Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 29, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Mallinckrodt plc | |
Entity Central Index Key | 0001567892 | |
Trading Symbol | MNK | |
Current Fiscal Year End Date | --12-27 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 29, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Ordinary Shares Outstanding | 83,813,820 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | ||
Net sales | $ 790.6 | $ 755.3 | |
Cost of sales | 455.5 | 407.8 | |
Gross profit | 335.1 | 347.5 | |
Selling, general and administrative expenses | 230.2 | 211.2 | |
Research and development expenses | 85.3 | 82 | |
Restructuring charges, net | 4.2 | 28.2 | |
Operating income | [1] | 15.4 | 26.1 |
Interest expense | (82.7) | (91.4) | |
Interest income | 1.5 | 3.2 | |
Other income, net | 16.3 | 4.6 | |
Loss from continuing operations before income taxes | (49.5) | (57.5) | |
Income tax benefit | (204.7) | (36.6) | |
Income (loss) from continuing operations | 155.2 | (20.9) | |
(Loss) income from discontinued operations, net of income taxes | (0.3) | 2.9 | |
Net income (loss) | $ 154.9 | $ (18) | |
Basic earnings per share (Note 8): | |||
Income (loss) from continuing operations, per share | $ 1.86 | $ (0.24) | |
Income from discontinued operations, per share | 0 | 0.03 | |
Net income, per share | $ 1.86 | $ (0.21) | |
Basic weighted-averaged shares outstanding (in shares) | 83.5 | 86.1 | |
Diluted earnings per share (Note 8): | |||
Income (loss) from continuing operations, per share | $ 1.83 | $ (0.24) | |
Income from discontinued operations, per share | 0 | 0.03 | |
Net income, per share | $ 1.83 | $ (0.21) | |
Diluted weighted-average shares outstanding (in shares) | 84.6 | 86.1 | |
[1] | The amount of operating loss included in the Company's unaudited condensed statement of income for the three months ended March 30, 2018 related to the Sucampo Acquisition was $30.7 million . Included within these results were $9.1 million of amortization associated with intangibles recognized from this acquisition and $15.0 million |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Net income (loss) | $ 154.9 | $ (18) |
Other comprehensive income (loss), net of tax: | ||
Currency translation adjustments | 1.4 | (2.3) |
Derivatives, net of $- and $- tax | 0.2 | 0.4 |
Benefit plans, net of $- and $- tax | (0.3) | (0.5) |
Total other comprehensive income (loss), net of tax | 1.3 | (2.4) |
Comprehensive income (loss) | $ 156.2 | $ (20.4) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Unrecognized gain derivatives, tax | $ 0 | $ 0 |
Unrecognized (loss) gain on benefit plans, tax | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 225.8 | $ 348.9 |
Accounts receivable, less allowance for doubtful accounts of $4.3 and $5.0 | 575.9 | 623.3 |
Inventories | 319.7 | 322.3 |
Prepaid expenses and other current assets | 120.1 | 132.7 |
Total current assets | 1,241.5 | 1,427.2 |
Property, plant and equipment, net | 977 | 982 |
Intangible assets, net | 8,060.2 | 8,282.8 |
Other assets | 276.8 | 185.3 |
Total Assets | 10,555.5 | 10,877.3 |
Current Liabilities: | ||
Current maturities of long-term debt | 19.8 | 22.4 |
Accounts payable | 132.6 | 147.5 |
Accrued payroll and payroll-related costs | 60.8 | 124 |
Accrued interest | 72.4 | 77.6 |
Income taxes payable | 7.7 | 25 |
Accrued and other current liabilities | 560.7 | 547.2 |
Total current liabilities | 854 | 943.7 |
Long-term debt | 5,817.6 | 6,069.2 |
Pension and postretirement benefits | 59.7 | 60.5 |
Environmental liabilities | 59.6 | 59.7 |
Deferred income taxes | 81.1 | 324.3 |
Other income tax liabilities | 262.8 | 228 |
Other liabilities | 366.8 | 304.6 |
Total Liabilities | 7,501.6 | 7,990 |
Shareholders' Equity: | ||
Preferred shares | 0 | 0 |
Ordinary shares | 18.6 | 18.5 |
Ordinary shares held in treasury at cost | (1,617) | (1,617.4) |
Additional paid-in capital | 5,538.5 | 5,528.2 |
Retained deficit | (863.7) | (1,017.7) |
Accumulated other comprehensive loss | (22.5) | (24.3) |
Total Shareholders' Equity | 3,053.9 | 2,887.3 |
Total Liabilities and Shareholders' Equity | 10,555.5 | 10,877.3 |
Ordinary A | ||
Shareholders' Equity: | ||
Ordinary A shares | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) $ in Millions | Mar. 29, 2019€ / shares | Mar. 29, 2019USD ($)$ / sharesshares | Dec. 28, 2018€ / shares | Dec. 28, 2018USD ($)$ / sharesshares |
Allowance for doubtful accounts | $ | $ 4.3 | $ 5 | ||
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) | 92,912,986 | 92,705,747 | ||
Ordinary shares, shares outstanding (in shares) | 83,536,829 | 83,323,877 | ||
Ordinary shares held in treasury at cost (in shares) | 9,376,157 | 9,381,870 | ||
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 Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 154.9 | $ (18) |
Adjustments to reconcile net cash from operating activities: | ||
Depreciation and amortization | 247.6 | 198.6 |
Share-based compensation | 10 | 4.6 |
Deferred income taxes | (243.2) | (47.8) |
Other non-cash items | 2.6 | 0.5 |
Changes in assets and liabilities, net of the effects of acquisitions: | ||
Accounts receivable, net | 48.7 | (22.4) |
Inventories | (0.7) | (7.8) |
Accounts payable | (7.1) | 19.1 |
Income taxes | 19.8 | (2.9) |
Other | (68.1) | (106.1) |
Net cash from operating activities | 164.5 | 17.8 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (39.8) | (34.3) |
Acquisitions, net of cash | 0 | (699.9) |
Proceeds from divestitures, net of cash | 0 | 298.3 |
Other | 0.4 | 8.3 |
Net cash from investing activities | (39.4) | (427.6) |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 200 | 626.8 |
Repayment of external debt | (448.7) | (902.2) |
Debt financing costs | 0 | (12) |
Proceeds from exercise of share options | 0.3 | 0 |
Repurchase of shares | (0.5) | (46.6) |
Other | 0.5 | (4.8) |
Net cash from financing activities | (248.4) | (338.8) |
Effect of currency rate changes on cash | 0.3 | (0.3) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (123) | (748.9) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 367.5 | 1,279.1 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 244.5 | 530.2 |
Cash and cash equivalents, end of period | 225.8 | 511.9 |
Restricted Cash and Investments, Noncurrent | 18.7 | 18.3 |
Retained Earnings (Deficit) | ||
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 154.9 | $ (18) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Changes in Shareholders' Equity Statement - USD ($) $ in Millions | Total | Ordinary Shares | Treasury Shares | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss |
Beginning balance, ordinary shares (in shares) at Dec. 29, 2017 | 92,200,000 | |||||
Beginning balance, treasury shares (in shares) at Dec. 29, 2017 | 5,900,000 | |||||
Beginning balance at Dec. 29, 2017 | $ 6,522 | $ 18.4 | $ (1,564.7) | $ 5,492.6 | $ 2,588.6 | $ (12.9) |
Impact of accounting standard adoptions, net of tax | 1.1 | 2.6 | (1.5) | |||
Net income (loss) | (18) | (18) | ||||
Currency translation adjustments | (2.3) | (2.3) | ||||
Change in derivatives, net of tax | 0.4 | 0.4 | ||||
Change in benefit plans, net of tax | (0.5) | (0.5) | ||||
Vesting of restricted shares (in shares) | 300,000 | 0 | ||||
Vesting of restricted shares (in usd) | (1.3) | $ 0.1 | $ (1.4) | 0 | ||
Share-based compensation | 4.6 | 4.6 | ||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 0 | |||||
Reissuance of treasury shares | 0.5 | $ 0.8 | (0.3) | |||
Repurchase of shares (in shares) | 2,900,000 | |||||
Repurchase of shares (in usd) | (45.2) | $ 45.2 | ||||
Ending balance, ordinary shares (in shares) at Mar. 30, 2018 | 92,500,000 | |||||
Ending balance, treasury shares (in shares) at Mar. 30, 2018 | 8,800,000 | |||||
Ending balance at Mar. 30, 2018 | $ 6,461.3 | $ 18.5 | $ (1,610.5) | 5,497.2 | 2,572.9 | (16.8) |
Beginning balance, ordinary shares (in shares) at Dec. 28, 2018 | 92,705,747 | 92,700,000 | ||||
Beginning balance, treasury shares (in shares) at Dec. 28, 2018 | 9,381,870 | 9,400,000 | ||||
Beginning balance at Dec. 28, 2018 | $ 2,887.3 | $ 18.5 | $ (1,617.4) | 5,528.2 | (1,017.7) | (24.3) |
Impact of accounting standard adoptions, net of tax | 0 | (0.5) | 0.5 | |||
Net income (loss) | 154.9 | 154.9 | ||||
Currency translation adjustments | 1.4 | 1.4 | ||||
Change in derivatives, net of tax | 0.2 | 0.2 | ||||
Change in benefit plans, net of tax | (0.3) | (0.3) | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0.3 | 0.3 | ||||
Vesting of restricted shares (in shares) | 200,000 | 0 | ||||
Vesting of restricted shares (in usd) | (0.4) | $ 0.1 | $ (0.5) | 0 | ||
Share-based compensation | 10 | 10 | ||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 0 | |||||
Reissuance of treasury shares | $ 0.5 | $ 0.9 | (0.4) | |||
Ending balance, ordinary shares (in shares) at Mar. 29, 2019 | 92,912,986 | 92,900,000 | ||||
Ending balance, treasury shares (in shares) at Mar. 29, 2019 | 9,376,157 | 9,400,000 | ||||
Ending balance at Mar. 29, 2019 | $ 3,053.9 | $ 18.6 | $ (1,617) | $ 5,538.5 | $ (863.7) | $ (22.5) |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | 1. Background and Basis of Presentation Background Mallinckrodt plc is a global business consisting of multiple wholly owned subsidiaries (collectively, "Mallinckrodt" or "the Company") 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. As a result of the planned separation of the Specialty Generics and Amitiza segment, the Company has identified two reportable segments that align with the operations of the two independent publicly traded companies anticipated post-separation, which are further described below: • Specialty Brands includes innovative specialty pharmaceutical brands; and • Specialty Generics and Amitiza includes niche specialty generic drugs products, active pharmaceutical ingredients ("API(s)") and Amitiza ® (lubiprostone) ("Amitiza"). Prior year amounts have been recast to conform to current presentation. 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 revenues and expenses. Actual results may differ from those estimates. The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and entities in which they own or control more than 50% of the voting shares, or have the ability to control through similar rights. All intercompany balances and transactions have been eliminated in consolidation and all normal recurring adjustments necessary for a fair presentation have been included in the results reported. 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 reported in discontinued operations. Divestitures of product lines and businesses not meeting the criteria for discontinued operations have been reflected in operating income. The fiscal year end balance sheet data was derived from audited consolidated financial statements, but do 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 financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 28, 2018 filed with the Securities and Exchange Commission ("SEC") on February 26, 2019. Beginning in the first quarter through the third quarter of fiscal 2018, the historical financial results attributable to "the Specialty Generics Disposal Group" were reflected in the Company's interim unaudited condensed consolidated financial statements as discontinued operations. As a result of the December 6, 2018 announcement of the planned separation of the Specialty Generics/Amitiza business, the Specialty Generics Disposal Group (which excluded Amitiza) no longer met the requirements to be classified as held-for-sale, and the historical financial results attributable to the Specialty Generics Disposal Group were recast as continuing operations in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2018, as well as the unaudited condensed consolidated financial statements as presented herein. Fiscal Year The Company reports its results based on a "52-53 week" year ending on the last Friday of December. Unless otherwise indicated, the three months ended March 29, 2019 refers to the thirteen week period ended March 29, 2019 and the three months ended March 30, 2018 refers to the thirteen period ended March 30, 2018 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 29, 2019 | |
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") 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," in February 2018. This ASU allows for a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for the stranded tax effects arising from the change in the reduction of the U.S. federal statutory income tax rate from 35% to 21%. The Company adopted this standard as of day 1 of fiscal 2019, which resulted in a reclassification between AOCI and retained deficit of $0.5 million , and had no impact on the Company's results of operations or financial position. The FASB issued ASU 2016-02, "Leases," in February 2016. This ASU was issued to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use ("ROU") asset (as defined). The FASB subsequently issued additional ASUs to clarify the guidance of ASU 2016-02 ("Topic 842,") as amended. The Company adopted this standard as of day 1 of fiscal 2019 utilizing the modified transition approach expedient which allows an entity to elect not to recast its comparative periods in the period of adoption. In addition, the Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company also elected the hindsight practical expedient to determine the lease term for existing leases. Adoption of the new standard resulted in the recording of additional lease assets and corresponding liabilities of $83.1 million and $99.7 million |
Revenue from Contracts with Cus
Revenue from Contracts with Customers Revenue from Contracts with Customers (Notes) | 3 Months Ended |
Mar. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 3. Revenue from Contracts with Customers Product Sales Revenue See Note 16 for presentation of the Company's net sales by product family. Reserves for variable consideration The following table reflects activity in the Company's sales reserve accounts: Rebates and Chargebacks Product Returns Other Sales Deductions Total Balance as of December 29, 2017 $ 327.4 $ 34.5 $ 14.7 $ 376.6 Provisions 489.5 13.8 14.3 517.6 Payments or credits (744.6 ) (13.3 ) (15.2 ) (773.1 ) Balance as of March 30, 2018 $ 72.3 $ 35.0 $ 13.8 $ 121.1 Balance as of December 28, 2018 $ 354.3 $ 34.0 $ 17.1 $ 405.4 Provisions 602.9 6.2 17.7 626.8 Payments or credits (805.8 ) (8.2 ) (12.4 ) (826.4 ) Balance as of March 29, 2019 $ 151.4 $ 32.0 $ 22.4 $ 205.8 Product sales transferred to customers at a point in time and over time are as follows: Three Months Ended March 29, 2019 March 30, Product sales transferred at a point in time 80.7 % 81.3 % Product sales transferred over time 19.3 % 18.7 % Transaction price allocated to the remaining performance obligations The following table includes estimated revenue from contracts extending greater than one year for certain of the Company's hospital products that are expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 29, 2019 : Remainder of Fiscal 2019 $ 122.5 Fiscal 2020 148.8 Fiscal 2021 55.3 Fiscal 2022 9.2 Thereafter 6.2 Costs to fulfill a contract As of March 29, 2019 and December 28, 2018 , the total net book value of the devices used in the Company's portfolio of drug-device combination products, which are used in satisfying future performance obligations, was $28.4 million , as of both periods, and are classified in property, plant and equipment, net, on the unaudited condensed consolidated balance sheets. The associated depreciation expense recognized during the three months ended March 29, 2019 and March 30, 2018 was $1.5 million and $1.6 million , respectively. Product Royalty Revenues The Company licenses certain rights to Amitiza to a third party in exchange for royalties on net sales of the product. The Company recognizes such royalty revenue as the related sales occur. The royalty rates consist of several tiers ranging from 18% to 26% with the royalty rate resetting every year. The associated royalty revenue recognized during the three months ended March 29, 2019 was $17.4 million . The three months ended March 30, 2018 included royalty revenue of $8.0 million , for the period subsequent to the Company's acquisition of Sucampo Pharmaceuticals, Inc. ("Sucampo Acquisition"). Contract Liabilities The following table reflects the balance of the Company's contract liabilities at the end of the respective periods: March 29, 2019 December 28, Accrued and other current liabilities $ 20.0 $ 20.4 Other liabilities 15.7 15.1 Contract liabilities $ 35.7 $ 35.5 Revenue recognized during the three months ended March 29, 2019 from amounts included in contract liabilities at the beginning of the period was approximately $4.5 million |
Restructuring and Related Charg
Restructuring and Related Charges | 3 Months Ended |
Mar. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | 4. Restructuring and Related Charges In July 2016, the Company's Board of Directors approved a $100.0 million to $125.0 million restructuring program ("the 2016 Mallinckrodt Program"), designed to further improve its cost structure as the Company continues to transform its business. The 2016 Mallinckrodt Program included actions across the Specialty Brands segment and the Specialty Generics and Amitiza segment, as well as within the corporate functions. As of March 29, 2019, the 2016 Mallinckrodt Program was substantially complete. In February 2018, the Company's Board of Directors approved a $100.0 million to $125.0 million restructuring program ("the 2018 Mallinckrodt Program") that is of similar design as the 2016 Mallinckrodt Program. The utilization of the 2018 Mallinckrodt Program commenced upon substantial completion of the 2016 Mallinckrodt Program. There is no specified time period associated with the 2018 Mallinckrodt Program. In addition to the 2018 and 2016 Mallinckrodt Programs, the Company has taken restructuring actions to generate synergies from its acquisitions. Net restructuring and related charges by segment were as follows: Three Months Ended March 29, March 30, Specialty Brands $ — $ 0.5 Specialty Generics and Amitiza 4.0 5.1 Corporate 0.2 22.6 Restructuring and related charges, net 4.2 28.2 Less: accelerated depreciation — — Restructuring charges, net $ 4.2 $ 28.2 Net restructuring and related charges by program were comprised of the following: Three Months Ended March 29, March 30, 2018 Mallinckrodt Program $ 3.5 $ — 2016 Mallinckrodt Program 0.7 8.2 Acquisition programs — 20.0 Total 4.2 28.2 Less: non-cash charges, including accelerated depreciation — — Total charges expected to be settled in cash $ 4.2 $ 28.2 The following table summarizes cash activity for restructuring reserves, substantially all of which related to contract termination costs, employee severance and benefits and exiting of certain facilities: 2018 Mallinckrodt Program 2016 Mallinckrodt Program Acquisition Programs Total Balance as of December 28, 2018 $ 2.2 $ 61.0 $ 7.8 $ 71.0 Charges 3.5 0.7 — 4.2 Cash payments (1.2 ) (8.7 ) (0.8 ) (10.7 ) Reclassifications (1) — (5.0 ) (4.3 ) (9.3 ) Currency translation — (0.5 ) — (0.5 ) Balance as of March 29, 2019 $ 4.5 $ 47.5 $ 2.7 $ 54.7 (1) Represents the reclassification of lease liabilities, net to lease liabilities and lease assets, which are reflected within other liabilities and other assets on the unaudited condensed consolidated balance sheet, due to the adoption of ASU 2016-02. Net restructuring and related charges incurred cumulative to date related to the 2018 and 2016 Mallinckrodt Programs as of March 29, 2019 were as follows: 2018 Mallinckrodt Program 2016 Mallinckrodt Program Specialty Brands $ 3.0 $ 81.7 Specialty Generics and Amitiza 3.5 15.1 Corporate 2.2 26.1 $ 8.7 $ 122.9 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company recognized an income tax benefit of $204.7 million on a loss from continuing operations before income taxes of $49.5 million for the three months ended March 29, 2019, and an income tax benefit of $36.6 million on a loss from continuing operations before income taxes of $57.5 million for the three months ended March 30, 2018. This resulted in effective tax rates of 413.5% and 63.7% for the three months ended March 29, 2019 and March 30, 2018, respectively. The income tax benefit for the three months ended March 29, 2019 is comprised of $38.5 million of current tax expense and $243.2 million of deferred tax benefit. The deferred tax benefit is predominantly related to previously acquired intangibles as well as the reorganization of the Company's intercompany financing and associated legal entity ownership which eliminated the interest bearing deferred tax obligation. The income tax benefit for the three months ended March 30, 2018 is comprised of $11.2 million of current tax expense and $47.8 million of deferred tax benefit. The deferred tax benefit is predominantly related to previously acquired intangibles. The income tax benefit was $204.7 million for the three months ended March 29, 2019 , compared with a tax benefit of $36.6 million for the three months ended March 30, 2018 . The $168.1 million net increase in the tax benefit includes an increase of $192.8 million attributable to the tax benefit from the reorganization of the Company's intercompany financing and associated legal entity ownership which occurred during the three months ended March 29, 2019, partially offset by a decrease in tax benefit of $24.7 million predominately attributable to changes in the timing, amount and jurisdictional mix of operating income. During the three months ended March 29, 2019, the Company completed a reorganization of its intercompany financing and associated legal entity ownership in response to the changing global tax environment. As a result, the Company recognized current income tax expense of $28.9 million and a deferred income tax benefit of $221.7 million with a corresponding reduction to net deferred tax liabilities. The reduction in net deferred tax liabilities is comprised of a decrease in interest-bearing deferred tax obligations which results in the elimination of the December 28, 2018 balance of $227.5 million , a $45.3 million increase to a deferred tax asset related to excess interest carryforwards, a $26.4 million increase in various other net deferred tax liabilities and a $24.7 million decrease to a deferred tax asset related to tax loss and credit carryforwards net of valuation allowances. The elimination of the interest-bearing deferred tax obligation also eliminates the annual Internal Revenue Code section 453A interest expense. During the three months ended March 29, 2019, and the fiscal year ended December 28, 2018, the net cash payments for income taxes were $18.8 million and $12.4 million , respectively. The Company's unrecognized tax benefits, excluding interest, totaled $452.6 million and $287.7 million as of March 29, 2019 and December 28, 2018 , respectively. The net increase of $164.9 million primarily resulted from a net increase to current year tax positions of $150.3 million , net increases from prior period tax positions of $15.5 million , and a net decrease from settlements of $0.9 million . If favorably settled, $440.8 million of unrecognized tax benefits as of March 29, 2019 would benefit the effective tax rate, of which up to $20.0 million may be reported in discontinued operations. The total amount of accrued interest and penalties related to these obligations was $42.3 million and $37.1 million as of March 29, 2019 and December 28, 2018 , respectively. It is reasonably possible that within the next twelve months the unrecognized tax benefits could decrease by up to $106.2 million and the amount of related interest and penalties could decrease by up to $30.6 million |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 6. 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. Dilutive securities, including participating securities, are not included in the computation of loss per share when the Company reports a net loss from continuing operations as the impact would be anti-dilutive. 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 March 29, March 30, Basic 83.5 86.1 Dilutive impact of restricted share units and share options 1.1 — Diluted 84.6 86.1 The computation of diluted weighted-average shares outstanding for the three months ended March 29, 2019 and March 30, 2018 excludes approximately 3.2 million and 3.9 million |
Inventories
Inventories | 3 Months Ended |
Mar. 29, 2019 | |
Inventory, Net [Abstract] | |
Inventories | 7. Inventories Inventories were comprised of the following at the end of each period: March 29, December 28, Raw materials and supplies $ 64.2 $ 69.2 Work in process 168.6 167.6 Finished goods 86.9 85.5 $ 319.7 $ 322.3 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 29, 2019 | |
Property, Plant and Equipment | |
Property, Plant and Equipment Disclosure | 8. 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: March 29, December 28, 2018 Property, plant and equipment, gross $ 1,954.6 $ 1,936.2 Less: accumulated depreciation (977.6 ) (954.2 ) Property, plant and equipment, net $ 977.0 $ 982.0 Depreciation expense for property, plant and equipment was as follows: Three Months Ended March 29, March 30, 2018 Depreciation expense $ 24.8 $ 20.6 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 9. Leases The Company assesses all contracts at inception to determine whether a lease exists. The Company leases office space, manufacturing and warehousing facilities, equipment and vehicles, all of which are operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. The Company's lease agreements do not contain variable lease payments or any material residual value guarantees. Lease assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term as of the commencement date. As the Company's leases do not generally provide an implicit rate, the Company utilized its incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. The Company used the incremental borrowing rate on December 29, 2018 for leases that commenced prior to that date. Most leases include one or more options to terminate or renew, with renewal terms that can extend the lease term from one to five years. The exercise of lease renewal options is at the Company's sole discretion. Termination and renewal options are included within the lease assets and liabilities only to the extent they are reasonably certain. Lease assets and liabilities are reported in the following unaudited condensed consolidated balance sheet captions in the amounts shown: March 29, Other assets $ 80.8 Accrued and other current liabilities $ 19.8 Other liabilities 76.9 Total lease liabilities $ 96.7 Dependent on the nature of the leased asset, lease expense is included within cost of sales or selling, general and administrative expenses ("SG&A"). The components of lease expense were as follows: Three Months Ended March 29, Lease cost: Operating lease cost $ 4.9 Short-term lease cost 1.1 Sublease income (0.2 ) Total lease cost $ 5.8 Lease terms and discount rates were as follows: March 29, Weighted-average remaining lease term (in years) - operating lease 7.4 Weighted-average discount rate - operating leases 3.5 % Maturities of lease liabilities as of March 29, 2019 were as follows: Operating Leases Remainder of Fiscal 2019 $ 17.8 Fiscal 2020 21.5 Fiscal 2021 15.9 Fiscal 2022 12.2 Fiscal 2023 11.7 Thereafter 39.3 Total lease payments 118.4 Less: Interest (21.7 ) Present value of lease liabilities $ 96.7 Other supplemental cash flow information related to leases were as follows: Three Months Ended March 29, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5.5 Lease assets obtained in exchange for lease obligations: Operating leases 1.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 10. Intangible Assets VTS-270 VTS-270 is the Company’s development product to treat Niemann-Pick Type C, a complicated, ultra-rare neurodegenerative disease that typically presents in childhood and is ultimately fatal. The results of the Company’s completed registration trial for the product did not show a statistically significant separation from placebo. Neither the VTS-270 nor the placebo arm showed disease progression as would be expected for a neurodegenerative condition over 52 weeks of observation. The Company is in the process of evaluating this portion of the study in order to ensure the data was properly captured and of the highest quality. The U.S. Food and Drug Administration ("FDA") indicated to the Company at a Type A meeting in August 2018 that their view on the potential approvability will be based on the totality of data, not a single study or endpoint. Accordingly, the Company’s review of the data from the Phase 2b/3 trial, including the longer term open label portion, continues to proceed and is being assessed in combination with several other available data sources. A better understanding of the potential benefit of VTS-270 will emerge as the Company carefully considers the totality of data available and continues to work with the primary investigators and the FDA to determine the best path forward. The Company will continue to assess the impact of any changes to planned revenue or earnings on the fair value of the associated in-process research and development ("IPR&D") asset of $274.5 million included within intangible assets, net on the unaudited condensed consolidated balance sheet as of March 29, 2019. The Company annually tests the indefinite-lived intangible assets for impairment, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable by either a qualitative or income approach. Management relies on a number of qualitative factors when considering a potential impairment such as changes to planned revenue or earnings that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset. The gross carrying amount and accumulated amortization of intangible assets at the end of each period was as follows: March 29, 2019 December 28, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 10,467.9 $ 3,200.8 $ 10,467.9 $ 2,980.6 License agreements 120.1 71.1 120.1 70.1 Trademarks 81.9 19.1 81.9 18.1 Customer relationships 27.9 14.9 27.5 14.1 Total $ 10,697.8 $ 3,305.9 $ 10,697.4 $ 3,082.9 Non-Amortizable: Trademarks $ 35.0 $ 35.0 In-process research and development 633.3 633.3 Total $ 668.3 $ 668.3 Ofirmev Since the Company's acquisition of Ofirmev ® in March 2014, the completed technology intangible asset related to Ofirmev had been amortized using the straight-line method over a useful life of eight years . As the product nears loss of exclusivity, the Company believes it is better positioned to reliably determine the pattern in which the remaining economic benefits of the intangible asset are consumed. As a result, during the three months ended March 29, 2019, the Company concluded that the sum of the years digits method, an accelerated method of amortization, would more accurately reflect the consumption of the economic benefits over the remaining useful life of the asset. This change in amortization method resulted in additional amortization expense of $35.9 million during the three months ended March 29, 2019, which impacted basic earnings per share for the period by $0.43 per share. Intangible asset amortization expense Intangible asset amortization expense was as follows: Three Months Ended March 29, 2019 March 30, 2018 Amortization expense $ 222.8 $ 178.0 The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows: Remainder of Fiscal 2019 $ 632.1 Fiscal 2020 758.1 Fiscal 2021 661.2 Fiscal 2022 588.6 Fiscal 2023 584.4 |
Debt
Debt | 3 Months Ended |
Mar. 29, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt Debt was comprised of the following at the end of each period: March 29, 2019 December 28, 2018 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: Term loan due September 2024 $ 15.6 $ 0.2 $ 16.4 $ 0.2 Term loan due February 2025 4.1 0.1 6.0 0.1 Other 0.4 — 0.3 — Total current debt 20.1 0.3 22.7 0.3 Long-term debt: 4.875% notes due April 2020 700.0 2.6 700.0 3.2 Variable-rate receivable securitization due July 2020 250.0 0.3 250.0 0.4 9.50% debentures due May 2022 10.4 — 10.4 — 5.75% notes due August 2022 693.2 5.4 835.2 7.0 8.00% debentures due March 2023 4.4 — 4.4 — 4.75% notes due April 2023 490.2 3.2 500.2 3.5 5.625% notes due October 2023 721.4 7.4 731.4 8.0 Term loan due September 2024 1,513.0 18.0 1,597.4 19.8 Term loan due February 2025 401.5 7.1 591.0 10.7 5.50% notes due April 2025 682.1 7.3 692.1 7.7 Revolving credit facility 405.0 4.2 220.0 4.5 Other 1.9 — 1.9 — Total long-term debt 5,873.1 55.5 6,134.0 64.8 Total debt $ 5,893.2 $ 55.8 $ 6,156.7 $ 65.1 As of March 29, 2019 , the applicable interest rate and outstanding borrowings on the Company's variable-rate debt instruments were as follows: Applicable interest rate Outstanding borrowings Term loan due September 2024 5.35 % $ 1,528.6 Term loan due February 2025 5.69 % 405.6 Variable-rate receivable securitization 3.39 % 250.0 Revolving credit facility 4.85 % 405.0 As of March 29, 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | 12. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: Currency Translation Unrecognized Loss on Derivatives Unrecognized Gain (Loss) on Benefit Plans Accumulated Other Comprehensive Loss Balance as of December 28, 2018 $ (20.4 ) $ (4.0 ) $ 0.1 $ (24.3 ) Impact of accounting standard adoptions — — 0.5 0.5 Other comprehensive income before reclassifications 1.4 — 0.1 1.5 Amounts reclassified from accumulated other comprehensive loss — 0.2 (0.4 ) (0.2 ) Net current period other comprehensive income (loss) 1.4 0.2 (0.3 ) 1.3 Balance as of March 29, 2019 $ (19.0 ) $ (3.8 ) $ 0.3 $ (22.5 ) Currency Translation Unrecognized Loss on Derivatives Unrecognized Loss on Benefit Plans Accumulated Other Comprehensive Loss Balance as of December 29, 2017 $ (8.2 ) $ (4.7 ) $ (1.5 ) $ (14.4 ) Other comprehensive loss before reclassifications (2.3 ) — — (2.3 ) Amounts reclassified from accumulated other comprehensive loss — 0.4 (0.5 ) (0.1 ) Net current period other comprehensive (loss) income (2.3 ) 0.4 (0.5 ) (2.4 ) Balance as of March 30, 2018 $ (10.5 ) $ (4.3 ) $ (2.0 ) $ (16.8 ) The following summarizes reclassifications from accumulated other comprehensive loss: Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended March 29, March 30, Line Item in the Unaudited Condensed Consolidated Statement of Income Amortization and other of unrealized loss on derivatives $ 0.2 $ 0.4 Interest expense Amortization of pension and post-retirement benefit plans: Net actuarial loss 0.1 0.1 Other income, net Prior service credit (0.5 ) (0.5 ) Other income, net Plan settlements — (0.1 ) Other income, net Total reclassifications for the period $ (0.2 ) $ (0.1 ) |
Guarantees
Guarantees | 3 Months Ended |
Mar. 29, 2019 | |
Guarantees [Abstract] | |
Guarantees | 13. Guarantees In disposing of assets or businesses, the Company has from time to time provided representations, warranties and indemnities to cover various risks and liabilities, including unknown damage to 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 the 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 March 29, 2019 and December 28, 2018 was $14.7 million and $14.6 million , respectively, of which $12.0 million and $11.8 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 as of March 29, 2019 and December 28, 2018 . As of March 29, 2019 , 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 $18.7 million and $18.6 million remained in restricted cash, included in other long-term assets on the unaudited condensed consolidated balance sheets as of March 29, 2019 and December 28, 2018 , respectively. The Company has recorded liabilities for known indemnification obligations included as part of environmental liabilities, which are discussed in Note 14. The Company is also liable for product performance; however, the Company believes, given the information currently available, that the ultimate resolution of any such claims will not have a material adverse effect on its financial condition, results of operations and cash flows. As of March 29, 2019 , the Company had various other letters of credit, guarantees and surety bonds totaling $38.7 million |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies The Company is subject to various legal proceedings and claims, including patent infringement claims, product liability matters, personal injury, environmental matters, employment disputes, contractual disputes and other commercial disputes, including those described below. The Company believes that these legal proceedings and claims likely will be resolved over an extended period of time. Although it is not feasible to predict the outcome of these matters, the Company believes, unless indicated below, given the information currently available, that their ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. Governmental Proceedings Opioid Related Matters Since 2017, multiple U.S. states, counties, other governmental persons or entities and private plaintiffs have filed lawsuits against certain Mallinckrodt entities, as well as various other manufacturers, distributors, pharmacies, pharmacy benefit managers, individual doctors and/or others, asserting claims relating to defendants’ alleged sales, marketing, distribution, reimbursement, prescribing, dispensing and/or other practices with respect to prescription opioid medications, including certain of the Company's products. As of May 7, 2019, the cases of which the Company is aware include, but are not limited to, approximately 1,780 cases filed by counties, cities, Native American tribes and/or other government-related persons or entities; approximately 122 cases filed by hospitals, health systems, unions, health and welfare funds or other third-party payers; approximately 27 cases filed by individuals and 7 cases filed by the Attorneys General for New Mexico, Kentucky, Rhode Island, Georgia, Florida, Alaska and New York. Certain of the lawsuits have been filed as putative class actions. Many of the lawsuits have been coordinated in a federal multi-district litigation (“MDL”) pending in the U.S. District Court for the Northern District of Ohio. The MDL court has issued a series of case management orders permitting motion practice addressing threshold legal issues in certain cases, allowing discovery and setting a trial date in October 2019 for two cases originally filed in the Northern District of Ohio. Other lawsuits remain pending in various state courts. In some jurisdictions, such as Connecticut, Illinois, New York, Pennsylvania and Texas, certain state court cases have been coordinated for pretrial proceedings before a single court within their respective state court systems. State cases are generally at the pleading and/or discovery stage. The lawsuits assert a variety of claims, including, but not limited to, public nuisance, negligence, civil conspiracy, fraud, violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) or similar state laws, violations of state Controlled Substances Acts or state False Claims Acts, product liability, consumer fraud, unfair or deceptive trade practices, false advertising, insurance fraud, unjust enrichment and other common law and statutory claims arising from defendants’ manufacturing, distribution, marketing and promotion of opioids and seek restitution, damages, injunctive and other relief and attorneys’ fees and costs. The claims generally are based on alleged misrepresentations and/or omissions in connection with the sale and marketing of prescription opioid medications and/or an alleged failure to take adequate steps to prevent abuse and diversion. The Company intends to vigorously defend itself against these lawsuits and similar lawsuits that may be brought by others. Since these lawsuits are in early stages, the Company is unable to predict outcomes or estimate a range of reasonably possible losses. In addition to the lawsuits described above, certain Mallinckrodt entities have received subpoenas and civil investigative demands ("CID(s)") for information concerning the sale, marketing and/or distribution of prescription opioid medications, including from U.S. Department of Justice ("DOJ") and the Attorneys General for Missouri, New Hampshire, Kentucky, Washington, Alaska, South Carolina, Puerto Rico and New York and the Divisions of Consumer Protection and Occupational and Professional Licensing of the Utah Department of Commerce. The Company has been contacted by the coalition of State Attorneys General investigating the role manufacturers and distributors may have had in contributing to the increased use of opioids in the U.S. On January 27, 2018, the Company received a grand jury subpoena from the U.S. Attorneys’ Office (“USAO”) for the Southern District of Florida for documents related to the distribution, marketing and sale of generic oxymorphone products. On April 17, 2019, the Company received a grand jury subpoena from the USAO for the Eastern District of New York for documents related to the sales and marketing of controlled substances, the policies and procedures regarding controlled substances, and other related documents. The Company is in the process of responding to these subpoenas, CIDs and any informal requests for documents. On August 2, 2018, Energy and Commerce Committee leaders in the U.S. House of Representatives sent a letter to one of Mallinckrodt's subsidiaries requesting information about that subsidiary’s efforts to monitor opioid sales for suspicious orders. The subsidiary has responded to this letter. Similar subpoenas and investigations may be brought by others or the foregoing matters may be expanded or result in litigation. Since these investigations are in early stages, the Company is unable to predict outcomes or estimate a range of reasonably possible losses. New York State Opioid Stewardship Act . On October 24, 2018, the Company filed suit in the United States District Court for the Southern District of New York against the State of New York, asking the court to declare New York State’s Opioid Stewardship Act (“OSA”) unconstitutional and to enjoin its enforcement. On December 19, 2018, the court declared the OSA unconstitutional and granted the Company’s motion for preliminary injunctive relief. On January 17, 2019, the State of New York appealed the Court’s decision. The Company intends to vigorously assert its position in this matter. In April 2019, the State of New York passed its 2020 budget, which amended the OSA so that it would apply only to the sale or distribution of certain opioids in New York for 2017 and 2018 and, effective July 1, 2019, imposes an excise tax on certain opioids. Other Matters U.S. House Committee Investigation. In January 2019, the Company along with 11 other pharmaceutical companies, received a letter from the U.S. House Committee on Oversight and Reform requesting information relating to the Company's pricing strategy for Acthar Gel and related matters. The Company is cooperating with the Committee's investigation. Florida Civil Investigative Demand. In February 2019, the Company received a CID from the U.S. Attorney’s Office for the Middle District of Florida for documents related to alleged payments to healthcare providers in Florida and whether those payments violated the Anti-Kickback Statute. The Company is in the process of responding to this demand for documents and intends to cooperate with the investigation. Boston Civil Investigative Demand. In January 2019, the Company received a CID from the U.S. Attorney’s Office for the District of Massachusetts for documents related to the Company’s participation in the Medicaid Drug Rebate Program. The Company is in the process of responding to this demand for documents, and intends to cooperate with the investigation. Generic Pricing Subpoena. In March 2018, the Company received a grand jury subpoena issued by the U.S. District Court for the Eastern District of Pennsylvania pursuant to which the Antitrust Division of the DOJ is seeking documents regarding generic products and pricing, communications with generic competitors and other related matters. The Company is in the process of responding 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 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. MNK 2011 Inc. (formerly known as Mallinckrodt Inc.) v. U.S. Food and Drug Administration and United States of America. In November 2014, the FDA reclassified the Company's Methylphenidate ER in the Orange Book: Approved Drug Products with Therapeutic Equivalence ("the Orange Book"). In November 2014, the Company filed a Complaint in the U.S. District Court for the District of Maryland Greenbelt Division against the FDA and the United States (the "MD Complaint") for judicial review of the FDA’s reclassification. In July 2015, the court granted the FDA's motion to dismiss with respect to three of the five counts in the MD Complaint and granted summary judgment in favor of the FDA with respect to the two remaining counts (the “MD Order”). 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 the Company’s appeal of the MD Order in abeyance pending the outcome of the withdrawal proceedings. The parties exchanged documents and in April 2018, the Company filed its submission in support of its position in the withdrawal proceedings. A potential outcome of the withdrawal proceedings is that the Company's Methylphenidate ER products may lose their FDA approval and have to be withdrawn from the market. Therakos Subpoena. 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’ 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 responded to these requests, and continues to cooperate fully in the investigation. Questcor Subpoena. In September 2012, Questcor Pharmaceuticals Inc. ("Questcor") received a subpoena from the USAO for the Eastern District of Pennsylvania for information relating to its promotional practices related to Acthar Gel. Questcor subsequently was informed by the USAO for the Eastern District of Pennsylvania that the USAO for the Southern District of New York and the SEC were participating in the investigation to review Questcor's promotional practices and related matters related to Acthar Gel. The current investigation also relates to Questcor's provision of financial and other support to patients, including through charitable foundations, and related matters. On March 9, 2015, the Company received a "No Action" letter from the SEC regarding its review of the Company's promotional practices related to Acthar Gel. The Company continues to cooperate fully in the investigation, and is in advanced discussions with the government to resolve the portion of the investigation involving promotional practices, and has appropriate reserves for that purpose. Patent Litigation Amitiza Patent Litigation: Sun Pharmaceutical Industries, Ltd. and Sun Pharmaceutical Industries, Inc. In October 2018, Sucampo AG, Sucampo Pharmaceuticals, Inc. and Sucampo Pharma LLC, all subsidiaries of the Company, and Takeda Pharmaceutical Company Limited, Takeda Pharmaceuticals USA, Inc., and Takeda Pharmaceuticals America, Inc. (collectively "Takeda," the exclusive licensee under the patents in litigation) filed suit in the U.S. District Court for the District of New Jersey against Sun Pharmaceutical Industries, Ltd. and Sun Pharmaceutical Industries, Inc. (collectively “Sun”) alleging that Sun infringed U.S. Patent Nos. 7,795,312, 8,026,393, 8,097,653, 8,338,639, 8,389,542, 8,748,481 and 8,779,187 following receipt of a September 2018 notice from Sun concerning its submission of an ANDA containing a Paragraph IV patent certification with the FDA for a generic version of Amitiza. The Company intends to vigorously enforce its intellectual property rights relating to Amitiza. Inomax Patent Litigation: Praxair Distribution, Inc. and Praxair, Inc. (collectively “Praxair”). In February 2015, INO Therapeutics LLC and Ikaria, Inc., both 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 the Praxair litigation 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. The oral arguments in the appeal occurred on February 6, 2019. Praxair received FDA approval of their ANDA for their Noxivent nitric oxide and clearance of their 510(k) for their NOxBOXi device on October 2, 2018. An adverse outcome in the appeal of the Praxair litigation decision (or a decision by Praxair to launch at-risk prior to the appellate decision) could result in the launch of a competitive nitric oxide product before the expiration of the last of the listed patents on May 3, 2036 (November 3, 2036 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. Ofirmev Patent Litigation: Altan Pharma Ltd.. In December 2017, Mallinckrodt Hospital Products Inc. and Mallinckrodt Hospital Products IP Limited, both subsidiaries of the Company, and New Pharmatop LP, the current owner of the U.S. patents licensed exclusively by the Company, filed suit in the U.S. District Court for the District of Delaware against Altan Pharma Ltd. (“Altan”) alleging that Altan infringed U.S. Patent No. 6,992,218 ("the ‘218 patent"), U.S. Patent No. 9,399,012 ("the ‘012 patent"), U.S. Patent No. 9,610,265 ("the ‘265 patent") and U.S. Patent No. 9,987,238 (“the ‘238 patent”) following receipt of a February 2019 notice from Altan concerning its submission of a new drug application, containing a Paragraph IV patent certification with the FDA for a competing version of Ofirmev. The Company has previously asserted the ‘218 patent and maintained their validity in both litigation and proceedings at the U.S. Patent and Trademark Office. In addition, the Company has also previously asserted the ‘012, ‘265 and ‘238 patents. 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. Commercial and Securities Litigation Grifols. On March 13, 2018, Grifols initiated arbitration against the Company, alleging breach of a Manufacturing and Supply Agreement entered into between the Company's predecessor-in-interest, Cadence Pharmaceuticals Inc., and Grifols. The Company intends to vigorously defend itself in this matter. 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. Pursuant to a motion filed by the defendants, the case was transferred to the U.S. District Court for the Northern District of Illinois, and is currently proceeding as MSP Recovery Claims, Series II LLC, et al. v. Mallinckrodt ARD, Inc., et al. The Company filed a motion to dismiss on February 23, 2018. The motion to dismiss was granted on January 25, 2019. MSP was provided with leave to amend its complaint, and filed the operative First Amended Class Action Complaint on April 10, 2019 asserting claims under federal antitrust law, state antitrust laws and state consumer protection laws. 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 Gel through an exclusive distribution network. The complaint purports to be brought on behalf of all third-party payers, or their assignees, in the U.S. and its territories, who have, as indirect purchasers, in whole or in part, paid for, provided reimbursement for, and/or possess the recovery rights to reimbursement for the indirect purchase of Acthar Gel from August 1, 2007 to present. 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 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 was subsequently amended, most recently on December 8, 2017, to include an additional named plaintiff and additional defendants. As amended, the complaint purports to be brought on behalf of all self-funded entities in the U.S. and its Territories, excluding any Medicare Advantage Organizations, related entities and certain others, that paid for Acthar Gel from August 2007 to the present. The Company filed a motion to dismiss the complaint which was granted in part by the Court on January 25, 2019, dismissing one of two named plaintiffs and all claims with the exception of federal and state antitrust claims. The remaining allegation in the case is that the Company engaged in anti-competitive acts to artificially raise and maintain the price of Acthar Gel. To this end, the suit alleges that the Company unlawfully maintained a monopoly in a purported ACTH product market by acquiring the U.S. rights to Synacthen Depot; and conspired with the other named defendants by selling Acthar Gel through an exclusive distributor. The Company intends to vigorously defend itself in this matter. Local 542. On May 25, 2018, the International Union of Operating Engineers Local 542 filed a complaint against the Company and other defendants alleging improper pricing and distribution of Acthar Gel, in violation of Pennsylvania's Unfair Trade Practices and Consumer Protection Law, aiding and abetting, unjust enrichment and negligent misrepresentation. Plaintiff filed an amended complaint on August 27, 2018. 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 ESPPs, filed a derivative 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 former Chief Financial Officer Matthew K. Harbaugh ("CFO"), its Controller Kathleen A. Schaefer, and current and former directors of the Company. On September 6, 2017, plaintiff voluntarily dismissed its complaint in the Federal District Court for the Eastern District of Missouri and refiled virtually the same complaint 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, through 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 described in the following paragraph. Stipulated co-lead plaintiffs were approved by the court on March 1, 2018. Co-lead Plaintiffs filed an amended complaint on June 4, 2018 having a class period of July 14, 2014 to November 6, 2017. On July 6, 2018, this matter was stayed by agreement of the parties pending resolution of the Shenk matter below. Putative Class Action Securities Litigation (Shenk). 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 Gel 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 Gel revenues, and the exposure of Acthar Gel 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, its CEO and former 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. Lead plaintiff was designated by the court on March 9, 2018. Lead plaintiff filed a consolidated complaint on May 18, 2018, alleging a class period from July 14, 2014 to November 6, 2017, the Company, its CEO, its former CFO, and Executive Vice President, Hugh O'Neill, as defendants, and containing similar claims, but further alleging misstatements regarding payer reimbursement restrictions for Acthar Gel. On August 30, 2018, the lead plaintiff voluntarily dismissed the claims against Mr. O'Neill without prejudice. The Company intends to vigorously defend itself in this matter. Environmental Remediation and Litigation Proceedings The Company is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites, including those described below. The ultimate cost of site cleanup and timing of future cash outlays is difficult to predict, given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations and alternative cleanup methods. The Company concluded that, as of March 29, 2019 , it was probable that it would incur remediation costs in the range of $36.1 million to $86.2 million . The Company also concluded that, as of March 29, 2019 , the best estimate within this range was $61.5 million , of which $1.9 million was included in accrued and other current liabilities and the remainder was included in environmental liabilities on the unaudited condensed consolidated balance sheet as of March 29, 2019 . While it is not possible at this time to determine with certainty the ultimate outcome of these matters, the Company believes, given the information currently available, that the final resolution of all known claims, after taking into account amounts already accrued, will not have a material adverse effect on its financial condition, results of operations and cash flows. Lower Passaic River, New Jersey . The Company and approximately 70 other companies ("Cooperating Parties Group" or "CPG") are parties to a May 2007 Administrative Order on Consent ("AOC") with the Environmental Protection Agency ("EPA") to perform a remedial investigation and feasibility study ("RI/FS") of the 17-mile stretch known as the Lower Passaic River ("the River") Study Area. The Company's potential liability stems from former operations at Lodi and Belleville, New Jersey. In April 2014, the EPA issued a revised Focused Feasibility Study ("FFS"), with remedial alternatives to address cleanup of the lower 8-mile stretch of the River. The EPA estimated the cost for the remediation alternatives ranged from $365.0 million to $3.2 billion and the EPA's preferred approach had an estimated cost of $1.7 billion . In April 2015, the CPG presented a draft of the RI/FS of the River to the EPA that included alternative remedial actions for the entire 17-mile stretch of the River. On March 4, 2016, the EPA issued the Record of Decision ("ROD") for the lower 8 miles of the River with a slight modification on its preferred approach and a revised estimated cost of $1.38 billion . On October 5, 2016, the EPA announced that Occidental Chemicals Corporation ("OCC") had entered into an agreement to develop the remedial design. On August 7, 2018, the EPA finalized a buyout offer of $280,600 with the Company, limited to its former Lodi facility, for the lower 8 miles of the River. During the three months ended September 28, 2018, the Company reduced the accrual associated with this matter by $11.8 million to $26.2 million , which represents the Company's estimate of its remaining liability related to the River. Despite the issuance of the revised FFS and ROD by the EPA, the RI/FS by the CPG, and the cash out settlement by the EPA there are many uncertainties associated with the final agreed-upon remediation, potential future liabilities and the Company's allocable share of the remediation. Given those uncertainties, the amounts accrued may not be indicative of the amounts for which the Company may be ultimately responsible and will be refined as the remediation progresses. Occidental Chemical Corp. v. 21st Century Fox America, Inc. The Company and approximately 120 other companies were named as defendants in a lawsuit filed on June 30, 2018, by OCC, in which OCC seeks cost recovery and contribution for past and future costs in response to releases and threatened releases of hazardous substances into the lower 8 miles of the River. A former Mallinckrodt facility located in Jersey City, NJ (located in Newark Bay) and the former Belleville facility were named in the suit. Due to an indemnification agreement with AVON Inc., Mallinckrodt has tendered the liability for the Jersey City site to AVON Inc. and they have accepted. The Company retains a share of the liability for this suit related to the Belleville facility. A motion to dismiss several of the claims was denied by the court. While it is not possible at this time to determine with certainty the ultimate outcome of this matter, the Company believes, given the information currently available, that the ultimate resolution of all known claims, after taking into account amounts already accrued will not have a material adverse effect on its financial condition, results of operations and cash flows. Crab Orchard National Wildlife Refuge Superfund Site, near Marion, Illinois. Between 1967 and 1982, International Minerals and Chemicals Corporation ("IMC"), a predecessor in interest to the Company, leased portions of the Additional and Uncharacterized Sites ("AUS") Operable Unit at the Crab Orchard Superfund Site ("the CO Site") from the government and manufactured various explosives for use in mining and other operations. In March 2002, the Department of Justice, the U.S. Department of the Interior and the EPA (together, "the Government Agencies") issued a special notice letter to General Dynamics Ordnance and Tactical Systems, Inc. ("General Dynamics"), one of the other potentially responsible parties ("PRPs") at the CO Site, to compel General Dynamics to perform the RI/FS for the AUS Operable Unit. General Dynamics negotiated an AOC with the Government Agencies to conduct an extensive RI/FS at the CO Site under the direction of the U.S. Fish and Wildlife Service. General Dynamics asserted in August 2004 that the Company is jointly and severally liable, along with approximately eight other lessees and operators at the AUS Operable Unit, for costs associated with alleged contamination of soils and groundwater resulting from historic operations, and the parties have entered into a non-binding mediation process. While it is not possible at this time to determine with certainty the ultimate outcome of this matter, the Company believes, given the information currently available, that the final resolution of all known claims, after taking into account amounts already accrued, will not have a material adverse effect on its financial condition, results of operations and cash flows. Products Liability Litigation Beginning with lawsuits brought in July 1976, the Company is named as a defendant in personal injury lawsuits based on alleged exposure to asbestos-containing materials. A majority of the cases involve product liability claims based principally on allegations of past distribution of products containing asbestos. A limited number of the cases allege premises liability based on claims that individuals were exposed to asbestos while on the Company's property. Each case typically names dozens of corporate defendants in addition to the Company. The complaints generally seek monetary damages for personal injury or bodily injury resulting from alleged exposure to products containing asbestos. The Company's involvement in asbestos cases has been limited because it did not mine or produce asbestos. Furthermore, in the Company's experience, a large percentage of these claims have never been substantiated and have been dismissed by the courts. The Company has not suffered an ad |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 15. 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: March 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 $ 34.7 $ 24.5 $ 10.2 $ — Liabilities: Deferred compensation liabilities $ 43.4 $ — $ 43.4 $ — Contingent consideration and acquired contingent liabilities 157.7 — — 157.7 $ 201.1 $ — $ 43.4 $ 157.7 December 28, 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 $ 33.1 $ 22.4 $ 10.7 $ — Liabilities: Deferred compensation liabilities $ 38.5 $ — $ 38.5 $ — Contingent consideration and acquired contingent liabilities 151.4 — — 151.4 $ 189.9 $ — $ 38.5 $ 151.4 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. 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, Stratatech Corporation ("Stratatech"), and Ocera Therapeutics, Inc. ("Ocera"). The contingent liability associated with the acquisition of Questcor pertains to the Company's license agreement with Novartis AG and Novartis Pharma AG (collectively "Novartis") related to the development product MNK-1411. The fair value of the remaining contingent payments was measured based on the net present value of a probability-weighted assessment. As of March 29, 2019 , the total remaining payments under the license agreement shall not exceed $115.0 million . The Company determined the fair value of the contingent consideration associated with the acquisition of Questcor to be $77.1 million and $76.2 million as of March 29, 2019 and December 28, 2018 , respectively. 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 StrataGraft ® . The Company assesses the likelihood 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 $57.5 million and $53.7 million as of March 29, 2019 and December 28, 2018 , respectively. As part of the Ocera acquisition, the Company provided contingent consideration to the prior shareholders of Ocera in the form of both patient enrollment clinical study milestones for intravenous ("IV") and oral formulations of MNK-6105 and MNK-6106, which represent the IV and oral formulations, respectively, and sales-based milestones associated with MNK-6105 and MNK-6106. The Company determined the fair value of the contingent consideration based on an option pricing model to be $23.2 million and $21.5 million as of March 29, 2019 and December 28, 2018 , respectively. Of the total fair value of the contingent consideration of $157.8 million , $52.5 million was classified as current and $105.3 million was classified as non-current in the unaudited condensed consolidated balance sheet as of March 29, 2019 . The following table summarizes the fiscal 2019 activity for contingent consideration: Balance as of December 28, 2018 $ 151.4 Accretion expense 0.9 Fair value adjustments 5.5 Balance as of March 29, 2019 $ 157.8 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 March 29, 2019 and December 28, 2018 : • The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and the majority of other current assets and liabilities approximate fair value because of their short-term nature. The Company classifies cash on hand and deposits in banks, including commercial paper, money market accounts and other investments it may hold from time to time, with an original maturity 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 $18.7 million and $18.6 million as of March 29, 2019 and December 28, 2018 , (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 as part of contingent earn-out payments related to the sale of the Nuclear Imaging business in the form of preferred equity certificates during fiscal 2018. These securities are classified as held-to-maturity and are carried at amortized cost, which approximates fair value (level 3), of $9.9 million and $9.0 million as of March 29, 2019 and December 28, 2018 , respectively. These securities are included in other 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 $65.7 million and $66.4 million as of March 29, 2019 and December 28, 2018 , 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, and is therefore classified as level 1. The Company's 4.875% , 5.75% , 4.75% , 5.625% and 5.50% notes are classified as level 1, as quoted prices are available in an active market for these notes. Since the quoted market prices for the Company's term loans and 9.50% and 8.00% debentures are not available in an active market, they are classified as level 2 for purposes of developing an estimate of fair value. The fair value of the "other" loan is based on the present value of future cash flows under the terms of the agreement with future cash flows and interest rates as significant assumptions, and therefore classified as level 3. The following table presents the carrying values and estimated fair values of the Company's debt as of the end of each period: March 29, 2019 December 28, 2018 Carrying Value Fair Value Carrying Value Fair Value Level 1: 4.875% notes due April 2020 $ 700.0 $ 695.8 $ 700.0 $ 676.6 Variable-rate receivable securitization due July 2020 250.0 250.0 250.0 250.0 5.75% notes due August 2022 693.2 655.7 835.2 713.6 4.75% notes due April 2023 490.2 387.8 500.2 336.7 5.625% notes due October 2023 721.4 602.1 731.4 557.0 5.50% notes due April 2025 682.1 535.4 692.1 479.1 Revolving credit facility 405.0 405.0 220.0 220.0 Level 2: 9.50% debentures due May 2022 10.4 10.1 10.4 9.7 8.00% debentures due March 2023 4.4 4.0 4.4 3.8 Term loan due September 2024 1,528.6 1,425.2 1,613.8 1,472.4 Term loan due February 2025 405.6 384.2 597.0 548.0 Level 3: Other 2.3 2.2 2.2 2.2 Total debt $ 5,893.2 $ 5,357.5 $ 6,156.7 $ 5,269.1 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 generally does not require collateral from customers. A portion of the Company's accounts receivable outside the U.S. includes sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries' national economies. The following table shows net sales attributable to distributors that accounted for 10.0% or more of the Company's total net sales: Three Months Ended March 29, March 30, CuraScript, Inc. 27.5 % 35.6 % The following table shows accounts receivable attributable to distributors that accounted for 10.0% or more of the Company's gross accounts receivable at the end of each period: March 29, December 28, AmerisourceBergen Corporation 28.6 % 25.7 % McKesson Corporation 16.2 % 21.9 % CuraScript, Inc. 12.1 % 13.1 % The following table shows net sales attributable to products that accounted for 10.0% or more of the Company's total net sales: Three Months Ended March 29, March 30, Acthar Gel 28.3 % 32.3 % Inomax 19.1 % 18.5 % Ofirmev 12.1 % 10.9 % |
Segment Data
Segment Data | 3 Months Ended |
Mar. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Data | 16. Segment Data The Company's two reportable segments are further described below: • Specialty Brands includes innovative specialty pharmaceutical brands; and • Specialty Generics and Amitiza includes niche specialty generic drugs products, APIs and Amitiza. Selected information by reportable segment was as follows: Three Months Ended March 29, March 30, Net sales: Specialty Brands $ 547.3 $ 548.4 Specialty Generics and Amitiza 243.3 206.9 Net Sales $ 790.6 $ 755.3 Operating income: Specialty Brands $ 242.0 $ 242.1 Specialty Generics and Amitiza 57.9 34.2 Segment operating income 299.9 276.3 Unallocated amounts: Corporate and unallocated expenses (1) (45.8 ) (44.0 ) Intangible asset amortization (222.8 ) (178.0 ) Restructuring and related charges, net (4.2 ) (28.2 ) Separation costs (2) (11.7 ) — Operating income (3) $ 15.4 $ 26.1 (1) Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segment. (2) Represents costs incurred related to the separation of the Company's Specialty Generics and Amitiza segment, which are included in SG&A. (3) The amount of operating loss included in the Company's unaudited condensed statement of income for the three months ended March 30, 2018 related to the Sucampo Acquisition was $30.7 million . Included within these results were $9.1 million of amortization associated with intangibles recognized from this acquisition and $15.0 million of expense associated with fair value adjustments of acquired inventory. Net sales by product family within the Company's reportable segments were as follows: Three Months Ended March 29, March 30, Acthar Gel $ 223.9 $ 243.8 Inomax 151.1 139.8 Ofirmev 95.6 82.0 Therakos 61.8 57.4 BioVectra 12.4 10.5 Other 2.5 14.9 Specialty Brands 547.3 548.4 Hydrocodone (API) and hydrocodone-containing tablets 17.4 13.9 Oxycodone (API) and oxycodone-containing tablets 16.5 16.6 Acetaminophen (API) 46.2 49.4 Amitiza (1) 53.0 23.0 Other controlled substances 94.2 89.0 Other 16.0 15.0 Specialty Generics and Amitiza 243.3 206.9 Net Sales $ 790.6 $ 755.3 (1) |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 29, 2019 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | 17. Condensed Consolidating Financial Statements MIFSA, an indirectly 100% -owned subsidiary of Mallinckrodt plc established to own, directly or indirectly, substantially all of the operating subsidiaries of the Company, to issue debt securities and to perform treasury operations. MIFSA is the borrower under the 4.75% notes due April 2023 ("the 2013 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 2013 Notes, MIFSA as issuer of the 2013 Notes and the operating companies that represent assets of MIFSA. There are no subsidiary guarantees related to the 2013 Notes. Set forth below are the condensed consolidating financial statements for the three months ended March 29, 2019 and March 30, 2018 , and as of March 29, 2019 and December 28, 2018 . 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 March 29, 2019 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.5 $ 27.2 $ 198.1 $ — $ 225.8 Accounts receivable, net — — 575.9 — 575.9 Inventories — — 319.7 — 319.7 Prepaid expenses and other current assets 2.1 — 118.0 — 120.1 Intercompany receivables 140.5 29.2 5,925.8 (6,095.5 ) — Total current assets 143.1 56.4 7,137.5 (6,095.5 ) 1,241.5 Property, plant and equipment, net — — 977.0 — 977.0 Intangible assets, net — — 8,060.2 — 8,060.2 Investment in subsidiaries 2,652.3 12,978.3 3,813.5 (19,444.1 ) — Intercompany loans receivable 469.1 — 2,568.0 (3,037.1 ) — Other assets — — 276.8 — 276.8 Total Assets $ 3,264.5 $ 13,034.7 $ 22,833.0 $ (28,576.7 ) $ 10,555.5 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ — $ 19.8 $ — $ 19.8 Accounts payable 0.1 — 132.5 — 132.6 Accrued payroll and payroll-related costs — — 60.8 — 60.8 Accrued interest — 20.3 52.1 — 72.4 Income taxes payable — — 7.7 — 7.7 Accrued and other current liabilities 0.6 0.2 559.9 — 560.7 Intercompany payables 209.9 5,668.6 217.0 (6,095.5 ) — Total current liabilities 210.6 5,689.1 1,049.8 (6,095.5 ) 854.0 Long-term debt — 487.0 5,330.6 — 5,817.6 Pension and postretirement benefits — — 59.7 — 59.7 Environmental liabilities — — 59.6 — 59.6 Deferred income taxes — — 81.1 — 81.1 Other income tax liabilities — — 262.8 — 262.8 Intercompany loans payable — 3,037.1 — (3,037.1 ) — Other liabilities — 8.0 358.8 — 366.8 Total Liabilities 210.6 9,221.2 7,202.4 (9,132.6 ) 7,501.6 Shareholders' Equity 3,053.9 3,813.5 15,630.6 (19,444.1 ) 3,053.9 Total Liabilities and Shareholders' Equity $ 3,264.5 $ 13,034.7 $ 22,833.0 $ (28,576.7 ) $ 10,555.5 MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of December 28, 2018 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.4 $ 140.8 $ 207.7 $ — $ 348.9 Accounts receivable, net — — 623.3 — 623.3 Inventories — — 322.3 — 322.3 Prepaid expenses and other current assets 3.9 0.2 128.6 — 132.7 Intercompany receivables 131.1 29.2 1,087.9 (1,248.2 ) — Total current assets 135.4 170.2 2,369.8 (1,248.2 ) 1,427.2 Property, plant and equipment, net — — 982.0 — 982.0 Intangible assets, net — — 8,282.8 — 8,282.8 Investment in subsidiaries 2,481.6 25,506.1 8,362.1 (36,349.8 ) — Intercompany loans receivable 497.7 — 12,343.0 (12,840.7 ) — Other assets — — 185.3 — 185.3 Total Assets $ 3,114.7 $ 25,676.3 $ 32,525.0 $ (50,438.7 ) $ 10,877.3 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 22.1 $ 0.3 $ — $ 22.4 Accounts payable 0.1 — 147.4 — 147.5 Accrued payroll and payroll-related costs — — 124.0 — 124.0 Accrued interest — 48.7 28.9 — 77.6 Income taxes payable — — 25.0 — 25.0 Accrued and other current liabilities 0.6 0.4 546.2 — 547.2 Intercompany payables 226.7 827.8 193.7 (1,248.2 ) — Total current liabilities 227.4 899.0 1,065.5 (1,248.2 ) 943.7 Long-term debt — 3,566.9 2,502.3 — 6,069.2 Pension and postretirement benefits — — 60.5 — 60.5 Environmental liabilities — — 59.7 — 59.7 Deferred income taxes — — 324.3 — 324.3 Other income tax liabilities — — 228.0 — 228.0 Intercompany loans payable — 12,840.7 — (12,840.7 ) — Other liabilities — 7.6 297.0 — 304.6 Total Liabilities 227.4 17,314.2 4,537.3 (14,088.9 ) 7,990.0 Shareholders' Equity 2,887.3 8,362.1 27,987.7 (36,349.8 ) 2,887.3 Total Liabilities and Shareholders' Equity $ 3,114.7 $ 25,676.3 $ 32,525.0 $ (50,438.7 ) $ 10,877.3 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the three months ended March 29, 2019 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 790.6 $ — $ 790.6 Cost of sales 0.6 — 454.9 — 455.5 Gross (loss) profit (0.6 ) — 335.7 — 335.1 Selling, general and administrative expenses 11.3 0.2 218.7 — 230.2 Research and development expenses 1.4 — 83.9 — 85.3 Restructuring charges, net — — 4.2 — 4.2 Operating (loss) income (13.3 ) (0.2 ) 28.9 — 15.4 Interest expense (11.1 ) (70.3 ) (39.0 ) 37.7 (82.7 ) Interest income 12.2 0.1 26.9 (37.7 ) 1.5 Other income, net 3.2 1.2 11.9 — 16.3 Intercompany fees (6.5 ) — 6.5 — — Equity in net income of subsidiaries 169.3 298.4 229.0 (696.7 ) — Income (loss) from continuing operations before income taxes 153.8 229.2 264.2 (696.7 ) (49.5 ) Income tax benefit (1.1 ) — (203.6 ) — (204.7 ) Income from continuing operations 154.9 229.2 467.8 (696.7 ) 155.2 Loss from discontinued operations, net of income taxes — (0.2 ) (0.1 ) — (0.3 ) Net income 154.9 229.0 467.7 (696.7 ) 154.9 Other comprehensive income, net of tax 1.3 1.3 2.4 (3.7 ) 1.3 Comprehensive income $ 156.2 $ 230.3 $ 470.1 $ (700.4 ) $ 156.2 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the three months ended March 30, 2018 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 755.3 $ — $ 755.3 Cost of sales 0.2 — 407.6 — 407.8 Gross (loss) profit (0.2 ) — 347.7 — 347.5 Selling, general and administrative expenses 6.4 0.2 204.6 — 211.2 Research and development expenses 0.5 — 81.5 — 82.0 Restructuring charges, net — — 28.2 — 28.2 Operating (loss) income (7.1 ) (0.2 ) 33.4 — 26.1 Interest expense (3.0 ) (101.2 ) (7.1 ) 19.9 (91.4 ) Interest income 2.2 1.7 19.2 (19.9 ) 3.2 Other income (expense), net 6.1 2.8 (4.3 ) — 4.6 Intercompany fees (4.5 ) — 4.5 — — Equity in net income of subsidiaries (12.9 ) 175.4 79.2 (241.7 ) — (Loss) income from continuing operations before income taxes (19.2 ) 78.5 124.9 (241.7 ) (57.5 ) Income tax benefit (1.2 ) (0.8 ) (34.6 ) — (36.6 ) (Loss) income from continuing operations (18.0 ) 79.3 159.5 (241.7 ) (20.9 ) (Loss) income from discontinued operations, net of income taxes — (0.1 ) 3.0 — 2.9 Net (loss) income (18.0 ) 79.2 162.5 (241.7 ) (18.0 ) Other comprehensive loss, net of tax (2.4 ) (2.4 ) (5.2 ) 7.6 (2.4 ) Comprehensive (loss) income $ (20.4 ) $ 76.8 $ 157.3 $ (234.1 ) $ (20.4 ) MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 29, 2019 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Cash Flows From Operating Activities: Net cash from operating activities $ (6.6 ) $ 75.2 $ 95.9 $ — $ 164.5 Cash Flows From Investing Activities: Capital expenditures — — (39.8 ) — (39.8 ) Acquisitions, net of cash — — — — — Proceeds from divestitures, net of cash — — — — — Intercompany loan investment, net 31.3 — (337.4 ) 306.1 — Investment in subsidiary — (480.8 ) — 480.8 — Other — — 0.4 — 0.4 Net cash from investing activities 31.3 (480.8 ) (376.8 ) 786.9 (39.4 ) Cash Flows From Financing Activities: Issuance of external debt — — 200.0 — 200.0 Repayment of external debt and capital lease obligation — (39.0 ) (409.7 ) — (448.7 ) Debt financing costs — — — — — Proceeds from exercise of share options 0.3 — — — 0.3 Repurchase of shares (0.5 ) — — — (0.5 ) Intercompany loan borrowings, net (24.9 ) 331.0 — (306.1 ) — Intercompany dividends — — — — — Capital contribution — — 480.8 (480.8 ) — Other 0.5 — — — 0.5 Net cash from financing activities (24.6 ) 292.0 271.1 (786.9 ) (248.4 ) Effect of currency rate changes on cash — — 0.3 — 0.3 Net change in cash, cash equivalents and restricted cash 0.1 (113.6 ) (9.5 ) — (123.0 ) Cash, cash equivalents and restricted cash at beginning of period 0.4 140.8 226.3 — 367.5 Cash, cash equivalents and restricted cash at end of period $ 0.5 $ 27.2 $ 216.8 $ — $ 244.5 Cash and cash equivalents at end of period $ 0.5 $ 27.2 $ 198.1 $ — $ 225.8 Restricted Cash, included in other assets at end of period — — 18.7 — 18.7 Cash, cash equivalents and restricted cash at end of period $ 0.5 $ 27.2 $ 216.8 $ — $ 244.5 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 30, 2018 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Cash Flows From Operating Activities: Net cash from operating activities $ 459.0 $ 201.1 $ 776.5 $ (1,418.8 ) $ 17.8 Cash Flows From Investing Activities: Capital expenditures — — (34.3 ) — (34.3 ) Acquisitions, net of cash — — (699.9 ) — (699.9 ) Proceeds from divestitures, net of cash — — 298.3 — 298.3 Intercompany loan investment, net (412.2 ) (85.3 ) 430.7 66.8 — Investment in subsidiary — (121.8 ) — 121.8 — Other — — 8.3 — 8.3 Net cash from investing activities (412.2 ) (207.1 ) 3.1 188.6 (427.6 ) Cash Flows From Financing Activities: Issuance of external debt — 600.0 26.8 — 626.8 Repayment of external debt and capital lease obligation — (530.6 ) (371.6 ) — (902.2 ) Debt financing costs — (12.0 ) — — (12.0 ) Proceeds from exercise of share options — — — — — Repurchase of shares (46.6 ) — — — (46.6 ) Intercompany loan borrowings, net — 66.8 — (66.8 ) — Intercompany dividends — (814.2 ) (604.6 ) 1,418.8 — Capital contribution — — 121.8 (121.8 ) — Other 0.5 — (5.3 ) — (4.8 ) Net cash from financing activities (46.1 ) (690.0 ) (832.9 ) 1,230.2 (338.8 ) Effect of currency rate changes on cash — — (0.3 ) — (0.3 ) Net change in cash, cash equivalents and restricted cash 0.7 (696.0 ) (53.6 ) — (748.9 ) Cash, cash equivalents and restricted cash at beginning of period 0.7 908.8 369.6 — 1,279.1 Cash, cash equivalents and restricted cash at end of period $ 1.4 $ 212.8 $ 316.0 $ — $ 530.2 Cash and cash equivalents at end of period $ 1.4 $ 212.8 $ 297.7 $ — $ 511.9 Restricted Cash, included in other assets at end of period — — 18.3 — 18.3 Cash, cash equivalents and restricted cash at end of period $ 1.4 $ 212.8 $ 316.0 $ — $ 530.2 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events Financing Activities Subsequent to March 29, 2019 and up through the date of this filing, the Company repurchased fixed-rate debt that aggregated to a principal amount of $28.1 million . Commitments and Contingencies Certain litigation matters occurred during the three months ended March 29, 2019 |
Leases (Policies)
Leases (Policies) | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company assesses all contracts at inception to determine whether a lease exists. The Company leases office space, manufacturing and warehousing facilities, equipment and vehicles, all of which are operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. The Company's lease agreements do not contain variable lease payments or any material residual value guarantees. Lease assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term as of the commencement date. As the Company's leases do not generally provide an implicit rate, the Company utilized its incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. The Company used the incremental borrowing rate on December 29, 2018 for leases that commenced prior to that date. Most leases |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Disaggregation of Revenue [Line Items] | |
Sales Reserves Rollforward | The following table reflects activity in the Company's sales reserve accounts: Rebates and Chargebacks Product Returns Other Sales Deductions Total Balance as of December 29, 2017 $ 327.4 $ 34.5 $ 14.7 $ 376.6 Provisions 489.5 13.8 14.3 517.6 Payments or credits (744.6 ) (13.3 ) (15.2 ) (773.1 ) Balance as of March 30, 2018 $ 72.3 $ 35.0 $ 13.8 $ 121.1 Balance as of December 28, 2018 $ 354.3 $ 34.0 $ 17.1 $ 405.4 Provisions 602.9 6.2 17.7 626.8 Payments or credits (805.8 ) (8.2 ) (12.4 ) (826.4 ) Balance as of March 29, 2019 $ 151.4 $ 32.0 $ 22.4 $ 205.8 |
Disaggregation of Revenue | Product sales transferred to customers at a point in time and over time are as follows: Three Months Ended March 29, 2019 March 30, Product sales transferred at a point in time 80.7 % 81.3 % Product sales transferred over time 19.3 % 18.7 % |
Contract with Customer, Timing of Satisfaction of Performance Obligation and Payment | Transaction price allocated to the remaining performance obligations The following table includes estimated revenue from contracts extending greater than one year for certain of the Company's hospital products that are expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 29, 2019 : Remainder of Fiscal 2019 $ 122.5 Fiscal 2020 148.8 Fiscal 2021 55.3 Fiscal 2022 9.2 Thereafter 6.2 |
Contract with Customer, Asset and Liability | The following table reflects the balance of the Company's contract liabilities at the end of the respective periods: March 29, 2019 December 28, Accrued and other current liabilities $ 20.0 $ 20.4 Other liabilities 15.7 15.1 Contract liabilities $ 35.7 $ 35.5 |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges by Segment | Net restructuring and related charges by segment were as follows: Three Months Ended March 29, March 30, Specialty Brands $ — $ 0.5 Specialty Generics and Amitiza 4.0 5.1 Corporate 0.2 22.6 Restructuring and related charges, net 4.2 28.2 Less: accelerated depreciation — — Restructuring charges, net $ 4.2 $ 28.2 |
Schedule of Net Restructuring and Related Charges | Net restructuring and related charges by program were comprised of the following: Three Months Ended March 29, March 30, 2018 Mallinckrodt Program $ 3.5 $ — 2016 Mallinckrodt Program 0.7 8.2 Acquisition programs — 20.0 Total 4.2 28.2 Less: non-cash charges, including accelerated depreciation — — Total charges expected to be settled in cash $ 4.2 $ 28.2 |
Schedule of Restructuring Reserves Reconciliation by Program | The following table summarizes cash activity for restructuring reserves, substantially all of which related to contract termination costs, employee severance and benefits and exiting of certain facilities: 2018 Mallinckrodt Program 2016 Mallinckrodt Program Acquisition Programs Total Balance as of December 28, 2018 $ 2.2 $ 61.0 $ 7.8 $ 71.0 Charges 3.5 0.7 — 4.2 Cash payments (1.2 ) (8.7 ) (0.8 ) (10.7 ) Reclassifications (1) — (5.0 ) (4.3 ) (9.3 ) Currency translation — (0.5 ) — (0.5 ) Balance as of March 29, 2019 $ 4.5 $ 47.5 $ 2.7 $ 54.7 (1) |
Schedule of Restructuring Charges Incurred Cumulative to Date | Net restructuring and related charges incurred cumulative to date related to the 2018 and 2016 Mallinckrodt Programs as of March 29, 2019 were as follows: 2018 Mallinckrodt Program 2016 Mallinckrodt Program Specialty Brands $ 3.0 $ 81.7 Specialty Generics and Amitiza 3.5 15.1 Corporate 2.2 26.1 $ 8.7 $ 122.9 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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 March 29, March 30, Basic 83.5 86.1 Dilutive impact of restricted share units and share options 1.1 — Diluted 84.6 86.1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories were comprised of the following at the end of each period: March 29, December 28, Raw materials and supplies $ 64.2 $ 69.2 Work in process 168.6 167.6 Finished goods 86.9 85.5 $ 319.7 $ 322.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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: March 29, December 28, 2018 Property, plant and equipment, gross $ 1,954.6 $ 1,936.2 Less: accumulated depreciation (977.6 ) (954.2 ) Property, plant and equipment, net $ 977.0 $ 982.0 |
Depreciation of Fixed Assets | Depreciation expense for property, plant and equipment was as follows: Three Months Ended March 29, March 30, 2018 Depreciation expense $ 24.8 $ 20.6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities [Table Text Block] | Lease assets and liabilities are reported in the following unaudited condensed consolidated balance sheet captions in the amounts shown: March 29, Other assets $ 80.8 Accrued and other current liabilities $ 19.8 Other liabilities 76.9 Total lease liabilities $ 96.7 |
Lease, Cost [Table Text Block] | Dependent on the nature of the leased asset, lease expense is included within cost of sales or selling, general and administrative expenses ("SG&A"). The components of lease expense were as follows: Three Months Ended March 29, Lease cost: Operating lease cost $ 4.9 Short-term lease cost 1.1 Sublease income (0.2 ) Total lease cost $ 5.8 Lease terms and discount rates were as follows: March 29, Weighted-average remaining lease term (in years) - operating lease 7.4 Weighted-average discount rate - operating leases 3.5 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities as of March 29, 2019 were as follows: Operating Leases Remainder of Fiscal 2019 $ 17.8 Fiscal 2020 21.5 Fiscal 2021 15.9 Fiscal 2022 12.2 Fiscal 2023 11.7 Thereafter 39.3 Total lease payments 118.4 Less: Interest (21.7 ) Present value of lease liabilities $ 96.7 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Other supplemental cash flow information related to leases were as follows: Three Months Ended March 29, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5.5 Lease assets obtained in exchange for lease obligations: Operating leases 1.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets at the end of each period was as follows: March 29, 2019 December 28, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 10,467.9 $ 3,200.8 $ 10,467.9 $ 2,980.6 License agreements 120.1 71.1 120.1 70.1 Trademarks 81.9 19.1 81.9 18.1 Customer relationships 27.9 14.9 27.5 14.1 Total $ 10,697.8 $ 3,305.9 $ 10,697.4 $ 3,082.9 Non-Amortizable: Trademarks $ 35.0 $ 35.0 In-process research and development 633.3 633.3 Total $ 668.3 $ 668.3 |
Intangible Asset Amortization Expense | Intangible asset amortization expense was as follows: Three Months Ended March 29, 2019 March 30, 2018 Amortization expense $ 222.8 $ 178.0 |
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 2019 $ 632.1 Fiscal 2020 758.1 Fiscal 2021 661.2 Fiscal 2022 588.6 Fiscal 2023 584.4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt including Capital Lease Obligation | Debt was comprised of the following at the end of each period: March 29, 2019 December 28, 2018 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: Term loan due September 2024 $ 15.6 $ 0.2 $ 16.4 $ 0.2 Term loan due February 2025 4.1 0.1 6.0 0.1 Other 0.4 — 0.3 — Total current debt 20.1 0.3 22.7 0.3 Long-term debt: 4.875% notes due April 2020 700.0 2.6 700.0 3.2 Variable-rate receivable securitization due July 2020 250.0 0.3 250.0 0.4 9.50% debentures due May 2022 10.4 — 10.4 — 5.75% notes due August 2022 693.2 5.4 835.2 7.0 8.00% debentures due March 2023 4.4 — 4.4 — 4.75% notes due April 2023 490.2 3.2 500.2 3.5 5.625% notes due October 2023 721.4 7.4 731.4 8.0 Term loan due September 2024 1,513.0 18.0 1,597.4 19.8 Term loan due February 2025 401.5 7.1 591.0 10.7 5.50% notes due April 2025 682.1 7.3 692.1 7.7 Revolving credit facility 405.0 4.2 220.0 4.5 Other 1.9 — 1.9 — Total long-term debt 5,873.1 55.5 6,134.0 64.8 Total debt $ 5,893.2 $ 55.8 $ 6,156.7 $ 65.1 |
Schedule of Applicable Interest Rate on Variable-rate Debt | As of March 29, 2019 , the applicable interest rate and outstanding borrowings on the Company's variable-rate debt instruments were as follows: Applicable interest rate Outstanding borrowings Term loan due September 2024 5.35 % $ 1,528.6 Term loan due February 2025 5.69 % 405.6 Variable-rate receivable securitization 3.39 % 250.0 Revolving credit facility 4.85 % 405.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: Currency Translation Unrecognized Loss on Derivatives Unrecognized Gain (Loss) on Benefit Plans Accumulated Other Comprehensive Loss Balance as of December 28, 2018 $ (20.4 ) $ (4.0 ) $ 0.1 $ (24.3 ) Impact of accounting standard adoptions — — 0.5 0.5 Other comprehensive income before reclassifications 1.4 — 0.1 1.5 Amounts reclassified from accumulated other comprehensive loss — 0.2 (0.4 ) (0.2 ) Net current period other comprehensive income (loss) 1.4 0.2 (0.3 ) 1.3 Balance as of March 29, 2019 $ (19.0 ) $ (3.8 ) $ 0.3 $ (22.5 ) Currency Translation Unrecognized Loss on Derivatives Unrecognized Loss on Benefit Plans Accumulated Other Comprehensive Loss Balance as of December 29, 2017 $ (8.2 ) $ (4.7 ) $ (1.5 ) $ (14.4 ) Other comprehensive loss before reclassifications (2.3 ) — — (2.3 ) Amounts reclassified from accumulated other comprehensive loss — 0.4 (0.5 ) (0.1 ) Net current period other comprehensive (loss) income (2.3 ) 0.4 (0.5 ) (2.4 ) Balance as of March 30, 2018 $ (10.5 ) $ (4.3 ) $ (2.0 ) $ (16.8 ) |
Schedule of Reclassifications out of Accumulated Other Comprehensive Loss | The following summarizes reclassifications from accumulated other comprehensive loss: Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended March 29, March 30, Line Item in the Unaudited Condensed Consolidated Statement of Income Amortization and other of unrealized loss on derivatives $ 0.2 $ 0.4 Interest expense Amortization of pension and post-retirement benefit plans: Net actuarial loss 0.1 0.1 Other income, net Prior service credit (0.5 ) (0.5 ) Other income, net Plan settlements — (0.1 ) Other income, net Total reclassifications for the period $ (0.2 ) $ (0.1 ) |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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: March 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 $ 34.7 $ 24.5 $ 10.2 $ — Liabilities: Deferred compensation liabilities $ 43.4 $ — $ 43.4 $ — Contingent consideration and acquired contingent liabilities 157.7 — — 157.7 $ 201.1 $ — $ 43.4 $ 157.7 December 28, 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 $ 33.1 $ 22.4 $ 10.7 $ — Liabilities: Deferred compensation liabilities $ 38.5 $ — $ 38.5 $ — Contingent consideration and acquired contingent liabilities 151.4 — — 151.4 $ 189.9 $ — $ 38.5 $ 151.4 |
Schedule of Reconciliation of Changes in Fair Value of Contingent Liabilities | The following table summarizes the fiscal 2019 activity for contingent consideration: Balance as of December 28, 2018 $ 151.4 Accretion expense 0.9 Fair value adjustments 5.5 Balance as of March 29, 2019 $ 157.8 |
Schedule of Carrying Amount and Fair Value of Long-term Debt | The following table presents the carrying values and estimated fair values of the Company's debt as of the end of each period: March 29, 2019 December 28, 2018 Carrying Value Fair Value Carrying Value Fair Value Level 1: 4.875% notes due April 2020 $ 700.0 $ 695.8 $ 700.0 $ 676.6 Variable-rate receivable securitization due July 2020 250.0 250.0 250.0 250.0 5.75% notes due August 2022 693.2 655.7 835.2 713.6 4.75% notes due April 2023 490.2 387.8 500.2 336.7 5.625% notes due October 2023 721.4 602.1 731.4 557.0 5.50% notes due April 2025 682.1 535.4 692.1 479.1 Revolving credit facility 405.0 405.0 220.0 220.0 Level 2: 9.50% debentures due May 2022 10.4 10.1 10.4 9.7 8.00% debentures due March 2023 4.4 4.0 4.4 3.8 Term loan due September 2024 1,528.6 1,425.2 1,613.8 1,472.4 Term loan due February 2025 405.6 384.2 597.0 548.0 Level 3: Other 2.3 2.2 2.2 2.2 Total debt $ 5,893.2 $ 5,357.5 $ 6,156.7 $ 5,269.1 |
Schedules of Concentration of Risk | The following table shows net sales attributable to distributors that accounted for 10.0% or more of the Company's total net sales: Three Months Ended March 29, March 30, CuraScript, Inc. 27.5 % 35.6 % The following table shows accounts receivable attributable to distributors that accounted for 10.0% or more of the Company's gross accounts receivable at the end of each period: March 29, December 28, AmerisourceBergen Corporation 28.6 % 25.7 % McKesson Corporation 16.2 % 21.9 % CuraScript, Inc. 12.1 % 13.1 % The following table shows net sales attributable to products that accounted for 10.0% or more of the Company's total net sales: Three Months Ended March 29, March 30, Acthar Gel 28.3 % 32.3 % Inomax 19.1 % 18.5 % Ofirmev 12.1 % 10.9 % |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Reportable Segment | Three Months Ended March 29, March 30, Net sales: Specialty Brands $ 547.3 $ 548.4 Specialty Generics and Amitiza 243.3 206.9 Net Sales $ 790.6 $ 755.3 Operating income: Specialty Brands $ 242.0 $ 242.1 Specialty Generics and Amitiza 57.9 34.2 Segment operating income 299.9 276.3 Unallocated amounts: Corporate and unallocated expenses (1) (45.8 ) (44.0 ) Intangible asset amortization (222.8 ) (178.0 ) Restructuring and related charges, net (4.2 ) (28.2 ) Separation costs (2) (11.7 ) — Operating income (3) $ 15.4 $ 26.1 (1) Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segment. (2) Represents costs incurred related to the separation of the Company's Specialty Generics and Amitiza segment, which are included in SG&A. (3) The amount of operating loss included in the Company's unaudited condensed statement of income for the three months ended March 30, 2018 related to the Sucampo Acquisition was $30.7 million . Included within these results were $9.1 million of amortization associated with intangibles recognized from this acquisition and $15.0 million of expense associated with fair value adjustments of acquired inventory. |
Schedule of Net Sales from External Customers by Products | Net sales by product family within the Company's reportable segments were as follows: Three Months Ended March 29, March 30, Acthar Gel $ 223.9 $ 243.8 Inomax 151.1 139.8 Ofirmev 95.6 82.0 Therakos 61.8 57.4 BioVectra 12.4 10.5 Other 2.5 14.9 Specialty Brands 547.3 548.4 Hydrocodone (API) and hydrocodone-containing tablets 17.4 13.9 Oxycodone (API) and oxycodone-containing tablets 16.5 16.6 Acetaminophen (API) 46.2 49.4 Amitiza (1) 53.0 23.0 Other controlled substances 94.2 89.0 Other 16.0 15.0 Specialty Generics and Amitiza 243.3 206.9 Net Sales $ 790.6 $ 755.3 (1) |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Condensed Consolidating Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of March 29, 2019 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.5 $ 27.2 $ 198.1 $ — $ 225.8 Accounts receivable, net — — 575.9 — 575.9 Inventories — — 319.7 — 319.7 Prepaid expenses and other current assets 2.1 — 118.0 — 120.1 Intercompany receivables 140.5 29.2 5,925.8 (6,095.5 ) — Total current assets 143.1 56.4 7,137.5 (6,095.5 ) 1,241.5 Property, plant and equipment, net — — 977.0 — 977.0 Intangible assets, net — — 8,060.2 — 8,060.2 Investment in subsidiaries 2,652.3 12,978.3 3,813.5 (19,444.1 ) — Intercompany loans receivable 469.1 — 2,568.0 (3,037.1 ) — Other assets — — 276.8 — 276.8 Total Assets $ 3,264.5 $ 13,034.7 $ 22,833.0 $ (28,576.7 ) $ 10,555.5 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ — $ 19.8 $ — $ 19.8 Accounts payable 0.1 — 132.5 — 132.6 Accrued payroll and payroll-related costs — — 60.8 — 60.8 Accrued interest — 20.3 52.1 — 72.4 Income taxes payable — — 7.7 — 7.7 Accrued and other current liabilities 0.6 0.2 559.9 — 560.7 Intercompany payables 209.9 5,668.6 217.0 (6,095.5 ) — Total current liabilities 210.6 5,689.1 1,049.8 (6,095.5 ) 854.0 Long-term debt — 487.0 5,330.6 — 5,817.6 Pension and postretirement benefits — — 59.7 — 59.7 Environmental liabilities — — 59.6 — 59.6 Deferred income taxes — — 81.1 — 81.1 Other income tax liabilities — — 262.8 — 262.8 Intercompany loans payable — 3,037.1 — (3,037.1 ) — Other liabilities — 8.0 358.8 — 366.8 Total Liabilities 210.6 9,221.2 7,202.4 (9,132.6 ) 7,501.6 Shareholders' Equity 3,053.9 3,813.5 15,630.6 (19,444.1 ) 3,053.9 Total Liabilities and Shareholders' Equity $ 3,264.5 $ 13,034.7 $ 22,833.0 $ (28,576.7 ) $ 10,555.5 MALLINCKRODT PLC CONDENSED CONSOLIDATING BALANCE SHEET As of December 28, 2018 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 0.4 $ 140.8 $ 207.7 $ — $ 348.9 Accounts receivable, net — — 623.3 — 623.3 Inventories — — 322.3 — 322.3 Prepaid expenses and other current assets 3.9 0.2 128.6 — 132.7 Intercompany receivables 131.1 29.2 1,087.9 (1,248.2 ) — Total current assets 135.4 170.2 2,369.8 (1,248.2 ) 1,427.2 Property, plant and equipment, net — — 982.0 — 982.0 Intangible assets, net — — 8,282.8 — 8,282.8 Investment in subsidiaries 2,481.6 25,506.1 8,362.1 (36,349.8 ) — Intercompany loans receivable 497.7 — 12,343.0 (12,840.7 ) — Other assets — — 185.3 — 185.3 Total Assets $ 3,114.7 $ 25,676.3 $ 32,525.0 $ (50,438.7 ) $ 10,877.3 Liabilities and Shareholders' Equity Current Liabilities: Current maturities of long-term debt $ — $ 22.1 $ 0.3 $ — $ 22.4 Accounts payable 0.1 — 147.4 — 147.5 Accrued payroll and payroll-related costs — — 124.0 — 124.0 Accrued interest — 48.7 28.9 — 77.6 Income taxes payable — — 25.0 — 25.0 Accrued and other current liabilities 0.6 0.4 546.2 — 547.2 Intercompany payables 226.7 827.8 193.7 (1,248.2 ) — Total current liabilities 227.4 899.0 1,065.5 (1,248.2 ) 943.7 Long-term debt — 3,566.9 2,502.3 — 6,069.2 Pension and postretirement benefits — — 60.5 — 60.5 Environmental liabilities — — 59.7 — 59.7 Deferred income taxes — — 324.3 — 324.3 Other income tax liabilities — — 228.0 — 228.0 Intercompany loans payable — 12,840.7 — (12,840.7 ) — Other liabilities — 7.6 297.0 — 304.6 Total Liabilities 227.4 17,314.2 4,537.3 (14,088.9 ) 7,990.0 Shareholders' Equity 2,887.3 8,362.1 27,987.7 (36,349.8 ) 2,887.3 Total Liabilities and Shareholders' Equity $ 3,114.7 $ 25,676.3 $ 32,525.0 $ (50,438.7 ) $ 10,877.3 |
Schedule of Condensed Consolidating Statements of Comprehensive Income | MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the three months ended March 29, 2019 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 790.6 $ — $ 790.6 Cost of sales 0.6 — 454.9 — 455.5 Gross (loss) profit (0.6 ) — 335.7 — 335.1 Selling, general and administrative expenses 11.3 0.2 218.7 — 230.2 Research and development expenses 1.4 — 83.9 — 85.3 Restructuring charges, net — — 4.2 — 4.2 Operating (loss) income (13.3 ) (0.2 ) 28.9 — 15.4 Interest expense (11.1 ) (70.3 ) (39.0 ) 37.7 (82.7 ) Interest income 12.2 0.1 26.9 (37.7 ) 1.5 Other income, net 3.2 1.2 11.9 — 16.3 Intercompany fees (6.5 ) — 6.5 — — Equity in net income of subsidiaries 169.3 298.4 229.0 (696.7 ) — Income (loss) from continuing operations before income taxes 153.8 229.2 264.2 (696.7 ) (49.5 ) Income tax benefit (1.1 ) — (203.6 ) — (204.7 ) Income from continuing operations 154.9 229.2 467.8 (696.7 ) 155.2 Loss from discontinued operations, net of income taxes — (0.2 ) (0.1 ) — (0.3 ) Net income 154.9 229.0 467.7 (696.7 ) 154.9 Other comprehensive income, net of tax 1.3 1.3 2.4 (3.7 ) 1.3 Comprehensive income $ 156.2 $ 230.3 $ 470.1 $ (700.4 ) $ 156.2 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the three months ended March 30, 2018 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 755.3 $ — $ 755.3 Cost of sales 0.2 — 407.6 — 407.8 Gross (loss) profit (0.2 ) — 347.7 — 347.5 Selling, general and administrative expenses 6.4 0.2 204.6 — 211.2 Research and development expenses 0.5 — 81.5 — 82.0 Restructuring charges, net — — 28.2 — 28.2 Operating (loss) income (7.1 ) (0.2 ) 33.4 — 26.1 Interest expense (3.0 ) (101.2 ) (7.1 ) 19.9 (91.4 ) Interest income 2.2 1.7 19.2 (19.9 ) 3.2 Other income (expense), net 6.1 2.8 (4.3 ) — 4.6 Intercompany fees (4.5 ) — 4.5 — — Equity in net income of subsidiaries (12.9 ) 175.4 79.2 (241.7 ) — (Loss) income from continuing operations before income taxes (19.2 ) 78.5 124.9 (241.7 ) (57.5 ) Income tax benefit (1.2 ) (0.8 ) (34.6 ) — (36.6 ) (Loss) income from continuing operations (18.0 ) 79.3 159.5 (241.7 ) (20.9 ) (Loss) income from discontinued operations, net of income taxes — (0.1 ) 3.0 — 2.9 Net (loss) income (18.0 ) 79.2 162.5 (241.7 ) (18.0 ) Other comprehensive loss, net of tax (2.4 ) (2.4 ) (5.2 ) 7.6 (2.4 ) Comprehensive (loss) income $ (20.4 ) $ 76.8 $ 157.3 $ (234.1 ) $ (20.4 ) |
Schedule of Condensed Consolidating Statements of Cash Flows | MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 29, 2019 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Cash Flows From Operating Activities: Net cash from operating activities $ (6.6 ) $ 75.2 $ 95.9 $ — $ 164.5 Cash Flows From Investing Activities: Capital expenditures — — (39.8 ) — (39.8 ) Acquisitions, net of cash — — — — — Proceeds from divestitures, net of cash — — — — — Intercompany loan investment, net 31.3 — (337.4 ) 306.1 — Investment in subsidiary — (480.8 ) — 480.8 — Other — — 0.4 — 0.4 Net cash from investing activities 31.3 (480.8 ) (376.8 ) 786.9 (39.4 ) Cash Flows From Financing Activities: Issuance of external debt — — 200.0 — 200.0 Repayment of external debt and capital lease obligation — (39.0 ) (409.7 ) — (448.7 ) Debt financing costs — — — — — Proceeds from exercise of share options 0.3 — — — 0.3 Repurchase of shares (0.5 ) — — — (0.5 ) Intercompany loan borrowings, net (24.9 ) 331.0 — (306.1 ) — Intercompany dividends — — — — — Capital contribution — — 480.8 (480.8 ) — Other 0.5 — — — 0.5 Net cash from financing activities (24.6 ) 292.0 271.1 (786.9 ) (248.4 ) Effect of currency rate changes on cash — — 0.3 — 0.3 Net change in cash, cash equivalents and restricted cash 0.1 (113.6 ) (9.5 ) — (123.0 ) Cash, cash equivalents and restricted cash at beginning of period 0.4 140.8 226.3 — 367.5 Cash, cash equivalents and restricted cash at end of period $ 0.5 $ 27.2 $ 216.8 $ — $ 244.5 Cash and cash equivalents at end of period $ 0.5 $ 27.2 $ 198.1 $ — $ 225.8 Restricted Cash, included in other assets at end of period — — 18.7 — 18.7 Cash, cash equivalents and restricted cash at end of period $ 0.5 $ 27.2 $ 216.8 $ — $ 244.5 MALLINCKRODT PLC CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 30, 2018 (unaudited, in millions) Mallinckrodt plc Mallinckrodt International Finance S.A. Other Subsidiaries Eliminations Consolidated Cash Flows From Operating Activities: Net cash from operating activities $ 459.0 $ 201.1 $ 776.5 $ (1,418.8 ) $ 17.8 Cash Flows From Investing Activities: Capital expenditures — — (34.3 ) — (34.3 ) Acquisitions, net of cash — — (699.9 ) — (699.9 ) Proceeds from divestitures, net of cash — — 298.3 — 298.3 Intercompany loan investment, net (412.2 ) (85.3 ) 430.7 66.8 — Investment in subsidiary — (121.8 ) — 121.8 — Other — — 8.3 — 8.3 Net cash from investing activities (412.2 ) (207.1 ) 3.1 188.6 (427.6 ) Cash Flows From Financing Activities: Issuance of external debt — 600.0 26.8 — 626.8 Repayment of external debt and capital lease obligation — (530.6 ) (371.6 ) — (902.2 ) Debt financing costs — (12.0 ) — — (12.0 ) Proceeds from exercise of share options — — — — — Repurchase of shares (46.6 ) — — — (46.6 ) Intercompany loan borrowings, net — 66.8 — (66.8 ) — Intercompany dividends — (814.2 ) (604.6 ) 1,418.8 — Capital contribution — — 121.8 (121.8 ) — Other 0.5 — (5.3 ) — (4.8 ) Net cash from financing activities (46.1 ) (690.0 ) (832.9 ) 1,230.2 (338.8 ) Effect of currency rate changes on cash — — (0.3 ) — (0.3 ) Net change in cash, cash equivalents and restricted cash 0.7 (696.0 ) (53.6 ) — (748.9 ) Cash, cash equivalents and restricted cash at beginning of period 0.7 908.8 369.6 — 1,279.1 Cash, cash equivalents and restricted cash at end of period $ 1.4 $ 212.8 $ 316.0 $ — $ 530.2 Cash and cash equivalents at end of period $ 1.4 $ 212.8 $ 297.7 $ — $ 511.9 Restricted Cash, included in other assets at end of period — — 18.3 — 18.3 Cash, cash equivalents and restricted cash at end of period $ 1.4 $ 212.8 $ 316.0 $ — $ 530.2 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 29, 2018 |
Operating Lease, Right-of-Use Asset | $ 80.8 | |
Operating Lease, Liability | $ 96.7 | |
Accounting Standards Update 2018-02 [Member] | Retained Earnings (Deficit) | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0.5 | |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Right-of-Use Asset | 83.1 | |
Operating Lease, Liability | $ 99.7 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Future Performance Obligations (Details) $ in Millions | Mar. 29, 2019USD ($) |
Remainder of Fiscal 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 122.5 |
Fiscal 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 148.8 |
Fiscal 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 55.3 |
Fiscal 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 9.2 |
Thereafter | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 6.2 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 29, 2019 | Mar. 30, 2018 | Dec. 28, 2018 | Dec. 29, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue Reserves | $ 205.8 | $ 121.1 | $ 405.4 | $ 376.6 |
Revenue Reserve Provision | 626.8 | 517.6 | ||
Revenue Reserve Payments or Credits | (826.4) | (773.1) | ||
Deferred Revenue, Revenue Recognized | 4.5 | |||
Contract with Customer, Liability | 35.7 | 35.5 | ||
Contract with Customer, Liability, Current | 20 | 20.4 | ||
Capitalized Contract Cost, Gross | 28.4 | 28.4 | ||
Capitalized Contract Cost, Amortization | 1.5 | 1.6 | ||
Contract with Customer, Liability, Noncurrent | 15.7 | 15.1 | ||
Net sales | $ 790.6 | $ 755.3 | ||
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 80.70% | 81.30% | ||
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 19.30% | 18.70% | ||
Royalty [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 17.4 | $ 8 | ||
Rebates and Chargebacks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue Reserves | 151.4 | 72.3 | 354.3 | 327.4 |
Revenue Reserve Provision | 602.9 | 489.5 | ||
Revenue Reserve Payments or Credits | (805.8) | (744.6) | ||
Allowance for Sales Returns [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue Reserves | 32 | 35 | 34 | 34.5 |
Revenue Reserve Provision | 6.2 | 13.8 | ||
Revenue Reserve Payments or Credits | (8.2) | (13.3) | ||
Other Sales Deductions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue Reserves | 22.4 | 13.8 | $ 17.1 | $ 14.7 |
Revenue Reserve Provision | 17.7 | 14.3 | ||
Revenue Reserve Payments or Credits | $ (12.4) | $ (15.2) | ||
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Royalty Rate Percentage | 18.00% | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Royalty Rate Percentage | 26.00% |
Restructuring and Related Cha_3
Restructuring and Related Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Restructuring Cost and Reserve | ||
Restructuring charges, net | $ 4.2 | $ 28.2 |
Restructuring Fiscal 2016 Plan | Minimum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 100 | |
Restructuring Fiscal 2016 Plan | Maximum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 125 | |
Restructuring Fiscal 2018 Plan | Minimum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 100 | |
Restructuring Fiscal 2018 Plan | Maximum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | $ 125 |
Restructuring and Related Cha_4
Restructuring and Related Charges (Schedule of Restructuring and Related Charges by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Restructuring Cost and Reserve | ||
Restructuring and related charges, net | $ 4.2 | $ 28.2 |
Less: accelerated depreciation | 0 | 0 |
Restructuring charges, net | 4.2 | 28.2 |
Specialty Brands | ||
Restructuring Cost and Reserve | ||
Restructuring and related charges, net | 0 | 0.5 |
Specialty Generics and Amitiza | ||
Restructuring Cost and Reserve | ||
Restructuring and related charges, net | 4 | 5.1 |
Corporate | ||
Restructuring Cost and Reserve | ||
Restructuring and related charges, net | $ 0.2 | $ 22.6 |
Restructuring and Related Cha_5
Restructuring and Related Charges (Schedule of Net Restructuring and Related Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Restructuring Cost and Reserve | ||
Restructuring and related charges, net | $ 4.2 | $ 28.2 |
Less: non-cash charges, including accelerated depreciation | 0 | 0 |
Total charges expected to be settled in cash | 4.2 | 28.2 |
Restructuring Fiscal 2018 Plan | ||
Restructuring Cost and Reserve | ||
Restructuring and related charges, net | 3.5 | 0 |
Restructuring Fiscal 2016 Plan | ||
Restructuring Cost and Reserve | ||
Restructuring and related charges, net | 0.7 | 8.2 |
Acquisitions | ||
Restructuring Cost and Reserve | ||
Restructuring and related charges, net | $ 0 | $ 20 |
Restructuring and Related Cha_6
Restructuring and Related Charges (Schedule of Restructuring Reserves by Type of Cost) (Details) $ in Millions | 3 Months Ended | |
Mar. 29, 2019USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 71 | |
Currency translation | (0.5) | |
Reclassifications (1) | (9.3) | [1] |
Charges | 4.2 | |
Cash payments | (10.7) | |
Ending Balance | 54.7 | |
Restructuring Fiscal 2018 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 2.2 | |
Currency translation | 0 | |
Reclassifications (1) | 0 | [1] |
Charges | 3.5 | |
Cash payments | (1.2) | |
Ending Balance | 4.5 | |
Restructuring Fiscal 2016 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 61 | |
Currency translation | (0.5) | |
Reclassifications (1) | (5) | [1] |
Charges | 0.7 | |
Cash payments | (8.7) | |
Ending Balance | 47.5 | |
Acquisitions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 7.8 | |
Currency translation | 0 | |
Reclassifications (1) | (4.3) | [1] |
Charges | 0 | |
Cash payments | (0.8) | |
Ending Balance | $ 2.7 | |
[1] | Represents the reclassification of lease liabilities, net to lease liabilities and lease assets, which are reflected within other liabilities and other assets on the unaudited condensed consolidated balance sheet, due to the adoption of ASU 2016-02. |
Restructuring and Related Cha_7
Restructuring and Related Charges (Schedule of Restructuring Charges Incurred Cumulative to Date) (Details) $ in Millions | Mar. 29, 2019USD ($) |
Restructuring Fiscal 2016 Plan | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | $ 122.9 |
Restructuring Fiscal 2016 Plan | Specialty Brands | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | 81.7 |
Restructuring Fiscal 2016 Plan | Specialty Generics and Amitiza | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | 15.1 |
Restructuring Fiscal 2016 Plan | Corporate | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | 26.1 |
Restructuring Fiscal 2018 Plan | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | 8.7 |
Restructuring Fiscal 2018 Plan | Specialty Brands | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | 3 |
Restructuring Fiscal 2018 Plan | Specialty Generics and Amitiza | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | 3.5 |
Restructuring Fiscal 2018 Plan | Corporate | |
Restructuring Cost and Reserve | |
Restructuring costs incurred cumulative to date | $ 2.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | Dec. 28, 2018 | |
Income Taxes [Line Items] | |||
Income tax benefit | $ 204.7 | $ 36.6 | |
Increase (decrease) tax benefit | 168.1 | ||
Increase (Decrease) Tax Benefit, Intercompany Financing Reorganization | 192.8 | ||
Loss (income) from continuing operations before income taxes | $ 49.5 | $ 57.5 | |
Effective tax rate | 413.50% | 63.70% | |
Current Income Tax Expense (Benefit) | $ 38.5 | $ 11.2 | |
Deferred Income Tax Expense (Benefit) | (243.2) | (47.8) | |
Deferred Tax Liabilities Installment Sales | $ 227.5 | ||
Income Taxes Paid, Net | 18.8 | 12.4 | |
(Loss) income from discontinued operations, net of income taxes | (0.3) | $ 2.9 | |
Unrecognized tax benefits | 452.6 | 287.7 | |
Unrecognized tax benefits, net increase | 164.9 | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 150.3 | ||
Unrecognized tax benefits, net increase related to prior period tax positions | 15.5 | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0.9 | ||
Unrecognized tax benefits, which if favorably settled would benefit the effective tax rate | 440.8 | ||
Interest accrued on unrecognized tax benefits | 42.3 | $ 37.1 | |
Unrecognized tax benefits that would impact effective tax rate, upper bound of change | 106.2 | ||
Income tax penalties and interest accrued that would impact effective tax rate, upper bound of change | (30.6) | ||
Increase (Decrease) Tax Expense (Benefit), Change in Operating Income | 24.7 | ||
Discontinued Operations [Member] | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits, which if favorably settled would benefit the effective tax rate | 20 | ||
Intercompany Financing and Legal Entity Ownership Reorganization [Member] | |||
Income Taxes [Line Items] | |||
Increase (Decrease) in Deferred Tax Liabilities, Other | 26.4 | ||
Increase (Decrease) Deferred Tax Asset, Tax Loss and Credit Carryforwards | (24.7) | ||
Current Income Tax Expense (Benefit) | 28.9 | ||
Deferred Income Tax Expense (Benefit) | (221.7) | ||
Increase (decrease), deferred tax assets, excess interest carryforwrds | $ 45.3 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Earnings Per Share | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.2 | 3.9 |
Weighted-average shares outstanding - basic (in shares) | 83.5 | 86.1 |
Dilutive impact of restricted share units and share options (in shares) | 1.1 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 84.6 | 86.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Raw materials and supplies | $ 64.2 | $ 69.2 |
Work in process | 168.6 | 167.6 |
Finished goods | 86.9 | 85.5 |
Inventories | $ 319.7 | $ 322.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 1,954.6 | $ 1,936.2 |
Less: accumulated depreciation | (977.6) | (954.2) |
Property, plant and equipment, net | $ 977 | $ 982 |
Property, Plant and Equipment D
Property, Plant and Equipment Depreciation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Property, Plant and Equipment | ||
Depreciation | $ 24.8 | $ 20.6 |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Right-of-Use Asset | $ 80.8 |
Operating Lease, Liability, Current | 19.8 |
Operating Lease, Liability, Noncurrent | 76.9 |
Operating Lease, Liability | 96.7 |
Operating Lease, Cost | 4.9 |
Short-term Lease, Cost | 1.1 |
Sublease Income | (0.2) |
Lease, Cost | $ 5.8 |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.50% |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 17.8 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 21.5 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 15.9 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 12.2 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 11.7 |
Capital Leases, Future Minimum Payments, Receivable Thereafter | 39.3 |
Lessee, Operating Lease, Liability, Payments, Due | 118.4 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (21.7) |
Operating Lease, Payments | 5.5 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule Of Goodwill) (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Goodwill | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 668.3 | $ 668.3 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | $ 10,697.8 | $ 10,697.4 |
Accumulated amortization | 3,305.9 | 3,082.9 |
Non-Amortizable intangible assets, gross | 668.3 | 668.3 |
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 | 633.3 | 633.3 |
Completed Technology | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 10,467.9 | 10,467.9 |
Accumulated amortization | 3,200.8 | 2,980.6 |
Customer Relationships | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 27.9 | 27.5 |
Accumulated amortization | 14.9 | 14.1 |
Trademarks | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 81.9 | 81.9 |
Accumulated amortization | 19.1 | 18.1 |
Licensing Agreements [Member] | ||
Schedule of Intangible Asset by Major Class [Line Items] | ||
Amortizable intangible assets, gross | 120.1 | 120.1 |
Accumulated amortization | $ 71.1 | $ 70.1 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 14, 2014 | Mar. 29, 2019 | Mar. 30, 2018 | Dec. 28, 2018 |
Goodwill | ||||
Amortization of Intangible Assets | $ 222.8 | $ 178 | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 668.3 | $ 668.3 | ||
Ofirmev | ||||
Goodwill | ||||
Amortization of Intangible Assets | $ 35.9 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share | $ 0.43 | |||
Sucampo [Member] | ||||
Goodwill | ||||
Amortization of Intangible Assets | $ 9.1 | |||
Sucampo [Member] | VTS-270 [Member] | ||||
Goodwill | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 274.5 | |||
Cadence Pharmaceuticals, Inc. [Member] | Ofirmev | ||||
Goodwill | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 222.8 | $ 178 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Schedule of Future Amortization Expense, Intangible Assets) (Details) $ in Millions | Mar. 29, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2019 | $ 632.1 |
Fiscal 2020 | 758.1 |
Fiscal 2021 | 661.2 |
Fiscal 2022 | 588.6 |
Fiscal 2023 | $ 584.4 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Current maturities of long-term debt | ||
Debt Issuance Costs, Current, Net | $ 0.3 | $ 0.3 |
Long-term Debt, Current Maturities | 20.1 | 22.7 |
Long-term debt | ||
Long-term Debt | 5,873.1 | 6,134 |
Total Debt | 5,893.2 | 6,156.7 |
Debt Issuance Costs | 55.5 | 64.8 |
Total Debt Issuance Costs | $ 55.8 | 65.1 |
Term Loan due 2025 | Secured Debt | ||
Schedule of Long-term Debt including Capital Lease Obligation [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.69% | |
Current maturities of long-term debt | ||
Debt Issuance Costs, Current, Net | $ 0.1 | 0.1 |
Long-term Debt, Current Maturities | 4.1 | 6 |
Long-term debt | ||
Long-term Debt | 401.5 | 591 |
Debt Issuance Costs | 7.1 | 10.7 |
Loans Payable | 405.6 | 597 |
ACOA Loan due 2028 | Unsecured Debt | ||
Current maturities of long-term debt | ||
Debt Issuance Costs, Current, Net | 0 | 0 |
Long-term Debt, Current Maturities | 0.4 | 0.3 |
Long-term debt | ||
Long-term Debt | 1.9 | 1.9 |
Debt Issuance Costs | 0 | 0 |
Loans Payable | $ 2.3 | 2.2 |
Term Loan due 2024 | Secured Debt | ||
Schedule of Long-term Debt including Capital Lease Obligation [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.35% | |
Current maturities of long-term debt | ||
Debt Issuance Costs, Current, Net | $ 0.2 | 0.2 |
Long-term Debt, Current Maturities | 15.6 | 16.4 |
Long-term debt | ||
Long-term Debt | 1,513 | 1,597.4 |
Debt Issuance Costs | 18 | 19.8 |
Loans Payable | 1,528.6 | 1,613.8 |
4.88% Senior Notes | Unsecured Debt | ||
Long-term debt | ||
Long-term Debt | 700 | 700 |
Debt Issuance Costs | 2.6 | 3.2 |
Receivable securitization, Maturity Date of July 2020 | ||
Long-term debt | ||
Long-term Debt | 250 | 250 |
Debt Issuance Costs | 0.3 | 0.4 |
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 | 693.2 | 835.2 |
Debt Issuance Costs | 5.4 | 7 |
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 | 490.2 | 500.2 |
Debt Issuance Costs | 3.2 | 3.5 |
5.625% Senior Notes | Unsecured Debt | ||
Long-term debt | ||
Long-term Debt | 721.4 | 731.4 |
Debt Issuance Costs | 7.4 | 8 |
5.50% Senior Notes | Unsecured Debt | ||
Long-term debt | ||
Long-term Debt | 682.1 | 692.1 |
Debt Issuance Costs | 7.3 | 7.7 |
2017 Revolving Credit Facility | Secured Debt | ||
Long-term debt | ||
Long-term Debt | 405 | 220 |
Debt Issuance Costs | $ 4.2 | $ 4.5 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Debt Instrument | ||
Long-term Debt | $ 5,873.1 | $ 6,134 |
Total Debt | 5,893.2 | 6,156.7 |
Receivable securitization, Maturity Date of July 2020 | ||
Debt Instrument | ||
Long-term Debt | 250 | 250 |
Secured Debt | Term Loan due 2025 | ||
Debt Instrument | ||
Long-term Debt | $ 401.5 | 591 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.69% | |
Loans Payable | $ 405.6 | 597 |
Secured Debt | Receivable securitization, Maturity Date of July 2020 | ||
Debt Instrument | ||
Interest rate | 3.39% | |
Long-term Line of Credit | $ 250 | |
Secured Debt | Term Loan due 2024 | ||
Debt Instrument | ||
Long-term Debt | $ 1,513 | 1,597.4 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.35% | |
Loans Payable | $ 1,528.6 | 1,613.8 |
Secured Debt | 2017 Revolving Credit Facility | ||
Debt Instrument | ||
Long-term Debt | $ 405 | $ 220 |
Revolving Credit Facility | ||
Debt Instrument | ||
Interest rate | 4.85% | |
Long-term Line of Credit | $ 405 |
Debt (Schedule of Applicable In
Debt (Schedule of Applicable Interest Rates on Variable-rate Debt) (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Revolving Credit Facility | ||
Schedule of Applicable Interest Rate on Variable-rate Debt [Line Items] | ||
Interest rate | 4.85% | |
Long-term Line of Credit | $ 405 | |
Term Loan due 2025 | Secured Debt | ||
Schedule of Applicable Interest Rate on Variable-rate Debt [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.69% | |
Loans Payable | $ 405.6 | $ 597 |
Receivable securitization, Maturity Date of July 2020 | Secured Debt | ||
Schedule of Applicable Interest Rate on Variable-rate Debt [Line Items] | ||
Interest rate | 3.39% | |
Long-term Line of Credit | $ 250 | |
Term Loan due 2024 | Secured Debt | ||
Schedule of Applicable Interest Rate on Variable-rate Debt [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.35% | |
Loans Payable | $ 1,528.6 | $ 1,613.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 29, 2019 | Mar. 30, 2018 | Dec. 29, 2018 | Dec. 28, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Adjusted for ASU | $ (24.3) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | $ (24.3) | $ (14.4) | ||
Other Comprehensive Income (Loss), before Reclassifications | 1.5 | (2.3) | ||
Reclassification from Accumulated Other Comprehensive Income | (0.2) | (0.1) | ||
Other Comprehensive Income (Loss) | 1.3 | (2.4) | ||
Ending Balance | (22.5) | (16.8) | ||
Accumulated Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (20.4) | (8.2) | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | |||
Other Comprehensive Income (Loss), before Reclassifications | 1.4 | (2.3) | ||
Reclassification from Accumulated Other Comprehensive Income | 0 | 0 | ||
Other Comprehensive Income (Loss) | 1.4 | (2.3) | ||
Ending Balance | (19) | (10.5) | ||
Accumulated Unrecognized Gain (Loss) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (4) | (4.7) | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | |||
Other Comprehensive Income (Loss), before Reclassifications | 0 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income | 0.2 | 0.4 | ||
Other Comprehensive Income (Loss) | 0.2 | 0.4 | ||
Ending Balance | (3.8) | (4.3) | ||
Accumulated Unrecognized Gain (Loss) on Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 0.1 | (1.5) | ||
Other Comprehensive Income (Loss), before Reclassifications | 0.1 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income | (0.4) | (0.5) | ||
Other Comprehensive Income (Loss) | (0.3) | (0.5) | ||
Ending Balance | $ 0.3 | $ (2) | ||
Accounting Standards Update 2018-02 [Member] | Accumulated Unrecognized Gain (Loss) on Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0.5 | |||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0.5 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Schedule of Reclassifications out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Total reclassifications for the period | $ (0.2) | $ (0.1) |
Reclassification out of Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Amortization of unrealized loss on derivatives, net of tax | 0.2 | 0.4 |
Amortization of pension and post-retirement plans, net actuarial loss | 0.1 | 0.1 |
Amortization of pension and post-retirement plans, prior service credit | (0.5) | (0.5) |
Plan settlements | $ 0 | $ (0.1) |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Dec. 28, 2018 | |
Others | ||
Guarantor Obligations [Line Items] | ||
Maximum future payments | $ 38.7 | |
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 | 14.7 | $ 14.6 |
Mallinckrodt Baker | Indemnification Agreement | Other Assets | ||
Guarantor Obligations [Line Items] | ||
Escrow Deposit | 18.7 | 18.6 |
Mallinckrodt Baker | Environmental, Health and Safety Matters | Indemnification Agreement | Other Liabilities | ||
Guarantor Obligations [Line Items] | ||
Guarantors obligation | $ 12 | $ 11.8 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | Jun. 30, 2018Defendent | Apr. 01, 2014USD ($)Defendent | Mar. 29, 2019USD ($)DefendentlawsuitCase | Sep. 28, 2018USD ($) | Mar. 30, 2018USD ($) | Dec. 28, 2018USD ($) | Aug. 07, 2018USD ($) | Mar. 25, 2016USD ($) |
Loss Contingencies [Line Items] | ||||||||
Environmental liabilities | $ 61,500,000 | |||||||
Deferred Tax Liabilities Installment Sales | $ 227,500,000 | |||||||
Increase (Decrease) Installment Note Deferred Tax Liability Resulting From Tax Reform | $ (227,500,000) | |||||||
Section 453(a) interest | 300,000 | $ 5,600,000 | ||||||
Interest Payable, Installment Sales | $ 56,000,000 | |||||||
Lower Passaic River, New Jersey | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of defendants | Defendent | 70 | |||||||
Environmental liabilities | $ 26,200,000 | |||||||
Remedial cost, estimate | $ 1,700,000,000 | $ 1,380,000,000 | ||||||
Loss Contingency, Settlement Agreement, Amount | $ 280,600 | |||||||
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | $ (11,800,000) | |||||||
Occidental, Lower Passaic River [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of defendants | Defendent | 120 | |||||||
Asbestos Matters | ||||||||
Loss Contingencies [Line Items] | ||||||||
Pending claims | Case | 11,700 | |||||||
Estimation of liability, historical term | 5 years | |||||||
Estimation of liability, expected future term of claims | 7 years | |||||||
Accrued and other current liabilities | ||||||||
Loss Contingencies [Line Items] | ||||||||
Environmental liabilities, current | $ 1,900,000 | |||||||
Minimum | Environmental Remediation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remedial cost, estimate | 36,100,000 | |||||||
Minimum | Lower Passaic River, New Jersey | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remedial cost, estimate | 365,000,000 | |||||||
Maximum | Environmental Remediation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remedial cost, estimate | $ 86,200,000 | |||||||
Maximum | Lower Passaic River, New Jersey | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remedial cost, estimate | $ 3,200,000,000 | |||||||
opioid crisis [Member] | Cities, Counties, and/or Other Government-related Persons/Entities [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Number of Plaintiffs | lawsuit | 1,780 | |||||||
opioid crisis [Member] | Hospitals, Health Systems, Unions, Health and Welfare Fund or Third-Party Payers [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Number of Plaintiffs | lawsuit | 122 | |||||||
opioid crisis [Member] | Individuals [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Number of Plaintiffs | lawsuit | 27 | |||||||
opioid crisis [Member] | State Attorney Generals [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Number of Plaintiffs | lawsuit | 7 | |||||||
U.S. House Committee Investigation [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of defendants | Defendent | 11 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2019 | Dec. 28, 2018 | Apr. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Contingent Consideration, Liability, Current | $ 52.5 | ||
Contingent Consideration, Liability, Noncurrent | 105.3 | ||
Senior Notes | 4.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Stated interest rate | 4.75% | ||
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Investments, Fair Value Disclosure | 34.7 | $ 33.1 | |
Level 3 | Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Cash surrender value of life insurance | 65.7 | 66.4 | |
Level 3 | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Investments, Fair Value Disclosure | 0 | 0 | |
Level 3 | Recurring | Questcor Pharmaceuticals, Inc. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of contingent liability | 77.1 | 76.2 | |
Level 3 | MNK-6105 [Member] | Recurring | Ocera [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of contingent consideration | $ 23.2 | 21.5 | |
Level 2 | Debentures | 8.00% Debenture | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Stated interest rate | 8.00% | ||
Level 2 | Debentures | 9.50% Debenture | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Stated interest rate | 9.50% | ||
Level 2 | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Investments, Fair Value Disclosure | $ 10.2 | 10.7 | |
Level 1 | Senior Notes | 4.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Stated interest rate | 4.75% | ||
Level 1 | Senior Notes | 5.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Stated interest rate | 5.75% | ||
Level 1 | Senior Notes | 4.88% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Stated interest rate | 4.875% | ||
Level 1 | Senior Notes | 5.50% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Stated interest rate | 5.50% | ||
Level 1 | Unsecured Debt | 5.625% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Stated interest rate | 5.625% | ||
Level 1 | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Investments, Fair Value Disclosure | $ 24.5 | 22.4 | |
Maximum | Synacthen | Questcor Pharmaceuticals, Inc. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Milestone Payment | 115 | ||
Nuclear Imaging | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Contingent Consideration, Equity Certificates | 9.9 | 9 | |
Indemnification Agreement | Mallinckrodt Baker | Level 1 | Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Restricted Cash and Cash Equivalents | $ 18.7 | $ 18.6 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | $ 34.7 | $ 33.1 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 43.4 | 38.5 |
Contingent consideration and acquired contingent liabilities | 157.7 | 151.4 |
Total liabilities at fair value | 201.1 | 189.9 |
Level 1 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 24.5 | 22.4 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 0 | 0 |
Contingent consideration and acquired contingent liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 10.2 | 10.7 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 43.4 | 38.5 |
Contingent consideration and acquired contingent liabilities | 0 | 0 |
Total liabilities at fair value | 43.4 | 38.5 |
Level 3 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 0 | 0 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 0 | 0 |
Contingent consideration and acquired contingent liabilities | 157.7 | 151.4 |
Total liabilities at fair value | 157.7 | 151.4 |
StrataGraft [Member] | Stratatech | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of contingent liability | $ 57.5 | $ 53.7 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Schedule of Reconciliation of Changes in Fair Value of Contingent Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Dec. 28, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent Consideration, Liability, Current | $ 52.5 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent Consideration, Liability, Noncurrent | 105.3 | |
Level 3 | Recurring | Contingent Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 151.4 | |
Accretion expense | 0.9 | |
Fair value adjustment | 5.5 | |
Ending balance | 157.8 | |
Questcor Pharmaceuticals, Inc. | Level 3 | Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of contingent liability | 77.1 | $ 76.2 |
StrataGraft [Member] | Stratatech | Level 3 | Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of contingent liability | 57.5 | 53.7 |
MNK-6105 [Member] | Ocera [Member] | Level 3 | Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent Consideration, Liability | 23.2 | $ 21.5 |
Maximum | Synacthen | Questcor Pharmaceuticals, Inc. | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Milestone Payment | $ 115 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements (Schedule of Carrying Amount and Fair Value of Long-term Debt) (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | $ 5,357.5 | $ 5,269.1 |
Long-term Debt | 5,873.1 | 6,134 |
Total Debt | 5,893.2 | 6,156.7 |
Receivable securitization, Maturity Date of July 2020 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 250 | 250 |
Long-term Debt | 250 | 250 |
Secured Debt | Term Loan due 2024 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Loans Payable | 1,528.6 | 1,613.8 |
Long-term Debt | 1,513 | 1,597.4 |
Loans Payable, Fair Value Disclosure | 1,425.2 | 1,472.4 |
Secured Debt | 2017 Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 405 | 220 |
Long-term Debt | 405 | 220 |
Secured Debt | Term Loan due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Loans Payable | 405.6 | 597 |
Long-term Debt | 401.5 | 591 |
Loans Payable, Fair Value Disclosure | 384.2 | 548 |
Unsecured Debt | 4.88% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 695.8 | 676.6 |
Long-term Debt | 700 | 700 |
Unsecured Debt | 5.75% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 655.7 | 713.6 |
Long-term Debt | 693.2 | 835.2 |
Unsecured Debt | 4.75% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 387.8 | 336.7 |
Long-term Debt | 490.2 | 500.2 |
Unsecured Debt | 5.625% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 602.1 | 557 |
Long-term Debt | 721.4 | 731.4 |
Unsecured Debt | 5.50% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 535.4 | 479.1 |
Long-term Debt | 682.1 | 692.1 |
Unsecured Debt | ACOA Loan due 2028 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Loans Payable | 2.3 | 2.2 |
Long-term Debt | 1.9 | 1.9 |
Loans Payable, Fair Value Disclosure | 2.2 | 2.2 |
Debentures | 9.50% Debenture | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 10.1 | 9.7 |
Long-term Debt | 10.4 | 10.4 |
Debentures | 8.00% Debenture | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 4 | 3.8 |
Long-term Debt | $ 4.4 | $ 4.4 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements (Schedules of Concentration of Risk) (Details) | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Distributor Concentration Risk | Revenue from Contract with Customer [Member] | CuraScript, Inc | ||
Concentration Risk | ||
Concentration Risk, Percentage | 27.50% | 35.60% |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Amerisource Bergen Corporation [Member] | ||
Concentration Risk | ||
Concentration Risk, Percentage | 28.60% | 25.70% |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | McKesson Corporation [Member] | ||
Concentration Risk | ||
Concentration Risk, Percentage | 16.20% | 21.90% |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | CuraScript, Inc | ||
Concentration Risk | ||
Concentration Risk, Percentage | 12.10% | 13.10% |
Product Concentration Risk | Net Sales Attributable to Products | Acthar | ||
Concentration Risk | ||
Concentration Risk, Percentage | 28.30% | 32.30% |
Product Concentration Risk | Net Sales Attributable to Products | Inomax | ||
Concentration Risk | ||
Concentration Risk, Percentage | 19.10% | 18.50% |
Product Concentration Risk | Net Sales Attributable to Products | Ofirmev | ||
Concentration Risk | ||
Concentration Risk, Percentage | 12.10% | 10.90% |
Segment Data (Schedule of Segme
Segment Data (Schedule of Segment Reporting Information by Business Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | ||
Net sales | $ 790.6 | $ 755.3 | |
Operating Income (Loss) | [1] | 15.4 | 26.1 |
Intangible asset amortization | (222.8) | (178) | |
Restructuring and related charges, net | (4.2) | (28.2) | |
Specialty Brands | |||
Restructuring and related charges, net | 0 | (0.5) | |
Specialty Generics and Amitiza | |||
Restructuring and related charges, net | (4) | (5.1) | |
Operating Segments | |||
Operating Income (Loss) | 299.9 | 276.3 | |
Operating Segments | Specialty Brands | |||
Net sales | 547.3 | 548.4 | |
Operating Income (Loss) | 242 | 242.1 | |
Operating Segments | Specialty Generics and Amitiza | |||
Net sales | 243.3 | 206.9 | |
Operating Income (Loss) | 57.9 | 34.2 | |
Corporate, Non-Segment | |||
Corporate and unallocated expenses | [2] | (45.8) | (44) |
Intangible asset amortization | (222.8) | (178) | |
Restructuring and related charges, net | (4.2) | (28.2) | |
Separation Costs | [3] | $ (11.7) | 0 |
Sucampo [Member] | |||
Operating Income (Loss) | 30.7 | ||
Intangible asset amortization | (9.1) | ||
Cost of Sales [Member] | Sucampo [Member] | |||
Amortization Of Inventory Step-Up To Cost Of Sales | $ 15 | ||
[1] | The amount of operating loss included in the Company's unaudited condensed statement of income for the three months ended March 30, 2018 related to the Sucampo Acquisition was $30.7 million . Included within these results were $9.1 million of amortization associated with intangibles recognized from this acquisition and $15.0 million | ||
[2] | Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segment. | ||
[3] | Represents costs incurred related to the separation of the Company's Specialty Generics and Amitiza segment, which are included in SG&A. |
Segment Data (Schedule of Net S
Segment Data (Schedule of Net Sales from External Customers by Products) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | ||
Segment Reporting Information | |||
Net sales | $ 790.6 | $ 755.3 | |
Operating Segments | Specialty Brands | |||
Segment Reporting Information | |||
Net sales | 547.3 | 548.4 | |
Operating Segments | Specialty Generics and Amitiza | |||
Segment Reporting Information | |||
Net sales | 243.3 | 206.9 | |
Acthar | Operating Segments | Specialty Brands | |||
Segment Reporting Information | |||
Net sales | 223.9 | 243.8 | |
Inomax | Operating Segments | Specialty Brands | |||
Segment Reporting Information | |||
Net sales | 151.1 | 139.8 | |
Ofirmev | Operating Segments | Specialty Brands | |||
Segment Reporting Information | |||
Net sales | 95.6 | 82 | |
Therakos immunotherapy | Operating Segments | Specialty Brands | |||
Segment Reporting Information | |||
Net sales | 61.8 | 57.4 | |
BioVectra Inc [Member] | Operating Segments | Specialty Brands | |||
Segment Reporting Information | |||
Net sales | 12.4 | 10.5 | |
Other | Operating Segments | Specialty Brands | |||
Segment Reporting Information | |||
Net sales | 2.5 | 14.9 | |
Other | Operating Segments | Specialty Generics and Amitiza | |||
Segment Reporting Information | |||
Net sales | 16 | 15 | |
Hydrocodone (API) [Member] | Operating Segments | Specialty Generics and Amitiza | |||
Segment Reporting Information | |||
Net sales | 17.4 | 13.9 | |
Oxycodone (API) [Member] | Operating Segments | Specialty Generics and Amitiza | |||
Segment Reporting Information | |||
Net sales | 16.5 | 16.6 | |
Acetaminophen (API) [Member] | Operating Segments | Specialty Generics and Amitiza | |||
Segment Reporting Information | |||
Net sales | 46.2 | 49.4 | |
Amitiza [Member] | Operating Segments | Specialty Generics and Amitiza | |||
Segment Reporting Information | |||
Net sales | [1] | 53 | 23 |
Other Controlled Substances [Member] | Operating Segments | Specialty Generics and Amitiza | |||
Segment Reporting Information | |||
Net sales | $ 94.2 | $ 89 | |
[1] | Amitiza consists of both product net sales and royalties. Refer to Note 3 for further details on Amitiza's revenues. |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements (Narrative) (Details) | Mar. 29, 2019 | Apr. 30, 2013 |
Condensed Consolidating Financial Statements | ||
Percentage of ownership in MIFSA | 100.00% | |
Senior Notes | 4.75% Senior Notes | ||
Condensed Consolidating Financial Statements | ||
Stated interest rate | 4.75% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements (Schedule of Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 | Mar. 30, 2018 | Dec. 29, 2017 |
Current Assets: | ||||
Cash and cash equivalents | $ 225.8 | $ 348.9 | $ 511.9 | |
Accounts receivable, net | 575.9 | 623.3 | ||
Inventories | 319.7 | 322.3 | ||
Prepaid expenses and other current assets | 120.1 | 132.7 | ||
Intercompany receivables | 0 | 0 | ||
Total current assets | 1,241.5 | 1,427.2 | ||
Property, plant and equipment, net | 977 | 982 | ||
Intangible assets, net | 8,060.2 | 8,282.8 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 0 | 0 | ||
Other assets | 276.8 | 185.3 | ||
Total Assets | 10,555.5 | 10,877.3 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 19.8 | 22.4 | ||
Accounts payable | 132.6 | 147.5 | ||
Accrued payroll and payroll-related costs | 60.8 | 124 | ||
Accrued interest | 72.4 | 77.6 | ||
Income taxes payable | 7.7 | 25 | ||
Accrued and other current liabilities | 560.7 | 547.2 | ||
Intercompany payables | 0 | 0 | ||
Total current liabilities | 854 | 943.7 | ||
Long-term debt | 5,817.6 | 6,069.2 | ||
Pension and postretirement benefits | 59.7 | 60.5 | ||
Environmental liabilities | 59.6 | 59.7 | ||
Deferred income taxes | 81.1 | 324.3 | ||
Other income tax liabilities | 262.8 | 228 | ||
Intercompany loans payable | 0 | 0 | ||
Other liabilities | 366.8 | 304.6 | ||
Total Liabilities | 7,501.6 | 7,990 | ||
Shareholders' Equity | 3,053.9 | 2,887.3 | 6,461.3 | $ 6,522 |
Total Liabilities and Shareholders' Equity | 10,555.5 | 10,877.3 | ||
Mallinckrodt plc | ||||
Current Assets: | ||||
Cash and cash equivalents | 0.5 | 0.4 | 1.4 | |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 2.1 | 3.9 | ||
Intercompany receivables | 140.5 | 131.1 | ||
Total current assets | 143.1 | 135.4 | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Investment in subsidiaries | 2,652.3 | 2,481.6 | ||
Intercompany loans receivable | 469.1 | 497.7 | ||
Other assets | 0 | 0 | ||
Total Assets | 3,264.5 | 3,114.7 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0.1 | 0.1 | ||
Accrued payroll and payroll-related costs | 0 | 0 | ||
Accrued interest | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Accrued and other current liabilities | 0.6 | 0.6 | ||
Intercompany payables | 209.9 | 226.7 | ||
Total current liabilities | 210.6 | 227.4 | ||
Long-term debt | 0 | 0 | ||
Pension and postretirement benefits | 0 | 0 | ||
Environmental liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other income tax liabilities | 0 | 0 | ||
Intercompany loans payable | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total Liabilities | 210.6 | 227.4 | ||
Shareholders' Equity | 3,053.9 | 2,887.3 | ||
Total Liabilities and Shareholders' Equity | 3,264.5 | 3,114.7 | ||
Mallinckrodt International Finance S.A. | ||||
Current Assets: | ||||
Cash and cash equivalents | 27.2 | 140.8 | 212.8 | |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0.2 | ||
Intercompany receivables | 29.2 | 29.2 | ||
Total current assets | 56.4 | 170.2 | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Investment in subsidiaries | 12,978.3 | 25,506.1 | ||
Intercompany loans receivable | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total Assets | 13,034.7 | 25,676.3 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 22.1 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll and payroll-related costs | 0 | 0 | ||
Accrued interest | 20.3 | 48.7 | ||
Income taxes payable | 0 | 0 | ||
Accrued and other current liabilities | 0.2 | 0.4 | ||
Intercompany payables | 5,668.6 | 827.8 | ||
Total current liabilities | 5,689.1 | 899 | ||
Long-term debt | 487 | 3,566.9 | ||
Pension and postretirement benefits | 0 | 0 | ||
Environmental liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other income tax liabilities | 0 | 0 | ||
Intercompany loans payable | 3,037.1 | 12,840.7 | ||
Other liabilities | 8 | 7.6 | ||
Total Liabilities | 9,221.2 | 17,314.2 | ||
Shareholders' Equity | 3,813.5 | 8,362.1 | ||
Total Liabilities and Shareholders' Equity | 13,034.7 | 25,676.3 | ||
Other Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 198.1 | 207.7 | 297.7 | |
Accounts receivable, net | 575.9 | 623.3 | ||
Inventories | 319.7 | 322.3 | ||
Prepaid expenses and other current assets | 118 | 128.6 | ||
Intercompany receivables | 5,925.8 | 1,087.9 | ||
Total current assets | 7,137.5 | 2,369.8 | ||
Property, plant and equipment, net | 977 | 982 | ||
Intangible assets, net | 8,060.2 | 8,282.8 | ||
Investment in subsidiaries | 3,813.5 | 8,362.1 | ||
Intercompany loans receivable | 2,568 | 12,343 | ||
Other assets | 276.8 | 185.3 | ||
Total Assets | 22,833 | 32,525 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 19.8 | 0.3 | ||
Accounts payable | 132.5 | 147.4 | ||
Accrued payroll and payroll-related costs | 60.8 | 124 | ||
Accrued interest | 52.1 | 28.9 | ||
Income taxes payable | 7.7 | 25 | ||
Accrued and other current liabilities | 559.9 | 546.2 | ||
Intercompany payables | 217 | 193.7 | ||
Total current liabilities | 1,049.8 | 1,065.5 | ||
Long-term debt | 5,330.6 | 2,502.3 | ||
Pension and postretirement benefits | 59.7 | 60.5 | ||
Environmental liabilities | 59.6 | 59.7 | ||
Deferred income taxes | 81.1 | 324.3 | ||
Other income tax liabilities | 262.8 | 228 | ||
Intercompany loans payable | 0 | 0 | ||
Other liabilities | 358.8 | 297 | ||
Total Liabilities | 7,202.4 | 4,537.3 | ||
Shareholders' Equity | 15,630.6 | 27,987.7 | ||
Total Liabilities and Shareholders' Equity | 22,833 | 32,525 | ||
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 | ||
Intercompany receivables | (6,095.5) | (1,248.2) | ||
Total current assets | (6,095.5) | (1,248.2) | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Investment in subsidiaries | (19,444.1) | (36,349.8) | ||
Intercompany loans receivable | (3,037.1) | (12,840.7) | ||
Other assets | 0 | 0 | ||
Total Assets | (28,576.7) | (50,438.7) | ||
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 | ||
Intercompany payables | (6,095.5) | (1,248.2) | ||
Total current liabilities | (6,095.5) | (1,248.2) | ||
Long-term debt | 0 | 0 | ||
Pension and postretirement benefits | 0 | 0 | ||
Environmental liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other income tax liabilities | 0 | 0 | ||
Intercompany loans payable | (3,037.1) | (12,840.7) | ||
Other liabilities | 0 | 0 | ||
Total Liabilities | (9,132.6) | (14,088.9) | ||
Shareholders' Equity | (19,444.1) | (36,349.8) | ||
Total Liabilities and Shareholders' Equity | (28,576.7) | (50,438.7) | ||
Ordinary A | ||||
Condensed Consolidating Financial Statements | ||||
Ordinary A shares | $ 0 | $ 0 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements (Schedule of Condensed Consolidating Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | ||
Condensed Consolidating Financial Statements | |||
Net sales | $ 790.6 | $ 755.3 | |
Cost of sales | 455.5 | 407.8 | |
Gross profit | 335.1 | 347.5 | |
Selling, general and administrative expenses | 230.2 | 211.2 | |
Research and development expenses | 85.3 | 82 | |
Restructuring charges, net | 4.2 | 28.2 | |
Operating income | [1] | 15.4 | 26.1 |
Interest expense | (82.7) | (91.4) | |
Interest income | 1.5 | 3.2 | |
Other income, net | 16.3 | 4.6 | |
Intercompany Interest And Fees | 0 | 0 | |
Income (Loss) from Equity Method Investments | 0 | 0 | |
Loss from continuing operations before income taxes | (49.5) | (57.5) | |
Income tax benefit | (204.7) | (36.6) | |
Income (Loss) from Continuing Operations | 155.2 | (20.9) | |
(Loss) income from discontinued operations, net of income taxes | (0.3) | 2.9 | |
Net Income (Loss) | 154.9 | (18) | |
Other Comprehensive Income (Loss), Net of Tax | 1.3 | (2.4) | |
Comprehensive Income (Loss) | 156.2 | (20.4) | |
Mallinckrodt plc | |||
Condensed Consolidating Financial Statements | |||
Net sales | 0 | 0 | |
Cost of sales | 0.6 | 0.2 | |
Gross profit | (0.6) | (0.2) | |
Selling, general and administrative expenses | 11.3 | 6.4 | |
Research and development expenses | 1.4 | 0.5 | |
Restructuring charges, net | 0 | 0 | |
Operating income | (13.3) | (7.1) | |
Interest expense | (11.1) | (3) | |
Interest income | 12.2 | 2.2 | |
Other income, net | 3.2 | 6.1 | |
Intercompany Interest And Fees | (6.5) | (4.5) | |
Income (Loss) from Equity Method Investments | 169.3 | (12.9) | |
Loss from continuing operations before income taxes | 153.8 | (19.2) | |
Income tax benefit | (1.1) | (1.2) | |
Income (Loss) from Continuing Operations | 154.9 | (18) | |
(Loss) income from discontinued operations, net of income taxes | 0 | 0 | |
Net Income (Loss) | 154.9 | (18) | |
Other Comprehensive Income (Loss), Net of Tax | 1.3 | (2.4) | |
Comprehensive Income (Loss) | 156.2 | (20.4) | |
Mallinckrodt International Finance S.A. | |||
Condensed Consolidating Financial Statements | |||
Net sales | 0 | 0 | |
Cost of sales | 0 | 0 | |
Gross profit | 0 | 0 | |
Selling, general and administrative expenses | 0.2 | 0.2 | |
Research and development expenses | 0 | 0 | |
Restructuring charges, net | 0 | 0 | |
Operating income | (0.2) | (0.2) | |
Interest expense | (70.3) | (101.2) | |
Interest income | 0.1 | 1.7 | |
Other income, net | 1.2 | 2.8 | |
Intercompany Interest And Fees | 0 | 0 | |
Income (Loss) from Equity Method Investments | 298.4 | 175.4 | |
Loss from continuing operations before income taxes | 229.2 | 78.5 | |
Income tax benefit | 0 | (0.8) | |
Income (Loss) from Continuing Operations | 229.2 | 79.3 | |
(Loss) income from discontinued operations, net of income taxes | (0.2) | (0.1) | |
Net Income (Loss) | 229 | 79.2 | |
Other Comprehensive Income (Loss), Net of Tax | 1.3 | (2.4) | |
Comprehensive Income (Loss) | 230.3 | 76.8 | |
Other Subsidiaries | |||
Condensed Consolidating Financial Statements | |||
Net sales | 790.6 | 755.3 | |
Cost of sales | 454.9 | 407.6 | |
Gross profit | 335.7 | 347.7 | |
Selling, general and administrative expenses | 218.7 | 204.6 | |
Research and development expenses | 83.9 | 81.5 | |
Restructuring charges, net | 4.2 | 28.2 | |
Operating income | 28.9 | 33.4 | |
Interest expense | (39) | (7.1) | |
Interest income | 26.9 | 19.2 | |
Other income, net | 11.9 | (4.3) | |
Intercompany Interest And Fees | 6.5 | 4.5 | |
Income (Loss) from Equity Method Investments | 229 | 79.2 | |
Loss from continuing operations before income taxes | 264.2 | 124.9 | |
Income tax benefit | (203.6) | (34.6) | |
Income (Loss) from Continuing Operations | 467.8 | 159.5 | |
(Loss) income from discontinued operations, net of income taxes | (0.1) | 3 | |
Net Income (Loss) | 467.7 | 162.5 | |
Other Comprehensive Income (Loss), Net of Tax | 2.4 | (5.2) | |
Comprehensive Income (Loss) | 470.1 | 157.3 | |
Eliminations | |||
Condensed Consolidating Financial Statements | |||
Net sales | 0 | 0 | |
Cost of sales | 0 | 0 | |
Gross profit | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | |
Research and development expenses | 0 | 0 | |
Restructuring charges, net | 0 | 0 | |
Operating income | 0 | 0 | |
Interest expense | 37.7 | 19.9 | |
Interest income | (37.7) | (19.9) | |
Other income, net | 0 | 0 | |
Intercompany Interest And Fees | 0 | 0 | |
Income (Loss) from Equity Method Investments | (696.7) | (241.7) | |
Loss from continuing operations before income taxes | (696.7) | (241.7) | |
Income tax benefit | 0 | 0 | |
Income (Loss) from Continuing Operations | (696.7) | (241.7) | |
(Loss) income from discontinued operations, net of income taxes | 0 | 0 | |
Net Income (Loss) | (696.7) | (241.7) | |
Other Comprehensive Income (Loss), Net of Tax | (3.7) | 7.6 | |
Comprehensive Income (Loss) | $ (700.4) | $ (234.1) | |
[1] | The amount of operating loss included in the Company's unaudited condensed statement of income for the three months ended March 30, 2018 related to the Sucampo Acquisition was $30.7 million . Included within these results were $9.1 million of amortization associated with intangibles recognized from this acquisition and $15.0 million |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements (Schedule of Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net cash from operating activities | $ 164.5 | $ 17.8 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (39.8) | (34.3) |
Acquisitions, net of cash | 0 | (699.9) |
Proceeds from divestitures, net of cash | 0 | 298.3 |
Intercompany loan investment, net | 0 | 0 |
Investment in subsidiary | 0 | 0 |
Other | 0.4 | 8.3 |
Net cash from investing activities | (39.4) | (427.6) |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 200 | 626.8 |
Repayment of external debt and capital lease obligation | (448.7) | (902.2) |
Debt financing costs | 0 | (12) |
Proceeds from exercise of share options | 0.3 | 0 |
Repurchase of shares | (0.5) | (46.6) |
Intercompany loan borrowings, net | 0 | 0 |
Payment of Subsidiary Dividend | 0 | 0 |
Capital contribution | 0 | 0 |
Other | 0.5 | (4.8) |
Net cash from financing activities | (248.4) | (338.8) |
Effect of currency rate changes on cash | 0.3 | (0.3) |
Net change in cash, cash equivalents and restricted cash | (123) | (748.9) |
Cash and cash equivalents, end of period | 225.8 | 511.9 |
Restricted Cash and Investments, Noncurrent | 18.7 | 18.3 |
Cash and Cash Equivalents and Restricted Cash | 367.5 | 1,279.1 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 244.5 | 530.2 |
Mallinckrodt plc | ||
Cash Flows From Operating Activities: | ||
Net cash from operating activities | (6.6) | 459 |
Cash Flows From Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisitions, net of cash | 0 | 0 |
Proceeds from divestitures, net of cash | 0 | 0 |
Intercompany loan investment, net | 31.3 | (412.2) |
Investment in subsidiary | 0 | 0 |
Other | 0 | 0 |
Net cash from investing activities | 31.3 | (412.2) |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 0 | 0 |
Repayment of external debt and capital lease obligation | 0 | 0 |
Debt financing costs | 0 | 0 |
Proceeds from exercise of share options | 0.3 | 0 |
Repurchase of shares | (0.5) | (46.6) |
Intercompany loan borrowings, net | (24.9) | 0 |
Payment of Subsidiary Dividend | 0 | 0 |
Capital contribution | 0 | 0 |
Other | 0.5 | 0.5 |
Net cash from financing activities | (24.6) | (46.1) |
Effect of currency rate changes on cash | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | 0.1 | 0.7 |
Cash and cash equivalents, end of period | 0.5 | 1.4 |
Restricted Cash and Investments, Noncurrent | 0 | 0 |
Cash and Cash Equivalents and Restricted Cash | 0.4 | 0.7 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 0.5 | 1.4 |
Mallinckrodt International Finance S.A. | ||
Cash Flows From Operating Activities: | ||
Net cash from operating activities | 75.2 | 201.1 |
Cash Flows From Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisitions, net of cash | 0 | 0 |
Proceeds from divestitures, net of cash | 0 | 0 |
Intercompany loan investment, net | 0 | (85.3) |
Investment in subsidiary | (480.8) | (121.8) |
Other | 0 | 0 |
Net cash from investing activities | (480.8) | (207.1) |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 0 | 600 |
Repayment of external debt and capital lease obligation | (39) | (530.6) |
Debt financing costs | 0 | (12) |
Proceeds from exercise of share options | 0 | 0 |
Repurchase of shares | 0 | 0 |
Intercompany loan borrowings, net | 331 | 66.8 |
Payment of Subsidiary Dividend | 0 | (814.2) |
Capital contribution | 0 | 0 |
Other | 0 | 0 |
Net cash from financing activities | 292 | (690) |
Effect of currency rate changes on cash | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | (113.6) | (696) |
Cash and cash equivalents, end of period | 27.2 | 212.8 |
Restricted Cash and Investments, Noncurrent | 0 | 0 |
Cash and Cash Equivalents and Restricted Cash | 140.8 | 908.8 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 27.2 | 212.8 |
Other Subsidiaries | ||
Cash Flows From Operating Activities: | ||
Net cash from operating activities | 95.9 | 776.5 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (39.8) | (34.3) |
Acquisitions, net of cash | 0 | (699.9) |
Proceeds from divestitures, net of cash | 0 | 298.3 |
Intercompany loan investment, net | (337.4) | 430.7 |
Investment in subsidiary | 0 | 0 |
Other | 0.4 | 8.3 |
Net cash from investing activities | (376.8) | 3.1 |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 200 | 26.8 |
Repayment of external debt and capital lease obligation | (409.7) | (371.6) |
Debt financing costs | 0 | 0 |
Proceeds from exercise of share options | 0 | 0 |
Repurchase of shares | 0 | 0 |
Intercompany loan borrowings, net | 0 | 0 |
Payment of Subsidiary Dividend | 0 | (604.6) |
Capital contribution | 480.8 | 121.8 |
Other | 0 | (5.3) |
Net cash from financing activities | 271.1 | (832.9) |
Effect of currency rate changes on cash | 0.3 | (0.3) |
Net change in cash, cash equivalents and restricted cash | (9.5) | (53.6) |
Cash and cash equivalents, end of period | 198.1 | 297.7 |
Restricted Cash and Investments, Noncurrent | 18.7 | 18.3 |
Cash and Cash Equivalents and Restricted Cash | 226.3 | 369.6 |
Cash and Cash Equivalents, Including Restricted Cash, Period End | 216.8 | 316 |
Eliminations | ||
Cash Flows From Operating Activities: | ||
Net cash from operating activities | 0 | (1,418.8) |
Cash Flows From Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisitions, net of cash | 0 | 0 |
Proceeds from divestitures, net of cash | 0 | 0 |
Intercompany loan investment, net | 306.1 | 66.8 |
Investment in subsidiary | 480.8 | 121.8 |
Other | 0 | 0 |
Net cash from investing activities | 786.9 | 188.6 |
Cash Flows From Financing Activities: | ||
Issuance of external debt | 0 | 0 |
Repayment of external debt and capital lease obligation | 0 | 0 |
Debt financing costs | 0 | 0 |
Proceeds from exercise of share options | 0 | 0 |
Repurchase of shares | 0 | 0 |
Intercompany loan borrowings, net | (306.1) | (66.8) |
Payment of Subsidiary Dividend | 0 | 1,418.8 |
Capital contribution | (480.8) | (121.8) |
Other | 0 | 0 |
Net cash from financing activities | (786.9) | 1,230.2 |
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) $ in Millions | May 03, 2019USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Debt Instrument, Repurchase Amount | $ 28.1 |