Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Sep. 27, 2013 | Dec. 06, 2013 | Mar. 29, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Mallinckrodt plc | ' | ' |
Entity Central Index Key | '0001567892 | ' | ' |
Trading Symbol | 'MNK | ' | ' |
Current Fiscal Year End Date | '--09-27 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 27-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Ordinary Shares Outstanding | ' | 58,002,372 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $0 |
Consolidated_and_Combined_Stat
Consolidated and Combined Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $2,204.50 | $2,056.20 | $2,021.80 |
Cost of sales | 1,179.60 | 1,091.40 | 1,106.90 |
Gross profit | 1,024.90 | 964.8 | 914.9 |
Selling, general and administrative expenses | 609.9 | 551.7 | 532.5 |
Research and development expenses | 165.7 | 144.1 | 141.5 |
Separation costs | 74.2 | 25.5 | 2.9 |
Restructuring charges, net | 33.2 | 11.2 | 8.4 |
Gain on divestiture | -2.9 | -2.9 | -11.1 |
Operating income | 144.8 | 235.2 | 240.7 |
Interest expense | -19.5 | -0.5 | -0.6 |
Interest income | 0.3 | 0.4 | 0.2 |
Other income, net | 0.8 | 1 | 2.9 |
Income from continuing operations before income taxes | 126.4 | 236.1 | 243.2 |
Provision for income taxes | 68.6 | 94.8 | 86.2 |
Income from continuing operations | 57.8 | 141.3 | 157 |
Income (loss) from discontinued operations, net of income taxes | 1 | -6.7 | -6.3 |
Net income | $58.80 | $134.60 | $150.70 |
Basic earnings (loss) per share (Note 8): | ' | ' | ' |
Income from continuing operations (in usd per share) | $1 | $2.45 | $2.72 |
Income (loss) from discontinued operations, net of income taxes (in usd per share) | $0.02 | ($0.12) | ($0.11) |
Net income (in usd per share) | $1.02 | $2.33 | $2.61 |
Basic weighted-average shares outstanding (in shares) | 57.7 | 57.7 | 57.7 |
Diluted earnings (loss) per share (Note 8): | ' | ' | ' |
Income from continuing operations (in usd per share) | $1 | $2.45 | $2.72 |
Income (loss) from discontinued operations, net of income taxes (in usd per share) | $0.02 | ($0.12) | ($0.11) |
Net income (in usd per share) | $1.02 | $2.33 | $2.61 |
Diluted weighted-average shares oustanding (in shares) | 57.8 | 57.7 | 57.7 |
Consolidated_and_Combined_Stat1
Consolidated and Combined Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $58.80 | $134.60 | $150.70 |
Other comprehensive income (loss), net of tax | ' | ' | ' |
Currency translation adjustments | 1.5 | -2.9 | -0.5 |
Unrecognized loss on derivatives, net of $-, $- and $- tax | -7.3 | 0 | 0 |
Unrecognized gain (loss) on benefit plans, net of ($23.9), $4.6 and ($4.5) tax | 34.2 | -10.7 | 12.4 |
Total other comprehensive income (loss), net of tax | 28.4 | -13.6 | 11.9 |
Comprehensive income | $87.20 | $121 | $162.60 |
Consolidated_and_Combined_Stat2
Consolidated and Combined Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Unrecognized loss on derivatives, tax | $0 | $0 | $0 |
Unrecognized gain (loss) on benefit plans, tax | ($23.90) | $4.60 | ($4.50) |
Consolidated_and_Combined_Bala
Consolidated and Combined Balance Sheets (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $275.50 | $0 |
Accounts receivable, less allowance for doubtful accounts of $4.6 and $9.4 | 400.8 | 315.4 |
Inventories | 403.1 | 435.3 |
Deferred income taxes | 171.1 | 119.9 |
Prepaid expenses and other current assets | 134.4 | 31 |
Total current assets | 1,384.90 | 901.6 |
Property, plant and equipment, net | 997.4 | 945.2 |
Goodwill | 532 | 507.5 |
Intangible assets, net | 422.1 | 365.6 |
Other assets | 220.2 | 179 |
Total Assets | 3,556.60 | 2,898.90 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt | 1.5 | 1.3 |
Accounts payable | 120.9 | 112.5 |
Accrued payroll and payroll-related costs | 66.5 | 60.3 |
Accrued branded rebates | 34.6 | 24.3 |
Accrued and other current liabilities | 376.7 | 221.7 |
Total current liabilities | 600.2 | 420.1 |
Long-term debt | 918.3 | 8.9 |
Pension and postretirement benefits | 108 | 189.6 |
Environmental liabilities | 39.5 | 136.5 |
Deferred income taxes | 310.1 | 73.7 |
Other income tax liabilities | 153.1 | 19.4 |
Other liabilities | 171.8 | 158.8 |
Total Liabilities | 2,301 | 1,007 |
Commitments and contingencies | 'Â Â | 'Â Â |
Shareholders' Equity: | ' | ' |
Preferred shares, $0.20 par value, 500,000,000 authorized; none issued or outstanding | 0 | 0 |
Ordinary shares, $0.20 par value, 500,000,000 authorized; 57,713,873 issued; 57,713,390 outstanding | 11.5 | 0 |
Ordinary shares held in treasury at cost, 483 | 0 | 0 |
Additional paid-in capital | 1,102.10 | 0 |
Retained earnings | 33.5 | 0 |
Parent company investment | 0 | 1,807 |
Accumulated other comprehensive income | 108.5 | 84.9 |
Total Shareholders' Equity | 1,255.60 | 1,891.90 |
Total Liabilities and Shareholders' Equity | $3,556.60 | $2,898.90 |
Consolidated_and_Combined_Bala1
Consolidated and Combined Balance Sheets (Parenthetical) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $4.60 | $9.40 |
Preferred shares, par value (in usd per share) | $0.20 | $0 |
Preferred shares, shares authorized (in shares) | 500,000,000 | 0 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Preferred shares, shares outstanding (in shares) | 0 | 0 |
Ordinary shares, par value (in usd per share) | $0.20 | $0 |
Ordinary shares, shares authorized (in shares) | 500,000,000 | 0 |
Ordinary shares, shares issued (in shares) | 57,713,873 | 0 |
Ordinary shares, shares outstanding (in shares) | 57,713,390 | 0 |
Ordinary shares held in treasury (in shares) | 483 | 0 |
Consolidated_and_Combined_Stat3
Consolidated and Combined Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income | $58.80 | $134.60 | $150.70 |
(Income) loss from discontinued operations, net of income taxes | -1 | 6.7 | 6.3 |
Income from continuing operations | 57.8 | 141.3 | 157 |
Adjustments to reconcile net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 139.6 | 130.9 | 119.8 |
Share-based compensation | 16.2 | 10.7 | 10.3 |
Deferred income taxes | -9 | 9 | 36.4 |
Other non-cash items | 10.3 | -10.7 | -11.4 |
Changes in assets and liabilities, net of the effects of acquisitions: | ' | ' | ' |
Accounts receivable, net | -181.2 | -6.8 | 0.7 |
Inventories | 27.7 | -62.8 | 12.2 |
Accounts payable | 7.2 | -8.3 | 4.6 |
Income taxes | 60.7 | 79.4 | 36 |
Accrued and other liabilities | 22.6 | -38.7 | -3.5 |
Other | -16 | 11.8 | 8.1 |
Net cash provided by operating activities | 135.9 | 255.8 | 370.2 |
Cash Flows from Investing Activities: | ' | ' | ' |
Capital expenditures | -147.9 | -144.2 | -120.4 |
Acquisition, net of cash acquired | -88.1 | 0 | 0 |
Purchase of product rights | 0 | -13.2 | 0 |
Other | 1.3 | 5.2 | 7.8 |
Net cash (used in) investing activities | -234.7 | -152.2 | -112.6 |
Cash Flows from Financing Activities: | ' | ' | ' |
Issuance of external debt | 898.1 | 0 | 0 |
Repayment of capital leases | -1.3 | -1.3 | -1.3 |
Debt financing costs | -12 | 0 | 0 |
Excess tax benefit from share-based compensation | 3.4 | 1.7 | 1.8 |
Net transfers to parent | -515.9 | -104 | -258.1 |
Proceeds from exercise of share options | 0.6 | 0 | 0 |
Other | 0.1 | 0 | 0 |
Net cash provided by (used in) financing activities | 373 | -103.6 | -257.6 |
Effect of currency rate changes on cash | 1.3 | 0 | 0 |
Net increase in cash and cash equivalents | 275.5 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 275.5 | 0 | 0 |
Supplemental Disclosures of Cash Flow Information: | ' | ' | ' |
Cash paid for interest, net | 0.8 | 0.6 | 0.6 |
Cash paid for income taxes, net | $15 | $4.90 | $11.60 |
Consolidated_and_Combined_Stat4
Consolidated and Combined Statement of Changes in Shareholders' Equity Statement (USD $) | Total | Ordinary Shares | Additional Paid-In Capital | Retained Earnings | Contributed Surplus | Parent Company Investment | Accumulated Other Comprehensive Income |
In Millions, except Share data | |||||||
Beginning balance, value at Sep. 24, 2010 | $1,835.90 | $0 | ' | ' | ' | $1,749.30 | $86.60 |
Beginning balance, shares at Sep. 24, 2010 | ' | 0 | ' | ' | ' | ' | ' |
Net income | 150.7 | ' | ' | ' | ' | 150.7 | ' |
Currency translation adjustments | -0.5 | ' | ' | ' | ' | ' | -0.5 |
Change in derivatives, net of tax | 0 | ' | ' | ' | ' | ' | ' |
Minimum pension liability, net of tax | 12.4 | ' | ' | ' | ' | ' | 12.4 |
Net transfers to parent | -209.8 | ' | ' | ' | ' | -209.8 | ' |
Ending balance, value at Sep. 30, 2011 | 1,788.70 | 0 | ' | ' | ' | 1,690.20 | 98.5 |
Ending balance, shares at Sep. 30, 2011 | ' | 0 | ' | ' | ' | ' | ' |
Net income | 134.6 | ' | ' | ' | ' | 134.6 | ' |
Currency translation adjustments | -2.9 | ' | ' | ' | ' | ' | -2.9 |
Change in derivatives, net of tax | 0 | ' | ' | ' | ' | ' | ' |
Minimum pension liability, net of tax | -10.7 | ' | ' | ' | ' | ' | -10.7 |
Net transfers to parent | -17.8 | ' | ' | ' | ' | -17.8 | ' |
Ending balance, value at Sep. 28, 2012 | 1,891.90 | 0 | ' | ' | 0 | 1,807 | 84.9 |
Ending balance, shares at Sep. 28, 2012 | 0 | 0 | ' | ' | ' | ' | ' |
Net income | 58.8 | ' | ' | 33.5 | ' | 25.3 | ' |
Currency translation adjustments | 1.5 | ' | ' | ' | ' | ' | 1.5 |
Change in derivatives, net of tax | -7.3 | ' | ' | ' | ' | ' | -7.3 |
Minimum pension liability, net of tax | 34.2 | ' | ' | ' | ' | ' | 34.2 |
Net transfers to parent | -515.9 | ' | ' | ' | ' | -515.9 | ' |
Separation related adjustments | -214.7 | ' | ' | ' | ' | -209.9 | -4.8 |
Transfer of parent company investment to contributed surplus | 0 | ' | ' | ' | 1,106.50 | -1,106.50 | ' |
Transfer of contributed surplus to distributable reserves | 0 | ' | 1,095 | ' | -1,095 | ' | ' |
Share options exercised | 0.6 | ' | 0.6 | ' | ' | ' | ' |
Share-based compensation | 6.5 | ' | 6.5 | ' | ' | ' | ' |
Issuance of ordinary shares, shares | ' | 57,700,000 | ' | ' | ' | ' | ' |
Issuance of ordinary shares, value | 0 | 11.5 | ' | ' | -11.5 | ' | ' |
Ending balance, value at Sep. 27, 2013 | $1,255.60 | $11.50 | $1,102.10 | $33.50 | $0 | $0 | $108.50 |
Ending balance, shares at Sep. 27, 2013 | 57,713,390 | 57,700,000 | ' | ' | ' | ' | ' |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 12 Months Ended | |
Sep. 27, 2013 | ||
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 company that develops, manufactures, markets and distributes both branded and generic specialty pharmaceuticals, active pharmaceutical ingredients ("API") and diagnostic imaging agents. These products are found in almost every hospital, standalone diagnostic imaging center or pharmacy in the United States ("U.S.") and the Company has a commercial presence in approximately 70 countries. The Company believes its extensive commercial reach and formulation expertise, coupled with its ability to navigate the highly regulated and technical nature of its business, have created compelling competitive advantages that it anticipates will sustain future revenue growth. | ||
The Company conducts its business in the following two segments: | ||
• | Specialty Pharmaceuticals produces and markets branded and generic pharmaceuticals and API, comprised of medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients; and | |
• | Global Medical Imaging develops, manufactures and markets contrast media and delivery systems ("CMDS") and radiopharmaceuticals (nuclear medicine). | |
Mallinckrodt plc was incorporated in Ireland on January 9, 2013 for the purpose of holding the Pharmaceuticals business of Covidien plc ("Covidien"). 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"). On July 1, 2013, Mallinckrodt plc began regular way trading on the New York Stock Exchange under the ticker symbol "MNK." | ||
Basis of Presentation | ||
The accompanying consolidated and combined financial statements reflect the consolidated financial position of the Company as an independent, publicly-traded company for periods subsequent to June 28, 2013, and as a combined reporting entity of Covidien, including operations relating to Covidien's Pharmaceuticals business, for periods prior to June 28, 2013. | ||
The consolidated and combined financial statements have been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"). The preparation of the consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ from those estimates. The consolidated and combined financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which they own or control more than fifty percent of the voting shares, or have the ability to control through similar rights. The results of entities disposed of are included in the consolidated and combined financial statements up to the date of disposal and, where appropriate, these operations have been reflected as discontinued operations. Divestitures of product lines not representing businesses have been reflected in operating income. All intercompany balances and transactions have been eliminated in consolidation and, in the opinion of management, all normal recurring adjustments necessary for a fair presentation have been included in the results reported. | ||
Certain amounts from prior years have been reclassified to conform to the current year presentation. The presentation of rebate obligations for Brands products has been reclassified from a reduction to accounts receivable to accrued and other current liabilities in the consolidated and combined balance sheets. | ||
The Company's combined financial statements for periods prior to June 28, 2013, including the nine months ended June 28, 2013 that is included within the Company's fiscal 2013 results, may not be indicative of its future performance and do not necessarily reflect the results of operations, financial position and cash flows that would have been had it operated as an independent, publicly-traded company for the entirety of the periods presented, including as a result of changes in the Company's capitalization in connection with the Separation. The combined financial statements for periods prior to June 28, 2013 include expense allocations for certain functions provided by Covidien, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, employee benefits and incentives, insurance and share-based compensation. These expenses were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of operating expenses, headcount or other measures. The amounts allocated were $39.6 million, $49.2 million and $56.3 million for fiscal 2013, 2012 and 2011, respectively, and were included within selling, general and administrative expenses. Management considers the bases on which the expenses have been allocated to reasonably reflect the utilization of services provided to, or the benefit received by, the Company during the periods presented; however, the allocations may not reflect the expense the Company would have incurred as an independent, publicly-traded company. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, including organizational structure, what functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. The Company is unable to determine what those costs would have been had the Company been independent during the applicable periods. Following the Separation, the Company has performed these functions using its own resources or purchased services, certain of which are being provided by Covidien during a transitional period pursuant to a transition services agreement dated June 28, 2013, between Mallinckrodt and Covidien, particularly in relation to areas outside the U.S. The terms and prices on which such services are rendered may not be as favorable as those that were allocated to the Company by Covidien. The Company also may incur additional costs associated with being an independent, publicly-traded company. These additional anticipated costs are not reflected in the historical combined financial statements for periods prior to June 28, 2013. | ||
The combined balance sheets prior to June 28, 2013 include certain assets and liabilities that have historically been recorded at the Covidien corporate level but are specifically identifiable or otherwise allocable to the Company. The cash and cash equivalents held by Covidien at the corporate level were not specifically identifiable to the Company and, as such, were not allocated to the Company for periods prior to June 28, 2013. Covidien's debt and related interest expense were not allocated to the Company since the Company was not the legal obligor of such debt and Covidien's borrowings were not directly attributable to the Company's business. Debt incurred by the Company directly has been included in the combined financial statements. Intercompany transactions between the Company and Covidien, prior to the Separation, have been included in the combined financial statements and were considered to be effectively settled for cash at the time the transaction was recorded. The total net effect of the settlement of these intercompany transactions was reflected in the combined statements of cash flows as a financing activity and in the combined balance sheet as parent company investment. | ||
Prior to June 28, 2013, Covidien's investment in the Pharmaceuticals business is shown as parent company investment in the combined financial statements. On June 28, 2013, Covidien completed a distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. Upon completion of the Separation, the Company had 57,694,885 ordinary shares outstanding at a par value of $0.20 per share. After Separation adjustments were recorded, the remaining parent company investment balance, which included all earnings prior to the Separation, was transferred to contributed surplus. | ||
Under Irish law, the Company can only pay dividends and repurchase shares out of distributable reserves, as discussed further in the Company's information statement filed with the U.S. Securities and Exchange Commission ("SEC") as Exhibit 99.2 to the Company's Current Report on Form 8-K filed on July 1, 2013. Upon completion of the Separation, the Company did not have any distributable reserves. On July 22, 2013, the Company filed a petition with the High Court of Ireland seeking the court's confirmation of a reduction of the Company's share premium so that it can be treated as distributable for the purposes of Irish law. On September 9, 2013, the High Court of Ireland approved this petition and the High Court's order and minutes were filed with the Registrar of Companies. Upon this filing, the Company's share premium is treated as distributable reserves and the share premium balance was reclassified into additional paid-in capital within the consolidated balance sheet. Net income subsequent to the Separation has been included in retained earnings and is included in distributable reserves. | ||
Preferred Shares | ||
Mallinckrodt is authorized to issue 500,000,000 preferred shares, par value of $0.20 per share, none of which were issued and outstanding at September 27, 2013. 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. | ||
Preferred Share Purchase Rights | ||
Pursuant to the rights agreement entered into on June 28, 2013 with Computershare Trust Company, N.A., as the Rights Agent ("the Rights Agreement"), the Company issued one preferred share purchase right (collectively, "the Rights") for each outstanding ordinary share of the Company to shareholders of record on July 9, 2013. The Rights will not be exercisable until ten days after the public announcement that a person or group has become an "Acquiring Person" by obtaining beneficial ownership of 10% or more of the outstanding ordinary shares of Mallinckrodt plc. The Rights will expire on June 28, 2014. The Rights Agreement and the Rights are discussed further in the Company's Form 8-A filed with the SEC on July 1, 2013. | ||
Fiscal Year | ||
The Company reports its results based on a "52-53 week" year ending on the last Friday of September. Fiscal 2013 and 2012 consisted of 52 weeks and ended on September 27, 2013 and September 28, 2012, respectively. Fiscal 2011 consisted of 53 weeks and ended on September 30, 2011. Unless otherwise indicated, fiscal 2013, 2012 and 2011 refer to the Company's fiscal years ended September 27, 2013, September 28, 2012 and September 30, 2011, respectively. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Sep. 27, 2013 | ||||
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 or upon delivery to the customer site, based on contract terms or legal requirements in non-U.S. jurisdictions. The Company sells products direct to retail pharmacies and end user customers and through distributors who resell the products to retail pharmacies, institutions and end user customers. 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 were $56.5 million, $59.1 million and $57.3 million in fiscal 2013, 2012 and 2011, respectively. | ||||
Research and Development | ||||
Internal research and development costs are expensed as incurred. Research and development expenses include salary and benefits, allocated overhead and occupancy costs, clinical trial and related clinical manufacturing costs, contract services and other costs. | ||||
Upfront and milestone payments made to third parties under license arrangements are expensed as incurred up to the point of regulatory approval of the product. Milestone payments made to third parties upon or subsequent to regulatory approval are capitalized as an intangible asset and amortized to cost of sales over the estimated useful life of the related product. | ||||
Advertising | ||||
Advertising costs are expensed when incurred. Advertising expense was $7.5 million, $8.8 million and $9.7 million in fiscal 2013, 2012 and 2011, respectively, and is included in selling, general and administrative expenses. | ||||
Currency Translation | ||||
For the Company's non-U.S. subsidiaries that transact in a functional currency other than U.S. dollars, assets and liabilities are translated into U.S. dollars using fiscal year-end exchange rates. Revenues and expenses are translated at the average exchange rates in effect during the related month. The net effect of these translation adjustments is shown in the consolidated and combined financial statements as a component of accumulated other comprehensive income. For subsidiaries operating in highly inflationary environments or where the functional currency is different from the local currency, non-monetary assets and liabilities are translated at the rate of exchange in effect on the date the assets and liabilities were acquired or assumed, while monetary assets and liabilities are translated at fiscal year-end exchange rates. Translation adjustments of these subsidiaries are included in net income. Gains and losses resulting from foreign currency transactions are included in net income. Foreign currency losses included within net income for fiscal 2013 and 2011 were $14.2 million and $4.3 million, respectively. The impact of foreign currency on net income in fiscal 2012 was immaterial. | ||||
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 based upon the following estimated useful lives, using the straight-line method: | ||||
Buildings | 10 | to | 50 years | |
Leasehold improvements | 2 | to | 14 years | |
Capitalized software | 1 | to | 14 years | |
Machinery and equipment | 3 | 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 using undiscounted cash flows whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. If an asset is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value of the asset and the present value of future cash flows or other reasonable estimate of 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 value of in-process research and development ("IPR&D") is determined using the discounted cash flow method. In determining the 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 is determined at the time of acquisition and 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 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. As of September 27, 2013, the Company had IPR&D of $18.6 million. As of September 28, 2012, the Company had no IPR&D. | ||||
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 year, or more frequently if impairment indicators arise. The Company utilizes 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 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. The Company allocates 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 using the straight-line method over the following estimated useful lives of the assets: | ||||
Completed technology | 5 | to | 25 years | |
License agreements | 8 | to | 30 years | |
Trademarks | 30 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 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 with their carrying value. The fair value of the intangible asset is estimated using an income approach. If the fair value is less than the carrying value of the intangible asset, the amount recognized for impairment is equal to the difference between the carrying value of the asset and the present value of future cash flows. 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. 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. Indefinite-lived intangible assets are tested for impairment at least annually. | ||||
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 and combined 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. | ||||
Asset Retirement Obligations | ||||
The Company establishes asset retirement obligations for certain assets at the time they are installed. The present value of an asset retirement obligation is recorded as a liability when incurred. The liability is subsequently adjusted in future periods as accretion expense is recorded or as revised estimates of the timing or amount of cash flows required to retire the asset are obtained. The corresponding asset retirement costs are capitalized as part of the carrying value of the related long-lived asset and depreciated over the asset's useful life. The Company's obligations to decommission two facilities upon a cessation of its radiological licensed operations are primarily included on the consolidated and combined balance sheets as other liabilities. | ||||
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 14. | ||||
Income Taxes | ||||
Income taxes for periods prior to the Separation were calculated on a separate tax return basis (inclusive of certain loss benefits), although the Company's operations had historically been included in Covidien's U.S. federal and state tax returns or the tax returns of non-U.S. jurisdictions. Accordingly, the income taxes presented for periods prior to June 28, 2013 do not necessarily reflect the results that would have occurred as an independent, publicly-traded company. With the exception of certain non-U.S. entities, the Company did not maintain taxes payable to or from Covidien and the Company was deemed to settle the annual current tax balances immediately with the legal tax-paying entities in the respective jurisdictions. These settlements were reflected as changes in parent company investment. | ||||
Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been reflected in the consolidated and combined financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax bases of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to reduce net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||
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, including 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 and combined balance sheets as payment is not expected within one year. | ||||
Parent Company Investment | ||||
Parent company investment in the combined balance sheet as of September 28, 2012 represents Covidien's historical investment in the Company, the Company's accumulated net earnings after income taxes for periods prior to that date, and the net effect of transactions with and allocations from Covidien. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 12 Months Ended | |
Sep. 27, 2013 | ||
Recently Issued Accounting Pronouncements [Abstract] | ' | |
Recently Issued Accounting Standards | ' | |
3 | Recently Issued Accounting Standards | |
The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-11 in December 2011, "Disclosures about Offsetting Assets and Liabilities," which was clarified in January 2013 by ASU 2013-01 "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities." This guidance provides new disclosure requirements about instruments and transactions eligible for offset in the statement of financial position, as well as instruments and transactions subject to an agreement similar to a netting agreement, to enable users of financial statements to understand the effects or potential effects of those arrangements on an entity's financial position. The guidance is effective for the Company in the first quarter of fiscal 2014. The Company is still assessing the impact of the pronouncement but does not expect it will have a material impact on its financial condition, results of operations and cash flows. | ||
FASB issued ASU 2013-02, "Reporting Amounts Classified out of Accumulated Other Comprehensive Income," in February 2013. This guidance requires an entity to present, either on the face of the statement of income or separately in the notes to the financial statements, the effects on net income of significant amounts reclassified out of each component of accumulated other comprehensive income, if those amounts are required to be reclassified to net income in their entirety in the same reporting period. For other amounts not required to be reclassified to net income in their entirety, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. The guidance is effective for the Company in the first quarter of fiscal 2014. The Company is still assessing the impact of the pronouncement but does not expect it will have a material impact on its financial condition, results of operations and cash flows. | ||
FASB issued ASU 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date," in February 2013. This update provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance. An entity is required to measure those obligations as the sum of the amount the entity has agreed to pay on the basis of its arrangement among its co-obligors, and any additional amounts it expects to pay on behalf of its co-obligors. The guidance also requires the entity to disclose the nature and amount of those obligations. The guidance is effective for the Company in the first quarter of fiscal 2015. The Company is still assessing the impact of the pronouncement but does not expect it will have a material impact on its financial condition, results of operations and cash flows. |
Discontinued_Operations_and_Di
Discontinued Operations and Divestitures | 12 Months Ended | |
Sep. 27, 2013 | ||
Discontinued Operations and Disposal Groups [Abstract] | ' | |
Discontinued Operations and Divestitures | ' | |
4 | Discontinued Operations and Divestitures | |
Discontinued Operations | ||
During fiscal 2010, the Specialty Chemicals business (formerly known as "Mallinckrodt Baker"), which was part of the Company's Specialty Pharmaceuticals segment, was sold because its products and customer bases were not aligned with the Company's long-term strategic objectives. This business met the discontinued operations criteria and, accordingly, was included in discontinued operations for all periods presented. During fiscal 2013, the Company recorded a gain of $1.0 million and in fiscal 2012 recorded a loss of $6.7 million. This gain and loss were primarily related to the indemnification obligations to the purchaser, which are discussed in Note 17. During fiscal 2011, the Company recorded a $6.3 million loss on the sale of Mallinckrodt Baker, primarily for pension settlements related to employees of this business. | ||
Divestitures | ||
During fiscal 2011, the Company sold the rights to market TussiCaps extended-release capsules, a cough suppressant, for an upfront cash payment of $11.5 million. As a result of this transaction, the Company recorded an $11.1 million gain. The purchaser also may be obligated to make contingent payments to the Company of up to $11.5 million from December 31, 2011 through September 30, 2015, payable in equal quarterly installments until such time as a new competitive generic product is introduced into the market. In addition, the Company would receive a $1.0 million contingent payment if certain sales targets are achieved over the same time period. The Company received $2.9 million of contingent payments during both fiscal 2013 and 2012. | ||
During fiscal 2010, the Company sold its nuclear radiopharmacies in the U.S. In connection with this sale, the Company also entered into a supply agreement, under which the purchaser committed to annual purchase volumes through December 31, 2014. |
Acquisitions_and_License_Agree
Acquisitions and License Agreements | 12 Months Ended | |||||
Sep. 27, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Acquisitions and License Agreements | ' | |||||
5 | Acquisitions and License Agreements | |||||
Business Acquisitions | ||||||
CNS Therapeutics | ||||||
On October 1, 2012, the Company's Specialty Pharmaceuticals segment acquired all the outstanding equity of CNS Therapeutics, Inc. ("CNS Therapeutics"), a specialty pharmaceuticals company focused on developing and commercializing intrathecal products for site-specific administration to the central nervous system to treat neurological disorders and intractable chronic pain, for total consideration of $95.0 million. The total consideration was comprised of an upfront cash payment of $88.1 million (net of cash acquired of $3.6 million) and the fair value of contingent consideration of $6.9 million. This contingent consideration, which could potentially total a maximum of $9.0 million, is discussed further in Note 20. The acquisition of CNS Therapeutics expanded the Company's branded pharmaceuticals portfolio and supports the Company's strategy of leveraging its therapeutic expertise and core capabilities in manufacturing, regulatory and commercialization to serve patients. With the acquisition, the Company now offers products for use in the management of severe spasticity of cerebal or spinal origin with a research and development pipeline of an additional presentation and concentration of Gablofen, as well as other investigational pain products for intrathecal administration. | ||||||
The following amounts represent the final allocation of the fair value of the identifiable assets acquired and liabilities assumed: | ||||||
Current assets (1)Â | $ | 13.3 | ||||
Intangible assets | 91.9 | |||||
Goodwill (non-tax deductible) (2) | 24.5 | |||||
Total assets acquired | 129.7 | |||||
Current liabilities | 4 | |||||
Deferred tax liabilities, net (non-current) | 27.1 | |||||
Contingent consideration (non-current) | 6.9 | |||||
Total liabilities assumed | 38 | |||||
Net assets acquired | $ | 91.7 | ||||
-1 | This amount includes $3.3 million of accounts receivable, which is also the gross contractual value. As of the acquisition date, the fair value of accounts receivable approximated carrying value. | |||||
-2 | Goodwill relates to the Company's ability to exploit CNS Therapeutics' technologies. | |||||
The following reconciles the total consideration to net assets acquired: | ||||||
Total consideration | $ | 95 | ||||
Plus: cash assumed in acquisition | 3.6 | |||||
Less: contingent consideration | (6.9 | ) | ||||
Net assets acquired | $ | 91.7 | ||||
Intangible assets acquired consist of the following: Â | ||||||
Amount | Weighted-Average Amortization Period | |||||
Completed technology | $ | 73.1 | 13 years | |||
Trademark | 0.2 | 3 years | ||||
In-process research and development | 18.6 | Non-Amortizable | ||||
$ | 91.9 | |||||
The in-process research and development projects primarily relate to certain investigational intrathecal pain products. As of the date of acquisition, these pain products were in various stages of development, with further development, testing, clinical trials and regulatory submission required in order to bring them to market. At the acquisition date, the total cost to complete these products was estimated to be approximately $18.0 million. The Company expects that regulatory approvals will occur between 2015 and 2018. The valuation of the in-process research and development was determined using, among other factors, appraisals primarily based on the discounted cash flow method. The cash flows were discounted at a 35% rate, which was considered commensurate with the risks and stages of development of the pain products. Future residual cash flows that could be generated from the products were determined based upon management's estimate of future revenue and expected profitability of the products. These projected cash flows were then discounted to their present values taking into account management's estimate of future expenses that would be necessary to bring the products to completion. | ||||||
The consolidated and combined statement of income for fiscal 2013 contained $29.2 million of net sales of intrathecal products added to the Company's portfolio from the CNS Therapeutics acquisition. Acquisition and integration costs included in the periods presented were not material. The Company does not believe that the results of operations for the periods presented would have been materially different had the acquisition taken place at the beginning of the first period presented. | ||||||
Product Acquisitions | ||||||
Roxicodone | ||||||
In August 2012, the Company's Specialty Pharmaceuticals segment paid $13.2 million under an agreement to acquire all of the rights to Xanodyne Pharmaceuticals, Inc.'s Roxicodone, which was capitalized as an intangible asset. Roxicodone is an immediate-release oral formulation of oxycodone hydrochloride indicated for the management of moderate to severe pain where the use of an opioid analgesic is appropriate. Roxicodone is the Reference Listed Drug for one of the Company's generic products and is important to the Company's product pipeline. Sales of Roxicodone during fiscal 2013 were $8.4 million. There are no ongoing royalty payments under this agreement. | ||||||
License Agreements | ||||||
Exalgo | ||||||
In 2009, the Company's Specialty Pharmaceuticals segment acquired the rights to market and distribute the pain management drug 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 2013, $65.0 million of additional payments have been made, with $55.0 million being capitalized as an intangible asset. The amount capitalized related to the U.S. Food and Drug Administration's ("FDA") approval of the New Drug Application ("NDA") for the 8 mg, 12 mg and 16 mg tablet dosage forms of Exalgo. During fiscal 2012 the Company received FDA approval to market a 32 mg tablet dosage form. The Company is also required to pay royalties on sales of the product. During fiscal 2013, 2012 and 2011, the Company paid royalties of $24.0 million, $16.1 million and $5.5 million, respectively. | ||||||
Depomed | ||||||
In 2009, the Company's Specialty Pharmaceuticals 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 2013, approximately $7.0 million of these payments have been made by the Company. The Company will also pay Depomed a royalty on sales of products developed under this license agreement. During fiscal 2013, subsequent to the FDA's acceptance of our NDA for MNK-795 in July 2013, a milestone payment of $5.0 million was made, for which the FDA granted conditional approval of the brand name Xartemis XR. During fiscal 2012, an insignificant amount of milestone payments were expensed as incurred since regulatory approval had not been received, and no milestone payments were made in fiscal 2011. In addition, no royalties have been paid through fiscal 2013. | ||||||
Pennsaid | ||||||
In 2009, the Company's Specialty Pharmaceuticals segment entered into a licensing agreement which granted it rights to market and distribute Pennsaid and MNK-395, an investigational product candidate that is a formulation of diclofenac sodium topical solution which we anticipate will be indicated for the treatment of pain associated with osteoarthritis of the knee. The Company is responsible for all future development activities and expenses and may be required to make milestone payments of up to $120.0 million based upon the successful completion of specified regulatory and sales milestones. Through fiscal 2013, $15.0 million of these payments were made, all of which were capitalized as an intangible asset as the payment related to the fiscal 2010 FDA approval of the Pennsaid NDA. The Company is also required to pay royalties on sales of the products under this agreement. During fiscal 2013 and 2012, the Company paid royalties of $3.9 million and $7.5 million, respectively, with this product, and the amount of royalties paid in fiscal 2011 was insignificant. |
Restructuring_and_Related_Char
Restructuring and Related Charges | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring and Related Charges | ' | |||||||||||
6 | Restructuring and Related Charges | |||||||||||
During fiscal 2013, the Company launched a restructuring program designed to improve its cost structure ("the 2013 Mallinckrodt Program"). The 2013 Mallinckrodt Program includes actions across all segments, as well as within the corporate functions. The Company expects to incur charges of $100 million to $125 million under this program as the specific actions required to execute on these initiatives are identified and approved, most of which are expected to be incurred by the end of fiscal 2016. Restructuring actions associated with acquisitions made prior to the Separation are included within Other programs below. | ||||||||||||
Prior to Separation, Covidien initiated restructuring programs, which also applied to its Pharmaceutical business. These programs were substantially completed as of September 27, 2013. | ||||||||||||
Net restructuring and related charges by segment are as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Specialty Pharmaceuticals | $ | 16.4 | $ | 11.3 | $ | 6.5 | ||||||
Global Medical Imaging | 16.4 | 7.9 | 3.8 | |||||||||
Corporate | 3 | — | (0.3 | ) | ||||||||
Restructuring and related charges, net | 35.8 | 19.2 | 10 | |||||||||
Less: accelerated depreciation | (2.6 | ) | (8.0 | ) | (1.6 | ) | ||||||
Restructuring charges, net | $ | 33.2 | $ | 11.2 | $ | 8.4 | ||||||
Net restructuring and related charges are comprised of the following: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
2013 Mallinckrodt Program | $ | 14.9 | $ | — | $ | — | ||||||
Other programs | 20.9 | 19.2 | 10 | |||||||||
Total programs | 35.8 | 19.2 | 10 | |||||||||
Less: non-cash charges, including accelerated depreciation | (2.6 | ) | (6.2 | ) | (1.6 | ) | ||||||
Total charges expected to be settled in cash | $ | 33.2 | $ | 13 | $ | 8.4 | ||||||
The following table summarizes cash activity for restructuring reserves, substantially all of which related to employee severance and benefits: | ||||||||||||
2013 Mallinckrodt Program | Other Programs | Total | ||||||||||
Balance at September 24, 2010 | $ | — | $ | 4.5 | $ | 4.5 | ||||||
Charges | — | 9.6 | 9.6 | |||||||||
Changes in estimate | — | (1.2 | ) | (1.2 | ) | |||||||
Cash payments | — | (3.5 | ) | (3.5 | ) | |||||||
Reclassifications (1) | — | (1.6 | ) | (1.6 | ) | |||||||
Currency translation | — | (0.2 | ) | (0.2 | ) | |||||||
Balance at September 30, 2011 | — | 7.6 | 7.6 | |||||||||
Charges | — | 12.8 | 12.8 | |||||||||
Changes in estimate | — | 0.2 | 0.2 | |||||||||
Cash payments | — | (11.5 | ) | (11.5 | ) | |||||||
Reclassifications (1) | — | (0.2 | ) | (0.2 | ) | |||||||
Balance at September 28, 2012 | — | 8.9 | 8.9 | |||||||||
Charges | 14.9 | 20.9 | 35.8 | |||||||||
Changes in estimate | — | (2.6 | ) | (2.6 | ) | |||||||
Cash payments | — | (15.1 | ) | (15.1 | ) | |||||||
Reclassifications (1) | — | (1.5 | ) | (1.5 | ) | |||||||
Balance at September 27, 2013 | $ | 14.9 | $ | 10.6 | $ | 25.5 | ||||||
-1 | Represents the reclassification of pension and other postretirement benefits from restructuring reserves to pension and postretirement obligations, and the transfer of certain restructuring liabilities in conjunction with the Separation. | |||||||||||
Net restructuring and related charges, including associated asset impairments, incurred cumulative to date related to the 2013 Mallinckrodt Program are as follows: | ||||||||||||
Specialty Pharmaceuticals | $ | 2.4 | ||||||||||
Global Medical Imaging | 9.5 | |||||||||||
Corporate | 3 | |||||||||||
$ | 14.9 | |||||||||||
Substantially all of the restructuring reserves are included in accrued and other current liabilities on the Company's consolidated and combined balance sheets. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
7 | Income Taxes | |||||||||||
The U.S. and non-U.S. components of income from continuing operations before income taxes were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 70 | $ | 174.6 | $ | 134.9 | ||||||
Non-U.S. | 56.4 | 61.5 | 108.3 | |||||||||
Total | $ | 126.4 | $ | 236.1 | $ | 243.2 | ||||||
Significant components of income taxes related to continuing operations are as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
U.S.: | ||||||||||||
Federal | $ | 45.7 | $ | 61.1 | $ | 19.2 | ||||||
State | 9.2 | 7.2 | 2.4 | |||||||||
Non-U.S. | 22.7 | 17.5 | 28.2 | |||||||||
Current income tax provision | 77.6 | 85.8 | 49.8 | |||||||||
Deferred: | ||||||||||||
U.S.: | ||||||||||||
Federal | (11.7 | ) | 5.3 | 37.8 | ||||||||
State | (1.2 | ) | 2.4 | 4.3 | ||||||||
Non-U.S. | 3.9 | 1.3 | (5.7 | ) | ||||||||
Deferred income tax (benefit) provision | (9.0 | ) | 9 | 36.4 | ||||||||
$ | 68.6 | $ | 94.8 | $ | 86.2 | |||||||
The reconciliation between U.S. federal income taxes at the statutory rate and the Company's provision for income taxes on continuing operations is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Notional U.S. federal income taxes at the statutory rate | $ | 44.3 | $ | 82.6 | $ | 85.1 | ||||||
Adjustments to reconcile to income tax provision: | ||||||||||||
U.S. state income tax provision, net | 4.8 | 7.1 | 5.9 | |||||||||
Rate difference between non-U.S. and U.S. jurisdictions (1) (2) | (2.2 | ) | (3.5 | ) | (16.8 | ) | ||||||
Domestic manufacturing deduction | (2.5 | ) | (3.0 | ) | — | |||||||
Valuation allowances, nonrecurring | 3.4 | — | — | |||||||||
Adjustments to accrued income tax liabilities and uncertain tax positions (2) | 8.6 | 1.2 | (1.0 | ) | ||||||||
Interest on accrued income tax liabilities and uncertain tax positions (2) | 4.7 | 1.1 | 1.9 | |||||||||
Withholding tax, net | 0.3 | 0.4 | 3.8 | |||||||||
Credits, principally research (3) | (6.2 | ) | (0.8 | ) | (4.1 | ) | ||||||
Permanently nondeductible and nontaxable items | 12 | 8.1 | 8.4 | |||||||||
Other | 1.4 | 1.6 | 3 | |||||||||
Provision for income taxes | $ | 68.6 | $ | 94.8 | $ | 86.2 | ||||||
-1 | Excludes non-deductible charges and other items which are broken out separately in the statutory rate reconciliation presented. Also includes the impact of certain valuation allowances. | |||||||||||
-2 | Includes impact of items relating to entities retained by Covidien in connection with the Separation. | |||||||||||
-3 | Due to the December 31, 2011 tax law expiration, fiscal 2012 includes U.S. Research Credits for only the three months ended December 31, 2011. During fiscal 2013, the legislation was extended, with a retroactive effective date of January 1, 2012. As such, fiscal 2013 includes approximately $2.3 million of credit related to the period January 1, 2012 through September 28, 2012. | |||||||||||
As of September 27, 2013, September 28, 2012 and September 30, 2011, the amounts of unrecognized tax benefits for which the Company is legally and directly liable and would be required to remit cash if not sustained were $100.1 million, $13.4 million and $14.2 million, respectively. For periods prior to the Separation, the Company's operations had been included in tax returns filed by Covidien or certain of its subsidiaries not included in the Company's historical combined financial statements. As a result, some federal uncertain tax positions related to the Company's operations resulted in unrecognized tax benefits that are obligations of entities not included in the combined financial statements for periods prior to June 28, 2013. Because the activities that gave rise to these unrecognized tax benefits relate to the Company's operations, the impact of these items (presented in the table below) were charged to the income tax provision through parent company investment, which was a component of parent company equity in the combined balance sheets. | ||||||||||||
The following table summarizes the activity related to the Company's unrecognized tax benefits, excluding interest: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at beginning of fiscal year | $ | 165.5 | $ | 168.4 | $ | 175.7 | ||||||
Unrecognized tax benefits retained by Covidien | (153.7 | ) | — | — | ||||||||
Unrecognized tax benefits transferred from Covidien | 84.2 | — | — | |||||||||
Additions related to current year tax positions | 3.5 | 1.3 | 2.2 | |||||||||
Additions related to prior period tax positions | 6.6 | 1.6 | 1.1 | |||||||||
Reductions related to prior period tax positions | (4.3 | ) | (1.9 | ) | (3.9 | ) | ||||||
Settlements | (1.6 | ) | (1.7 | ) | (6.7 | ) | ||||||
Lapse of statute of limitations | (0.1 | ) | (2.2 | ) | — | |||||||
Balance at end of fiscal year | 100.1 | 165.5 | 168.4 | |||||||||
Cash advance paid in connection with proposed settlements | — | (23.5 | ) | (23.5 | ) | |||||||
Balance at end of fiscal year, net of cash advance | $ | 100.1 | $ | 142 | $ | 144.9 | ||||||
During fiscal 2011, Covidien made a $35.1 million advance payment to the U.S. Internal Revenue Service ("IRS") in connection with the proposed settlement of certain tax matters. This payment was comprised of $23.5 million of tax and $11.6 million of interest. This amount was retained by Covidien in connection with the Separation. The Company expects to make an advance payment of $30.0 million in fiscal 2014, which is comprised of unrecognized tax benefits, other tax items unrelated to unrecognized tax benefits and associated interest. This amount has been recorded within accrued and other current liabilities as of September 27, 2013. | ||||||||||||
Unrecognized tax benefits, excluding interest, are reported in the following consolidated and combined balance sheet captions in the amount shown: | ||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||
Accrued and other current liabilities | $ | 23.4 | $ | — | ||||||||
Other income tax liabilities | 76.7 | 13.4 | ||||||||||
Parent company investment | — | 152.1 | ||||||||||
$ | 100.1 | $ | 165.5 | |||||||||
The changes in the balance sheet captions between periods in the above table reflects the transfer of the liabilities to the Company from Covidien with the Separation. Pursuant to the separation and distribution agreement ("the Separation and Distribution Agreement") and other agreements, certain assets and liabilities that were formerly associated with the Pharmaceuticals business of Covidien were retained by Covidien and, conversely, certain non-operating assets and liabilities were transferred to the Company. The amounts related to unrecognized tax benefits recorded within parent company investment at the Separation were retained by Covidien, and $84.2 million of liabilities related to unrecognized tax benefits, excluding interest, were transferred to the Company. | ||||||||||||
Included within total unrecognized tax benefits at September 27, 2013, September 28, 2012 and September 30, 2011, there were $96.3 million, $144.3 million and $144.8 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 2013, 2012 and 2011, the Company accrued additional interest of $2.4 million, $1.4 million and $3.8 million, respectively, with no additional penalties accrued during these periods. The total amount of accrued interest related to uncertain tax positions was $62.1 million, $33.9 million and $32.5 million, respectively, with no penalties accrued during these periods. Of the $33.9 million accrued as of September 28, 2012, $26.0 million was included within parent company investment on the combined balance sheet. This amount was retained by Covidien in connection with the Separation and $51.8 million of accrued interest related to unrecognized tax benefits was transferred to the Company. During fiscal 2013 $4.0 million in penalty accruals were transferred to the Company by Covidien in connection with the Separation. | ||||||||||||
It is reasonably possible that within the next twelve months, as a result of the resolution of various federal, state and foreign examinations and appeals and the expiration of various statutes of limitation, that the unrecognized tax benefits that would affect the effective tax rate will decrease by up to $22.6 million. The amount of interest and penalties that will affect the effective tax rate will decrease by up to $15.6 million. | ||||||||||||
Income taxes payable, including uncertain tax positions and related interest accruals, is reported in the following consolidated and combined balance sheet captions in the amounts shown. Non-current other income tax liabilities also includes anticipated refunds and other items not related to uncertain tax positions. | ||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||
Accrued and other current liabilities | $ | 28.2 | $ | 2.6 | ||||||||
Other income tax liabilities | 153.1 | 19.4 | ||||||||||
$ | 181.3 | $ | 22 | |||||||||
Covidien continues to be examined by various taxing authorities for periods the Company was included within the consolidated results of Covidien. The resolution of these tax matters could result in a significant change in the Company's unrecognized tax benefits; however, the Company does not expect that the total amount of unrecognized tax benefits will significantly change over the next twelve months. 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 16. | ||||||||||||
As of September 27, 2013, tax years that remain subject to examination in the Company's major tax jurisdictions are as follows: | ||||||||||||
Jurisdiction | Earliest Open Year | |||||||||||
U.S. - federal and state | 1996 | |||||||||||
Ireland | 2009 | |||||||||||
Netherlands | 2013 | |||||||||||
Switzerland | 2012 | |||||||||||
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 27, 2013 | September 28, 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Accrued liabilities and reserves | $ | 53.8 | $ | 47.4 | ||||||||
Inventories | 30.5 | 36.4 | ||||||||||
Tax loss and credit carryforwards | 53.6 | 1.2 | ||||||||||
Environmental liabilities | 27.3 | 66.4 | ||||||||||
Rebate reserves | 43.4 | 38.1 | ||||||||||
Indemnification reserves | 8.2 | 14.9 | ||||||||||
Postretirement benefits | 30.2 | 67.7 | ||||||||||
Federal and state benefit of uncertain tax positions and interest | 47.1 | 5.7 | ||||||||||
Deferred intercompany interest | 19.2 | — | ||||||||||
Other | 30.8 | 13.9 | ||||||||||
344.1 | 291.7 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant and equipment | (160.5 | ) | (139.9 | ) | ||||||||
Intangible assets | (113.1 | ) | (89.1 | ) | ||||||||
Investment in partnership | (173.6 | ) | — | |||||||||
(447.2 | ) | (229.0 | ) | |||||||||
Net deferred tax (liability) asset before valuation allowances | (103.1 | ) | 62.7 | |||||||||
Valuation allowances | (30.0 | ) | (15.3 | ) | ||||||||
Net deferred tax (liability) asset | $ | (133.1 | ) | $ | 47.4 | |||||||
Deferred taxes are reported in the following consolidated and combined balance sheet captions in the amounts shown: | ||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||
Deferred income taxes (current asset) | $ | 171.1 | $ | 119.9 | ||||||||
Other non-current assets | 7.5 | 3.8 | ||||||||||
Accrued and other current liabilities | (1.6 | ) | (2.6 | ) | ||||||||
Deferred income taxes (non-current liability) | (310.1 | ) | (73.7 | ) | ||||||||
Net deferred tax (liability) asset | $ | (133.1 | ) | $ | 47.4 | |||||||
The Company's current deferred tax asset increased from $119.9 million at September 28, 2012 to $171.1 million at September 27, 2013 primarily due to $16.5 million being transferred to the Company from Covidien in connection with the Separation, $19.2 million of deferred U.S. tax deduction on intercompany interest and $5.8 million related to the acquisition of CNS Therapeutics. Additionally, the Company's noncurrent deferred tax liability increased from $73.7 million at September 28, 2012 to $310.1 million at September 27, 2013, primarily due to $165.1 million being transferred to the Company from Covidien in connection with the Separation and $32.9 million related to the acquisition of CNS Therapeutics. The transfer from Covidien in connection with the Separation was predominately related to an indefinite-lived deferred tax liability of $173.6 million related to the Company’s wholly-owned U.S. operating partnership. | ||||||||||||
At September 27, 2013, the Company had approximately $13.6 million of net operating loss carryforwards in certain non-U.S. jurisdictions, of which $11.4 million have no expiration and the remaining $2.2 million will expire in future years through 2023. The Company had $23.2 million of U.S. federal and state net operating loss carryforwards and $5.4 million of U.S. federal capital loss carryforwards at September 27, 2013, which will expire during fiscal 2014 through 2033. | ||||||||||||
At September 27, 2013 the Company also had $11.4 million of tax credits available to reduce future income taxes payable, primarily in jurisdictions within the U.S., of which $0.6 million have no expiration and the remainder expire during fiscal 2014 through 2033. | ||||||||||||
The deferred tax asset valuation allowances of $30.0 million and $15.3 million at September 27, 2013 and September 28, 2012, respectively, relate principally to the uncertainty of the utilization of certain deferred tax assets, primarily non-US net operating losses, certain reserves in non-U.S. jurisdictions and realized and unrealized capital losses in the U.S. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets. | ||||||||||||
During fiscal 2013, 2012 and 2011, the Company provided for U.S. and non-U.S. income and withholding taxes in the amount of $0.2 million, $0.4 million and $3.8 million, respectively, on earnings that were or are intended to be repatriated. In general, the remaining earnings of the Company's subsidiaries are considered to be permanently reinvested. Income taxes are not provided on undistributed earnings of U.S. and non-U.S. subsidiaries that are either indefinitely reinvested or can be distributed on a tax-free basis. As of September 27, 2013, the cumulative amount of such undistributed earnings was approximately $1.0 billion. It is not practicable to determine the cumulative amount of tax liability that would arise if these earnings were remitted. |
Earnings_Loss_per_Share
Earnings (Loss) per Share | 12 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Earnings (Loss) per Share [Abstract] | ' | ||||||||
Earnings (Loss) per Share | ' | ||||||||
8 | Earnings (Loss) per Share | ||||||||
Basic earnings (loss) per share is computed by dividing net income by the number of weighted-average shares outstanding during the period. Diluted earnings (loss) per share is computed using the weighted-average shares outstanding and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares represents the incremental ordinary shares issuable for restricted share units and share option exercises. The Company calculates the dilutive effect of outstanding restricted share units and share options on earnings (loss) per share by application of the treasury stock method. | |||||||||
The computations of basic and diluted earnings (loss) per share assumes that the number of shares outstanding for periods prior to June 28, 2013 was equal to the number of ordinary shares of Mallinckrodt outstanding on June 28, 2013, immediately following the distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. The dilutive effect of the Company's share-based awards that were issued as a result of the conversion of Covidien share-based awards with the Separation, the initial equity awards granted to certain of the Company's executives on July 1, 2013 and any other Company grants made since the Separation have been included in the computation of diluted earnings per share for fiscal 2013, weighted appropriately for the portion of the period they were outstanding. | |||||||||
2013 | 2012 | 2011 | |||||||
Weighted-average shares for basic earnings (loss) per share | 57.7 | 57.7 | 57.7 | ||||||
Effect of share options and restricted shares | 0.1 | — | — | ||||||
Weighted-average shares for diluted earnings (loss) per share | 57.8 | 57.7 | 57.7 | ||||||
The computation of diluted earnings per share for fiscal 2013 excludes approximately 0.5 million of equity awards because the effect would have been anti-dilutive. |
Inventories
Inventories | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventories | ' | |||||||
9 | Inventories | |||||||
Inventories are comprised of the following at the end of each period:Â | ||||||||
September 27, | September 28, | |||||||
2013 | 2012 | |||||||
Raw materials and supplies | $ | 68.8 | $ | 74.1 | ||||
Work in process | 191.5 | 184.7 | ||||||
Finished goods | 142.8 | 176.5 | ||||||
Inventories | $ | 403.1 | $ | 435.3 | ||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
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 27, 2013 | September 28, 2012 | |||||||
Land | $ | 60.4 | $ | 60 | ||||
Buildings | 316.6 | 297.3 | ||||||
Capitalized software | 76.4 | 59.9 | ||||||
Machinery and equipment | 1,226.60 | 1,152.80 | ||||||
Construction in process | 193.7 | 181.4 | ||||||
1,873.70 | 1,751.40 | |||||||
Less: accumulated depreciation | (876.3 | ) | (806.2 | ) | ||||
Property, plant and equipment, net | $ | 997.4 | $ | 945.2 | ||||
The amounts above include property under capital leases of $17.8 million and $17.0 million at September 27, 2013 and September 28, 2012, respectively, consisting primarily of buildings. Accumulated amortization of capitalized lease assets was $15.8 million and $14.3 million at at the end of fiscal 2013 and 2012, respectively. | ||||||||
Depreciation expense, including amounts related to capitalized leased assets, was $104.2 million, $103.6 million and $92.8 million for fiscal 2013, 2012 and 2011, respectively. Depreciation expense includes depreciation on demonstration equipment of $3.6 million, $3.4 million and $3.9 million for fiscal 2013, 2012 and 2011, respectively. Demonstration equipment is included within other assets on the consolidated and combined balance sheets. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
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: | ||||||||||||||||
Specialty Pharmaceuticals | Global Medical Imaging | Total | ||||||||||||||
Goodwill at September 28, 2012 | $ | 287.8 | $ | 219.7 | $ | 507.5 | ||||||||||
Acquisitions | 24.5 | — | 24.5 | |||||||||||||
Goodwill at September 27, 2013 | $ | 312.3 | $ | 219.7 | $ | 532 | ||||||||||
The gross carrying amount and accumulated amortization of intangible assets at the end of each period were as follows: | ||||||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Amortizable: | ||||||||||||||||
Completed technology | $ | 449.2 | $ | 196.6 | $ | 376.1 | $ | 173.7 | ||||||||
Licenses | 191.1 | 79.3 | 191.1 | 67.1 | ||||||||||||
Trademarks | 7.9 | 3.8 | 7.7 | 3.5 | ||||||||||||
Total | $ | 648.2 | $ | 279.7 | $ | 574.9 | $ | 244.3 | ||||||||
Non-Amortizable: | ||||||||||||||||
Trademarks | $ | 35 | $ | 35 | ||||||||||||
In-process research and development | 18.6 | — | ||||||||||||||
Total | $ | 53.6 | $ | 35 | ||||||||||||
Intangible asset amortization expense was $35.4 million, $27.3 million and $27.0 million in fiscal 2013, 2012 and 2011, respectively. The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows: | ||||||||||||||||
Fiscal 2014 | $ | 35.4 | ||||||||||||||
Fiscal 2015 | 35.4 | |||||||||||||||
Fiscal 2016 | 35.3 | |||||||||||||||
Fiscal 2017 | 33.9 | |||||||||||||||
Fiscal 2018 | 25.2 | |||||||||||||||
Debt
Debt | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
12 | Debt | |||||||
Debt was comprised of the following at the end of each period: | ||||||||
September 27, 2013 | September 28, 2012 | |||||||
Current maturities of long-term debt: | ||||||||
Capital lease obligation | $ | 1.4 | $ | 1.3 | ||||
Loan payable | 0.1 | — | ||||||
Total current debt | 1.5 | 1.3 | ||||||
Long-term debt: | ||||||||
7.00% debentures due December 2013 (1) | — | 5.8 | ||||||
3.50% notes due April 2018 | 299.9 | — | ||||||
9.50% debentures due May 2022 (2) | 10.4 | — | ||||||
8.00% debentures due March 2023 (2) | 8 | — | ||||||
4.75% notes due April 2023 | 598.2 | — | ||||||
Capital lease obligation | 1.8 | 3.1 | ||||||
Total long-term debt | 918.3 | 8.9 | ||||||
Total debt | $ | 919.8 | $ | 10.2 | ||||
-1 | Under the terms of the Separation and Distribution Agreement, the 7.00% debentures due December 2013 were retained by Covidien. | |||||||
-2 | Under the terms of the Separation and Distribution Agreement, the 8.00% and 9.50% debentures due in March 2023 and May 2022, respectively, were transferred to the Company. | |||||||
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 March 2013, MIFSA entered into a $250 million five-year senior unsecured revolving credit facility that matures in June 2018 ("the Credit Facility"). Borrowings under the Credit Facility will initially bear interest at LIBOR plus 1.50% per annum (subject to adjustment pursuant to a ratings-based pricing grid). The Credit Facility contains a $150 million letter of credit sublimit. The Credit Facility is subject to an initial annual facility fee of 0.25%, which is also subject to adjustment pursuant to a ratings-based pricing grid, and the fee applied to outstanding letters of credit is based on the interest rate applied to borrowings. The Credit Facility agreement contains customary affirmative and negative covenants, including a financial maintenance covenant that limits the Company's ratio of debt to earnings before interest, income taxes, depreciation and amortization, as adjusted for certain items, and another financial maintenance covenant that requires the Company's ratio of earnings before interest, income taxes, depreciation and amortization, as adjusted for certain items, to interest expense to exceed certain thresholds. Other nonfinancial covenants restrict, among other things, the Company's ability to create liens, the ability of the non-guarantor subsidiaries to incur additional indebtedness and the ability of the Company to merge or consolidate with any other person or sell or convey certain of its assets to any one person. MIFSA was not permitted to draw upon the Credit Facility until certain conditions were met, including completion of the Separation and Mallinckrodt plc's guaranty of MIFSA's obligations under the Credit Facility. These conditions were satisfied as of June 28, 2013; however, there were no borrowings or letters of credit outstanding under the Credit Facility at September 27, 2013. | ||||||||
In April 2013, MIFSA issued $300 million aggregate principal amount of 3.50% senior unsecured notes due April 2018 and $600 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 as of the completion of the Separation. The Notes are subject to an indenture which contains covenants limiting the ability of MIFSA, its restricted subsidiaries (as defined in the Notes) and Mallinckrodt plc, as guarantor, to incur certain liens or enter into sale and lease-back transactions. It also restricts Mallinckrodt plc and MIFSA's ability to merge or consolidate with any other person or sell or convey all or substantially all of their assets to any one person. MIFSA may redeem all of the Notes at any time, and some of the Notes from time to time, at a redemption price equal to the principal amount of the Notes redeemed plus a make-whole premium. MIFSA will pay interest on the Notes semiannually in arrears on April 15 and October 15 of each year, commencing on October 15, 2013. The net proceeds to MIFSA from the issuance and sale of the Notes was $889.3 million, the majority of which was retained by Covidien per the terms of the Separation and Distribution Agreement. The Notes were issued and sold in a private placement; however, MIFSA is required to register the Notes with the SEC within one year of the issuance of the Notes. | ||||||||
As of September 27, 2013, the Company was, and expects to remain, in compliance with the provisions and covenants associated with its Credit Agreement, the Notes and its other debt agreements. | ||||||||
The Company's capital lease obligation relates to a non-U.S. manufacturing facility. This lease expires in December 2015. The aggregate amounts of debt, including the capital lease obligation, maturing during the next five fiscal years are as follows: | ||||||||
Fiscal 2014 | $ | 1.5 | ||||||
Fiscal 2015 | 1.4 | |||||||
Fiscal 2016 | 0.4 | |||||||
Fiscal 2017 | — | |||||||
Fiscal 2018 | 300 | |||||||
Retirement_Plans
Retirement Plans | 12 Months Ended | |||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||
13 | Retirement Plans | |||||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||||||
The Company sponsors a number of defined benefit retirement plans covering certain of its U.S. employees and non-U.S. employees. As of September 27, 2013, U.S. plans represented 73% of both the Company's total pension plan assets and 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. | ||||||||||||||||||||||||
During fiscal 2013, the Company incurred settlement charges of $6.8 million resulting from lump sum distributions to former employees. During fiscal 2011, the Company incurred settlement charges of $11.1 million resulting from the level of lump-sum payments paid out of one of its U.S. pension plans, a significant portion of which were driven by the divestiture of Mallinckrodt Baker. | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 5 | $ | 5 | $ | 6.2 | $ | 0.1 | $ | 0.1 | $ | 0.2 | ||||||||||||
Interest cost | 18.2 | 21.2 | 23.5 | 2.4 | 3.1 | 3.8 | ||||||||||||||||||
Expected return on plan assets | (29.6 | ) | (24.5 | ) | (25.3 | ) | — | — | — | |||||||||||||||
Amortization of net actuarial loss | 12.3 | 11.7 | 11.8 | 0.3 | 0.2 | 0.5 | ||||||||||||||||||
Amortization of prior service cost | 0.6 | 0.7 | 0.8 | (9.1 | ) | (9.2 | ) | (9.0 | ) | |||||||||||||||
Plan settlements loss | 6.8 | (0.2 | ) | 11.1 | — | — | — | |||||||||||||||||
Curtailments | — | — | 1.9 | — | — | (4.6 | ) | |||||||||||||||||
Special termination benefits | — | — | 0.1 | — | — | — | ||||||||||||||||||
Net periodic benefit cost (credit) | $ | 13.3 | $ | 13.9 | $ | 30.1 | $ | (6.3 | ) | $ | (5.8 | ) | $ | (9.1 | ) | |||||||||
The following table represents the changes in benefit obligations, plan assets and the net amounts recognized on the consolidated and combined balance sheets for pension and postretirement benefit plans at the end of fiscal 2013 and 2012: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Projected benefit obligations at beginning of year | $ | 533.2 | $ | 491.1 | $ | 80.3 | $ | 80.1 | ||||||||||||||||
Service cost | 5 | 5 | 0.1 | 0.1 | ||||||||||||||||||||
Interest cost | 18.2 | 21.2 | 2.4 | 3.1 | ||||||||||||||||||||
Employee contributions | 0.3 | 0.3 | — | — | ||||||||||||||||||||
Actuarial (gain) loss | (24.0 | ) | 53.3 | (9.3 | ) | 2.8 | ||||||||||||||||||
Benefits and administrative expenses paid | (21.9 | ) | (32.3 | ) | (3.8 | ) | (5.8 | ) | ||||||||||||||||
Plan amendments | (9.0 | ) | — | (16.5 | ) | — | ||||||||||||||||||
Plan settlements | (24.2 | ) | (0.3 | ) | — | — | ||||||||||||||||||
Plan combinations | 18.4 | — | — | — | ||||||||||||||||||||
Curtailments | — | — | — | — | ||||||||||||||||||||
Currency translation | 5.7 | (5.1 | ) | — | — | |||||||||||||||||||
Projected benefit obligations at end of year | $ | 501.7 | $ | 533.2 | $ | 53.2 | $ | 80.3 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 432 | $ | 383.6 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets | 17.3 | 63 | — | — | ||||||||||||||||||||
Employer contributions | 44.4 | 23.4 | 3.8 | 5.8 | ||||||||||||||||||||
Employee contributions | 0.3 | 0.3 | — | — | ||||||||||||||||||||
Benefits and administrative expenses paid | (21.9 | ) | (32.3 | ) | (3.8 | ) | (5.8 | ) | ||||||||||||||||
Plan settlements | (24.2 | ) | (0.3 | ) | — | — | ||||||||||||||||||
Plan combinations | 2.3 | — | — | — | ||||||||||||||||||||
Currency translation | 5.8 | (5.7 | ) | — | — | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 456 | $ | 432 | $ | — | $ | — | ||||||||||||||||
Funded status at end of year | $ | (45.7 | ) | $ | (101.2 | ) | $ | (53.2 | ) | $ | (80.3 | ) | ||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Amounts recognized on the consolidated and combined balance sheet: | ||||||||||||||||||||||||
Non-current assets | $ | 17.1 | $ | 17.7 | $ | — | $ | — | ||||||||||||||||
Current liabilities | (3.1 | ) | (2.2 | ) | (4.9 | ) | (7.4 | ) | ||||||||||||||||
Non-current liabilities | (59.7 | ) | (116.7 | ) | (48.3 | ) | (72.9 | ) | ||||||||||||||||
Net amount recognized on the consolidated and combined balance sheet | $ | (45.7 | ) | $ | (101.2 | ) | $ | (53.2 | ) | $ | (80.3 | ) | ||||||||||||
Amounts recognized in accumulated other comprehensive income consist of: | ||||||||||||||||||||||||
Net actuarial loss | $ | (102.9 | ) | $ | (127.5 | ) | $ | (2.4 | ) | $ | (12.1 | ) | ||||||||||||
Prior service credit (cost) | 7.9 | (1.8 | ) | 28.2 | 20.8 | |||||||||||||||||||
Net amount recognized in accumulated other comprehensive income | $ | (95.0 | ) | $ | (129.3 | ) | $ | 25.8 | $ | 8.7 | ||||||||||||||
The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost (credit) in fiscal 2014 are as follows: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
Amortization of net actuarial loss | $ | (8.3 | ) | $ | — | |||||||||||||||||||
Amortization of prior service cost | 0.6 | 9.3 | ||||||||||||||||||||||
The accumulated benefit obligation for all pension plans at the end of fiscal 2013 and 2012 was $499.9 million and $527.6 million, respectively. Additional information related to pension plans is as follows: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Pension plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||
Accumulated benefit obligation | $ | 377.6 | $ | 414.3 | ||||||||||||||||||||
Fair value of plan assets | 316.2 | 295.4 | ||||||||||||||||||||||
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 | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 3.5 | % | 4.4 | % | 4.9 | % | 4 | % | 5.2 | % | 4.7 | % | ||||||||||||
Expected return on plan assets | 7.9 | % | 7.5 | % | 7.6 | % | 3.5 | % | 4 | % | 4 | % | ||||||||||||
Rate of compensation increase | — | 2.8 | % | 2.8 | % | 3.7 | % | 3.7 | % | 3.7 | % | |||||||||||||
Weighted-average assumptions used each fiscal year to determine benefits obligations for the Company's pension plans are as follows: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.3 | % | 3.5 | % | 4.4 | % | 3.7 | % | 4 | % | 5.2 | % | ||||||||||||
Rate of compensation increase | — | — | 2.8 | % | 3.5 | % | 3.7 | % | 3.7 | % | ||||||||||||||
For the Company's U.S. plans, the discount rate is based on the market rate for a broad population of Moody's AA-rated corporate bonds over $250 million. For the Company's non-U.S. plans, the discount rate is generally determined by reviewing country and region specific government and corporate bond interest rates. | ||||||||||||||||||||||||
In determining the expected return on pension plan assets, the Company considers the relative weighting of plan assets by class and individual asset class performance expectations as provided by external advisors in reaching conclusions on appropriate assumptions. The investment strategy for the pension plans had been governed by Covidien for periods prior to the Separation. Covidien's overall investment objective is to obtain a long-term return on plan assets that is consistent with the level of investment risk that is considered appropriate. At this time, the Company's investment objectives are similar to Covidien's. 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: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Net periodic benefit cost | 3.2 | % | 4.1 | % | 4.6 | % | ||||||||||||||||||
Benefit obligations | 4 | % | 3.2 | % | 4.1 | % | ||||||||||||||||||
Healthcare cost trend assumptions for postretirement benefit plans are as follows: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Healthcare cost trend rate assumed for next fiscal year | 7.3 | % | 7.5 | % | ||||||||||||||||||||
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 | $ | 0.1 | $ | (0.1 | ) | |||||||||||||||||||
Effect on postretirement benefit obligation | 0.4 | (0.3 | ) | |||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||
The Company's U.S. pension plans have a target allocation of 42% equity securities and 58% debt securities. Various asset allocation strategies are in place for non-U.S. pension plans depending upon local law, status, funding level and duration of liabilities, and are 39% equity securities, 53% debt securities and 8% other (primarily cash) for our Japanese pension plan and 10% equity securities, 2% debt securities and 88% other (primarily insurance contracts) for our plan in the Netherlands. | ||||||||||||||||||||||||
Pension plans have the following weighted-average asset allocations at the end of each fiscal year: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Equity securities | 42 | % | 58 | % | 7 | % | 8 | % | ||||||||||||||||
Debt securities | 56 | 40 | 3 | 2 | ||||||||||||||||||||
Cash and cash equivalents | 1 | 1 | — | — | ||||||||||||||||||||
Real estate and other | 1 | 1 | 90 | 90 | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
The following tables provide a summary of plan assets held by the Company's pension plans that are measured at fair value on a recurring basis at the end of fiscal 2013 and 2012: | ||||||||||||||||||||||||
Basis of Fair Value Measurement | ||||||||||||||||||||||||
Fiscal 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||
U.S. small mid cap | $ | 19.3 | $ | 19.3 | $ | — | $ | — | ||||||||||||||||
U.S. large cap | 76.9 | 76.9 | — | — | ||||||||||||||||||||
International | 52.2 | 43.9 | 8.3 | — | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Diversified fixed income funds (1) | 170 | 166.7 | 3.3 | — | ||||||||||||||||||||
High yield bonds | 11.7 | 11.7 | — | — | ||||||||||||||||||||
Emerging market funds | 7.9 | 7.9 | — | — | ||||||||||||||||||||
Diversified/commingled funds | — | — | — | — | ||||||||||||||||||||
Insurance contracts | 112 | — | — | 112 | ||||||||||||||||||||
Other | 6 | 3.1 | 2.9 | — | ||||||||||||||||||||
Total | $ | 456 | $ | 329.5 | $ | 14.5 | $ | 112 | ||||||||||||||||
Basis of Fair Value Measurement | ||||||||||||||||||||||||
Fiscal 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||
U.S. small mid cap | $ | 24 | $ | 24 | $ | — | $ | — | ||||||||||||||||
U.S. large cap | 101.2 | 101.2 | — | — | ||||||||||||||||||||
International | 66.8 | 57.2 | 9.6 | — | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Diversified fixed income funds (1) | 97.4 | 97.4 | — | — | ||||||||||||||||||||
High yield bonds | 15.9 | 15.9 | — | — | ||||||||||||||||||||
Emerging market funds | 12 | 12 | — | — | ||||||||||||||||||||
Diversified/commingled funds | 2.2 | — | 2.2 | — | ||||||||||||||||||||
Insurance contracts | 105.1 | — | — | 105.1 | ||||||||||||||||||||
Other | 7.4 | 3.8 | 3.6 | — | ||||||||||||||||||||
Total | $ | 432 | $ | 311.5 | $ | 15.4 | $ | 105.1 | ||||||||||||||||
-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. | ||||||||||||||||||||||||
Diversified/commingled funds. Diversified/commingled funds held by the Company primarily consist of corporate debt securities and mutual funds invested in U.S. and non-U.S. equity securities. The fair value of these investments is determined using other inputs, such as net asset values provided by the fund administrators that can be corroborated by observable market data. | ||||||||||||||||||||||||
Insurance contracts. Insurance contracts held by the Company are issued primarily by Delta Lloyd, a well-known, highly rated insurance company. The fair value of these insurance contracts is based upon the present value of future cash flows under the terms of the contracts and therefore the fair value of these assets has been classified as level 3 within the fair value hierarchy. Significant assumptions used in determining the fair value of these contracts are the amount and timing of future cash flows and counterparty credit risk. The objective of the insurance contracts is to provide the Company with future cash flows that will match the estimated timing and amount of future pension benefit payments. Delta Lloyd's insurance subsidiaries have a Standard & Poor's credit rating of A. | ||||||||||||||||||||||||
Other. Other includes cash and cash equivalents invested in a money market mutual fund, the fair value of which is determined by obtaining quoted prices on nationally recognized securities exchanges (level 1). In addition, other includes real estate funds, the fair value of which is determined using other inputs, such as net asset values provided by the fund administrators that can be corroborated by observable market data (level 2). | ||||||||||||||||||||||||
The following table provides a summary of the changes in the fair value measurements that used significant unobservable inputs (level 3) for fiscal 2013 and 2012: | ||||||||||||||||||||||||
Insurance Contracts | ||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 97.8 | ||||||||||||||||||||||
Net unrealized gains | 15.1 | |||||||||||||||||||||||
Net purchases, sales and issuances | (2.9 | ) | ||||||||||||||||||||||
Currency translation | (4.9 | ) | ||||||||||||||||||||||
Balance at September 28, 2012 | 105.1 | |||||||||||||||||||||||
Net unrealized gains | 3.3 | |||||||||||||||||||||||
Net purchases, sales and issuances | (1.8 | ) | ||||||||||||||||||||||
Currency translation | 5.4 | |||||||||||||||||||||||
Balance at September 27, 2013 | $ | 112 | ||||||||||||||||||||||
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 2013, the Company made $44.4 million in contributions to the Company's pension plans, including a $37.5 million voluntary contribution by Covidien prior to the Separation. The Company does not anticipate making material contributions to its defined benefit pension plans or its postretirement benefit plans during fiscal 2014. | ||||||||||||||||||||||||
Expected Future Benefit Payments | ||||||||||||||||||||||||
Benefit payments expected to be paid, reflecting future expected service as appropriate, are as follows: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
Fiscal 2014 | $ | 40.6 | $ | 4.9 | ||||||||||||||||||||
Fiscal 2015 | 35.1 | 5.2 | ||||||||||||||||||||||
Fiscal 2016 | 34 | 4.9 | ||||||||||||||||||||||
Fiscal 2017 | 33.5 | 4.5 | ||||||||||||||||||||||
Fiscal 2018 | 33 | 4.2 | ||||||||||||||||||||||
Fiscal 2019 - 2023 | 152.9 | 17.4 | ||||||||||||||||||||||
Defined Contribution Retirement Plans | ||||||||||||||||||||||||
The Company maintains one active tax-qualified 401(k) retirement plan in the U.S., which provides for an automatic Company contribution of three percent of an eligible employee's pay. The Company also makes a 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. Total 401(k) expense related to continuing operations was $22.7 million, $20.9 million and $19.3 million for fiscal 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
Deferred Compensation Plans | ||||||||||||||||||||||||
As discussed in Note 20, the Company maintains one active non-qualified deferred compensation plan in the U.S., which permits eligible employees to defer a portion of their compensation. Deferred compensation expense for each period presented was insignificant. | ||||||||||||||||||||||||
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 and combined balance sheets. Note 20 provides additional information regarding the debt and equity securities. The carrying value of the 135 life insurance contracts held by these trusts was $54.6 million and $37.8 million at September 27, 2013 and September 28, 2012, respectively. These contracts have a total death benefit of $143.1 million and $93.9 million at September 27, 2013 and September 28, 2012, respectively. However, there are outstanding loans against the policies amounting to $35.3 million and $16.9 million at September 27, 2013 and September 28, 2012, respectively. | ||||||||||||||||||||||||
The Company has insurance contracts which serve as collateral for certain of the Company's non-U.S. pension plan benefits, which totaled $13.1 million and $9.8 million at September 27, 2013 and September 28, 2012, respectively. These amounts were also included in other assets on the consolidated and combined balance sheets. |
Share_Plans
Share Plans | 12 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Share Plans | ' | ||||||||||||
14 | Share Plans | ||||||||||||
Total share-based compensation cost was $16.2 million, $11.1 million and $10.6 million for fiscal 2013, 2012 and 2011, respectively. These amounts are generally included within selling, general and administrative expenses in the consolidated and combined statements of income; however, the incremental fair value associated with the conversion of Covidien equity awards into Mallinckrodt equity awards discussed below is included in separation costs. The Company recognized a related tax benefit associated with this expense of $5.8 million, $3.8 million and $3.4 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||||||
Incentive Equity Awards Converted from Covidien Awards | |||||||||||||
Prior to the Separation, all employee incentive equity awards were granted by Covidien. At the time of Separation, the restricted share units and share options granted to Mallinckrodt employees prior to June 28, 2013 where converted into restricted share units and share options, respectively, of Mallinckrodt, and all of the performance share awards granted to Mallinckrodt employees were converted to restricted share units of Mallinckrodt (collectively, "the Conversion"). Mallinckrodt incentive equity awards issued upon completion of the Conversion and the related weighted average grant date fair value is presented below: | |||||||||||||
Awards | Weighted-Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Share options | 2,399,822 | $ | 7.96 | ||||||||||
Restricted share units | 575,213 | 38.97 | |||||||||||
Share Options. A summary of the status of the Company's share option awards upon completion of the Conversion on June 28, 2013 is presented below: | |||||||||||||
Shares Options | Weighted- | Weighted- | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding at June 28, 2013 | 2,399,822 | $ | 35.94 | 8 | $ | 22.9 | |||||||
Exercisable at June 28, 2013 | 550,097 | 30.94 | 5.9 | 8 | |||||||||
The Conversion resulted in a modification of the previously issued share option awards. The Company compared the aggregate fair value of the awards immediately before and immediately after the Separation. The fair value of the awards immediately after the Separation was higher than the awards immediately before, primarily due to the elimination of Covidien's dividend yield assumption and the Company's higher volatility as compared to Covidien. The incremental fair value for vested awards was recognized immediately within separation costs, as the incremental fair value is directly attributable to the Separation, and the incremental fair value for unvested awards will be recognized on a straight-line basis over the remaining vesting period of the applicable awards, also within separation costs. | |||||||||||||
The weighted-average assumptions used in the Black-Scholes pricing model for determining the fair value of the share option awards immediately before and immediately after the Separation were as follows: | |||||||||||||
Pre- Separation | Post- Separation | ||||||||||||
Expected share price volatility | 26 | % | 32 | % | |||||||||
Risk-free interest rate | 0.99 | % | 0.99 | % | |||||||||
Expected annual dividend per share | 1.65 | % | — | ||||||||||
Expected life of options (in years) | 3.8 | 3.8 | |||||||||||
Fair value per option | $ | 18.04 | $ | 16.51 | |||||||||
Share option awards | 1,745,258 | 2,399,822 | |||||||||||
Restricted share units. The Conversion resulted in a modification of the previously issued restricted share unit awards ("RSUs"). The Company compared the aggregate fair value of the awards immediately before and immediately after the Separation. The Conversion did not result in incremental fair value. | |||||||||||||
Performance share units. The Conversion resulted in a modification of the previously issued performance share unit awards. The Company compared the aggregate fair value of the awards immediately before and immediately after the Separation. The fair value of the awards was higher after the Conversion as the performance factor utilized to convert the award was higher than what had previously been estimated. The incremental fair value was recognized immediately within separation costs for the service period to date and the remaining incremental fair value will be recognized over the remaining vesting period within separation costs. | |||||||||||||
Stock Compensation Plans | |||||||||||||
Prior to the Separation, the Company adopted the 2013 Mallinckrodt Pharmaceuticals Stock and Incentive Plan ("the 2013 Plan"). The 2013 Plan provides for the award of share options, share appreciation rights, annual performance bonuses, long-term performance awards, restricted units, restricted shares, deferred share units, promissory shares and other share-based awards (collectively, "Awards"). The 2013 Plan provides 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. As of September 27, 2013, all equity awards held by the Company's employees were either converted from Covidien equity awards at the Separation or granted under its 2013 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 | ||||||||||
(in years) | |||||||||||||
Outstanding at June 28, 2013 | 2,399,822 | $ | 35.94 | ||||||||||
Granted | 406,169 | 44 | |||||||||||
Exercised | (17,332 | ) | 30.04 | ||||||||||
Expired/Forfeited | (28,428 | ) | 36.85 | ||||||||||
Outstanding at September 27, 2013 | 2,760,231 | 37.3 | 8.2 | $ | 17.3 | ||||||||
Vested and unvested expected to vest as of September 27, 2013 | 2,394,431 | 37.27 | 8.2 | 15.1 | |||||||||
Exercisable at September 27, 2013 | 536,405 | 31.04 | 5.7 | 6.7 | |||||||||
As of September 27, 2013, there was $22.0 million of total unrecognized compensation cost related to unvested share option awards, which is expected to be recognized over a weighted-average period of 2.3 years. | |||||||||||||
The grant date fair value of share options has been estimated using the Black-Scholes pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. The expected volatility assumption is based on the historical and implied volatility of the Company's peer group with similar business models for periods after the Separation, and on Covidien's peer group with similar business models for periods prior to the Separation. The expected life assumption is based on the contractual and vesting term of the share option, employee exercise patterns and employee post-vesting termination behavior. The expected annual dividend per share is based on the Company's current intentions regarding payment of cash dividends, or Covidien's dividend rate on the date of grant. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The weighted-average assumptions used in the Black-Scholes pricing model for share options granted subsequent to the Separation are included within the discussion of modification expense above. As all stock option awards were granted immediately following the Separation, the valuation assumptions for the modification and subsequent award were consistent. | |||||||||||||
Subsequent to the Separation, the total intrinsic value of share options exercised and the related excess cash tax benefit was not significant. | |||||||||||||
Restricted share units. Recipients of RSUs have no voting rights and receive dividend equivalent units which vest upon the vesting of the related shares. RSUs generally vest in equal annual installments over a period of four years. Restrictions on RSUs lapse upon normal retirement, death or disability of the employee. The grant-date fair value of RSUs, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the service period. The fair market value of RSUs granted after the Conversion is determined based on the market value of the Company's shares on the date of grant for periods after the Separation. | |||||||||||||
RSU activity is as follows: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date Fair Value | |||||||||||||
Non-vested at June 28, 2013 | 575,213 | $ | 38.97 | ||||||||||
Granted | 167,546 | 43.86 | |||||||||||
Vested | (1,656 | ) | 31.28 | ||||||||||
Forfeited | (16,834 | ) | 38.57 | ||||||||||
Non-vested at September 27, 2013 | 724,269 | 40.62 | |||||||||||
The total fair value of Mallinckrodt restricted share unit awards granted during fiscal 2013 following the Separation was $7.3 million. The total fair value of Mallinckrodt restricted share unit awards vested during fiscal 2013 following the Separation was $0.1 million. As of September 27, 2013, there was $18.2 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 2.4 years. | |||||||||||||
Employee Stock Purchase Plans | |||||||||||||
The Company adopted the Mallinckrodt Employee Stock Purchase Plan ("ESPP") effective October 1, 2013. Substantially all full-time employees of the Company's U.S. subsidiaries and employees of certain qualified non-U.S. subsidiaries are eligible to participate in this ESPP. Eligible employees authorize payroll deductions to be made for the purchase of shares. The Company matches a portion of the employee contribution by contributing an additional 15% (25% in fiscal 2014) of the employee's payroll deduction up to a $25,000 employee contribution. All shares purchased under the ESPP are purchased on the open market by a designated broker. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||
15 | 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 24, 2010 | $ | 160.5 | $ | — | $ | (73.9 | ) | $ | 86.6 | |||||||
Pre-tax change | (0.5 | ) | — | 16.9 | 16.4 | |||||||||||
Income tax provision | — | — | (4.5 | ) | (4.5 | ) | ||||||||||
Balance at September 30, 2011 | 160 | — | (61.5 | ) | 98.5 | |||||||||||
Pre-tax change | (2.9 | ) | — | (15.3 | ) | (18.2 | ) | |||||||||
Income tax benefit | — | — | 4.6 | 4.6 | ||||||||||||
Balance at September 28, 2012 | 157.1 | — | (72.2 | ) | 84.9 | |||||||||||
Pre-tax change | 1.5 | (7.3 | ) | 51.4 | 45.6 | |||||||||||
Income tax provision | — | — | (22.0 | ) | (22.0 | ) | ||||||||||
Balance at September 27, 2013 | $ | 158.6 | $ | (7.3 | ) | $ | (42.8 | ) | $ | 108.5 | ||||||
Transactions_with_Former_Paren
Transactions with Former Parent Company | 12 Months Ended | |
Sep. 27, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Transactions with Former Parent Company | ' | |
16 | Transactions with Former Parent Company | |
Prior to the completion of the Separation on June 28, 2013, the Company was part of Covidien and, as such, transactions between Covidien and the Company were considered related party transactions. As discussed in Note 1, these intercompany transactions are included in the combined financial statements and were considered to be effectively settled for cash at the time the transaction was recorded. The continuing relationship between Covidien and the Company is primarily governed through agreements entered into as part of the Separation. The Separation and Distribution Agreement, Tax Matters Agreement and a transition services agreement were filed with the SEC as Exhibits 2.1, 10.1 and 10.3, respectively, to the Company's Current Report on Form 8-K filed on July 1, 2013. The following discusses the related party transactions and those agreements. | ||
Sales and Purchases | ||
During fiscal 2013, 2012 and 2011, the Company sold inventory to Covidien in the amount of $51.2 million, $54.2 million and $52.4 million, respectively, which is included in net sales in the consolidated and combined statements of income. The Company also purchases inventories from Covidien. The Company recognized cost of sales from these inventory purchases of $38.4 million, $34.7 million and $41.1 million during fiscal 2013, 2012 and 2011, respectively. | ||
Allocated Expenses | ||
As discussed in Note 1, the combined financial statements for periods prior to June 28, 2013 include expense allocations for certain functions provided by Covidien, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, employee benefits and incentives, insurance and share-based compensation. These expenses were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of operating expenses, headcount or other measures. The amounts allocated were $39.6 million, $49.2 million and $56.3 million for fiscal 2013, 2012 and 2011, respectively, and are included within selling, general and administrative expenses. | ||
Balance Sheet Impacts | ||
Prior to the Separation, intercompany transactions between the Company and Covidien were considered to be effectively settled for cash at the time the transaction was recorded and were presented within parent company investment in the combined balance sheet. However, at the completion of the Separation on June 28, 2013, certain transactions remained unsettled and were reclassified from parent company investment and included within the assets and liabilities of the Company. The condensed consolidated balance sheet immediately following the Separation included $22.3 million of amounts due to the Company from Covidien and $61.9 million of amounts the Company owes Covidien. Subsequent to the Separation, Covidien made an additional cash contribution for the net difference in these amounts, which was recorded through shareholders' equity. In conjunction with this contribution, each party settled the amounts outstanding immediately following the Separation. | ||
Subsequent to the Separation, the Company and Covidien maintain an ongoing relationship in which each party may provide services to the other party, including the distribution of goods. As a result of these relationships, the consolidated balance sheet as of September 27, 2013 includes $62.2 million of amounts due to the Company from Covidien, within prepaid expenses and other current assets, and $79.3 million of amounts the Company owes Covidien, included within accrued and other liabilities. | ||
In connection with the Separation, the Company recorded separation related adjustments within parent company investment, which represent transfers of certain assets and liabilities with Covidien pursuant to the Separation and Distribution Agreement. The Company has used available information to develop its best estimates for certain assets and liabilities related to the Separation. In limited instances, final determination of the balances will be made in subsequent periods. Any adjustments, if necessary, are not expected to be material and will be recorded through shareholders' equity in subsequent periods when determined. | ||
Separation and Distribution Agreement | ||
On June 28, 2013, the Company entered into a Separation and Distribution Agreement and other agreements with Covidien to effect the Separation and provide a framework for the Company's relationships with Covidien after the Separation. These agreements govern the relationship between Mallinckrodt and Covidien subsequent to the Separation and provide for the assignment to Mallinckrodt of certain of Covidien's assets, liabilities and obligations attributable to periods prior to the Separation. | ||
In general, each party to the Separation and Distribution Agreement assumed liability for all pending, threatened and unasserted legal matters related to its own business or its assumed or retained liabilities and will indemnify the other party for any liability to the extent arising out of, or resulting from, such assumed or retained legal matters. | ||
The Separation and Distribution Agreement provided for the initial cash capitalization of Mallinckrodt in the amount of approximately $168 million at June 28, 2013. The Separation and Distribution Agreement also provided for an adjustment payment to compensate either Mallinckrodt or Covidien, as applicable, to the extent that the aggregate of the Company's cash, indebtedness and specified working capital accounts as of June 28, 2013 ("the Distribution Date"), as well as the capital expenditures made with respect to the Company's business during fiscal 2013 through the Distribution Date, deviated from a target. The target was calculated pursuant to a formula set forth in the Separation and Distribution Agreement, which assumed the Distribution Date would be June 28, 2013, that the Pharmaceuticals business was conducted in the ordinary course through that date and that the Company would have approximately $168 million of cash upon completion of the distribution. The Separation and Distribution Agreement also provided that an adjustment payment would only be payable if the amount of the adjustment payment exceeded $20 million (in which case the entire amount would be paid). Upon final calculation, no adjustment payment was required by either the Company or Covidien. | ||
Tax Matters Agreement | ||
In connection with the Separation, Mallinckrodt entered into the Tax Matters Agreement with Covidien that generally will govern Covidien's and Mallinckrodt's respective rights, responsibilities and obligations after the Separation with respect to certain taxes, including ordinary course of business taxes and taxes, if any, incurred as a result of any failure of the distribution of Mallinckrodt shares to qualify as a tax-free distribution for U.S. federal income tax purposes within the meaning of Section 355 of the U.S. Internal Revenue Code, or other applicable tax law, or any failure of certain internal transactions undertaken in anticipation of the distribution to qualify for tax-free or tax-favored treatment under the applicable tax law. The Company expects, with certain exceptions, to be responsible for the payment of all taxes attributable to Mallinckrodt or its subsidiaries for taxable periods beginning on or after September 29, 2012. For periods prior to September 29, 2012, the Company is subject to a $200 million liability limitation, net of any benefits, as prescribed by the Tax Matters Agreement. To the extent that the Company's liability for such taxes, net of any tax benefits, does not exceed $200 million, it may be responsible for additional taxes attributable to periods prior to September 29, 2012, taxes related to the Separation and a percentage of any taxes arising from the Separation failing to qualify for tax-free or tax-favored treatment through no fault of Covidien or the Company. The Tax Matters Agreement also assigns rights and responsibilities for administrative matters, such as the filing of returns, payment of taxes due, retention of records, tax reporting practices and conduct of audits, examinations or similar proceedings. In addition, the Tax Matters Agreement provides for cooperation and information sharing with respect to tax matters. | ||
The Tax Matters Agreement also contains restrictions on the Company's ability to take actions without Covidien's consent that could cause the Separation or certain internal transactions undertaken in anticipation of the Separation to fail to qualify as tax-free or tax-favored transactions under applicable tax law. These transactions include, but are not limited to, entering into, approving or allowing any transaction that results in a change in ownership of more than 35% of Mallinckrodt's shares; any merger, consolidation, scheme of arrangement, liquidation or partial liquidation, or any approval or allowance of such transaction with respect to certain of the Company's subsidiaries; the cessation or transfer of certain business activities; the sale, issuance or other disposition of any equity interest in certain of the Company's subsidiaries; a sale or other disposition of a substantial portion of the Company's assets or a substantial portion of the assets of certain of the Company's subsidiaries; extraordinary distributions by or to certain of the Company's subsidiaries; or engaging in certain internal transactions. These restrictions will all apply for the two-year period after the Separation and in some cases will apply for periods as long as five years following the Separation. Any taxes imposed on the other party attributable to certain post-distribution actions taken by or in respect of the responsible party or its shareholders that result in failure of the Separation or internal transactions to qualify as tax-free or tax-favored transactions are the responsibility of the party at fault, regardless of whether the actions occur more than two years after the distribution, or whether Covidien consents to such actions. Any actions of the Company or its shareholders that directly give rise to additional taxes are not subject to the $200 million threshold noted previously. | ||
Transition Services Agreement | ||
Mallinckrodt and Covidien entered into a transition services agreement in connection with the Separation pursuant to which Mallinckrodt and Covidien will provide each other, on an interim and transitional basis, various services including, but not limited to, treasury administration, information technology services, non-exclusive distribution and importation services for our products in certain countries outside the U.S., regulatory, general administrative services and other support services. The agreed-upon charges for such services are generally intended to allow the servicing party to recover all out-of-pocket costs and expenses, and include a predetermined profit margin. |
Guarantees
Guarantees | 12 Months Ended | |
Sep. 27, 2013 | ||
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 has no reason to believe that these uncertainties would have a material adverse effect on its financial condition, results of operations and cash flows. | ||
In connection with the sale of 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 and combined balance sheets at September 27, 2013 and September 28, 2012 was $20.1 million and $22.4 million, respectively, of which $17.2 million and $18.3 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 27, 2013 and September 28, 2012. As of September 27, 2013, the maximum future payments the Company could be required to make under these indemnification obligations was $75.5 million. The Company was required to pay $30.0 million into an escrow account as collateral to the purchaser, of which $23.5 million and $24.5 million remained in other assets on the consolidated and combined balance sheets at September 27, 2013 and September 28, 2012, respectively. | ||
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 in the opinion of management, such obligations 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 a $58.0 million surety bond. | ||
In addition, as of September 27, 2013, the Company had a $21.1 million letter of credit to guarantee decommissioning costs associated with its Saint Louis, Missouri plant. As of September 27, 2013, the Company had various other letters of credit and guarantee and surety bonds totaling $38.1 million. | ||
In addition, the Separation and Distribution Agreement 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. 27, 2013 | ||||||||
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 27, 2013, such obligations were as follows: | ||||||||
Fiscal 2014 | $ | 74.9 | ||||||
Fiscal 2015 | 23.7 | |||||||
Fiscal 2016 | 22.3 | |||||||
Fiscal 2017 | — | |||||||
Fiscal 2018 | — | |||||||
The Company is subject to various legal proceedings and claims, including patent infringement claims, product liability matters, environmental matters, employment disputes, contractual disputes and other commercial disputes, including those described below. The Company believes that these legal proceedings and claims likely will be resolved over an extended period of time. Although it is not feasible to predict the outcome of these matters, the Company is of the opinion that their ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
Governmental Proceedings | ||||||||
On January 7, 2009, the Company received a subpoena from the U.S. Attorney's Office for the Northern District of California requesting production of documents relating to the sales and marketing of its Tofranil-PM, Restoril and Magnacet products. In June 2013, the Company agreed to settlement terms in this proceeding providing for a cash payment by the Company of $3.5 million, which was consistent with the Company's previously established accrual. | ||||||||
On November 30, 2011 and October 22, 2012, the Company received subpoenas from the U.S. Drug Enforcement Administration requesting production of documents relating to its suspicious order monitoring programs. The Company is complying as required by the terms of the subpoenas. While it is not possible at this time to determine with certainty the outcome of these proceedings, the Company believes that the ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
Patent/Antitrust Litigation | ||||||||
Tyco Healthcare Group LP, et al. v. Mutual Pharmaceutical Company, Inc. 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") on March 20, 2007 pursuant to procedures set out in the Drug Price Competition and Patent Term Restoration Act of 1984, after Mutual submitted an Abbreviated New Drug Application 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. On January 18, 2013, the trial court issued an opinion and order granting the Company's motion for summary judgment regarding Mutual's antitrust and unfair competition counterclaims. On May 1, 2013, Mutual appealed this decision to the U.S. Court of Appeals for the Federal Circuit. While it is not possible at this time to determine with certainty the ultimate outcome of the counterclaims, the Company believes that the final resolution of the claims will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
Pricing Litigation | ||||||||
Two cases were brought against the Company that allege generally that the Company and numerous other pharmaceuticals companies reported false pricing information in connection with certain drugs that are reimbursable under Medicaid, resulting in overpayment by state Medicaid programs for those drugs. These cases, brought by state Attorneys General in Utah and Louisiana, generally seek monetary damages and attorneys' fees. The Company is named as a defendant in State of Utah v. Actavis US, Inc., et al. filed May 8, 2008, which is pending in the Third Judicial Circuit of Salt Lake County, Utah. The Company was also named in State of Louisiana v. Abbott Laboratories Inc., et al. filed November 3, 2010, which was pending in the 19th Judicial District, Parish of East Baton Rouge, Louisiana. In May 2013, the Company agreed to terms of settlement with the Attorney General for the State of Louisiana resolving all claims in State of Louisiana v. Abbott Laboratories Inc., et al. The settlement did not have a material impact on the Company's consolidated and combined financial statements. The Utah case is pending and the Company intends to contest that case and to explore other options as appropriate. While it is not possible at this time to determine with certainty the outcome of the case, the Company believes that the ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
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 27, 2013, it was probable that it would incur remedial costs in the range of $46.4 million to $81.5 million. The Company also concluded that, as of September 27, 2013, the best estimate within this range was $46.4 million, of which $6.9 million was included in accrued and other current liabilities and the remainder was included in environmental liabilities on the consolidated balance sheet at September 27, 2013. | ||||||||
Orrington, Maine. The Company was a successor to a company which owned and operated a chemical manufacturing facility in Orrington, Maine from 1967 until 1982. As such, the Company was responsible for the costs of completing an environmental site investigation required by the U.S. Environmental Protection Agency ("EPA") and the Maine Department of Environmental Protection. The Company estimated that, as of September 28, 2012, the cost to comply with the proposed remediation alternatives at this site ranged from $95.8 million to $170.3 million. At September 28, 2012, estimated future investigation and remediation costs of $95.8 million were accrued for this site. | ||||||||
In accordance with the Separation and Distribution Agreement, this liability was retained by Covidien, and, therefore, this liability was removed from environmental liabilities as of June 28, 2013, the date the Separation was completed. As the Company no longer manages this case, it will not continue to update its status for further developments. Further information and details on the history of the case can be found in the 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. | ||||||||
Penobscot River and Bay. Since April 2000, the Company had been involved in the lawsuit, Maine People's Alliance and Natural Resources Defense Council, Inc. v. HoltraChem Manufacturing Company, LLC and Mallinckrodt US LLC, filed in the U.S. District Court for the District of Maine by the Natural Resources Defense Council and the Maine People's Alliance. Plaintiffs sought an injunction requiring the Company to conduct extensive studies of mercury contamination of the Penobscot River and Bay and options for remediating such contamination, and to perform appropriate remedial activities, if necessary. | ||||||||
In accordance with the Separation and Distribution Agreement, this liability was retained by Covidien, and, therefore, this liability was removed from environmental liabilities as of June 28, 2013, the date the Separation was completed. As the Company no longer manages this case, it will not continue to update its status for further developments. Further information and details on the history of this case can be found in the 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. | ||||||||
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 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 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. The Company and other PRPs are awaiting completion of the RI/FS by General Dynamics before the initiation of formal PRP negotiations to address resolution of these alleged claims. While it is not possible at this time to determine with certainty the ultimate outcome of this case, the Company believes 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 other former owners, assumed responsibility for the Millsboro Site cleanup under the Alternative Superfund Program administered by the EPA. The Company and other PRPs entered into an Administrative Order on Consent with the EPA on May 10, 2010, which was subsequently amended in November 2010 and January 2011, to investigate the potential source of TCE contamination and to evaluate options to abate, mitigate or eliminate the release or threat of release of hazardous substances at the Millsboro Site. The Company, along with other parties, continues to conduct the studies and prepare remediation plans in accordance with the amended Administrative Order on Consent. While it is not possible at this time to determine with certainty the ultimate outcome of this matter, the Company believes 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. | ||||||||
Coldwater Creek, Saint Louis County, Missouri. The Company is one of several companies named as defendants in six tort complaints (McClurg, et al. v. Mallinckrodt, Inc., et al., filed February 28, 2012; Adams, et al. v. Mallinckrodt, Inc., et al., filed April 10, 2012; Steinmann, et al. v. Mallinckrodt, Inc., et al., filed October 23, 2012; Schneider, et al. v. Mallinckrodt, Inc., et al., filed April 19, 2013; Vorce v. Mallinckrodt, Inc., et al., filed June 18, 2013; and Lange, et al. v. Mallinckrodt, Inc., et al., filed July 31, 2013) 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 present in Coldwater Creek in Missouri. Plaintiffs lived in various locations in Saint Louis County, Missouri near Coldwater Creek. Radiological residues which may have been present in the creek have been remediated by the U.S. Army Corps of Engineers. 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 early stages; (ii) the Company has not received and reviewed complete information regarding the plaintiffs and their medical conditions; and (iii) there are significant factual issues to be resolved. While it is not possible at this time to determine with certainty the ultimate outcome of these cases, the Company believes that the final resolution of all known claims will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
Products Liability Litigation | ||||||||
The Company is one of four manufacturers of Gadolinium-Based Contrast Agents, such as the Company's Optimark product, involved in litigation alleging that administration of these agents causes development of nephrogenic systemic fibrosis in a small number of patients with advanced renal impairment. In May 2013, the Company agreed to terms of settlement with the plaintiffs in all of its previously disclosed lawsuits involving its Optimark product. These settlements resolved cases that were included in federal multi-district litigation pending in the U.S. District Court for the Northern District of Ohio (In re Gadolinium-Based Contrast Agents Product Liability Litigation, which was established on February 27, 2008) and cases in various state courts. These settlements did not have a material impact on the Company's consolidated and combined financial statements. | ||||||||
Beginning with lawsuits brought in July 1976, the Company is also named as a defendant in personal injury lawsuits based on alleged exposure to asbestos-containing materials. A majority of the cases involve product liability claims based principally on allegations of past distribution of products containing asbestos. A limited number of the cases allege premises liability based on claims that individuals were exposed to asbestos while on the Company's property. Each case typically names dozens of corporate defendants in addition to the Company. The complaints generally seek monetary damages for personal injury or bodily injury resulting from alleged exposure to products containing asbestos. The Company's involvement in asbestos cases has been limited because it did not mine or produce asbestos. Furthermore, in the Company's experience, a large percentage of these claims have never been substantiated and have been dismissed by the courts. The Company has not suffered an adverse verdict in a trial court proceeding related to asbestos claims and intends to continue to defend these lawsuits. When appropriate, the Company settles claims; however, amounts paid to settle and defend all asbestos claims have been immaterial. As of September 27, 2013, there were approximately 11,500 asbestos-related cases pending against the Company. | ||||||||
The Company estimates pending asbestos claims and claims that were incurred but not reported and related insurance recoveries, which are recorded on a gross basis in the consolidated and combined balance sheet. The Company's estimate of its liability for pending and future claims is based on claims experience over the past five years and covers claims either currently filed or expected to be filed over the next seven years. The Company believes that it has adequate amounts recorded related to these matters. While it is not possible at this time to determine with certainty the ultimate outcome of these asbestos-related proceedings, the Company believes that the final outcome of all known and anticipated future claims, after taking into account amounts already accrued, along with recoveries from insurance, will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
Asset Retirement Obligations | ||||||||
The Company has recorded asset retirement obligations for the estimated future costs primarily associated with legal obligations to decommission facilities within the Global Medical Imaging segment, including the facilities located in the Netherlands and Maryland Heights, Missouri. Substantially all of these obligations are included in other liabilities on the consolidated and combined balance sheets. The following table provides a summary of the changes in the Company's asset retirement obligations for fiscal 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Balance at beginning of period | $ | 46.4 | $ | 45.9 | ||||
Additions | 0.4 | — | ||||||
Accretion expense | 2.9 | 2.5 | ||||||
Payments | (0.2 | ) | — | |||||
Currency translation | 1.1 | (2.0 | ) | |||||
Balance at end of period | $ | 50.6 | $ | 46.4 | ||||
The Company believes that any potential payment of such estimated amounts will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
Leases | ||||||||
The Company has facility, vehicle and equipment leases that expire at various dates. Rental expense under facility, vehicle and equipment operating leases related to continuing operations was $16.9 million, $15.5 million and $14.4 million for fiscal 2013, 2012 and 2011, respectively. The Company also has facility and equipment commitments under capital leases. | ||||||||
The following is a schedule of minimum lease payments for non-cancelable leases as of September 27, 2013: | ||||||||
Operating Leases | Capital | |||||||
Leases | ||||||||
Fiscal 2014 | $ | 19.3 | $ | 1.5 | ||||
Fiscal 2015 | 13.3 | 1.5 | ||||||
Fiscal 2016 | 10.4 | 0.4 | ||||||
Fiscal 2017 | 8.7 | — | ||||||
Fiscal 2018 | 4.8 | — | ||||||
Thereafter | 10.2 | — | ||||||
Total minimum lease payments | $ | 66.7 | 3.4 | |||||
Less: interest portion of payments | (0.2 | ) | ||||||
Present value of minimum lease payments | $ | 3.2 | ||||||
The Company exchanged title to $11.3 million of its plant assets in return for an equal amount of Industrial Revenue Bonds ("IRB") issued by the Saint Louis County. The Company also simultaneously leased such assets back from Saint Louis County under a capital lease expiring December 2022, the terms of which provide the Company with the right of offset against the IRBs. The lease also provides an option for the Company to repurchase the assets at the end of the lease for nominal consideration. These transactions collectively result in a property tax abatement ten years from the date the property is placed in service. Due to right of offset, the capital lease obligation and IRB asset are recorded net in the consolidated and combined balance sheets and excluded from the above table. The Company expects that the right of offset will be applied to payments required under these arrangements. | ||||||||
Tax Matters | ||||||||
The income tax returns of the Company and its subsidiaries are periodically examined by various tax authorities. The resolution of these matters is subject to the conditions set forth in the Tax Matters Agreement between the Company and Covidien. Covidien has the right to administer, control and settle all U.S. income tax audits for periods prior to the Separation. While it is not possible at this time to determine with certainty the ultimate outcome of these matters, the Company believes that established liabilities are reasonable and that final resolution of these matters will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
With respect to certain tax returns filed by predecessor affiliates of the Company and Covidien, the IRS has concluded its field examination for the years 1997 through 2000 and has proposed tax adjustments. Several of the proposed adjustments could also affect both Covidien's and the Company's income tax returns for years after 2000. Certain of the IRS's proposed adjustments have been appealed, and all but one of the matters associated with the proposed tax adjustments have been resolved. The unresolved proposed adjustment asserts that substantially all of the predecessor affiliates' intercompany debt originating during the years 1997 through 2000 should not be treated as debt for U.S. federal income tax purposes, and has disallowed interest deductions related to the intercompany debt and certain tax attribute adjustments recognized on the U.S. income tax returns. This matter is subject to the Company's $200 million limitation for periods prior to September 29, 2012, as prescribed in the Tax Matters Agreement. While it is not possible at this time to determine with certainty the ultimate outcome of this matter, the Company believes that it will not have a material adverse effect on its financial condition, results of operations and cash flows. | ||||||||
Other Matters | ||||||||
The Company is a defendant in a number of other pending legal proceedings relating to present and former operations, acquisitions and dispositions. The Company does not expect the outcome of these proceedings, either individually or in the aggregate, to have a material adverse effect on its financial condition, results of operations and cash flows. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ' | |||||||||||
Derivative Instruments | ' | |||||||||||
19 | Derivative Instruments | |||||||||||
The Company is exposed to certain risks relating to its business operations. Prior to the Separation on June 28, 2013, the Company participated in the centralized hedging functions of Covidien to help mitigate risks related to foreign exchange exposure and certain commodity price exposures. Foreign currency option and forward contracts were used to manage the foreign exchange exposures of operations outside the U.S. Swap contracts on commodities were periodically entered into to manage the price risk associated with forecasted purchases of commodities used in the Company's manufacturing processes. The associated derivative assets and liabilities for these types of instruments were not included on the Company's combined balance sheet prior to June 28, 2013, since derivative activity was centrally managed by Covidien. In conjunction with the Separation, the Company assumed the foreign currency forward and option contacts directly related to its business and, as such, has recognized the fair value of the these derivatives in its consolidated balance sheet as of September 27, 2013. The commodity swap contracts were retained by Covidien. Changes in the fair value of the derivative financial instruments which related to the Company's business operations have been recognized in the Company's earnings unless specific hedge criteria are met. Covidien designated certain commodity swap contracts as cash flow hedges but did not designate the foreign currency forward and option contracts as hedging instruments. | ||||||||||||
Risks that relate to interest rate exposure were managed by using derivative instruments. In March 2013 and April 2013, MIFSA entered into forward interest rate lock contracts to hedge the risk of variability in the market interest rates prior to the issuance of the Notes in April 2013. These transactions have been reflected in the consolidated and combined financial statements for all periods, since the transactions were solely entered into in connection with the Separation and were not centrally managed by Covidien. | ||||||||||||
Foreign Exchange Exposure | ||||||||||||
The Company has foreign exchange exposure on the translation of the financial statements and on transactions denominated in foreign currencies. The Company's policy is to use various forward and option contracts to manage foreign currency exposures on accounts and notes receivable, accounts payable, intercompany loans, intercompany cash pooling arrangements and forecasted transactions that are denominated in certain foreign currencies. These contracts did not meet the necessary criteria to qualify for hedge accounting; accordingly, all associated changes in fair value were recognized in earnings. | ||||||||||||
The location and amount of the net gain (loss) on foreign exchange forward and option contracts not designated as hedging instruments was recorded as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cost of sales | $ | 2.2 | $ | (0.3 | ) | $ | (3.7 | ) | ||||
Selling, general and administrative | — | 0.1 | 0.1 | |||||||||
Other income, net | 8.3 | — | — | |||||||||
$ | 10.5 | $ | (0.2 | ) | $ | (3.6 | ) | |||||
Foreign currency losses included within net income for fiscal 2013 and 2011 were $14.2 million and $4.3 million, respectively. The impact of foreign currency on net income in fiscal 2012 was immaterial. | ||||||||||||
The fair value of foreign exchange forward contracts are included in the following captions of our consolidated and combined balance sheets at the end of each period: | ||||||||||||
27-Sep-13 | September 28, 2012 | |||||||||||
Prepaid expenses and other current assets | $ | 0.9 | $ | — | ||||||||
Accrued and other current liabilities | 1.4 | — | ||||||||||
Commodities Exposure | ||||||||||||
Prior to the Separation, Covidien entered into gas commodity swap contracts on behalf of the Company, which were accounted for as cash flow hedges. The amounts of the net losses on these contracts were recorded as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cost of sales | $ | 0.3 | $ | 0.9 | $ | 0.8 | ||||||
Selling, general and administrative | 0.8 | 2.3 | 2.4 | |||||||||
$ | 1.1 | $ | 3.2 | $ | 3.2 | |||||||
As of September 27, 2013, there were no outstanding gas commodity swap contracts; however, the Company may utilize such contracts in the future to mitigate price risk associated with its forecasted commodity purchases. | ||||||||||||
Interest Rate Exposure | ||||||||||||
MIFSA entered into three forward interest rate lock contracts in March 2013 and April 2013, each with a $300 million notional value and designated as cash flow hedges, against the risk of variability in market interest rates in advance of its anticipated issuance of its ten-year fixed rate senior notes due April 2023. Each interest rate lock contract was considered to be highly effective and the $7.6 million loss resulting from their settlements was recorded in accumulated other comprehensive income. As of September 27, 2013, $7.3 million of this loss remains in accumulated other comprehensive income and will be amortized to interest expense over the remaining term of the ten-year notes. |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial Instruments and Fair Value Measurements | ' | |||||||||||||||
20 | Financial Instruments and Fair Value Measurements | |||||||||||||||
Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs used in measuring fair value. The levels within the hierarchy are as follows: | ||||||||||||||||
Level 1— observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||
Level 2— significant other observable inputs that are observable either directly or indirectly; and | ||||||||||||||||
Level 3— significant unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. | ||||||||||||||||
The following tables provide a summary of the significant assets and liabilities that are measured at fair value on a recurring basis at the end of each period: | ||||||||||||||||
September 27, | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Debt and equity securities held in rabbi trusts | $ | 35.3 | $ | 22.6 | $ | 12.7 | $ | — | ||||||||
Foreign exchange forward and option contracts | 0.9 | 0.9 | — | — | ||||||||||||
$ | 36.2 | $ | 23.5 | $ | 12.7 | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Deferred compensation liabilities | $ | 13.5 | $ | — | $ | 13.5 | $ | — | ||||||||
Contingent consideration | 6.9 | — | — | 6.9 | ||||||||||||
Foreign exchange forward and option contracts | 1.4 | 1.4 | — | — | ||||||||||||
$ | 21.8 | $ | 1.4 | $ | 13.5 | $ | 6.9 | |||||||||
September 28, | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Debt and equity securities held in rabbi trusts | $ | 25.2 | $ | 13.7 | $ | 11.5 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation liabilities | $ | 9.3 | $ | — | $ | 9.3 | $ | — | ||||||||
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. The $10.1 million increase in debt and equity securities held in rabbi trust primarily reflects the transfer of these assets from Covidien in connection with the Separation. | ||||||||||||||||
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. Covidien 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 measurement funds generally correspond to the funds offered in Covidien's U.S. tax-qualified defined contribution retirement plan and the account balance fluctuates with the investment returns on those funds. | ||||||||||||||||
Contingent consideration. 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%. There were no changes to the initial estimate of the fair value of the consideration during fiscal 2013. | ||||||||||||||||
Balance at September 28, 2012 | $ | — | ||||||||||||||
Fair value of contingent consideration | 6.9 | |||||||||||||||
Balance at September 27, 2013 | $ | 6.9 | ||||||||||||||
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 $24.0 million and $24.6 million as of September 27, 2013 and September 28, 2012, respectively (level 1), substantially all of which is included in other assets on the consolidated and combined balance sheets. The Company's life insurance contracts are carried at cash surrender value, which is based on the present value of future cash flows under the terms of the contracts (level 3). Significant assumptions used in determining the cash surrender value include the amount and timing of future cash flows, interest rates and mortality charges. The fair value of these contracts approximates the carrying value of $67.7 million and $47.6 million at September 27, 2013 and September 28, 2012, respectively. These contracts are included in other assets on the consolidated and combined balances sheets. The $20.1 million increase in the Company's life insurance contracts primarily reflects the transfer of these assets from Covidien in connection with the Separation. | ||||||||||||||||
The carrying value of the Company's loan payable approximates fair value due to its short term nature. Since the quoted market prices for the Company's 7.00%, 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% and 4.75% 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 27, 2013 | September 28, 2012 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Loan payable | $ | 0.1 | $ | 0.1 | $ | — | $ | — | ||||||||
7.00% debentures due December 2013 | — | — | 5.8 | 5.8 | ||||||||||||
3.50% notes due April 2018 | 299.9 | 293.7 | — | — | ||||||||||||
9.50% debentures due May 2022 | 10.4 | 14.3 | — | — | ||||||||||||
8.00% debentures due March 2023 | 8 | 10.2 | — | — | ||||||||||||
4.75% notes due April 2023 | 598.2 | 568.5 | — | — | ||||||||||||
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. Deteriorating credit and economic conditions in parts of Western Europe, particularly in Spain and Italy, may continue to increase the average length of time it takes the Company to collect its accounts receivables in certain regions within these countries. | ||||||||||||||||
The Company routinely evaluates all government receivables for potential collection risks associated with the availability of government funding and reimbursement practices. The Company has not incurred any significant losses on government receivables; however, if the financial condition of customers or the countries' healthcare systems continue to deteriorate such that their ability to make payments is uncertain, additional allowances may be required in future periods. | ||||||||||||||||
The Company's accounts receivable, net of allowance for doubtful accounts, in Spain and Italy at the end of each period are as follows: | ||||||||||||||||
September 27, | September 28, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Spain | $ | 9.2 | $ | 15 | ||||||||||||
Italy | 12.6 | 12.5 | ||||||||||||||
Net sales to customers in Spain and Italy totaled $51.7 million, $55.0 million and $60.2 million for fiscal 2013, 2012 and 2011, respectively. | ||||||||||||||||
The following table shows net sales attributable to distributors that accounted for 10% or more of the Company's total net sales: | ||||||||||||||||
Fiscal Year | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Cardinal Health, Inc. | 18 | % | 19 | % | 19 | % | ||||||||||
McKesson Corporation | 15 | % | 14 | % | 13 | % | ||||||||||
Amerisource Bergen Corporation | 9 | % | 9 | % | 10 | % | ||||||||||
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 27, | September 28, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Cardinal Health, Inc. | 18 | % | 19 | % | ||||||||||||
McKesson Corporation | 22 | % | 20 | % | ||||||||||||
Amerisource Bergen Corporation | 14 | % | 10 | % | ||||||||||||
 The following table shows net sales attributable to products that accounted for 10% or more of the Company's total net sales: | ||||||||||||||||
Fiscal Year | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Optiray (CMDS) | 14 | % | 17 | % | 19 | % | ||||||||||
Acetaminophen products (API) | 10 | % | 11 | % | 11 | % | ||||||||||
Molybdenum-99 ("Mo-99") is a key raw material in the Company's Ultra-Technekow DTE technetium generators that are sold by its Global Medical Imaging segment. There are only eight suppliers of this raw material worldwide. The Company has agreements to obtain Mo-99 from three nuclear research reactors and relies predominantly upon two of these reactors for its Mo-99 supply. Accordingly, a disruption in the commercial supply or a significant increase in the cost of this material from these sources could have a material adversed effect on the Company's financial condition, results of operations and cash flows. |
Segment_and_Geographical_Data
Segment and Geographical Data | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment and Geographical Data | ' | |||||||||||
21 | Segment and Geographical Data | |||||||||||
The Company is engaged in the development, manufacture and distribution of pharmaceuticals and diagnostic imaging agents. The Company manages and operates its business through the following two segments: | ||||||||||||
• | Specialty Pharmaceuticals produces and markets branded and generic pharmaceuticals and API, comprised of medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients; and | |||||||||||
• | Global Medical Imaging develops, manufactures and markets CMDS and radiopharmaceuticals (nuclear medicine). | |||||||||||
Management measures and evaluates the Company's operating segments based on segment net sales and operating income. Management excludes corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. These items include revenues and expenses associated with sales of products to Covidien, intangible asset amortization, net restructuring and related charges, and separation costs. Although these amounts are excluded from segment operating income, as applicable, they are included in reported consolidated and combined operating income and in the reconciliations presented below. Selected information by business segment is as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales: | ||||||||||||
Specialty Pharmaceuticals | $ | 1,217.60 | $ | 1,005.20 | $ | 909.4 | ||||||
Global Medical Imaging | 935.7 | 996.8 | 1,060.00 | |||||||||
Net sales of operating segments (1) | 2,153.30 | 2,002.00 | 1,969.40 | |||||||||
Other (2) | 51.2 | 54.2 | 52.4 | |||||||||
Net sales | $ | 2,204.50 | $ | 2,056.20 | $ | 2,021.80 | ||||||
Operating income: | ||||||||||||
Specialty Pharmaceuticals | $ | 311.7 | $ | 162.8 | $ | 121.5 | ||||||
Global Medical Imaging | 112.3 | 214.3 | 232.4 | |||||||||
Segment operating income | 424 | 377.1 | 353.9 | |||||||||
Unallocated amounts: | ||||||||||||
Corporate and allocated expenses (3)Â Â Â Â Â Â Â Â Â Â | (133.8 | ) | (69.9 | ) | (73.3 | ) | ||||||
Intangible asset amortization | (35.4 | ) | (27.3 | ) | (27.0 | ) | ||||||
Restructuring and related charges, net (4) | (35.8 | ) | (19.2 | ) | (10.0 | ) | ||||||
Separation costs | (74.2 | ) | (25.5 | ) | (2.9 | ) | ||||||
Operating income | $ | 144.8 | $ | 235.2 | $ | 240.7 | ||||||
Total assets: | ||||||||||||
Specialty Pharmaceuticals | $ | 1,666.60 | $ | 1,571.60 | ||||||||
Global Medical Imaging | 1,158.60 | 1,085.70 | ||||||||||
Corporate (5) | 731.4 | 241.6 | ||||||||||
Total assets | $ | 3,556.60 | $ | 2,898.90 | ||||||||
Depreciation and amortization (6): | ||||||||||||
Specialty Pharmaceuticals | $ | 97.6 | $ | 88.7 | $ | 77.5 | ||||||
Global Medical Imaging | 42 | 42.2 | 42.3 | |||||||||
Depreciation and amortization | $ | 139.6 | $ | 130.9 | $ | 119.8 | ||||||
-1 | Amounts represent sales to external customers. There were no intersegment sales. | |||||||||||
-2 | Represents products that were sold to Covidien, which is discussed in Note 16. | |||||||||||
-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 of $2.6 million, $8.0 million and $1.6 million for fiscal 2013, 2012 and 2011, respectively. | |||||||||||
-5 | Consists of assets used in managing the Company's total business and not allocated to any one segment. | |||||||||||
-6 | Depreciation for certain shared facilities is allocated based on occupancy percentage. | |||||||||||
Net sales by business within the Company's segments are as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Generics and API | $ | 1,011.20 | $ | 848.8 | $ | 824.7 | ||||||
Brands | 206.4 | 156.4 | 84.7 | |||||||||
Specialty Pharmaceuticals | 1,217.60 | 1,005.20 | 909.4 | |||||||||
Contrast Media and Delivery Systems | 498.1 | 542 | 595.5 | |||||||||
Nuclear Imaging | 437.6 | 454.8 | 464.5 | |||||||||
Global Medical Imaging | 935.7 | 996.8 | 1,060.00 | |||||||||
Net sales of operating segments | 2,153.30 | 2,002.00 | 1,969.40 | |||||||||
Other (1) | 51.2 | 54.2 | 52.4 | |||||||||
Net sales | $ | 2,204.50 | $ | 2,056.20 | $ | 2,021.80 | ||||||
-1 | Represents products that were sold to Covidien, which is discussed in Note 16. | |||||||||||
Selected information by geographic area is as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales (1): | ||||||||||||
U.S. | $ | 1,518.70 | $ | 1,350.20 | $ | 1,293.80 | ||||||
Europe, Middle East and Africa | 404.3 | 411 | 419.7 | |||||||||
Other | 281.5 | 295 | 308.3 | |||||||||
$ | 2,204.50 | $ | 2,056.20 | $ | 2,021.80 | |||||||
Long-lived assets (2): | ||||||||||||
U.S. | $ | 893.3 | $ | 847.7 | $ | 802 | ||||||
Europe, Middle East and Africa (3) | 81 | 72.2 | 81.3 | |||||||||
Other | 51.8 | 52.1 | 48.1 | |||||||||
$ | 1,026.10 | $ | 972 | $ | 931.4 | |||||||
-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 $48.7 million, $45.5 million and $48.9 million at the end of fiscal 2013, 2012 and 2011, respectively. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
22 | Selected Quarterly Financial Data (Unaudited) | |||||||||||||||
Fiscal 2013 (by quarter) | ||||||||||||||||
Q1 | Q2 | Q3 (1) | Q4 | |||||||||||||
Net sales | $ | 504 | $ | 585.3 | $ | 570 | $ | 545.2 | ||||||||
Gross profit | 233.5 | 273.5 | 265.8 | 252.1 | ||||||||||||
Income (loss) from continuing operations | 19.8 | 34.5 | (27.7 | ) | 31.2 | |||||||||||
(Loss) income from discontinued operations | (0.6 | ) | (0.5 | ) | (0.2 | ) | 2.3 | |||||||||
Net income (loss) | 19.2 | 34 | (27.9 | ) | 33.5 | |||||||||||
Basic earnings (loss) per share from continuing operations (2)(3) | $ | 0.34 | $ | 0.6 | $ | (0.48 | ) | $ | 0.54 | |||||||
Diluted earnings (loss) per share from continuing operations (2)(3) | 0.34 | 0.6 | (0.48 | ) | 0.54 | |||||||||||
Fiscal 2012 (by quarter) | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
Net sales | $ | 503.7 | $ | 523.1 | $ | 516.3 | $ | 513.1 | ||||||||
Gross profit | 234.8 | 253.5 | 243.2 | 233.3 | ||||||||||||
Income from continuing operations | 36.6 | 42.3 | 35.1 | 27.3 | ||||||||||||
Loss from discontinued operations | (0.3 | ) | (3.4 | ) | (1.9 | ) | (1.1 | ) | ||||||||
Net income | 36.3 | 38.9 | 33.2 | 26.2 | ||||||||||||
Basic earnings per share from continuing operations (2)(3) | $ | 0.63 | $ | 0.73 | $ | 0.61 | $ | 0.47 | ||||||||
Diluted earnings per share from continuing operations (2)(3) | 0.63 | 0.73 | 0.61 | 0.47 | ||||||||||||
-1 | Operations in the third quarter of fiscal 2013 were impacted by the Separation. | |||||||||||||||
-2 | Quarterly and annual computations are prepared independently. Therefore, the sum of each quarter may not necessarily total the fiscal period amounts noted elsewhere within this Annual Report on Form 10-K. | |||||||||||||||
-3 | The computation of basic and diluted earnings per share assumes that the number of shares outstanding for the first three quarters of fiscal 2013 and each quarter in fiscal 2012 was equal to the number of ordinary shares of Mallinckrodt outstanding on June 28, 2013, immediately following the distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Sep. 27, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
23 | Subsequent Events | |
None. |
Background_and_Basis_of_Presen1
Background and Basis of Presentation Background and Basis of Presentation (Policies) | 12 Months Ended |
Sep. 27, 2013 | |
Background and Basis of Presentation [Abstract] | ' |
Fiscal Period | ' |
Fiscal Year | |
The Company reports its results based on a "52-53 week" year ending on the last Friday of September. Fiscal 2013 and 2012 consisted of 52 weeks and ended on September 27, 2013 and September 28, 2012, respectively. Fiscal 2011 consisted of 53 weeks and ended on September 30, 2011. Unless otherwise indicated, fiscal 2013, 2012 and 2011 refer to the Company's fiscal years ended September 27, 2013, September 28, 2012 and September 30, 2011, respectively. | |
Basis of Accounting | ' |
The consolidated and combined financial statements have been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"). | |
Use of Estimates | ' |
The preparation of the consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ from those estimates. | |
Consolidation | ' |
The consolidated and combined financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which they own or control more than fifty percent of the voting shares, or have the ability to control through similar rights. The results of entities disposed of are included in the consolidated and combined financial statements up to the date of disposal and, where appropriate, these operations have been reflected as discontinued operations. Divestitures of product lines not representing businesses have been reflected in operating income. All intercompany balances and transactions have been eliminated in consolidation and, in the opinion of management, all normal recurring adjustments necessary for a fair presentation have been included in the results reported. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Sep. 27, 2013 | ||||
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 or upon delivery to the customer site, based on contract terms or legal requirements in non-U.S. jurisdictions. The Company sells products direct to retail pharmacies and end user customers and through distributors who resell the products to retail pharmacies, institutions and end user customers. Chargebacks and rebates represent credits that are provided to certain distributors and customers for either the difference between the Company's contracted price with a customer and the distributor's invoice price paid to the Company or for contractually agreed volume price discounts. When the Company recognizes net sales, it simultaneously records an adjustment to revenue for estimated chargebacks, rebates, product returns and other sales deductions. These provisions are estimated based upon historical experience, estimated future trends, estimated customer inventory levels, current contracted sales terms with customers, level of utilization of the Company's products and other competitive factors. The Company adjusts these reserves to reflect differences between estimated activity and actual experience. Such adjustments impact the amount of net sales recognized by the Company in the period of adjustment. | ||||
Taxes collected from customers relating to product sales and remitted to governmental authorities are accounted for on a net basis. Accordingly, such taxes are excluded from both net sales and expenses. | ||||
Shipping and Handling Costs | ' | |||
Shipping and Handling Costs | ||||
Shipping costs, which are costs incurred to physically move product from the Company's premises to the customer's premises, are classified as selling, general and administrative expenses. Handling costs, which are costs incurred to store, move and prepare product for shipment, are classified as cost of sales. | ||||
Research and Development | ' | |||
Research and Development | ||||
Internal research and development costs are expensed as incurred. Research and development expenses include salary and benefits, allocated overhead and occupancy costs, clinical trial and related clinical manufacturing costs, contract services and other costs. | ||||
Upfront and milestone payments made to third parties under license arrangements are expensed as incurred up to the point of regulatory approval of the product. Milestone payments made to third parties upon or subsequent to regulatory approval are capitalized as an intangible asset and amortized to cost of sales over the estimated useful life of the related product. | ||||
Advertising | ' | |||
Advertising | ||||
Advertising costs are expensed when incurred. | ||||
Currency Translation | ' | |||
Currency Translation | ||||
For the Company's non-U.S. subsidiaries that transact in a functional currency other than U.S. dollars, assets and liabilities are translated into U.S. dollars using fiscal year-end exchange rates. Revenues and expenses are translated at the average exchange rates in effect during the related month. The net effect of these translation adjustments is shown in the consolidated and combined financial statements as a component of accumulated other comprehensive income. For subsidiaries operating in highly inflationary environments or where the functional currency is different from the local currency, non-monetary assets and liabilities are translated at the rate of exchange in effect on the date the assets and liabilities were acquired or assumed, while monetary assets and liabilities are translated at fiscal year-end exchange rates. Translation adjustments of these subsidiaries are included in net income. Gains and losses resulting from foreign currency transactions are included in net income. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
The Company classifies cash on hand and deposits in banks, including commercial paper, money market accounts and other investments it may hold from time to time, with an original maturity to the Company of three months or less, as cash and cash equivalents. | ||||
Accounts Receivable and Allowance for Doubtful Accounts | ' | |||
Accounts Receivable and Allowance for Doubtful Accounts | ||||
Trade accounts receivable are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects an estimate of losses inherent in the Company's accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written off when management determines they are uncollectible. Trade accounts receivable are also presented net of reserves related to chargebacks and non-branded rebates payable to customers for whom we have trade accounts receivable and the right of offset exists. | ||||
Inventories | ' | |||
Inventories | ||||
Inventories are recorded at the lower of cost or market value, primarily using the first-in, first-out convention. The Company reduces the carrying value of inventories for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. | ||||
Property, Plant and Equipment | ' | |||
Property, Plant and Equipment | ||||
Property, plant and equipment are stated at cost. Major renewals and improvements are capitalized, while routine maintenance and repairs are expensed as incurred. Depreciation for property, plant and equipment assets, other than land and construction in process, is based upon the following estimated useful lives, using the straight-line method: | ||||
Buildings | 10 | to | 50 years | |
Leasehold improvements | 2 | to | 14 years | |
Capitalized software | 1 | to | 14 years | |
Machinery and equipment | 3 | 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 using undiscounted cash flows whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. If an asset is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value of the asset and the present value of future cash flows or other reasonable estimate of 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 value of in-process research and development ("IPR&D") is determined using the discounted cash flow method. In determining the 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 is determined at the time of acquisition and 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 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 year, or more frequently if impairment indicators arise. The Company utilizes 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 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. The Company allocates 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 using the straight-line method over the following estimated useful lives of the assets: | ||||
Completed technology | 5 | to | 25 years | |
License agreements | 8 | to | 30 years | |
Trademarks | 30 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 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 with their carrying value. The fair value of the intangible asset is estimated using an income approach. If the fair value is less than the carrying value of the intangible asset, the amount recognized for impairment is equal to the difference between the carrying value of the asset and the present value of future cash flows. 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. 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. Indefinite-lived intangible assets are tested for impairment at least annually. | ||||
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 and combined 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. | ||||
Asset Retirement Obligations | ' | |||
Asset Retirement Obligations | ||||
The Company establishes asset retirement obligations for certain assets at the time they are installed. The present value of an asset retirement obligation is recorded as a liability when incurred. The liability is subsequently adjusted in future periods as accretion expense is recorded or as revised estimates of the timing or amount of cash flows required to retire the asset are obtained. The corresponding asset retirement costs are capitalized as part of the carrying value of the related long-lived asset and depreciated over the asset's useful life. | ||||
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 14. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
Income taxes for periods prior to the Separation were calculated on a separate tax return basis (inclusive of certain loss benefits), although the Company's operations had historically been included in Covidien's U.S. federal and state tax returns or the tax returns of non-U.S. jurisdictions. Accordingly, the income taxes presented for periods prior to June 28, 2013 do not necessarily reflect the results that would have occurred as an independent, publicly-traded company. With the exception of certain non-U.S. entities, the Company did not maintain taxes payable to or from Covidien and the Company was deemed to settle the annual current tax balances immediately with the legal tax-paying entities in the respective jurisdictions. These settlements were reflected as changes in parent company investment. | ||||
Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been reflected in the consolidated and combined financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax bases of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to reduce net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||
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, including 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 and combined balance sheets as payment is not expected within one year. | ||||
Parent Company Investment | ' | |||
Parent Company Investment | ||||
Parent company investment in the combined balance sheet as of September 28, 2012 represents Covidien's historical investment in the Company, the Company's accumulated net earnings after income taxes for periods prior to that date, and the net effect of transactions with and allocations from Covidien. |
Earnings_Loss_per_Share_Polici
Earnings (Loss) per Share (Policies) | 12 Months Ended |
Sep. 27, 2013 | |
Earnings (Loss) per Share [Abstract] | ' |
Earnings (Loss) Per Share Policy | ' |
Basic earnings (loss) per share is computed by dividing net income by the number of weighted-average shares outstanding during the period. Diluted earnings (loss) per share is computed using the weighted-average shares outstanding and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares represents the incremental ordinary shares issuable for restricted share units and share option exercises. The Company calculates the dilutive effect of outstanding restricted share units and share options on earnings (loss) per share by application of the treasury stock method. | |
The computations of basic and diluted earnings (loss) per share assumes that the number of shares outstanding for periods prior to June 28, 2013 was equal to the number of ordinary shares of Mallinckrodt outstanding on June 28, 2013, immediately following the distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. The dilutive effect of the Company's share-based awards that were issued as a result of the conversion of Covidien share-based awards with the Separation, the initial equity awards granted to certain of the Company's executives on July 1, 2013 and any other Company grants made since the Separation have been included in the computation of diluted earnings per share for fiscal 2013, weighted appropriately for the portion of the period they were outstanding. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||
Sep. 27, 2013 | ||||
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 based upon the following estimated useful lives, using the straight-line method: | ||||
Buildings | 10 | to | 50 years | |
Leasehold improvements | 2 | to | 14 years | |
Capitalized software | 1 | to | 14 years | |
Machinery and equipment | 3 | to | 20 years | |
Schedule of Useful Lives for Finite Lived Intangible Assets | ' | |||
Intangible assets with finite useful lives are subsequently amortized using the straight-line method over the following estimated useful lives of the assets: | ||||
Completed technology | 5 | to | 25 years | |
License agreements | 8 | to | 30 years | |
Trademarks | 30 years | |||
Acquisitions_and_License_Agree1
Acquisitions and License Agreements (Tables) | 12 Months Ended | |||||
Sep. 27, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Schedule of Fair Value of Identifiable Assets Acquired and Liabilities Assumed | ' | |||||
The following amounts represent the final allocation of the fair value of the identifiable assets acquired and liabilities assumed: | ||||||
Current assets (1)Â | $ | 13.3 | ||||
Intangible assets | 91.9 | |||||
Goodwill (non-tax deductible) (2) | 24.5 | |||||
Total assets acquired | 129.7 | |||||
Current liabilities | 4 | |||||
Deferred tax liabilities, net (non-current) | 27.1 | |||||
Contingent consideration (non-current) | 6.9 | |||||
Total liabilities assumed | 38 | |||||
Net assets acquired | $ | 91.7 | ||||
-1 | This amount includes $3.3 million of accounts receivable, which is also the gross contractual value. As of the acquisition date, the fair value of accounts receivable approximated carrying value. | |||||
-2 | Goodwill relates to the Company's ability to exploit CNS Therapeutics' technologies. | |||||
Schedule of Reconciliation of Total Consideration | ' | |||||
The following reconciles the total consideration to net assets acquired: | ||||||
Total consideration | $ | 95 | ||||
Plus: cash assumed in acquisition | 3.6 | |||||
Less: contingent consideration | (6.9 | ) | ||||
Net assets acquired | $ | 91.7 | ||||
Schedule of Intangible Assets Acquired | ' | |||||
Intangible assets acquired consist of the following: Â | ||||||
Amount | Weighted-Average Amortization Period | |||||
Completed technology | $ | 73.1 | 13 years | |||
Trademark | 0.2 | 3 years | ||||
In-process research and development | 18.6 | Non-Amortizable | ||||
$ | 91.9 | |||||
Restructuring_and_Related_Char1
Restructuring and Related Charges (Tables) | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||
Schedule of Restructuring and Related Charges by Segment | ' | |||||||||||
Net restructuring and related charges by segment are as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Specialty Pharmaceuticals | $ | 16.4 | $ | 11.3 | $ | 6.5 | ||||||
Global Medical Imaging | 16.4 | 7.9 | 3.8 | |||||||||
Corporate | 3 | — | (0.3 | ) | ||||||||
Restructuring and related charges, net | 35.8 | 19.2 | 10 | |||||||||
Less: accelerated depreciation | (2.6 | ) | (8.0 | ) | (1.6 | ) | ||||||
Restructuring charges, net | $ | 33.2 | $ | 11.2 | $ | 8.4 | ||||||
Schedule of Net Restructuring and Related Charges | ' | |||||||||||
Net restructuring and related charges are comprised of the following: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
2013 Mallinckrodt Program | $ | 14.9 | $ | — | $ | — | ||||||
Other programs | 20.9 | 19.2 | 10 | |||||||||
Total programs | 35.8 | 19.2 | 10 | |||||||||
Less: non-cash charges, including accelerated depreciation | (2.6 | ) | (6.2 | ) | (1.6 | ) | ||||||
Total charges expected to be settled in cash | $ | 33.2 | $ | 13 | $ | 8.4 | ||||||
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: | ||||||||||||
2013 Mallinckrodt Program | Other Programs | Total | ||||||||||
Balance at September 24, 2010 | $ | — | $ | 4.5 | $ | 4.5 | ||||||
Charges | — | 9.6 | 9.6 | |||||||||
Changes in estimate | — | (1.2 | ) | (1.2 | ) | |||||||
Cash payments | — | (3.5 | ) | (3.5 | ) | |||||||
Reclassifications (1) | — | (1.6 | ) | (1.6 | ) | |||||||
Currency translation | — | (0.2 | ) | (0.2 | ) | |||||||
Balance at September 30, 2011 | — | 7.6 | 7.6 | |||||||||
Charges | — | 12.8 | 12.8 | |||||||||
Changes in estimate | — | 0.2 | 0.2 | |||||||||
Cash payments | — | (11.5 | ) | (11.5 | ) | |||||||
Reclassifications (1) | — | (0.2 | ) | (0.2 | ) | |||||||
Balance at September 28, 2012 | — | 8.9 | 8.9 | |||||||||
Charges | 14.9 | 20.9 | 35.8 | |||||||||
Changes in estimate | — | (2.6 | ) | (2.6 | ) | |||||||
Cash payments | — | (15.1 | ) | (15.1 | ) | |||||||
Reclassifications (1) | — | (1.5 | ) | (1.5 | ) | |||||||
Balance at September 27, 2013 | $ | 14.9 | $ | 10.6 | $ | 25.5 | ||||||
-1 | Represents the reclassification of pension and other postretirement benefits from restructuring reserves to pension and postretirement obligations, and the transfer of certain restructuring liabilities in conjunction with the Separation. | |||||||||||
Schedule of Restructuring Charges Incurred Cumulative to Date | ' | |||||||||||
Net restructuring and related charges, including associated asset impairments, incurred cumulative to date related to the 2013 Mallinckrodt Program are as follows: | ||||||||||||
Specialty Pharmaceuticals | $ | 2.4 | ||||||||||
Global Medical Imaging | 9.5 | |||||||||||
Corporate | 3 | |||||||||||
$ | 14.9 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Income from Continuing Operations before Income Taxes | ' | |||||||||||
The U.S. and non-U.S. components of income from continuing operations before income taxes were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 70 | $ | 174.6 | $ | 134.9 | ||||||
Non-U.S. | 56.4 | 61.5 | 108.3 | |||||||||
Total | $ | 126.4 | $ | 236.1 | $ | 243.2 | ||||||
Schedule of Significant Components of Income Taxes Related to Continuing Operations | ' | |||||||||||
Significant components of income taxes related to continuing operations are as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
U.S.: | ||||||||||||
Federal | $ | 45.7 | $ | 61.1 | $ | 19.2 | ||||||
State | 9.2 | 7.2 | 2.4 | |||||||||
Non-U.S. | 22.7 | 17.5 | 28.2 | |||||||||
Current income tax provision | 77.6 | 85.8 | 49.8 | |||||||||
Deferred: | ||||||||||||
U.S.: | ||||||||||||
Federal | (11.7 | ) | 5.3 | 37.8 | ||||||||
State | (1.2 | ) | 2.4 | 4.3 | ||||||||
Non-U.S. | 3.9 | 1.3 | (5.7 | ) | ||||||||
Deferred income tax (benefit) provision | (9.0 | ) | 9 | 36.4 | ||||||||
$ | 68.6 | $ | 94.8 | $ | 86.2 | |||||||
Schedule of Reconciliation of Income Taxes at Statutory Rate and Tax Provision | ' | |||||||||||
The reconciliation between U.S. federal income taxes at the statutory rate and the Company's provision for income taxes on continuing operations is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Notional U.S. federal income taxes at the statutory rate | $ | 44.3 | $ | 82.6 | $ | 85.1 | ||||||
Adjustments to reconcile to income tax provision: | ||||||||||||
U.S. state income tax provision, net | 4.8 | 7.1 | 5.9 | |||||||||
Rate difference between non-U.S. and U.S. jurisdictions (1) (2) | (2.2 | ) | (3.5 | ) | (16.8 | ) | ||||||
Domestic manufacturing deduction | (2.5 | ) | (3.0 | ) | — | |||||||
Valuation allowances, nonrecurring | 3.4 | — | — | |||||||||
Adjustments to accrued income tax liabilities and uncertain tax positions (2) | 8.6 | 1.2 | (1.0 | ) | ||||||||
Interest on accrued income tax liabilities and uncertain tax positions (2) | 4.7 | 1.1 | 1.9 | |||||||||
Withholding tax, net | 0.3 | 0.4 | 3.8 | |||||||||
Credits, principally research (3) | (6.2 | ) | (0.8 | ) | (4.1 | ) | ||||||
Permanently nondeductible and nontaxable items | 12 | 8.1 | 8.4 | |||||||||
Other | 1.4 | 1.6 | 3 | |||||||||
Provision for income taxes | $ | 68.6 | $ | 94.8 | $ | 86.2 | ||||||
-1 | Excludes non-deductible charges and other items which are broken out separately in the statutory rate reconciliation presented. Also includes the impact of certain valuation allowances. | |||||||||||
-2 | Includes impact of items relating to entities retained by Covidien in connection with the Separation. | |||||||||||
-3 | Due to the December 31, 2011 tax law expiration, fiscal 2012 includes U.S. Research Credits for only the three months ended December 31, 2011. During fiscal 2013, the legislation was extended, with a retroactive effective date of January 1, 2012. As such, fiscal 2013 includes approximately $2.3 million of credit related to the period January 1, 2012 through September 28, 2012. | |||||||||||
Schedule of Unrecognized Tax Benefit Activity | ' | |||||||||||
The following table summarizes the activity related to the Company's unrecognized tax benefits, excluding interest: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at beginning of fiscal year | $ | 165.5 | $ | 168.4 | $ | 175.7 | ||||||
Unrecognized tax benefits retained by Covidien | (153.7 | ) | — | — | ||||||||
Unrecognized tax benefits transferred from Covidien | 84.2 | — | — | |||||||||
Additions related to current year tax positions | 3.5 | 1.3 | 2.2 | |||||||||
Additions related to prior period tax positions | 6.6 | 1.6 | 1.1 | |||||||||
Reductions related to prior period tax positions | (4.3 | ) | (1.9 | ) | (3.9 | ) | ||||||
Settlements | (1.6 | ) | (1.7 | ) | (6.7 | ) | ||||||
Lapse of statute of limitations | (0.1 | ) | (2.2 | ) | — | |||||||
Balance at end of fiscal year | 100.1 | 165.5 | 168.4 | |||||||||
Cash advance paid in connection with proposed settlements | — | (23.5 | ) | (23.5 | ) | |||||||
Balance at end of fiscal year, net of cash advance | $ | 100.1 | $ | 142 | $ | 144.9 | ||||||
Schedule of Unrecongized Tax Benefits Balance Sheet Location | ' | |||||||||||
Unrecognized tax benefits, excluding interest, are reported in the following consolidated and combined balance sheet captions in the amount shown: | ||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||
Accrued and other current liabilities | $ | 23.4 | $ | — | ||||||||
Other income tax liabilities | 76.7 | 13.4 | ||||||||||
Parent company investment | — | 152.1 | ||||||||||
$ | 100.1 | $ | 165.5 | |||||||||
Schedule of Income Taxes Payable | ' | |||||||||||
Income taxes payable, including uncertain tax positions and related interest accruals, is reported in the following consolidated and combined balance sheet captions in the amounts shown. Non-current other income tax liabilities also includes anticipated refunds and other items not related to uncertain tax positions. | ||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||
Accrued and other current liabilities | $ | 28.2 | $ | 2.6 | ||||||||
Other income tax liabilities | 153.1 | 19.4 | ||||||||||
$ | 181.3 | $ | 22 | |||||||||
Schedule of Tax Years Subject to Examination | ' | |||||||||||
As of September 27, 2013, tax years that remain subject to examination in the Company's major tax jurisdictions are as follows: | ||||||||||||
Jurisdiction | Earliest Open Year | |||||||||||
U.S. - federal and state | 1996 | |||||||||||
Ireland | 2009 | |||||||||||
Netherlands | 2013 | |||||||||||
Switzerland | 2012 | |||||||||||
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 27, 2013 | September 28, 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Accrued liabilities and reserves | $ | 53.8 | $ | 47.4 | ||||||||
Inventories | 30.5 | 36.4 | ||||||||||
Tax loss and credit carryforwards | 53.6 | 1.2 | ||||||||||
Environmental liabilities | 27.3 | 66.4 | ||||||||||
Rebate reserves | 43.4 | 38.1 | ||||||||||
Indemnification reserves | 8.2 | 14.9 | ||||||||||
Postretirement benefits | 30.2 | 67.7 | ||||||||||
Federal and state benefit of uncertain tax positions and interest | 47.1 | 5.7 | ||||||||||
Deferred intercompany interest | 19.2 | — | ||||||||||
Other | 30.8 | 13.9 | ||||||||||
344.1 | 291.7 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant and equipment | (160.5 | ) | (139.9 | ) | ||||||||
Intangible assets | (113.1 | ) | (89.1 | ) | ||||||||
Investment in partnership | (173.6 | ) | — | |||||||||
(447.2 | ) | (229.0 | ) | |||||||||
Net deferred tax (liability) asset before valuation allowances | (103.1 | ) | 62.7 | |||||||||
Valuation allowances | (30.0 | ) | (15.3 | ) | ||||||||
Net deferred tax (liability) asset | $ | (133.1 | ) | $ | 47.4 | |||||||
Schedule of Deferred Taxes Balance Sheet Location | ' | |||||||||||
Deferred taxes are reported in the following consolidated and combined balance sheet captions in the amounts shown: | ||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||
Deferred income taxes (current asset) | $ | 171.1 | $ | 119.9 | ||||||||
Other non-current assets | 7.5 | 3.8 | ||||||||||
Accrued and other current liabilities | (1.6 | ) | (2.6 | ) | ||||||||
Deferred income taxes (non-current liability) | (310.1 | ) | (73.7 | ) | ||||||||
Net deferred tax (liability) asset | $ | (133.1 | ) | $ | 47.4 | |||||||
Earnings_Loss_per_Share_Tables
Earnings (Loss) per Share (Tables) | 12 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Earnings (Loss) per Share [Abstract] | ' | ||||||||
Schedule of Earnings (Loss) per Share | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Weighted-average shares for basic earnings (loss) per share | 57.7 | 57.7 | 57.7 | ||||||
Effect of share options and restricted shares | 0.1 | — | — | ||||||
Weighted-average shares for diluted earnings (loss) per share | 57.8 | 57.7 | 57.7 | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Schedule of Inventories | ' | |||||||
Inventories are comprised of the following at the end of each period:Â | ||||||||
September 27, | September 28, | |||||||
2013 | 2012 | |||||||
Raw materials and supplies | $ | 68.8 | $ | 74.1 | ||||
Work in process | 191.5 | 184.7 | ||||||
Finished goods | 142.8 | 176.5 | ||||||
Inventories | $ | 403.1 | $ | 435.3 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
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 27, 2013 | September 28, 2012 | |||||||
Land | $ | 60.4 | $ | 60 | ||||
Buildings | 316.6 | 297.3 | ||||||
Capitalized software | 76.4 | 59.9 | ||||||
Machinery and equipment | 1,226.60 | 1,152.80 | ||||||
Construction in process | 193.7 | 181.4 | ||||||
1,873.70 | 1,751.40 | |||||||
Less: accumulated depreciation | (876.3 | ) | (806.2 | ) | ||||
Property, plant and equipment, net | $ | 997.4 | $ | 945.2 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||
The changes in the carrying amount of goodwill by segment were as follows: | ||||||||||||||||
Specialty Pharmaceuticals | Global Medical Imaging | Total | ||||||||||||||
Goodwill at September 28, 2012 | $ | 287.8 | $ | 219.7 | $ | 507.5 | ||||||||||
Acquisitions | 24.5 | — | 24.5 | |||||||||||||
Goodwill at September 27, 2013 | $ | 312.3 | $ | 219.7 | $ | 532 | ||||||||||
Schedule of Intangible Assets | ' | |||||||||||||||
The gross carrying amount and accumulated amortization of intangible assets at the end of each period were as follows: | ||||||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Amortizable: | ||||||||||||||||
Completed technology | $ | 449.2 | $ | 196.6 | $ | 376.1 | $ | 173.7 | ||||||||
Licenses | 191.1 | 79.3 | 191.1 | 67.1 | ||||||||||||
Trademarks | 7.9 | 3.8 | 7.7 | 3.5 | ||||||||||||
Total | $ | 648.2 | $ | 279.7 | $ | 574.9 | $ | 244.3 | ||||||||
Non-Amortizable: | ||||||||||||||||
Trademarks | $ | 35 | $ | 35 | ||||||||||||
In-process research and development | 18.6 | — | ||||||||||||||
Total | $ | 53.6 | $ | 35 | ||||||||||||
Schedule of Future Amortization Expense, Intangible Assets | ' | |||||||||||||||
The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows: | ||||||||||||||||
Fiscal 2014 | $ | 35.4 | ||||||||||||||
Fiscal 2015 | 35.4 | |||||||||||||||
Fiscal 2016 | 35.3 | |||||||||||||||
Fiscal 2017 | 33.9 | |||||||||||||||
Fiscal 2018 | 25.2 | |||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
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 27, 2013 | September 28, 2012 | |||||||
Current maturities of long-term debt: | ||||||||
Capital lease obligation | $ | 1.4 | $ | 1.3 | ||||
Loan payable | 0.1 | — | ||||||
Total current debt | 1.5 | 1.3 | ||||||
Long-term debt: | ||||||||
7.00% debentures due December 2013 (1) | — | 5.8 | ||||||
3.50% notes due April 2018 | 299.9 | — | ||||||
9.50% debentures due May 2022 (2) | 10.4 | — | ||||||
8.00% debentures due March 2023 (2) | 8 | — | ||||||
4.75% notes due April 2023 | 598.2 | — | ||||||
Capital lease obligation | 1.8 | 3.1 | ||||||
Total long-term debt | 918.3 | 8.9 | ||||||
Total debt | $ | 919.8 | $ | 10.2 | ||||
-1 | Under the terms of the Separation and Distribution Agreement, the 7.00% debentures due December 2013 were retained by Covidien. | |||||||
-2 | Under the terms of the Separation and Distribution Agreement, the 8.00% and 9.50% debentures due in March 2023 and May 2022, respectively, were transferred to the Company. | |||||||
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 2014 | $ | 1.5 | ||||||
Fiscal 2015 | 1.4 | |||||||
Fiscal 2016 | 0.4 | |||||||
Fiscal 2017 | — | |||||||
Fiscal 2018 | 300 | |||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 5 | $ | 5 | $ | 6.2 | $ | 0.1 | $ | 0.1 | $ | 0.2 | ||||||||||||
Interest cost | 18.2 | 21.2 | 23.5 | 2.4 | 3.1 | 3.8 | ||||||||||||||||||
Expected return on plan assets | (29.6 | ) | (24.5 | ) | (25.3 | ) | — | — | — | |||||||||||||||
Amortization of net actuarial loss | 12.3 | 11.7 | 11.8 | 0.3 | 0.2 | 0.5 | ||||||||||||||||||
Amortization of prior service cost | 0.6 | 0.7 | 0.8 | (9.1 | ) | (9.2 | ) | (9.0 | ) | |||||||||||||||
Plan settlements loss | 6.8 | (0.2 | ) | 11.1 | — | — | — | |||||||||||||||||
Curtailments | — | — | 1.9 | — | — | (4.6 | ) | |||||||||||||||||
Special termination benefits | — | — | 0.1 | — | — | — | ||||||||||||||||||
Net periodic benefit cost (credit) | $ | 13.3 | $ | 13.9 | $ | 30.1 | $ | (6.3 | ) | $ | (5.8 | ) | $ | (9.1 | ) | |||||||||
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 and combined balance sheets for pension and postretirement benefit plans at the end of fiscal 2013 and 2012: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Projected benefit obligations at beginning of year | $ | 533.2 | $ | 491.1 | $ | 80.3 | $ | 80.1 | ||||||||||||||||
Service cost | 5 | 5 | 0.1 | 0.1 | ||||||||||||||||||||
Interest cost | 18.2 | 21.2 | 2.4 | 3.1 | ||||||||||||||||||||
Employee contributions | 0.3 | 0.3 | — | — | ||||||||||||||||||||
Actuarial (gain) loss | (24.0 | ) | 53.3 | (9.3 | ) | 2.8 | ||||||||||||||||||
Benefits and administrative expenses paid | (21.9 | ) | (32.3 | ) | (3.8 | ) | (5.8 | ) | ||||||||||||||||
Plan amendments | (9.0 | ) | — | (16.5 | ) | — | ||||||||||||||||||
Plan settlements | (24.2 | ) | (0.3 | ) | — | — | ||||||||||||||||||
Plan combinations | 18.4 | — | — | — | ||||||||||||||||||||
Curtailments | — | — | — | — | ||||||||||||||||||||
Currency translation | 5.7 | (5.1 | ) | — | — | |||||||||||||||||||
Projected benefit obligations at end of year | $ | 501.7 | $ | 533.2 | $ | 53.2 | $ | 80.3 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 432 | $ | 383.6 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets | 17.3 | 63 | — | — | ||||||||||||||||||||
Employer contributions | 44.4 | 23.4 | 3.8 | 5.8 | ||||||||||||||||||||
Employee contributions | 0.3 | 0.3 | — | — | ||||||||||||||||||||
Benefits and administrative expenses paid | (21.9 | ) | (32.3 | ) | (3.8 | ) | (5.8 | ) | ||||||||||||||||
Plan settlements | (24.2 | ) | (0.3 | ) | — | — | ||||||||||||||||||
Plan combinations | 2.3 | — | — | — | ||||||||||||||||||||
Currency translation | 5.8 | (5.7 | ) | — | — | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 456 | $ | 432 | $ | — | $ | — | ||||||||||||||||
Funded status at end of year | $ | (45.7 | ) | $ | (101.2 | ) | $ | (53.2 | ) | $ | (80.3 | ) | ||||||||||||
Schedule of Amounts Recognized in Balance Sheet | ' | |||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Amounts recognized on the consolidated and combined balance sheet: | ||||||||||||||||||||||||
Non-current assets | $ | 17.1 | $ | 17.7 | $ | — | $ | — | ||||||||||||||||
Current liabilities | (3.1 | ) | (2.2 | ) | (4.9 | ) | (7.4 | ) | ||||||||||||||||
Non-current liabilities | (59.7 | ) | (116.7 | ) | (48.3 | ) | (72.9 | ) | ||||||||||||||||
Net amount recognized on the consolidated and combined balance sheet | $ | (45.7 | ) | $ | (101.2 | ) | $ | (53.2 | ) | $ | (80.3 | ) | ||||||||||||
Amounts recognized in accumulated other comprehensive income consist of: | ||||||||||||||||||||||||
Net actuarial loss | $ | (102.9 | ) | $ | (127.5 | ) | $ | (2.4 | ) | $ | (12.1 | ) | ||||||||||||
Prior service credit (cost) | 7.9 | (1.8 | ) | 28.2 | 20.8 | |||||||||||||||||||
Net amount recognized in accumulated other comprehensive income | $ | (95.0 | ) | $ | (129.3 | ) | $ | 25.8 | $ | 8.7 | ||||||||||||||
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 2014 are as follows: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
Amortization of net actuarial loss | $ | (8.3 | ) | $ | — | |||||||||||||||||||
Amortization of prior service cost | 0.6 | 9.3 | ||||||||||||||||||||||
Schedule of Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ' | |||||||||||||||||||||||
Additional information related to pension plans is as follows: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Pension plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||
Accumulated benefit obligation | $ | 377.6 | $ | 414.3 | ||||||||||||||||||||
Fair value of plan assets | 316.2 | 295.4 | ||||||||||||||||||||||
Schedule of Actuarial Assumptions | ' | |||||||||||||||||||||||
The weighted-average discount rate used to determine net periodic benefit cost and obligations for the Company's postretirement benefit plans are as follows: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Net periodic benefit cost | 3.2 | % | 4.1 | % | 4.6 | % | ||||||||||||||||||
Benefit obligations | 4 | % | 3.2 | % | 4.1 | % | ||||||||||||||||||
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 | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 3.5 | % | 4.4 | % | 4.9 | % | 4 | % | 5.2 | % | 4.7 | % | ||||||||||||
Expected return on plan assets | 7.9 | % | 7.5 | % | 7.6 | % | 3.5 | % | 4 | % | 4 | % | ||||||||||||
Rate of compensation increase | — | 2.8 | % | 2.8 | % | 3.7 | % | 3.7 | % | 3.7 | % | |||||||||||||
Weighted-average assumptions used each fiscal year to determine benefits obligations for the Company's pension plans are as follows: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.3 | % | 3.5 | % | 4.4 | % | 3.7 | % | 4 | % | 5.2 | % | ||||||||||||
Rate of compensation increase | — | — | 2.8 | % | 3.5 | % | 3.7 | % | 3.7 | % | ||||||||||||||
Schedule of Healthcare Cost Trend Rates | ' | |||||||||||||||||||||||
Healthcare cost trend assumptions for postretirement benefit plans are as follows: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Healthcare cost trend rate assumed for next fiscal year | 7.3 | % | 7.5 | % | ||||||||||||||||||||
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 | $ | 0.1 | $ | (0.1 | ) | |||||||||||||||||||
Effect on postretirement benefit obligation | 0.4 | (0.3 | ) | |||||||||||||||||||||
Schedule of Weighted Average Allocation of Plan Assets | ' | |||||||||||||||||||||||
Pension plans have the following weighted-average asset allocations at the end of each fiscal year: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Equity securities | 42 | % | 58 | % | 7 | % | 8 | % | ||||||||||||||||
Debt securities | 56 | 40 | 3 | 2 | ||||||||||||||||||||
Cash and cash equivalents | 1 | 1 | — | — | ||||||||||||||||||||
Real estate and other | 1 | 1 | 90 | 90 | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Schedule of Fair Value of Plan Assets | ' | |||||||||||||||||||||||
The following tables provide a summary of plan assets held by the Company's pension plans that are measured at fair value on a recurring basis at the end of fiscal 2013 and 2012: | ||||||||||||||||||||||||
Basis of Fair Value Measurement | ||||||||||||||||||||||||
Fiscal 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||
U.S. small mid cap | $ | 19.3 | $ | 19.3 | $ | — | $ | — | ||||||||||||||||
U.S. large cap | 76.9 | 76.9 | — | — | ||||||||||||||||||||
International | 52.2 | 43.9 | 8.3 | — | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Diversified fixed income funds (1) | 170 | 166.7 | 3.3 | — | ||||||||||||||||||||
High yield bonds | 11.7 | 11.7 | — | — | ||||||||||||||||||||
Emerging market funds | 7.9 | 7.9 | — | — | ||||||||||||||||||||
Diversified/commingled funds | — | — | — | — | ||||||||||||||||||||
Insurance contracts | 112 | — | — | 112 | ||||||||||||||||||||
Other | 6 | 3.1 | 2.9 | — | ||||||||||||||||||||
Total | $ | 456 | $ | 329.5 | $ | 14.5 | $ | 112 | ||||||||||||||||
Basis of Fair Value Measurement | ||||||||||||||||||||||||
Fiscal 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||
U.S. small mid cap | $ | 24 | $ | 24 | $ | — | $ | — | ||||||||||||||||
U.S. large cap | 101.2 | 101.2 | — | — | ||||||||||||||||||||
International | 66.8 | 57.2 | 9.6 | — | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Diversified fixed income funds (1) | 97.4 | 97.4 | — | — | ||||||||||||||||||||
High yield bonds | 15.9 | 15.9 | — | — | ||||||||||||||||||||
Emerging market funds | 12 | 12 | — | — | ||||||||||||||||||||
Diversified/commingled funds | 2.2 | — | 2.2 | — | ||||||||||||||||||||
Insurance contracts | 105.1 | — | — | 105.1 | ||||||||||||||||||||
Other | 7.4 | 3.8 | 3.6 | — | ||||||||||||||||||||
Total | $ | 432 | $ | 311.5 | $ | 15.4 | $ | 105.1 | ||||||||||||||||
-1 | Diversified fixed income funds consist of U.S. Treasury bonds, mortgage-backed securities, corporate bonds, asset-backed securities and U.S. agency bonds. | |||||||||||||||||||||||
Schedule of Changes in Fair Value of Plan Assets | ' | |||||||||||||||||||||||
The following table provides a summary of the changes in the fair value measurements that used significant unobservable inputs (level 3) for fiscal 2013 and 2012: | ||||||||||||||||||||||||
Insurance Contracts | ||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 97.8 | ||||||||||||||||||||||
Net unrealized gains | 15.1 | |||||||||||||||||||||||
Net purchases, sales and issuances | (2.9 | ) | ||||||||||||||||||||||
Currency translation | (4.9 | ) | ||||||||||||||||||||||
Balance at September 28, 2012 | 105.1 | |||||||||||||||||||||||
Net unrealized gains | 3.3 | |||||||||||||||||||||||
Net purchases, sales and issuances | (1.8 | ) | ||||||||||||||||||||||
Currency translation | 5.4 | |||||||||||||||||||||||
Balance at September 27, 2013 | $ | 112 | ||||||||||||||||||||||
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 2014 | $ | 40.6 | $ | 4.9 | ||||||||||||||||||||
Fiscal 2015 | 35.1 | 5.2 | ||||||||||||||||||||||
Fiscal 2016 | 34 | 4.9 | ||||||||||||||||||||||
Fiscal 2017 | 33.5 | 4.5 | ||||||||||||||||||||||
Fiscal 2018 | 33 | 4.2 | ||||||||||||||||||||||
Fiscal 2019 - 2023 | 152.9 | 17.4 | ||||||||||||||||||||||
Share_Plans_Tables
Share Plans (Tables) (Post-Separation) | 12 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Post-Separation | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of Incentive Equity Awards Issued Upon Completion of Conversion | ' | ||||||||||||
Mallinckrodt incentive equity awards issued upon completion of the Conversion and the related weighted average grant date fair value is presented below: | |||||||||||||
Awards | Weighted-Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Share options | 2,399,822 | $ | 7.96 | ||||||||||
Restricted share units | 575,213 | 38.97 | |||||||||||
Schedule of Share Option Awards Status Upon Completion of the Conversion | ' | ||||||||||||
A summary of the status of the Company's share option awards upon completion of the Conversion on June 28, 2013 is presented below: | |||||||||||||
Shares Options | Weighted- | Weighted- | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding at June 28, 2013 | 2,399,822 | $ | 35.94 | 8 | $ | 22.9 | |||||||
Exercisable at June 28, 2013 | 550,097 | 30.94 | 5.9 | 8 | |||||||||
Schedule of the Valuation Assumptions Used in the Conversion | ' | ||||||||||||
The weighted-average assumptions used in the Black-Scholes pricing model for determining the fair value of the share option awards immediately before and immediately after the Separation were as follows: | |||||||||||||
Pre- Separation | Post- Separation | ||||||||||||
Expected share price volatility | 26 | % | 32 | % | |||||||||
Risk-free interest rate | 0.99 | % | 0.99 | % | |||||||||
Expected annual dividend per share | 1.65 | % | — | ||||||||||
Expected life of options (in years) | 3.8 | 3.8 | |||||||||||
Fair value per option | $ | 18.04 | $ | 16.51 | |||||||||
Share option awards | 1,745,258 | 2,399,822 | |||||||||||
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 | ||||||||||
(in years) | |||||||||||||
Outstanding at June 28, 2013 | 2,399,822 | $ | 35.94 | ||||||||||
Granted | 406,169 | 44 | |||||||||||
Exercised | (17,332 | ) | 30.04 | ||||||||||
Expired/Forfeited | (28,428 | ) | 36.85 | ||||||||||
Outstanding at September 27, 2013 | 2,760,231 | 37.3 | 8.2 | $ | 17.3 | ||||||||
Vested and unvested expected to vest as of September 27, 2013 | 2,394,431 | 37.27 | 8.2 | 15.1 | |||||||||
Exercisable at September 27, 2013 | 536,405 | 31.04 | 5.7 | 6.7 | |||||||||
Schedule of Restricted Share Unit Activity | ' | ||||||||||||
RSU activity is as follows: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date Fair Value | |||||||||||||
Non-vested at June 28, 2013 | 575,213 | $ | 38.97 | ||||||||||
Granted | 167,546 | 43.86 | |||||||||||
Vested | (1,656 | ) | 31.28 | ||||||||||
Forfeited | (16,834 | ) | 38.57 | ||||||||||
Non-vested at September 27, 2013 | 724,269 | 40.62 | |||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
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 24, 2010 | $ | 160.5 | $ | — | $ | (73.9 | ) | $ | 86.6 | |||||||
Pre-tax change | (0.5 | ) | — | 16.9 | 16.4 | |||||||||||
Income tax provision | — | — | (4.5 | ) | (4.5 | ) | ||||||||||
Balance at September 30, 2011 | 160 | — | (61.5 | ) | 98.5 | |||||||||||
Pre-tax change | (2.9 | ) | — | (15.3 | ) | (18.2 | ) | |||||||||
Income tax benefit | — | — | 4.6 | 4.6 | ||||||||||||
Balance at September 28, 2012 | 157.1 | — | (72.2 | ) | 84.9 | |||||||||||
Pre-tax change | 1.5 | (7.3 | ) | 51.4 | 45.6 | |||||||||||
Income tax provision | — | — | (22.0 | ) | (22.0 | ) | ||||||||||
Balance at September 27, 2013 | $ | 158.6 | $ | (7.3 | ) | $ | (42.8 | ) | $ | 108.5 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of Purchase Obligations | ' | |||||||
At September 27, 2013, such obligations were as follows: | ||||||||
Fiscal 2014 | $ | 74.9 | ||||||
Fiscal 2015 | 23.7 | |||||||
Fiscal 2016 | 22.3 | |||||||
Fiscal 2017 | — | |||||||
Fiscal 2018 | — | |||||||
Schedule of Asset Retirement Obligations | ' | |||||||
The following table provides a summary of the changes in the Company's asset retirement obligations for fiscal 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Balance at beginning of period | $ | 46.4 | $ | 45.9 | ||||
Additions | 0.4 | — | ||||||
Accretion expense | 2.9 | 2.5 | ||||||
Payments | (0.2 | ) | — | |||||
Currency translation | 1.1 | (2.0 | ) | |||||
Balance at end of period | $ | 50.6 | $ | 46.4 | ||||
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 27, 2013: | ||||||||
Operating Leases | Capital | |||||||
Leases | ||||||||
Fiscal 2014 | $ | 19.3 | $ | 1.5 | ||||
Fiscal 2015 | 13.3 | 1.5 | ||||||
Fiscal 2016 | 10.4 | 0.4 | ||||||
Fiscal 2017 | 8.7 | — | ||||||
Fiscal 2018 | 4.8 | — | ||||||
Thereafter | 10.2 | — | ||||||
Total minimum lease payments | $ | 66.7 | 3.4 | |||||
Less: interest portion of payments | (0.2 | ) | ||||||
Present value of minimum lease payments | $ | 3.2 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ' | |||||||||||
Schedule of Net Gain (Loss) on Foreign Exchange Contracts | ' | |||||||||||
The location and amount of the net gain (loss) on foreign exchange forward and option contracts not designated as hedging instruments was recorded as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cost of sales | $ | 2.2 | $ | (0.3 | ) | $ | (3.7 | ) | ||||
Selling, general and administrative | — | 0.1 | 0.1 | |||||||||
Other income, net | 8.3 | — | — | |||||||||
$ | 10.5 | $ | (0.2 | ) | $ | (3.6 | ) | |||||
Schedule of Fair Value of Foreign Exchange Contracts | ' | |||||||||||
The fair value of foreign exchange forward contracts are included in the following captions of our consolidated and combined balance sheets at the end of each period: | ||||||||||||
27-Sep-13 | September 28, 2012 | |||||||||||
Prepaid expenses and other current assets | $ | 0.9 | $ | — | ||||||||
Accrued and other current liabilities | 1.4 | — | ||||||||||
Schedule of Net Losses on Gas Commodity Swap Contracts | ' | |||||||||||
The amounts of the net losses on these contracts were recorded as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cost of sales | $ | 0.3 | $ | 0.9 | $ | 0.8 | ||||||
Selling, general and administrative | 0.8 | 2.3 | 2.4 | |||||||||
$ | 1.1 | $ | 3.2 | $ | 3.2 | |||||||
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
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 27, | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Debt and equity securities held in rabbi trusts | $ | 35.3 | $ | 22.6 | $ | 12.7 | $ | — | ||||||||
Foreign exchange forward and option contracts | 0.9 | 0.9 | — | — | ||||||||||||
$ | 36.2 | $ | 23.5 | $ | 12.7 | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Deferred compensation liabilities | $ | 13.5 | $ | — | $ | 13.5 | $ | — | ||||||||
Contingent consideration | 6.9 | — | — | 6.9 | ||||||||||||
Foreign exchange forward and option contracts | 1.4 | 1.4 | — | — | ||||||||||||
$ | 21.8 | $ | 1.4 | $ | 13.5 | $ | 6.9 | |||||||||
September 28, | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Debt and equity securities held in rabbi trusts | $ | 25.2 | $ | 13.7 | $ | 11.5 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation liabilities | $ | 9.3 | $ | — | $ | 9.3 | $ | — | ||||||||
Schedule of Reconciliation of Changes in Fair Value of Contingent Consideration | ' | |||||||||||||||
Balance at September 28, 2012 | $ | — | ||||||||||||||
Fair value of contingent consideration | 6.9 | |||||||||||||||
Balance at September 27, 2013 | $ | 6.9 | ||||||||||||||
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 27, 2013 | September 28, 2012 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Loan payable | $ | 0.1 | $ | 0.1 | $ | — | $ | — | ||||||||
7.00% debentures due December 2013 | — | — | 5.8 | 5.8 | ||||||||||||
3.50% notes due April 2018 | 299.9 | 293.7 | — | — | ||||||||||||
9.50% debentures due May 2022 | 10.4 | 14.3 | — | — | ||||||||||||
8.00% debentures due March 2023 | 8 | 10.2 | — | — | ||||||||||||
4.75% notes due April 2023 | 598.2 | 568.5 | — | — | ||||||||||||
Schedule of Accounts Receivable Concentration Risk | ' | |||||||||||||||
The Company's accounts receivable, net of allowance for doubtful accounts, in Spain and Italy at the end of each period are as follows: | ||||||||||||||||
September 27, | September 28, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Spain | $ | 9.2 | $ | 15 | ||||||||||||
Italy | 12.6 | 12.5 | ||||||||||||||
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 | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Cardinal Health, Inc. | 18 | % | 19 | % | 19 | % | ||||||||||
McKesson Corporation | 15 | % | 14 | % | 13 | % | ||||||||||
Amerisource Bergen Corporation | 9 | % | 9 | % | 10 | % | ||||||||||
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 27, | September 28, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Cardinal Health, Inc. | 18 | % | 19 | % | ||||||||||||
McKesson Corporation | 22 | % | 20 | % | ||||||||||||
Amerisource Bergen Corporation | 14 | % | 10 | % | ||||||||||||
 The following table shows net sales attributable to products that accounted for 10% or more of the Company's total net sales: | ||||||||||||||||
Fiscal Year | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Optiray (CMDS) | 14 | % | 17 | % | 19 | % | ||||||||||
Acetaminophen products (API) | 10 | % | 11 | % | 11 | % |
Segment_and_Geographical_Data_
Segment and Geographical Data (Tables) | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Segment Reporting Information by Business Segment | ' | |||||||||||
Selected information by business segment is as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales: | ||||||||||||
Specialty Pharmaceuticals | $ | 1,217.60 | $ | 1,005.20 | $ | 909.4 | ||||||
Global Medical Imaging | 935.7 | 996.8 | 1,060.00 | |||||||||
Net sales of operating segments (1) | 2,153.30 | 2,002.00 | 1,969.40 | |||||||||
Other (2) | 51.2 | 54.2 | 52.4 | |||||||||
Net sales | $ | 2,204.50 | $ | 2,056.20 | $ | 2,021.80 | ||||||
Operating income: | ||||||||||||
Specialty Pharmaceuticals | $ | 311.7 | $ | 162.8 | $ | 121.5 | ||||||
Global Medical Imaging | 112.3 | 214.3 | 232.4 | |||||||||
Segment operating income | 424 | 377.1 | 353.9 | |||||||||
Unallocated amounts: | ||||||||||||
Corporate and allocated expenses (3)Â Â Â Â Â Â Â Â Â Â | (133.8 | ) | (69.9 | ) | (73.3 | ) | ||||||
Intangible asset amortization | (35.4 | ) | (27.3 | ) | (27.0 | ) | ||||||
Restructuring and related charges, net (4) | (35.8 | ) | (19.2 | ) | (10.0 | ) | ||||||
Separation costs | (74.2 | ) | (25.5 | ) | (2.9 | ) | ||||||
Operating income | $ | 144.8 | $ | 235.2 | $ | 240.7 | ||||||
Total assets: | ||||||||||||
Specialty Pharmaceuticals | $ | 1,666.60 | $ | 1,571.60 | ||||||||
Global Medical Imaging | 1,158.60 | 1,085.70 | ||||||||||
Corporate (5) | 731.4 | 241.6 | ||||||||||
Total assets | $ | 3,556.60 | $ | 2,898.90 | ||||||||
Depreciation and amortization (6): | ||||||||||||
Specialty Pharmaceuticals | $ | 97.6 | $ | 88.7 | $ | 77.5 | ||||||
Global Medical Imaging | 42 | 42.2 | 42.3 | |||||||||
Depreciation and amortization | $ | 139.6 | $ | 130.9 | $ | 119.8 | ||||||
-1 | Amounts represent sales to external customers. There were no intersegment sales. | |||||||||||
-2 | Represents products that were sold to Covidien, which is discussed in Note 16. | |||||||||||
-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 of $2.6 million, $8.0 million and $1.6 million for fiscal 2013, 2012 and 2011, respectively. | |||||||||||
-5 | Consists of assets used in managing the Company's total business and not allocated to any one segment. | |||||||||||
-6 | Depreciation for certain shared facilities is allocated based on occupancy percentage. | |||||||||||
Schedule of Net Sales from External Customers by Products | ' | |||||||||||
Net sales by business within the Company's segments are as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Generics and API | $ | 1,011.20 | $ | 848.8 | $ | 824.7 | ||||||
Brands | 206.4 | 156.4 | 84.7 | |||||||||
Specialty Pharmaceuticals | 1,217.60 | 1,005.20 | 909.4 | |||||||||
Contrast Media and Delivery Systems | 498.1 | 542 | 595.5 | |||||||||
Nuclear Imaging | 437.6 | 454.8 | 464.5 | |||||||||
Global Medical Imaging | 935.7 | 996.8 | 1,060.00 | |||||||||
Net sales of operating segments | 2,153.30 | 2,002.00 | 1,969.40 | |||||||||
Other (1) | 51.2 | 54.2 | 52.4 | |||||||||
Net sales | $ | 2,204.50 | $ | 2,056.20 | $ | 2,021.80 | ||||||
-1 | Represents products that were sold to Covidien, which is discussed in Note 16. | |||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographical Area | ' | |||||||||||
Selected information by geographic area is as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales (1): | ||||||||||||
U.S. | $ | 1,518.70 | $ | 1,350.20 | $ | 1,293.80 | ||||||
Europe, Middle East and Africa | 404.3 | 411 | 419.7 | |||||||||
Other | 281.5 | 295 | 308.3 | |||||||||
$ | 2,204.50 | $ | 2,056.20 | $ | 2,021.80 | |||||||
Long-lived assets (2): | ||||||||||||
U.S. | $ | 893.3 | $ | 847.7 | $ | 802 | ||||||
Europe, Middle East and Africa (3) | 81 | 72.2 | 81.3 | |||||||||
Other | 51.8 | 52.1 | 48.1 | |||||||||
$ | 1,026.10 | $ | 972 | $ | 931.4 | |||||||
-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 $48.7 million, $45.5 million and $48.9 million at the end of fiscal 2013, 2012 and 2011, respectively. |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Selected Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Schedule of Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
Fiscal 2013 (by quarter) | ||||||||||||||||
Q1 | Q2 | Q3 (1) | Q4 | |||||||||||||
Net sales | $ | 504 | $ | 585.3 | $ | 570 | $ | 545.2 | ||||||||
Gross profit | 233.5 | 273.5 | 265.8 | 252.1 | ||||||||||||
Income (loss) from continuing operations | 19.8 | 34.5 | (27.7 | ) | 31.2 | |||||||||||
(Loss) income from discontinued operations | (0.6 | ) | (0.5 | ) | (0.2 | ) | 2.3 | |||||||||
Net income (loss) | 19.2 | 34 | (27.9 | ) | 33.5 | |||||||||||
Basic earnings (loss) per share from continuing operations (2)(3) | $ | 0.34 | $ | 0.6 | $ | (0.48 | ) | $ | 0.54 | |||||||
Diluted earnings (loss) per share from continuing operations (2)(3) | 0.34 | 0.6 | (0.48 | ) | 0.54 | |||||||||||
Fiscal 2012 (by quarter) | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
Net sales | $ | 503.7 | $ | 523.1 | $ | 516.3 | $ | 513.1 | ||||||||
Gross profit | 234.8 | 253.5 | 243.2 | 233.3 | ||||||||||||
Income from continuing operations | 36.6 | 42.3 | 35.1 | 27.3 | ||||||||||||
Loss from discontinued operations | (0.3 | ) | (3.4 | ) | (1.9 | ) | (1.1 | ) | ||||||||
Net income | 36.3 | 38.9 | 33.2 | 26.2 | ||||||||||||
Basic earnings per share from continuing operations (2)(3) | $ | 0.63 | $ | 0.73 | $ | 0.61 | $ | 0.47 | ||||||||
Diluted earnings per share from continuing operations (2)(3) | 0.63 | 0.73 | 0.61 | 0.47 | ||||||||||||
-1 | Operations in the third quarter of fiscal 2013 were impacted by the Separation. | |||||||||||||||
-2 | Quarterly and annual computations are prepared independently. Therefore, the sum of each quarter may not necessarily total the fiscal period amounts noted elsewhere within this Annual Report on Form 10-K. | |||||||||||||||
-3 | The computation of basic and diluted earnings per share assumes that the number of shares outstanding for the first three quarters of fiscal 2013 and each quarter in fiscal 2012 was equal to the number of ordinary shares of Mallinckrodt outstanding on June 28, 2013, immediately following the distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. |
Background_and_Basis_of_Presen2
Background and Basis of Presentation (Details) (USD $) | Sep. 27, 2013 | Jul. 09, 2013 | Jun. 28, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Jul. 09, 2013 |
In Millions, except Share data, unless otherwise specified | Country | Covidien | Covidien | Covidien | Minimum | |||
Selling, general and administrative | Selling, general and administrative | Selling, general and administrative | ||||||
Schedule of Basis of Presenation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of countries in which entity has sales presence | 70 | ' | ' | ' | ' | ' | ' | ' |
Allocated expenses | ' | ' | ' | ' | $39.60 | $49.20 | $56.30 | ' |
Distribution ratio | 0.125 | ' | 0.125 | ' | ' | ' | ' | ' |
Stock outstanding after distribution (in shares) | 57,713,390 | ' | 57,694,885 | 0 | ' | ' | ' | ' |
Ordinary shares, par value (in usd per share) | $0.20 | ' | $0.20 | $0 | ' | ' | ' | ' |
Preferred shares, shares authorized (in shares) | 500,000,000 | ' | ' | 0 | ' | ' | ' | ' |
Preferred shares, par value (in usd per share) | $0.20 | ' | ' | $0 | ' | ' | ' | ' |
Preferred shares, shares issued (in shares) | 0 | ' | ' | 0 | ' | ' | ' | ' |
Preferred shares, shares outstanding (in shares) | 0 | ' | ' | 0 | ' | ' | ' | ' |
Number of preferred share purchase rights issued for one ordinary share | ' | 1 | ' | ' | ' | ' | ' | ' |
Period until preferred share purchase right is exercisable | ' | '10 days | ' | ' | ' | ' | ' | ' |
Beneficial ownership trigger (percentage) | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Schedule of Significant Accounting Policies [Line Items] | ' | ' | ' |
Shipping costs | $56.50 | $59.10 | $57.30 |
Advertising expense | 7.5 | 8.8 | 9.7 |
Foreign currency loss | 14.2 | ' | 4.3 |
Indefinite-lived intangible assets, gross | 53.6 | 35 | ' |
Trademarks | ' | ' | ' |
Schedule of Significant Accounting Policies [Line Items] | ' | ' | ' |
Finite-lived intangible assets - useful lives | '30 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 | 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 | '2 years | ' | ' |
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 | '3 years | ' | ' |
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 | Buildings | ' | ' | ' |
Schedule of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '50 years | ' | ' |
Maximum | Leasehold Improvements | ' | ' | ' |
Schedule of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '14 years | ' | ' |
Maximum | Capitalized Software | ' | ' | ' |
Schedule of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '14 years | ' | ' |
Maximum | Machinery and Equipment | ' | ' | ' |
Schedule of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '20 years | ' | ' |
In-process research and development | ' | ' | ' |
Schedule of Significant Accounting Policies [Line Items] | ' | ' | ' |
Indefinite-lived intangible assets, gross | $18.60 | $0 | ' |
Discontinued_Operations_and_Di1
Discontinued Operations and Divestitures (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Gain on divestiture | $2.90 | $2.90 | $11.10 |
Mallinckrodt Baker | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Additional gain (loss) related to discontinued operations | 1 | -6.7 | -6.3 |
Tussi Caps | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Upfront cash received | ' | ' | 11.5 |
Gain on divestiture | 2.9 | 2.9 | 11.1 |
Introduction of Competitive Generic Product | Tussi Caps | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Contingent gains related to divestiture | ' | ' | 11.5 |
Sales Target | Tussi Caps | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Contingent gains related to divestiture | ' | ' | $1 |
Discontinued_Operations_and_Di2
Discontinued Operations and Divestitures (Parenthetical) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Gain on divestiture | $2.90 | $2.90 | $11.10 |
Tussi Caps | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Gain on divestiture | $2.90 | $2.90 | $11.10 |
Acquisitions_and_License_Agree2
Acquisitions and License Agreements (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 60 Months Ended | 0 Months Ended | |||||||||||||||||
Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Oct. 01, 2012 | Oct. 01, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Oct. 01, 2012 | ||
CNS Therapeutics, Inc. | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Finite-Lived Intangible Assets | In-process research and development | |||||||||||||
CNS Therapeutics, Inc. | CNS Therapeutics, Inc. | Roxicodone | Roxicodone | Exalgo | Exalgo | Exalgo | Exalgo | Depomed | Depomed | Depomed | Pennsaid | Pennsaid | Pennsaid | Specialty Pharmaceuticals | Specialty Pharmaceuticals | ||||||||||||||
Licensing Agreements | Licensing Agreements | Licensing Agreements | Licensing Agreements | Licensing Agreements | Licensing Agreements | Licensing Agreements | Licensing Agreements | Licensing Agreements | Licensing Agreements | Exalgo | CNS Therapeutics, Inc. | ||||||||||||||||||
Licensing Agreements | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash payment, net of cash acquired | ' | ' | ' | ' | ' | ' | ' | ' | 88,100,000 | 0 | 0 | ' | 88,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Plus: cash assumed in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,900,000 | 6,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Contingent consideration, potential maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Estimated cost to complete in-process research | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000,000 | |
Assumptions used calculating in-process research and development, discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | 545,200,000 | 570,000,000 | [1] | 585,300,000 | 504,000,000 | 513,100,000 | 516,300,000 | 523,100,000 | 503,700,000 | 2,204,500,000 | 2,056,200,000 | 2,021,800,000 | ' | ' | 29,200,000 | ' | 8,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to acquire intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 13,200,000 | 0 | ' | ' | ' | 13,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Contingent payment, maximum additional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,000,000 | ' | ' | ' | 64,000,000 | ' | ' | 120,000,000 | ' | ' | ' | ' | |
Milestone payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,000,000 | 5,000,000 | 0 | 7,000,000 | ' | ' | 15,000,000 | 55,000,000 | ' | |
Royalties paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,000,000 | $16,100,000 | $5,500,000 | ' | ' | ' | $0 | $3,900,000 | $7,500,000 | ' | ' | ' | |
[1] | Operations in the third quarter of fiscal 2013 were impacted by the Separation. |
Acquisitions_and_License_Agree3
Acquisitions and License Agreements (Schedule of Fair Value of Identifiable Assets Acquired and Liabilities Assumed) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | Oct. 01, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Oct. 01, 2012 | |
In Millions, unless otherwise specified | CNS Therapeutics, Inc. | Specialty Pharmaceuticals | Specialty Pharmaceuticals | Specialty Pharmaceuticals | |||
CNS Therapeutics, Inc. | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ' | ' | ' | ' | ' | ' | |
Current assets | ' | ' | ' | ' | ' | $13.30 | [1] |
Intangible assets | ' | ' | ' | ' | ' | 91.9 | |
Goodwill (non-tax deductible) | 532 | 507.5 | ' | 312.3 | 287.8 | 24.5 | [2] |
Total assets acquired | ' | ' | ' | ' | ' | 129.7 | |
Current liabilities | ' | ' | ' | ' | ' | 4 | |
Deferred tax liabilities, net (non-current) | ' | ' | ' | ' | ' | 27.1 | |
Contingent consideration (non-current) | ' | ' | 6.9 | ' | ' | 6.9 | |
Total liabilities assumed | ' | ' | ' | ' | ' | 38 | |
Net assets acquired | ' | ' | ' | ' | ' | 91.7 | |
Aquired accounts receivable | ' | ' | ' | ' | ' | $3.30 | |
[1] | This amount includes $3.3 million of accounts receivable, which is also the gross contractual value. As of the acquisition date, the fair value of accounts receivable approximated carrying value. | ||||||
[2] | Goodwill relates to the Company's ability to exploit CNS Therapeutics' technologies. |
Acquisitions_and_License_Agree4
Acquisitions and License Agreements (Schedule of Reconciliation of Total Consideration) (Details) (CNS Therapeutics, Inc., USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Oct. 01, 2012 |
Business Acquisition [Line Items] | ' |
Less: contingent consideration | ($6.90) |
Specialty Pharmaceuticals | ' |
Business Acquisition [Line Items] | ' |
Total consideration | 95 |
Plus: cash assumed in acquisition | 3.6 |
Less: contingent consideration | -6.9 |
Net assets acquired | $91.70 |
Acquisitions_and_License_Agree5
Acquisitions and License Agreements (Schedule of Intangible Assets Acquired) (Details) (Specialty Pharmaceuticals, CNS Therapeutics, Inc., USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Oct. 01, 2012 |
Intangible Assets Acquired as Part of Business Combination [Line Items] | ' |
Intangible assets | $91.90 |
In-process research and development | ' |
Intangible Assets Acquired as Part of Business Combination [Line Items] | ' |
Indefinite lived intangible assets acquired | 18.6 |
Completed Technology | ' |
Intangible Assets Acquired as Part of Business Combination [Line Items] | ' |
Amortizable intangible assets acquired | 73.1 |
Intangible assets acquired, weighted-average useful life | '13 years |
Trademarks | ' |
Intangible Assets Acquired as Part of Business Combination [Line Items] | ' |
Amortizable intangible assets acquired | $0.20 |
Intangible assets acquired, weighted-average useful life | '3 years |
Restructuring_and_Related_Char2
Restructuring and Related Charges (Narrative) (Details) (2013 Mallinckrodt program, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Minimum | ' |
Restructuring Cost and Reserve [Line Items] | ' |
2013 Mallinckrodt program expected cost range | $100 |
Maximum | ' |
Restructuring Cost and Reserve [Line Items] | ' |
2013 Mallinckrodt program expected cost range | $125 |
Restructuring_and_Related_Char3
Restructuring and Related Charges (Schedule of Restructuring and Related Charges by Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring and related charges | $35.80 | $19.20 | $10 |
Less: accelerated depreciation | -2.6 | -8 | -1.6 |
Restructuring charges, net | 33.2 | 11.2 | 8.4 |
Specialty Pharmaceuticals | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring and related charges | 16.4 | 11.3 | 6.5 |
Global Medical Imaging | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring and related charges | 16.4 | 7.9 | 3.8 |
Corporate | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring and related charges | $3 | $0 | ($0.30) |
Restructuring_and_Related_Char4
Restructuring and Related Charges (Schedule of Net Restructuring and Related Charges) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring and related charges | $35.80 | $19.20 | $10 |
Less: non-cash charges, including accelerated depreciation | -2.6 | -6.2 | -1.6 |
Total charges expected to be settled in cash | 33.2 | 13 | 8.4 |
2013 Mallinckrodt program | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring and related charges | 14.9 | 0 | 0 |
Other programs | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring and related charges | $20.90 | $19.20 | $10 |
Restructuring_and_Related_Char5
Restructuring and Related Charges (Schedule of Restructuring Reserves by Type of Cost) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
Restructuring Reserve [Roll Forward] | ' | ' | ' | |||
Beginning Balance | $8.90 | $7.60 | $4.50 | |||
Charges | 35.8 | 12.8 | 9.6 | |||
Changes in estimate | -2.6 | 0.2 | -1.2 | |||
Cash payments | -15.1 | -11.5 | -3.5 | |||
Reclassifications | -1.5 | [1] | -0.2 | [1] | -1.6 | [1] |
Currency translation | ' | ' | -0.2 | |||
Ending Balance | 25.5 | 8.9 | 7.6 | |||
2013 Mallinckrodt program | ' | ' | ' | |||
Restructuring Reserve [Roll Forward] | ' | ' | ' | |||
Beginning Balance | 0 | 0 | 0 | |||
Charges | 14.9 | 0 | 0 | |||
Changes in estimate | 0 | 0 | 0 | |||
Cash payments | 0 | 0 | 0 | |||
Reclassifications | 0 | [1] | 0 | [1] | 0 | [1] |
Currency translation | ' | ' | 0 | |||
Ending Balance | 14.9 | 0 | 0 | |||
Other programs | ' | ' | ' | |||
Restructuring Reserve [Roll Forward] | ' | ' | ' | |||
Beginning Balance | 8.9 | 7.6 | 4.5 | |||
Charges | 20.9 | 12.8 | 9.6 | |||
Changes in estimate | -2.6 | 0.2 | -1.2 | |||
Cash payments | -15.1 | -11.5 | -3.5 | |||
Reclassifications | -1.5 | [1] | -0.2 | [1] | -1.6 | [1] |
Currency translation | ' | ' | -0.2 | |||
Ending Balance | $10.60 | $8.90 | $7.60 | |||
[1] | Represents the reclassification of pension and other postretirement benefits from restructuring reserves to pension and postretirement obligations, and the transfer of certain restructuring liabilities in conjunction with the Separation. |
Restructuring_and_Related_Char6
Restructuring and Related Charges (Schedule of Restructuring Charges Incurred Cumulative to Date) (Details) (2013 Mallinckrodt program, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs incurred cumulative to date | $14.90 |
Specialty Pharmaceuticals | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs incurred cumulative to date | 2.4 |
Global Medical Imaging | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs incurred cumulative to date | 9.5 |
Corporate | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring costs incurred cumulative to date | $3 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | |
CNS Therapeutics, Inc. | Post-Separation | Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | U.S. - Federal and State | Foreign Tax Authority | Parent Company Investment | ||||
Covidien | ||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits that would require cash remittance if not sustained | $100,100,000 | $13,400,000 | $14,200,000 | ' | ' | ' | ' | ' | ' | ' |
Advance payment in connection with proposed settlements of certain tax matters | ' | ' | ' | ' | ' | ' | 35,100,000 | ' | ' | ' |
Advance payment in connection with proposed settlement of certain tax matters, tax payment | 0 | 23,500,000 | 23,500,000 | ' | ' | ' | 23,500,000 | ' | ' | ' |
Advance payment in connection with proposed settlement of certain tax matters, interest payment | ' | ' | ' | ' | ' | ' | 11,600,000 | ' | ' | ' |
Advance payments to be made in next fiscal year | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits transferred from Covidien | 84,200,000 | 0 | 0 | ' | 84,200,000 | ' | ' | ' | ' | ' |
Unrecognized tax benefits, which if favorably settled would benefit the effective tax rate | 96,300,000 | 144,300,000 | 144,800,000 | ' | ' | ' | ' | ' | ' | ' |
Interest expense on unrecognized tax benefits | 2,400,000 | 1,400,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' |
Interest accrued on unrecognized tax benefits | 62,100,000 | 33,900,000 | 32,500,000 | ' | ' | ' | ' | ' | ' | 26,000,000 |
Accrued interest on unrecognized tax benefits transferred from Covidien | ' | ' | ' | ' | 51,800,000 | ' | ' | ' | ' | ' |
Penalty accruals transferred from Covidien | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate, upper bound of change | 22,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax penalties and interest accrued that would impact effective tax rate, upper bound of change | 15,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes (current asset) | 171,100,000 | 119,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Current deferred tax assets transferred from Covidien | ' | ' | ' | ' | 16,500,000 | ' | ' | ' | ' | ' |
Deferred intercompany interest | 19,200,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in deferred tax asset due to acquisition | ' | ' | ' | 5,800,000 | ' | ' | ' | ' | ' | ' |
Deferred income taxes (non-current liability) | 310,100,000 | 73,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent deferred tax liability transferred from Covidien | ' | ' | ' | ' | 165,100,000 | ' | ' | ' | ' | ' |
Increase in deferred tax liability due to acquisition | ' | ' | ' | 32,900,000 | ' | ' | ' | ' | ' | ' |
Deferred tax liability, investment in partnership | 173,600,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | 13,600,000 | ' |
Operating loss carryforwards, not subject to expiration | ' | ' | ' | ' | ' | ' | ' | ' | 11,400,000 | ' |
Operating loss carryforwards, subject to expiration | ' | ' | ' | ' | ' | ' | ' | 23,200,000 | 2,200,000 | ' |
Capital loss carryforwards | ' | ' | ' | ' | ' | 5,400,000 | ' | ' | ' | ' |
Tax credit carryforward | 11,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax credit carryforwards, not subject to expiration | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets, valuation allowance | 30,000,000 | 15,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign earnings intended to be repatriated | 200,000 | 400,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' |
Undistributed earnings | $1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income from Continuing Operations Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. | $70 | $174.60 | $134.90 |
Non-U.S. | 56.4 | 61.5 | 108.3 |
Income from continuing operations before income taxes | $126.40 | $236.10 | $243.20 |
Income_Taxes_Schedule_of_Signi
Income Taxes (Schedule of Significant Components of Income Taxes Related to Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Current: | ' | ' | ' |
Federal | $45.70 | $61.10 | $19.20 |
State | 9.2 | 7.2 | 2.4 |
Non-U.S. | 22.7 | 17.5 | 28.2 |
Current income tax provision | 77.6 | 85.8 | 49.8 |
Deferred: | ' | ' | ' |
Federal | -11.7 | 5.3 | 37.8 |
State | -1.2 | 2.4 | 4.3 |
Non-U.S. | 3.9 | 1.3 | -5.7 |
Deferred income tax (benefit) provision | -9 | 9 | 36.4 |
Provision for income taxes | $68.60 | $94.80 | $86.20 |
Income_Taxes_Schedule_of_Recon
Income Taxes (Schedule of Reconciliation of Income Taxes at Statutory Rate and Tax Provision) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | |||
Notional U.S. federal income taxes at the statutory rate | ' | $44.30 | $82.60 | $85.10 | |||
Adjustments to reconcile to income tax provision: | ' | ' | ' | ' | |||
U.S. state income tax provision, net | ' | 4.8 | 7.1 | 5.9 | |||
Rate difference between non-U.S. and U.S. jurisdictions | ' | -2.2 | [1],[2] | -3.5 | [1],[2] | -16.8 | [1],[2] |
Domestic manufacturing deduction | ' | -2.5 | -3 | 0 | |||
Valuation allowances, nonrecurring | ' | 3.4 | 0 | 0 | |||
Adjustments to accrued income tax liabilities and uncertain tax positions | ' | 8.6 | [1] | 1.2 | [1] | -1 | [1] |
Interest on accrued income tax liabilities and uncertain tax positions | ' | 4.7 | [1] | 1.1 | [1] | 1.9 | [1] |
Withholding tax, net | ' | 0.3 | 0.4 | 3.8 | |||
Credits, principally research | -2.3 | -6.2 | [3] | -0.8 | [3] | -4.1 | [3] |
Permanently nondeductible and nontaxable items | ' | 12 | 8.1 | 8.4 | |||
Other | ' | 1.4 | 1.6 | 3 | |||
Provision for income taxes | ' | $68.60 | $94.80 | $86.20 | |||
[1] | Includes impact of items relating to entities retained by Covidien in connection with the Separation. | ||||||
[2] | Excludes non-deductible charges and other items which are broken out separately in the statutory rate reconciliation presented. Also includes the impact of certain valuation allowances. | ||||||
[3] | Due to the December 31, 2011 tax law expiration, fiscal 2012 includes U.S. Research Credits for only the three months ended December 31, 2011. During fiscal 2013, the legislation was extended, with a retroactive effective date of January 1, 2012. As such, fiscal 2013 includes approximately $2.3 million of credit related to the period January 1, 2012 through September 28, 2012. |
Income_Taxes_Schedule_of_Unrec
Income Taxes (Schedule of Unrecognized Tax Benefit Activity) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ' | ' | ' |
Balance at beginning of fiscal year | $165.50 | $168.40 | $175.70 |
Unrecognized tax benefits retained by Covidien | -153.7 | 0 | 0 |
Unrecognized tax benefits transferred from Covidien | 84.2 | 0 | 0 |
Additions related to current year tax positions | 3.5 | 1.3 | 2.2 |
Additions related to prior period tax positions | 6.6 | 1.6 | 1.1 |
Reductions related to prior period tax positions | -4.3 | -1.9 | -3.9 |
Settlements | -1.6 | -1.7 | -6.7 |
Lapse of statute of limitations | -0.1 | -2.2 | 0 |
Balance at end of fiscal year | 100.1 | 165.5 | 168.4 |
Cash advance paid in connection with proposed settlements | 0 | -23.5 | -23.5 |
Balance at end of fiscal year, net of cash advance | $100.10 | $142 | $144.90 |
Income_Taxes_Schedule_of_Unrec1
Income Taxes (Schedule of Unrecognized Tax Benefits Balance Sheet Location) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 24, 2010 |
In Millions, unless otherwise specified | ||||
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefits | $100.10 | $165.50 | $168.40 | $175.70 |
Accrued and Other Current Liabilities | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefits | 23.4 | 0 | ' | ' |
Other Income Tax Liabilities | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefits | 76.7 | 13.4 | ' | ' |
Parent Company Investment | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefits | $0 | $152.10 | ' | ' |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Taxes Payable) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Operating Loss Carryforwards [Line Items] | ' | ' |
Total income taxes payable | $181.30 | $22 |
Accrued and Other Current Liabilities | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Accrued and other current liabilities | 28.2 | 2.6 |
Other Income Tax Liabilities | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Other income tax liabilities | $153.10 | $19.40 |
Income_Taxes_Schedule_of_Tax_Y
Income Taxes (Schedule of Tax Years Subject to Examination) (Details) | 12 Months Ended |
Sep. 27, 2013 | |
U.S. - Federal and State | ' |
Income Tax Examination [Line Items] | ' |
Tax years that remain subject to examination | '1996 |
Ireland | ' |
Income Tax Examination [Line Items] | ' |
Tax years that remain subject to examination | '2009 |
Netherlands | ' |
Income Tax Examination [Line Items] | ' |
Tax years that remain subject to examination | '2013 |
Switzerland | ' |
Income Tax Examination [Line Items] | ' |
Tax years that remain subject to examination | '2012 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Taxes Activity) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Accrued liabilities and reserves | $53.80 | $47.40 |
Inventories | 30.5 | 36.4 |
Tax loss and credit carryforwards | 53.6 | 1.2 |
Environmental liabilities | 27.3 | 66.4 |
Rebate reserves | 43.4 | 38.1 |
Indemnification reserves | 8.2 | 14.9 |
Postretirement benefits | 30.2 | 67.7 |
Federal and state benefit of uncertain tax positions and interest | 47.1 | 5.7 |
Deferred intercompany interest | 19.2 | 0 |
Other | 30.8 | 13.9 |
Total deferred tax assets, gross | 344.1 | 291.7 |
Deferred tax liabilities: | ' | ' |
Property, plant and equipment | -160.5 | -139.9 |
Intangible assets | -113.1 | -89.1 |
Investment in partnership | -173.6 | 0 |
Total deferred tax liabilities, gross | -447.2 | -229 |
Net deferred tax (liability) asset before valuation allowances | -103.1 | 62.7 |
Valuation allowances | -30 | -15.3 |
Net deferred tax (liability) asset | ($133.10) | $47.40 |
Income_Taxes_Schedule_of_Defer1
Income Taxes (Schedule of Deferred Taxes Balance Sheet Location) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Deferred Taxes Balance Sheet Location [Abstract] | ' | ' |
Deferred income taxes (current asset) | $171.10 | $119.90 |
Other non-current assets | 7.5 | 3.8 |
Accrued and other current liabilities | -1.6 | -2.6 |
Deferred income taxes (non-current liability) | -310.1 | -73.7 |
Net deferred tax (liability) asset | ($133.10) | $47.40 |
Earnings_Loss_per_Share_Detail
Earnings (Loss) per Share (Details) | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Jun. 28, 2013 |
Earnings (Loss) per Share [Abstract] | ' | ' | ' | ' |
Weighted-average shares for basic earnings (loss) per share (in shares) | 57.7 | 57.7 | 57.7 | ' |
Effect of share options and restricted shares (in shares) | 0.1 | 0 | 0 | ' |
Weighted-average shares for diluted earnings (loss) per share (in shares) | 57.8 | 57.7 | 57.7 | ' |
Distribution ratio | 0.125 | ' | ' | 0.125 |
Antidilutive securities excluded from weighted-average shares (in shares) | 0.5 | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials and supplies | $68.80 | $74.10 |
Work in process | 191.5 | 184.7 |
Finished goods | 142.8 | 176.5 |
Inventories | $403.10 | $435.30 |
Property_Plant_and_Equipment_N
Property, Plant and Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | $1,873.70 | $1,751.40 | ' |
Accumulated depreciation | 876.3 | 806.2 | ' |
Depreciation | 104.2 | 103.6 | 92.8 |
Property Under Capital Lease | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 17.8 | 17 | ' |
Accumulated depreciation | 15.8 | 14.3 | ' |
Demonstration Equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation | $3.60 | $3.40 | $3.90 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $1,873.70 | $1,751.40 |
Less: accumulated depreciation | -876.3 | -806.2 |
Property, plant and equipment, net | 997.4 | 945.2 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 60.4 | 60 |
Buildings | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 316.6 | 297.3 |
Capitalized Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 76.4 | 59.9 |
Machinery and Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 1,226.60 | 1,152.80 |
Construction in Progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $193.70 | $181.40 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Schedule Of Goodwill) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Goodwill [Roll Forward] | ' |
Beginning balance | $507.50 |
Acquisitions | 24.5 |
Ending balance | 532 |
Specialty Pharmaceuticals | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 287.8 |
Acquisitions | 24.5 |
Ending balance | 312.3 |
Global Medical Imaging | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 219.7 |
Acquisitions | 0 |
Ending balance | $219.70 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Schedule Of Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Schedule of Intangible Asset by Major Class [Line Items] | ' | ' | ' |
Finite-lived intangible assets, gross | $648.20 | $574.90 | ' |
Accumulated amortization | 279.7 | 244.3 | ' |
Indefinite-lived intangible assets, gross | 53.6 | 35 | ' |
Intangible asset amortization | 35.4 | 27.3 | 27 |
Trademarks | ' | ' | ' |
Schedule of Intangible Asset by Major Class [Line Items] | ' | ' | ' |
Indefinite-lived intangible assets, gross | 35 | 35 | ' |
In-process research and development | ' | ' | ' |
Schedule of Intangible Asset by Major Class [Line Items] | ' | ' | ' |
Indefinite-lived intangible assets, gross | 18.6 | 0 | ' |
Completed Technology | ' | ' | ' |
Schedule of Intangible Asset by Major Class [Line Items] | ' | ' | ' |
Finite-lived intangible assets, gross | 449.2 | 376.1 | ' |
Accumulated amortization | 196.6 | 173.7 | ' |
Licensing Agreements | ' | ' | ' |
Schedule of Intangible Asset by Major Class [Line Items] | ' | ' | ' |
Finite-lived intangible assets, gross | 191.1 | 191.1 | ' |
Accumulated amortization | 79.3 | 67.1 | ' |
Trademarks | ' | ' | ' |
Schedule of Intangible Asset by Major Class [Line Items] | ' | ' | ' |
Finite-lived intangible assets, gross | 7.9 | 7.7 | ' |
Accumulated amortization | $3.80 | $3.50 | ' |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Schedule of Future Amortization Expense, Intangible Assets) (Details) (USD $) | Sep. 27, 2013 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Fiscal 2014 | $35.40 |
Fiscal 2015 | 35.4 |
Fiscal 2016 | 35.3 |
Fiscal 2017 | 33.9 |
Fiscal 2018 | $25.20 |
Debt_Schedule_of_Long_term_deb
Debt (Schedule of Long term debt and Capital lease obligation) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | ||
In Millions, unless otherwise specified | ||||
Current maturities of long-term debt: | ' | ' | ||
Capital lease obligation | $1.40 | $1.30 | ||
Total current debt | 1.5 | 1.3 | ||
Long-term debt: | ' | ' | ||
Capital lease obligation | 1.8 | 3.1 | ||
Total long-term debt | 918.3 | 8.9 | ||
Total debt | 919.8 | 10.2 | ||
Debentures | 7.00% Debenture | ' | ' | ||
Long-term debt: | ' | ' | ||
Long term debt, excluding current maturities | 0 | [1] | 5.8 | [1] |
Debentures | 9.50% Debenture | ' | ' | ||
Long-term debt: | ' | ' | ||
Long term debt, excluding current maturities | 10.4 | [2] | 0 | [2] |
Debentures | 8.00% Debenture | ' | ' | ||
Long-term debt: | ' | ' | ||
Long term debt, excluding current maturities | 8 | [2] | 0 | [2] |
Senior Notes | 3.50% Senior Note | ' | ' | ||
Long-term debt: | ' | ' | ||
Long term debt, excluding current maturities | 299.9 | 0 | ||
Senior Notes | 4.75% Senior Note | ' | ' | ||
Long-term debt: | ' | ' | ||
Long term debt, excluding current maturities | 598.2 | 0 | ||
Loans Payable | ' | ' | ||
Current maturities of long-term debt: | ' | ' | ||
Loan payable | $0.10 | $0 | ||
[1] | Under the terms of the Separation and Distribution Agreement, the 7.00% debentures due December 2013 were retained by Covidien. | |||
[2] | Under the terms of the Separation and Distribution Agreement, the 8.00% and 9.50% debentures due in March 2023 and May 2022, respectively, were transferred to the Company. |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Mar. 31, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Sep. 27, 2013 | Mar. 31, 2013 | |
Debentures | Debentures | Debentures | Line of Credit | Line of Credit | Senior Notes | Senior Notes | Senior Notes | Line of Credit | Letter of Credit | ||
7.00% Debenture | 8.00% Debenture | 9.50% Debenture | 3.50% Senior Note | 4.75% Senior Note | LIBOR | Line of Credit | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | $250,000,000 | ' | ' | ' | ' | ' | $150,000,000 |
Term of debt instrument | ' | ' | ' | ' | '5 years | ' | '10 years | ' | ' | ' | ' |
Variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' |
Facility fees for letters of credit | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Borrowings, outstanding | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | 600,000,000 | ' | ' |
Stated interest rate | ' | 7.00% | 8.00% | 9.50% | ' | ' | ' | 3.50% | 4.75% | ' | ' |
Aggregate net proceeds | $889,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Schedule_of_Maturities_of
Debt (Schedule of Maturities of Long-term Debt including Capital Lease Obligation) (Details) (USD $) | Sep. 27, 2013 |
In Millions, unless otherwise specified | |
Schedule of Maturities of Long-term Debt including Capital Lease Obligation [Abstract] | ' |
Fiscal 2014 | $1.50 |
Fiscal 2015 | 1.4 |
Fiscal 2016 | 0.4 |
Fiscal 2017 | 0 |
Fiscal 2018 | $300 |
Retirement_Plans_Narrative_Det
Retirement Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Number of life insurance contract held in rabbi trust | 135 | ' | ' |
Rabbi trust life insurance contracts, carrying value | $54.60 | $37.80 | ' |
Death benefit of rabbi trust life insurance contracts | 143.1 | 93.9 | ' |
Loans outstanding against rabbi trust life insurance contracts | 35.3 | 16.9 | ' |
Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Insurance contracts that serve as colleteral for certain non-U.S. pension plan benefits | 13.1 | 9.8 | ' |
401(k) Retirement Plan | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employer matching contribution, percent of match | 50.00% | ' | ' |
Total expense related to continuing operations | $22.70 | $20.90 | $19.30 |
Retirement_Plans_Schedule_of_N
Retirement Plans (Schedule of Net Periodic Benefit Cost) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Pension Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $5 | $5 | $6.20 |
Interest cost | 18.2 | 21.2 | 23.5 |
Expected return on plan assets | -29.6 | -24.5 | -25.3 |
Amortization of net actuarial loss | 12.3 | 11.7 | 11.8 |
Amortization of prior service cost | 0.6 | 0.7 | 0.8 |
Plan settlements loss | 6.8 | -0.2 | 11.1 |
Curtailments | 0 | 0 | 1.9 |
Special termination benefits | 0 | 0 | 0.1 |
Net period benefit cost (credit) | 13.3 | 13.9 | 30.1 |
U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Allocation of total pension plan assets and projected benefit obligation | 73.00% | ' | ' |
Postretirement Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 0.1 | 0.1 | 0.2 |
Interest cost | 2.4 | 3.1 | 3.8 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 0.3 | 0.2 | 0.5 |
Amortization of prior service cost | -9.1 | -9.2 | -9 |
Plan settlements loss | 0 | 0 | 0 |
Curtailments | 0 | 0 | -4.6 |
Special termination benefits | 0 | 0 | 0 |
Net period benefit cost (credit) | ($6.30) | ($5.80) | ($9.10) |
Retirement_Plans_Schedule_of_B
Retirement Plans (Schedule of Benefit Obligation, Plan Assets and Funded Status of Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Pension Benefits | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Projected benefit obligations at beginning of year | $533.20 | $491.10 | ' |
Service cost | 5 | 5 | 6.2 |
Interest cost | 18.2 | 21.2 | 23.5 |
Employee contributions | 0.3 | 0.3 | ' |
Actuarial (gain) loss | -24 | 53.3 | ' |
Benefits and administrative expenses paid | -21.9 | -32.3 | ' |
Plan amendments | -9 | 0 | ' |
Plan settlements | -24.2 | -0.3 | ' |
Plan combinations | 18.4 | 0 | ' |
Curtailments | 0 | 0 | ' |
Currency translation | 5.7 | -5.1 | ' |
Projected benefit obligations at end of year | 501.7 | 533.2 | 491.1 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 432 | 383.6 | ' |
Actual return on plan assets | 17.3 | 63 | ' |
Employer contributions | 44.4 | 23.4 | ' |
Employee contributions | 0.3 | 0.3 | ' |
Benefits and administrative expenses paid | -21.9 | -32.3 | ' |
Plan settlements | -24.2 | -0.3 | ' |
Plan combinations | 2.3 | 0 | ' |
Currency translation | 5.8 | -5.7 | ' |
Fair value of plan assets at end of year | 456 | 432 | 383.6 |
Funded status at end of year | -45.7 | -101.2 | ' |
Postretirement Benefits | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Projected benefit obligations at beginning of year | 80.3 | 80.1 | ' |
Service cost | 0.1 | 0.1 | 0.2 |
Interest cost | 2.4 | 3.1 | 3.8 |
Employee contributions | 0 | 0 | ' |
Actuarial (gain) loss | -9.3 | 2.8 | ' |
Benefits and administrative expenses paid | -3.8 | -5.8 | ' |
Plan amendments | -16.5 | 0 | ' |
Plan settlements | 0 | 0 | ' |
Plan combinations | 0 | 0 | ' |
Curtailments | 0 | 0 | ' |
Currency translation | 0 | 0 | ' |
Projected benefit obligations at end of year | 53.2 | 80.3 | 80.1 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 0 | 0 | ' |
Actual return on plan assets | 0 | 0 | ' |
Employer contributions | 3.8 | 5.8 | ' |
Employee contributions | 0 | 0 | ' |
Benefits and administrative expenses paid | -3.8 | -5.8 | ' |
Plan settlements | 0 | 0 | ' |
Plan combinations | 0 | 0 | ' |
Currency translation | 0 | 0 | ' |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | ($53.20) | ($80.30) | ' |
Retirement_Plans_Schedule_of_A
Retirement Plans (Schedule of Amounts Recognized in Balance Sheet) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Amounts recognized on the consolidated and combined balance sheet: | ' | ' |
Non-current liabilities | ($108) | ($189.60) |
Pension Benefits | ' | ' |
Amounts recognized on the consolidated and combined balance sheet: | ' | ' |
Non-current assets | 17.1 | 17.7 |
Current liabilities | -3.1 | -2.2 |
Non-current liabilities | -59.7 | -116.7 |
Net amount recognized on the consolidated and combined balance sheet | -45.7 | -101.2 |
Amounts recognized in accumulated other comprehensive income consist of: | ' | ' |
Net actuarial loss | -102.9 | -127.5 |
Prior service credit (cost) | 7.9 | -1.8 |
Net amount recognized in accumulated other comprehensive income | -95 | -129.3 |
Postretirement Benefits | ' | ' |
Amounts recognized on the consolidated and combined balance sheet: | ' | ' |
Non-current assets | 0 | 0 |
Current liabilities | -4.9 | -7.4 |
Non-current liabilities | -48.3 | -72.9 |
Net amount recognized on the consolidated and combined balance sheet | -53.2 | -80.3 |
Amounts recognized in accumulated other comprehensive income consist of: | ' | ' |
Net actuarial loss | -2.4 | -12.1 |
Prior service credit (cost) | 28.2 | 20.8 |
Net amount recognized in accumulated other comprehensive income | $25.80 | $8.70 |
Retirement_Plans_Schedule_of_A1
Retirement Plans (Schedule of Amounts to be Amortized From Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Pension Benefits | ' |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | ' |
Amortization of net actuarial loss | ($8.30) |
Amortization of prior service cost | 0.6 |
Postretirement Benefits | ' |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | ' |
Amortization of net actuarial loss | 0 |
Amortization of prior service cost | $9.30 |
Retirement_Plans_Schedule_of_P
Retirement Plans (Schedule of Plans with Accumulated Benefit Obligations in Excess of Plan Assets) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Accumulated benefit obligation | $499.90 | $527.60 |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ' | ' |
Accumulated benefit obligation | 377.6 | 414.3 |
Fair value of plan assets | $316.20 | $295.40 |
Retirement_Plans_Schedule_of_A2
Retirement Plans (Schedule of Actuarial Assumptions) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Effect of One-Percentage Point Change in Assumed Healthcare Cost Trend Rates | ' | ' | ' |
One-Percentage-Point Increase, effect on total of service and interest cost | 0.1 | ' | ' |
One-Percentage-Point Decrease, effect on total of service and interest cost | -0.1 | ' | ' |
One-Percentage-Point Increase, effect on postretirement benefit obligation | 0.4 | ' | ' |
One-Percentage-Point Decrease, effect on postretirement obligation | -0.3 | ' | ' |
U.S. Plans | ' | ' | ' |
Weighted Average-Assumptions Used in Calculating Net Periodic Benefit Cost | ' | ' | ' |
Discount rate | 3.50% | 4.40% | 4.90% |
Expected return on plan assets | 7.90% | 7.50% | 7.60% |
Rate of compensation increase | 0.00% | 2.80% | 2.80% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | ' | ' | ' |
Discount rate | 4.30% | 3.50% | 4.40% |
Rate of compensation increase | 0.00% | 0.00% | 2.80% |
Non-U.S. Plans | ' | ' | ' |
Weighted Average-Assumptions Used in Calculating Net Periodic Benefit Cost | ' | ' | ' |
Discount rate | 4.00% | 5.20% | 4.70% |
Expected return on plan assets | 3.50% | 4.00% | 4.00% |
Rate of compensation increase | 3.70% | 3.70% | 3.70% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | ' | ' | ' |
Discount rate | 3.70% | 4.00% | 5.20% |
Rate of compensation increase | 3.50% | 3.70% | 3.70% |
Postretirement Benefits | ' | ' | ' |
Weighted Average-Assumptions Used in Calculating Net Periodic Benefit Cost | ' | ' | ' |
Discount rate | 3.20% | 4.10% | 4.60% |
Weighted-Average Assumptions Used in Calculating Benefit Obligations | ' | ' | ' |
Discount rate | 4.00% | 3.20% | 4.10% |
Healthcare Cost Trend Assumptions | ' | ' | ' |
Healthcare cost trend rate assumed for next fiscal year | 7.30% | 7.50% | ' |
Rate to which the cost trend rate is assumed to decline | 4.50% | 4.50% | ' |
Fiscal year the ultimate trend rate is achieved | '2029 | '2029 | ' |
Retirement_Plans_Schedule_of_W
Retirement Plans (Schedule of Weighted Average Allocation of Plan Assets) (Details) | 12 Months Ended | |
Sep. 27, 2013 | Sep. 28, 2012 | |
U.S. Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, weighted-average plan asset allocation | 100.00% | 100.00% |
U.S. Plans | Equity Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, target plan asset allocation | 42.00% | ' |
Pension plans, weighted-average plan asset allocation | 42.00% | 58.00% |
U.S. Plans | Debt Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, target plan asset allocation | 58.00% | ' |
Pension plans, weighted-average plan asset allocation | 56.00% | 40.00% |
U.S. Plans | Cash and cash equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, weighted-average plan asset allocation | 1.00% | 1.00% |
U.S. Plans | Real Estate and Other | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, weighted-average plan asset allocation | 1.00% | 1.00% |
Non-U.S. Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, weighted-average plan asset allocation | 100.00% | 100.00% |
Non-U.S. Plans | Equity Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, weighted-average plan asset allocation | 7.00% | 8.00% |
Non-U.S. Plans | Debt Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, weighted-average plan asset allocation | 3.00% | 2.00% |
Non-U.S. Plans | Cash and cash equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, weighted-average plan asset allocation | 0.00% | 0.00% |
Non-U.S. Plans | Real Estate and Other | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, weighted-average plan asset allocation | 90.00% | 90.00% |
Non-U.S. Plans | Japan | Equity Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, target plan asset allocation | 39.00% | ' |
Non-U.S. Plans | Japan | Debt Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, target plan asset allocation | 53.00% | ' |
Non-U.S. Plans | Japan | Cash and cash equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, target plan asset allocation | 8.00% | ' |
Non-U.S. Plans | Netherlands | Equity Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, target plan asset allocation | 10.00% | ' |
Non-U.S. Plans | Netherlands | Debt Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, target plan asset allocation | 2.00% | ' |
Non-U.S. Plans | Netherlands | Insurance Contract | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension plans, target plan asset allocation | 88.00% | ' |
Retirement_Plans_Schedule_of_F
Retirement Plans (Schedule of Fair Value of Plan Assets) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | ||
Insurance Contract | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at beginning of year | $105.10 | $97.80 | ||
Net unrealized gains | 3.3 | 15.1 | ||
Net purchases, sales and issuances | -1.8 | -2.9 | ||
Currency translation | 5.4 | -4.9 | ||
Fair value of plan assets at end of year | 112 | 105.1 | ||
Recurring | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 456 | 432 | ||
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 end of year | 329.5 | 311.5 | ||
Recurring | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 14.5 | 15.4 | ||
Recurring | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 112 | 105.1 | ||
Recurring | U.S. Small Mid Cap | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 19.3 | 24 | ||
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 end of year | 19.3 | 24 | ||
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 end of year | 0 | 0 | ||
Recurring | U.S. Small Mid Cap | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Recurring | U.S. Large Cap | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 76.9 | 101.2 | ||
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 end of year | 76.9 | 101.2 | ||
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 end of year | 0 | 0 | ||
Recurring | U.S. Large Cap | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Recurring | International | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 52.2 | 66.8 | ||
Recurring | International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 43.9 | 57.2 | ||
Recurring | International | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 8.3 | 9.6 | ||
Recurring | International | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Recurring | Diversified Fixed Income Funds | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 170 | [1] | 97.4 | [1] |
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 end of year | 166.7 | [1] | 97.4 | [1] |
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 end of year | 3.3 | [1] | 0 | [1] |
Recurring | Diversified Fixed Income Funds | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | [1] | 0 | [1] |
Recurring | High Yield Bonds | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 11.7 | 15.9 | ||
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 end of year | 11.7 | 15.9 | ||
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 end of year | 0 | 0 | ||
Recurring | High Yield Bonds | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Recurring | Emerging Market Fund | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 7.9 | 12 | ||
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 end of year | 7.9 | 12 | ||
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 end of year | 0 | 0 | ||
Recurring | Emerging Market Fund | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Recurring | Diversified/ Commingled Funds | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 2.2 | ||
Recurring | Diversified/ Commingled 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 end of year | 0 | 0 | ||
Recurring | Diversified/ Commingled Funds | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 2.2 | ||
Recurring | Diversified/ Commingled Funds | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Recurring | Insurance Contract | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 112 | 105.1 | ||
Recurring | Insurance Contract | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Recurring | Insurance Contract | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Recurring | Insurance Contract | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 112 | 105.1 | ||
Recurring | Other | Fair Value | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 6 | 7.4 | ||
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 end of year | 3.1 | 3.8 | ||
Recurring | Other | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | 2.9 | 3.6 | ||
Recurring | Other | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ||
Fair value of plan assets at end of year | $0 | $0 | ||
[1] | Diversified fixed income funds consist of U.S. Treasury bonds, mortgage-backed securities, corporate bonds, asset-backed securities and U.S. agency bonds. |
Retirement_Plans_Schedule_of_E
Retirement Plans (Schedule of Expected Benefit Payments) (Details) (USD $) | 12 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 28, 2013 |
Pension Benefits | Pension Benefits | Postretirement Benefits | Postretirement Benefits | Covidien | |
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Defined benefit plan, employer contributions | $44.40 | $23.40 | $3.80 | $5.80 | $37.50 |
Fiscal 2014 | 40.6 | ' | 4.9 | ' | ' |
Fiscal 2015 | 35.1 | ' | 5.2 | ' | ' |
Fiscal 2016 | 34 | ' | 4.9 | ' | ' |
Fiscal 2017 | 33.5 | ' | 4.5 | ' | ' |
Fiscal 2018 | 33 | ' | 4.2 | ' | ' |
Fiscal 2019-2023 | $152.90 | ' | $17.40 | ' | ' |
Share_Plans_Narrative_Details
Share Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation cost | $16,200,000 | $11,100,000 | $10,600,000 |
Tax benefit from share-based compensation cost | 5,800,000 | 3,800,000 | 3,400,000 |
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 | 22,000,000 | ' | ' |
Weighted-average period to recognize unrecognized compensation cost, share options | '2 years 3 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 5 months | ' | ' |
Unrecognized compensation cost, restricted share units | 18,200,000 | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
ESPP employer match - percentage of employee payroll deduction | 15.00% | ' | ' |
ESPP employer match - maximum employee contribution | 25,000 | ' | ' |
Post-Separation | Restricted Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value of restricted share units granted in period | 7,300,000 | ' | ' |
Fair value of restricted share units vested in period | $100,000 | ' | ' |
Fiscal 2014 | Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
ESPP employer match - percentage of employee payroll deduction | 25.00% | ' | ' |
2013 Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares authorized under 2013 Plan | 5.7 | ' | ' |
Share_Plans_Schedule_of_Incent
Share Plans (Schedule of Incentive Equity Awards Issued Upon Completion of Conversion) (Details) (USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
Conversion of Covidien Equity Awards | ' | ' |
Share options outstanding | 2,760,231 | 2,399,822 |
Post-Separation | ' | ' |
Conversion of Covidien Equity Awards | ' | ' |
Share options outstanding | ' | 2,399,822 |
Weighted-average grant-date fair value, share options | ' | 7.96 |
Restricted Share Units | ' | ' |
Conversion of Covidien Equity Awards | ' | ' |
Non-share option equity awards outstanding | 724,269 | 575,213 |
Weighted-average grant date fair value, restricted share units | 40.62 | 38.97 |
Restricted Share Units | Post-Separation | ' | ' |
Conversion of Covidien Equity Awards | ' | ' |
Non-share option equity awards outstanding | ' | 575,213 |
Weighted-average grant date fair value, restricted share units | ' | 38.97 |
Share_Plans_Schedule_of_Share_
Share Plans (Schedule of Share Option Award Status Upon Completion of the Conversion) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Jun. 28, 2013 |
Post-Separation | |||
Conversion of Covidien Equity Awards | ' | ' | ' |
Share options outstanding | 2,760,231 | 2,399,822 | 2,399,822 |
Weighted-average exercise price, outstanding share options | $37.30 | $35.94 | $35.94 |
Weighted-average remaining contractual term, outstanding share options | '8 years 2 months | ' | '8 years 0 months 0 days |
Aggregate intrinsic value, outstanding share options | $17.30 | ' | $22.90 |
Share options exerciseable | 536,405 | ' | 550,097 |
Weighted-average exercise price, exercisable share options | $31.04 | ' | $30.94 |
Weighted-average remaining contractual term, exercisable share options | '5 years 8 months | ' | '5 years 11 months 0 days |
Aggregate intrinsic value, exercisable share options | $6.70 | ' | $8 |
Share_Plans_Schedule_of_the_Va
Share Plans (Schedule of the Valuation Assumptions Used in the Conversion) (Details) (USD $) | Sep. 27, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 28, 2013 |
Pre-Separation | Post-Separation | |||
Weighted Average Assumptions | ' | ' | ' | ' |
Expected share price volatility | ' | ' | 26.00% | 32.00% |
Risk-free interest rate | ' | ' | 0.99% | 0.99% |
Expected annual dividend per share | ' | ' | 1.65% | 0.00% |
Expected life of options (in years) | ' | ' | '3 years 9 months 18 days | '3 years 9 months 18 days |
Fair value per option | ' | ' | $18.04 | $16.51 |
Share options outstanding | 2,760,231 | 2,399,822 | 1,745,258 | 2,399,822 |
Share_Plans_Schedule_of_Share_1
Share Plans (Schedule of Share Option Activity) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 |
Share Option Activity [Roll Forward] | ' | ' | ' |
Beginning balance | 2,399,822 | ' | ' |
Granted | 406,169 | ' | ' |
Exercised | -17,332 | ' | ' |
Expired/Forfeited | -28,428 | ' | ' |
Ending balance | 2,760,231 | 2,760,231 | ' |
Share options vested and unvested expected to vest | 2,394,431 | 2,394,431 | ' |
Share options exerciseable | 536,405 | 536,405 | ' |
Weighted-average exercise price, outstanding share options | $37.30 | $37.30 | $35.94 |
Weighted-average exercise price, granted share options | $44 | ' | ' |
Weighted-average exercise price, exercised share options | $30.04 | ' | ' |
Weighted-average exercise price, expired and forfeited share options | $36.85 | ' | ' |
Weighted-average exercise price, vested and unvested expected to vest share options | $37.27 | $37.27 | ' |
Weighted-average exercise price, exercisable share options | $31.04 | $31.04 | ' |
Weighted-average remaining contractual term, outstanding share options | ' | '8 years 2 months | ' |
Weighted-average remaining contractual term, vested and unvested expected to vest share options | ' | '8 years 2 months | ' |
Weighted-average remaining contractual term, exercisable share options | ' | '5 years 8 months | ' |
Aggregate intrinsic value, outstanding share options | $17.30 | $17.30 | ' |
Aggregate intrinsic value, vested and unvested expected to vest share options | 15.1 | 15.1 | ' |
Aggregate intrinsic value, exercisable share options | $6.70 | $6.70 | ' |
Share_Plans_Schedule_of_Restri
Share Plans (Schedule of Restricted Share Unit Activity) (Details) (Restricted Share Units, USD $) | 3 Months Ended | |
Sep. 27, 2013 | Jun. 28, 2013 | |
Restricted Share Units | ' | ' |
Restricted Share Unit Activity [Roll Forward] | ' | ' |
Beginning balance | 575,213 | ' |
Granted | 167,546 | ' |
Vested | -1,656 | ' |
Forfeited | -16,834 | ' |
Ending balance | 724,269 | ' |
Weighted-average grant date fair value, restricted share units | $40.62 | $38.97 |
Weighted-average grant date fair value, granted restricted share units | $43.86 | ' |
Weighted-average grant date fair value, vested restricted share units | $31.28 | ' |
Weighted-average grant date fair value, forfeited restricted share units | $38.57 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | $84.90 | $98.50 | $86.60 |
Pre-tax change | 45.6 | -18.2 | 16.4 |
Income tax benefit (provision) | -22 | 4.6 | -4.5 |
Ending balance | 108.5 | 84.9 | 98.5 |
Currency Translation | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | 157.1 | 160 | 160.5 |
Pre-tax change | 1.5 | -2.9 | -0.5 |
Income tax benefit (provision) | 0 | 0 | 0 |
Ending balance | 158.6 | 157.1 | 160 |
Unrecognized Loss on Derivatives | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | 0 | 0 | 0 |
Pre-tax change | -7.3 | 0 | 0 |
Income tax benefit (provision) | 0 | 0 | 0 |
Ending balance | -7.3 | 0 | 0 |
Unrecognized Gain (Loss) on Benefit Plans | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | -72.2 | -61.5 | -73.9 |
Pre-tax change | 51.4 | -15.3 | 16.9 |
Income tax benefit (provision) | -22 | 4.6 | -4.5 |
Ending balance | ($42.80) | ($72.20) | ($61.50) |
Transactions_with_Former_Paren1
Transactions with Former Parent Company (Details) (Covidien, USD $) | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 |
Separation and Distribution Agreement | Separation and Distribution Agreement | Tax Matters Agreement | Tax Matters Agreement | Minimum | Maximum | Net Sales | Net Sales | Net Sales | Cost of sales | Cost of sales | Cost of sales | Selling, general and administrative | Selling, general and administrative | Selling, general and administrative | Prepaid expenses and other current assets | Prepaid expenses and other current assets | Other Current Liabilities [Member] | Other Current Liabilities [Member] | |
Tax Matters Agreement | Tax Matters Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory sold | ' | ' | ' | ' | ' | ' | $51,200,000 | $54,200,000 | $52,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,400,000 | 34,700,000 | 41,100,000 | ' | ' | ' | ' | ' | ' | ' |
Allocated expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,600,000 | 49,200,000 | 56,300,000 | ' | ' | ' | ' |
Due from related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,200,000 | 22,300,000 | ' | ' |
Due to related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,300,000 | 61,900,000 |
Initial cash capitalization | ' | 168,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated cash upon completion of distribution | ' | 168,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment payment benchmark | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Final adjustment payment | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax agreement, tax threshold | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in ownership percentage | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of restriction after dividend distribution | ' | ' | ' | ' | '2 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantees_Details
Guarantees (Details) (USD $) | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | Others | Maryland Heights, Missouri | Saint Louis, Missouri | Mallinckrodt Baker | Mallinckrodt Baker | Mallinckrodt Baker | Mallinckrodt Baker | Mallinckrodt Baker | Mallinckrodt Baker | Mallinckrodt Baker |
Surety Bond | Letter of Credit | Indemnification Agreement [Member] | Indemnification Agreement [Member] | Indemnification Agreement [Member] | Indemnification Agreement [Member] | Indemnification Agreement [Member] | Enviornmental, Health and Safety Matters | Enviornmental, Health and Safety Matters | ||
Other Liabilities | Other Liabilities | Other Assets | Other Assets | Indemnification Agreement [Member] | Indemnification Agreement [Member] | |||||
Other Liabilities | Other Liabilities | |||||||||
Guarantor Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantor obligations, obligation term | ' | ' | ' | '17 years | ' | ' | ' | ' | ' | ' |
Guarantors obligation | ' | ' | ' | ' | $20.10 | $22.40 | ' | ' | $17.20 | $18.30 |
Maximum future payments | 38.1 | 58 | 21.1 | 75.5 | ' | ' | ' | ' | ' | ' |
Escrow | ' | ' | ' | $30 | ' | ' | $23.50 | $24.50 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | Tax Matters Agreement | Asbestos Matters | Accrued and other current liabilities | Orrington Maine Environmental Matter | Subpoena from US Attorney's Office for the Northern District of California | Coldwater Creek, St. Louis County, Missouri | Products Liability Litigation | |
Covidien | Case | Case | Defendent | |||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement | ' | ' | ' | ' | ' | $3.50 | ' | ' |
Remedial cost range, minimum | 46.4 | ' | ' | ' | 95.8 | ' | ' | ' |
Remedial cost range, maximum | 81.5 | ' | ' | ' | 170.3 | ' | ' | ' |
Environmental liabilities | 46.4 | ' | ' | ' | 95.8 | ' | ' | ' |
Environmental liabilities, current | ' | ' | ' | 6.9 | ' | ' | ' | ' |
Number of cases | ' | ' | ' | ' | ' | ' | 6 | ' |
Number of defendants | ' | ' | ' | ' | ' | ' | ' | 4 |
Asbestos related pending cases | ' | ' | 11,500 | ' | ' | ' | ' | ' |
Estimation of liability, historical term | ' | ' | '5 years | ' | ' | ' | ' | ' |
Estimation of liability, expected future term of claims | ' | ' | '7 years | ' | ' | ' | ' | ' |
Tax agreement, tax threshold | ' | $200 | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Schedule of Purchase Oligations) (Details) (USD $) | Sep. 27, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Fiscal 2014 | $74.90 |
Fiscal 2015 | 23.7 |
Fiscal 2016 | 22.3 |
Fiscal 2017 | 0 |
Fiscal 2018 | $0 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Schedule of Asset Retirement Obligations) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Asset Retirement Obligation [Roll Forward] | ' | ' |
Beginning Balance | $46.40 | $45.90 |
Additions | 0.4 | 0 |
Accretion expense | 2.9 | 2.5 |
Payments | -0.2 | 0 |
Currency translation | 1.1 | -2 |
Ending Balance | $50.60 | $46.40 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Schedule of Minimum Lease Payments for Non-cancelable Leases) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Rent expense | $16.90 | $15.50 | $14.40 |
Operating Leases | ' | ' | ' |
Operating leases, fiscal 2014 | 19.3 | ' | ' |
Operating leases, fiscal 2015 | 13.3 | ' | ' |
Operating leases, fiscal 2016 | 10.4 | ' | ' |
Operating leases, fiscal 2017 | 8.7 | ' | ' |
Operating leases, fiscal 2018 | 4.8 | ' | ' |
Operating leases, thereafter | 10.2 | ' | ' |
Operating leases, total minimum lease payments | 66.7 | ' | ' |
Capital Leases | ' | ' | ' |
Capital leases, fiscal 2014 | 1.5 | ' | ' |
Capital leases, fiscal 2015 | 1.5 | ' | ' |
Capital leases, fiscal 2016 | 0.4 | ' | ' |
Capital leases, fiscal 2017 | 0 | ' | ' |
Capital leases, fiscal 2018 | 0 | ' | ' |
Capital leases, thereafter | 0 | ' | ' |
Capital leases, total minimum lease payments | 3.4 | ' | ' |
Capital leases, interest portion of total minimum lease payments | -0.2 | ' | ' |
Capital leases, present value of minimum lease payments | 3.2 | ' | ' |
Industrial Revenue Bonds by Saint Louis County [Member] | ' | ' | ' |
Capital Leased Assets [Line Items] | ' | ' | ' |
Plant assets exchanged for IRBs | $11.30 | ' | ' |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 27, 2013 | Mar. 31, 2013 |
Senior Notes | Designated as Hedging Instrument | Designated as Hedging Instrument | |||
Forward Interest Rate Lock Contract | Forward Interest Rate Lock Contract | ||||
Cash Fow Hedges | Cash Fow Hedges | ||||
contract | |||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Foreign currency loss | $14.20 | $4.30 | ' | ' | ' |
Forward interest rate lock contracts, number | ' | ' | ' | ' | 3 |
Forward interest rate lock contracts, notional amount | ' | ' | ' | ' | 300 |
Term of debt instrument | ' | ' | '10 years | ' | ' |
Loss resulting from terminated derivatives, recorded in AOCI | ' | ' | ' | 7.6 | ' |
Loss remaining in AOCI related to terminated derivatives | ' | ' | ' | $7.30 | ' |
Derivative_Instruments_Schedul
Derivative Instruments (Schedule of Net Gain (Loss) on Foreign Exchange Contracts) (Details) (Not Designated as Hedging Instrument, Foreign Exchange Forward and Option, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' |
Net gain (loss) on foreign exchange forward and option contracts not designated as hedging instruments | $10.50 | ($0.20) | ($3.60) |
Cost of sales | ' | ' | ' |
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' |
Net gain (loss) on foreign exchange forward and option contracts not designated as hedging instruments | 2.2 | -0.3 | -3.7 |
Selling, general and administrative | ' | ' | ' |
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' |
Net gain (loss) on foreign exchange forward and option contracts not designated as hedging instruments | 0 | 0.1 | 0.1 |
Other Income [Member] | ' | ' | ' |
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' |
Net gain (loss) on foreign exchange forward and option contracts not designated as hedging instruments | $8.30 | $0 | $0 |
Derivative_Instruments_Schedul1
Derivative Instruments (Schedule of Fair Value Of Foreign Exchange Contracts) (Details) (Foreign Exchange Forward and Option, Not Designated as Hedging Instrument, USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Prepaid expenses and other current assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign exchange forward and option contracts, asset | $0.90 | $0 |
Accrued and other current liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign exchange forward and option contracts, liability | $1.40 | $0 |
Derivative_Instruments_Schedul2
Derivative Instruments (Schedule of Net Losses on Gas Commodity Swap Contracts) (Details) (Cash Fow Hedges, Designated as Hedging Instrument, Gas Commodity Swap Contract, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net losses on commodity swap contracts | ($1.10) | ($3.20) | ($3.20) |
Cost of sales | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net losses on commodity swap contracts | -0.3 | -0.9 | -0.8 |
Selling, general and administrative | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net losses on commodity swap contracts | ($0.80) | ($2.30) | ($2.40) |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Oct. 01, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Apr. 30, 2013 | Sep. 27, 2013 | Apr. 30, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | ||
Spain and Italy | Spain and Italy | Spain and Italy | CNS Therapeutics, Inc. | CNS Therapeutics, Inc. | Debentures | Debentures | Debentures | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Recurring | Recurring | Recurring | Recurring | |||||||||||||
7.00% Debenture | 8.00% Debenture | 9.50% Debenture | 3.50% Senior Note | 3.50% Senior Note | 4.75% Senior Note | 4.75% Senior Note | Level 1 | Level 1 | Level 3 | Level 3 | Level 1 | Level 2 | Level 3 | Securities | ||||||||||||||||||
Level 2 | Level 2 | Level 2 | Level 1 | Level 1 | ||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Increase (decrease) in rabbi trust securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,100,000 | |
Fair value of contingent consideration upon acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 6,900,000 | ' | |
Maximum contingent payments for acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Restricted cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | 24,600,000 | ' | ' | ' | ' | ' | ' | |
Cash surrender value of life insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,700,000 | 47,600,000 | ' | ' | ' | ' | |
Increase (decrease) in cash surrender value of life insurance contracts | ' | ' | ' | ' | ' | ' | ' | ' | 20,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 8.00% | 9.50% | 3.50% | 3.50% | 4.75% | 4.75% | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | $545,200,000 | $570,000,000 | [1] | $585,300,000 | $504,000,000 | $513,100,000 | $516,300,000 | $523,100,000 | $503,700,000 | $2,204,500,000 | $2,056,200,000 | $2,021,800,000 | $51,700,000 | $55,000,000 | $60,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | Operations in the third quarter of fiscal 2013 were impacted by the Separation. |
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 $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Total | ' | ' |
Assets: | ' | ' |
Debt and equity securities held in rabbi trusts | $35.30 | $25.20 |
Foreign exchange forward and option contracts | 0.9 | ' |
Total assets at fair value | 36.2 | ' |
Liabilities: | ' | ' |
Deferred compensation liabilities | 13.5 | 9.3 |
Contingent consideration | 6.9 | ' |
Foreign exchange forward and option contracts | 1.4 | ' |
Total liabilities at fair value | 21.8 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets: | ' | ' |
Debt and equity securities held in rabbi trusts | 22.6 | 13.7 |
Foreign exchange forward and option contracts | 0.9 | ' |
Total assets at fair value | 23.5 | ' |
Liabilities: | ' | ' |
Deferred compensation liabilities | 0 | 0 |
Contingent consideration | 0 | ' |
Foreign exchange forward and option contracts | 1.4 | ' |
Total liabilities at fair value | 1.4 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets: | ' | ' |
Debt and equity securities held in rabbi trusts | 12.7 | 11.5 |
Foreign exchange forward and option contracts | 0 | ' |
Total assets at fair value | 12.7 | ' |
Liabilities: | ' | ' |
Deferred compensation liabilities | 13.5 | 9.3 |
Contingent consideration | 0 | ' |
Foreign exchange forward and option contracts | 0 | ' |
Total liabilities at fair value | 13.5 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' |
Assets: | ' | ' |
Debt and equity securities held in rabbi trusts | 0 | 0 |
Foreign exchange forward and option contracts | 0 | ' |
Total assets at fair value | 0 | ' |
Liabilities: | ' | ' |
Deferred compensation liabilities | 0 | 0 |
Contingent consideration | 6.9 | ' |
Foreign exchange forward and option contracts | 0 | ' |
Total liabilities at fair value | $6.90 | ' |
Schedule_of_Reconciliation_of_
(Schedule of Reconciliation of Changes in Fair Value of Contingent Consideration) (Details) (Recurring, Contingent Consideration, CNS Therapeutics, Inc., USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Recurring | Contingent Consideration | CNS Therapeutics, Inc. | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Beginning balance | $0 |
Fair value of contingent consideration | 6.9 |
Ending balance | $6.90 |
Schedule_of_Carrying_Amount_an
(Schedule of Carrying Amount and Fair Value of Long-term Debt) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loan payable | $0.10 | $0 |
Carrying Value | Debentures | 7.00% Debenture | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 0 | 5.8 |
Carrying Value | Debentures | 9.50% Debenture | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 10.4 | 0 |
Carrying Value | Debentures | 8.00% Debenture | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 8 | 0 |
Carrying Value | Senior Notes | 3.50% Senior Note | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 299.9 | 0 |
Carrying Value | Senior Notes | 4.75% Senior Note | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 598.2 | 0 |
Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loan payable | 0.1 | 0 |
Fair Value | Debentures | 7.00% Debenture | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 0 | 5.8 |
Fair Value | Debentures | 9.50% Debenture | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 14.3 | 0 |
Fair Value | Debentures | 8.00% Debenture | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 10.2 | 0 |
Fair Value | Senior Notes | 3.50% Senior Note | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 293.7 | 0 |
Fair Value | Senior Notes | 4.75% Senior Note | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | $568.50 | $0 |
Schedule_of_Accounts_Receivabl
(Schedule of Accounts Receivable Concentration Risk) (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Spain | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Accounts receivable | $9.20 | $15 |
Italy | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Accounts receivable | $12.60 | $12.50 |
Schedules_of_Concentration_of_
(Schedules of Concentration of Risk) (Details) | 12 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |
Distributor Concentration Risk | Net Sales Attributable to Distributors | Cardinal Health, Inc. | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 18.00% | 19.00% | 19.00% |
Distributor Concentration Risk | Net Sales Attributable to Distributors | McKesson Corporation | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 15.00% | 14.00% | 13.00% |
Distributor Concentration Risk | Net Sales Attributable to Distributors | Amerisource Bergen Corporation | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 9.00% | 9.00% | 10.00% |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Cardinal Health, Inc. | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 18.00% | 19.00% | ' |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | McKesson Corporation | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 22.00% | 20.00% | ' |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Amerisource Bergen Corporation | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 14.00% | 10.00% | ' |
Product Concentration Risk | Net Sales Attributable to Products | Optiray (CMDS) | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 14.00% | 17.00% | 19.00% |
Product Concentration Risk | Net Sales Attributable to Products | Acetaminophen products (API) | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 10.00% | 11.00% | 11.00% |
Segment_and_Geographical_Data_1
Segment and Geographical Data (Schedule of Segment Reporting Information by Business Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net sales | $545,200,000 | $570,000,000 | [1] | $585,300,000 | $504,000,000 | $513,100,000 | $516,300,000 | $523,100,000 | $503,700,000 | $2,204,500,000 | $2,056,200,000 | $2,021,800,000 | |||||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 144,800,000 | 235,200,000 | 240,700,000 | ||||||
Intangible asset amortization | ' | ' | ' | ' | ' | ' | ' | ' | -35,400,000 | -27,300,000 | -27,000,000 | ||||||
Restructuring and related charges, net | ' | ' | ' | ' | ' | ' | ' | ' | -35,800,000 | -19,200,000 | -10,000,000 | ||||||
Separation costs | ' | ' | ' | ' | ' | ' | ' | ' | -74,200,000 | -25,500,000 | -2,900,000 | ||||||
Assets | 3,556,600,000 | ' | ' | ' | 2,898,900,000 | ' | ' | ' | 3,556,600,000 | 2,898,900,000 | ' | ||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 139,600,000 | 130,900,000 | 119,800,000 | ||||||
Restructuring and related costs, accelerated depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | 8,000,000 | 1,600,000 | ||||||
Specialty Pharmaceuticals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Restructuring and related charges, net | ' | ' | ' | ' | ' | ' | ' | ' | -16,400,000 | -11,300,000 | -6,500,000 | ||||||
Global Medical Imaging | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Restructuring and related charges, net | ' | ' | ' | ' | ' | ' | ' | ' | -16,400,000 | -7,900,000 | -3,800,000 | ||||||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,153,300,000 | [2] | 2,002,000,000 | [2] | 1,969,400,000 | [2] | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 424,000,000 | 377,100,000 | 353,900,000 | ||||||
Operating Segments | Specialty Pharmaceuticals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,217,600,000 | 1,005,200,000 | 909,400,000 | ||||||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 311,700,000 | 162,800,000 | 121,500,000 | ||||||
Assets | 1,666,600,000 | ' | ' | ' | 1,571,600,000 | ' | ' | ' | 1,666,600,000 | 1,571,600,000 | ' | ||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 97,600,000 | [3] | 88,700,000 | [3] | 77,500,000 | [3] | |||
Operating Segments | Global Medical Imaging | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 935,700,000 | 996,800,000 | 1,060,000,000 | ||||||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 112,300,000 | 214,300,000 | 232,400,000 | ||||||
Assets | 1,158,600,000 | ' | ' | ' | 1,085,700,000 | ' | ' | ' | 1,158,600,000 | 1,085,700,000 | ' | ||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 42,000,000 | [3] | 42,200,000 | [3] | 42,300,000 | [3] | |||
Corporate, Non-Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 51,200,000 | [4] | 54,200,000 | [4] | 52,400,000 | [4] | |||
Corporate and allocated expenses | ' | ' | ' | ' | ' | ' | ' | ' | -133,800,000 | [5] | -69,900,000 | [5] | -73,300,000 | [5] | |||
Intangible asset amortization | ' | ' | ' | ' | ' | ' | ' | ' | -35,400,000 | -27,300,000 | -27,000,000 | ||||||
Restructuring and related charges, net | ' | ' | ' | ' | ' | ' | ' | ' | -35,800,000 | [6] | -19,200,000 | [6] | -10,000,000 | [6] | |||
Separation costs | ' | ' | ' | ' | ' | ' | ' | ' | -74,200,000 | -25,500,000 | -2,900,000 | ||||||
Assets | 731,400,000 | [7] | ' | ' | ' | 241,600,000 | [7] | ' | ' | ' | 731,400,000 | [7] | 241,600,000 | [7] | ' | ||
Intersegment Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ||||||
[1] | Operations in the third quarter of fiscal 2013 were impacted by the Separation. | ||||||||||||||||
[2] | Amounts represent sales to external customers. There were no intersegment sales. | ||||||||||||||||
[3] | Depreciation for certain shared facilities is allocated based on occupancy percentage. | ||||||||||||||||
[4] | Represents products that were sold to Covidien, which is discussed in Note 16. | ||||||||||||||||
[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 of $2.6 million, $8.0 million and $1.6 million for fiscal 2013, 2012 and 2011, respectively. | ||||||||||||||||
[7] | Consists of assets used in managing the Company's total business and not allocated to any one segment. |
Segment_and_Geographical_Data_2
Segment and Geographical Data (Schedule of Net Sales from External Customers by Product) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | $545,200,000 | $570,000,000 | [1] | $585,300,000 | $504,000,000 | $513,100,000 | $516,300,000 | $523,100,000 | $503,700,000 | $2,204,500,000 | $2,056,200,000 | $2,021,800,000 | |||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,153,300,000 | [2] | 2,002,000,000 | [2] | 1,969,400,000 | [2] | |
Operating Segments | Specialty Pharmaceuticals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,217,600,000 | 1,005,200,000 | 909,400,000 | ||||
Operating Segments | Specialty Pharmaceuticals | Generics and API | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,011,200,000 | 848,800,000 | 824,700,000 | ||||
Operating Segments | Specialty Pharmaceuticals | Brands | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 206,400,000 | 156,400,000 | 84,700,000 | ||||
Operating Segments | Global Medical Imaging | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 935,700,000 | 996,800,000 | 1,060,000,000 | ||||
Operating Segments | Global Medical Imaging | Contrast Media and Delivery Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 498,100,000 | 542,000,000 | 595,500,000 | ||||
Operating Segments | Global Medical Imaging | Nuclear Imaging | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 437,600,000 | 454,800,000 | 464,500,000 | ||||
Corporate, Non-Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Schedule of Net Sales from External Customers by Product [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $51,200,000 | [3] | $54,200,000 | [3] | $52,400,000 | [3] | |
[1] | Operations in the third quarter of fiscal 2013 were impacted by the Separation. | ||||||||||||||
[2] | Amounts represent sales to external customers. There were no intersegment sales. | ||||||||||||||
[3] | Represents products that were sold to Covidien, which is discussed in Note 16. |
Segment_and_Geographical_Data_3
Segment and Geographical Data (Schedule of Net Sales and Long-Lived Assets by Geographic Area) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 24, 2010 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||||||||||
United States | United States | United States | EMEA | EMEA | EMEA | EMEA | EMEA | EMEA | Other Countries | Other Countries | Other Countries | ||||||||||||||||||||||
Ireland | Ireland | Ireland | |||||||||||||||||||||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net sales | $545,200,000 | $570,000,000 | [1] | $585,300,000 | $504,000,000 | $513,100,000 | $516,300,000 | $523,100,000 | $503,700,000 | $2,204,500,000 | $2,056,200,000 | $2,021,800,000 | $1,518,700,000 | [2] | $1,350,200,000 | [2] | $1,293,800,000 | [2] | $404,300,000 | [2] | $411,000,000 | [2] | $419,700,000 | [2] | ' | ' | ' | $281,500,000 | [2] | $295,000,000 | [2] | $308,300,000 | [2] |
Long-lived assets | $1,026,100,000 | ' | ' | ' | $972,000,000 | ' | ' | ' | $1,026,100,000 | $972,000,000 | $931,400,000 | $893,300,000 | [3] | $847,700,000 | [3] | $802,000,000 | [3] | $81,000,000 | [3],[4] | $72,200,000 | [3],[4] | $81,300,000 | [3],[4] | $48,700,000 | $45,500,000 | $48,900,000 | $51,800,000 | [3] | $52,100,000 | [3] | $48,100,000 | [3] | |
[1] | Operations in the third quarter of fiscal 2013 were impacted by the Separation. | ||||||||||||||||||||||||||||||||
[2] | 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. | ||||||||||||||||||||||||||||||||
[3] | Long-lived assets are primarily composed of property, plant and equipment. | ||||||||||||||||||||||||||||||||
[4] | Includes long-lived assets located in Ireland of $48.7 million, $45.5 million and $48.9 million at the end of fiscal 2013, 2012 and 2011, respectively. |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $545.20 | $570 | [1] | $585.30 | $504 | $513.10 | $516.30 | $523.10 | $503.70 | $2,204.50 | $2,056.20 | $2,021.80 | |||||||
Gross profit | 252.1 | 265.8 | [1] | 273.5 | 233.5 | 233.3 | 243.2 | 253.5 | 234.8 | 1,024.90 | 964.8 | 914.9 | |||||||
Income (loss) from continuing operations | 31.2 | -27.7 | [1] | 34.5 | 19.8 | 27.3 | 35.1 | 42.3 | 36.6 | 57.8 | 141.3 | 157 | |||||||
Income (loss) from discontinued operations, net of income taxes | 2.3 | -0.2 | [1] | -0.5 | -0.6 | -1.1 | -1.9 | -3.4 | -0.3 | 1 | -6.7 | -6.3 | |||||||
Net income (loss) | $33.50 | ($27.90) | [1] | $34 | $19.20 | $26.20 | $33.20 | $38.90 | $36.30 | $58.80 | $134.60 | $150.70 | |||||||
Income from continuing operations, basic (in usd per share) | $0.54 | [2],[3] | ($0.48) | [1],[2],[3] | $0.60 | [2],[3] | $0.34 | [2],[3] | $0.47 | [2],[3] | $0.61 | [2],[3] | $0.73 | [2],[3] | $0.63 | [2],[3] | $1 | $2.45 | $2.72 |
Income from continuing operations, diluted (in usd per share) | $0.54 | [2],[3] | ($0.48) | [1],[2],[3] | $0.60 | [2],[3] | $0.34 | [2],[3] | $0.47 | [2],[3] | $0.61 | [2],[3] | $0.73 | [2],[3] | $0.63 | [2],[3] | $1 | $2.45 | $2.72 |
[1] | Operations in the third quarter of fiscal 2013 were impacted by the Separation. | ||||||||||||||||||
[2] | The computation of basic and diluted earnings per share assumes that the number of shares outstanding for the first three quarters of fiscal 2013 and each quarter in fiscal 2012 was equal to the number of ordinary shares of Mallinckrodt outstanding on June 28, 2013, immediately following the distribution of one ordinary share of Mallinckrodt for every eight ordinary shares of Covidien. | ||||||||||||||||||
[3] | 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. |