Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 03, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 3, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | OCDX | |
Entity Registrant Name | Ortho Clinical Diagnostics Holdings plc | |
Entity Central Index Key | 0001828443 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-39956 | |
Entity Tax Identification Number | 98-1574150 | |
Entity Address, Address Line One | 1001 Route 202 | |
Entity Address, City or Town | Raritan | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08869 | |
City Area Code | 908 | |
Local Phone Number | 218-8000 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Ordinary shares, $0.00001 par value per ordinary share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | X0 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 237,734,877 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Income Statement [Abstract] | ||
Net revenue | $ 500.1 | $ 506.8 |
Cost of revenue, excluding amortization of intangible assets | 249.5 | 248.2 |
Selling, marketing and administrative expenses | 129.5 | 131.5 |
Research and development expense | 32.2 | 28.9 |
Amortization of intangible assets | 33.2 | 33.4 |
Other operating expense, net | 8.6 | 7.4 |
Income from operations | 47.1 | 57.4 |
Interest expense, net | 32.5 | 43.4 |
Tax indemnification income, net | (0.2) | (0.2) |
Other (income) expense, net | (3.5) | 50 |
Loss before income taxes | 18.3 | (35.8) |
Provision for income taxes | 3.5 | 3.3 |
Net loss | $ 14.8 | $ (39.1) |
Basic and diluted net loss per ordinary share | $ 0.06 | $ (0.19) |
Basic and diluted weighted-average ordinary shares outstanding | 237.2 | 206.2 |
Diluted net income (loss) per ordinary share | $ 0.06 | $ (0.19) |
Diluted weighted-average ordinary shares outstanding | 242 | 206.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Net income (loss) | $ 14.8 | $ (39.1) |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | (6.6) | (8.8) |
Other comprehensive income (loss), before tax | 12 | 7.2 |
Income tax provision related to items of other comprehensive income (loss) | 0 | 0 |
Net change | 12 | 7.2 |
Comprehensive income (loss) | 26.8 | (31.9) |
Foreign Currency Derivatives | ||
Other comprehensive income (loss), before tax: | ||
Derivatives | (2.8) | 3.6 |
Interest Rate Derivatives | ||
Other comprehensive income (loss), before tax: | ||
Derivatives | $ 21.4 | $ 12.4 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 281.1 | $ 309.7 |
Accounts receivable (net of allowance for credit losses of $0.0 and $8.6, respectively) | 241 | 257.2 |
Inventories | 316.7 | 305.4 |
Other current assets | 150.8 | 139.4 |
Total current assets | 989.6 | 1,011.7 |
Property, plant and equipment, net | 784.2 | 791.4 |
Goodwill | 572.8 | 573.6 |
Intangible assets, net | 840.7 | 879.2 |
Deferred income taxes | 9.7 | 9.7 |
Other assets | 119.4 | 98.2 |
Total assets | 3,316.4 | 3,363.8 |
Current liabilities: | ||
Accounts payable | 169.5 | 181 |
Accrued liabilities | 259.5 | 299.6 |
Deferred revenue | 30.5 | 34.5 |
Current portion of borrowings | 63.2 | 63.4 |
Total current liabilities | 522.7 | 578.5 |
Long-term borrowings | 2,177.1 | 2,186.7 |
Employee-related obligations | 36.9 | 37.1 |
Other liabilities | 67.4 | 78.9 |
Deferred income taxes | 69 | 72.1 |
Total liabilities | 2,873.1 | 2,953.3 |
Commitments and contingencies (Note 14) | ||
Shareholders' Equity: | ||
Preferred redeemable shares, $1.39 nominal value per share, 50,000 shares issued and outstanding as of April 3, 2022 and January 2, 2022, respectively | 0.1 | 0.1 |
Ordinary shares, $0.00001 par, 1,000,000,000 shares authorized, 0 and 237,203,879 shares issued and outstanding as of April 3, 2022 and January 2, 2022, respectively | 0 | 0 |
Additional paid-in capital | 2,431.9 | 2,425.9 |
Accumulated deficit | (1,957) | (1,971.8) |
Accumulated other comprehensive loss | (31.7) | (43.7) |
Total shareholders' equity | 443.3 | 410.5 |
Total liabilities and shareholders' equity | $ 3,316.4 | $ 3,363.8 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 8.9 | $ 8.6 |
Preferred stock, nominal value per share | $ 1.39 | $ 1.39 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Ordinary shares, value per share | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | 237,612,459 | 237,203,879 |
Ordinary shares, shares outstanding | 237,612,459 | 237,203,879 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Deficit) (Unaudited) - USD ($) $ in Millions | Total | Foreign Currency Derivatives | Interest Rate Derivatives | Preferred Redeemable Shares | Ordinary Shares | Additional paid in capital | Accumulated deficit | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossForeign Currency Derivatives | Accumulated Other Comprehensive LossInterest Rate Derivatives |
Beginning balance at Jan. 03, 2021 | $ (1,010.8) | $ 0 | $ 975.1 | $ (1,917.5) | $ (68.4) | |||||
Beginning balance, shares at Jan. 03, 2021 | 147,295,511 | |||||||||
Net income (loss) | (39.1) | (39.1) | ||||||||
Issuance of ordinary shares upon completion of initial public offering, net of commissions, underwriting discounts and offering costs | 1,414.7 | 1,414.7 | ||||||||
Issuance of ordinary shares upon completion of initial public offering, net of commissions, underwriting discounts and offering costs, shares | 87,400,000 | |||||||||
Issuance of incorporation shares consisting of ordinary share and preferred redeemable shares | 0.1 | $ 0.1 | ||||||||
Issuance of incorporation shares consisting of ordinary shares and preferred redeemable shares, shares | 50,000 | 1 | ||||||||
Exercise of stock options | 1 | 1 | ||||||||
Exercise of stock options, shares | 147,540 | |||||||||
Recognition of stock-based compensation | 3.5 | 3.5 | ||||||||
Foreign currency Derivatives, net of tax of $0.0 | $ 3.6 | $ 12.4 | $ 3.6 | $ 12.4 | ||||||
Interest rate derivatives, net of tax of $0.0 | 3.6 | 12.4 | 3.6 | 12.4 | ||||||
Foreign currency translation adjustments | (8.8) | (8.8) | ||||||||
Ending balance at Apr. 04, 2021 | 376.6 | $ 0.1 | $ 0 | 2,394.3 | (1,956.6) | (61.2) | ||||
Ending balance, shares at Apr. 04, 2021 | 50,000 | 234,843,052 | ||||||||
Beginning balance at Jan. 02, 2022 | 410.5 | $ 0.1 | $ 0 | 2,425.9 | (1,971.8) | (43.7) | ||||
Beginning balance, shares at Jan. 02, 2022 | 50,000 | 237,203,879 | ||||||||
Net income (loss) | 14.8 | 14.8 | ||||||||
Restricted stock grant, net of shares retained for taxes | 3,036 | |||||||||
Exercise of stock options | 3.4 | 3.4 | ||||||||
Exercise of stock options, shares | 405,544 | |||||||||
Recognition of stock-based compensation | 2.6 | 2.6 | ||||||||
Foreign currency Derivatives, net of tax of $0.0 | (2.8) | 21.4 | (2.8) | 21.4 | ||||||
Interest rate derivatives, net of tax of $0.0 | $ (2.8) | $ 21.4 | $ (2.8) | $ 21.4 | ||||||
Foreign currency translation adjustments | (6.6) | (6.6) | ||||||||
Ending balance at Apr. 03, 2022 | $ 443.3 | $ 0.1 | $ 2,431.9 | $ (1,957) | $ (31.7) | |||||
Ending balance, shares at Apr. 03, 2022 | 50,000 | 237,612,459 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Deficit) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Foreign Currency Derivatives | ||
Derivatives, tax | $ 0 | $ 0 |
Interest Rate Derivatives | ||
Derivatives, tax | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 14.8 | $ (39.1) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation and amortization | 79.4 | 82.7 |
Unrealized foreign exchange (gains) losses, net | (10.1) | 22 |
Loss on extinguishment of debt | 0 | 50.3 |
Amortization of deferred financing costs and original issue discount | 2 | 2.4 |
Stock-based compensation | 2.6 | 3.5 |
Deferred tax (benefit) provision | (0.8) | 1 |
Change in allowance for credit losses | 0.6 | 0.3 |
Other, net | 0.6 | (15.9) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 13.7 | (10.3) |
Inventories | (35.8) | (41.7) |
Other current and non-current assets | (25.2) | (15) |
Accounts payable and accrued liabilities | (39.8) | (56.5) |
Deferred revenue | (3.9) | (1) |
Other current and non-current liabilities | (2.1) | 7.4 |
Cash used in operating activities | (4) | (9.9) |
Cash Flows from Investing Activities: | ||
Purchase of property, plant and equipment | (27) | (13.4) |
Proceeds from cross currency swaps | 0 | 2.4 |
Milestone payments and other, net | (0.2) | 0.3 |
Cash used in investing activities | (27.2) | (10.7) |
Cash Flows from Financing Activities: | ||
Proceeds from initial public offering | 1,426.4 | |
Payment of initial public offering costs | 0 | (5) |
Payments on long-term borrowings | (1.3) | (1,375.9) |
Payments on short-term borrowings, net | 0 | (5.4) |
Proceeds from exercise of stock options | 3.4 | 1 |
Cash provided by financing activities | 2.1 | 41.1 |
Effect of exchange rate changes on cash | 0.5 | (0.2) |
(Decrease) increase in cash, cash equivalents and restricted cash | (28.6) | 20.3 |
Cash, cash equivalents and restricted cash at beginning of period | 311.6 | 144.2 |
Cash, cash equivalents and restricted cash at end of period | $ 283 | $ 164.5 |
General and Description of the
General and Description of the Business | 3 Months Ended |
Apr. 03, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General and Description of the Business | (1) General and description of the business Ortho Clinical Diagnostics Holdings plc and its consolidated subsidiaries (“Ortho” or “the Company”) is a leading global provider of in-vitro diagnostics (“IVD”) solutions to the clinical laboratory and transfusion medicine communities. The Company maintains a commercial presence in more than 130 countries and territories. The Company’s instruments, assays, reagents and other consumables are used in hospitals, laboratories, clinics, blood banks and donor centers worldwide. The Company is globally operated with manufacturing facilities in the United States (“U.S.”) and the United Kingdom (“U.K.”) and with sales centers, administrative offices and warehouses located throughout the world. Business Combination with Quidel On December 22, 2021, the Company, Coronado Topco, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“Coronado Topco”), Laguna Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Topco (“U.S. Merger Sub”), Orca Holdco, Inc., a Delaware corporation and a wholly owned subsidiary of Topco (“U.S. Holdco Sub”), Orca Holdco 2, Inc., a Delaware corporation and a wholly owned subsidiary of U.S. Holdco Sub (“U.S. Holdco Sub 2”) and Quidel Corporation, a Delaware corporation (“Quidel”) entered into a Business Combination Agreement (the “Business Combination Agreement,” and the transactions contemplated thereby, the “Combinations”), pursuant to which, among other things and subject to the terms and conditions contained therein, (i) under a scheme of arrangement under UK corporate law, each issued and outstanding share of the Company will be acquired by a depository nominee (or transferred within the depository nominee) on behalf of Coronado Topco in exchange for (x) 0.1055 shares of common stock of Coronado Topco and (y) $ 7.14 in cash (the “Ortho Scheme”) and (ii) immediately after the consummation of the Ortho Scheme, U.S. Merger Sub will merge with and into Quidel, pursuant to which each issued and outstanding share of Quidel common stock will be converted into one share of Coronado Topco common stock, with Quidel surviving as a wholly owned subsidiary of Coronado Topco. The boards of directors of both the Company and Quidel have unanimously approved the terms of the Business Combination Agreement, which is expected to close during the first half of fiscal year 2022. Upon completion of the Combinations, which requires shareholder approval, the Company's shareholders are expected to own approximately 38 % of Coronado Topco and Quidel stockholders are expected to own approximately 62 % of Coronado Topco on a fully diluted basis, based on the respective capitalizations of the Company and Quidel as of the date the parties entered into the Business Combination Agreement. In the event that the Business Combination Agreement is terminated by Ortho as a result of the occurrence of certain terms and conditions as specified therein, the Company must pay Quidel a termination fee of approximately $ 46.9 million, less any expenses reimbursable by Quidel pursuant to the Business Combination Agreement. If the Business Combination Agreement is terminated by Quidel as a result of the occurrence of certain terms and conditions as specified therein, the Company will receive approximately $ 207.8 million, less any expenses reimbursable by Ortho pursuant to the Business Combination Agreement. Costs incurred related to the proposed transaction, including integration-related activities, were $ 5.7 million during the fiscal quarter ended April 3, 2022 and were recorded to Other operating expenses, net in the consolidated statement of operations. |
Basis of Presentation of the Un
Basis of Presentation of the Unaudited Consolidated Financial Statements | 3 Months Ended |
Apr. 03, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation of the Unaudited Consolidated Financial Statements | (2) Basis of presentation of the unaudited consolidated financial statements These unaudited consolidated financial statements for the Company include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. These unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and Regulation S-X. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. Results for the fiscal quarter ended April 3, 2022 should not be considered indicative of results for the fiscal year ending January 1, 2023. These unaudited consolidated financial statements do not represent complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto for the fiscal year ended January 2, 2022 in the Company’s most recent Annual Report on Form 10-K. The Company follows the concept of a fiscal year which ends on the Sunday nearest to the end of the month of December, and fiscal quarters which end on the Sunday nearest to the end of the months of March, June, and September. Each fiscal quarter presented in this Quarterly Report on Form 10-Q consists of 13 weeks. Amounts reported in millions have been calculated based on underlying, unrounded amounts. Amounts presented in tables may not total due to rounding. Percentages have been calculated using underlying, unrounded amounts. These unaudited consolidated financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. As shown in the unaudited consolidated financial statements, the Company has total Cash and cash equivalents of $ 281.1 million and an Accumulated deficit of $ 1,957.0 million as of April 3, 2022. The Company reported Net income of $ 14.8 million and Cash used in operating activities of $ 4.0 million during the fiscal quarter ended April 3, 2022. The Company’s primary future cash needs will be to meet debt service requirements, working capital needs and capital expenditures. Management is required to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued and, if so, disclose that fact. The Company’s debt agreements contain various covenants that may restrict the Company’s ability to borrow on available credit facilities and future financing arrangements and require the Company to remain below a specific credit coverage threshold. The Company’s credit agreement that governs its Senior Secured Credit Facilities (as defined in Note 7–Borrowings , the “Credit Agreement”) has a financial covenant referred to as the First Lien Net Leverage Ratio, (as defined in the Credit Agreement, not to exceed 5.5-to-1, subject to a 50 basis point step-down on September 30, 2022) that is tested when borrowings and letters of credit issued under the Revolving Credit Facility (as defined in Note 7–Borrowings ) exceed 30 % of the committed amount at any period end reporting date. As of April 3, 2022 , the Company had no outstanding borrowings under its Revolving Credit Facility and letters of credit issued under the Revolving Credit Facility totaled $ 43.7 million. As of April 3, 2022, the Company was in compliance with the financial covenant. In the event the Company does not comply with the financial covenant of the Revolving Credit Facility, the lenders will have the right to call on all of the borrowings under the Revolving Credit Facility. If the lenders on the Revolving Credit Facility terminate their commitments and accelerate the loans, this would become a cross default to other material indebtedness. The Company evaluated its liquidity position and ability to comply with financial covenants in its Revolving Credit Facility as of the date of the issuance of these unaudited consolidated financial statements. Based on this evaluation, management believes that the Company’s financial position, Cash provided by operating activities combined with Cash and cash equivalents, and borrowing capacity available under its Revolving Credit Facility, will be sufficient to fund its current obligations, capital spending, debt service requirements and working capital requirements for a period of at least the next 12 months from the issuance of these unaudited consolidated financial statements. Should it become necessary, the Company may seek to raise additional capital within the next 12 months through borrowings on credit facilities, other financing activities and/or the public or private sale of equity securities. The Company may also need to control discretionary spending, which could impact its planned general and administrative, research and development, or capital spend in an effort to provide sufficient funds to continue its operations or maintain compliance with the financial covenants, and the Company may be subject to adverse business conditions due to the global COVID-19 pandemic, all of which could adversely affect the Company’s business. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 03, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | (3) Recent accounting pronouncements In July 2021, the FASB issued ASU 2021-05, Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments, which amends the accounting for lease contracts that have variable lease payments that do not depend on a reference index or rate, and which would have resulted in the recognition of a loss at lease commencement if classified as a sales-type or direct financing lease. Upon adoption, lessors will classify and account for leases with variable payments that do not depend on a reference index or rate as an operating lease if the lease would have been classified as a sales-type or direct financing lease, and if the lessor would have otherwise recognized a loss at lease commencement. The guidance in ASU 2021-05 is effective for fiscal years beginning after December 15, 2021 and can be applied either prospectively or retrospectively for reporting entities that have adopted Topic 842 prior to the issuance date of this amendment. The Company adopted this guidance prospectively on January 3, 2022, and the adoption did not have a material impact on its unaudited consolidated financial statements. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Apr. 03, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | (4) Net income (loss) per share Basic net income (loss) per ordinary share is based on the weighted-average number of ordinary shares outstanding during the period. Diluted net income (loss) per ordinary share is based on the weighted-average number of ordinary shares and ordinary share equivalents, calculated using the treasury stock method, outstanding during the period. The Company excludes potential ordinary share equivalents from the calculation if the effect would be anti-dilutive. For the fiscal quarter ended April 4, 2021, during which the Company incurred a Net loss, it excluded potential ordinary share equivalents from the calculations of Diluted net loss per ordinary share because the effect was anti-dilutive. The weighted-average number of ordinary shares used in the computation of Basic and Diluted net income (loss) per share were as follows: Fiscal Quarter Ended (In millions) April 3, 2022 April 4, 2021 Basic weighted-average ordinary shares outstanding 237.2 206.2 Effect of stock options, unvested restricted shares and restricted stock units 4.8 — Diluted weighted-average ordinary shares 242.0 206.2 The following table provides the total outstanding ordinary share equivalents, unaffected by the treasury stock method weighted-average calculation, as of the end of each period below: Fiscal Quarter Ended (In millions) April 3, 2022 April 4, 2021 Stock options 12.6 15.9 Unvested restricted shares and restricted stock units 0.5 1.0 13.1 16.9 |
Revenue
Revenue | 3 Months Ended |
Apr. 03, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (5) Revenue Contract balances Timing of revenue recognition may differ from timing of invoicing to customers. The Company records an asset when revenue is recognized prior to invoicing a customer (“contract asset”). Contract assets are included within Other current assets or Other assets in the Company’s unaudited consolidated balance sheet and are transferred to accounts receivable when the right to payment becomes unconditional. The balance of Contract assets recorded in the Company’s unaudited consolidated balance sheets were as follows: April 3, 2022 January 2, 2022 Other current assets $ 52.2 $ 47.2 Other assets — 1.0 Total contract assets $ 52.2 $ 48.1 The contract asset balance consists of the following components: • A customer supply agreement under which the difference between the timing of invoicing and revenue recognition resulted in a contract asset of $ 9.0 million as of April 3, 2022 was recorded in Other current assets. As of January 2, 2022 , the balance of the contract asset related to this agreement was $ 12.4 million, of which $ 11.5 million was recorded in Other current assets and $ 1.0 million was recorded in Other assets. • Contractual arrangements with certain customers under which the Company invoices the customers based on reportable results generated by its reagents; however, control of the goods transfers to the customers upon shipment or delivery of the products, as determined under the terms of the contract. Using the expected value method, the Company estimates the number of reagents that will generate a reportable result. The Company records the revenue upon shipment and an associated contract asset, and relieves the contract asset upon completion of the invoicing. The balance of the contract asset related to these arrangements was $ 43.2 million and $ 35.7 million as of April 3, 2022 and January 2, 2022, respectively. The Company reviews contract assets for expected credit losses resulting from the collectability of customer accounts. Expected losses are established based on historical losses, customer mix and credit policies, current economic conditions in customers’ country or industry, and expectations associated with reasonable and supportable forecasts. No credit losses related to contract assets were recognized during the fiscal quarters ended April 3, 2022 and April 4, 2021. The Company recognizes a contract liability when a customer pays an invoice prior to the Company transferring control of the goods or services (“contract liabilities”). The Company’s contract liabilities consist of deferred revenue primarily related to customer service contracts. The Company classifies deferred revenue as current or noncurrent based on the timing of the transfer of control or performance of the service. The balance of the Company’s current deferred revenue was $ 30.5 million and $ 34.5 million as of April 3, 2022 and January 2, 2022 , respectively. The Company has one arrangement with a customer where the revenue is expected to be recognized beyond one year. The balance of the deferred revenue included in long-term liabilities was $ 8.7 million and $ 5.6 million as of April 3, 2022 and January 2, 2022, respectively, and was included in Other liabilities in the unaudited consolidated balance sheets. The amount of deferred revenue as of January 2, 2022 that was recorded in Net revenue during the fiscal quarter ended April 3, 2022 was $ 19.3 million. Disaggregation of revenue The Company generates product revenue in the following lines of business: • Clinical Laboratories—Focused on (i) clinical chemistry, which is the measurement of target chemicals in bodily fluids for the evaluation of health and the clinical management of patients, (ii) immunoassay instruments, which test the measurement of proteins as they act as antigens in the spread of disease, antibodies in the immune response spurred by disease, or markers of proper organ function and health, and (iii) testing to detect and monitor disease progression across a broad spectrum of therapeutic areas. • Transfusion Medicine—Focused on (i) immunohematology instruments and tests used for blood typing to ensure patient-donor compatibility in blood transfusions, and (ii) donor screening instruments and tests used for blood and plasma screening for infectious diseases for customers primarily in the U.S. • Other Product Revenue—Includes revenues primarily from contract manufacturing. The Company also enters into collaboration and license agreements pursuant to which the Company derives collaboration and royalty revenues. During the fiscal quarter ended September 27, 2020, the Company entered into two agreements with the Biomedical Advanced Research and Development Authority, a division of the U.S. Department of Health and Human Services, for two awards of up to $ 13.6 million to develop and submit Emergency Use Authorizations and 510(k) applications to the U.S. Food and Drug Administration for its COVID-19 antigen and antibody tests. An additional award was granted to the Company on April 16, 2021 for an amount up to $ 3.6 million to submit a 510(k) application for its COVID-19 antigen test. During the fiscal quarter ended April 3, 2022 and April 4, 2021 , the Company recognized $ 0.2 million and $ 4.0 million, respectively, of Net revenue related to these grants based upon project milestones completed to date. The following table summarizes Net revenue by line of business for the fiscal quarter ended April 3, 2022 and April 4, 2021: Fiscal Quarter Ended April 3, 2022 April 4, 2021 Clinical Laboratories $ 321.2 $ 334.0 Transfusion Medicine 173.6 161.4 Other Product Revenue 0.4 4.3 Total Product Revenue 495.2 499.7 Collaborations and Other Revenue 4.8 7.1 Net Revenue $ 500.1 $ 506.8 |
Inventories
Inventories | 3 Months Ended |
Apr. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | (6) Inventories The Company’s inventories were as follows: April 3, 2022 January 2, 2022 Raw materials and supplies $ 74.8 $ 76.4 Goods in process 34.7 32.4 Finished goods 207.2 196.5 Total Inventories $ 316.7 $ 305.4 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Apr. 03, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | (8) Supplemental balance sheet information Cash and cash equivalents and restricted cash within the unaudited consolidated balance sheets are presented below: April 3, 2022 January 2, 2022 Cash and cash equivalents $ 281.1 $ 309.7 Restricted cash included in Other assets 1.9 1.9 Cash, cash equivalents and restricted cash $ 283.0 $ 311.6 Accrued liabilities included in Total current liabilities consisted of the following: April 3, 2022 January 2, 2022 Accrued compensation and employee-related obligations $ 79.2 $ 123.9 Accrued commissions and rebates 34.4 32.6 Accrued taxes other than income 22.9 22.9 Accrued interest 16.5 19.8 Derivatives 12.5 5.4 Current portion of operating lease liabilities 12.5 13.4 Income taxes payable 7.3 7.3 Other accrued liabilities 74.3 74.4 Total accrued liabilities $ 259.5 $ 299.6 |
Collaborations and Other Relati
Collaborations and Other Relationships | 3 Months Ended |
Apr. 03, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborations and other relationships | (9) Collaborations and other relationships In the normal course of business, the Company has entered into various collaboration arrangements which provide the Company with rights to develop, produce and market products using certain know-how, technology and patent rights maintained by the Company’s collaborative partners. The arrangements are often entered into in order to share risks and rewards related to a specific program or product. The Company’s collaborative arrangements include agreements with respect to transition services and a number of on-going relationships. Grifols / Novartis Vaccines and Diagnostics, Inc. The Company and Grifols Diagnostic Solutions, Inc. (“Grifols”) have an ongoing collaboration arrangement (the “Joint Business”) to pursue income-generating opportunities through the development of certain intellectual properties (“IP”). The governance of the Joint Business is shared through a Supervisory Board made up of equal representation by the Company and Grifols, which is responsible for all significant decisions relating to the Joint Business that are not exclusively assigned to either the Company or Grifols, as defined in the Joint Business agreement. The Company’s portion of the pre-tax net profit shared under the Joint Business was $ 10.3 million and $ 10.8 million during the fiscal quarter ended April 3, 2022 and April 4, 2021 , respectively. This includes the Company's portion of the pre-tax net profit of $ 5.6 million and $ 7.6 million during the fiscal quarter ended April 3, 2022 and April 4, 2021 , respectively, on sales transactions with third parties where the Company is the principal. The Company recognized revenues, cost of revenue, excluding amortization of intangible assets, and operating expenses on a gross basis on these sales transactions in their respective lines in the consolidated statements of operations. This also includes revenue from collaboration and royalty agreements, which is presented on a net basis within Collaboration and other revenues, of $ 4.7 million, and $ 3.2 million during the fiscal quarter ended April 3, 2022 and April 4, 2021, respectively. Quotient Limited In January 2015, the Company entered into an exclusive agreement with Quotient Limited (“Quotient”), a commercial-stage diagnostics company, to distribute and sell Quotient’s transfusion diagnostics platform MosaiQ. Under the terms of a distribution and supply agreement, Quotient is responsible for the development and launch of MosaiQ, while the Company will leverage its worldwide commercial capabilities to sell the product to customers. The Company has exclusive rights to distribute MosaiQ for the global patient testing market (for blood grouping) and the donor testing market in the developing world and Japan (for blood grouping and serological disease screening). Quotient retains all rights to commercialize MosaiQ in the developed world, excluding Japan, for the donor testing market. On September 4, 2020, the Company and Quotient amended the distribution and supply agreement and entered into a binding letter agreement (the “Letter Agreement”), under which the Company may be required to make up to $ 60.0 million of payments upon achievement of certain regulatory milestones and commercial sales benchmarks, which include up to $ 25.0 million of payments upon the achievement by the Company of certain cumulative revenue milestones. The Company did not make such payments during the fiscal quarter ended April 3, 2022 and does not anticipate making any such payments for the remainder of fiscal year 2022. During the fiscal quarter ended April 3, 2022 and April 4, 2021, under a separate supply agreement, the Company purchased inventories from a subsidiary of Quotient amounting to $ 6.2 million and $ 5.5 million, respectively. As of April 3, 2022 and January 2, 2022 , Accounts payable included amounts related to purchases from the Quotient subsidiary of $ 3.2 million and $ 4.1 million, respectively. During the fiscal quarters ended April 3, 2022 and April 4, 2021, sales to Quotient were immaterial. As of April 3, 2022 and January 2, 2022 , amounts due from Quotient were immaterial. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income taxes During the fiscal quarter ended April 3, 2022, the Company reported income before provision for income taxes of $ 18.3 million and recognized a provision for income taxes of $ 3.5 million , resulting in an effective tax rate of 19.1 % . The effective tax rate for the fiscal quarter ended April 3, 2022 differs from the U.S. federal statutory rate primarily due to (i) a net cost of $ 2.5 million for the impacts of operating losses in certain subsidiaries not being benefited due to the establishment of valuation allowances and (ii) a net benefit of $ 2.5 million related to non-U.S. earnings being taxed at rates that are different than the U.S. statutory rate. During the fiscal quarter ended April 4, 2021 , the Company incurred a loss before provision for income taxes of $ 35.8 million and recognized a provision for income taxes of $ 3.3 million, resulting in a negative effective tax rate of 9.2 %. The effective tax rate for the fiscal quarter ended April 4, 2021 differs from the U.S. federal statutory rate primarily due to (i) a net cost of $ 14.8 million for the impacts of operating losses in certain subsidiaries not being benefited due to the establishment of valuation allowances and (ii) a net benefit of $ 4.9 million due to the non-U.S. earnings being taxed at rates that are different than the U.S. statutory rate. The balance of unrecognized tax benefits at April 3, 2022 , not including interest and penalties, was $ 27.9 million, of which $ 23.0 million would affect the effective income tax rate in future periods, if recognized. The Company also recognizes interest and penalties related to unrecognized tax benefits in tax expense. At April 3, 2022 , the Company had approximately $ 6.6 million of interest and penalties accrued related to unrecognized tax benefits. The Company estimates that within the next twelve months, its uncertain tax positions, excluding interest, will decrease by $ 3.0 million. Indemnification assets On January 16, 2014, Bermuda Holdco entered into a stock and asset purchase agreement (the “Acquisition Agreement”) of (i) certain assets and liabilities and (ii) all of the equity interests and substantially all of the assets and liabilities of certain entities which, together with their subsidiaries, comprised the Ortho Clinical Diagnostics business from Johnson & Johnson. The Acquisition Agreement generally provided that Johnson & Johnson retained all income tax liabilities accrued as of the date of the acquisition, including reserves for unrecognized tax benefits. The indemnification receivable from Johnson & Johnson totaled $ 16.5 million and $ 16.1 million as of April 3, 2022 and January 2, 2022 , respectively. The Company recorded $ 0.2 million of interest and penalties during the fiscal quarter ended April 3, 2022 . These receivables are included as a component of Other current assets and Other assets on the unaudited consolidated balance sheets. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Apr. 03, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | (11 ) Segment and geographic information The Company has three geographically-based reportable segments: Americas, Europe, the Middle East and Africa (“EMEA”), and Greater China. Although all three segments are engaged in the marketing, distribution and sale of diagnostic instruments and assays for hospitals, laboratories and/or blood and plasma centers worldwide, each region is managed separately to better align with the market dynamics of the specific geographic region. Japan and Asia Pacific (“ASPAC”) are immaterial operating segments not considered as reportable segments and are included in “Other.” Net revenue by segment is as follows: Fiscal Quarter Ended April 3, 2022 April 4, 2021 Americas $ 315.4 $ 321.4 EMEA 68.7 68.5 Greater China 54.5 55.0 Net revenue of reportable segments $ 438.7 $ 444.9 Other 61.4 61.9 Net revenue $ 500.1 $ 506.8 Adjusted EBITDA by segment is as follows: Fiscal Quarter Ended April 3, 2022 April 4, 2021 Americas $ 143.2 $ 141.1 EMEA 19.7 17.5 Greater China 24.7 25.2 Other 17.0 19.4 Total Segment Adjusted EBITDA (a) 204.6 203.2 Corporate (b) ( 65.2 ) ( 50.8 ) Depreciation and amortization ( 79.4 ) ( 82.7 ) Interest expense, net ( 32.5 ) ( 43.4 ) Loss on extinguishment of debt — ( 50.3 ) Stock-based compensation ( 2.5 ) ( 3.5 ) Restructuring and severance-related costs ( 1.0 ) ( 1.3 ) Quidel acquisition-related costs ( 5.7 ) — Tax indemnification income, net 0.2 0.2 Costs related to Ortho's initial public offering — ( 3.8 ) EU medical device regulation transition costs ( 0.7 ) ( 0.9 ) Other adjustments 0.4 ( 2.5 ) Income (loss) before provision for income taxes $ 18.3 $ ( 35.8 ) (a) For a reconciliation of Net income (loss) to Adjusted EBITDA, refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Use of Non-GAAP Financial Measures - Reconciliation of Net Income (Loss) to Adjusted EBITDA . (b) Corporate primarily consists of costs related to executive and staff functions, including certain finance, human resources, manufacturing and information technology, which benefit the Company as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Company’s corporate function also includes debt and stock-based compensation associated with all employee stock-based awards. |
Noncash Investing and Financing
Noncash Investing and Financing Activities | 3 Months Ended |
Apr. 03, 2022 | |
Noncash Investing and Financing Items [Abstract] | |
Noncash Investing and Financing Activities | (12) Noncash investing and financing activities During the fiscal quarter ended April 3, 2022 and April 4, 2021, the Company made noncash transfers of instrument inventories from Inventories to Property, plant and equipment, net of $ 21.9 million and $ 25.6 million, respectively. As of April 3, 2022 and January 2, 2022 , Accounts payable and Accrued liabilities included amounts related to purchases of property, plant and equipment and capitalized internal-use software costs of $ 8.2 million and $ 17.2 million, respectively. As of April 4, 2021 and January 3, 2021, Accounts payable and Accrued liabilities included amounts related to purchases of property, plant and equipment and capitalized internal-use software costs of $ 1.9 million and $ 11.4 million, respectively. The changes in these balances are excluded from changes in Accounts payable and Accrued liabilities in the unaudited consolidated statements of cash flows. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 03, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (13) Related party transactions The Company entered into consulting services agreements with Carlyle Investment Management, L.L.C. (“CIM”), pursuant to which the Company pays CIM a fee for advisory, consulting and other services to be provided to the Company (the “Consulting Services Agreement”). Pursuant to the Consulting Services Agreement, which has an initial term of ten years , the Company pays an annual management fee to CIM of $ 3.0 million (the “Management Fee”). The Management Fee is payable on a quarterly basis. The Company will also reimburse CIM’s reasonable out-of-pocket expenses incurred in connection with services provided pursuant to the Consulting Services Agreement, and the Company may pay CIM additional fees associated with other future transactions or in consideration of any additional services provided to the Company under the Consulting Services Agreement. During both the fiscal quarter ended April 3, 2022 and April 4, 2021 , the Company recorded $ 0.8 million of Management Fee expense and other out-of-pocket expenses. As of April 3, 2022 and January 2, 2022 , there were no amounts due to CIM. The Company, as part of the normal course of business, entered into agreements to sell products and provide services to healthcare diagnostics companies that are portfolio companies of a fund affiliated with Carlyle. During the fiscal quarter ended April 3, 2022 and April 4, 2021 , the Company recognized revenues from business conducted with these healthcare diagnostics companies of $ 1.5 million and $ 0.9 million, respectively. As of April 3, 2022 Accounts receivable included amounts related to these healthcare diagnostics companies of $ 1.3 million. As of January 2, 2022 , Accounts receivable included amounts related to these healthcare diagnostics companies of $ 1.2 million. The Company, as part of the normal course of business, purchased inventories from a healthcare equipment company that is a portfolio company of a fund affiliated with Carlyle. During the fiscal quarter ended April 3, 2022 and April 4, 2021 , the Company recorded expenses for business conducted with this healthcare equipment company of $ 0.3 million and $ 0.8 million, respectively. As of April 3, 2022 Accounts payable included $ 0.1 million of amounts due to this healthcare equipment company. As of January 2, 2022 , Accounts payable included immaterial amounts due to this healthcare equipment company. Portfolio companies of funds affiliated with Carlyle provide Information Technology (“IT”) services to the Company. During the fiscal quarter ended April 3, 2022, the Company recorded expenses for business conducted with these companies of $ 0.2 million. During the fiscal quarter ended April 4, 2021 . the Company recorded expenses for business conducted with these companies of $ 0.3 million. As of April 3, 2022 . Accounts payable included $ 0.1 million of amounts related to these companies. As of January 2, 2022 , Accounts payable included immaterial amounts related to these companies. A portfolio company of a fund affiliated with Carlyle provides consulting services to the Company. During the fiscal quarter ended April 3, 2022 and April 4, 2021 , the Company recorded expenses for business conducted with this portfolio company of $ 0.1 million and $ 0.7 million, respectively. As of January 2, 2022 , Accounts payable included immaterial amounts related to this portfolio company. As of April 3, 2022 , there were no amounts due to this portfolio company. A security services company that is affiliated with Carlyle provides services to the Company at one of its facilities. This was a new Carlyle investment in 2021. During the fiscal quarter ended April 3, 2022, the Company recorded expenses for these services of $ 0.3 million. As of April 3, 2022 , Accounts payable included $ 0.1 million of amounts due to this company. As of January 2, 2022 , Accounts payable included $ 0.2 million of amounts due to this company. A pharmacy benefit management organization that is a portfolio company of a fund affiliated with Carlyle provides pharmacy services to the Company. During the fiscal quarter ended April 3, 2022 and April 4, 2021 , the Company recorded expenses for business conducted with this pharmacy benefit management organization of $ 1.4 million and $ 1.6 million, respectively. As of both April 3, 2022 and January 2, 2022 , Accounts payable included amounts related to this pharmacy benefit management organization of $ 0.3 million. As part of the normal course of business, the Company may purchase from or sell to portfolio companies of funds affiliated with Carlyle or the Company’s officers and directors. These expenses and revenues are not expected to be material. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and contingencies At times, the entities that carry out the Company’s business are the subject of governmental investigations and various legal actions and claims from governmental agencies and other parties. The outcomes of these matters are not within the Company’s complete control and may not be known for prolonged periods of time. The Company records a liability in the unaudited consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from these matters are inherently difficult to predict. The Company is involved in an arbitration related to a commercial contract dispute. Although the Company believes it has meritorious defenses against the claim which it intends to pursue vigorously, arbitration is inherently uncertain and it could result in an unfavorable ruling to the Company. Given the early stage of this matter, an estimate of the possible loss or range of loss cannot be made at this time. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (15) Fair value measurements The carrying amount of cash and cash equivalents, current accounts receivable, accounts payable, and short term borrowings approximates fair value because of their short outstanding terms. The estimated fair values of the Company’s Long-term borrowings were based on trades as reported by a third-party bond pricing service. Due to the infrequency of trades of the Notes and Term Loans, these inputs are considered Level 2 inputs. The following table presents the fair values of Long-term borrowings: April 3, 2022 January 2, 2022 Long-term borrowings: Dollar Term Loan Facility $ 1,288.0 $ 1,291.4 Euro Term Loan Facility 322.2 335.7 2028 Notes 416.6 435.4 2025 Notes 247.5 253.2 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Apr. 03, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | (16) Derivative instruments and hedging activities The Company selectively uses derivative and non-derivative instruments to manage market risk associated with changes in interest rates and foreign currency exchange rates. The use of derivatives is intended for hedging purposes only, and the Company does not enter into derivative transactions for speculative purposes. The Company’s derivative contracts do not require cash collateral. Interest rate hedging instruments The Company’s interest rate risk relates primarily to interest rate exposures on variable rate debt including the Senior Secured Credit Facilities. Refer to Note 7–Borrowings for additional information on the currently outstanding components of the Senior Secured Credit Facilities. The Company entered into a series of interest rate cap and swap agreements to hedge the related risk of the variability to the Company’s cash flows due to the rates specified for these credit facilities. The Company designates certain interest rate derivative instruments as cash flow hedges, including a portion of the outstanding interest rate swaps. The Company records gains and losses due to changes in fair value of the derivatives within Other comprehensive income (loss) (“OCI”) and reclassifies these amounts to Interest expense, net in the same period or periods for which the underlying hedged transaction affects earnings. In the event the Company determines the hedged transaction is no longer probable to occur or concludes the hedge relationship is no longer effective, the hedge is prospectively de-designated. The pre-tax unrealized gain of $ 1.1 million within OCI as of April 3, 2022 is expected to be reclassified to earnings in the next 12 months. The following tables summarize the Company’s interest rate derivative agreements as of April 3, 2022: Effective date Expiration date Interest rate cap amount Notional amount (a) Hedge designation December 31, 2020 December 31, 2023 3.5 % $ 1,000.0 Non-designated Effective date Expiration date Description Fixed rate Floating rate Notional amount (a) Hedge designation September 27, December 31, Pay fixed, 1.635 % 1-month LIBOR rate $ 1,000.0 Cash Flow (a) The notional value of this instrument is expected to be $ 500.0 million in fiscal 2023. The Company previously entered into an interest rate cap that was designated as a cash flow hedge. During the fiscal quarter ended September 29, 2019, the Co mpany de-designated its 3.5 % interest rate caps upon entering into the interest rate swap agreement that hedges a portion of the Company’s borrowings under the Senior Secured Credit Facilities. Upon de-designation, the Company began prospectively recognizing mark-to-market gains and losses within Other expense, net on the interest rate caps. The remaining loss on the interest rate caps that was deferred in Accumulated other comprehensive income (loss) (“AOCI”) was amortized to Interest expense, net until the Company concluded that a portion of the interest on the Company’s previously hedged borrowings was no longer probable of being paid due to the pay down of a portion of the borrowings using proceeds from the IPO. Accordingly, $ 0.6 million of losses that had previously been deferred within AOCI were released into Interest expense, net during the fiscal quarter ended April 4, 2021. During the fiscal quarter ended April 3, 2022 , the Company reclassified $ 0.9 million of deferred losses from A OCI to Interest expense, net. As of April 3, 2022 and January 2, 2022 , the remaining balance of the deferred loss in AOCI was $ 4.7 million and $ 5.6 million, respectively. In February 2021, the Company concluded that a portion of the interest on the Company’s previously hedged borrowings related to the interest rate swap was no longer probable of being paid due to the pay down of a portion of the borrowings using the proceeds from the IPO. Due to this reduction in the hedged borrowings, the Company de-designated the hedging relationship, and contemporaneously re-designated the remaining borrowings. Accordingly, $ 3.1 million of losses that had previously been deferred within AOCI were released into Interest expense, net during the fiscal quarter ended April 4, 2021. As of April 3, 2022 and January 2, 2022, the remaining balance of the deferred gain and deferred loss in AOCI was $ 6.7 million and $ 13.9 million, respectively. Currency hedging instruments The Company has currency risk exposures relating primarily to foreign currency denominated monetary assets and liabilities and forecasted foreign currency denominated intercompany and third-party transactions. The Company uses foreign currency forward, option contracts and cross currency swaps to manage its currency risk exposures. The Company’s foreign currency forward contracts are denominated primarily in Australian Dollar, Brazilian Real, British Pound, Canadian Dollar, Chilean Peso, Chinese Yuan/Renminbi, Colombian Peso, Euro, Indian Rupee, Japanese Yen, Mexican Peso, Philippine Peso, Singapore Dollar, Swiss Franc and the Thai Baht. The Company designates certain foreign currency forward contracts as cash flow hedges. The Company records gains and losses due to changes in fair value of the derivatives within OCI and reclassifies these amounts to Cost of revenue, excluding amortization of intangible assets in the same period or periods for which the underlying hedged transaction affects earnings. In the event the Company determines the hedged transaction is no longer probable to occur or concludes the hedge relationship is no longer effective, the hedge is de-designated prospectively. The pre-tax unrealized loss of $ 1.1 million within OCI as of April 3, 2022 is expected to be reclassified to earnings in the next 12 months. Foreign exchange risk is also managed through the use of foreign currency debt. During the fiscal quarter ended April 3, 2022 , € 260.0 million ($ 287.1 million) of the Company's senior secured Euro Term Loan Facility has been designated as, and is effective as, economic hedges of the net investment in a foreign operation. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the Euro-denominated debt instruments are included in foreign currency translation adjustments within AOCI. In April 2022, the Company de-designated the net investment hedge. The Company also enters into foreign currency forward contracts that are not part of designated hedging relationships, which are intended to mitigate exchange rate risk of monetary assets and liabilities and related forecasted transactions. The Company records these non-designated derivatives at mark-to-market with gains and losses recognized currently in earnings within Other expense, net. Concurrent with the issuance of the 2028 Notes, the Company entered into U.S. Dollar to Japanese Yen cross currency swaps for total notional of $ 350.0 million at a weighted average interest rate of 5.56 %, with a five-year term to lower interest expense on the 2028 Notes. These cross currency swaps were not designated for hedge accounting, and consequently, changes in their fair value were recorded to Other expense, net. The Company terminated the cross currency swaps on April 1, 2021 and received $ 12.8 million of cash from net settlement subsequent to April 4, 2021. The following table provides details of the currency hedging instruments outstanding as of April 3, 2022: Description Notional amount Hedge designation Foreign currency forward contracts $ 356.4 Cash Flow Hedge Foreign currency forward contracts 333.2 Not designated Gains and losses from designated derivative and non-derivative instruments within AOCI during the fiscal quarter ended April 3, 2022 and April 4, 2021 were recorded as follows: Designated Hedging Instruments Amount of loss Location of amounts Amount of loss Fiscal Quarter Ended April 3, 2022 Cash flow hedges: Foreign currency forward contracts $ 1.5 Cost of revenue, excluding amortization of intangible assets $ ( 1.3 ) Interest rate derivative contracts ( 16.8 ) Interest expense, net 4.6 Net investment hedges: Foreign currency-denominated debt (a) ( 8.9 ) N/A N/A Fiscal Quarter Ended April 4, 2021 Cash flow hedges: Foreign currency forward contracts $ ( 3.5 ) Cost of revenue, excluding amortization of intangible assets $ 0.1 Interest rate derivative contracts ( 3.3 ) Interest expense, net 9.1 (a) The amount of loss (gain) recognized in OCI for the foreign-currency denominated debt is presented within the CTA component of OCI. These gains and losses will remain in CTA until the related hedged item affects earnings, which would occur upon disposal or complete or substantial liquidation of the underlying hedged entities. The following tables present the effect of the Company’s designated derivative instruments within Interest expense, net and Cost of revenue, excluding amortization of intangible assets in the unaudited consolidated statements of operations: Fiscal Quarter Ended April 3, 2022 Fiscal Quarter Ended April 4, 2021 Interest expense, net Cost of revenue, excluding amortization of intangible assets Interest expense, net Cost of revenue, excluding amortization of intangible assets Total amount of line item in unaudited $ 32.5 $ 249.5 $ 43.4 $ 248.2 Effects of cash flow hedging relationships Loss (Gain) on cash flow hedging relationships Foreign currency forward contracts: Amount of loss (gain) reclassified from N/A $ ( 1.3 ) N/A $ 0.1 Amount reclassified from AOCI into income N/A $ — N/A $ — Interest rate derivative contracts: Amount of net loss reclassified from AOCI $ 4.6 N/A $ 9.1 N/A Amount reclassified from AOCI (a) $ — N/A $ 3.7 N/A (a) The amount is included within the total amount of loss (gain) reclassified from AOCI into income. Fair value (gains) and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in other expense, net and were as follows: Fiscal Quarter Ended April 3, 2022 April 4, 2021 Interest rate cap derivatives $ ( 1.9 ) $ 0.2 Foreign currency derivatives 8.3 30.4 Cross currency swaps — ( 24.0 ) The following table presents the location and fair values of designated hedging instruments recognized within the unaudited consolidated balance sheets. The fair values of d esignated hedging instruments have been determined using Level 2 inputs. April 3, 2022 January 2, 2022 Interest rate derivatives: Other assets $ 6.7 $ — Other liabilities — 13.9 Foreign currency forward contracts: Other current assets 7.6 4.5 Accrued liabilities 8.7 4.3 The following table presents the location and fair values of non-designated hedging instruments recognized within the unaudited consolidated balance sheets. The fair values of non-designated hedging instruments have been determined using Level 2 inputs. April 3, 2022 January 2, 2022 Interest rate derivatives: Other liabilities $ 2.4 $ 5.2 Foreign currency forward contracts: Other current assets 0.6 0.9 Accrued liabilities 3.7 1.1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Apr. 03, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | (17) Accumulated other comprehensive income (loss) The balances of AOCI, net of tax, were as follows for the fiscal quarters ended April 3, 2022 and April 4, 2021: Pension and Foreign Interest Unrealized Accumulated Balance at January 2, 2022 $ ( 3.3 ) $ 1.7 $ ( 19.5 ) $ ( 22.6 ) $ ( 43.7 ) Current period deferrals — ( 1.5 ) 16.8 ( 6.6 ) 8.7 Amounts reclassified to net income — ( 1.3 ) 4.6 — 3.3 Net change — ( 2.8 ) 21.4 ( 6.6 ) 12.0 Balance at April 3, 2022 $ ( 3.3 ) $ ( 1.2 ) $ 1.9 $ ( 29.2 ) $ ( 31.7 ) Pension and Foreign Interest Unrealized Accumulated Balance at January 3, 2021 $ ( 4.5 ) $ ( 4.9 ) $ ( 53.9 ) $ ( 5.1 ) $ ( 68.4 ) Current period deferrals — 3.5 3.3 ( 8.8 ) ( 2.0 ) Amounts reclassified to net loss — 0.1 9.1 — 9.2 Net change — 3.6 12.4 ( 8.8 ) 7.2 Balance at April 4, 2021 $ ( 4.5 ) $ ( 1.3 ) $ ( 41.5 ) $ ( 13.9 ) $ ( 61.2 ) |
Other (Income) Expense, Net
Other (Income) Expense, Net | 3 Months Ended |
Apr. 03, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | (18) Other (income) expense, net Other income, net was $ 3.5 million for the fiscal quarter ended April 3, 2022 , comprised primarily of $ 1.7 million of net foreign currency gains and fair value gains of $ 1.9 million from interest rate caps. Other expense, net was $ 50.0 million for the fiscal quarter ended April 4, 2021 , comprised primarily of loss on early extinguishment of debt of $ 50.3 million, which was related to the use of proceeds from the IPO to redeem portions of the Company's outstanding 2025 Notes, 2028 Notes and Dollar Term Loan Facility. This was partially offset by $ 0.9 million of net foreign currency gains, of which $ 22.9 million of realized gains were partially offset by $ 22.0 million of unrealized losses, primarily related to the unwinding of the cross currency swaps. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of weighted-average number of ordinary shares used in computation of basic and diluted net income (loss) per share | The weighted-average number of ordinary shares used in the computation of Basic and Diluted net income (loss) per share were as follows: Fiscal Quarter Ended (In millions) April 3, 2022 April 4, 2021 Basic weighted-average ordinary shares outstanding 237.2 206.2 Effect of stock options, unvested restricted shares and restricted stock units 4.8 — Diluted weighted-average ordinary shares 242.0 206.2 |
Schedule of Total Outstanding Ordinary Share Equivalents Unaffected by the Treasury Stock Method Weighted-Average Calculation [Table Text Block] | The following table provides the total outstanding ordinary share equivalents, unaffected by the treasury stock method weighted-average calculation, as of the end of each period below: Fiscal Quarter Ended (In millions) April 3, 2022 April 4, 2021 Stock options 12.6 15.9 Unvested restricted shares and restricted stock units 0.5 1.0 13.1 16.9 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Balance of Contract Assets Recorded in Consolidated Balance Sheets | The balance of Contract assets recorded in the Company’s unaudited consolidated balance sheets were as follows: April 3, 2022 January 2, 2022 Other current assets $ 52.2 $ 47.2 Other assets — 1.0 Total contract assets $ 52.2 $ 48.1 |
Summary of Net Revenue by Line of Business | The following table summarizes Net revenue by line of business for the fiscal quarter ended April 3, 2022 and April 4, 2021: Fiscal Quarter Ended April 3, 2022 April 4, 2021 Clinical Laboratories $ 321.2 $ 334.0 Transfusion Medicine 173.6 161.4 Other Product Revenue 0.4 4.3 Total Product Revenue 495.2 499.7 Collaborations and Other Revenue 4.8 7.1 Net Revenue $ 500.1 $ 506.8 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The Company’s inventories were as follows: April 3, 2022 January 2, 2022 Raw materials and supplies $ 74.8 $ 76.4 Goods in process 34.7 32.4 Finished goods 207.2 196.5 Total Inventories $ 316.7 $ 305.4 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Debt Instrument [Line Items] | |
Components of Borrowings | As of April 3, 2022 and January 3, 2021, the components of borrowings were as follows: April 3, 2022 January 2, 2022 Senior Secured Credit Facilities Dollar Term Loan Facility $ 1,292.8 $ 1,292.8 Euro Term Loan Facility 324.8 335.8 Revolving Credit Facility — — 2028 Notes 405.0 405.0 2025 Notes 240.0 240.0 Finance lease obligation 0.8 0.7 Other long-term borrowings 2.2 2.6 Unamortized deferred financing costs ( 20.2 ) ( 21.4 ) Unamortized original issue discount ( 4.9 ) ( 5.3 ) Total borrowings 2,240.4 2,250.2 Less: Current portion ( 63.2 ) ( 63.4 ) Long-term borrowings $ 2,177.1 $ 2,186.7 |
2025 Notes | |
Debt Instrument [Line Items] | |
Schedule of Redemption Prices Expressed as Percentages of Principal Amount | On or after June 1, 2022 , the Issuers have the option to redeem all or part of the 2025 Notes at the following redemption prices (expressed as percentages of principal amount): Year Price 2022 103.688 % 2023 101.844 % 2024 and thereafter 100.000 % |
2028 Notes | |
Debt Instrument [Line Items] | |
Schedule of Redemption Prices Expressed as Percentages of Principal Amount | On or after February 1, 2023 , the Issuers have the option to redeem all or part of the 2028 Notes at the following redemption prices (expressed as percentages of principal amount): Year Price 2023 103.625 % 2024 101.813 % 2025 and thereafter 100.000 % |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Schedule of Cash and Cash Equivalents and Restricted Cash | Cash and cash equivalents and restricted cash within the unaudited consolidated balance sheets are presented below: April 3, 2022 January 2, 2022 Cash and cash equivalents $ 281.1 $ 309.7 Restricted cash included in Other assets 1.9 1.9 Cash, cash equivalents and restricted cash $ 283.0 $ 311.6 |
Schedule of Accrued Liabilities | Accrued liabilities included in Total current liabilities consisted of the following: April 3, 2022 January 2, 2022 Accrued compensation and employee-related obligations $ 79.2 $ 123.9 Accrued commissions and rebates 34.4 32.6 Accrued taxes other than income 22.9 22.9 Accrued interest 16.5 19.8 Derivatives 12.5 5.4 Current portion of operating lease liabilities 12.5 13.4 Income taxes payable 7.3 7.3 Other accrued liabilities 74.3 74.4 Total accrued liabilities $ 259.5 $ 299.6 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Segment Reporting [Abstract] | |
Net Revenue by Segment | Net revenue by segment is as follows: Fiscal Quarter Ended April 3, 2022 April 4, 2021 Americas $ 315.4 $ 321.4 EMEA 68.7 68.5 Greater China 54.5 55.0 Net revenue of reportable segments $ 438.7 $ 444.9 Other 61.4 61.9 Net revenue $ 500.1 $ 506.8 |
Adjusted EBITDA by Segment | Adjusted EBITDA by segment is as follows: Fiscal Quarter Ended April 3, 2022 April 4, 2021 Americas $ 143.2 $ 141.1 EMEA 19.7 17.5 Greater China 24.7 25.2 Other 17.0 19.4 Total Segment Adjusted EBITDA (a) 204.6 203.2 Corporate (b) ( 65.2 ) ( 50.8 ) Depreciation and amortization ( 79.4 ) ( 82.7 ) Interest expense, net ( 32.5 ) ( 43.4 ) Loss on extinguishment of debt — ( 50.3 ) Stock-based compensation ( 2.5 ) ( 3.5 ) Restructuring and severance-related costs ( 1.0 ) ( 1.3 ) Quidel acquisition-related costs ( 5.7 ) — Tax indemnification income, net 0.2 0.2 Costs related to Ortho's initial public offering — ( 3.8 ) EU medical device regulation transition costs ( 0.7 ) ( 0.9 ) Other adjustments 0.4 ( 2.5 ) Income (loss) before provision for income taxes $ 18.3 $ ( 35.8 ) (a) For a reconciliation of Net income (loss) to Adjusted EBITDA, refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Use of Non-GAAP Financial Measures - Reconciliation of Net Income (Loss) to Adjusted EBITDA . (b) Corporate primarily consists of costs related to executive and staff functions, including certain finance, human resources, manufacturing and information technology, which benefit the Company as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Company’s corporate function also includes debt and stock-based compensation associated with all employee stock-based awards. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values of Long-term Borrowings | The following table presents the fair values of Long-term borrowings: April 3, 2022 January 2, 2022 Long-term borrowings: Dollar Term Loan Facility $ 1,288.0 $ 1,291.4 Euro Term Loan Facility 322.2 335.7 2028 Notes 416.6 435.4 2025 Notes 247.5 253.2 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Schedule of Interest Rate Derivative Agreements | The following tables summarize the Company’s interest rate derivative agreements as of April 3, 2022: Effective date Expiration date Interest rate cap amount Notional amount (a) Hedge designation December 31, 2020 December 31, 2023 3.5 % $ 1,000.0 Non-designated Effective date Expiration date Description Fixed rate Floating rate Notional amount (a) Hedge designation September 27, December 31, Pay fixed, 1.635 % 1-month LIBOR rate $ 1,000.0 Cash Flow (a) The notional value of this instrument is expected to be $ 500.0 million in fiscal 2023. |
Schedule of Currency Hedging Instruments Outstanding | The following table provides details of the currency hedging instruments outstanding as of April 3, 2022: Description Notional amount Hedge designation Foreign currency forward contracts $ 356.4 Cash Flow Hedge Foreign currency forward contracts 333.2 Not designated |
Schedule of Gains and Losses from Designated Derivative and Non-derivative Instruments | Gains and losses from designated derivative and non-derivative instruments within AOCI during the fiscal quarter ended April 3, 2022 and April 4, 2021 were recorded as follows: Designated Hedging Instruments Amount of loss Location of amounts Amount of loss Fiscal Quarter Ended April 3, 2022 Cash flow hedges: Foreign currency forward contracts $ 1.5 Cost of revenue, excluding amortization of intangible assets $ ( 1.3 ) Interest rate derivative contracts ( 16.8 ) Interest expense, net 4.6 Net investment hedges: Foreign currency-denominated debt (a) ( 8.9 ) N/A N/A Fiscal Quarter Ended April 4, 2021 Cash flow hedges: Foreign currency forward contracts $ ( 3.5 ) Cost of revenue, excluding amortization of intangible assets $ 0.1 Interest rate derivative contracts ( 3.3 ) Interest expense, net 9.1 (a) The amount of loss (gain) recognized in OCI for the foreign-currency denominated debt is presented within the CTA component of OCI. These gains and losses will remain in CTA until the related hedged item affects earnings, which would occur upon disposal or complete or substantial liquidation of the underlying hedged entities. |
Schedule of Designated Derivative Instruments within Interest Expense, Net and Cost of Revenue, Excluding Amortization of Intangible Assets in Statements of Operations | The following tables present the effect of the Company’s designated derivative instruments within Interest expense, net and Cost of revenue, excluding amortization of intangible assets in the unaudited consolidated statements of operations: Fiscal Quarter Ended April 3, 2022 Fiscal Quarter Ended April 4, 2021 Interest expense, net Cost of revenue, excluding amortization of intangible assets Interest expense, net Cost of revenue, excluding amortization of intangible assets Total amount of line item in unaudited $ 32.5 $ 249.5 $ 43.4 $ 248.2 Effects of cash flow hedging relationships Loss (Gain) on cash flow hedging relationships Foreign currency forward contracts: Amount of loss (gain) reclassified from N/A $ ( 1.3 ) N/A $ 0.1 Amount reclassified from AOCI into income N/A $ — N/A $ — Interest rate derivative contracts: Amount of net loss reclassified from AOCI $ 4.6 N/A $ 9.1 N/A Amount reclassified from AOCI (a) $ — N/A $ 3.7 N/A (a) The amount is included within the total amount of loss (gain) reclassified from AOCI into income. |
Not Designated as Hedging Instrument | |
Schedule of Gains and Losses from Designated Derivative and Non-derivative Instruments | Fair value (gains) and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in other expense, net and were as follows: Fiscal Quarter Ended April 3, 2022 April 4, 2021 Interest rate cap derivatives $ ( 1.9 ) $ 0.2 Foreign currency derivatives 8.3 30.4 Cross currency swaps — ( 24.0 ) |
Location and Fair Values of Designated and Non-Designated Hedging Instruments Recognized within Consolidated Balance Sheets | The following table presents the location and fair values of non-designated hedging instruments recognized within the unaudited consolidated balance sheets. The fair values of non-designated hedging instruments have been determined using Level 2 inputs. April 3, 2022 January 2, 2022 Interest rate derivatives: Other liabilities $ 2.4 $ 5.2 Foreign currency forward contracts: Other current assets 0.6 0.9 Accrued liabilities 3.7 1.1 |
Designated as Hedging Instrument | |
Location and Fair Values of Designated and Non-Designated Hedging Instruments Recognized within Consolidated Balance Sheets | The following table presents the location and fair values of designated hedging instruments recognized within the unaudited consolidated balance sheets. The fair values of d esignated hedging instruments have been determined using Level 2 inputs. April 3, 2022 January 2, 2022 Interest rate derivatives: Other assets $ 6.7 $ — Other liabilities — 13.9 Foreign currency forward contracts: Other current assets 7.6 4.5 Accrued liabilities 8.7 4.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss), Net of Tax | The balances of AOCI, net of tax, were as follows for the fiscal quarters ended April 3, 2022 and April 4, 2021: Pension and Foreign Interest Unrealized Accumulated Balance at January 2, 2022 $ ( 3.3 ) $ 1.7 $ ( 19.5 ) $ ( 22.6 ) $ ( 43.7 ) Current period deferrals — ( 1.5 ) 16.8 ( 6.6 ) 8.7 Amounts reclassified to net income — ( 1.3 ) 4.6 — 3.3 Net change — ( 2.8 ) 21.4 ( 6.6 ) 12.0 Balance at April 3, 2022 $ ( 3.3 ) $ ( 1.2 ) $ 1.9 $ ( 29.2 ) $ ( 31.7 ) Pension and Foreign Interest Unrealized Accumulated Balance at January 3, 2021 $ ( 4.5 ) $ ( 4.9 ) $ ( 53.9 ) $ ( 5.1 ) $ ( 68.4 ) Current period deferrals — 3.5 3.3 ( 8.8 ) ( 2.0 ) Amounts reclassified to net loss — 0.1 9.1 — 9.2 Net change — 3.6 12.4 ( 8.8 ) 7.2 Balance at April 4, 2021 $ ( 4.5 ) $ ( 1.3 ) $ ( 41.5 ) $ ( 13.9 ) $ ( 61.2 ) |
General and Description of th_2
General and Description of the Business - Additional Information (Details) | Feb. 05, 2021USD ($) | Apr. 03, 2022USD ($)$ / shares | Apr. 03, 2022USD ($)Country$ / sharesshares | Apr. 04, 2021USD ($)shares | Jan. 02, 2022USD ($) |
General And Description Of Business [Line Items] | |||||
Percentage Of Shares Acquired | 38.00% | ||||
Net proceeds from IPO | $ 1,426,400,000 | ||||
Cash and cash equivalents | 281,100,000 | $ 281,100,000 | $ 309,700,000 | ||
Accumulated deficit | (1,957,000,000) | (1,957,000,000) | $ (1,971,800,000) | ||
Net loss | 14,800,000 | (39,100,000) | |||
Cash provided by operating activities | (4,000,000) | (9,900,000) | |||
Letters of credit issued | 43,700,000 | 43,700,000 | |||
Selling, marketing and administrative expenses | 129,500,000 | $ 131,500,000 | |||
Integration-related expenses | $ 5,700,000 | ||||
Revolving Credit Facility | |||||
General And Description Of Business [Line Items] | |||||
Maximum percentage of committed amount for first lien net leverage ratio | 30.00% | ||||
Outstanding borrowings | $ 0 | $ 0 | |||
2025 Notes | |||||
General And Description Of Business [Line Items] | |||||
Repayment of debt | $ 160,000,000 | ||||
2028 Notes | |||||
General And Description Of Business [Line Items] | |||||
Repayment of debt | $ 270,000,000 | ||||
Minimum | |||||
General And Description Of Business [Line Items] | |||||
Number of countries and territories with commercial presence | Country | 130 | ||||
Quidel | |||||
General And Description Of Business [Line Items] | |||||
Percentage Of Shares Acquired | 62.00% | ||||
Ortho-Clinical Diagnostics S.A. | |||||
General And Description Of Business [Line Items] | |||||
Initial share capital | shares | 0.1055 | ||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||
General And Description Of Business [Line Items] | |||||
Amount receivable on Business Combination agreement Termination by Quidel | $ 207,800,000 | ||||
Series of Individually Immaterial Business Acquisitions [Member] | Quidel | |||||
General And Description Of Business [Line Items] | |||||
Termination Fee | $ 46,900,000 | ||||
Common Stock | |||||
General And Description Of Business [Line Items] | |||||
Initial share capital | shares | 1 | ||||
Share price | $ / shares | $ 7.14 | $ 7.14 | |||
Ordinary shares issued and sold | shares | 87,400,000 | ||||
Preferred Redeemable Shares | |||||
General And Description Of Business [Line Items] | |||||
Initial share capital | shares | 50,000 |
Basis of Presentation of the _2
Basis of Presentation of the Unaudited Consolidated Financial Statements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Total cash and cash equivalents | $ 281.1 | $ 309.7 | |
Accumulated deficit | (1,957) | $ (1,971.8) | |
Net income (loss) | 14.8 | $ (39.1) | |
Cash used in operating activities | (4) | $ (9.9) | |
Letters of credit issued | $ 43.7 | ||
Revolving Credit Facility | |||
Maximum percentage of committed amount for first lien net leverage ratio | 30.00% |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of weighted-average number of ordinary shares used in computation of basic and diluted net income (loss) per share (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average ordinary shares outstanding | 237.2 | 206.2 |
Effect of stock options, unvested restricted shares and restricted stock units | 4.8 | |
Diluted weighted-average ordinary shares outstanding | 242 | 206.2 |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Summary of total outstanding ordinary share equivalents, unaffected by treasury stock method weighted-average calculation (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
OutstandingOrdinaryShareEquivalentsUnaffectedByTheTreasuryStockMethodWeightedAverageCalculationLineItem | ||
Stock options | 12.6 | 15.9 |
Unvested restricted shares and restricted stock units | 0.5 | 1 |
Total | 13.1 | 16.9 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 3 Months Ended | ||||
Apr. 03, 2022USD ($) | Apr. 04, 2021USD ($) | Sep. 27, 2020USD ($)AwardAgreement | Jan. 02, 2022USD ($) | Apr. 16, 2021USD ($) | |
Disaggregation Of Revenue [Line Items] | |||||
Contract asset | $ 52,200,000 | $ 48,100,000 | |||
Credit losses related to contract assets | 0 | $ 0 | |||
Deferred revenue, current | 30,500,000 | 34,500,000 | |||
Deferred revenue, revenue recognized | 19,300,000 | ||||
Revenue recognized | 4,800,000 | 7,100,000 | |||
Other Assets | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract asset | 0 | 1,000,000 | |||
Other Current Assets | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract asset | 52,200,000 | 47,200,000 | |||
Other Liabilities | |||||
Disaggregation Of Revenue [Line Items] | |||||
Deferred revenue, non-current | 8,700,000 | 5,600,000 | |||
Customer Supply Agreement | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract asset | 9,000,000 | 12,400,000 | |||
Customer Supply Agreement | Other Assets | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract asset | 1,000,000 | ||||
Customer Supply Agreement | Other Current Assets | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract asset | 11,500,000 | ||||
Contractual Arrangements | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract asset | 43,200,000 | $ 35,700,000 | |||
Biomedical Advanced Research and Development Authority | |||||
Disaggregation Of Revenue [Line Items] | |||||
Number of collaboration and license agreements | Agreement | 2 | ||||
Number of awards under collaboration and license agreements | Award | 2 | ||||
Biomedical Advanced Research and Development Authority | Maximum | |||||
Disaggregation Of Revenue [Line Items] | |||||
Potential payment receivable for development and submission of emergency use authorizations and 510(k) applications of COVID-19 tests | $ 13,600,000 | ||||
Additional awards granted, potential payment receivable for development and submission of emergency use authorizations and 510(k) applications of COVID-19 tests | $ 3,600,000 | ||||
Biomedical Advanced Research and Development Authority | Grant Revenue | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue recognized | $ 200,000 | $ 4,000,000 |
Revenue - Schedule of Balance o
Revenue - Schedule of Balance of Contract Assets Recorded in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Disaggregation Of Revenue [Line Items] | ||
Total contract assets | $ 52.2 | $ 48.1 |
Other Current Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Total contract assets | 52.2 | 47.2 |
Other Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Total contract assets | $ 0 | $ 1 |
Revenue - Summary of Net Revenu
Revenue - Summary of Net Revenue by Line of Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total Product Revenue | $ 495.2 | $ 499.7 |
Collaborations and Other Revenue | 4.8 | 7.1 |
Net Revenue | 500.1 | 506.8 |
Clinical Laboratories | ||
Disaggregation Of Revenue [Line Items] | ||
Total Product Revenue | 321.2 | 334 |
Transfusion Medicine | ||
Disaggregation Of Revenue [Line Items] | ||
Total Product Revenue | 173.6 | 161.4 |
Other Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total Product Revenue | $ 0.4 | $ 4.3 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 74.8 | $ 76.4 |
Goods in process | 34.7 | 32.4 |
Finished goods | 207.2 | 196.5 |
Total Inventories | $ 316.7 | $ 305.4 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Debt Instrument [Line Items] | ||
Finance lease obligation | $ 0.8 | $ 0.7 |
Other long-term borrowings | 2.2 | 2.6 |
Unamortized deferred financing costs | (20.2) | (21.4) |
Unamortized original issue discount | (4.9) | (5.3) |
Total borrowings | 2,240.4 | 2,250.2 |
Less: Current portion | (63.2) | (63.4) |
Long-term borrowings | 2,177.1 | 2,186.7 |
Dollar Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 1,292.8 | 1,292.8 |
Unamortized deferred financing costs | (7.5) | (8.1) |
Euro Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 324.8 | 335.8 |
Unamortized deferred financing costs | (3.4) | (3.6) |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 0 | 0 |
Unamortized deferred financing costs | (2.2) | (2.7) |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 405 | 405 |
Unamortized deferred financing costs | (6.2) | (6.4) |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 240 | 240 |
Unamortized deferred financing costs | $ (3.2) | $ (3.4) |
Borrowings - Senior Secured Cre
Borrowings - Senior Secured Credit Facilities - Additional Information (Details) € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2021USD ($) | Apr. 03, 2022USD ($) | Apr. 04, 2021USD ($) | Oct. 03, 2021USD ($) | Apr. 03, 2022EUR (€) | Jan. 02, 2022USD ($) | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 0 | $ 50,300,000 | ||||
Letters of Credit Outstanding, Amount | 43,700,000 | |||||
Unamortized deferred financing costs | 20,200,000 | $ 21,400,000 | ||||
Euro Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized deferred financing costs | $ 3,400,000 | 3,600,000 | ||||
Debt instrument, effective interest rate | 3.88% | 3.88% | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 0 | |||||
Line of credit, available borrowing capacity | $ 456,300,000 | |||||
Maximum percentage of committed amount for first lien net leverage ratio | 30.00% | |||||
Unamortized deferred financing costs | $ 2,200,000 | 2,700,000 | ||||
Revolving Credit Facility | Each Fiscal Quarter Ending on or Prior to September 30, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
First lien net leverage ratio | 5.50 | 5.50 | ||||
Revolving Credit Facility | Each Fiscal Quarter Ending Thereafter | ||||||
Debt Instrument [Line Items] | ||||||
First lien net leverage ratio | 5 | 5 | ||||
Dollar Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Early repayment of debt | $ 892,700,000 | |||||
Unamortized deferred financing costs | $ 7,500,000 | 8,100,000 | ||||
Debt instrument, effective interest rate | 5.76% | 5.76% | ||||
Dollar Term Loan Facility | Other Expense, Net | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ (11,400,000) | |||||
Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of Credit Outstanding, Amount | $ 43,700,000 | |||||
Senior Secured Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized deferred financing costs | 4,900,000 | $ 5,300,000 | ||||
Fifth Amendment of Credit Agreement | Euro Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | € | € 337.4 | |||||
Fifth Amendment of Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | 500,000,000 | |||||
Fifth Amendment of Credit Agreement | Dollar Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 2,325,000,000 |
Borrowings - 2025 Notes - Addit
Borrowings - 2025 Notes - Additional Information (Details) - USD ($) | Feb. 05, 2021 | Jun. 11, 2020 | Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ (50,300,000) | |||
Unamortized deferred financing costs | $ 20,200,000 | $ 21,400,000 | |||
2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 400,000,000 | ||||
Debt instrument, stated interest rate | 7.375% | ||||
Debt instrument, maturity date | Jun. 1, 2025 | ||||
Deferred financing costs, gross | $ 7,500,000 | ||||
Debt instrument, redemption period start date | Jun. 1, 2022 | ||||
Redemption price percentage | 107.375% | ||||
Percentage of principal amount of debt with net cash proceeds of equity offerings | 40.00% | ||||
Repayment of debt | $ 160,000,000 | ||||
Loss on extinguishment of debt | 14,500,000 | ||||
Write off of deferred debt Issuance cost | $ 2,700,000 | ||||
Unamortized deferred financing costs | $ 3,200,000 | $ 3,400,000 | |||
Debt instrument, effective interest rate | 8.03% | ||||
2025 Notes | Other Expense, Net | |||||
Debt Instrument [Line Items] | |||||
Redemption premium | $ 11,800,000 | ||||
2025 Notes | Prior to June 1, 2022 | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 100.00% |
Borrowings - Schedule of Redemp
Borrowings - Schedule of Redemption Prices of 2025 Notes Expressed as Percentages of Principal Amount (Details) - 2025 Notes | Jun. 11, 2020 | Apr. 03, 2022 |
Debt Instrument [Line Items] | ||
Redemption price percentage | 107.375% | |
2022 | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 103.688% | |
2023 | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 101.844% | |
2024 and Thereafter | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 100.00% |
Borrowings - 2028 Notes - Addit
Borrowings - 2028 Notes - Additional Information (Details) - USD ($) | Feb. 05, 2021 | Jan. 27, 2020 | Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ (50,300,000) | |||
Unamortized deferred financing costs | $ 20,200,000 | $ 21,400,000 | |||
2028 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 675,000,000 | ||||
Debt instrument, stated interest rate | 7.25% | ||||
Debt instrument, maturity date | Feb. 1, 2028 | ||||
Deferred financing costs, gross | $ 12,900,000 | ||||
Debt instrument, redemption period start date | Feb. 1, 2023 | ||||
Redemption price percentage | 107.25% | ||||
Percentage of principal amount of debt with net cash proceeds of equity offerings | 40.00% | ||||
Repayment of debt | $ 270,000,000 | ||||
Loss on extinguishment of debt | 24,300,000 | ||||
Write off of deferred debt Issuance cost | 4,700,000 | ||||
Unamortized deferred financing costs | $ 6,200,000 | $ 6,400,000 | |||
Debt instrument, effective interest rate | 7.76% | ||||
2028 Notes | Other Expense, Net | |||||
Debt Instrument [Line Items] | |||||
Redemption premium | $ 19,600,000 | $ 19,600,000 | |||
2028 Notes | Prior to February 1, 2023 | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 100.00% |
Borrowings - Schedule of Rede_2
Borrowings - Schedule of Redemption Prices of 2028 Notes Expressed as Percentages of Principal Amount (Details) - 2028 Notes | Jan. 27, 2020 | Apr. 03, 2022 |
Debt Instrument [Line Items] | ||
Redemption price percentage | 107.25% | |
2023 | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 103.625% | |
2024 | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 101.813% | |
2025 and Thereafter | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 100.00% |
Borrowings - Schedule of Intere
Borrowings - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Amortization of: | ||
Deferred financing costs | $ 1.6 | $ 1.7 |
Original issue discount | 0.4 | 0.3 |
Derivative instruments and other | 4.8 | 8.2 |
Interest expense, net | 32.5 | 43.4 |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Interest expense | 7.4 | 9.1 |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Interest expense | 4.5 | 5.5 |
Accounts Receivable Financing | ||
Debt Instrument [Line Items] | ||
Interest expense | 0 | 0.9 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest expense | 0.7 | 0 |
Dollar Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Interest expense | 10.2 | 14.1 |
Euro Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Interest expense | $ 2.9 | $ 3.6 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Schedule of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 | Apr. 04, 2021 | Jan. 03, 2021 |
Supplemental Balance Sheet Information [Abstract] | ||||
Cash and cash equivalents | $ 281.1 | $ 309.7 | ||
Restricted cash included in Other assets | 1.9 | 1.9 | ||
Cash, cash equivalents and restricted cash | $ 283 | $ 311.6 | $ 164.5 | $ 144.2 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Supplemental Balance Sheet Information [Abstract] | ||
Accrued compensation and employee-related obligations | $ 79.2 | $ 123.9 |
Accrued commissions and rebates | 34.4 | 32.6 |
Accrued taxes other than income | 22.9 | 22.9 |
Accrued interest | 16.5 | 19.8 |
Derivatives | 12.5 | 5.4 |
Current portion of operating lease liabilities | 12.5 | 13.4 |
Income taxes payable | 7.3 | 7.3 |
Other accrued liabilities | 74.3 | 74.4 |
Total accrued liabilities | $ 259.5 | $ 299.6 |
Collaborations and Other Rela_2
Collaborations and Other Relationships - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | Sep. 04, 2020 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenues | $ 500.1 | $ 506.8 | ||
Research and development expense | 32.2 | 28.9 | ||
Accounts payable related to purchases | 169.5 | $ 181 | ||
Collaborations | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenues | 4.7 | 3.2 | ||
Grifols Diagnostic Solutions, Inc. | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Net profit shared under joint venture, before tax | 5.6 | 7.6 | ||
Joint Business | Grifols Diagnostic Solutions, Inc. | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Net profit shared under joint venture, before tax | 10.3 | 10.8 | ||
Letter Agreement | Quotient Limited | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Inventories, purchased | 6.2 | $ 5.5 | ||
Accounts payable related to purchases | $ 3.2 | $ 4.1 | ||
Letter Agreement | Quotient Limited | Maximum | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Potential additional payments upon achievement of certain regulatory milestones and commercial sales benchmarks | $ 60 | |||
Potential payments upon achievement of certain cumulative revenue milestones | $ 25 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Income Tax [Line Items] | |||
Income (Loss) before provision for income taxes | $ 18.3 | $ (35.8) | |
Provision for income taxes | $ 3.5 | $ 3.3 | |
Effective tax rate | 19.10% | (9.20%) | |
Net Cost Impact Due To Valuation Allowances | $ 2.5 | $ 14.8 | |
Net Benefit Due to Increase In Interest Expenses | 2.5 | $ 4.9 | |
Unrecognized tax benefits | 27.9 | ||
Unrecognized tax benefits that would affect effective income tax rate | 23 | ||
Accrued interest and penalties | 6.6 | ||
Increase (Decrease) in Unrecognized Tax Benefits | (3) | ||
Johnson and Johnson | |||
Income Tax [Line Items] | |||
Indemnification receivable | 16.5 | $ 16.1 | |
Interest and penalties | $ 0.2 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) | 3 Months Ended |
Apr. 03, 2022Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Inform_4
Segment and Geographic Information - Net Revenue by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue recognized | $ 500.1 | $ 506.8 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue recognized | 61.4 | 61.9 |
Reportable Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue recognized | 438.7 | 444.9 |
Reportable Segment | Americas | ||
Segment Reporting Information [Line Items] | ||
Revenue recognized | 315.4 | 321.4 |
Reportable Segment | EMEA | ||
Segment Reporting Information [Line Items] | ||
Revenue recognized | 68.7 | 68.5 |
Reportable Segment | Greater China | ||
Segment Reporting Information [Line Items] | ||
Revenue recognized | $ 54.5 | $ 55 |
Segment and Geographic Inform_5
Segment and Geographic Information - Adjusted EBITDA by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | $ (79.4) | $ (82.7) |
interest expense, net | (32.5) | (43.4) |
Loss on extinguishment of debt | 0 | (50.3) |
Stock-based compensation | (2.6) | (3.5) |
Restructuring and severance-related costs | (1) | (1.3) |
Quidel acquisition-related costs | (5.7) | 0 |
Tax indemnification income, net | 0.2 | 0.2 |
Costs related to Ortho's initial public offering | (3.8) | |
EU medical device regulation transition cost | (0.7) | (0.9) |
Other Adjustments | 0.4 | (2.5) |
Income (Loss) before provision for income taxes | 18.3 | (35.8) |
2014 Plan [Member] | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation | (2.5) | (3.5) |
Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 143.2 | 141.1 |
Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 19.7 | 17.5 |
Operating Segments | Greater China | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 24.7 | 25.2 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 17 | 19.4 |
Corporate Non Segment Member | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 204.6 | 203.2 |
Corporate | $ 65.2 | $ 50.8 |
Noncash Investing and Financi_2
Noncash Investing and Financing Activities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | Jan. 03, 2021 | |
Noncash Investing and Financing Items [Abstract] | ||||
Noncash transfer of inventory to property, plant and equipment, net | $ 21.9 | $ 25.6 | ||
Purchases of property, plant and equipment and capitalized internal-use software costs included in Accounts payable and Accrued liabilities | $ 8.2 | $ 1.9 | $ 17.2 | $ 11.4 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Related Party Transaction [Line Items] | |||
Revenue recognized | $ 500.1 | $ 506.8 | |
Carlyle Investment Management, L.L.C. | Healthcare Equipment Company | |||
Related Party Transaction [Line Items] | |||
Inventories, purchased | 0.3 | 0.8 | |
Due to related party | 0.1 | ||
Due to related party | immaterial | ||
Carlyle Investment Management, L.L.C. | Healthcare Diagnostics Companies | |||
Related Party Transaction [Line Items] | |||
Revenue recognized | 1.5 | 0.9 | |
Accounts Receivable, Related Parties | 1.3 | $ 1.2 | |
Carlyle Investment Management, L.L.C. | Security Services Company | |||
Related Party Transaction [Line Items] | |||
Due to related party | 0.1 | $ 0.2 | |
Security service expense | 0.3 | ||
Carlyle Investment Management, L.L.C. | Information Technology Company | |||
Related Party Transaction [Line Items] | |||
IT service fees | 0.2 | 0.3 | |
Due to related party | 0.1 | ||
Due to related party | immaterial | ||
Carlyle Investment Management, L.L.C. | Consulting Services Company | |||
Related Party Transaction [Line Items] | |||
Consulting fees | 0.1 | 0.7 | |
Due to related party | 0 | ||
Due to related party | immaterial | ||
Carlyle Investment Management, L.L.C. | Pharmacy Benefit Management | |||
Related Party Transaction [Line Items] | |||
Pharmacy related services, fees | 1.4 | 1.6 | |
Due to related party | $ 0.3 | $ 0.3 | |
Carlyle Investment Management, L.L.C. | Consulting Services Agreement | |||
Related Party Transaction [Line Items] | |||
Agreement, initial term | 10 years | ||
Annual management fee | $ 3 | ||
Management fee expense and other out-of-pocket expenses | 0.8 | $ 0.8 | |
Due to related party | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Long-term Borrowings (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Dollar Term Loan Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term borrowings, fair value | $ 1,288 | $ 1,291.4 |
Euro Term Loan Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term borrowings, fair value | 322.2 | 335.7 |
2028 Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term borrowings, fair value | 416.6 | 435.4 |
2025 Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term borrowings, fair value | $ 247.5 | $ 253.2 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) € in Millions | 3 Months Ended | ||||
Apr. 03, 2022USD ($) | Apr. 04, 2021USD ($) | Apr. 03, 2022EUR (€) | Jan. 02, 2022USD ($) | Sep. 29, 2019 | |
Derivative [Line Items] | |||||
Pre-tax unrealized loss within OCI to be reclassified to earnings in next 12 months, interest rate derivative instruments | $ 1,100,000 | ||||
Pre-tax unrealized loss within OCI to be reclassified to earnings in next 12 months, foreign currency contracts | (1,100,000) | ||||
Euro Term Loan Facility | |||||
Derivative [Line Items] | |||||
Net investment in a foreign operation, designated as economic hedge | 287,100,000 | € 260 | |||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Interest rate cap amount | 3.50% | ||||
Derivative loss included in AOCI | 4,700,000 | $ 5,600,000 | |||
Deferred losses released to interest expense | 900,000 | $ 600,000 | |||
Interest Rate Swap Previously Hedged | |||||
Derivative [Line Items] | |||||
Derivative loss included in AOCI | 6,700,000 | $ 13,900,000 | |||
Deferred losses released to interest expense | 3,100,000 | ||||
Japanese Yen Cross Currency Swap | |||||
Derivative [Line Items] | |||||
Derivative notional amount | $ 350,000,000 | ||||
Weighted average interest rate | 5.56% | 5.56% | |||
Derivative instrument term | 5 years | ||||
U.S. Dollar to Japanese Yen Cross Currency Swaps | 2028 Notes | |||||
Derivative [Line Items] | |||||
Net settlement on derivatives | $ 12,800,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Interest Rate Derivative Agreements (Details) | 3 Months Ended |
Apr. 03, 2022USD ($) | |
Cash Flow Hedge | |
Derivative [Line Items] | |
Effective date | Sep. 27, 2019 |
Expiration date | Dec. 31, 2023 |
Interest rate cap amount | 1.635% |
Derivative notional amount | $ 1,000,000,000 |
Floating rate | 1-month LIBOR rate |
Not Designated as Hedging Instrument | Interest Rate Swap 1 | |
Derivative [Line Items] | |
Effective date | Dec. 31, 2020 |
Expiration date | Dec. 31, 2023 |
Interest rate cap amount | 3.50% |
Derivative notional amount | $ 1,000,000,000 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule of Interest Rate Derivative Agreements (Parenthetical) (Details) - Cash Flow Hedge | Apr. 03, 2022USD ($) |
Derivative [Line Items] | |
Derivative notional amount | $ 1,000,000,000 |
Expected Notional Value 2023 | |
Derivative [Line Items] | |
Derivative notional amount | $ 500,000,000 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of Currency Hedging Instruments Outstanding (Details) | Apr. 03, 2022USD ($) |
Cash Flow Hedge | |
Derivative [Line Items] | |
Derivative notional amount | $ 1,000,000,000 |
Foreign Currency Derivatives | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative notional amount | 333,200,000 |
Foreign Currency Derivatives | Cash Flow Hedge | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative notional amount | $ 356,400,000 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Schedule of Gains and Losses from Designated Derivative and Non-derivative Instruments within AOCI (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Cash Flow Hedge | Cost of Revenue Excluding Amortization of Intangible Assets | Foreign Currency Derivatives | ||
Derivative [Line Items] | ||
Amount of loss (gain) recognized in OCI on hedges | $ 1.5 | $ (3.5) |
Amount of net loss (gain) reclassified from AOCI into income | (1.3) | 0.1 |
Cash Flow Hedge | Interest Expense, Net | Interest Rate Derivatives | ||
Derivative [Line Items] | ||
Amount of loss (gain) recognized in OCI on hedges | (16.8) | (3.3) |
Amount of net loss (gain) reclassified from AOCI into income | 4.6 | $ 9.1 |
Net Investment Hedge | Foreign currency-Denominated Debt | ||
Derivative [Line Items] | ||
Amount of loss (gain) recognized in OCI on hedges | $ (8.9) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Schedule of Designated Derivative Instruments within Interest Expense, Net and Cost of Revenue, Excluding Amortization of Intangible Assets in Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Derivative [Line Items] | ||
Interest expense, net | $ 32.5 | $ 43.4 |
Cost of revenue, excluding amortization of intangible assets | 249.5 | 248.2 |
Cash Flow Hedge | ||
Derivative [Line Items] | ||
Interest expense, net | 32.5 | 43.4 |
Cost of revenue, excluding amortization of intangible assets | 249.5 | 248.2 |
Cash Flow Hedge | Interest Expense, Net | Designated as Hedging Instrument | Interest Rate Derivatives | ||
Derivative [Line Items] | ||
Amount of net loss (gain) reclassified from AOCI into income | 4.6 | 9.1 |
Amount reclassified from AOCI into income due to forecast transaction that is no longer probable of occurring | 0 | 3.7 |
Cash Flow Hedge | Cost of Revenue Excluding Amortization of Intangible Assets | Designated as Hedging Instrument | Foreign Currency Derivatives | ||
Derivative [Line Items] | ||
Amount of net loss (gain) reclassified from AOCI into income | (1.3) | 0.1 |
Amount reclassified from AOCI into income due to forecast transaction that is no longer probable of occurring | $ 0 | $ 0 |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Schedule of Mark-to-Market (Gains) and Losses on Non-Designated Derivatives Recognized (Details) - Other Expense, Net - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Derivative [Line Items] | ||
Interest rate cap derivatives | $ (1.9) | $ 0.2 |
Foreign currency derivatives | 8.3 | 30.4 |
Cross currency swaps | $ 0 | $ (24) |
Derivative Instruments and H_10
Derivative Instruments and Hedging Activities - Location and Fair Values of Designated Hedging Instruments Recognized within Consolidated Balance Sheets (Details) - Level 2 - Cash Flow Hedge - Designated as Hedging Instrument - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Accrued Liabilities | ||
Derivative [Line Items] | ||
Foreign currency forward contracts | $ 8.7 | $ 4.3 |
Other Assets | ||
Derivative [Line Items] | ||
Interest rate derivative contracts | 6.7 | 0 |
Other Liabilities | ||
Derivative [Line Items] | ||
Interest rate derivative contracts | 0 | 13.9 |
Other Current Assets | ||
Derivative [Line Items] | ||
Foreign currency forward contracts | $ 7.6 | $ 4.5 |
Derivative Instruments and H_11
Derivative Instruments and Hedging Activities - Location and Fair Values of Non-Designated Hedging Instruments Recognized within Consolidated Balance Sheets (Details) - Level 2 - Cash Flow Hedge - Not Designated as Hedging Instrument - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Accrued Liabilities | ||
Derivative [Line Items] | ||
Foreign currency forward contracts | $ 3.7 | $ 1.1 |
Other Liabilities | ||
Derivative [Line Items] | ||
Interest rate derivative contracts | 2.4 | 5.2 |
Other Current Assets | ||
Derivative [Line Items] | ||
Foreign currency forward contracts | $ 0.6 | $ 0.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ 410.5 | $ (1,010.8) |
Net change | 12 | 7.2 |
Ending balance | 443.3 | 376.6 |
Pension and Other Postemployment Benefits | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (3.3) | (4.5) |
Current period deferrals | 0 | 0 |
Amounts reclassified to net income (loss) | 0 | 0 |
Net change | 0 | 0 |
Ending balance | (3.3) | (4.5) |
Derivatives | Foreign Currency Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | 1.7 | (4.9) |
Current period deferrals | (1.5) | 3.5 |
Amounts reclassified to net income (loss) | (1.3) | 0.1 |
Net change | (2.8) | 3.6 |
Ending balance | (1.2) | (1.3) |
Derivatives | Interest Rate Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (19.5) | (53.9) |
Current period deferrals | 16.8 | 3.3 |
Amounts reclassified to net income (loss) | 4.6 | 9.1 |
Net change | 21.4 | 12.4 |
Ending balance | 1.9 | (41.5) |
Unrealized Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (22.6) | (5.1) |
Current period deferrals | (6.6) | (8.8) |
Amounts reclassified to net income (loss) | 0 | 0 |
Net change | (6.6) | (8.8) |
Ending balance | (29.2) | (13.9) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (43.7) | (68.4) |
Current period deferrals | 8.7 | (2) |
Amounts reclassified to net income (loss) | 3.3 | 9.2 |
Net change | 12 | 7.2 |
Ending balance | $ (31.7) | $ (61.2) |
Other (Income) Expense, Net - A
Other (Income) Expense, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Other Income and Expenses [Abstract] | ||
Other income (expense), net | $ 3.5 | $ (50) |
Gain (loss) on early extinguishment of debt | 0 | (50.3) |
Foreign currency gain (loss), net | 1.7 | 0.9 |
Unrealized foreign currency gain (loss), net | (22) | |
Realized foreign currency gain (loss), net | $ 22.9 | |
Fair value gains interest rate caps | $ 1.9 |