Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 29, 2017 | Nov. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Mallinckrodt plc | |
Entity Central Index Key | 1,567,892 | |
Trading Symbol | MNK | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Ordinary Shares Outstanding | 95,004,912 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Net sales | $ 793.9 | $ 887.2 | $ 2,429.3 | $ 2,569.6 |
Cost of sales | 393.3 | 397 | 1,194 | 1,165.5 |
Gross profit | 400.6 | 490.2 | 1,235.3 | 1,404.1 |
Selling, general and administrative expenses | 205.7 | 267.8 | 745.9 | 702 |
Research and development expenses | 59.5 | 67.9 | 190.9 | 200.8 |
Restructuring charges, net | 14.3 | 6.8 | 32.1 | 29.2 |
Non-restructuring impairment charges | 0 | 0 | 0 | 16.9 |
Losses (gains) on divestiture and license | 0.4 | 0 | (56.6) | 0 |
Operating income | 120.7 | 147.7 | 323 | 455.2 |
Interest expense | (92.6) | (94) | (279) | (286.8) |
Interest income | 1.3 | 0.5 | 2.8 | 1.1 |
Other income (expense), net | 3.7 | (0.6) | 6.2 | (2.6) |
Income from continuing operations before income taxes | 33.1 | 53.6 | 53 | 166.9 |
Income tax benefit | (31.2) | (56.4) | (110.8) | (218.3) |
Income from continuing operations | 64.3 | 110 | 163.8 | 385.2 |
(Loss) income from discontinued operations, net of income taxes | (0.6) | 5 | 361.9 | 47.4 |
Net income | $ 63.7 | $ 115 | $ 525.7 | $ 432.6 |
Basic earnings per share (Note 7): | ||||
Income from continuing operations, per share | $ 0.66 | $ 1.02 | $ 1.65 | $ 3.53 |
(Loss) income from discontinued operations, per share | (0.01) | 0.05 | 3.64 | 0.43 |
Net income, per share | $ 0.66 | $ 1.07 | $ 5.28 | $ 3.97 |
Basic weighted-averaged shares outstanding (in shares) | 96.7 | 107.6 | 99.5 | 109.1 |
Diluted earnings per share (Note 7): | ||||
Income from continuing operations, per share | $ 0.66 | $ 1.01 | $ 1.64 | $ 3.50 |
(Loss) income from discontinued operations, per share | (0.01) | 0.05 | 3.63 | 0.43 |
Net income, per share | $ 0.66 | $ 1.06 | $ 5.27 | $ 3.93 |
Diluted weighted-average shares outstanding (in shares) | 97 | 108.6 | 99.8 | 110 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Net income | $ 63.7 | $ 115 | $ 525.7 | $ 432.6 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustments | 5.6 | 1.9 | 13 | 9.5 |
Unrecognized gain on derivatives, net of $-, $0.2, $0.2 and $0.2 tax | 0.3 | 0 | 0.9 | 0.4 |
Unrecognized (loss) gain on benefit plans, net of $-, ($19.1), ($31.4) and ($14.0) tax | (0.5) | (21.8) | 45.4 | (30.2) |
Unrecognized (loss) gain on investments, net of $-, $-, $- and $- tax | (10.5) | 0 | 0.1 | 0 |
Total other comprehensive income (loss), net of tax | (5.1) | (19.9) | 59.4 | (20.3) |
Comprehensive Income | $ 58.6 | $ 95.1 | $ 585.1 | $ 412.3 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Unrecognized gain derivatives, tax | $ 0 | $ 0.2 | $ 0.2 | $ 0.2 |
Unrecognized (loss) gain on benefit plans, tax | 0 | (19.1) | (31.4) | (14) |
Unrecognized (loss) gain on investments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 29, 2017 | Dec. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 371.8 | $ 342 |
Accounts receivable, less allowance for doubtful accounts of $4.0 and $4.0 | 464.3 | 431 |
Inventories | 341.3 | 350.7 |
Prepaid expenses and other current assets | 121.1 | 131.9 |
Notes receivable | 154 | 0 |
Current assets held for sale | 0 | 310.9 |
Total current assets | 1,452.5 | 1,566.5 |
Property, plant and equipment, net | 962.4 | 881.5 |
Goodwill | 3,459.5 | 3,498.1 |
Intangible assets, net | 8,545.9 | 9,000.5 |
Other assets | 191.6 | 259.7 |
Total Assets | 14,611.9 | 15,206.3 |
Current Liabilities: | ||
Current maturities of long-term debt | 318.2 | 271.2 |
Accounts payable | 104.9 | 112.1 |
Accrued payroll and payroll-related costs | 84.4 | 76.1 |
Accrued interest | 78.1 | 68.7 |
Income taxes payable | 28.1 | 101.7 |
Accrued and other current liabilities | 440.4 | 557.1 |
Current liabilities held for sale | 0 | 120.3 |
Total current liabilities | 1,054.1 | 1,307.2 |
Long-term debt | 5,517.4 | 5,880.8 |
Pension and postretirement benefits | 67.5 | 136.4 |
Environmental liabilities | 73.1 | 73 |
Deferred income taxes | 2,294.1 | 2,398.1 |
Other income tax liabilities | 78.5 | 70.4 |
Other liabilities | 414.2 | 356.1 |
Total Liabilities | (9,498.9) | (10,222) |
Shareholders' Equity: | ||
Preferred shares | 0 | 0 |
Ordinary shares | 23.7 | 23.6 |
Ordinary shares held in treasury at cost | (1,352.3) | (919.8) |
Additional paid-in capital | 5,474.1 | 5,424 |
Retained earnings | 980.6 | 529 |
Accumulated other comprehensive loss | (13.1) | (72.5) |
Total Shareholders' Equity | 5,113 | 4,984.3 |
Total Liabilities and Shareholders' Equity | 14,611.9 | 15,206.3 |
Ordinary A | ||
Shareholders' Equity: | ||
Ordinary A shares | $ 0 | $ 0 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) $ in Millions | Sep. 29, 2017USD ($)$ / sharesshares | Sep. 29, 2017€ / shares | Dec. 30, 2016USD ($)$ / sharesshares | Dec. 30, 2016€ / shares |
Allowance for doubtful accounts | $ | $ 4 | $ 4 | ||
Preferred shares, par value (in usd per share) | $ / shares | $ 0.20 | $ 0.20 | ||
Preferred shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Preferred shares, shares issued (in shares) | 0 | 0 | ||
Preferred shares, shares outstanding (in shares) | 0 | 0 | ||
Ordinary shares, par value (in usd per share) | $ / shares | $ 0.20 | $ 0.20 | ||
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued (in shares) | 118,666,830 | 118,182,944 | ||
Ordinary shares, shares outstanding (in shares) | 95,662,446 | 104,667,545 | ||
Ordinary shares held in treasury at cost (in shares) | 23,004,384 | 13,515,399 | ||
Ordinary A | ||||
Ordinary shares, par value (in usd per share) | € / shares | € 1 | € 1 | ||
Ordinary shares, shares authorized (in shares) | 40,000 | 40,000 | ||
Ordinary shares, shares issued (in shares) | 0 | 0 | ||
Ordinary A shares, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities: | ||
Net income | $ 525.7 | $ 432.6 |
Adjustments to reconcile net cash from operating activities: | ||
Depreciation and amortization | 606.5 | 628.5 |
Share-based compensation | 46.1 | 34.4 |
Deferred income taxes | (128.7) | (324) |
Non-cash impairment charges | 0 | 16.9 |
Gain on divestitures | (418.1) | 1.7 |
Other non-cash items | 40.8 | 54.7 |
Changes in assets and liabilities, net of the effects of acquisitions: | ||
Accounts receivable, net | (34.7) | (37.2) |
Inventories | (18.2) | (2.8) |
Accounts payable | (30.2) | 3.3 |
Income taxes | (68.1) | 11.6 |
Other | (72.6) | 53.5 |
Net cash from operating activities | 448.5 | 873.2 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (151.3) | (133.9) |
Acquisitions and intangibles, net of cash acquired | (35.9) | (245.4) |
Proceeds from divestitures, net of cash | 576.9 | 3 |
Other | 0.5 | 5.3 |
Net cash from investing activities | 390.2 | (371) |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 540 | 36.3 |
Repayment of external debt and capital leases | (887.5) | (439) |
Debt financing costs | (12.7) | 0 |
Proceeds from exercise of share options | 4 | 10.4 |
Repurchase of shares | (437.7) | (377.5) |
Other | (18.6) | (23) |
Net cash from financing activities | (812.5) | (792.8) |
Effect of currency rate changes on cash | 2.7 | 1.8 |
Net change in cash, cash equivalents and restricted cash | 28.9 | (288.8) |
Cash and Cash Equivalents and Restricted Cash | 361.1 | 588.4 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 390 | 299.6 |
Cash and cash equivalents | 371.8 | 280.5 |
Restricted Cash and Investments, Current | 0 | 0.1 |
Restricted Cash and Investments, Noncurrent | $ 18.2 | $ 19 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Changes in Shareholders' Equity Statement - 9 months ended Sep. 29, 2017 - USD ($) $ in Millions | Total | Ordinary Shares | Treasury Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance, ordinary shares (in shares) at Dec. 30, 2016 | 118,182,944 | 118,200,000 | ||||
Beginning balance, treasury shares (in shares) at Dec. 30, 2016 | 13,515,399 | 13,500,000 | ||||
Beginning balance at Dec. 30, 2016 | $ 4,984.3 | $ 23.6 | $ (919.8) | $ 5,424 | $ 529 | $ (72.5) |
Impact of accounting standard adoptions | (72.1) | (72.1) | ||||
Net income | 525.7 | 525.7 | ||||
Currency translation adjustments | 13 | 13 | ||||
Change in derivatives, net of tax | 0.9 | 0.9 | ||||
Unrecognized gain on benefit plans | 45.4 | 45.4 | ||||
Unrecognized gain on investments | 0.1 | 0.1 | ||||
Share options exercised (in shares) | 100,000 | |||||
Share options exercised (in usd) | 4 | $ 0 | 4 | |||
Vesting of restricted shares (in shares) | 400,000 | |||||
Vesting of restricted shares (in usd) | (4.6) | $ 0.1 | (4.7) | 0 | ||
Share-based compensation | 46.1 | 46.1 | ||||
Reissuance of treasury shares | 3.2 | $ 5.2 | (2) | |||
Repurchase of shares (in shares) | 9,500,000 | |||||
Repurchase of shares (in usd) | $ 433 | $ (433) | ||||
Ending balance, ordinary shares (in shares) at Sep. 29, 2017 | 118,666,830 | 118,700,000 | ||||
Ending balance, treasury shares (in shares) at Sep. 29, 2017 | 23,004,384 | 23,000,000 | ||||
Ending balance at Sep. 29, 2017 | $ 5,113 | $ 23.7 | $ (1,352.3) | $ 5,474.1 | $ 980.6 | $ (13.1) |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | 1. Background and Basis of Presentation Background Mallinckrodt plc and its subsidiaries (collectively, "Mallinckrodt" or "the Company"), is a global business that develops, manufactures, markets and distributes specialty pharmaceutical products and therapies. Areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; and analgesics and hemostasis products. The Company operates in two reportable segments, which are further described below: • Specialty Brands includes branded medicines; and • Specialty Generics includes specialty generic drugs, active pharmaceutical ingredients ("API") and external manufacturing. The Company owns or has rights to use the trademarks and trade names that are used in conjunction with the operation of its business. One of the more important trademarks that the Company owns or has rights to use that appears in this Quarterly Report on Form 10-Q is "Mallinckrodt," which is a registered trademark or the subject of pending trademark applications in the United States ("U.S.") and other jurisdictions. Solely for convenience, the Company only uses the ™ or ® symbols the first time any trademark or trade name is mentioned in the following notes. Such references are not intended to indicate in any way that the Company will not assert, to the fullest extent permitted under applicable law, its rights to its trademarks and trade names. Each trademark or trade name of any other company appearing in the following notes is, to the Company's knowledge, owned by such other company. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in U.S. Dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"). The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of net sales and expenses. Actual results may differ from those estimates. The unaudited condensed consolidated financial statements include the accounts of Mallinckrodt plc, 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 unaudited condensed consolidated financial statements up to the date of disposal and, where appropriate, these operations have been reflected as discontinued operations. Divestitures of product lines and businesses that did not qualify as discontinued operations have been reflected in operating income. All intercompany balances and transactions have been eliminated in consolidation and, in the opinion of management, all normal recurring adjustments necessary for a fair presentation have been included in the interim results reported. The December 30, 2016 balance sheet data was derived from the unaudited condensed consolidated financial statements, but does not include all of the annual disclosures required by GAAP; accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited annual consolidated and combined financial statements included in its Annual Report on Form 10-K for the period ended September 30, 2016, filed with the U.S. Securities and Exchange Commission ("SEC") on November 29, 2016. The Company completed the sale of its Nuclear Imaging business on January 27, 2017. As a result, prior year balances have been recast to present the financial results of this business as a discontinued operation. Fiscal Year The Company historically reported its results based on a "52-53 week" year ending on the last Friday of September. On May 17, 2016, the Board of Directors of the Company approved a change in the Company’s fiscal year end to the last Friday in December from the last Friday in September. The change in fiscal year became effective for the Company’s 2017 fiscal year, which began on December 31, 2016 and will end on December 29, 2017. As a result of the change in fiscal year end, the Company filed a Transition Report on Form 10-Q on February 7, 2017 covering the period from October 1, 2016 through December 30, 2016. Unless otherwise indicated, the three and nine months ended September 29, 2017 refers to the thirteen and thirty-nine week period ended September 29, 2017 and the three and nine months ended September 30, 2016 refers to the fourteen and forty week period ended September 30, 2016 . |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 29, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards Adopted The Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2017-04, "Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment," in January 2017. This update eliminates step 2 from the goodwill impairment test, and requires the goodwill impairment test to be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted this standard in fiscal 2017, which did not have a material impact to the unaudited condensed consolidated financial statements. The Company will apply this standard to prospective goodwill impairment tests. The FASB issued ASU 2016-16, "Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory," in October 2016. This update simplifies the practice of how income tax consequences of an intra-entity transfer of an asset other than inventory should be recognized. Upon adoption, the entity must recognize such income tax consequences when the intra-entity transfer occurs rather than waiting until such time as the asset has been sold to an outside party. The Company early adopted this standard in fiscal 2017, which resulted in a $75.0 million decrease to beginning retained earnings with an offsetting decrease of $67.2 million to other assets and a $7.8 million decrease to prepaid expenses on its unaudited condensed consolidated balance sheet. The prior periods were not restated. The FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," in August 2016 and ASU 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash," in November 2016. These updates provide guidance for nine targeted clarifications with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. The Company early adopted these standards in fiscal 2017 and revised the prior year statement of cash flows. The adoption of ASU 2016-18, regarding presentation of restricted cash, increased the net cash used in investing activities during the nine months ended September 30, 2016 by $47.4 million . The adoption of ASU 2016-15, regarding the other targeted clarifications, did not result in any material changes to the unaudited condensed consolidated financial statements. The FASB issued ASU 2016-09, "Stock Compensation," in March 2016. This update simplifies several aspects of the accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification of certain tax effects within the statement of cash flows. The Company adopted this guidance in fiscal 2017, which resulted in a $2.9 million increase to beginning retained earnings to recognize net operating loss carryforwards, net of a valuation allowance, attributable to excess tax benefits on stock compensation that had not been previously recognized in additional paid-in capital. The FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," in September 2015. This update requires an acquirer to recognize adjustments to the provisional amounts that are identified during the measurement period in the reporting period in which the adjusting amounts are determined. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The Company adopted this standard in fiscal 2017, which did not have any impact on historical acquisitions. The FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory," in July 2015. The issuance of this update is part of the FASB's initiative to more closely align the measurement of inventory between GAAP and International Financial Reporting Standards ("IFRS"). Under the new guidance, inventory must be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company adopted this standard in fiscal 2017, which did not have a material impact to the unaudited condensed consolidated financial statements. Not Yet Adopted The FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities" in August 2017. This update simplifies the application of hedge accounting and enhances the economics of the entity’s risk management activities in its financial statements. The update amends the guidance on designation and measurement for qualifying hedging relationships requiring the application of a modified retrospective approach on the date of adoption. This guidance is effective for the Company in the first quarter of fiscal 2019. The Company is assessing the timing of adoption and the impact of this guidance on the unaudited condensed consolidated financial statements. The FASB issued ASU 2017-09, "Compensation - Stock Compensation: Scope of Modification Accounting," in May 2017. Under the new guidance, the effects of a modification should be accounted for unless all of the following are met: (1) the fair value or calculated intrinsic value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This guidance is effective for the Company in the first quarter of fiscal 2018. The Company expects the impact of this guidance to be immaterial to the unaudited condensed consolidated financial statements upon adoption. The FASB issued ASU 2017-07, "Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost," in March 2017. This update requires that the service cost component be disaggregated from the other components of net benefit cost. Service cost should be reported in the same line item or items as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net benefit cost should be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. This guidance is effective for the Company in the first quarter of fiscal 2018. The Company expects the impact of this guidance to be immaterial to the unaudited condensed consolidated financial statements upon adoption. The FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," in January 2017. This update provides a screen to determine whether or not a set of assets is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of assets is not a business. If the screen is not met, the amendments in this update (1) require that to be considered a business, a set of assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. This guidance is effective for the Company in the first quarter of fiscal 2018. Depending upon the individual facts and circumstances of future transactions, this guidance may result in more transactions being accounted for as asset acquisitions rather than business combinations. The FASB issued ASU 2014-09, "Revenue from Contracts with Customers," in May 2014. The issuance of ASU 2014-09 and IFRS 15, "Revenue from Contracts with Customers," completes the joint effort by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and IFRS. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract(s); (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract(s); and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance is effective for the Company in the first quarter of fiscal year 2018. The FASB subsequently issued additional ASUs to clarify the guidance in ASU 2014-09. The ASUs issued include ASU 2016-08, "Revenue from Contracts with Customers;" ASU 2016-10 "Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing;" and ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients." The Company has completed its assessment of certain customer arrangements and has preliminarily assessed certain other customer arrangements based on the nature of its business; and at this time, the Company does not anticipate a significant impact upon adoption. However, the assessment is ongoing and a more detailed analysis of contracts subject to the preliminary assessment or review of additional contracts may identify a more significant impact. The Company currently expects, in part due to the limited anticipated impact, that it will utilize the modified retrospective transition approach of adopting the ASU. The Company's status of various ASUs are further described within the notes to the financial statements included within the Company's Annual Report filed on Form 10-K for the fiscal year ended September 30, 2016. |
Discontinued Operations and Div
Discontinued Operations and Divestitures | 9 Months Ended |
Sep. 29, 2017 | |
Discontinued Operations [Abstract] | |
Discontinued Operations and Divestitures | 3. Discontinued Operations and Divestitures Discontinued Operations Nuclear Imaging: On January 27, 2017, the Company completed the sale of its Nuclear Imaging business to IBA Molecular ("IBAM") for approximately $690.0 million before tax impacts, including up-front consideration of approximately $574.0 million , up to $77.0 million of contingent consideration and the assumption of certain liabilities. The Company recorded a pre-tax gain on the sale of the Nuclear Imaging business of $362.8 million during the nine months ended September 29, 2017 , which excluded any potential proceeds from the contingent consideration and reflects a charge of $0.6 million during the three months ended September 29, 2017 primarily as a result of the final working capital adjustment associated with the purchase agreement. The following table summarizes the financial results of the Nuclear Imaging business presented in the unaudited condensed consolidated statements of income: Three Months Ended Nine Months Ended Major line items constituting income from discontinued operations September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Net sales $ — $ 108.8 $ 31.6 $ 315.0 Cost of sales — 54.6 15.6 153.8 Selling, general and administrative expenses — 19.1 7.8 64.5 Restructuring charges, net — (0.3 ) — 0.1 Other — 2.2 (0.2 ) 3.6 Income from discontinued operations — 33.2 8.4 93.0 (Loss) gain on divestiture of discontinued operations (0.6 ) — 362.8 — (Loss) income from discontinued operations, before income taxes (0.6 ) 33.2 371.2 93.0 Income tax (benefit) expense (0.1 ) 24.8 5.2 43.8 (Loss) income from discontinued operations, net of income taxes $ (0.5 ) $ 8.4 $ 366.0 $ 49.2 During the three months ended September 29, 2017 , there was an income tax benefit of $0.1 million associated with the $0.6 million loss recognized on divestiture. During the nine months ended September 29, 2017 , there was income tax expense of $0.9 million associated with the $362.8 million gain on divestiture and a $4.3 million income tax expense associated with the $8.4 million income from discontinued operations. The tax impact of the gain recognized on divestiture was favorably impacted by a benefit from permanently deductible items. The following table summarizes the assets and liabilities of the Nuclear Imaging business that are classified as held for sale on the unaudited condensed consolidated balance sheets: September 29, 2017 December 30, 2016 Carrying amounts of major classes of assets included as part of discontinued operations Accounts receivable $ — $ 49.6 Inventories — 20.0 Property, plant and equipment, net — 188.7 Other current and non-current assets — 52.6 Total assets classified as held for sale in the balance sheet $ — $ 310.9 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable $ — $ 19.7 Other current and non-current liabilities — 100.6 Total liabilities classified as held for sale in the balance sheet $ — $ 120.3 The following table summarizes significant cash and non-cash transactions of the Nuclear Imaging business that are included within the unaudited condensed consolidated statements of cash flows for the respective periods: Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Depreciation $ — $ 4.5 $ — $ 14.3 Capital expenditures — 4.0 0.3 7.8 All other notes to the unaudited condensed consolidated financial statements that were impacted by this discontinued operation have been reclassified accordingly. CMDS: On November 27, 2015, the Company completed the sale of its contrast media and delivery systems ("CMDS") business to Guerbet S.A. ("Guerbet") for cash consideration of approximately $270.0 million , subject to net working capital adjustments. During the three months ended September 30, 2016 , the Company had no net sales and a loss on the sale of business of $4.0 million , with $0.4 million related income tax effect. During the nine months ended September 30, 2016 , the Company had $1.8 million of net sales, a $0.2 million income tax effect and $4.4 million loss, net of tax. All activity related to the CMDS business has been reported in discontinued operations. Divestitures On January 30, 2017, the Company announced that it had entered into a definitive agreement to sell its Intrathecal Therapy business to Piramal Enterprises Limited's subsidiary in the United Kingdom ("U.K."), Piramal Critical Care ("Piramal"), for approximately $203.0 million , including fixed consideration of $171.0 million and contingent consideration of up to $32.0 million . The $171.0 million of fixed consideration consisted of $17.0 million received at closing and a $154.0 million note receivable that is due one year from the transaction closing date. The transaction was completed on March 17, 2017. The Company recorded a pre-tax gain on the sale of the business of $56.6 million during the nine months ended September 29, 2017 , which excluded any potential proceeds from the contingent consideration and reflects a post-sale working capital adjustment of $0.4 million during the three months ended September 29, 2017 . The financial results of the Intrathecal Therapy business are presented within continuing operations as this divestiture did not meet the criteria for discontinued operations classification. As part of the divestiture and calculation of the gain, the Company wrote off intangible assets of $48.7 million and goodwill of $49.8 million , from the Specialty Brands segment, ascribed to the Intrathecal Therapy business. The Company is committed to reimburse up to $7.3 million of product development expenses incurred by Piramal. The remaining items included in the gain calculation are attributable to inventory transferred and transaction costs incurred by the Company. |
Acquisitions, License Agreement
Acquisitions, License Agreements and Other Investments | 9 Months Ended |
Sep. 29, 2017 | |
Acquisitions [Abstract] | |
Acquisitions, License Agreements and Other Investments | 4. Acquisitions, License Agreements and Other Investments During the three months ended September 29, 2017 and September 30, 2016 , the Company recognized $2.7 million and $3.4 million , respectively, of expense primarily associated with fair value adjustments of acquired inventory. During the nine months ended September 29, 2017 and September 30, 2016 , the Company recognized $8.6 million and $8.1 million , respectively, of expense primarily associated with fair value adjustments of acquired inventory. The amount of acquisition-related costs included within operating income for the three and nine months ended September 29, 2017 were $1.2 million and $2.3 million , respectively. The amount of acquisition-related costs included within operating income for the three and nine months ended September 30, 2016 was $3.8 million and $5.8 million , respectively. The Company's acquisitions and license agreements are described further within the notes to the financial statements included within the Company's Annual Report filed on Form 10-K for the fiscal year ended September 30, 2016. InfaCare On September 25, 2017, the Company acquired InfaCare Pharmaceutical Corporation ("InfaCare") in a transaction valued at approximately $80.4 million , with additional payments of up to $345.0 million dependent on regulatory and sales milestones ("the InfaCare Acquisition"). Consideration for the transaction consisted of approximately $37.2 million in cash paid to the prior shareholders of InfaCare and the assumption of approximately $43.2 million of debt and other liabilities, which was repaid in conjunction with the InfaCare Acquisition. InfaCare is focused on development and commercialization of proprietary pharmaceuticals for neonatal and pediatric patient populations. InfaCare's developmental product stannsoporfin, a heme oxygenase inhibitor, is under investigation for its potential to reduce the production of bilirubin, the elevation of which can contribute to serious consequences in infants. The fair value of the contingent consideration associated with the transaction was $35.0 million at September 25, 2017. The InfaCare Acquisition was funded with cash on hand. Stratatech On August 31, 2016, the Company acquired Stratatech Corporation ("Stratatech") - which includes StrataGraft®, a regenerative skin tissue and a technology platform for genetically enhanced skin tissues - for upfront considerations of $76.0 million , and contingent milestone payments, which are primarily regulatory, and royalty obligations that could result in up to $121.0 million of additional consideration ("the Stratatech Acquisition"). Stratatech is a regenerative medicine company focused on the development of unique, proprietary skin substitute products. Developmental products include StrataGraft® regenerative skin tissue ("StrataGraft") and a technology platform for genetically enhanced skin tissues. The Stratatech Acquisition was funded with cash on hand. Hemostasis Products On February 1, 2016, the Company acquired three commercial stage topical hemostasis drugs from The Medicines Company ("the Hemostasis Acquisition") - RECOTHROM® Thrombin topical (Recombinant) ("Recothrom"), PreveLeak TM Surgical Sealant ("PreveLeak"), and RAPLIXA TM (Fibrin Sealant (Human)) ("Raplixa") - for upfront consideration of $173.5 million , inclusive of existing inventory, and contingent sales-based milestone payments that could result in up to $395.0 million of additional consideration. The fair value of the contingent consideration and acquired contingent liabilities associated with the transaction were $52.0 million and $10.6 million , respectively, at February 1, 2016. The Hemostasis Acquisition was funded with cash on hand. Fair Value Allocation The following amounts represent the preliminary allocations of the fair value of the identifiable assets acquired and liabilities assumed for the InfaCare Acquisition, including preliminary goodwill, intangible assets and the related deferred tax balances. The Company expects to complete its valuation analysis and finalize deferred tax balances as of the acquisition date no later than twelve months from the date of the acquisition. The changes in the purchase price allocation and preliminary goodwill based on the final valuation may include, but are not limited to, finalization of working capital settlements, the impact of U.S. state tax rates in determining the deferred tax balances and changes in assumptions utilized in the preliminary valuation report. InfaCare Cash and cash equivalents $ 1.3 Intangible assets 113.5 Goodwill 13.3 Other assets, current and non-current 0.1 Total assets acquired 128.2 Current liabilities 14.7 Deferred tax liabilities, net (non-current) 11.3 Contingent consideration 35.0 Total debt 30.0 Total liabilities assumed 91.0 Net assets acquired $ 37.2 The following is a reconciliation of the total consideration to net assets acquired: InfaCare Total consideration, net of cash $ 70.9 Plus: cash assumed in acquisition 1.3 Total consideration 72.2 Less: contingent consideration (35.0 ) Net assets acquired $ 37.2 Intangible assets acquired consist of the following: InfaCare Amount Amortization Period In-process research and development ("IPR&D") - stannsoporfin $ 113.5 Non-Amortizable The IPR&D intangible assets relates to stannsoporfin. The fair value of the IPR&D was determined using the income approach, which is a valuation technique that provides an estimate of fair value of the assets based on the market participant expectations of cash flows the asset would generate. The cash flows were discounted at a rate of 13.5% . The IPR&D discount rate for stannsoporfin was developed after assigning a probability of success to achieving the projected cash flows based on the current stage of development, inherent uncertainty in the FDA approval process and risks associated with commercialization of a new product. Based on the Company's preliminary estimate, the excess of purchase price over net tangible and intangible assets acquired resulted in goodwill, which represents future product development, the assembled workforce, and the tax status of the transaction. The goodwill is not deductible for U.S. income tax purposes. All assets acquired are included within the Company's Specialty Brands segment. Licenses and Other Investments In January 2017, $21.5 million of consideration was remitted to Mesoblast Limited ("Mesoblast") in exchange for equity shares and rights to a nine month exclusivity period related to any potential commercial and development agreements the Company may enter into for Mesoblast's therapy products used to treat acute graft versus host disease and/or chronic low back pain. As a result of this transaction the Company recorded an available for sale investment of $19.7 million included within prepaid and other current assets and an intangible asset of $1.8 million in the unaudited condensed consolidated balance sheet. This intangible asset was fully amortized as of September 29, 2017 as the nine month exclusivity period had ended. |
Restructuring and Related Charg
Restructuring and Related Charges | 9 Months Ended |
Sep. 29, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | 5. Restructuring and Related Charges In July 2016, the Company's Board of Directors approved a $100.0 million to $125.0 million restructuring program ("the 2016 Mallinckrodt Program") designed to further improve the Company's cost structure as it continues to transform the business. The 2016 Mallinckrodt Program is expected to include actions across both the Specialty Brands and Specialty Generics segments, as well as within corporate functions. There is no specified time period associated with the 2016 Mallinckrodt Program. In addition to the 2016 Mallinckrodt Program, the Company takes certain restructuring actions to generate synergies from its acquisitions. Net restructuring and related charges by segment are as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Specialty Brands $ 14.6 $ 4.9 $ 24.1 $ 21.7 Specialty Generics (0.6 ) 0.7 7.3 2.3 Corporate 1.5 3.1 4.3 10.0 Restructuring and related charges, net 15.5 8.7 35.7 34.0 Less: accelerated depreciation (1.2 ) (1.9 ) (3.6 ) (4.8 ) Restructuring charges, net $ 14.3 $ 6.8 $ 32.1 $ 29.2 Net restructuring and related charges by program are comprised of the following: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2016 Mallinckrodt Program $ 15.5 $ 8.3 $ 35.7 $ 8.3 2013 Mallinckrodt Program — 0.3 — 22.7 Acquisitions — 0.1 — 3.0 Total 15.5 8.7 35.7 34.0 Less: accelerated depreciation (1.2 ) (1.9 ) (3.6 ) (4.8 ) Total charges expected to be settled in cash $ 14.3 $ 6.8 $ 32.1 $ 29.2 The following table summarizes cash activity for restructuring reserves, substantially all of which are related to employee severance and benefits: 2016 Mallinckrodt Program 2013 Mallinckrodt Program Acquisitions Total Balance at December 30, 2016 $ 9.5 $ 5.1 $ 0.2 $ 14.8 Charges 33.9 — — 33.9 Changes in estimate (1.8 ) — — (1.8 ) Cash payments (19.8 ) (3.7 ) (0.2 ) (23.7 ) Reclassifications (0.7 ) 0.3 — (0.4 ) Balance at September 29, 2017 $ 21.1 $ 1.7 $ — $ 22.8 Net restructuring and related charges, including associated asset impairments, incurred cumulative-to-date related to the 2016 Mallinckrodt Program was as follows: 2016 Mallinckrodt Program Specialty Brands $ 31.3 Specialty Generics 8.6 Corporate 9.3 $ 49.2 Substantially all of the restructuring reserves were included in accrued and other current liabilities on the Company's unaudited condensed consolidated balance sheets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The Company recognized an income tax benefit of $31.2 million on income from continuing operations before income taxes of $33.1 million for the three months ended September 29, 2017 , and an income tax benefit of $56.4 million on income from continuing operations before income taxes of $53.6 million for the three months ended September 30, 2016 . This resulted in effective tax rates of negative 94.3% and negative 105.2% for the three months ended September 29, 2017 and September 30, 2016 , respectively. The income tax benefit for the three months ended September 29, 2017 is comprised of $60.0 million of current tax benefit and $28.8 million of deferred tax expense. The net deferred tax expense of $28.8 million includes $45.5 million of deferred tax benefit which is predominantly related to acquired intangible assets offset by $74.3 million of deferred tax expense related to utilization of tax attributes. The income tax benefit for the three months ended September 30, 2016 is comprised of $37.9 million of current tax expense and $94.3 million of deferred tax benefit which is predominantly related to acquired intangible assets. The Company recognized an income tax benefit of $110.8 million on income from continuing operations before income taxes of $53.0 million for the nine months ended September 29, 2017 , and an income tax benefit of $218.3 million on income from continuing operations before income taxes of $166.9 million for the nine months ended September 30, 2016 . This resulted in effective tax rates of negative 209.1% and negative 130.8% for the nine months ended September 29, 2017 and September 30, 2016 , respectively. The income tax benefit for the nine months ended September 29, 2017 is comprised of $20.5 million of current tax expense and $131.3 million of deferred tax benefit. The net deferred tax benefit of $131.3 million includes $232.8 million of deferred tax benefit which is predominantly related to acquired intangible assets offset by $101.5 million of deferred tax expense related to utilization of tax attributes. The income tax benefit for the nine months ended September 30, 2016 is comprised of $85.9 million of current tax expense and $304.2 million of deferred tax benefit which is predominantly related to acquired intangible assets. The effective tax rate for the three months ended September 29, 2017 , as compared with the three months ended September 30, 2016 increased by 10.9 percentage points. Included within this net increase was a 109.4 percentage point increase related to the completion of certain aspects of the reorganization of the Company's legal entity ownership discussed further below, which occurred during the three months ended September 29, 2017. Also within this increase was a 36.7 percentage point increase attributable to the recognition of previously unrecognized tax benefits, which occurred during the three months ended September 30, 2016. The remaining 135.2 percentage point decrease was primarily attributable to differing levels of income from continuing operations before taxes for the three months ended September 29, 2017 as compared with the three months ended September 30, 2016 . The effective tax rate for the nine months ended September 29, 2017 , as compared with the nine months ended September 30, 2016 decreased by 78.3 percentage points. Included within this net decrease was a 183.5 percentage point decrease primarily attributable to differing levels of income from continuing operations before taxes for the nine months ended September 29, 2017 as compared with the nine months ended September 30, 2016 . Of the remaining 105.2 percentage point increase, a 16.5 percentage point increase is related to the tax benefit of a U.K. tax credit on a dividend between affiliates, which occurred during the nine months ended September 30, 2016 , a 5.0 percentage point increase related to the divestiture of the Intrathecal Therapy Business, which occurred during the nine months ended September 29, 2017, a 15.5 percentage point increase attributable to the recognition of previously unrecognized tax benefits, which occurred within the nine months ended September 30, 2016, and a 68.2 percentage point increase related to the completion of certain aspects of the reorganization of the Company's legal entity ownership discussed further below, which occurred during the nine months ended September 29, 2017. During the nine months ended September 29, 2017, the three months ended December 30, 2016 and the twelve months ended September 30, 2016, the Company’s cash paid for income taxes, net was $90.9 million , $95.6 million and $165.4 million , respectively. During the three and nine months ended September 29, 2017 , the Company recognized an income tax benefit of $0.1 million and income tax expense of $5.2 million , respectively associated with the Nuclear Imaging business divestiture, as discussed in Note 3, in discontinued operations within the unaudited condensed consolidated statement of income. On October 6, 2017 the Company completed a reorganization of its legal entity ownership (“the Reorganization”) to align with its ongoing transformation to become an innovation-driven specialty pharmaceuticals growth company. Many factors were considered in effecting the Reorganization, including streamlining treasury functions, simplifying legal entity reporting processes, and capital allocation efficiencies. During the three months ended September 29, 2017, the Company recognized income tax expense of $36.1 million , with an offset to deferred tax liabilities commensurate with the completion of certain aspects of the Reorganization during the third quarter of 2017. See Note 20 Subsequent Events for additional information related to the future tax effects of this Reorganization. The Company early adopted ASU 2016-16 in the first quarter of 2017 utilizing the modified retrospective basis adoption method, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period for $75.0 million with an offsetting decrease of $67.2 million to other assets and a $7.8 million decrease to prepaid expenses on its unaudited condensed consolidated balance sheets. The prior periods were not restated. The Company adopted ASU 2016-09 in the first quarter of 2017 and recorded an adjustment to retained earnings of $2.9 million to recognize net operating loss carryforwards, net of a valuation allowance, attributable to excess tax benefits on stock compensation that had not been previously recognized in additional paid-in capital. The Company refined its acquisition accounting estimate associated with the measurement of its acquired Stratatech net deferred tax liabilities in the first quarter of 2017, resulting in a decrease to the acquired net deferred tax liabilities from $24.3 million to $22.1 million . The InfaCare Acquisition resulted in a net deferred tax liability increase of $11.3 million . Significant components of this include $20.3 million of net deferred tax liabilities associated with intangibles partially offset by $8.7 million of deferred tax assets associated with non U.K. net operating losses. The divestiture of the Intrathecal Therapy Business was completed on March 17, 2017. This divestiture resulted in a net deferred tax liability increase of $38.9 million . Significant components of this increase include an increase of $56.5 million of deferred tax liability associated with future consideration, a decrease of $2.3 million of deferred tax asset associated with net operating losses, a decrease of $17.9 million of deferred tax liability associated with intangibles, an increase of $2.6 million of deferred tax asset associated with committed product development, and a decrease of $0.6 million of other net deferred tax assets. The Company's unrecognized tax benefits, excluding interest, totaled $123.0 million at September 29, 2017 and $118.7 million at December 30, 2016 . The net increase of $4.3 million primarily resulted from a net increase to current year positions of $8.7 million , net decreases from prior period tax positions of $1.7 million , and net decreases from lapse of statute of limitations of $2.7 million . If favorably settled, $121.3 million of unrecognized tax benefits at September 29, 2017 would favorably impact the effective tax rate. The total amount of accrued interest related to these obligations was $6.8 million at September 29, 2017 and $7.1 million at December 30, 2016 . It is reasonably possible that within the next twelve months, as a result of the resolution of various U.K. and non-U.K. examinations, appeals and litigation and the expiration of various statutes of limitation, that the unrecognized tax benefits will decrease by up to $30.2 million and the amount of related interest and penalties will decrease by up to $4.4 million . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 29, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 7. Earnings per Share Basic earnings per share is computed by dividing net income by the number of weighted-average shares outstanding during the period. Diluted earnings per share is computed using the weighted-average shares outstanding and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares represent the incremental ordinary shares issuable for restricted share units and share option exercises. The Company calculates the dilutive effect of outstanding restricted share units and share options on earnings per share by application of the treasury stock method. The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows ( in millions ): Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Basic 96.7 107.6 99.5 109.1 Dilutive impact of restricted share units and share options 0.3 1.0 0.3 0.9 Diluted 97.0 108.6 99.8 110.0 The computation of diluted weighted-average shares outstanding for the three and nine months ended September 29, 2017 excludes approximately 4.3 million and 3.6 million shares of equity awards, respectively, because the effect would have been anti-dilutive. The computation of diluted weighted-average shares outstanding for the three and nine months ended September 30, 2016 excludes approximately 1.6 million and 1.7 million shares of equity awards, respectively, because the effect would have been anti-dilutive. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2017 | |
Inventory, Net [Abstract] | |
Inventories | 8. Inventories Inventories were comprised of the following at the end of each period: September 29, December 30, Raw materials and supplies $ 76.3 $ 72.6 Work in process 160.4 178.4 Finished goods 104.6 99.7 $ 341.3 $ 350.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 29, 2017 | |
Property, Plant and Equipment | |
Property, Plant and Equipment Disclosure | 9. 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 29, December 30, 2016 Property, plant and equipment, gross $ 1,820.4 $ 1,679.4 Less: accumulated depreciation (858.0 ) (797.9 ) Property, plant and equipment, net $ 962.4 $ 881.5 Depreciation expense for property, plant and equipment was as follows: Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Depreciation expense $ 27.3 $ 27.3 $ 83.5 $ 87.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 29, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 10. Goodwill and Intangible Assets The gross carrying amount and accumulated impairment of goodwill by segment at the end of each period were as follows: September 29, 2017 December 30, 2016 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Specialty Brands $ 3,459.5 $ — $ 3,498.1 $ — Specialty Generics 207.0 (207.0 ) 207.0 (207.0 ) Total $ 3,666.5 $ (207.0 ) $ 3,705.1 $ (207.0 ) During the nine months ended September 29, 2017 , the gross carrying value of goodwill within the Specialty Brands segment decreased by $38.6 million . The decrease was primarily attributable to the sale of the Intrathecal Therapy business to Piramal. The Company ascribed $49.8 million of goodwill to that business and it was factored into the gain on sale of the business. The decrease was offset by $13.3 million attributable to the InfaCare Acquisition. The remaining change in goodwill was related to a purchase accounting adjustment for the Stratatech Acquisition primarily attributable to changes in deferred tax balances. The gross carrying amount and accumulated amortization of intangible assets at the end of each period were as follows: September 29, 2017 December 30, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 9,955.6 $ 2,101.3 $ 10,028.7 $ 1,617.1 Licenses 177.1 120.1 177.1 112.7 Customer relationships 30.0 11.7 27.6 8.4 Trademarks 82.2 13.5 82.1 10.9 Other 8.6 8.6 6.7 6.7 Total $ 10,253.5 $ 2,255.2 $ 10,322.2 $ 1,755.8 Non-Amortizable: Trademarks $ 35.0 $ 35.0 In-process research and development 512.6 399.1 Total $ 547.6 $ 434.1 Intangible asset amortization expense was as follows: Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Amortization expense $ 173.2 $ 175.9 $ 523.0 $ 526.7 The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows: Remainder of Fiscal 2017 $ 172.6 Fiscal 2018 686.7 Fiscal 2019 686.3 Fiscal 2020 686.0 Fiscal 2021 685.8 |
Debt
Debt | 9 Months Ended |
Sep. 29, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt Debt was comprised of the following at the end of each period: September 29, 2017 December 30, 2016 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: Variable-rate receivable securitization due July 2017 $ — $ — $ 250.0 $ 0.3 3.50% notes due April 2018 300.0 0.4 — — Term loan due March 2021 — — 20.0 0.3 4.00% term loan due February 2022 — — 1.0 — Term loan due September 2024 18.6 0.2 — — Capital lease obligation and vendor financing agreements 0.2 — 0.8 — Total current debt 318.8 0.6 271.8 0.6 Long-term debt: 3.50% notes due April 2018 — — 300.0 0.9 4.875% notes due April 2020 700.0 6.3 700.0 8.2 Variable-rate receivable securitization due July 2020 200.0 0.7 — — Term loan due March 2021 — — 1,928.5 33.4 4.00% term loan due February 2022 — — 5.5 — 9.50% debentures due May 2022 10.4 — 10.4 — 5.75% notes due August 2022 884.0 10.0 884.0 11.6 8.00% debentures due March 2023 4.4 — 4.4 — 4.75% notes due April 2023 526.5 4.7 600.0 6.1 5.625% notes due October 2023 738.0 10.1 738.0 11.4 Term loan due September 2024 1,837.1 27.7 — — 5.50% notes due April 2025 692.1 9.3 695.0 10.2 Revolving credit facility — 6.3 100.0 3.2 Total long-term debt 5,592.5 75.1 5,965.8 85.0 Total debt $ 5,911.3 $ 75.7 $ 6,237.6 $ 85.6 The Company's debt instruments are further described within the notes to the financial statements included within the Company's Annual Report filed on Form 10-K for the fiscal year ended September 30, 2016. On July 28, 2017, Mallinckrodt Securitization S.à r.l. ("Mallinckrodt Securitization"), a wholly-owned special purpose subsidiary of the Company, entered into a $250.0 million accounts receivable securitization facility ("the Receivable Securitization") with a three year term. Mallinckrodt Securitization may, from time to time, obtain up to $250.0 million in third-party borrowings secured by certain receivables. The borrowings under the Receivable Securitization are to be repaid as the secured receivables are collected. Loans under the Receivable Securitization will bear interest (including facility fees) at a rate equal to one month LIBOR rate plus a margin of 0.9% . Unused commitments on the Receivables Securitization are subject to an annual commitment fee of 0.4% . The Receivable Securitization agreements contain customary representations, warranties, and affirmative and negative covenants. The size of the securitization facility may be increased to $300.0 million upon approval of the third-party lenders. On February 28, 2017, Mallinckrodt International Finance, S.A. ("MIFSA") and Mallinckrodt CB LLC ("MCB") refinanced the March 2014 and August 2014 term loans, both of which were due in March 2021 ("the Existing Term Loans"). The refinanced term loans had an initial aggregate principal amount of $1,865.0 million , are due in September 2024 and bear interest at LIBOR plus 2.75% ("the 2017 Term Loan"). The 2017 Term Loan requires quarterly principal amortization payments in an amount equal to 0.25% of the original principal balance of the 2017 Term Loan payable on the last day of each calendar quarter, which commenced on June 30, 2017, with the remaining balance due on September 24, 2024. The Company accounted for the term loan refinancing as a debt modification. In conjunction with the term loan refinancing, MIFSA and MCB replaced the existing revolving credit facility of $500.0 million due in March 2019 with a $900.0 million facility that matures on February 28, 2022 ("the 2017 Revolving Credit Facility"). The 2017 Revolving Credit Facility bears interest at LIBOR plus 2.25% . The 2017 Revolving Credit Facility reduced the letter of credit provision from $150.0 million to $50.0 million . Unused commitments under the 2017 Revolving Credit Facility are subject to an annual commitment fee of 0.275% . Fees applied to outstanding letters of credit is based on the interest rate applied to borrowings. The 2017 Revolving Credit Facility added certain wholly-owned subsidiaries of the Company as borrowers, in addition to Mallinckrodt plc, MIFSA and MCB. The 2017 Term Loan and 2017 Revolving Credit Facility (collectively "the 2017 Facilities") are fully and unconditionally guaranteed by Mallinckrodt plc, certain of its direct or indirect wholly-owned U.S. subsidiaries and each of its direct or indirect wholly-owned subsidiaries that owns directly or indirectly any such wholly-owned U.S. subsidiaries and certain of its other subsidiaries (collectively, "the Guarantors"). The 2017 Facilities are secured by a security interest in certain assets of MIFSA, MCB and the Guarantors. The 2017 Facilities contain customary affirmative and negative covenants, which include, among other things, restrictions on the Company's ability to declare or pay dividends, create liens, incur additional indebtedness, enter into sale and lease-back transactions, make investments, dispose of assets and merge or consolidate with any other person. As a result of the 2017 Facilities financing transaction and the write-off of certain deferred financing costs associated with an $83.5 million payment on the Existing Term Loans, the Company recorded a $10.0 million charge included within the other expense line in the unaudited condensed consolidated statement of income. As of September 29, 2017 , the applicable interest rate on outstanding borrowings under the Company's revolving credit facility was approximately 3.58% , and there were no outstanding borrowings. As of September 29, 2017 , the applicable interest rate on outstanding borrowings under the variable-rate receivable securitization was 2.13% , and outstanding borrowings totaled $200.0 million . At September 29, 2017 , the applicable interest rate for the term loan due September 2024 was 4.08% , and outstanding borrowings totaled $1,855.7 million . As of September 29, 2017 , the Company continues to be in full compliance with the provisions and covenants associated with its debt agreements. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 29, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | 12. Retirement Plans The net periodic benefit cost for the Company's defined benefit pension plans was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Service cost $ — $ 0.6 $ 1.5 $ 1.4 Interest cost 0.1 2.7 2.2 9.7 Expected return on plan assets — (4.1 ) (1.3 ) (12.5 ) Amortization of net actuarial loss 0.1 3.5 2.7 8.7 Amortization of prior service cost — — 0.2 — Plan settlements — 1.1 69.7 8.1 Net periodic benefit cost $ 0.2 $ 3.8 $ 75.0 $ 15.4 The net periodic benefit credit for the Company's postretirement benefit plans was approximately zero and $0.1 million for the three months ended September 29, 2017 and September 30, 2016 , respectively, and for both the nine months ended September 29, 2017 and September 30, 2016 the net periodic benefit credit was approximately zero . Net periodic benefit cost for the Company's defined benefit pension plans and postretirement benefit plans was included within cost of sales; research and development; and selling, general and administrative ("SG&A") expenses on the unaudited condensed consolidated statements of income. Pension Plan Termination During the nine months ended September 29, 2017 , the Company completed the third-party settlement of remaining obligations of six defined benefit pension plans that were terminated during fiscal 2016. In conjunction with this final settlement, the Company made a $61.3 million cash contribution to the terminated plans and recognized a $69.7 million charge, included within SG&A expenses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 29, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | 13. Accumulated Other Comprehensive Income (Loss) The following summarizes the change in accumulated other comprehensive income (loss) for the nine months ended September 29, 2017 and September 30, 2016 : Currency Translation Unrecognized Gain (Loss) on Derivatives Unrecognized Gain (Loss) on Benefit Plans Unrecognized Gain on Equity Securities Accumulated Other Comprehensive Income (Loss) Balance at December 30, 2016 $ (19.5 ) $ (5.7 ) $ (47.3 ) $ — $ (72.5 ) Other comprehensive income before reclassifications 17.7 — 5.3 0.1 23.1 Amounts reclassified from accumulated other comprehensive income (4.7 ) 0.9 40.1 — 36.3 Net current period other comprehensive income 13.0 0.9 45.4 0.1 59.4 Balance at September 29, 2017 $ (6.5 ) $ (4.8 ) $ (1.9 ) $ 0.1 $ (13.1 ) Currency Translation Unrecognized Gain (Loss) on Derivatives Unrecognized Gain (Loss) on Benefit Plans Unrecognized Gain on Equity Securities Accumulated Other Comprehensive Income (Loss) Balance at December 25, 2015 $ (7.9 ) $ (6.3 ) $ (51.1 ) $ — $ (65.3 ) Other comprehensive income (loss) before reclassifications 10.2 — (39.5 ) — (29.3 ) Amounts reclassified from accumulated other comprehensive income (0.7 ) 0.4 9.3 — 9.0 Net current period other comprehensive income (loss) 9.5 0.4 (30.2 ) — (20.3 ) Balance at Balance at September 30, 2016 $ 1.6 $ (5.9 ) $ (81.3 ) $ — $ (85.6 ) The following summarizes reclassifications from accumulated other comprehensive income for the nine months ended September 29, 2017 and September 30, 2016 : Amount Reclassified from Accumulated Other Comprehensive Income Nine Months Ended September 29, September 30, Line Item in the Unaudited Condensed Consolidated Statement of Income Amortization and other of unrealized loss on derivatives $ 1.1 $ 0.6 Interest expense Income tax provision (0.2 ) (0.2 ) Income tax benefit Net of income taxes 0.9 0.4 Amortization of pension and post-retirement benefit plans: Net actuarial loss 2.8 8.8 (1) Prior service credit (1.6 ) (2.1 ) (1) Divestiture of discontinued operations (3.1 ) — Income from discontinued operations, net of income taxes Plan settlements 69.7 8.1 (1) Selling, general and administrative expenses Total before tax 67.8 14.8 Income tax provision (27.7 ) (5.5 ) Income tax benefit Net of income taxes 40.1 9.3 Currency translation (4.7 ) (0.7 ) Income from discontinued operations, net of income taxes Total reclassifications for the period $ 36.3 $ 9.0 (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 12 for additional details . |
Equity
Equity | 9 Months Ended |
Sep. 29, 2017 | |
Equity [Abstract] | |
Equity | 14. Equity Share Repurchases On November 19, 2015, the Company's Board of Directors authorized a $500.0 million share repurchase program (the "November 2015 Program"), which was completed in the three months ended December 30, 2016. On March 16, 2016, the Company's Board of Directors authorized an additional $350.0 million share repurchase program (the "March 2016 Program"), which was completed during the three months ended March 31, 2017. On March 1, 2017, the Company's Board of Directors authorized an additional $1.0 billion share repurchase program (the "March 2017 Program"), which commenced upon the completion of the March 2016 Program. The March 2017 Program has no time limit or expiration date, and the Company currently expects to fully utilize the program. March 2017 Repurchase Program March 2016 Repurchase Program November 2015 Repurchase Program Number of Shares Amount Number of Shares Amount Number of Shares Amount Authorized repurchase amount $ 1,000.0 $ 350.0 $ 500.0 Repurchases: Fiscal 2016 (1) — — — — 6,510,824 425.6 Transition Period 2016 — — 1,501,676 84.0 1,063,337 74.4 Fiscal 2017 4,111,722 167.0 5,366,741 266.0 — — Remaining amount available $ 833.0 $ — $ — (1) Represents the Company's historical fiscal year ending on the last Friday in September. The Company also repurchases shares from employees in order to satisfy employee tax withholding requirements in connection with the vesting of restricted shares and share option exercises. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 29, 2017 | |
Guarantees [Abstract] | |
Guarantees | 15. Guarantees In disposing of assets or businesses, the Company has historically provided representations, warranties and indemnities to cover various risks and liabilities, including unknown damage to the assets, environmental risks involved in the sale of real estate, liability to investigate and remediate environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities related to periods prior to disposition. The Company assesses the probability of potential liabilities related to such representations, warranties and indemnities and adjusts potential liabilities as a result of changes in facts and circumstances. The Company believes, given the information currently available, that their ultimate resolutions will not have a material adverse effect on its financial condition, results of operations and cash flows. In connection with the sale of the Specialty Chemicals business (formerly known as Mallinckrodt Baker) in fiscal 2010, the Company agreed to indemnify the purchaser with respect to various matters, including certain environmental, health, safety, tax and other matters. The indemnification obligations relating to certain environmental, health and safety matters have a term of 17 years from the sale, while some of the other indemnification obligations have an indefinite term. The amount of the liability relating to all of these indemnification obligations included in other liabilities on the Company's unaudited condensed consolidated balance sheets as of September 29, 2017 and December 30, 2016 was $14.9 million and $15.1 million , respectively, of which $12.2 million and $12.4 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 29, 2017 and December 30, 2016. As of September 29, 2017 , the maximum future payments the Company could be required to make under these indemnification obligations were $70.2 million . The Company was required to pay $30.0 million into an escrow account as collateral to the purchaser, of which $18.2 million and $19.0 million remained in restricted cash, included in long-term other assets on the unaudited condensed consolidated balance sheets at September 29, 2017 and December 30, 2016 , respectively. The Company has recorded liabilities for known indemnification obligations included as part of environmental liabilities, which are discussed in Note 16. The Company is also liable for product performance; however, the Company believes, given the information currently available, that their ultimate resolutions will not have a material adverse effect on its financial condition, results of operations and cash flows. The Company was previously 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. Following the sale of the Nuclear Imaging business, the surety bond was canceled in April 2017 and the Company is no longer required to provide financial assurance to the U.S. Nuclear Regulatory Commission for that facility. As of September 29, 2017 , the Company had various other letters of credit, guarantees and surety bonds totaling $29.1 million . As part of the Company's legal separation, the Company entered into a separation and distribution agreement with Covidien plc ("Covidien"), which was subsequently acquired by Medtronic plc. Such 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 | 9 Months Ended |
Sep. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies The Company is subject to various legal proceedings and claims, including patent infringement claims, product liability matters, environmental matters, employment disputes, contractual disputes and other commercial disputes, including those described below. The Company believes that these legal proceedings and claims likely will be resolved over an extended period of time. Although it is not feasible to predict the outcome of these matters, the Company believes, unless indicated below, given the information currently available, that their ultimate resolutions will not have a material adverse effect on its financial condition, results of operations and cash flows. Governmental Proceedings Opioid Related Matters The Company has been named in several lawsuits filed in federal court brought by various counties and cities, along with other opioid manufacturers and, often, distributors. In general, the lawsuits assert claims of public nuisance, negligence, civil conspiracy, fraud, violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) or similar state laws, consumer fraud, deceptive trade practices, insurance fraud, unjust enrichment and other common law claims arising from defendants’ manufacturing, distribution, marketing and promotion of opioids and seek restitution, damages, injunctive and other relief and attorneys’ fees and costs. These claims have been filed or amended to include the Company in the U.S. District Court for the Southern District of Illinois (October 26, 2017 and October 27, 2017), the U.S. District Court for the Southern District of Ohio (between September 22, 2017 and November 6, 2017), the U.S. District Court for the Northern District of Alabama (October 25, 2017), the U.S. District Court for the Eastern District of Michigan (October 12, 2017), and the U.S. District Courts for the Eastern and Western Districts of Kentucky (between October 3 and October 30, 2017). The Company intends to vigorously defend itself in these matters. On June 13, 2017, the District Attorneys General of Tennessee’s First, Second and Third Judicial Districts and Baby Doe jointly filed a lawsuit in Circuit Court for Sullivan County in Kingsport, Tennessee against certain prescription opioid manufacturers, including the Company, and other parties. The lawsuit alleges violations of Tennessee’s Drug Dealer Liability Act and public nuisance laws arising out of defendants’ alleged opioid sales and marketing practices, seeking restitution, damages, injunctive and other relief and attorneys’ fees and costs. On September 29, 2017, a similar lawsuit was filed against the Company and other parties by several other Tennessee District Attorneys General and two Baby Does in the Circuit Court for Campbell County in Jacksboro, Tennessee and generally parallels the claims in the Sullivan County lawsuit and seeks similar relief. On August 3, 2017, a lawsuit was filed in Multnomah County Circuit Court in Oregon by the County of Multnomah against certain prescription opioid manufacturers, including the Company, as well as distributors and healthcare providers, asserting claims of public nuisance, abnormally dangerous activity, fraud, and negligence, and seeking relief similar to that sought in the Tennessee and federal actions. The Company intends to vigorously defend itself in these matters. The Company has also received various subpoenas and requests for information related to the distribution, marketing and sale of the Company’s opioid products. On July 26, 2017, the Company received a subpoena from the Department of Justice, on August 24, 2017, the Company received a Civil Investigative Demand (“CID”) from the Missouri Attorney General’s Office and on September 22, 2017, the Company received a subpoena from the New Hampshire Attorney General’s Office. The Company is in the process of responding to these subpoenas and the CID, and the Company intends to cooperate fully in these investigations. SEC Subpoena. In January 2017, the Company received a subpoena from the SEC for documents related to the Company’s public statements, filings and other disclosures regarding Acthar sales, profits, revenue, promotion and pricing. The Company has responded to this subpoena, and the Company intends to cooperate fully in the investigation. Boston Subpoena. In December 2016, the Company received a subpoena from the United States Attorney’s Office ("USAO") for the District of Massachusetts for documents related to the Company’s provision of financial and other support to patients, including through charitable foundations, and related matters. The Company is in the process of responding to this subpoena, and the Company intends to cooperate fully in the investigation. Texas Pricing Investigation. In November 2014, the Company received a CID from the Civil Medicaid Fraud Division of the Texas Attorney General's Office. According to the CID, the Attorney General's office is investigating the possibility of false reporting of information by the Company regarding the prices of certain of its drugs used by Texas Medicaid to establish reimbursement rates for pharmacies that dispensed the Company's drugs to Texas Medicaid recipients. The Company is in the process of responding to these requests. Mallinckrodt Inc. v. U.S. Food and Drug Administration, et al. In November 2014, the Company filed a Complaint ("the Complaint") in the U.S. District Court for the District of Maryland Greenbelt Division against the FDA and the United States for judicial review of what the Company believes is the FDA's inappropriate and unlawful reclassification of the Company's Methylphenidate HCl Extended-Release tablets USP (CII) ("Methylphenidate ER") in the Orange Book: Approved Drug Products with Therapeutic Equivalence ("Orange Book") on November 13, 2014. The Company also sought a temporary restraining order ("TRO") directing the FDA to reinstate the Orange Book AB rating for the Company's Methylphenidate ER products. The court denied the Company's motion for a TRO and in July 2015, the court granted the FDA’s motion to dismiss with respect to three of the five counts in the Complaint and granted summary judgment in favor of the FDA with respect to the two remaining counts. The Company appealed the court’s decision to the U.S. Court of Appeals for the Fourth Circuit. On October 18, 2016, the FDA initiated proceedings, proposing to withdraw approval of the Company's Abbreviated New Drug Application ("ANDA") for Methylphenidate ER. On October 21, 2016, the United States Court of Appeals for the Fourth Circuit issued an order placing that litigation in abeyance pending the outcome of the withdrawal proceedings. The Company concurrently submitted to the FDA requests for a hearing in the withdrawal proceeding and for an extension of the deadline for submitting documentation supporting the necessity of a hearing. The FDA granted the Company’s initial request to extend the deadline, and on February 21, 2017, the FDA suspended the deadline in order to give the Center for Drug Evaluation and Research ("CDER") an opportunity to complete its production of documents. CDER shared an initial set of documents with the Company in June 2017 and is in the process of completing production documents to the Company. The Company is preparing the supporting documentation for its submission and plans to vigorously set forth its position in the withdrawal proceedings. Therakos Investigation. In March 2014, the USAO for the Eastern District of Pennsylvania requested the production of documents related to an investigation of the U.S. promotion of Therakos’ immunotherapy drug/device system UVADEX/UVAR XTS and UVADEX/CELLEX (collectively, the "Therakos System"), for indications not approved by the FDA, including treatment of patients with graft versus host disease ("GvHD") and solid organ transplant patients, including pediatric patients. The investigation also includes Therakos’ efforts to secure FDA approval for additional uses of, and alleged quality issues relating to, UVADEX/UVAR. In August 2015, the USAO for the Eastern District of Pennsylvania sent Therakos a subsequent request for documents related to the investigation and has since made certain related requests. The Company is in the process of responding to these requests. FTC Investigation. In June 2014, Questcor Inc. ("Questcor") received a subpoena and CID from the FTC seeking documentary materials and information regarding the FTC's investigation into whether Questcor's acquisition of certain rights to develop, market, manufacture, distribute, sell and commercialize MNK-1411 (the product formerly described as Synacthen Depot®) from Novartis AG and Novartis Pharma AG (collectively, "Novartis") violates antitrust laws. Subsequently, California, Maryland, Texas, Washington, New York and Alaska (collectively, "the Investigating States") commenced similar investigations focused on whether the transaction violates state antitrust laws. On January 17, 2017, the FTC, all Investigating States (except California) ("the Settling States") and the Company entered into an agreement to resolve this matter for a one-time cash payment of $102.0 million and an agreement to license MNK-1411 to a third party designated by the FTC for possible development in Infantile Spasms ("IS") and Nephrotic Syndrome ("NS") in the U.S. To facilitate that settlement, a complaint was filed on January 18, 2017, in the U.S. District Court for the District of Columbia. The settlement was approved by the court on January 30, 2017. On July 16, 2017, the Company announced the completion of the U.S. license of both the Synacthen trademark and certain intellectual property associated with MNK-1411 to West Pharmaceuticals to develop and pursue possible FDA approval of the product in IS and NS. The Company retains the right to develop MNK-1411 for all other indications in the U.S. and retains rights to the Synacthen trademark outside the U.S. Questcor DOJ Investigation. In September 2012, Questcor received a subpoena from the USAO for the Eastern District of Pennsylvania for information relating to its promotional practices related to Acthar. Questcor has also been informed by the USAO for the Eastern District of Pennsylvania that the USAO for the Southern District of New York and the SEC are participating in the investigation to review Questcor's promotional practices and related matters related to Acthar. On March 9, 2015, the Company received a "No Action" letter from the SEC regarding its review of the Company's promotional practices related to Acthar. DEA Investigation. In November 2011 and October 2012, the Company received subpoenas from the U.S. Drug Enforcement Administration requesting production of documents relating to its suspicious order monitoring program for controlled substances. The USAO for the Eastern District of Michigan is investigating the possibility that the Company failed to report suspicious orders of controlled substances during the period 2006-2011 in violation of the Controlled Substances Act and its related regulations. The USAO for the Northern District of New York and Office of Chief Counsel for the U.S. Drug Enforcement Administration ("DEA") are investigating the possibility that the Company failed to maintain appropriate records and security measures with respect to manufacturing of certain controlled substances at its Hobart facility during the period 2012-2013. On July 11, 2017, the Company entered into a final settlement with the DEA and the USAOs for the Eastern District of Michigan and the Northern District of New York to settle these investigations. As part of the agreement, the Company paid $35.0 million to resolve all potential claims. Patent Litigation Inomax Patent Litigation: Praxair Distribution, Inc. and Praxair, Inc. (collectively "Praxair"). In February 2015, INO Therapeutics LLC and Ikaria, Inc., subsidiaries of the Company, filed suit in the U.S. District Court for the District of Delaware against Praxair following receipt of a January 2015 notice from Praxair concerning its submission of an ANDA containing a Paragraph IV patent certification with the FDA for a generic version of Inomax. In July 2016, the Company filed a second suit against Praxair in the U.S. District Court for the District of Delaware following receipt of a Paragraph IV notice concerning three additional patents recently added to the FDA Orange Book that was submitted by Praxair regarding its ANDA for a generic version of Inomax. The infringement claims in the second suit have been added to the original suit. In September 2016, the Company filed a third suit against Praxair in the U.S. District Court for the District of Delaware following receipt of a Paragraph IV notice concerning a fourth patent recently added to the FDA Orange Book that was submitted by Praxair regarding its ANDA for a generic version of Inomax. The Company intends to vigorously enforce its intellectual property rights relating to Inomax in both the Inter Partes Review ("IPR") and Praxair litigation proceedings to prevent the marketing of infringing generic products prior to the expiration of the patents covering Inomax. Trial of the suit filed in February 2015 was held in March 2017 and a decision was rendered September 5, 2017 that ruled five patents invalid and six patents not infringed. The Company has appealed the decision to the Court of Appeals for the Federal Circuit. An adverse outcome in the appeal of the Praxair litigation decision ultimately could result in the launch of a generic version of Inomax before the expiration of the last of the listed patents on February 19, 2034 (August 19, 2034 including pediatric exclusivity), which could adversely affect the Company's ability to successfully maximize the value of Inomax and have an adverse effect on its financial condition, results of operations and cash flows. Inomax Patents: IPR Proceedings. In February 2015 and March 2015, the U.S. Patent and Trademark Office ("USPTO") issued Notices of Filing Dates Accorded to Petitions for IPR petitions filed by Praxair Distribution, Inc. concerning ten patents covering Inomax (i.e., five patents expiring in 2029 and five patents expiring in 2031). In July 2015, the USPTO Patent Trial and Appeal Board ("PTAB") issued rulings denying the institution of four of the five IPR petitions challenging the five patents expiring in 2029. The PTAB also issued a ruling in July 2015 that instituted the IPR proceeding in the fifth of this group of patents and the PTAB ruled in July 2016 that one claim of this patent survived review and is valid while the remaining claims were unpatentable. The Company believes the valid claim describes and encompasses the manner in which Inomax is distributed in conjunction with its approved labeling and that Praxair infringes that claim. Praxair filed an appeal and the Company filed a cross-appeal of this decision to the Court of Appeals for the Federal Circuit. In March 2016, Praxair Distribution, Inc. submitted additional IPR petitions for the five patents expiring in 2029. The PTAB issued non-appealable rulings in August and September 2016 denying institution of all five of these additional IPR petitions. This group of five patents are those patents ruled invalid by the District Court in the September 5, 2017 decision. In September 2015, the USPTO PTAB issued rulings that instituted the IPR proceedings in each of the second set of five patents that expire in 2031. In September 2016, the PTAB ruled that all claims in the five patents expiring in 2031 are patentable. Three of these patents were asserted in the Praxair litigation and part of the six patents ruled not infringed by the District Court in the September 5, 2017 decision. Ofirmev Patent Litigation: B. Braun Medical Inc. In April 2017, Mallinckrodt Hospital Products Inc. and Mallinckrodt IP, subsidiaries of the Company, and Pharmatop, the owner of the two U.S. patents licensed exclusively by the Company, filed suit in the U.S. District Court for the District of Delaware against B. Braun Medical Inc. ("B. Braun") alleging that B. Braun infringed U.S. Patent Nos. 6,992,218 ("the ‘218 patent") and 9,399,012 ("the ‘012 patent") following receipt of a February 2017 notice from B. Braun concerning its submission of a New Drug Application ("NDA"), containing a Paragraph IV patent certification with the FDA for a competing version of Ofirmev. Following receipt of a second Paragraph IV notice letter from B. Braun on April 24, 2017 directed to the ‘012 patent, Mallinckrodt Hospital Products Inc. and Mallinckrodt IP filed suit in June 2017 in the U.S. District Court for the District of Delaware against B. Braun alleging that B. Braun infringed the ‘012 patent and U.S. 9,610,265 (“the ‘265 patent”). In both instances, a protective suit was filed in the U.S. District Court for the Eastern District of Pennsylvania to protect the 30-month stay against any venue challenge in Delaware. In July 2017, B. Braun filed motions to dismiss both actions in Delaware due to improper venue based on the recent U.S. Supreme Court TC Heartland decision on venue in patent cases, and also filed a separate motion to dismiss in the original action in Pennsylvania. Following receipt of a third Paragraph IV notice letter from B. Braun on July 13, 2017 that included a certification to the ‘265 patent, amended complaints were filed in July 2017 in the U.S. District Courts for the Districts of Delaware and Eastern District of Pennsylvania by Mallinckrodt Hospital Products Inc., Mallinckrodt IP and Pharmatop. Also in July 2017, Mallinckrodt Hospital Products Inc., Mallinckrodt IP and Pharmatop filed a motion to stay the action in the Eastern District of Pennsylvania. A hearing occurred August 24, 2017 in the U.S. District Court for the District of Delaware regarding B. Braun’s motion to dismiss the Delaware actions for improper venue. A decision has not been rendered. A scheduling conference occurred October 4, 2017 in the U.S. District Court for the Eastern District of Pennsylvania and no decisions were rendered on any of the pending motions. A hearing on these pending motions has been scheduled for December 29, 2017. Ofirmev Patent Litigation: Agila Specialties Private Limited, Inc. (now Mylan Laboratories Ltd.) and Agila Specialties Inc. (a Mylan Inc. Company), (collectively “Agila”). In December 2014, Cadence and Mallinckrodt IP, subsidiaries of the Company, and Pharmatop, the owner of the two U.S. patents licensed exclusively by the Company, filed suit in the U.S. District Court for the District of Delaware against Agila alleging that Agila infringed U.S. Patent No. 6,028,222 ("the '222") patent and the '218 patent following receipt of a November 2014 notice from Agila concerning its submission of a NDA containing a Paragraph IV patent certification with the FDA for a competing version of Ofirmev. Separately, on December 1, 2016 Mallinckrodt IP filed suit in the U.S. District Court for the District of Delaware against Agila alleging that Agila infringed the ‘012 patent. On December 31, 2016, the parties entered into settlement agreements on both suits under which Agila was granted the non-exclusive right to market a competing intravenous acetaminophen product in the U.S. under its NDA on or after December 6, 2020, or earlier under certain circumstances. Ofirmev Patent Litigation: InnoPharma Licensing LLC and InnoPharma, Inc. In September 2014, Cadence and Mallinckrodt IP, subsidiaries of the Company, and Pharmatop, the owner of the two U.S. patents licensed exclusively by the Company, filed suit in the U.S. District Court for the District of Delaware against InnoPharma Licensing LLC and InnoPharma, Inc. (both are subsidiaries of Pfizer and collectively "InnoPharma") alleging that InnoPharma infringed the '222 patent and the '218 patent following receipt of an August 2014 notice from InnoPharma concerning its submission of a NDA, containing a Paragraph IV patent certification with the FDA for a competing version of Ofirmev. Separately, on December 1, 2016 Mallinckrodt IP filed suit in the U.S. District Court for the District of Delaware against InnoPharma alleging that InnoPharma infringed the ‘012 patent. On May 4, 2017, the parties entered into settlement agreements on both suits under which InnoPharma was granted the non-exclusive right to market a competing intravenous acetaminophen product in the U.S. under its NDA on or after December 6, 2020, or earlier under certain circumstances. The Company has successfully asserted the ‘222 and ‘218 patents and maintained their validity in both litigation and proceedings at the USPTO. The Company will continue to vigorously enforce its intellectual property rights relating to Ofirmev to prevent the marketing of infringing generic or competing products prior to December 6, 2020, which, if unsuccessful, could adversely affect the Company's ability to successfully maximize the value of Ofirmev and have an adverse effect on its financial condition, results of operations and cash flows. Tyco Healthcare Group LP, et al. v. Mutual Pharmaceutical Company, Inc. In March 2007, the Company filed a patent infringement suit in the U.S. District Court for the District of New Jersey against Mutual Pharmaceutical Co., Inc., et al. (collectively, "Mutual") after Mutual submitted an ANDA to the FDA seeking to sell a generic version of the Company's 7.5 mg RESTORIL™ sleep aid product. Mutual also filed antitrust and unfair competition counterclaims. The patents at issue have since expired or been found invalid. The trial court issued an opinion and order granting the Company's motion for summary judgment regarding Mutual's antitrust and unfair competition counterclaims. Mutual appealed this decision to the U.S. Court of Appeals for the Federal Circuit and the Federal Circuit issued a split decision, affirming the trial court in part and remanding to the trial court certain counterclaims for further proceedings. The Company filed a motion for summary judgment with the U.S. District Court regarding the remanded issues. In May 2015, the trial court issued an opinion granting-in-part and denying-in-part the Company’s motion for summary judgment. In March 2017, the parties entered into a settlement agreement and the case was dismissed. Commercial and Securities Litigation Putative Class Action Litigation (MSP) . On October 30, 2017, a putative class action lawsuit was filed against the Company and United BioSource Corporation ("UBC") in the U.S. District Court for the Central District of California. The case is captioned MSP Recovery Claims, Series II LLC, et al. v. Mallinckrodt ARD, Inc., et al. The complaint purports to be brought on behalf of two classes: all Medicare Advantage Organizations and related entities in the U.S. who purchased or provided reimbursement for Acthar pursuant to (i) Medicare Part C contracts (Class 1) and (ii) Medicare Part D contracts (Class 2) since January 1, 2011, with certain exclusions. The complaint alleges that the Company engaged in anticompetitive, unfair, and deceptive acts to artificially raise and maintain the price of Acthar. To this end, the complaint alleges that the Company unlawfully maintained a monopoly in a purported ACTH product market by acquiring the U.S. rights to Synacthen Depot and reaching anti-competitive agreements with the other defendants by selling Acthar through an exclusive distribution network. The complaint purports to allege claims under federal and state antitrust laws and state unfair competition and unfair trade practice laws. The Company intends to vigorously defend itself in this matter. Employee Stock Purchase Plan Securities Litigation. On July 20, 2017, a purported purchaser of Mallinckrodt stock through Mallinckrodt’s Employee Stock Purchase Plans (“ESPPs”), filed a derivative and class action lawsuit in the Federal District Court in the Eastern District of Missouri, captioned Solomon v. Mallinckrodt plc, et al. , against the Company, its Chief Executive Officer Mark C. Trudeau ("CEO") , its Chief Financial Officer Matthew K. Harbaugh ("CFO"), its Controller Kathleen A. Schaefer, and current and former directors of the Company. The plaintiff voluntarily dismissed the Missouri complaint and refiled it in the U.S. District Court for the District of Columbia. The complaint purports to be brought on behalf of all persons who purchased or otherwise acquired Mallinckrodt stock between November 25, 2014, and January 18, 2017, in the ESPPs. In the alternative, the plaintiff alleges a class action for those same purchasers/acquirers of stock in the ESPPs during the same period. The complaint asserts claims under Section 11 of the Securities Act, and for breach of fiduciary duty, misrepresentation, non-disclosure, mismanagement of the ESPPs’ assets and breach of contract arising from substantially similar allegations as those contained in the putative class action securities litigation filed on January 23, 2017 and described below. There are two competing movants to serve as lead plaintiff/lead counsel, and those motions remain pending. The Company intends to vigorously defend itself in this matter. Putative Class Action Litigation (Rockford) . On April 6, 2017, a putative class action lawsuit was filed against the Company and United BioSource Corporation ("UBC") in the U.S. District Court for the Northern District of Illinois. The case is captioned City of Rockford v. Mallinckrodt ARD, Inc., et al. The complaint purports to be brought on behalf of all self-funded entities in the U.S. and its Territories that paid for Acthar from August 2007 to the present. An amended complaint was filed on October 9, 2017, adding defendants and alleging that the Company engaged in anticompetitive, fraudulent, and deceptive acts to artificially raise and maintain the price of Acthar. To this end, the amended complaint alleges that the Company unlawfully maintained a monopoly in a purported ACTH product market by acquiring the U.S. rights to Synacthen Depot; conspired with the other defendants and violated anti-racketeering laws by selling Acthar through an exclusive distribution network; and committed a fraud on consumers by misrepresenting the value of Acthar. The Company intends to vigorously defend itself in this matter. Putative Class Action Securities Litigation. On January 23, 2017, a putative class action lawsuit was filed against the Company and its CEO in the U.S. District Court for the District of Columbia, captioned Patricia A. Shenk v. Mallinckrodt plc, et al . The complaint purports to be brought on behalf of all persons who purchased Mallinckrodt’s publicly traded securities on a domestic exchange between November 25, 2014 and January 18, 2017. The lawsuit generally alleges that the Company made false or misleading statements related to Acthar and Synacthen to artificially inflate the price of the Company’s stock. In particular, the complaint alleges a failure by the Company to provide accurate disclosures concerning the long-term sustainability of Acthar revenues, and the exposure of Acthar to Medicare and Medicaid reimbursement rates. On January 26, 2017, a second putative class action lawsuit, captioned Jyotindra Patel v. Mallinckrodt plc, et al. was filed against the same defendants named in the Shenk lawsuit in the U.S. District Court for the District of Columbia. The Patel complaint purports to be brought on behalf of shareholders during the same period of time as that set forth in the Shenk lawsuit and asserts claims similar to those set forth in the Shenk lawsuit. On March 13, 2017, a third putative class action lawsuit, captioned Amy T. Schwartz, et al., v. Mallinckrodt plc, et al., was filed against the same defendants named in the Shenk lawsuit in the U.S. District Court for the District of Columbia. The Schwartz complaint purports to be brought on behalf of shareholders who purchased shares of the Company between July 14, 2014 and January 18, 2017 and asserts claims similar to those set forth in the Shenk lawsuit. On March 23, 2017, a fourth putative class action lawsuit, captioned Fulton County Employees’ Retirement System v. Mallinckrodt plc, et al., was filed against the Company and its CEO and CFO in the U.S. District Court for the District of Columbia. The Fulton County complaint purports to be brought on behalf of shareholders during the same period of time as that set forth in the Schwartz lawsuit and asserts claims similar to those set forth in the Shenk lawsuit. On March 27, 2017, four separate plaintiff groups moved to consolidate the pending cases and to be appointed as lead plaintiffs in the consolidated case. Since that time, two of the plaintiff groups have withdrawn their motions. There are two competing movants to serve as lead plaintiff/lead counsel, and those motions remain pending. The Company intends to vigorously defend itself in this matter. Retrophin Litigation. In January 2014, Retrophin, Inc. ("Retrophin") filed a lawsuit against Questcor in the U.S. District Court for the Central District of California, alleging a variety of federal and state antitrust violations based on Questcor's acquisition from Novartis of certain rights to develop, market, manufacture, distribute, sell and commercialize Synacthen. In June 2015, the parties entered into a binding settlement agreement, under the terms of which Retrophin agreed to dismiss the litigation with prejudice and Questcor agreed to make a one-time cash payment to Retrophin in the amount of $15.5 million . Putative Class Action Securities Litigation. In September 2012, a putative class action lawsuit was filed against Questcor and certain of its officers and directors in the U.S. District Court for the Central District of California, captioned John K. Norton v. Questcor Pharmaceuticals, et al . The complaint purported to be brought on behalf of shareholders who purchased Questcor common stock between April 26, 2011 and September 21, 2012. The complaint generally alleged that Questcor and certain of its officers and directors engaged in various acts to artificially inflate the price of Questcor stock and enable insiders to profit through stock sales. The complaint asserted that Questcor and certain of its officers and directors violated sections l0(b) and/or 20(a) of the Securities Exchange Act of 1934, as amended ("the Exchange Act"), by making allegedly false and/or misleading statements concerning the clinical evidence to support the use of Acthar for indications other than infantile spasms, the promotion of the sale and use of Acthar in the treatment of multiple sclerosis and nephrotic syndrome, reimbursement for Acthar from third-party insurers, and Questcor's outlook and potential market growth for Acthar. The complaint sought damages in an unspecified amount and equitable relief against the defendants. This lawsuit was consolidated with four subsequently-filed actions asserting similar claims under the caption: In re Questcor Securities Litigation . In October 2013, the District Court granted in part and denied in part Questcor's motion to dismiss the consolidated amended complaint. In October 2013, Questcor filed an answer to the consolidated amended complaint and fact discovery was concluded in January 2015. In April 2015, the parties executed a long-form settlement agreement, under the terms of which Questcor agreed to pay $38.0 million to resolve the plaintiff's claims, inclusive of all fees and costs. Questcor and the individual defendants maintain that the plaintiffs' claims are without merit, and entered into the settlement to eliminate the uncertainties, burden and expense of further protracted litigation. During fiscal 2015, the Company established a $38.0 million reserve for this settlement, which was subsequently paid to a settlement fund. The court issued its final approval of the settlement on September 18, 2015. Glenridge Litigation. In June 2011, Glenridge Pharmaceuticals, LLC ("Glenridge"), filed a lawsuit against Questcor in the Superior Court of California, Santa Clara County, alleging that Questcor had underpaid royalties to Glenridge under a royalty agreement related to net sales of Acthar. In August 2012, Questcor filed a separate lawsuit against the three principals of Glenridge, as well as Glenridge, challenging the enforceability of the royalty agreement. In August 2013, the lawsuits were consolidated into one case in the Superior Court of California, Santa Clara County. In October 2014, the parties entered into a binding term sheet settling the lawsuit. Under the terms of the settlement, the royalty rate payable by Questcor w |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 29, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 17. 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 29, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 34.1 $ 23.2 $ 10.9 $ — Equity securities 21.6 21.6 — — Foreign exchange forward and option contracts 0.6 0.6 — — $ 56.3 $ 45.4 $ 10.9 $ — Liabilities: Deferred compensation liabilities $ 38.9 $ — $ 38.9 $ — Contingent consideration and acquired contingent liabilities 268.6 — — 268.6 Foreign exchange forward and option contracts 1.2 1.2 — — $ 308.7 $ 1.2 $ 38.9 $ 268.6 December 30, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 33.6 $ 22.8 $ 10.8 $ — Foreign exchange forward and option contracts 0.7 0.7 — — $ 34.3 $ 23.5 $ 10.8 $ — Liabilities: Deferred compensation liabilities $ 32.5 $ — $ 32.5 $ — Contingent consideration and acquired contingent liabilities 250.5 — — 250.5 Foreign exchange forward and option contracts 3.4 3.4 — — $ 286.4 $ 3.4 $ 32.5 $ 250.5 Debt and equity securities held in rabbi trusts. Debt securities held in rabbi trusts 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 rabbi trusts primarily consist of U.S. common stocks, which are valued using quoted market prices reported on nationally recognized securities exchanges. Equity securities . Equity securities consist of shares in Mesoblast, for which quoted prices are available in an active market; therefore, the investment is classified as level 1 and is valued based on quoted market prices reported on a nationally recognized securities exchange. Foreign exchange forward and option contracts. Foreign currency option and forward contracts are used to economically manage the foreign exchange exposures of operations outside the U.S. Quoted prices are available in an active market; as such, these derivatives are classified as level 1. Deferred compensation liabilities. The Company maintains a non-qualified deferred compensation plan in the U.S., which permits eligible employees of the Company to defer a portion of their compensation. A recordkeeping account is set up for each participant and the participant chooses from a variety of funds for the deemed investment of their accounts. The recordkeeping accounts generally correspond to the funds offered in the Company's U.S. tax-qualified defined contribution retirement plan and the account balance fluctuates with the investment returns on those funds. Contingent consideration and acquired contingent liabilities. The Company maintains various contingent consideration and acquired contingent liabilities associated with the acquisitions of Questcor, Hemostasis products, Stratatech and InfaCare. During the nine months ended September 29, 2017 , the Company paid the required annual payment of $25.0 million related to the license of developmental product MNK-1411 from Novartis. The fair value of the remaining contingent payments was measured based on the net present value of a probability-weighted assessment. At September 29, 2017 , the total remaining payments under the license agreement shall not exceed $140.0 million . At September 29, 2017 and December 30, 2016, the fair value of the MNK-1411 contingent liability was $104.5 million and $124.7 million , respectively. As part of the Hemostasis Acquisition, the Company provided contingent consideration to The Medicines Company in the form of sales-based milestones associated with Raplixa and PreveLeak, and acquired contingent liabilities associated with The Medicines Company's prior acquisitions of the aforementioned products. The Company determined the fair value of the contingent consideration and acquired contingent liabilities based on an option pricing model to be $62.2 million and $11.6 million , respectively, at September 29, 2017 . The fair value of the contingent consideration and acquired contingent liabilities based on an option pricing model were $58.9 million and $11.2 million , respectively, as of December 30, 2016. As part of the Stratatech Acquisition, the Company provided contingent consideration to the prior shareholders of Stratatech, primarily in the form of regulatory filing and approval milestones associated with the deep partial thickness and full thickness indications associated with the StrataGraft product. The Company assesses the likelihood of and timing of making such payments. The fair value of the contingent payments was measured based on the net present value of a probability-weighted assessment. The Company determined the fair value of the contingent consideration associated with the Stratatech Acquisition to be $55.3 million and $55.7 million at September 29, 2017 and December 30, 2016, respectively. As part of the InfaCare Acquisition, the Company provided contingent consideration to the prior shareholders of InfaCare in the form of both regulatory approval milestones for full-term and pre-term neonates for stannsoporfin and sales-based milestones associated with stannsoporfin. The Company determined the fair value of the contingent consideration based on an option pricing model to be $35.0 million as of September 25, 2017. The following table provides a summary of the changes in the Company's contingent consideration and acquired contingent liabilities: Balance at December 30, 2016 $ 250.5 Acquisition date fair value of contingent consideration 35.0 Payments (25.0 ) Accretion expense 4.0 Fair value adjustment 4.1 Balance at September 29, 2017 $ 268.6 Financial Instruments Not Measured at Fair Value The following methods and assumptions were used by the Company in estimating fair values for financial instruments not measured at fair value as of September 29, 2017 and December 30, 2016: • The carrying amounts of cash and cash equivalents, accounts receivable, notes 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 of three months or less, as cash and cash equivalents (level 1). The fair value of restricted cash was equivalent to its carrying value of $18.2 million and $19.1 million as of September 29, 2017 and December 30, 2016 , (level 1), respectively, which was included in prepaid expenses and other current assets and other assets on the unaudited condensed consolidated balance sheets. • The Company received a portion of consideration for the sale of the Intrathecal business in the form of a note receivable. The fair value of the note receivable was equivalent to its carrying value of $154.0 million as of September 29, 2017 (level 1). • The Company entered into short-term investment certificates during the three months ended December 30, 2016. These certificates are carried at cost, which approximates fair value, of $1.6 million and $11.1 million at September 29, 2017 and December 30, 2016 , respectively (level 2). These certificates are included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. • The Company's life insurance contracts are carried at cash surrender value, which is based on the present value of future cash flows under the terms of the contracts (level 3). Significant assumptions used in determining the cash surrender value include the amount and timing of future cash flows, interest rates and mortality charges. The fair value of these contracts approximates the carrying value of $66.8 million and $67.6 million at September 29, 2017 and December 30, 2016 , respectively. These contracts are included in other assets on the unaudited condensed consolidated balance sheets. • The carrying value of the Company's revolving credit facility and variable-rate receivable securitization approximates fair value due to the short-term nature of these instruments. The carrying value of the 4.00% term loan approximates the fair value of the instrument, as calculated using the discounted exit price, which is therefore classified as level 3. Since the quoted market prices for the Company's term loans and 8.00% and 9.50% debentures are not available in an active market, they are classified as level 2 for purposes of developing an estimate of fair value. The Company's 3.50% , 4.75% , 4.875% , 5.50% , 5.625% and 5.75% notes are classified as level 1, as quoted prices are available in an active market for these notes. The following table presents the carrying values and estimated fair values of the Company's long-term debt, excluding capital leases, as of the end of each period: September 29, 2017 December 30, 2016 Carrying Value Fair Value Carrying Value Fair Value Variable-rate receivable securitization due July 2017 $ — $ — $ 250.0 $ 250.0 3.50% notes due April 2018 300.0 300.2 300.0 298.7 4.875% notes due April 2020 700.0 696.7 700.0 699.5 Variable-rate receivable securitization due July 2020 200.0 200.0 — — Term loans due March 2021 — — 1,948.5 1,953.2 4.00% term loan due February 2022 — — 6.5 6.5 9.50% debentures due May 2022 10.4 11.5 10.4 12.0 5.75% notes due August 2022 884.0 853.3 884.0 850.3 8.00% debentures due March 2023 4.4 4.7 4.4 4.9 4.75% notes due April 2023 526.5 448.5 600.0 520.9 5.625% notes due October 2023 738.0 689.5 738.0 682.4 Term loan due September 2024 1,855.7 1,853.8 — — 5.50% notes due April 2025 692.1 625.4 695.0 615.7 Revolving credit facility — — 100.0 100.0 Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of accounts receivable. The Company does not typically require collateral from customers. A portion of the Company's accounts receivable outside the U.S. includes sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries' national economies. The following table shows net sales attributable to distributors that accounted for 10% or more of the Company's total net sales: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, CuraScript, Inc. 41 % 40 % 40 % 37 % McKesson Corporation 9 % 11 % 9 % 11 % The following table shows accounts receivable attributable to distributors that accounted for 10% or more of the Company's gross accounts receivable at the end of each period: September 29, December 30, McKesson Corporation 20 % 28 % Amerisource Bergen Corporation 14 % 15 % CuraScript, Inc. 14 % 15 % Cardinal Health, Inc. 11 % 10 % The following table shows net sales attributable to products that accounted for 10% or more of the Company's total net sales: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Acthar 39 % 37 % 37 % 34 % Inomax 16 % 14 % 16 % 14 % |
Segment Data
Segment Data | 9 Months Ended |
Sep. 29, 2017 | |
Segment Reporting [Abstract] | |
Segment Data | 18. Segment Data The two reportable segments are further described below: • Specialty Brands includes branded medicines; and • Specialty Generics includes specialty generic drugs, API and external manufacturing. Selected information by reportable segment was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Net sales: Specialty Brands $ 591.4 $ 633.1 $ 1,743.1 $ 1,757.4 Specialty Generics 189.1 239.8 643.7 767.6 Net sales of reportable segments 780.5 872.9 2,386.8 2,525.0 Other (1) 13.4 14.3 42.5 44.6 Net sales $ 793.9 $ 887.2 $ 2,429.3 $ 2,569.6 Operating income: Specialty Brands $ 316.6 $ 334.1 $ 865.7 $ 897.1 Specialty Generics 40.4 63.9 179.9 260.9 Segment operating income 357.0 398.0 1,045.6 1,158.0 Unallocated amounts: Corporate and unallocated expenses (2) (47.6 ) (65.7 ) (163.9 ) (125.2 ) Intangible asset amortization (173.2 ) (175.9 ) (523.0 ) (526.7 ) Restructuring and related charges, net (3) (15.5 ) (8.7 ) (35.7 ) (34.0 ) Non-restructuring impairment charges — — — (16.9 ) Operating income $ 120.7 $ 147.7 $ 323.0 $ 455.2 (1) Represents net sales under an ongoing supply agreement with the acquirer of the CMDS business. (2) Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (3) Includes restructuring-related accelerated depreciation. Net sales by product family within the Company's reportable segments are as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Acthar $ 308.7 $ 327.0 $ 899.9 $ 873.7 Inomax 125.7 126.9 379.6 363.5 Ofirmev 75.4 75.6 224.5 217.4 Therakos immunotherapy 55.3 54.5 157.7 157.2 Hemostasis products 16.2 17.2 42.8 42.5 Other 10.1 31.9 38.6 103.1 Specialty Brands 591.4 633.1 1,743.1 1,757.4 Hydrocodone (API) and hydrocodone-containing tablets 10.0 30.8 63.3 109.8 Oxycodone (API) and oxycodone-containing tablets 13.4 28.8 60.6 97.3 Methylphenidate ER 14.3 23.4 58.2 72.3 Other controlled substances 103.9 111.8 319.0 358.4 Other products 47.5 45.0 142.6 129.8 Specialty Generics 189.1 239.8 643.7 767.6 Other (1) 13.4 14.3 42.5 44.6 Net sales $ 793.9 $ 887.2 $ 2,429.3 $ 2,569.6 (1) Represents net sales under an ongoing supply agreement with the acquirer of the CMDS business. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 29, 2017 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | 19. Condensed Consolidating Financial Statements MIFSA, an indirectly 100% -owned subsidiary of Mallinckrodt plc, is the borrower under the 3.50% notes due April 2018 and the 4.75% notes due April 2023 (collectively, "the Notes"), which are fully and unconditionally guaranteed by Mallinckrodt plc. The following information provides the composition of the Company's comprehensive income, assets, liabilities, equity and cash flows by relevant group within the Company: Mallinckrodt plc as guarantor of the Notes, MIFSA as issuer of the Notes and the other subsidiaries. There are no subsidiary guarantees related to the Notes. Set forth on the following pages are the condensed consolidating financial statements for the three and nine months ended September 29, 2017 and September 30, 2016 , and as of September 29, 2017 and December 30, 2016 . Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among Mallinckrodt plc, MIFSA and other subsidiaries. Condensed consolidating financial information for Mallinckrodt plc and MIFSA, on a standalone basis, has been presented using the equity method of accounting for subsidiaries. MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of September 29, 2017 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.7 $ 37.6 $ 333.5 $ — $ 371.8 Accounts receivable, net — — 464.3 — 464.3 Inventories — — 341.3 — 341.3 Prepaid expenses and other current assets 0.3 0.2 120.6 — 121.1 Notes receivable — — 154.0 — 154.0 Current assets held for sale — — — — — Intercompany receivables 127.9 246.8 694.1 (1,068.8 ) — Total current assets 128.9 284.6 2,107.8 (1,068.8 ) 1,452.5 Property, plant and equipment, net — — 962.4 — 962.4 Goodwill — — 3,459.5 — 3,459.5 Intangible assets, net — — 8,545.9 — 8,545.9 Investment in subsidiaries 4,923.4 21,531.2 10,654.1 (37,108.7 ) — Intercompany loans receivable 744.8 — 4,710.0 (5,454.8 ) — Other assets — — 191.6 — 191.6 Total Assets $ 5,797.1 $ 21,815.8 $ 30,631.3 $ (43,632.3 ) $ 14,611.9 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 318.0 $ 0.2 $ — $ 318.2 Accounts payable — — 104.9 — 104.9 Accrued payroll and payroll-related costs — — 84.4 — 84.4 Accrued interest — 77.5 0.6 — 78.1 Income taxes payable — — 28.1 — 28.1 Accrued and other current liabilities 1.3 0.4 438.7 — 440.4 Current liabilities held for sale — — — — — Intercompany payables 682.8 — 386.0 (1,068.8 ) — Total current liabilities 684.1 395.9 1,042.9 (1,068.8 ) 1,054.1 Long-term debt — 5,303.3 214.1 — 5,517.4 Pension and postretirement benefits — — 67.5 — 67.5 Environmental liabilities — — 73.1 — 73.1 Deferred income taxes — — 2,294.1 — 2,294.1 Other income tax liabilities — — 78.5 — 78.5 Intercompany loans payable — 5,454.8 — (5,454.8 ) — Other liabilities — 7.7 406.5 — 414.2 Total Liabilities 684.1 11,161.7 4,176.7 (6,523.6 ) 9,498.9 Shareholders' Equity 5,113.0 10,654.1 26,454.6 (37,108.7 ) 5,113.0 Total Liabilities and Shareholders' Equity $ 5,797.1 $ 21,815.8 $ 30,631.3 $ (43,632.3 ) $ 14,611.9 MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of December 30, 2016 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.5 $ 44.5 $ 297.0 $ — $ 342.0 Accounts receivable, net — — 431.0 — 431.0 Inventories — — 350.7 — 350.7 Prepaid expenses and other current assets 1.0 — 130.9 — 131.9 Notes receivable — — — — — Current assets held for sale — — 310.9 — 310.9 Intercompany receivables 59.7 65.1 1,081.3 (1,206.1 ) — Total current assets 61.2 109.6 2,601.8 (1,206.1 ) 1,566.5 Property, plant and equipment, net — — 881.5 — 881.5 Goodwill — — 3,498.1 — 3,498.1 Intangible assets, net — — 9,000.5 — 9,000.5 Investment in subsidiaries 5,534.1 20,624.1 10,988.5 (37,146.7 ) — Intercompany loans receivable 3.5 — 3,325.9 (3,329.4 ) — Other assets — — 259.7 — 259.7 Total Assets $ 5,598.8 $ 20,733.7 $ 30,556.0 $ (41,682.2 ) $ 15,206.3 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 19.7 $ 251.5 $ — $ 271.2 Accounts payable 0.1 0.1 111.9 — 112.1 Accrued payroll and payroll-related costs — — 76.1 — 76.1 Accrued interest — 53.9 14.8 — 68.7 Income taxes payable — — 101.7 — 101.7 Accrued and other current liabilities 1.9 7.5 547.7 — 557.1 Current liabilities held for sale — — 120.3 — 120.3 Intercompany payables 612.5 467.1 126.5 (1,206.1 ) — Total current liabilities 614.5 548.3 1,350.5 (1,206.1 ) 1,307.2 Long-term debt — 5,860.6 20.2 — 5,880.8 Pension and postretirement benefits — — 136.4 — 136.4 Environmental liabilities — — 73.0 — 73.0 Deferred income taxes — — 2,398.1 — 2,398.1 Other income tax liabilities — — 70.4 — 70.4 Intercompany loans payable — 3,329.4 — (3,329.4 ) — Other liabilities — 7.0 349.1 — 356.1 Total Liabilities 614.5 9,745.3 4,397.7 (4,535.5 ) 10,222.0 Shareholders' Equity 4,984.3 10,988.4 26,158.3 (37,146.7 ) 4,984.3 Total Liabilities and Shareholders' Equity $ 5,598.8 $ 20,733.7 $ 30,556.0 $ (41,682.2 ) $ 15,206.3 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the three months ended September 29, 2017 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 793.9 $ — $ 793.9 Cost of sales 0.9 — 392.4 — 393.3 Gross profit (0.9 ) — 401.5 — 400.6 Selling, general and administrative expenses 13.4 0.2 192.1 — 205.7 Research and development expenses 1.8 — 57.7 — 59.5 Restructuring charges, net — — 14.3 — 14.3 Non-restructuring impairment charges — — — — — Losses on divestiture and license — — 0.4 — 0.4 Operating (loss) income (16.1 ) (0.2 ) 137.0 — 120.7 Interest expense (3.3 ) (90.9 ) (19.0 ) 20.6 (92.6 ) Interest income 2.2 0.4 19.3 (20.6 ) 1.3 Other income, net 1.4 1.7 0.6 — 3.7 Intercompany fees (4.3 ) — 4.3 — — Equity in net income of subsidiaries 82.4 261.8 174.7 (518.9 ) — Income from continuing operations before income taxes 62.3 172.8 316.9 (518.9 ) 33.1 Income tax benefit (1.4 ) (2.1 ) (27.7 ) — (31.2 ) Income from continuing operations 63.7 174.9 344.6 (518.9 ) 64.3 Loss from discontinued operations, net of income taxes — (0.2 ) (0.4 ) — (0.6 ) Net income 63.7 174.7 344.2 (518.9 ) 63.7 Other comprehensive loss, net of tax (5.1 ) (5.1 ) (10.5 ) 15.6 (5.1 ) Comprehensive income $ 58.6 $ 169.6 $ 333.7 $ (503.3 ) $ 58.6 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the three months ended September 30, 2016 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 887.2 $ — $ 887.2 Cost of sales — — 397.0 — 397.0 Gross profit — — 490.2 — 490.2 Selling, general and administrative expenses 14.7 0.1 253.0 — 267.8 Research and development expenses — — 67.9 — 67.9 Restructuring charges, net — — 6.8 — 6.8 Non-restructuring impairment charge — — — — — Losses on divestiture and license — — — — — Operating (loss) income (14.7 ) (0.1 ) 162.5 — 147.7 Interest expense (36.1 ) (82.0 ) (19.4 ) 43.5 (94.0 ) Interest income — 0.2 43.8 (43.5 ) 0.5 Other income (expense), net 7.4 — (8.0 ) — (0.6 ) Intercompany fees (5.6 ) — 5.6 — — Equity in net income of subsidiaries 157.1 302.7 224.5 (684.3 ) — Income from continuing operations before income taxes 108.1 220.8 409.0 (684.3 ) 53.6 Income tax benefit (6.9 ) (4.1 ) (45.4 ) — (56.4 ) Income from continuing operations 115.0 224.9 454.4 (684.3 ) 110.0 (Loss) income from discontinued operations, net of income taxes — (0.4 ) 5.4 — 5.0 Net income 115.0 224.5 459.8 (684.3 ) 115.0 Other comprehensive loss, net of tax (19.9 ) (19.9 ) (39.8 ) 59.7 (19.9 ) Comprehensive income $ 95.1 $ 204.6 $ 420.0 $ (624.6 ) $ 95.1 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the nine months ended September 29, 2017 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 2,429.3 $ — $ 2,429.3 Cost of sales 1.8 — 1,192.2 — 1,194.0 Gross profit (1.8 ) — 1,237.1 — 1,235.3 Selling, general and administrative expenses 46.7 0.6 698.6 — 745.9 Research and development expenses 3.6 — 187.3 — 190.9 Restructuring charges, net — — 32.1 — 32.1 Non-restructuring impairment charge — — — — — Gains on divestiture and license — — (56.6 ) — (56.6 ) Operating income (52.1 ) (0.6 ) 375.7 — 323.0 Interest expense (10.0 ) (264.9 ) (57.9 ) 53.8 (279.0 ) Interest income 5.3 1.0 50.3 (53.8 ) 2.8 Other income (expense), net 19.0 (1.6 ) (11.2 ) — 6.2 Intercompany fees (13.3 ) — 13.3 — — Equity in net income of subsidiaries 572.1 1,113.5 848.1 (2,533.7 ) — Income from continuing operations before income taxes 521.0 847.4 1,218.3 (2,533.7 ) 53.0 Income tax benefit (4.7 ) (2.6 ) (103.5 ) — (110.8 ) Income from continuing operations 525.7 850.0 1,321.8 (2,533.7 ) 163.8 (Loss) income from discontinued operations, net of income taxes — (1.9 ) 363.8 — 361.9 Net income 525.7 848.1 1,685.6 (2,533.7 ) 525.7 Other comprehensive income, net of tax 59.4 59.4 117.9 (177.3 ) 59.4 Comprehensive income $ 585.1 $ 907.5 $ 1,803.5 $ (2,711.0 ) $ 585.1 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the nine months ended September 30, 2016 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 2,569.6 $ — $ 2,569.6 Cost of sales — — 1,165.5 — 1,165.5 Gross profit — — 1,404.1 — 1,404.1 Selling, general and administrative expenses 40.9 0.5 660.6 — 702.0 Research and development expenses — — 200.8 — 200.8 Restructuring charges, net — — 29.2 — 29.2 Non-restructuring impairment charge — — 16.9 — 16.9 Gains on divestiture and license — — — — — Operating income (40.9 ) (0.5 ) 496.6 — 455.2 Interest expense (162.3 ) (245.1 ) (61.4 ) 182.0 (286.8 ) Interest income — 0.5 182.6 (182.0 ) 1.1 Other income (expense), net 22.3 — (24.9 ) — (2.6 ) Intercompany fees (12.9 ) 0.1 12.8 — — Equity in net income of subsidiaries 609.8 1,015.2 786.2 (2,411.2 ) — Income from continuing operations before income taxes 416.0 770.2 1,391.9 (2,411.2 ) 166.9 Income tax benefit (16.6 ) (18.1 ) (183.6 ) — (218.3 ) Income from continuing operations 432.6 788.3 1,575.5 (2,411.2 ) 385.2 (Loss) income from discontinued operations, net of income taxes — (2.1 ) 49.5 — 47.4 Net income 432.6 786.2 1,625.0 (2,411.2 ) 432.6 Other comprehensive loss, net of tax (20.3 ) (20.3 ) (41.0 ) 61.3 (20.3 ) Comprehensive income $ 412.3 $ 765.9 $ 1,584.0 $ (2,349.9 ) $ 412.3 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 29, 2017 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Cash Flows From Operating Activities: Net cash from operating activities $ 1,172.0 $ 1,233.7 $ 1,963.0 $ (3,920.2 ) $ 448.5 Cash Flows From Investing Activities: Capital expenditures — — (151.3 ) — (151.3 ) Acquisitions and intangibles, net of cash acquired — — (35.9 ) — (35.9 ) Proceeds from divestiture of discontinued operations, net of cash — — 576.9 — 576.9 Intercompany loan investment, net (741.3 ) — (920.8 ) 1,662.1 — Investment in subsidiary — (1,412.5 ) — 1,412.5 — Other — — 0.5 — 0.5 Net cash from investing activities (741.3 ) (1,412.5 ) (530.6 ) 3,074.6 390.2 Cash Flows From Financing Activities: Issuance of external debt — 500.0 40.0 — 540.0 Repayment of external debt and capital leases — (759.9 ) (127.6 ) — (887.5 ) Debt financing costs — (12.7 ) — — (12.7 ) Proceeds from exercise of share options 4.0 — — — 4.0 Repurchase of shares (437.7 ) — — — (437.7 ) Intercompany loan borrowings, net — 1,614.5 47.6 (1,662.1 ) — Intercompany dividends — (1,170.0 ) (2,750.2 ) 3,920.2 — Capital contribution — — 1,412.5 (1,412.5 ) — Other 3.2 — (21.8 ) — (18.6 ) Net cash from financing activities (430.5 ) 171.9 (1,399.5 ) 845.6 (812.5 ) Effect of currency rate changes on cash — — 2.7 — 2.7 Net change in cash, cash equivalents and restricted cash 0.2 (6.9 ) 35.6 — 28.9 Cash, cash equivalents and restricted cash at beginning of period 0.5 44.5 316.1 — 361.1 Cash, cash equivalents and restricted cash at end of period $ 0.7 $ 37.6 $ 351.7 $ — $ 390.0 Cash and cash equivalents at end of period $ 0.7 $ 37.6 $ 333.5 $ — $ 371.8 Restricted Cash, current at end of period — — — — — Restricted Cash, noncurrent at end of period — — 18.2 — 18.2 Cash, cash equivalents and restricted cash at end of period $ 0.7 $ 37.6 $ 351.7 $ — $ 390.0 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2016 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Cash Flows From Operating Activities: Net cash from operating activities $ (21.3 ) $ (99.3 ) $ 993.8 $ — $ 873.2 Cash Flows From Investing Activities: Capital expenditures — — (133.9 ) — (133.9 ) Acquisitions and intangibles, net of cash acquired — — (245.4 ) — (245.4 ) Proceeds from divestiture of discontinued operations, net of cash — (1.4 ) 4.4 — 3.0 Intercompany loan investment, net — (69.4 ) (1,587.5 ) 1,656.9 — Investment in subsidiary — (815.0 ) — 815.0 — Proceeds from sale of subsidiary 3.4 — — (3.4 ) — Acquisition of subsidiary — — (3.4 ) 3.4 — Other — — 5.3 — 5.3 Net cash from investing activities 3.4 (885.8 ) (1,960.5 ) 2,471.9 (371.0 ) Cash Flows From Financing Activities: Issuance of external debt — — 36.3 — 36.3 Repayment of external debt and capital leases — (420.3 ) (18.7 ) — (439.0 ) Debt financing costs — — — — — Proceeds from exercise of share options 10.4 — — — 10.4 Repurchase of shares (377.5 ) — — — (377.5 ) Intercompany loan borrowings, net 385.0 1,271.9 — (1,656.9 ) — Capital contribution — — 815.0 (815.0 ) — Other — — (23.0 ) — (23.0 ) Net cash from financing activities 17.9 851.6 809.6 (2,471.9 ) (792.8 ) Effect of currency rate changes on cash — — 1.8 — 1.8 Net change in cash, cash equivalents and restricted cash — (133.5 ) (155.3 ) — (288.8 ) Cash, cash equivalents and restricted cash at beginning of period 0.3 158.5 429.6 — 588.4 Cash, cash equivalents and restricted cash at end of period $ 0.3 $ 25.0 $ 274.3 $ — $ 299.6 Cash and cash equivalents at end of period $ 0.3 $ 25.0 $ 255.2 $ — $ 280.5 Restricted Cash, current at end of period — — 0.1 — 0.1 Restricted Cash, noncurrent at end of period — — 19.0 — 19.0 Cash, cash equivalents and restricted cash at end of period $ 0.3 $ 25.0 $ 274.3 $ — $ 299.6 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 29, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events Commitments and Contingencies Putative Class Action Litigation (MSP) . On October 30, 2017, a putative class action lawsuit was filed against the Company and United BioSource Corporation ("UBC") in the U.S. District Court for the Central District of California. The case is captioned MSP Recovery Claims, Series II LLC, et al. v. Mallinckrodt ARD, Inc., et al. The complaint purports to be brought on behalf of two classes: all Medicare Advantage Organizations and related entities in the U.S. who purchased or provided reimbursement for Acthar pursuant to (i) Medicare Part C contracts (Class 1) and (ii) Medicare Part D contracts (Class 2) since January 1, 2011, with certain exclusions. The complaint alleges that the Company engaged in anticompetitive, unfair, and deceptive acts to artificially raise and maintain the price of Acthar. To this end, the complaint alleges that the Company unlawfully maintained a monopoly in a purported ACTH product market by acquiring the U.S. rights to Synacthen Depot and reaching anti-competitive agreements with the other defendants by selling Acthar through an exclusive distribution network. The complaint purports to allege claims under federal and state antitrust laws and state unfair competition and unfair trade practice laws. The Company intends to vigorously defend itself in this matter. Opioid Related Matters. The Company has been named in several lawsuits filed in federal court brought by various counties and cities, along with other opioid manufacturers and, often, distributors. In general, the lawsuits assert claims of public nuisance, negligence, civil conspiracy, fraud, violations of RICO or similar state laws, consumer fraud, deceptive trade practices, insurance fraud, unjust enrichment and other common law claims arising from defendants’ manufacturing, distribution, marketing and promotion of opioids and seek restitution, damages, injunctive and other relief and attorneys’ fees and costs. These claims have been filed or amended to include the Company in the U.S. District Court for the Southern District of Illinois (October 26, 2017 and October 27, 2017), the U.S. District Court for the Southern District of Ohio (between September 22, 2017 and November 6, 2017), the U.S. District Court for the Northern District of Alabama (October 25, 2017), the U.S. District Court for the Eastern District of Michigan (October 12, 2017), and the U.S. District Courts for the Eastern and Western Districts of Kentucky (between October 3 and October 30, 2017). The Company intends to vigorously defend itself in these matters. Inhaled Xenon Gas Licensing Agreement On October 2, 2017, the Company entered into a licensing agreement ("the Licensing Agreement") for development and commercialization of NeuroproteXeon Inc.'s ("NeuroproteXeon") investigational, pharmaceutical-grade xenon gas for inhalation therapy being evaluated to improve survival and functional outcomes for patients resuscitated after a cardiac arrest. If approved, xenon gas for inhalation will expand the Company's portfolio of hospital drug-device combination products providing therapies for critically ill patients. The Company paid $10.0 million upfront with cash on hand to reimburse NeuroproteXeon for certain product development costs, and gained exclusive rights to commercialize the therapy, if approved, in the U.S., Canada, Japan and Australia. The Licensing Agreement includes additional payments of up to $25.0 million dependent on developmental, regulatory and sales milestones. In addition, NeuroproteXeon will receive tiered royalties on applicable worldwide net sales and a transfer price for commercial product supply. NeuroproteXeon will continue to be responsible for the cost of development and will manage the development of the product in collaboration with the Company. Reorganization of Legal Entity Ownership On October 6, 2017, the Company completed a reorganization of its legal entity ownership ("the Reorganization") to align with its ongoing transformation to become an innovation-driven specialty pharmaceuticals growth company. Many factors were considered in effecting the Reorganization, including streamlining treasury functions, simplifying legal entity reporting processes, and capital allocation efficiencies. Given this Reorganization, the Internal Revenue Code required the Company to reallocate its tax basis from an investment in shares of a wholly-owned subsidiary to assets within another legal entity with no corresponding change in accounting basis. A deferred tax liability is not recognized on the wholly-owned subsidiary as there is a means for its recovery in a tax-free manner. The reallocation of tax basis resulted in a decrease to the net deferred tax liabilities associated with the assets within the other legal entity. During the three months ending December 29, 2017, the Company expects to record the reduction in its net deferred tax liabilities of $800.0 million to $950.0 million , which will result in the recognition of a net deferred income tax benefit of an equal amount. The reduction to net deferred tax liabilities is expected to be comprised of a $650.0 million to $775.0 million reduction to interest-bearing U.S. deferred tax liabilities and a $150.0 million to $175.0 million reduction to net deferred tax liabilities associated with intangible assets. During the three months ended September 29, 2017, the Company recognized income tax expense of $36.1 million , with an offset to deferred tax liabilities commensurate with the completion of certain aspects of the Reorganization during the third quarter of 2017. Ocera Acquisition On November 2, 2017, the Company entered into an agreement to acquire Ocera Therapeutics, Inc. ("Ocera") through a cash tender offer to purchase all of the outstanding shares of Ocera common stock for upfront consideration of approximately $42.0 million and contingent consideration up to $75.0 million based on the successful completion of certain development and sales milestones. Ocera is a clinical stage biopharmaceutical company focused on the development and commercialization of novel therapeutics for orphan and other serious liver diseases with a high unmet medical need. Ocera’s developmental product OCR-002, an ammonia scavenger, is being studied for treatment of hepatic encephalopathy, a neuropsychiatric syndrome associated with hyperammonemia, a complication of acute or chronic liver disease. This transaction is expected to close in the fourth quarter of 2017. Goodwill and Other Long-Lived Assets Impairment Analysis Goodwill is tested for impairment on an annual basis or more frequently if certain indicators are present or changes in circumstances suggest that impairment may exist. Management relies on a number of qualitative factors when considering a potential impairment such as its operating results, business plans, economic projections, anticipated future cash flows, transactions and market capitalization. Subsequent to September 29, 2017, the Company's market capitalization has declined, which may be an indicator of impairment should this decrease be more than temporary. The Company will continue to assess the impact of its market capitalization. It is possible that if the Company's market capitalization decline is more than temporary, such decline could result in an impairment of goodwill and other long-lived assets associated with its reporting units. |
Discontinued Operations and D29
Discontinued Operations and Divestitures (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the assets and liabilities of the Nuclear Imaging business that are classified as held for sale on the unaudited condensed consolidated balance sheets: September 29, 2017 December 30, 2016 Carrying amounts of major classes of assets included as part of discontinued operations Accounts receivable $ — $ 49.6 Inventories — 20.0 Property, plant and equipment, net — 188.7 Other current and non-current assets — 52.6 Total assets classified as held for sale in the balance sheet $ — $ 310.9 Carrying amounts of major classes of liabilities included as part of discontinued operations Accounts payable $ — $ 19.7 Other current and non-current liabilities — 100.6 Total liabilities classified as held for sale in the balance sheet $ — $ 120.3 |
Schedule of Income (Loss) from Discontinued Operations | The following table summarizes the financial results of the Nuclear Imaging business presented in the unaudited condensed consolidated statements of income: Three Months Ended Nine Months Ended Major line items constituting income from discontinued operations September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Net sales $ — $ 108.8 $ 31.6 $ 315.0 Cost of sales — 54.6 15.6 153.8 Selling, general and administrative expenses — 19.1 7.8 64.5 Restructuring charges, net — (0.3 ) — 0.1 Other — 2.2 (0.2 ) 3.6 Income from discontinued operations — 33.2 8.4 93.0 (Loss) gain on divestiture of discontinued operations (0.6 ) — 362.8 — (Loss) income from discontinued operations, before income taxes (0.6 ) 33.2 371.2 93.0 Income tax (benefit) expense (0.1 ) 24.8 5.2 43.8 (Loss) income from discontinued operations, net of income taxes $ (0.5 ) $ 8.4 $ 366.0 $ 49.2 |
Schedule of Significant Cash and Non-Cash Transactions | The following table summarizes significant cash and non-cash transactions of the Nuclear Imaging business that are included within the unaudited condensed consolidated statements of cash flows for the respective periods: Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Depreciation $ — $ 4.5 $ — $ 14.3 Capital expenditures — 4.0 0.3 7.8 |
Acquisitions, License Agreeme30
Acquisitions, License Agreements and Other Investments Tables | 9 Months Ended |
Sep. 29, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following amounts represent the preliminary allocations of the fair value of the identifiable assets acquired and liabilities assumed for the InfaCare Acquisition, including preliminary goodwill, intangible assets and the related deferred tax balances. The Company expects to complete its valuation analysis and finalize deferred tax balances as of the acquisition date no later than twelve months from the date of the acquisition. The changes in the purchase price allocation and preliminary goodwill based on the final valuation may include, but are not limited to, finalization of working capital settlements, the impact of U.S. state tax rates in determining the deferred tax balances and changes in assumptions utilized in the preliminary valuation report. InfaCare Cash and cash equivalents $ 1.3 Intangible assets 113.5 Goodwill 13.3 Other assets, current and non-current 0.1 Total assets acquired 128.2 Current liabilities 14.7 Deferred tax liabilities, net (non-current) 11.3 Contingent consideration 35.0 Total debt 30.0 Total liabilities assumed 91.0 Net assets acquired $ 37.2 |
Business Combination, Reconciliation of Total Consideration [Table Text Block] | The following is a reconciliation of the total consideration to net assets acquired: InfaCare Total consideration, net of cash $ 70.9 Plus: cash assumed in acquisition 1.3 Total consideration 72.2 Less: contingent consideration (35.0 ) Net assets acquired $ 37.2 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Intangible assets acquired consist of the following: InfaCare Amount Amortization Period In-process research and development ("IPR&D") - stannsoporfin $ 113.5 Non-Amortizable |
Restructuring and Related Cha31
Restructuring and Related Charges (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges by Segment | Net restructuring and related charges by segment are as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Specialty Brands $ 14.6 $ 4.9 $ 24.1 $ 21.7 Specialty Generics (0.6 ) 0.7 7.3 2.3 Corporate 1.5 3.1 4.3 10.0 Restructuring and related charges, net 15.5 8.7 35.7 34.0 Less: accelerated depreciation (1.2 ) (1.9 ) (3.6 ) (4.8 ) Restructuring charges, net $ 14.3 $ 6.8 $ 32.1 $ 29.2 |
Schedule of Net Restructuring and Related Charges | Net restructuring and related charges by program are comprised of the following: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2016 Mallinckrodt Program $ 15.5 $ 8.3 $ 35.7 $ 8.3 2013 Mallinckrodt Program — 0.3 — 22.7 Acquisitions — 0.1 — 3.0 Total 15.5 8.7 35.7 34.0 Less: accelerated depreciation (1.2 ) (1.9 ) (3.6 ) (4.8 ) Total charges expected to be settled in cash $ 14.3 $ 6.8 $ 32.1 $ 29.2 |
Schedule of Restructuring Reserves by Type of Cost | The following table summarizes cash activity for restructuring reserves, substantially all of which are related to employee severance and benefits: 2016 Mallinckrodt Program 2013 Mallinckrodt Program Acquisitions Total Balance at December 30, 2016 $ 9.5 $ 5.1 $ 0.2 $ 14.8 Charges 33.9 — — 33.9 Changes in estimate (1.8 ) — — (1.8 ) Cash payments (19.8 ) (3.7 ) (0.2 ) (23.7 ) Reclassifications (0.7 ) 0.3 — (0.4 ) Balance at September 29, 2017 $ 21.1 $ 1.7 $ — $ 22.8 |
Schedule of Restructuring Charges Incurred Cumulative to Date | Net restructuring and related charges, including associated asset impairments, incurred cumulative-to-date related to the 2016 Mallinckrodt Program was as follows: 2016 Mallinckrodt Program Specialty Brands $ 31.3 Specialty Generics 8.6 Corporate 9.3 $ 49.2 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows ( in millions ): Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Basic 96.7 107.6 99.5 109.1 Dilutive impact of restricted share units and share options 0.3 1.0 0.3 0.9 Diluted 97.0 108.6 99.8 110.0 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories were comprised of the following at the end of each period: September 29, December 30, Raw materials and supplies $ 76.3 $ 72.6 Work in process 160.4 178.4 Finished goods 104.6 99.7 $ 341.3 $ 350.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Property, Plant and Equipment | |
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 29, December 30, 2016 Property, plant and equipment, gross $ 1,820.4 $ 1,679.4 Less: accumulated depreciation (858.0 ) (797.9 ) Property, plant and equipment, net $ 962.4 $ 881.5 |
Depreciation of Fixed Assets | Depreciation expense for property, plant and equipment was as follows: Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Depreciation expense $ 27.3 $ 27.3 $ 83.5 $ 87.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The gross carrying amount and accumulated impairment of goodwill by segment at the end of each period were as follows: September 29, 2017 December 30, 2016 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Specialty Brands $ 3,459.5 $ — $ 3,498.1 $ — Specialty Generics 207.0 (207.0 ) 207.0 (207.0 ) Total $ 3,666.5 $ (207.0 ) $ 3,705.1 $ (207.0 ) |
Schedule of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets at the end of each period were as follows: September 29, 2017 December 30, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 9,955.6 $ 2,101.3 $ 10,028.7 $ 1,617.1 Licenses 177.1 120.1 177.1 112.7 Customer relationships 30.0 11.7 27.6 8.4 Trademarks 82.2 13.5 82.1 10.9 Other 8.6 8.6 6.7 6.7 Total $ 10,253.5 $ 2,255.2 $ 10,322.2 $ 1,755.8 Non-Amortizable: Trademarks $ 35.0 $ 35.0 In-process research and development 512.6 399.1 Total $ 547.6 $ 434.1 |
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: Remainder of Fiscal 2017 $ 172.6 Fiscal 2018 686.7 Fiscal 2019 686.3 Fiscal 2020 686.0 Fiscal 2021 685.8 |
Intangible Asset Amortization Expense | Intangible asset amortization expense was as follows: Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Amortization expense $ 173.2 $ 175.9 $ 523.0 $ 526.7 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt including Capital Lease Obligation | Debt was comprised of the following at the end of each period: September 29, 2017 December 30, 2016 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: Variable-rate receivable securitization due July 2017 $ — $ — $ 250.0 $ 0.3 3.50% notes due April 2018 300.0 0.4 — — Term loan due March 2021 — — 20.0 0.3 4.00% term loan due February 2022 — — 1.0 — Term loan due September 2024 18.6 0.2 — — Capital lease obligation and vendor financing agreements 0.2 — 0.8 — Total current debt 318.8 0.6 271.8 0.6 Long-term debt: 3.50% notes due April 2018 — — 300.0 0.9 4.875% notes due April 2020 700.0 6.3 700.0 8.2 Variable-rate receivable securitization due July 2020 200.0 0.7 — — Term loan due March 2021 — — 1,928.5 33.4 4.00% term loan due February 2022 — — 5.5 — 9.50% debentures due May 2022 10.4 — 10.4 — 5.75% notes due August 2022 884.0 10.0 884.0 11.6 8.00% debentures due March 2023 4.4 — 4.4 — 4.75% notes due April 2023 526.5 4.7 600.0 6.1 5.625% notes due October 2023 738.0 10.1 738.0 11.4 Term loan due September 2024 1,837.1 27.7 — — 5.50% notes due April 2025 692.1 9.3 695.0 10.2 Revolving credit facility — 6.3 100.0 3.2 Total long-term debt 5,592.5 75.1 5,965.8 85.0 Total debt $ 5,911.3 $ 75.7 $ 6,237.6 $ 85.6 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Periodic Benefit Cost | The net periodic benefit cost for the Company's defined benefit pension plans was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Service cost $ — $ 0.6 $ 1.5 $ 1.4 Interest cost 0.1 2.7 2.2 9.7 Expected return on plan assets — (4.1 ) (1.3 ) (12.5 ) Amortization of net actuarial loss 0.1 3.5 2.7 8.7 Amortization of prior service cost — — 0.2 — Plan settlements — 1.1 69.7 8.1 Net periodic benefit cost $ 0.2 $ 3.8 $ 75.0 $ 15.4 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Currency Translation Unrecognized Gain (Loss) on Derivatives Unrecognized Gain (Loss) on Benefit Plans Unrecognized Gain on Equity Securities Accumulated Other Comprehensive Income (Loss) Balance at December 25, 2015 $ (7.9 ) $ (6.3 ) $ (51.1 ) $ — $ (65.3 ) Other comprehensive income (loss) before reclassifications 10.2 — (39.5 ) — (29.3 ) Amounts reclassified from accumulated other comprehensive income (0.7 ) 0.4 9.3 — 9.0 Net current period other comprehensive income (loss) 9.5 0.4 (30.2 ) — (20.3 ) Balance at Balance at September 30, 2016 $ 1.6 $ (5.9 ) $ (81.3 ) $ — $ (85.6 ) The following summarizes the change in accumulated other comprehensive income (loss) for the nine months ended September 29, 2017 and September 30, 2016 : Currency Translation Unrecognized Gain (Loss) on Derivatives Unrecognized Gain (Loss) on Benefit Plans Unrecognized Gain on Equity Securities Accumulated Other Comprehensive Income (Loss) Balance at December 30, 2016 $ (19.5 ) $ (5.7 ) $ (47.3 ) $ — $ (72.5 ) Other comprehensive income before reclassifications 17.7 — 5.3 0.1 23.1 Amounts reclassified from accumulated other comprehensive income (4.7 ) 0.9 40.1 — 36.3 Net current period other comprehensive income 13.0 0.9 45.4 0.1 59.4 Balance at September 29, 2017 $ (6.5 ) $ (4.8 ) $ (1.9 ) $ 0.1 $ (13.1 ) |
Schedule of Reclassifications out of Accumulated Other Comprehensive Income | The following summarizes reclassifications from accumulated other comprehensive income for the nine months ended September 29, 2017 and September 30, 2016 : Amount Reclassified from Accumulated Other Comprehensive Income Nine Months Ended September 29, September 30, Line Item in the Unaudited Condensed Consolidated Statement of Income Amortization and other of unrealized loss on derivatives $ 1.1 $ 0.6 Interest expense Income tax provision (0.2 ) (0.2 ) Income tax benefit Net of income taxes 0.9 0.4 Amortization of pension and post-retirement benefit plans: Net actuarial loss 2.8 8.8 (1) Prior service credit (1.6 ) (2.1 ) (1) Divestiture of discontinued operations (3.1 ) — Income from discontinued operations, net of income taxes Plan settlements 69.7 8.1 (1) Selling, general and administrative expenses Total before tax 67.8 14.8 Income tax provision (27.7 ) (5.5 ) Income tax benefit Net of income taxes 40.1 9.3 Currency translation (4.7 ) (0.7 ) Income from discontinued operations, net of income taxes Total reclassifications for the period $ 36.3 $ 9.0 (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 12 for additional details . |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Schedule of Share Repurchases under the Repurchase Plan | |
Schedule of Share Repurchases under the Repurchase Plan | March 2017 Repurchase Program March 2016 Repurchase Program November 2015 Repurchase Program Number of Shares Amount Number of Shares Amount Number of Shares Amount Authorized repurchase amount $ 1,000.0 $ 350.0 $ 500.0 Repurchases: Fiscal 2016 (1) — — — — 6,510,824 425.6 Transition Period 2016 — — 1,501,676 84.0 1,063,337 74.4 Fiscal 2017 4,111,722 167.0 5,366,741 266.0 — — Remaining amount available $ 833.0 $ — $ — (1) Represents the Company's historical fiscal year ending on the last Friday in September. |
Financial Instruments and Fai40
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
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 29, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 34.1 $ 23.2 $ 10.9 $ — Equity securities 21.6 21.6 — — Foreign exchange forward and option contracts 0.6 0.6 — — $ 56.3 $ 45.4 $ 10.9 $ — Liabilities: Deferred compensation liabilities $ 38.9 $ — $ 38.9 $ — Contingent consideration and acquired contingent liabilities 268.6 — — 268.6 Foreign exchange forward and option contracts 1.2 1.2 — — $ 308.7 $ 1.2 $ 38.9 $ 268.6 December 30, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 33.6 $ 22.8 $ 10.8 $ — Foreign exchange forward and option contracts 0.7 0.7 — — $ 34.3 $ 23.5 $ 10.8 $ — Liabilities: Deferred compensation liabilities $ 32.5 $ — $ 32.5 $ — Contingent consideration and acquired contingent liabilities 250.5 — — 250.5 Foreign exchange forward and option contracts 3.4 3.4 — — $ 286.4 $ 3.4 $ 32.5 $ 250.5 |
Schedule of Reconciliation of Changes in Fair Value of Contingent Liabilities | The following table provides a summary of the changes in the Company's contingent consideration and acquired contingent liabilities: Balance at December 30, 2016 $ 250.5 Acquisition date fair value of contingent consideration 35.0 Payments (25.0 ) Accretion expense 4.0 Fair value adjustment 4.1 Balance at September 29, 2017 $ 268.6 |
Schedule of Carrying Amount and Fair Value of Long-term Debt | The following table presents the carrying values and estimated fair values of the Company's long-term debt, excluding capital leases, as of the end of each period: September 29, 2017 December 30, 2016 Carrying Value Fair Value Carrying Value Fair Value Variable-rate receivable securitization due July 2017 $ — $ — $ 250.0 $ 250.0 3.50% notes due April 2018 300.0 300.2 300.0 298.7 4.875% notes due April 2020 700.0 696.7 700.0 699.5 Variable-rate receivable securitization due July 2020 200.0 200.0 — — Term loans due March 2021 — — 1,948.5 1,953.2 4.00% term loan due February 2022 — — 6.5 6.5 9.50% debentures due May 2022 10.4 11.5 10.4 12.0 5.75% notes due August 2022 884.0 853.3 884.0 850.3 8.00% debentures due March 2023 4.4 4.7 4.4 4.9 4.75% notes due April 2023 526.5 448.5 600.0 520.9 5.625% notes due October 2023 738.0 689.5 738.0 682.4 Term loan due September 2024 1,855.7 1,853.8 — — 5.50% notes due April 2025 692.1 625.4 695.0 615.7 Revolving credit facility — — 100.0 100.0 |
Schedules of Concentration of Risk | The following table shows net sales attributable to distributors that accounted for 10% or more of the Company's total net sales: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, CuraScript, Inc. 41 % 40 % 40 % 37 % McKesson Corporation 9 % 11 % 9 % 11 % The following table shows accounts receivable attributable to distributors that accounted for 10% or more of the Company's gross accounts receivable at the end of each period: September 29, December 30, McKesson Corporation 20 % 28 % Amerisource Bergen Corporation 14 % 15 % CuraScript, Inc. 14 % 15 % Cardinal Health, Inc. 11 % 10 % The following table shows net sales attributable to products that accounted for 10% or more of the Company's total net sales: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Acthar 39 % 37 % 37 % 34 % Inomax 16 % 14 % 16 % 14 % |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Reportable Segment | Selected information by reportable segment was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Net sales: Specialty Brands $ 591.4 $ 633.1 $ 1,743.1 $ 1,757.4 Specialty Generics 189.1 239.8 643.7 767.6 Net sales of reportable segments 780.5 872.9 2,386.8 2,525.0 Other (1) 13.4 14.3 42.5 44.6 Net sales $ 793.9 $ 887.2 $ 2,429.3 $ 2,569.6 Operating income: Specialty Brands $ 316.6 $ 334.1 $ 865.7 $ 897.1 Specialty Generics 40.4 63.9 179.9 260.9 Segment operating income 357.0 398.0 1,045.6 1,158.0 Unallocated amounts: Corporate and unallocated expenses (2) (47.6 ) (65.7 ) (163.9 ) (125.2 ) Intangible asset amortization (173.2 ) (175.9 ) (523.0 ) (526.7 ) Restructuring and related charges, net (3) (15.5 ) (8.7 ) (35.7 ) (34.0 ) Non-restructuring impairment charges — — — (16.9 ) Operating income $ 120.7 $ 147.7 $ 323.0 $ 455.2 (1) Represents net sales under an ongoing supply agreement with the acquirer of the CMDS business. (2) Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (3) Includes restructuring-related accelerated depreciation. |
Schedule of Net Sales from External Customers by Products | Net sales by product family within the Company's reportable segments are as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Acthar $ 308.7 $ 327.0 $ 899.9 $ 873.7 Inomax 125.7 126.9 379.6 363.5 Ofirmev 75.4 75.6 224.5 217.4 Therakos immunotherapy 55.3 54.5 157.7 157.2 Hemostasis products 16.2 17.2 42.8 42.5 Other 10.1 31.9 38.6 103.1 Specialty Brands 591.4 633.1 1,743.1 1,757.4 Hydrocodone (API) and hydrocodone-containing tablets 10.0 30.8 63.3 109.8 Oxycodone (API) and oxycodone-containing tablets 13.4 28.8 60.6 97.3 Methylphenidate ER 14.3 23.4 58.2 72.3 Other controlled substances 103.9 111.8 319.0 358.4 Other products 47.5 45.0 142.6 129.8 Specialty Generics 189.1 239.8 643.7 767.6 Other (1) 13.4 14.3 42.5 44.6 Net sales $ 793.9 $ 887.2 $ 2,429.3 $ 2,569.6 (1) Represents net sales under an ongoing supply agreement with the acquirer of the CMDS business. |
Condensed Consolidating Finan42
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 29, 2017 | |
Condensed Consolidating Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of September 29, 2017 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.7 $ 37.6 $ 333.5 $ — $ 371.8 Accounts receivable, net — — 464.3 — 464.3 Inventories — — 341.3 — 341.3 Prepaid expenses and other current assets 0.3 0.2 120.6 — 121.1 Notes receivable — — 154.0 — 154.0 Current assets held for sale — — — — — Intercompany receivables 127.9 246.8 694.1 (1,068.8 ) — Total current assets 128.9 284.6 2,107.8 (1,068.8 ) 1,452.5 Property, plant and equipment, net — — 962.4 — 962.4 Goodwill — — 3,459.5 — 3,459.5 Intangible assets, net — — 8,545.9 — 8,545.9 Investment in subsidiaries 4,923.4 21,531.2 10,654.1 (37,108.7 ) — Intercompany loans receivable 744.8 — 4,710.0 (5,454.8 ) — Other assets — — 191.6 — 191.6 Total Assets $ 5,797.1 $ 21,815.8 $ 30,631.3 $ (43,632.3 ) $ 14,611.9 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 318.0 $ 0.2 $ — $ 318.2 Accounts payable — — 104.9 — 104.9 Accrued payroll and payroll-related costs — — 84.4 — 84.4 Accrued interest — 77.5 0.6 — 78.1 Income taxes payable — — 28.1 — 28.1 Accrued and other current liabilities 1.3 0.4 438.7 — 440.4 Current liabilities held for sale — — — — — Intercompany payables 682.8 — 386.0 (1,068.8 ) — Total current liabilities 684.1 395.9 1,042.9 (1,068.8 ) 1,054.1 Long-term debt — 5,303.3 214.1 — 5,517.4 Pension and postretirement benefits — — 67.5 — 67.5 Environmental liabilities — — 73.1 — 73.1 Deferred income taxes — — 2,294.1 — 2,294.1 Other income tax liabilities — — 78.5 — 78.5 Intercompany loans payable — 5,454.8 — (5,454.8 ) — Other liabilities — 7.7 406.5 — 414.2 Total Liabilities 684.1 11,161.7 4,176.7 (6,523.6 ) 9,498.9 Shareholders' Equity 5,113.0 10,654.1 26,454.6 (37,108.7 ) 5,113.0 Total Liabilities and Shareholders' Equity $ 5,797.1 $ 21,815.8 $ 30,631.3 $ (43,632.3 ) $ 14,611.9 MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of December 30, 2016 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.5 $ 44.5 $ 297.0 $ — $ 342.0 Accounts receivable, net — — 431.0 — 431.0 Inventories — — 350.7 — 350.7 Prepaid expenses and other current assets 1.0 — 130.9 — 131.9 Notes receivable — — — — — Current assets held for sale — — 310.9 — 310.9 Intercompany receivables 59.7 65.1 1,081.3 (1,206.1 ) — Total current assets 61.2 109.6 2,601.8 (1,206.1 ) 1,566.5 Property, plant and equipment, net — — 881.5 — 881.5 Goodwill — — 3,498.1 — 3,498.1 Intangible assets, net — — 9,000.5 — 9,000.5 Investment in subsidiaries 5,534.1 20,624.1 10,988.5 (37,146.7 ) — Intercompany loans receivable 3.5 — 3,325.9 (3,329.4 ) — Other assets — — 259.7 — 259.7 Total Assets $ 5,598.8 $ 20,733.7 $ 30,556.0 $ (41,682.2 ) $ 15,206.3 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 19.7 $ 251.5 $ — $ 271.2 Accounts payable 0.1 0.1 111.9 — 112.1 Accrued payroll and payroll-related costs — — 76.1 — 76.1 Accrued interest — 53.9 14.8 — 68.7 Income taxes payable — — 101.7 — 101.7 Accrued and other current liabilities 1.9 7.5 547.7 — 557.1 Current liabilities held for sale — — 120.3 — 120.3 Intercompany payables 612.5 467.1 126.5 (1,206.1 ) — Total current liabilities 614.5 548.3 1,350.5 (1,206.1 ) 1,307.2 Long-term debt — 5,860.6 20.2 — 5,880.8 Pension and postretirement benefits — — 136.4 — 136.4 Environmental liabilities — — 73.0 — 73.0 Deferred income taxes — — 2,398.1 — 2,398.1 Other income tax liabilities — — 70.4 — 70.4 Intercompany loans payable — 3,329.4 — (3,329.4 ) — Other liabilities — 7.0 349.1 — 356.1 Total Liabilities 614.5 9,745.3 4,397.7 (4,535.5 ) 10,222.0 Shareholders' Equity 4,984.3 10,988.4 26,158.3 (37,146.7 ) 4,984.3 Total Liabilities and Shareholders' Equity $ 5,598.8 $ 20,733.7 $ 30,556.0 $ (41,682.2 ) $ 15,206.3 |
Schedule of Condensed Consolidating Statements of Comprehensive Income | MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the three months ended September 29, 2017 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 793.9 $ — $ 793.9 Cost of sales 0.9 — 392.4 — 393.3 Gross profit (0.9 ) — 401.5 — 400.6 Selling, general and administrative expenses 13.4 0.2 192.1 — 205.7 Research and development expenses 1.8 — 57.7 — 59.5 Restructuring charges, net — — 14.3 — 14.3 Non-restructuring impairment charges — — — — — Losses on divestiture and license — — 0.4 — 0.4 Operating (loss) income (16.1 ) (0.2 ) 137.0 — 120.7 Interest expense (3.3 ) (90.9 ) (19.0 ) 20.6 (92.6 ) Interest income 2.2 0.4 19.3 (20.6 ) 1.3 Other income, net 1.4 1.7 0.6 — 3.7 Intercompany fees (4.3 ) — 4.3 — — Equity in net income of subsidiaries 82.4 261.8 174.7 (518.9 ) — Income from continuing operations before income taxes 62.3 172.8 316.9 (518.9 ) 33.1 Income tax benefit (1.4 ) (2.1 ) (27.7 ) — (31.2 ) Income from continuing operations 63.7 174.9 344.6 (518.9 ) 64.3 Loss from discontinued operations, net of income taxes — (0.2 ) (0.4 ) — (0.6 ) Net income 63.7 174.7 344.2 (518.9 ) 63.7 Other comprehensive loss, net of tax (5.1 ) (5.1 ) (10.5 ) 15.6 (5.1 ) Comprehensive income $ 58.6 $ 169.6 $ 333.7 $ (503.3 ) $ 58.6 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the three months ended September 30, 2016 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 887.2 $ — $ 887.2 Cost of sales — — 397.0 — 397.0 Gross profit — — 490.2 — 490.2 Selling, general and administrative expenses 14.7 0.1 253.0 — 267.8 Research and development expenses — — 67.9 — 67.9 Restructuring charges, net — — 6.8 — 6.8 Non-restructuring impairment charge — — — — — Losses on divestiture and license — — — — — Operating (loss) income (14.7 ) (0.1 ) 162.5 — 147.7 Interest expense (36.1 ) (82.0 ) (19.4 ) 43.5 (94.0 ) Interest income — 0.2 43.8 (43.5 ) 0.5 Other income (expense), net 7.4 — (8.0 ) — (0.6 ) Intercompany fees (5.6 ) — 5.6 — — Equity in net income of subsidiaries 157.1 302.7 224.5 (684.3 ) — Income from continuing operations before income taxes 108.1 220.8 409.0 (684.3 ) 53.6 Income tax benefit (6.9 ) (4.1 ) (45.4 ) — (56.4 ) Income from continuing operations 115.0 224.9 454.4 (684.3 ) 110.0 (Loss) income from discontinued operations, net of income taxes — (0.4 ) 5.4 — 5.0 Net income 115.0 224.5 459.8 (684.3 ) 115.0 Other comprehensive loss, net of tax (19.9 ) (19.9 ) (39.8 ) 59.7 (19.9 ) Comprehensive income $ 95.1 $ 204.6 $ 420.0 $ (624.6 ) $ 95.1 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the nine months ended September 29, 2017 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 2,429.3 $ — $ 2,429.3 Cost of sales 1.8 — 1,192.2 — 1,194.0 Gross profit (1.8 ) — 1,237.1 — 1,235.3 Selling, general and administrative expenses 46.7 0.6 698.6 — 745.9 Research and development expenses 3.6 — 187.3 — 190.9 Restructuring charges, net — — 32.1 — 32.1 Non-restructuring impairment charge — — — — — Gains on divestiture and license — — (56.6 ) — (56.6 ) Operating income (52.1 ) (0.6 ) 375.7 — 323.0 Interest expense (10.0 ) (264.9 ) (57.9 ) 53.8 (279.0 ) Interest income 5.3 1.0 50.3 (53.8 ) 2.8 Other income (expense), net 19.0 (1.6 ) (11.2 ) — 6.2 Intercompany fees (13.3 ) — 13.3 — — Equity in net income of subsidiaries 572.1 1,113.5 848.1 (2,533.7 ) — Income from continuing operations before income taxes 521.0 847.4 1,218.3 (2,533.7 ) 53.0 Income tax benefit (4.7 ) (2.6 ) (103.5 ) — (110.8 ) Income from continuing operations 525.7 850.0 1,321.8 (2,533.7 ) 163.8 (Loss) income from discontinued operations, net of income taxes — (1.9 ) 363.8 — 361.9 Net income 525.7 848.1 1,685.6 (2,533.7 ) 525.7 Other comprehensive income, net of tax 59.4 59.4 117.9 (177.3 ) 59.4 Comprehensive income $ 585.1 $ 907.5 $ 1,803.5 $ (2,711.0 ) $ 585.1 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the nine months ended September 30, 2016 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 2,569.6 $ — $ 2,569.6 Cost of sales — — 1,165.5 — 1,165.5 Gross profit — — 1,404.1 — 1,404.1 Selling, general and administrative expenses 40.9 0.5 660.6 — 702.0 Research and development expenses — — 200.8 — 200.8 Restructuring charges, net — — 29.2 — 29.2 Non-restructuring impairment charge — — 16.9 — 16.9 Gains on divestiture and license — — — — — Operating income (40.9 ) (0.5 ) 496.6 — 455.2 Interest expense (162.3 ) (245.1 ) (61.4 ) 182.0 (286.8 ) Interest income — 0.5 182.6 (182.0 ) 1.1 Other income (expense), net 22.3 — (24.9 ) — (2.6 ) Intercompany fees (12.9 ) 0.1 12.8 — — Equity in net income of subsidiaries 609.8 1,015.2 786.2 (2,411.2 ) — Income from continuing operations before income taxes 416.0 770.2 1,391.9 (2,411.2 ) 166.9 Income tax benefit (16.6 ) (18.1 ) (183.6 ) — (218.3 ) Income from continuing operations 432.6 788.3 1,575.5 (2,411.2 ) 385.2 (Loss) income from discontinued operations, net of income taxes — (2.1 ) 49.5 — 47.4 Net income 432.6 786.2 1,625.0 (2,411.2 ) 432.6 Other comprehensive loss, net of tax (20.3 ) (20.3 ) (41.0 ) 61.3 (20.3 ) Comprehensive income $ 412.3 $ 765.9 $ 1,584.0 $ (2,349.9 ) $ 412.3 |
Schedule of Condensed Consolidating Statements of Cash Flows | MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 29, 2017 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Cash Flows From Operating Activities: Net cash from operating activities $ 1,172.0 $ 1,233.7 $ 1,963.0 $ (3,920.2 ) $ 448.5 Cash Flows From Investing Activities: Capital expenditures — — (151.3 ) — (151.3 ) Acquisitions and intangibles, net of cash acquired — — (35.9 ) — (35.9 ) Proceeds from divestiture of discontinued operations, net of cash — — 576.9 — 576.9 Intercompany loan investment, net (741.3 ) — (920.8 ) 1,662.1 — Investment in subsidiary — (1,412.5 ) — 1,412.5 — Other — — 0.5 — 0.5 Net cash from investing activities (741.3 ) (1,412.5 ) (530.6 ) 3,074.6 390.2 Cash Flows From Financing Activities: Issuance of external debt — 500.0 40.0 — 540.0 Repayment of external debt and capital leases — (759.9 ) (127.6 ) — (887.5 ) Debt financing costs — (12.7 ) — — (12.7 ) Proceeds from exercise of share options 4.0 — — — 4.0 Repurchase of shares (437.7 ) — — — (437.7 ) Intercompany loan borrowings, net — 1,614.5 47.6 (1,662.1 ) — Intercompany dividends — (1,170.0 ) (2,750.2 ) 3,920.2 — Capital contribution — — 1,412.5 (1,412.5 ) — Other 3.2 — (21.8 ) — (18.6 ) Net cash from financing activities (430.5 ) 171.9 (1,399.5 ) 845.6 (812.5 ) Effect of currency rate changes on cash — — 2.7 — 2.7 Net change in cash, cash equivalents and restricted cash 0.2 (6.9 ) 35.6 — 28.9 Cash, cash equivalents and restricted cash at beginning of period 0.5 44.5 316.1 — 361.1 Cash, cash equivalents and restricted cash at end of period $ 0.7 $ 37.6 $ 351.7 $ — $ 390.0 Cash and cash equivalents at end of period $ 0.7 $ 37.6 $ 333.5 $ — $ 371.8 Restricted Cash, current at end of period — — — — — Restricted Cash, noncurrent at end of period — — 18.2 — 18.2 Cash, cash equivalents and restricted cash at end of period $ 0.7 $ 37.6 $ 351.7 $ — $ 390.0 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2016 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Cash Flows From Operating Activities: Net cash from operating activities $ (21.3 ) $ (99.3 ) $ 993.8 $ — $ 873.2 Cash Flows From Investing Activities: Capital expenditures — — (133.9 ) — (133.9 ) Acquisitions and intangibles, net of cash acquired — — (245.4 ) — (245.4 ) Proceeds from divestiture of discontinued operations, net of cash — (1.4 ) 4.4 — 3.0 Intercompany loan investment, net — (69.4 ) (1,587.5 ) 1,656.9 — Investment in subsidiary — (815.0 ) — 815.0 — Proceeds from sale of subsidiary 3.4 — — (3.4 ) — Acquisition of subsidiary — — (3.4 ) 3.4 — Other — — 5.3 — 5.3 Net cash from investing activities 3.4 (885.8 ) (1,960.5 ) 2,471.9 (371.0 ) Cash Flows From Financing Activities: Issuance of external debt — — 36.3 — 36.3 Repayment of external debt and capital leases — (420.3 ) (18.7 ) — (439.0 ) Debt financing costs — — — — — Proceeds from exercise of share options 10.4 — — — 10.4 Repurchase of shares (377.5 ) — — — (377.5 ) Intercompany loan borrowings, net 385.0 1,271.9 — (1,656.9 ) — Capital contribution — — 815.0 (815.0 ) — Other — — (23.0 ) — (23.0 ) Net cash from financing activities 17.9 851.6 809.6 (2,471.9 ) (792.8 ) Effect of currency rate changes on cash — — 1.8 — 1.8 Net change in cash, cash equivalents and restricted cash — (133.5 ) (155.3 ) — (288.8 ) Cash, cash equivalents and restricted cash at beginning of period 0.3 158.5 429.6 — 588.4 Cash, cash equivalents and restricted cash at end of period $ 0.3 $ 25.0 $ 274.3 $ — $ 299.6 Cash and cash equivalents at end of period $ 0.3 $ 25.0 $ 255.2 $ — $ 280.5 Restricted Cash, current at end of period — — 0.1 — 0.1 Restricted Cash, noncurrent at end of period — — 19.0 — 19.0 Cash, cash equivalents and restricted cash at end of period $ 0.3 $ 25.0 $ 274.3 $ — $ 299.6 |
Recently Issued Accounting St43
Recently Issued Accounting Standards (Details) | 9 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
ASU 2016-16 | Retained Earnings | ||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 75 | |
ASU 2016-16 | Other Assets | ||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 67.2 | |
ASU 2016-16 | Prepaid Expenses and Other Current Assets | ||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 7.8 | |
ASU 2016-15 | ||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 47.4 | |
ASU 2016-09 | Retained Earnings | ||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 2.9 |
Discontinued Operations and D44
Discontinued Operations and Divestitures Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | Jan. 30, 2017 | Jan. 27, 2017 | Nov. 27, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued operation, (loss) income from discontinued operations, net of tax | $ 0.6 | $ (5) | $ (361.9) | $ (47.4) | |||
Income from discontinued operations | 8.4 | ||||||
Nuclear Imaging | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 690 | ||||||
Disposal Group, Including Discontinued Operation, Upfront Consideration | 574 | ||||||
Disposal Group, Including Discontinued Operation, Contingent Consideration Maximum Amount | $ 77 | ||||||
(Loss) gain on divestiture of discontinued operations | (0.6) | 0 | 362.8 | 0 | |||
Discontinued operation, income tax (benefit) expense | 0.1 | (24.8) | (5.2) | (43.8) | |||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | 4.3 | ||||||
Disposal Group, Including Discontinued Operations, Net Sales | 0 | 108.8 | 31.6 | 315 | |||
Discontinued operation, (loss) income from discontinued operations, net of tax | 0.5 | (8.4) | (366) | (49.2) | |||
Income from discontinued operations | 0 | 33.2 | 8.4 | 93 | |||
Other Tax Expense (Benefit) | 0.9 | ||||||
(Loss) income from discontinued operations, before income taxes | (0.6) | 33.2 | 371.2 | 93 | |||
Contrast Media and Delivery Systems | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 270 | ||||||
(Loss) gain on divestiture of discontinued operations | 4 | ||||||
Discontinued operation, income tax (benefit) expense | 0.4 | 0.2 | |||||
Disposal Group, Including Discontinued Operations, Net Sales | $ 0 | 1.8 | |||||
Discontinued operation, (loss) income from discontinued operations, net of tax | $ 4.4 | ||||||
Intrathecal Therapy | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal group, not discontinued operation, consideration | $ 203 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (0.4) | 56.6 | |||||
Disposal group, not discontinued operation, upfront consideration | 17 | ||||||
Disposal Group, not discontinued operation, Note Receivable Consideration | 154 | ||||||
Disposal group, not discontinued operation, contingent consideration | 32 | ||||||
Disposal group, not discontinued operation, fixed consideration | 171 | ||||||
Disposal Group, Not Discontinued Operations, Other Commitment | $ 7.3 | ||||||
Other Intangible Assets | Intrathecal Therapy | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (48.7) | ||||||
Goodwill | Intrathecal Therapy | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (49.8) |
Discontinued Operations and D45
Discontinued Operations and Divestitures Discontinued Operations (Income) Loss from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations | $ 8.4 | |||
(Loss) income from discontinued operations, net of income taxes | $ (0.6) | $ 5 | 361.9 | $ 47.4 |
Nuclear Imaging | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operations, Net Sales | 0 | 108.8 | 31.6 | 315 |
Discontinued operation, costs of goods sold | 0 | 54.6 | 15.6 | 153.8 |
Discontinued operation, selling general and administrative expense | 0 | 19.1 | 7.8 | 64.5 |
Disposal Group, Including Discontinued Operation, Restructuring Charges, Net | 0 | (0.3) | 0 | 0.1 |
Disposal Group, Including Discontinued Operation, Other Expense | (0.2) | |||
Discontinued operation, other income | 0 | 2.2 | 3.6 | |
Income from discontinued operations | 0 | 33.2 | 8.4 | 93 |
(Loss) gain on divestiture of discontinued operations | (0.6) | 0 | 362.8 | 0 |
(Loss) income from discontinued operations, before income taxes | (0.6) | 33.2 | 371.2 | 93 |
Income tax (benefit) expense | (0.1) | 24.8 | 5.2 | 43.8 |
(Loss) income from discontinued operations, net of income taxes | $ (0.5) | 8.4 | $ 366 | 49.2 |
Contrast Media and Delivery Systems | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operations, Net Sales | 0 | 1.8 | ||
(Loss) gain on divestiture of discontinued operations | 4 | |||
Income tax (benefit) expense | $ (0.4) | (0.2) | ||
(Loss) income from discontinued operations, net of income taxes | $ (4.4) |
Discontinued Operations and D46
Discontinued Operations and Divestitures Discontinued Operations (Assets and Liabilities Held-for-sale) (Details) - Nuclear Imaging - Discontinued Operations, Held-for-sale [Member] - USD ($) $ in Millions | Sep. 29, 2017 | Dec. 30, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, held for sale | $ 0 | $ 49.6 |
Inventories, held for sale | 0 | 20 |
Property, plant and equipment, net, held for sale | 0 | 188.7 |
Other current assets and non-current assets, held for sale | 0 | 52.6 |
Total assets classified as held for sale in the balance sheet | 0 | 310.9 |
Accounts payable, held for sale | 0 | 19.7 |
Other current and non-current liabilities, held for sale | 0 | 100.6 |
Total liabilities classified as held for sale in the balance sheet | $ 0 | $ 120.3 |
Discontinued Operations and D47
Discontinued Operations and Divestitures Discontinued Operations (Significant Cash and Non-Cash Transactions) (Details) - Nuclear Imaging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation, Discontinued Operations | $ 0 | $ 4.5 | $ 0 | $ 14.3 |
Capital Expenditure, Discontinued Operations | $ 0 | $ 4 | $ 0.3 | $ 7.8 |
Acquisitions, License Agreeme48
Acquisitions, License Agreements and Other Investments (Narrative) (Details) - USD ($) $ in Millions | Sep. 25, 2017 | Aug. 31, 2016 | Feb. 01, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||||||
Business Combination, Acquisition Related Costs | $ 1.2 | $ 3.8 | $ 2.3 | $ 5.8 | |||
Mesoblast | |||||||
Business Acquisition [Line Items] | |||||||
Payments to Acquire Marketable Securities | 21.5 | ||||||
Available-for-sale Securities, Current | 19.7 | 19.7 | |||||
Intangible Assets, Current | 1.8 | 1.8 | |||||
InfaCare Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred, Other | $ 80.4 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 345 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 37.2 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 43.2 | ||||||
Business Combination, Contingent Consideration, Liability | $ 35 | ||||||
Stratatech | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred, Other | $ 76 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 121 | ||||||
Hemostasis Products | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred, Other | $ 173.5 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 395 | ||||||
Business Combination, Contingent Consideration, Liability | 52 | ||||||
Fair value of contingent liability | $ 10.6 | ||||||
Cost of Sales | Total Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Amortization Of Inventory Step-Up To Cost Of Sales | $ 2.7 | $ 3.4 | $ 8.6 | $ 8.1 |
Acquisitions, License Agreeme49
Acquisitions, License Agreements and Other Investments Schedule of Fair Value of Assets and Liabilities Acquired (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Sep. 25, 2017 | Dec. 30, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,459.5 | $ 3,498.1 | |
InfaCare Acquisition | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 1.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 113.5 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 0.1 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 128.2 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 14.7 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 11.3 | ||
Business Combination, Contingent Consideration, Liability | 35 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | 30 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 91 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 37.2 |
Acquisitions, License Agreeme50
Acquisitions, License Agreements and Other Investments Schedule of Reconciliation of Total Consideration (Details) - InfaCare Acquisition $ in Millions | Sep. 25, 2017USD ($) |
Business Acquisition [Line Items] | |
Business Combination Consideration Transferred, Net Of Cash | $ 70.9 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 1.3 |
Business Combination, Consideration Transferred | 72.2 |
Business Combination, Contingent Consideration, Liability | (35) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 37.2 |
Acquisitions, License Agreeme51
Acquisitions, License Agreements and Other Investments Schedule of Intangible Assets Acquired (Details) - InfaCare Acquisition $ in Millions | Sep. 25, 2017USD ($) |
In-process Research and Development | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 113.5 |
Stannsoporfin [Member] | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Business Combination, Cash Flow Discount Rate | 13.50% |
Restructuring and Related Cha52
Restructuring and Related Charges (Narrative) (Details) - Restructuring Fiscal 2016 Plan $ in Millions | Sep. 29, 2017USD ($) |
Minimum | |
Restructuring Cost and Reserve | |
Restructuring and Related Cost, Expected Cost | $ 100 |
Maximum | |
Restructuring Cost and Reserve | |
Restructuring and Related Cost, Expected Cost | $ 125 |
Restructuring and Related Cha53
Restructuring and Related Charges (Schedule of Restructuring and Related Charges by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve | ||||
Restructuring and related charges, net | $ 15.5 | $ 8.7 | $ 35.7 | $ 34 |
Less: accelerated depreciation | (1.2) | (1.9) | (3.6) | (4.8) |
Restructuring charges, net | 14.3 | 6.8 | 32.1 | 29.2 |
Specialty Brands | ||||
Restructuring Cost and Reserve | ||||
Restructuring and related charges, net | 14.6 | 4.9 | 24.1 | 21.7 |
Specialty Generics | ||||
Restructuring Cost and Reserve | ||||
Restructuring and related charges, net | (0.6) | 0.7 | 7.3 | 2.3 |
Corporate | ||||
Restructuring Cost and Reserve | ||||
Restructuring and related charges, net | $ 1.5 | $ 3.1 | $ 4.3 | $ 10 |
Restructuring and Related Cha54
Restructuring and Related Charges (Schedule of Net Restructuring and Related Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve | ||||
Restructuring and related charges, net | $ 15.5 | $ 8.7 | $ 35.7 | $ 34 |
Less: accelerated depreciation | (1.2) | (1.9) | (3.6) | (4.8) |
Total charges expected to be settled in cash | 14.3 | 6.8 | 32.1 | 29.2 |
Restructuring Fiscal 2016 Plan | ||||
Restructuring Cost and Reserve | ||||
Restructuring and related charges, net | 15.5 | 8.3 | 35.7 | 8.3 |
2013 Mallinckrodt program | ||||
Restructuring Cost and Reserve | ||||
Restructuring and related charges, net | 0 | 0.3 | 0 | 22.7 |
Acquisitions | ||||
Restructuring Cost and Reserve | ||||
Restructuring and related charges, net | $ 0 | $ 0.1 | $ 0 | $ 3 |
Restructuring and Related Cha55
Restructuring and Related Charges (Schedule of Restructuring Reserves by Type of Cost) (Details) $ in Millions | 9 Months Ended |
Sep. 29, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 14.8 |
Charges | 33.9 |
Changes in estimate | (1.8) |
Cash payments | (23.7) |
Reclassification | (0.4) |
Ending Balance | 22.8 |
Restructuring Fiscal 2016 Plan | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 9.5 |
Charges | 33.9 |
Changes in estimate | (1.8) |
Cash payments | (19.8) |
Reclassification | (0.7) |
Ending Balance | 21.1 |
2013 Mallinckrodt program | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 5.1 |
Charges | 0 |
Changes in estimate | 0 |
Cash payments | (3.7) |
Reclassification | 0.3 |
Ending Balance | 1.7 |
Acquisitions | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 0.2 |
Charges | 0 |
Changes in estimate | 0 |
Cash payments | (0.2) |
Reclassification | 0 |
Ending Balance | $ 0 |
Restructuring and Related Cha56
Restructuring and Related Charges (Schedule of Restructuring Charges Incurred Cumulative to Date) (Details) - Restructuring Fiscal 2016 Plan $ in Millions | Sep. 29, 2017USD ($) |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | $ 49.2 |
Specialty Brands | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | 31.3 |
Specialty Generics | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | 8.6 |
Corporate | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | $ 9.3 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 29, 2017USD ($) | Dec. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 29, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 25, 2017USD ($) | |
Income Taxes [Line Items] | |||||||
Deferred tax benefit, intangible assets | $ (45.5) | $ (232.8) | |||||
Deferred tax expense, Utilization of Tax Attributes | 74.3 | 101.5 | |||||
Income tax benefit | (31.2) | $ (56.4) | $ (110.8) | $ (218.3) | |||
Other increase, percentage point | 105.2 | ||||||
Increase (Decrease) Tax Expense (Benefit) Due to Foreign Tax Credit, Percentage Point | 16.5 | ||||||
Loss (income) from continuing operations before income taxes | $ 33.1 | $ 53.6 | $ 53 | $ 166.9 | |||
Effective tax rate | (94.30%) | (105.20%) | (209.10%) | (130.80%) | |||
Current Income Tax Expense (Benefit) | $ (60) | $ 37.9 | $ 20.5 | $ 85.9 | |||
Deferred Income Tax Expense (Benefit) | $ 28.8 | (94.3) | $ (131.3) | (304.2) | |||
Increase (Decrease) in Effective Tax Rate, Percentage Point | 10.9 | (78.3) | |||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percentage Point | 109.4 | 68.2 | |||||
Income Taxes Paid, Net | $ 95.6 | $ 90.9 | $ 165.4 | ||||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Percentage Point | 36.7 | 15.5 | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percentage Point | (135.2) | (183.5) | |||||
Increase (Decrease) Effective Tax Rate, Divestitures, Percentage Point | 5 | ||||||
Income Tax Expense (Benefit), Legal Reorganization | $ 36.1 | ||||||
Unrecognized tax benefits | 123 | 118.7 | $ 123 | ||||
Unrecognized tax benefits, net increase | 4.3 | ||||||
Unrecognized tax benefits, net decreases related to prior period tax positions | (1.7) | ||||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (2.7) | ||||||
Unrecognized tax benefits, additions related to current year tax positions | 8.7 | ||||||
Unrecognized tax benefits, which if favorably settled would benefit the effective tax rate | 121.3 | 121.3 | |||||
Interest accrued on unrecognized tax benefits | 6.8 | 7.1 | 6.8 | ||||
Unrecognized tax benefits that would impact effective tax rate, upper bound of change | (30.2) | (30.2) | |||||
Income tax penalties and interest accrued that would impact effective tax rate, upper bound of change | (4.4) | (4.4) | |||||
Stratatech | |||||||
Income Taxes [Line Items] | |||||||
Increase (Decrease), Deferred Tax Liability, Net | 22.1 | $ 24.3 | 22.1 | ||||
InfaCare Acquisition | |||||||
Income Taxes [Line Items] | |||||||
Deferred Tax Liabilities, Net | $ 20.3 | ||||||
Deferred Tax Assets, Net | 8.7 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | $ 11.3 | ||||||
Nuclear Imaging | |||||||
Income Taxes [Line Items] | |||||||
Other Tax Expense (Benefit) | 0.9 | ||||||
Income tax (benefit) expense | (0.1) | $ 24.8 | 5.2 | $ 43.8 | |||
Intrathecal Therapy | |||||||
Income Taxes [Line Items] | |||||||
Increase (Decrease) in Deferred Tax Liability, Future Consideration | 56.5 | ||||||
Increase (Decrease) Deferred Tax Asset, Net Operating Losses | (2.3) | ||||||
Deferred tax benefit, intangible assets | (17.9) | ||||||
Increase (Decrease) Deferred Tax Asset, Product Development | 2.6 | ||||||
Increase (Decrease) Deferred Tax Asset, Net | (0.6) | ||||||
Increase (Decrease), Deferred Tax Liability, Net | $ 38.9 | $ 38.9 | |||||
Retained Earnings | ASU 2016-16 | |||||||
Income Taxes [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 75 | ||||||
Retained Earnings | ASU 2016-09 | |||||||
Income Taxes [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 2.9 | ||||||
Other Assets | ASU 2016-16 | |||||||
Income Taxes [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 67.2 | ||||||
Prepaid Expenses and Other Current Assets | ASU 2016-16 | |||||||
Income Taxes [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 7.8 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Earnings Per Share | ||||
Weighted-average shares outstanding - basic (in shares) | 96.7 | 107.6 | 99.5 | 109.1 |
Dilutive impact of restricted share units and share options (in shares) | 0.3 | 1 | 0.3 | 0.9 |
Weighted-average shares outstanding - diluted (in shares) | 97 | 108.6 | 99.8 | 110 |
Earnings per Share Anti-Dilutiv
Earnings per Share Anti-Dilutive Shares (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4.3 | 1.6 | 3.6 | 1.7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Dec. 30, 2016 |
Raw materials and supplies | $ 76.3 | $ 72.6 |
Work in process | 160.4 | 178.4 |
Finished goods | 104.6 | 99.7 |
Inventories | $ 341.3 | $ 350.7 |
Property, Plant and Equipment61
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Dec. 30, 2016 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 1,820.4 | $ 1,679.4 |
Less: accumulated depreciation | (858) | (797.9) |
Property, plant and equipment, net | $ 962.4 | $ 881.5 |
Property, Plant and Equipment D
Property, Plant and Equipment Depreciation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment | ||||
Depreciation | $ 27.3 | $ 27.3 | $ 83.5 | $ 87.6 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets (Schedule Of Goodwill) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2017 | Dec. 30, 2016 | |
Goodwill | ||
Goodwill | $ 3,459.5 | $ 3,498.1 |
Gross Carrying Amount | 3,666.5 | 3,705.1 |
Accumulated Impairment | (207) | (207) |
Specialty Brands | ||
Goodwill | ||
Goodwill, Period Increase (Decrease) | (38.6) | |
Gross Carrying Amount | 3,459.5 | 3,498.1 |
Accumulated Impairment | 0 | 0 |
Specialty Generics | ||
Goodwill | ||
Gross Carrying Amount | 207 | 207 |
Accumulated Impairment | $ (207) | $ (207) |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Dec. 30, 2016 |
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | $ 10,253.5 | $ 10,322.2 |
Accumulated amortization | 2,255.2 | 1,755.8 |
Non-Amortizable intangible assets, gross | 547.6 | 434.1 |
Trademarks | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Non-Amortizable intangible assets, gross | 35 | 35 |
In-process Research and Development | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Non-Amortizable intangible assets, gross | 512.6 | 399.1 |
Completed Technology | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 9,955.6 | 10,028.7 |
Accumulated amortization | 2,101.3 | 1,617.1 |
Licenses | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 177.1 | 177.1 |
Accumulated amortization | 120.1 | 112.7 |
Customer Relationships | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 30 | 27.6 |
Accumulated amortization | 11.7 | 8.4 |
Trademarks | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 82.2 | 82.1 |
Accumulated amortization | 13.5 | 10.9 |
Other | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 8.6 | 6.7 |
Accumulated amortization | $ 8.6 | $ 6.7 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | Sep. 25, 2017 | Dec. 30, 2016 | |
Goodwill | ||||||
Non-restructuring impairment charges | $ 0 | $ 0 | $ 0 | $ 16.9 | ||
Goodwill | 3,459.5 | 3,459.5 | $ 3,498.1 | |||
Specialty Brands | ||||||
Goodwill | ||||||
Goodwill, Period Increase (Decrease) | 38.6 | |||||
Intrathecal Therapy | ||||||
Goodwill | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (0.4) | 56.6 | ||||
Intrathecal Therapy | Goodwill | ||||||
Goodwill | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (49.8) | |||||
InfaCare Acquisition | Goodwill | ||||||
Goodwill | ||||||
Goodwill | $ 13.3 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets (Schedule of Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 173.2 | $ 175.9 | $ 523 | $ 526.7 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets (Schedule of Future Amortization Expense, Intangible Assets) (Details) $ in Millions | Sep. 29, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2017 | $ 172.6 |
Fiscal 2,018 | 686.7 |
Fiscal 2,019 | 686.3 |
Fiscal 2,020 | 686 |
Fiscal 2,021 | $ 685.8 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Jul. 28, 2017 | Sep. 29, 2017 | Dec. 30, 2016 |
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | $ 0.6 | $ 0.6 | |
Long-term Debt, Current Maturities | 318.8 | 271.8 | |
Long-term debt | |||
Long-term Debt | 5,592.5 | 5,965.8 | |
Total Debt | 5,911.3 | 6,237.6 | |
Total Debt Issuance Costs | 75.7 | 85.6 | |
Long-term Debt | |||
Long-term debt | |||
Debt Issuance Costs | 75.1 | 85 | |
Receivable Securitization | |||
Current maturities of long-term debt | |||
Variable Rate Receivable Securitization | 0 | 250 | |
Debt Issuance Costs, Current, Net | 0 | 0.3 | |
Term Loan | Secured Debt | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 0 | 0.3 | |
Long-term Debt, Current Maturities | 0 | 20 | |
Long-term debt | |||
Long-term Debt | 0 | 1,928.5 | |
Debt Issuance Costs | 0 | 33.4 | |
Loans Payable | 0 | 1,948.5 | |
4.00% Term Loan | |||
Long-term debt | |||
Loans Payable | 0 | 6.5 | |
4.00% Term Loan | Secured Debt | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 0 | 0 | |
Long-term Debt, Current Maturities | 0 | 1 | |
Long-term debt | |||
Long-term Debt | 0 | 5.5 | |
Debt Issuance Costs | 0 | 0 | |
New Term Loan | Secured Debt | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 0.2 | 0 | |
Long-term Debt, Current Maturities | 18.6 | 0 | |
Long-term debt | |||
Long-term Debt | 1,837.1 | 0 | |
Debt Issuance Costs | 27.7 | 0 | |
Loans Payable | 1,855.7 | 0 | |
Capital Lease Obligations and Vendor Financing | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 0 | 0 | |
Capital Lease Obligations, Current | 0.2 | 0.8 | |
3.50% Senior Notes | Unsecured Debt | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 0.4 | 0 | |
Long-term Debt, Current Maturities | 300 | 0 | |
Long-term debt | |||
Long-term Debt | 0 | 300 | |
Debt Issuance Costs | 0 | 0.9 | |
4.88% Senior Notes | Unsecured Debt | |||
Long-term debt | |||
Long-term Debt | 700 | 700 | |
Debt Issuance Costs | 6.3 | 8.2 | |
Receivable securitization, Maturity Date of July 2020 [Member] | |||
Long-term debt | |||
Long-term Debt | 200 | 0 | |
Debt Issuance Costs | 0.7 | 0 | |
Receivable securitization, Maturity Date of July 2020 [Member] | Secured Debt | |||
Schedule of Long-term Debt including Capital Lease Obligation [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 | ||
Debt Instrument, Basis Spread on Variable Rate | 0.90% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | ||
Line Of Credit Facility, Future Contingent Maximum Borrowing Capacity | $ 300 | ||
9.50% Debenture | Debentures | |||
Long-term debt | |||
Long-term Debt | 10.4 | 10.4 | |
Debt Issuance Costs | 0 | 0 | |
5.75% Senior Notes | Unsecured Debt | |||
Long-term debt | |||
Long-term Debt | 884 | 884 | |
Debt Issuance Costs | 10 | 11.6 | |
8.00% Debenture | Debentures | |||
Long-term debt | |||
Long-term Debt | 4.4 | 4.4 | |
Debt Issuance Costs | 0 | 0 | |
4.75% Senior Notes | Unsecured Debt | |||
Long-term debt | |||
Long-term Debt | 526.5 | 600 | |
Debt Issuance Costs | 4.7 | 6.1 | |
5.625% Senior Notes | Unsecured Debt | |||
Long-term debt | |||
Long-term Debt | 738 | 738 | |
Debt Issuance Costs | 10.1 | 11.4 | |
5.50% Senior Notes | Unsecured Debt | |||
Long-term debt | |||
Long-term Debt | 692.1 | 695 | |
Debt Issuance Costs | 9.3 | 10.2 | |
2017 Revolving Credit Facility [Member] [Domain] | Unsecured Debt | |||
Schedule of Long-term Debt including Capital Lease Obligation [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 900 | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
2017 Revolving Credit Facility [Member] [Domain] | Secured Debt | |||
Long-term debt | |||
Long-term Debt | $ 0 | ||
Debt Issuance Costs | $ 6.3 | ||
2015 Revolving Credit Facility | Unsecured Debt | |||
Schedule of Long-term Debt including Capital Lease Obligation [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 500 | ||
2015 Revolving Credit Facility | Secured Debt | |||
Long-term debt | |||
Long-term Debt | 100 | ||
Debt Issuance Costs | $ 3.2 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Jul. 28, 2017 | Sep. 29, 2017 | Sep. 29, 2017 | Feb. 28, 2017 | Dec. 30, 2016 |
Debt Instrument | |||||
Long-term Debt | $ 5,592.5 | $ 5,592.5 | $ 5,965.8 | ||
Total Debt | 5,911.3 | 5,911.3 | 6,237.6 | ||
Receivable securitization, Maturity Date of July 2020 [Member] | |||||
Debt Instrument | |||||
Long-term Debt | $ 200 | $ 200 | 0 | ||
Secured Debt | Receivable securitization, Maturity Date of July 2020 [Member] | |||||
Debt Instrument | |||||
Line Of Credit Facility, Future Contingent Maximum Borrowing Capacity | $ 300 | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.90% | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 | ||||
Secured Debt | Receivable Securitization | |||||
Debt Instrument | |||||
Interest rate | 2.13% | 2.13% | |||
Long-term Line of Credit | $ 200 | $ 200 | |||
Secured Debt | Term Loan and New Term Loan | |||||
Debt Instrument | |||||
Long-term Debt | $ 1,865 | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||
Long-term Loans Payable, Periodic Amortization Payment, Percentage of Original Principal Amount | 0.25% | ||||
Repayments of Debt | 83.5 | ||||
Write off of Deferred Debt Issuance Cost | $ 10 | ||||
Long-term Debt, Weighted Average Interest Rate | 4.08% | 4.08% | |||
Total Debt | $ 1,855.7 | $ 1,855.7 | |||
Secured Debt | 2015 Revolving Credit Facility | |||||
Debt Instrument | |||||
Long-term Debt | 100 | ||||
Secured Debt | 2017 Revolving Credit Facility [Member] [Domain] | |||||
Debt Instrument | |||||
Long-term Debt | $ 0 | $ 0 | |||
Revolving Credit Facility | |||||
Debt Instrument | |||||
Interest rate | 3.58% | 3.58% | |||
Long-term Line of Credit | $ 0 | $ 0 | |||
Unsecured Debt | 2015 Revolving Credit Facility | |||||
Debt Instrument | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 500 | ||||
Unsecured Debt | 2017 Revolving Credit Facility [Member] [Domain] | |||||
Debt Instrument | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 900 | $ 900 | |||
Debtor-in-Possession Financing, Fee on Unused Borrowings | 0.275% | 0.275% | |||
Letter of Credit [Member] | 2015 Revolving Credit Facility | |||||
Debt Instrument | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150 | ||||
Letter of Credit [Member] | 2017 Revolving Credit Facility [Member] [Domain] | |||||
Debt Instrument | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50 | $ 50 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net periodic benefit credit | $ 0 | $ 0.1 | $ 0 | $ 0 |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net periodic benefit credit | 0.2 | 3.8 | 75 | 15.4 |
Defined Benefit Plan, Contributions by Employer | 61.3 | |||
Plan settlements | $ 0 | $ 1.1 | $ 69.7 | $ 8.1 |
Retirement Plans (Schedule of N
Retirement Plans (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0.6 | $ 1.5 | $ 1.4 |
Interest cost | 0.1 | 2.7 | 2.2 | 9.7 |
Expected return on plan assets | 0 | (4.1) | (1.3) | (12.5) |
Amortization of net actuarial loss | 0.1 | 3.5 | 2.7 | 8.7 |
Amortization of prior service cost | 0 | 0 | 0.2 | 0 |
Plan settlements | 0 | 1.1 | 69.7 | 8.1 |
Net periodic benefit cost | 0.2 | 3.8 | 75 | 15.4 |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 0 | $ 0.1 | $ 0 | $ 0 |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | $ (72.5) | $ (65.3) |
Other Comprehensive Income (Loss), before Reclassifications | 23.1 | (29.3) |
Reclassification from Accumulated Other Comprehensive Income | 36.3 | 9 |
Other Comprehensive Income (Loss) | 59.4 | (20.3) |
Ending Balance | (13.1) | (85.6) |
Accumulated Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | (19.5) | (7.9) |
Other Comprehensive Income (Loss), before Reclassifications | 17.7 | 10.2 |
Reclassification from Accumulated Other Comprehensive Income | (4.7) | (0.7) |
Other Comprehensive Income (Loss) | 13 | 9.5 |
Ending Balance | (6.5) | 1.6 |
Accumulated Unrecognized Gain (Loss) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | (5.7) | (6.3) |
Other Comprehensive Income (Loss), before Reclassifications | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income | 0.9 | 0.4 |
Other Comprehensive Income (Loss) | 0.9 | 0.4 |
Ending Balance | (4.8) | (5.9) |
Accumulated Unrecognized Gain (Loss) on Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | (47.3) | (51.1) |
Other Comprehensive Income (Loss), before Reclassifications | 5.3 | (39.5) |
Reclassification from Accumulated Other Comprehensive Income | 40.1 | 9.3 |
Other Comprehensive Income (Loss) | 45.4 | (30.2) |
Ending Balance | (1.9) | (81.3) |
Accumulated Unrecognized Gain on Equity Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Other Comprehensive Income (Loss), before Reclassifications | 0.1 | 0 |
Reclassification from Accumulated Other Comprehensive Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0.1 | 0 |
Ending Balance | $ 0.1 | $ 0 |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Income (Schedule of Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period | $ 36.3 | $ 9 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of unrealized loss on derivatives, before tax | 1.1 | 0.6 |
Amortization of unrealized loss on derivatives, tax | (0.2) | (0.2) |
Amortization of unrealized loss on derivatives, net of tax | 0.9 | 0.4 |
Amortization of pension and post-retirement plans, net actuarial loss | 2.8 | 8.8 |
Amortization of pension and post-retirement plans, prior service credit | (1.6) | (2.1) |
Divestiture of discontinued operations | (3.1) | 0 |
Plan settlements | 69.7 | 8.1 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 67.8 | 14.8 |
Amortization of pension and post-retirement plans, tax | (27.7) | (5.5) |
Amortization of pension and post-retirement plans, net of tax | 40.1 | 9.3 |
Currency translation | $ (4.7) | $ (0.7) |
Equity (Details)
Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | [1] | Mar. 01, 2017 | Mar. 16, 2016 | Nov. 19, 2015 | |
November 2015 Share Repurchase Program | |||||||
Equity, Class of Treasury Stock | |||||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||||
Stock Repurchased During Period, Number of Shares | 1,063,337 | 0 | 6,510,824 | ||||
Stock Repurchased During Period, Amount | $ 74.4 | $ 0 | $ 425.6 | ||||
Stock Repurchase Program, Remaining Amount Available | $ 0 | ||||||
March 2016 Repurchase Program | |||||||
Equity, Class of Treasury Stock | |||||||
Stock Repurchase Program, Authorized Amount | $ 350 | ||||||
Stock Repurchased During Period, Number of Shares | 1,501,676 | 5,366,741 | 0 | ||||
Stock Repurchased During Period, Amount | $ 84 | $ 266 | $ 0 | ||||
Stock Repurchase Program, Remaining Amount Available | $ 0 | ||||||
March 2017 Repurchase Program | |||||||
Equity, Class of Treasury Stock | |||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||||||
Stock Repurchased During Period, Number of Shares | 0 | 4,111,722 | 0 | ||||
Stock Repurchased During Period, Amount | $ 0 | $ 167 | $ 0 | ||||
Stock Repurchase Program, Remaining Amount Available | $ 833 | ||||||
[1] | (1)Represents the Company's historical fiscal year ending on the last Friday in September. |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 29, 2017 | Dec. 30, 2016 | |
Others | ||
Guarantor Obligations [Line Items] | ||
Maximum future payments | $ 29.1 | |
Mallinckrodt Baker | Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, obligation term | 17 years | |
Maximum future payments | $ 70.2 | |
Escrow Deposit | 30 | |
Mallinckrodt Baker | Indemnification Agreement | Other Liabilities | ||
Guarantor Obligations [Line Items] | ||
Guarantors obligation | 14.9 | $ 15.1 |
Mallinckrodt Baker | Indemnification Agreement | Other Assets | ||
Guarantor Obligations [Line Items] | ||
Escrow Deposit | 18.2 | 19 |
Mallinckrodt Baker | Environmental, Health and Safety Matters | Indemnification Agreement | Other Liabilities | ||
Guarantor Obligations [Line Items] | ||
Guarantors obligation | $ 12.2 | $ 12.4 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Apr. 01, 2014USD ($)Defendent | Sep. 26, 2012action | Aug. 31, 2012principal | Sep. 29, 2017USD ($)Case | Sep. 30, 2016USD ($) | Sep. 29, 2017USD ($)DefendentCaseorder | Sep. 30, 2016USD ($) | Jun. 26, 2015USD ($) | Sep. 25, 2015USD ($) | Dec. 30, 2016USD ($) | Mar. 25, 2016USD ($) | Mar. 27, 2015USD ($) | Mar. 28, 2014USD ($) | Aug. 31, 2013Case |
Loss Contingencies [Line Items] | ||||||||||||||
Payments for Legal Settlements | $ 35 | |||||||||||||
Environmental liabilities | 75.5 | $ 75.5 | ||||||||||||
Deferred tax liabilities related to installment sales | 1,606.7 | 1,606.7 | ||||||||||||
Section 453(a) interest | 17.6 | $ 17.4 | 53.9 | $ 55.1 | ||||||||||
Interest Payable, Installment Sales | $ 42.9 | $ 42.9 | $ 30.3 | |||||||||||
Lower Passaic River, New Jersey | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of defendants | Defendent | 70 | 98 | ||||||||||||
Environmental liabilities | $ 13.3 | $ 23.1 | ||||||||||||
Remedial cost, estimate | $ 1,700 | $ 1,380 | ||||||||||||
Asbestos Matters | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Pending claims | Case | 11,500 | 11,500 | ||||||||||||
Estimation of liability, historical term | 5 years | |||||||||||||
Estimation of liability, expected future term of claims | 7 years | |||||||||||||
Accrued and other current liabilities | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Environmental liabilities, current | $ 2.4 | $ 2.4 | ||||||||||||
Questcor Acquisition of Synacthen [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Litigation Settlement, Expense | $ 102 | |||||||||||||
Retrophin Litigation [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Litigation Settlement, Expense | $ 15.5 | |||||||||||||
Glenridge Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of defendants | principal | 3 | |||||||||||||
Pending claims | Case | 1 | |||||||||||||
Questcor Securities Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Subsequent actions consolidated into lawsuit | action | 4 | |||||||||||||
Litigation Settlement, Amount | $ 38 | |||||||||||||
Loss Contingency Accrual | $ 38 | |||||||||||||
Mallinckrodt Veterinary, Inc., Millsboro, Delaware [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of Administrative Orders of Consent Entered Into | order | 2 | |||||||||||||
Industrial Revenue Bonds | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Plant assets exchanged for IRBs | $ 16 | |||||||||||||
Minimum | Environmental Remediation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Remedial cost, estimate | 37.8 | 37.8 | ||||||||||||
Minimum | Lower Passaic River, New Jersey | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Remedial cost, estimate | 365 | 483.4 | 483.4 | |||||||||||
Maximum | Environmental Remediation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Remedial cost, estimate | 114.2 | 114.2 | ||||||||||||
Maximum | Lower Passaic River, New Jersey | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Remedial cost, estimate | $ 3,200 | $ 2,700 | $ 2,700 |
Financial Instruments and Fai77
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2017 | Sep. 29, 2017 | Sep. 25, 2017 | Dec. 30, 2016 | Feb. 01, 2016 | Apr. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair Value, Annual Payment | $ 25 | |||||
Notes receivable | $ 154 | 154 | $ 0 | |||
Hemostasis Products | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of contingent consideration | $ 52 | |||||
Fair value of contingent liability | $ 10.6 | |||||
InfaCare Acquisition | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of contingent consideration | $ 35 | |||||
Senior Notes | 3.50% Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||||
Senior Notes | 4.75% Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||||
Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Investments, Fair Value Disclosure | $ 34.1 | $ 34.1 | 33.6 | |||
Level 3 | Secured Debt | 4.00% Term Loan | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | ||||
Level 3 | Other Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Cash surrender value of life insurance | $ 66.8 | $ 66.8 | 67.6 | |||
Level 3 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Investments, Fair Value Disclosure | 0 | 0 | 0 | |||
Level 3 | Recurring | Questcor Pharmaceuticals, Inc. | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of contingent liability | 104.5 | 104.5 | 124.7 | |||
Level 3 | Recurring | Stratatech | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of contingent liability | 55.3 | 55.3 | 55.7 | |||
Level 3 | Raplixa | Recurring | Hemostasis Products | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of contingent consideration | 62.2 | 62.2 | 58.9 | |||
Level 3 | PreveLeak | Recurring | Hemostasis Products | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of contingent liability | $ 11.6 | $ 11.6 | 11.2 | |||
Level 3 | Stannsoporfin [Member] | Recurring | InfaCare Acquisition | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of contingent consideration | $ 35 | |||||
Level 2 | Debentures | 8.00% Debenture | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||
Level 2 | Debentures | 9.50% Debenture | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | 9.50% | ||||
Level 2 | Other Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Investments, Fair Value Disclosure | $ 1.6 | $ 1.6 | 11.1 | |||
Level 2 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Investments, Fair Value Disclosure | $ 10.9 | $ 10.9 | 10.8 | |||
Level 1 | Senior Notes | 3.50% Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | ||||
Level 1 | Senior Notes | 4.75% Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | ||||
Level 1 | Senior Notes | 5.75% Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | ||||
Level 1 | Senior Notes | 4.88% Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | ||||
Level 1 | Senior Notes | 5.50% Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | ||||
Level 1 | Unsecured Debt | 5.625% Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | ||||
Level 1 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Investments, Fair Value Disclosure | $ 23.2 | $ 23.2 | 22.8 | |||
Maximum | Synacthen | Questcor Pharmaceuticals, Inc. | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Milestone Payment | 140 | |||||
Indemnification Agreement | Mallinckrodt Baker | Level 1 | Other Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Restricted Cash and Cash Equivalents | $ 18.2 | $ 18.2 | $ 19.1 |
Financial Instruments and Fai78
Financial Instruments and Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Sep. 29, 2017 | Dec. 30, 2016 |
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | $ 34.1 | $ 33.6 |
Equity Securities, Fair Value Disclosure | 21.6 | |
Foreign exchange forward and option contracts | 0.6 | 0.7 |
Total assets at fair value | 56.3 | 34.3 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 38.9 | 32.5 |
Contingent consideration and acquired contingent liabilities | 268.6 | 250.5 |
Foreign exchange forward and option contracts | 1.2 | 3.4 |
Total liabilities at fair value | 308.7 | 286.4 |
Level 1 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 23.2 | 22.8 |
Equity Securities, Fair Value Disclosure | 21.6 | |
Foreign exchange forward and option contracts | 0.6 | 0.7 |
Total assets at fair value | 45.4 | 23.5 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 0 | 0 |
Contingent consideration and acquired contingent liabilities | 0 | 0 |
Foreign exchange forward and option contracts | 1.2 | 3.4 |
Total liabilities at fair value | 1.2 | 3.4 |
Level 2 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 10.9 | 10.8 |
Equity Securities, Fair Value Disclosure | 0 | |
Foreign exchange forward and option contracts | 0 | 0 |
Total assets at fair value | 10.9 | 10.8 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 38.9 | 32.5 |
Contingent consideration and acquired contingent liabilities | 0 | 0 |
Foreign exchange forward and option contracts | 0 | 0 |
Total liabilities at fair value | 38.9 | 32.5 |
Level 3 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 0 | 0 |
Equity Securities, Fair Value Disclosure | 0 | |
Foreign exchange forward and option contracts | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 0 | 0 |
Contingent consideration and acquired contingent liabilities | 268.6 | 250.5 |
Foreign exchange forward and option contracts | 0 | 0 |
Total liabilities at fair value | $ 268.6 | $ 250.5 |
Financial Instruments and Fai79
Financial Instruments and Fair Value Measurements (Schedule of Reconciliation of Changes in Fair Value of Contingent Liabilities) (Details) $ in Millions | 9 Months Ended |
Sep. 29, 2017USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Acquisition date fair value of contingent consideration | $ 35 |
Payments | (25) |
Level 3 | Recurring | Contingent Liabilities | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 250.5 |
Accretion expense | 4 |
Fair value adjustment | 4.1 |
Ending balance | $ 268.6 |
Financial Instruments and Fai80
Financial Instruments and Fair Value Measurements (Schedule of Carrying Amount and Fair Value of Long-term Debt) (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Dec. 30, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | $ 318.8 | $ 271.8 |
Long-term Debt | 5,592.5 | 5,965.8 |
Receivable Securitization | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Variable Rate Receivable Securitization | 0 | 250 |
Variable Rate Receivable Securitization, Fair Value | 0 | 250 |
Receivable securitization, Maturity Date of July 2020 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 200 | 0 |
Long-term Debt | 200 | 0 |
4.00% Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Loans Payable | 0 | 6.5 |
Loans Payable, Fair Value Disclosure | 0 | 6.5 |
Secured Debt | Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 0 | 20 |
Loans Payable | 0 | 1,948.5 |
Long-term Debt | 0 | 1,928.5 |
Loans Payable, Fair Value Disclosure | 0 | 1,953.2 |
Secured Debt | 4.00% Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 0 | 1 |
Long-term Debt | 0 | 5.5 |
Secured Debt | New Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 18.6 | 0 |
Loans Payable | 1,855.7 | 0 |
Long-term Debt | 1,837.1 | 0 |
Loans Payable, Fair Value Disclosure | 1,853.8 | 0 |
Secured Debt | 2017 Revolving Credit Facility [Member] [Domain] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 0 | |
Long-term Debt | 0 | |
Secured Debt | 2015 Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 100 | |
Long-term Debt | 100 | |
Senior Notes | 3.50% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 300.2 | 298.7 |
Senior Notes | 5.75% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 853.3 | 850.3 |
Senior Notes | 4.75% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 448.5 | 520.9 |
Unsecured Debt | 3.50% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 300 | 0 |
Long-term Debt | 0 | 300 |
Unsecured Debt | 4.88% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 696.7 | 699.5 |
Long-term Debt | 700 | 700 |
Unsecured Debt | 5.75% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt | 884 | 884 |
Unsecured Debt | 4.75% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt | 526.5 | 600 |
Unsecured Debt | 5.625% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 689.5 | 682.4 |
Long-term Debt | 738 | 738 |
Unsecured Debt | 5.50% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 625.4 | 615.7 |
Long-term Debt | 692.1 | 695 |
Debentures | 9.50% Debenture | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 11.5 | 12 |
Long-term Debt | 10.4 | 10.4 |
Debentures | 8.00% Debenture | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long term debt, fair value | 4.7 | 4.9 |
Long-term Debt | $ 4.4 | $ 4.4 |
Financial Instruments and Fai81
Financial Instruments and Fair Value Measurements (Schedules of Concentration of Risk) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Distributor Concentration Risk | Net Sales Attributable to Distributors | McKesson Corporation | |||||
Concentration Risk | |||||
Concentration Risk, Percentage | 9.00% | 11.00% | 9.00% | 11.00% | |
Distributor Concentration Risk | Net Sales Attributable to Distributors | CuraScript, Inc | |||||
Concentration Risk | |||||
Concentration Risk, Percentage | 41.00% | 40.00% | 40.00% | 37.00% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | McKesson Corporation | |||||
Concentration Risk | |||||
Concentration Risk, Percentage | 20.00% | 28.00% | |||
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Amerisource Bergen Corporation | |||||
Concentration Risk | |||||
Concentration Risk, Percentage | 14.00% | 15.00% | |||
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | CuraScript, Inc | |||||
Concentration Risk | |||||
Concentration Risk, Percentage | 14.00% | 15.00% | |||
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Cardinal Health, Inc. | |||||
Concentration Risk | |||||
Concentration Risk, Percentage | 11.00% | 10.00% | |||
Product Concentration Risk | Net Sales Attributable to Products | Acthar | |||||
Concentration Risk | |||||
Concentration Risk, Percentage | 39.00% | 37.00% | 37.00% | 34.00% | |
Product Concentration Risk | Net Sales Attributable to Products | Inomax | |||||
Concentration Risk | |||||
Concentration Risk, Percentage | 16.00% | 14.00% | 16.00% | 14.00% |
Segment Data (Schedule of Segme
Segment Data (Schedule of Segment Reporting Information by Business Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | ||
Net sales | $ 793.9 | $ 887.2 | $ 2,429.3 | $ 2,569.6 | |
Operating income | 120.7 | 147.7 | 323 | 455.2 | |
Intangible asset amortization | (173.2) | (175.9) | (523) | (526.7) | |
Restructuring and related charges, net | (15.5) | (8.7) | (35.7) | (34) | |
Non-restructuring impairment charges | 0 | 0 | 0 | (16.9) | |
Specialty Brands | |||||
Restructuring and related charges, net | (14.6) | (4.9) | (24.1) | (21.7) | |
Specialty Generics | |||||
Restructuring and related charges, net | 0.6 | (0.7) | (7.3) | (2.3) | |
Operating Segments | |||||
Net sales | 780.5 | 872.9 | 2,386.8 | 2,525 | |
Operating income | 357 | 398 | 1,045.6 | 1,158 | |
Operating Segments | Specialty Brands | |||||
Net sales | 591.4 | 633.1 | 1,743.1 | 1,757.4 | |
Operating income | 316.6 | 334.1 | 865.7 | 897.1 | |
Operating Segments | Specialty Generics | |||||
Net sales | 189.1 | 239.8 | 643.7 | 767.6 | |
Operating income | 40.4 | 63.9 | 179.9 | 260.9 | |
Corporate, Non-Segment | |||||
Net sales | [1] | 13.4 | 14.3 | 42.5 | 44.6 |
Corporate and unallocated expenses | [2] | (47.6) | (65.7) | (163.9) | (125.2) |
Intangible asset amortization | (173.2) | (175.9) | (523) | (526.7) | |
Restructuring and related charges, net | [3] | (15.5) | (8.7) | (35.7) | (34) |
Non-restructuring impairment charges | $ 0 | $ 0 | $ 0 | $ 16.9 | |
[1] | Represents net sales under an ongoing supply agreement with the acquirer of the CMDS business. | ||||
[2] | Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. | ||||
[3] | Includes restructuring-related accelerated depreciation. |
Segment Data (Schedule of Net S
Segment Data (Schedule of Net Sales from External Customers by Products) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | ||
Segment Reporting Information | |||||
Net sales | $ 793.9 | $ 887.2 | $ 2,429.3 | $ 2,569.6 | |
Operating Segments | |||||
Segment Reporting Information | |||||
Net sales | 780.5 | 872.9 | 2,386.8 | 2,525 | |
Operating Segments | Specialty Brands | |||||
Segment Reporting Information | |||||
Net sales | 591.4 | 633.1 | 1,743.1 | 1,757.4 | |
Operating Segments | Specialty Generics | |||||
Segment Reporting Information | |||||
Net sales | 189.1 | 239.8 | 643.7 | 767.6 | |
Corporate, Non-Segment | |||||
Segment Reporting Information | |||||
Net sales | [1] | 13.4 | 14.3 | 42.5 | 44.6 |
Acthar | Operating Segments | Specialty Brands | |||||
Segment Reporting Information | |||||
Net sales | 308.7 | 327 | 899.9 | 873.7 | |
Inomax | Operating Segments | Specialty Brands | |||||
Segment Reporting Information | |||||
Net sales | 125.7 | 126.9 | 379.6 | 363.5 | |
Ofirmev | Operating Segments | Specialty Brands | |||||
Segment Reporting Information | |||||
Net sales | 75.4 | 75.6 | 224.5 | 217.4 | |
Therakos immunotherapy | Operating Segments | Specialty Brands | |||||
Segment Reporting Information | |||||
Net sales | 55.3 | 54.5 | 157.7 | 157.2 | |
Hemostasis Products | Operating Segments | Specialty Brands | |||||
Segment Reporting Information | |||||
Net sales | 16.2 | 17.2 | 42.8 | 42.5 | |
Other | Operating Segments | Specialty Brands | |||||
Segment Reporting Information | |||||
Net sales | 10.1 | 31.9 | 38.6 | 103.1 | |
Other | Operating Segments | Specialty Generics | |||||
Segment Reporting Information | |||||
Net sales | 47.5 | 45 | 142.6 | 129.8 | |
Hydrocodone (API) and hydrocodone-containing tablets | Operating Segments | Specialty Generics | |||||
Segment Reporting Information | |||||
Net sales | 10 | 30.8 | 63.3 | 109.8 | |
Oxycodone (API) and oxycodone-containing tablets | Operating Segments | Specialty Generics | |||||
Segment Reporting Information | |||||
Net sales | 13.4 | 28.8 | 60.6 | 97.3 | |
Methylphenidate ER | Operating Segments | Specialty Generics | |||||
Segment Reporting Information | |||||
Net sales | 14.3 | 23.4 | 58.2 | 72.3 | |
Other Controlled Substances | Operating Segments | Specialty Generics | |||||
Segment Reporting Information | |||||
Net sales | $ 103.9 | $ 111.8 | $ 319 | $ 358.4 | |
[1] | Represents net sales under an ongoing supply agreement with the acquirer of the CMDS business. |
Condensed Consolidating Finan84
Condensed Consolidating Financial Statements (Narrative) (Details) | Sep. 29, 2017 | Apr. 30, 2013 |
Condensed Consolidating Financial Statements | ||
Percentage of ownership in MIFSA | 100.00% | |
Senior Notes | 3.50% Senior Notes | ||
Condensed Consolidating Financial Statements | ||
Stated interest rate | 3.50% | |
Senior Notes | 4.75% Senior Notes | ||
Condensed Consolidating Financial Statements | ||
Stated interest rate | 4.75% |
Condensed Consolidating Finan85
Condensed Consolidating Financial Statements (Schedule of Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Dec. 30, 2016 | Sep. 30, 2016 |
Current Assets: | |||
Cash and cash equivalents | $ 371.8 | $ 342 | $ 280.5 |
Accounts receivable, net | 464.3 | 431 | |
Inventories | 341.3 | 350.7 | |
Prepaid expenses and other current assets | 121.1 | 131.9 | |
Notes receivable | 154 | 0 | |
Current assets held for sale | 0 | 310.9 | |
Intercompany receivables | 0 | 0 | |
Total current assets | 1,452.5 | 1,566.5 | |
Property, plant and equipment, net | 962.4 | 881.5 | |
Goodwill | 3,459.5 | 3,498.1 | |
Intangible assets, net | 8,545.9 | 9,000.5 | |
Investment in subsidiaries | 0 | 0 | |
Intercompany loans receivable | 0 | 0 | |
Other assets | 191.6 | 259.7 | |
Total Assets | 14,611.9 | 15,206.3 | |
Current Liabilities: | |||
Current maturities of long-term debt | 318.2 | 271.2 | |
Accounts payable | 104.9 | 112.1 | |
Accrued payroll and payroll-related costs | 84.4 | 76.1 | |
Accrued interest | 78.1 | 68.7 | |
Income taxes payable | 28.1 | 101.7 | |
Accrued and other current liabilities | 440.4 | 557.1 | |
Current liabilities held for sale | 0 | 120.3 | |
Intercompany payables | 0 | 0 | |
Total current liabilities | 1,054.1 | 1,307.2 | |
Long-term debt | 5,517.4 | 5,880.8 | |
Pension and postretirement benefits | 67.5 | 136.4 | |
Environmental liabilities | 73.1 | 73 | |
Deferred income taxes | 2,294.1 | 2,398.1 | |
Other income tax liabilities | 78.5 | 70.4 | |
Intercompany loans payable | 0 | 0 | |
Other liabilities | 414.2 | 356.1 | |
Total Liabilities | 9,498.9 | 10,222 | |
Shareholders' Equity | 5,113 | 4,984.3 | |
Total Liabilities and Shareholders' Equity | 14,611.9 | 15,206.3 | |
Mallinckrodt plc | |||
Current Assets: | |||
Cash and cash equivalents | 0.7 | 0.5 | 0.3 |
Accounts receivable, net | 0 | 0 | |
Inventories | 0 | 0 | |
Prepaid expenses and other current assets | 0.3 | 1 | |
Notes receivable | 0 | 0 | |
Current assets held for sale | 0 | 0 | |
Intercompany receivables | 127.9 | 59.7 | |
Total current assets | 128.9 | 61.2 | |
Property, plant and equipment, net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Investment in subsidiaries | 4,923.4 | 5,534.1 | |
Intercompany loans receivable | 744.8 | 3.5 | |
Other assets | 0 | 0 | |
Total Assets | 5,797.1 | 5,598.8 | |
Current Liabilities: | |||
Current maturities of long-term debt | 0 | 0 | |
Accounts payable | 0 | 0.1 | |
Accrued payroll and payroll-related costs | 0 | 0 | |
Accrued interest | 0 | 0 | |
Income taxes payable | 0 | 0 | |
Accrued and other current liabilities | 1.3 | 1.9 | |
Current liabilities held for sale | 0 | 0 | |
Intercompany payables | 682.8 | 612.5 | |
Total current liabilities | 684.1 | 614.5 | |
Long-term debt | 0 | 0 | |
Pension and postretirement benefits | 0 | 0 | |
Environmental liabilities | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Other income tax liabilities | 0 | 0 | |
Intercompany loans payable | 0 | 0 | |
Other liabilities | 0 | 0 | |
Total Liabilities | 684.1 | 614.5 | |
Shareholders' Equity | 5,113 | 4,984.3 | |
Total Liabilities and Shareholders' Equity | 5,797.1 | 5,598.8 | |
Mallinckrodt International Finance S.A. | |||
Current Assets: | |||
Cash and cash equivalents | 37.6 | 44.5 | 25 |
Accounts receivable, net | 0 | 0 | |
Inventories | 0 | 0 | |
Prepaid expenses and other current assets | 0.2 | 0 | |
Notes receivable | 0 | 0 | |
Current assets held for sale | 0 | 0 | |
Intercompany receivables | 246.8 | 65.1 | |
Total current assets | 284.6 | 109.6 | |
Property, plant and equipment, net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Investment in subsidiaries | 21,531.2 | 20,624.1 | |
Intercompany loans receivable | 0 | 0 | |
Other assets | 0 | 0 | |
Total Assets | 21,815.8 | 20,733.7 | |
Current Liabilities: | |||
Current maturities of long-term debt | 318 | 19.7 | |
Accounts payable | 0 | 0.1 | |
Accrued payroll and payroll-related costs | 0 | 0 | |
Accrued interest | 77.5 | 53.9 | |
Income taxes payable | 0 | 0 | |
Accrued and other current liabilities | 0.4 | 7.5 | |
Current liabilities held for sale | 0 | 0 | |
Intercompany payables | 0 | 467.1 | |
Total current liabilities | 395.9 | 548.3 | |
Long-term debt | 5,303.3 | 5,860.6 | |
Pension and postretirement benefits | 0 | 0 | |
Environmental liabilities | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Other income tax liabilities | 0 | 0 | |
Intercompany loans payable | 5,454.8 | 3,329.4 | |
Other liabilities | 7.7 | 7 | |
Total Liabilities | 11,161.7 | 9,745.3 | |
Shareholders' Equity | 10,654.1 | 10,988.4 | |
Total Liabilities and Shareholders' Equity | 21,815.8 | 20,733.7 | |
Other Subsidiaries | |||
Current Assets: | |||
Cash and cash equivalents | 333.5 | 297 | 255.2 |
Accounts receivable, net | 464.3 | 431 | |
Inventories | 341.3 | 350.7 | |
Prepaid expenses and other current assets | 120.6 | 130.9 | |
Notes receivable | 154 | 0 | |
Current assets held for sale | 0 | 310.9 | |
Intercompany receivables | 694.1 | 1,081.3 | |
Total current assets | 2,107.8 | 2,601.8 | |
Property, plant and equipment, net | 962.4 | 881.5 | |
Goodwill | 3,459.5 | 3,498.1 | |
Intangible assets, net | 8,545.9 | 9,000.5 | |
Investment in subsidiaries | 10,654.1 | 10,988.5 | |
Intercompany loans receivable | 4,710 | 3,325.9 | |
Other assets | 191.6 | 259.7 | |
Total Assets | 30,631.3 | 30,556 | |
Current Liabilities: | |||
Current maturities of long-term debt | 0.2 | 251.5 | |
Accounts payable | 104.9 | 111.9 | |
Accrued payroll and payroll-related costs | 84.4 | 76.1 | |
Accrued interest | 0.6 | 14.8 | |
Income taxes payable | 28.1 | 101.7 | |
Accrued and other current liabilities | 438.7 | 547.7 | |
Current liabilities held for sale | 0 | 120.3 | |
Intercompany payables | 386 | 126.5 | |
Total current liabilities | 1,042.9 | 1,350.5 | |
Long-term debt | 214.1 | 20.2 | |
Pension and postretirement benefits | 67.5 | 136.4 | |
Environmental liabilities | 73.1 | 73 | |
Deferred income taxes | 2,294.1 | 2,398.1 | |
Other income tax liabilities | 78.5 | 70.4 | |
Intercompany loans payable | 0 | 0 | |
Other liabilities | 406.5 | 349.1 | |
Total Liabilities | 4,176.7 | 4,397.7 | |
Shareholders' Equity | 26,454.6 | 26,158.3 | |
Total Liabilities and Shareholders' Equity | 30,631.3 | 30,556 | |
Eliminations | |||
Current Assets: | |||
Cash and cash equivalents | 0 | 0 | $ 0 |
Accounts receivable, net | 0 | 0 | |
Inventories | 0 | 0 | |
Prepaid expenses and other current assets | 0 | 0 | |
Notes receivable | 0 | 0 | |
Current assets held for sale | 0 | 0 | |
Intercompany receivables | (1,068.8) | (1,206.1) | |
Total current assets | (1,068.8) | (1,206.1) | |
Property, plant and equipment, net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Investment in subsidiaries | (37,108.7) | (37,146.7) | |
Intercompany loans receivable | (5,454.8) | (3,329.4) | |
Other assets | 0 | 0 | |
Total Assets | (43,632.3) | (41,682.2) | |
Current Liabilities: | |||
Current maturities of long-term debt | 0 | 0 | |
Accounts payable | 0 | 0 | |
Accrued payroll and payroll-related costs | 0 | 0 | |
Accrued interest | 0 | 0 | |
Income taxes payable | 0 | 0 | |
Accrued and other current liabilities | 0 | 0 | |
Current liabilities held for sale | 0 | 0 | |
Intercompany payables | (1,068.8) | (1,206.1) | |
Total current liabilities | (1,068.8) | (1,206.1) | |
Long-term debt | 0 | 0 | |
Pension and postretirement benefits | 0 | 0 | |
Environmental liabilities | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Other income tax liabilities | 0 | 0 | |
Intercompany loans payable | (5,454.8) | (3,329.4) | |
Other liabilities | 0 | 0 | |
Total Liabilities | (6,523.6) | (4,535.5) | |
Shareholders' Equity | (37,108.7) | (37,146.7) | |
Total Liabilities and Shareholders' Equity | (43,632.3) | (41,682.2) | |
Ordinary A | |||
Condensed Consolidating Financial Statements | |||
Ordinary A shares | $ 0 | $ 0 |
Condensed Consolidating Finan86
Condensed Consolidating Financial Statements (Schedule of Condensed Consolidating Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | |
Condensed Consolidating Financial Statements | ||||
Net sales | $ 793.9 | $ 887.2 | $ 2,429.3 | $ 2,569.6 |
Cost of sales | 393.3 | 397 | 1,194 | 1,165.5 |
Gross profit | 400.6 | 490.2 | 1,235.3 | 1,404.1 |
Selling, general and administrative expenses | 205.7 | 267.8 | 745.9 | 702 |
Research and development expenses | 59.5 | 67.9 | 190.9 | 200.8 |
Restructuring charges, net | 14.3 | 6.8 | 32.1 | 29.2 |
Non-restructuring impairment charges | 0 | 0 | 0 | 16.9 |
Losses (gains) on divestiture and license | (0.4) | 0 | 56.6 | 0 |
Operating income | 120.7 | 147.7 | 323 | 455.2 |
Interest expense | (92.6) | (94) | (279) | (286.8) |
Interest income | 1.3 | 0.5 | 2.8 | 1.1 |
Other income (expense), net | 3.7 | (0.6) | 6.2 | (2.6) |
Intercompany Interest And Fees | 0 | 0 | 0 | 0 |
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes | 33.1 | 53.6 | 53 | 166.9 |
Income tax benefit | (31.2) | (56.4) | (110.8) | (218.3) |
Income (Loss) from Continuing Operations | 64.3 | 110 | 163.8 | 385.2 |
(Loss) income from discontinued operations, net of income taxes | (0.6) | 5 | 361.9 | 47.4 |
Net Income (Loss) | 63.7 | 115 | 525.7 | 432.6 |
Other Comprehensive Income (Loss), Net of Tax | (5.1) | (19.9) | 59.4 | (20.3) |
Comprehensive Income (Loss) | 58.6 | 95.1 | 585.1 | 412.3 |
Mallinckrodt plc | ||||
Condensed Consolidating Financial Statements | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0.9 | 0 | 1.8 | 0 |
Gross profit | (0.9) | 0 | (1.8) | 0 |
Selling, general and administrative expenses | 13.4 | 14.7 | 46.7 | 40.9 |
Research and development expenses | 1.8 | 0 | 3.6 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Non-restructuring impairment charges | 0 | 0 | 0 | 0 |
Losses (gains) on divestiture and license | 0 | 0 | 0 | 0 |
Operating income | (16.1) | (14.7) | (52.1) | (40.9) |
Interest expense | (3.3) | (36.1) | (10) | (162.3) |
Interest income | 2.2 | 0 | 5.3 | 0 |
Other income (expense), net | 1.4 | 7.4 | 19 | 22.3 |
Intercompany Interest And Fees | (4.3) | (5.6) | (13.3) | (12.9) |
Income (Loss) from Equity Method Investments | 82.4 | 157.1 | 572.1 | 609.8 |
Income from continuing operations before income taxes | 62.3 | 108.1 | 521 | 416 |
Income tax benefit | (1.4) | (6.9) | (4.7) | (16.6) |
Income (Loss) from Continuing Operations | 63.7 | 115 | 525.7 | 432.6 |
(Loss) income from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 |
Net Income (Loss) | 63.7 | 115 | 525.7 | 432.6 |
Other Comprehensive Income (Loss), Net of Tax | (5.1) | (19.9) | 59.4 | (20.3) |
Comprehensive Income (Loss) | 58.6 | 95.1 | 585.1 | 412.3 |
Mallinckrodt International Finance S.A. | ||||
Condensed Consolidating Financial Statements | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0.2 | 0.1 | 0.6 | 0.5 |
Research and development expenses | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Non-restructuring impairment charges | 0 | 0 | 0 | 0 |
Losses (gains) on divestiture and license | 0 | 0 | 0 | 0 |
Operating income | (0.2) | (0.1) | (0.6) | (0.5) |
Interest expense | (90.9) | (82) | (264.9) | (245.1) |
Interest income | 0.4 | 0.2 | 1 | 0.5 |
Other income (expense), net | 1.7 | 0 | (1.6) | 0 |
Intercompany Interest And Fees | 0 | 0 | 0 | 0.1 |
Income (Loss) from Equity Method Investments | 261.8 | 302.7 | 1,113.5 | 1,015.2 |
Income from continuing operations before income taxes | 172.8 | 220.8 | 847.4 | 770.2 |
Income tax benefit | (2.1) | (4.1) | (2.6) | (18.1) |
Income (Loss) from Continuing Operations | 174.9 | 224.9 | 850 | 788.3 |
(Loss) income from discontinued operations, net of income taxes | (0.2) | (0.4) | (1.9) | (2.1) |
Net Income (Loss) | 174.7 | 224.5 | 848.1 | 786.2 |
Other Comprehensive Income (Loss), Net of Tax | (5.1) | (19.9) | 59.4 | (20.3) |
Comprehensive Income (Loss) | 169.6 | 204.6 | 907.5 | 765.9 |
Other Subsidiaries | ||||
Condensed Consolidating Financial Statements | ||||
Net sales | 793.9 | 887.2 | 2,429.3 | 2,569.6 |
Cost of sales | 392.4 | 397 | 1,192.2 | 1,165.5 |
Gross profit | 401.5 | 490.2 | 1,237.1 | 1,404.1 |
Selling, general and administrative expenses | 192.1 | 253 | 698.6 | 660.6 |
Research and development expenses | 57.7 | 67.9 | 187.3 | 200.8 |
Restructuring charges, net | 14.3 | 6.8 | 32.1 | 29.2 |
Non-restructuring impairment charges | 0 | 0 | 0 | 16.9 |
Losses (gains) on divestiture and license | (0.4) | 0 | 56.6 | 0 |
Operating income | 137 | 162.5 | 375.7 | 496.6 |
Interest expense | (19) | (19.4) | (57.9) | (61.4) |
Interest income | 19.3 | 43.8 | 50.3 | 182.6 |
Other income (expense), net | 0.6 | (8) | (11.2) | (24.9) |
Intercompany Interest And Fees | 4.3 | 5.6 | 13.3 | 12.8 |
Income (Loss) from Equity Method Investments | 174.7 | 224.5 | 848.1 | 786.2 |
Income from continuing operations before income taxes | 316.9 | 409 | 1,218.3 | 1,391.9 |
Income tax benefit | (27.7) | (45.4) | (103.5) | (183.6) |
Income (Loss) from Continuing Operations | 344.6 | 454.4 | 1,321.8 | 1,575.5 |
(Loss) income from discontinued operations, net of income taxes | (0.4) | 5.4 | 363.8 | 49.5 |
Net Income (Loss) | 344.2 | 459.8 | 1,685.6 | 1,625 |
Other Comprehensive Income (Loss), Net of Tax | (10.5) | (39.8) | 117.9 | (41) |
Comprehensive Income (Loss) | 333.7 | 420 | 1,803.5 | 1,584 |
Eliminations | ||||
Condensed Consolidating Financial Statements | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Non-restructuring impairment charges | 0 | 0 | 0 | 0 |
Losses (gains) on divestiture and license | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 20.6 | 43.5 | 53.8 | 182 |
Interest income | (20.6) | (43.5) | (53.8) | (182) |
Other income (expense), net | 0 | 0 | 0 | 0 |
Intercompany Interest And Fees | 0 | 0 | 0 | 0 |
Income (Loss) from Equity Method Investments | (518.9) | (684.3) | (2,533.7) | (2,411.2) |
Income from continuing operations before income taxes | (518.9) | (684.3) | (2,533.7) | (2,411.2) |
Income tax benefit | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations | (518.9) | (684.3) | (2,533.7) | (2,411.2) |
(Loss) income from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 |
Net Income (Loss) | (518.9) | (684.3) | (2,533.7) | (2,411.2) |
Other Comprehensive Income (Loss), Net of Tax | 15.6 | 59.7 | (177.3) | 61.3 |
Comprehensive Income (Loss) | $ (503.3) | $ (624.6) | $ (2,711) | $ (2,349.9) |
Condensed Consolidating Finan87
Condensed Consolidating Financial Statements (Schedule of Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Condensed Consolidating Financial Statements | ||
Restricted Cash and Investments, Current | $ 0 | $ 0.1 |
Cash Flows From Operating Activities: | ||
Net cash from operating activities | 448.5 | 873.2 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (151.3) | (133.9) |
Acquisitions and intangibles, net of cash acquired | (35.9) | (245.4) |
Proceeds from divestitures, net of cash | 576.9 | 3 |
Intercompany loan investment, net | 0 | 0 |
Investment in subsidiary | 0 | 0 |
Proceeds from Divestiture of Subsidiary | 0 | |
Payments to Acquire Subsidiary | 0 | |
Other | 0.5 | 5.3 |
Net cash from investing activities | 390.2 | (371) |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 540 | 36.3 |
Repayment of external debt and capital leases | (887.5) | (439) |
Debt financing costs | (12.7) | 0 |
Proceeds from exercise of share options | 4 | 10.4 |
Repurchase of shares | (437.7) | (377.5) |
Intercompany loan borrowings, net | 0 | 0 |
Payment of Subsidiary Dividend | 0 | |
Capital contribution | 0 | 0 |
Other | (18.6) | (23) |
Net cash from financing activities | (812.5) | (792.8) |
Effect of currency rate changes on cash | 2.7 | 1.8 |
Net change in cash, cash equivalents and restricted cash | 28.9 | (288.8) |
Cash and cash equivalents, end of period | 371.8 | 280.5 |
Restricted Cash and Investments, Noncurrent | 18.2 | 19 |
Cash and Cash Equivalents and Restricted Cash | 361.1 | 588.4 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 390 | 299.6 |
Mallinckrodt plc | ||
Condensed Consolidating Financial Statements | ||
Restricted Cash and Investments, Current | 0 | 0 |
Cash Flows From Operating Activities: | ||
Net cash from operating activities | 1,172 | (21.3) |
Cash Flows From Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisitions and intangibles, net of cash acquired | 0 | 0 |
Proceeds from divestitures, net of cash | 0 | 0 |
Intercompany loan investment, net | (741.3) | 0 |
Investment in subsidiary | 0 | 0 |
Proceeds from Divestiture of Subsidiary | 3.4 | |
Payments to Acquire Subsidiary | 0 | |
Other | 0 | 0 |
Net cash from investing activities | (741.3) | 3.4 |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 0 | 0 |
Repayment of external debt and capital leases | 0 | 0 |
Debt financing costs | 0 | 0 |
Proceeds from exercise of share options | 4 | 10.4 |
Repurchase of shares | (437.7) | (377.5) |
Intercompany loan borrowings, net | 0 | 385 |
Payment of Subsidiary Dividend | 0 | |
Capital contribution | 0 | 0 |
Other | 3.2 | 0 |
Net cash from financing activities | (430.5) | 17.9 |
Effect of currency rate changes on cash | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | 0.2 | 0 |
Cash and cash equivalents, end of period | 0.7 | 0.3 |
Restricted Cash and Investments, Noncurrent | 0 | 0 |
Cash and Cash Equivalents and Restricted Cash | 0.5 | 0.3 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 0.7 | 0.3 |
Mallinckrodt International Finance S.A. | ||
Condensed Consolidating Financial Statements | ||
Restricted Cash and Investments, Current | 0 | 0 |
Cash Flows From Operating Activities: | ||
Net cash from operating activities | 1,233.7 | (99.3) |
Cash Flows From Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisitions and intangibles, net of cash acquired | 0 | 0 |
Proceeds from divestitures, net of cash | 0 | (1.4) |
Intercompany loan investment, net | 0 | (69.4) |
Investment in subsidiary | (1,412.5) | (815) |
Proceeds from Divestiture of Subsidiary | 0 | |
Payments to Acquire Subsidiary | 0 | |
Other | 0 | 0 |
Net cash from investing activities | (1,412.5) | (885.8) |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 500 | 0 |
Repayment of external debt and capital leases | (759.9) | (420.3) |
Debt financing costs | (12.7) | 0 |
Proceeds from exercise of share options | 0 | 0 |
Repurchase of shares | 0 | 0 |
Intercompany loan borrowings, net | 1,614.5 | 1,271.9 |
Payment of Subsidiary Dividend | (1,170) | |
Capital contribution | 0 | 0 |
Other | 0 | 0 |
Net cash from financing activities | 171.9 | 851.6 |
Effect of currency rate changes on cash | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | (6.9) | (133.5) |
Cash and cash equivalents, end of period | 37.6 | 25 |
Restricted Cash and Investments, Noncurrent | 0 | 0 |
Cash and Cash Equivalents and Restricted Cash | 44.5 | 158.5 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 37.6 | 25 |
Other Subsidiaries | ||
Condensed Consolidating Financial Statements | ||
Restricted Cash and Investments, Current | 0 | 0.1 |
Cash Flows From Operating Activities: | ||
Net cash from operating activities | 1,963 | 993.8 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (151.3) | (133.9) |
Acquisitions and intangibles, net of cash acquired | (35.9) | (245.4) |
Proceeds from divestitures, net of cash | 576.9 | 4.4 |
Intercompany loan investment, net | (920.8) | (1,587.5) |
Investment in subsidiary | 0 | 0 |
Proceeds from Divestiture of Subsidiary | 0 | |
Payments to Acquire Subsidiary | (3.4) | |
Other | 0.5 | 5.3 |
Net cash from investing activities | (530.6) | (1,960.5) |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 40 | 36.3 |
Repayment of external debt and capital leases | (127.6) | (18.7) |
Debt financing costs | 0 | 0 |
Proceeds from exercise of share options | 0 | 0 |
Repurchase of shares | 0 | 0 |
Intercompany loan borrowings, net | 47.6 | 0 |
Payment of Subsidiary Dividend | (2,750.2) | |
Capital contribution | 1,412.5 | 815 |
Other | (21.8) | (23) |
Net cash from financing activities | (1,399.5) | 809.6 |
Effect of currency rate changes on cash | 2.7 | 1.8 |
Net change in cash, cash equivalents and restricted cash | 35.6 | (155.3) |
Cash and cash equivalents, end of period | 333.5 | 255.2 |
Restricted Cash and Investments, Noncurrent | 18.2 | 19 |
Cash and Cash Equivalents and Restricted Cash | 316.1 | 429.6 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 351.7 | 274.3 |
Eliminations | ||
Condensed Consolidating Financial Statements | ||
Restricted Cash and Investments, Current | 0 | 0 |
Cash Flows From Operating Activities: | ||
Net cash from operating activities | (3,920.2) | 0 |
Cash Flows From Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisitions and intangibles, net of cash acquired | 0 | 0 |
Proceeds from divestitures, net of cash | 0 | 0 |
Intercompany loan investment, net | 1,662.1 | 1,656.9 |
Investment in subsidiary | 1,412.5 | 815 |
Proceeds from Divestiture of Subsidiary | (3.4) | |
Payments to Acquire Subsidiary | 3.4 | |
Other | 0 | 0 |
Net cash from investing activities | 3,074.6 | 2,471.9 |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 0 | 0 |
Repayment of external debt and capital leases | 0 | 0 |
Debt financing costs | 0 | 0 |
Proceeds from exercise of share options | 0 | 0 |
Repurchase of shares | 0 | 0 |
Intercompany loan borrowings, net | (1,662.1) | (1,656.9) |
Payment of Subsidiary Dividend | 3,920.2 | |
Capital contribution | (1,412.5) | (815) |
Other | 0 | 0 |
Net cash from financing activities | 845.6 | (2,471.9) |
Effect of currency rate changes on cash | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Restricted Cash and Investments, Noncurrent | 0 | 0 |
Cash and Cash Equivalents and Restricted Cash | 0 | 0 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | $ 0 | $ 0 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) - USD ($) $ in Millions | Nov. 02, 2017 | Oct. 02, 2017 | Dec. 29, 2017 | Sep. 29, 2017 |
Subsequent Event [Line Items] | ||||
Income Tax Expense (Benefit), Legal Reorganization | $ 36.1 | |||
NeuroproteXeon | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Combination, Consideration Transferred, Other | $ 10 | |||
Business Combination, Contingent Consideration Arrangements, Potential Payment | $ 25 | |||
Ocera Acquisition [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Combination, Consideration Transferred, Other | $ 42 | |||
Business Combination, Contingent Consideration Arrangements, Potential Payment | $ 75 | |||
Minimum | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Increase (Decrease), Deferred Tax Liability, Net, Noncurrent | $ (800) | |||
Increase (Decrease) in Deferred Tax Liability, Installment Sales | (650) | |||
Increase (Decrease), Deferred Tax Liability, Net | (150) | |||
Maximum | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Increase (Decrease), Deferred Tax Liability, Net, Noncurrent | (950) | |||
Increase (Decrease) in Deferred Tax Liability, Installment Sales | (775) | |||
Increase (Decrease), Deferred Tax Liability, Net | $ (175) |