8 413.5 206.4 Specialty Generics 1,251.6 1,199.4 1,011.2 Nuclear Imaging 423.8 431.7 437.6 Net sales of operating segments (1) 3,298.2 2,044.6 1,655.2 Other (2) 48.7 37.4 57.1 Net sales 3,346.9 2,082.0 1,712.3 Operating income: Specialty Brands 651.3 (50.6 ) (36.2 ) Specialty Generics 622.0 617.4 347.9 Nuclear Imaging 66.4 (16.7 ) 24.5 Segment operating income 1,339.7 550.1 336.2 Unallocated amounts: Corporate and allocated expenses (3) (286.9 ) (228.1 ) (134.3 ) Intangible asset amortization (550.3 ) (154.8 ) (27.9 ) Restructuring and related charges, net (4) (40.7 ) (81.9 ) (26.3 ) Non-restructuring impairments — (151.6 ) — Separation costs — (9.6 ) (74.2 ) Operating income (loss) 461.8 (75.9 ) 73.5 Depreciation and amortization (5) : Specialty Brands 559.8 152.9 24.9 Specialty Generics 81.9 77.8 72.7 Nuclear Imaging 12.4 18.8 18.5 Depreciation and amortization 654.1 249.5 116.1 (1) Amounts represent sales to external customers. There were no intersegment sales. (2) Represents historical CMDS-related intercompany transactions that represent Mallinckrodt continuing operations under an ongoing supply agreement with the acquirer of the CMDS business. (3) Includes administration expenses and certain compensation, environmental and other costs not charged to the Company's operating segments. (4) Includes restructuring-related accelerated depreciation. (5) Depreciation for certain shared facilities is allocated based on occupancy percentage. |
Schedule of Net Sales from External Customers by Products | Net sales by product family within the Company's segments are as follows: Fiscal Year 2015 2014 2013 Acthar $ 1,037.3 $ 122.9 $ — Ofirmev 263.0 124.4 — Inomax 185.2 — — Exalgo 39.4 76.1 126.1 Other 97.9 90.1 80.3 Specialty Brands 1,622.8 413.5 206.4 Hydrocodone (API) and hydrocodone-containing tablets 167.2 99.4 140.0 Oxycodone (API) and oxycodone-containing tablets 154.6 155.2 139.0 Methylphenidate ER 136.5 209.6 148.3 Other controlled substances 572.2 584.5 443.3 Other 221.1 150.7 140.6 Specialty Generics 1,251.6 1,199.4 1,011.2 Nuclear Imaging 423.8 431.7 437.6 Other (1) 48.7 37.4 57.1 Net sales $ 3,346.9 $ 2,082.0 $ 1,712.3 (1) Represents historical CMDS-related intercompany transactions that represent Mallinckrodt continuing operations under an ongoing supply agreement with the acquirer of the CMDS business. |
Schedule of Net Sales and Long-Lived Assets by Geographical Area | Selected information by geographic area excluding assets held for sale is as follows: Fiscal Year 2015 2014 2013 Net sales (1) : U.S. $ 2,973.2 $ 1,780.9 $ 1,421.6 Europe, Middle East and Africa 236.2 250.3 250.1 Other 137.5 50.8 40.6 $ 3,346.9 $ 2,082.0 $ 1,712.3 Long-lived assets (2) : U.S. $ 905.2 $ 829.1 Europe, Middle East and Africa (3) 45.0 33.9 Other 44.5 41.0 $ 994.7 $ 904.0 (1) Net sales are attributed to regions based on the location of the entity that records the transaction, none of which relate to the country of Ireland. (2) Long-lived assets are primarily composed of property, plant and equipment. (3) Includes long-lived assets located in Ireland of $10.7 million , and $0.4 million at the end of fiscal 2015 and 2014, respectively. |
Selected Quarterly Financial 55
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data (Unaudited) | Fiscal 2015 (by quarter) Q1 Q2 Q3 Q4 Net sales $ 768.2 $ 819.0 $ 877.3 $ 882.4 Gross profit 404.8 462.9 503.8 482.1 Income from continuing operations 87.4 75.2 55.6 90.0 Income (loss) from discontinued operations 5.3 23.6 2.4 (14.8 ) Net income 92.7 98.8 58.0 75.2 Basic earnings per share from continuing operations (1) $ 0.75 $ 0.64 $ 0.47 $ 0.77 Diluted earnings per share from continuing operations (1) 0.74 0.64 0.47 0.76 Fiscal 2014 (by quarter) Q1 Q2 Q3 Q4 Net sales $ 429.5 $ 448.7 $ 530.1 $ 673.7 Gross profit 216.2 226.7 254.1 363.2 Income (loss) from continuing operations 38.5 20.2 (29.0 ) (173.5 ) Income (loss) from discontinued operations 7.1 (8.6 ) 4.9 (178.9 ) Net income (loss) 45.6 11.6 (24.1 ) (352.4 ) Basic earnings per share from continuing operations (1) $ 0.67 $ 0.35 $ (0.50 ) $ (2.04 ) Diluted earnings per share from continuing operations (1) 0.66 0.34 (0.50 ) (2.04 ) (1) Quarterly and annual computations are prepared independently. Therefore, the sum of each quarter may not necessarily total the fiscal period amounts noted elsewhere within this Annual Report on Form 10-K. |
Condensed Consolidating and C56
Condensed Consolidating and Combining Financial Statements (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Condensed Consolidating Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of September 25, 2015 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.1 $ 152.1 $ 213.7 $ — $ 365.9 Accounts receivable, net — — 548.5 — 548.5 Inventories — — 281.8 — 281.8 Deferred income taxes — — 142.7 — 142.7 Prepaid expenses and other current assets 1.3 0.2 205.8 — 207.3 Current assets held for sale — — 299.9 — 299.9 Intercompany receivable 39.1 128.6 9,699.5 (9,867.2 ) — Total current assets 40.5 280.9 11,391.9 (9,867.2 ) 1,846.1 Property, plant and equipment, net — — 991.3 — 991.3 Goodwill — — 3,649.4 — 3,649.4 Intangible assets, net — — 9,666.3 — 9,666.3 Long-term assets held for sale — — — — — Investment in subsidiaries 14,797.7 18,838.6 10,050.0 (43,686.3 ) — Intercompany loan receivable 174.4 — 2,498.2 (2,672.6 ) — Other assets — 0.1 250.9 — 251.0 Total Assets $ 15,012.6 $ 19,119.6 $ 38,498.0 $ (56,226.1 ) $ 16,404.1 — Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 20.0 $ 2.3 $ — $ 22.3 Accounts payable — 0.2 132.8 — 133.0 Accrued payroll and payroll-related costs 0.1 — 103.6 — 103.7 Accrued royalties — — 29.3 — 29.3 Accrued and other current liabilities 1.8 77.4 489.1 — 568.3 Current liabilities held for sale — — 72.8 — 72.8 Intercompany payable 9,699.5 — 167.7 (9,867.2 ) — Total current liabilities 9,701.4 97.6 997.6 (9,867.2 ) 929.4 Long-term debt — 6,299.4 174.9 — 6,474.3 Pension and postretirement benefits — — 116.7 — 116.7 Environmental liabilities — — 73.3 — 73.3 Deferred income taxes — — 3,132.4 — 3,132.4 Other income tax liabilities — — 121.3 — 121.3 Long-term liabilities held for sale — — — — — Intercompany loans payable — 2,672.6 — (2,672.6 ) — Other liabilities — — 245.5 — 245.5 Total liabilities 9,701.4 9,069.6 4,861.7 (12,539.8 ) 11,092.9 Shareholders' equity 5,311.2 10,050.0 33,636.3 (43,686.3 ) 5,311.2 Total Liabilities and Shareholders' Equity $ 15,012.6 $ 19,119.6 $ 38,498.0 $ (56,226.1 ) $ 16,404.1 MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of September 26, 2014 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.3 $ 18.5 $ 689.0 $ — $ 707.8 Accounts receivable, net — — 476.6 — 476.6 Inventories — — 306.4 — 306.4 Deferred income taxes — — 152.3 — 152.3 Prepaid expenses and other current assets 0.5 10.8 215.8 — 227.1 Current assets held for sale — — 200.8 — 200.8 Intercompany receivable 13.5 — 25.7 (39.2 ) — Total current assets 14.3 29.3 2,066.6 (39.2 ) 2,071.0 Property, plant and equipment, net — — 886.8 — 886.8 Goodwill — — 2,401.9 — 2,401.9 Intangible assets, net — — 7,082.2 — 7,082.2 Long-term assets held for sale — — 111.2 — 111.2 Investment in subsidiaries 586.8 10,645.7 4,945.1 (16,177.6 ) — Intercompany loan receivable 4,385.0 — 1,941.6 (6,326.6 ) — Other assets — — 234.2 — 234.2 Total Assets $ 4,986.1 $ 10,675.0 $ 19,669.6 $ (22,543.4 ) $ 12,787.3 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 18.2 $ 3.0 $ — $ 21.2 Accounts payable 1.2 0.2 109.3 — 110.7 Accrued payroll and payroll-related costs 0.1 — 116.2 — 116.3 Accrued royalties — — 67.7 — 67.7 Accrued and other current liabilities 1.1 50.9 477.9 — 529.9 Current liabilities held for sale — — 59.0 — 59.0 Intercompany payable 25.7 — 13.5 (39.2 ) — Total current liabilities 28.1 69.3 846.6 (39.2 ) 904.8 Long-term debt — 3,693.9 180.1 — 3,874.0 Pension and postretirement benefits — — 116.2 — 116.2 Environmental liabilities — — 59.2 — 59.2 Deferred income taxes — — 2,399.6 — 2,399.6 Other income tax liabilities — — 122.6 — 122.6 Long-term liabilities held for sale — — 9.7 — 9.7 Intercompany loans payable — 1,966.6 4,360.0 (6,326.6 ) — Other liabilities — — 343.2 — 343.2 Total liabilities 28.1 5,729.8 8,437.2 (6,365.8 ) 7,829.3 Shareholders' equity 4,958.0 4,945.2 11,232.4 (16,177.6 ) 4,958.0 Total Liabilities and Shareholders' Equity $ 4,986.1 $ 10,675.0 $ 19,669.6 $ (22,543.4 ) $ 12,787.3 |
Schedule of Condensed Consolidating and Combining Statements of Comprehensive Income | MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 25, 2015 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 3,346.9 $ — $ 3,346.9 Cost of sales — — 1,493.3 — 1,493.3 Gross profit — — 1,853.6 — 1,853.6 Selling, general and administrative expenses 116.3 15.7 1,037.8 — 1,169.8 Research and development expenses — — 185.1 — 185.1 Restructuring charges, net 9.8 — 30.6 — 40.4 Gains on divestiture and license — — (3.5 ) — (3.5 ) Operating income (loss) (126.1 ) (15.7 ) 603.6 — 461.8 — Interest expense (96.4 ) (230.2 ) (25.2 ) 96.2 (255.6 ) Interest income — 0.1 97.1 (96.2 ) 1.0 Other income (expense), net 216.3 — (208.2 ) — 8.1 Intercompany interest and fees (14.7 ) — 14.7 — — Equity in net income of subsidiaries 330.6 496.3 250.5 (1,077.4 ) — Income from continuing operations before income taxes 309.7 250.5 732.5 (1,077.4 ) 215.3 Benefit from income taxes (15.9 ) — (77.0 ) — (92.9 ) Income from continuing operations 325.6 250.5 809.5 (1,077.4 ) 308.2 Gain (loss) from discontinued operations, net of income taxes (0.9 ) — 17.4 — 16.5 Net income 324.7 250.5 826.9 (1,077.4 ) 324.7 Other comprehensive loss, net of tax (64.8 ) (64.8 ) (69.9 ) 134.7 (64.8 ) Comprehensive income $ 259.9 $ 185.7 $ 757.0 $ (942.7 ) $ 259.9 MALLINCKRODT PLC CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 26, 2014 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Combined Net sales $ — $ — $ 2,082.0 $ — $ 2,082.0 Cost of sales — — 1,021.8 — 1,021.8 Gross profit — — 1,060.2 — 1,060.2 Selling, general and administrative expenses 37.7 7.3 700.0 — 745.0 Research and development expenses — — 163.5 — 163.5 Restructuring charges, net 35.3 — 46.1 — 81.4 Non-restructuring impairments — — 151.6 — 151.6 Separation costs 2.5 — 7.1 — 9.6 Gains on divestiture and license — — (15.0 ) — (15.0 ) Operating (loss) income (75.5 ) (7.3 ) 6.9 — (75.9 ) Interest expense — (86.3 ) — 3.7 (82.6 ) Interest income — — 5.2 (3.7 ) 1.5 Other income (expense), net 30.9 — (27.8 ) — 3.1 Intercompany interest and fees (9.0 ) — 9.0 — — Equity in net income of subsidiaries (264.8 ) (171.2 ) (300.2 ) 736.2 — Loss from continuing operations before income taxes (318.4 ) (264.8 ) (306.9 ) 736.2 (153.9 ) Benefit from income taxes — — (10.1 ) — (10.1 ) Loss from continuing operations (318.4 ) (264.8 ) (296.8 ) 736.2 (143.8 ) Loss from discontinued operations, net of income taxes (0.9 ) — (174.6 ) — (175.5 ) Net loss (319.3 ) (264.8 ) (471.4 ) 736.2 (319.3 ) Other comprehensive loss, net of tax (42.8 ) (42.8 ) (84.1 ) 126.9 (42.8 ) Comprehensive loss $ (362.1 ) $ (307.6 ) $ (555.5 ) $ 863.1 $ (362.1 ) MALLINCKRODT PLC CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 27, 2013 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Combined Net sales $ — $ — $ 1,712.3 $ — $ 1,712.3 Cost of sales — — 890.0 — 890.0 Gross profit — — 822.3 — 822.3 Selling, general and administrative expenses 5.2 0.1 490.6 — 495.9 Research and development expenses — — 157.9 — 157.9 Restructuring charges, net — — 23.7 — 23.7 Separation costs 3.2 0.6 70.4 — 74.2 Gains on divestiture and license — — (2.9 ) — (2.9 ) Operating income (loss) (8.4 ) (0.7 ) 82.6 — 73.5 Interest expense — (19.6 ) 0.1 — (19.5 ) Interest income — — 0.3 — 0.3 Other income (expense), net 0.2 — 1.2 — 1.4 Intercompany interest and fees (9.5 ) — 9.5 — — Equity in net income of subsidiaries 76.4 96.7 — (173.1 ) — Income from continuing operations before income taxes 58.7 76.4 93.7 (173.1 ) 55.7 Provision for (benefit from) income taxes (0.3 ) — 47.8 — 47.5 Income from continuing operations 59.0 76.4 45.9 (173.1 ) 8.2 Gain (loss) from discontinued operations, net of income taxes (0.2 ) — 50.8 — 50.6 Net income 58.8 76.4 96.7 (173.1 ) 58.8 Other comprehensive income, net of tax 28.4 28.4 35.7 (64.1 ) 28.4 Comprehensive income $ 87.2 $ 104.8 $ 132.4 $ (237.2 ) $ 87.2 |
Schedule of Condensed Consolidating and Combining Statements of Cash Flows | MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Fiscal year ended September 25, 2015 (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 $ 207.0 $ (148.2 ) $ 837.6 $ — $ 896.4 Cash Flows From Investing Activities: Capital expenditures — — (148.0 ) — (148.0 ) Acquisitions and intangibles, net of cash acquired — — (2,154.7 ) — (2,154.7 ) Intercompany loan investment (149.4 ) — (554.2 ) 703.6 — Investment in subsidiary — (3,014.4 ) — 3,014.4 — Restricted cash — — 3.1 — 3.1 Other — — 3.0 — 3.0 Net cash used in investing activities (149.4 ) (3,014.4 ) (2,850.8 ) 3,718.0 (2,296.6 ) Cash Flows From Financing Activities: Issuance of external debt — 2,890.0 120.0 — 3,010.0 Repayment of external debt and capital leases — (258.3 ) (1,590.1 ) — (1,848.4 ) Excess tax benefit from share-based compensation — — 34.1 — 34.1 Debt financing costs — (39.1 ) (0.8 ) — (39.9 ) Proceeds from exercise of share options 34.4 — — — 34.4 Intercompany loan borrowings — 703.6 — (703.6 ) — Capital contribution — — 3,014.4 (3,014.4 ) — Repurchase of shares (92.2 ) — — — (92.2 ) Other — — (28.1 ) — (28.1 ) Net cash provided by financing activities (57.8 ) 3,296.2 1,549.5 (3,718.0 ) 1,069.9 Effect of currency rate changes on cash — — (11.6 ) — (11.6 ) Net (decrease) increase in cash and cash equivalents (0.2 ) 133.6 (475.3 ) — (341.9 ) Cash and cash equivalents at beginning of period 0.3 18.5 689.0 — 707.8 Cash and cash equivalents at end of period 0.1 152.1 213.7 — 365.9 MALLINCKRODT PLC CONDENSED COMBINING STATEMENT OF CASH FLOWS Fiscal year ended September 26, 2014 (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 $ 18.2 $ (65.0 ) $ 420.2 $ — $ 373.4 Cash Flows From Investing Activities: Capital expenditures — — (127.8 ) — (127.8 ) Acquisitions and intangibles, net of cash acquired — — (2,793.8 ) — (2,793.8 ) Intercompany loan investment (25.0 ) (298.1 ) (915.8 ) 1,238.9 — Subsidiary dividend proceeds — 300.5 — (300.5 ) — Investment in subsidiary — (3,735.5 ) — 3,735.5 — Restricted Cash — — 4.1 — 4.1 Other — — 26.7 — 26.7 Net cash used in investing activities (25.0 ) (3,733.1 ) (3,806.6 ) — 4,673.9 (2,890.8 ) Cash Flows From Financing Activities: Issuance of external debt — 2,893.3 149.9 — 3,043.2 Repayment of external debt and capital leases — (3.3 ) (31.5 ) — (34.8 ) Excess tax benefit from share-based compensation — — 8.9 — 8.9 Debt financing costs — (70.7 ) (1.0 ) — (71.7 ) Proceeds from exercise of share options 25.8 — — — 25.8 Subsidiary dividend payment — — (300.5 ) 300.5 — Intercompany loan borrowings (2.4 ) 940.8 300.5 (1,238.9 ) — Capital contribution — — 3,735.5 (3,735.5 ) — Repurchase of shares (17.5 ) — — — (17.5 ) Other — — — — — Net cash provided by financing activities 5.9 3,760.1 — 3,861.8 (4,673.9 ) 2,953.9 Effect of currency rate changes on cash — — (4.2 ) — (4.2 ) Net increase (decrease) in cash and cash equivalents (0.9 ) (38.0 ) 471.2 — 432.3 Cash and cash equivalents at beginning of period 1.2 56.5 217.8 — 275.5 Cash and cash equivalents at end of period $ 0.3 $ 18.5 $ 689.0 $ — $ 707.8 MALLINCKRODT PLC CONDENSED COMBINING STATEMENT OF CASH FLOWS Fiscal year ended September 27, 2013 (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 $ (1.8 ) $ (8.4 ) $ 146.1 $ — $ 135.9 Cash Flows From Investing Activities: Capital expenditures — — (147.9 ) — (147.9 ) Acquisitions and intangibles, net of cash acquired — — (88.1 ) — (88.1 ) Intercompany loan investment — (2.4 ) (409.6 ) 412.0 — Investment in subsidiary — (68.0 ) — 68.0 — Other — — 1.3 — 1.3 Net cash used in investing activities — (70.4 ) (644.3 ) — 480.0 (234.7 ) Cash Flows From Financing Activities: Issuance of external debt — 898.1 — — 898.1 Repayment of external debt and capital leases — — (1.3 ) — (1.3 ) Excess tax benefit from share-based compensation — — 3.4 — 3.4 Debt financing costs — (12.0 ) — — (12.0 ) Net transfers to parent — (1,160.4 ) 644.5 — (515.9 ) Proceeds from exercise of share options 0.6 — — — 0.6 Intercompany loan borrowings 2.4 409.6 — (412.0 ) — Capital contribution — — 68.0 (68.0 ) — Other — — 0.1 — 0.1 Net cash provided by financing activities 3.0 135.3 — 714.7 (480.0 ) 373.0 Effect of currency rate changes on cash — — 1.3 — 1.3 Net increase in cash and cash equivalents 1.2 56.5 217.8 — 275.5 Cash and cash equivalents at beginning of period — — — — — Cash and cash equivalents at end of period $ 1.2 $ 56.5 $ 217.8 $ — $ 275.5 |
Background and Basis of Prese57
Background and Basis of Presentation (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 27, 2013USD ($) | Sep. 25, 2015$ / sharesshares | Sep. 26, 2014$ / sharesshares | Jun. 28, 2013$ / sharesshares | |
Schedule of Basis of Presentation [Line Items] | ||||
Distribution ratio | 0.125 | 0.125 | ||
Stock outstanding after distribution (in shares) | shares | 116,283,149 | 115,929,588 | 57,694,885 | |
Ordinary shares, par value (in usd per share) | $ 0.20 | $ 0.20 | $ 0.20 | |
Covidien | Selling, general and administrative | ||||
Schedule of Basis of Presentation [Line Items] | ||||
Allocated expenses | $ | $ 39.6 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Schedule of Significant Accounting Policies [Line Items] | |||
Shipping costs | $ 42.3 | $ 47.8 | $ 46.9 |
Foreign currency gain (loss) | 30.7 | 3.8 | (12.8) |
Foreign currency transactions gain (loss), derivative instruments | $ (24.8) | $ (6.3) | $ 10.1 |
Customer relationships | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets - useful lives | 12 years | ||
Minimum | Completed Technology | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets - useful lives | 5 years | ||
Minimum | Licensing Agreements | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets - useful lives | 8 years | ||
Minimum | Trademarks | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets - useful lives | 13 years | ||
Minimum | Buildings | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Minimum | Leasehold improvements | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 1 year | ||
Minimum | Capitalized software | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 1 year | ||
Minimum | Machinery and equipment | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 1 year | ||
Maximum | Completed Technology | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets - useful lives | 25 years | ||
Maximum | Licensing Agreements | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets - useful lives | 30 years | ||
Maximum | Trademarks | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets - useful lives | 30 years | ||
Maximum | Buildings | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 45 years | ||
Maximum | Leasehold improvements | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Maximum | Capitalized software | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum | Machinery and equipment | |||
Schedule of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 20 years |
Recently Issued Accounting St59
Recently Issued Accounting Standards Narrative (Details) $ in Millions | Sep. 25, 2015USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | $ 103.1 |
Discontinued Operations and D60
Discontinued Operations and Divestitures (Income (loss) from Discontinued Operations) (Details) - Contrast Media and Delivery Systems - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | $ 413.8 | $ 495.8 | $ 549.3 |
Cost of sales | 306.4 | 352.9 | 346.7 |
Selling, general and administrative | 97.5 | 97.1 | 114 |
Restructuring charges, net | 0.3 | 47.2 | 9.5 |
Non-restructuring impairment charges | 0 | 204 | 0 |
Other | 4.7 | 4.1 | 8.4 |
Income (loss) from discontinued operations | 4.9 | (209.5) | 70.7 |
Income tax expense (benefit) | 10.8 | (34.7) | 21.1 |
Income (loss) from discontinued operations net of tax | $ (5.9) | $ (174.8) | $ 49.6 |
Discontinued Operations and D61
Discontinued Operations and Divestitures (Assets and Liabilities Held-for-Sale) (Details) - Contrast Media and Delivery Systems - Discontinued Operations, Held-for-sale - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | $ 68.5 | $ 68.9 |
Inventories | 86.3 | 90.2 |
Property, plant and equipment, net | 60.3 | 62.4 |
Intangible assets, net | 27.7 | 30 |
Other current and non-current assets | 57.1 | 60.5 |
Total assets classified as held for sale in the balance sheet | 299.9 | 312 |
Accounts payable | 22 | 18 |
Other current and non-current liabilities | 50.8 | 50.7 |
Total liabilities classified as held for sale in the balance sheet | $ 72.8 | $ 68.7 |
Discontinued Operations and D62
Discontinued Operations and Divestitures, Significant Cash and Non-Cash Transactions (Details) - Contrast Media and Delivery Systems - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation | $ 15.5 | $ 18.9 | $ 16 |
Amortization | 2.3 | 7.5 | 7.5 |
Capital expenditures | 9.5 | 12.3 | 17.4 |
Non-cash impairment charges | $ 0 | $ 204 | $ 0 |
Discontinued Operations and D63
Discontinued Operations and Divestitures (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Non-restructuring impairment charges | $ 0 | $ 151,600,000 | $ 0 | ||||||||||
Provision for (benefit from) income taxes | [1] | 92,900,000 | 10,100,000 | (47,500,000) | |||||||||
Tax (benefit) expense on income (loss) from discontinued operations | 11,500,000 | (34,700,000) | 21,100,000 | ||||||||||
Permanently nondeductible and nontaxable items | [2] | 16,400,000 | 13,800,000 | 15,300,000 | |||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 21,500,000 | 32,100,000 | 10,000,000 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | $ (14,800,000) | $ 2,400,000 | $ 23,600,000 | $ 5,300,000 | $ (178,900,000) | $ 4,900,000 | $ (8,600,000) | $ 7,100,000 | 16,500,000 | (175,500,000) | 50,600,000 | ||
Gain on Divestiture | 3,500,000 | 15,000,000 | 2,900,000 | ||||||||||
International | [1] | 95,100,000 | 17,900,000 | 12,100,000 | |||||||||
International Deferred | [1] | (187,500,000) | (19,200,000) | 4,400,000 | |||||||||
Deferred Income Tax Expense (Benefit) | [1] | (188,300,000) | (68,900,000) | (13,900,000) | |||||||||
Domestic | [1] | 300,000 | 40,900,000 | 49,300,000 | |||||||||
Contrast Media and Delivery Systems | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Consideration | 270,000,000 | 270,000,000 | |||||||||||
Non-restructuring impairment charges | 204,000,000 | ||||||||||||
Goodwill, Impairment Loss | 100,200,000 | ||||||||||||
Income tax expense (benefit) | 10,800,000 | (34,700,000) | 21,100,000 | ||||||||||
Taxes paid or to be paid in connection with disposition | $ 10,000,000 | 10,000,000 | |||||||||||
Provision for (benefit from) income taxes | 36,200,000 | ||||||||||||
Valuation allowances, nonrecurring | 2,500,000 | ||||||||||||
Permanently nondeductible and nontaxable items | 2,900,000 | ||||||||||||
Other Tax Expense (Benefit) | 2,000,000 | ||||||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 3,000,000 | 700,000 | |||||||||||
Increase (Decrease) in Accrued Liabilities | 900,000 | ||||||||||||
International | 14,900,000 | (6,600,000) | 10,700,000 | ||||||||||
International Deferred | 4,400,000 | 3,000,000 | (500,000) | ||||||||||
Deferred Income Tax Expense (Benefit) | 35,600,000 | 5,400,000 | |||||||||||
Domestic | 0 | 10,400,000 | 5,600,000 | ||||||||||
Mallinckrodt Baker | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | (100,000) | (700,000) | $ 1,000,000 | ||||||||||
Tastemaker | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Provision for Loss (Gain) on Disposal, Net of Tax | $ 22,500,000 | ||||||||||||
Property, Plant and Equipment | Contrast Media and Delivery Systems | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Impairment of Long-Lived Assets to be Disposed of | 51,400,000 | ||||||||||||
Finite-Lived Intangible Assets | Contrast Media and Delivery Systems | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Impairment of Long-Lived Assets to be Disposed of | 52,400,000 | ||||||||||||
Oxymorphone ER | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Proceeds from Sale of Productive Assets | $ 4,000,000 | ||||||||||||
Contractually Obligated Future Proceeds from Sale Of Productive Assets | $ 8,000,000 | ||||||||||||
Gain on Divestiture | $ 11,700,000 | ||||||||||||
[1] | Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. | ||||||||||||
[2] | Includes the impact of nondeductible transaction and separation costs. |
Acquisitions and License Agre64
Acquisitions and License Agreements (Narrative) (Details) $ / shares in Units, $ in Millions | Sep. 25, 2015USD ($) | Apr. 16, 2015USD ($) | Aug. 14, 2014USD ($)$ / sharesshares | Apr. 05, 2014shares | Mar. 19, 2014USD ($)$ / shares | Oct. 01, 2012USD ($) | Jan. 31, 2014USD ($) | Sep. 25, 2015USD ($) | Jun. 26, 2015USD ($) | Mar. 27, 2015USD ($) | Dec. 26, 2014USD ($) | Sep. 26, 2014USD ($) | Jun. 27, 2014USD ($) | Mar. 28, 2014USD ($) | Dec. 27, 2013USD ($) | Jun. 26, 2015pharmacy_indications | Sep. 25, 2015USD ($) | Sep. 26, 2014USD ($) | Sep. 27, 2013USD ($) | Sep. 27, 2013USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 2,154.7 | $ 2,793.8 | $ 88.1 | |||||||||||||||||
Net sales | $ 882.4 | $ 877.3 | $ 819 | $ 768.2 | $ 673.7 | $ 530.1 | $ 448.7 | $ 429.5 | 3,346.9 | 2,082 | 1,712.3 | |||||||||
Non-cash impairment charges | 0 | 381.2 | 0 | |||||||||||||||||
Nuvo | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Non-cash impairment charges | 11.1 | |||||||||||||||||||
Therakos | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent consideration | $ 0 | 0 | 0 | |||||||||||||||||
Business Combination, Consideration Transferred, Other | 1,300 | |||||||||||||||||||
Total consideration | 1,019.7 | |||||||||||||||||||
Cash used to acquire business | 1,000 | |||||||||||||||||||
Long Term Debt Assumed | 300 | 300 | 300 | |||||||||||||||||
Ikaria | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent consideration | $ 0 | |||||||||||||||||||
Business Combination, Consideration Transferred, Other | 2,300 | |||||||||||||||||||
Total consideration | 1,253.6 | |||||||||||||||||||
Cash used to acquire business | 1,200 | |||||||||||||||||||
Long Term Debt Assumed | 1,100 | |||||||||||||||||||
Net sales | 191.9 | 0 | ||||||||||||||||||
Questcor Pharmaceuticals, Inc. | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent consideration | $ 0 | |||||||||||||||||||
Total consideration | $ 5,915.3 | |||||||||||||||||||
Amount of Cash Shareholders Receive, Per Share of Acquiree | $ / shares | $ 30 | |||||||||||||||||||
Amount of company shares shareholders will receive, per share | shares | 0.897 | |||||||||||||||||||
Issuance of common stock to acquire business | shares | 57,000,000 | |||||||||||||||||||
Issuance of senior unsecured notes to acquire business | $ 900 | |||||||||||||||||||
Issuance of senior secured term loan facility to acquire business | 700 | |||||||||||||||||||
Cash used to acquire business | $ 150 | |||||||||||||||||||
Contingent consideration, potential maximum | 190 | 190 | 190 | |||||||||||||||||
Net sales | 1,125.9 | 129.2 | ||||||||||||||||||
Cadence Pharmaceuticals, Inc. | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent consideration | $ 0 | |||||||||||||||||||
Total consideration | 1,329.2 | |||||||||||||||||||
Net sales | 263 | 124.4 | ||||||||||||||||||
CNS Therapeutics, Inc. | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent consideration | $ 6.9 | |||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 88.1 | |||||||||||||||||||
Total consideration | 98.6 | |||||||||||||||||||
Contingent consideration, potential maximum | $ 9 | |||||||||||||||||||
Acthar | Questcor Pharmaceuticals, Inc. | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of indications that are approved for treatment | pharmacy_indications | 19 | |||||||||||||||||||
Bristol-Myers Squibb | Licensing Agreements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent payment, maximum additional amount | 25 | |||||||||||||||||||
Royalties paid | 43.9 | 13.2 | ||||||||||||||||||
Ofirmev | Cadence Pharmaceuticals, Inc. | Licensing Agreements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Milestone Payments | 10 | |||||||||||||||||||
Exalgo | Licensing Agreements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent payment, maximum additional amount | 73 | |||||||||||||||||||
Royalties paid | 3.2 | 22 | 24 | |||||||||||||||||
Milestone Payments | $ 65 | |||||||||||||||||||
Depomed | Licensing Agreements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent payment, maximum additional amount | 64 | |||||||||||||||||||
Milestone Payments | 10 | 22 | ||||||||||||||||||
Pennsaid | Licensing Agreements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent payment, maximum additional amount | 120 | |||||||||||||||||||
Royalties paid | 1.8 | $ 4.3 | $ 3.9 | |||||||||||||||||
Milestone Payments | 15 | |||||||||||||||||||
Finite-Lived Intangible Assets | Exalgo | Licensing Agreements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Milestone Payments | $ 55 | |||||||||||||||||||
Royalty rights | Exalgo | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Finite-lived intangible assets acquired | $ 7.2 | |||||||||||||||||||
Debentures | Therakos | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Long term debt | 750 | |||||||||||||||||||
Debentures | Ikaria | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Long term debt | 1,400 | |||||||||||||||||||
Revolving Credit Facility | Therakos | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Borrowings, outstanding | $ 500 | $ 500 | $ 500 | |||||||||||||||||
Revolving Credit Facility | Ikaria | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Borrowings, outstanding | $ 240 | |||||||||||||||||||
Revolving Credit Facility | Revolving Credit Facility | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Interest rate during period | 2.60% | |||||||||||||||||||
Term loan due March 2021 | Revolving Credit Facility | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Interest rate during period | 2.60% | |||||||||||||||||||
Term loan due March 2021 | Secured Debt | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | 1,300 | |||||||||||||||||||
Interest rate during period | 3.25% | |||||||||||||||||||
Term loan due March 2021 | Term Loan | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Interest rate during period | 3.50% | |||||||||||||||||||
Specialty Pharmaceuticals | Cadence Pharmaceuticals, Inc. | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total consideration | $ 1,300 | |||||||||||||||||||
Amount of Cash Shareholders Receive, Per Share of Acquiree | $ / shares | $ 14 |
Acquisitions and License Agre65
Acquisitions and License Agreements (Schedule of Fair Value of Identifiable Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Apr. 16, 2015 | Sep. 26, 2014 | Aug. 14, 2014 | Mar. 19, 2014 | Oct. 01, 2012 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Goodwill (non-tax deductible) | $ 3,649.4 | $ 2,401.9 | ||||
Therakos | ||||||
Business Acquisition [Line Items] | ||||||
Receivables | 22 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Cash | 41.3 | |||||
Inventory | 23.5 | |||||
Intangible assets | 1,170 | |||||
Goodwill (non-tax deductible) | 437.2 | |||||
Other assets, current and non-current | 42.1 | |||||
Total assets acquired | 1,714.1 | |||||
Current liabilities | 24.7 | |||||
Unpaid purchase consideration (current) | 0 | |||||
Other liabilities (non-current) | 0.6 | |||||
Deferred tax liabilities, net (non-current) | 324.3 | |||||
Contingent consideration (non-current) | 0 | |||||
Total Debt | 344.8 | |||||
Total liabilities assumed | 694.4 | |||||
Net assets acquired | $ 1,019.7 | |||||
Ikaria | ||||||
Business Acquisition [Line Items] | ||||||
Receivables | $ 73.8 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Cash | 77.3 | |||||
Inventory | 26.3 | |||||
Intangible assets | 1,971 | |||||
Goodwill (non-tax deductible) | 792.4 | |||||
Other assets, current and non-current | 172.9 | |||||
Total assets acquired | 3,039.9 | |||||
Current liabilities | 32.6 | |||||
Unpaid purchase consideration (current) | 0 | |||||
Other liabilities (non-current) | 9.1 | |||||
Deferred tax liabilities, net (non-current) | 623.6 | |||||
Contingent consideration (non-current) | 0 | |||||
Total Debt | 1,121 | |||||
Total liabilities assumed | 1,786.3 | |||||
Net assets acquired | $ 1,253.6 | |||||
Questcor Pharmaceuticals, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Receivables | $ 87.3 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Cash | 445.1 | |||||
Inventory | 67.9 | |||||
Intangible assets | 5,601.1 | |||||
Goodwill (non-tax deductible) | 1,789.4 | |||||
Other assets, current and non-current | 274.3 | |||||
Total assets acquired | 8,177.8 | |||||
Current liabilities | 168.9 | |||||
Unpaid purchase consideration (current) | 128.8 | |||||
Other liabilities (non-current) | 186.8 | |||||
Deferred tax liabilities, net (non-current) | 1,906.8 | |||||
Contingent consideration (non-current) | 0 | |||||
Total Debt | 0 | |||||
Total liabilities assumed | 2,391.3 | |||||
Net assets acquired | $ 5,786.5 | |||||
Cadence Pharmaceuticals, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Receivables | $ 14.7 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Cash | 43.2 | |||||
Inventory | 21 | |||||
Intangible assets | 1,300 | |||||
Goodwill (non-tax deductible) | 318.1 | |||||
Other assets, current and non-current | 18 | |||||
Total assets acquired | 1,700.3 | |||||
Current liabilities | 48.8 | |||||
Unpaid purchase consideration (current) | 0 | |||||
Other liabilities (non-current) | 0 | |||||
Deferred tax liabilities, net (non-current) | 292.3 | |||||
Contingent consideration (non-current) | 0 | |||||
Total Debt | 30 | |||||
Total liabilities assumed | 371.1 | |||||
Net assets acquired | $ 1,329.2 | |||||
CNS Therapeutics, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Receivables | $ 3.3 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Cash | 3.6 | |||||
Inventory | 0 | |||||
Intangible assets | 91.9 | |||||
Goodwill (non-tax deductible) | 24.5 | |||||
Other assets, current and non-current | 9.7 | |||||
Total assets acquired | 129.7 | |||||
Current liabilities | 4 | |||||
Unpaid purchase consideration (current) | 0 | |||||
Other liabilities (non-current) | 0 | |||||
Deferred tax liabilities, net (non-current) | 27.1 | |||||
Contingent consideration (non-current) | 6.9 | |||||
Total Debt | 0 | |||||
Total liabilities assumed | 38 | |||||
Net assets acquired | $ 91.7 |
Acquisitions and License Agre66
Acquisitions and License Agreements (Schedule of Reconciliation of Total Consideration) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Apr. 16, 2015 | Aug. 14, 2014 | Mar. 19, 2014 | Oct. 01, 2012 |
Therakos | |||||
Business Acquisition [Line Items] | |||||
Total consideration, net of cash | $ 978.4 | ||||
Plus: cash assumed in acquisition | 41.3 | ||||
Total consideration | 1,019.7 | ||||
Less: unpaid purchase consideration | 0 | ||||
Less: contingent consideration | 0 | ||||
Net assets acquired | $ 1,019.7 | ||||
Ikaria | |||||
Business Acquisition [Line Items] | |||||
Total consideration, net of cash | $ 1,176.3 | ||||
Plus: cash assumed in acquisition | 77.3 | ||||
Total consideration | 1,253.6 | ||||
Less: unpaid purchase consideration | 0 | ||||
Less: contingent consideration | 0 | ||||
Net assets acquired | $ 1,253.6 | ||||
Questcor Pharmaceuticals, Inc. | |||||
Business Acquisition [Line Items] | |||||
Total consideration, net of cash | $ 5,470.2 | ||||
Plus: cash assumed in acquisition | 445.1 | ||||
Total consideration | 5,915.3 | ||||
Less: unpaid purchase consideration | (128.8) | ||||
Less: contingent consideration | 0 | ||||
Net assets acquired | $ 5,786.5 | ||||
Cadence Pharmaceuticals, Inc. | |||||
Business Acquisition [Line Items] | |||||
Total consideration, net of cash | $ 1,286 | ||||
Plus: cash assumed in acquisition | 43.2 | ||||
Total consideration | 1,329.2 | ||||
Less: unpaid purchase consideration | 0 | ||||
Less: contingent consideration | 0 | ||||
Net assets acquired | $ 1,329.2 | ||||
CNS Therapeutics, Inc. | |||||
Business Acquisition [Line Items] | |||||
Total consideration, net of cash | $ 95 | ||||
Plus: cash assumed in acquisition | 3.6 | ||||
Total consideration | 98.6 | ||||
Less: unpaid purchase consideration | 0 | ||||
Less: contingent consideration | (6.9) | ||||
Net assets acquired | $ 91.7 |
Acquisitions and License Agre67
Acquisitions and License Agreements (Schedule of Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Apr. 16, 2015 | Aug. 14, 2014 | Mar. 19, 2014 | Oct. 01, 2012 |
Therakos | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Net assets acquired | $ 1,019.7 | ||||
Intangible assets | 1,170 | ||||
Therakos | Completed Technology | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Net assets acquired | $ 1,170 | ||||
Intangible assets acquired, weighted-average useful life | 15 years | ||||
Ikaria | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Net assets acquired | $ 1,253.6 | ||||
Intangible assets | 1,971 | ||||
Amortizable intangible assets acquired | 1,971 | ||||
Ikaria | In-process research and development | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Amortizable intangible assets acquired | $ 81 | ||||
Ikaria | Completed Technology | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Intangible assets acquired, weighted-average useful life | 15 years | ||||
Amortizable intangible assets acquired | $ 1,820 | ||||
Ikaria | Trademarks | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Intangible assets acquired, weighted-average useful life | 22 years | ||||
Amortizable intangible assets acquired | $ 70 | ||||
Cash flow discount rate | 14.50% | ||||
Questcor Pharmaceuticals, Inc. | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Net assets acquired | $ 5,786.5 | ||||
Intangible assets | 5,601.1 | ||||
Questcor Pharmaceuticals, Inc. | In-process research and development | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Indefinite lived intangible assets acquired | $ 218.3 | ||||
Cash flow discount rate | 16.00% | ||||
Questcor Pharmaceuticals, Inc. | Completed Technology | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Intangible assets acquired, weighted-average useful life | 18 years | ||||
Amortizable intangible assets acquired | $ 5,343.3 | ||||
Cash flow discount rate | 14.50% | ||||
Questcor Pharmaceuticals, Inc. | Trademarks | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Intangible assets acquired, weighted-average useful life | 13 years | ||||
Amortizable intangible assets acquired | $ 5.2 | ||||
Cash flow discount rate | 10.00% | ||||
Questcor Pharmaceuticals, Inc. | Customer relationships | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Intangible assets acquired, weighted-average useful life | 12 years | ||||
Amortizable intangible assets acquired | $ 34.3 | ||||
Cash flow discount rate | 10.00% | ||||
Cadence Pharmaceuticals, Inc. | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Net assets acquired | $ 1,329.2 | ||||
Intangible assets | $ 1,300 | ||||
Cash flow discount rate | 13.00% | ||||
Cadence Pharmaceuticals, Inc. | Completed Technology | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Intangible assets acquired, weighted-average useful life | 8 years | ||||
Amortizable intangible assets acquired | $ 1,300 | ||||
CNS Therapeutics, Inc. | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Net assets acquired | $ 91.7 | ||||
Intangible assets | 91.9 | ||||
CNS Therapeutics, Inc. | In-process research and development | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Indefinite lived intangible assets acquired | 18.6 | ||||
Estimated cost to complete in-process research | $ 18 | ||||
Cash flow discount rate | 35.00% | ||||
CNS Therapeutics, Inc. | Completed Technology | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Intangible assets acquired, weighted-average useful life | 13 years | ||||
Amortizable intangible assets acquired | $ 73.1 | ||||
CNS Therapeutics, Inc. | Trademarks | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Intangible assets acquired, weighted-average useful life | 3 years | ||||
Amortizable intangible assets acquired | $ 0.2 | ||||
Therakos Immunotherapy [Member] | Therakos | Completed Technology | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Cash flow discount rate | 17.00% | ||||
Inomax | Ikaria | Completed Technology | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Cash flow discount rate | 14.50% | ||||
Terlipressin [Member] | Ikaria | In-process research and development | |||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | |||||
Cash flow discount rate | 17.00% |
Acquisitions and License Agre68
Acquisitions and License Agreements (Schedule of Financial Results and Acquisition Costs of Acquirees) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Operating Income [Abstract] | |||||||||||
Operating income | $ 461.8 | $ (75.9) | $ 73.5 | ||||||||
Net Sales [Abstract] | |||||||||||
Net sales | $ 882.4 | $ 877.3 | $ 819 | $ 768.2 | $ 673.7 | $ 530.1 | $ 448.7 | $ 429.5 | 3,346.9 | 2,082 | $ 1,712.3 |
Acquisition Related Costs | 65.1 | ||||||||||
Ikaria | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | 47.1 | 0 | |||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 191.9 | 0 | |||||||||
Acquisition Related Costs | 30.9 | 0 | |||||||||
Questcor Pharmaceuticals, Inc. | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | 223.3 | 17.4 | |||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 1,125.9 | 129.2 | |||||||||
Acquisition Related Costs | 0 | 47.5 | |||||||||
Cadence Pharmaceuticals, Inc. | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | (97.3) | (66.9) | |||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 263 | 124.4 | |||||||||
Acquisition Related Costs | 0 | 17.6 | |||||||||
Therakos | |||||||||||
Net Sales [Abstract] | |||||||||||
Acquisition Related Costs | 22.5 | 0 | |||||||||
Total Acquisitions [Member] | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | 173.1 | (49.5) | |||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 1,580.8 | $ 253.6 | |||||||||
Acquisition Related Costs | $ 53.4 |
Acquisitions and License Agre69
Acquisitions and License Agreements (Schedule of Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
Business Acquisition [Line Items] | ||
Net sales | $ 3,755.8 | $ 3,598.1 |
Income (loss) from continuing operations | $ 359.9 | $ (63.1) |
Basic earnings (loss) per share from continuing operations | $ 3.11 | $ (0.55) |
Diluted earnings (loss) from per share continuing operations | $ 3.07 | $ (0.55) |
Acquisitions and License Agre70
Acquisitions and License Agreements (Schedule of Intangible Asset Amortization by Acquiree) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | $ 550.3 | $ 154.8 | $ 27.9 |
Total Acquisitions [Member] | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 521 | 120.8 | |
Ikaria | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 57.1 | 0 | |
Questcor Pharmaceuticals, Inc. | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 301.4 | 34.9 | |
Cadence Pharmaceuticals, Inc. | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 162.5 | 85.9 | |
Cost of Sales | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Amortization Of Inventory Step-Up To Cost Of Sales | $ 44.1 | $ 25.7 |
Restructuring and Related Cha71
Restructuring and Related Charges (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Property, plant and equipment asset impairment | $ 2.3 | |
Employee terminations | ||
Restructuring Cost and Reserve [Line Items] | ||
Accelerated share based compensation expense | $ 9.8 | 35.1 |
2013 Mallinckrodt program | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
2013 Mallinckrodt program expected cost range | 100 | |
2013 Mallinckrodt program | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
2013 Mallinckrodt program expected cost range | $ 125 | |
Consulting costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 8.5 |
Restructuring and Related Cha72
Restructuring and Related Charges (Schedule of Restructuring and Related Charges by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | $ 40.7 | $ 81.9 | $ 26.3 |
Less: accelerated depreciation | (0.3) | (0.5) | (2.6) |
Restructuring charges, net | 40.4 | 81.4 | 23.7 |
Specialty Brands [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | 36.5 | 57 | 5.2 |
Specialty Generics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | 4.5 | 9.8 | 11.2 |
Nuclear Imaging | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | (4.6) | 13.7 | 6.9 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | $ 4.3 | $ 1.4 | $ 3 |
Restructuring and Related Cha73
Restructuring and Related Charges (Schedule of Net Restructuring and Related Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | $ 40.7 | $ 81.9 | $ 26.3 |
Less: non-cash charges, including impairments and accelerated share based compensation expense | (10.1) | (38) | (2.6) |
Total charges expected to be settled in cash | 30.6 | 43.9 | 23.7 |
2013 Mallinckrodt program | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | 7.4 | 27.3 | 8.5 |
Acquisition programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | 33.6 | 56.4 | 0 |
Other programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | $ (0.3) | $ (1.8) | $ 17.8 |
Restructuring and Related Cha74
Restructuring and Related Charges (Schedule of Restructuring Reserves by Type of Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 34.9 | $ 25.5 | $ 8.9 | |
Charges | 40.7 | 57.2 | 26.1 | |
Changes in estimate from continuing operations | (10.1) | (13.3) | (2.4) | |
Cash payments | (44.3) | (55) | (15.1) | |
Reclassifications | [1] | (3) | (2.3) | (1.5) |
Currency translation | (0.6) | (1.1) | ||
Ending Balance | 18 | 34.9 | 25.5 | |
Discontinued Operations, Held-for-sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges, discontinued operations | 1 | 26.4 | 9.7 | |
Changes in estimate, discontinued operations | (0.6) | 2.5 | (0.2) | |
Acquisition programs | Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 7.9 | 0 | 0 | |
Charges | 25.3 | 22.9 | 0 | |
Changes in estimate from continuing operations | (1.5) | (1.6) | 0 | |
Cash payments | (21.7) | (13.4) | 0 | |
Reclassifications | [1] | 0 | 0 | 0 |
Currency translation | 0 | 0 | ||
Ending Balance | 10 | 7.9 | 0 | |
Acquisition programs | Discontinued Operations, Held-for-sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges, discontinued operations | 0 | 0 | 0 | |
Changes in estimate, discontinued operations | 0 | 0 | 0 | |
Other programs | Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0.4 | 10.6 | 8.9 | |
Charges | 0 | 1.4 | 17.6 | |
Changes in estimate from continuing operations | (0.3) | (4.1) | (2.4) | |
Cash payments | (0.1) | (6.8) | (15.1) | |
Reclassifications | [1] | 0 | (1) | (1.5) |
Currency translation | 0 | (0.1) | ||
Ending Balance | 0 | 0.4 | 10.6 | |
Other programs | Discontinued Operations, Held-for-sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges, discontinued operations | 0 | 1.1 | 3.3 | |
Changes in estimate, discontinued operations | 0 | 0.7 | (0.2) | |
2013 Mallinckrodt program | Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 26.6 | 14.9 | 0 | |
Charges | 15.4 | 32.9 | 8.5 | |
Changes in estimate from continuing operations | (8.3) | (7.6) | 0 | |
Cash payments | (22.5) | (34.8) | 0 | |
Reclassifications | [1] | (3) | (1.3) | 0 |
Currency translation | 0.6 | (1) | ||
Ending Balance | 8 | 26.6 | 14.9 | |
2013 Mallinckrodt program | Discontinued Operations, Held-for-sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges, discontinued operations | 1 | 25.3 | 6.4 | |
Changes in estimate, discontinued operations | $ (0.6) | $ 1.8 | $ 0 | |
[1] | Represents the reclassification of pension and other postretirement benefits from restructuring reserves to pension and postretirement obligations. |
Restructuring and Related Cha75
Restructuring and Related Charges (Schedule of Restructuring Charges Incurred Cumulative to Date) (Details) - 2013 Mallinckrodt program $ in Millions | Sep. 25, 2015USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | $ 96.9 |
Specialty Brands [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 4 |
Specialty Generics [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 15.6 |
Nuclear Imaging | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 67.3 |
Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | $ 10 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Income Taxes [Line Items] | |||||
Operating loss carryforward | $ 7 | $ 221.3 | |||
Tax credit carryforward | 16.3 | 8.6 | |||
Tax Credit Carryforward Utilization | 14.3 | ||||
Income Tax Holiday, Aggregate Dollar Amount | 5.1 | 0.3 | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | [1],[2] | (138.6) | (10.6) | $ 3.3 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 21.5 | $ 32.1 | $ 10 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 21.00% | 23.00% | |||
Increase (Decrease) Tax Benefit, Jurisdiction Rate Difference | 128 | $ 13.9 | |||
Increase (Decrease) Tax Expense (Benefit), Change in Operating Income | 35 | 10.8 | |||
Increase (Decrease) Tax Expense (Benefit) Due to Amortization of Intangible Assets | 22.5 | 14 | |||
Increase (Decrease) Foreign Tax Expense (Benefit) Due To Acquisitions | 31.8 | ||||
Increase (Decrease) Tax Expense (Benefit), Other | 62.2 | 38.7 | |||
Unrecognized tax benefits that would require cash remittance if not sustained | 89.2 | 82 | $ 100.1 | ||
Unrecognized tax benefits, which if favorably settled would benefit the effective tax rate | 87.4 | 82 | 96.3 | ||
Interest expense on unrecognized tax benefits | 5.7 | 7 | 2.4 | ||
Released tax interest | 9.3 | ||||
Interest accrued on unrecognized tax benefits | 41.7 | 45.1 | $ 62.1 | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 17.5 | ||||
Income tax penalties and interest accrued that would impact effective tax rate, upper bound of change | 8.8 | ||||
Tax payments associated with non-current deferred intercompany transactions | 52.2 | 14.8 | |||
Tax payments associate with current deferred intercompany transactions | 8.7 | 0.6 | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 81.3 | ||||
Deferred income taxes | 142.7 | 152.3 | |||
Deferred income taxes (non-current liability) | 3,132.4 | 2,399.6 | |||
Increase (decrease), deferred tax liability | 44 | ||||
Increase (Decrease), Deferred Tax Liability Due to Amortization of Intangible Assets | 54.3 | ||||
Deferred tax assets, tax credit carryforwards | 163.3 | 93.8 | |||
Deferred tax assets, valuation allowance | 233 | 76.9 | |||
Increase (decrease) deferred tax liability due to installment sale | 1,465.3 | 93.6 | |||
Deferred tax liabilities, intangible assets | 1,550.7 | 2,177.9 | |||
Deferred Tax Liabilities, Property, Plant and Equipment | 140.1 | 121.6 | |||
Deferred Tax Asset, Financing Payment | 20.2 | 32 | |||
Tax credit carryforwards, not subject to expiration | 3.1 | ||||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 369 | ||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 0.7 | ||||
Undistributed Earnings | 13.4 | ||||
Ikaria | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforward | 4.8 | ||||
Tax credit carryforward | 7.2 | ||||
Deferred Tax Liabilities, Net | 623.6 | ||||
Increase (decrease), deferred tax liability | 596.9 | ||||
Deferred tax liabilities, intangible assets | 620.2 | ||||
Deferred Tax Liabilities, Property, Plant and Equipment | 17.5 | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 21.7 | ||||
Deferred Tax Asset, Financing Payment | 13.1 | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 4.9 | ||||
Therakos | |||||
Income Taxes [Line Items] | |||||
Increase (decrease), deferred tax liability | 324.3 | ||||
Deferred tax liabilities, intangible assets | 334.1 | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 13.5 | ||||
Increase (Decrease), Deferred Tax Liability, Net | 324.3 | ||||
Cadence Pharmaceuticals, Inc. | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforward | 187.8 | ||||
Increase (decrease) deferred tax asset resulting from installment sale transaction | 105.4 | ||||
Questcor Pharmaceuticals, Inc. | |||||
Income Taxes [Line Items] | |||||
Increase (Decrease) In Prepaid Taxes, Installment Sale | $ 1.9 | ||||
Income Taxes Receivable | 60 | ||||
Increase (decrease) deferred tax liability due to installment sale | 1,515.9 | ||||
Increase (Decrease) Deferred Tax Charge, Installment Sale | 25.3 | ||||
Increase (Decrease) in Deferred Tax Liability, Intangible Assets | $ 1,488.7 | ||||
Internal Revenue Service (IRS) | |||||
Income Taxes [Line Items] | |||||
Advance payment in connection with proposed settlements of certain tax matters | 8.9 | ||||
Advance payment in connection with proposed settlement of certain tax matters, tax payment | 7.4 | ||||
Advance payment in connection with proposed settlement of certain tax matters, interest payment | $ 1.5 | ||||
Internal Revenue Service (IRS) | Covidien | |||||
Income Taxes [Line Items] | |||||
Advance payment in connection with proposed settlements of certain tax matters | 35.9 | ||||
Advance payment in connection with proposed settlement of certain tax matters, tax payment | 27.3 | ||||
Advance payment in connection with proposed settlement of certain tax matters, interest payment | $ 8.6 | ||||
U.S. - Federal and State | |||||
Income Taxes [Line Items] | |||||
Tax years that remain subject to examination | 1,996 | ||||
Operating loss carryforwards, subject to expiration | $ 19.6 | ||||
IRELAND | |||||
Income Taxes [Line Items] | |||||
Tax years that remain subject to examination | 2,009 | ||||
Foreign Tax Authority | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | $ 126 | ||||
Operating loss carryforwards, not subject to expiration | 91.4 | ||||
Operating loss carryforwards, subject to expiration | 34.6 | ||||
Discontinued Operations, Held-for-sale | |||||
Income Taxes [Line Items] | |||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 6.5 | ||||
Undistributed Earnings | $ 41.3 | ||||
[1] | Fiscal year 2013 includes impact of items relating to entities retained by Covidien in connection with the Separation. | ||||
[2] | Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Operating Loss Carryforwards [Line Items] | ||||
Domestic | [1] | $ (107) | $ (159.9) | $ 34.7 |
International | [1] | 322.3 | 6 | 21 |
Income (loss) from continuing operations before income taxes | [1] | $ 215.3 | $ (153.9) | $ 55.7 |
[1] | Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. |
Income Taxes (Schedule of Signi
Income Taxes (Schedule of Significant Components of Income Taxes Related to Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Current: | ||||
Domestic | [1] | $ 0.3 | $ 40.9 | $ 49.3 |
International | [1] | 95.1 | 17.9 | 12.1 |
Current income tax provision | [1] | 95.4 | 58.8 | 61.4 |
Deferred: | ||||
Domestic | [1] | (0.8) | (49.7) | (18.3) |
International | [1] | (187.5) | (19.2) | 4.4 |
Deferred income tax (benefit) provision | [1] | (188.3) | (68.9) | (13.9) |
Provision for (benefit from) income taxes | [1] | $ (92.9) | $ (10.1) | $ 47.5 |
[1] | Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Income Taxes at Statutory Rate and Tax Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Sep. 26, 2014 | Sep. 28, 2012 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |||||
Income Taxes [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 20.00% | 35.00% | 35.00% | |||||||
Provision for income taxes at Domestic statutory income tax rate (1) | [1] | $ 43.1 | $ (53.8) | $ 19.5 | ||||||
Adjustments to reconcile to income tax provision: | ||||||||||
Rate difference between non-U.S. and U.S. jurisdictions | [2],[3] | (138.6) | (10.6) | 3.3 | ||||||
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount | [4] | 0 | (4.1) | (2.5) | ||||||
Valuation allowances, nonrecurring | (2.1) | 0.1 | 3.4 | |||||||
Adjustments to accrued income tax liabilities and uncertain tax positions | [2] | (6.8) | (1.5) | 5 | ||||||
Interest and penalties on accrued income tax liabilities and uncertain tax positions | [2] | 0.2 | (7.9) | 4.7 | ||||||
Investment in partnership | 0 | 20 | 0 | |||||||
Credits, principally research | $ (0.7) | $ (3.6) | $ (2.3) | (8.1) | [5] | (0.8) | [5] | (6.3) | [5] | |
Impairments, nondeductible | 0 | 41.8 | 0 | |||||||
Permanently nondeductible and nontaxable items | [6] | 16.4 | 13.8 | 15.3 | ||||||
Other | 3 | (1) | 1.4 | |||||||
Provision for (benefit from) income taxes | [7] | (92.9) | (10.1) | 47.5 | ||||||
Current State and Local Tax Expense (Benefit) | [4] | $ 0 | $ (6.1) | $ 3.7 | ||||||
[1] | The statutory tax rate reflects the U.K. statutory tax rate of 20% for fiscal 2015, and the U.S. federal statutory tax rate of 35% for fiscal 2014 and 2013. | |||||||||
[2] | Fiscal year 2013 includes impact of items relating to entities retained by Covidien in connection with the Separation. | |||||||||
[3] | Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. | |||||||||
[4] | For fiscal 2015, U.S. state income tax benefit of $36.4 million, and U.S. manufacturing deduction tax benefit of $5.6 million were combined with the rate differences between Domestic and International jurisdictions. Fiscal 2014 includes U.S. state income tax benefit of $4.4 million associated with fiscal 2014 acquisitions and integration thereof. | |||||||||
[5] | During fiscal 2013, the U.S. Research Credit legislation was extended, with a retroactive effective date of January 1, 2012. As such, fiscal 2013 includes approximately $2.3 million of credit related to the period January 1, 2012 through September 28, 2012. Due to the December 31, 2013 tax law expiration, fiscal 2014 includes $0.7 million for the period September 28, 2013 through December 31, 2013. During fiscal 2015, the legislation was extended, with a retroactive effective date of January 1, 2014. As such, fiscal 2015 includes approximately $3.6 million of credit related to the period January 1, 2014 through September 26, 2014. | |||||||||
[6] | Includes the impact of nondeductible transaction and separation costs. | |||||||||
[7] | Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefit Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of fiscal year | $ 82 | $ 100.1 | $ 165.5 |
Unrecognized tax benefits retained by Covidien | 0 | 0 | (153.7) |
Unrecognized tax benefits transferred from Covidien | 0 | 0 | 84.2 |
Additions related to current year tax positions | 4.5 | 3.2 | 3.5 |
Additions related to prior period tax positions | 19.9 | 30.6 | 6.6 |
Reductions related to prior period tax positions | (7.7) | (33) | (4.3) |
Settlements | (7.8) | (6.9) | (1.6) |
Lapse of statute of limitations | (1.7) | (12) | (0.1) |
Balance at end of fiscal year | $ 89.2 | $ 82 | $ 100.1 |
Income Taxes (Schedule of Unr81
Income Taxes (Schedule of Unrecognized Tax Benefits Balance Sheet Location) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 89.2 | $ 82 | $ 100.1 | $ 165.5 |
Accrued and Other Current Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 1.3 | 6.5 | ||
Other Income Tax Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 80 | 70.7 | ||
Deferred income tax liability (non-current) | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 7.9 | 4.8 | ||
Liabilities, Total | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 89.2 | $ 82 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Taxes Payable) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Operating Loss Carryforwards [Line Items] | ||
Total income taxes payable | $ 141.1 | $ 135.7 |
Accrued and Other Current Liabilities | ||
Operating Loss Carryforwards [Line Items] | ||
Accrued and other current liabilities | 19.8 | 13.1 |
Other Income Tax Liabilities | ||
Operating Loss Carryforwards [Line Items] | ||
Other income tax liabilities | $ 121.3 | $ 122.6 |
Income Taxes (Schedule of Inc83
Income Taxes (Schedule of Income Tax Receivables and Other Assets) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Income Tax Disclosure [Abstract] | ||
Other assets | $ 52.2 | $ 14.8 |
Prepaid expenses and other current assets | 90 | 63.4 |
Total | $ 142.2 | $ 78.2 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Taxes Activity) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Deferred tax assets: | ||
Accrued liabilities and reserves | $ 92.5 | $ 68.9 |
Inventories | 23.2 | 21.4 |
Tax loss and credit carryforwards | 163.3 | 93.8 |
Environmental liabilities | 23.6 | 29.5 |
Rebate reserves | 48.5 | 41.1 |
Expired product | 26.3 | 39 |
Postretirement benefits | 33.8 | 34.5 |
Federal and state benefit of uncertain tax positions and interest | 33.6 | 29.5 |
Share-based compensation | 18.9 | 28.1 |
Other | 20.2 | 32 |
Total deferred tax assets, gross | 589.6 | 427.4 |
Deferred Tax Assets, Goodwill and Intangible Assets | 105.7 | 9.6 |
Deferred tax liabilities: | ||
Property, plant and equipment | (140.1) | (121.6) |
Intangible assets | (1,550.7) | (2,177.9) |
Installment sale | (1,465.3) | (93.6) |
Investment in partnership | (187.9) | (191.3) |
Total deferred tax liabilities, gross | (3,344) | (2,584.4) |
Net deferred tax (liability) before valuation allowances | (2,754.4) | (2,157) |
Valuation allowances | (233) | (76.9) |
Net deferred tax (liability) | $ (2,987.4) | $ (2,233.9) |
Income Taxes (Schedule of Def85
Income Taxes (Schedule of Deferred Taxes Balance Sheet Location) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Income Tax Disclosure [Abstract] | ||
Deferred income taxes (current asset) | $ 142.7 | $ 152.3 |
Other non-current assets | 7 | 13.4 |
Accrued and other current liabilities | (4.7) | 0 |
Deferred income taxes (non-current liability) | (3,132.4) | (2,399.6) |
Net deferred tax (liability) | $ (2,987.4) | $ (2,233.9) |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) shares in Millions | 12 Months Ended | |||
Sep. 25, 2015shares | Sep. 26, 2014shares | Sep. 27, 2013shares | Jun. 28, 2013 | |
Earnings (Loss) per Share [Abstract] | ||||
Distribution ratio | 0.125 | 0.125 | ||
Weighted-average shares for basic earnings (loss) per share (in shares) | 115.8 | 64.9 | 57.7 | |
Weighted Average Number of Shares Outstanding, Diluted | 1.4 | 0 | 0.1 | |
Weighted-average shares for diluted earnings (loss) per share (in shares) | 117.2 | 64.9 | 57.8 | |
Antidilutive securities excluded from weighted-average shares (in shares) | 0.1 | 5.7 | 0.5 |
Earnings (Loss) per Share Sched
Earnings (Loss) per Share Schedule of Earnings per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Income (loss) from continuing operations | $ 90 | $ 55.6 | $ 75.2 | $ 87.4 | $ (173.5) | $ (29) | $ 20.2 | $ 38.5 | $ 308.2 | $ (143.8) | $ 8.2 | ||||||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 2.5 | 0 | 0 | ||||||||||||||||
Income (Loss) From Continuing Operations Attributable To Common Stockholders | 305.7 | (143.8) | 8.2 | ||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ (14.8) | $ 2.4 | $ 23.6 | $ 5.3 | $ (178.9) | $ 4.9 | $ (8.6) | $ 7.1 | 16.5 | (175.5) | 50.6 | ||||||||
Income (Loss) From Discontinued Operations Attributable To Common Stockholders | 0.1 | 0 | 0 | ||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 16.4 | (175.5) | 50.6 | ||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 322.1 | $ (319.3) | $ 58.8 | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 115.8 | 64.9 | 57.7 | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 1.4 | 0 | 0.1 | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 117.2 | 64.9 | 57.8 | ||||||||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.77 | [1] | $ 0.47 | [1] | $ 0.64 | [1] | $ 0.75 | [1] | $ (2.04) | [1] | $ (0.50) | [1] | $ 0.35 | [1] | $ 0.67 | [1] | $ 2.64 | $ (2.22) | $ 0.14 |
Earnings Per Share, Basic | 0.14 | (2.70) | 0.88 | ||||||||||||||||
Earnings Per Share, Basic | 2.78 | (4.92) | 1.02 | ||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.76 | [1] | $ 0.47 | [1] | $ 0.64 | [1] | $ 0.74 | [1] | $ (2.04) | [1] | $ (0.50) | [1] | $ 0.34 | [1] | $ 0.66 | [1] | 2.61 | (2.22) | 0.14 |
Earnings Per Share, Diluted | 0.14 | (2.70) | 0.88 | ||||||||||||||||
Earnings Per Share, Diluted | $ 2.75 | $ (4.92) | $ 1.02 | ||||||||||||||||
[1] | Quarterly and annual computations are prepared independently. Therefore, the sum of each quarter may not necessarily total the fiscal period amounts noted elsewhere within this Annual Report on Form 10-K. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 66.3 | $ 57.5 |
Work in process | 124.2 | 184.7 |
Finished goods | 91.3 | 64.2 |
Inventories | $ 281.8 | $ 306.4 |
Property, Plant and Equipment89
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,870.6 | $ 1,669 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 879.3 | 782.2 | |
Depreciation | 103.9 | $ 94.7 | $ 88.1 |
Weighted Average Cost of Capital, Rate | 8.00% | ||
Property Under Capital Lease | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 14.8 | $ 16.9 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 14.6 | 15.8 | |
Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets | 65.9 | ||
Finite-lived intangible ssets | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets | 52.4 | ||
Contrast Media and Delivery Systems | Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 51.4 | ||
Contrast Media and Delivery Systems | Finite-lived intangible ssets | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | $ 52.4 |
Property, Plant and Equipment90
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,870.6 | $ 1,669 |
Less: accumulated depreciation | (879.3) | (782.2) |
Property, plant and equipment, net | 991.3 | 886.8 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 49.8 | 47.3 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 333.7 | 289.4 |
Capitalized Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 120.2 | 94.5 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,220 | 1,041.6 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 146.9 | $ 196.2 |
Goodwill and Intangible Asset91
Goodwill and Intangible Assets Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | Apr. 16, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization | $ 550.3 | $ 154.8 | $ 27.9 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, Period Increase (Decrease) | 1,247.5 | |||
Weighted Average Cost of Capital, Rate | 8.00% | |||
Goodwill, Impaired, Accumulated Impairment Loss | 119.5 | $ 119.5 | ||
Goodwill | $ 3,649.4 | 2,401.9 | ||
Brands | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Cost of Capital, Rate | 12.00% | |||
Generics and API | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Cost of Capital, Rate | 11.00% | |||
Global Medical Imaging | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 219.7 | |||
Global Medical Imaging | Contrast Media and Delivery Systems | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 100.2 | |||
Ikaria | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization | $ 57.1 | $ 0 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 792.4 |
Goodwill and Intangible Asset92
Goodwill and Intangible Assets (Schedule Of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 25, 2015 | Apr. 16, 2015 | Sep. 26, 2014 | Aug. 14, 2014 | |
Goodwill [Line Items] | ||||
Goodwill, Period Increase (Decrease) | $ 1,247.5 | |||
Goodwill | 3,649.4 | $ 2,401.9 | ||
Goodwill, Gross | 3,768.9 | 2,521.4 | ||
Goodwill, Impaired, Accumulated Impairment Loss | (119.5) | (119.5) | ||
Specialty Brands [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 3,442.4 | 2,194.9 | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | ||
Specialty Generics [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 207 | 207 | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | ||
Global Medical Imaging | ||||
Goodwill [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | (219.7) | |||
Nuclear Imaging | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 119.5 | 119.5 | ||
Goodwill, Impaired, Accumulated Impairment Loss | (119.5) | $ (119.5) | ||
Ikaria | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 792.4 | |||
Therakos | ||||
Goodwill [Line Items] | ||||
Goodwill | 437.2 | |||
Questcor Pharmaceuticals, Inc. | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 1,789.4 | |||
Goodwill, Purchase Accounting Adjustments | $ 17.9 |
Goodwill and Intangible Asset93
Goodwill and Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Amortizable: | ||
Finite-lived intangible assets, gross | $ 10,198 | $ 7,144.6 |
Accumulated amortization | 882.9 | 332.6 |
Non-Amortizable: | ||
Indefinite-lived intangible assets, gross | 351.2 | 270.2 |
Trademarks | ||
Non-Amortizable: | ||
Indefinite-lived intangible assets, gross | 35 | 35 |
In-process research and development | ||
Non-Amortizable: | ||
Indefinite-lived intangible assets, gross | 316.2 | 235.2 |
Completed Technology | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 9,896 | 6,906 |
Accumulated amortization | 765.8 | 235.6 |
Licensing Agreements | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 185.1 | 185.1 |
Accumulated amortization | 99.8 | 87.3 |
Customer relationships | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 28.1 | 33.8 |
Accumulated amortization | 4.4 | 0.6 |
Trademarks | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 82.1 | 13 |
Accumulated amortization | 6.2 | 4.1 |
Other | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 6.7 | 6.7 |
Accumulated amortization | $ 6.7 | $ 5 |
Goodwill and Intangible Asset94
Goodwill and Intangible Assets (Schedule of Future Amortization Expense, Intangible Assets) (Details) $ in Millions | Sep. 25, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2,016 | $ 693.7 |
Fiscal 2,017 | 691.9 |
Fiscal 2,018 | 682.9 |
Fiscal 2,019 | 682.6 |
Fiscal 2,020 | $ 682 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Sep. 24, 2015 | Apr. 15, 2015 | Mar. 19, 2014 | Apr. 30, 2013 | Sep. 25, 2015 | Aug. 28, 2015 | Jan. 20, 2015 | Aug. 31, 2014 | Aug. 14, 2014 | Jul. 28, 2014 |
Term loan due March 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Frequency of interest payment | 90 days | |||||||||
Debt instrument, unamortized discount | $ 3,300,000 | |||||||||
Quarterly amortization payments | 0.00% | |||||||||
Debt instrument, discount percentage | 0.25% | |||||||||
2015 Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings, outstanding | $ 500,000,000 | |||||||||
New Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||
2023 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||
Prior To April 15, 2018 | 2025 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | 40.00% | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||||
Revolving Credit Facility | Term loan due March 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Provision for other credit losses | 150,000,000 | |||||||||
Facility fees for letters of credit | 0.275% | |||||||||
Interest rate during period | 2.60% | |||||||||
2015 Replacement Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||||
2015 Incremental Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 250,000,000 | |||||||||
2015 Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||||
Debentures | 2020 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||
Stated interest rate | 4.875% | |||||||||
Debentures | 2023 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||
Stated interest rate | 5.625% | |||||||||
Debentures | 2025 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||
Stated interest rate | 5.50% | |||||||||
Prior To April 15, 2017 | 2023 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | 40.00% | |||||||||
Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings, outstanding | $ 0 | |||||||||
Senior Notes | 3.50% notes due April 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||
Stated interest rate | 3.50% | |||||||||
Senior Notes | 4.75% notes due April 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||
Stated interest rate | 4.75% | |||||||||
Senior Notes | Unsecured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate net proceeds | $ 889,300,000 | |||||||||
Senior Notes | 5.75% notes due August 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 900,000,000 | |||||||||
Stated interest rate | 5.75% | |||||||||
Secured Debt | Term loan due March 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 1,300,000,000 | |||||||||
Interest rate during period | 3.25% | |||||||||
Secured Debt | Variable rate receivable securitization | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 160,000,000 | |||||||||
Maximum borrowing capacity | $ 250,000,000 | $ 160,000,000 | ||||||||
Line Of Credit Facility, Future Contingent Maximum Borrowing Capacity | $ 300,000,000 | |||||||||
Facility fees for letters of credit | 0.35% | |||||||||
Variable interest rate | 0.80% | |||||||||
Interest rate during period | 0.99% | |||||||||
Variable rate receivable securitization | $ 153,000,000 | |||||||||
Secured Debt | New Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Periodic Payment, Percentage of Principal | 0.25% | |||||||||
Interest rate during period | 3.50% | |||||||||
Secured Debt | Term Loan and New Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 1,978,500,000 | |||||||||
Prior to August 1, 2017 | 5.75% notes due August 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | 40.00% | |||||||||
Option A | 5.75% notes due August 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase percentage | 101.00% | |||||||||
Option A | 2023 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase percentage | 101.00% | |||||||||
Option A | 2025 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase percentage | 101.00% | |||||||||
Option B | 5.75% notes due August 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase percentage | 100.00% | |||||||||
Option B | 2023 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase percentage | 100.00% | |||||||||
Option B | 2025 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase percentage | 100.00% | |||||||||
LIBOR | Term loan due March 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 0.75% | |||||||||
Letter of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings, outstanding | $ 0 |
Debt (Schedule of Long term deb
Debt (Schedule of Long term debt and Capital lease obligation) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Current maturities of long-term debt: | ||
Long-term Debt, Current Maturities | $ 22.3 | $ 21.2 |
Capital lease obligation and vendor financing agreements | 1.3 | 1.4 |
Long-term debt: | ||
Long-term Debt, Gross | 6,584.2 | 3,959.6 |
Unamortized Debt Issuance Expense and Discount | 109.9 | 85.6 |
Capital Lease Obligations, Noncurrent | 1 | 0.4 |
Debt, Long-term and Short-term, Combined Amount | 6,606.5 | 3,980.8 |
Variable rate receivable securitization | ||
Long-term debt: | ||
Long-term Debt, Gross | 153 | 150 |
Unamortized Debt Issuance Expense and Discount | 0.8 | 1 |
Senior Notes | 3.50% notes due April 2018 | ||
Long-term debt: | ||
Long-term Debt, Gross | 300 | 300 |
Unamortized Debt Issuance Expense and Discount | 1.7 | 2.4 |
Senior Notes | 4.75% notes due April 2023 | ||
Long-term debt: | ||
Long-term Debt, Gross | 600 | 600 |
Unamortized Debt Issuance Expense and Discount | 7.1 | 7.9 |
Senior Notes | 2020 Notes | ||
Long-term debt: | ||
Long-term Debt, Gross | 700 | |
Unamortized Debt Issuance Expense and Discount | 11.3 | |
Senior Notes | 5.75% notes due August 2022 | ||
Long-term debt: | ||
Long-term Debt, Gross | 900 | 900 |
Unamortized Debt Issuance Expense and Discount | 14.4 | 16.4 |
Senior Notes | 5.625% notes due October 2023 | ||
Long-term debt: | ||
Long-term Debt, Gross | 750 | 0 |
Unamortized Debt Issuance Expense and Discount | 13.7 | 0 |
Senior Notes | 5.50% notes due April 2025 | ||
Long-term debt: | ||
Long-term Debt, Gross | 700 | 0 |
Unamortized Debt Issuance Expense and Discount | 11.9 | 0 |
Secured Debt | 2.85% term loan due April 2016 | ||
Current maturities of long-term debt: | ||
Long-term Debt, Current Maturities | 0 | 0.4 |
Long-term debt: | ||
Long-term Debt, Gross | 0 | 2.7 |
Unamortized Debt Issuance Expense and Discount | 0 | 0 |
Secured Debt | Term loans due March 2021 | ||
Current maturities of long-term debt: | ||
Long-term Debt, Current Maturities | 20 | 18.2 |
Long-term debt: | ||
Long-term Debt, Gross | 1,958.5 | 1,978.5 |
Unamortized Debt Issuance Expense and Discount | 44.1 | 52.4 |
Secured Debt | 4.00% term loan due February 2022 | ||
Current maturities of long-term debt: | ||
Long-term Debt, Current Maturities | 1 | 1.2 |
Long-term debt: | ||
Long-term Debt, Gross | 6.9 | 9.6 |
Unamortized Debt Issuance Expense and Discount | 0 | 0 |
Debentures | 8.00% debentures due March 2023 | ||
Long-term debt: | ||
Long-term Debt, Gross | 4.4 | 8 |
Unamortized Debt Issuance Expense and Discount | 0 | 0 |
Debentures | 9.50% debentures due May 2022 | ||
Long-term debt: | ||
Long-term Debt, Gross | 10.4 | 10.4 |
Unamortized Debt Issuance Expense and Discount | 0 | 0 |
2015 Revolving Credit Facility | ||
Long-term debt: | ||
Long-term Debt, Gross | 500 | 0 |
Unamortized Debt Issuance Expense and Discount | 4.9 | 5.5 |
Capital Lease Obligations | ||
Long-term debt: | ||
Unamortized Debt Issuance Expense and Discount | $ 0 | $ 0 |
Debt (Schedule of Maturities of
Debt (Schedule of Maturities of Long-term Debt including Capital Lease Obligation) (Details) $ in Millions | Sep. 25, 2015USD ($) |
Debt Disclosure [Abstract] | |
Fiscal 2,016 | $ 22.3 |
Fiscal 2,017 | 175 |
Fiscal 2,018 | 321.2 |
Fiscal 2,019 | 521.2 |
Fiscal 2,020 | $ 721.2 |
Retirement Plans Narrative (Det
Retirement Plans Narrative (Details) $ in Millions | 12 Months Ended | |
Sep. 25, 2015USD ($)contract | Sep. 26, 2014USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of Life Insurance Contract Held in Rabbi Trust | contract | 134 | |
Deferred Compensation Plan Assets | $ 57.9 | $ 56.3 |
Deferred Compensation Plan Assets, Death Benefit on Insurance Contracts | 147.3 | 145.7 |
Deferred Compensation Plan Assets, Loans Outstanding Against Insurance Contracts | 40.4 | 38.2 |
Non-U.S. Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Deferred Compensation Plan Assets, Collateral For Plan Benefits | 9.8 | $ 11 |
Moody's, Aa1 Rating [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Lower Threshold for Discount Rate Basis, Corporate Bonds | $ 250 |
Retirement Plans (Schedule of N
Retirement Plans (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4.5 | $ 5.1 | $ 5 |
Interest cost | 17.5 | 19.6 | 18.2 |
Expected return on plan assets | (22.6) | (24.6) | (29.6) |
Amortization of net actuarial loss | 9.4 | 8.1 | 12.3 |
Amortization of prior service cost | (0.6) | (0.6) | 0.6 |
Loss on plan settlements | 6 | 3.8 | 6.8 |
Net period benefit cost (credit) | $ 14.2 | 11.4 | 13.3 |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of total pension plan assets | 70.60% | ||
Allocation of total projected benefit obligation | 73.10% | ||
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.1 | 0.1 | 0.1 |
Interest cost | 1.9 | 2.1 | 2.4 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 0.3 |
Amortization of prior service cost | (4) | (9.3) | (9.1) |
Loss on plan settlements | 0 | 0 | 0 |
Net period benefit cost (credit) | $ (2) | $ (7.1) | $ (6.3) |
Retirement Plans (Schedule of B
Retirement Plans (Schedule of Benefit Obligation, Plan Assets and Funded Status of Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligations at beginning of year | $ 538.4 | $ 501.7 | |
Service cost | 4.5 | 5.1 | $ 5 |
Interest cost | 17.5 | 19.6 | 18.2 |
Employee contributions | 0.6 | 0.6 | |
Actuarial (gain) loss | (4.5) | 60 | |
Benefits and administrative expenses paid | (21.1) | (21.9) | |
Plan settlements | (23.6) | (17.6) | |
Net transfer in/(out) | 0.6 | 0 | |
Currency translation | (18.9) | (9.1) | |
Projected benefit obligations at end of year | 493.5 | 538.4 | 501.7 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 473.6 | 456 | |
Actual return on plan assets | 12.5 | 59.7 | |
Employer contributions | 13 | 4.9 | |
Employee contributions | 0.6 | 0.6 | |
Benefits and administrative expenses paid | (21.1) | (21.9) | |
Plan settlements | (23.6) | (17.6) | |
Currency translation | (17.1) | (8.1) | |
Fair value of plan assets at end of year | 437.9 | 473.6 | 456 |
Funded status at end of year | (55.6) | (64.8) | |
Postretirement Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligations at beginning of year | 52 | 53.2 | |
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 1.9 | 2.1 | 2.4 |
Employee contributions | 0 | 0 | |
Actuarial (gain) loss | 2.1 | 0.5 | |
Benefits and administrative expenses paid | (3.9) | (3.9) | |
Plan settlements | 0 | 0 | |
Net transfer in/(out) | 0 | 0 | |
Currency translation | 0 | 0 | |
Projected benefit obligations at end of year | 52.2 | 52 | 53.2 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 3.9 | 3.9 | |
Employee contributions | 0 | 0 | |
Benefits and administrative expenses paid | (3.9) | (3.9) | |
Plan settlements | 0 | 0 | |
Currency translation | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (52.2) | $ (52) |
Retirement Plans (Schedule of A
Retirement Plans (Schedule of Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Amounts recognized on the consolidated balance sheet: | ||
Non-current liabilities | $ (116.7) | $ (116.2) |
Pension Benefits | ||
Amounts recognized on the consolidated balance sheet: | ||
Non-current assets | 20.1 | 9.8 |
Current liabilities | (6.6) | (2.7) |
Non-current liabilities | (69.1) | (71.9) |
Net amount recognized on the consolidated balance sheet | (55.6) | (64.8) |
Amounts recognized in accumulated other comprehensive income consist of: | ||
Net actuarial loss | (104.1) | (115.1) |
Prior service credit | 5.5 | 6.9 |
Net amount recognized in accumulated other comprehensive income | (98.6) | (108.2) |
Postretirement Benefits | ||
Amounts recognized on the consolidated balance sheet: | ||
Non-current assets | 0 | 0 |
Current liabilities | (4.6) | (4.8) |
Non-current liabilities | (47.6) | (47.2) |
Net amount recognized on the consolidated balance sheet | (52.2) | (52) |
Amounts recognized in accumulated other comprehensive income consist of: | ||
Net actuarial loss | (5.1) | (2.9) |
Prior service credit | 14.9 | 18.8 |
Net amount recognized in accumulated other comprehensive income | $ 9.8 | $ 15.9 |
Retirement Plans (Schedule o102
Retirement Plans (Schedule of Amounts to be Amortized From Accumulated Other Comprehensive Income) (Details) $ in Millions | 12 Months Ended |
Sep. 25, 2015USD ($) | |
Pension Benefits | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |
Amortization of net actuarial loss | $ 10.8 |
Amortization of prior service cost | (0.5) |
Postretirement Benefits | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |
Amortization of net actuarial loss | 0 |
Amortization of prior service cost | $ (2.1) |
Retirement Plans (Schedule of P
Retirement Plans (Schedule of Plans with Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Accumulated benefit obligation | $ 489.4 | $ 533.6 |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||
Accumulated benefit obligation | 368.8 | 394.7 |
Fair value of plan assets | $ 294.1 | $ 321.6 |
Retirement Plans (Schedule o104
Retirement Plans (Schedule of Actuarial Assumptions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Effect of One-Percentage Point Change in Assumed Healthcare Cost Trend Rates | |||
One-Percentage-Point Increase, effect on total of service and interest cost | $ 0 | ||
One-Percentage-Point Decrease, effect on total of service and interest cost | 0 | ||
One-Percentage-Point Increase, effect on postretirement benefit obligation | 0.8 | ||
One-Percentage-Point Decrease, effect on postretirement obligation | $ (0.7) | ||
U.S. Plans | |||
Weighted Average-Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 3.80% | 4.20% | 3.50% |
Expected return on plan assets | 6.00% | 6.50% | 7.90% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | |||
Discount rate | 3.90% | 3.90% | 4.30% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Non-U.S. Plans | |||
Weighted Average-Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 2.50% | 3.50% | 4.00% |
Expected return on plan assets | 2.90% | 3.10% | 3.50% |
Rate of compensation increase | 3.20% | 3.50% | 3.70% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | |||
Discount rate | 2.50% | 2.50% | 3.70% |
Rate of compensation increase | 3.60% | 3.40% | 3.50% |
Postretirement Benefits | |||
Weighted Average-Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 3.60% | 4.00% | 3.20% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | |||
Discount rate | 3.90% | 3.70% | 4.00% |
Healthcare Cost Trend Assumptions | |||
Healthcare cost trend rate assumed for next fiscal year | 7.10% | 7.10% | |
Rate to which the cost trend rate is assumed to decline | 4.50% | 4.50% | |
Fiscal year the ultimate trend rate is achieved | 2,029 | 2,029 |
Retirement Plans (Schedule of W
Retirement Plans (Schedule of Weighted Average Allocation of Plan Assets) (Details) | 12 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 100.00% | 100.00% |
U.S. Plans | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, target plan asset allocation | 24.00% | |
Pension plans, weighted-average plan asset allocation | 27.00% | 28.00% |
U.S. Plans | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, target plan asset allocation | 76.00% | |
Pension plans, weighted-average plan asset allocation | 70.00% | 70.00% |
U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 3.00% | 1.00% |
U.S. Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 0.00% | 1.00% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 100.00% | 100.00% |
Non-U.S. Plans | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 6.00% | 8.00% |
Non-U.S. Plans | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 1.00% | 2.00% |
Non-U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 0.00% | 0.00% |
Non-U.S. Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 93.00% | 90.00% |
Non-U.S. Plans | Japan | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, target plan asset allocation | 39.00% | |
Non-U.S. Plans | Japan | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, target plan asset allocation | 55.00% | |
Non-U.S. Plans | Japan | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, target plan asset allocation | 6.00% | |
Non-U.S. Plans | Netherlands | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, target plan asset allocation | 10.00% | |
Non-U.S. Plans | Netherlands | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, target plan asset allocation | 2.00% | |
Non-U.S. Plans | Netherlands | Insurance Contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, target plan asset allocation | 88.00% |
Retirement Plans (Schedule of F
Retirement Plans (Schedule of Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | ||
Insurance Contract | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 119.8 | $ 112 | |
Net unrealized gains | 12.2 | 15.5 | |
Net purchases, sales and issuances | (0.1) | (0.6) | |
Currency translation | (15.2) | (7.1) | |
Fair value of plan assets at end of year | 116.7 | 119.8 | |
Recurring | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 473.6 | ||
Fair value of plan assets at end of year | 437.9 | 473.6 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 337.2 | ||
Fair value of plan assets at end of year | 309 | 337.2 | |
Recurring | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 16.6 | ||
Fair value of plan assets at end of year | 12.2 | 16.6 | |
Recurring | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 119.8 | ||
Fair value of plan assets at end of year | 116.7 | 119.8 | |
Recurring | U.S. Small Mid Cap | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 16.6 | ||
Fair value of plan assets at end of year | 15.1 | 16.6 | |
Recurring | U.S. Small Mid Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 16.6 | ||
Fair value of plan assets at end of year | 15.1 | 16.6 | |
Recurring | U.S. Small Mid Cap | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | U.S. Small Mid Cap | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | U.S. Large Cap | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 50.2 | ||
Fair value of plan assets at end of year | 46.2 | 50.2 | |
Recurring | U.S. Large Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 50.2 | ||
Fair value of plan assets at end of year | 46.2 | 50.2 | |
Recurring | U.S. Large Cap | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | U.S. Large Cap | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | International | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 39.8 | ||
Fair value of plan assets at end of year | 31 | 39.8 | |
Recurring | International | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 28.7 | ||
Fair value of plan assets at end of year | 22.7 | 28.7 | |
Recurring | International | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 11.1 | ||
Fair value of plan assets at end of year | 8.3 | 11.1 | |
Recurring | International | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | Diversified Fixed Income Funds | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | [1] | 218.7 | |
Fair value of plan assets at end of year | [1] | 198.4 | 218.7 |
Recurring | Diversified Fixed Income Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | [1] | 216.6 | |
Fair value of plan assets at end of year | [1] | 196.9 | 216.6 |
Recurring | Diversified Fixed Income Funds | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | [1] | 2.1 | |
Fair value of plan assets at end of year | [1] | 1.5 | 2.1 |
Recurring | Diversified Fixed Income Funds | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | [1] | 0 | |
Fair value of plan assets at end of year | [1] | 0 | 0 |
Recurring | High Yield Bonds | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 13 | ||
Fair value of plan assets at end of year | 11.3 | 13 | |
Recurring | High Yield Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 13 | ||
Fair value of plan assets at end of year | 11.3 | 13 | |
Recurring | High Yield Bonds | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | High Yield Bonds | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | Emerging Market Fund | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 9.5 | ||
Fair value of plan assets at end of year | 7.4 | 9.5 | |
Recurring | Emerging Market Fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 9.5 | ||
Fair value of plan assets at end of year | 7.4 | 9.5 | |
Recurring | Emerging Market Fund | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | Emerging Market Fund | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | Insurance Contract | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 119.8 | ||
Fair value of plan assets at end of year | 116.7 | 119.8 | |
Recurring | Insurance Contract | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | Insurance Contract | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Recurring | Insurance Contract | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 119.8 | ||
Fair value of plan assets at end of year | 116.7 | 119.8 | |
Recurring | Other | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 6 | ||
Fair value of plan assets at end of year | 11.8 | 6 | |
Recurring | Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2.6 | ||
Fair value of plan assets at end of year | 9.4 | 2.6 | |
Recurring | Other | Significant Other Observable Inputs (Level 2) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 3.4 | ||
Fair value of plan assets at end of year | 2.4 | 3.4 | |
Recurring | Other | Significant Unobservable Inputs (Level 3) | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | $ 0 | $ 0 | |
[1] | Diversified fixed income funds consist of U.S. Treasury bonds, mortgage-backed securities, corporate bonds, asset-backed securities and U.S. agency bonds. |
Retirement Plans (Schedule of E
Retirement Plans (Schedule of Expected Benefit Payments) (Details) $ in Millions | Sep. 25, 2015USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2,016 | $ 40 |
Fiscal 2,017 | 33.6 |
Fiscal 2,018 | 33 |
Fiscal 2,019 | 32.6 |
Fiscal 2,020 | 31.4 |
Fiscal 2021-2025 | 143.9 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2,016 | 4.6 |
Fiscal 2,017 | 4.3 |
Fiscal 2,018 | 4 |
Fiscal 2,019 | 3.8 |
Fiscal 2,020 | 3.5 |
Fiscal 2021-2025 | $ 15.6 |
Retirement Plans (Defined Contr
Retirement Plans (Defined Contribution Plan) (Details) - Defined Contribution Plan, 401 K [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 50.00% | ||
Defined Contribution Plan, Cost Recognized | $ 23.7 | $ 20.5 | $ 20.3 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Jan. 23, 2015 | |
Class of Stock [Line Items] | |||
Preferred shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | |
Preferred shares, par value (in usd per share) | $ 0.20 | $ 0.20 | |
Preferred shares, shares issued (in shares) | 0 | 0 | |
Stock Repurchase Program, Authorized Amount | $ 300 | ||
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $ 17.2 | $ 17.5 |
Equity Stock Repurchase Program
Equity Stock Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Jan. 23, 2015 | |
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 300 | ||
Repurchase of ordinary shares, value | $ (92.2) | $ (17.5) | |
2015 Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 300 | ||
Repurchase of ordinary shares, shares | 823,592 | ||
Repurchase of ordinary shares, value | $ 75 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 225 |
Share Plans (Narrative) (Detail
Share Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation cost | $ 116,100,000 | $ 66,800,000 | $ 16,000,000 |
Tax benefit from share-based compensation cost | 41,700,000 | 24,100,000 | $ 5,700,000 |
Intrinsic value of options vested | 89,500,000 | 34,200,000 | |
Tax benefit from stock options exercised | $ 33,100,000 | $ 12,000,000 | |
Performance period | 3 years | ||
Share Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
Unrecognized compensation cost, share options | $ 24,800,000 | ||
Weighted-average period to recognize unrecognized compensation cost, share options | 2 years 8 months | ||
Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Weighted-average period to recognize unrecognized compensation cost, share options | 2 years 9 months | ||
Fair value of restricted share units granted in period | $ 28,900,000 | ||
Fair value of restricted share units vested in period | 21,600,000 | ||
Unrecognized compensation cost, restricted share units | $ 30,300,000 | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer matching contribution, percent of match | 25.00% | 15.00% | |
ESPP employer match - maximum employee contribution | $ 25,000 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average period to recognize unrecognized compensation cost, share options | 1 year 9 months | ||
Unrecognized compensation cost | $ 8,900,000 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average period to recognize unrecognized compensation cost, share options | 2 years 6 months | ||
Fair value of restricted share units vested in period | $ 127,400,000 | ||
Unrecognized compensation cost | $ 2,300,000 | ||
2013 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized under 2013 Plan | 5,700,000 | ||
2015 Mallinckrodt Pharmaceuticals Stock and Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized under 2013 Plan | 17,800,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 12,100,000 | ||
Questcor Pharmaceuticals, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Post combination expense | $ 90,400,000 | ||
Selling, general and administrative | Questcor Pharmaceuticals, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Post combination expense | 80,600,000 | ||
Restructuring | Questcor Pharmaceuticals, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Post combination expense | $ 9,800,000 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of ordinary shares to be awarded | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of ordinary shares to be awarded | 200.00% |
Share Plans (Schedule of Incent
Share Plans (Schedule of Incentive Equity Awards Issued Upon Completion of Conversion) (Details) - $ / shares | Sep. 25, 2015 | Sep. 26, 2014 | Jun. 27, 2014 | Sep. 27, 2013 | Jun. 27, 2013 |
Conversion of Covidien Equity Awards | |||||
Share options outstanding | 2,786,443 | 3,526,789 | 2,399,822 | 2,760,231 | 1,745,258 |
Restricted Share Units | |||||
Conversion of Covidien Equity Awards | |||||
Weighted-average grant date fair value, restricted share units | $ 73.45 | $ 47.88 | $ 40.62 | ||
Covidien | |||||
Conversion of Covidien Equity Awards | |||||
Share options outstanding | 2,399,822 | ||||
Weighted-average grant-date fair value, share options | $ 7.96 | ||||
Covidien | Restricted Share Units | |||||
Conversion of Covidien Equity Awards | |||||
Non-share option equity awards outstanding | 575,213 | ||||
Weighted-average grant date fair value, restricted share units | $ 38.97 |
Share Plans (Schedule of Share
Share Plans (Schedule of Share Option Award Status Upon Completion of the Conversion) (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 28, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Jun. 27, 2014 | Sep. 27, 2013 | Jun. 27, 2013 |
Conversion of Covidien Equity Awards | ||||||
Share options outstanding | 2,786,443 | 3,526,789 | 2,399,822 | 2,760,231 | 1,745,258 | |
Weighted-average exercise price, outstanding share options | $ 52.76 | $ 36.84 | $ 35.94 | $ 37.30 | ||
Weighted-average remaining contractual term, outstanding share options | 8 years | 7 years 4 months | ||||
Aggregate intrinsic value, outstanding share options | $ 63.2 | $ 22.9 | ||||
Share options exerciseable | 1,054,336 | 550,097 | ||||
Weighted-average exercise price, exercisable share options | $ 34.20 | $ 30.94 | ||||
Weighted-average remaining contractual term, exercisable share options | 5 years 11 months | 5 years 9 months | ||||
Aggregate intrinsic value, exercisable share options | $ 36.2 | $ 8 |
Share Plans (Schedule of the Va
Share Plans (Schedule of the Valuation Assumptions Used in the Conversion) (Details) - $ / shares | Jun. 28, 2013 | Jun. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Jun. 27, 2014 | Sep. 27, 2013 |
Weighted Average Assumptions | ||||||
Expected share price volatility | 32.00% | 26.00% | 29.00% | 32.00% | ||
Risk-free interest rate | 0.99% | 0.99% | 1.72% | 1.96% | ||
Expected annual dividend per share | 0.00% | 1.65% | 0.00% | 0.00% | ||
Expected life of options (in years) | 3 years 9 months 18 days | 3 years 9 months 18 days | 5 years 4 months | 5 years 6 months | ||
Fair value per option | $ 18.04 | $ 30.08 | $ 17.38 | $ 16.51 | ||
Share options outstanding | 1,745,258 | 2,786,443 | 3,526,789 | 2,399,822 | 2,760,231 |
Share Plans (Schedule of Sha115
Share Plans (Schedule of Share Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 28, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Jun. 27, 2014 | Sep. 27, 2013 |
Share Option Activity [Roll Forward] | |||||
Beginning balance | 3,526,789 | 2,760,231 | |||
Granted | 635,567 | 675,921 | |||
Converted from Questcor Acquisition | 1,292,736 | ||||
Exercised | (1,132,778) | (878,330) | |||
Expired/Forfeited | (243,135) | (323,769) | |||
Ending balance | 2,786,443 | 3,526,789 | |||
Share options vested and unvested expected to vest | 2,649,351 | ||||
Share options exerciseable | 1,054,336 | 550,097 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||
Weighted-average exercise price, outstanding share options | $ 52.76 | $ 36.84 | $ 35.94 | $ 37.30 | |
Weighted-average exercise price, granted share options | 102.20 | 52.63 | |||
Weighted-average exercise price, converted from Questcor acquisition, share options | 25.08 | ||||
Weighted-average exercise price, exercised share options | 29.79 | 30.96 | |||
Weighted-average exercise price, expired and forfeited share options | 58 | $ 41.83 | |||
Weighted-average exercise price, vested and unvested expected to vest share options | 50.94 | ||||
Weighted-average exercise price, exercisable share options | $ 34.20 | $ 30.94 | |||
Weighted-average remaining contractual term, outstanding share options | 8 years | 7 years 4 months | |||
Weighted-average remaining contractual term, vested and unvested expected to vest share options | 7 years 5 months | ||||
Weighted-average remaining contractual term, exercisable share options | 5 years 11 months | 5 years 9 months | |||
Aggregate intrinsic value, outstanding share options | $ 63.2 | $ 22.9 | |||
Aggregate intrinsic value, vested and unvested expected to vest share options | 59 | ||||
Aggregate intrinsic value, exercisable share options | $ 36.2 | $ 8 |
Share Plans (Schedule of Restri
Share Plans (Schedule of Restricted Share Unit Activity) (Details) - $ / shares | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Restricted Share Units | |||
Restricted Share Unit Activity [Roll Forward] | |||
Beginning balance | 589,222 | 724,269 | |
Granted | 273,733 | 229,281 | |
Converted from Questcor Acquisition | 30,747 | ||
Vested | (219,189) | (300,237) | |
Forfeited | (71,272) | (94,838) | |
Ending balance | 572,494 | 589,222 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average grant date fair value, restricted share units | $ 73.45 | $ 47.88 | $ 40.62 |
Weighted-average grant date fair value, granted restricted share units | 105.68 | 55.40 | |
Weighted-average grant date fair value, converted from Questcor Acquisition | 70.88 | ||
Weighted-average grant date fair value, vested restricted share units | 49.84 | 34.77 | |
Weighted-average grant date fair value, forfeited restricted share units | $ 68.15 | $ 42.48 | |
Restricted Stock | |||
Restricted Share Unit Activity [Roll Forward] | |||
Beginning balance | 1,432,031 | 0 | |
Granted | 0 | 0 | |
Converted from Questcor Acquisition | 1,829,164 | ||
Vested | (1,362,823) | (390,731) | |
Forfeited | (34,646) | (6,402) | |
Ending balance | 34,562 | 1,432,031 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average grant date fair value, restricted share units | $ 70.88 | $ 70.88 | $ 0 |
Weighted-average grant date fair value, granted restricted share units | 0 | 0 | |
Weighted-average grant date fair value, converted from Questcor Acquisition | 70.88 | ||
Weighted-average grant date fair value, vested restricted share units | 70.88 | 70.88 | |
Weighted-average grant date fair value, forfeited restricted share units | $ 70.88 | $ 70.88 |
Share Plans (Schedule of Perfor
Share Plans (Schedule of Performance Share Unit Activity) (Details) - Performance Shares - $ / shares | 12 Months Ended | |||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Performance Share Unit Activity [Roll Forward] | ||||
Beginning balance | [1] | 72,740 | 0 | |
Granted | [1] | 77,306 | 79,230 | |
Performance metric adjustment | [1] | 0 | 0 | |
Vested | [1] | 0 | 0 | |
Forfeited | [1] | (19,072) | (6,490) | |
Ending balance | [1] | 130,974 | 72,740 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted-average grant date fair value, restricted share units | $ 96.05 | $ 63.46 | $ 0 | |
Weighted-average grant date fair value, granted restricted share units | 125.84 | 63.40 | ||
Weighted-average grand date fair value, performance metric adjustment | 0 | 0 | ||
Weighted-average grant date fair value, vested restricted share units | 0 | 0 | ||
Weighted-average grant date fair value, forfeited restricted share units | $ 92.05 | $ 62.65 | ||
[1] | The number of shares disclosed within this table are at the target number of 100%. |
Share Plans (Schedule of Fair V
Share Plans (Schedule of Fair Value Assumptions for Performance Share Unit) (Details) - Performance Shares | 12 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected stock price volatility | 27.00% | 28.00% |
Peer group stock price volatility | 32.00% | 33.00% |
Correlation of returns | 14.00% | 17.00% |
Share Plans (Schedule of Res119
Share Plans (Schedule of Restricted Stock Award Activity) (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Restricted Stock Activity [Roll Forward] | |||
Beginning balance | 1,432,031 | 0 | |
Granted | 0 | 0 | |
Converted from Questcor Acquisition | 1,829,164 | ||
Vested | (1,362,823) | (390,731) | |
Forfeited | (34,646) | (6,402) | |
Ending balance | 34,562 | 1,432,031 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average grant date fair value, restricted share units | $ 70.88 | $ 70.88 | $ 0 |
Weighted-average grant date fair value, granted restricted share units | 0 | 0 | |
Weighted-average grant date fair value, converted from Questcor Acquisition | 70.88 | ||
Weighted-average grant date fair value, vested restricted share units | 70.88 | 70.88 | |
Weighted-average grant date fair value, forfeited restricted share units | $ 70.88 | $ 70.88 |
Accumulated Other Comprehens120
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 65.7 | $ 108.5 | $ 84.9 |
Other comprehensive loss before reclassifications | (71.9) | (44.7) | 23.6 |
Amounts reclassified from accumulated other comprehensive income | 7.1 | 1.9 | |
Ending balance | 0.9 | 65.7 | 108.5 |
Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 131 | 158.6 | 157.1 |
Other comprehensive loss before reclassifications | (70.8) | (27.6) | 1.5 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Ending balance | 60.2 | 131 | 158.6 |
Unrecognized Loss on Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (6.8) | (7.3) | 0 |
Other comprehensive loss before reclassifications | 0 | 0 | (7.3) |
Amounts reclassified from accumulated other comprehensive income | 0.4 | 0.5 | |
Ending balance | (6.4) | (6.8) | (7.3) |
Unrecognized Gain (Loss) on Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (58.5) | (42.8) | (72.2) |
Other comprehensive loss before reclassifications | (1.1) | (17.1) | 29.4 |
Amounts reclassified from accumulated other comprehensive income | 6.7 | 1.4 | |
Ending balance | $ (52.9) | $ (58.5) | $ (42.8) |
Accumulated Other Comprehens121
Accumulated Other Comprehensive Income (Schedule of Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | ||
Equity [Abstract] | |||
Amortization of unrealized loss on derivatives | $ 0.6 | $ 0.6 | |
Income tax provision | (0.2) | (0.1) | |
Net of income taxes | 0.4 | 0.5 | |
Amortization of pension and post-retirement benefit plans: | |||
Net actuarial loss | [1] | 9.4 | 8.1 |
Prior service credit | [1] | (4.6) | (9.9) |
Plan settlements | [1] | 6 | 3.8 |
Total before tax | 10.8 | 2 | |
Income tax provision | (4.1) | (0.6) | |
Net of income taxes | 6.7 | 1.4 | |
Total reclassifications for the period | $ 7.1 | $ 1.9 | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 13 for additional details. |
Transactions with Former Par122
Transactions with Former Parent Company (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | Jun. 27, 2014 | ||
Related Party Transaction [Line Items] | |||||
Provision for (benefit from) income taxes | [1] | $ (92,900,000) | $ (10,100,000) | $ 47,500,000 | |
Covidien | Separation and Distribution Agreement | |||||
Related Party Transaction [Line Items] | |||||
Initial cash capitalization | $ 168,000,000 | ||||
Estimated cash upon completion of distribution | 168,000,000 | ||||
Adjustment payment benchmark | $ 20,000,000 | ||||
Final adjustment payment | 0 | ||||
Covidien | Tax Matters Agreement | |||||
Related Party Transaction [Line Items] | |||||
Tax agreement, tax threshold | 200,000,000 | ||||
Provision for (benefit from) income taxes | $ 51,600,000 | ||||
Change in ownership percentage | 35.00% | ||||
Covidien | Minimum | Tax Matters Agreement | |||||
Related Party Transaction [Line Items] | |||||
Restriction period | 2 years | ||||
Covidien | Maximum | Tax Matters Agreement | |||||
Related Party Transaction [Line Items] | |||||
Restriction period | 5 years | ||||
Covidien | Discontinued Operations [Member] | |||||
Related Party Transaction [Line Items] | |||||
Inventory sold | $ 35,300,000 | 46,000,000 | 51,200,000 | ||
Inventory purchases | 17,000,000 | $ 28,900,000 | 38,400,000 | ||
Covidien | Selling, general and administrative | |||||
Related Party Transaction [Line Items] | |||||
Allocated expenses | $ 39,600,000 | ||||
Covidien | Prepaid expenses and other current assets | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 6,300,000 | ||||
Covidien | Other current liabilities | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 3,900,000 | ||||
[1] | Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. |
Guarantees (Narrative) (Details
Guarantees (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
Guarantor Obligations [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 21.1 | |
Others | ||
Guarantor Obligations [Line Items] | ||
Maximum future payments | 39.4 | |
Maryland Heights, Missouri | Surety Bond | ||
Guarantor Obligations [Line Items] | ||
Maximum future payments | $ 57.2 | |
Mallinckrodt Baker | Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, obligation term | 17 years | |
Maximum future payments | $ 71 | |
Escrow | 30 | |
Mallinckrodt Baker | Indemnification Agreement | Other Liabilities | ||
Guarantor Obligations [Line Items] | ||
Guarantors obligation | 15.7 | $ 16.6 |
Mallinckrodt Baker | Indemnification Agreement | Other Assets | ||
Guarantor Obligations [Line Items] | ||
Escrow | 19 | 19.4 |
Mallinckrodt Baker | Enviornmental, Health and Safety Matters | Indemnification Agreement | Other Liabilities | ||
Guarantor Obligations [Line Items] | ||
Guarantors obligation | $ 13 | $ 13.9 |
Commitments and Contingencie124
Commitments and Contingencies (Narrative) (Details) | Sep. 26, 2012action | Aug. 31, 2013lawsuitCase | Aug. 31, 2012principal | Aug. 31, 2011Patents | Dec. 26, 2014 | Jun. 26, 2015USD ($) | Sep. 25, 2015USD ($)DefendentCaseorder | Sep. 26, 2014USD ($) | Sep. 27, 2013USD ($) | Apr. 11, 2014USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Plant Assets Exchanged for Industrial Revenue Bonds | $ 88,000,000 | |||||||||
Deferred Tax Liabilities Installment Sales | 1,447,400,000 | |||||||||
Interest Expense, Installment Sales | 36,500,000 | |||||||||
Rent expense | 24,300,000 | $ 15,200,000 | $ 13,700,000 | |||||||
Loss Contingencies [Line Items] | ||||||||||
Remedial cost range, minimum | 39,800,000 | |||||||||
Remedial cost range, maximum | 113,100,000 | |||||||||
Environmental liabilities | 76,500,000 | |||||||||
Tax Matters Agreement | Covidien | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Tax agreement, tax threshold | 200,000,000 | |||||||||
Lower Passaic River, New Jersey | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Remedial cost range, minimum | 483,400,000 | |||||||||
Remedial cost range, maximum | 2,700,000,000 | |||||||||
Environmental liabilities | $ 13,300,000 | |||||||||
Asbestos Matters | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Pending claims | Case | 12,750 | |||||||||
Estimation of liability, historical term | 5 years | |||||||||
Estimation of liability, expected future term of claims | 7 years | |||||||||
Accrued and other current liabilities | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Environmental liabilities, current | $ 3,200,000 | |||||||||
'222 and '218 Patent Litigation: Exela Pharma Sciences, LLC | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Patents allegedly infringed | Patents | 2 | |||||||||
Loss Contingency, Claims Settled, Number | Case | 4 | |||||||||
Retrophin Litigation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Litigation Settlement, Expense | $ 15,500,000 | |||||||||
Glenridge Litigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of defendants | principal | 3 | |||||||||
Loss Contingency, Lawsuits, Number | lawsuit | 2 | |||||||||
Pending claims | Case | 1 | |||||||||
Questcor Securities Litigation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Filed-actions consolidated into the lawsuit | action | 4 | |||||||||
Litigation Settlement, Amount | $ 38,000,000 | |||||||||
Loss Contingency, Accrual, Current | $ 38,000,000 | |||||||||
David Taban, et al. v. Questcor Pharmaceuticals, Inc | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Federal derivative action staying period a | 60 days | |||||||||
Federal derivative action staying period b | 60 days | |||||||||
Mallinckrodt Veterinary, Inc., Millsboro, Delaware | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of Administrative Orders of Consent Entered Into | order | 2 | |||||||||
Lower Passaic River, New Jersey | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of defendants | Defendent | 70 | |||||||||
Remedial cost range, minimum | $ 365,000,000 | |||||||||
Remedial cost range, maximum | 3,200,000,000 | |||||||||
Environmental liabilities | 23,100,000 | |||||||||
Remedial cost, estimate | $ 1,700,000,000 | |||||||||
Questcor Shareholder Derivative Litigation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Filed-actions consolidated into the lawsuit | action | 5 | |||||||||
Federal derivative action staying period a | 60 days | |||||||||
Federal derivative action staying period b | 60 days | |||||||||
Tastemaker | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Provision for Loss (Gain) on Disposal, Net of Tax | $ 22,500,000 |
Commitments and Contingencie125
Commitments and Contingencies (Schedule of Purchase Oligations) (Details) $ in Millions | Sep. 25, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Fiscal 2,016 | $ 125.9 |
Fiscal 2,017 | 51.4 |
Fiscal 2,018 | 49.8 |
Fiscal 2,019 | 7.9 |
Fiscal 2,020 | $ 0 |
Commitments and Contingencie126
Commitments and Contingencies (Schedule of Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
Asset Retirement Obligation [Roll Forward] | ||
Beginning Balance | $ 39.2 | $ 48.9 |
Additions and adjustments | (1) | (11.5) |
Accretion expense | 1.8 | 3.1 |
Payments | 0 | 0 |
Currency translation | (3.1) | (1.3) |
Ending Balance | $ 36.9 | $ 39.2 |
Commitments and Contingencie127
Commitments and Contingencies (Schedule of Minimum Lease Payments for Non-cancelable Leases) (Details) $ in Millions | Sep. 25, 2015USD ($) |
Operating Leases | |
Operating leases, fiscal 2015 | $ 21.1 |
Operating leases, fiscal 2016 | 17.7 |
Operating leases, fiscal 2018 | 15 |
Operating leases, fiscal 2019 | 11.3 |
Operating leases, fiscal 2020 | 9.3 |
Operating leases, thereafter | 20.6 |
Operating leases, total minimum lease payments | 95 |
Capital Leases | |
Capital leases, fiscal 2015 | 1.3 |
Capital leases, fiscal 2016 | 0.9 |
Capital leases, fiscal 2017 | 0.1 |
Capital leases, fiscal 2018 | 0 |
Capital leases, fiscal 2019 | 0 |
Capital leases, thereafter | 0 |
Capital leases, total minimum lease payments | 2.3 |
Capital leases, interest portion of total minimum lease payments | 0 |
Capital leases, present value of minimum lease payments | $ 2.3 |
Financial Instruments and Fa128
Financial Instruments and Fair Value Measurements (Narrative) (Details) CAD in Millions, $ in Millions | 12 Months Ended | |||||||
Sep. 25, 2015USD ($)supplierreactor | Sep. 25, 2015CADsupplierreactor | Sep. 25, 2015CAD | Sep. 26, 2014USD ($) | Aug. 31, 2014USD ($) | Aug. 14, 2014USD ($) | Apr. 30, 2013 | Oct. 01, 2012USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Number of Suppliers of Unique Raw Material | supplier | 8 | 8 | ||||||
Number of Nuclear Research Reactors Used To Source Raw Material | reactor | 3 | 3 | ||||||
Number of Nuclear Reactors Relied on For Supply of Raw Material | reactor | 2 | 2 | ||||||
Novartis 2015 and 2016 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration, Annual Payments | $ 25 | |||||||
Novartis, Subsequent to 2016 till FDA Approval | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration, Annual Payments | 25 | |||||||
Novartis, Subsequent to FDA Approval | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration, Potential Payment | $ 25 | |||||||
CNS Therapeutics, Inc. | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair value of contingent consideration upon acquisition | $ 6.9 | |||||||
Maximum contingent payments for acquisition | $ 9 | |||||||
Discount rate | 1.00% | 1.00% | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | $ 7.2 | |||||||
Questcor Pharmaceuticals, Inc. | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair value of contingent consideration upon acquisition | $ 0 | |||||||
Maximum contingent payments for acquisition | $ 190 | |||||||
Discount rate | 4.70% | 4.70% | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | $ 167.4 | $ 195.4 | ||||||
Questcor Pharmaceuticals, Inc. | BioVectra Financial Results | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Discount rate | 1.30% | 1.30% | ||||||
2.85% term loan due April 2016 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Discount rate | 2.85% | 2.85% | ||||||
4.00% term loan due February 2022 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Discount rate | 4.00% | 4.00% | ||||||
Debentures | 8.00% debentures due March 2023 | Level 2 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 8.00% | 8.00% | ||||||
Debentures | 9.50% debentures due May 2022 | Level 2 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 9.50% | 9.50% | ||||||
Senior Notes | 3.50% notes due April 2018 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 3.50% | |||||||
Senior Notes | 3.50% notes due April 2018 | Level 1 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 3.50% | 3.50% | ||||||
Senior Notes | 4.75% notes due April 2023 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 4.75% | |||||||
Senior Notes | 4.75% notes due April 2023 | Level 1 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 4.75% | 4.75% | ||||||
Senior Notes | 5.75% notes due August 2022 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Discount rate | 5.75% | 5.75% | ||||||
Stated interest rate | 5.75% | |||||||
Debentures | Four Point Eight Eight Percent Notes [Member] | Level 1 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 4.875% | 4.875% | ||||||
Debentures | Five Point Five Percent Notes [Member] | Level 1 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 5.50% | 5.50% | ||||||
Debentures | 5.625% notes due October 2023 | Level 1 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Stated interest rate | 5.625% | 5.625% | ||||||
Carrying Value | Level 1 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Restricted cash | $ 66.3 | $ 69.8 | ||||||
Carrying Value | Level 3 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Cash surrender value of life insurance | 67.7 | $ 67.3 | ||||||
BioVectra Inc [Member] | Questcor Pharmaceuticals, Inc. | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair value of contingent consideration upon acquisition | CAD | CAD 50 | |||||||
Business Combination, Contingent Consideration, Potential Payment | CAD | CAD 40 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | CAD | CAD 5 | |||||||
Synacthen [Member] | Questcor Pharmaceuticals, Inc. | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Milestone Payments | $ 25 |
(Schedule of Fair Value of Asse
(Schedule of Fair Value of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Assets: | ||
Debt and equity securities held in rabbi trusts | $ 34.6 | $ 35.7 |
Total assets at fair value | 34.6 | 35.7 |
Liabilities: | ||
Deferred compensation liabilities | 20 | 15 |
Contingent consideration | 174.6 | 202.8 |
Foreign exchange forward and option contracts | 3.3 | 0.2 |
Total liabilities at fair value | 197.9 | 218 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Debt and equity securities held in rabbi trusts | 24.2 | 22.9 |
Total assets at fair value | 24.2 | 22.9 |
Liabilities: | ||
Deferred compensation liabilities | 0 | 0 |
Contingent consideration | 0 | 0 |
Foreign exchange forward and option contracts | 3.3 | 0.2 |
Total liabilities at fair value | 3.3 | 0.2 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Debt and equity securities held in rabbi trusts | 10.4 | 12.8 |
Total assets at fair value | 10.4 | 12.8 |
Liabilities: | ||
Deferred compensation liabilities | 20 | 15 |
Contingent consideration | 0 | 0 |
Foreign exchange forward and option contracts | 0 | 0 |
Total liabilities at fair value | 20 | 15 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Debt and equity securities held in rabbi trusts | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Deferred compensation liabilities | 0 | 0 |
Contingent consideration | 174.6 | 202.8 |
Foreign exchange forward and option contracts | 0 | 0 |
Total liabilities at fair value | $ 174.6 | $ 202.8 |
(Schedule of Reconciliation of
(Schedule of Reconciliation of Changes in Fair Value of Contingent Consideration) (Details) - Recurring - Contingent Consideration - Questcor Pharmaceuticals, Inc. $ in Millions | 12 Months Ended |
Sep. 25, 2015USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 202.8 |
Payments | (29) |
Business Combination, Contingent Consideration, Accretion | 7.5 |
Effect of currency rate change | (6.7) |
Ending balance | $ 174.6 |
(Schedule of Carrying Amount an
(Schedule of Carrying Amount and Fair Value of Long-term Debt) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate receivable securitization | $ 153 | $ 150 |
Carrying Value | 2.85% term loan due April 2016 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan payable | 0 | 3.1 |
Carrying Value | Term loan due March 2021 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan payable | 1,978.5 | 1,996.7 |
Carrying Value | 4.00% term loan due February 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan payable | 7.9 | 10.8 |
Carrying Value | Debentures | 9.50% debentures due May 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 10.4 | 10.4 |
Carrying Value | Debentures | 8.00% debentures due March 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 4.4 | 8 |
Carrying Value | Senior Notes | 3.50% notes due April 2018 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 300 | 300 |
Carrying Value | Senior Notes | 5.75% notes due August 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 900 | 900 |
Carrying Value | Senior Notes | 4.75% notes due April 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 600 | 600 |
Carrying Value | Debentures | Four Point Eight Eight Percent Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 700 | 0 |
Carrying Value | Debentures | Five Point Five Percent Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 700 | 0 |
Carrying Value | Debentures | 2015 Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 500 | |
Carrying Value | Debentures | 5.625% notes due October 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 750 | 0 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate receivable securitization | 153 | 150 |
Fair Value | 2.85% term loan due April 2016 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan payable | 0 | 3.1 |
Fair Value | Term loan due March 2021 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan payable | 1,966.5 | 1,970.4 |
Fair Value | 4.00% term loan due February 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan payable | 7.9 | 10.8 |
Fair Value | Debentures | 9.50% debentures due May 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 13 | 14.2 |
Fair Value | Debentures | 8.00% debentures due March 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 5.3 | 10.2 |
Fair Value | Senior Notes | 3.50% notes due April 2018 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 294.3 | 290.2 |
Fair Value | Senior Notes | 5.75% notes due August 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 876.1 | 907.3 |
Fair Value | Senior Notes | 4.75% notes due April 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 539.6 | 563.8 |
Fair Value | Debentures | Four Point Eight Eight Percent Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 684.1 | 0 |
Fair Value | Debentures | Five Point Five Percent Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 646 | 0 |
Fair Value | Debentures | 2015 Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 500 | |
Fair Value | Debentures | 5.625% notes due October 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | $ 705.2 | $ 0 |
(Schedules of Concentration of
(Schedules of Concentration of Risk) (Details) | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Distributor Concentration Risk | Net Sales Attributable to Distributors | CuraScript, Inc [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 31.00% | 6.00% | 0.00% |
Distributor Concentration Risk | Net Sales Attributable to Distributors | McKesson Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18.00% | 21.00% | 19.00% |
Distributor Concentration Risk | Net Sales Attributable to Distributors | Cardinal Health, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 22.00% | 24.00% |
Distributor Concentration Risk | Net Sales Attributable to Distributors | Amerisource Bergen Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | 14.00% | 11.00% |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | CuraScript, Inc [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.00% | 15.00% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | McKesson Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.00% | 27.00% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Cardinal Health, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | 18.00% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Amerisource Bergen Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 14.00% | |
Product Concentration Risk | Net Sales Attributable to Products | Acetaminophen products (API) | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 6.00% | 9.00% | 13.00% |
Product Concentration Risk | Net Sales Attributable to Products | Acthar | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 31.00% | 6.00% | 0.00% |
Product Concentration Risk | Net Sales Attributable to Products | Hydrocodone (API) and hydrocodone-containing tablets | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 4.00% | 10.00% | 9.00% |
Segment and Geographical Dat133
Segment and Geographical Data (Schedule of Segment Reporting Information by Business Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 882.4 | $ 877.3 | $ 819 | $ 768.2 | $ 673.7 | $ 530.1 | $ 448.7 | $ 429.5 | $ 3,346.9 | $ 2,082 | $ 1,712.3 | |
Operating income (loss) | 461.8 | (75.9) | 73.5 | |||||||||
Intangible asset amortization | (550.3) | (154.8) | (27.9) | |||||||||
Restructuring and related charges, net | (40.7) | (81.9) | (26.3) | |||||||||
Non-restructuring impairment | 0 | 151.6 | 0 | |||||||||
Separation costs | 0 | (9.6) | (74.2) | |||||||||
Assets | $ 16,404.1 | $ 12,787.3 | 16,404.1 | 12,787.3 | ||||||||
Depreciation and amortization | 672.5 | 275.9 | 139.6 | |||||||||
Restructuring and related costs, accelerated depreciation | 0.3 | 0.5 | 2.6 | |||||||||
Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and related charges, net | (36.5) | (57) | (5.2) | |||||||||
Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and related charges, net | (4.5) | (9.8) | (11.2) | |||||||||
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | 3,298.2 | 2,044.6 | 1,655.2 | ||||||||
Operating income (loss) | 1,339.7 | 550.1 | 336.2 | |||||||||
Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,622.8 | 413.5 | 206.4 | |||||||||
Operating income (loss) | 651.3 | (50.6) | (36.2) | |||||||||
Depreciation and amortization | [2] | 559.8 | 152.9 | 24.9 | ||||||||
Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,251.6 | 1,199.4 | 1,011.2 | |||||||||
Operating income (loss) | 622 | 617.4 | 347.9 | |||||||||
Depreciation and amortization | [2] | 81.9 | 77.8 | 72.7 | ||||||||
Operating Segments | Global Medical Imaging | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 423.8 | 431.7 | 437.6 | |||||||||
Operating income (loss) | 66.4 | (16.7) | 24.5 | |||||||||
Depreciation and amortization | [2] | 12.4 | 18.8 | 18.5 | ||||||||
Corporate, Non-Segment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [3],[4] | 48.7 | 37.4 | 57.1 | ||||||||
Corporate and allocated expenses | [5] | (286.9) | (228.1) | (134.3) | ||||||||
Intangible asset amortization | (550.3) | (154.8) | (27.9) | |||||||||
Restructuring and related charges, net | [6] | (40.7) | (81.9) | (26.3) | ||||||||
Non-restructuring impairment | 0 | (151.6) | 0 | |||||||||
Separation costs | 0 | (9.6) | (74.2) | |||||||||
Intersegment Eliminations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Continuing Operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | [2] | $ 654.1 | $ 249.5 | $ 116.1 | ||||||||
[1] | Amounts represent sales to external customers. There were no intersegment sales. | |||||||||||
[2] | Depreciation for certain shared facilities is allocated based on occupancy percentage. | |||||||||||
[3] | Represents historical CMDS-related intercompany transactions that represent Mallinckrodt continuing operations under an ongoing supply agreement with the acquirer of the CMDS business. | |||||||||||
[4] | Represents historical CMDS-related intercompany transactions that represent Mallinckrodt continuing operations under an ongoing supply agreement with the acquirer of the CMDS business. | |||||||||||
[5] | Includes administration expenses and certain compensation, environmental and other costs not charged to the Company's operating segments. | |||||||||||
[6] | Includes restructuring-related accelerated depreciation. |
Segment and Geographical Dat134
Segment and Geographical Data (Schedule of Net Sales from External Costumers by Product) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 882.4 | $ 877.3 | $ 819 | $ 768.2 | $ 673.7 | $ 530.1 | $ 448.7 | $ 429.5 | $ 3,346.9 | $ 2,082 | $ 1,712.3 | |
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | 3,298.2 | 2,044.6 | 1,655.2 | ||||||||
Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,251.6 | 1,199.4 | 1,011.2 | |||||||||
Operating Segments | Nuclear Imaging | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 423.8 | 431.7 | 437.6 | |||||||||
Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,622.8 | 413.5 | 206.4 | |||||||||
Hydrocodone (API) and hydrocodone-containing tablets | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 136.5 | 209.6 | 148.3 | |||||||||
Oxycodone (API) and oxycodone-containing tablets | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 154.6 | 155.2 | 139 | |||||||||
Methylphenidate ER | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 167.2 | 99.4 | 140 | |||||||||
Other controlled substances | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 572.2 | 584.5 | 443.3 | |||||||||
Other | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 221.1 | 150.7 | 140.6 | |||||||||
Exalgo | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 39.4 | 76.1 | 126.1 | |||||||||
Ofirmev | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 263 | 124.4 | 0 | |||||||||
Acthar | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,037.3 | 122.9 | 0 | |||||||||
Inomax | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 185.2 | 0 | 0 | |||||||||
Other | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 97.9 | $ 90.1 | $ 80.3 | |||||||||
[1] | Amounts represent sales to external customers. There were no intersegment sales. |
Segment and Geographical Dat135
Segment and Geographical Data (Schedule of Net Sales and Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||||
Net sales | $ 882.4 | $ 877.3 | $ 819 | $ 768.2 | $ 673.7 | $ 530.1 | $ 448.7 | $ 429.5 | $ 3,346.9 | $ 2,082 | $ 1,712.3 | |||
Long-Lived Assets | 994.7 | 904 | 994.7 | 904 | ||||||||||
United States | ||||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||||
Net sales | [1] | 2,973.2 | 1,780.9 | 1,421.6 | ||||||||||
Long-Lived Assets | 905.2 | [2] | 829.1 | 905.2 | [2] | 829.1 | ||||||||
EMEA | ||||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||||
Net sales | [1] | 236.2 | 250.3 | 250.1 | ||||||||||
Long-Lived Assets | [2],[3] | 45 | 33.9 | 45 | 33.9 | |||||||||
EMEA | IRELAND | ||||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||||
Long-Lived Assets | 10.7 | 0.4 | 10.7 | 0.4 | ||||||||||
Other Countries | ||||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||||
Net sales | [1] | 137.5 | 50.8 | $ 40.6 | ||||||||||
Long-Lived Assets | $ 44.5 | $ 41 | $ 44.5 | $ 41 | ||||||||||
[1] | Net sales are attributed to regions based on the location of the entity that records the transaction, none of which relate to the country of Ireland. | |||||||||||||
[2] | Long-lived assets are primarily composed of property, plant and equipment. | |||||||||||||
[3] | Includes long-lived assets located in Ireland of $10.7 million, and $0.4 million at the end of fiscal 2015 |
Selected Quarterly Financial136
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 882.4 | $ 877.3 | $ 819 | $ 768.2 | $ 673.7 | $ 530.1 | $ 448.7 | $ 429.5 | $ 3,346.9 | $ 2,082 | $ 1,712.3 | ||||||||
Gross profit | 482.1 | 503.8 | 462.9 | 404.8 | 363.2 | 254.1 | 226.7 | 216.2 | 1,853.6 | 1,060.2 | 822.3 | ||||||||
Income (loss) from continuing operations | 90 | 55.6 | 75.2 | 87.4 | (173.5) | (29) | 20.2 | 38.5 | 308.2 | (143.8) | 8.2 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (14.8) | 2.4 | 23.6 | 5.3 | (178.9) | 4.9 | (8.6) | 7.1 | 16.5 | (175.5) | 50.6 | ||||||||
Net income (loss) | $ 75.2 | $ 58 | $ 98.8 | $ 92.7 | $ (352.4) | $ (24.1) | $ 11.6 | $ 45.6 | $ 324.7 | $ (319.3) | $ 58.8 | ||||||||
Basic earnings (loss) per share from continuing operations (in usd per share) | $ 0.77 | [1] | $ 0.47 | [1] | $ 0.64 | [1] | $ 0.75 | [1] | $ (2.04) | [1] | $ (0.50) | [1] | $ 0.35 | [1] | $ 0.67 | [1] | $ 2.64 | $ (2.22) | $ 0.14 |
Diluted earnings (loss) per share from continuing operations (in usd per share) | $ 0.76 | [1] | $ 0.47 | [1] | $ 0.64 | [1] | $ 0.74 | [1] | $ (2.04) | [1] | $ (0.50) | [1] | $ 0.34 | [1] | $ 0.66 | [1] | $ 2.61 | $ (2.22) | $ 0.14 |
[1] | Quarterly and annual computations are prepared independently. Therefore, the sum of each quarter may not necessarily total the fiscal period amounts noted elsewhere within this Annual Report on Form 10-K. |
Condensed Consolidating and 137
Condensed Consolidating and Combining Financial Statements (Narrative) (Details) | Nov. 30, 2012 |
Covidien | |
Condensed Consolidating Financial Statements | |
Percentage of ownership in MIFSA | 100.00% |
Condensed Consolidating and 138
Condensed Consolidating and Combining Financial Statements (Schedule of Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Current Assets: | ||||
Cash and cash equivalents | $ 365.9 | $ 707.8 | $ 275.5 | $ 0 |
Accounts receivable, net | 548.5 | 476.6 | ||
Inventories | 281.8 | 306.4 | ||
Deferred income taxes | 142.7 | 152.3 | ||
Prepaid expenses and other current assets | 207.3 | 227.1 | ||
Current assets held for sale | 299.9 | 200.8 | ||
Intercompany receivable | 0 | 0 | ||
Total current assets | 1,846.1 | 2,071 | ||
Property, plant and equipment, net | 991.3 | 886.8 | ||
Goodwill | 3,649.4 | 2,401.9 | ||
Intangible assets, net | 9,666.3 | 7,082.2 | ||
Long-term assets held for sale | 0 | 111.2 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loan receivable | 0 | 0 | ||
Other assets | 251 | 234.2 | ||
Total Assets | 16,404.1 | 12,787.3 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 22.3 | 21.2 | ||
Accounts payable | 133 | 110.7 | ||
Accrued payroll and payroll-related costs | 103.7 | 116.3 | ||
Accrued royalties | 29.3 | 67.7 | ||
Accrued and other current liabilities | 568.3 | 529.9 | ||
Current liabilities held for sale | 72.8 | 59 | ||
Intercompany payable | 0 | 0 | ||
Total current liabilities | 929.4 | 904.8 | ||
Long-term debt | 6,474.3 | 3,874 | ||
Pension and postretirement benefits | 116.7 | 116.2 | ||
Environmental liabilities | 73.3 | 59.2 | ||
Deferred income taxes | 3,132.4 | 2,399.6 | ||
Other income tax liabilities | 121.3 | 122.6 | ||
Long-term liabilities held for sale | 0 | 9.7 | ||
Intercompany loans payable | 0 | 0 | ||
Other liabilities | 245.5 | 343.2 | ||
Total Liabilities | 11,092.9 | 7,829.3 | ||
Shareholders' equity | 5,311.2 | 4,958 | 1,255.6 | 1,891.9 |
Total Liabilities and Shareholders' Equity | 16,404.1 | 12,787.3 | ||
Mallinckrodt plc | ||||
Current Assets: | ||||
Cash and cash equivalents | 0.1 | 0.3 | 1.2 | 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | 1.3 | 0.5 | ||
Current assets held for sale | 0 | 0 | ||
Intercompany receivable | 39.1 | 13.5 | ||
Total current assets | 40.5 | 14.3 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Long-term assets held for sale | 0 | 0 | ||
Investment in subsidiaries | 14,797.7 | 586.8 | ||
Intercompany loan receivable | 174.4 | 4,385 | ||
Other assets | 0 | 0 | ||
Total Assets | 15,012.6 | 4,986.1 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 1.2 | ||
Accrued payroll and payroll-related costs | 0.1 | 0.1 | ||
Accrued royalties | 0 | 0 | ||
Accrued and other current liabilities | 1.8 | 1.1 | ||
Current liabilities held for sale | 0 | 0 | ||
Intercompany payable | 9,699.5 | 25.7 | ||
Total current liabilities | 9,701.4 | 28.1 | ||
Long-term debt | 0 | 0 | ||
Pension and postretirement benefits | 0 | 0 | ||
Environmental liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other income tax liabilities | 0 | 0 | ||
Long-term liabilities held for sale | 0 | 0 | ||
Intercompany loans payable | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total Liabilities | 9,701.4 | 28.1 | ||
Shareholders' equity | 5,311.2 | 4,958 | ||
Total Liabilities and Shareholders' Equity | 15,012.6 | 4,986.1 | ||
Mallinckrodt International Finance S.A. | ||||
Current Assets: | ||||
Cash and cash equivalents | 152.1 | 18.5 | 56.5 | 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | 0.2 | 10.8 | ||
Current assets held for sale | 0 | 0 | ||
Intercompany receivable | 128.6 | 0 | ||
Total current assets | 280.9 | 29.3 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Long-term assets held for sale | 0 | 0 | ||
Investment in subsidiaries | 18,838.6 | 10,645.7 | ||
Intercompany loan receivable | 0 | 0 | ||
Other assets | 0.1 | 0 | ||
Total Assets | 19,119.6 | 10,675 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 20 | 18.2 | ||
Accounts payable | 0.2 | 0.2 | ||
Accrued payroll and payroll-related costs | 0 | 0 | ||
Accrued royalties | 0 | 0 | ||
Accrued and other current liabilities | 77.4 | 50.9 | ||
Current liabilities held for sale | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Total current liabilities | 97.6 | 69.3 | ||
Long-term debt | 6,299.4 | 3,693.9 | ||
Pension and postretirement benefits | 0 | 0 | ||
Environmental liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other income tax liabilities | 0 | 0 | ||
Long-term liabilities held for sale | 0 | 0 | ||
Intercompany loans payable | 2,672.6 | 1,966.6 | ||
Other liabilities | 0 | 0 | ||
Total Liabilities | 9,069.6 | 5,729.8 | ||
Shareholders' equity | 10,050 | 4,945.2 | ||
Total Liabilities and Shareholders' Equity | 19,119.6 | 10,675 | ||
Other Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 213.7 | 689 | 217.8 | 0 |
Accounts receivable, net | 548.5 | 476.6 | ||
Inventories | 281.8 | 306.4 | ||
Deferred income taxes | 142.7 | 152.3 | ||
Prepaid expenses and other current assets | 205.8 | 215.8 | ||
Current assets held for sale | 299.9 | 200.8 | ||
Intercompany receivable | 9,699.5 | 25.7 | ||
Total current assets | 11,391.9 | 2,066.6 | ||
Property, plant and equipment, net | 991.3 | 886.8 | ||
Goodwill | 3,649.4 | 2,401.9 | ||
Intangible assets, net | 9,666.3 | 7,082.2 | ||
Long-term assets held for sale | 0 | 111.2 | ||
Investment in subsidiaries | 10,050 | 4,945.1 | ||
Intercompany loan receivable | 2,498.2 | 1,941.6 | ||
Other assets | 250.9 | 234.2 | ||
Total Assets | 38,498 | 19,669.6 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 2.3 | 3 | ||
Accounts payable | 132.8 | 109.3 | ||
Accrued payroll and payroll-related costs | 103.6 | 116.2 | ||
Accrued royalties | 29.3 | 67.7 | ||
Accrued and other current liabilities | 489.1 | 477.9 | ||
Current liabilities held for sale | 72.8 | 59 | ||
Intercompany payable | 167.7 | 13.5 | ||
Total current liabilities | 997.6 | 846.6 | ||
Long-term debt | 174.9 | 180.1 | ||
Pension and postretirement benefits | 116.7 | 116.2 | ||
Environmental liabilities | 73.3 | 59.2 | ||
Deferred income taxes | 3,132.4 | 2,399.6 | ||
Other income tax liabilities | 121.3 | 122.6 | ||
Long-term liabilities held for sale | 0 | 9.7 | ||
Intercompany loans payable | 0 | 4,360 | ||
Other liabilities | 245.5 | 343.2 | ||
Total Liabilities | 4,861.7 | 8,437.2 | ||
Shareholders' equity | 33,636.3 | 11,232.4 | ||
Total Liabilities and Shareholders' Equity | 38,498 | 19,669.6 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Current assets held for sale | 0 | 0 | ||
Intercompany receivable | (9,867.2) | (39.2) | ||
Total current assets | (9,867.2) | (39.2) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Long-term assets held for sale | 0 | 0 | ||
Investment in subsidiaries | (43,686.3) | (16,177.6) | ||
Intercompany loan receivable | (2,672.6) | (6,326.6) | ||
Other assets | 0 | 0 | ||
Total Assets | (56,226.1) | (22,543.4) | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll and payroll-related costs | 0 | 0 | ||
Accrued royalties | 0 | 0 | ||
Accrued and other current liabilities | 0 | 0 | ||
Current liabilities held for sale | 0 | 0 | ||
Intercompany payable | (9,867.2) | (39.2) | ||
Total current liabilities | (9,867.2) | (39.2) | ||
Long-term debt | 0 | 0 | ||
Pension and postretirement benefits | 0 | 0 | ||
Environmental liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other income tax liabilities | 0 | 0 | ||
Long-term liabilities held for sale | 0 | 0 | ||
Intercompany loans payable | (2,672.6) | (6,326.6) | ||
Other liabilities | 0 | 0 | ||
Total Liabilities | (12,539.8) | (6,365.8) | ||
Shareholders' equity | (43,686.3) | (16,177.6) | ||
Total Liabilities and Shareholders' Equity | $ (56,226.1) | $ (22,543.4) |
Condensed Consolidating and 139
Condensed Consolidating and Combining Financial Statements (Schedule of Condensed Consolidating and Combining Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||
Condensed Consolidating Financial Statements | ||||||||||||
Net sales | $ 882.4 | $ 877.3 | $ 819 | $ 768.2 | $ 673.7 | $ 530.1 | $ 448.7 | $ 429.5 | $ 3,346.9 | $ 2,082 | $ 1,712.3 | |
Cost of sales | 1,493.3 | 1,021.8 | 890 | |||||||||
Gross profit | 482.1 | 503.8 | 462.9 | 404.8 | 363.2 | 254.1 | 226.7 | 216.2 | 1,853.6 | 1,060.2 | 822.3 | |
Selling, general and administrative expenses | 1,169.8 | 745 | 495.9 | |||||||||
Research and development expenses | 185.1 | 163.5 | 157.9 | |||||||||
Separation costs | 0 | 9.6 | 74.2 | |||||||||
Restructuring charges, net | 40.4 | 81.4 | 23.7 | |||||||||
Non-restructuring impairment charges | 0 | 151.6 | 0 | |||||||||
Gain on divestiture and license | (3.5) | (15) | (2.9) | |||||||||
Operating income (loss) | 461.8 | (75.9) | 73.5 | |||||||||
Interest expense | (255.6) | (82.6) | (19.5) | |||||||||
Interest income | 1 | 1.5 | 0.3 | |||||||||
Other income (expense), net | 8.1 | 3.1 | 1.4 | |||||||||
Intercompany interest and fees | 0 | 0 | 0 | |||||||||
Equity in net income of subsidiaries | 0 | 0 | 0 | |||||||||
Income (loss) from continuing operations before income taxes | [1] | 215.3 | (153.9) | 55.7 | ||||||||
Income Tax Expense (Benefit) | [1] | (92.9) | (10.1) | 47.5 | ||||||||
Income (loss) from continuing operations | 90 | 55.6 | 75.2 | 87.4 | (173.5) | (29) | 20.2 | 38.5 | 308.2 | (143.8) | 8.2 | |
Income (loss) from discontinued operations, net of income taxes | (14.8) | 2.4 | 23.6 | 5.3 | (178.9) | 4.9 | (8.6) | 7.1 | 16.5 | (175.5) | 50.6 | |
Net income (loss) | $ 75.2 | $ 58 | $ 98.8 | $ 92.7 | $ (352.4) | $ (24.1) | $ 11.6 | $ 45.6 | 324.7 | (319.3) | 58.8 | |
Other comprehensive loss, net of tax | (64.8) | (42.8) | 28.4 | |||||||||
Comprehensive income (loss) | 259.9 | (362.1) | 87.2 | |||||||||
Mallinckrodt plc | ||||||||||||
Condensed Consolidating Financial Statements | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Cost of sales | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 116.3 | 37.7 | 5.2 | |||||||||
Research and development expenses | 0 | 0 | 0 | |||||||||
Separation costs | 2.5 | 3.2 | ||||||||||
Restructuring charges, net | 9.8 | 35.3 | 0 | |||||||||
Non-restructuring impairment charges | 0 | |||||||||||
Gain on divestiture and license | 0 | 0 | 0 | |||||||||
Operating income (loss) | (126.1) | (75.5) | (8.4) | |||||||||
Interest expense | (96.4) | 0 | 0 | |||||||||
Interest income | 0 | 0 | 0 | |||||||||
Other income (expense), net | 216.3 | 30.9 | 0.2 | |||||||||
Intercompany interest and fees | (14.7) | (9) | (9.5) | |||||||||
Equity in net income of subsidiaries | 330.6 | (264.8) | 76.4 | |||||||||
Income (loss) from continuing operations before income taxes | 309.7 | (318.4) | 58.7 | |||||||||
Income Tax Expense (Benefit) | (15.9) | 0 | (0.3) | |||||||||
Income (loss) from continuing operations | 325.6 | (318.4) | 59 | |||||||||
Income (loss) from discontinued operations, net of income taxes | (0.9) | (0.9) | (0.2) | |||||||||
Net income (loss) | 324.7 | (319.3) | 58.8 | |||||||||
Other comprehensive loss, net of tax | (64.8) | (42.8) | 28.4 | |||||||||
Comprehensive income (loss) | 259.9 | (362.1) | 87.2 | |||||||||
Mallinckrodt International Finance S.A. | ||||||||||||
Condensed Consolidating Financial Statements | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Cost of sales | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 15.7 | 7.3 | 0.1 | |||||||||
Research and development expenses | 0 | 0 | 0 | |||||||||
Separation costs | 0 | 0.6 | ||||||||||
Restructuring charges, net | 0 | 0 | 0 | |||||||||
Non-restructuring impairment charges | 0 | |||||||||||
Gain on divestiture and license | 0 | 0 | 0 | |||||||||
Operating income (loss) | (15.7) | (7.3) | (0.7) | |||||||||
Interest expense | (230.2) | (86.3) | (19.6) | |||||||||
Interest income | 0.1 | 0 | 0 | |||||||||
Other income (expense), net | 0 | 0 | 0 | |||||||||
Intercompany interest and fees | 0 | 0 | 0 | |||||||||
Equity in net income of subsidiaries | 496.3 | (171.2) | 96.7 | |||||||||
Income (loss) from continuing operations before income taxes | 250.5 | (264.8) | 76.4 | |||||||||
Income Tax Expense (Benefit) | 0 | 0 | 0 | |||||||||
Income (loss) from continuing operations | 250.5 | (264.8) | 76.4 | |||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | |||||||||
Net income (loss) | 250.5 | (264.8) | 76.4 | |||||||||
Other comprehensive loss, net of tax | (64.8) | (42.8) | 28.4 | |||||||||
Comprehensive income (loss) | 185.7 | (307.6) | 104.8 | |||||||||
Other Subsidiaries | ||||||||||||
Condensed Consolidating Financial Statements | ||||||||||||
Net sales | 3,346.9 | 2,082 | 1,712.3 | |||||||||
Cost of sales | 1,493.3 | 1,021.8 | 890 | |||||||||
Gross profit | 1,853.6 | 1,060.2 | 822.3 | |||||||||
Selling, general and administrative expenses | 1,037.8 | 700 | 490.6 | |||||||||
Research and development expenses | 185.1 | 163.5 | 157.9 | |||||||||
Separation costs | 7.1 | 70.4 | ||||||||||
Restructuring charges, net | 30.6 | 46.1 | 23.7 | |||||||||
Non-restructuring impairment charges | 151.6 | |||||||||||
Gain on divestiture and license | (3.5) | (15) | (2.9) | |||||||||
Operating income (loss) | 603.6 | 6.9 | 82.6 | |||||||||
Interest expense | (25.2) | 0 | 0.1 | |||||||||
Interest income | 97.1 | 5.2 | 0.3 | |||||||||
Other income (expense), net | (208.2) | (27.8) | 1.2 | |||||||||
Intercompany interest and fees | 14.7 | 9 | 9.5 | |||||||||
Equity in net income of subsidiaries | 250.5 | (300.2) | 0 | |||||||||
Income (loss) from continuing operations before income taxes | 732.5 | (306.9) | 93.7 | |||||||||
Income Tax Expense (Benefit) | (77) | (10.1) | 47.8 | |||||||||
Income (loss) from continuing operations | 809.5 | (296.8) | 45.9 | |||||||||
Income (loss) from discontinued operations, net of income taxes | 17.4 | (174.6) | 50.8 | |||||||||
Net income (loss) | 826.9 | (471.4) | 96.7 | |||||||||
Other comprehensive loss, net of tax | (69.9) | (84.1) | 35.7 | |||||||||
Comprehensive income (loss) | 757 | (555.5) | 132.4 | |||||||||
Eliminations | ||||||||||||
Condensed Consolidating Financial Statements | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Cost of sales | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||
Research and development expenses | 0 | 0 | 0 | |||||||||
Separation costs | 0 | 0 | ||||||||||
Restructuring charges, net | 0 | 0 | 0 | |||||||||
Non-restructuring impairment charges | 0 | |||||||||||
Gain on divestiture and license | 0 | 0 | 0 | |||||||||
Operating income (loss) | 0 | 0 | 0 | |||||||||
Interest expense | 96.2 | 3.7 | 0 | |||||||||
Interest income | (96.2) | (3.7) | 0 | |||||||||
Other income (expense), net | 0 | 0 | 0 | |||||||||
Intercompany interest and fees | 0 | 0 | 0 | |||||||||
Equity in net income of subsidiaries | (1,077.4) | 736.2 | (173.1) | |||||||||
Income (loss) from continuing operations before income taxes | (1,077.4) | 736.2 | (173.1) | |||||||||
Income Tax Expense (Benefit) | 0 | 0 | 0 | |||||||||
Income (loss) from continuing operations | (1,077.4) | 736.2 | (173.1) | |||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | |||||||||
Net income (loss) | (1,077.4) | 736.2 | (173.1) | |||||||||
Other comprehensive loss, net of tax | 134.7 | 126.9 | (64.1) | |||||||||
Comprehensive income (loss) | $ (942.7) | $ 863.1 | $ (237.2) | |||||||||
[1] | Domestic reflects U.K. in fiscal 2015, and U.S. federal and state in fiscal 2014 and fiscal 2013. |
Condensed Consolidating and 140
Condensed Consolidating and Combining Financial Statements (Schedule of Condensed Consolidating and Combining Statements of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Cash Flows From Operating Activities: | |||
Net cash (used in) provided by operating activities | $ 896.4 | $ 373.4 | $ 135.9 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (148) | (127.8) | (147.9) |
Acquisitions and intangibles, net of cash acquired | (2,154.7) | (2,793.8) | (88.1) |
Intercompany Loan Investment | 0 | 0 | 0 |
Subsidiary dividend proceeds | 0 | ||
Investment in subsidiary | 0 | 0 | 0 |
Restricted cash | 3.1 | 4.1 | 0 |
Other | 3 | 26.7 | 1.3 |
Net cash used in investing activities | (2,296.6) | (2,890.8) | (234.7) |
Cash Flows From Financing Activities: | |||
Issuance of external debt | 3,010 | 3,043.2 | 898.1 |
Repayment of capital leases | (1,848.4) | (34.8) | (1.3) |
Excess tax benefit from share-based compensation | 34.1 | 8.9 | 3.4 |
Debt financing costs | (39.9) | (71.7) | (12) |
Net transfers to parent | 0 | 0 | (515.9) |
Proceeds from exercise of share options | 34.4 | 25.8 | 0.6 |
Subsidiary dividend payment | 0 | ||
Intercompany loan borrowings | 0 | 0 | 0 |
Capital contribution | 0 | 0 | 0 |
Repurchase of ordinary shares, value | (92.2) | (17.5) | |
Other | (28.1) | 0 | 0.1 |
Net cash provided by financing activities | 1,069.9 | 2,953.9 | 373 |
Effect of currency rate changes on cash | (11.6) | (4.2) | 1.3 |
Net (decrease) increase in cash and cash equivalents | (341.9) | 432.3 | 275.5 |
Cash and cash equivalents at beginning of period | 707.8 | 275.5 | 0 |
Cash and cash equivalents at end of period | 365.9 | 707.8 | 275.5 |
Mallinckrodt plc | |||
Cash Flows From Operating Activities: | |||
Net cash (used in) provided by operating activities | 207 | 18.2 | (1.8) |
Cash Flows From Investing Activities: | |||
Capital expenditures | 0 | 0 | 0 |
Acquisitions and intangibles, net of cash acquired | 0 | 0 | 0 |
Intercompany Loan Investment | (149.4) | (25) | 0 |
Subsidiary dividend proceeds | 0 | ||
Investment in subsidiary | 0 | 0 | 0 |
Restricted cash | 0 | 0 | |
Other | 0 | 0 | 0 |
Net cash used in investing activities | (149.4) | (25) | 0 |
Cash Flows From Financing Activities: | |||
Issuance of external debt | 0 | 0 | 0 |
Repayment of capital leases | 0 | 0 | 0 |
Excess tax benefit from share-based compensation | 0 | 0 | 0 |
Debt financing costs | 0 | 0 | 0 |
Net transfers to parent | 0 | ||
Proceeds from exercise of share options | 34.4 | 25.8 | 0.6 |
Subsidiary dividend payment | 0 | ||
Intercompany loan borrowings | 0 | (2.4) | 2.4 |
Capital contribution | 0 | 0 | 0 |
Repurchase of ordinary shares, value | (92.2) | (17.5) | |
Other | 0 | 0 | 0 |
Net cash provided by financing activities | (57.8) | 5.9 | 3 |
Effect of currency rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (0.2) | (0.9) | 1.2 |
Cash and cash equivalents at beginning of period | 0.3 | 1.2 | 0 |
Cash and cash equivalents at end of period | 0.1 | 0.3 | 1.2 |
Mallinckrodt International Finance S.A. | |||
Cash Flows From Operating Activities: | |||
Net cash (used in) provided by operating activities | (148.2) | (65) | (8.4) |
Cash Flows From Investing Activities: | |||
Capital expenditures | 0 | 0 | 0 |
Acquisitions and intangibles, net of cash acquired | 0 | 0 | 0 |
Intercompany Loan Investment | 0 | (298.1) | (2.4) |
Subsidiary dividend proceeds | 300.5 | ||
Investment in subsidiary | (3,014.4) | (3,735.5) | (68) |
Restricted cash | 0 | 0 | |
Other | 0 | 0 | 0 |
Net cash used in investing activities | (3,014.4) | (3,733.1) | (70.4) |
Cash Flows From Financing Activities: | |||
Issuance of external debt | 2,890 | 2,893.3 | 898.1 |
Repayment of capital leases | (258.3) | (3.3) | 0 |
Excess tax benefit from share-based compensation | 0 | 0 | 0 |
Debt financing costs | (39.1) | (70.7) | (12) |
Net transfers to parent | (1,160.4) | ||
Proceeds from exercise of share options | 0 | 0 | 0 |
Subsidiary dividend payment | 0 | ||
Intercompany loan borrowings | 703.6 | 940.8 | 409.6 |
Capital contribution | 0 | 0 | 0 |
Repurchase of ordinary shares, value | 0 | 0 | |
Other | 0 | 0 | 0 |
Net cash provided by financing activities | 3,296.2 | 3,760.1 | 135.3 |
Effect of currency rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 133.6 | (38) | 56.5 |
Cash and cash equivalents at beginning of period | 18.5 | 56.5 | 0 |
Cash and cash equivalents at end of period | 152.1 | 18.5 | 56.5 |
Other Subsidiaries | |||
Cash Flows From Operating Activities: | |||
Net cash (used in) provided by operating activities | 837.6 | 420.2 | 146.1 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (148) | (127.8) | (147.9) |
Acquisitions and intangibles, net of cash acquired | (2,154.7) | (2,793.8) | (88.1) |
Intercompany Loan Investment | (554.2) | (915.8) | (409.6) |
Subsidiary dividend proceeds | 0 | ||
Investment in subsidiary | 0 | 0 | 0 |
Restricted cash | 3.1 | 4.1 | |
Other | 3 | 26.7 | 1.3 |
Net cash used in investing activities | (2,850.8) | (3,806.6) | (644.3) |
Cash Flows From Financing Activities: | |||
Issuance of external debt | 120 | 149.9 | 0 |
Repayment of capital leases | (1,590.1) | (31.5) | (1.3) |
Excess tax benefit from share-based compensation | 34.1 | 8.9 | 3.4 |
Debt financing costs | (0.8) | (1) | 0 |
Net transfers to parent | 644.5 | ||
Proceeds from exercise of share options | 0 | 0 | 0 |
Subsidiary dividend payment | (300.5) | ||
Intercompany loan borrowings | 0 | 300.5 | 0 |
Capital contribution | 3,014.4 | 3,735.5 | 68 |
Repurchase of ordinary shares, value | 0 | 0 | |
Other | (28.1) | 0 | 0.1 |
Net cash provided by financing activities | 1,549.5 | 3,861.8 | 714.7 |
Effect of currency rate changes on cash | (11.6) | (4.2) | 1.3 |
Net (decrease) increase in cash and cash equivalents | (475.3) | 471.2 | 217.8 |
Cash and cash equivalents at beginning of period | 689 | 217.8 | 0 |
Cash and cash equivalents at end of period | 213.7 | 689 | 217.8 |
Eliminations | |||
Cash Flows From Operating Activities: | |||
Net cash (used in) provided by operating activities | 0 | 0 | 0 |
Cash Flows From Investing Activities: | |||
Capital expenditures | 0 | 0 | 0 |
Acquisitions and intangibles, net of cash acquired | 0 | 0 | 0 |
Intercompany Loan Investment | 703.6 | 1,238.9 | 412 |
Subsidiary dividend proceeds | (300.5) | ||
Investment in subsidiary | 3,014.4 | 3,735.5 | 68 |
Restricted cash | 0 | 0 | |
Other | 0 | 0 | 0 |
Net cash used in investing activities | 3,718 | 4,673.9 | 480 |
Cash Flows From Financing Activities: | |||
Issuance of external debt | 0 | 0 | 0 |
Repayment of capital leases | 0 | 0 | 0 |
Excess tax benefit from share-based compensation | 0 | 0 | 0 |
Debt financing costs | 0 | 0 | 0 |
Net transfers to parent | 0 | ||
Proceeds from exercise of share options | 0 | 0 | 0 |
Subsidiary dividend payment | 300.5 | ||
Intercompany loan borrowings | (703.6) | (1,238.9) | (412) |
Capital contribution | (3,014.4) | (3,735.5) | (68) |
Repurchase of ordinary shares, value | 0 | 0 | |
Other | 0 | 0 | 0 |
Net cash provided by financing activities | (3,718) | (4,673.9) | (480) |
Effect of currency rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 |
Subsequent Events (Subsequent E
Subsequent Events (Subsequent Events) (Details) - USD ($) $ in Millions | Nov. 19, 2015 | Jan. 23, 2015 |
Subsequent Event [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 300 | |
2015 Mallinckrodt Pharmaceuticals Stock and Incentive Plan [Member] | ||
Subsequent Event [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 800 | |
Stock Repurchase Program, Increase in Authorized Amount | $ 500 |
Schedule II - Valuation and 142
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 3.7 | $ 3.6 | $ 9.4 |
Charged to Income | 1.9 | 0.4 | 1.1 |
Additions and Other | 0 | 0 | 0 |
Deductions | (0.9) | (0.3) | (6.9) |
Balance at End of Period | 4.7 | 3.7 | 3.6 |
Sales reserve accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 404.9 | 287.7 | 235 |
Charged to Income | 2,187.8 | 1,720.9 | 1,171.9 |
Additions and Other | 1.3 | 30.6 | 0 |
Deductions | (2,194.7) | (1,634.3) | (1,119.2) |
Balance at End of Period | 399.3 | 404.9 | 287.7 |
Tax valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 76.9 | 28.3 | 15.3 |
Charged to Income | 155.4 | 33.9 | 10 |
Additions and Other | 0.2 | 14.7 | 3 |
Deductions | (0.5) | 0 | 0 |
Balance at End of Period | $ 233 | $ 76.9 | $ 28.3 |