Document And Entity Information
Document And Entity Information [Abstract] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 23, 2016 | Mar. 25, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Common Stock, Shares Outstanding | 105,858,223 | ||
Entity Registrant Name | Mallinckrodt plc | ||
Entity Central Index Key | 1,567,892 | ||
Trading Symbol | MNK | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 6,564.4 |
Consolidated and Combined State
Consolidated and Combined Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Net sales | $ 3,380.8 | $ 2,923.1 | $ 1,650.3 | |
Cost of sales | 1,525.8 | 1,300.2 | 765.7 | |
Gross profit | 1,855 | 1,622.9 | 884.6 | |
Selling, general and administrative expenses | 925.3 | 1,023.8 | 611 | |
Research and development expenses | 262.2 | 203.3 | 140.5 | |
Separation costs | 0 | 0 | 9.6 | |
Other Asset Impairment Charges | 16.9 | 0 | 27.1 | |
Restructuring charges, net | 33.3 | 45 | 68 | |
Non-restructuring impairment charges | 16.9 | 0 | 27.1 | |
Nonoperating Gains (Losses) | 0 | 3 | 15 | |
Gain on divestiture and license | 0 | (3) | (15) | |
Operating income | 617.3 | 353.8 | 43.4 | |
Interest expense | (384.6) | (255.6) | (82.6) | |
Interest income | 1.3 | 1 | 1.5 | |
Other (expense) income, net | (0.6) | 8.1 | 3.1 | |
Income (loss) from continuing operations before income taxes | [1] | 233.4 | 107.3 | (34.6) |
Benefit from income taxes | [1] | (255.6) | (129.3) | (12.6) |
Income (loss) from continuing operations | 489 | 236.6 | (22) | |
Income (loss) from discontinued operations, net of tax expense (benefit) of $43.5, $47.9 and $(32.2). | 154.7 | 88.1 | (297.3) | |
Net income (loss) | $ 643.7 | $ 324.7 | $ (319.3) | |
Basic earnings per share (Note 8): | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 4.42 | $ 2.03 | $ (0.34) | |
Income (Loss) from Discontinued Operations, Per Basic Share | 1.40 | 0.75 | (4.58) | |
Net income (in usd per share) | $ 5.82 | $ 2.78 | $ (4.92) | |
Weighted Average Number of Shares Outstanding, Basic | 110.6 | 115.8 | 64.9 | |
Diluted earnings per share (Note 8): | ||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 4.39 | $ 2 | $ (0.34) | |
Income (Loss) from Discontinued Operations, Per Diluted Share | 1.39 | 0.75 | (4.58) | |
Net income (in usd per share) | $ 5.77 | $ 2.75 | $ (4.92) | |
Diluted weighted-average shares oustanding (in shares) | 111.5 | 117.2 | 64.9 | |
[1] | Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. |
Consolidated and Combined Stat3
Consolidated and Combined Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Income Statement [Abstract] | |||
Tax (benefit) expense on income (loss) from discontinued operations | $ 43.5 | $ 47.9 | $ (32.2) |
Consolidated and Combined Stat4
Consolidated and Combined Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ 115 | $ 199.3 | $ 118.3 | $ 211.1 | $ 75.2 | $ 58 | $ 98.8 | $ 92.7 | $ 643.7 | $ 324.7 | $ (319.3) |
Other comprehensive (loss), net of tax | |||||||||||
Currency translation adjustments | (58.6) | (70.8) | (27.6) | ||||||||
Unrecognized gain on derivatives, net of tax expense of $0.2, $0.2 and $0.2 | 0.5 | 0.4 | 0.5 | ||||||||
Unrecognized gain (loss) on benefit plans, net of tax (benefit) expense of $(15.0), $(2.1) and $(7.3) | (28.4) | 5.6 | (15.7) | ||||||||
Total other comprehensive (loss), net of tax | (86.5) | (64.8) | (42.8) | ||||||||
Comprehensive income (loss) | $ 557.2 | $ 259.9 | $ (362.1) |
Consolidated and Combined Stat5
Consolidated and Combined Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrecognized loss on derivatives, tax | $ (0.2) | $ (0.2) | $ (0.2) |
Unrecognized gain (loss) on benefit plans, tax | $ 15 | $ 2.1 | $ 7.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 280.5 | $ 365.9 |
Accounts receivable, less allowance for doubtful accounts of $4.0 and $3.6 | 465.8 | 489.6 |
Inventories | 335.6 | 262.1 |
Deferred income taxes | 0 | 139.2 |
Prepaid expenses and other current assets | 115.9 | 194.4 |
Current assets held for sale | 308.8 | 394.9 |
Total current assets | 1,506.6 | 1,846.1 |
Property, plant and equipment, net | 844 | 793 |
Goodwill | 3,705.3 | 3,649.4 |
Intangible assets, net | 9,182.3 | 9,666.3 |
Long-term assets held for sale | 0 | 223.6 |
Other assets | 260.5 | 225.7 |
Total Assets | 15,498.7 | 16,404.1 |
Current Liabilities: | ||
Current maturities of long-term debt | 256.3 | 22 |
Accounts payable | 110.1 | 116.8 |
Accrued payroll and payroll-related costs | 116 | 95 |
Accrued interest | 80.6 | 80.2 |
Accrued and other current liabilities | 550.9 | 486.1 |
Current liabilities held for sale | 120.8 | 129.3 |
Total current liabilities | 1,234.7 | 929.4 |
Long-term debt | 5,788.7 | 6,474.3 |
Pension and postretirement benefits | 144.9 | 114.2 |
Environmental liabilities | 73.4 | 73.3 |
Deferred income taxes | 2,581.4 | 3,117.5 |
Accrued Income Taxes, Noncurrent | 67.7 | 121.3 |
Long-term liabilities held for sale | 0 | 53.9 |
Other liabilities | 337.2 | 209 |
Total Liabilities | 10,228 | 11,092.9 |
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; 118,137,297 and 117,513,370 issued; 107,167,693 and 116,283,149 outstanding | 23.6 | 23.5 |
Ordinary shares held in treasury at cost, 10,969,604 and 1,230,221 | (762.6) | (109.7) |
Additional paid-in capital | 5,412.7 | 5,357.6 |
Retained earnings | 682.6 | 38.9 |
Accumulated other comprehensive income | (85.6) | 0.9 |
Total Shareholders' Equity | 5,270.7 | 5,311.2 |
Total Liabilities and Shareholders' Equity | $ 15,498.7 | $ 16,404.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Millions | Sep. 30, 2016€ / shares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 25, 2015€ / shares | Sep. 25, 2015USD ($)$ / sharesshares |
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts | $ | $ 4 | $ 3.6 | ||
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) | 118,137,197 | 117,513,370 | ||
Ordinary shares, shares outstanding (in shares) | 107,167,693 | 116,283,149 | ||
Ordinary shares held in treasury (in shares) | 10,969,604 | 1,230,221 |
Consolidated and Combined Stat8
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 643.7 | $ 324.7 | $ (319.3) |
Adjustments to reconcile net cash provided by operating activities: | |||
Depreciation and amortization | 834.5 | 672.5 | 275.9 |
Share-based compensation | 42.9 | 117 | 67.7 |
Deferred income taxes | (432.9) | (191.6) | (107.5) |
Non-cash impairment charges | 16.9 | 0 | 381.2 |
Inventory provisions | 29.2 | 0 | 32.1 |
Gain (Loss) on Disposition of Business | (95.3) | 0 | 0 |
Other non-cash items | 29.6 | (59.6) | (23.6) |
Changes in assets and liabilities, net of the effects of acquisitions: | |||
Accounts receivable, net | 31.2 | 0.7 | (51.3) |
Inventories | (17.3) | 61.3 | 56 |
Accounts payable | (9.7) | 20.4 | (32.9) |
Income taxes | 93.9 | 30.2 | (54.8) |
Other | 17.9 | (79.2) | 149.9 |
Net cash provided by operating activities | 1,184.6 | 896.4 | 373.4 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (182.9) | (148) | (127.8) |
Acquisitions and intangibles, net of cash acquired | (245.4) | (2,154.7) | (2,793.8) |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 267 | 0 | 0 |
Restricted cash | 47.3 | 3.1 | 4.1 |
Other | 6 | 3 | 26.7 |
Net cash used in investing activities | (108) | (2,296.6) | (2,890.8) |
Cash Flows from Financing Activities: | |||
Issuance of external debt | 98.3 | 3,010 | 3,043.2 |
Repayment of external debt and capital leases | (568.6) | (1,848.4) | (34.8) |
Excess tax benefit from share-based compensation | 0 | 34.1 | 8.9 |
Debt financing costs | (0.1) | (39.9) | (71.7) |
Proceeds from exercise of share options | 14 | 34.4 | 25.8 |
Repurchase of shares | (652.9) | (92.2) | (17.5) |
Other | (53) | (28.1) | 0 |
Net cash (used in) provided by financing activities | (1,162.3) | 1,069.9 | 2,953.9 |
Effect of currency rate changes on cash | 0.3 | (11.6) | (4.2) |
Net (decrease) increase in cash and cash equivalents | (85.4) | (341.9) | 432.3 |
Cash and cash equivalents at beginning of period | 365.9 | 707.8 | 275.5 |
Cash and cash equivalents at end of period | 280.5 | 365.9 | 707.8 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 332.4 | 200.5 | 57.2 |
Cash paid for income taxes, net | $ 165.4 | $ 123.8 | $ 128 |
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 | Accumulated Other Comprehensive Income |
Beginning balance, shares at Sep. 27, 2013 | 57,700,000 | 0 | ||||
Beginning balance, value at Sep. 27, 2013 | $ 1,255.6 | $ 11.5 | $ 0 | $ 1,102.1 | $ 33.5 | $ 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) | ||||
Net transfers to parent | 3,979.6 | |||||
Ordinary shares issued in connection with the Questcor acquisition, shares | 57,300,000 | |||||
Ordinary shares issued in connection with the Questcor acquisition, value | $ 11.4 | 3,968.2 | ||||
Share options exercised, shares | 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) | 65.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 324.7 | 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 | 0.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 643.7 | |||||
Currency translation adjustments | (58.6) | (58.6) | ||||
Change in derivatives, net of tax | 0.5 | 0.5 | ||||
Minimum pension liability, net of tax | $ (28.4) | (28.4) | ||||
Share options exercised, shares | 413,830 | 400,000 | ||||
Share options exercised, value | $ 14 | $ 0.1 | 13.9 | |||
Vesting of restricted shares, shares | 200,000 | |||||
Vesting of restricted shares, value | 0 | $ 0 | 0 | |||
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation | (1.7) | (1.7) | ||||
Share-based compensation | 42.9 | 42.9 | ||||
Repurchase of ordinary shares, shares | 9,800,000 | |||||
Repurchase of ordinary shares, value | (652.9) | $ 652.9 | ||||
Ending balance, shares at Sep. 30, 2016 | 118,100,000 | 11,000,000 | ||||
Ending balance, value at Sep. 30, 2016 | $ 5,270.7 | $ 23.6 | $ (762.6) | $ 5,412.7 | $ 682.6 | $ (85.6) |
Background and Basis of Present
Background and Basis of Presentation (Notes) | 12 Months Ended |
Sep. 30, 2016 | |
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 business that develops, manufactures, markets and distributes specialty pharmaceutical products and therapies. Therapeutic areas of focus include autoimmune and rare disease specialty areas (including neurology, rheumatology, nephrology, ophthalmology and pulmonology); immunotherapy and neonatal respiratory critical care therapies; analgesics and hemostasis products and central nervous system drugs. On August 24, 2016, the Company announced that it had entered into a definitive agreement to sell its Nuclear Imaging business to IBA Molecular ("IBAM"), which is expected to be completed during the first half of calendar 2017. The Nuclear Imaging business was deemed to be held for sale. As a result, prior year balances have been recast to present the financial results of the Nuclear Imaging business as a discontinued operation. The Company completed the sale of the contrast media and delivery systems ("CMDS") business on November 27, 2015. The financial results of this business are presented as a discontinued operation. The two reportable segments are further described below: • Specialty Brands produces and markets branded pharmaceutical products and therapies; and • Specialty Generics produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredients ("API") consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. 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 consolidated 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 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 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 financial statements up to the date of disposal and, where appropriate, these operations have been reflected as discontinued operations. Divestitures of product lines not meeting the criteria for discontinued operations 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. 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 reserves 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 was 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. Beginning in the first quarter of fiscal year 2016, we revised the presentation of certain medical affairs costs to better align with industry practice, which were previously included in selling, general and administrative ("SG&A") expenses and are now included in research and development ("R&D") expenses. As a result, $56.4 million and $22.5 million of expenses previously included in SG&A for the fiscal years ended September 25, 2015 and September 26, 2014, respectively, have been classified as R&D expenses to conform to this change. No other financial statement line items were impacted by this change in classification. Fiscal Year The Company reports its results based on a "52-53 week" year ending on the last Friday of September. Fiscal 2016 consisted of 53 weeks and 2015 and 2014 each consisted of 52 weeks. Unless otherwise indicated, fiscal 2016 , 2015 and 2014 refer to the Company's fiscal years ended September 30, 2016 , September 25, 2015 and September 26, 2014 , respectively. On May 17, 2016, the Board of Directors of the Company approved a change in the Company’s fiscal year end to the last Friday in December from the last Friday in September. The change in fiscal year will become effective for the Company’s 2017 fiscal year, which will commence on December 31, 2016 and end on December 29, 2017. As a result, the Company will have a transition period which commenced on October 1, 2016 and will end on December 30, 2016. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
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, 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 $12.4 million , $11.6 million and $11.8 million in fiscal 2016 , 2015 and 2014 , 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, medical affairs 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 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 2016 , the Company had $3.6 million of foreign currency losses, and during fiscal 2015 and 2014 , the Company had $31.6 million and $6.0 million of foreign currency gains , respectively, 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 $0.2 million gain in fiscal 2016, a $24.8 million loss in fiscal 2015, and a $5.8 million loss in fiscal 2014 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 Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been reflected in the consolidated 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. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Sep. 30, 2016 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Standards | 3. Recently Issued Accounting Standards 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 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 year 2018 (following the change in fiscal year). The FASB subsequently issued additional ASUs to clarify the guidance of ASU 2014-09. The ASUs issued include ASU 2016-08, "Revenue from Contracts with Customers;" ASU 2016-10 "Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing;" and ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients." The Company is assessing the transition approach it will utilize and potential impact of adoption. 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 (following the change in fiscal year). The Company does not anticipate the adoption of this update to have a material impact. FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," in September 2015. This update requires an acquirer to recognize adjustments to the provisional amounts that are identified during the measurement period in the reporting period in which the adjusting amounts are determined. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for the Company in the first quarter of fiscal 2017 (following the change in fiscal year). The update is not expected to have a material impact for historical acquisitions. The FASB issued ASU 2015-17, "Balance Sheet Reclassification of Deferred Taxes," in November 2015. This update requires all deferred tax assets and liabilities, along with any related valuation allowance, to be classified as noncurrent on the consolidated balance sheets. Each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The Company elected to early adopt this guidance as of September 30, 2016 on a prospective basis. As such, the Company reclassified $122.6 million of current deferred income taxes to noncurrent as of September 30, 2016. The FASB issued ASU 2016-02, "Leases," in February 2016. This update was issued to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). This guidance is effective for the Company in the first quarter of fiscal 2019 (following the change in fiscal year). Upon adoption, the lessee will apply the new standard using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company is assessing the potential impact of this guidance. The FASB issued ASU 2016-09, "Stock Compensation," in March 2016. This update simplifies several aspects of the accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification of certain tax effects within the statement of cash flows. This guidance is effective for the Company in the first quarter of fiscal 2017 (following the change in fiscal year). Upon adoption, the Company will recognize the incremental income tax expense or benefit related to share option exercises and restricted share unit vesting in the statement of income, whereas these tax effects are presently recognized directly in shareholders' equity. In addition, the incremental tax benefit associated with these events will be classified as a cash inflow from operating activity as compared with a financing activity, as required under current guidance. The FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” in August 2016 and ASU 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash," in November 2016. This update provides guidance for nine targeted clarifications with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. The guidance is effective for the Company in the first quarter of fiscal 2018 (following the change in fiscal year), with early adoption permitted. The Company is assessing the potential impact of this guidance. The FASB issued ASU 2016-16, "Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory," in October 2016. This update simplifies the practice in how income tax consequences of an intra-entity transfer of an asset other than inventory should be recognized. Upon adoption, the entity must recognize such income tax consequences when the intra-entity transfer occurs rather than waiting until such time as the asset has been sold to an outside party. The guidance is effective for the Company in the first quarter of fiscal 2018 (following the change in fiscal year). The Company is assessing the potential impact of this guidance. |
Discontinued Operations and Div
Discontinued Operations and Divestitures | 12 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations [Abstract] | |
Discontinued Operations and Divestitures | 4. Discontinued Operations and Divestitures Discontinued Operations Nuclear Imaging: During the fourth quarter of fiscal 2016, the Company announced that it had entered into a definitive agreement to sell its Nuclear Imaging business to IBAM, which is expected to be completed during the first half of calendar 2017. The Nuclear Imaging business was deemed to be held for sale and the financial results of this business are presented as a discontinued operation. The following table summarizes the financial results of the Nuclear Imaging business for fiscal years 2016, 2015 and 2014 as presented in the consolidated statements of income: Fiscal Year Major line items constituting income (loss) from discontinued operations 2016 2015 2014 Net sales $ 418.6 $ 423.8 $ 431.7 Cost of sales 216.6 193.1 256.1 Selling, general and administrative 83.7 89.6 111.5 Restructuring charges, net 2.3 (4.6 ) 13.4 Non-restructuring impairment charges — — 124.5 Other 5.7 37.7 45.5 Income (loss) from discontinued operations 110.3 108.0 (119.3 ) Income tax expense 49.0 36.4 2.5 Income (loss) from discontinued operations, net of income taxes $ 61.3 $ 71.6 $ (121.8 ) The fiscal 2014 non-restructuring impairment charge of $124.5 million includes charges of $119.5 million associated with goodwill. Further discussion of this impairment charge is included within Note 11. The fiscal 2016 income tax expense of $49.0 million was impacted by tax expense of $11.7 million associated with the rate difference between Domestic and International jurisdictions, $14.4 million of tax expense associated with accrued income tax liabilities and uncertain tax positions, and $0.9 million of tax expense associated with permanently nondeductible, nontaxable, and other items. The fiscal 2015 income tax expense of $36.4 million was impacted by $14.3 million of tax expense associated with the rate difference between Domestic and International jurisdictions and $0.4 million of tax expense associated with permanently nondeductible, nontaxable, and other items. The fiscal 2014 income tax expense of $2.5 million was impacted by receiving no tax benefit on an impairment of $119.5 million , by $3.1 million of tax expense associated with the rate difference between Domestic and International jurisdictions, by a $1.3 million of tax benefit associated with accrued income tax liabilities and uncertain tax positions, and $0.7 million of tax expense associated with permanently nondeductible, nontaxable, and other items. Fiscal 2016 reflects $0.1 million of Domestic current income tax expense, $52.5 million of International current income tax expense, and $3.6 million of International deferred income tax benefit. Fiscal 2015 reflects $0.1 million of Domestic current income tax expense, $27.8 million of International current income tax expense, and $8.6 million of International deferred income tax expense. Fiscal 2014 reflects $18.6 million of Domestic current income tax expense, $1.0 million of International current income tax benefit, $7.8 million of Domestic deferred income tax benefit, and $7.4 million of International deferred income tax benefit. Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. The following table summarizes the assets and liabilities of the Nuclear Imaging business that are classified as held for sale on the consolidated balance sheets as of September 30, 2016 and September 25, 2015: September 30, 2016 September 25, 2015 Carrying amounts of major classes of assets included as part of discontinued operations Accounts receivable $ 53.7 $ 58.9 Inventories 19.0 19.7 Property, plant and equipment, net 189.0 198.3 Other current and non-current assets 47.1 41.7 Total assets classified as held for sale in the balance sheet $ 308.8 $ 318.6 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable $ 17.7 $ 16.2 Other current and non-current liabilities 103.1 94.2 Total liabilities classified as held for sale in the balance sheet $ 120.8 $ 110.4 The following table summarizes significant cash and non-cash transactions of the Nuclear Imaging business that are included within the consolidated statements of cash flows for the fiscal years 2016, 2015 and 2014: Fiscal Year 2016 2015 2014 Depreciation $ 20.9 $ 13.1 $ 17.9 Capital expenditures 9.7 7.6 8.1 Non-cash impairment charges — — 124.5 All other notes to the consolidated financial statements that were impacted by this discontinued operation have been reclassified accordingly. CMDS: On November 27, 2015, the Company completed the sale of the CMDS business to Guerbet S.A. ("Guerbet") for cash consideration of approximately $270.0 million , subject to net working capital adjustments. Subsequent to the sale of the CMDS business, the Company continues to supply certain products under a supply agreement with Guerbet. The following table summarizes the financial results of the CMDS business for fiscal 2016, 2015 and 2014 as presented in the consolidated statements of income: Fiscal Year Major line items constituting income (loss) from discontinued operations 2016 2015 2014 Net sales $ 61.0 $ 413.8 $ 495.8 Cost of sales 46.9 306.4 352.9 Selling, general and administrative 20.3 97.5 97.1 Restructuring charges, net — 0.3 47.2 Non-restructuring impairment charges — — 204.0 Other 1.2 4.7 4.1 (Loss) income from discontinued operations (7.4 ) 4.9 (209.5 ) Gain on disposal of discontinued operations 95.3 — — Income from discontinued operations, before income taxes 87.9 4.9 (209.5 ) Income tax expense (benefit) (2.5 ) 10.8 (34.7 ) Income (loss) from discontinued operations net of tax $ 90.4 $ (5.9 ) $ (174.8 ) 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 2016 income tax benefit of $2.5 million impacted by a $0.4 million benefit related to adjust the fiscal 2015 accrual for taxes paid in connection with the $95.3 million gain on the disposition and a $2.1 million benefit related to the $7.4 million loss from discontinued operations. 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. Fiscal 2016 reflects $0.9 million of International current income tax expense, $3.4 million of International deferred income tax benefit, and none being allocable to the Domestic income tax provision. 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. Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. 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 30, 2016 and September 25, 2015: September 30, 2016 September 25, 2015 Carrying amounts of major classes of assets included as part of discontinued operations Accounts receivable $ — $ 68.5 Inventories — 86.3 Property, plant and equipment, net — 60.3 Intangible assets, net — 27.7 Other current and non-current assets — 57.1 Total assets classified as held for sale in the balance sheet $ — $ 299.9 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable $ — $ 22.0 Other current and non-current liabilities — 50.8 Total liabilities classified as held for sale in the balance sheet $ — $ 72.8 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 2016, 2015 and 2014: Fiscal Year 2016 2015 2014 Depreciation $ — $ 15.5 $ 18.9 Amortization — 2.3 7.5 Capital expenditures 1.6 9.5 12.3 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") 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 2016, 2015, and 2014, the Company recorded a gain, net of tax, of $3.0 million , and losses, net of tax, of $0.1 million , and $0.7 million , respectively. The gains and losses were primarily related to the indemnification obligations to the purchaser, which are discussed in Note 17. 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 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. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and License Agreements | 5. Acquisitions and License Agreements Business Acquisitions Stratatech On August 31, 2016, the Company acquired a developmental program from Stratatech Corporation - which includes StrataGraft®, a regenerative skin tissue and a technology platform for genetically enhanced skin tissues - for upfront consideration of $76.0 million , and contingent milestone payments, which are primarily regulatory, and royalty obligations that could result in up to $121.0 million of additional consideration ("the Stratatech Acquisition"). Stratatech is a regenerative medicine company focused on the development of unique, proprietary skin substitute products. Developmental products include StrataGraft® regenerative skin tissue ("StrataGraft") and a technology platform for genetically enhanced skin tissues. The Stratatech Acquisition was funded through cash on hand. Hemostasis Products On February 1, 2016, the Company acquired three commercial stage topical hemostasis drugs from The Medicines Company ("the Hemostasis Acquisition") - RECOTHROM® Thrombin topical (Recombinant) ("Recothrom"), PreveLeak TM Surgical Sealant ("PreveLeak"), and RAPLIXA TM (Fibrin Sealant (Human)) ("Raplixa") - for upfront consideration of $173.5 million , inclusive of existing inventory, and contingent sales-based milestone payments that could result in up to $395.0 million of additional consideration. The fair value of the contingent consideration and acquired contingent liabilities associated with the transaction were $52.0 million and $10.6 million , respectively, at February 1, 2016. The Hemostasis Acquisition was funded through cash on hand. 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. 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 ("Inomax"), 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 pharmaceutical 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 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, ophthalmology and pulmonology. Questcor also supplied 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 pharmaceutical company focused on commercializing products principally for use in the hospital setting, for total consideration of approximately $1.3 billion ("the Cadence Acquisition"). The acquisition was primarily funded through a $1.3 billion senior secured term loan credit facility. 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. Fair Value Allocation The following amounts represent the preliminary allocation of the fair value of the identifiable assets acquired and liabilities assumed for the Stratatech Acquisition and Hemostasis Acquisition, and final allocation of the fair value of the identifiable assets acquired and liabilities assumed for the Therakos Acquisition, Ikaria Acquisition, Questcor Acquisition and Cadence Acquisition: Stratatech Hemostasis Therakos Ikaria Questcor Cadence Cash $ 0.2 $ 3.3 $ 41.3 $ 77.3 $ 445.1 $ 43.2 Inventory — 94.6 23.5 26.3 67.9 21.0 Intangible assets 99.8 132.7 1,170.0 1,971.0 5,601.1 1,300.0 Goodwill (non-tax deductible) 57.3 3.3 429.9 795.0 1,789.4 318.1 Other assets, current and non-current (1) 3.2 7.9 40.2 174.3 274.3 18.0 Total assets acquired 160.5 241.8 1,704.9 3,043.9 8,177.8 1,700.3 Current liabilities 4.3 3.6 24.7 33.0 168.9 48.8 Unpaid purchase consideration (current) — — — — 128.8 — Other liabilities (non-current) — 10.6 0.6 15.8 186.8 — Deferred tax liabilities, net (non-current) 24.3 2.1 315.7 620.5 1,906.8 292.3 Contingent consideration (non-current) 54.9 52.0 — — — — Total debt 1.0 — 344.8 1,121.0 — 30.0 Total liabilities assumed 84.5 68.3 685.8 1,790.3 2,391.3 371.1 Net assets acquired $ 76.0 $ 173.5 $ 1,019.1 $ 1,253.6 $ 5,786.5 $ 1,329.2 (1) This amount includes $1.3 million , zero , $22.0 million , $73.8 million , $87.3 million , and $14.7 million of accounts receivable for the Stratatech Acquisition, Hemostasis Acquisition, Therakos Acquisition, Ikaria Acquisition, Questcor Acquisition and Cadence Acquisition, respectively, which is also the gross contractual value. The following reconciles the total consideration to net assets acquired: Stratatech Hemostasis Therakos Ikaria Questcor Cadence Total consideration, net of cash $ 130.7 $ 222.2 $ 977.8 $ 1,176.3 $ 5,470.2 $ 1,286.0 Plus: cash assumed in acquisition 0.2 3.3 41.3 77.3 445.1 43.2 Total consideration 130.9 225.5 1,019.1 1,253.6 5,915.3 1,329.2 Less: unpaid purchase consideration — — — — (128.8 ) — Less: non-cash contingent consideration (54.9 ) (52.0 ) — — — — Net assets acquired $ 76.0 $ 173.5 $ 1,019.1 $ 1,253.6 $ 5,786.5 $ 1,329.2 Intangible assets acquired consist of the following: Stratatech Amount Amortization Period In-process research and development - StrataGraft $ 99.8 Non-Amortizable The IPR&D intangible asset relates to StrataGraft. The fair value of the IPR&D was determined using the income approach, which is a valuation technique that provides an estimate of fair value of the assets based on the market participant expectations of cash flows the asset would generate. The cash flows were discounted at a rate of 16.5% . The IPR&D discount rate for StrataGraft 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 future product development, the assembled workforce, 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. Hemostasis Products Amount Amortization Period Raplixa - Completed technology $ 73.0 15 years Recothrom - Completed technology 42.7 13 years PreveLeak - Completed technology 17.0 13 years $ 132.7 The completed technology intangible assets relate to each of the acquired drugs. The fair value of the intangible assets were determined using the income approach. The cash flows were discounted commensurate with the level of risk associated with each asset or its projected cash flows. The completed technology intangible assets utilized a discount rate of 17.0% , 16.0% and 17.0% for Raplixa, Recothrom and PreveLeak, respectively. All assets acquired are included within the Company's Specialty Brands segment. 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. The completed technology intangible asset utilized a discount rate of 17.0% . 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. Completed technology, trademark and 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. 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. The IPR&D 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. 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. 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. Financial Results - The amount of net sales and earnings included in the Company's results for the periods presented were as follows: Net sales 2016 2015 2014 Therakos $ 207.6 $ — $ — Ikaria 491.5 191.9 — Questcor 1,218.4 1,125.9 129.2 Cadence 284.3 263.0 124.4 $ 2,201.8 $ 1,580.8 $ 253.6 Operating income (loss) Therakos $ 12.5 $ — $ — Ikaria 201.1 47.1 — Questcor 371.5 223.3 17.4 Cadence (84.5 ) (97.3 ) (66.9 ) $ 500.6 $ 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 2016 2015 2014 Therakos $ 78.0 $ — $ — Ikaria 124.5 57.1 — Questcor 300.7 301.4 34.9 Cadence 162.5 162.5 85.9 $ 665.7 $ 521.0 $ 120.8 During fiscal 2016, 2015 and 2014, the Company recognized $24.3 million , $44.1 million and $25.7 million , respectively, of expense 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 2016, 2015 and 2014 for each of the acquisitions discussed above were as follows: Acquisition-related costs 2016 2015 2014 Stratatech $ 3.7 $ — $ — Hemostasis Products 2.7 — — Therakos 0.3 22.5 — Ikaria 0.2 30.9 — Questcor — — 47.5 Cadence — — 17.6 $ 6.9 $ 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, Therakos and Ikaria, 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 2.58% ) entered into in connection with the Therakos Acquisition and 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), 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 acquisitions occurred on the assumed dates, 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 acquisitions or revenue growth that may be anticipated. 2016 2015 Net sales $ 3,380.8 $ 3,332.0 Income from continuing operations 499.4 288.9 Basic earnings per share from continuing operations $ 4.52 $ 2.49 Diluted earnings from per share continuing operations 4.48 2.47 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 2016 , 2015 and 2014, the Company paid royalties of $46.3 million , $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 2016 , $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 2016 , 2015 and 2014 , the Company paid royalties of $0.9 million , $3.2 million and $22.0 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 2016 , 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, of which $15.0 million of these payments were made, which were capitalized as an intangible asset. 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. 30, 2016 | |
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 included actions across the Specialty Brands, Specialty Generics and former Global Imaging segments, as well as within corporate functions. The Company expected to incur charges of $100.0 million to $125.0 million under this program as the specific actions required to execute on these initiatives were identified and approved. As of September 30, 2016 , the Company has substantially completed the 2013 Mallinckrodt Program. In July 2016, the Company's Board of Directors approved a $100.0 million to $125.0 million restructuring program ("the 2016 Mallinckrodt Program") designed to further improve its cost structure, as the Company continues to transform its business. The 2016 Mallinckrodt Program is expected to include actions across the Specialty Brands and Specialty Generics segments, as well as within corporate functions. There is no specified time period associated with the 2016 Mallinckrodt Program. In addition to the 2016 Mallinckrodt Program and the 2013 Mallinckrodt Program, the Company has taken restructuring actions to generate synergies from its acquisitions. Net restructuring and related charges by segment from continuing operations are as follows: Fiscal Year 2016 2015 2014 Specialty Brands $ 23.3 $ 36.5 $ 57.0 Specialty Generics 3.4 4.5 9.8 Corporate 11.5 4.3 1.4 Restructuring and related charges, net 38.2 45.3 68.2 Less: accelerated depreciation (4.9 ) (0.3 ) (0.2 ) Restructuring charges, net $ 33.3 $ 45.0 $ 68.0 Net restructuring and related charges by program from continuing operations are comprised of the following: Fiscal Year 2016 2015 2014 2016 Mallinckrodt Program $ 8.3 $ — $ — 2013 Mallinckrodt Program 26.2 12.0 13.6 Acquisition programs 3.7 33.6 56.4 Other programs — (0.3 ) (1.8 ) Total programs 38.2 45.3 68.2 Less: non-cash charges, including impairments and accelerated share based compensation expense (4.9 ) (10.1 ) (37.7 ) Total charges expected to be settled in cash $ 33.3 $ 35.2 $ 30.5 Non-cash charges in fiscal 2015 and 2014 include $9.8 million and $35.1 million , respectively, of accelerated share based compensation expense related to employee terminations, primarily related to the 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: 2016 Mallinckrodt Program 2013 Mallinckrodt Program Acquisition Programs Other Programs Total Balance at September 27, 2013 $ — $ 14.9 $ — $ 10.6 $ 25.5 Charges from continuing operations — 19.2 22.9 1.4 43.5 Charges from discontinued operations — 39.0 — 1.1 40.1 Changes in estimate from continuing operations — (7.3 ) (1.6 ) (4.1 ) (13.0 ) Changes in estimate from discontinued operations — (2.1 ) — (0.7 ) (2.8 ) 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 — 11.7 25.3 — 37.0 Charges from discontinued operations — 4.7 — — 4.7 Changes in estimate from continuing operations — — (1.5 ) (0.3 ) (1.8 ) Changes in estimate from discontinued operations — (8.9 ) — — (8.9 ) 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 Charges from continuing operations 6.4 24.6 5.0 — 36.0 Charges from discontinued operations — 2.5 — — 2.5 Changes in estimate from continuing operations — (1.4 ) (1.3 ) — (2.7 ) Changes in estimate from discontinued operations — (0.3 ) — — (0.3 ) Cash payments (0.2 ) (20.3 ) (13.2 ) — (33.7 ) Reclassifications (1) — (1.3 ) — — (1.3 ) Balance at September 30, 2016 $ 6.2 $ 11.8 $ 0.5 $ — $ 18.5 (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 2016 and 2013 Mallinckrodt Programs are as follows: 2016 Mallinckrodt Program 2013 Mallinckrodt Program Specialty Brands $ 4.7 $ 18.8 Specialty Generics 0.5 18.3 Discontinued Operations (including Nuclear and CMDS) — 69.9 Corporate 3.1 18.4 $ 8.3 $ 125.4 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. 30, 2016 | |
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, beginning 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) : 2016 2015 2014 Domestic $ (275.3 ) $ (107.5 ) $ (76.0 ) International 508.7 214.8 41.4 Total $ 233.4 $ 107.3 $ (34.6 ) (1) Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. Significant components of income taxes related to continuing operations are as follows (1) : 2016 2015 2014 Current: Domestic $ 0.3 $ 0.2 $ 22.3 International 120.5 67.3 18.9 Current income tax provision 120.8 67.5 41.2 Deferred: Domestic $ 0.7 $ (0.8 ) $ (41.9 ) International (377.1 ) (196.0 ) (11.9 ) Deferred income tax (benefit) (376.4 ) (196.8 ) (53.8 ) $ (255.6 ) $ (129.3 ) $ (12.6 ) (1) Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. The fiscal 2016 Domestic current income tax provision reflects a utilization of $1.0 million of net operating losses. The Domestic net operating loss utilization is comprised of net operating losses carried forward from fiscal 2015. The fiscal 2016 International current income tax provision reflects a utilization of $29.2 million of net operating losses and $9.5 million of U.S. credits. The International net operating loss utilization is comprised of $17.9 million of net operating losses acquired in conjunction with the Hemostasis Acquisition and the remainder of the utilization relates to net operating losses carried forward from fiscal 2015. The U.S. credit utilization is comprised of credits carried forward from fiscal 2015 and generated during fiscal 2016. 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 of the utilization relates 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 $1.0 million , $5.1 million and $0.3 million for the fiscal years 2016, 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: 2016 2015 2014 Provision for income taxes at Domestic statutory income tax rate (1) $ 46.6 $ 21.4 $ (12.1 ) Adjustments to reconcile to income tax provision: U.S. state income tax provision, net (5) — — (7.0 ) Rate difference between Domestic and International jurisdictions (2) (249.3 ) (152.9 ) (14.2 ) U.S. manufacturing deduction (5) — — (2.7 ) Valuation allowances, nonrecurring 2.1 (2.1 ) 0.1 Adjustments to accrued income tax liabilities and uncertain tax positions (14.9 ) (7.0 ) (0.4 ) Interest and penalties on accrued income tax liabilities and uncertain tax positions (16.4 ) 0.3 (7.7 ) Investment in partnership — — 20.0 Credits, principally research and orphan drug (3) (4) (33.7 ) (8.1 ) (0.7 ) Permanently nondeductible and nontaxable items 7.9 14.7 13.4 Other 2.1 4.4 (1.3 ) Provision for income taxes $ (255.6 ) $ (129.3 ) $ (12.6 ) (1) The statutory tax rate reflects the U.K. statutory tax rate of 20% for fiscal 2016 and 2015, and the U.S. federal statutory tax rate of 35% for fiscal 2014. (2) Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. (3) Due to the December 31, 2013 Research Credit 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. (4) The Company realized a tax benefit of $27.4 million resulting from a U.K. tax credit on a dividend between affiliates. (5) For fiscal 2016, U.S. state income tax benefit of $15.1 million was combined with the rate differences between Domestic and International jurisdictions. For fiscal 2015, U.S. state income tax benefit of $34.9 million , and U.S. manufacturing deduction tax benefit of $4.3 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 $152.9 million of tax benefit to $249.3 million of tax benefit for fiscal 2015 to fiscal 2016, 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, 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. The $96.4 million increase in the tax benefit included increases of $146.3 million of tax benefit attributed to changes in operating income and $32.0 million of tax benefit related to acquisition and other non-acquisition related items; partially offset by $56.8 million of increased tax expense to the change in amortization and a $25.1 million decrease to the U.S. state tax benefit associated with the impact of recent acquisitions, integration thereof, and legislative changes. The rate difference between Domestic and International jurisdictions changed from $14.2 million of tax benefit to $152.9 million of tax benefit for fiscal 2014 to fiscal 2015, respectively. The rate difference between Domestic and International jurisdictions would have been $19.0 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. The $138.7 million increase in the tax benefit included increases of $62.4 million of tax benefit attributed to changes in operating income, $62.2 million of tax benefit related to acquisition and other non-acquisition related items and $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 $4.8 million of tax benefit can be attributed to the change in the referenced rate from U.S. to U.K.; partially offset by $22.5 million of increased tax expense to the change in amortization. The following table summarizes the activity related to the Company's unrecognized tax benefits, excluding interest: 2016 2015 2014 Balance at beginning of fiscal year $ 89.2 $ 82.0 $ 100.1 Additions related to current year tax positions 63.8 4.5 3.2 Additions related to prior period tax positions 10.8 19.9 30.6 Reductions related to prior period tax positions (37.8 ) (7.7 ) (33.0 ) Reductions related to disposition transactions (6.6 ) — — Settlements (2.6 ) (7.8 ) (6.9 ) Lapse of statute of limitations (2.0 ) (1.7 ) (12.0 ) Balance at end of fiscal year $ 114.8 $ 89.2 $ 82.0 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. On January 19, 2016, Tyco International plc (“Tyco International”) announced it had entered into Stipulations of Settled Issues with the IRS to resolve certain disputes before the U.S. Tax Court. The disputes involved IRS audits of Tyco International for years in which companies that are now subsidiaries of Mallinckrodt were subsidiaries of Tyco International. On May 31, 2016, the U.S. Tax Court entered decisions consistent with the Stipulations of Settled Issues. As a result, all aspects of the disputes that were before the U.S. Tax court and Appeals Division of the IRS have been resolved for audit cycles from 1997-2007. Mallinckrodt is not a participant in the tax sharing agreement between Medtronic plc (as successor to Covidien plc), Tyco International and TE Connectivity and will not share in or be responsible for any payments to be made under the terms of the settlement. Unrecognized tax benefits, excluding interest, are reported in the following consolidated balance sheet captions in the amount shown: September 30, 2016 September 25, 2015 Accrued and other current liabilities $ — $ 1.3 Other income tax liabilities 55.4 80.0 Deferred income taxes (non-current liability) 59.4 7.9 $ 114.8 $ 89.2 Included within total unrecognized tax benefits at September 30, 2016 , September 25, 2015 and September 26, 2014 , were $113.1 million , $87.4 million and $82.0 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 2016 , the Company recorded $4.1 million of additional interest through tax provision and acquisition accounting and decreased accrued interest by $32.1 million related to cash payments related to settlements as well as reductions related to prior periods and $6.5 million related to disposition transactions. During fiscal 2015 and 2014 , the Company accrued additional interest of $5.7 million and $7.0 million , respectively. The total amount of accrued interest related to uncertain tax positions was $7.2 million , $41.7 million and $45.1 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 $14.6 million . Interest and penalties could decrease by up to $6.1 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 30, 2016 September 25, 2015 Accrued and other current liabilities $ 111.8 $ 15.6 Other income tax liabilities 67.7 121.3 $ 179.5 $ 136.9 At September 30, 2016 , other assets included $69.1 million of tax payments associated with non-current deferred intercompany transactions. Prepaid expenses and other current assets includes $10.0 million of tax payments associated with current deferred intercompany transactions, and $43.5 million of receivables associated with tax payments on account with the taxing authorities. At September 25, 2015 , other assets includes $51.7 million of tax payments associated with non-current deferred intercompany transactions. Prepaid expenses and other current assets includes a receivable of $81.1 million and tax payments of $8.7 million associated with current deferred intercompany transactions. All of the above items exclude amounts related to assets which are held for sale. September 30, 2016 September 25, 2015 Other assets $ 69.1 $ 51.7 Prepaid expenses and other current assets 53.5 89.8 $ 122.6 $ 141.5 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 18. As of September 30, 2016 , the earliest open years for U.S. federal and state tax jurisdictions is 2010 and 2000 , respectively. 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 30, 2016 September 25, 2015 Deferred tax assets: Accrued liabilities and reserves $ 80.8 $ 91.0 Inventories 35.4 21.4 Tax loss and credit carryforwards 332.3 159.5 Environmental liabilities 28.6 23.6 Rebate reserves 48.7 48.1 Expired product 12.2 26.3 Postretirement benefits 48.7 37.3 Federal and state benefit of uncertain tax positions and interest 17.4 33.6 Share-based compensation 22.1 17.6 Intangible assets 341.8 105.7 Other 14.9 8.7 982.9 572.8 Deferred tax liabilities: Property, plant and equipment (111.3 ) (111.8 ) Intangible assets (775.1 ) (1,550.7 ) Installment sale (1,902.9 ) (1,465.3 ) Investment in partnership (186.0 ) (187.9 ) (2,975.3 ) (3,315.7 ) Net deferred tax (liability) before valuation allowances (1,992.4 ) (2,742.9 ) Valuation allowances (564.9 ) (233.0 ) Net deferred tax (liability) $ (2,557.3 ) $ (2,975.9 ) Deferred taxes are reported in the following consolidated balance sheet captions in the amounts shown: September 30, 2016 September 25, 2015 Deferred income taxes (current asset) $ — $ 139.2 Other non-current assets 24.1 6.6 Accrued and other current liabilities — (4.2 ) Deferred income taxes (non-current liability) (2,581.4 ) (3,117.5 ) Net deferred tax (liability) $ (2,557.3 ) $ (2,975.9 ) The above table reflects the reclassification of current deferred taxes to non-current upon the Company's adoption of ASU 2015-17, "Balance Sheet Reclassification of Deferred Taxes." The Company's current deferred tax asset decreased from $139.2 million at September 25, 2015 to zero at September 30, 2016 due to tax credit utilization of $12.4 million in the current year, and the remainder primarily due to the adoption of ASU 2015-17, "Balance Sheet Reclassification of Deferred Taxes," whereby deferred taxes are reclassified as non-current. Non-current deferred tax liability decreased from $3,117.5 million at September 25, 2015 to $2,581.4 million at September 30, 2016 , primarily due to $322.8 million of decreases associated with the payment of internal installment sale obligations, $122.6 million of decreases due to reclassification on the adoption of ASU 2015-17, $66.4 million of decreases associated with the amortization of intangibles, and $50.0 million of decreases related to other impacts of recent acquisitions and integration and normal operating activity. These factors were partially offset by a $25.7 million increase from current year acquisitions. The Hemostasis Acquisition resulted in a net deferred tax liability increase of $1.4 million . Significant components of this increase include $20.3 million of deferred tax liabilities associated with intangibles and $4.1 million associated with inventory, partially offset by $23.0 million of deferred tax assets associated with non U.K. net operating losses and tax credits. The Stratatech Acquisition resulted in a net deferred tax liability increase of $24.3 million . Significant components of this include $35.5 million of deferred tax liabilities associated with intangibles partially offset by $11.2 million of deferred tax assets associated with non U.K. net operating losses and tax credits. As a part of the Ikaria integration, the Company entered into an internal installment sale transaction during fiscal 2016. The Ikaria internal installment sale transaction resulted in a decrease of $535.1 million to the deferred tax liability associated with the completed technology and IPR&D intangible assets, a $519.5 million increase to the deferred tax liability associated with an installment sale note receivable, a $42.8 million increase to the current income tax liability, a $23.8 million increase to deferred tax charges and a $1.0 million increase to prepaid taxes. As part of the Therakos integration, the Company entered into an internal installment sale transaction during fiscal 2016. The Therakos internal installment sale transaction resulted in a decrease of $267.3 million to the deferred tax liability associated with the completed technology intangible asset, a $250.4 million increase to the deferred tax liability associated with an installment sale note receivable, a $17.3 million increase to the current income tax liability and a $0.3 million increase to prepaid taxes. At September 30, 2016 , the Company had approximately $246.1 million of net operating loss carryforwards in certain International jurisdictions, of which $175.3 million have no expiration and the remaining $70.8 million will expire in future years through 2036 . As a result of the Company's disposition of its CMDS business, as discussed in Note 4, the Company's International net operating losses increased by $29.5 million . The Company had $75.0 million of Domestic net operating loss carryforwards at September 30, 2016 , which have no expiration date. At September 30, 2016 the Company also had $11.2 million of tax credits available to reduce future income taxes payable, primarily in jurisdictions within the U.S., of which $4.0 million have no expiration and the remainder expire during fiscal 2017 through 2036 . The deferred tax asset valuation allowances of $564.9 million and $233.0 million at September 30, 2016 and September 25, 2015 , 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. As of September 30, 2016 , 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 $354.8 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 25, 2015 was attributable to the removal of the earnings for the entities classified as held for sale, further adjusted by unrepatriated earnings associated with income and losses attributed to the current year activity. As of September 25, 2015, the Company has also accrued a $6.5 million deferred tax liability associated with approximately $41.3 million of unrepatriated earnings that were not indefinitely reinvested related to assets held for sale, which was adjusted to $3.9 million in 2016. As a result of the disposition of the CMDS business, the Company satisfied this deferred tax liability. As of September 30, 2016, the Company has no deferred tax liabilities associated with unrepatriated earnings that are not indefinitely reinvested on assets from continuing operations or related to assets held for sale. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 12 Months Ended |
Sep. 30, 2016 | |
Earnings (Loss) per Share [Abstract] | |
Earnings (Loss) per Share | 8. Earnings (Loss) per Share In fiscal 2016, 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. 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, were considered participating securities as holders were entitled to receive non-forfeitable dividends during the vesting term. Diluted earnings per share included 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. 2016 2015 2014 Earnings (loss) per share numerator: Income (loss) from continuing operations attributable to common shareholders before allocation of earnings to participating securities $ 489.0 $ 236.6 $ (22.0 ) Less: earnings allocated to participating securities — 2.0 — Income (loss) from continuing operations attributable to common shareholders, after earnings allocated to participating securities 489.0 234.6 (22.0 ) Income (loss) from discontinued operations 154.7 88.1 (297.3 ) Less: earnings from discontinued operations allocated to participating securities — 0.7 — Income (loss) from discontinued operations attributable to common shareholders, after allocation of earnings to participating securities 154.7 87.4 (297.3 ) Net income (loss) attributable to common shareholders, after allocation of earnings to participating securities $ 643.7 $ 322.0 $ (319.3 ) Earnings (loss) per share denominator: Weighted-average shares outstanding - basic 110.6 115.8 64.9 Impact of dilutive securities 0.9 1.4 — Weighted-average shares outstanding - diluted 111.5 117.2 64.9 Basic earnings (loss) per share attributable to common shareholders Income (loss) from continuing operations $ 4.42 $ 2.03 $ (0.34 ) Income (loss) from discontinued operations 1.40 0.75 (4.58 ) Net income (loss) attributable to common shareholders $ 5.82 $ 2.78 $ (4.92 ) Diluted earnings (loss) per share attributable to common shareholders Income (loss) from continuing operations $ 4.39 $ 2.00 $ (0.34 ) Income (loss) from discontinued operations 1.39 0.75 (4.58 ) Net income (loss) attributable to common shareholders $ 5.77 $ 2.75 $ (4.92 ) The computation of diluted earnings per share for fiscal 2016 , 2015 and 2014 excludes approximately 1.7 million , 0.1 million and 5.7 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. 30, 2016 | |
Inventory, Net [Abstract] | |
Inventories | 9. Inventories Inventories are comprised of the following at the end of each period: September 30, September 25, Raw materials and supplies $ 62.0 $ 52.9 Work in process 188.9 121.6 Finished goods 84.7 87.6 Inventories $ 335.6 $ 262.1 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2016 | |
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 30, 2016 September 25, 2015 Land $ 46.8 $ 47.1 Buildings 287.2 261.7 Capitalized software 85.3 85.4 Machinery and equipment 1,032.3 979.9 Construction in process 164.1 118.3 1,615.7 1,492.4 Less: accumulated depreciation (771.7 ) (699.4 ) Property, plant and equipment, net $ 844.0 $ 793.0 Depreciation expense, including amounts related to capitalized leased assets, for continuing operations was $113.3 million , $90.8 million and $76.7 million for fiscal 2016 , 2015 and 2014 , respectively. Long-Lived Asset Impairment Analysis In fiscal 2014, the Company recorded long-lived asset impairment charges related to its CMDS asset group. During the fourth quarter of fiscal 2014, the Company received notification that the Company 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 required the Company to record an impairment charge as 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 was 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 sold its CMDS business 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 of the assets were 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. 30, 2016 | |
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 30, 2016 September 25, 2015 Specialty Brands $ 3,498.3 $ 3,442.4 Specialty Generics 207.0 207.0 Total $ 3,705.3 $ 3,649.4 During the fiscal year ended September 30, 2016, the gross carrying value of goodwill in the Specialty Brands segment increased by $55.9 million , primarily attributable to $57.3 million from the Stratatech Acquisition. The remaining change in goodwill is a result of the Hemostasis Acquisition, offset by purchase accounting adjustments for the Therakos Acquisition and Ikaria Acquisition primarily attributable to changes in deferred tax balances. Goodwill Impairment Analysis As of the fiscal 2016 measurement date, the Company had identified the Specialty Brands, Specialty Generics and Nuclear Imaging businesses as representing the reporting units in our annual goodwill impairment analysis. 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 the Therakos Acquisition, Hemostasis Acquisition and revenue growth for Acthar. The projections also reflect the potential impacts from the future loss of exclusivity related to Ofirmev. The Company utilized a WACC of 12.5% . 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 reporting unit include long-term revenue and operating income at lower than historical levels primarily attributable to increased competition. The Specialty Generics segment has and may continue to experience customer consolidation, which could result in further downward pressure to our long-term revenue and operating income projections. The Company utilized a WACC of 11.0% . These assumptions resulted in a fair value of the Specialty Generics reporting unit in excess of its net book value. In October 2016, the Company was notified that the FDA was initiating Withdrawal Proceedings on the Company's Methylphenidate ER products, which could result in these products losing their FDA approval. The Specialty Generics segment includes cash flows from the sale of the Company's Methylphenidate ER products. The loss of FDA approval could have a material, negative impact to our Specialty Generics segment. It is possible that if the Specialty Generics segment experiences greater downward pressure than projected or the Company loses FDA approval of its Methylphenidate ER products, or a combination of these factors, it could result in impairment of goodwill and other long-lived assets associated with this segment. In fiscal 2014, the Company recorded goodwill impairment charges related to its former Global Medical Imaging reporting unit (which included the CMDS and Nuclear Imaging businesses that are now included within discontinued operations). 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 2016 and fiscal 2015, the Company announced that it had entered into definitive agreements to sell its Nuclear Imaging and CMDS businesses, respectively, therefore the businesses were each deemed to be held for sale and the financial results of each business are presented as discontinued operations. As a result, the Company reclassified 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 30, 2016 September 25, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 10,028.8 $ 1,446.2 $ 9,896.0 $ 765.8 Licenses 185.1 112.3 185.1 99.8 Customer relationships 28.6 8.0 28.1 4.4 Trademarks 82.2 10.0 82.1 6.2 Other 6.7 6.7 6.7 6.7 Total $ 10,331.4 $ 1,583.2 $ 10,198.0 $ 882.9 Non-Amortizable: Trademarks $ 35.0 $ 35.0 In-process research and development 399.1 316.2 Total $ 434.1 $ 351.2 During fiscal 2016, the Company recorded impairment charges totaling $16.9 million related to certain Specialty Brands in-process research and development intangible assets acquired as part of the CNS Therapeutics acquisition in fiscal 2013. The valuation method used to approximate fair value was based on the estimated discounted cash flows for the respective asset, and the impairment charges resulted from delays in anticipated FDA approval, higher than expected development costs and lower than previously anticipated commercial opportunities. Finite-lived intangible asset amortization expense within continuing operations was $700.1 million , $550.3 million and $154.8 million in fiscal 2016 , 2015 and 2014 , 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 2017 $ 701.4 Fiscal 2018 692.4 Fiscal 2019 692.1 Fiscal 2020 691.9 Fiscal 2021 691.6 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 12. Debt Debt was comprised of the following at the end of each period: September 30, 2016 September 25, 2015 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: Variable rate receivable securitization $ 235.0 $ 0.4 $ — $ — Term loans due March 2021 20.0 0.4 20.0 — 4.00% term loan due February 2022 1.1 — 1.0 — Capital lease obligation and vendor financing agreements 1.0 — 1.0 — Total current debt 257.1 0.8 22.0 — Long-term debt: Variable rate receivable securitization — — 153.0 0.8 3.50% notes due April 2018 300.0 1.1 300.0 1.7 4.875% notes due April 2020 700.0 8.8 700.0 11.3 Term loans due March 2021 1,933.5 35.4 1,958.5 44.1 4.00% term loan due February 2022 6.0 — 6.9 — 9.50% debentures due May 2022 10.4 — 10.4 — 5.75% notes due August 2022 884.0 12.1 900.0 14.4 8.00% debentures due March 2023 4.4 — 4.4 — 4.75% notes due April 2023 600.0 6.4 600.0 7.1 5.625% notes due October 2023 740.0 11.8 750.0 13.7 5.50% notes due April 2025 700.0 10.6 700.0 11.9 Revolving credit facility — 3.6 500.0 4.9 Capital lease obligation and vendor financing agreements 0.2 — 1.0 — Total long-term debt 5,878.5 89.8 6,584.2 109.9 Total debt $ 6,135.6 $ 90.6 $ 6,606.2 $ 109.9 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 th and October 15 th of each year, which commenced on October 15, 2013. 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 30, 2016 . 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 30, 2016 , and the fee applied to outstanding letters of credit is based on the interest rate applied to borrowings. As of September 30, 2016 , there were no outstanding borrowings under the 2015 Revolving Credit Facility, the applicable interest rate was 3.10% as of September 30, 2016. 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 the 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 30, 2016 , the applicable interest rate on outstanding borrowings under the Receivable Securitization was 1.33% and outstanding borrowings totaled $235.0 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 st and August 1 st of each year, which commenced 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, which commenced 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, which commenced on April 15, 2016. As of September 30, 2016 , the weighted-average interest rate for the term loan due March 2021 was 3.43% , and outstanding principal under these agreements totaled approximately $1,953.5 million . The aggregate amounts of debt, including the capital lease obligation, maturing during the next five fiscal years are as follows: Fiscal 2017 $ 257.1 Fiscal 2018 321.3 Fiscal 2019 16.2 Fiscal 2020 721.3 Fiscal 2021 1,879.8 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | 13. Retirement Plans Pension Plan Termination On March 31, 2016, the Company terminated six of its previously frozen U.S. pension plans. The Company is evaluating alternatives to settle the outstanding obligations of these pension plans, and expects final settlement to occur during fiscal 2017, subject to customary regulatory approvals. The Company's ultimate settlement obligation will depend upon the nature of participant settlements and the prevailing market conditions. As a result, certain assumptions utilized in determining the obligations under these pension plans reflect those expected in the final settlement of the Company's obligations. 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 30, 2016 , U.S. plans represented 100% of the Company's total pension plan assets and 96% 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 2016 2015 2014 2016 2015 2014 Service cost $ 1.8 $ 2.4 $ 2.7 $ 0.1 $ 0.1 $ 0.1 Interest cost 13.2 14.5 15.4 2.0 1.9 2.1 Expected return on plan assets (16.7 ) (18.9 ) (20.5 ) — — — Amortization of net actuarial loss 11.3 9.2 8.0 — — — Amortization of prior service cost — — — (2.1 ) (4.0 ) (9.3 ) Loss on plan settlements 8.1 5.9 3.8 — — — Net periodic benefit cost (credit) $ 17.7 $ 13.1 $ 9.4 $ — $ (2.0 ) $ (7.1 ) 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 2016 and 2015 : Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Change in benefit obligation: Projected benefit obligations at beginning of year $ 375.5 $ 400.8 $ 52.2 $ 52.0 Service cost 1.8 2.4 0.1 0.1 Interest cost 13.2 14.5 2.0 1.9 Actuarial (gain) loss 65.5 (0.8 ) 0.5 2.1 Benefits and administrative expenses paid (20.1 ) (17.8 ) (4.0 ) (3.9 ) Plan settlements (26.5 ) (23.6 ) — — Plan curtailments and amendments (0.4 ) — — — Net transfer in/(out) — 0.7 — — Currency translation 0.1 (0.7 ) — — Projected benefit obligations at end of year $ 409.1 $ 375.5 $ 50.8 $ 52.2 Change in plan assets: Fair value of plan assets at beginning of year $ 309.9 $ 339.0 $ — $ — Actual return on plan assets 29.5 1.9 — — Employer contributions 16.7 10.4 4.0 3.9 Benefits and administrative expenses paid (20.1 ) (17.8 ) (4.0 ) (3.9 ) Plan settlements (26.5 ) (23.6 ) — — Currency translation — — — — Fair value of plan assets at end of year $ 309.5 $ 309.9 $ — $ — Funded status at end of year $ (99.6 ) $ (65.6 ) $ (50.8 ) $ (52.2 ) Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Amounts recognized on the consolidated balance sheet: Non-current assets $ 4.0 $ 3.9 $ — $ — Current liabilities (5.2 ) (2.9 ) (4.3 ) (4.6 ) Non-current liabilities (98.4 ) (66.6 ) (46.5 ) (47.6 ) Net amount recognized on the consolidated balance sheet $ (99.6 ) $ (65.6 ) $ (50.8 ) $ (52.2 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ (141.2 ) $ (107.9 ) $ (5.6 ) $ (5.1 ) Prior service credit 0.3 — 12.8 14.9 Net amount recognized in accumulated other comprehensive income $ (140.9 ) $ (107.9 ) $ 7.2 $ 9.8 The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost (credit) in fiscal 2017 are as follows: Pension Benefits Postretirement Benefits Amortization of net actuarial loss $ 14.1 $ 0.1 Amortization of prior service cost 0.3 (2.1 ) The accumulated benefit obligation for all pension plans at the end of fiscal 2016 and 2015 was $408.7 million and $375.3 million , respectively. Additional information related to pension plans is as follows: 2016 2015 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 398.1 $ 363.4 Fair value of plan assets 295.0 294.1 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 2016 2015 2014 2016 2015 2014 Discount rate 3.9 % 3.8 % 4.2 % 2.0 % 2.4 % 3.1 % Expected return on plan assets 5.8 % 6.0 % 6.5 % 2.0 % 2.0 % 2.0 % Rate of compensation increase — % — % — % — % — % — % 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 2016 2015 2014 2016 2015 2014 Discount rate 2.3 % 3.9 % 3.9 % 1.3 % 2.4 % 2.4 % Rate of compensation increase — % — % — % — % — % — % For the Company's funded U.S. plans, the discount rate is based on the estimated final settlement discount rates based on quotes received from a group of well-rated insurance carriers who are active in the single premium group annuity marketplace. The group of insurance carriers are rated A or better by AM best. For the Company's unfunded U.S. plans, the discount rate is based on the market rate for a broad population of AA-rated (Moody's or S&P) corporate bonds over $250.0 million . 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: 2016 2015 2014 Net periodic benefit cost 4.0 % 3.6 % 4.0 % Benefit obligations 3.2 % 3.9 % 3.7 % Healthcare cost trend assumptions for postretirement benefit plans are as follows: 2016 2015 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 0.3 (0.2 ) Plan Assets In conjunction with the Company’s decision to terminate and annuitize the defined benefit pension plans in fiscal 2016, the Company elected to change the asset allocation to shift substantially to debt securities, in an attempt to mitigate fluctuations in both interest rates and the equity markets. Pension plans have the following weighted-average asset allocations at the end of each fiscal year: U.S. Plans 2016 2015 Equity securities — % 27 % Debt securities 96 70 Cash and cash equivalents 4 3 Other — — Total 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 2016 and 2015 : Basis of Fair Value Measurement Fiscal 2016 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. large cap 1.4 1.4 — — Debt securities: Diversified fixed income funds (1) 296.1 296.1 — — Other 12.0 12.0 — — Total $ 309.5 $ 309.5 $ — $ — 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 22.9 22.7 0.2 — Debt securities: Diversified fixed income funds (1) 197.2 196.9 0.3 — High yield bonds 11.3 11.3 — — Emerging market funds 7.4 7.4 — — Other 9.8 9.0 0.8 — Total $ 309.9 $ 308.6 $ 1.3 $ — (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. 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). 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 2016 and 2015, the Company made $16.7 million and $10.4 million in contributions, respectively, to the Company's pension plans. Expected Future Benefit Payments Benefit payments expected to be paid, reflecting future expected service as appropriate, are as follows: Pension Benefits Postretirement Benefits Fiscal 2017 $ 113.2 $ 4.3 Fiscal 2018 22.2 4.0 Fiscal 2019 21.8 3.7 Fiscal 2020 20.5 3.5 Fiscal 2021 19.2 3.3 Fiscal 2021 - 2025 85.9 14.9 The above table reflects increased lump sum disbursements in fiscal 2017 associated with the termination of the Company's six qualified U.S. pension plans. Disbursements associated with the settlement of the remaining obligations under these plans have not been reflected. 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 $25.3 million , $22.1 million and $19.0 million for fiscal 2016 , 2015 and 2014 , 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 19 provides additional information regarding the debt and equity securities. The carrying value of the 134 life insurance contracts held by these trusts was $59.2 million and $57.9 million at September 30, 2016 and September 25, 2015 , respectively. These contracts had a total death benefit of $150.0 million and $147.3 million at September 30, 2016 and September 25, 2015 , respectively. However, there are outstanding loans against the policies amounting to $43.4 million and $40.4 million at September 30, 2016 and September 25, 2015 , respectively. The Company has insurance contracts which serve as collateral for certain of the Company's non-U.S. pension plan benefits, which totaled $8.3 million and $8.9 million at September 30, 2016 and September 25, 2015 , respectively. These amounts were also included in other assets on the consolidated balance sheets. |
Equity Equity
Equity Equity | 12 Months Ended |
Sep. 30, 2016 | |
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 30, 2016 . 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 November 19, 2015, the Board of Directors authorized a $500.0 million share repurchase program (the “November 2015 Program”). The November 2015 Program commenced after the $300.0 million share repurchase program authorized by the Board of Directors on January 23, 2015 (the “January 2015 Program”) was completed in the first fiscal quarter of 2016. On March 16, 2016, the Board of Directors authorized an additional $350.0 million share repurchase program (the “March 2016 Program”) which will commence upon the completion of the November 2015 Program. These programs have no time limit or expiration date, and the Company currently expects to fully utilize each program. March 2016 Repurchase Program November 2015 Repurchase Program January 2015 Repurchase Program Number of Shares Amount Number of Shares Amount Number of Shares Amount Authorized repurchase amount $ 350.0 $ 500.0 $ 300.0 Repurchases: Fiscal 2015 — — — — 823,592 75.0 Fiscal 2016 — — 6,510,824 425.6 3,199,279 225.0 Remaining amount available $ 350.0 $ 74.4 $ — 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 $2.3 million and $17.2 million to acquire shares in connection with equity-based awards in fiscal 2016 and 2015, respectively. |
Share Plans
Share Plans | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Plans | 15. Share Plans Total share-based compensation cost from continuing operations was $41.4 million , $115.0 million and $64.9 million for fiscal 2016 , 2015 and 2014 , respectively. These amounts are generally included within selling, general and administrative expenses in the consolidated 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 $13.1 million , $41.3 million and $23.4 million in fiscal 2016 , 2015 and 2014 , respectively. 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 30, 2016 , 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 Aggregate Intrinsic Value 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 Granted 1,248,828 72.44 Exercised (413,830 ) 32.76 Expired/Forfeited (199,585 ) 72.65 Outstanding at September 30, 2016 3,421,856 61.17 7.3 $ 49.6 Vested and unvested expected to vest as of September 30, 2016 2,997,502 61.60 7.5 $ 42.6 Exercisable at September 30, 2016 1,388,805 45.55 5.3 38.2 As of September 30, 2016 , there was $35.5 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. 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. 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 shares granted in fiscal 2016, 2015 and 2014, along with the weighted-average grant-date fair value, were as follows: 2016 2015 2014 Expected share price volatility 31 % 29 % 32 % Risk-free interest rate 1.74 % 1.72 % 1.96 % Expected annual dividend per share — % — % — % Expected life of options (in years) 5.3 5.3 5.5 Fair value per option $ 22.82 $ 30.08 $ 17.38 In fiscal 2016 , 2015 and 2014, the total intrinsic value of options exercised was $15.3 million , $89.5 million and $34.2 million , respectively, and the related tax benefit was $5.7 million , $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 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 Granted 615,074 70.10 Vested (193,849 ) 69.27 Forfeited (99,260 ) 79.95 Non-vested at September 30, 2016 894,459 70.40 The total fair value of Mallinckrodt restricted share unit awards granted during fiscal 2016 was $43.1 million . The total vest date fair value of Mallinckrodt restricted share units vested during fiscal 2016 was $13.4 million . As of September 30, 2016 , there was $47.2 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 2.7 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 Non-vested at September 26, 2014 72,740 $ 63.46 Granted 77,306 125.84 Forfeited (19,072 ) 92.05 Non-vested at September 25, 2015 130,974 96.05 Granted 145,192 83.00 Forfeited (9,521 ) 96.30 Non-vested at September 30, 2016 266,645 88.59 (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: 2016 2015 2014 Expected stock price volatility 41 % 27 % 28 % Peer group stock price volatility 36 % 32 % 33 % Correlation of returns 24 % 14 % 17 % The weighted-average grant date fair value per share of PSUs granted was $ 83.00 in fiscal 2016. As of September 30, 2016, there was $13.7 million of unrecognized compensation cost related to PSUs, which is expected to be recognized over a weighted-average period of 1.7 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 vested 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 Non-vested at September 26, 2014 1,432,031 $ 70.88 Vested (1,362,823 ) 70.88 Forfeited (34,646 ) 70.88 Non-vested at September 25, 2015 34,562 70.88 Vested (9,760 ) 70.88 Forfeited (7,936 ) 70.88 Non-vested at September 30, 2016 16,866 70.88 The total vest date fair value of Mallinckrodt restricted share awards vested during fiscal 2016 was $0.6 million . Employee Stock Purchase Plans Effective March 16, 2016, upon approval by the shareholders of Mallinckrodt, the Company adopted a new qualified Mallinckrodt Employee Stock Purchase Plan ("ESPP"). 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 the ESPP. Eligible employees authorize payroll deductions to be made to purchase shares at 15% below the market price at the beginning or end of an offering period. Employees are eligible to authorize withholdings such that purchases of shares may amount to $25,000 of fair market value for each calendar year as prescribed by IRC Section 423. Mallinckrodt has elected to deliver shares under the period by utilizing treasury stock accumulated by the Company. Prior to the first offering period of the ESPP (July 1, 2016), the Company maintained a non-qualified employee stock purchase plan ("the Old ESPP"). Substantially all full-time employees of the Company's U.S. subsidiaries and employees of certain qualified non-U.S. subsidiaries were eligible to participate in the Old ESPP. Eligible employees authorized payroll deductions to be made for the purchase of shares. The Company matched 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 Old ESPP were purchased on the open market by a designated broker. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Sep. 30, 2016 | |
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 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 income (loss), net (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 Other comprehensive income (loss), net 0.8 — (39.5 ) (38.7 ) Reclassification from other comprehensive income (loss) (59.4 ) 0.5 11.1 (47.8 ) Balance at September 30, 2016 $ 1.6 $ (5.9 ) $ (81.3 ) $ (85.6 ) The following summarizes reclassifications out of accumulated other comprehensive income for the 2016 and 2015 fiscal years: Amount Reclassified from Amount Reclassified from September 30, 2016 September 25, 2015 Line Item in the Condensed Consolidated Amortization of unrealized loss on derivatives $ 0.7 $ 0.6 Interest expense Income tax provision (0.2 ) (0.2 ) Provision for income taxes Net of income taxes 0.5 0.4 Amortization of pension and post-retirement benefit plans: Net actuarial loss 11.4 9.4 (1) Prior service credit (2.7 ) (4.6 ) (1) Disposal of discontinued operations 0.8 — Plan settlements 8.1 6.0 (1) Total before tax 17.6 10.8 Income tax provision (6.5 ) (4.1 ) Provision for income taxes Net of income taxes 11.1 6.7 Currency translation (59.4 ) — Total reclassifications for the period $ (47.8 ) $ 7.1 (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 13 for additional details. |
Guarantees
Guarantees | 12 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Guarantees | 17. 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 30, 2016 and September 25, 2015 was $15.7 million , of which $12.9 million and $13.0 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 30, 2016 and September 25, 2015 . As of September 30, 2016 , 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 remained in other assets on the consolidated balance sheets at September 30, 2016 and September 25, 2015 . The Company has recorded liabilities for known indemnification obligations included as part of environmental liabilities, which are discussed in Note 18. 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 $30.2 million . As of September 30, 2016 , the Company had various other letters of credit and guarantee and surety bonds totaling $32.7 million . Upon closing the sale of the Nuclear Imaging business, these obligations will be transferred to the buyer. 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. In February 2016, following completion of the decommissioning efforts, the trustee returned the cash on deposit and it was available for general use. 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. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies The Company has purchase obligations related to commitments to purchase certain goods and services. At September 30, 2016 , such obligations were as follows: Fiscal 2017 $ 147.5 Fiscal 2018 31.6 Fiscal 2019 20.3 Fiscal 2020 14.1 Fiscal 2021 6.7 The Company is subject to various legal proceedings and claims, including patent infringement claims, product liability matters, personal injury, 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 for controlled substances. The United States Attorney’s Office (the “USAO”) for the Eastern District of Michigan is investigating the possibility that the Company failed 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 Counsel for the U.S. Drug Enforcement Administration are investigating the possibility that the Company failed 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 related to Acthar. 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 related to Acthar. On March 9, 2015, the Company received a "No Action" letter from the SEC regarding its review of the Company's promotional practices related to Acthar. 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 U.S. 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 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 has since made certain related requests. We are in the process of responding to those requests. 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 have responded to or 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 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 Complaint 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. In July 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 appealed the court’s decision to the U.S. Court of Appeals for the Fourth Circuit. On October 18, 2016, the FDA initiated proceedings, proposing to withdraw approval of Mallinckrodt’s Abbreviated New Drug Application for Methylphenidate ER. On October 21, 2016, the United States Court of Appeals for the Fourth Circuit issued an Order removing Company’s pending litigation with the FDA from the Court’s oral argument calendar and placing that litigation in abeyance pending the outcome of the withdrawal proceedings. The Company concurrently submitted to the FDA requests for a hearing in the withdrawal proceeding and for a 90-day extension of the deadline for submitting documentation supporting the necessity of a hearing. The FDA has granted the Company’s extension request, with a new deadline of March 19, 2017, and the Company is preparing the supporting documentation for the March submission. The Company plans to vigorously set forth its position in the withdrawal proceedings. 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 7.5 mg 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: InnoPharma Licensing LLC and InnoPharma, Inc. In September 2014, Cadence and Mallinckrodt IP, subsidiaries of the Company, and Pharmatop, the owner of the two U.S. patents licensed exclusively by the Company, filed suit in the U.S. District Court for the District of Delaware against InnoPharma Licensing LLC and InnoPharma, Inc. (collectively "InnoPharma") alleging that InnoPharma infringed U.S. Patent Nos. 6,028,222 ("the '222 patent") and 6,992,218 ("the '218 patent") 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, and Pharmatop, the owner of the two U.S. patents licensed exclusively by the Company, filed suit in the U.S. District Court for the District of Delaware against Agila alleging that Agila infringed the '222 and the '218 patents 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 has successfully asserted the ‘222 and ‘218 patents and maintained their validity in both litigation and proceedings at the U.S. Patent and Trademark Office (“USPTO”). The Company will continue to vigorously enforce its intellectual property rights relating to Ofirmev to prevent the marketing of infringing generic or competing products prior to December 6, 2020, which, if unsuccessful, could adversely affect the Company's ability to successfully maximize the value of Ofirmev and have an adverse effect on its financial condition, results of operations and cash flows. 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 (i.e., five patents expiring in 2029 and five patents expiring in 2031). In July 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 in July 2015 that instituted the IPR proceeding in the fifth of this group of patents and the PTAB ruled in July 2016 that one claim of this patent survived review and is valid while the remaining claims were unpatentable. The Company believes the valid claim describes and encompasses the manner in which Inomax is distributed in conjunction with its approved labeling and that Praxair infringes that claim. Praxair filed an appeal and Mallinckrodt filed a cross-appeal of this decision to the Court of Appeals for the Federal Circuit. In March 2016, Praxair Distribution, Inc. submitted additional IPR petitions for the five patents expiring in 2029. The PTAB issued non-appealable rulings in August and September 2016 denying institution of all five of these additional IPR petitions. In September 2015 the USPTO PTAB issued rulings that instituted the IPR proceedings in each of the second set of five patents that expire in 2031. In September 2016 the PTAB ruled that all claims in the five patents expiring in 2031 are patentable. 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. In July 2016, the Company filed a second suit against Praxair in the U.S. District Court for the District of Delaware following receipt of a Paragraph IV notice concerning three additional patents recently added to the FDA Orange Book that was submitted by Praxair regarding its ANDA for a generic version of Inomax. The infringement claims in the second suit have been added to the original suit. In September 2016, the Company filed a third suit against Praxair in the U.S. District Court for the District of Delaware following receipt of a Paragraph IV notice concerning a fourth patent recently added to the FDA Orange Book that was submitted by Praxair regarding its ANDA for a generic version of Inomax. The Company intends to vigorously enforce its intellectual property rights relating to Inomax in both the IPR and Praxair litigation proceedings 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 February 19, 2034 (August 19, 2034 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 purported to be brought on behalf of shareholders who purchased Questcor common stock between April 26, 2011 and September 21, 2012. The complaint generally alleged 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 asserted 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 sought damages in an unspecified amount and equitable relief against the defendants. This lawsuit was 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 asserted claims substantially identical to those asserted in the do Valle derivative action described below against the same defendants. This lawsuit was 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 asserted 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 sought 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, was a defendant in this matter which was filed in May 2008, in the Third Judicial Circuit of Salt Lake County, Utah. The State of Utah alleged, generally, that the defendants reported false pricing information in connection with certain drugs that were reimbursable under Utah Medicaid, resulting in overpayment by Utah Medicaid for those drugs, and sought monetary damages and attorneys' fees. The Company believes that it had meritorious defenses to these claims and vigorously defended against them. In December 2015, the parties entered into a binding settlement agreement, under the terms of which the State of Utah agreed to dismiss the litigation with prejudice and the Company agreed to make a one-time cash payment to the State of Utah within the reserve established for this matter. 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 30, 2016 , it was probable that it would incur remediation costs in the range of $38.7 million to $121.3 million . The Company also concluded that, as of September 30, 2016 , the best estimate within this range was $75.9 million , of which $2.6 million was included in accrued and other current liabilities and the remainder was included in environmental liabilities on the consolidated balance sheet at September 30, 2016 . 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 initiated the FS, and the PRPs agreed 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 Coldwater Creek. Radiological residues which may have been present in the creek have previously been remediated by the U.S. Army Corps of Engineers ("USACE"). The USACE continues to study and remediate the creek and surrounding areas. The Company believes that it has meritorious defenses to these complaints and is vigorously defending against them. The Company is unable to estimate a range of reasonably possible losses for the following reasons: (i) the proceedings are in intermediate stages; (ii) the Company has not received and reviewed complete information regarding the plaintiffs and their medical conditions; and (iii) there are significant factual and scientific issues to be resolved. An initial group of bellwether plaintiffs have been selected by the court and discovery is ongoing. 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. Lower Passaic River, New Jersey . The Company and approximately 70 other companies originally comprised the Lower Passaic Cooperating Parties Group ("the CPG") and are parties to a May 2007 AOC with the EPA to perform a RI/FS of the 17-mile stretch known as the Lower Passaic River Study Area ("the River"). The Company's potential liability stems from former operations at Lodi and Belleville, New Jersey. In June 2007, the EPA issued a draft Focused Feasibility Study ("FFS") that considered interim remedial options for the lower 8-miles of the river, in addition to a "no action" option. As an interim step related to the 2007 AOC, the CPG voluntarily entered into an AOC on June 18, 2012 with the EPA for remediation actions focused solely at mile 10.9 of the River. The Company's estimated costs related to the RI/FS and focused remediation at mile 10.9, based on interim allocations, are immaterial and have been accrued. In April 2014, the EPA issued its revised FFS, with remedial alternatives to address cleanup of the lower 8-mile stretch of the River, which also included a "no action" option. The EPA estimates the cost for the alternatives range from $365.0 million to $ 3.2 billion . The EPA's preferred approach would involve bank-to-bank dredging of the lower 8-mile stretch of the River and installing an engineered cap at a discounted, estimated cost of $ 1.7 billion . Based on the issuance of the EPA's revised FFS, the Company recorded a $ 23.1 million accrual in fiscal 2014 representing the estimate of its allocable share of the joint and several remediation liability resulting from this matter. In April 2015, the CPG presented a draft of the RI/FS of the River to the EPA. The CPG's RI/FS included alternatives that ranged fro |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 19. 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 30, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Debt and equity securities held in rabbi trusts $ 34.6 $ 23.1 $ 11.5 $ — Foreign exchange forward and option contracts $ 0.2 $ 0.2 $ — $ — $ 34.8 $ 23.3 $ 11.5 $ — Liabilities: Deferred compensation liabilities $ 26.8 $ — $ 26.8 $ — Contingent consideration and acquired contingent liabilities 247.8 — — 247.8 Foreign exchange forward and option contracts 1.6 1.6 — — $ 276.2 $ 1.6 $ 26.8 $ 247.8 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 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 30, 2016 , the fair value of this contingent consideration was $0.9 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 30, 2016 were $123.4 million . Under the terms of the license agreement with Novartis, the Company made a $25.0 million payment in fiscal 2016, and is obligated to make annual payments of $25.0 million subsequent to fiscal 2016 until such time that the Company obtains FDA approval of Synacthen and makes 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 in the U.S. market. As of September 30, 2016, the total remaining payments under the license agreement shall not exceed $165.0 million . The terms of the license agreement do allow the Company to terminate the license agreement at its 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% . Based on the terms of the acquisition agreement with the former shareholders of BioVectra, the Company was 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. During fiscal 2016, the Company paid the remaining obligation of $40.0 million CAD to the former owners of BioVectra to reach the maximum cumulative payment of $50.0 million CAD. At September 30, 2016, there are no further contingent liabilities associated with BioVectra. As part of the Hemostasis Acquisition, the Company provided contingent consideration to The Medicines Company in the form of sales based milestones associated with Raplixa and PreveLeak, and acquired contingent liabilities associated with The Medicines Company's prior acquisitions of the aforementioned products. The Company determined the fair value of the contingent consideration and acquired contingent liabilities based on an option pricing model to be $57.7 million and $11.0 million , respectively, at September 30, 2016. As part of the Stratatech Acquisition, the Company provided contingent consideration to the Stratatech Corporation, primarily in the form of regulatory filing and approval milestones associated with the deep partial thickness and full thickness indications associated with the StrataGraft product. The Company assesses the likelihood of and timing of making such payments. The Company determined the fair value of the contingent consideration associated with the Stratatech Acquisition to be $54.9 million at September 30, 2016. Balance at September 25, 2015 $ 174.6 Acquisition date fair value of contingent consideration 106.9 Acquisition date fair value of acquired contingent consideration 10.6 Payments (55.0 ) Accretion expense 6.3 Fair value adjustment 4.4 Balance at September 30, 2016 $ 247.8 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 $19.1 million and $66.3 million as of September 30, 2016 and September 25, 2015 , 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 $67.6 million and $66.8 million at September 30, 2016 and September 25, 2015 , respectively. These contracts are included in other assets on the consolidated 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 value of the 4.00% term loan approximates the fair value of this instrument, as calculated using the discounted exit price for the instrument, and is 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 30, 2016 September 25, 2015 Carrying Value Fair Value Carrying Value Fair Value Variable rate receivable securitization $ 235.0 $ 235.0 $ 153.0 $ 153.0 3.50% notes due April 2018 300.0 299.6 300.0 294.3 4.875% notes due April 2020 700.0 712.4 700.0 684.1 Term loans due March 2021 1,953.5 1,951.8 1,978.5 1,966.5 4.00% term loan due February 2022 7.1 7.1 7.9 7.9 9.50% debentures due May 2022 10.4 12.1 10.4 13.0 5.75% notes due August 2022 884.0 869.3 900.0 876.1 8.00% debentures due March 2023 4.4 4.9 4.4 5.3 4.75% notes due April 2023 600.0 539.5 600.0 539.6 5.625% notes due October 2023 740.0 710.2 750.0 705.2 5.50% notes due April 2025 700.0 663.6 700.0 646.0 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 2016 2015 2014 CuraScript, Inc. 38 % 35 % 7 % McKesson Corporation 12 % 20 % 25 % AmerisourceBergen Corporation 8 % 10 % 15 % Cardinal Health, Inc. 7 % 11 % 18 % 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 30, September 25, McKesson Corporation 30 % 26 % AmerisourceBergen Corporation 15 % 13 % CuraScript, Inc. 14 % 18 % Cardinal Health, Inc. 10 % 13 % The following table shows net sales attributable to products that accounted for 10% or more of the Company's total net sales: Fiscal Year 2016 2015 2014 Acthar 34 % 35 % 7 % Inomax 14 % 6 % — % Acetaminophen products (API) 5 % 7 % 12 % Methylphenidate ER 3 % 5 % 13 % |
Segment and Geographical Data
Segment and Geographical Data | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographical Data | 20. 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. On November 27, 2015, the Company completed the sale of the CMDS business to Guerbet. As a result, the CMDS business was eliminated from the Global Medical Imaging segment, which was renamed Nuclear Imaging. During the fourth quarter of fiscal 2016, the Company announced that it had entered into a definitive agreement to sell its Nuclear Imaging business to IBAM, which is expected to be completed during the first half of calendar 2017. The Nuclear Imaging business is deemed to be held for sale and the financial results of this business are presented as a discontinued operation. Prior year amounts have been recast to conform to current presentation. The two reportable segments are further described below: • Specialty Brands produces and markets branded pharmaceutical products and therapies; and • Specialty Generics produces and markets specialty generic pharmaceuticals and API consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. 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 Guerbet, 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 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 $15.5 billion and $16.4 billion at September 30, 2016 and September 25, 2015, respectively. Selected information by business segment is as follows: Fiscal Year 2016 2015 2014 Net sales: Specialty Brands $ 2,300.6 $ 1,622.8 $ 413.5 Specialty Generics 1,025.2 1,251.6 1,199.4 Net sales of operating segments (1) 3,325.8 2,874.4 1,612.9 Other (2) 55.0 48.7 37.4 Net sales $ 3,380.8 $ 2,923.1 $ 1,650.3 Operating income: Specialty Brands $ 1,166.2 $ 637.6 $ (68.6 ) Specialty Generics 376.1 594.4 599.4 Segment operating income 1,542.3 1,232.0 530.8 Unallocated amounts: Corporate and allocated expenses (3) (169.8 ) (282.6 ) (227.7 ) Intangible asset amortization (700.1 ) (550.3 ) (154.8 ) Restructuring and related charges, net (4) (38.2 ) (45.3 ) (68.2 ) Non-restructuring impairments (16.9 ) — (27.1 ) Separation costs — — (9.6 ) Operating income $ 617.3 $ 353.8 $ 43.4 Depreciation and amortization (5) : Specialty Brands $ 716.6 $ 559.5 $ 153.3 Specialty Generics 96.8 81.6 78.2 $ 813.4 $ 641.1 $ 231.5 (1) Amounts represent sales to external customers. There were no intersegment sales. (2) Represents net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. Amounts for periods prior to the divestiture represent the reclassification of intercompany sales to third-party sales to conform with the expected presentation of the ongoing supply agreement. (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 2016 2015 2014 Acthar $ 1,160.4 $ 1,037.3 $ 122.9 Inomax 474.3 185.2 — Ofirmev 284.3 263.0 124.4 Therakos immunotherapy 207.6 — — Hemostasis products 42.5 — — Other 131.5 137.3 166.2 Specialty Brands 2,300.6 1,622.8 413.5 Hydrocodone (API) and hydrocodone-containing tablets 146.5 167.2 99.4 Oxycodone (API) and oxycodone-containing tablets 126.2 154.6 155.2 Methylphenidate ER 103.5 136.5 209.6 Other controlled substances 468.1 572.2 584.5 Other 180.9 221.1 150.7 Specialty Generics 1,025.2 1,251.6 1,199.4 Other (1) 55.0 48.7 37.4 Net sales $ 3,380.8 $ 2,923.1 $ 1,650.3 (1) Represents net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. Amounts for periods prior to the divestiture represent the reclassification of intercompany sales to third-party sales to conform with the expected presentation of the ongoing supply agreement. Selected information by geographic area excluding assets held for sale is as follows: Fiscal Year 2016 2015 2014 Net sales (1) : U.S. $ 3,095.4 $ 2,647.0 $ 1,485.0 Europe, Middle East and Africa 211.8 159.0 140.8 Other 73.6 117.1 24.5 $ 3,380.8 $ 2,923.1 $ 1,650.3 Long-lived assets (2) : U.S. $ 742.4 $ 747.8 Europe, Middle East and Africa (3) 61.2 13.4 Other 52.5 44.5 $ 856.1 $ 805.7 (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 $59.3 million , and $10.7 million at the end of fiscal 2016 and 2015, respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 21. Selected Quarterly Financial Data (Unaudited) Fiscal 2016 (by quarter) Q1 Q2 Q3 Q4 Net sales $ 811.2 $ 815.8 $ 866.6 $ 887.2 Gross profit 450.9 425.1 488.8 490.2 Income from continuing operations 103.8 98.5 176.7 110.0 Income from discontinued operations 107.3 19.8 22.6 5.0 Net income 211.1 118.3 199.3 115.0 Basic earnings per share from continuing operations (1) $ 0.90 $ 0.89 $ 1.63 $ 1.02 Diluted earnings per share from continuing operations (1) 0.89 0.88 1.62 1.01 Fiscal 2015 (by quarter) Q1 Q2 Q3 Q4 Net sales $ 666.3 $ 709.5 $ 768.5 $ 778.8 Gross profit 355.7 399.7 441.7 425.8 Income from continuing operations 73.6 55.3 34.6 73.1 Income from discontinued operations 19.1 43.5 23.4 2.1 Net income 92.7 98.8 58.0 75.2 Basic earnings per share from continuing operations (1) $ 0.63 $ 0.47 $ 0.30 $ 0.62 Diluted earnings per share from continuing operations (1) 0.63 0.47 0.29 0.62 (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. 30, 2016 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating and Combining Financial Statements | 22. Condensed Consolidating Financial Statements 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 sheets as of September 30, 2016 and September 25, 2015 and condensed consolidating statements of comprehensive income and cash flows for the three years ended September 30, 2016 . 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 30, 2016 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.3 $ 25.0 $ 255.2 $ — $ 280.5 Accounts receivable, net — — 465.8 — 465.8 Inventories — — 335.6 — 335.6 Deferred income taxes — — — — — Prepaid expenses and other current assets 1.4 0.1 114.4 — 115.9 Current assets held for sale — — 308.8 — 308.8 Intercompany receivable 88.9 473.8 1,081.4 (1,644.1 ) — Total current assets 90.6 498.9 2,561.2 (1,644.1 ) 1,506.6 Property, plant and equipment, net — — 844.0 — 844.0 Goodwill — — 3,705.3 — 3,705.3 Intangible assets, net — — 9,182.3 — 9,182.3 Long-term assets held for sale — — — — — Investment in subsidiaries 5,657.8 20,168.4 11,020.0 (36,846.2 ) — Intercompany loan receivable 143.5 — 3,159.4 (3,302.9 ) — Other assets — — 260.5 — 260.5 Total Assets $ 5,891.9 $ 20,667.3 $ 30,732.7 $ (41,793.2 ) $ 15,498.7 — Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 19.8 $ 236.5 $ — $ 256.3 Accounts payable 0.2 — 109.9 — 110.1 Accrued payroll and payroll-related costs — — 116.0 — 116.0 Accrued interest — 79.3 1.3 — 80.6 Accrued and other current liabilities 2.2 7.5 541.2 — 550.9 Current liabilities held for sale — — 120.8 — 120.8 Intercompany payable 618.8 462.6 562.7 (1,644.1 ) — Total current liabilities 621.2 569.2 1,688.4 (1,644.1 ) 1,234.7 Long-term debt — 5,767.8 20.9 — 5,788.7 Pension and postretirement benefits — — 144.9 — 144.9 Environmental liabilities — — 73.4 — 73.4 Deferred income taxes — — 2,581.4 — 2,581.4 Other income tax liabilities — — 67.7 — 67.7 Long-term liabilities held for sale — — — — — Intercompany loans payable — 3,302.9 — (3,302.9 ) — Other liabilities — 7.4 329.8 — 337.2 Total liabilities 621.2 9,647.3 4,906.5 (4,947.0 ) 10,228.0 Shareholders' equity 5,270.7 11,020.0 25,826.2 (36,846.2 ) 5,270.7 Total Liabilities and Shareholders' Equity $ 5,891.9 $ 20,667.3 $ 30,732.7 $ (41,793.2 ) $ 15,498.7 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 — — 489.6 — 489.6 Inventories — — 262.1 — 262.1 Deferred income taxes — — 139.2 — 139.2 Prepaid expenses and other current assets 1.3 0.2 192.9 — 194.4 Current assets held for sale — — 394.9 — 394.9 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 — — 793.0 — 793.0 Goodwill — — 3,649.4 — 3,649.4 Intangible assets, net — — 9,666.3 — 9,666.3 Long-term assets held for sale — — 223.6 — 223.6 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 — 0.1 225.6 — 225.7 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 $ 2.0 $ — $ 22.0 Accounts payable — 0.2 116.6 — 116.8 Accrued payroll and payroll-related costs 0.1 — 94.9 — 95.0 Accrued interest — 77.1 3.1 — 80.2 Accrued and other current liabilities 1.8 0.3 484.0 — 486.1 Current liabilities held for sale — — 129.3 — 129.3 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 — — 114.2 — 114.2 Environmental liabilities — — 73.3 — 73.3 Deferred income taxes — — 3,117.5 — 3,117.5 Other income tax liabilities — — 121.3 — 121.3 Long-term liabilities held for sale — — 53.9 — 53.9 Intercompany loans payable — 2,672.6 — (2,672.6 ) — Other liabilities — — 209.0 — 209.0 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 STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 30, 2016 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 3,380.8 $ — $ 3,380.8 Cost of sales — — 1,525.8 — 1,525.8 Gross profit — — 1,855.0 — 1,855.0 Selling, general and administrative expenses 51.3 0.8 873.2 — 925.3 Research and development expenses — — 262.2 — 262.2 Restructuring charges, net — — 33.3 — 33.3 Non-restructuring impairment charges — — 16.9 — 16.9 Separation costs — — — — — Gains on divestiture and license — — — — — Operating income (loss) (51.3 ) (0.8 ) 669.4 — 617.3 — Interest expense (230.3 ) (327.0 ) (82.4 ) 255.1 (384.6 ) Interest income — 0.5 255.9 (255.1 ) 1.3 Other income (expense), net 90.0 1.7 (92.3 ) — (0.6 ) Intercompany interest and fees (16.1 ) — 16.1 — — Equity in net income of subsidiaries 820.8 1,327.2 1,057.9 (3,205.9 ) — Income from continuing operations before income taxes 613.1 1,001.6 1,824.6 (3,205.9 ) 233.4 Benefit from income taxes (30.6 ) (18.1 ) (206.9 ) — (255.6 ) Income from continuing operations 643.7 1,019.7 2,031.5 (3,205.9 ) 489.0 Income from discontinued operations, net of income taxes — 38.2 116.5 — 154.7 Net income 643.7 1,057.9 2,148.0 (3,205.9 ) 643.7 Other comprehensive loss, net of tax (86.5 ) (86.5 ) (173.5 ) 260.0 (86.5 ) Comprehensive income $ 557.2 $ 971.4 $ 1,974.5 $ (2,945.9 ) $ 557.2 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 $ — $ — $ 2,923.1 $ — $ 2,923.1 Cost of sales — — 1,300.2 — 1,300.2 Gross profit — — 1,622.9 — 1,622.9 Selling, general and administrative expenses 116.3 15.7 891.8 — 1,023.8 Research and development expenses — — 203.3 — 203.3 Restructuring charges, net 9.8 — 35.2 — 45.0 Non-restructuring impairments — — — — — Separation costs — — — — — Gains on divestiture and license — — (3.0 ) — (3.0 ) Operating income (loss) (126.1 ) (15.7 ) 495.6 — 353.8 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 309.7 250.5 624.5 (1,077.4 ) 107.3 Benefit from income taxes (15.9 ) — (113.4 ) — (129.3 ) Income from continuing operations 325.6 250.5 737.9 (1,077.4 ) 236.6 Income (loss) from discontinued operations, net of income taxes (0.9 ) — 89.0 — 88.1 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 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 26, 2014 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,650.3 $ — $ 1,650.3 Cost of sales — — 765.7 — 765.7 Gross profit — — 884.6 — 884.6 Selling, general and administrative expenses 37.7 7.3 566.0 — 611.0 Research and development expenses — — 140.5 — 140.5 Restructuring charges, net 35.3 — 32.7 — 68.0 Non-restructuring impairments — — 27.1 — 27.1 Separation costs 2.5 — 7.1 — 9.6 Gains on divestiture and license — — (15.0 ) — (15.0 ) Operating income (loss) (75.5 ) (7.3 ) 126.2 — 43.4 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 ) (187.6 ) 736.2 (34.6 ) benefit from income taxes — — (12.6 ) — (12.6 ) Loss from continuing operations (318.4 ) (264.8 ) (175.0 ) 736.2 (22.0 ) Loss from discontinued operations, net of income taxes (0.9 ) — (296.4 ) — (297.3 ) 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 CONSOLIDATING STATEMENT OF CASH FLOWS Fiscal year ended September 30, 2016 (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 $ 17.9 $ (47.4 ) $ 1,214.1 $ — $ 1,184.6 Cash Flows From Investing Activities: Capital expenditures — — (182.9 ) — (182.9 ) Acquisitions and intangibles, net of cash acquired — — (245.4 ) — (245.4 ) Proceeds from disposal of discontinued operations, net of cash — 234.0 33.0 — 267.0 Intercompany loan investment — (175.2 ) (1,714.5 ) 1,889.7 — Investment in subsidiary — (861.2 ) — 861.2 — Proceeds from sale of subsidiary 3.4 — — (3.4 ) — Acquisition of subsidiary — — (3.4 ) 3.4 — Restricted cash — — 47.3 — 47.3 Other — — 6.0 — 6.0 Net cash used in investing activities 3.4 (802.4 ) (2,059.9 ) 2,750.9 (108.0 ) Cash Flows From Financing Activities: Issuance of external debt — — 98.3 — 98.3 Repayment of external debt and capital leases — (549.2 ) (19.4 ) — (568.6 ) Excess tax benefit from share-based compensation — — — — — Debt financing costs — — (0.1 ) — (0.1 ) Proceeds from exercise of share options 14.0 — — — 14.0 Intercompany loan borrowings 617.8 1,271.9 — (1,889.7 ) — Capital contribution — — 861.2 (861.2 ) — Repurchase of shares (652.9 ) — — — (652.9 ) Other — — (53.0 ) — (53.0 ) Net cash provided by financing activities (21.1 ) 722.7 887.0 (2,750.9 ) (1,162.3 ) Effect of currency rate changes on cash — — 0.3 — 0.3 Net (decrease) increase in cash and cash equivalents 0.2 (127.1 ) 41.5 — (85.4 ) Cash and cash equivalents at beginning of period 0.1 152.1 213.7 — 365.9 Cash and cash equivalents at end of period 0.3 25.0 255.2 — 280.5 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 increase (decrease) 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 CONSOLIDATING 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 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 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Sep. 30, 2016 | |
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 30, 2016 $ 3.6 $ 0.3 $ — $ 0.1 $ 4.0 Fiscal year ended September 25, 2015 2.2 1.2 — 0.2 3.6 Fiscal year ended September 26, 2014 2.4 — — (0.2 ) 2.2 Sales reserve accounts: Fiscal year ended September 30, 2016 $ 396.4 $ 2,030.8 $ — $ (2,049.2 ) $ 378.0 Fiscal year ended September 25, 2015 402.2 2,177.4 1.3 (2,184.5 ) 396.4 Fiscal year ended September 26, 2014 284.2 1,710.6 30.6 (1,623.2 ) 402.2 Tax valuation allowance: Fiscal year ended September 30, 2016 $ 233.0 $ 315.7 $ 15.8 $ 0.4 $ 564.9 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 |
Background and Basis of Prese33
Background and Basis of Presentation (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The consolidated 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 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 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 financial statements up to the date of disposal and, where appropriate, these operations have been reflected as discontinued operations. Divestitures of product lines not meeting the criteria for discontinued operations 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 2016 consisted of 53 weeks and 2015 and 2014 each consisted of 52 weeks. Unless otherwise indicated, fiscal 2016 , 2015 and 2014 refer to the Company's fiscal years ended September 30, 2016 , September 25, 2015 and September 26, 2014 , respectively. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
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, 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, medical affairs 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 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 | 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 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 Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been reflected in the consolidated 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 |
Earnings (Loss) per Share (Poli
Earnings (Loss) per Share (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings (Loss) per Share [Abstract] | |
Earnings (Loss) Per Share Policy |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 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. |
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 D37
Discontinued Operations and Divestitures (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations [Abstract] | |
Schedule of Income (Loss) from Discontinued Operations | The following table summarizes the financial results of the CMDS business for fiscal 2016, 2015 and 2014 as presented in the consolidated statements of income: Fiscal Year Major line items constituting income (loss) from discontinued operations 2016 2015 2014 Net sales $ 61.0 $ 413.8 $ 495.8 Cost of sales 46.9 306.4 352.9 Selling, general and administrative 20.3 97.5 97.1 Restructuring charges, net — 0.3 47.2 Non-restructuring impairment charges — — 204.0 Other 1.2 4.7 4.1 (Loss) income from discontinued operations (7.4 ) 4.9 (209.5 ) Gain on disposal of discontinued operations 95.3 — — Income from discontinued operations, before income taxes 87.9 4.9 (209.5 ) Income tax expense (benefit) (2.5 ) 10.8 (34.7 ) Income (loss) from discontinued operations net of tax $ 90.4 $ (5.9 ) $ (174.8 ) The following table summarizes the financial results of the Nuclear Imaging business for fiscal years 2016, 2015 and 2014 as presented in the consolidated statements of income: Fiscal Year Major line items constituting income (loss) from discontinued operations 2016 2015 2014 Net sales $ 418.6 $ 423.8 $ 431.7 Cost of sales 216.6 193.1 256.1 Selling, general and administrative 83.7 89.6 111.5 Restructuring charges, net 2.3 (4.6 ) 13.4 Non-restructuring impairment charges — — 124.5 Other 5.7 37.7 45.5 Income (loss) from discontinued operations 110.3 108.0 (119.3 ) Income tax expense 49.0 36.4 2.5 Income (loss) from discontinued operations, net of income taxes $ 61.3 $ 71.6 $ (121.8 ) |
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 30, 2016 and September 25, 2015: September 30, 2016 September 25, 2015 Carrying amounts of major classes of assets included as part of discontinued operations Accounts receivable $ — $ 68.5 Inventories — 86.3 Property, plant and equipment, net — 60.3 Intangible assets, net — 27.7 Other current and non-current assets — 57.1 Total assets classified as held for sale in the balance sheet $ — $ 299.9 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable $ — $ 22.0 Other current and non-current liabilities — 50.8 Total liabilities classified as held for sale in the balance sheet $ — $ 72.8 The following table summarizes the assets and liabilities of the Nuclear Imaging business that are classified as held for sale on the consolidated balance sheets as of September 30, 2016 and September 25, 2015: September 30, 2016 September 25, 2015 Carrying amounts of major classes of assets included as part of discontinued operations Accounts receivable $ 53.7 $ 58.9 Inventories 19.0 19.7 Property, plant and equipment, net 189.0 198.3 Other current and non-current assets 47.1 41.7 Total assets classified as held for sale in the balance sheet $ 308.8 $ 318.6 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable $ 17.7 $ 16.2 Other current and non-current liabilities 103.1 94.2 Total liabilities classified as held for sale in the balance sheet $ 120.8 $ 110.4 |
Schedule of Significant Cash and Non-Cash Transactions | The following table summarizes significant cash and non-cash transactions of the Nuclear Imaging business that are included within the consolidated statements of cash flows for the fiscal years 2016, 2015 and 2014: Fiscal Year 2016 2015 2014 Depreciation $ 20.9 $ 13.1 $ 17.9 Capital expenditures 9.7 7.6 8.1 Non-cash impairment charges — — 124.5 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 2016, 2015 and 2014: Fiscal Year 2016 2015 2014 Depreciation $ — $ 15.5 $ 18.9 Amortization — 2.3 7.5 Capital expenditures 1.6 9.5 12.3 Non-cash impairment charges — — 204.0 |
Acquisitions and License Agre38
Acquisitions and License Agreements (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 Stratatech Acquisition and Hemostasis Acquisition, and final allocation of the fair value of the identifiable assets acquired and liabilities assumed for the Therakos Acquisition, Ikaria Acquisition, Questcor Acquisition and Cadence Acquisition: Stratatech Hemostasis Therakos Ikaria Questcor Cadence Cash $ 0.2 $ 3.3 $ 41.3 $ 77.3 $ 445.1 $ 43.2 Inventory — 94.6 23.5 26.3 67.9 21.0 Intangible assets 99.8 132.7 1,170.0 1,971.0 5,601.1 1,300.0 Goodwill (non-tax deductible) 57.3 3.3 429.9 795.0 1,789.4 318.1 Other assets, current and non-current (1) 3.2 7.9 40.2 174.3 274.3 18.0 Total assets acquired 160.5 241.8 1,704.9 3,043.9 8,177.8 1,700.3 Current liabilities 4.3 3.6 24.7 33.0 168.9 48.8 Unpaid purchase consideration (current) — — — — 128.8 — Other liabilities (non-current) — 10.6 0.6 15.8 186.8 — Deferred tax liabilities, net (non-current) 24.3 2.1 315.7 620.5 1,906.8 292.3 Contingent consideration (non-current) 54.9 52.0 — — — — Total debt 1.0 — 344.8 1,121.0 — 30.0 Total liabilities assumed 84.5 68.3 685.8 1,790.3 2,391.3 371.1 Net assets acquired $ 76.0 $ 173.5 $ 1,019.1 $ 1,253.6 $ 5,786.5 $ 1,329.2 (1) This amount includes $1.3 million , zero , $22.0 million , $73.8 million , $87.3 million , and $14.7 million of accounts receivable for the Stratatech Acquisition, Hemostasis Acquisition, Therakos Acquisition, Ikaria Acquisition, Questcor Acquisition and Cadence Acquisition, respectively, which is also the gross contractual value. |
Schedule of Reconciliation of Total Consideration | The following reconciles the total consideration to net assets acquired: Stratatech Hemostasis Therakos Ikaria Questcor Cadence Total consideration, net of cash $ 130.7 $ 222.2 $ 977.8 $ 1,176.3 $ 5,470.2 $ 1,286.0 Plus: cash assumed in acquisition 0.2 3.3 41.3 77.3 445.1 43.2 Total consideration 130.9 225.5 1,019.1 1,253.6 5,915.3 1,329.2 Less: unpaid purchase consideration — — — — (128.8 ) — Less: non-cash contingent consideration (54.9 ) (52.0 ) — — — — Net assets acquired $ 76.0 $ 173.5 $ 1,019.1 $ 1,253.6 $ 5,786.5 $ 1,329.2 |
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 2016 2015 2014 Therakos $ 207.6 $ — $ — Ikaria 491.5 191.9 — Questcor 1,218.4 1,125.9 129.2 Cadence 284.3 263.0 124.4 $ 2,201.8 $ 1,580.8 $ 253.6 Operating income (loss) Therakos $ 12.5 $ — $ — Ikaria 201.1 47.1 — Questcor 371.5 223.3 17.4 Cadence (84.5 ) (97.3 ) (66.9 ) $ 500.6 $ 173.1 $ (49.5 ) |
Schedule of Acquisition Cost | Acquisition-Related Costs - Acquisition-related costs incurred in fiscal 2016, 2015 and 2014 for each of the acquisitions discussed above were as follows: Acquisition-related costs 2016 2015 2014 Stratatech $ 3.7 $ — $ — Hemostasis Products 2.7 — — Therakos 0.3 22.5 — Ikaria 0.2 30.9 — Questcor — — 47.5 Cadence — — 17.6 $ 6.9 $ 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 2016 2015 2014 Therakos $ 78.0 $ — $ — Ikaria 124.5 57.1 — Questcor 300.7 301.4 34.9 Cadence 162.5 162.5 85.9 $ 665.7 $ 521.0 $ 120.8 During fiscal 2016, 2015 and 2014, the Company recognized $24.3 million , $44.1 million and $25.7 million , respectively, of expense 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: Stratatech Amount Amortization Period In-process research and development - StrataGraft $ 99.8 Non-Amortizable The IPR&D intangible asset relates to StrataGraft. The fair value of the IPR&D was determined using the income approach, which is a valuation technique that provides an estimate of fair value of the assets based on the market participant expectations of cash flows the asset would generate. The cash flows were discounted at a rate of 16.5% . The IPR&D discount rate for StrataGraft 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 future product development, the assembled workforce, 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. Hemostasis Products Amount Amortization Period Raplixa - Completed technology $ 73.0 15 years Recothrom - Completed technology 42.7 13 years PreveLeak - Completed technology 17.0 13 years $ 132.7 The completed technology intangible assets relate to each of the acquired drugs. The fair value of the intangible assets were determined using the income approach. The cash flows were discounted commensurate with the level of risk associated with each asset or its projected cash flows. The completed technology intangible assets utilized a discount rate of 17.0% , 16.0% and 17.0% for Raplixa, Recothrom and PreveLeak, respectively. All assets acquired are included within the Company's Specialty Brands segment. 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. The completed technology intangible asset utilized a discount rate of 17.0% . 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. Completed technology, trademark and 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. 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. The IPR&D 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. 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. 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. |
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 acquisitions occurred on the assumed dates, 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 acquisitions or revenue growth that may be anticipated. 2016 2015 Net sales $ 3,380.8 $ 3,332.0 Income from continuing operations 499.4 288.9 Basic earnings per share from continuing operations $ 4.52 $ 2.49 Diluted earnings from per share continuing operations 4.48 2.47 |
Restructuring and Related Cha39
Restructuring and Related Charges (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges by Segment | Net restructuring and related charges by segment from continuing operations are as follows: Fiscal Year 2016 2015 2014 Specialty Brands $ 23.3 $ 36.5 $ 57.0 Specialty Generics 3.4 4.5 9.8 Corporate 11.5 4.3 1.4 Restructuring and related charges, net 38.2 45.3 68.2 Less: accelerated depreciation (4.9 ) (0.3 ) (0.2 ) Restructuring charges, net $ 33.3 $ 45.0 $ 68.0 |
Schedule of Net Restructuring and Related Charges | Net restructuring and related charges by program from continuing operations are comprised of the following: Fiscal Year 2016 2015 2014 2016 Mallinckrodt Program $ 8.3 $ — $ — 2013 Mallinckrodt Program 26.2 12.0 13.6 Acquisition programs 3.7 33.6 56.4 Other programs — (0.3 ) (1.8 ) Total programs 38.2 45.3 68.2 Less: non-cash charges, including impairments and accelerated share based compensation expense (4.9 ) (10.1 ) (37.7 ) Total charges expected to be settled in cash $ 33.3 $ 35.2 $ 30.5 |
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: 2016 Mallinckrodt Program 2013 Mallinckrodt Program Acquisition Programs Other Programs Total Balance at September 27, 2013 $ — $ 14.9 $ — $ 10.6 $ 25.5 Charges from continuing operations — 19.2 22.9 1.4 43.5 Charges from discontinued operations — 39.0 — 1.1 40.1 Changes in estimate from continuing operations — (7.3 ) (1.6 ) (4.1 ) (13.0 ) Changes in estimate from discontinued operations — (2.1 ) — (0.7 ) (2.8 ) 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 — 11.7 25.3 — 37.0 Charges from discontinued operations — 4.7 — — 4.7 Changes in estimate from continuing operations — — (1.5 ) (0.3 ) (1.8 ) Changes in estimate from discontinued operations — (8.9 ) — — (8.9 ) 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 Charges from continuing operations 6.4 24.6 5.0 — 36.0 Charges from discontinued operations — 2.5 — — 2.5 Changes in estimate from continuing operations — (1.4 ) (1.3 ) — (2.7 ) Changes in estimate from discontinued operations — (0.3 ) — — (0.3 ) Cash payments (0.2 ) (20.3 ) (13.2 ) — (33.7 ) Reclassifications (1) — (1.3 ) — — (1.3 ) Balance at September 30, 2016 $ 6.2 $ 11.8 $ 0.5 $ — $ 18.5 (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 2016 and 2013 Mallinckrodt Programs are as follows: 2016 Mallinckrodt Program 2013 Mallinckrodt Program Specialty Brands $ 4.7 $ 18.8 Specialty Generics 0.5 18.3 Discontinued Operations (including Nuclear and CMDS) — 69.9 Corporate 3.1 18.4 $ 8.3 $ 125.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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) : 2016 2015 2014 Domestic $ (275.3 ) $ (107.5 ) $ (76.0 ) International 508.7 214.8 41.4 Total $ 233.4 $ 107.3 $ (34.6 ) (1) Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. |
Schedule of Significant Components of Income Taxes Related to Continuing Operations | Significant components of income taxes related to continuing operations are as follows (1) : 2016 2015 2014 Current: Domestic $ 0.3 $ 0.2 $ 22.3 International 120.5 67.3 18.9 Current income tax provision 120.8 67.5 41.2 Deferred: Domestic $ 0.7 $ (0.8 ) $ (41.9 ) International (377.1 ) (196.0 ) (11.9 ) Deferred income tax (benefit) (376.4 ) (196.8 ) (53.8 ) $ (255.6 ) $ (129.3 ) $ (12.6 ) (1) |
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: 2016 2015 2014 Provision for income taxes at Domestic statutory income tax rate (1) $ 46.6 $ 21.4 $ (12.1 ) Adjustments to reconcile to income tax provision: U.S. state income tax provision, net (5) — — (7.0 ) Rate difference between Domestic and International jurisdictions (2) (249.3 ) (152.9 ) (14.2 ) U.S. manufacturing deduction (5) — — (2.7 ) Valuation allowances, nonrecurring 2.1 (2.1 ) 0.1 Adjustments to accrued income tax liabilities and uncertain tax positions (14.9 ) (7.0 ) (0.4 ) Interest and penalties on accrued income tax liabilities and uncertain tax positions (16.4 ) 0.3 (7.7 ) Investment in partnership — — 20.0 Credits, principally research and orphan drug (3) (4) (33.7 ) (8.1 ) (0.7 ) Permanently nondeductible and nontaxable items 7.9 14.7 13.4 Other 2.1 4.4 (1.3 ) Provision for income taxes $ (255.6 ) $ (129.3 ) $ (12.6 ) (1) The statutory tax rate reflects the U.K. statutory tax rate of 20% for fiscal 2016 and 2015, and the U.S. federal statutory tax rate of 35% for fiscal 2014. (2) Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. (3) Due to the December 31, 2013 Research Credit 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. (4) The Company realized a tax benefit of $27.4 million resulting from a U.K. tax credit on a dividend between affiliates. (5) For fiscal 2016, U.S. state income tax benefit of $15.1 million was combined with the rate differences between Domestic and International jurisdictions. For fiscal 2015, U.S. state income tax benefit of $34.9 million , and U.S. manufacturing deduction tax benefit of $4.3 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: 2016 2015 2014 Balance at beginning of fiscal year $ 89.2 $ 82.0 $ 100.1 Additions related to current year tax positions 63.8 4.5 3.2 Additions related to prior period tax positions 10.8 19.9 30.6 Reductions related to prior period tax positions (37.8 ) (7.7 ) (33.0 ) Reductions related to disposition transactions (6.6 ) — — Settlements (2.6 ) (7.8 ) (6.9 ) Lapse of statute of limitations (2.0 ) (1.7 ) (12.0 ) Balance at end of fiscal year $ 114.8 $ 89.2 $ 82.0 |
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 30, 2016 September 25, 2015 Accrued and other current liabilities $ — $ 1.3 Other income tax liabilities 55.4 80.0 Deferred income taxes (non-current liability) 59.4 7.9 $ 114.8 $ 89.2 |
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 30, 2016 September 25, 2015 Accrued and other current liabilities $ 111.8 $ 15.6 Other income tax liabilities 67.7 121.3 $ 179.5 $ 136.9 |
Schedule of Income Tax Receivables and Other Assets | At September 30, 2016 , other assets included $69.1 million of tax payments associated with non-current deferred intercompany transactions. Prepaid expenses and other current assets includes $10.0 million of tax payments associated with current deferred intercompany transactions, and $43.5 million of receivables associated with tax payments on account with the taxing authorities. At September 25, 2015 , other assets includes $51.7 million of tax payments associated with non-current deferred intercompany transactions. Prepaid expenses and other current assets includes a receivable of $81.1 million and tax payments of $8.7 million associated with current deferred intercompany transactions. All of the above items exclude amounts related to assets which are held for sale. September 30, 2016 September 25, 2015 Other assets $ 69.1 $ 51.7 Prepaid expenses and other current assets 53.5 89.8 $ 122.6 $ 141.5 |
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 30, 2016 September 25, 2015 Deferred tax assets: Accrued liabilities and reserves $ 80.8 $ 91.0 Inventories 35.4 21.4 Tax loss and credit carryforwards 332.3 159.5 Environmental liabilities 28.6 23.6 Rebate reserves 48.7 48.1 Expired product 12.2 26.3 Postretirement benefits 48.7 37.3 Federal and state benefit of uncertain tax positions and interest 17.4 33.6 Share-based compensation 22.1 17.6 Intangible assets 341.8 105.7 Other 14.9 8.7 982.9 572.8 Deferred tax liabilities: Property, plant and equipment (111.3 ) (111.8 ) Intangible assets (775.1 ) (1,550.7 ) Installment sale (1,902.9 ) (1,465.3 ) Investment in partnership (186.0 ) (187.9 ) (2,975.3 ) (3,315.7 ) Net deferred tax (liability) before valuation allowances (1,992.4 ) (2,742.9 ) Valuation allowances (564.9 ) (233.0 ) Net deferred tax (liability) $ (2,557.3 ) $ (2,975.9 ) |
Schedule of Deferred Taxes Balance Sheet Location | Deferred taxes are reported in the following consolidated balance sheet captions in the amounts shown: September 30, 2016 September 25, 2015 Deferred income taxes (current asset) $ — $ 139.2 Other non-current assets 24.1 6.6 Accrued and other current liabilities — (4.2 ) Deferred income taxes (non-current liability) (2,581.4 ) (3,117.5 ) Net deferred tax (liability) $ (2,557.3 ) $ (2,975.9 ) |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings (Loss) per Share [Abstract] | |
Schedule of Earnings (Loss) per Share | 2016 2015 2014 Earnings (loss) per share numerator: Income (loss) from continuing operations attributable to common shareholders before allocation of earnings to participating securities $ 489.0 $ 236.6 $ (22.0 ) Less: earnings allocated to participating securities — 2.0 — Income (loss) from continuing operations attributable to common shareholders, after earnings allocated to participating securities 489.0 234.6 (22.0 ) Income (loss) from discontinued operations 154.7 88.1 (297.3 ) Less: earnings from discontinued operations allocated to participating securities — 0.7 — Income (loss) from discontinued operations attributable to common shareholders, after allocation of earnings to participating securities 154.7 87.4 (297.3 ) Net income (loss) attributable to common shareholders, after allocation of earnings to participating securities $ 643.7 $ 322.0 $ (319.3 ) Earnings (loss) per share denominator: Weighted-average shares outstanding - basic 110.6 115.8 64.9 Impact of dilutive securities 0.9 1.4 — Weighted-average shares outstanding - diluted 111.5 117.2 64.9 Basic earnings (loss) per share attributable to common shareholders Income (loss) from continuing operations $ 4.42 $ 2.03 $ (0.34 ) Income (loss) from discontinued operations 1.40 0.75 (4.58 ) Net income (loss) attributable to common shareholders $ 5.82 $ 2.78 $ (4.92 ) Diluted earnings (loss) per share attributable to common shareholders Income (loss) from continuing operations $ 4.39 $ 2.00 $ (0.34 ) Income (loss) from discontinued operations 1.39 0.75 (4.58 ) Net income (loss) attributable to common shareholders $ 5.77 $ 2.75 $ (4.92 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories are comprised of the following at the end of each period: September 30, September 25, Raw materials and supplies $ 62.0 $ 52.9 Work in process 188.9 121.6 Finished goods 84.7 87.6 Inventories $ 335.6 $ 262.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 30, 2016 September 25, 2015 Land $ 46.8 $ 47.1 Buildings 287.2 261.7 Capitalized software 85.3 85.4 Machinery and equipment 1,032.3 979.9 Construction in process 164.1 118.3 1,615.7 1,492.4 Less: accumulated depreciation (771.7 ) (699.4 ) Property, plant and equipment, net $ 844.0 $ 793.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by segment were as follows: September 30, 2016 September 25, 2015 Specialty Brands $ 3,498.3 $ 3,442.4 Specialty Generics 207.0 207.0 Total $ 3,705.3 $ 3,649.4 During the fiscal year ended September 30, 2016, the gross carrying value of goodwill in the Specialty Brands segment increased by $55.9 million , primarily attributable to $57.3 million from the Stratatech Acquisition. The remaining change in goodwill is a result of the Hemostasis Acquisition, offset by purchase accounting adjustments for the Therakos Acquisition and Ikaria Acquisition primarily attributable to changes in deferred tax balances. |
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 30, 2016 September 25, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 10,028.8 $ 1,446.2 $ 9,896.0 $ 765.8 Licenses 185.1 112.3 185.1 99.8 Customer relationships 28.6 8.0 28.1 4.4 Trademarks 82.2 10.0 82.1 6.2 Other 6.7 6.7 6.7 6.7 Total $ 10,331.4 $ 1,583.2 $ 10,198.0 $ 882.9 Non-Amortizable: Trademarks $ 35.0 $ 35.0 In-process research and development 399.1 316.2 Total $ 434.1 $ 351.2 |
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 2017 $ 701.4 Fiscal 2018 692.4 Fiscal 2019 692.1 Fiscal 2020 691.9 Fiscal 2021 691.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 30, 2016 September 25, 2015 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: Variable rate receivable securitization $ 235.0 $ 0.4 $ — $ — Term loans due March 2021 20.0 0.4 20.0 — 4.00% term loan due February 2022 1.1 — 1.0 — Capital lease obligation and vendor financing agreements 1.0 — 1.0 — Total current debt 257.1 0.8 22.0 — Long-term debt: Variable rate receivable securitization — — 153.0 0.8 3.50% notes due April 2018 300.0 1.1 300.0 1.7 4.875% notes due April 2020 700.0 8.8 700.0 11.3 Term loans due March 2021 1,933.5 35.4 1,958.5 44.1 4.00% term loan due February 2022 6.0 — 6.9 — 9.50% debentures due May 2022 10.4 — 10.4 — 5.75% notes due August 2022 884.0 12.1 900.0 14.4 8.00% debentures due March 2023 4.4 — 4.4 — 4.75% notes due April 2023 600.0 6.4 600.0 7.1 5.625% notes due October 2023 740.0 11.8 750.0 13.7 5.50% notes due April 2025 700.0 10.6 700.0 11.9 Revolving credit facility — 3.6 500.0 4.9 Capital lease obligation and vendor financing agreements 0.2 — 1.0 — Total long-term debt 5,878.5 89.8 6,584.2 109.9 Total debt $ 6,135.6 $ 90.6 $ 6,606.2 $ 109.9 |
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 2017 $ 257.1 Fiscal 2018 321.3 Fiscal 2019 16.2 Fiscal 2020 721.3 Fiscal 2021 1,879.8 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 2016 2015 2014 2016 2015 2014 Service cost $ 1.8 $ 2.4 $ 2.7 $ 0.1 $ 0.1 $ 0.1 Interest cost 13.2 14.5 15.4 2.0 1.9 2.1 Expected return on plan assets (16.7 ) (18.9 ) (20.5 ) — — — Amortization of net actuarial loss 11.3 9.2 8.0 — — — Amortization of prior service cost — — — (2.1 ) (4.0 ) (9.3 ) Loss on plan settlements 8.1 5.9 3.8 — — — Net periodic benefit cost (credit) $ 17.7 $ 13.1 $ 9.4 $ — $ (2.0 ) $ (7.1 ) |
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 2016 and 2015 : Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Change in benefit obligation: Projected benefit obligations at beginning of year $ 375.5 $ 400.8 $ 52.2 $ 52.0 Service cost 1.8 2.4 0.1 0.1 Interest cost 13.2 14.5 2.0 1.9 Actuarial (gain) loss 65.5 (0.8 ) 0.5 2.1 Benefits and administrative expenses paid (20.1 ) (17.8 ) (4.0 ) (3.9 ) Plan settlements (26.5 ) (23.6 ) — — Plan curtailments and amendments (0.4 ) — — — Net transfer in/(out) — 0.7 — — Currency translation 0.1 (0.7 ) — — Projected benefit obligations at end of year $ 409.1 $ 375.5 $ 50.8 $ 52.2 Change in plan assets: Fair value of plan assets at beginning of year $ 309.9 $ 339.0 $ — $ — Actual return on plan assets 29.5 1.9 — — Employer contributions 16.7 10.4 4.0 3.9 Benefits and administrative expenses paid (20.1 ) (17.8 ) (4.0 ) (3.9 ) Plan settlements (26.5 ) (23.6 ) — — Currency translation — — — — Fair value of plan assets at end of year $ 309.5 $ 309.9 $ — $ — Funded status at end of year $ (99.6 ) $ (65.6 ) $ (50.8 ) $ (52.2 ) |
Schedule of Amounts Recognized in Balance Sheet | Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Amounts recognized on the consolidated balance sheet: Non-current assets $ 4.0 $ 3.9 $ — $ — Current liabilities (5.2 ) (2.9 ) (4.3 ) (4.6 ) Non-current liabilities (98.4 ) (66.6 ) (46.5 ) (47.6 ) Net amount recognized on the consolidated balance sheet $ (99.6 ) $ (65.6 ) $ (50.8 ) $ (52.2 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ (141.2 ) $ (107.9 ) $ (5.6 ) $ (5.1 ) Prior service credit 0.3 — 12.8 14.9 Net amount recognized in accumulated other comprehensive income $ (140.9 ) $ (107.9 ) $ 7.2 $ 9.8 |
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 2017 are as follows: Pension Benefits Postretirement Benefits Amortization of net actuarial loss $ 14.1 $ 0.1 Amortization of prior service cost 0.3 (2.1 ) |
Schedule of Plans with Accumulated Benefit Obligations in Excess of Plan Assets | Additional information related to pension plans is as follows: 2016 2015 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 398.1 $ 363.4 Fair value of plan assets 295.0 294.1 |
Schedule of 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 2016 2015 2014 2016 2015 2014 Discount rate 3.9 % 3.8 % 4.2 % 2.0 % 2.4 % 3.1 % Expected return on plan assets 5.8 % 6.0 % 6.5 % 2.0 % 2.0 % 2.0 % Rate of compensation increase — % — % — % — % — % — % 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 2016 2015 2014 2016 2015 2014 Discount rate 2.3 % 3.9 % 3.9 % 1.3 % 2.4 % 2.4 % Rate of compensation increase — % — % — % — % — % — % The weighted-average discount rate used to determine net periodic benefit cost and obligations for the Company's postretirement benefit plans are as follows: 2016 2015 2014 Net periodic benefit cost 4.0 % 3.6 % 4.0 % Benefit obligations 3.2 % 3.9 % 3.7 % |
Schedule of Healthcare Cost Trend Rates | Healthcare cost trend assumptions for postretirement benefit plans are as follows: 2016 2015 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 0.3 (0.2 ) |
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 2016 2015 Equity securities — % 27 % Debt securities 96 70 Cash and cash equivalents 4 3 Other — — Total 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 2016 and 2015 : Basis of Fair Value Measurement Fiscal 2016 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. large cap 1.4 1.4 — — Debt securities: Diversified fixed income funds (1) 296.1 296.1 — — Other 12.0 12.0 — — Total $ 309.5 $ 309.5 $ — $ — 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 22.9 22.7 0.2 — Debt securities: Diversified fixed income funds (1) 197.2 196.9 0.3 — High yield bonds 11.3 11.3 — — Emerging market funds 7.4 7.4 — — Other 9.8 9.0 0.8 — Total $ 309.9 $ 308.6 $ 1.3 $ — (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 Expected Benefit Payments | Benefit payments expected to be paid, reflecting future expected service as appropriate, are as follows: Pension Benefits Postretirement Benefits Fiscal 2017 $ 113.2 $ 4.3 Fiscal 2018 22.2 4.0 Fiscal 2019 21.8 3.7 Fiscal 2020 20.5 3.5 Fiscal 2021 19.2 3.3 Fiscal 2021 - 2025 85.9 14.9 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Share Repurchases under the Repurchase Plan | Share Repurchases On November 19, 2015, the Board of Directors authorized a $500.0 million share repurchase program (the “November 2015 Program”). The November 2015 Program commenced after the $300.0 million share repurchase program authorized by the Board of Directors on January 23, 2015 (the “January 2015 Program”) was completed in the first fiscal quarter of 2016. On March 16, 2016, the Board of Directors authorized an additional $350.0 million share repurchase program (the “March 2016 Program”) which will commence upon the completion of the November 2015 Program. These programs have no time limit or expiration date, and the Company currently expects to fully utilize each program. March 2016 Repurchase Program November 2015 Repurchase Program January 2015 Repurchase Program Number of Shares Amount Number of Shares Amount Number of Shares Amount Authorized repurchase amount $ 350.0 $ 500.0 $ 300.0 Repurchases: Fiscal 2015 — — — — 823,592 75.0 Fiscal 2016 — — 6,510,824 425.6 3,199,279 225.0 Remaining amount available $ 350.0 $ 74.4 $ — |
Share Plans (Tables)
Share Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of the Valuation Assumptions Used in the Conversion | The weighted-average assumptions used in the Black-Scholes pricing model for shares granted in fiscal 2016, 2015 and 2014, along with the weighted-average grant-date fair value, were as follows: 2016 2015 2014 Expected share price volatility 31 % 29 % 32 % Risk-free interest rate 1.74 % 1.72 % 1.96 % Expected annual dividend per share — % — % — % Expected life of options (in years) 5.3 5.3 5.5 Fair value per option $ 22.82 $ 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 Aggregate Intrinsic Value 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 Granted 1,248,828 72.44 Exercised (413,830 ) 32.76 Expired/Forfeited (199,585 ) 72.65 Outstanding at September 30, 2016 3,421,856 61.17 7.3 $ 49.6 Vested and unvested expected to vest as of September 30, 2016 2,997,502 61.60 7.5 $ 42.6 Exercisable at September 30, 2016 1,388,805 45.55 5.3 38.2 |
Share-based Compensation, Performance Shares Award Outstanding Activity | PSU activity is as follows (1) : Shares Weighted-Average Non-vested at September 26, 2014 72,740 $ 63.46 Granted 77,306 125.84 Forfeited (19,072 ) 92.05 Non-vested at September 25, 2015 130,974 96.05 Granted 145,192 83.00 Forfeited (9,521 ) 96.30 Non-vested at September 30, 2016 266,645 88.59 (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: 2016 2015 2014 Expected stock price volatility 41 % 27 % 28 % Peer group stock price volatility 36 % 32 % 33 % Correlation of returns 24 % 14 % 17 % |
Schedule of Restricted Share Unit Activity | RSU activity is as follows: Shares Weighted-Average 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 Granted 615,074 70.10 Vested (193,849 ) 69.27 Forfeited (99,260 ) 79.95 Non-vested at September 30, 2016 894,459 70.40 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 Non-vested at September 26, 2014 1,432,031 $ 70.88 Vested (1,362,823 ) 70.88 Forfeited (34,646 ) 70.88 Non-vested at September 25, 2015 34,562 70.88 Vested (9,760 ) 70.88 Forfeited (7,936 ) 70.88 Non-vested at September 30, 2016 16,866 70.88 |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 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 income (loss), net (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 Other comprehensive income (loss), net 0.8 — (39.5 ) (38.7 ) Reclassification from other comprehensive income (loss) (59.4 ) 0.5 11.1 (47.8 ) Balance at September 30, 2016 $ 1.6 $ (5.9 ) $ (81.3 ) $ (85.6 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following summarizes reclassifications out of accumulated other comprehensive income for the 2016 and 2015 fiscal years: Amount Reclassified from Amount Reclassified from September 30, 2016 September 25, 2015 Line Item in the Condensed Consolidated Amortization of unrealized loss on derivatives $ 0.7 $ 0.6 Interest expense Income tax provision (0.2 ) (0.2 ) Provision for income taxes Net of income taxes 0.5 0.4 Amortization of pension and post-retirement benefit plans: Net actuarial loss 11.4 9.4 (1) Prior service credit (2.7 ) (4.6 ) (1) Disposal of discontinued operations 0.8 — Plan settlements 8.1 6.0 (1) Total before tax 17.6 10.8 Income tax provision (6.5 ) (4.1 ) Provision for income taxes Net of income taxes 11.1 6.7 Currency translation (59.4 ) — Total reclassifications for the period $ (47.8 ) $ 7.1 (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. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Purchase Obligations | At September 30, 2016 , such obligations were as follows: Fiscal 2017 $ 147.5 Fiscal 2018 31.6 Fiscal 2019 20.3 Fiscal 2020 14.1 Fiscal 2021 6.7 |
Schedule of Asset Retirement Obligations | |
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 30, 2016 : Operating Leases Capital Leases Fiscal 2017 $ 26.5 $ 1.0 Fiscal 2018 20.1 0.2 Fiscal 2019 19.0 — Fiscal 2020 13.7 — Fiscal 2021 11.5 — Thereafter 44.9 — Total minimum lease payments $ 135.7 1.2 Less: interest portion of payments — Present value of minimum lease payments $ 1.2 |
Financial Instruments and Fai51
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 30, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Debt and equity securities held in rabbi trusts $ 34.6 $ 23.1 $ 11.5 $ — Foreign exchange forward and option contracts $ 0.2 $ 0.2 $ — $ — $ 34.8 $ 23.3 $ 11.5 $ — Liabilities: Deferred compensation liabilities $ 26.8 $ — $ 26.8 $ — Contingent consideration and acquired contingent liabilities 247.8 — — 247.8 Foreign exchange forward and option contracts 1.6 1.6 — — $ 276.2 $ 1.6 $ 26.8 $ 247.8 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 |
Schedule of Reconciliation of Changes in Fair Value of Contingent Consideration | Balance at September 25, 2015 $ 174.6 Acquisition date fair value of contingent consideration 106.9 Acquisition date fair value of acquired contingent consideration 10.6 Payments (55.0 ) Accretion expense 6.3 Fair value adjustment 4.4 Balance at September 30, 2016 $ 247.8 |
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 30, 2016 September 25, 2015 Carrying Value Fair Value Carrying Value Fair Value Variable rate receivable securitization $ 235.0 $ 235.0 $ 153.0 $ 153.0 3.50% notes due April 2018 300.0 299.6 300.0 294.3 4.875% notes due April 2020 700.0 712.4 700.0 684.1 Term loans due March 2021 1,953.5 1,951.8 1,978.5 1,966.5 4.00% term loan due February 2022 7.1 7.1 7.9 7.9 9.50% debentures due May 2022 10.4 12.1 10.4 13.0 5.75% notes due August 2022 884.0 869.3 900.0 876.1 8.00% debentures due March 2023 4.4 4.9 4.4 5.3 4.75% notes due April 2023 600.0 539.5 600.0 539.6 5.625% notes due October 2023 740.0 710.2 750.0 705.2 5.50% notes due April 2025 700.0 663.6 700.0 646.0 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 2016 2015 2014 CuraScript, Inc. 38 % 35 % 7 % McKesson Corporation 12 % 20 % 25 % AmerisourceBergen Corporation 8 % 10 % 15 % Cardinal Health, Inc. 7 % 11 % 18 % 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 30, September 25, McKesson Corporation 30 % 26 % AmerisourceBergen Corporation 15 % 13 % CuraScript, Inc. 14 % 18 % Cardinal Health, Inc. 10 % 13 % The following table shows net sales attributable to products that accounted for 10% or more of the Company's total net sales: Fiscal Year 2016 2015 2014 Acthar 34 % 35 % 7 % Inomax 14 % 6 % — % Acetaminophen products (API) 5 % 7 % 12 % Methylphenidate ER 3 % 5 % 13 % |
Segment and Geographical Data (
Segment and Geographical Data (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Business Segment | Selected information by business segment is as follows: Fiscal Year 2016 2015 2014 Net sales: Specialty Brands $ 2,300.6 $ 1,622.8 $ 413.5 Specialty Generics 1,025.2 1,251.6 1,199.4 Net sales of operating segments (1) 3,325.8 2,874.4 1,612.9 Other (2) 55.0 48.7 37.4 Net sales $ 3,380.8 $ 2,923.1 $ 1,650.3 Operating income: Specialty Brands $ 1,166.2 $ 637.6 $ (68.6 ) Specialty Generics 376.1 594.4 599.4 Segment operating income 1,542.3 1,232.0 530.8 Unallocated amounts: Corporate and allocated expenses (3) (169.8 ) (282.6 ) (227.7 ) Intangible asset amortization (700.1 ) (550.3 ) (154.8 ) Restructuring and related charges, net (4) (38.2 ) (45.3 ) (68.2 ) Non-restructuring impairments (16.9 ) — (27.1 ) Separation costs — — (9.6 ) Operating income $ 617.3 $ 353.8 $ 43.4 Depreciation and amortization (5) : Specialty Brands $ 716.6 $ 559.5 $ 153.3 Specialty Generics 96.8 81.6 78.2 $ 813.4 $ 641.1 $ 231.5 (1) Amounts represent sales to external customers. There were no intersegment sales. (2) Represents net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. Amounts for periods prior to the divestiture represent the reclassification of intercompany sales to third-party sales to conform with the expected presentation of the ongoing supply agreement. (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 2016 2015 2014 Acthar $ 1,160.4 $ 1,037.3 $ 122.9 Inomax 474.3 185.2 — Ofirmev 284.3 263.0 124.4 Therakos immunotherapy 207.6 — — Hemostasis products 42.5 — — Other 131.5 137.3 166.2 Specialty Brands 2,300.6 1,622.8 413.5 Hydrocodone (API) and hydrocodone-containing tablets 146.5 167.2 99.4 Oxycodone (API) and oxycodone-containing tablets 126.2 154.6 155.2 Methylphenidate ER 103.5 136.5 209.6 Other controlled substances 468.1 572.2 584.5 Other 180.9 221.1 150.7 Specialty Generics 1,025.2 1,251.6 1,199.4 Other (1) 55.0 48.7 37.4 Net sales $ 3,380.8 $ 2,923.1 $ 1,650.3 (1) Represents net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. Amounts for periods prior to the divestiture represent the reclassification of intercompany sales to third-party sales to conform with the expected presentation of the ongoing supply agreement. |
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 2016 2015 2014 Net sales (1) : U.S. $ 3,095.4 $ 2,647.0 $ 1,485.0 Europe, Middle East and Africa 211.8 159.0 140.8 Other 73.6 117.1 24.5 $ 3,380.8 $ 2,923.1 $ 1,650.3 Long-lived assets (2) : U.S. $ 742.4 $ 747.8 Europe, Middle East and Africa (3) 61.2 13.4 Other 52.5 44.5 $ 856.1 $ 805.7 (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 $59.3 million , and $10.7 million at the end of fiscal 2016 and 2015, respectively. |
Selected Quarterly Financial 53
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data (Unaudited) | Fiscal 2016 (by quarter) Q1 Q2 Q3 Q4 Net sales $ 811.2 $ 815.8 $ 866.6 $ 887.2 Gross profit 450.9 425.1 488.8 490.2 Income from continuing operations 103.8 98.5 176.7 110.0 Income from discontinued operations 107.3 19.8 22.6 5.0 Net income 211.1 118.3 199.3 115.0 Basic earnings per share from continuing operations (1) $ 0.90 $ 0.89 $ 1.63 $ 1.02 Diluted earnings per share from continuing operations (1) 0.89 0.88 1.62 1.01 Fiscal 2015 (by quarter) Q1 Q2 Q3 Q4 Net sales $ 666.3 $ 709.5 $ 768.5 $ 778.8 Gross profit 355.7 399.7 441.7 425.8 Income from continuing operations 73.6 55.3 34.6 73.1 Income from discontinued operations 19.1 43.5 23.4 2.1 Net income 92.7 98.8 58.0 75.2 Basic earnings per share from continuing operations (1) $ 0.63 $ 0.47 $ 0.30 $ 0.62 Diluted earnings per share from continuing operations (1) 0.63 0.47 0.29 0.62 (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 C54
Condensed Consolidating and Combining Financial Statements (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Condensed Consolidating Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2016 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.3 $ 25.0 $ 255.2 $ — $ 280.5 Accounts receivable, net — — 465.8 — 465.8 Inventories — — 335.6 — 335.6 Deferred income taxes — — — — — Prepaid expenses and other current assets 1.4 0.1 114.4 — 115.9 Current assets held for sale — — 308.8 — 308.8 Intercompany receivable 88.9 473.8 1,081.4 (1,644.1 ) — Total current assets 90.6 498.9 2,561.2 (1,644.1 ) 1,506.6 Property, plant and equipment, net — — 844.0 — 844.0 Goodwill — — 3,705.3 — 3,705.3 Intangible assets, net — — 9,182.3 — 9,182.3 Long-term assets held for sale — — — — — Investment in subsidiaries 5,657.8 20,168.4 11,020.0 (36,846.2 ) — Intercompany loan receivable 143.5 — 3,159.4 (3,302.9 ) — Other assets — — 260.5 — 260.5 Total Assets $ 5,891.9 $ 20,667.3 $ 30,732.7 $ (41,793.2 ) $ 15,498.7 — Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 19.8 $ 236.5 $ — $ 256.3 Accounts payable 0.2 — 109.9 — 110.1 Accrued payroll and payroll-related costs — — 116.0 — 116.0 Accrued interest — 79.3 1.3 — 80.6 Accrued and other current liabilities 2.2 7.5 541.2 — 550.9 Current liabilities held for sale — — 120.8 — 120.8 Intercompany payable 618.8 462.6 562.7 (1,644.1 ) — Total current liabilities 621.2 569.2 1,688.4 (1,644.1 ) 1,234.7 Long-term debt — 5,767.8 20.9 — 5,788.7 Pension and postretirement benefits — — 144.9 — 144.9 Environmental liabilities — — 73.4 — 73.4 Deferred income taxes — — 2,581.4 — 2,581.4 Other income tax liabilities — — 67.7 — 67.7 Long-term liabilities held for sale — — — — — Intercompany loans payable — 3,302.9 — (3,302.9 ) — Other liabilities — 7.4 329.8 — 337.2 Total liabilities 621.2 9,647.3 4,906.5 (4,947.0 ) 10,228.0 Shareholders' equity 5,270.7 11,020.0 25,826.2 (36,846.2 ) 5,270.7 Total Liabilities and Shareholders' Equity $ 5,891.9 $ 20,667.3 $ 30,732.7 $ (41,793.2 ) $ 15,498.7 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 — — 489.6 — 489.6 Inventories — — 262.1 — 262.1 Deferred income taxes — — 139.2 — 139.2 Prepaid expenses and other current assets 1.3 0.2 192.9 — 194.4 Current assets held for sale — — 394.9 — 394.9 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 — — 793.0 — 793.0 Goodwill — — 3,649.4 — 3,649.4 Intangible assets, net — — 9,666.3 — 9,666.3 Long-term assets held for sale — — 223.6 — 223.6 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 — 0.1 225.6 — 225.7 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 $ 2.0 $ — $ 22.0 Accounts payable — 0.2 116.6 — 116.8 Accrued payroll and payroll-related costs 0.1 — 94.9 — 95.0 Accrued interest — 77.1 3.1 — 80.2 Accrued and other current liabilities 1.8 0.3 484.0 — 486.1 Current liabilities held for sale — — 129.3 — 129.3 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 — — 114.2 — 114.2 Environmental liabilities — — 73.3 — 73.3 Deferred income taxes — — 3,117.5 — 3,117.5 Other income tax liabilities — — 121.3 — 121.3 Long-term liabilities held for sale — — 53.9 — 53.9 Intercompany loans payable — 2,672.6 — (2,672.6 ) — Other liabilities — — 209.0 — 209.0 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 |
Schedule of Condensed Consolidating and Combining Statements of Comprehensive Income | MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 30, 2016 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 3,380.8 $ — $ 3,380.8 Cost of sales — — 1,525.8 — 1,525.8 Gross profit — — 1,855.0 — 1,855.0 Selling, general and administrative expenses 51.3 0.8 873.2 — 925.3 Research and development expenses — — 262.2 — 262.2 Restructuring charges, net — — 33.3 — 33.3 Non-restructuring impairment charges — — 16.9 — 16.9 Separation costs — — — — — Gains on divestiture and license — — — — — Operating income (loss) (51.3 ) (0.8 ) 669.4 — 617.3 — Interest expense (230.3 ) (327.0 ) (82.4 ) 255.1 (384.6 ) Interest income — 0.5 255.9 (255.1 ) 1.3 Other income (expense), net 90.0 1.7 (92.3 ) — (0.6 ) Intercompany interest and fees (16.1 ) — 16.1 — — Equity in net income of subsidiaries 820.8 1,327.2 1,057.9 (3,205.9 ) — Income from continuing operations before income taxes 613.1 1,001.6 1,824.6 (3,205.9 ) 233.4 Benefit from income taxes (30.6 ) (18.1 ) (206.9 ) — (255.6 ) Income from continuing operations 643.7 1,019.7 2,031.5 (3,205.9 ) 489.0 Income from discontinued operations, net of income taxes — 38.2 116.5 — 154.7 Net income 643.7 1,057.9 2,148.0 (3,205.9 ) 643.7 Other comprehensive loss, net of tax (86.5 ) (86.5 ) (173.5 ) 260.0 (86.5 ) Comprehensive income $ 557.2 $ 971.4 $ 1,974.5 $ (2,945.9 ) $ 557.2 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 $ — $ — $ 2,923.1 $ — $ 2,923.1 Cost of sales — — 1,300.2 — 1,300.2 Gross profit — — 1,622.9 — 1,622.9 Selling, general and administrative expenses 116.3 15.7 891.8 — 1,023.8 Research and development expenses — — 203.3 — 203.3 Restructuring charges, net 9.8 — 35.2 — 45.0 Non-restructuring impairments — — — — — Separation costs — — — — — Gains on divestiture and license — — (3.0 ) — (3.0 ) Operating income (loss) (126.1 ) (15.7 ) 495.6 — 353.8 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 309.7 250.5 624.5 (1,077.4 ) 107.3 Benefit from income taxes (15.9 ) — (113.4 ) — (129.3 ) Income from continuing operations 325.6 250.5 737.9 (1,077.4 ) 236.6 Income (loss) from discontinued operations, net of income taxes (0.9 ) — 89.0 — 88.1 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 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME Fiscal year ended September 26, 2014 (in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,650.3 $ — $ 1,650.3 Cost of sales — — 765.7 — 765.7 Gross profit — — 884.6 — 884.6 Selling, general and administrative expenses 37.7 7.3 566.0 — 611.0 Research and development expenses — — 140.5 — 140.5 Restructuring charges, net 35.3 — 32.7 — 68.0 Non-restructuring impairments — — 27.1 — 27.1 Separation costs 2.5 — 7.1 — 9.6 Gains on divestiture and license — — (15.0 ) — (15.0 ) Operating income (loss) (75.5 ) (7.3 ) 126.2 — 43.4 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 ) (187.6 ) 736.2 (34.6 ) benefit from income taxes — — (12.6 ) — (12.6 ) Loss from continuing operations (318.4 ) (264.8 ) (175.0 ) 736.2 (22.0 ) Loss from discontinued operations, net of income taxes (0.9 ) — (296.4 ) — (297.3 ) 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 ) |
Schedule of Condensed Consolidating and Combining Statements of Cash Flows | MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Fiscal year ended September 30, 2016 (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 $ 17.9 $ (47.4 ) $ 1,214.1 $ — $ 1,184.6 Cash Flows From Investing Activities: Capital expenditures — — (182.9 ) — (182.9 ) Acquisitions and intangibles, net of cash acquired — — (245.4 ) — (245.4 ) Proceeds from disposal of discontinued operations, net of cash — 234.0 33.0 — 267.0 Intercompany loan investment — (175.2 ) (1,714.5 ) 1,889.7 — Investment in subsidiary — (861.2 ) — 861.2 — Proceeds from sale of subsidiary 3.4 — — (3.4 ) — Acquisition of subsidiary — — (3.4 ) 3.4 — Restricted cash — — 47.3 — 47.3 Other — — 6.0 — 6.0 Net cash used in investing activities 3.4 (802.4 ) (2,059.9 ) 2,750.9 (108.0 ) Cash Flows From Financing Activities: Issuance of external debt — — 98.3 — 98.3 Repayment of external debt and capital leases — (549.2 ) (19.4 ) — (568.6 ) Excess tax benefit from share-based compensation — — — — — Debt financing costs — — (0.1 ) — (0.1 ) Proceeds from exercise of share options 14.0 — — — 14.0 Intercompany loan borrowings 617.8 1,271.9 — (1,889.7 ) — Capital contribution — — 861.2 (861.2 ) — Repurchase of shares (652.9 ) — — — (652.9 ) Other — — (53.0 ) — (53.0 ) Net cash provided by financing activities (21.1 ) 722.7 887.0 (2,750.9 ) (1,162.3 ) Effect of currency rate changes on cash — — 0.3 — 0.3 Net (decrease) increase in cash and cash equivalents 0.2 (127.1 ) 41.5 — (85.4 ) Cash and cash equivalents at beginning of period 0.1 152.1 213.7 — 365.9 Cash and cash equivalents at end of period 0.3 25.0 255.2 — 280.5 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 increase (decrease) 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 CONSOLIDATING 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 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 |
Background and Basis of Prese55
Background and Basis of Presentation (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 25, 2015USD ($)$ / sharesshares | Sep. 26, 2014USD ($) | Sep. 30, 2016$ / sharesshares | Jun. 28, 2013 | |
Schedule of Basis of Presentation [Line Items] | ||||
Distribution ratio | 0.125 | 0.125 | ||
Stock outstanding after distribution (in shares) | shares | 116,283,149 | 107,167,693 | ||
Ordinary shares, par value (in usd per share) | $ / shares | $ 0.20 | $ 0.20 | ||
Operating Expense [Member] | ||||
Schedule of Basis of Presentation [Line Items] | ||||
Prior Period Reclassification Adjustment | $ | $ 56.4 | $ 22.5 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Schedule of Significant Accounting Policies [Line Items] | |||
Shipping costs | $ 12.4 | $ 11.6 | $ 11.8 |
Foreign Currency Transaction Gain (Loss), before Tax | (3.6) | 31.6 | 6 |
Foreign currency transactions gain (loss), derivative instruments | $ 0.2 | $ (24.8) | $ (5.8) |
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 St57
Recently Issued Accounting Standards Narrative (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 122.6 |
Discontinued Operations and D58
Discontinued Operations and Divestitures (Income (loss) from Discontinued Operations) (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Domestic | [1] | $ 300,000 | $ 200,000 | $ 22,300,000 |
Discontinued Operation, Tax Effect of Discontinued Operation | 43,500,000 | 47,900,000 | (32,200,000) | |
Benefit from income taxes | [1] | (255,600,000) | (129,300,000) | (12,600,000) |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | [2],[3] | (249,300,000) | (152,900,000) | (14,200,000) |
International | [1] | 120,500,000 | 67,300,000 | 18,900,000 |
Domestic | [1] | 700,000 | (800,000) | (41,900,000) |
International Deferred | [1] | 377,100,000 | 196,000,000 | 11,900,000 |
Contrast Media and Delivery Systems | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other Tax Expense (Benefit) | 2,000,000 | |||
Domestic | 0 | 10,400,000 | ||
Net sales | 61,000,000 | 413,800,000 | 495,800,000 | |
Cost of sales | 46,900,000 | 306,400,000 | 352,900,000 | |
Selling, general and administrative | 20,300,000 | 97,500,000 | 97,100,000 | |
Restructuring charges, net | 0 | 300,000 | 47,200,000 | |
Non-restructuring impairment charges | 0 | 0 | 204,000,000 | |
Other | 1,200,000 | 4,700,000 | 4,100,000 | |
(Loss) income from discontinued operations | (7,400,000) | 4,900,000 | (209,500,000) | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 95,300,000 | 0 | 0 | |
Discontinued Operation, Tax Effect of Discontinued Operation | (2,100,000) | |||
Benefit from income taxes | 36,200,000 | |||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 87,900,000 | 4,900,000 | (209,500,000) | |
Income tax expense (benefit) | (2,500,000) | 10,800,000 | (34,700,000) | |
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | (400,000) | |||
Income (loss) from discontinued operations net of tax | 90,400,000 | (5,900,000) | (174,800,000) | |
Goodwill, Impairment Loss | 100,200,000 | |||
Increase (Decrease) in Accrued Liabilities | 900,000 | |||
International | 900,000 | 14,900,000 | (6,600,000) | |
International Deferred | 3,400,000 | 4,400,000 | 3,000,000 | |
Nuclear Imaging | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other Tax Expense (Benefit) | 900,000 | 400,000 | 700,000 | |
Domestic | 100,000 | 100,000 | 18,600,000 | |
Net sales | 418,600,000 | 423,800,000 | 431,700,000 | |
Cost of sales | 216,600,000 | 193,100,000 | 256,100,000 | |
Selling, general and administrative | 83,700,000 | 89,600,000 | 111,500,000 | |
Restructuring charges, net | 2,300,000 | (4,600,000) | 13,400,000 | |
Non-restructuring impairment charges | 0 | 0 | 124,500,000 | |
Other | 5,700,000 | 37,700,000 | 45,500,000 | |
(Loss) income from discontinued operations | 110,300,000 | 108,000,000 | (119,300,000) | |
Income tax expense (benefit) | 49,000,000 | 36,400,000 | 2,500,000 | |
Income (loss) from discontinued operations net of tax | 61,300,000 | 71,600,000 | (121,800,000) | |
Goodwill, Impairment Loss | 119,500,000 | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | [2],[3] | 11,700,000 | 14,300,000 | 3,100,000 |
Increase (Decrease) in Accrued Liabilities | 14,400,000 | 1,300,000 | ||
International | 52,500,000 | 27,800,000 | 1,000,000 | |
Domestic | 7,800,000 | |||
International Deferred | $ (3,600,000) | $ (8,600,000) | $ (7,400,000) | |
[1] | Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. | |||
[2] | Due to the December 31, 2013 Research Credit 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 $3.6 million of credit related to the period January 1, 2014 through September 26, 2014. | |||
[3] | Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. |
Discontinued Operations and D59
Discontinued Operations and Divestitures (Assets and Liabilities Held-for-Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Nuclear Imaging | Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | $ 53.7 | $ 58.9 |
Inventories | 19 | 19.7 |
Property, plant and equipment, net | 189 | 198.3 |
Other current and non-current assets | 47.1 | 41.7 |
Total assets classified as held for sale in the balance sheet | 308.8 | 318.6 |
Accounts payable | 17.7 | 16.2 |
Other current and non-current liabilities | 103.1 | 94.2 |
Total liabilities classified as held for sale in the balance sheet | 120.8 | 110.4 |
Contrast Media and Delivery Systems | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Property, plant and equipment, net | 0 | |
Contrast Media and Delivery Systems | Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 0 | 68.5 |
Inventories | 0 | 86.3 |
Property, plant and equipment, net | 60.3 | |
Intangible assets, net | 0 | 27.7 |
Other current and non-current assets | 0 | 57.1 |
Total assets classified as held for sale in the balance sheet | 0 | 299.9 |
Accounts payable | 0 | 22 |
Other current and non-current liabilities | 0 | 50.8 |
Total liabilities classified as held for sale in the balance sheet | $ 0 | $ 72.8 |
Discontinued Operations and D60
Discontinued Operations and Divestitures, Significant Cash and Non-Cash Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Contrast Media and Delivery Systems | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation | $ 0 | $ 15.5 | $ 18.9 |
Amortization | 0 | 2.3 | 7.5 |
Capital expenditures | 1.6 | 9.5 | 12.3 |
Non-cash impairment charges | 0 | 0 | 204 |
Nuclear Imaging | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation | 20.9 | 13.1 | 17.9 |
Amortization | 9.7 | 7.6 | 8.1 |
Capital expenditures | 0 | 0 | 124.5 |
Non-cash impairment charges | $ 0 | $ 0 | $ 124.5 |
Discontinued Operations and D61
Discontinued Operations and Divestitures (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Sep. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Non-restructuring impairment charges | $ 16,900,000 | $ 0 | $ 27,100,000 | ||||||||||
Provision for (benefit from) income taxes | [1] | 255,600,000 | 129,300,000 | 12,600,000 | |||||||||
Tax (benefit) expense on income (loss) from discontinued operations | 43,500,000 | 47,900,000 | (32,200,000) | ||||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 19,000,000 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ 5,000,000 | $ 22,600,000 | $ 19,800,000 | $ 107,300,000 | $ 2,100,000 | $ 23,400,000 | $ 43,500,000 | $ 19,100,000 | 154,700,000 | 88,100,000 | (297,300,000) | ||
Gain on Divestiture | 0 | 3,000,000 | 15,000,000 | ||||||||||
International | [1] | 120,500,000 | 67,300,000 | 18,900,000 | |||||||||
Deferred Foreign Income Tax Expense (Benefit) | [1] | (377,100,000) | (196,000,000) | (11,900,000) | |||||||||
Deferred Income Tax Expense (Benefit) | [1] | 376,400,000 | 196,800,000 | 53,800,000 | |||||||||
Domestic | [1] | 300,000 | 200,000 | 22,300,000 | |||||||||
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) | (2,500,000) | 10,800,000 | (34,700,000) | ||||||||||
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) | ||||||||||||
Tax (benefit) expense on income (loss) from discontinued operations | (2,100,000) | ||||||||||||
Valuation allowances, nonrecurring | 2,500,000 | ||||||||||||
Other Tax Expense (Benefit) | 2,000,000 | ||||||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 3,000,000 | ||||||||||||
Increase (Decrease) in Accrued Liabilities | 900,000 | ||||||||||||
International | 900,000 | 14,900,000 | (6,600,000) | ||||||||||
Deferred Foreign Income Tax Expense (Benefit) | (3,400,000) | (4,400,000) | (3,000,000) | ||||||||||
Deferred Income Tax Expense (Benefit) | (35,600,000) | ||||||||||||
Domestic | 0 | 10,400,000 | |||||||||||
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 | $ 3,000,000 | (100,000) | (700,000) | ||||||||||
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 2016 and 2015, and U.S. federal and state in fiscal 2014. |
Acquisitions and License Agre62
Acquisitions and License Agreements (Narrative) (Details) $ / shares in Units, $ in Millions | Aug. 31, 2016USD ($) | Feb. 01, 2016USD ($) | Sep. 25, 2015USD ($) | Apr. 16, 2015USD ($) | Aug. 14, 2014USD ($)$ / sharesshares | Apr. 05, 2014shares | Mar. 19, 2014USD ($) | Jan. 31, 2014USD ($) | Sep. 30, 2016USD ($) | Jun. 24, 2016USD ($) | Mar. 25, 2016USD ($) | Dec. 25, 2015USD ($) | Sep. 25, 2015USD ($) | Jun. 26, 2015USD ($) | Mar. 27, 2015USD ($) | Dec. 26, 2014USD ($) | Jun. 26, 2015pharmacy_indications | Sep. 30, 2016USD ($) | Sep. 25, 2015USD ($) | Sep. 26, 2014USD ($) | Sep. 27, 2013USD ($) | Aug. 31, 2014USD ($) | Jul. 28, 2014USD ($) | Oct. 01, 2012USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 245.4 | $ 2,154.7 | $ 2,793.8 | |||||||||||||||||||||
Net sales | $ 887.2 | $ 866.6 | $ 815.8 | $ 811.2 | $ 778.8 | $ 768.5 | $ 709.5 | $ 666.3 | 3,380.8 | 2,923.1 | 1,650.3 | |||||||||||||
Non-cash impairment charges | 16.9 | 0 | 381.2 | |||||||||||||||||||||
Nuvo | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Non-cash impairment charges | 11.1 | |||||||||||||||||||||||
Stratatech [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Contingent consideration | $ 54.9 | |||||||||||||||||||||||
Business Combination, Consideration Transferred, Other | 76 | |||||||||||||||||||||||
Total consideration | 130.9 | |||||||||||||||||||||||
Total Debt | 1 | |||||||||||||||||||||||
Contingent consideration, potential maximum | $ 121 | |||||||||||||||||||||||
Hemostasis Products | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Contingent consideration | $ 52 | |||||||||||||||||||||||
Business Combination, Consideration Transferred, Other | 173.5 | |||||||||||||||||||||||
Total consideration | 225.5 | |||||||||||||||||||||||
Total Debt | 0 | |||||||||||||||||||||||
Contingent consideration, potential maximum | 395 | |||||||||||||||||||||||
Therakos | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Contingent consideration | $ 0 | 0 | 0 | |||||||||||||||||||||
Business Combination, Consideration Transferred, Other | 1,300 | |||||||||||||||||||||||
Total consideration | 1,019.1 | |||||||||||||||||||||||
Cash used to acquire business | 1,000 | |||||||||||||||||||||||
Total Debt | 344.8 | 344.8 | 344.8 | |||||||||||||||||||||
Net sales | 207.6 | 0 | 0 | |||||||||||||||||||||
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 | |||||||||||||||||||||||
Total Debt | 1,121 | |||||||||||||||||||||||
Long Term Debt Assumed | 1,100 | |||||||||||||||||||||||
Net sales | 491.5 | 191.9 | 0 | |||||||||||||||||||||
Questcor Pharmaceuticals, Inc. | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Contingent consideration | $ 0 | |||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 123.4 | 123.4 | $ 195.4 | |||||||||||||||||||||
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 | |||||||||||||||||||||||
Total Debt | $ 0 | |||||||||||||||||||||||
Contingent consideration, potential maximum | 165 | 165 | ||||||||||||||||||||||
Net sales | 1,218.4 | 1,125.9 | 129.2 | |||||||||||||||||||||
Cadence Pharmaceuticals, Inc. | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Contingent consideration | $ 0 | |||||||||||||||||||||||
Total consideration | 1,329.2 | |||||||||||||||||||||||
Total Debt | 30 | |||||||||||||||||||||||
Net sales | 284.3 | 263 | 124.4 | |||||||||||||||||||||
CNS Therapeutics, Inc. | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Contingent consideration | $ 6.9 | |||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | $ 0.9 | 0.9 | ||||||||||||||||||||||
Contingent consideration, potential maximum | $ 9 | |||||||||||||||||||||||
Raplixa [Member] | Hemostasis Products | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Contingent consideration | 52 | |||||||||||||||||||||||
PreveLeak [Member] | Hemostasis Products | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | $ 10.6 | |||||||||||||||||||||||
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 | 46.3 | 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 | 0.9 | 3.2 | 22 | |||||||||||||||||||||
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 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Debentures | Questcor Pharmaceuticals, Inc. | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Long term debt | 900 | |||||||||||||||||||||||
Revolving Credit Facility | Therakos | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Borrowings, outstanding | $ 500 | $ 500 | $ 500 | |||||||||||||||||||||
Revolving Credit Facility | Ikaria | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Borrowings, outstanding | $ 240 | |||||||||||||||||||||||
Secured Debt | Questcor Pharmaceuticals, Inc. | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Long term debt | 700 | |||||||||||||||||||||||
Variable rate receivable securitization | Questcor Pharmaceuticals, Inc. | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Long term debt | $ 150 | |||||||||||||||||||||||
Variable rate receivable securitization | Secured Debt | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Debt instrument, face amount | $ 160 | |||||||||||||||||||||||
Interest rate during period | 1.33% | |||||||||||||||||||||||
Revolving Credit Facility | 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 | 3.43% | |||||||||||||||||||||||
Specialty Pharmaceuticals | Cadence Pharmaceuticals, Inc. | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Total consideration | $ 1,300 |
Acquisitions and License Agre63
Acquisitions and License Agreements (Schedule of Fair Value of Identifiable Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Aug. 31, 2016 | Feb. 01, 2016 | Sep. 25, 2015 | Apr. 16, 2015 | 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) | $ 3,705.3 | $ 3,649.4 | |||||||
Stratatech [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Receivables | $ 1.3 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||||||||
Cash | 0.2 | ||||||||
Inventory | 0 | ||||||||
Intangible assets | 99.8 | ||||||||
Goodwill (non-tax deductible) | 57.3 | ||||||||
Other assets, current and non-current | [1] | 3.2 | |||||||
Total assets acquired | 160.5 | ||||||||
Current liabilities | 4.3 | ||||||||
Unpaid purchase consideration (current) | 0 | ||||||||
Other liabilities (non-current) | 0 | ||||||||
Deferred tax liabilities, net (non-current) | 24.3 | ||||||||
Contingent consideration (non-current) | 54.9 | ||||||||
Total Debt | 1 | ||||||||
Total liabilities assumed | 84.5 | ||||||||
Net assets acquired | $ 76 | ||||||||
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) | 429.9 | ||||||||
Other assets, current and non-current | [1] | 40.2 | |||||||
Total assets acquired | 1,704.9 | ||||||||
Current liabilities | 24.7 | ||||||||
Unpaid purchase consideration (current) | 0 | ||||||||
Other liabilities (non-current) | 0.6 | ||||||||
Deferred tax liabilities, net (non-current) | 315.7 | ||||||||
Contingent consideration (non-current) | 0 | ||||||||
Total Debt | 344.8 | ||||||||
Total liabilities assumed | 685.8 | ||||||||
Net assets acquired | $ 1,019.1 | ||||||||
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) | 795 | ||||||||
Other assets, current and non-current | [1] | 174.3 | |||||||
Total assets acquired | 3,043.9 | ||||||||
Current liabilities | 33 | ||||||||
Unpaid purchase consideration (current) | 0 | ||||||||
Other liabilities (non-current) | 15.8 | ||||||||
Deferred tax liabilities, net (non-current) | 620.5 | ||||||||
Contingent consideration (non-current) | 0 | ||||||||
Total Debt | 1,121 | ||||||||
Total liabilities assumed | 1,790.3 | ||||||||
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 | [1] | 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 | [1] | 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 | ||||||||
Hemostasis Products | |||||||||
Business Acquisition [Line Items] | |||||||||
Receivables | $ 0 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||||||||
Cash | 3.3 | ||||||||
Inventory | 94.6 | ||||||||
Intangible assets | 132.7 | ||||||||
Goodwill (non-tax deductible) | 3.3 | ||||||||
Other assets, current and non-current | [1] | 7.9 | |||||||
Total assets acquired | 241.8 | ||||||||
Current liabilities | 3.6 | ||||||||
Unpaid purchase consideration (current) | 0 | ||||||||
Other liabilities (non-current) | 10.6 | ||||||||
Deferred tax liabilities, net (non-current) | 2.1 | ||||||||
Contingent consideration (non-current) | 52 | ||||||||
Total Debt | 0 | ||||||||
Total liabilities assumed | 68.3 | ||||||||
Net assets acquired | $ 173.5 | ||||||||
CNS Therapeutics, Inc. | |||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||||||||
Contingent consideration (non-current) | $ 6.9 | ||||||||
[1] | This amount includes $1.3 million, zero, $22.0 million, $73.8 million, $87.3 million, and $14.7 million of accounts receivable for the Stratatech Acquisition, Hemostasis Acquisition, Therakos Acquisition, Ikaria Acquisition, Questcor Acquisition and Cadence Acquisition, respectively, which is also the gross contractual value. |
Acquisitions and License Agre64
Acquisitions and License Agreements (Schedule of Reconciliation of Total Consideration) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Feb. 01, 2016 | 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 | $ 977.8 | ||||||
Plus: cash assumed in acquisition | 41.3 | ||||||
Total consideration | 1,019.1 | ||||||
Less: unpaid purchase consideration | 0 | ||||||
Less: non-cash contingent consideration | 0 | ||||||
Net assets acquired | $ 1,019.1 | ||||||
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: non-cash 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: non-cash 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: non-cash contingent consideration | 0 | ||||||
Net assets acquired | $ 1,329.2 | ||||||
Stratatech [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration, net of cash | $ 130.7 | ||||||
Plus: cash assumed in acquisition | 0.2 | ||||||
Total consideration | 130.9 | ||||||
Less: unpaid purchase consideration | 0 | ||||||
Less: non-cash contingent consideration | (54.9) | ||||||
Net assets acquired | $ 76 | ||||||
Hemostasis Products | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration, net of cash | $ 222.2 | ||||||
Plus: cash assumed in acquisition | 3.3 | ||||||
Total consideration | 225.5 | ||||||
Less: unpaid purchase consideration | 0 | ||||||
Less: non-cash contingent consideration | (52) | ||||||
Net assets acquired | $ 173.5 | ||||||
CNS Therapeutics, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Less: non-cash contingent consideration | $ (6.9) |
Acquisitions and License Agre65
Acquisitions and License Agreements (Schedule of Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Feb. 01, 2016 | Sep. 25, 2015 | Apr. 16, 2015 | Aug. 14, 2014 | Mar. 19, 2014 |
Hemostasis Products | ||||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | ||||||
Net assets acquired | $ 173.5 | |||||
Intangible assets | $ 132.7 | |||||
Therakos | ||||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | ||||||
Net assets acquired | $ 1,019.1 | |||||
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] | ||||||
Indefinite lived 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 | |||||
Stratatech [Member] | ||||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | ||||||
Net assets acquired | $ 76 | |||||
Intangible assets | $ 99.8 | |||||
StrataGraft [Member] | Stratatech [Member] | In-process research and development | ||||||
Intangible Assets Acquired as Part of Business Combination [Line Items] | ||||||
Cash flow discount rate | 16.50% | |||||
Raplixa [Member] | Hemostasis Products | 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 | $ 73 | |||||
Cash flow discount rate | 17.00% | |||||
Therakos Immunotherapy | 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% | |||||
Recothrom [Member] | Hemostasis Products | 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 | $ 42.7 | |||||
Cash flow discount rate | 16.00% | |||||
PreveLeak [Member] | Hemostasis Products | 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 | $ 17 | |||||
Cash flow discount rate | 17.00% |
Acquisitions and License Agre66
Acquisitions and License Agreements (Schedule of Financial Results and Acquisition Costs of Acquirees) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Operating Income [Abstract] | |||||||||||
Operating income | $ 617.3 | $ 353.8 | $ 43.4 | ||||||||
Net Sales [Abstract] | |||||||||||
Net sales | $ 887.2 | $ 866.6 | $ 815.8 | $ 811.2 | $ 778.8 | $ 768.5 | $ 709.5 | $ 666.3 | 3,380.8 | 2,923.1 | 1,650.3 |
Stratatech [Member] | |||||||||||
Net Sales [Abstract] | |||||||||||
Acquisition Related Costs | 3.7 | 0 | 0 | ||||||||
Ikaria | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | 201.1 | 47.1 | 0 | ||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 491.5 | 191.9 | 0 | ||||||||
Acquisition Related Costs | 0.2 | 30.9 | 0 | ||||||||
Questcor Pharmaceuticals, Inc. | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | 371.5 | 223.3 | 17.4 | ||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 1,218.4 | 1,125.9 | 129.2 | ||||||||
Acquisition Related Costs | 0 | 0 | 47.5 | ||||||||
Cadence Pharmaceuticals, Inc. | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | (84.5) | (97.3) | (66.9) | ||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 284.3 | 263 | 124.4 | ||||||||
Acquisition Related Costs | 0 | 0 | 17.6 | ||||||||
Therakos | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | 12.5 | 0 | 0 | ||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 207.6 | 0 | 0 | ||||||||
Acquisition Related Costs | 0.3 | 22.5 | 0 | ||||||||
Hemostasis Products | |||||||||||
Net Sales [Abstract] | |||||||||||
Acquisition Related Costs | 2.7 | 0 | 0 | ||||||||
Total Acquisitions | |||||||||||
Operating Income [Abstract] | |||||||||||
Operating income | 500.6 | 173.1 | (49.5) | ||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 2,201.8 | 1,580.8 | 253.6 | ||||||||
Acquisition Related Costs | $ 6.9 | $ 53.4 | $ 65.1 |
Acquisitions and License Agre67
Acquisitions and License Agreements (Schedule of Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
Business Acquisition [Line Items] | ||
Net sales | $ 3,380.8 | $ 3,332 |
Income from continuing operations | $ 499.4 | $ 288.9 |
Basic earnings per share from continuing operations | $ 4.52 | $ 2.49 |
Diluted earnings from per share continuing operations | $ 4.48 | $ 2.47 |
Acquisitions and License Agre68
Acquisitions and License Agreements (Schedule of Intangible Asset Amortization by Acquiree) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | $ 700.1 | $ 550.3 | $ 154.8 |
Therakos | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 78 | 0 | 0 |
Total Acquisitions | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 665.7 | 521 | 120.8 |
Ikaria | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 124.5 | 57.1 | 0 |
Questcor Pharmaceuticals, Inc. | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 300.7 | 301.4 | 34.9 |
Cadence Pharmaceuticals, Inc. | |||
Schedule of Intangible Asset Amortization by Acquiree [Line Items] | |||
Intangible asset amortization | 162.5 | 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 | $ 24.3 | $ 44.1 | $ 25.7 |
Restructuring and Related Cha69
Restructuring and Related Charges (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 30, 2016 | |
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] | |||
Mallinckrodt program expected cost range | $ 100 | ||
2013 Mallinckrodt program | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Mallinckrodt program expected cost range | 125 | ||
2016 Mallinckrodt Program | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Mallinckrodt program expected cost range | 100 | ||
2016 Mallinckrodt Program | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Mallinckrodt program expected cost range | $ 125 | ||
Consulting costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 8.5 |
Restructuring and Related Cha70
Restructuring and Related Charges (Schedule of Restructuring and Related Charges by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | $ 38.2 | $ 45.3 | $ 68.2 |
Less: accelerated depreciation | (4.9) | (0.3) | (0.2) |
Restructuring charges, net | 33.3 | 45 | 68 |
Specialty Brands [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | 23.3 | 36.5 | 57 |
Specialty Generics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | 3.4 | 4.5 | 9.8 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | $ 11.5 | $ 4.3 | $ 1.4 |
Restructuring and Related Cha71
Restructuring and Related Charges (Schedule of Net Restructuring and Related Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | $ (38.2) | $ (45.3) | $ (68.2) |
Less: non-cash charges, including impairments and accelerated share based compensation expense | (4.9) | (10.1) | (37.7) |
Total charges expected to be settled in cash | 33.3 | 35.2 | 30.5 |
2016 Mallinckrodt Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | (8.3) | 0 | 0 |
2013 Mallinckrodt program | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | (26.2) | (12) | (13.6) |
Acquisition programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | (3.7) | (33.6) | (56.4) |
Other programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and related charges | $ 0 | $ (0.3) | $ (1.8) |
Restructuring and Related Cha72
Restructuring and Related Charges (Schedule of Restructuring Reserves by Type of Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 18 | $ 34.9 | $ 25.5 | |
Charges | 36 | 37 | 43.5 | |
Changes in estimate from continuing operations | (2.7) | (1.8) | (13) | |
Cash payments | (33.7) | (44.3) | (55) | |
Reclassifications | [1] | (1.3) | (3) | (2.3) |
Currency translation | (0.6) | (1.1) | ||
Ending Balance | 18.5 | 18 | 34.9 | |
Discontinued Operations, Held-for-sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges, discontinued operations | 2.5 | 4.7 | 40.1 | |
Changes in estimate, discontinued operations | (0.3) | (8.9) | (2.8) | |
Acquisition programs | Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 10 | 7.9 | 0 | |
Charges | 5 | 25.3 | 22.9 | |
Changes in estimate from continuing operations | (1.3) | (1.5) | (1.6) | |
Cash payments | (13.2) | (21.7) | (13.4) | |
Reclassifications | [1] | 0 | 0 | 0 |
Currency translation | 0 | 0 | ||
Ending Balance | 0.5 | 10 | 7.9 | |
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 | 0.4 | 10.6 | |
Charges | 0 | 0 | 1.4 | |
Changes in estimate from continuing operations | 0 | (0.3) | (4.1) | |
Cash payments | 0 | (0.1) | (6.8) | |
Reclassifications | [1] | 0 | 0 | (1) |
Currency translation | 0 | (0.1) | ||
Ending Balance | 0 | 0 | 0.4 | |
Other programs | Discontinued Operations, Held-for-sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges, discontinued operations | 0 | 0 | 1.1 | |
Changes in estimate, discontinued operations | 0 | 0 | (0.7) | |
2016 Mallinckrodt Program | Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 0 | 0 | |
Charges | 6.4 | 0 | 0 | |
Changes in estimate from continuing operations | 0 | 0 | 0 | |
Cash payments | (0.2) | 0 | 0 | |
Reclassifications | [1] | 0 | 0 | 0 |
Currency translation | 0 | 0 | ||
Ending Balance | 6.2 | 0 | 0 | |
2016 Mallinckrodt Program | Discontinued Operations, Held-for-sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges, discontinued operations | 0 | 0 | 0 | |
Changes in estimate, discontinued operations | 0 | 0 | 0 | |
2013 Mallinckrodt program | Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 8 | 26.6 | 14.9 | |
Charges | 24.6 | 11.7 | 19.2 | |
Changes in estimate from continuing operations | (1.4) | 0 | (7.3) | |
Cash payments | (20.3) | (22.5) | (34.8) | |
Reclassifications | [1] | (1.3) | (3) | (1.3) |
Currency translation | (0.6) | (1) | ||
Ending Balance | 11.8 | 8 | 26.6 | |
2013 Mallinckrodt program | Discontinued Operations, Held-for-sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges, discontinued operations | 2.5 | 4.7 | 39 | |
Changes in estimate, discontinued operations | $ (0.3) | $ (8.9) | $ (2.1) | |
[1] | Represents the reclassification of pension and other postretirement benefits from restructuring reserves to pension and postretirement obligations. |
Restructuring and Related Cha73
Restructuring and Related Charges (Schedule of Restructuring Charges Incurred Cumulative to Date) (Details) $ in Millions | Sep. 30, 2016USD ($) |
2013 Mallinckrodt program | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | $ 125.4 |
2013 Mallinckrodt program | Specialty Brands [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 18.8 |
2013 Mallinckrodt program | Specialty Generics [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 18.3 |
2013 Mallinckrodt program | Nuclear Imaging | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 69.9 |
2013 Mallinckrodt program | Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 18.4 |
2016 Mallinckrodt Program | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 8.3 |
2016 Mallinckrodt Program | Specialty Brands [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 4.7 |
2016 Mallinckrodt Program | Specialty Generics [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 0.5 |
2016 Mallinckrodt Program | Nuclear Imaging | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | 0 |
2016 Mallinckrodt Program | Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred cumulative to date | $ 3.1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |||||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Aug. 31, 2016 | Feb. 01, 2016 | ||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | $ 7,000,000 | $ 221,300,000 | ||||
Tax credit carryforward | 11,200,000 | 8,600,000 | ||||
Tax Credit Carryforward Utilization | $ 12,400,000 | 14,300,000 | ||||
Income Tax Holiday, Aggregate Dollar Amount | 1,000,000 | 5,100,000 | 300,000 | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | [1],[2] | $ (249,300,000) | $ (152,900,000) | $ (14,200,000) | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 20.00% | 20.00% | 35.00% | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 19,000,000 | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 21.00% | |||||
Increase (Decrease) Tax Benefit, Jurisdiction Rate Difference | $ 96,400,000 | $ 138,700,000 | ||||
Increase (Decrease) Tax Expense (Benefit), Change in Operating Income | 146,300,000 | 62,400,000 | ||||
Increase (Decrease) Tax Expense (Benefit) Due to Amortization of Intangible Assets | 56,800,000 | 22,500,000 | ||||
Increase (Decrease) Foreign Tax Expense (Benefit) Due To Acquisitions | 32,000,000 | 62,200,000 | ||||
Increase (Decrease) Tax Expense (Benefit), Other | 25,100,000 | 31,800,000 | ||||
Income Tax Benefit from Change in Rate from Domestic to Foreign | 4,800,000 | |||||
Unrecognized tax benefits, which if favorably settled would benefit the effective tax rate | 113,100,000 | 87,400,000 | $ 82,000,000 | |||
Interest expense on unrecognized tax benefits | 4,100,000 | 5,700,000 | 7,000,000 | |||
Released tax interest | 32,100,000 | |||||
Increase (Decrease) in Unrecognized Tax Benefits Interest, Discontinued Operations | 6,500,000 | |||||
Interest accrued on unrecognized tax benefits | 7,200,000 | 41,700,000 | 45,100,000 | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 14,600,000 | |||||
Income tax penalties and interest accrued that would impact effective tax rate, upper bound of change | 6,100,000 | |||||
Tax payments associated with non-current deferred intercompany transactions | 69,100,000 | 51,700,000 | ||||
Income Tax Receivable, Deferred Intercompany Transactions | 81,100,000 | |||||
Tax payments associate with current deferred intercompany transactions | 10,000,000 | 8,700,000 | ||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 43,500,000 | |||||
Deferred income taxes | 0 | 139,200,000 | ||||
Deferred income taxes (non-current liability) | 2,581,400,000 | 3,117,500,000 | ||||
Deferred Tax Liabilities, Net | 2,557,300,000 | 2,975,900,000 | ||||
Increase (Decrease), Deferred Tax Liability Due to Amortization of Intangible Assets | 66,400,000 | |||||
Increase (Decrease), Deferred Tax Liability, Other | (50,000,000) | |||||
Increase (Decrease), Deferred Tax Liability, Recent Acquisitions | (25,700,000) | |||||
Deferred tax assets, tax credit carryforwards | 332,300,000 | 159,500,000 | ||||
Deferred tax assets, valuation allowance | 564,900,000 | 233,000,000 | ||||
Increase (decrease) deferred tax liability due to installment sale | 1,902,900,000 | 1,465,300,000 | ||||
Increase (decrease) deferred tax asset resulting from installment sale transaction | 322,800,000 | |||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 122,600,000 | |||||
Deferred tax liabilities, intangible assets | 775,100,000 | 1,550,700,000 | ||||
Deferred Tax Liabilities, Property, Plant and Equipment | 111,300,000 | 111,800,000 | ||||
Deferred Tax Asset, Financing Payment | 14,900,000 | 8,700,000 | ||||
Tax credit carryforwards, not subject to expiration | 4,000,000 | |||||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 354,800,000 | |||||
Hemostasis Products | ||||||
Income Taxes [Line Items] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 23,000,000 | |||||
Increase (Decrease) in Deferred Tax Liability, Intangible Assets | (20,300,000) | |||||
Deferred Tax Liabilities, Inventory | $ 4,100,000 | |||||
Increase (Decrease), Deferred Tax Liability, Net | 1,400,000 | |||||
Ikaria | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 4,800,000 | |||||
Tax credit carryforward | 7,200,000 | |||||
Increase (decrease) deferred tax asset resulting from installment sale transaction | 519,500,000 | |||||
Increase (Decrease) in Income Taxes | 42,800,000 | |||||
Increase (Decrease) in Deferred Charges | 23,800,000 | |||||
Increase (Decrease) in Prepaid Taxes | 1,000,000 | |||||
Increase (Decrease) in Deferred Tax Liability, Intangible Assets | 535,100,000 | |||||
Therakos | ||||||
Income Taxes [Line Items] | ||||||
Increase (decrease) deferred tax asset resulting from installment sale transaction | 250,400,000 | |||||
Increase (Decrease) in Income Taxes | 17,300,000 | |||||
Increase (Decrease) in Prepaid Taxes | 300,000 | |||||
Increase (Decrease) in Deferred Tax Liability, Intangible Assets | 267,300,000 | |||||
Cadence Pharmaceuticals, Inc. | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 187,800,000 | |||||
Stratatech [Member] | ||||||
Income Taxes [Line Items] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 11,200,000 | |||||
Increase (Decrease) in Deferred Tax Liability, Intangible Assets | (35,500,000) | |||||
Increase (Decrease), Deferred Tax Liability, Net | 24,300,000 | |||||
Domestic Tax Authority [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 1,000,000 | |||||
Internal Revenue Service (IRS) | ||||||
Income Taxes [Line Items] | ||||||
Advance payment in connection with proposed settlements of certain tax matters | 8,900,000 | |||||
Advance payment in connection with proposed settlement of certain tax matters, tax payment | 7,400,000 | |||||
Advance payment in connection with proposed settlement of certain tax matters, interest payment | 1,500,000 | |||||
Internal Revenue Service (IRS) | Covidien | ||||||
Income Taxes [Line Items] | ||||||
Advance payment in connection with proposed settlements of certain tax matters | 35,900,000 | |||||
Advance payment in connection with proposed settlement of certain tax matters, tax payment | 27,300,000 | |||||
Advance payment in connection with proposed settlement of certain tax matters, interest payment | 8,600,000 | |||||
U.S. - Federal and State | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, subject to expiration | $ 75,000,000 | |||||
IRELAND | ||||||
Income Taxes [Line Items] | ||||||
Tax years that remain subject to examination | 2,009 | |||||
Foreign Tax Authority | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 29,200,000 | |||||
Tax Credit Carryforward Utilization | 9,500,000 | |||||
Operating loss carryforwards | $ 246,100,000 | |||||
Operating loss carryforwards, not subject to expiration | 175,300,000 | |||||
Operating loss carryforwards, subject to expiration | 70,800,000 | |||||
Foreign Tax Authority | Hemostasis Products | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 17,900,000 | |||||
Discontinued Operations, Held-for-sale | ||||||
Income Taxes [Line Items] | ||||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 3,900,000 | 6,500,000 | ||||
Undistributed Earnings | $ 41,300,000 | |||||
Contrast Media and Delivery Systems | ||||||
Income Taxes [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 3,000,000 | |||||
Increase (Decrease) Net Operating Loss | $ 29,500,000 | |||||
Latest Tax Year [Member] | U.S. - Federal and State | ||||||
Income Taxes [Line Items] | ||||||
Tax years that remain subject to examination | 2,010 | |||||
Earliest Tax Year [Member] | U.S. - Federal and State | ||||||
Income Taxes [Line Items] | ||||||
Tax years that remain subject to examination | 2,000 | |||||
[1] | Due to the December 31, 2013 Research Credit 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 $3.6 million of credit related to the period January 1, 2014 through September 26, 2014. | |||||
[2] | Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Operating Loss Carryforwards [Line Items] | ||||
Domestic | [1] | $ (275.3) | $ (107.5) | $ (76) |
International | [1] | 508.7 | 214.8 | 41.4 |
Income (loss) from continuing operations before income taxes | [1] | $ 233.4 | $ 107.3 | $ (34.6) |
[1] | Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. |
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. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Current: | ||||
Domestic | [1] | $ 0.3 | $ 0.2 | $ 22.3 |
International | [1] | 120.5 | 67.3 | 18.9 |
Current income tax provision | [1] | 120.8 | 67.5 | 41.2 |
Deferred: | ||||
Domestic | [1] | 0.7 | (0.8) | (41.9) |
International | [1] | (377.1) | (196) | (11.9) |
Deferred income tax (benefit) | [1] | (376.4) | (196.8) | (53.8) |
Provision for (benefit from) income taxes | [1] | $ (255.6) | $ (129.3) | $ (12.6) |
[1] | Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. |
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. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |||||
Income Taxes [Line Items] | |||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 20.00% | 20.00% | 35.00% | ||||||
Provision for income taxes at Domestic statutory income tax rate (1) | [1] | $ 46.6 | $ 21.4 | $ (12.1) | |||||
Current State and Local Tax Expense (Benefit) | [2] | 0 | 0 | (7) | |||||
Adjustments to reconcile to income tax provision: | |||||||||
Rate difference between non-U.S. and U.S. jurisdictions | [3],[4] | (249.3) | (152.9) | (14.2) | |||||
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount | [2] | 0 | 0 | (2.7) | |||||
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount | (4.3) | ||||||||
Valuation allowances, nonrecurring | 2.1 | (2.1) | 0.1 | ||||||
Adjustments to accrued income tax liabilities and uncertain tax positions | (14.9) | (7) | (0.4) | ||||||
Interest and penalties on accrued income tax liabilities and uncertain tax positions | (16.4) | 0.3 | (7.7) | ||||||
Investment in partnership | 0 | 0 | 20 | ||||||
Credits, principally research | $ (0.7) | $ (3.6) | (33.7) | [3],[5] | (8.1) | [3],[5] | (0.7) | [3],[5] | |
Permanently nondeductible and nontaxable items | 7.9 | 14.7 | 13.4 | ||||||
Other | 2.1 | 4.4 | (1.3) | ||||||
Tax Adjustments, Settlements, and Unusual Provisions | 27.4 | ||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 15.1 | 34.9 | 4.4 | ||||||
Provision for (benefit from) income taxes | [6] | $ (255.6) | $ (129.3) | $ (12.6) | |||||
[1] | The statutory tax rate reflects the U.K. statutory tax rate of 20% for fiscal 2016 and 2015, and the U.S. federal statutory tax rate of 35% for fiscal 2014. | ||||||||
[2] | For fiscal 2016, U.S. state income tax benefit of $15.1 million was combined with the rate differences between Domestic and International jurisdictions. For fiscal 2015, U.S. state income tax benefit of $34.9 million, and U.S. manufacturing deduction tax benefit of $4.3 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. | ||||||||
[3] | Due to the December 31, 2013 Research Credit 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. | ||||||||
[4] | Includes the impact of certain recurring valuation allowances for Domestic and International jurisdictions. | ||||||||
[5] | The Company realized a tax benefit of $27.4 million resulting from a U.K. tax credit on a dividend between affiliates. | ||||||||
[6] | Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefit Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of fiscal year | $ 89.2 | $ 82 | $ 100.1 |
Additions related to current year tax positions | 63.8 | 4.5 | 3.2 |
Additions related to prior period tax positions | 10.8 | 19.9 | 30.6 |
Reductions related to prior period tax positions | (37.8) | (7.7) | (33) |
Unrecognized Tax Benefits, Decrease Resulting from disposal of business | (6.6) | 0 | 0 |
Settlements | (2.6) | (7.8) | (6.9) |
Lapse of statute of limitations | (2) | (1.7) | (12) |
Balance at end of fiscal year | $ 114.8 | $ 89.2 | $ 82 |
Income Taxes (Schedule of Unr79
Income Taxes (Schedule of Unrecognized Tax Benefits Balance Sheet Location) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 114.8 | $ 89.2 | $ 82 | $ 100.1 |
Accrued and Other Current Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 0 | 1.3 | ||
Other Income Tax Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 55.4 | 80 | ||
Deferred income tax liability (non-current) | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 59.4 | 7.9 | ||
Liabilities, Total | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 114.8 | $ 89.2 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Taxes Payable) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Operating Loss Carryforwards [Line Items] | ||
Other income tax liabilities | $ 67.7 | $ 121.3 |
Total income taxes payable | 179.5 | 136.9 |
Accrued and Other Current Liabilities | ||
Operating Loss Carryforwards [Line Items] | ||
Accrued and other current liabilities | 111.8 | 15.6 |
Other Income Tax Liabilities | ||
Operating Loss Carryforwards [Line Items] | ||
Other income tax liabilities | $ 67.7 | $ 121.3 |
Income Taxes (Schedule of Inc81
Income Taxes (Schedule of Income Tax Receivables and Other Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Income Tax Disclosure [Abstract] | ||
Other assets | $ 69.1 | $ 51.7 |
Prepaid expenses and other current assets | 53.5 | 89.8 |
Total | $ 122.6 | $ 141.5 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Taxes Activity) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Deferred tax assets: | ||
Accrued liabilities and reserves | $ 80.8 | $ 91 |
Inventories | 35.4 | 21.4 |
Tax loss and credit carryforwards | 332.3 | 159.5 |
Environmental liabilities | 28.6 | 23.6 |
Rebate reserves | 48.7 | 48.1 |
Expired product | 12.2 | 26.3 |
Postretirement benefits | 48.7 | 37.3 |
Federal and state benefit of uncertain tax positions and interest | 17.4 | 33.6 |
Share-based compensation | 22.1 | 17.6 |
Other | 14.9 | 8.7 |
Total deferred tax assets, gross | 982.9 | 572.8 |
Deferred Tax Assets, Goodwill and Intangible Assets | 341.8 | 105.7 |
Deferred tax liabilities: | ||
Property, plant and equipment | (111.3) | (111.8) |
Intangible assets | (775.1) | (1,550.7) |
Installment sale | (1,902.9) | (1,465.3) |
Investment in partnership | (186) | (187.9) |
Total deferred tax liabilities, gross | (2,975.3) | (3,315.7) |
Net deferred tax (liability) before valuation allowances | (1,992.4) | (2,742.9) |
Valuation allowances | (564.9) | (233) |
Deferred Tax Liabilities, Net | $ (2,557.3) | $ (2,975.9) |
Income Taxes (Schedule of Def83
Income Taxes (Schedule of Deferred Taxes Balance Sheet Location) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred income taxes (current asset) | $ 0 | $ 139.2 |
Other non-current assets | 24.1 | 6.6 |
Accrued and other current liabilities | 0 | (4.2) |
Deferred income taxes (non-current liability) | (2,581.4) | (3,117.5) |
Deferred Tax Liabilities, Net | $ (2,557.3) | $ (2,975.9) |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) shares in Millions | 12 Months Ended | |||
Sep. 30, 2016shares | Sep. 25, 2015shares | Sep. 26, 2014shares | 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) | 110.6 | 115.8 | 64.9 | |
Weighted Average Number of Shares Outstanding, Diluted | 0.9 | 1.4 | 0 | |
Weighted-average shares for diluted earnings (loss) per share (in shares) | 111.5 | 117.2 | 64.9 | |
Antidilutive securities excluded from weighted-average shares (in shares) | 1.7 | 0.1 | 5.7 |
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. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Income (loss) from continuing operations | $ 110 | $ 176.7 | $ 98.5 | $ 103.8 | $ 73.1 | $ 34.6 | $ 55.3 | $ 73.6 | $ 489 | $ 236.6 | $ (22) | ||||||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 0 | 2 | 0 | ||||||||||||||||
Income (Loss) From Continuing Operations Attributable To Common Stockholders | 489 | 234.6 | (22) | ||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ 5 | $ 22.6 | $ 19.8 | $ 107.3 | $ 2.1 | $ 23.4 | $ 43.5 | $ 19.1 | 154.7 | 88.1 | (297.3) | ||||||||
Income (Loss) From Discontinued Operations Attributable To Common Stockholders | 0 | 0.7 | 0 | ||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 154.7 | 87.4 | (297.3) | ||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 643.7 | $ 322 | $ (319.3) | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 110.6 | 115.8 | 64.9 | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 0.9 | 1.4 | 0 | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 111.5 | 117.2 | 64.9 | ||||||||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 1.02 | [1] | $ 1.63 | [1] | $ 0.89 | [1] | $ 0.90 | [1] | $ 0.62 | [1] | $ 0.30 | [1] | $ 0.47 | [1] | $ 0.63 | [1] | $ 4.42 | $ 2.03 | $ (0.34) |
Income (Loss) from Discontinued Operations, Per Basic Share | 1.40 | 0.75 | (4.58) | ||||||||||||||||
Earnings Per Share, Basic | 5.82 | 2.78 | (4.92) | ||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 1.01 | [1] | $ 1.62 | [1] | $ 0.88 | [1] | $ 0.89 | [1] | $ 0.62 | [1] | $ 0.29 | [1] | $ 0.47 | [1] | $ 0.63 | [1] | 4.39 | 2 | (0.34) |
Income (Loss) from Discontinued Operations, Per Diluted Share | 1.39 | 0.75 | (4.58) | ||||||||||||||||
Earnings Per Share, Diluted | $ 5.77 | $ 2.75 | $ (4.92) | ||||||||||||||||
[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. 30, 2016 | Sep. 25, 2015 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 62 | $ 52.9 |
Work in process | 188.9 | 121.6 |
Finished goods | 84.7 | 87.6 |
Inventories | $ 335.6 | $ 262.1 |
Property, Plant and Equipment87
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,615.7 | $ 1,492.4 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 771.7 | 699.4 | |
Depreciation | $ 113.3 | $ 90.8 | $ 76.7 |
Weighted Average Cost of Capital, Rate | 8.00% | ||
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 Equipment88
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,615.7 | $ 1,492.4 |
Less: accumulated depreciation | (771.7) | (699.4) |
Property, plant and equipment, net | 844 | 793 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46.8 | 47.1 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 287.2 | 261.7 |
Capitalized Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 85.3 | 85.4 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,032.3 | 979.9 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 164.1 | $ 118.3 |
Goodwill and Intangible Asset89
Goodwill and Intangible Assets Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Aug. 31, 2016 | Apr. 16, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Intangible asset amortization | $ 700.1 | $ 550.3 | $ 154.8 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, Period Increase (Decrease) | 55.9 | ||||
Weighted Average Cost of Capital, Rate | 8.00% | ||||
Other Asset Impairment Charges | 16.9 | 0 | $ 27.1 | ||
Goodwill | $ 3,705.3 | 3,649.4 | |||
Brands | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Cost of Capital, Rate | 12.50% | ||||
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 | ||||
Stratatech [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 57.3 | ||||
Ikaria | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Intangible asset amortization | $ 124.5 | $ 57.1 | $ 0 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 795 |
Goodwill and Intangible Asset90
Goodwill and Intangible Assets (Schedule Of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2016 | Aug. 31, 2016 | Sep. 25, 2015 | Apr. 16, 2015 | Sep. 26, 2014 | Aug. 14, 2014 | |
Goodwill [Line Items] | ||||||
Goodwill, Period Increase (Decrease) | $ 55.9 | |||||
Goodwill | 3,705.3 | $ 3,649.4 | ||||
Goodwill, Gross | 3,705.3 | 3,649.4 | ||||
Specialty Brands [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Gross | 3,498.3 | 3,442.4 | ||||
Specialty Generics [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Gross | $ 207 | 207 | ||||
Global Medical Imaging | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ (219.7) | |||||
Stratatech [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 57.3 | |||||
Ikaria | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 795 | |||||
Therakos | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 429.9 | |||||
Questcor Pharmaceuticals, Inc. | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 1,789.4 |
Goodwill and Intangible Asset91
Goodwill and Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Amortizable: | ||
Finite-lived intangible assets, gross | $ 10,331.4 | $ 10,198 |
Accumulated amortization | 1,583.2 | 882.9 |
Non-Amortizable: | ||
Indefinite-lived intangible assets, gross | 434.1 | 351.2 |
Trademarks | ||
Non-Amortizable: | ||
Indefinite-lived intangible assets, gross | 35 | 35 |
In-process research and development | ||
Non-Amortizable: | ||
Indefinite-lived intangible assets, gross | 399.1 | 316.2 |
Completed Technology | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 10,028.8 | 9,896 |
Accumulated amortization | 1,446.2 | 765.8 |
Licensing Agreements | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 185.1 | 185.1 |
Accumulated amortization | 112.3 | 99.8 |
Customer relationships | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 28.6 | 28.1 |
Accumulated amortization | 8 | 4.4 |
Trademarks | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 82.2 | 82.1 |
Accumulated amortization | 10 | 6.2 |
Other | ||
Amortizable: | ||
Finite-lived intangible assets, gross | 6.7 | 6.7 |
Accumulated amortization | $ 6.7 | $ 6.7 |
Goodwill and Intangible Asset92
Goodwill and Intangible Assets (Schedule of Future Amortization Expense, Intangible Assets) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Fiscal 2,017 | $ 701.4 |
Fiscal 2,018 | 692.4 |
Fiscal 2,019 | 692.1 |
Fiscal 2,020 | 691.9 |
Fiscal 2,021 | $ 691.6 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Sep. 24, 2015 | Apr. 15, 2015 | Mar. 19, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Aug. 28, 2015 | Jan. 20, 2015 | Aug. 31, 2014 | Aug. 14, 2014 | Jul. 28, 2014 | Apr. 30, 2013 |
Debt Instrument [Line Items] | |||||||||||
Variable rate receivable securitization | $ 0 | $ 153,000,000 | |||||||||
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] | |||||||||||
Line of Credit Facility, Interest Rate at Period End | 3.10% | ||||||||||
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% | ||||||||||
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 | 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 | 3.43% | ||||||||||
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 | 1.33% | ||||||||||
Variable rate receivable securitization | $ 235,000,000 | ||||||||||
Secured Debt | New Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Periodic Payment, Percentage of Principal | 0.25% | ||||||||||
Secured Debt | Term Loan and New Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Debt | $ 1,953,500,000 | ||||||||||
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. 30, 2016 | Sep. 25, 2015 |
Current maturities of long-term debt: | ||
Long-term Debt, Current Maturities | $ 257.1 | $ 22 |
Debt Issuance Costs, Current, Net | 0.8 | 0 |
Capital lease obligation and vendor financing agreements | 1 | 1 |
Variable rate receivable securitization | 0 | 153 |
Long-term debt: | ||
Long-term Debt, Gross | 5,878.5 | 6,584.2 |
Capital Lease Obligations, Noncurrent | 0.2 | 1 |
Debt, Long-term and Short-term, Combined Amount | 6,135.6 | 6,606.2 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 90.6 | 109.9 |
Variable rate receivable securitization | ||
Current maturities of long-term debt: | ||
Long-term Debt, Current Maturities | 235 | 0 |
Debt Issuance Costs, Current, Net | 0.4 | 0 |
Long-term debt: | ||
Debt Issuance Costs, Net | 0 | 0.8 |
Capital Lease Obligations [Member] | ||
Current maturities of long-term debt: | ||
Debt Issuance Costs, Current, Net | 0 | 0 |
Long-term Debt [Member] | ||
Long-term debt: | ||
Debt Issuance Costs, Net | 89.8 | 109.9 |
Senior Notes | 3.50% notes due April 2018 | ||
Long-term debt: | ||
Long-term Debt, Gross | 300 | 300 |
Debt Issuance Costs, Net | 1.1 | 1.7 |
Senior Notes | 4.75% notes due April 2023 | ||
Long-term debt: | ||
Long-term Debt, Gross | 600 | 600 |
Debt Issuance Costs, Net | 6.4 | 7.1 |
Senior Notes | 5.75% notes due August 2022 | ||
Long-term debt: | ||
Long-term Debt, Gross | 884 | 900 |
Debt Issuance Costs, Net | 12.1 | 14.4 |
Debentures | Four Point Eight Eight Percent Notes [Member] | ||
Long-term debt: | ||
Long-term Debt, Gross | 700 | 700 |
Debt Issuance Costs, Net | 8.8 | 11.3 |
Debentures | 5.625% notes due October 2023 | ||
Long-term debt: | ||
Long-term Debt, Gross | 740 | 750 |
Debt Issuance Costs, Net | 11.8 | 13.7 |
Debentures | Five Point Five Percent Notes [Member] | ||
Long-term debt: | ||
Long-term Debt, Gross | 700 | 700 |
Debt Issuance Costs, Net | 10.6 | 11.9 |
Debentures | 2015 Revolving Credit Facility | ||
Long-term debt: | ||
Long-term Debt, Gross | 0 | 500 |
Debt Issuance Costs, Net | 3.6 | 4.9 |
Secured Debt | Term loans due March 2021 | ||
Current maturities of long-term debt: | ||
Long-term Debt, Current Maturities | 20 | 20 |
Debt Issuance Costs, Current, Net | 0.4 | 0 |
Long-term debt: | ||
Long-term Debt, Gross | 1,933.5 | 1,958.5 |
Debt Issuance Costs, Net | 35.4 | 44.1 |
Secured Debt | 4.00% term loan due February 2022 | ||
Current maturities of long-term debt: | ||
Long-term Debt, Current Maturities | 1.1 | 1 |
Debt Issuance Costs, Current, Net | 0 | 0 |
Long-term debt: | ||
Long-term Debt, Gross | 6 | 6.9 |
Debt Issuance Costs, Net | 0 | 0 |
Secured Debt | Variable rate receivable securitization | ||
Current maturities of long-term debt: | ||
Variable rate receivable securitization | 235 | |
Debentures | 8.00% debentures due March 2023 | ||
Long-term debt: | ||
Long-term Debt, Gross | 4.4 | 4.4 |
Debt Issuance Costs, Net | 0 | 0 |
Debentures | 9.50% debentures due May 2022 | ||
Long-term debt: | ||
Long-term Debt, Gross | 10.4 | 10.4 |
Debt Issuance Costs, Net | 0 | 0 |
Capital Lease Obligations [Member] | ||
Long-term debt: | ||
Debt Issuance Costs, Net | $ 0 | $ 0 |
Debt (Schedule of Maturities of
Debt (Schedule of Maturities of Long-term Debt including Capital Lease Obligation) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
Fiscal 2,016 | $ 257.1 |
Fiscal 2,017 | 321.3 |
Fiscal 2,018 | 16.2 |
Fiscal 2,019 | 721.3 |
Fiscal 2,020 | $ 1,879.8 |
Retirement Plans Narrative (Det
Retirement Plans Narrative (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2016USD ($)contract | Sep. 25, 2015USD ($) | |
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 | $ 59.2 | $ 57.9 |
Deferred Compensation Plan Assets, Death Benefit on Insurance Contracts | 150 | 147.3 |
Deferred Compensation Plan Assets, Loans Outstanding Against Insurance Contracts | 43.4 | 40.4 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | 16.7 | 10.4 |
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 | $ 8.3 | 8.9 |
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. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1.8 | $ 2.4 | $ 2.7 |
Interest cost | 13.2 | 14.5 | 15.4 |
Expected return on plan assets | (16.7) | (18.9) | (20.5) |
Amortization of net actuarial loss | 11.3 | 9.2 | 8 |
Amortization of prior service cost | 0 | 0 | 0 |
Loss on plan settlements | 8.1 | 5.9 | 3.8 |
Net period benefit cost (credit) | $ 17.7 | 13.1 | 9.4 |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of total pension plan assets | 100.00% | ||
Allocation of total projected benefit obligation | 96.00% | ||
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.1 | 0.1 | 0.1 |
Interest cost | 2 | 1.9 | 2.1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 0 |
Amortization of prior service cost | (2.1) | (4) | (9.3) |
Loss on plan settlements | 0 | 0 | 0 |
Net period benefit cost (credit) | $ 0 | $ (2) | $ (7.1) |
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. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligations at beginning of year | $ 375.5 | $ 400.8 | |
Service cost | 1.8 | 2.4 | $ 2.7 |
Interest cost | 13.2 | 14.5 | 15.4 |
Actuarial (gain) loss | 65.5 | (0.8) | |
Benefits and administrative expenses paid | (20.1) | (17.8) | |
Plan settlements | (26.5) | (23.6) | |
Defined Benefit Plan, Plan Amendments | (0.4) | 0 | |
Net transfer in/(out) | 0 | 0.7 | |
Currency translation | 0.1 | (0.7) | |
Projected benefit obligations at end of year | 409.1 | 375.5 | 400.8 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 309.9 | 339 | |
Actual return on plan assets | 29.5 | 1.9 | |
Employer contributions | 16.7 | 10.4 | |
Benefits and administrative expenses paid | (20.1) | (17.8) | |
Plan settlements | (26.5) | (23.6) | |
Currency translation | 0 | 0 | |
Fair value of plan assets at end of year | 309.5 | 309.9 | 339 |
Funded status at end of year | (99.6) | (65.6) | |
Postretirement Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligations at beginning of year | 52.2 | 52 | |
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 2 | 1.9 | 2.1 |
Actuarial (gain) loss | 0.5 | 2.1 | |
Benefits and administrative expenses paid | (4) | (3.9) | |
Plan settlements | 0 | 0 | |
Defined Benefit Plan, Plan Amendments | 0 | 0 | |
Net transfer in/(out) | 0 | 0 | |
Currency translation | 0 | 0 | |
Projected benefit obligations at end of year | 50.8 | 52.2 | 52 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 4 | 3.9 | |
Benefits and administrative expenses paid | (4) | (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 | $ (50.8) | $ (52.2) |
Retirement Plans (Schedule of A
Retirement Plans (Schedule of Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Amounts recognized on the consolidated balance sheet: | ||
Non-current liabilities | $ (144.9) | $ (114.2) |
Pension Benefits | ||
Amounts recognized on the consolidated balance sheet: | ||
Non-current assets | 4 | 3.9 |
Current liabilities | (5.2) | (2.9) |
Non-current liabilities | (98.4) | (66.6) |
Net amount recognized on the consolidated balance sheet | (99.6) | (65.6) |
Amounts recognized in accumulated other comprehensive income consist of: | ||
Net actuarial loss | (141.2) | (107.9) |
Prior service credit | 0.3 | 0 |
Net amount recognized in accumulated other comprehensive income | (140.9) | (107.9) |
Postretirement Benefits | ||
Amounts recognized on the consolidated balance sheet: | ||
Non-current assets | 0 | 0 |
Current liabilities | (4.3) | (4.6) |
Non-current liabilities | (46.5) | (47.6) |
Net amount recognized on the consolidated balance sheet | (50.8) | (52.2) |
Amounts recognized in accumulated other comprehensive income consist of: | ||
Net actuarial loss | (5.6) | (5.1) |
Prior service credit | 12.8 | 14.9 |
Net amount recognized in accumulated other comprehensive income | $ 7.2 | $ 9.8 |
Retirement Plans (Schedule o100
Retirement Plans (Schedule of Amounts to be Amortized From Accumulated Other Comprehensive Income) (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Pension Benefits | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |
Amortization of net actuarial loss | $ 14.1 |
Amortization of prior service cost | 0.3 |
Postretirement Benefits | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |
Amortization of net actuarial loss | 0.1 |
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. 30, 2016 | Sep. 25, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Accumulated benefit obligation | $ 408.7 | $ 375.3 |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||
Accumulated benefit obligation | 398.1 | 363.4 |
Fair value of plan assets | $ 295 | $ 294.1 |
Retirement Plans (Schedule o102
Retirement Plans (Schedule of Actuarial Assumptions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
U.S. Plans | |||
Weighted Average-Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 3.90% | 3.80% | 4.20% |
Expected return on plan assets | 5.80% | 6.00% | 6.50% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | |||
Discount rate | 2.30% | 3.90% | 3.90% |
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 | 2.00% | 2.40% | 3.10% |
Expected return on plan assets | 2.00% | 2.00% | 2.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | |||
Discount rate | 1.30% | 2.40% | 2.40% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Postretirement Benefits | |||
Weighted Average-Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 4.00% | 3.60% | 4.00% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | |||
Discount rate | 3.20% | 3.90% | 3.70% |
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 | |
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 | 0.3 | ||
One-Percentage-Point Decrease, effect on postretirement obligation | $ (0.2) |
Retirement Plans (Schedule of W
Retirement Plans (Schedule of Weighted Average Allocation of Plan Assets) (Details) - U.S. Plans | Sep. 30, 2016 | Sep. 25, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 0.00% | 27.00% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 96.00% | 70.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 4.00% | 3.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans, weighted-average plan asset allocation | 0.00% | 0.00% |
Retirement Plans (Schedule of F
Retirement Plans (Schedule of Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | ||
Recurring | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 309.9 | ||
Fair value of plan assets at end of year | 309.5 | $ 309.9 | |
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 | 308.6 | ||
Fair value of plan assets at end of year | 309.5 | 308.6 | |
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 | 1.3 | ||
Fair value of plan assets at end of year | 0 | 1.3 | |
Recurring | 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. Small Mid Cap | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 15.1 | ||
Fair value of plan assets at end of year | 15.1 | ||
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 | 15.1 | ||
Fair value of plan assets at end of year | 15.1 | ||
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 | ||
Recurring | U.S. Small Mid Cap | 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 | ||
Recurring | U.S. Large Cap | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 46.2 | ||
Fair value of plan assets at end of year | 1.4 | 46.2 | |
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 | 46.2 | ||
Fair value of plan assets at end of year | 1.4 | 46.2 | |
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 | 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 | 22.9 | ||
Fair value of plan assets at end of year | 22.9 | ||
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 | 22.7 | ||
Fair value of plan assets at end of year | 22.7 | ||
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 | 0.2 | ||
Fair value of plan assets at end of year | 0.2 | ||
Recurring | International | 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 | ||
Recurring | Diversified Fixed Income Funds | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | [1] | 197.2 | |
Fair value of plan assets at end of year | [1] | 296.1 | 197.2 |
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] | 196.9 | |
Fair value of plan assets at end of year | [1] | 296.1 | 196.9 |
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] | 0.3 | |
Fair value of plan assets at end of year | [1] | 0 | 0.3 |
Recurring | Diversified Fixed Income Funds | 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 | 11.3 | ||
Fair value of plan assets at end of year | 11.3 | ||
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 | 11.3 | ||
Fair value of plan assets at end of year | 11.3 | ||
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 | ||
Recurring | High Yield Bonds | 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 | ||
Recurring | Emerging Market Fund | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 7.4 | ||
Fair value of plan assets at end of year | 7.4 | ||
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 | 7.4 | ||
Fair value of plan assets at end of year | 7.4 | ||
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 | ||
Recurring | Emerging Market Fund | 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 | ||
Recurring | Other | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 9.8 | ||
Fair value of plan assets at end of year | 12 | 9.8 | |
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 | 9 | ||
Fair value of plan assets at end of year | 12 | 9 | |
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 | 0.8 | ||
Fair value of plan assets at end of year | 0 | 0.8 | |
Recurring | Other | 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 | |
Pension Benefits | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 309.9 | 339 | |
Currency translation | 0 | 0 | |
Fair value of plan assets at end of year | $ 309.5 | $ 309.9 | |
[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. 30, 2016USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2,016 | $ 113.2 |
Fiscal 2,017 | 22.2 |
Fiscal 2,018 | 21.8 |
Fiscal 2,019 | 20.5 |
Fiscal 2,020 | 19.2 |
Fiscal 2021-2025 | 85.9 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2,016 | 4.3 |
Fiscal 2,017 | 4 |
Fiscal 2,018 | 3.7 |
Fiscal 2,019 | 3.5 |
Fiscal 2,020 | 3.3 |
Fiscal 2021-2025 | $ 14.9 |
Retirement Plans (Defined Contr
Retirement Plans (Defined Contribution Plan) (Details) - Defined Contribution Plan, 401 K [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 50.00% | ||
Defined Contribution Plan, Cost Recognized | $ 25.3 | $ 22.1 | $ 19 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Sep. 30, 2016 | Sep. 25, 2015 | Mar. 16, 2016 | Nov. 19, 2015 | 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 | |||
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $ 2.3 | $ 17.2 | |||
November 2015 Share Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||
January 2015 Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 300 | ||||
March 2016 Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 350 |
Equity Stock Repurchase Program
Equity Stock Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Mar. 16, 2016 | Nov. 19, 2015 | Jan. 23, 2015 | |
Class of Stock [Line Items] | ||||||
Repurchase of ordinary shares, value | $ 652.9 | $ 92.2 | $ 17.5 | |||
March 2016 Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 350 | |||||
Repurchase of ordinary shares, shares | 0 | 0 | ||||
Repurchase of ordinary shares, value | $ 0 | $ 0 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 350 | |||||
November 2015 Share Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 500 | |||||
Repurchase of ordinary shares, shares | 6,510,824 | 0 | ||||
Repurchase of ordinary shares, value | $ 425.6 | $ 0 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 74.4 | |||||
January 2015 Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 300 | |||||
Repurchase of ordinary shares, shares | 3,199,279 | 823,592 | ||||
Repurchase of ordinary shares, value | $ 225 | $ 75 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0 |
Share Plans (Narrative) (Detail
Share Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation cost | $ 41,400,000 | $ 115,000,000 | $ 64,900,000 |
Tax benefit from share-based compensation cost | 13,100,000 | 41,300,000 | 23,400,000 |
Intrinsic value of options vested | 15,300,000 | 89,500,000 | 34,200,000 |
Tax benefit from stock options exercised | $ 5,700,000 | $ 33,100,000 | $ 12,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | ||
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 | $ 35,500,000 | ||
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 8 months | ||
Fair value of restricted share units granted in period | $ 43,100,000 | ||
Fair value of restricted share units vested in period | 13,400,000 | ||
Unrecognized compensation cost, restricted share units | $ 47,200,000 | ||
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 8 months | ||
Unrecognized compensation cost | $ 13,700,000 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted share units vested in period | $ 600,000 | ||
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% | ||
New ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 25,000 |
Share Plans (Schedule of Incent
Share Plans (Schedule of Incentive Equity Awards Issued Upon Completion of Conversion) (Details) - $ / shares | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share options outstanding | 3,421,856 | 2,786,443 | 3,526,789 |
Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value, restricted share units | $ 70.40 | $ 73.45 | $ 47.88 |
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 | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share options outstanding | 3,421,856 | 2,786,443 | 3,526,789 |
Weighted-average exercise price, outstanding share options | $ 61.17 | $ 52.76 | $ 36.84 |
Weighted-average remaining contractual term, outstanding share options | 7 years 4 months | ||
Aggregate intrinsic value, outstanding share options | $ 49.6 | ||
Share options exerciseable | 1,388,805 | ||
Weighted-average exercise price, exercisable share options | $ 45.55 | ||
Weighted-average remaining contractual term, exercisable share options | 5 years 4 months | ||
Aggregate intrinsic value, exercisable share options | $ 38.2 |
Share Plans (Schedule of the Va
Share Plans (Schedule of the Valuation Assumptions Used in the Conversion) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Weighted Average Assumptions | |||
Expected share price volatility | 31.00% | 29.00% | 32.00% |
Risk-free interest rate | 1.74% | 1.72% | 1.96% |
Expected annual dividend per share | 0.00% | 0.00% | 0.00% |
Expected life of options (in years) | 5 years 4 months | 5 years 4 months | 5 years 6 months |
Fair value per option | $ 22.82 | $ 30.08 | $ 17.38 |
Share options outstanding | 3,421,856 | 2,786,443 | 3,526,789 |
Share Plans (Schedule of Sha113
Share Plans (Schedule of Share Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Share Option Activity [Roll Forward] | |||
Beginning balance | 2,786,443 | 3,526,789 | |
Granted | 1,248,828 | 635,567 | |
Exercised | (413,830) | (1,132,778) | |
Expired/Forfeited | (199,585) | (243,135) | |
Ending balance | 3,421,856 | 2,786,443 | 3,526,789 |
Share options vested and unvested expected to vest | 2,997,502 | ||
Share options exerciseable | 1,388,805 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-average exercise price, outstanding share options | $ 61.17 | $ 52.76 | $ 36.84 |
Weighted-average exercise price, granted share options | 72.44 | 102.20 | |
Weighted-average exercise price, exercised share options | 32.76 | 29.79 | |
Weighted-average exercise price, expired and forfeited share options | 72.65 | $ 58 | |
Weighted-average exercise price, vested and unvested expected to vest share options | 61.60 | ||
Weighted-average exercise price, exercisable share options | $ 45.55 | ||
Weighted-average remaining contractual term, outstanding share options | 7 years 4 months | ||
Weighted-average remaining contractual term, vested and unvested expected to vest share options | 7 years 6 months | ||
Weighted-average remaining contractual term, exercisable share options | 5 years 4 months | ||
Aggregate intrinsic value, outstanding share options | $ 49.6 | ||
Aggregate intrinsic value, vested and unvested expected to vest share options | 42.6 | ||
Aggregate intrinsic value, exercisable share options | $ 38.2 |
Share Plans (Schedule of Restri
Share Plans (Schedule of Restricted Share Unit Activity) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average period to recognize unrecognized compensation cost, share options | 2 years 8 months | ||
Restricted Share Unit Activity [Roll Forward] | |||
Beginning balance | 572,494 | 589,222 | |
Granted | 615,074 | 273,733 | |
Vested | (193,849) | (219,189) | |
Forfeited | (99,260) | (71,272) | |
Ending balance | 894,459 | 572,494 | |
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 | $ 70.40 | $ 73.45 | $ 47.88 |
Weighted-average grant date fair value, granted restricted share units | 70.10 | 105.68 | |
Weighted-average grant date fair value, vested restricted share units | 69.27 | 49.84 | |
Weighted-average grant date fair value, forfeited restricted share units | $ 79.95 | $ 68.15 | |
Restricted Stock | |||
Restricted Share Unit Activity [Roll Forward] | |||
Beginning balance | 34,562 | 1,432,031 | |
Vested | (9,760) | (1,362,823) | |
Forfeited | (7,936) | (34,646) | |
Ending balance | 16,866 | 34,562 | |
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 | $ 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. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average period to recognize unrecognized compensation cost, share options | 1 year 8 months | |||
Performance Share Unit Activity [Roll Forward] | ||||
Beginning balance | [1] | 130,974 | 72,740 | |
Granted | [1] | 145,192 | 77,306 | |
Forfeited | [1] | (9,521) | (19,072) | |
Ending balance | [1] | 266,645 | 130,974 | |
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 | $ 88.59 | $ 96.05 | $ 63.46 | |
Weighted-average grant date fair value, granted restricted share units | 83 | 125.84 | ||
Weighted-average grant date fair value, forfeited restricted share units | $ 96.30 | $ 92.05 | ||
[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. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 41.00% | 27.00% | 28.00% |
Peer group stock price volatility | 36.00% | 32.00% | 33.00% |
Correlation of returns | 24.00% | 14.00% | 17.00% |
Share Plans (Schedule of Res117
Share Plans (Schedule of Restricted Stock Award Activity) (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Restricted Stock Activity [Roll Forward] | |||
Beginning balance | 34,562 | 1,432,031 | |
Vested | (9,760) | (1,362,823) | |
Forfeited | (7,936) | (34,646) | |
Ending balance | 16,866 | 34,562 | |
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 | $ 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 Comprehens118
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 0.9 | $ 65.7 | $ 108.5 |
Other comprehensive loss before reclassifications | (38.7) | (71.9) | (44.7) |
Amounts reclassified from accumulated other comprehensive income | (47.8) | 7.1 | 1.9 |
Ending balance | (85.6) | 0.9 | 65.7 |
Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 60.2 | 131 | 158.6 |
Other comprehensive loss before reclassifications | 0.8 | (70.8) | (27.6) |
Amounts reclassified from accumulated other comprehensive income | (59.4) | 0 | 0 |
Ending balance | 1.6 | 60.2 | 131 |
Unrecognized Loss on Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (6.4) | (6.8) | (7.3) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0.5 | 0.4 | 0.5 |
Ending balance | (5.9) | (6.4) | (6.8) |
Unrecognized Gain (Loss) on Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (52.9) | (58.5) | (42.8) |
Other comprehensive loss before reclassifications | (39.5) | (1.1) | (17.1) |
Amounts reclassified from accumulated other comprehensive income | 11.1 | 6.7 | 1.4 |
Ending balance | $ (81.3) | $ (52.9) | $ (58.5) |
Accumulated Other Comprehens119
Accumulated Other Comprehensive Income (Schedule of Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of unrealized loss on derivatives | $ 0.7 | $ 0.6 | ||
Income tax provision | (0.2) | (0.2) | ||
Net of income taxes | 0.5 | 0.4 | ||
Amortization of pension and post-retirement benefit plans: | ||||
Net actuarial loss | [1] | 11.4 | 9.4 | |
Prior service credit | [1] | (2.7) | (4.6) | |
Plan settlements | [1] | 8.1 | 6 | |
Total before tax | 17.6 | 10.8 | ||
Income tax provision | (6.5) | (4.1) | ||
Net of income taxes | 11.1 | 6.7 | ||
Total reclassifications for the period | (47.8) | 7.1 | $ 1.9 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 0.8 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | $ (59.4) | $ 0 | ||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 13 for additional details. |
Guarantees (Narrative) (Details
Guarantees (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 25, 2016 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Guarantor Obligations [Line Items] | ||||
Restricted Cash and Cash Equivalents, Current | $ (21.1) | $ (47.3) | $ (3.1) | $ (4.1) |
Others | ||||
Guarantor Obligations [Line Items] | ||||
Maximum future payments | 32.7 | |||
Maryland Heights, Missouri | Surety Bond | ||||
Guarantor Obligations [Line Items] | ||||
Maximum future payments | $ 30.2 | |||
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 | 15.7 | ||
Mallinckrodt Baker | Indemnification Agreement | Other Assets | ||||
Guarantor Obligations [Line Items] | ||||
Escrow | 19 | 19 | ||
Mallinckrodt Baker | Enviornmental, Health and Safety Matters | Indemnification Agreement | Other Liabilities | ||||
Guarantor Obligations [Line Items] | ||||
Guarantors obligation | $ 12.9 | $ 13 |
Guarantees Non-Printing (Detail
Guarantees Non-Printing (Details) - Mallinckrodt Baker - Indemnification Agreement - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Escrow | $ 30 | |
Other Liabilities | ||
Guarantors obligation | 15.7 | $ 15.7 |
Other Assets | ||
Escrow | $ 19 | $ 19 |
Commitments and Contingencie122
Commitments and Contingencies (Narrative) (Details) | Sep. 26, 2012action | Aug. 31, 2013lawsuitCase | Oct. 31, 2012action | Aug. 31, 2012principal | Jun. 26, 2015USD ($) | Sep. 30, 2016USD ($)DefendentCase | Sep. 25, 2015USD ($)Defendentorder | Sep. 26, 2014USD ($) | Apr. 11, 2014USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Plant Assets Exchanged for Industrial Revenue Bonds | $ 88,000,000 | ||||||||
Deferred Tax Liabilities Installment Sales | 1,883,700,000 | ||||||||
Interest Expense, Installment Sales | 73,800,000 | $ 36,500,000 | |||||||
Interest Payable, Installment Sales | 25,700,000 | ||||||||
Rent expense | 23,900,000 | 22,200,000 | $ 12,200,000 | ||||||
Loss Contingencies [Line Items] | |||||||||
Environmental liabilities | 75,900,000 | ||||||||
Tax Matters Agreement | Covidien | |||||||||
Loss Contingencies [Line Items] | |||||||||
Tax agreement, tax threshold | $ 200,000,000 | ||||||||
Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of defendants | Defendent | 98 | ||||||||
Environmental liabilities | $ 13,300,000 | ||||||||
Remedial cost, estimate | $ 1,380,000,000 | ||||||||
Asbestos Matters | |||||||||
Loss Contingencies [Line Items] | |||||||||
Pending claims | Case | 11,700 | ||||||||
Estimation of liability, historical term | 5 years | ||||||||
Estimation of liability, expected future term of claims | 7 years | ||||||||
Other current liabilities | |||||||||
Loss Contingencies [Line Items] | |||||||||
Environmental liabilities, current | $ 2,600,000 | ||||||||
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 | 5 | |||||||
Litigation Settlement, Amount | $ 38,000,000 | ||||||||
Loss Contingency, Accrual, Current | $ 38,000,000 | ||||||||
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 | ||||||||
Environmental liabilities | $ 23,100,000 | ||||||||
Remedial cost, estimate | 1,700,000,000 | ||||||||
Tastemaker | |||||||||
Loss Contingencies [Line Items] | |||||||||
Provision for Loss (Gain) on Disposal, Net of Tax | $ (22,500,000) | ||||||||
Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Remedial cost, estimate | 38,700,000 | ||||||||
Minimum | Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Remedial cost, estimate | 483,400,000 | 365,000,000 | |||||||
Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Remedial cost, estimate | 121,300,000 | ||||||||
Maximum | Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Remedial cost, estimate | $ 2,700,000,000 | $ 3,200,000,000 | |||||||
Industrial Revenue Bonds by Saint Louis County [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Property, Plant, and Equipment, Fair Value Disclosure | 73,700,000 | ||||||||
Property, Plant and Equipment, Gross, Period Increase (Decrease) | (14,300,000) | ||||||||
Recurring | Level 3 | Stratatech [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | $ 54,900,000 |
Commitments and Contingencie123
Commitments and Contingencies (Schedule of Purchase Oligations) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Fiscal 2,016 | $ 147.5 |
Fiscal 2,017 | 31.6 |
Fiscal 2,018 | 20.3 |
Fiscal 2,019 | 14.1 |
Fiscal 2,020 | $ 6.7 |
Commitments and Contingencie124
Commitments and Contingencies (Schedule of Minimum Lease Payments for Non-cancelable Leases) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Operating Leases | |
Operating leases, fiscal 2017 | $ 20.1 |
Operating leases, fiscal 2018 | 19 |
Operating leases, fiscal 2019 | 13.7 |
Operating leases, fiscal 2020 | 11.5 |
Operating leases, thereafter | 44.9 |
Operating leases, total minimum lease payments | 26.5 |
Capital Leases | |
Capital leases, fiscal 2017 | 1 |
Capital leases, fiscal 2018 | 0.2 |
Capital leases, fiscal 2019 | 0 |
Capital leases, fiscal 2020 | 0 |
Capital leases, fiscal 2021 | 0 |
Capital leases, thereafter | 0 |
Operating Leases, Future Minimum Payments Due | 135.7 |
Capital leases, total minimum lease payments | 1.2 |
Capital leases, interest portion of total minimum lease payments | 0 |
Capital leases, present value of minimum lease payments | $ 1.2 |
Financial Instruments and Fa125
Financial Instruments and Fair Value Measurements (Narrative) (Details) CAD in Millions, $ in Millions | 12 Months Ended | ||||||||||
Sep. 30, 2016USD ($) | Sep. 30, 2016CAD | Sep. 25, 2015CAD | Aug. 31, 2016USD ($) | Feb. 01, 2016USD ($) | Sep. 25, 2015USD ($) | Sep. 25, 2015CAD | Aug. 31, 2014USD ($) | Aug. 14, 2014USD ($) | Apr. 30, 2013 | Oct. 01, 2012USD ($) | |
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 | $ 0.9 | ||||||||||
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 | $ 165 | ||||||||||
Discount rate | 4.70% | 4.70% | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | $ 123.4 | $ 195.4 | |||||||||
Hemostasis Products | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Fair value of contingent consideration upon acquisition | $ 52 | ||||||||||
Maximum contingent payments for acquisition | 395 | ||||||||||
Stratatech [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Fair value of contingent consideration upon acquisition | $ 54.9 | ||||||||||
Maximum contingent payments for acquisition | $ 121 | ||||||||||
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% | ||||||||||
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% | ||||||||||
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% | ||||||||||
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% | ||||||||||
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% | ||||||||||
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% | ||||||||||
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% | ||||||||||
Carrying Value | Level 1 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Restricted cash | $ 19.1 | $ 66.3 | |||||||||
Carrying Value | Level 3 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Cash surrender value of life insurance | 67.6 | 66.8 | |||||||||
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 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | CAD | CAD 40 | CAD 5 | |||||||||
PreveLeak [Member] | Hemostasis Products | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 10.6 | ||||||||||
Raplixa [Member] | Hemostasis Products | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Fair value of contingent consideration upon acquisition | $ 52 | ||||||||||
Recurring | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Fair value of contingent consideration upon acquisition | 247.8 | 174.6 | |||||||||
Recurring | Level 1 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Fair value of contingent consideration upon acquisition | 0 | 0 | |||||||||
Recurring | Level 2 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Fair value of contingent consideration upon acquisition | 0 | 0 | |||||||||
Recurring | Level 3 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Fair value of contingent consideration upon acquisition | 247.8 | $ 174.6 | |||||||||
Recurring | Level 3 | Stratatech [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 54.9 | ||||||||||
Recurring | PreveLeak [Member] | Level 3 | Hemostasis Products | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 11 | ||||||||||
Recurring | Raplixa [Member] | Level 3 | Hemostasis Products | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Fair value of contingent consideration upon acquisition | $ 57.7 |
(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. 30, 2016 | Sep. 25, 2015 |
Assets: | ||
Debt and equity securities held in rabbi trusts | $ 34.6 | $ 34.6 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.2 | |
Total assets at fair value | 34.8 | 34.6 |
Liabilities: | ||
Deferred compensation liabilities | 26.8 | 20 |
Contingent consideration | 247.8 | 174.6 |
Foreign exchange forward and option contracts | 1.6 | 3.3 |
Total liabilities at fair value | 276.2 | 197.9 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Debt and equity securities held in rabbi trusts | 23.1 | 24.2 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.2 | |
Total assets at fair value | 23.3 | 24.2 |
Liabilities: | ||
Deferred compensation liabilities | 0 | 0 |
Contingent consideration | 0 | 0 |
Foreign exchange forward and option contracts | 1.6 | 3.3 |
Total liabilities at fair value | 1.6 | 3.3 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Debt and equity securities held in rabbi trusts | 11.5 | 10.4 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | |
Total assets at fair value | 11.5 | 10.4 |
Liabilities: | ||
Deferred compensation liabilities | 26.8 | 20 |
Contingent consideration | 0 | 0 |
Foreign exchange forward and option contracts | 0 | 0 |
Total liabilities at fair value | 26.8 | 20 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Debt and equity securities held in rabbi trusts | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Deferred compensation liabilities | 0 | 0 |
Contingent consideration | 247.8 | 174.6 |
Foreign exchange forward and option contracts | 0 | 0 |
Total liabilities at fair value | $ 247.8 | $ 174.6 |
(Schedule of Reconciliation of
(Schedule of Reconciliation of Changes in Fair Value of Contingent Consideration) (Details) - Recurring $ in Millions | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Contingent Consideration | Questcor Pharmaceuticals, Inc. | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 174.6 |
Payments | (55) |
Business Combination, Contingent Consideration, Accretion | 6.3 |
Fair value adjustment | 4.4 |
Ending balance | 247.8 |
Level 3 | Contingent Liabilities [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 106.9 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Payments | $ (10.6) |
(Schedule of Carrying Amount an
(Schedule of Carrying Amount and Fair Value of Long-term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate receivable securitization | $ 0 | $ 153 |
Long-term Debt, Gross | 5,878.5 | 6,584.2 |
Term loan due March 2021 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan payable | 1,951.8 | 1,966.5 |
Loans Payable | 1,953.5 | 1,978.5 |
4.00% term loan due February 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan payable | 7.1 | 7.9 |
Loans Payable | 7.1 | 7.9 |
Secured Debt | Variable rate receivable securitization | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate receivable securitization | 235 | |
Secured Debt | 4.00% term loan due February 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Gross | 6 | 6.9 |
Debentures | 9.50% debentures due May 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 12.1 | 13 |
Long-term Debt, Gross | 10.4 | 10.4 |
Debentures | 8.00% debentures due March 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 4.9 | 5.3 |
Long-term Debt, Gross | 4.4 | 4.4 |
Senior Notes | 3.50% notes due April 2018 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 299.6 | 294.3 |
Long-term Debt, Gross | 300 | 300 |
Senior Notes | 5.75% notes due August 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 869.3 | 876.1 |
Long-term Debt, Gross | 884 | 900 |
Senior Notes | 4.75% notes due April 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 539.5 | 539.6 |
Long-term Debt, Gross | 600 | 600 |
Debentures | Four Point Eight Eight Percent Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 712.4 | 684.1 |
Long-term Debt, Gross | 700 | 700 |
Debentures | Five Point Five Percent Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 663.6 | 646 |
Long-term Debt, Gross | 700 | 700 |
Debentures | 2015 Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 0 | 500 |
Long-term Debt, Gross | 0 | 500 |
Debentures | 5.625% notes due October 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt | 710.2 | 705.2 |
Long-term Debt, Gross | 740 | 750 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate receivable securitization | 153 | |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate receivable securitization | $ 235 | $ 153 |
(Schedules of Concentration of
(Schedules of Concentration of Risk) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Distributor Concentration Risk | Net Sales Attributable to Distributors | CuraScript, Inc [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 38.00% | 35.00% | 7.00% |
Distributor Concentration Risk | Net Sales Attributable to Distributors | McKesson Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 20.00% | 25.00% |
Distributor Concentration Risk | Net Sales Attributable to Distributors | Cardinal Health, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 7.00% | 11.00% | 18.00% |
Distributor Concentration Risk | Net Sales Attributable to Distributors | Amerisource Bergen Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 8.00% | 10.00% | 15.00% |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | CuraScript, Inc [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 18.00% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | McKesson Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 30.00% | 26.00% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Cardinal Health, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 13.00% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Amerisource Bergen Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | 13.00% | |
Product Concentration Risk | Net Sales Attributable to Products | Acetaminophen products (API) | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 5.00% | 7.00% | 12.00% |
Product Concentration Risk | Net Sales Attributable to Products | Acthar | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 34.00% | 35.00% | 7.00% |
Product Concentration Risk | Net Sales Attributable to Products | Inomax | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 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 | 3.00% | 5.00% | 13.00% |
Segment and Geographical Dat130
Segment and Geographical Data (Schedule of Segment Reporting Information by Business Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | ||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | $ 887.2 | $ 866.6 | $ 815.8 | $ 811.2 | $ 778.8 | $ 768.5 | $ 709.5 | $ 666.3 | $ 3,380.8 | $ 2,923.1 | $ 1,650.3 | ||||
Operating income (loss) | 617.3 | 353.8 | 43.4 | ||||||||||||
Intangible asset amortization | (700.1) | (550.3) | (154.8) | ||||||||||||
Restructuring and related charges, net | (38.2) | (45.3) | (68.2) | ||||||||||||
Non-restructuring impairment | 16.9 | 0 | 27.1 | ||||||||||||
Separation costs | 0 | 0 | (9.6) | ||||||||||||
Assets | $ 15,498.7 | $ 16,404.1 | 15,498.7 | 16,404.1 | |||||||||||
Depreciation and amortization | 834.5 | 672.5 | 275.9 | ||||||||||||
Restructuring and related costs, accelerated depreciation | 4.9 | 0.3 | 0.2 | ||||||||||||
Specialty Brands [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Restructuring and related charges, net | (23.3) | (36.5) | (57) | ||||||||||||
Specialty Generics [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Restructuring and related charges, net | (3.4) | (4.5) | (9.8) | ||||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | [1] | 3,325.8 | 2,874.4 | 1,612.9 | |||||||||||
Operating income (loss) | 1,542.3 | 1,232 | 530.8 | ||||||||||||
Depreciation and amortization | [2] | 813.4 | 641.1 | 231.5 | |||||||||||
Operating Segments | Specialty Brands [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 2,300.6 | 1,622.8 | 413.5 | ||||||||||||
Operating income (loss) | 1,166.2 | 637.6 | (68.6) | ||||||||||||
Depreciation and amortization | [2] | 716.6 | 559.5 | 153.3 | |||||||||||
Operating Segments | Specialty Generics [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 1,025.2 | 1,251.6 | 1,199.4 | ||||||||||||
Operating income (loss) | 376.1 | 594.4 | 599.4 | ||||||||||||
Depreciation and amortization | [2] | 96.8 | 81.6 | 78.2 | |||||||||||
Corporate, Non-Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | [3] | 55 | 48.7 | [4] | 37.4 | [4] | |||||||||
Corporate and allocated expenses | [5] | (169.8) | (282.6) | (227.7) | |||||||||||
Intangible asset amortization | (700.1) | (550.3) | (154.8) | ||||||||||||
Restructuring and related charges, net | [6] | (38.2) | (45.3) | (68.2) | |||||||||||
Non-restructuring impairment | (16.9) | 0 | (27.1) | ||||||||||||
Separation costs | 0 | $ 0 | (9.6) | ||||||||||||
Intersegment Eliminations | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | $ 0 | $ 0 | $ 0 | ||||||||||||
[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 net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. Amounts for periods prior to the divestiture represent the reclassification of intercompany sales to third-party sales to conform with the expected presentation of the ongoing supply agreement. | ||||||||||||||
[4] | Represents net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. Amounts for periods prior to the divestiture represent the reclassification of intercompany sales to third-party sales to conform with the expected presentation of the ongoing supply agreement. | ||||||||||||||
[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 Dat131
Segment and Geographical Data (Schedule of Net Sales from External Costumers by Product) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 887.2 | $ 866.6 | $ 815.8 | $ 811.2 | $ 778.8 | $ 768.5 | $ 709.5 | $ 666.3 | $ 3,380.8 | $ 2,923.1 | $ 1,650.3 | |
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | 3,325.8 | 2,874.4 | 1,612.9 | ||||||||
Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,025.2 | 1,251.6 | 1,199.4 | |||||||||
Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,300.6 | 1,622.8 | 413.5 | |||||||||
Hydrocodone (API) and hydrocodone-containing tablets | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 103.5 | 136.5 | 209.6 | |||||||||
Oxycodone (API) and oxycodone-containing tablets | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 126.2 | 154.6 | 155.2 | |||||||||
Methylphenidate ER | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 146.5 | 167.2 | 99.4 | |||||||||
Other controlled substances | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 468.1 | 572.2 | 584.5 | |||||||||
Other | Operating Segments | Specialty Generics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 180.9 | 221.1 | 150.7 | |||||||||
Hemostasis Products | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 42.5 | 0 | 0 | |||||||||
Ofirmev | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 284.3 | 263 | 124.4 | |||||||||
Acthar | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,160.4 | 1,037.3 | 122.9 | |||||||||
Therakos Immunotherapy | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 207.6 | 0 | 0 | |||||||||
Other | Operating Segments | Specialty Brands [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 131.5 | 137.3 | 166.2 | |||||||||
Product Concentration Risk | Net Sales Attributable to Products | Inomax | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 474.3 | $ 185.2 | $ 0 | |||||||||
[1] | Amounts represent sales to external customers. There were no intersegment sales. |
Segment and Geographical Dat132
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. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||
Net sales | $ 887.2 | $ 866.6 | $ 815.8 | $ 811.2 | $ 778.8 | $ 768.5 | $ 709.5 | $ 666.3 | $ 3,380.8 | $ 2,923.1 | $ 1,650.3 | |
Long-Lived Assets | 856.1 | 805.7 | 856.1 | 805.7 | ||||||||
United States | ||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||
Net sales | [1] | 3,095.4 | 2,647 | 1,485 | ||||||||
Long-Lived Assets | [2] | 742.4 | 747.8 | 742.4 | 747.8 | |||||||
EMEA | ||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||
Net sales | [1] | 211.8 | 159 | 140.8 | ||||||||
Long-Lived Assets | [2],[3] | 61.2 | 13.4 | 61.2 | 13.4 | |||||||
EMEA | IRELAND | ||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||
Long-Lived Assets | 59.3 | 10.7 | 59.3 | 10.7 | ||||||||
Other Countries | ||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ||||||||||||
Net sales | [1] | 73.6 | 117.1 | $ 24.5 | ||||||||
Long-Lived Assets | [2] | $ 52.5 | $ 44.5 | $ 52.5 | $ 44.5 | |||||||
[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 $59.3 million, and $10.7 million at the end of fiscal 201 |
Selected Quarterly Financial133
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 887.2 | $ 866.6 | $ 815.8 | $ 811.2 | $ 778.8 | $ 768.5 | $ 709.5 | $ 666.3 | $ 3,380.8 | $ 2,923.1 | $ 1,650.3 | ||||||||
Gross profit | 490.2 | 488.8 | 425.1 | 450.9 | 425.8 | 441.7 | 399.7 | 355.7 | 1,855 | 1,622.9 | 884.6 | ||||||||
Income (loss) from continuing operations | 110 | 176.7 | 98.5 | 103.8 | 73.1 | 34.6 | 55.3 | 73.6 | 489 | 236.6 | (22) | ||||||||
Income (loss) from discontinued operations, net of income taxes | 5 | 22.6 | 19.8 | 107.3 | 2.1 | 23.4 | 43.5 | 19.1 | 154.7 | 88.1 | (297.3) | ||||||||
Net income (loss) | $ 115 | $ 199.3 | $ 118.3 | $ 211.1 | $ 75.2 | $ 58 | $ 98.8 | $ 92.7 | $ 643.7 | $ 324.7 | $ (319.3) | ||||||||
Basic earnings (loss) per share from continuing operations (in usd per share) | $ 1.02 | [1] | $ 1.63 | [1] | $ 0.89 | [1] | $ 0.90 | [1] | $ 0.62 | [1] | $ 0.30 | [1] | $ 0.47 | [1] | $ 0.63 | [1] | $ 4.42 | $ 2.03 | $ (0.34) |
Diluted earnings (loss) per share from continuing operations (in usd per share) | $ 1.01 | [1] | $ 1.62 | [1] | $ 0.88 | [1] | $ 0.89 | [1] | $ 0.62 | [1] | $ 0.29 | [1] | $ 0.47 | [1] | $ 0.63 | [1] | $ 4.39 | $ 2 | $ (0.34) |
[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 134
Condensed Consolidating and Combining Financial Statements (Schedule of Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 |
Current Assets: | ||||
Cash and cash equivalents | $ 280.5 | $ 365.9 | $ 707.8 | $ 275.5 |
Accounts receivable, net | 465.8 | 489.6 | ||
Inventories | 335.6 | 262.1 | ||
Deferred income taxes | 0 | 139.2 | ||
Prepaid expenses and other current assets | 115.9 | 194.4 | ||
Current assets held for sale | 308.8 | 394.9 | ||
Intercompany receivable | 0 | 0 | ||
Total current assets | 1,506.6 | 1,846.1 | ||
Property, plant and equipment, net | 844 | 793 | ||
Goodwill | 3,705.3 | 3,649.4 | ||
Intangible assets, net | 9,182.3 | 9,666.3 | ||
Long-term assets held for sale | 0 | 223.6 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loan receivable | 0 | 0 | ||
Other assets | 260.5 | 225.7 | ||
Total Assets | 15,498.7 | 16,404.1 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 256.3 | 22 | ||
Accounts payable | 110.1 | 116.8 | ||
Accrued payroll and payroll-related costs | 116 | 95 | ||
Accrued interest | 80.6 | 80.2 | ||
Accrued and other current liabilities | 550.9 | 486.1 | ||
Current liabilities held for sale | 120.8 | 129.3 | ||
Intercompany payable | 0 | 0 | ||
Total current liabilities | 1,234.7 | 929.4 | ||
Long-term debt | 5,788.7 | 6,474.3 | ||
Pension and postretirement benefits | 144.9 | 114.2 | ||
Environmental liabilities | 73.4 | 73.3 | ||
Deferred income taxes | 2,581.4 | 3,117.5 | ||
Other income tax liabilities | 67.7 | 121.3 | ||
Long-term liabilities held for sale | 0 | 53.9 | ||
Intercompany loans payable | 0 | 0 | ||
Other liabilities | 337.2 | 209 | ||
Total Liabilities | 10,228 | 11,092.9 | ||
Shareholders' equity | 5,270.7 | 5,311.2 | 4,958 | 1,255.6 |
Total Liabilities and Shareholders' Equity | 15,498.7 | 16,404.1 | ||
Mallinckrodt plc | ||||
Current Assets: | ||||
Cash and cash equivalents | 0.3 | 0.1 | 0.3 | 1.2 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | 1.4 | 1.3 | ||
Current assets held for sale | 0 | 0 | ||
Intercompany receivable | 88.9 | 39.1 | ||
Total current assets | 90.6 | 40.5 | ||
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 | 5,657.8 | 14,797.7 | ||
Intercompany loan receivable | 143.5 | 174.4 | ||
Other assets | 0 | 0 | ||
Total Assets | 5,891.9 | 15,012.6 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0.2 | 0 | ||
Accrued payroll and payroll-related costs | 0 | 0.1 | ||
Accrued interest | 0 | 0 | ||
Accrued and other current liabilities | 2.2 | 1.8 | ||
Current liabilities held for sale | 0 | 0 | ||
Intercompany payable | 618.8 | 9,699.5 | ||
Total current liabilities | 621.2 | 9,701.4 | ||
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 | 621.2 | 9,701.4 | ||
Shareholders' equity | 5,270.7 | 5,311.2 | ||
Total Liabilities and Shareholders' Equity | 5,891.9 | 15,012.6 | ||
Mallinckrodt International Finance S.A. | ||||
Current Assets: | ||||
Cash and cash equivalents | 25 | 152.1 | 18.5 | 56.5 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | 0.1 | 0.2 | ||
Current assets held for sale | 0 | 0 | ||
Intercompany receivable | 473.8 | 128.6 | ||
Total current assets | 498.9 | 280.9 | ||
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 | 20,168.4 | 18,838.6 | ||
Intercompany loan receivable | 0 | 0 | ||
Other assets | 0 | 0.1 | ||
Total Assets | 20,667.3 | 19,119.6 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 19.8 | 20 | ||
Accounts payable | 0 | 0.2 | ||
Accrued payroll and payroll-related costs | 0 | 0 | ||
Accrued interest | 79.3 | 77.1 | ||
Accrued and other current liabilities | 7.5 | 0.3 | ||
Current liabilities held for sale | 0 | 0 | ||
Intercompany payable | 462.6 | 0 | ||
Total current liabilities | 569.2 | 97.6 | ||
Long-term debt | 5,767.8 | 6,299.4 | ||
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 | 3,302.9 | 2,672.6 | ||
Other liabilities | 7.4 | 0 | ||
Total Liabilities | 9,647.3 | 9,069.6 | ||
Shareholders' equity | 11,020 | 10,050 | ||
Total Liabilities and Shareholders' Equity | 20,667.3 | 19,119.6 | ||
Other Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 255.2 | 213.7 | 689 | 217.8 |
Accounts receivable, net | 465.8 | 489.6 | ||
Inventories | 335.6 | 262.1 | ||
Deferred income taxes | 0 | 139.2 | ||
Prepaid expenses and other current assets | 114.4 | 192.9 | ||
Current assets held for sale | 308.8 | 394.9 | ||
Intercompany receivable | 1,081.4 | 9,699.5 | ||
Total current assets | 2,561.2 | 11,391.9 | ||
Property, plant and equipment, net | 844 | 793 | ||
Goodwill | 3,705.3 | 3,649.4 | ||
Intangible assets, net | 9,182.3 | 9,666.3 | ||
Long-term assets held for sale | 0 | 223.6 | ||
Investment in subsidiaries | 11,020 | 10,050 | ||
Intercompany loan receivable | 3,159.4 | 2,498.2 | ||
Other assets | 260.5 | 225.6 | ||
Total Assets | 30,732.7 | 38,498 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 236.5 | 2 | ||
Accounts payable | 109.9 | 116.6 | ||
Accrued payroll and payroll-related costs | 116 | 94.9 | ||
Accrued interest | 1.3 | 3.1 | ||
Accrued and other current liabilities | 541.2 | 484 | ||
Current liabilities held for sale | 120.8 | 129.3 | ||
Intercompany payable | 562.7 | 167.7 | ||
Total current liabilities | 1,688.4 | 997.6 | ||
Long-term debt | 20.9 | 174.9 | ||
Pension and postretirement benefits | 144.9 | 114.2 | ||
Environmental liabilities | 73.4 | 73.3 | ||
Deferred income taxes | 2,581.4 | 3,117.5 | ||
Other income tax liabilities | 67.7 | 121.3 | ||
Long-term liabilities held for sale | 0 | 53.9 | ||
Intercompany loans payable | 0 | 0 | ||
Other liabilities | 329.8 | 209 | ||
Total Liabilities | 4,906.5 | 4,861.7 | ||
Shareholders' equity | 25,826.2 | 33,636.3 | ||
Total Liabilities and Shareholders' Equity | 30,732.7 | 38,498 | ||
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 | (1,644.1) | (9,867.2) | ||
Total current assets | (1,644.1) | (9,867.2) | ||
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 | (36,846.2) | (43,686.3) | ||
Intercompany loan receivable | (3,302.9) | (2,672.6) | ||
Other assets | 0 | 0 | ||
Total Assets | (41,793.2) | (56,226.1) | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll and payroll-related costs | 0 | 0 | ||
Accrued interest | 0 | 0 | ||
Accrued and other current liabilities | 0 | 0 | ||
Current liabilities held for sale | 0 | 0 | ||
Intercompany payable | (1,644.1) | (9,867.2) | ||
Total current liabilities | (1,644.1) | (9,867.2) | ||
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 | (3,302.9) | (2,672.6) | ||
Other liabilities | 0 | 0 | ||
Total Liabilities | (4,947) | (12,539.8) | ||
Shareholders' equity | (36,846.2) | (43,686.3) | ||
Total Liabilities and Shareholders' Equity | $ (41,793.2) | $ (56,226.1) |
Condensed Consolidating and 135
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. 30, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | ||
Condensed Consolidating Financial Statements | ||||||||||||
Net sales | $ 887.2 | $ 866.6 | $ 815.8 | $ 811.2 | $ 778.8 | $ 768.5 | $ 709.5 | $ 666.3 | $ 3,380.8 | $ 2,923.1 | $ 1,650.3 | |
Cost of sales | 1,525.8 | 1,300.2 | 765.7 | |||||||||
Gross profit | 490.2 | 488.8 | 425.1 | 450.9 | 425.8 | 441.7 | 399.7 | 355.7 | 1,855 | 1,622.9 | 884.6 | |
Selling, general and administrative expenses | 925.3 | 1,023.8 | 611 | |||||||||
Research and development expenses | 262.2 | 203.3 | 140.5 | |||||||||
Separation costs | 0 | 0 | 9.6 | |||||||||
Restructuring charges, net | 33.3 | 45 | 68 | |||||||||
Non-restructuring impairment charges | 16.9 | 0 | 27.1 | |||||||||
Gain on divestiture and license | 0 | (3) | (15) | |||||||||
Operating income (loss) | 617.3 | 353.8 | 43.4 | |||||||||
Interest expense | (384.6) | (255.6) | (82.6) | |||||||||
Interest income | 1.3 | 1 | 1.5 | |||||||||
Other income (expense), net | (0.6) | 8.1 | 3.1 | |||||||||
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] | 233.4 | 107.3 | (34.6) | ||||||||
Income Tax Expense (Benefit) | [1] | (255.6) | (129.3) | (12.6) | ||||||||
Income (loss) from continuing operations | 110 | 176.7 | 98.5 | 103.8 | 73.1 | 34.6 | 55.3 | 73.6 | 489 | 236.6 | (22) | |
Income (loss) from discontinued operations, net of income taxes | 5 | 22.6 | 19.8 | 107.3 | 2.1 | 23.4 | 43.5 | 19.1 | 154.7 | 88.1 | (297.3) | |
Net income (loss) | $ 115 | $ 199.3 | $ 118.3 | $ 211.1 | $ 75.2 | $ 58 | $ 98.8 | $ 92.7 | 643.7 | 324.7 | (319.3) | |
Other comprehensive loss, net of tax | (86.5) | (64.8) | (42.8) | |||||||||
Comprehensive income (loss) | 557.2 | 259.9 | (362.1) | |||||||||
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 | 51.3 | 116.3 | 37.7 | |||||||||
Research and development expenses | 0 | 0 | 0 | |||||||||
Separation costs | 0 | 0 | 2.5 | |||||||||
Restructuring charges, net | 0 | 9.8 | 35.3 | |||||||||
Non-restructuring impairment charges | 0 | 0 | 0 | |||||||||
Gain on divestiture and license | 0 | 0 | 0 | |||||||||
Operating income (loss) | (51.3) | (126.1) | (75.5) | |||||||||
Interest expense | (230.3) | (96.4) | 0 | |||||||||
Interest income | 0 | 0 | 0 | |||||||||
Other income (expense), net | 90 | 216.3 | 30.9 | |||||||||
Intercompany interest and fees | 16.1 | 14.7 | 9 | |||||||||
Equity in net income of subsidiaries | 820.8 | 330.6 | (264.8) | |||||||||
Income (loss) from continuing operations before income taxes | 613.1 | 309.7 | (318.4) | |||||||||
Income Tax Expense (Benefit) | (30.6) | (15.9) | 0 | |||||||||
Income (loss) from continuing operations | 643.7 | 325.6 | (318.4) | |||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | (0.9) | (0.9) | |||||||||
Net income (loss) | 643.7 | 324.7 | (319.3) | |||||||||
Other comprehensive loss, net of tax | (86.5) | (64.8) | (42.8) | |||||||||
Comprehensive income (loss) | 557.2 | 259.9 | (362.1) | |||||||||
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 | 0.8 | 15.7 | 7.3 | |||||||||
Research and development expenses | 0 | 0 | 0 | |||||||||
Separation costs | 0 | 0 | 0 | |||||||||
Restructuring charges, net | 0 | 0 | 0 | |||||||||
Non-restructuring impairment charges | 0 | 0 | 0 | |||||||||
Gain on divestiture and license | 0 | 0 | 0 | |||||||||
Operating income (loss) | (0.8) | (15.7) | (7.3) | |||||||||
Interest expense | (327) | (230.2) | (86.3) | |||||||||
Interest income | 0.5 | 0.1 | 0 | |||||||||
Other income (expense), net | 1.7 | 0 | 0 | |||||||||
Intercompany interest and fees | 0 | 0 | 0 | |||||||||
Equity in net income of subsidiaries | 1,327.2 | 496.3 | (171.2) | |||||||||
Income (loss) from continuing operations before income taxes | 1,001.6 | 250.5 | (264.8) | |||||||||
Income Tax Expense (Benefit) | (18.1) | 0 | 0 | |||||||||
Income (loss) from continuing operations | 1,019.7 | 250.5 | (264.8) | |||||||||
Income (loss) from discontinued operations, net of income taxes | 38.2 | 0 | 0 | |||||||||
Net income (loss) | 1,057.9 | 250.5 | (264.8) | |||||||||
Other comprehensive loss, net of tax | (86.5) | (64.8) | (42.8) | |||||||||
Comprehensive income (loss) | 971.4 | 185.7 | (307.6) | |||||||||
Other Subsidiaries | ||||||||||||
Condensed Consolidating Financial Statements | ||||||||||||
Net sales | 3,380.8 | 2,923.1 | 1,650.3 | |||||||||
Cost of sales | 1,525.8 | 1,300.2 | 765.7 | |||||||||
Gross profit | 1,855 | 1,622.9 | 884.6 | |||||||||
Selling, general and administrative expenses | 873.2 | 891.8 | 566 | |||||||||
Research and development expenses | 262.2 | 203.3 | 140.5 | |||||||||
Separation costs | 0 | 0 | 7.1 | |||||||||
Restructuring charges, net | 33.3 | 35.2 | 32.7 | |||||||||
Non-restructuring impairment charges | 16.9 | 0 | 27.1 | |||||||||
Gain on divestiture and license | 0 | (3) | (15) | |||||||||
Operating income (loss) | 669.4 | 495.6 | 126.2 | |||||||||
Interest expense | (82.4) | (25.2) | 0 | |||||||||
Interest income | 255.9 | 97.1 | 5.2 | |||||||||
Other income (expense), net | (92.3) | (208.2) | (27.8) | |||||||||
Intercompany interest and fees | (16.1) | (14.7) | (9) | |||||||||
Equity in net income of subsidiaries | 1,057.9 | 250.5 | (300.2) | |||||||||
Income (loss) from continuing operations before income taxes | 1,824.6 | 624.5 | (187.6) | |||||||||
Income Tax Expense (Benefit) | (206.9) | (113.4) | (12.6) | |||||||||
Income (loss) from continuing operations | 2,031.5 | 737.9 | (175) | |||||||||
Income (loss) from discontinued operations, net of income taxes | 116.5 | 89 | (296.4) | |||||||||
Net income (loss) | 2,148 | 826.9 | (471.4) | |||||||||
Other comprehensive loss, net of tax | (173.5) | (69.9) | (84.1) | |||||||||
Comprehensive income (loss) | 1,974.5 | 757 | (555.5) | |||||||||
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 | 0 | |||||||||
Restructuring charges, net | 0 | 0 | 0 | |||||||||
Non-restructuring impairment charges | 0 | 0 | 0 | |||||||||
Gain on divestiture and license | 0 | 0 | 0 | |||||||||
Operating income (loss) | 0 | 0 | 0 | |||||||||
Interest expense | 255.1 | 96.2 | 3.7 | |||||||||
Interest income | (255.1) | (96.2) | (3.7) | |||||||||
Other income (expense), net | 0 | 0 | 0 | |||||||||
Intercompany interest and fees | 0 | 0 | 0 | |||||||||
Equity in net income of subsidiaries | (3,205.9) | (1,077.4) | 736.2 | |||||||||
Income (loss) from continuing operations before income taxes | (3,205.9) | (1,077.4) | 736.2 | |||||||||
Income Tax Expense (Benefit) | 0 | 0 | 0 | |||||||||
Income (loss) from continuing operations | (3,205.9) | (1,077.4) | 736.2 | |||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | |||||||||
Net income (loss) | (3,205.9) | (1,077.4) | 736.2 | |||||||||
Other comprehensive loss, net of tax | 260 | 134.7 | 126.9 | |||||||||
Comprehensive income (loss) | $ (2,945.9) | $ (942.7) | $ 863.1 | |||||||||
[1] | Domestic reflects U.K. in fiscal 2016 and 2015, and U.S. federal and state in fiscal 2014. |
Condensed Consolidating and 136
Condensed Consolidating and Combining Financial Statements (Schedule of Condensed Consolidating and Combining Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 25, 2016 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Cash Flows From Operating Activities: | ||||
Net cash (used in) provided by operating activities | $ 1,184.6 | $ 896.4 | $ 373.4 | |
Cash Flows From Investing Activities: | ||||
Capital expenditures | (182.9) | (148) | (127.8) | |
Acquisitions and intangibles, net of cash acquired | (245.4) | (2,154.7) | (2,793.8) | |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 267 | 0 | 0 | |
Intercompany Loan Investment | 0 | 0 | 0 | |
Subsidiary dividend proceeds | 0 | |||
Investment in subsidiary | 0 | 0 | 0 | |
Proceeds from Divestiture of Subsidiary | 0 | |||
Payments to Acquire Subsidiary | 0 | |||
Restricted cash | $ 21.1 | 47.3 | 3.1 | 4.1 |
Other | 6 | 3 | 26.7 | |
Net cash used in investing activities | (108) | (2,296.6) | (2,890.8) | |
Cash Flows From Financing Activities: | ||||
Issuance of external debt | 98.3 | 3,010 | 3,043.2 | |
Repayment of capital leases | (568.6) | (1,848.4) | (34.8) | |
Excess tax benefit from share-based compensation | 0 | 34.1 | 8.9 | |
Debt financing costs | (0.1) | (39.9) | (71.7) | |
Proceeds from exercise of share options | 14 | 34.4 | 25.8 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 0 | |||
Intercompany loan borrowings | 0 | 0 | 0 | |
Capital contribution | 0 | 0 | 0 | |
Repurchase of ordinary shares, value | (652.9) | (92.2) | (17.5) | |
Other | (53) | (28.1) | 0 | |
Net cash provided by financing activities | (1,162.3) | 1,069.9 | 2,953.9 | |
Effect of currency rate changes on cash | 0.3 | (11.6) | (4.2) | |
Net (decrease) increase in cash and cash equivalents | (85.4) | (341.9) | 432.3 | |
Cash and cash equivalents at beginning of period | 365.9 | 707.8 | 275.5 | |
Cash and cash equivalents at end of period | 280.5 | 365.9 | 707.8 | |
Mallinckrodt plc | ||||
Cash Flows From Operating Activities: | ||||
Net cash (used in) provided by operating activities | 17.9 | 207 | 18.2 | |
Cash Flows From Investing Activities: | ||||
Capital expenditures | 0 | 0 | 0 | |
Acquisitions and intangibles, net of cash acquired | 0 | 0 | 0 | |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 0 | |||
Intercompany Loan Investment | 0 | (149.4) | (25) | |
Subsidiary dividend proceeds | 0 | |||
Investment in subsidiary | 0 | 0 | 0 | |
Proceeds from Divestiture of Subsidiary | 3.4 | |||
Payments to Acquire Subsidiary | 0 | |||
Restricted cash | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net cash used in investing activities | 3.4 | (149.4) | (25) | |
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 | |
Proceeds from exercise of share options | 14 | 34.4 | 25.8 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 0 | |||
Intercompany loan borrowings | (617.8) | 0 | (2.4) | |
Capital contribution | 0 | 0 | 0 | |
Repurchase of ordinary shares, value | 652.9 | 92.2 | (17.5) | |
Other | 0 | 0 | 0 | |
Net cash provided by financing activities | (21.1) | (57.8) | 5.9 | |
Effect of currency rate changes on cash | 0 | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | 0.2 | (0.2) | (0.9) | |
Cash and cash equivalents at beginning of period | 0.1 | 0.3 | 1.2 | |
Cash and cash equivalents at end of period | 0.3 | 0.1 | 0.3 | |
Mallinckrodt International Finance S.A. | ||||
Cash Flows From Operating Activities: | ||||
Net cash (used in) provided by operating activities | (47.4) | (148.2) | (65) | |
Cash Flows From Investing Activities: | ||||
Capital expenditures | 0 | 0 | 0 | |
Acquisitions and intangibles, net of cash acquired | 0 | 0 | 0 | |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 234 | |||
Intercompany Loan Investment | (175.2) | 0 | (298.1) | |
Subsidiary dividend proceeds | (300.5) | |||
Investment in subsidiary | (861.2) | (3,014.4) | (3,735.5) | |
Proceeds from Divestiture of Subsidiary | 0 | |||
Payments to Acquire Subsidiary | 0 | |||
Restricted cash | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net cash used in investing activities | (802.4) | (3,014.4) | (3,733.1) | |
Cash Flows From Financing Activities: | ||||
Issuance of external debt | 0 | 2,890 | 2,893.3 | |
Repayment of capital leases | (549.2) | (258.3) | (3.3) | |
Excess tax benefit from share-based compensation | 0 | 0 | 0 | |
Debt financing costs | 0 | (39.1) | (70.7) | |
Proceeds from exercise of share options | 0 | 0 | 0 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 0 | |||
Intercompany loan borrowings | (1,271.9) | (703.6) | (940.8) | |
Capital contribution | 0 | 0 | 0 | |
Repurchase of ordinary shares, value | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net cash provided by financing activities | 722.7 | 3,296.2 | 3,760.1 | |
Effect of currency rate changes on cash | 0 | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | (127.1) | 133.6 | (38) | |
Cash and cash equivalents at beginning of period | 152.1 | 18.5 | 56.5 | |
Cash and cash equivalents at end of period | 25 | 152.1 | 18.5 | |
Other Subsidiaries | ||||
Cash Flows From Operating Activities: | ||||
Net cash (used in) provided by operating activities | 1,214.1 | 837.6 | 420.2 | |
Cash Flows From Investing Activities: | ||||
Capital expenditures | (182.9) | (148) | (127.8) | |
Acquisitions and intangibles, net of cash acquired | (245.4) | (2,154.7) | (2,793.8) | |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 33 | |||
Intercompany Loan Investment | (1,714.5) | (554.2) | (915.8) | |
Subsidiary dividend proceeds | 0 | |||
Investment in subsidiary | 0 | 0 | 0 | |
Proceeds from Divestiture of Subsidiary | 0 | |||
Payments to Acquire Subsidiary | 3.4 | |||
Restricted cash | 47.3 | 3.1 | 4.1 | |
Other | 6 | 3 | 26.7 | |
Net cash used in investing activities | (2,059.9) | (2,850.8) | (3,806.6) | |
Cash Flows From Financing Activities: | ||||
Issuance of external debt | 98.3 | 120 | 149.9 | |
Repayment of capital leases | (19.4) | (1,590.1) | (31.5) | |
Excess tax benefit from share-based compensation | 0 | 34.1 | 8.9 | |
Debt financing costs | (0.1) | (0.8) | (1) | |
Proceeds from exercise of share options | 0 | 0 | 0 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | (300.5) | |||
Intercompany loan borrowings | 0 | 0 | (300.5) | |
Capital contribution | 861.2 | 3,014.4 | 3,735.5 | |
Repurchase of ordinary shares, value | 0 | 0 | 0 | |
Other | (53) | (28.1) | 0 | |
Net cash provided by financing activities | 887 | 1,549.5 | 3,861.8 | |
Effect of currency rate changes on cash | 0.3 | (11.6) | (4.2) | |
Net (decrease) increase in cash and cash equivalents | 41.5 | (475.3) | 471.2 | |
Cash and cash equivalents at beginning of period | 213.7 | 689 | 217.8 | |
Cash and cash equivalents at end of period | 255.2 | 213.7 | 689 | |
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 | |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 0 | |||
Intercompany Loan Investment | (1,889.7) | (703.6) | (1,238.9) | |
Subsidiary dividend proceeds | 300.5 | |||
Investment in subsidiary | 861.2 | 3,014.4 | 3,735.5 | |
Proceeds from Divestiture of Subsidiary | (3.4) | |||
Payments to Acquire Subsidiary | (3.4) | |||
Restricted cash | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net cash used in investing activities | 2,750.9 | 3,718 | 4,673.9 | |
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 | |
Proceeds from exercise of share options | 0 | 0 | 0 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 300.5 | |||
Intercompany loan borrowings | 1,889.7 | 703.6 | 1,238.9 | |
Capital contribution | (861.2) | (3,014.4) | (3,735.5) | |
Repurchase of ordinary shares, value | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net cash provided by financing activities | (2,750.9) | (3,718) | (4,673.9) | |
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 |
Schedule II - Valuation and 137
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 3.6 | $ 2.2 | $ 2.4 |
Charged to Income | 0.3 | 1.2 | 0 |
Additions and Other | 0 | 0 | 0 |
Deductions | 0.1 | 0.2 | (0.2) |
Balance at End of Period | 4 | 3.6 | 2.2 |
Sales reserve accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 396.4 | 402.2 | 284.2 |
Charged to Income | 2,030.8 | 2,177.4 | 1,710.6 |
Additions and Other | 0 | 1.3 | 30.6 |
Deductions | (2,049.2) | (2,184.5) | (1,623.2) |
Balance at End of Period | 378 | 396.4 | 402.2 |
Tax valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 233 | 76.9 | 28.3 |
Charged to Income | 315.7 | 155.4 | 33.9 |
Additions and Other | 15.8 | 0.2 | 14.7 |
Deductions | 0.4 | 0.5 | 0 |
Balance at End of Period | $ 564.9 | $ 233 | $ 76.9 |