Varex Imaging (VREX) 10-K 13 Dec 17 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 29, 2017	Nov. 30, 2017	Mar. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 29, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Trading Symbol	VREX
Entity Registrant Name	Varex Imaging Corporation
Entity Central Index Key	1,681,622
Current Fiscal Year End Date	--09-29
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		37,739,440
Entity Public Float			$ 1,122,413,712

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Income Statement [Abstract]
Revenues	$ 698.1	$ 620.1	$ 632.3
Cost of revenues	444.6	371.7	381.7
Gross margin	253.5	248.4	250.6
Operating expenses:
Research and development	67.3	53.5	50.4
Selling, general and administrative	102.5	85.8	72.7
Total operating expenses	169.8	139.3	123.1
Operating earnings	83.7	109.1	127.5
Interest income	0.2	0.3	0.5
Interest expense	(12.3)	(1.9)	(1.2)
Other income (expense), net	3.2	(2.5)	0.8
Interest and other income (expenses), net	(8.9)	(4.1)	0.1
Earnings before taxes	74.8	105	127.6
Taxes on earnings	22.8	36	46.8
Net earnings	52	69	80.8
Less: Net earnings attributable to noncontrolling interests	0.4	0.5	0.8
Net earnings attributable to Varex	$ 51.6	$ 68.5	$ 80
Net earnings per common share attributable to Varex
Earnings per share, basic (in USD per share)	$ 1.37	$ 1.83	$ 2.14
Earnings per share, diluted (in USD per share)	$ 1.36	$ 1.82	$ 2.12
Weighted average common shares outstanding
Weighted average number of shares outstanding, basic	37.6	37.4	37.4
Weighted average number of shares outstanding,diluted	38	37.7	37.7

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Statement of Comprehensive Income [Abstract]
Net earnings	$ 52	$ 69	$ 80.8
Other comprehensive earnings (loss), net of tax:
Unrealized gain on interest rate swap contracts, net of tax	0.6	0	0
Unrealized gain on defined benefit obligations, net of tax	0.2	0	0
Available-for-sale securities:
Change in unrealized loss, net of tax	0	(0.3)	(0.1)
Reclassification adjustments, net of tax	0	0.4	0
Other comprehensive earnings (loss), net of tax	0.8	0.1	(0.1)
Comprehensive earnings	52.8	69.1	80.7
Less: Net earnings attributable to noncontrolling interests	0.4	0.5	0.8
Comprehensive earnings attributable to Varex	$ 52.4	$ 68.6	$ 79.9

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 29, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 83.3	$ 36.5
Accounts receivable, net of allowance for doubtful accounts of $0.4 and $0.2 at September 29, 2017 and September 30, 2016, respectively	163.6	122.2
Inventories, net	234.5	197.4
Prepaid expenses and other current assets	13.9	3.8
Total current assets	495.3	359.9
Property, plant and equipment, net	148.3	108.9
Goodwill	241.9	74.7
Intangibles assets	91.3	20.7
Investments in privately-held companies	52.3	49.3
Deferred tax assets	0	5.5
Other assets	11	3.4
Total assets	1,040.1	622.4
Current liabilities:
Accounts payable	58.9	41.9
Accrued liabilities	62.4	23.9
Current maturities of long-term debt	20	0
Deferred revenues	10.5	12
Total current liabilities	151.8	77.8
Long-term debt	463.9	0
Deferred tax liabilities	29.5	3
Other long-term liabilities	4.7	5.3
Total liabilities	649.9	86.1
Commitments and contingencies
Redeemable noncontrolling interests	11.2	10.3
Equity:
Preferred stock, $.01 par value: 20,000,000 shares authorized, none issued	0
Common stock, $.01 par value: 150,000 shares authorized, 37,633,747 issued and outstanding as of September 29, 2017; none issued and outstanding as of September 30, 2016	0.4
Net parent investment		526
Additional paid-in capital	342.7
Accumulated other comprehensive loss	0.8
Retained earnings	35.1
Total stockholders' equity	379	526
Total liabilities, redeemable noncontrolling interests and Varex stockholders' equity	$ 1,040.1	$ 622.4

CONSOLIDATED BALANCE SHEETS PAR

CONSOLIDATED BALANCE SHEETS PARENTHETICAL - USD ($) $ in Millions	Sep. 29, 2017	Sep. 30, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0.4	$ 0.2
Preferred stock, par value per share	$ 0.01
Preferred stock, shares authorized	20,000,000
Preferred stock, shares issued	0
Common stock, par value per share	$ 0.01
Common stock, shares authorized	150,000,000
Common stock, shares, issued	37,633,747
Common stock, shares, outstanding	37,633,747

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Cash flows from operating activities:
Net earnings	$ 52	$ 69	$ 80.8
Adjustments to reconcile net earnings to net cash provided by operating activities:
Share-based compensation expense	8.4	9.5	9.6
Excess tax benefits from share-based compensation	0	0.1	(1.7)
Depreciation	16.9	9.8	9.6
Amortization of intangible assets	10.5	5.5	2.7
Deferred taxes	(8.9)	4.2	(0.8)
(Income) loss from equity method investments	(1.3)	1.6	(0.3)
Amortization of deferred loan costs	1.8	0	0
Other, net	1.8	0.7	0.4
Changes in assets and liabilities:
Accounts receivable	(23.1)	(4.6)	19.3
Inventories	(4.2)	(23.5)	(25.9)
Prepaid expenses and other assets	(10.7)	(0.9)	0.3
Accounts payable	4.9	(1.9)	(4.3)
Accrued operating liabilities and other long-term operating liabilities	28.1	2.8	(7.2)
Deferred revenues	(1.6)	1.9	2.7
Net cash provided by operating activities	74.6	74.2	85.2
Cash flows from investing activities:
Purchases of property, plant and equipment	(20.2)	(28.9)	(34.3)
Sale of available-for-sale securities	0	8.6	0
Acquisitions of businesses, net of cash acquired	(271.8)	(1.2)	(67.9)
Other	0	(0.1)	0.1
Net cash used in investing activities	(292)	(21.6)	(102.1)
Cash flows from financing activities:
Net transfers from (to) parent	5	(36.7)	35.8
Distributions to Varian Medical Systems, Inc.	(227.1)	0	0
Taxes related to net share settlement of equity awards	(1.9)	0	0
Borrowings under credit agreements	749	0	0
Repayments of borrowing under credit agreements	(255)	0	0
Proceeds from exercise of stock options	2.8	0	0
Excess tax benefits from share-based compensation	2.4	(0.1)	1.7
Payment of debt issuance costs	(11.9)	0	0
Other financing activities	0	0	(0.8)
Net cash provided by (used in) financing activities	263.3	(36.8)	36.7
Effects of exchange rate changes on cash and cash equivalents	0.9	0.1	0.3
Net increase in cash and cash equivalents	46.8	15.9	20.1
Cash and cash equivalents	83.3	36.5	20.6
Supplemental cash flow information:
Cash paid for interest	9.8	0	0
Cash paid for income tax	6	0	0
Supplemental non-cash activities:
Purchases of property, plant and equipment financed through accounts payable	4	3.1	9
Transfers of property, plant and equipment from Varian Medical Systems, Inc.	15	0	0
Other non-cash transfers to Varian Medical Systems, Inc.	$ 1.6	$ 0	$ 0

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Net Parent Investment	AOCI Attributable to Parent	Retained Earnings	Parent	Noncontrolling Interest
Balance at beginning of period at Sep. 26, 2014	$ 359.3			$ 359.3			$ 359.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings attributable to Varex	80			80			80
Net earnings attributable to noncontrolling interests								$ 0.8
Net earnings	80.8
Net transfers from parent	45.4			45.4			45.4
Other comprehensive loss	(0.1)				$ (0.1)		(0.1)
Acquisition of MeVis Medical Solutions AG	10.2							10.2
Unrealized gain on interest rate swap contracts, net of tax	0
Unrealized gain on defined benefit obligations, net of tax	0
Balance at end of period at Oct. 02, 2015	495.6			484.7	(0.1)		484.6	11
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings attributable to Varex	68.5			68.5			68.5
Net earnings attributable to noncontrolling interests								0
Net transfers from parent	(27.1)			(27.2)	0.1		(27.1)
Other comprehensive loss	0.1
Reclassification of non-controlling interests in MeVis Medical Solutions AG to redeemable non-controlling interests	(10.4)							(10.4)
Other	(0.6)							(0.6)
Unrealized gain on interest rate swap contracts, net of tax	0
Unrealized gain on defined benefit obligations, net of tax	0
Balance at end of period at Sep. 30, 2016	526			526			526	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings attributable to Varex	51.6			16.5		$ 35.1	51.6
Net transfers from parent	18.4			18.4			18.4
Other comprehensive loss	0.8
Distribution to Varian Medical Systems	$ (227.1)			(227.1)			(227.1)
Conversion of net parent investment into common stock, shares		37,400,000
Conversion of net parent investment into common stock		$ 0.4	$ 333.4	$ (333.8)
Options, exercises in period	123,000	100,000
Exercise of stock options	$ 2.8		2.8				2.8
Common stock issued upon vesting of restricted shares		200,000
Shares withheld on vesting of restricted stock		(100,000)
Value withheld on vesting of restricted stock	(1.9)		(1.9)				(1.9)
Share-based compensation	6.2		6.2				6.2
Unrealized gain on interest rate swap contracts, net of tax	0.6				0.6		0.6
Unrealized gain on defined benefit obligations, net of tax	0.2				0.2		0.2
Tax impacts to APIC related to share-based award activity	2.4		2.4				2.4
Other	$ (0.2)		(0.2)				(0.2)
Shares outstanding, end of period at Sep. 29, 2017	37,633,747	37,600,000
Balance at end of period at Sep. 29, 2017	$ 379	$ 0.4	$ 342.7		$ 0.8	$ 35.1	$ 379

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Varex Imaging Corporation (the “Company,” “Varex” or “Varex Imaging”) designs, manufactures, sells and services a broad range of X-ray imaging components, including X-ray tubes, digital detectors and accessories, high voltage connectors, high-energy inspection accelerators, image processing software and workstations, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, ionization chambers and buckys, for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, computed tomography, radio therapy and computer-aided detection. The Company sells its products to imaging system original equipment manufacturer (“OEM”) customers for incorporation into new medical diagnostic, radiation therapy, dental, veterinary and industrial imaging systems, to independent service companies, distributors and directly to end-users for replacement purposes. The Company also designs, manufacturers, sells and services industrial products, which include Linatron® X-ray accelerators, imaging processing software and image detection products for security and inspection purposes, such as cargo screening at ports and borders and nondestructive examination in a variety of applications. The Company generally sells security and inspection products to OEM customers who incorporate Varex’s products into their inspection systems. The Company conducts an active research and development program to focus on new technology and applications in both the medical and industrial X-ray imaging markets. Varex Imaging Corporation was incorporated in Delaware on July 18, 2016 for the purpose of holding the assets and liabilities associated with the Company's business and separated from Varian Medical Systems, Inc. ("Varian") on January 28, 2017, upon which Varian completed the distribution of 100% of the outstanding common stock of Varex to Varian stockholders. Each Varian stockholder received 0.4 of a share of Varex common stock for every one share of Varian common stock held on the close of business on January 20, 2017 (the “Record date”). Following the separation and distribution, Varex became an independent publicly-traded company and is listed on the NASDAQ Global Select Market under the ticker “VREX.” Basis of Presentation and Principle of Consolidation The accompanying consolidated financial statements are audited and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Prior to the date of separation and distribution, the financial statements were prepared on a stand-alone basis and are derived from Varian’s consolidated financial statements and records as it operated as part of Varian prior to the distribution, in conformity with GAAP. The consolidated financial statements include the accounts of the Company and certain other assets and liabilities that were historically held at the Varian corporate level but are specifically identifiable and attributable to the Company. Prior to the separation and distribution, the consolidated financial statements included allocations of certain Varian corporate expenses, including costs of information technology, human resources, accounting, legal, facilities, insurance, treasury and other corporate and infrastructure services. In addition, allocated costs included research and development expenses from Varian’s scientific research facility. Prior to the separation, these costs were allocated to the Company on the basis of direct usage when identifiable or other systematic measures that reflect utilization of services provided to or benefits received by the Company. The Company considers the expense allocation methodology and results to be reasonable for periods prior to separation from Varian. All transactions between the Company and Varian prior to the separation have been included in the accompanying consolidated financial statements. All intercompany transactions while the Company operated as part of Varian were considered to be effectively settled for cash and are reflected as a component of financing activities as net transfers from (to) Varian in the consolidated statements of cash flows at the time the transactions were recorded. Prior to the separation, the Company was dependent upon Varian for its working capital and financing requirements, as Varian uses a centralized approach to cash management and financing of its operations. Financial transactions relating to the Company were accounted for through the net parent investment account. Cash and cash equivalents held by Varian were not allocated to the Company. Net parent investment in the consolidated balance sheets and statements of equity represents Varian’s historical investment in the Company, the net effect of transactions with and allocations from Varian and the Company’s accumulated earnings. See Note 3, “Related Party Transactions” for further information regarding the Company’s relationships with Varian and other related-party transactions. Segment Reporting The Company has two reportable operating segments; (i) Medical and (ii) Industrial which align with how its CEO, who is identified as the CODM, views and measures the Company’s business performance. In fiscal year 2016, we re-segmented the Company's operating segments and reclassified the segment data for the prior years to conform to the current year presentation. See Note 14, “Segment Information” for further information on the Company’s segments. Fiscal Year The fiscal years of the Company as reported are the 52 or 53-week period ending on the Friday nearest September 30. Fiscal year 2017 is the 52-week period ending September 29, 2017. Fiscal year 2016 was the 52-week period that ended on September 30, 2016. Fiscal year 2015 was the 52-week period that ended on October 2, 2015. Variable Interest Entities For entities in which the Company has variable interests, the Company focuses on identifying which entity has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. If the Company is the primary beneficiary of a variable interest entity, the assets, liabilities and results of operations of the variable interest entity will be included in the Company’s consolidated financial statement. As of September 29, 2017, the Company had two variable interest entities, only one of which were consolidated, because it was determined that the Company was the primary beneficiary. As of September 29, 2017, total assets and liabilities for the consolidated variable interest entity was $6.4 million and $0.2 million , respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Cash and Cash Equivalents The Company considers currency on hand, demand deposits, time deposits and all highly-liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. There is a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or, other inputs that are observable or can be corroborated by observable market data. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Derivative instruments and hedging activities The Company records all derivatives on the balance sheet at fair value. For a derivative such as an interest rate swap that is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is initially reported in accumulated other comprehensive income (loss) on the consolidated balance sheet and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. To the extent the effective portion of a hedge subsequently becomes ineffective, the corresponding amount of the change in fair value of the derivative initially reported in accumulated other comprehensive income (loss) is reclassified and is recognized directly in earnings. Accordingly, on a quarterly basis, the Company assesses the effectiveness of each hedging relationship by comparing the changes in fair value or cash flows of the derivative hedging instrument with the changes in fair value or cash flows of a hypothetical designated perfect hedged item or transaction. If the change in the actual swap is greater than the change in the hypothetical perfect swap, the difference is referred to as “ineffectiveness” and is recognized in earnings in the current period. Concentration of Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade accounts receivable. Cash held with financial institutions may exceed the Federal Deposit Insurance Corporation insurance limits or similar limits in foreign jurisdictions. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company performs ongoing credit evaluations of its customers and, except for government tenders, group purchases and orders with a letter of credit, its industrial customers often provide a down payment. The Company maintains an allowance for doubtful accounts based upon the expected collectability of all accounts receivable. The Company obtains some of the components in its products from a limited group of suppliers or from a single-source supplier. The Company has neither experienced nor expects any significant disruptions to its operations due to supplier concentration. During the periods presented, two customers accounted for a significant portion of revenues, which are as follows: Fiscal Year 2017 2016 2015 Toshiba Medical Systems 19.3 % 23.0 % 26.0 % Carestream * * 12.0 % * Indicates less than 10% of revenues for the periods presented Toshiba Medical Systems accounted for 9.0% and 11.5% of the Company’s accounts receivable as of September 29, 2017 and September 30, 2016 , respectively. Inventories, net Inventories, net are valued at net realizable value. Excess and obsolete inventories are determined primarily based on future demand forecasts, and write-downs of excess and obsolete inventories are recorded as a component of cost of revenues. Cost is computed using standard cost (which approximates actual cost) on a first-in-first-out basis. The following table summarizes the Company’s inventories, net: (In millions) September 29, 2017 September 30, 2016 (1) Raw materials and parts $ 164.5 $ 140.8 Work-in-process 20.3 16.4 Finished goods 49.7 40.2 Total inventories, net $ 234.5 $ 197.4 (1) The Company identified immaterial errors in prior periods relating to the classification of raw material and work-in-process inventory categories. The impact of these errors are $9.2 million and were not material to any prior period. Consequently, the Company corrected the errors by revising the prior year inventory disclosure. As the two line items are adjusted by offsetting amounts that do not impact the total inventory balance, the corrections had no impact on the consolidated balance sheets, income statement or statements of cash flows. Total inventories, net as of September 29, 2017 includes approximately $29.7 million of inventories, net at September 29, 2017 that related to the Acquired Detector Business. Property, Plant and Equipment, net Property, plant and equipment are stated at cost, net of accumulated depreciation. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Land is not subject to depreciation, but land improvements are depreciated over fifteen years. Land leasehold rights and leasehold improvements are amortized over the lesser of their estimated useful lives or remaining lease terms. Buildings are depreciated over twenty years. Machinery and equipment are depreciated over their estimated useful lives, which range from three to seven years. Assets subject to lease are amortized over the lesser of their estimated useful lives or remaining lease terms. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted, and an impairment assessment may be performed on the recoverability of the carrying amounts. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are removed from the accounts. The following table summarizes the Company’s property, plant and equipment, net: (In millions) September 29, 2017 September 30, 2016 Land and land improvements $ 5.1 $ 2.9 Buildings and leasehold improvements 132.2 103.3 Machinery 153.9 121.0 Construction in progress 24.3 18.3 $ 315.5 $ 245.5 Accumulated depreciation and amortization (167.2 ) (136.6 ) Property, plant, and equipment, net $ 148.3 $ 108.9 Total property, plant, and equipment, net as of September 29, 2017 includes approximately $21.1 million of property, plant, and equipment, net at September 29, 2017 that related to the Acquired Detector Business. The Company recorded depreciation expense of $16.9 million , $9.8 million and $9.6 million , in fiscal yeas 2017, 2016 and 2015, respectively. Investments The Company accounts for its equity investments in privately-held companies under the equity method of accounting if the Company has the ability to exercise significant influence in these investments. The Company monitors these equity investments for impairment and makes appropriate reductions in carrying values if the Company determines that impairment charges are required based primarily on the financial condition and near-term prospects of these companies. Goodwill and Intangible Assets Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. Purchased intangible assets are carried at cost, net of accumulated amortization, and are included in intangible assets in the Company's consolidated balance sheets. Intangible assets with finite lives are amortized over their estimated useful lives of primarily two to seven years using the straight-line method. Impairment of Long-lived Assets, Intangible Assets and Goodwill The Company reviews long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company assesses these assets for impairment based on their estimated undiscounted future cash flows. If the carrying value of the assets exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any impairment charges for long-lived assets and identifiable intangible assets during any of the periods presented. The Company evaluates goodwill and indefinite lived intangible assets qualitatively for impairment at least annually in beginning of the fourth quarter of each fiscal year or whenever an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If the Company determines that a quantitative analysis is necessary, the impairment test for goodwill is currently a two-step process. Step one consists of a comparison of the fair value of a reporting unit against its carrying amount, including the goodwill allocated to each reporting unit. The Company determines the fair value of its reporting units based on a combination of income and market approaches. The income approach is based on the present value of estimated future cash flows of the reporting units, and the market approach is based on a market multiple calculated for each reporting unit based on market data of other companies engaged in similar business. If the carrying amount of the reporting unit is in excess of its fair value, step two requires the comparison of the implied fair value of the reporting unit’s goodwill against the carrying amount of the reporting unit’s goodwill. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as an impairment loss. The impairment test for intangible assets with indefinite useful lives, if any, consists of a comparison of fair value to carrying value, with any excess of carrying value over fair value being recorded as an impairment loss. No impairment charges were recognized in fiscal year 2017, 2016 or 2015. As a result of the segment realignment in the fourth quarter of fiscal year 2016, goodwill was re-allocated to the Medical and Industrial reporting units based on their relative fair values. No impairment charges were recognized as a result of the change in reporting units. The Company performs its annual goodwill impairment analysis during the fourth quarter of its fiscal year. Loss Contingencies From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that it believes will result in a probable loss. Product Warranty The Company warrants most of its products for a specific period of time, usually 12 to 24 months from delivery or acceptance, against material defects. The Company provides for the estimated future costs of warranty obligations in cost of revenues when the related revenues are recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that the Company will incur to repair or replace product parts that fail while still under warranty. The amount of the accrued estimated warranty costs obligation for established products is primarily based on historical experience as to product failures adjusted for current information on repair costs. For new products, estimates include the historical experience of similar products, as well as reasonable allowance for warranty expenses associated with new products. On a quarterly basis, the Company reviews the accrued warranty costs and updates the historical warranty cost trends, if required. The following table reflects the changes in the Company’s accrued product warranty: Fiscal Years (In millions) 2017 2016 Accrued product warranty, at beginning of period $ 6.9 $ 6.1 Product warranty for acquisitions during period 1.3 — Charged to cost of revenues 10.7 13.1 Actual product warranty expenditures (11.9 ) (12.3 ) Accrued product warranty, at end of period $ 7.0 $ 6.9 Revenue Recognition The Company’s revenues are derived primarily from the sale of hardware and software products, and services. The Company recognizes its revenues net of any value added or sales tax and net of sales discounts. The Company sells a high proportion of its X-ray products to a limited number of OEM customers. X-ray tubes, digital detectors and image-processing tools and security and inspection products are generally sold on a stand-alone basis. However, the Company occasionally sells its digital detectors, X-ray tubes and imaging processing tools as a package that is optimized for digital X-ray imaging and sells its Linatron ® X-ray accelerators together with its imaging processing software and image detection products to OEM customers that incorporate them into their inspection systems. Service contracts are often sold with certain security and inspection products and computer-aided detection products. Revenues related to service contracts usually start after the expiration of the warranty period for non-software products or upon delivery of software products. For a multiple-element arrangement that includes software and non-software deliverables which includes service contracts, the Company first allocates revenues among the software and non-software deliverables on a relative selling price basis. The amounts allocated to the non-software products and software are accounted for as follows: Non-Software Products Non-software products include hardware products, software components that function together with the hardware components to deliver the product’s essential functionality, as well as service contracts. Except as described below under “Service,” the Company recognizes revenues for non-software products when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. For multiple-element revenue arrangements that involve non-software products, a delivered non-software element is considered as a separate unit of accounting when it has stand-alone value and there is no customer-negotiated refund or return rights for the delivered element. The allocation of revenue to all deliverables based on their relative selling prices is determined at the inception of the arrangement. The selling price for each deliverable is determined using vendor-specific objective evidence (“VSOE”) of selling price, if it exists; otherwise, third-party evidence of selling price (“TPE”) is used. If the Company is not able to establish VSOE or TPE of selling prices for its non-software products, the Company uses the deliverable's estimated selling price (“ESP”). The Company estimates selling prices following an established process that considers market conditions, including the product offerings and pricing strategies of competitors, as well as internal factors such as historical pricing practices and margin objectives. The establishment of product and service ESPs is controlled and reviewed by the appropriate level of management in all of the Company’s businesses. The Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the terms of the contract, provided that all other revenue recognition criteria have been met. Software Products The Company recognizes revenues for software products in accordance with the software revenue recognition guidance. The Company recognizes license revenues when all of the following criteria have been met: persuasive evidence of an arrangement exists, the vendor’s fee is fixed or determinable, collection of the related receivable is probable and delivery of the product has occurred. Revenues earned on software arrangements involving multiple elements are allocated to each element based on VSOE of fair value, which is based on the price charged when the same element is sold separately. In instances when evidence of VSOE of fair value of all undelivered elements exists, but evidence does not exist for one or more delivered elements, revenues are recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. For those software products that are not sold stand-alone or for which VSOE cannot be established or maintained, all software revenue under the contract will be deferred until the software product(s) that lack VSOE are all delivered. If the only undelivered software element that lacks VSOE is maintenance and support, then the software revenue would be recognized ratably over the term of the maintenance and support arrangement. The Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the shipping terms of the contract, provided that all other criteria for revenue recognition have been met. Service Service revenues include revenues from hardware and software service contracts, including maintenance and support, bundled support arrangements, paid services and trainings and parts that are sold by the service department. Revenues allocated to service contracts are recognized ratably over the period of performance of the related contracts. Revenues related to services performed on a time-and-materials basis are recognized when they are earned and billable. Deferred Revenues Deferred revenue primarily represents (i) the amount billed, billable or received applicable to non-software products for which parts and services have not been delivered, (ii) the amount billed, billable or received applicable to software products for which the Company’s obligations under the maintenance contracts have not been fulfilled and (iii) the amount billed, billable or received for service contracts for which the services have not been rendered. Except for government tenders, group purchases and orders with letters of credit, the Company's security and inspection customers often provide a down payment prior to transfer of risk of loss of ordered products. These payments are also included in deferred revenue on the consolidated balance sheets. Allowance for Doubtful Accounts The Company evaluates the creditworthiness of customers prior to authorizing shipment for all major sale transactions. On a quarterly basis, the Company evaluates aged items in the accounts receivable aging report and provide an allowance in an amount deemed adequate for doubtful accounts. If the evaluation of customers’ financial conditions does not reflect a future ability to collect outstanding receivables, additional provisions may be needed. The following table reflects the changes in the Company’s allowance for doubtful accounts: Fiscal Years (In millions) 2017 2016 Allowance for doubtful accounts, at beginning of period $ 0.2 $ 0.1 Charged to bad debt expense 0.4 0.1 Write-offs charged to allowance (0.2 ) — Allowance for doubtful accounts, at end of period $ 0.4 $ 0.2 Share-Based Compensation Expense The Company has an equity-based incentive plan that provides for the grant of nonqualified stock options and restricted stock units to directors, officers and other employees. The Company also permits employees to purchase shares under the Varex employee stock purchase plan. Prior to the separation, the Company’s employees historically participated in Varian’s equity-based incentive plans. Share-based compensation expense through the date of separation included allocations to the Company based on the awards and terms previously granted to its employees as well as an allocation of Varian’s corporate and shared functional employee expenses. The Company values stock options granted and the option component of the shares of common stock purchased under the equity-based incentive plans and stock purchased under the employee stock purchase plan using the Black-Scholes option-pricing model. Share-based compensation expense for restricted stock units is measured using the fair value of the Company’s stock on the date of grant and is amortized over the award’s respective service period. The Black-Scholes option-pricing model requires the input of certain assumptions, and changes in the assumptions can materially affect the fair value estimates of share-based payment awards. The Company measures and recognizes expense for all share-based payment awards based on their fair values. Share-based compensation expense recognized in the consolidated statements of earnings includes compensation expense for the share-based payment awards based on the grant date fair value estimated in accordance with the guidance on share-based compensation. Share-based compensation expense recognized is based on the value of the portion of share-based payment awards that is ultimately expected to vest. The Company attributes the value of share-based compensation to expense using the straight-line method. The Company considers only the direct tax impacts of share-based compensation awards when calculating the amount of tax windfalls or shortfalls. Shipping and Handling Costs Shipping and handling costs are included as a component of cost of revenues. Research and Development Research and development costs have been expensed as incurred. These costs primarily include employees’ compensation, consulting fees and material costs. Software Development Costs Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No costs associated with the development of software have been capitalized, as the Company believes its current software development process is essentially completed concurrent with the establishment of technological feasibility. Taxes on Earnings Taxes on earnings, as presented, are calculated on a separate return basis. Under this method, the Company computes taxes on earnings as if it were a separate taxpayer filing its own income tax returns for the full year. However, as the Company only became an actual separate taxpayer upon separation from Varian, the amounts recorded may differ from the amounts that would have been reflected in the financial statements had it been an entity that operated independently of Varian for the entire period. This is partially due to a different tax structure and tax accounting elections and assertions for the periods before and after separation. Generally, the carrying value of net deferred tax assets assumes that the Company will generate sufficient future taxable earnings in the applicable tax jurisdictions to utilize these deferred tax assets. In the period in which the Company concludes that it will be unable to recover the net deferred tax assets in each jurisdiction, it will increase the valuation allowance and its tax provision will increase in the period in which it makes such a determination. Significant judgments and estimates are required in evaluating the Company’s tax positions and provision for taxes on earnings. The Company accounts for uncertainty in income taxes following a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that, based on the technical merits, the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Recognition and measurement are based on management’s best judgment given the facts, circumstances and information available at the end of the accounting period. The Company is subject to taxes on earnings in both the United States and numerous foreign jurisdictions. Foreign earnings are generally taxed at rates lower than United States rates, earnings in certain foreign jurisdictions are currently subject to tax in the United States, and the benefit of

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	12 Months Ended
	Sep. 29, 2017
Business Combinations [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONS Acquisition of PerkinElmer’s Medical Imaging Business On May 1, 2017, the Company completed the acquisition of the PerkinElmer, Inc. (“PKI”) Medical Imaging business (“Acquired Detector Business”) for the initial purchase price of $277.4 million , or $273.2 million after post-closing working capital adjustments. The acquisition consisted of PerkinElmer Medical Holdings, Inc. and Dexela Limited, together with certain assets of PKI and its direct and indirect subsidiaries relating to digital flat panel X-ray detectors that serve as components for industrial, medical, dental and veterinary X-ray imaging systems. The Acquired Detector Business has about 280 employees, is headquartered in Santa Clara, California and has additional operations in Germany, the Netherlands, China and the United Kingdom. The acquisition of Acquired Detector Business was pursuant to the Master Purchase and Sale Agreement, dated December 21, 2016 (the “Purchase Agreement”), by and between PKI and Varian and the subsequent Assignment and Assumption Agreement, dated January 27, 2017, by and between Varian and Varex, pursuant to which Varian assigned and conveyed all of its rights, obligations, title and interest in the Purchase Agreement to Varex. The Company believes that the acquisition could result in opportunities to increase its imaging expertise and complement its existing imaging detector business while providing revenue and cost synergy opportunities over time. The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities for the Acquired Detector Business: (In millions) Fair Value Total cash consideration $ 273.2 Allocation of the purchase consideration: Cash 1.4 Accounts Receivable 18.7 Inventory 34.7 Prepaids and other current assets 0.6 Property, plant, and equipment 21.4 Other assets, non-current 2.0 Intangibles 81.1 Goodwill 167.3 Total assets acquired 327.2 Current liabilities (17.2 ) Other liabilities, non-current (36.8 ) Total liabilities assumed (54.0 ) Net assets acquired $ 273.2 The fair value assigned to goodwill is attributable to expected cost synergy opportunities. Included in the goodwill recorded for the Acquired Detector Business is approximately $35 million that will be deductible for income tax purposes in Germany, China and the Netherlands. The remaining goodwill related to the stock acquisition in the United States is not tax deductible. Also, as a result of the acquisition, non-current deferred income tax liability increased by approximately $31 million related to basis differences for both tangible and intangible assets acquired as part of the stock purchases in the United States and the United Kingdom, and asset purchases in Germany, the Netherlands and China. The following amounts represent the preliminary determination of the fair value of identifiable intangible assets for the Acquired Detector Business, which are amortized straight-line: (In millions) Fair Value Estimated Favorable leasehold interests $ 3.8 16 Backlog 1.2 1 Trade names 1.4 5 Developed technology 37.7 7 In-process research and development 4.0 indefinite Customer relationships 33.0 7 Total intangible assets acquired $ 81.1 The following amounts represent revenues by reporting segment from the Acquired Detector Business from the acquisition date of May 1, 2017 through September 29, 2017: (In millions) May 1, 2017 through September 29, 2017 Acquired Detector Business Medical $ 41.1 Industrial 20.2 Total Acquired Detector Business revenues $ 61.3 Unaudited Pro Forma Information The unaudited pro-forma amounts presented below for the fiscal year 2017 and fiscal year 2016 are presented for informational purposes only. In addition to the Company's results for the periods presented, the amounts below also include effects of the Acquired Detector Business as if it had been consummated on October 3, 2015. Audited results for the Acquired Detector Business for the fiscal years ended 2016 and 2015, are noted in the Company’s Form 8-K/A filed with the SEC on July 7, 2017. These unaudited pro-forma results include effects that are directly attributable to the acquisition which include the amortization of intangible assets, interest expense, and other adjustments, including estimated tax effects. The unaudited pro-forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the Acquired Detector Business and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented nor are they indicative of future results of operations or results that might have been achieved had the acquisition been consummated as of October 3, 2015. Fiscal Year (In millions) 2017 2016 Revenue $ 777.8 $ 766.3 Operating earnings $ 84.7 $ 115.9 Net earnings $ 43.1 $ 64.8 Net earnings per share, basic $ 1.15 $ 1.73 Net earnings per share, diluted $ 1.13 $ 1.72

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	12 Months Ended
	Sep. 29, 2017
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	RELATED-PARTY TRANSACTIONS Transactions with Varian Medical Systems, Inc. During fiscal years 2017, 2016 and 2015, the Company recorded sales to Varian of $24.6 million , $22.5 million and $21.1 million , respectively, and recorded purchases of products from Varian of $1.9 million , $0.9 million and $2.8 million , respectively. Allocated Costs Prior to the separation on January 28, 2017, the consolidated financial statements include allocations of corporate expenses from Varian to the Company. These allocated expenses include costs of information technology, human resources, accounting, legal, facilities, insurance, treasury and other corporate and infrastructure services. Allocated costs also include research and development expenses from Varian’s scientific research facility. These costs have been allocated to the Company on the basis of direct usage when identifiable or other systematic measures that reflect utilization of services provided to or benefits received by the Company. The Company considers the expense allocation methodology and results to be reasonable for all periods presented. Allocated costs included in the accompanying consolidated statements of earnings are as follows: Fiscal Year (In millions) 2017 2016 2015 Selling, general and administrative $ 12.4 $ 37.7 $ 38.0 Research and development — 1.2 1.4 Interest expense, net of interest income 0.5 1.6 0.7 Net Parent Investment In conjunction with the separation, net parent company investment in the consolidated balance sheets and consolidated statements of equity was converted into Varex common stock. In accordance with the Separation and Distribution Agreement, the Company transferred $27.1 million to Varian during the twelve months ended 2017, which represented all cash and cash equivalents in excess of $5 million , other than any cash and cash equivalents held by MeVis Medical Solutions AG (“MeVis”) on January 28, 2017 and any Varex entities needed in order to complete the transfer of certain assets and subsidiaries from Varian. Funds held to complete these asset and subsidiary transfers was approximately $7.9 million as of 2017 and is included in accrued liabilities. Investment in Privately-Held Companies The Company has a 40% ownership interest in dpiX Holding LLC (“dpiX Holding”), a four -member consortium that has a 100% ownership interest in dpiX LLC (“dpiX”), a supplier of amorphous silicon based thin film transistor arrays for digital flat panel image detectors. In accordance with the dpiX Holding Agreement, net profits or losses are allocated to the members, in accordance with their ownership interests. The equity investment in dpiX Holding is accounted for under the equity method of accounting. When the Company recognizes its share of net profits or losses of dpiX Holding, profits or losses in inventory purchased from dpiX are eliminated until realized by the Company. In fiscal years 2017, 2016 and 2015, the Company recorded income and (loss) on the equity investment in dpiX Holding of $0.8 million , $(1.5) million and $0.1 million , respectively. Income and loss on the equity investment in dpiX Holding is included in other income (expense), net in the consolidated statements of earnings. The carrying value of the equity investment in dpiX Holding, which was included in investments in privately-held companies on the consolidated balance sheets, was $50.0 million and $47.2 million at September 29, 2017 and September 30, 2016, respectively. In fiscal years 2017, 2016 and 2015, the Company purchased glass transistor arrays from dpiX totaling $24.7 million , $23.4 million and $21.3 million , respectively. These purchases of glass transistor arrays are included as a component of inventories on the consolidated balance sheets or cost of revenues in the consolidated statements of earnings for these fiscal years. As of September 29, 2017 and September 30, 2016, the Company had accounts payable to dpiX totaling $3.4 million and $4.2 million , respectively. In October 2013, the Company entered into an amended agreement with dpiX and other parties that, among other things, provides the Company with the right to 50% of dpiX’s total manufacturing capacity produced after January 1, 2014. The amended agreement requires the Company to pay for 50% of the fixed costs (as defined in the amended agreement), as determined at the beginning of each calendar year. As of September 29, 2017, the Company estimated it has fixed cost commitments of $4.1 million related to this amended agreement through the remainder of calendar year 2017. The fixed cost commitment for future periods will be determined and approved by the dpiX board of directors at the beginning of each calendar year. The amended agreement will continue unless the ownership structure of dpiX changes (as defined in the amended agreement). The Company has determined that dpiX is a variable interest entity because at-risk equity holders, as a group, lack the characteristics of a controlling financial interest. Majority votes are required to direct the manufacturing activities, legal operations and other activities that most significantly affect dpiX’s economic performance. The Company does not have majority voting rights and no power to direct the activities of dpiX and therefore is not the primary beneficiary of dpiX. The Company’s exposure to loss as a result of its involvement with dpiX is limited to the carrying value of the Company’s investment of $50.0 million and fixed cost commitments of $4.1 million .

OTHER FINANCIAL INFORMATION

OTHER FINANCIAL INFORMATION	12 Months Ended
	Sep. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
OTHER FINANCIAL INFORMATION	OTHER FINANCIAL INFORMATION The following table summarizes the Company’s accrued liabilities: (In millions) September 29, 2017 September 30, 2016 Accrued compensation and benefits $ 26.0 $ 13.6 Product warranty 7.0 6.9 Income taxes payable 13.2 0.2 Payable to Varian Medical Systems 7.9 — Other 8.3 3.2 Total accrued liabilities $ 62.4 $ 23.9 The following table summarizes the Company’s other long-term liabilities: (In millions) September 29, 2017 September 30, 2016 Long-term income tax payable $ — $ 4.9 Environment liabilities $ 1.3 $ 0.3 Defined benefit obligation liability 3.2 — Other 0.2 0.1 Total other long-term liabilities $ 4.7 $ 5.3 The following table summarizes the Company’s other income (expense), net: Fiscal Years (In millions) 2017 2016 2015 Income (loss) from equity method investments $ 1.3 $ (1.6 ) $ 0.3 Realized income (loss) on foreign currencies 1.9 (0.9 ) 0.5 Total other income (expense), net $ 3.2 $ (2.5 ) $ 0.8

NET EARNINGS PER SHARE

NET EARNINGS PER SHARE	12 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
NET EARNINGS PER SHARE	NET EARNINGS PER SHARE Basic net earnings per common share is computed by dividing the net earnings for the period by the weighted average number of shares of common stock outstanding during the reporting period. Diluted net earnings per common share reflects the effects of potentially dilutive securities, which is computed by dividing net earnings by the sum of the weighted average number of common shares outstanding and dilutive common shares, which consists of stock options and unvested restricted stock. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per common share is as follows: Fiscal Year (In millions, except per share amounts) 2017 2016 (1) 2015 (1) Net earnings attributable to Varex $ 51.6 $ 68.5 $ 80.0 Weighted average shares outstanding - basic 37.6 37.4 37.4 Dilutive effect of potential common shares 0.4 0.3 0.3 Weighted average shares outstanding - diluted 38.0 37.7 37.7 Net earnings per share attributable to Varex - basic $ 1.37 $ 1.83 $ 2.14 Net earnings per share attributable to Varex - diluted $ 1.36 $ 1.82 $ 2.12 Anti-dilutive employee shared based awards, excluded 1.0 0.7 0.7 (1) Basic and diluted net earnings for fiscal years 2016 and 2015 is calculated using the number of common shares distributed on January 28, 2017. The Company excludes potentially dilutive common shares (consisting of shares underlying stock options and the employee stock purchase plan) from the computation of diluted weighted average shares outstanding if the inclusion of the shares underlying these stock awards would be anti-dilutive to earnings per share.

FINANCIAL DERIVATIVES AND HEDGI

FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES	12 Months Ended
	Sep. 29, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES	FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES As part of the Company’s overall risk management practices, the Company enters into financial derivatives, which include interest rate swaps designed as cash flow hedges, to hedge the LIBOR-based, floating interest rate on its debt. The Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The effective portion of the gain or loss on derivative instruments designated and qualifying for cash flow hedge accounting is deferred in other comprehensive income. Any ineffectiveness in these designated hedging relationships is recognized in current period earnings. The changes in fair value for all trades that are not designated for hedge accounting are recognized in current period earnings. Deferred gains or losses from designated cash flow hedges are reclassified into earnings in the period that the hedged interest expense effect earnings. The effectiveness of cash flow hedges is assessed at inception and quarterly thereafter. If the instrument were to no longer qualify for hedge accounting due to it becoming probable that the originally-forecasted hedged transactions will not occur, then hedge accounting would cease and the related change in fair value of the ineffective portion of the derivative instrument would be reclassified from accumulated other comprehensive income (loss) and recognized in earnings. The Company does not offset fair value amounts recognized for derivative instruments in its balance sheet for presentation purposes. Credit risk related to derivative transactions reflects the risk that a party to the transaction could fail to meet its obligation under the derivative contracts. Therefore, the Company’s exposure to the counterparty’s credit risk is generally limited to the amounts, if any, by which the counterparty’s obligations to the Company exceed the Company’s obligations to the counterparty. The Company’s policy is to enter into contracts only with financial institutions which meet certain minimum credit ratings to help mitigate counterparty credit risk. Derivatives Designated as Hedging Instruments - Cash Flow Hedges The Company uses interest rate swap contracts as cash flow hedges to manage its exposure to fluctuations in LIBOR interest rates. Interest rate swap contracts hedging variable rate debt effectively fix the LIBOR component of its interest rate for a specific period of time. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is deferred as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets and is subsequently reclassified into earnings in the period that the hedged interest expense effects earnings. The ineffective portion of the changes in fair value of derivatives designated as cash flow hedges are recognized directly to earnings and reflected in the accompanying consolidated statements of earnings. No ineffectiveness was reported in earnings for fiscal year 2017. As of September 29, 2017, the Company had the following outstanding derivatives designated as hedging instruments: (In millions, except for number of instruments) Number of Instruments Notional Value Interest Rate Swap Contracts 6 $ 292.5 These contracts have maturities of four years or less. The following table summarizes the amount of income recognized from derivative instruments for the periods indicated and the line items in the accompanying statements of operations where the results are recorded for cash flow hedges: Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Fiscal Year Ended Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Fiscal Year Ended Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) (In millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Interest Rate Swap Contracts $ 0.6 $ — $ — Interest expense $ (0.3 ) $ — $ — Interest expense $ — $ — $ — The Company expects that approximately $0.9 million recorded as a component of accumulated other comprehensive income (loss) will be realized in the statements of earnings over the next 12 months and the amount will vary depending on interest rates. These derivative instruments are subject to master netting agreements giving effect to rights of offset with each counterparty. The following table summarizes the fair values of derivative instruments as of the periods indicated and the line items in the accompanying consolidated balance sheets where the instruments are recorded: Derivative Assets Derivative Liabilities (In millions) September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Derivatives designated as cash flow hedges Balance sheet location Balance sheet location Interest rate swap contracts Other non-current assets $ 1.6 $ — Other non-current assets $ — $ — Interest rate swap contracts Other current liabilities — — Other current liabilities (0.6 ) — $ 1.6 $ — $ (0.6 ) $ —

BORROWINGS

BORROWINGS	12 Months Ended
	Sep. 29, 2017
Debt Disclosure [Abstract]
BORROWINGS	BORROWINGS Credit Facility On January 25, 2017, the Company entered into a revolving credit facility (the "Previous Revolving Credit Facility"), which matured in five years , and a term facility (the "Previous Term Facility"), which was to be repaid over five years, with 7.5% payable in quarterly installments during the first two years, 10% payable in quarterly installments during the third and fourth years and 15% payable in quarterly installments in the fifth year. The credit agreement relating to the Previous Revolving Credit Facility and the Previous Term Facility (the “Previous Credit Agreement”) contained various customary restrictive covenants that limited, among other things, the incurrence of indebtedness by Varex and its subsidiaries, the grant or incurrence of liens by Varex and its subsidiaries, the entry into sale and leaseback transactions by Varex and its subsidiaries, and the entry into certain fundamental change transactions by Varex and its subsidiaries. It also contained customary events of default and certain financial covenants, including the requirement to maintain certain financial ratios. The Previous Credit Agreement was secured by the stock and assets of certain Varex subsidiaries. The Previous Credit Agreement had several borrowing and interest rate options including the following indices: (i) the LIBOR rate, or (ii) the base rate (equal to the greater of the prime rate, the federal funds rate plus 0.50% or the LIBOR rate for a one-month period plus 1.00% ). Loans under the Previous Credit Agreement bore interest at a rate per annum using the applicable indices plus a varying interest rate margin of between 1.125% and 2.125% . The Previous Credit Agreement also provided for fees applicable to amounts available to be drawn under outstanding letters of credit of 0.125% and a fee on unused commitments which ranges from 0.20% to 0.40% . On January 25, 2017, Varex borrowed $203 million under Previous Term Facility and transferred $200.0 million to Varian. On May 1, 2017, Varex repaid the Previous Term Agreement and Previous Credit Agreement and terminated both agreements. On May 1, 2017 and in connection with the Acquired Detector Business, the Company entered into a new secured revolving credit facility (the "Revolving Credit Facility") in an aggregate principal amount of up to $200 million with a five -year term, and a secured term facility (the "Term Facility" and together with the Revolving Credit Facility, the "Credit Agreement") in an aggregate principal amount of $400 million . The Term Facility will be repaid over five years, with 5.0% payable in quarterly installments during each of the first two years of the term thereof, 7.5% payable in quarterly installments during the third and fourth years of the term thereof, and 10% payable in quarterly installments in the fifth year of the term thereof, with the remaining amount due at maturity. Varex used the net proceeds from the Term Facility, and the net proceeds from approximately $97 million drawn on the Revolving Credit Facility, to pay the approximately $276 million purchase price for the Acquired Detector Business, plus related credit facility fees, and to repay all of Varex’s obligations under the Previous Credit Agreement. Both the Term Facility and Revolving Credit Facility expire on May 1, 2022. The Credit Agreement contains various customary restrictive covenants that limits, among other things, the incurrence of indebtedness by Varex and its subsidiaries, the grant or incurrence of liens by Varex and its subsidiaries, the entry into sale and leaseback transactions by Varex and its subsidiaries, and the entry into certain fundamental change transactions by Varex and its subsidiaries. It also contains customary events of default and certain financial covenants, including the requirement to maintain certain financial ratios. The Company was in compliance with all financial covenants under the Credit Agreement as of September 29, 2017. The Credit Agreement is secured by the stock and assets of Varex’s material subsidiaries. The Credit Agreement has several borrowing and interest rate options including the following indices: (a) LIBOR rate, or (b) the base rate (equal to the greater of the prime rate, the federal funds rate plus 0.50% or the LIBOR rate for a one-month period plus 1.00% ). Loans under the Credit Agreement bear interest at a rate per annum using the applicable indices plus a varying interest rate margin of between 1.75% and 2.75% (for LIBOR rate loans) and 0.75% - 1.75% (for base rate loans). The Credit Agreement also provides for fees applicable to amounts available to be drawn under outstanding letters of credit of 0.125% , and a fee on unused commitments which ranges from 0.25% to 0.40% . At September 29, 2017 , the Company had $463.9 million in long-term debt outstanding and $20.0 million of current maturities of long-term debt outstanding, net of deferred issuance costs of $10.1 million .

FAIR VALUE

FAIR VALUE	12 Months Ended
	Sep. 29, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE Assets/Liabilities Measured at Fair Value on a Recurring Basis In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. (In millions) Fair Value Measurements at September 29, 2017 Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Significant Unobservable Inputs Total Assets: Cash equivalents - Money market funds $ — $ 11.4 $ — $ 11.4 Interest rate swap contracts — 1.6 — 1.6 Total assets measured at fair value $ — $ 13.0 $ — $ 13.0 Liabilities: Interest rate swap contracts $ — $ 0.6 $ — $ 0.6 As of September 29, 2017, the outstanding borrowings under the Company's credit agreement were $483.9 million , net of deferred loan costs, which approximated its fair value because it is carried at a market observable interest rate that resets periodically and is categorized as Level 2 in the fair value hierarchy. The fair values of certain of the Company’s financial instruments, including bank deposits included in cash and cash equivalents, accounts receivable and accounts payable, also approximate their fair values due to their short maturities. At September 30, 2016, the Company did not have any assets or liabilities measured at fair value on a recurring basis. There were no financial assets or liabilities measured on a recurring basis using significant unobservable inputs (Level 3) and there were no transfers in or out of Level 1, 2 or 3 during fiscal year 2017.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Sep. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS The following table reflects goodwill by reportable operating segment: (In millions) Medical Industrial Total Balance at September 30, 2016 55.7 19.0 74.7 Business combinations - PerkinElmer Medical Imaging Business 91.3 76.0 167.3 Disposition of business (0.1 ) — (0.1 ) Balance at 2017 146.9 95.0 241.9 In the fourth quarter of fiscal year 2016, the Company realigned its segments and goodwill was re-allocated to the Medical and Industrial reporting units based on their relative fair values. There were no impairment charges recognized as a result of the change in reporting units between September 30, 2016 and September 29, 2017. The following table reflects the gross carrying amount and accumulated amortization of the Company’s finite-lived intangible assets included in other assets in the consolidated balance sheets: (In millions) September 29, 2017 September 30, 2016 (1) Acquired existing technology $ 57.0 $ 22.4 Patents, licenses and other 19.4 10.2 Customer contracts and supplier relationship 42.1 9.1 Accumulated amortization (31.2 ) (21.0 ) Total intangible assets with finite lives 87.3 20.7 In-process research and development with indefinite lives 4.0 0.0 Total intangible assets $ 91.3 $ 20.7 (1) The Company identified immaterial errors in prior periods relating to the classification of licenses and customer contracts. The impact of these errors were not material to any prior period. Consequently, the Company corrected the errors by revising the prior year intangible assets disclosure.The corrections had no impact on the consolidated balance sheets, income statement or statements of cash flows. Amortization expense for intangible assets was $10.5 million , $5.5 million and $2.7 million in fiscal years 2017, 2016 and 2015, respectively. As of September 29, 2017, the estimated future amortization expense of intangible assets with finite lives is as follows: (In millions) Fiscal years: 2018 $ 16.1 2019 15.0 2020 14.6 2021 13.4 2022 11.8 Thereafter 16.4 Total $ 87.3

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Lease Commitments At September 29, 2017, the Company was committed to minimum rentals under non-cancelable operating leases (including rent escalation clauses) for fiscal years 2018 through 2022 and thereafter, as follows: $4.0 million , $3.3 million , $3.0 million , $2.6 million , $2.6 million , and $0.9 million , respectively. Rental expenses were $4.0 million , $2.8 million , and $1.4 million for fiscal years 2017, 2016 and 2015, respectively. Other Commitments See Note 3, “Related Party Transactions” for additional information about the Company’s commitments to dpiX. See Note 11, “Redeemable Noncontrolling Interests & Noncontrolling Interests” for additional information about the Company’s commitment to the noncontrolling shareholders of MeVis. The Company has an environmental liability of approximately $1.3 million as of September 29, 2017 due to Varian for Varex's portion of future estimated environmental costs. Contingencies From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that the Company believes will result in a probable loss (including, among other things, probable settlement value). A loss or a range of loss is disclosed when it is reasonably possible that a material loss will be incurred and can be estimated or when it is reasonably possible that the amount of a loss, when material, will exceed the recorded provision. The Company did not have any contingent liabilities as of September 29, 2017 and September 30, 2016. Legal expenses are expensed as incurred.

REDEEMABLE NONCONTROLLING INTER

REDEEMABLE NONCONTROLLING INTERESTS AND NONCONTROLLING INTERESTS	12 Months Ended
	Sep. 29, 2017
Noncontrolling Interest [Abstract]
REDEEMABLE NONCONTROLLING INTERESTS AND NONCONTROLLING INTERESTS	REDEEMABLE NONCONTROLLING INTERESTS & NONCONTROLLING INTERESTS In April 2015, the Company completed the acquisition of 73.5% of the then outstanding shares of MeVis Medical Solutions AG (“MeVis”), a public company based in Bremen, Germany that provides image processing software and services for cancer screening. In August 2015, the Company, through one of its German subsidiaries, entered into a domination and profit and loss transfer agreement (the “DPLTA”) with MeVis. In October 2015, the DPLTA became effective upon its registration at the local court of Bremen, Germany. Under the DPLTA, MeVis subordinates its management to the Company and undertakes to transfer all of its annual profits and losses to the Company. In return, the DPLTA grants the noncontrolling shareholders of MeVis: (1) an annual recurring net compensation of €0.95 per MeVis share starting from January 1, 2015 and (2) a put right for their MeVis shares at €19.77 per MeVis share. Upon effectiveness of the DPLTA, the noncontrolling interests in MeVis became redeemable as a result of the put right and were reclassified to temporary equity. As of September 29, 2017, the redemption value of redeemable noncontrolling interests in MeVis was $11.2 million . During fiscal year 2017, an immaterial number of MeVis’ shares were purchased under the put right. As of September 29, 2017, noncontrolling shareholders together held approximately 0.5 million shares of MeVis, representing 26.4% of the outstanding shares. Changes in redeemable noncontrolling interests and noncontrolling interests relating to MeVis were as follows: Fiscal Years 2017 2016 (In millions) Redeemable Noncontrolling Redeemable Balance at beginning of period $ 10.3 $ 11.0 $ — Net earnings attributable to noncontrolling interests 0.4 — 0.5 Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests — (10.4 ) 10.4 Other 0.5 (0.6 ) (0.6 ) Balance at end of period $ 11.2 $ — $ 10.3

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS	12 Months Ended
	Sep. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EMPLOYEE STOCK PLANS	EMPLOYEE STOCK PLANS Employee Stock Plans The Company's employees participate in Varex Imaging Corporation 2017 Omnibus Stock Plan (the "2017 Stock Plan") and Varex Imaging Corporation 2017 Employee Stock Purchase Plan (the "2017 ESPP") which allows the grants of stock options, restricted stock units and performance shares among other types of awards. Prior to the separation and distribution, the Company’s employees participated in Varian's stock-based compensation plans, which provided for the grants of stock options, restricted stock units and performance shares among other types of awards under Varian’s Third Amended and Restated 2005 Omnibus 2005 Stock Plan. In January 2017, Varex stockholders approved the 2017 ESPP, which provides eligible employees with an opportunity to purchase shares of Varex common stock at 85% of the lower of its fair market value at the start and end of a six months purchase period. The 2017 ESPP provides for the purchase of up to one million shares of Varex common stock. Share-Based Compensation Expense As share-based compensation expense recognized in the consolidated statements of earnings is based on awards ultimately expected to vest. Share-based compensation expense includes expenses related to the Company’s direct employees. Prior to the separation, Varian also charged the Company for the allocated share-based compensation costs of certain employees of Varian who provided selling, general and administrative services on the Company’s behalf. The table below summarizes the effect of recording share-based compensation expense and for the option component of the employee stock purchase plan shares: Fiscal Year (In millions) 2017 2016 2015 Cost of revenues $ 0.9 $ 1.0 $ 1.3 Research and development 1.5 1.4 1.4 Selling, general and administrative (1) 6.0 7.1 6.9 Total share-based compensation expense $ 8.4 $ 9.5 $ 9.6 (1) Includes allocated share-based compensation of $0.8 million , $3.4 million and $3.2 million for fiscal years 2017, 2016 and 2015, respectively, and represents charges by Varian to the Company for certain Varian employees who provided general and administrative services on the Company’s behalf. The unrecognized share-based compensation cost as of September 29, 2017 was $17.5 million , and is expected to be recognized in the next 3 to 4 fiscal years. As of September 29, 2017 , there were approximately 5.3 million and 1.0 million shares of common stock available for future issuances under the 2017 Stock Plan and the 2017 ESPP, respectively. The Company utilized the Black-Scholes valuation model for estimating the fair value of stock options granted and the option component of the 2017 ESPP. The Company calculated the fair value of each option grant and option component of the 2017 ESPP on the respective dates of grant using the following weighted average assumptions: Employee Stock Option Plan Employee Stock Purchase Plans Fiscal Year Fiscal Year 2017 2017 Expected term (in years) 4.2 0.5 Risk-free interest rate 1.6 % 1.0 % Expected volatility 23.6 % 28.0 % Expected dividend 0.0 % 0.0 % Weighted average fair value at grant date $8.08 $7.81 Option valuation methods, including Black-Scholes, require the input of subjective assumptions, which are discussed below. Risk-Free Interest Rate The interest rates used are based on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award. Expected Term Options granted generally vest over a period of 36 to 48 months and expire 7 to 10 years from date of grant. Employee stock purchase plan offering periods are 6 months and provides eligible employees with an opportunity to purchase shares of Varex common stock at 85% of the lower of its fair market value at the start and end of a six-month purchase period. Expected Dividend Yield The dividend rate used is zero as the Company has never paid any cash dividends on its common stock and does not anticipate doing so in the foreseeable future. The Company is also restricted from paying dividends on common stock under its credit facility. Expected Volatility Authoritative accounting guidance on stock-based compensation indicates that companies should consider volatility over a period generally commensurate with the expected or contractual term of the stock option. Adequate Company-specific data does not exist for this time period as the Company began trading in January 2017. The volatility variable used is a benchmark of other comparable companies’ volatility rates. Stock Option Activity The following table summarizes the activity for stock options under Varex’s employee incentive plans for the Company’s employees: (In thousands, except per share amounts and the remaining term) Options Outstanding Price range Weighted Average Weighted Average Remaining Term (in years) Aggregate Intrinsic Value (2) Balance at September 30, 2016 (1) 1,015 $17.53 - $30.74 $ 26.14 Granted 1,052 $31.08 - $34.13 31.20 Canceled, expired or forfeited (18) $25.17 - $30.74 27.85 Exercised (123) $17.53 - $30.74 22.61 Balance at September 29, 2017 1,926 $19.21 - $34.13 $ 29.11 5.3 $ 9,118.1 Exercisable at September 29, 2017 709 $19.21 - $34.13 $ 26.74 3.7 $ 5,032.1 (1) The outstanding options at September 30, 2016 represent outstanding options after converting such awards in accordance with the Employee Matters Agreement filed as Exhibit 10.3 to the Company's Form 10 filed with the SEC on January 12, 2017. (2) The aggregate intrinsic value represents the total pre-tax intrinsic value, which is computed based on the difference between the exercise price and the closing price of Varex common stock of $33.84 as of September 29, 2017, the last trading date of the Company's fiscal 2017, and which represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date. Restricted Stock Units, Restricted Stock Awards and Deferred Stock Units The following table summarizes the activity for restricted stock units, restricted stock awards and deferred stock units under Varex’s employee incentive plans for the Company’s employees: (In thousands, except per share amounts) Number of Shares Weighted Average Balance at September 30, 2016 (1) 385 $ 27.42 Granted 337 31.33 Vested (189) 27.90 Canceled or expired (8) 26.71 Balance at September 29, 2017 525 $ 29.54 (1) The outstanding RSUs at September 30, 2016 represent outstanding units after converting such units in accordance with the Employee Matters Agreement filed as Exhibit 10.3 to the Company's Form 10 filed with the SEC on January 12, 2017. The total grant-date fair value of shares granted in fiscal year 2017 was $11.4 million . Shares outstanding at September 29, 2017 had an estimated market value of $17.8 million .

TAXES ON EARNINGS

TAXES ON EARNINGS	12 Months Ended
	Sep. 29, 2017
Income Tax Disclosure [Abstract]
TAXES ON EARNINGS	TAXES ON EARNINGS Taxes on earnings, as presented, are calculated on a separate return basis. Under this method, the Company computes taxes on earnings as if it were a separate taxpayer filing its own income tax returns for the full year. However, as the Company only became an actual separate taxpayer upon separation from Varian, the amounts recorded may differ from the amounts that would have been reflected in the financial statements had it been an entity that operated independently of Varian for the entire period. This is partially due to a different tax structure and tax accounting elections and assertions for the periods before and after separation. The Company’s operations have historically been included in Varian’s U.S. federal and state income tax returns and non-U.S. jurisdiction tax returns. Income tax expense is based on reported income or loss before income taxes. Deferred income taxes reflect the effect of temporary differences between asset and liability amounts that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. These deferred taxes are measured by applying currently enacted tax laws. Valuation allowances are recognized to reduce deferred tax assets to the amount that is more likely than not to be realized. Taxes on earnings were as follows: Fiscal Years (In millions) 2017 2016 2015 Current provision: Federal $ 24.8 $ 26.4 $ 40.2 State and local 1.6 3.9 4.9 Foreign 5.3 2.0 2.5 Total current 31.7 32.3 47.6 Deferred provision (benefit): Federal (7.0 ) 3.6 (1.4 ) State and local (1.0 ) — (0.1 ) Foreign (0.9 ) 0.1 0.7 Total deferred (8.9 ) 3.7 (0.8 ) Taxes on earnings $ 22.8 $ 36.0 $ 46.8 Earnings before taxes are generated from the following geographic areas: Fiscal Years (In millions) 2017 2016 2015 United States $ 55.5 $ 105.6 $ 122.9 Foreign 19.3 (0.6 ) 4.7 Earnings before taxes $ 74.8 $ 105.0 $ 127.6 The effective tax rate differs from the U.S. federal statutory tax rate as a result of the following: Fiscal Years 2017 2016 2015 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 1.3 % 2.4 % 2.5 % Domestic production activities deduction (2.4 )% (2.2 )% (2.3 )% Research and development credit (2.6 )% (2.2 )% (0.6 )% Foreign deferred tax adjustments (4.0 )% — % — % Change in valuation allowance 3.8 % — % — % Other (0.6 )% 1.3 % 2.1 % Effective tax rate 30.5 % 34.3 % 36.7 % During fiscal years 2017, 2016 and 2015, the Company’s effective tax rate varied from the U.S. federal statutory rate primarily because of a difference in the mix of earnings by jurisdiction and overall global tax structure for Varex as a stand-alone company compared to the prior years when it was part of Varian. The effective tax rate is also impacted by the benefit of adjustments to certain deferred tax assets and the release of valuation allowances in jurisdictions where increased earnings allowed for the utilization of net operating loss carryforwards. The effective tax rate also differs from the U.S. federal statutory rate due to increases resulting from U.S. state income tax expense and earnings in certain foreign jurisdictions that are taxed currently in the U.S. These increases are partially offset by decreases due to earnings in foreign jurisdictions that are taxed at lower rates, a U.S. domestic production activities deduction, and research and development credits. Due to the timing of lapses and retroactive reinstatements of the federal research and development credit, the Company received seven quarters of benefit in fiscal year 2016 and four quarters of benefit in fiscal year 2015. Significant components of deferred tax assets and liabilities are as follows: (In millions) September 29, 2017 September 30, 2016 Deferred Tax Assets: Inventory adjustments $ 15.0 $ 13.3 Share-based compensation 1.9 2.8 Product warranty 2.2 2.3 Deferred compensation 1.3 1.2 Net operating loss carryforwards 2.4 7.7 Accrued vacation 2.1 — Excess foreign tax credits 1.9 — Other 2.2 6.0 29.0 33.3 Valuation allowance (4.3 ) (6.4 ) Total deferred tax assets 24.7 26.9 Deferred Tax Liabilities: Acquired intangibles (26.4 ) (6.5 ) Property, plant and equipment (19.9 ) (10.1 ) Investments in privately held companies (6.9 ) (6.7 ) Other (1 ) (1.1 ) Total deferred tax liabilities (54.2 ) (24.4 ) Net deferred tax (liabilities) assets $ (29.5 ) $ 2.5 Reported As: Deferred tax assets $ 25.3 $ 5.5 Deferred tax liabilities (54.8 ) (3.0 ) Net deferred tax (liabilities) assets $ (29.5 ) $ 2.5 The Company has not provided for U.S. federal income and foreign withholding taxes on approximately $45.5 million of cumulative undistributed earnings of non-U.S. subsidiaries as of September 29, 2017. Such earnings are intended to be reinvested in the non-U.S. subsidiaries for an indefinite period of time. If such earnings were not considered to be reinvested indefinitely, an additional deferred tax liability of approximately $4.9 million would be provided. The Company has federal net operating loss carryforwards of approximately $10.9 million expiring between 2019 and 2024. The valuation allowance relates primarily to excess foreign tax credits in the U.S. and net operating losses in certain foreign jurisdictions where, based on the weight of available evidence, it is more likely than not that the tax benefit of the net operating losses will not be realized. The valuation allowance decreased by $2.1 million during fiscal year 2017, increased by $1.7 million during fiscal year 2016 and increased by $3.2 million during fiscal year 2015. In addition, the current year change in the valuation allowance is impacted by adjustments to deferred tax balances resulting from the separation from Varian that did not impact the current year effective tax rate. In fiscal year 2017, the Company paid U.S and foreign taxes of approximately $6.0 million . In fiscal year 2016, the Company’s separate, taxpaying legal entities received a federal refund of approximately $0.6 million and paid foreign taxes of approximately $1.0 million . In fiscal year 2015, the Company’s separate, taxpaying legal entities paid foreign taxes of approximately $0.7 million . For other jurisdictions and periods, the Company’s operations have been included in Varian’s U.S. federal and state income tax returns and non-U.S. jurisdiction tax returns. The Company accounts for uncertainty in income taxes following a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that, based on the technical merits, the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Changes in the Company’s unrecognized tax benefits were as follows: Fiscal Years (In millions) 2017 2016 2015 Unrecognized tax benefits balance–beginning of fiscal year $ 4.4 $ 4.5 $ 4.5 Additions based on tax positions related to a prior year — — 0.1 Additions based on tax positions related to the current year 0.5 1.0 1.0 Reductions resulting from the expiration of the applicable statute of limitations — (1.1 ) (1.1 ) Adjustments resulting from current year separation (4.4 ) — — Unrecognized tax benefits balance—end of fiscal year $ 0.5 $ 4.4 $ 4.5 As of September 29, 2017, the total amount of gross unrecognized tax benefits was $0.5 million , all of which would affect the effective tax rate if recognized. As of September 30, 2016, the total amount of gross unrecognized tax benefits was $4.4 million . As a result of the separation from Varian, all of the gross unrecognized tax benefits through September 30, 2016 were retained by Varian and none were transferred to Varex. The Company includes interest and penalties related to income taxes within taxes on earnings on the Combined Statements of Earnings. As the initial tax returns for the year ended September 29, 2017 are not yet due, no interest or penalties related to unrecognized tax benefits have been included in taxes on earnings for that period. As of September 30, 2016, the Company had accrued $0.4 million for the payment of interest and penalties related to unrecognized tax benefits. During fiscal year 2016, a net benefit of an immaterial amount related to interest and penalties was included in taxes on earnings. As of October 2, 2015, the Company had accrued $0.5 million for the payment of interest and penalties related to unrecognized tax benefits. During fiscal year 2015, a net benefit of an immaterial amount related to interest and penalties was included in taxes on earnings. The Company will file U.S. Federal and state income tax returns and non-U.S. income tax returns in various jurisdictions. All of these returns will be subject to examination by their respective taxing jurisdictions from the date of filing through each applicable statute of limitation period. The Company’s significant operations up to the date of separation have historically been included in Varian’s U.S. federal and state income tax returns and non-U.S. jurisdiction tax returns. The Varian group’s U.S. federal tax returns are generally no longer subject to tax examinations for years prior to 2013. For U.S. states and other foreign tax returns, the Company is generally no longer subject to tax examinations for years prior to 2007.

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION As part of the Company's transition to a stand-alone company, the Company’s Chief Executive Officer, who is also its Chief Operating Decision Maker (“CODM”), re-evaluated the product groupings and how he views and measures the business performance, and, therefore, subsequent to the filing of the preliminary registration statement on Form 10 on August 11, 2016, the Company reorganized its two reportable operating segments into Medical and Industrial. The realigned segments better align the Company’s products and service offerings with customer use in medical and industrial markets and are consistent with how the CODM evaluates the business for the allocation of resources. The CODM allocates resources to and evaluates the financial performance of each operating segment primarily based on revenues and gross margin. The new operating and reportable segment structure provides better visibility and clarity into the financial performance of the Company’s products, as well as an alignment between business strategies and operating results. Description of Segments The Medical segment designs, manufactures, sells and services X-ray imaging components for use in a range of applications, including radiographic and fluoroscopic imaging, mammography, computed tomography, radiation therapy and computer-aided detection. The Company provides a broad range of X-ray imaging components for Medical customers including X-ray tubes, digital flat panel detectors, generators, high voltage connectors, image-processing software and workstations, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, ionization chambers and buckys. The Company’s X-ray imaging components are primarily sold to imaging system OEM customers that incorporate them into their medical diagnostic, radiation therapy, dental, veterinary and industrial imaging systems. The Company also sells its X-ray imaging components to independent service companies, distributors and directly to end-users for replacement purposes. The Industrial segment designs, manufactures, sells and services products for use in the security and industrial inspection applications, such as airport security, cargo screening at ports and borders and nondestructive examination in a variety of applications. The products include Linatron X-ray accelerators, X-ray tubes, digital flat panel detectors, high voltage connectors and image processing software that we generally sell to OEM customers that incorporate these products into their inspection systems. Accordingly, the following information is provided for purposes of achieving an understanding of operations, but it may not be indicative of the financial results of the reported segments were they independent organizations. In addition, comparisons of the Company’s operations to similar operations of other companies may not be meaningful. Information related to the Company’s segments is as follows: Fiscal Year (In millions) 2017 2016 2015 Revenues Medical $ 556.9 $ 505.8 $ 534.3 Industrial 141.2 114.3 98.0 Total revenues 698.1 620.1 632.3 Gross margin Medical 193.6 195.8 207.1 Industrial 59.9 52.6 43.5 Total gross margin 253.5 248.4 250.6 Total operating expenses 169.8 139.3 123.1 Interest and other income (expenses), net (8.9 ) (4.1 ) 0.1 Earnings before taxes 74.8 105.0 127.6 Taxes on earnings 22.8 36.0 46.8 Net earnings 52.0 69.0 80.8 Less: Net earnings attributable to noncontrolling interests 0.4 0.5 0.8 Net earnings attributable to Varex $ 51.6 $ 68.5 $ 80.0 The following table summarizes the Company’s total assets by its reportable segments: (In millions) September 29, 2017 September 30, 2016 Identifiable assets: Medical $ 832.1 $ 481.4 Industrial 208.0 134.7 Total reportable segments $ 1,040.1 $ 616.1 Unallocated corporate assets — 6.3 Total combined assets $ 1,040.1 $ 622.4 Geographic Information Revenues Property, plant and equipment, net Fiscal Year Fiscal Years (In millions) 2017 2016 2015 2017 2016 Americas $ 239.8 $ 224.7 $ 249.2 $ 132.1 $ 98.0 EMEA 219.5 179.5 153.0 8.4 2.5 APAC 238.8 215.9 230.1 7.8 8.4 Total company $ 698.1 $ 620.1 $ 632.3 $ 148.3 $ 108.9 The Company operates various manufacturing and marketing operations outside the United States. The Americas includes North America (primarily United States) and Latin America. EMEA includes Europe, Russia, the Middle East, India and Africa. APAC includes Asia and Australia. Revenues by region are based on the known final destination of products sold.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Sep. 29, 2017
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS Varex’s 401(k) plan became effective on January 1, 2017. Varex’s 401(k) plan is intended to be qualified under Section 401(a) of the Code with the 401(k) plan’s related trust intended to be tax exempt under Section 501(a) of the Code and intended for all full-time employees in the United States. This plan allows employees to contribute a portion of their pretax salary up to the maximum dollar limitation prescribed by the Internal Revenue Service. Prior to Varex's 401(k) plan becoming effective, Company employees participated in Varian's 401(k) plan. The Company made matching contributions to the plan totaling $4.3 million , $3.3 million and $3.1 million in fiscal year 2017, 2016 and 2015, respectively. The Company also maintains defined benefit plans for employees located outside the US. The net pension liability is included in non-current liability on the Company's Consolidated Balance Sheets and totaled $3.2 million as of September 29, 2017. Prior to the separation from Varian, net pension liability was held at Varian and not allocated to the Company.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Basis of Presentation	The accompanying consolidated financial statements are audited and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Prior to the date of separation and distribution, the financial statements were prepared on a stand-alone basis and are derived from Varian’s consolidated financial statements and records as it operated as part of Varian prior to the distribution, in conformity with GAAP.
Consolidation	Prior to the separation, the Company was dependent upon Varian for its working capital and financing requirements, as Varian uses a centralized approach to cash management and financing of its operations. Financial transactions relating to the Company were accounted for through the net parent investment account. Cash and cash equivalents held by Varian were not allocated to the Company. Net parent investment in the consolidated balance sheets and statements of equity represents Varian’s historical investment in the Company, the net effect of transactions with and allocations from Varian and the Company’s accumulated earnings.
Segment Reporting	Segment Reporting The Company has two reportable operating segments; (i) Medical and (ii) Industrial which align with how its CEO, who is identified as the CODM, views and measures the Company’s business performance. In fiscal year 2016, we re-segmented the Company's operating segments and reclassified the segment data for the prior years to conform to the current year presentation.
Fiscal Year	Fiscal Year The fiscal years of the Company as reported are the 52 or 53-week period ending on the Friday nearest September 30. Fiscal year 2017 is the 52-week period ending September 29, 2017. Fiscal year 2016 was the 52-week period that ended on September 30, 2016. Fiscal year 2015 was the 52-week period that ended on October 2, 2015.
Variable Interest Entities	Variable Interest Entities For entities in which the Company has variable interests, the Company focuses on identifying which entity has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. If the Company is the primary beneficiary of a variable interest entity, the assets, liabilities and results of operations of the variable interest entity will be included in the Company’s consolidated financial statement. As of September 29, 2017, the Company had two variable interest entities, only one of which were consolidated, because it was determined that the Company was the primary beneficiary.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers currency on hand, demand deposits, time deposits and all highly-liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents.
Fair Value	Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. There is a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or, other inputs that are observable or can be corroborated by observable market data. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Derivative instruments and hedging activities	Derivative instruments and hedging activities The Company records all derivatives on the balance sheet at fair value. For a derivative such as an interest rate swap that is designated as a cash flow hedge, the effective portion of changes in the fair value of the derivative is initially reported in accumulated other comprehensive income (loss) on the consolidated balance sheet and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. To the extent the effective portion of a hedge subsequently becomes ineffective, the corresponding amount of the change in fair value of the derivative initially reported in accumulated other comprehensive income (loss) is reclassified and is recognized directly in earnings. Accordingly, on a quarterly basis, the Company assesses the effectiveness of each hedging relationship by comparing the changes in fair value or cash flows of the derivative hedging instrument with the changes in fair value or cash flows of a hypothetical designated perfect hedged item or transaction. If the change in the actual swap is greater than the change in the hypothetical perfect swap, the difference is referred to as “ineffectiveness” and is recognized in earnings in the current period.
Concentration of Risk	Concentration of Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade accounts receivable. Cash held with financial institutions may exceed the Federal Deposit Insurance Corporation insurance limits or similar limits in foreign jurisdictions. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company performs ongoing credit evaluations of its customers and, except for government tenders, group purchases and orders with a letter of credit, its industrial customers often provide a down payment. The Company maintains an allowance for doubtful accounts based upon the expected collectability of all accounts receivable. The Company obtains some of the components in its products from a limited group of suppliers or from a single-source supplier.
Inventories, net	Inventories, net Inventories, net are valued at net realizable value. Excess and obsolete inventories are determined primarily based on future demand forecasts, and write-downs of excess and obsolete inventories are recorded as a component of cost of revenues. Cost is computed using standard cost (which approximates actual cost) on a first-in-first-out basis.
Property, Plant and Equipment, net	Property, Plant and Equipment, net Property, plant and equipment are stated at cost, net of accumulated depreciation. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Land is not subject to depreciation, but land improvements are depreciated over fifteen years. Land leasehold rights and leasehold improvements are amortized over the lesser of their estimated useful lives or remaining lease terms. Buildings are depreciated over twenty years. Machinery and equipment are depreciated over their estimated useful lives, which range from three to seven years. Assets subject to lease are amortized over the lesser of their estimated useful lives or remaining lease terms. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted, and an impairment assessment may be performed on the recoverability of the carrying amounts. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are removed from the accounts.
Investments	Investments The Company accounts for its equity investments in privately-held companies under the equity method of accounting if the Company has the ability to exercise significant influence in these investments. The Company monitors these equity investments for impairment and makes appropriate reductions in carrying values if the Company determines that impairment charges are required based primarily on the financial condition and near-term prospects of these companies.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. Purchased intangible assets are carried at cost, net of accumulated amortization, and are included in intangible assets in the Company's consolidated balance sheets. Intangible assets with finite lives are amortized over their estimated useful lives of primarily two to seven years using the straight-line method.
Impairment of Long-lived Assets, Intangible Assets and Goodwill	Impairment of Long-lived Assets, Intangible Assets and Goodwill The Company reviews long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company assesses these assets for impairment based on their estimated undiscounted future cash flows. If the carrying value of the assets exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any impairment charges for long-lived assets and identifiable intangible assets during any of the periods presented. The Company evaluates goodwill and indefinite lived intangible assets qualitatively for impairment at least annually in beginning of the fourth quarter of each fiscal year or whenever an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If the Company determines that a quantitative analysis is necessary, the impairment test for goodwill is currently a two-step process. Step one consists of a comparison of the fair value of a reporting unit against its carrying amount, including the goodwill allocated to each reporting unit. The Company determines the fair value of its reporting units based on a combination of income and market approaches. The income approach is based on the present value of estimated future cash flows of the reporting units, and the market approach is based on a market multiple calculated for each reporting unit based on market data of other companies engaged in similar business. If the carrying amount of the reporting unit is in excess of its fair value, step two requires the comparison of the implied fair value of the reporting unit’s goodwill against the carrying amount of the reporting unit’s goodwill. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as an impairment loss. The impairment test for intangible assets with indefinite useful lives, if any, consists of a comparison of fair value to carrying value, with any excess of carrying value over fair value being recorded as an impairment loss.
Loss Contingencies	Loss Contingencies From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that it believes will result in a probable loss.
Product Warranty	Product Warranty The Company warrants most of its products for a specific period of time, usually 12 to 24 months from delivery or acceptance, against material defects. The Company provides for the estimated future costs of warranty obligations in cost of revenues when the related revenues are recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that the Company will incur to repair or replace product parts that fail while still under warranty. The amount of the accrued estimated warranty costs obligation for established products is primarily based on historical experience as to product failures adjusted for current information on repair costs. For new products, estimates include the historical experience of similar products, as well as reasonable allowance for warranty expenses associated with new products. On a quarterly basis, the Company reviews the accrued warranty costs and updates the historical warranty cost trends, if required.
Revenue Recognition	Revenue Recognition The Company’s revenues are derived primarily from the sale of hardware and software products, and services. The Company recognizes its revenues net of any value added or sales tax and net of sales discounts. The Company sells a high proportion of its X-ray products to a limited number of OEM customers. X-ray tubes, digital detectors and image-processing tools and security and inspection products are generally sold on a stand-alone basis. However, the Company occasionally sells its digital detectors, X-ray tubes and imaging processing tools as a package that is optimized for digital X-ray imaging and sells its Linatron ® X-ray accelerators together with its imaging processing software and image detection products to OEM customers that incorporate them into their inspection systems. Service contracts are often sold with certain security and inspection products and computer-aided detection products. Revenues related to service contracts usually start after the expiration of the warranty period for non-software products or upon delivery of software products. For a multiple-element arrangement that includes software and non-software deliverables which includes service contracts, the Company first allocates revenues among the software and non-software deliverables on a relative selling price basis.
Non-Software Products	Non-Software Products Non-software products include hardware products, software components that function together with the hardware components to deliver the product’s essential functionality, as well as service contracts. Except as described below under “Service,” the Company recognizes revenues for non-software products when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. For multiple-element revenue arrangements that involve non-software products, a delivered non-software element is considered as a separate unit of accounting when it has stand-alone value and there is no customer-negotiated refund or return rights for the delivered element. The allocation of revenue to all deliverables based on their relative selling prices is determined at the inception of the arrangement. The selling price for each deliverable is determined using vendor-specific objective evidence (“VSOE”) of selling price, if it exists; otherwise, third-party evidence of selling price (“TPE”) is used. If the Company is not able to establish VSOE or TPE of selling prices for its non-software products, the Company uses the deliverable's estimated selling price (“ESP”). The Company estimates selling prices following an established process that considers market conditions, including the product offerings and pricing strategies of competitors, as well as internal factors such as historical pricing practices and margin objectives. The establishment of product and service ESPs is controlled and reviewed by the appropriate level of management in all of the Company’s businesses. The Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the terms of the contract, provided that all other revenue recognition criteria have been met.
Software Products	Software Products The Company recognizes revenues for software products in accordance with the software revenue recognition guidance. The Company recognizes license revenues when all of the following criteria have been met: persuasive evidence of an arrangement exists, the vendor’s fee is fixed or determinable, collection of the related receivable is probable and delivery of the product has occurred. Revenues earned on software arrangements involving multiple elements are allocated to each element based on VSOE of fair value, which is based on the price charged when the same element is sold separately. In instances when evidence of VSOE of fair value of all undelivered elements exists, but evidence does not exist for one or more delivered elements, revenues are recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. For those software products that are not sold stand-alone or for which VSOE cannot be established or maintained, all software revenue under the contract will be deferred until the software product(s) that lack VSOE are all delivered. If the only undelivered software element that lacks VSOE is maintenance and support, then the software revenue would be recognized ratably over the term of the maintenance and support arrangement. The Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the shipping terms of the contract, provided that all other criteria for revenue recognition have been met.
Service	Service Service revenues include revenues from hardware and software service contracts, including maintenance and support, bundled support arrangements, paid services and trainings and parts that are sold by the service department. Revenues allocated to service contracts are recognized ratably over the period of performance of the related contracts. Revenues related to services performed on a time-and-materials basis are recognized when they are earned and billable.
Deferred Revenues	Deferred Revenues Deferred revenue primarily represents (i) the amount billed, billable or received applicable to non-software products for which parts and services have not been delivered, (ii) the amount billed, billable or received applicable to software products for which the Company’s obligations under the maintenance contracts have not been fulfilled and (iii) the amount billed, billable or received for service contracts for which the services have not been rendered. Except for government tenders, group purchases and orders with letters of credit, the Company's security and inspection customers often provide a down payment prior to transfer of risk of loss of ordered products. These payments are also included in deferred revenue on the consolidated balance sheets.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company evaluates the creditworthiness of customers prior to authorizing shipment for all major sale transactions. On a quarterly basis, the Company evaluates aged items in the accounts receivable aging report and provide an allowance in an amount deemed adequate for doubtful accounts. If the evaluation of customers’ financial conditions does not reflect a future ability to collect outstanding receivables, additional provisions may be needed.
Share-Based Compensation Expense	Share-Based Compensation Expense The Company has an equity-based incentive plan that provides for the grant of nonqualified stock options and restricted stock units to directors, officers and other employees. The Company also permits employees to purchase shares under the Varex employee stock purchase plan. Prior to the separation, the Company’s employees historically participated in Varian’s equity-based incentive plans. Share-based compensation expense through the date of separation included allocations to the Company based on the awards and terms previously granted to its employees as well as an allocation of Varian’s corporate and shared functional employee expenses. The Company values stock options granted and the option component of the shares of common stock purchased under the equity-based incentive plans and stock purchased under the employee stock purchase plan using the Black-Scholes option-pricing model. Share-based compensation expense for restricted stock units is measured using the fair value of the Company’s stock on the date of grant and is amortized over the award’s respective service period. The Black-Scholes option-pricing model requires the input of certain assumptions, and changes in the assumptions can materially affect the fair value estimates of share-based payment awards. The Company measures and recognizes expense for all share-based payment awards based on their fair values. Share-based compensation expense recognized in the consolidated statements of earnings includes compensation expense for the share-based payment awards based on the grant date fair value estimated in accordance with the guidance on share-based compensation. Share-based compensation expense recognized is based on the value of the portion of share-based payment awards that is ultimately expected to vest. The Company attributes the value of share-based compensation to expense using the straight-line method. The Company considers only the direct tax impacts of share-based compensation awards when calculating the amount of tax windfalls or shortfalls.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs are included as a component of cost of revenues.
Research and Development	Research and Development Research and development costs have been expensed as incurred. These costs primarily include employees’ compensation, consulting fees and material costs.
Software Development Costs	Software Development Costs Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No costs associated with the development of software have been capitalized, as the Company believes its current software development process is essentially completed concurrent with the establishment of technological feasibility.
Taxes on Earnings	Taxes on Earnings Taxes on earnings, as presented, are calculated on a separate return basis. Under this method, the Company computes taxes on earnings as if it were a separate taxpayer filing its own income tax returns for the full year. However, as the Company only became an actual separate taxpayer upon separation from Varian, the amounts recorded may differ from the amounts that would have been reflected in the financial statements had it been an entity that operated independently of Varian for the entire period. This is partially due to a different tax structure and tax accounting elections and assertions for the periods before and after separation. Generally, the carrying value of net deferred tax assets assumes that the Company will generate sufficient future taxable earnings in the applicable tax jurisdictions to utilize these deferred tax assets. In the period in which the Company concludes that it will be unable to recover the net deferred tax assets in each jurisdiction, it will increase the valuation allowance and its tax provision will increase in the period in which it makes such a determination. Significant judgments and estimates are required in evaluating the Company’s tax positions and provision for taxes on earnings. The Company accounts for uncertainty in income taxes following a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that, based on the technical merits, the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Recognition and measurement are based on management’s best judgment given the facts, circumstances and information available at the end of the accounting period. The Company is subject to taxes on earnings in both the United States and numerous foreign jurisdictions. Foreign earnings are generally taxed at rates lower than United States rates, earnings in certain foreign jurisdictions are currently subject to tax in the United States, and the benefit of losses generated in other foreign jurisdictions is reduced due to full valuation allowance positions in those jurisdictions. Our effective tax rate is impacted by these factors as well as existing laws in both the United States and in the respective countries in which foreign subsidiaries do business. In addition, a change in the mix of earnings and losses among the various jurisdictions could increase or decrease our effective tax rate.
Foreign Currency Translation	Foreign Currency Translation The Company uses the U.S. Dollar as the functional currency of its foreign operations. Gains and losses from remeasurement of foreign currency balances into U.S. Dollars are included in the consolidated statements of earnings.
Recent Accounting Standards or Updates Not Yet Effective	Recent Accounting Standards Updates Not Yet Effective In August 2017, the FASB issued issued Accounting Standard Update ("ASU") 2017-12 which targets improvements to accounting for hedging activities which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance is effective for the Company beginning in the first quarter of fiscal year 2019. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-07 which amended its guidance on the accounting related to defined benefit plans and other post-retirement benefits. This amendment requires the service cost component of net periodic pension and post-retirement benefit cost be presented in the same line item as other employee compensation costs, while the other components be presented separately as non-operating income (expense). The amendment will be effective for the Company beginning in its first quarter of fiscal year 2019. Early adoption is permitted. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 which clarified its guidance to simplify the measurement of goodwill by eliminating the Step 2 impairment test. The new guidance requires companies to perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2021. The amendment is required to be adopted prospectively. Early adoption is permitted. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 on accounting for leases. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new standard will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of earnings. The new standard is required to be adopted using a modified retrospective method to each prior reporting period presented with various optional practical expedients. The new standard will be effective for the Company beginning in its first quarter of fiscal year 2020 with early adoption permitted. The Company is evaluating the impact of adopting this new standard to its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09 which includes an amendment to its accounting guidance related to employee share-based payments. The amendment simplifies several aspects of the accounting for employee share-based payments, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2018 with early adoption permitted. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, a new revenue standard, which sets forth a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. The new standard requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB amended the principal-versus-agent implementation guidance and illustrations in the new standard. In April 2016, the FASB amended the guidance on identifying performance obligations and the implementation guidance on licensing in the new standard. In May 2016, the FASB amended the guidance on collectability, noncash consideration, presentation of sales tax and transition in the new standard. The new standard will be effective for the Company beginning in its first quarter of fiscal year 2019, with early adoption permitted, but not before the first quarter of fiscal year 2018. The new standard can be applied either retrospectively to each prior reporting period presented ( i.e. , full retrospective adoption) or with the cumulative effect of initially applying the update recognized at the date of the initial application ( i.e. , modified retrospective adoption) along with additional disclosures. The Company is evaluating the timing and the impact of adopting this standard to its consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Schedules of Concentration of Risk, by Risk Factor	During the periods presented, two customers accounted for a significant portion of revenues, which are as follows: Fiscal Year 2017 2016 2015 Toshiba Medical Systems 19.3 % 23.0 % 26.0 % Carestream * * 12.0 % * Indicates less than 10% of revenues for the periods presented
Schedule of Inventory, Current	The following table summarizes the Company’s inventories, net: (In millions) September 29, 2017 September 30, 2016 (1) Raw materials and parts $ 164.5 $ 140.8 Work-in-process 20.3 16.4 Finished goods 49.7 40.2 Total inventories, net $ 234.5 $ 197.4 (1) The Company identified immaterial errors in prior periods relating to the classification of raw material and work-in-process inventory categories. The impact of these errors are $9.2 million and were not material to any prior period. Consequently, the Company corrected the errors by revising the prior year inventory disclosure. As the two line items are adjusted by offsetting amounts that do not impact the total inventory balance, the corrections had no impact on the consolidated balance sheets, income statement or statements of cash flows.
Property, Plant and Equipment	The following table summarizes the Company’s property, plant and equipment, net: (In millions) September 29, 2017 September 30, 2016 Land and land improvements $ 5.1 $ 2.9 Buildings and leasehold improvements 132.2 103.3 Machinery 153.9 121.0 Construction in progress 24.3 18.3 $ 315.5 $ 245.5 Accumulated depreciation and amortization (167.2 ) (136.6 ) Property, plant, and equipment, net $ 148.3 $ 108.9
Schedule of Product Warranty Liability	The amount of the accrued estimated warranty costs obligation for established products is primarily based on historical experience as to product failures adjusted for current information on repair costs. For new products, estimates include the historical experience of similar products, as well as reasonable allowance for warranty expenses associated with new products. On a quarterly basis, the Company reviews the accrued warranty costs and updates the historical warranty cost trends, if required. The following table reflects the changes in the Company’s accrued product warranty: Fiscal Years (In millions) 2017 2016 Accrued product warranty, at beginning of period $ 6.9 $ 6.1 Product warranty for acquisitions during period 1.3 — Charged to cost of revenues 10.7 13.1 Actual product warranty expenditures (11.9 ) (12.3 ) Accrued product warranty, at end of period $ 7.0 $ 6.9
Schedule of Accounts, Notes, Loans and Financing Receivable	The following table reflects the changes in the Company’s allowance for doubtful accounts: Fiscal Years (In millions) 2017 2016 Allowance for doubtful accounts, at beginning of period $ 0.2 $ 0.1 Charged to bad debt expense 0.4 0.1 Write-offs charged to allowance (0.2 ) — Allowance for doubtful accounts, at end of period $ 0.4 $ 0.2

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	12 Months Ended
	Sep. 29, 2017
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities for the Acquired Detector Business: (In millions) Fair Value Total cash consideration $ 273.2 Allocation of the purchase consideration: Cash 1.4 Accounts Receivable 18.7 Inventory 34.7 Prepaids and other current assets 0.6 Property, plant, and equipment 21.4 Other assets, non-current 2.0 Intangibles 81.1 Goodwill 167.3 Total assets acquired 327.2 Current liabilities (17.2 ) Other liabilities, non-current (36.8 ) Total liabilities assumed (54.0 ) Net assets acquired $ 273.2
Schedule of Intangible Assets Acquired	The following amounts represent the preliminary determination of the fair value of identifiable intangible assets for the Acquired Detector Business, which are amortized straight-line: (In millions) Fair Value Estimated Favorable leasehold interests $ 3.8 16 Backlog 1.2 1 Trade names 1.4 5 Developed technology 37.7 7 In-process research and development 4.0 indefinite Customer relationships 33.0 7 Total intangible assets acquired $ 81.1
Schedule of Segment Reporting Information, by Segment	The following amounts represent revenues by reporting segment from the Acquired Detector Business from the acquisition date of May 1, 2017 through September 29, 2017: (In millions) May 1, 2017 through September 29, 2017 Acquired Detector Business Medical $ 41.1 Industrial 20.2 Total Acquired Detector Business revenues $ 61.3 Information related to the Company’s segments is as follows: Fiscal Year (In millions) 2017 2016 2015 Revenues Medical $ 556.9 $ 505.8 $ 534.3 Industrial 141.2 114.3 98.0 Total revenues 698.1 620.1 632.3 Gross margin Medical 193.6 195.8 207.1 Industrial 59.9 52.6 43.5 Total gross margin 253.5 248.4 250.6 Total operating expenses 169.8 139.3 123.1 Interest and other income (expenses), net (8.9 ) (4.1 ) 0.1 Earnings before taxes 74.8 105.0 127.6 Taxes on earnings 22.8 36.0 46.8 Net earnings 52.0 69.0 80.8 Less: Net earnings attributable to noncontrolling interests 0.4 0.5 0.8 Net earnings attributable to Varex $ 51.6 $ 68.5 $ 80.0
Business Acquisition, Pro Forma Information	The unaudited pro-forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the Acquired Detector Business and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented nor are they indicative of future results of operations or results that might have been achieved had the acquisition been consummated as of October 3, 2015. Fiscal Year (In millions) 2017 2016 Revenue $ 777.8 $ 766.3 Operating earnings $ 84.7 $ 115.9 Net earnings $ 43.1 $ 64.8 Net earnings per share, basic $ 1.15 $ 1.73 Net earnings per share, diluted $ 1.13 $ 1.72

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	12 Months Ended
	Sep. 29, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Allocated costs included in the accompanying consolidated statements of earnings are as follows: Fiscal Year (In millions) 2017 2016 2015 Selling, general and administrative $ 12.4 $ 37.7 $ 38.0 Research and development — 1.2 1.4 Interest expense, net of interest income 0.5 1.6 0.7

OTHER FINANCIAL INFORMATION (Ta

OTHER FINANCIAL INFORMATION (Tables)	12 Months Ended
	Sep. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accrued Liabilities	The following table summarizes the Company’s accrued liabilities: (In millions) September 29, 2017 September 30, 2016 Accrued compensation and benefits $ 26.0 $ 13.6 Product warranty 7.0 6.9 Income taxes payable 13.2 0.2 Payable to Varian Medical Systems 7.9 — Other 8.3 3.2 Total accrued liabilities $ 62.4 $ 23.9
Other Noncurrent Liabilities	The following table summarizes the Company’s other long-term liabilities: (In millions) September 29, 2017 September 30, 2016 Long-term income tax payable $ — $ 4.9 Environment liabilities $ 1.3 $ 0.3 Defined benefit obligation liability 3.2 — Other 0.2 0.1 Total other long-term liabilities $ 4.7 $ 5.3
Schedule of Other Nonoperating Income (Expense)	The following table summarizes the Company’s other income (expense), net: Fiscal Years (In millions) 2017 2016 2015 Income (loss) from equity method investments $ 1.3 $ (1.6 ) $ 0.3 Realized income (loss) on foreign currencies 1.9 (0.9 ) 0.5 Total other income (expense), net $ 3.2 $ (2.5 ) $ 0.8

Net Earnings Per Share (Tables)

Net Earnings Per Share (Tables)	12 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per common share is as follows: Fiscal Year (In millions, except per share amounts) 2017 2016 (1) 2015 (1) Net earnings attributable to Varex $ 51.6 $ 68.5 $ 80.0 Weighted average shares outstanding - basic 37.6 37.4 37.4 Dilutive effect of potential common shares 0.4 0.3 0.3 Weighted average shares outstanding - diluted 38.0 37.7 37.7 Net earnings per share attributable to Varex - basic $ 1.37 $ 1.83 $ 2.14 Net earnings per share attributable to Varex - diluted $ 1.36 $ 1.82 $ 2.12 Anti-dilutive employee shared based awards, excluded 1.0 0.7 0.7 (1) Basic and diluted net earnings for fiscal years 2016 and 2015 is calculated using the number of common shares distributed on January 28, 2017.

Financial Derivatives & Hedging

Financial Derivatives & Hedging Activities (Tables) - Cash Flow Hedging	12 Months Ended
	Sep. 29, 2017
Derivative [Line Items]
Schedule of Derivative Instruments	As of September 29, 2017, the Company had the following outstanding derivatives designated as hedging instruments: (In millions, except for number of instruments) Number of Instruments Notional Value Interest Rate Swap Contracts 6 $ 292.5
Schedule of Interest Rate Derivative Instruments	The following table summarizes the amount of income recognized from derivative instruments for the periods indicated and the line items in the accompanying statements of operations where the results are recorded for cash flow hedges: Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Fiscal Year Ended Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Fiscal Year Ended Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) (In millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Interest Rate Swap Contracts $ 0.6 $ — $ — Interest expense $ (0.3 ) $ — $ — Interest expense $ — $ — $ — The Company expects that approximately $0.9 million recorded as a component of accumulated other comprehensive income (loss) will be realized in the statements of earnings over the next 12 months and the amount will vary depending on interest rates. These derivative instruments are subject to master netting agreements giving effect to rights of offset with each counterparty. The following table summarizes the fair values of derivative instruments as of the periods indicated and the line items in the accompanying consolidated balance sheets where the instruments are recorded: Derivative Assets Derivative Liabilities (In millions) September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Derivatives designated as cash flow hedges Balance sheet location Balance sheet location Interest rate swap contracts Other non-current assets $ 1.6 $ — Other non-current assets $ — $ — Interest rate swap contracts Other current liabilities — — Other current liabilities (0.6 ) — $ 1.6 $ — $ (0.6 ) $ —

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Sep. 29, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. (In millions) Fair Value Measurements at September 29, 2017 Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Significant Unobservable Inputs Total Assets: Cash equivalents - Money market funds $ — $ 11.4 $ — $ 11.4 Interest rate swap contracts — 1.6 — 1.6 Total assets measured at fair value $ — $ 13.0 $ — $ 13.0 Liabilities: Interest rate swap contracts $ — $ 0.6 $ — $ 0.6

Goodwill & Intangible Assets (T

Goodwill & Intangible Assets (Tables)	12 Months Ended
	Sep. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table reflects goodwill by reportable operating segment: (In millions) Medical Industrial Total Balance at September 30, 2016 55.7 19.0 74.7 Business combinations - PerkinElmer Medical Imaging Business 91.3 76.0 167.3 Disposition of business (0.1 ) — (0.1 ) Balance at 2017 146.9 95.0 241.9
Schedule of Finite-Lived Intangible Assets	The following table reflects the gross carrying amount and accumulated amortization of the Company’s finite-lived intangible assets included in other assets in the consolidated balance sheets: (In millions) September 29, 2017 September 30, 2016 (1) Acquired existing technology $ 57.0 $ 22.4 Patents, licenses and other 19.4 10.2 Customer contracts and supplier relationship 42.1 9.1 Accumulated amortization (31.2 ) (21.0 ) Total intangible assets with finite lives 87.3 20.7 In-process research and development with indefinite lives 4.0 0.0 Total intangible assets $ 91.3 $ 20.7 (1) The Company identified immaterial errors in prior periods relating to the classification of licenses and customer contracts. The impact of these errors were not material to any prior period. Consequently, the Company corrected the errors by revising the prior year intangible assets disclosure.The corrections had no impact on the consolidated balance sheets, income statement or statements of cash flows.
Schedule of Indefinite-Lived Intangible Assets	The following table reflects the gross carrying amount and accumulated amortization of the Company’s finite-lived intangible assets included in other assets in the consolidated balance sheets: (In millions) September 29, 2017 September 30, 2016 (1) Acquired existing technology $ 57.0 $ 22.4 Patents, licenses and other 19.4 10.2 Customer contracts and supplier relationship 42.1 9.1 Accumulated amortization (31.2 ) (21.0 ) Total intangible assets with finite lives 87.3 20.7 In-process research and development with indefinite lives 4.0 0.0 Total intangible assets $ 91.3 $ 20.7 (1) The Company identified immaterial errors in prior periods relating to the classification of licenses and customer contracts. The impact of these errors were not material to any prior period. Consequently, the Company corrected the errors by revising the prior year intangible assets disclosure.The corrections had no impact on the consolidated balance sheets, income statement or statements of cash flows.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of September 29, 2017, the estimated future amortization expense of intangible assets with finite lives is as follows: (In millions) Fiscal years: 2018 $ 16.1 2019 15.0 2020 14.6 2021 13.4 2022 11.8 Thereafter 16.4 Total $ 87.3

REDEEMABLE NONCONTROLLING INT32

REDEEMABLE NONCONTROLLING INTERESTS AND NONCONTROLLING INTERESTS (Tables)	12 Months Ended
	Sep. 29, 2017
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Changes in redeemable noncontrolling interests and noncontrolling interests relating to MeVis were as follows: Fiscal Years 2017 2016 (In millions) Redeemable Noncontrolling Redeemable Balance at beginning of period $ 10.3 $ 11.0 $ — Net earnings attributable to noncontrolling interests 0.4 — 0.5 Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests — (10.4 ) 10.4 Other 0.5 (0.6 ) (0.6 ) Balance at end of period $ 11.2 $ — $ 10.3

Employee Stock Plans (Tables)

Employee Stock Plans (Tables)	12 Months Ended
	Sep. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	The table below summarizes the effect of recording share-based compensation expense and for the option component of the employee stock purchase plan shares: Fiscal Year (In millions) 2017 2016 2015 Cost of revenues $ 0.9 $ 1.0 $ 1.3 Research and development 1.5 1.4 1.4 Selling, general and administrative (1) 6.0 7.1 6.9 Total share-based compensation expense $ 8.4 $ 9.5 $ 9.6 (1) Includes allocated share-based compensation of $0.8 million , $3.4 million and $3.2 million for fiscal years 2017, 2016 and 2015, respectively, and represents charges by Varian to the Company for certain Varian employees who provided general and administrative services on the Company’s behalf.
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The Company utilized the Black-Scholes valuation model for estimating the fair value of stock options granted and the option component of the 2017 ESPP. The Company calculated the fair value of each option grant and option component of the 2017 ESPP on the respective dates of grant using the following weighted average assumptions: Employee Stock Option Plan Employee Stock Purchase Plans Fiscal Year Fiscal Year 2017 2017 Expected term (in years) 4.2 0.5 Risk-free interest rate 1.6 % 1.0 % Expected volatility 23.6 % 28.0 % Expected dividend 0.0 % 0.0 % Weighted average fair value at grant date $8.08 $7.81
Schedule of Share-based Compensation, Stock Options, Activity	The following table summarizes the activity for stock options under Varex’s employee incentive plans for the Company’s employees: (In thousands, except per share amounts and the remaining term) Options Outstanding Price range Weighted Average Weighted Average Remaining Term (in years) Aggregate Intrinsic Value (2) Balance at September 30, 2016 (1) 1,015 $17.53 - $30.74 $ 26.14 Granted 1,052 $31.08 - $34.13 31.20 Canceled, expired or forfeited (18) $25.17 - $30.74 27.85 Exercised (123) $17.53 - $30.74 22.61 Balance at September 29, 2017 1,926 $19.21 - $34.13 $ 29.11 5.3 $ 9,118.1 Exercisable at September 29, 2017 709 $19.21 - $34.13 $ 26.74 3.7 $ 5,032.1 (1) The outstanding options at September 30, 2016 represent outstanding options after converting such awards in accordance with the Employee Matters Agreement filed as Exhibit 10.3 to the Company's Form 10 filed with the SEC on January 12, 2017. (2) The aggregate intrinsic value represents the total pre-tax intrinsic value, which is computed based on the difference between the exercise price and the closing price of Varex common stock of $33.84 as of September 29, 2017, the last trading date of the Company's fiscal 2017, and which represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date.
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	The following table summarizes the activity for restricted stock units, restricted stock awards and deferred stock units under Varex’s employee incentive plans for the Company’s employees: (In thousands, except per share amounts) Number of Shares Weighted Average Balance at September 30, 2016 (1) 385 $ 27.42 Granted 337 31.33 Vested (189) 27.90 Canceled or expired (8) 26.71 Balance at September 29, 2017 525 $ 29.54 (1) The outstanding RSUs at September 30, 2016 represent outstanding units after converting such units in accordance with the Employee Matters Agreement filed as Exhibit 10.3 to the Company's Form 10 filed with the SEC on January 12, 2017.

TAXES ON EARNINGS (Tables)

TAXES ON EARNINGS (Tables)	12 Months Ended
	Sep. 29, 2017
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Taxes on earnings were as follows: Fiscal Years (In millions) 2017 2016 2015 Current provision: Federal $ 24.8 $ 26.4 $ 40.2 State and local 1.6 3.9 4.9 Foreign 5.3 2.0 2.5 Total current 31.7 32.3 47.6 Deferred provision (benefit): Federal (7.0 ) 3.6 (1.4 ) State and local (1.0 ) — (0.1 ) Foreign (0.9 ) 0.1 0.7 Total deferred (8.9 ) 3.7 (0.8 ) Taxes on earnings $ 22.8 $ 36.0 $ 46.8
Schedule of Income before Income Tax, Domestic and Foreign	Earnings before taxes are generated from the following geographic areas: Fiscal Years (In millions) 2017 2016 2015 United States $ 55.5 $ 105.6 $ 122.9 Foreign 19.3 (0.6 ) 4.7 Earnings before taxes $ 74.8 $ 105.0 $ 127.6
Schedule of Effective Income Tax Rate Reconciliation	The effective tax rate differs from the U.S. federal statutory tax rate as a result of the following: Fiscal Years 2017 2016 2015 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 1.3 % 2.4 % 2.5 % Domestic production activities deduction (2.4 )% (2.2 )% (2.3 )% Research and development credit (2.6 )% (2.2 )% (0.6 )% Foreign deferred tax adjustments (4.0 )% — % — % Change in valuation allowance 3.8 % — % — % Other (0.6 )% 1.3 % 2.1 % Effective tax rate 30.5 % 34.3 % 36.7 %
Schedule of Deferred Tax Assets and Liabilities	Significant components of deferred tax assets and liabilities are as follows: (In millions) September 29, 2017 September 30, 2016 Deferred Tax Assets: Inventory adjustments $ 15.0 $ 13.3 Share-based compensation 1.9 2.8 Product warranty 2.2 2.3 Deferred compensation 1.3 1.2 Net operating loss carryforwards 2.4 7.7 Accrued vacation 2.1 — Excess foreign tax credits 1.9 — Other 2.2 6.0 29.0 33.3 Valuation allowance (4.3 ) (6.4 ) Total deferred tax assets 24.7 26.9 Deferred Tax Liabilities: Acquired intangibles (26.4 ) (6.5 ) Property, plant and equipment (19.9 ) (10.1 ) Investments in privately held companies (6.9 ) (6.7 ) Other (1 ) (1.1 ) Total deferred tax liabilities (54.2 ) (24.4 ) Net deferred tax (liabilities) assets $ (29.5 ) $ 2.5 Reported As: Deferred tax assets $ 25.3 $ 5.5 Deferred tax liabilities (54.8 ) (3.0 ) Net deferred tax (liabilities) assets $ (29.5 ) $ 2.5
Schedule of Unrecognized Tax Benefits Roll Forward	Changes in the Company’s unrecognized tax benefits were as follows: Fiscal Years (In millions) 2017 2016 2015 Unrecognized tax benefits balance–beginning of fiscal year $ 4.4 $ 4.5 $ 4.5 Additions based on tax positions related to a prior year — — 0.1 Additions based on tax positions related to the current year 0.5 1.0 1.0 Reductions resulting from the expiration of the applicable statute of limitations — (1.1 ) (1.1 ) Adjustments resulting from current year separation (4.4 ) — — Unrecognized tax benefits balance—end of fiscal year $ 0.5 $ 4.4 $ 4.5

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following amounts represent revenues by reporting segment from the Acquired Detector Business from the acquisition date of May 1, 2017 through September 29, 2017: (In millions) May 1, 2017 through September 29, 2017 Acquired Detector Business Medical $ 41.1 Industrial 20.2 Total Acquired Detector Business revenues $ 61.3 Information related to the Company’s segments is as follows: Fiscal Year (In millions) 2017 2016 2015 Revenues Medical $ 556.9 $ 505.8 $ 534.3 Industrial 141.2 114.3 98.0 Total revenues 698.1 620.1 632.3 Gross margin Medical 193.6 195.8 207.1 Industrial 59.9 52.6 43.5 Total gross margin 253.5 248.4 250.6 Total operating expenses 169.8 139.3 123.1 Interest and other income (expenses), net (8.9 ) (4.1 ) 0.1 Earnings before taxes 74.8 105.0 127.6 Taxes on earnings 22.8 36.0 46.8 Net earnings 52.0 69.0 80.8 Less: Net earnings attributable to noncontrolling interests 0.4 0.5 0.8 Net earnings attributable to Varex $ 51.6 $ 68.5 $ 80.0
Reconciliation of Assets from Segment to Consolidated	The following table summarizes the Company’s total assets by its reportable segments: (In millions) September 29, 2017 September 30, 2016 Identifiable assets: Medical $ 832.1 $ 481.4 Industrial 208.0 134.7 Total reportable segments $ 1,040.1 $ 616.1 Unallocated corporate assets — 6.3 Total combined assets $ 1,040.1 $ 622.4
Revenue from External Customers by Geographic Areas	Geographic Information Revenues Property, plant and equipment, net Fiscal Year Fiscal Years (In millions) 2017 2016 2015 2017 2016 Americas $ 239.8 $ 224.7 $ 249.2 $ 132.1 $ 98.0 EMEA 219.5 179.5 153.0 8.4 2.5 APAC 238.8 215.9 230.1 7.8 8.4 Total company $ 698.1 $ 620.1 $ 632.3 $ 148.3 $ 108.9

Description of Business (Detail

Description of Business (Details)	12 Months Ended
	Sep. 29, 2017segment	Jan. 28, 2017	Jan. 20, 2017
Schedule of Pro Rata Distribution [Line Items]
Number of operating segments	2
Varian Medical Systems, Inc.
Schedule of Pro Rata Distribution [Line Items]
Outstanding common stock, percentage distributed		1
Stockholders' equity, conversion ratio			0.4

Summary of Significant Accoun37

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Sep. 29, 2017USD ($)entity	Sep. 30, 2016USD ($)	Oct. 02, 2015USD ($)
Accounting Policies [Abstract]
Number of variable interest entities | entity	2
Number of consolidated variable interest entities | entity	1
Variable interest entity, consolidated, assets	$ 6,400,000
Variable interest entity, consolidated, liabilities	200,000
Property, Plant and Equipment [Line Items]
Asset impairment charges	$ 0	$ 0	$ 0
Minimum
Property, Plant and Equipment [Line Items]
Finite-lived intangible asset, useful life	2 years
Maximum
Property, Plant and Equipment [Line Items]
Finite-lived intangible asset, useful life	7 years
Land Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	15 years
Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	20 years
Machinery and Equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Machinery and Equipment | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	7 years

Concentration of Risk (Details)

Concentration of Risk (Details) - Customer Concentration Risk	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Toshiba Medical Systems | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration risk, percentage	19.30%	23.00%	26.00%
Toshiba Medical Systems | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage	9.00%	11.50%
Carestream | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration risk, percentage			12.00%

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 29, 2017	Sep. 30, 2016
Accounting Policies [Abstract]
Raw materials and parts	$ 164.5	$ 140.8
Work-in-process	20.3	16.4
Finished goods	49.7	40.2
Inventory [Line Items]
Inventories, net	234.5	197.4
PerkinElmer, Inc.
Inventory [Line Items]
Inventories, net	$ 29.7
Inventory Error Correction
Inventory [Line Items]
Inventory, work in process and raw materials		$ 9.2

Property, Plant and Equipment (

Property, Plant and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 315.5	$ 245.5
Accumulated depreciation and amortization	(167.2)	(136.6)
Property, plant, and equipment, net	148.3	108.9
Depreciation	16.9	9.8	$ 9.6
Land and Land Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5.1	2.9
Buildings and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	132.2	103.3
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	153.9	121
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	24.3	$ 18.3
PerkinElmer, Inc.
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, net	$ 21.1

Product Warranty (Details)

Product Warranty (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Accrued product warranty, at beginning of period	$ 6.9	$ 6.1
Product warranty for acquisitions during period	1.3	0
Charged to cost of revenues	10.7	13.1
Actual product warranty expenditures	(11.9)	(12.3)
Accrued product warranty, at end of period	$ 7	$ 6.9
Minimum
Product Warranty Liability [Line Items]
Warranty term (in months)	12 months
Maximum
Product Warranty Liability [Line Items]
Warranty term (in months)	24 months

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Allowance for Doubtful Accounts Receivable [Roll Forward]
Allowance for doubtful accounts receivable, beginning balance	$ 0.2	$ 0.1
Charged to bad debt expense	0.4	0.1
Write-offs charged to allowance	(0.2)	0
Allowance for doubtful accounts receivable, ending balance	$ 0.4	$ 0.2

Business Combinations (Details)

Business Combinations (Details) - PerkinElmer, Inc. $ in Millions	May 01, 2017USD ($)employee	Jun. 30, 2017USD ($)
Business Acquisition [Line Items]
Total cash consideration	$ 277.4
Payments to acquire businesses	$ 273.2	$ 273.2
Business combination, number of employees | employee	280
Deferred tax liabilities noncurrent		31
Foreign Tax Authority
Business Acquisition [Line Items]
Goodwill expected tax deductible amount		$ 35

Net Assets (Details)

Net Assets (Details) - USD ($) $ in Millions	May 01, 2017	Jun. 30, 2017	Sep. 29, 2017	Sep. 30, 2016
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Goodwill			$ 241.9	$ 74.7
PerkinElmer, Inc.
Business Acquisition [Line Items]
Total cash consideration	$ 273.2	$ 273.2
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash	1.4
Accounts Receivable	18.7
Inventory	34.7
Prepaids and other current assets	0.6
Property, plant, and equipment	21.4
Other assets, non-current	2
Intangibles	81.1
Goodwill	167.3
Total assets acquired	327.2
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Current liabilities	(17.2)
Other liabilities, non-current	(36.8)
Total liabilities assumed	(54)
Net assets acquired	$ 273.2

Intangibles Acquired (Details)

Intangibles Acquired (Details) - USD ($) $ in Millions	May 01, 2017	Sep. 29, 2017	Sep. 30, 2016
In-process research and development
Intangible Assets Acquired as Part of Business Combination [Table] [Line Items]
In-process research and development with indefinite lives		$ 4	$ 0
PerkinElmer, Inc.
Intangible Assets Acquired as Part of Business Combination [Table] [Line Items]
Intangibles	$ 81.1
PerkinElmer, Inc. | In-process research and development
Intangible Assets Acquired as Part of Business Combination [Table] [Line Items]
In-process research and development with indefinite lives	4
PerkinElmer, Inc. | Favorable leasehold interests
Intangible Assets Acquired as Part of Business Combination [Table] [Line Items]
Finite-lived intangible assets acquired	$ 3.8
Estimated useful life	16 years
PerkinElmer, Inc. | Backlog
Intangible Assets Acquired as Part of Business Combination [Table] [Line Items]
Finite-lived intangible assets acquired	$ 1.2
Estimated useful life	1 year
PerkinElmer, Inc. | Trade names
Intangible Assets Acquired as Part of Business Combination [Table] [Line Items]
Finite-lived intangible assets acquired	$ 1.4
Estimated useful life	5 years
PerkinElmer, Inc. | Developed technology
Intangible Assets Acquired as Part of Business Combination [Table] [Line Items]
Finite-lived intangible assets acquired	$ 37.7
Estimated useful life	7 years
PerkinElmer, Inc. | Customer relationships
Intangible Assets Acquired as Part of Business Combination [Table] [Line Items]
Finite-lived intangible assets acquired	$ 33
Estimated useful life	7 years

Business Combinations Revenues

Business Combinations Revenues by Segment (Details) - PerkinElmer, Inc. $ in Millions	5 Months Ended
	Sep. 29, 2017USD ($)
Segment Reporting Information [Line Items]
Revenues	$ 61.3
Medical
Segment Reporting Information [Line Items]
Revenues	41.1
Industrial
Segment Reporting Information [Line Items]
Revenues	$ 20.2

Business Combinations Pro Forma

Business Combinations Pro Forma (Details) - PerkinElmer, Inc. - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Business Acquisition [Line Items]
Revenue	$ 777.8	$ 766.3
Operating earnings	84.7	115.9
Net earnings	$ 43.1	$ 64.8
Net earnings per share, basic	$ 1.15	$ 1.73
Net earnings per share, diluted	$ 1.13	$ 1.72

Related-Party Transactions Inte

Related-Party Transactions Intercompany Transactions (Details) - Varian - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Related Party Transaction [Line Items]
Revenue from related parties	$ 24.6	$ 22.5	$ 21.1
Purchases from related party	$ 1.9	$ 0.9	$ 2.8

Related-Party Transactions Allo

Related-Party Transactions Allocated Expenses (Details) - USD ($)	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015	Jan. 28, 2017
Related Party Transaction [Line Items]
Net transfers from parent	$ 18,400,000	$ (27,100,000)	$ 45,400,000
Varian
Related Party Transaction [Line Items]
Net transfers from parent	27,100,000
Due to related parties, cash and cash equivalents threshold				$ 5,000,000
Due to related parties, cash and cash equivalents, excess	7,900,000
Selling, general and administrative | Varian
Related Party Transaction [Line Items]
Costs and expenses, related party	12,400,000	37,700,000	38,000,000
Research and development | Varian
Related Party Transaction [Line Items]
Costs and expenses, related party	0	1,200,000	1,400,000
Interest expense, net of interest income | Varian
Related Party Transaction [Line Items]
Costs and expenses, related party	$ 500,000	$ 1,600,000	$ 700,000

Related-Party Transactions Inve

Related-Party Transactions Investment in Privately-Held Companies-(Details) $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 31, 2013	Dec. 31, 2017USD ($)	Sep. 29, 2017USD ($)member	Sep. 30, 2016USD ($)	Oct. 02, 2015USD ($)
Related Party Transaction [Line Items]
Income (loss) from equity method investments			$ 1.3	$ (1.6)	$ 0.3
Varian
Related Party Transaction [Line Items]
Purchases from related party			$ 1.9	0.9	2.8
dpiX Holding
Related Party Transaction [Line Items]
Equity method investment, ownership percentage			40.00%
Number of consortium members | member			4
Income (loss) from equity method investments			$ 0.8	(1.5)	0.1
Equity method investments			50	47.2
dpiX Holding | Equity Method Investee
Related Party Transaction [Line Items]
Purchases from related party			24.7	23.4	$ 21.3
Accounts payable, related parties			$ 3.4	$ 4.2
Percentage of manufacturing capacity	50.00%
Percentage of fixed costs	50.00%
Scenario, Forecast | Fixed Cost Commitments | dpiX Holding
Related Party Transaction [Line Items]
Related party transaction, expected fixed cost		$ 4.1

Other Financial Information (De

Other Financial Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued compensation and benefits	$ 26	$ 13.6
Product warranty	7	6.9
Income taxes payable	13.2	0.2
Payable to Varian Medical Systems	7.9	0
Other	8.3	3.2
Total accrued liabilities	62.4	23.9
Long-term income tax payable	0	4.9
Environment liabilities	1.3	0.3
Defined benefit obligation liability	3.2	0
Other	0.2	0.1
Total other long-term liabilities	4.7	5.3
Income (loss) from equity method investments	1.3	(1.6)	$ 0.3
Realized income (loss) on foreign currencies	1.9	(0.9)	0.5
Total other income (expense), net	$ 3.2	$ (2.5)	$ 0.8

Net Earnings Per Share (Details

Net Earnings Per Share (Details) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Sep. 29, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Oct. 02, 2015USD ($)$ / sharesshares	Jan. 20, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net earnings attributable to Varex | $	$ 51.6	$ 68.5	$ 80
Weighted average number of shares outstanding, basic	37.6	37.4	37.4
Dilutive effect of potential common shares	0.4	0.3	0.3
Weighted average number of shares outstanding,diluted	38	37.7	37.7
Earnings per share, basic (in USD per share) | $ / shares	$ 1.37	$ 1.83	$ 2.14
Earnings per share, diluted (in USD per share) | $ / shares	$ 1.36	$ 1.82	$ 2.12
Anti-dilutive employee shared based awards, excluded	1	0.7	0.7
Varian Medical Systems, Inc.
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Stockholders' equity, conversion ratio				0.4

Financial Derivatives & Hedgi53

Financial Derivatives & Hedging Activities (Details) - Cash Flow Hedging - Interest Rate Swap $ in Millions	12 Months Ended
	Sep. 29, 2017USD ($)derivative	Sep. 30, 2016USD ($)	Oct. 02, 2015USD ($)
Derivatives, Fair Value [Line Items]
Derivative instruments, gain (loss) recognized in other comprehensive income (loss), effective portion, net	$ 0.9
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative, gain or loss recognized in OCI, effective portion	$ 0.6	$ 0	$ 0
Derivative, number of instruments held | derivative	6
Derivative, notional amount	$ 292.5
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net	(0.3)	0	0
Derivative instruments, gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing, net	0	0	$ 0
Derivative asset, fair value	1.6	0
Derivative liability, fair value	(0.6)	0
Other Noncurrent Assets | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	1.6	0
Derivative liability, fair value	0	0
Other Current Liabilities | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	0	0
Derivative liability, fair value	$ (0.6)	$ 0
Maximum | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity (in years)	4 years

Borrowings (Details)

Borrowings (Details) - USD ($)	May 01, 2017	Jan. 25, 2017	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Line of Credit Facility [Line Items]
Distributions to Varian Medical Systems, Inc.			$ 227,100,000	$ 0	$ 0
Payments to acquire businesses			271,800,000	1,200,000	$ 67,900,000
Long-term debt outstanding			463,900,000	0
Current maturities of long-term debt			20,000,000	$ 0
Debt issuance costs			$ 10,100,000
Secured Debt
Line of Credit Facility [Line Items]
Distributions to Varian Medical Systems, Inc.		$ 200,000,000
Previous Revolving Credit Facility | Secured Debt
Line of Credit Facility [Line Items]
Debt instrument, term		5 years
Previous Revolving Credit Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, term		5 years
Used capacity, commitment fee percentage		0.125%
Proceeds from lines of credit		$ 203,000,000
Previous Revolving Credit Facility | Federal Funds Effective Swap Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.50%
Previous Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.00%
Previous Revolving Credit Facility | Minimum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.125%
Unused capacity, commitment fee percentage		0.20%
Previous Revolving Credit Facility | Maximum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.125%
Unused capacity, commitment fee percentage		0.40%
Previous Revolving Credit Facility | Debt Instrument, Repayment, Period One | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage		7.50%
Previous Revolving Credit Facility | Debt Instrument, Repayment, Period Two | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage		7.50%
Previous Revolving Credit Facility | Debt Instrument, Repayment, Period Three | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage		10.00%
Previous Revolving Credit Facility | Debt Instrument, Repayment, Period Four | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage		10.00%
Previous Revolving Credit Facility | Debt Instrument, Repayment, Period Five | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage		15.00%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 400,000,000
Revolving Credit Facility | Secured Debt
Line of Credit Facility [Line Items]
Debt instrument, term	5 years
Revolving Credit Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, term	5 years
Used capacity, commitment fee percentage	0.125%
Proceeds from lines of credit	$ 97,000,000
Maximum borrowing capacity	$ 200,000,000
Revolving Credit Facility | Federal Funds Effective Swap Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
Revolving Credit Facility | Minimum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Unused capacity, commitment fee percentage	0.25%
Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.75%
Revolving Credit Facility | Minimum | Base Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.75%
Revolving Credit Facility | Maximum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Unused capacity, commitment fee percentage	0.40%
Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.75%
Revolving Credit Facility | Maximum | Base Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.75%
Revolving Credit Facility | Debt Instrument, Repayment, Period One | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage	5.00%
Revolving Credit Facility | Debt Instrument, Repayment, Period Two | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage	5.00%
Revolving Credit Facility | Debt Instrument, Repayment, Period Three | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage	7.50%
Revolving Credit Facility | Debt Instrument, Repayment, Period Four | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage	7.50%
Revolving Credit Facility | Debt Instrument, Repayment, Period Five | Secured Debt
Line of Credit Facility [Line Items]
Repayment percentage	10.00%
PerkinElmer, Inc.
Line of Credit Facility [Line Items]
Payments to acquire businesses	$ 276,000,000

Fair Value (Details)

Fair Value (Details) $ in Millions	Sep. 29, 2017USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	$ 483.9
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents - Money market funds	11.4
Interest rate swap contracts	1.6
Total assets measured at fair value	13
Interest rate swap contracts	0.6
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents - Money market funds	0
Interest rate swap contracts	0
Total assets measured at fair value	0
Interest rate swap contracts	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents - Money market funds	11.4
Interest rate swap contracts	1.6
Total assets measured at fair value	13
Interest rate swap contracts	0.6
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents - Money market funds	0
Interest rate swap contracts	0
Total assets measured at fair value	0
Interest rate swap contracts	$ 0

Goodwill & Intangible Assets (D

Goodwill & Intangible Assets (Details) $ in Millions	12 Months Ended
	Sep. 29, 2017USD ($)
Goodwill [Roll Forward]
Goodwill	$ 74.7
Business combinations - PerkinElmer Medical Imaging Business	167.3
Disposition of business	(0.1)
Goodwill	241.9
Medical
Goodwill [Roll Forward]
Goodwill	55.7
Business combinations - PerkinElmer Medical Imaging Business	91.3
Disposition of business	(0.1)
Goodwill	146.9
Industrial
Goodwill [Roll Forward]
Goodwill	19
Business combinations - PerkinElmer Medical Imaging Business	76
Disposition of business	0
Goodwill	$ 95

Goodwill & Intangible Assets In

Goodwill & Intangible Assets Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (31.2)	$ (21)
Total intangible assets with finite lives	87.3	20.7
Total intangible assets	91.3	20.7
Amortization of intangible assets	10.5	5.5	$ 2.7
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	57	22.4
Patents, licenses and other
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	19.4	10.2
Customer contracts and supplier relationship
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	42.1	9.1
In-process research and development
Finite-Lived Intangible Assets [Line Items]
In-process research and development with indefinite lives	$ 4	$ 0

Goodwill and Intangible Assets

Goodwill and Intangible Assets Amortization Schedule (Details) - USD ($) $ in Millions	Sep. 29, 2017	Sep. 30, 2016
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,018	$ 16.1
2,019	15
2,020	14.6
2,021	13.4
2,022	11.8
Thereafter	16.4
Total intangible assets with finite lives	$ 87.3	$ 20.7

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 26, 2014	Sep. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
Future minimum payments due, next twelve months				$ 4
Future minimum payments, due in two years				3.3
Future minimum payments, due in three years				3
Future minimum payments, due in four years				2.6
Future minimum payments, due in five years				2.6
Future minimum payments, due thereafter				0.9
Operating leases, rent expense	$ 4	$ 2.8	$ 1.4
Environment liabilities	$ 0.3			$ 1.3

Redeemable Noncontrolling Int60

Redeemable Noncontrolling Interests and Noncontrolling Interests (Details) shares in Millions, $ in Millions	12 Months Ended
	Sep. 29, 2017USD ($)shares	Sep. 29, 2017USD ($)€ / sharesshares	Sep. 30, 2016USD ($)	Oct. 02, 2015USD ($)	Sep. 29, 2017€ / shares	Apr. 30, 2015
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interest, equity, redemption value	$ 11.2	$ 11.2
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Temporary equity, beginning balance	10.3		$ 0
Balance at beginning of period	526		495.6	$ 359.3
Net earnings attributable to noncontrolling interests	0.4		0.5
Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests			(10.4)
Other	0.5		(0.6)
Other			(0.6)
Balance at end of period	379		526	495.6
Temporary equity, ending balance	11.2		10.3	0
Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance at beginning of period	$ 0		11
Net earnings attributable to noncontrolling interests			0	0.8
Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests			(10.4)
Other			(0.6)
Balance at end of period			$ 0	$ 11
MeVis Medical Solutions AG (MeVis)
Noncontrolling Interest [Line Items]
Percentage of voting interests acquired						73.50%
Annual recurring compensation (in euros per share) | € / shares		$ 0.95
Temporary equity, redemption price per share (in pounds per share) | € / shares					€ 19.77
Temporary equity, shares outstanding | shares	0.5	0.5
Noncontrolling interest, ownership percentage by noncontrolling owners			26.40%
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests	$ 0		$ (10.4)
MeVis Medical Solutions AG (MeVis) | Noncontrolling Interest
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests			$ 10.4

Employee Stock Plans Share-base

Employee Stock Plans Share-based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	$ 8.4	$ 9.5	$ 9.6
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	0.9	1	1.3
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	1.5	1.4	1.4
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	6	7.1	6.9
Varian | General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	$ 0.8	$ 3.4	$ 3.2

ESPP Valuation Assumptions (Det

ESPP Valuation Assumptions (Details) - $ / shares $ / shares in Thousands	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term (in years)	4 years 2 months 6 days	6 months 6 days
Risk-free interest rate	1.645%	0.98%
Expected volatility	23.60%	28.00%
Expected dividend	0.00%	0.00%
Weighted average fair value at grant date	$ 8,080	$ 7,810

Employee Stock Plans Stock Opti

Employee Stock Plans Stock Option Activity (Details) $ / shares in Units, shares in Thousands	12 Months Ended
	Sep. 29, 2017USD ($)$ / sharesshares
Options Outstanding
Options, outstanding, beginning balance | shares	1,015
Options, grants in period | shares	1,052
Options, forfeitures and expirations in period | shares	(18)
Options, exercises in period, value | shares	(123)
Options, outstanding, ending balance | shares	1,926
Options, exercisable | shares	1
Weighted Average Exercise Price
Options, outstanding, weighted average exercise price, beginning (in USD per share)	$ 26.14
Options, grants in period, weighted average exercise price (in USD per share)	31.20
Options, forfeitures and expirations in period, weighted average exercise price (in USD per share)	27.85
Options, exercises in period, weighted average exercise price (in USD per share)	22.61
Options, outstanding, weighted average exercise price, ending (in USD per share)	29.11
Options, exercisable, weighted average exercise price (in USD per share)	$ 26.74
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options, outstanding, weighted average remaining contractual term (in years)	5 years 3 months 6 days
Options, exercisable, weighted average remaining contractual term (in years)	3 years 8 months 6 days
Options, outstanding, intrinsic value | $	$ 9,118,100
Options, exercisable, intrinsic value | $	$ 5,032,100
Share price (in usd per share)	$ 33.84
Minimum
Price Range
Options, outstanding, price, beginning (in USD per share)	17.53
Options, grants in period, price (in USD per share)	31.08
Options, forfeitures and expirations in period, price (in USD per share)	25.17
Options, exercises in period, price (in USD per share)	17.53
Options, outstanding, price, ending (in USD per share)	19.21
Options, exercisable, price (in USD per share)	19.21
Maximum
Price Range
Options, outstanding, price, beginning (in USD per share)	30.74
Options, grants in period, price (in USD per share)	34.13
Options, forfeitures and expirations in period, price (in USD per share)	30.74
Options, exercises in period, price (in USD per share)	30.74
Options, outstanding, price, ending (in USD per share)	34.13
Options, exercisable, price (in USD per share)	$ 34.13

Employee Stock Plans Restricted

Employee Stock Plans Restricted Stock and Performance Stock (Details) shares in Thousands	12 Months Ended
	Sep. 29, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted Stock Units and Performance Stock Units, nonvested, beginning balance, number of shares | shares	385
Restricted Stock Units and Performance Stock Units, grants in period | shares	337
Restricted Stock Units and Performance Stock Units, vested in period | shares	(189)
Restricted Stock Units and Performance Stock Units, forfeited in period | shares	(8)
Restricted Stock Units and Performance Stock Units, nonvested, ending balance, number of shares | shares	525
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Restricted Stock Units and Performance Stock Units, nonvested, beginning of period, weighted average grant date fair value (in USD per share) | $ / shares	$ 27.42
Restricted Stock Units and Performance Stock Units, grants in period, weighted average grant date fair value (in USD per share) | $ / shares	31.33
Restricted Stock Units and Performance Stock Units, vested in period, weighted average grant date fair value (in USD per share) | $ / shares	27.90
Restricted Stock Units and Performance Stock Units, forfeitures, weighted average grant date fair value (in USD per share) | $ / shares	26.71
Restricted Stock Units and Performance Stock Units, nonvested, end of period, weighted average grant date fair value (in USD per share) | $ / shares	$ 29.54

Employee Stock Purchase Plan (D

Employee Stock Purchase Plan (Details) $ in Millions	12 Months Ended
	Sep. 29, 2017USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, grants in period, grant date fair value | $	$ 11.4
Shares outstanding, market value | $	17.8
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized | $	$ 17.5
2017 ESPP | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent	85.00%
Stock plan offering period (in months)	6 months
Number of shares authorized (up to) | shares	1,000,000
2017 ESPP | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant | shares	1,000,000
2017 Omnibus Stock Plan | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant | shares	5,300,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in months)	36 months
Award expiration period (in years)	7 years
Minimum | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost period for recognition (in years)	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in months)	48 months
Award expiration period (in years)	10 years
Maximum | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost period for recognition (in years)	4 years

Taxes on Earnings (Details)

Taxes on Earnings (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Current provision:
Federal	$ 24.8	$ 26.4	$ 40.2
State and local	1.6	3.9	4.9
Foreign	5.3	2	2.5
Total current	31.7	32.3	47.6
Deferred provision (benefit):
Federal	(7)	3.6	(1.4)
State and local	(1)	0	(0.1)
Foreign	(0.9)	0.1	0.7
Total deferred	(8.9)	3.7	(0.8)
Taxes on earnings	22.8	36	46.8
United States	55.5	105.6	122.9
Foreign	19.3	(0.6)	4.7
Earnings before taxes	$ 74.8	$ 105	$ 127.6

Income Tax Rate Reconciliation

Income Tax Rate Reconciliation (Details) - quarter	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Income Tax Disclosure [Abstract]
Federal statutory income tax rate	35.00%	35.00%	35.00%
State and local taxes, net of federal tax benefit	1.30%	2.40%	2.50%
Domestic production activities deduction	(2.40%)	(2.20%)	(2.30%)
Research and development credit	(2.60%)	(2.20%)	(0.60%)
Foreign deferred tax adjustments	(4.00%)	(0.00%)	(0.00%)
Change in valuation allowance	3.80%	0.00%	0.00%
Other	(0.60%)	1.30%	2.10%
Effective tax rate	30.50%	34.30%	36.70%
Quarters of benefit		7	4

Deferred Tax Assets and Liabili

Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Sep. 29, 2017	Sep. 30, 2016
Deferred Tax Assets:
Inventory adjustments	$ 15	$ 13.3
Share-based compensation	1.9	2.8
Product warranty	2.2	2.3
Deferred compensation	1.3	1.2
Net operating loss carryforwards	2.4	7.7
Accrued vacation	2.1	0
Excess foreign tax credits	1.9	0
Other	2.2	6
Deferred tax assets, gross	29	33.3
Valuation allowance	(4.3)	(6.4)
Total deferred tax assets	24.7	26.9
Valuation allowance
Acquired intangibles	(26.4)	(6.5)
Property, plant and equipment	(19.9)	(10.1)
Investments in privately held companies	(6.9)	(6.7)
Other	(1)	(1.1)
Total deferred tax liabilities	(54.2)	(24.4)
Deferred Tax Assets, Net		2.5
Deferred tax assets	25.3	5.5
Deferred tax liabilities	(54.8)	$ (3)
Deferred Tax Liabilities, Net	$ (29.5)

Narrative (Details)

Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015	Sep. 26, 2014
Income Tax Disclosure [Abstract]
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries	$ 4.9
Operating Loss Carryforwards [Line Items]
Undistributed Earnings of Foreign Subsidiaries	45.5
Cash paid for income tax	6	$ 0	$ 0
Operating Loss Carryforwards, Valuation Allowance	2.1	(1.7)	(3.2)
Unrecognized Tax Benefits	0.5	4.4	4.5	$ 4.5
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	0	0.4	0.5
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Proceeds from Income Tax Refunds		$ 0.6
Domestic Tax Authority | Internal Revenue Service (IRS)
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 10.9
Foreign Tax Authority
Operating Loss Carryforwards [Line Items]
Cash paid for income tax			0.7
Proceeds from Income Tax Refunds			$ 1

Income Tax Contingency (Details

Income Tax Contingency (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits balance–beginning of fiscal year	$ 4.4	$ 4.5	$ 4.5
Additions based on tax positions related to a prior year	0	0	0.1
Additions based on tax positions related to the current year	0.5	1	1
Reductions resulting from the expiration of the applicable statute of limitations	0	(1.1)	(1.1)
Adjustments resulting from current year separation	(4.4)	0	0
Unrecognized tax benefits balance—end of fiscal year	$ 0.5	$ 4.4	$ 4.5

Segment Information (Details)

Segment Information (Details) $ in Millions	12 Months Ended
	Sep. 29, 2017USD ($)segment	Sep. 30, 2016USD ($)	Oct. 02, 2015USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment	2
Revenues	$ 698.1	$ 620.1	$ 632.3
Gross profit	253.5	248.4	250.6
Total operating expenses	169.8	139.3	123.1
Interest and other income (expenses), net	(8.9)	(4.1)	0.1
Earnings before taxes	74.8	105	127.6
Taxes on earnings	22.8	36	46.8
Net earnings	52	69	80.8
Less: Net earnings attributable to noncontrolling interests	0.4	0.5	0.8
Net earnings attributable to Varex	51.6	68.5	80
Medical
Segment Reporting Information [Line Items]
Revenues	556.9	505.8	534.3
Gross profit	193.6	195.8	207.1
Industrial
Segment Reporting Information [Line Items]
Revenues	141.2	114.3	98
Gross profit	$ 59.9	$ 52.6	$ 43.5

Segment Information Assets (Det

Segment Information Assets (Details) - USD ($) $ in Millions	Sep. 29, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Assets	$ 1,040.1	$ 622.4
Operating Segments
Segment Reporting Information [Line Items]
Assets	1,040.1	616.1
Other Segments
Segment Reporting Information [Line Items]
Assets	0	6.3
Medical | Operating Segments
Segment Reporting Information [Line Items]
Assets	832.1	481.4
Industrial | Operating Segments
Segment Reporting Information [Line Items]
Assets	$ 208	$ 134.7

Segment Information Geographic

Segment Information Geographic (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 698.1	$ 620.1	$ 632.3
Property, plant and equipment, net	148.3	108.9
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	239.8	224.7	249.2
Property, plant and equipment, net	132.1	98
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	219.5	179.5	153
Property, plant and equipment, net	8.4	2.5
APAC
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	238.8	215.9	$ 230.1
Property, plant and equipment, net	$ 7.8	$ 8.4

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Oct. 02, 2015
Retirement Benefits [Abstract]
Employer discretionary contribution amount	$ 4.3	$ 3.3	$ 3.1
Defined benefit pension plan liability	$ 3.2