Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 04, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 4, 2021 | |
Document Fiscal Year Focus | 2021 | |
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, $0.00001 par value per ordinary share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | X0 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 234,915,016 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Income Statement [Abstract] | ||
Net revenue | $ 506.8 | $ 407.9 |
Cost of revenue, excluding amortization of intangible assets | 248.2 | 213.2 |
Gross profit | 258.6 | 194.7 |
Selling, marketing and administrative expenses | 131.5 | 117.4 |
Research and development expense | 28.9 | 23.6 |
Amortization of intangible assets | 33.4 | 33 |
Other operating expense, net | 7.4 | 8.8 |
Income from operations | 57.4 | 11.9 |
Interest expense, net | 43.4 | 52.2 |
Tax indemnification income, net | (0.2) | (2.5) |
Other expense, net | 50 | 59.3 |
Loss before provision for income taxes | (35.8) | (97.1) |
Provision for income taxes | 3.3 | 4.1 |
Net loss | $ (39.1) | $ (101.2) |
Basic and diluted net loss per ordinary share | $ (0.19) | $ (0.69) |
Basic and diluted weighted-average ordinary shares outstanding | 206.2 | 146.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Net loss | $ (39.1) | $ (101.2) |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | (8.8) | (10.8) |
Other comprehensive income (loss), before tax | 7.2 | (49.8) |
Income tax provision related to items of other comprehensive loss | 0 | 0 |
Other comprehensive income (loss), net of tax | 7.2 | (49.8) |
Comprehensive loss | (31.9) | (151) |
Foreign Currency Derivatives | ||
Other comprehensive income (loss), before tax: | ||
Derivatives | 3.6 | 4.9 |
Interest Rate Derivatives | ||
Other comprehensive income (loss), before tax: | ||
Derivatives | $ 12.4 | $ (43.9) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 153.8 | $ 132.8 |
Accounts receivable (net of allowance for doubtful accounts of $9.6 and $9.8, respectively) | 324.1 | 318.7 |
Inventories | 291.1 | 278.7 |
Other current assets | 150.8 | 127 |
Total current assets | 919.8 | 857.2 |
Property, plant and equipment, net | 805.6 | 832 |
Goodwill | 576.1 | 580.1 |
Intangible assets, net | 983.4 | 1,016.7 |
Deferred income taxes | 7.8 | 8 |
Other assets | 99.8 | 107.5 |
Total assets | 3,392.5 | 3,401.5 |
Current liabilities: | ||
Accounts payable | 130.3 | 146.2 |
Accrued liabilities | 260.9 | 284.7 |
Deferred revenue | 34.3 | 35.5 |
Current portion of borrowings | 139.4 | 160 |
Total current liabilities | 564.9 | 626.4 |
Long-term borrowings | 2,240.3 | 3,558.5 |
Employee-related obligations | 38.9 | 39.3 |
Other liabilities | 103.8 | 120.8 |
Deferred income taxes | 68 | 67.3 |
Total liabilities | 3,015.9 | 4,412.3 |
Commitments and contingencies (Note 14) | ||
Stockholders’ Equity (Deficit): | ||
Preferred redeemable shares, $1.39 nominal value per share, 50,000 shares issued and outstanding as of April 4, 2021 | 0.1 | 0 |
Ordinary shares, $0.00001 par, 1,000,000,000 shares authorized, 234,843,052 and 147,295,511 shares issued and outstanding as of April 4, 2021 and January 3, 2021, respectively | 0 | 0 |
Additional paid-in capital | 2,394.3 | 975.1 |
Accumulated deficit | (1,956.6) | (1,917.5) |
Accumulated other comprehensive loss | (61.2) | (68.4) |
Total stockholders’ equity (deficit) | 376.6 | (1,010.8) |
Total liabilities and stockholders’ equity (deficit) | $ 3,392.5 | $ 3,401.5 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9.6 | $ 9.8 |
Preferred stock, nominal value per share | $ 1.39 | |
Preferred stock, shares issued | 50,000 | |
Preferred stock, shares outstanding | 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 | 234,843,052 | 147,295,511 |
Ordinary shares, shares outstanding | 234,843,052 | 147,295,511 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Millions | Total | Foreign Currency Derivatives | Interest Rate Derivatives | Ordinary Shares | Preferred Redeemable 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 Dec. 29, 2019 | $ (812.8) | $ 0 | $ 0 | $ 964.7 | $ (1,705.6) | $ (71.9) | ||||
Beginning balance, shares at Dec. 29, 2019 | 146,437,546 | 0 | ||||||||
Net loss | (101.2) | (101.2) | ||||||||
Exercise of stock options | 0.2 | 0.2 | ||||||||
Exercise of stock options, shares | 89,223 | |||||||||
Recognition of stock-based compensation | 1.6 | 1.6 | ||||||||
Derivatives, net of tax of $0.0 | $ 4.9 | $ (43.9) | $ 4.9 | $ (43.9) | ||||||
Foreign currency translation adjustments | (10.8) | (10.8) | ||||||||
Ending balance at Mar. 29, 2020 | (962) | $ 0 | $ 0 | 966.5 | (1,806.8) | (121.7) | ||||
Ending balance, shares at Mar. 29, 2020 | 146,526,769 | 0 | ||||||||
Beginning balance at Jan. 03, 2021 | (1,010.8) | $ 0 | $ 0 | 975.1 | (1,917.5) | (68.4) | ||||
Beginning balance, shares at Jan. 03, 2021 | 147,295,511 | 0 | ||||||||
Net 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 | 1 | 50,000 | ||||||||
Exercise of stock options | 1 | 1 | ||||||||
Exercise of stock options, shares | 147,540 | |||||||||
Recognition of stock-based compensation | 3.5 | 3.5 | ||||||||
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 | $ 0.1 | $ 2,394.3 | $ (1,956.6) | $ (61.2) | ||||
Ending balance, shares at Apr. 04, 2021 | 234,843,052 | 50,000 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Foreign Currency Derivatives | ||
Derivatives, tax | $ 0 | $ 0 |
Interest Rate Derivatives | ||
Derivatives, tax | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Cash Flows from Operating activities: | ||
Net loss | $ (39.1) | $ (101.2) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 82.7 | 79.8 |
Unrealized foreign exchange losses, net | 22 | 49.9 |
Loss on extinguishment of debt | 50.3 | 10 |
Amortization of deferred financing costs and original issue discount | 2.4 | 2.7 |
Stock-based compensation | 3.5 | 1.6 |
Deferred tax provision | 1 | 0.2 |
Provision for doubtful accounts | 0.3 | 0.3 |
Other non-cash, net | (15.9) | 4.5 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10.3) | 21.6 |
Inventories | (41.7) | (40.9) |
Other current and non-current assets | (15) | (3.1) |
Accounts payable and accrued liabilities | (56.5) | (35.7) |
Deferred revenue | (1) | (7) |
Other current and non-current liabilities | 7.4 | (0.2) |
Cash used in operating activities | (9.9) | (17.5) |
Cash Flows from Investing activities: | ||
Purchase of property, plant and equipment | (13.4) | (18.1) |
Proceeds from cross currency swaps and others, net | 2.7 | (0.2) |
Cash used in investing activities | (10.7) | (18.3) |
Cash Flows from Financing activities: | ||
Proceeds from initial public offering | 1,426.4 | 0 |
Payments on long-term borrowings | (1,375.9) | (1,015.5) |
Proceeds from (payments on) short-term borrowings, net | (5.4) | 299.3 |
Payment of initial public offering costs | (5) | 0 |
Proceeds from other long-term borrowings | 0 | 1,032.2 |
Proceeds from exercise of stock options | 1 | 0.2 |
Cash provided by financing activities | 41.1 | 316.2 |
Effect of exchange rate changes on cash | (0.2) | (2.5) |
Increase in cash, cash equivalents and restricted cash | 20.3 | 277.9 |
Cash, cash equivalents and restricted cash at beginning of period | 144.2 | 84 |
Cash, cash equivalents and restricted cash at end of period | 164.5 | 361.9 |
Reconciliation to amounts within the consolidated balance sheets: | ||
Cash and cash equivalents | 153.8 | 349.8 |
Restricted cash included in Other assets | 10.7 | 12.1 |
Cash, cash equivalents and restricted cash at end of period | $ 164.5 | $ 361.9 |
General and Description of the
General and Description of the Business | 3 Months Ended |
Apr. 04, 2021 | |
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 (“UK Holdco” “we,” “our” or the “Company”), and formerly known as Ortho-Clinical Diagnostics Bermuda Co. Ltd. (“Bermuda Holdco”), is a public limited company incorporated under the laws of England and Wales. UK Holdco became the new holding company of Bermuda Holdco and its subsidiaries and upon incorporation, it had an initial share capital of one ordinary share and 50,000 preferred redeemable shares (“Incorporation Shares”). On January 25, 2021, The Carlyle Group L.P. (“Carlyle”), and all other shareholders of Bermuda Holdco contributed all of their outstanding equity interests in Bermuda Holdco to UK Holdco in exchange for ordinary shares of UK Holdco on a 1-for-1 basis (the “Reorganization Transactions”). UK Holdco is a holding company with no business operations or assets other than cash, intercompany receivables, miscellaneous administrative costs and guarantees of certain obligations of Ortho-Clinical Diagnostics, Inc. (“Ortho U.S.”) and 100% of its ownership interest of Ortho-Clinical Diagnostics Holdings Luxembourg S.à r.l., which itself is a holding company with no operations or assets other than cash, intercompany receivables, miscellaneous administrative costs and its ownership of 100% of the capital stock of Ortho-Clinical Diagnostics S.A. (“LuxCo”). LuxCo, together with its indirect wholly owned subsidiary, Ortho U.S., are co-borrowers under the Senior Secured Credit Facilities and co-issuers of the Notes (each as defined in Note 7). The Company’s global operations are conducted by indirect wholly owned subsidiaries. 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 and the United Kingdom and with sales centers, administrative offices and warehouses located throughout the world. Both the Company’s domestic and international operations have been and continue to be affected by the ongoing global pandemic of a novel strain of coronavirus (“COVID-19”) and the resulting volatility and uncertainty it has caused in the U.S. and international markets. The Company has a direct commercial presence in more than 30 countries, including many of the regions most impacted by the COVID-19 pandemic. The Company has experienced a recovery in the base business since the lower shipments to customers experienced primarily in the fiscal second and fiscal third quarters of the fiscal year ended January 3, 2021; however through the fiscal first quarter ended April 4, 2021 the Company continues to experience higher distribution costs due to higher shipping rates as a result of the pandemic, which have been partially offset by lower travel-related expenses for our employees due to global travel restrictions. During the fiscal first quarter ended April 4, 2021, the Company completed its initial public offering (“IPO”) of ordinary shares at a price of $17.00 per share. The Company issued and sold 87,400,000 ordinary shares in the IPO, including 11,400,000 ordinary shares issued pursuant to the full exercise of the underwriters option to purchase additional shares. The ordinary shares sold in the IPO were registered under the Securities Act pursuant to a Registration Statement on Form S-1, which was declared effective by the SEC on January 29, 2021. The offering generated net proceeds of $1,426.4 million after deducting underwriting discounts and commissions. The Company used a portion of the net proceeds from the IPO (i) to redeem $160.0 million of its 2025 Notes (as defined in Note 7), plus accrued interest thereon and $11.8 million of redemption premium, (ii) to redeem $270.0 million of its 2028 Notes, plus accrued interest thereon and $19.6 million of redemption premium, (iii) to repay $892.7 million in aggregate principal amount of borrowings under its Dollar Term Loan Facility (as defined in Note 7) and (iv) for working capital and general corporate purposes. The accompanying 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 consolidated financial statements, the Company has total cash and cash equivalents of $153.8 million and an accumulated deficit of $1,956.6 million as of April 4, 2021. The Company reported a net loss of $39.1 million and used $9.9 million of cash from operations during the fiscal first quarter ended April 4, 2021. 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 (as defined in Note 7) has a financial covenant (First Lien Net Leverage Ratio (as defined in the credit agreement) not to exceed 6 -to-1, subject to two 50 basis point step-downs on June 30, 2021 and September 30, 2022) that is tested when borrowings and letters of credit issued under the Revolving Credit Facility exceed 30 % of the committed amount at any period end reporting date. As of April 4, 2021 , the Company had no outstanding borrowings under its Revolving Credit Facility and letters of credit issued under the Revolving Credit Facility totaled $ 37.0 million . The Company believes that it has complied and will continue to comply with the financial covenant for the next 12 months. 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 R evolving Credit F acility. If the lenders on the R evolving Credit F acility 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 interim consolidated financial statements. Based on this evaluation, management believes that the Company’s financial position, net cash provided by operations combined with cash and cash equivalents, and borrowing availability under its Revolving Credit Facility, will be sufficient to fund its current obligations, capital spending, debt service requirements and working capital requirements over at least the next 12 months from the issuance of these interim 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. |
Basis of Presentation of the Co
Basis of Presentation of the Consolidated Financial Statements | 3 Months Ended |
Apr. 04, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation of the Consolidated Financial Statements | (2) Basis of presentation of the consolidated financial statements The interim unaudited consolidated financial statements for the Company include the accounts of UK Holdco and its subsidiaries. All intercompany accounts and transactions have been eliminated. These consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and are consistent with Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Results for interim periods should not be considered indicative of results for a full year or any subsequent period. The interim unaudited consolidated financial statements do not represent complete financial statements and should be read in conjunction with the Company’s consolidated financial statements for the fiscal year ended January 3, 2021. 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. Columns and rows within tables may not add up due to rounding. Percentages have been calculated using actual, non-rounded figures. Stock Split On January 18, 2021, the Company approved an issuance of 54,860,691 shares (an additional 0.5934 share for each existing share), which effected a 1.5934-for-1 stock split of its ordinary shares. All references to share and per share amounts in the Company’s consolidated financial statements have been retrospectively revised to reflect the stock split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 04, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (3) Summary of significant accounting policies There have been no material changes to the significant accounting policies previously disclosed in the Company’s consolidated financial statements and in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operation” of the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021. Recently adopted pronouncements Income taxes (Topic 740), simplifying the accounting for income taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting guidance related to intra period tax allocations, interim period accounting for enacted changes in tax law, and the year-to-date loss limitation in interim period tax accounting. The Company adopted this guidance on January 4, 2021 and the adoption did not have a material impact on the Company’s consolidated financial statements. Reference rate reform (Topic 848) In January 2021, the FASB issued ASU 2021-01, Reference rate reform (Topic 848), which clarifies that certain optional expedients and exceptions in Topic 848 apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The guidance in ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. The optional amendments can be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The Company has determined that the optional amendments are not applicable to the derivative instruments held as of the end of the fiscal quarter ended April 4, 2021. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Apr. 04, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | (4) Net loss per share Basic net loss per share attributable to the Company’s ordinary shareholders is based upon the weighted-average number of ordinary shares outstanding during the period, excluding restricted stock that have been issued but are not yet vested. Diluted net loss per share attributable to the Company’s ordinary shareholders is based upon the weighted-average number of ordinary shares outstanding during the period plus additional weighted-average ordinary share equivalents outstanding during the period when the effect is dilutive. Ordinary share equivalents result from the assumed exercise of outstanding stock options (the proceeds of which are then assumed to have been used to repurchase outstanding stock using the treasury stock method) and the vesting of unvested restricted shares of ordinary shares. Ordinary share equivalents have not been included in the net loss per ordinary share calculation because the effect would have been anti-dilutive. Total potential gross ordinary share equivalents consisted of the following: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Stock options 15,895,457 15,534,797 Unvested restricted shares and restricted stock units 1,009,568 341,566 16,905,025 15,876,363 |
Revenue
Revenue | 3 Months Ended |
Apr. 04, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | ( 5 ) Revenue Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; this occurs with the transfer of control of the Company’s goods or services. The Company considers revenue to be earned when all of the following criteria are met: (i) the Company has a contract with a customer that creates enforceable rights and obligations; (ii) promised products or services are identified; (iii) the transaction price, or consideration the Company expects to receive for transferring the goods or providing services, is determinable; and (iv) the Company has transferred control of the promised items to the customer. A promise in a contract to transfer a distinct good or service to the customer is identified as a performance obligation. A contract’s transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company generates revenue primarily from the sale of IVD instruments, assays, reagents and other consumables, accessories and service contracts. The Company generally recognizes revenue when the customer obtains control of the products, which occurs at a point in time. For instruments, the Company generally recognizes revenue upon installation and customer acceptance. The Company has determined that the installation services do not constitute a separate performance obligation. For assays, reagents and other consumables, the Company recognizes revenue upon shipment or delivery based on the contractual shipping terms of a contract. Service revenue is generally recognized over time using a time-based model, which is consistent with the pattern in which we provide the services. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. The Company may also enter into transactions that involve multiple performance obligations, such as the sale of products and related services. In accounting for these transactions, the Company allocates the consideration to the deliverables by use of the relative standalone selling price method. A portion of the Company’s product revenue includes revenue earned under reagent rental programs which provide customers the right to use instruments at no separate cost to the customer in consideration for a multi-year agreement to purchase reagents, assays and consumables. The Company allocates a portion of the revenue from the future consumable sale to the instrument based on the customers’ minimum volume commitment and recognizes revenue at the time of the future sale of reagents, assays and consumables. The cost of the instrument is capitalized within property and equipment, and is charged to cost of revenue on a straight-line basis over the term of the minimum purchase agreement. Revenue earned from operating leases is recognized over the lease term, normally five to seven years. Revenue earned under sales-type leases is recognized at the beginning of the lease, as well as a lease receivable and unearned interest associated with the lease. Revenue is recognized when control has transferred for the reagents, assays and consumables. Costs related to product sales are recognized at time of delivery. The Company recognizes product revenues at the net sales price, which includes estimates of variable consideration related to rebates and volume discounts. Rights of return are generally not included in the Company’s arrangements with customers. Management’s estimates of rebates and discounts are determined using the expected value method and take into consideration historical experience, contractual and statutory requirements, and other relevant information such as forecasted activity. These reserves reflect the Company’s best estimate of the amount of consideration to which it is entitled. The amount of variable consideration included in the net sales price is limited to the amount that is probable not to result in a significant future reversal of cumulative revenue under the contract. 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 consolidated balance sheet and are transferred to accounts receivable when the right to payment becomes unconditional. The balance of contract assets recorded in our consolidated balance sheets were as follows: April 4, 2021 January 3, 2021 Other current assets $ 49.3 40.4 Other assets - 2.4 Total contract assets $ 49.3 $ 42.8 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 $11.8 million and $15.1 million as of April 4, 2021 and January 3, 2021, respectively, of which $2.4 million was recorded in Other assets as of January 3, 2021. • 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 $35.9 million and $24.3 million as of April 4, 2021 and January 3, 2021, respectively. • One of the Company’s contract manufacturing agreements where revenue is recognized as the products are manufactured. The balance of the contract asset related to this arrangement was $1.6 million and $3.4 million as of April 4, 2021 and January 3, 2021, 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 4, 2021 and March 29, 2020, respectively. 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 $34.3 million and $35.5 million as of April 4, 2021 and January 3, 2021, respectively. The Company has one arrangement with a customer that is expected to be recognized beyond one year. The balance of the deferred revenue included in long-term liabilities was $6.3 million and $6.6 million as of April 4, 2021 and January 3, 2021, respectively, and was included in Other liabilities in the consolidated balance sheets. The amount of deferred revenue as of January 3, 2021 that was recorded in revenue during the fiscal quarter ended April 4, 2021 was $17.9 million. Disaggregation of revenue The Company generates product revenue in the following lines of business: • Clinical Laboratories—Focused on clinical chemistry and immunoassay instruments and tests 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 United States. • 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 third quarter ended September 27, 2020, the Company entered into two agreements with the Biomedical Advanced Research and Development Authority (BARDA), a division of the U.S. Department of Health and Human Services (HHS), 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 (“FDA”) for our COVID-19 antigen and antibody tests. During the fiscal quarter ended April 4, 2021, the Company recognized $4.0 million of grant 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 4, 2021 and March 29, 2020: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Clinical Laboratories $ 334.0 $ 256.4 Transfusion Medicine 161.4 147.9 Other Product Revenue 4.3 - Total Product Revenue 499.7 404.3 Collaborations and Other Revenue 7.1 3.6 Net Revenue $ 506.8 $ 407.9 |
Inventories
Inventories | 3 Months Ended |
Apr. 04, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | ( 6 ) Inventories The Company’s inventories were as follows: April 4, 2021 January 3, 2021 Raw materials and supplies $ 78.7 $ 77.2 Goods in process 37.9 35.2 Finished goods 174.5 166.3 Total Inventories $ 291.1 $ 278.7 |
Borrowings
Borrowings | 3 Months Ended |
Apr. 04, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | ( 7 ) Borrowings As of April 4, 2021 and January 3, 2021, the components of borrowings were as follows: April 4, 2021 January 3, 2021 Senior Secured Credit Facilities Dollar Term Loan Facility $ 1,292.8 $ 2,185.5 Euro Term Loan Facility 392.9 408.9 Revolving Credit Facility — — 2028 Notes 405.0 675.0 2025 Notes 240.0 400.0 Accounts Receivable Financing 72.2 75.0 Sale and Leaseback Financing — 20.5 Capital lease obligation 0.9 1.0 Other short-term borrowings 3.7 0.9 Other long-term borrowings 3.6 3.9 Unamortized deferred financing costs (25.1 ) (40.9 ) Unamortized original issue discount (6.3 ) (11.3 ) Total borrowings 2,379.7 3,718.5 Less: Current portion (139.4 ) (160.0 ) Long-term borrowings $ 2,240.3 $ 3,558.5 Senior secured credit facilities In February 2021, the Company used a portion of the proceeds from its IPO to repay $892.7 million of borrowings under the Dollar Term Loan Facility and recognized a loss on early extinguishment of debt of $11.4 million due to the repayment, which is recorded as a component of Other expense, net. On February 5, 2021, the Company entered into a fifth amendment of its credit agreement (as amended, the “Credit Agreement”) governing its senior secured credit facilities, which consist of (i) the Dollar Term Loan Facility, (ii) the euro-denominated senior secured term loan facility in an amount equal to €337.4 million (the “Euro Term Loan Facility” and, together with the Dollar Term Loan Facility, the “Term Loan Facilities”), and (iii) the multi-currency senior secured revolving facility with commitments of $500.0 million (the “Revolving Credit Facility”) (collectively, the “Senior Secured Credit Facilities”), which increased the Revolving Credit Facility contained in the credit agreement by $150 million to an aggregate amount of $500 million and extended the maturity date to February 5, 2026, provided that such date may be accelerated subject to certain circumstances as set forth in the fifth amendment. To the extent that the aggregate principal amount of the Dollar Term Loan Facility and Euro Term Loan Facility (and any Refinancing Indebtedness (as defined in the Credit Agreement) with respect thereto that matures on or prior to June 30, 2025) outstanding as of March 31, 2025 exceeds $500 million then the maturity date with respect to the Revolving Credit Facility shall be March 31, 2025. All other terms of the Senior Secured Credit Facilities will remain substantially the same except as otherwise amended by the fifth amendment. As of April 4, 2021 and January 3, 2021, the remaining balance of deferred financing costs related to the Dollar Term Loan Facility was $9.7 million and $17.3 million, respectively. As of April 4, 2021 and January 3, 2021, the remaining balance of deferred financing costs related to the Euro Term Loan Facility was $4.3 million and $4.6 million, respectively. As of April 4, 2021 and January 3, 2021, the remaining unamortized balance related to the Revolving Credit Facility was $4.0 million and $3.4 million, respectively. The effective interest rate of the Dollar Term Loan Facility and Euro Term Loan Facility as of April 4, 2021 is 5.76% and 3.88%, respectively. As of April 4, 2021, there was no outstanding balance under the Revolving Credit Facility and letters of credit issued under the Revolving Credit Facility totaled $37.0 million, which reduced the availability under the Revolving Credit Facility to $463.0 million. The Senior Secured Credit Facilities are subject to various covenants that may restrict the Company’s ability to borrow on available credit facilities and future financing arrangements or require the Company to remain below a specific credit coverage threshold as indicated in our debt agreements. The Senior Secured Credit Facilities include a financial covenant that is tested when borrowings and letters of credit issued under the Revolving Credit Facility exceed 30% of the committed amount at any period end reporting date and provides that LuxCo will not permit the First Lien Net Leverage Ratio as of the end of such fiscal quarter of the LuxCo and its Restricted Subsidiaries to be greater than (i) 6.00:1.00 for each fiscal quarter ending on or prior to June 30, 2021, (ii) 5.50:1.00 for each fiscal quarter ending after June 30, 2021 and on or prior to September 30, 2022 and (iii) 5.00:1:00 for each fiscal quarter ending thereafter. The Company was in compliance with the covenants as of April 4, 2021. 2025 Notes On June 11, 2020, the LuxCo and Ortho U.S. (collectively, the “Issuers”), issued $400 million aggregate principal amount of 7.375% Senior Notes due 2025 (the “2025 Notes’), on which interest is payable semi-annually in arrears on June 1 and December 1 of each year. The 2025 Notes will mature on June 1, 2025. The 2025 Notes and guarantees thereof are senior unsecured obligations and rank equally in right of payment with all of the Issuers’ and guarantors’ existing and future senior debt, including the 2028 Notes (as defined below). The 2025 Notes and the guarantees thereof are effectively subordinated to any of the Issuers’ and guarantors’ existing and future secured debt, including the Senior Secured Credit Facilities and the Financing Program (as defined below), to the extent of the value of the assets securing such debt. In addition, the 2025 Notes and the guarantees thereof rank senior in right of payment to all of the Issuers’ and guarantors’ future subordinated debt and will be structurally subordinated to the liabilities of the Issuers’ non-guarantor subsidiaries. The Company incurred deferred financing costs of $7.5 million related to the 2025 Notes, which were capitalized as deferred financing costs and are being amortized using the effective interest method as a component of interest expense over the life of the 2025 Notes. 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 % Notwithstanding the foregoing, at any time and from time to time prior to June 1, 2022, the Issuers may at their option redeem in the aggregate up to 100% of the original aggregate principal amount of the 2025 Notes plus accrued and unpaid interest, if any to, but not including, the date of redemption, plus a “make-whole premium.” The Issuers may also, at their option, redeem up to 40% of the principal amount of the 2025 Notes with the net cash proceeds of certain equity offerings at a redemption price of 107.375% of the principal amount of the 2025 Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. On February 5, 2021, the Company used a portion of the proceeds from its IPO to redeem $160 million aggregate principal amount of the 2025 Notes, plus accrued interest thereon and $11.8 million of redemption premium, which is recorded as a component of Other expense, net. The redemption resulted in an extinguishment loss recognized of $14.5 million, which consisted of $2.7 million of unamortized deferred issuance costs and $11.8 million of the redemption premium, respectively. As of April 4, 2021 and January 3, 2021, the remaining unamortized balance of deferred issuance costs was $4.0 million and $7.0 million, respectively. The effective interest rate on the 2025 Notes is 8.03%. 2028 Notes On January 27, 2020, the Issuers, issued $675 million aggregate principal amount of 7.250% Senior Notes due 2028 (the “2028 Notes” and together with the 2025 Notes, the “Notes”), on which interest is payable semi-annually in arrears on February 1 and August 1 of each year. The 2028 Notes will mature on February 1, 2028. The 2028 Notes and the guarantees thereof are senior unsecured obligations and rank equally in right of payment with all of the Issuers’ and guarantors’ existing and future senior debt, including the 2025 Notes. The 2028 Notes and the guarantees thereof are effectively subordinated to any of the Issuers’ and guarantors’ existing and future secured debt, including the Senior Secured Credit Facilities and the Financing Program, to the extent of the value of the assets securing such debt. In addition, the 2028 Notes and the guarantees thereof rank senior in right of payment to all of the Issuers’ and guarantors’ future subordinated debt and will be structurally subordinated to the liabilities of the Issuers’ non-guarantor subsidiaries. The Company incurred deferred financing costs of $12.9 million related to the 2028 Notes, which were capitalized as deferred financing costs and are being amortized using the effective interest method as a component of interest expense over the life of the 2028 Notes. 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 % Notwithstanding the foregoing, at any time and from time to time prior to February 1, 2023, the Issuers may at their option redeem in the aggregate up to 100% of the original aggregate principal amount of the 2028 Notes plus accrued and unpaid interest, if any to, but not including, the date of redemption, plus a “make-whole premium.” The Issuers may also, at their option, redeem up to 40% of the principal amount of the 2028 Notes with the net cash proceeds of certain equity offerings at a redemption price of 107.25% of the principal amount of the 2028 Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. On February 5, 2021, the Company used a portion of the proceeds from its IPO to redeem $270 million aggregate principal amount of the 2028 Notes, plus accrued interest thereon and $19.6 million of redemption premium. The redemption resulted in an extinguishment loss recognized of $24.3 million, which consisted of $4.7 million of unamortized deferred issuance costs and $19.6 million of the redemption premium, respectively which is recorded as a component of Other expense, net. As of April 4, 2021 and January 3, 2021, the remaining unamortized balance of deferred issuance costs was $7.0 million and $11.8 million, respectively. The effective interest rate on the 2028 Notes is 7.76%. Concurrent with the issuance of the $675 million aggregate principal amount of 2028 Notes, the Company entered into U.S. Dollar to Japanese Yen cross currency swaps for a total notional amount of $350 million at a weighted average interest rate of 5.56%, with a five-year 2022 Notes On January 28, 2020, the Company used the net proceeds from the issuance of the Euro Term Loan Facility and 2028 Notes, after payment of fees and expenses, to fund the redemption and discharge of $1.0 billion of the $1.3 billion in aggregate principal amount of 6.625% Senior Notes due 2022 ( the “2022 Notes”). On June 12, 2020 the Company used the net proceeds from the issuance of the 2025 Notes, after payments of fees and expenses, to fund the redemption and discharge of the remaining $300 million of the 2022 Notes. The redemption of the 2022 Notes was accounted for as an extinguishment of debt. During the fiscal first quarter ended March 29, 2020, the Company recorded a $10.0 million loss on extinguishment of debt, primarily related to the unamortized deferred financings costs on the redeemed 2022 Notes, included as a component of Other expense, net. Sale and leaseback financing In June 2016, the Company entered into a sale-leaseback financing arrangement with a third-party financing company (the “Buyer-lessor”) related to specific property and equipment of the Company. The property and equipment were sold for $36.3 million and leased back over an initial term of two years. The monthly lease payments are $1.5 million until the equipment is repurchased or the lease is terminated. At the end of the initial term, the Company can repurchase the property and equipment at a price to be negotiated with the Buyer-lessor or terminate the lease arrangement, return the property and (possibly) enter into a new lease agreement. During the fiscal second quarter ended July 1, 2018, the Company gave notice to the Buyer-lessor that it intends to negotiate with the Buyer-lessor the purchase of the property and equipment at the end of the initial term and have had discussions on negotiating the repurchase price for the property and equipment. Pursuant to the sale-leaseback financing agreement, if the parties do not reach a new lease agreement to purchase the property and equipment at the end of the initial term, the lease will automatically renew for another year, and afterwards, the lease will automatically be renewed for successive six month periods, provided that each of the Company and the Buyer-lessor have a right to terminate the lease agreement 30 days prior to the end of each six month renewal period. A security deposit for the leaseback was retained by the third-party financing company and will be refunded to the Company at the end of the lease term. The balance of the security deposit was $9.1 million as of January 3, 2021, and was included in other current assets in the consolidated balance sheet. The transaction did not meet the criteria for sale-leaseback accounting as the security deposit constitutes a continuing involvement. Therefore, the Company accounted for this arrangement as a financing over 42 months and recorded a financing obligation amounting to $36.3 million at inception. On February 9, 2021, the Company and the Buyer-lessor agreed on a re-purchase price for the property and equipment, which included the outstanding balance of the financing plus accrued interest. During the fiscal first quarter ended April 4, 2021, the Company paid the full amount of the negotiated price. Accounts receivable financing In September 2016, the Company entered into an accounts receivable financing program (the “Financing Program”) with a financial institution. The Financing Program matures on January 24, 2022 and is secured by receivables from the Company’s U.S. business that are sold or contributed to a wholly-owned, consolidated, bankruptcy remote subsidiary. The bankruptcy remote subsidiary’s sole business consists of the purchase or receipt of the receivables and subsequent granting of a security interest to the financial institution under the program, and its assets are available first to satisfy obligations and are not available to pay creditors of the Company’s other legal entities. Under the Financing Program, the Company may borrow up to the lower of $75 million or 85% of the accounts receivable borrowing base. As of April 4, 2021, the outstanding amount under the Financing Program is $72.2 million based on a borrowing base of $84.9 million. Interest on outstanding borrowing under the Financing Program is charged based on a per annum rate equal to the London Inter-bank Offered Rate (the “LIBOR Rate”) (with a floor of zero percent and as defined in the agreement) plus the LIBOR Rate margin (2.25 percentage points) if the related loan is a LIBOR Rate loan. Otherwise, the per annum rate is equal to a Base Rate (as defined in the Financing Program agreement) plus the base rate margin (1.25 percentage points). Interest is due and payable, in arrears, on the first day of each month. The Financing Program is also subject to termination under standard events of default as defined. In addition to customary representations, warranties and affirmative and negative covenants, the program is subject to interest coverage and minimum liquidity covenants. As of April 4, 2021, the Company was in full compliance with all debt covenant requirements. The following table provides the detail of interest expense, net for the fiscal first quarter ended April 4, 2021 and March 29, 2020: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Interest expense: Dollar Term Loan Facility $ 14.1 $ 27.9 Euro Term Loan Facility 3.6 2.3 Revolving Credit Facility — 1.0 2028 Notes 9.1 8.6 2025 Notes 5.5 — 2022 Notes — 10.1 Accounts Receivable Financing 0.9 1.6 Amortization of: Deferred financing costs 1.7 2.2 Original issue discount 0.3 0.6 Derivative instruments and other 8.2 (2.1 ) Interest expense, net $ 43.4 $ 52.2 Future repayments Below is a schedule of required future repayments of all borrowings outstanding on April 4, 2021: Remainder of 2021 $ 123.7 2022 63.2 2023 62.8 2024 62.5 2025 1,453.9 Thereafter 645.0 $ 2,411.1 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Apr. 04, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | ( 8 ) Accrued liabilities Accrued liabilities included in current liabilities consist of the following: April 4, 2021 January 3, 2021 Accrued compensation and employee-related obligations $ 82.3 $ 110.5 Derivatives 39.2 10.3 Accrued commissions and rebates 24.3 24.9 Accrued interest 17.7 42.2 Accrued taxes other than income 16.2 14.3 Current portion of operating lease liabilities 13.9 15.1 Income taxes payable 3.9 4.1 Other accrued liabilities 63.4 63.3 Total Accrued Liabilities $ 260.9 $ 284.7 |
Collaborations and Other Relati
Collaborations and Other Relationships | 3 Months Ended |
Apr. 04, 2021 | |
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 Company’s portion of the pre-tax net profit shared under the Joint Business was $10.8 million during the fiscal quarter ended April 4, 2021. Quotient Limited In January 2015, the Company entered into an exclusive agreement with 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”). Pursuant to the Letter Agreement, the Company made an initial, non-refundable upfront payment of $7.5 million to Quotient on the date of the Letter Agreement, and recorded a corresponding $7.5 million charge to research and development expense for the fiscal year ended January 3, 2021. In addition to the initial $7.5 million upfront payment, the Company may be required to make up to an additional $60 million of payments upon achievement of certain regulatory milestones and commercial sales benchmarks, which include up to $25 million of payments upon the achievement by the Company of certain cumulative revenue milestones. The Company did not make such payments during the fiscal first quarter ended April 4, 2021 and does not anticipate making any such payments for the remainder of fiscal year 2021. In the Letter Agreement, the Company and Quotient have agreed that the Company will have the right to distribute exclusively in the United States, the European Economic Area, the United Kingdom and Switzerland a transfusion diagnostic patient immunohematology microarray (“PIM”), intended with Quotient’s MosaiQ Instruments, on which multiple compounds are placed which, when exposed to human blood samples, generate reactions that indicate the presence or absence of certain blood characteristics and antigens and is intended for testing the During the fiscal first quarter ended April 4, 2021, the Company purchased inventories from Quotient amounting to $5.5 million. The Company purchased inventories from Quotient amounting to $5.4 million during the fiscal first quarter ended March 29, 2020. During the fiscal first quarters ended April 4, 2021 and March 29, 2020, |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 04, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 10 ) Income taxes During the fiscal first 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 period differs from the U.S. federal statutory rate primarily due to (1) the impact of operating losses in certain subsidiaries not being benefitted due to the establishment of a valuation allowance and (2) non-U.S. earnings being taxed at rates that are different than the U.S. statutory rate. During the fiscal first quarter ended March 29, 2020, the Company incurred a loss before provision for income taxes of $97.1 million and recognized a provision for income taxes of $4.1 million resulting in a negative effective tax rate of 4.2%. The effective tax rate for the period differs from the U.S. federal statutory rate primarily due to (1) the impact of operating losses in certain subsidiaries not being benefitted due to the establishment of a valuation allowance (2) an increase in the Company’s interest expense on prior year reserves for uncertain tax positions and ( 3 ) 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 4, 2021, not including interest and penalties, was $27.9 million, of which $23.5 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 4, 2021, the Company had approximately $6.3 million of interest and penalties accrued related to unrecognized tax benefits. The Company estimates that within the next 12 months, its uncertain tax positions, excluding interest, will not significantly decrease. 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 $17.1 million as of April 4, 2021 and January 3, 2021. The Company recorded $0.2 million of interest and penalties during the fiscal quarter ended April 4, 2021. These receivables are included as a component of Other assets on the consolidated balance sheets. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Apr. 04, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | (1 1 ) 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 First Quarter Ended April 4, 2021 March 29, 2020 Americas $ 321.4 $ 250.5 EMEA 68.5 58.7 Greater China 55.0 46.3 Other 61.9 52.4 Net Revenue $ 506.8 $ 407.9 In the fiscal first quarter ended April 4, 2021, the Company changed the basis by which it measures segment profit or loss from Management EBITDA to Adjusted EBITDA. The new basis has been retroactively applied to the prior year period presented. Adjusted EBITDA by segment is as follows: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Americas $ 141.1 $ 108.1 EMEA 17.5 11.7 Greater China 25.2 18.8 Other 19.4 15.2 Corporate(1) (50.8 ) (51.7 ) Adjusted EBITDA $ 152.4 $ 102.0 (1) 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. Our c orporate function also includes debt and stock-based compensation associated with all e mployee s tock- b ased a wards. The reconciliation of Net Loss to Adjusted EBITDA is as follows: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Net loss $ (39.1 ) $ (101.2 ) Depreciation and amortization 82.7 79.8 Interest expense, net 43.4 52.2 Provision for income taxes 3.3 4.1 Loss on extinguishment of debt 50.3 10.0 Stock-based compensation 3.5 1.6 Restructuring and severance related costs 1.3 2.4 Tax indemnification income, net (0.2 ) (2.5 ) Unrealized foreign currency exchanges losses - 49.3 Other adjustments 7.2 6.3 Adjusted EBITDA 152.4 102.0 For the fiscal quarter ended March 29, 2020, Unrealized foreign currency exchange losses represent non-cash unrealized gains and losses resulting from the remeasurement of transactions denominated in foreign currencies primarily related to intercompany loans. In the fiscal first quarter ended April 4, 2021, the Company initiated programs to mitigate the impact of foreign currencies related to intercompany loans in its results, and such non-cash net unrealized losses were approximately $22 million for the fiscal quarter ended April 4, 2021. The Company expects these programs to continue to mitigate the impact of foreign currencies related to intercompany loans in its results in future periods, and thus the Company did not exclude non-cash unrealized gains and losses resulting from the remeasurement of transactions denominated in foreign currencies from Adjusted EBITDA during the first quarter ended April 4, 2021 and onwards. |
Noncash Investing Activities
Noncash Investing Activities | 3 Months Ended |
Apr. 04, 2021 | |
Noncash Investing And Financing Items [Abstract] | |
Noncash Investing Activities | (1 2 ) Noncash investing activities During the fiscal first quarter ended April 4, 2021 and March 29, 2020, the Company made noncash transfers of instrument inventories from “Inventories” to “Property, plant and equipment” of $25.6 million and $27.7 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. As of March 29, 2020 and December 29, 2019, accounts payable and accrued liabilities included amounts related to purchases of property, plant and equipment and capitalized internal-use software costs of $3.9 million and $14.1 million, respectively. The changes in these balances are excluded from changes in accounts payable and accrued liabilities in the statements of cashflows. As of April 4, 2021 and January 3, 2021, accounts payable and accrued liabilities included amounts related to initial public offering costs of $4.5 million and $3.0 million, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 04, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (1 3 ) 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. Pursuant to the consulting services agreement, which has an initial term of ten years, the Company pays an annual management fee, due on a quarterly basis, to CIM of $3.0 million (the “Management Fee”). 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 first quarters ended April 4, 2021 and March 29, 2020 the Company recorded $0.8 million of Management Fee and other out-of-pocket expenses. The Company, as part of the normal course of business, entered into agreements to sell products and provide services to health care diagnostics companies that are portfolio companies of a fund affiliated with Carlyle. During the fiscal first quarters ended April 4, 2021 and March 29, 2020 the Company recognized revenues pursuant to such agreements of $0.9 million and $0.7 million, respectively. The Company, as part of normal course of business, purchased inventories from health care companies that are affiliated with our officers. During the fiscal first quarter ended April 4, 2021 the Company purchased inventories of $0.6 million. During the fiscal first quarter ended March 29, 2020, inventory purchases made by the Company were not material. The Company, as part of the normal course of business, entered into an agreement to purchase inventories from a healthcare equipment company that is a portfolio company of a fund affiliated with Carlyle. During the fiscal first quarter ended April 4, 2021, the Company purchased inventories of $0.8 million. During the fiscal first quarter ended March 29, 2020, purchases made by the Company were not material. Portfolio companies of funds affiliated with Carlyle provide IT services to the Company. During the fiscal first quarter ended April 4, 2021, the Company incurred IT service fees of $0.3 million. During the fiscal first quarter ended March 29, 2020, the expenses incurred were not material. A portfolio company of a fund affiliated with Carlyle provides consulting services to the Company. During the fiscal first quarters ended April 4, 2021 and March 29, 2020, the Company incurred consulting fees of $0.7 million and $0.2 million, respectively. A pharmacy benefit management organization affiliated with a member of our Board of Directors provides pharmacy services to the Company. During the fiscal first quarters ended April 4, 2021 and March 29, 2020, the Company incurred fees related to pharmacy services of $1.6 million and $1.4 million, respectively. 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 purchases and sales are not expected to be material. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 04, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (1 4 ) 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 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. |
Fair Value Accounting
Fair Value Accounting | 3 Months Ended |
Apr. 04, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | (1 5 ) Fair value accounting Fair value of financial instruments Cash and cash equivalents —The carrying amount of cash equivalents approximates fair value because the original maturity is less than 90 days. Accounts receivable —The carrying amount of current accounts receivable approximates fair value because of their short outstanding terms. For payments expected from customers over periods longer than one year, receivables have been discounted to reflect the estimated period of time for collection and are presented as a component of Other assets in the consolidated balance sheets. Accounts payable —The carrying amount of accounts payable approximates fair value because of their short outstanding terms. Short-term borrowings —The carrying amount of short-term borrowings approximates fair value because of their short outstanding terms. Long-term borrowings — The estimated fair values of 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 Loan s , these inputs are considered to be Level 2 inputs. The following table presents the fair value of long-term borrowings: April 4, 2021 January 3, 2021 Long-term borrowings: Dollar Term Loan Facility $ 1,517.4 $ 2,627.7 Euro Term Loan Facility 391.8 401.1 2028 Notes 442.5 710.4 2025 Notes 258.0 424.0 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Apr. 04, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | (1 6 ) Derivative instruments and hedging activities The Company selectively uses derivative instruments to reduce market risk associated with changes in interest rates and foreign currency. The use of derivatives is intended for hedging purposes only and the Company does not enter into derivative instruments for speculative purposes. For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Interest rate hedging The Company entered into a series of interest rate cap agreements to hedge our interest rate exposures related to our variable rate borrowings under the Senior Secured Credit Facilities. The Company also entered into an interest rate swap agreement, which fixed a portion of the variable interest due on the Company’s variable rate debt. The following tables summarize interest rate derivative agreements as of April 4, 2021: Effective date Expiration date Interest rate cap amount Notional amount Hedge designation December 31, 2020 December 31, 2023 3.5% $ 1,500,000,000 Not designated Effective date Expiration date Description Fixed rate Floating rate Notional amount (a) Hedge designation September 27, 2019 December 31, 2023 Pay fixed, receive float 1.635% 1-month LIBOR rate $ 1,500,000,000 Cash Flow Hedge (a) The notional value of this instrument is expected to be $1,000 million in fiscal 2022 and $500 million in fiscal 2023. During the fiscal quarter ended September 29, 2019, the Company de-designated its 3.5% interest rate cap upon entering into the interest rate swap agreement that hedges a portion of the Company’s borrowings under the Senior Secured Credit Facilities. Accordingly, the Company recorded the activity related to the hedge through the date of the de-designation as a cash flow hedge, and subsequently recorded the activity related to the interest rate cap as mark to market, with the impact recorded to other income, net. The remaining loss of $9.3 million was included in OCI until the effective date of December 31, 2020. As of April 4, 2021, the remaining balance included in OCI was $8.5 million. During the fiscal quarter ended April 4, 2021, $0.8 million was amortized to interest expense and 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 proceeds of the IPO being used to pay down a portion of the borrowings. Accordingly, $0.6 million of losses that had previously been deferred within other comprehensive income were released into interest expense during the fiscal first quarter ended April 4, 2021. During the fiscal quarter ended April 4, 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 proceeds of the IPO being used to pay down a portion of the borrowings. 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 other comprehensive income were released into interest expense during the fiscal first quarter ended April 4, 2021. Foreign currency hedging 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. 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 million at a weighted average interest rate of 5.56%, with five-year The following table provides details of the foreign currency forward contracts outstanding as of April 4, 2021: Description (a) Notional amount Hedge designation Forward Foreign Currency Contracts $ 331.4 Cash Flow Hedge Forward Foreign Currency Contracts $ 1,566.1 Not designated (a) The Company’s forward currency foreign exchange 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, Swiss Franc and the Thai Baht. The foreign currency forward contracts that qualified and were designated as cash flow hedges are recorded at their fair value as of April 4, 2021 and the unrealized loss of $1.3 million is reported as a component of OCI, all of which is expected to be reclassified to earnings in the next 12 months. Actual gains (losses) upon settlement will be recognized in earnings, within the line item impacted, during the estimated time in which the transactions occur. Fair value gains and losses of foreign currency contracts and interest rate derivatives, as determined using Level 2 inputs, that are designated and qualify as cash flow hedges during the fiscal quarter ended April 4, 2021 and March 29, 2020 were recorded as follows: Derivatives in cash flow hedging relationships Amount of Loss (gain) recognized in OCI on derivatives Location of loss reclassified from accumulated OCI into income Amount of loss (gain) reclassified from accumulated OCI into income Fiscal first quarter ended April 4, 2021 Foreign currency forward contracts $ (3.5 ) Cost of revenue $ 0.1 Interest rate derivatives (3.3 ) Interest expense 9.1 Derivatives in cash flow hedging relationships Amount of loss (gain) recognized in OCI on derivatives Location of loss reclassified from accumulated OCI into income Amount of loss (gain) reclassified from accumulated OCI into income Fiscal first quarter ended March 29, 2020 Foreign currency forward contracts $ (5.4 ) Cost of revenue $ (0.5 ) Interest rate derivatives 38.1 Interest expense, net (2.2 ) The following table presents the effect of the Company’s derivative instruments on the statements of operations and comprehensive loss: Fiscal quarter ended April 4, 2021 Fiscal quarter ended March 29, 2020 Interest expense Cost of revenue Interest expense Cost of revenue Total amounts of financial statement line item presented in the statements of operations and comprehensive loss in which the effects of cash flow hedges are recorded $ 43.4 $ 248.2 $ 52.2 $ 213.2 The effects of cash flow hedging Loss (Gain) on cash flow hedging relationships: Foreign currency forward contracts Amount of Loss (Gain) Reclassified from Accumulated OCI Into Income N/A $ 0.1 N/A $ (0.5 ) Amount Reclassified from Accumulated OCI into Income due to a Forecast Transaction That is No Longer Probable of Occurring N/A $ - N/A $ - Interest Rate Derivatives Amount of Loss (Gain) Reclassified from Accumulated OCI Into Income $ 9.1 N/A $ (2.2 ) N/A Amount Reclassified from Accumulated OCI into Income due to a Forecast Transaction That is No Longer Probable of Occurring (a) $ 3.7 N/A $ - N/A (a) The amount is included within the total amount of loss (gain) reclassified from accumulated OCI into income. Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment were recorded in earnings as follows: Fiscal quarter ended Derivatives not designated as hedging instruments under ASC 815 Location of loss recognized in earnings on derivatives April 4, 2021 March 29, 2020 Interest rate derivatives Other (income) expense, net $ 0.2 $ (1.1 ) Foreign currency derivatives Other (income) expense, net 30.4 0.7 Cross currency swaps Other (income) expense, net (24.0 ) (0.8 ) The following table presents the location and fair values, as determined using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in the consolidated balance sheets: April 4, 2021 January 3, 2021 Interest rate derivatives: Accrued liabilities $ - $ 0.1 Other long-term liabilities 35.0 44.1 Foreign currency forward contracts: Other current assets 7.1 4.2 Accrued liabilities 8.2 10.0 The following table presents the location and fair values, as determined using Level 2 inputs of derivative instruments that have not been designated as cash flow hedges included in the consolidated balance sheets: April 4, 2021 January 3, 2021 Interest rate derivatives: Accrued liabilities $ - $ 0.1 Other long-term liabilities 9.4 11.1 Foreign currency derivative contracts: Other current assets 0.4 0.3 Accrued liabilities 31.0 0.1 Cross currency swaps: Other current assets 12.8 2.0 Other long-term liabilities - 10.8 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ( 1 7 ) Accumulated other comprehensive income (loss) The balances of accumulated other comprehensive income (loss), net of tax, were as follows for the fiscal first quarters ended April 4, 2021 and March 29, 2020: Pension and Other Postemployment Benefits Foreign Currency Derivatives Interest Rate Derivatives Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss 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 ) Pension and Other Postemployment Benefits Foreign Currency Derivatives Interest Rate Derivatives Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance at December 29, 2019 $ (4.3 ) $ 2.7 $ (5.8 ) $ (64.5 ) $ (71.9 ) Current period deferrals — 5.4 (38.1 ) (10.8 ) (43.5 ) Amounts reclassified to net loss — (0.5 ) (2.1 ) — (2.6 ) Cumulative effect of change in accounting standard — — (3.7 ) — (3.7 ) Net change — 4.9 (43.9 ) (10.8 ) (49.8 ) Balance at March 29, 2020 $ (4.3 ) $ 7.6 $ (49.7 ) $ (75.3 ) $ (121.7 ) |
Other Expense, Net
Other Expense, Net | 3 Months Ended |
Apr. 04, 2021 | |
Other Income And Expenses [Abstract] | |
Other Expense, Net | ( 1 8 ) Other expense, net Other expense, net was $50.0 million for the fiscal first quarter ended April 4, 2021 and was 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 our 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. Other expense, net was $59.3 million for the fiscal first quarter ended March 29, 2020 and was comprised primarily of $48.3 million of net foreign currency losses, of which $49.9 million was unrealized, primarily related to intercompany loans denominated in currencies other than the functional currency of the affected subsidiaries, and loss on early extinguishment of debt of $10.0 million related to debt refinancing activities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 04, 2021 | |
Accounting Policies [Abstract] | |
Recently Adopted Pronouncements | Recently adopted pronouncements Income taxes (Topic 740), simplifying the accounting for income taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting guidance related to intra period tax allocations, interim period accounting for enacted changes in tax law, and the year-to-date loss limitation in interim period tax accounting. The Company adopted this guidance on January 4, 2021 and the adoption did not have a material impact on the Company’s consolidated financial statements. Reference rate reform (Topic 848) In January 2021, the FASB issued ASU 2021-01, Reference rate reform (Topic 848), which clarifies that certain optional expedients and exceptions in Topic 848 apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The guidance in ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. The optional amendments can be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The Company has determined that the optional amendments are not applicable to the derivative instruments held as of the end of the fiscal quarter ended April 4, 2021. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Potential Gross Ordinary Shares Equivalent Excluded from Computation of Net Loss Per Share | Total potential gross ordinary share equivalents consisted of the following: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Stock options 15,895,457 15,534,797 Unvested restricted shares and restricted stock units 1,009,568 341,566 16,905,025 15,876,363 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Balance of Contract Assets Recorded in Consolidated Balance Sheets | The balance of contract assets recorded in our consolidated balance sheets were as follows: April 4, 2021 January 3, 2021 Other current assets $ 49.3 40.4 Other assets - 2.4 Total contract assets $ 49.3 $ 42.8 |
Summary of Net Revenue by Line of Business | The following table summarizes net revenue by line of business for the fiscal quarter ended April 4, 2021 and March 29, 2020: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Clinical Laboratories $ 334.0 $ 256.4 Transfusion Medicine 161.4 147.9 Other Product Revenue 4.3 - Total Product Revenue 499.7 404.3 Collaborations and Other Revenue 7.1 3.6 Net Revenue $ 506.8 $ 407.9 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The Company’s inventories were as follows: April 4, 2021 January 3, 2021 Raw materials and supplies $ 78.7 $ 77.2 Goods in process 37.9 35.2 Finished goods 174.5 166.3 Total Inventories $ 291.1 $ 278.7 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Debt Instrument [Line Items] | |
Components of Borrowings | As of April 4, 2021 and January 3, 2021, the components of borrowings were as follows: April 4, 2021 January 3, 2021 Senior Secured Credit Facilities Dollar Term Loan Facility $ 1,292.8 $ 2,185.5 Euro Term Loan Facility 392.9 408.9 Revolving Credit Facility — — 2028 Notes 405.0 675.0 2025 Notes 240.0 400.0 Accounts Receivable Financing 72.2 75.0 Sale and Leaseback Financing — 20.5 Capital lease obligation 0.9 1.0 Other short-term borrowings 3.7 0.9 Other long-term borrowings 3.6 3.9 Unamortized deferred financing costs (25.1 ) (40.9 ) Unamortized original issue discount (6.3 ) (11.3 ) Total borrowings 2,379.7 3,718.5 Less: Current portion (139.4 ) (160.0 ) Long-term borrowings $ 2,240.3 $ 3,558.5 |
Schedule of Interest Expense, Net | The following table provides the detail of interest expense, net for the fiscal first quarter ended April 4, 2021 and March 29, 2020: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Interest expense: Dollar Term Loan Facility $ 14.1 $ 27.9 Euro Term Loan Facility 3.6 2.3 Revolving Credit Facility — 1.0 2028 Notes 9.1 8.6 2025 Notes 5.5 — 2022 Notes — 10.1 Accounts Receivable Financing 0.9 1.6 Amortization of: Deferred financing costs 1.7 2.2 Original issue discount 0.3 0.6 Derivative instruments and other 8.2 (2.1 ) Interest expense, net $ 43.4 $ 52.2 |
Schedule of Required Future Repayments of all Borrowings Outstanding | Below is a schedule of required future repayments of all borrowings outstanding on April 4, 2021: Remainder of 2021 $ 123.7 2022 63.2 2023 62.8 2024 62.5 2025 1,453.9 Thereafter 645.0 $ 2,411.1 |
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 % |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities included in current liabilities consist of the following: April 4, 2021 January 3, 2021 Accrued compensation and employee-related obligations $ 82.3 $ 110.5 Derivatives 39.2 10.3 Accrued commissions and rebates 24.3 24.9 Accrued interest 17.7 42.2 Accrued taxes other than income 16.2 14.3 Current portion of operating lease liabilities 13.9 15.1 Income taxes payable 3.9 4.1 Other accrued liabilities 63.4 63.3 Total Accrued Liabilities $ 260.9 $ 284.7 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Segment Reporting [Abstract] | |
Net Revenue by Segment | Net revenue by segment is as follows: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Americas $ 321.4 $ 250.5 EMEA 68.5 58.7 Greater China 55.0 46.3 Other 61.9 52.4 Net Revenue $ 506.8 $ 407.9 |
Adjusted EBITDA by Segment | Adjusted EBITDA by segment is as follows: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Americas $ 141.1 $ 108.1 EMEA 17.5 11.7 Greater China 25.2 18.8 Other 19.4 15.2 Corporate(1) (50.8 ) (51.7 ) Adjusted EBITDA $ 152.4 $ 102.0 (1) 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. Our c orporate function also includes debt and stock-based compensation associated with all e mployee s tock- b ased a wards. |
Reconciliation of Net Loss to Adjusted EBITDA | The reconciliation of Net Loss to Adjusted EBITDA is as follows: Fiscal First Quarter Ended April 4, 2021 March 29, 2020 Net loss $ (39.1 ) $ (101.2 ) Depreciation and amortization 82.7 79.8 Interest expense, net 43.4 52.2 Provision for income taxes 3.3 4.1 Loss on extinguishment of debt 50.3 10.0 Stock-based compensation 3.5 1.6 Restructuring and severance related costs 1.3 2.4 Tax indemnification income, net (0.2 ) (2.5 ) Unrealized foreign currency exchanges losses - 49.3 Other adjustments 7.2 6.3 Adjusted EBITDA 152.4 102.0 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Long-term Borrowings | The following table presents the fair value of long-term borrowings: April 4, 2021 January 3, 2021 Long-term borrowings: Dollar Term Loan Facility $ 1,517.4 $ 2,627.7 Euro Term Loan Facility 391.8 401.1 2028 Notes 442.5 710.4 2025 Notes 258.0 424.0 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Schedule of Interest Rate Derivative Agreements | The following tables summarize interest rate derivative agreements as of April 4, 2021: Effective date Expiration date Interest rate cap amount Notional amount Hedge designation December 31, 2020 December 31, 2023 3.5% $ 1,500,000,000 Not designated Effective date Expiration date Description Fixed rate Floating rate Notional amount (a) Hedge designation September 27, 2019 December 31, 2023 Pay fixed, receive float 1.635% 1-month LIBOR rate $ 1,500,000,000 Cash Flow Hedge (a) The notional value of this instrument is expected to be $1,000 million in fiscal 2022 and $500 million in fiscal 2023. |
Schedule of Foreign Currency Forward Contracts Outstanding | The following table provides details of the foreign currency forward contracts outstanding as of April 4, 2021: Description (a) Notional amount Hedge designation Forward Foreign Currency Contracts $ 331.4 Cash Flow Hedge Forward Foreign Currency Contracts $ 1,566.1 Not designated (a) The Company’s forward currency foreign exchange 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, Swiss Franc and the Thai Baht. |
Fair Value Gains and Losses of Derivative Contracts | Fair value gains and losses of foreign currency contracts and interest rate derivatives, as determined using Level 2 inputs, that are designated and qualify as cash flow hedges during the fiscal quarter ended April 4, 2021 and March 29, 2020 were recorded as follows: Derivatives in cash flow hedging relationships Amount of Loss (gain) recognized in OCI on derivatives Location of loss reclassified from accumulated OCI into income Amount of loss (gain) reclassified from accumulated OCI into income Fiscal first quarter ended April 4, 2021 Foreign currency forward contracts $ (3.5 ) Cost of revenue $ 0.1 Interest rate derivatives (3.3 ) Interest expense 9.1 Derivatives in cash flow hedging relationships Amount of loss (gain) recognized in OCI on derivatives Location of loss reclassified from accumulated OCI into income Amount of loss (gain) reclassified from accumulated OCI into income Fiscal first quarter ended March 29, 2020 Foreign currency forward contracts $ (5.4 ) Cost of revenue $ (0.5 ) Interest rate derivatives 38.1 Interest expense, net (2.2 ) |
Schedule of Effects of Derivative Instruments on Statements of Operations and Comprehensive Loss | The following table presents the effect of the Company’s derivative instruments on the statements of operations and comprehensive loss: Fiscal quarter ended April 4, 2021 Fiscal quarter ended March 29, 2020 Interest expense Cost of revenue Interest expense Cost of revenue Total amounts of financial statement line item presented in the statements of operations and comprehensive loss in which the effects of cash flow hedges are recorded $ 43.4 $ 248.2 $ 52.2 $ 213.2 The effects of cash flow hedging Loss (Gain) on cash flow hedging relationships: Foreign currency forward contracts Amount of Loss (Gain) Reclassified from Accumulated OCI Into Income N/A $ 0.1 N/A $ (0.5 ) Amount Reclassified from Accumulated OCI into Income due to a Forecast Transaction That is No Longer Probable of Occurring N/A $ - N/A $ - Interest Rate Derivatives Amount of Loss (Gain) Reclassified from Accumulated OCI Into Income $ 9.1 N/A $ (2.2 ) N/A Amount Reclassified from Accumulated OCI into Income due to a Forecast Transaction That is No Longer Probable of Occurring (a) $ 3.7 N/A $ - N/A (a) The amount is included within the total amount of loss (gain) reclassified from accumulated OCI into income. |
Designated as Hedging Instrument | |
Location and Fair Values of Derivative Instruments Cash Flow Hedges Included In Consolidated Balance Sheets | The following table presents the location and fair values, as determined using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in the consolidated balance sheets: April 4, 2021 January 3, 2021 Interest rate derivatives: Accrued liabilities $ - $ 0.1 Other long-term liabilities 35.0 44.1 Foreign currency forward contracts: Other current assets 7.1 4.2 Accrued liabilities 8.2 10.0 |
Not Designated as Hedging Instrument | |
Location and Fair Values of Derivative Instruments Cash Flow Hedges Included In Consolidated Balance Sheets | The following table presents the location and fair values, as determined using Level 2 inputs of derivative instruments that have not been designated as cash flow hedges included in the consolidated balance sheets: April 4, 2021 January 3, 2021 Interest rate derivatives: Accrued liabilities $ - $ 0.1 Other long-term liabilities 9.4 11.1 Foreign currency derivative contracts: Other current assets 0.4 0.3 Accrued liabilities 31.0 0.1 Cross currency swaps: Other current assets 12.8 2.0 Other long-term liabilities - 10.8 |
ASC 815 | |
Fair Value Gains and Losses of Derivative Contracts | Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment were recorded in earnings as follows: Fiscal quarter ended Derivatives not designated as hedging instruments under ASC 815 Location of loss recognized in earnings on derivatives April 4, 2021 March 29, 2020 Interest rate derivatives Other (income) expense, net $ 0.2 $ (1.1 ) Foreign currency derivatives Other (income) expense, net 30.4 0.7 Cross currency swaps Other (income) expense, net (24.0 ) (0.8 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss), Net of Tax | The balances of accumulated other comprehensive income (loss), net of tax, were as follows for the fiscal first quarters ended April 4, 2021 and March 29, 2020: Pension and Other Postemployment Benefits Foreign Currency Derivatives Interest Rate Derivatives Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss 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 ) Pension and Other Postemployment Benefits Foreign Currency Derivatives Interest Rate Derivatives Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance at December 29, 2019 $ (4.3 ) $ 2.7 $ (5.8 ) $ (64.5 ) $ (71.9 ) Current period deferrals — 5.4 (38.1 ) (10.8 ) (43.5 ) Amounts reclassified to net loss — (0.5 ) (2.1 ) — (2.6 ) Cumulative effect of change in accounting standard — — (3.7 ) — (3.7 ) Net change — 4.9 (43.9 ) (10.8 ) (49.8 ) Balance at March 29, 2020 $ (4.3 ) $ 7.6 $ (49.7 ) $ (75.3 ) $ (121.7 ) |
General and Description of th_2
General and Description of the Business - Additional Information (Details) | Feb. 05, 2021USD ($) | Feb. 28, 2021USD ($) | Apr. 04, 2021USD ($)Country$ / sharesshares | Mar. 29, 2020USD ($) | Sep. 30, 2022 | Jun. 30, 2021 | Jan. 03, 2021USD ($) |
General And Description Of Business [Line Items] | |||||||
Net proceeds from IPO | $ 1,426,400,000 | $ 0 | |||||
Cash and cash equivalents | 153,800,000 | 349,800,000 | $ 132,800,000 | ||||
Accumulated deficit | (1,956,600,000) | $ (1,917,500,000) | |||||
Net loss | (39,100,000) | (101,200,000) | |||||
Cash from operating activities | (9,900,000) | $ (17,500,000) | |||||
Letters of credit issued | $ 37,000,000 | ||||||
Dollar Term Loan Facility | |||||||
General And Description Of Business [Line Items] | |||||||
Repayments of senior debt | $ 892,700,000 | ||||||
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 | ||||||
Revolving Credit Facility | Scenario Forecast | |||||||
General And Description Of Business [Line Items] | |||||||
Basis point step-downs of first lien net leverage ratio | 0.50 | 0.50 | |||||
2025 Notes | |||||||
General And Description Of Business [Line Items] | |||||||
Repayment of debt | $ 160,000,000 | ||||||
Redemption premium | 11,800,000 | ||||||
2028 Notes | |||||||
General And Description Of Business [Line Items] | |||||||
Repayment of debt | 270,000,000 | ||||||
Redemption premium | $ 19,600,000 | ||||||
Minimum | |||||||
General And Description Of Business [Line Items] | |||||||
Number of countries and territories with commercial presence | Country | 130 | ||||||
Number of countries with direct commercial presence | Country | 30 | ||||||
Maximum | Revolving Credit Facility | |||||||
General And Description Of Business [Line Items] | |||||||
First lien net leverage ratio | 6 | ||||||
Ortho-Clinical Diagnostics Holdings Luxembourg S.à r.l | UK Holdco | |||||||
General And Description Of Business [Line Items] | |||||||
Ownership interest | 100.00% | ||||||
Ortho-Clinical Diagnostics S.A. | UK Holdco | |||||||
General And Description Of Business [Line Items] | |||||||
Ownership interest | 100.00% | ||||||
Common Stock | |||||||
General And Description Of Business [Line Items] | |||||||
Initial share capital | shares | 1 | ||||||
Ordinary shares issued and sold | shares | 87,400,000 | ||||||
Net proceeds from IPO | $ 1,426,400,000 | ||||||
Common Stock | IPO | |||||||
General And Description Of Business [Line Items] | |||||||
Ordinary shares, price per share | $ / shares | $ 17 | ||||||
Ordinary shares issued and sold | shares | 87,400,000 | ||||||
Common Stock | Underwriters Option | |||||||
General And Description Of Business [Line Items] | |||||||
Ordinary shares issued and sold | shares | 11,400,000 | ||||||
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 Consolidated Financial Statements - Additional Information (Details) | Jan. 18, 2021shares |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Stock issued during period, shares, stock splits | 54,860,691 |
Additional share for each existing share | 0.5934 |
Stock split conversion ratio | 1.5934 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - ASU 2019-12 | Apr. 04, 2021 |
Summary Of Significant Accounting Policies [Line Items] | |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 4, 2021 |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Potential Gross Ordinary Shares Equivalent Excluded from Computation of Net Loss per Share (Details) - shares | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share | 16,905,025 | 15,876,363 |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share | 15,895,457 | 15,534,797 |
Unvested restricted shares and restricted stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share | 1,009,568 | 341,566 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 3 Months Ended | |||
Apr. 04, 2021USD ($) | Sep. 27, 2020USD ($)AgreementAward | Mar. 29, 2020USD ($) | Jan. 03, 2021USD ($) | |
Disaggregation Of Revenue [Line Items] | ||||
Contract asset | $ 49,300,000 | $ 42,800,000 | ||
Credit losses related to contract assets | 0 | $ 0 | ||
Deferred revenue, current | 34,300,000 | 35,500,000 | ||
Deferred revenue, revenue recognized | 17,900,000 | |||
Revenue recognized | 7,100,000 | $ 3,600,000 | ||
Other Assets | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract asset | 0 | 2,400,000 | ||
Other Liabilities | ||||
Disaggregation Of Revenue [Line Items] | ||||
Deferred revenue, non-current | 6,300,000 | 6,600,000 | ||
Customer Supply Agreement | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract asset | 11,800,000 | 15,100,000 | ||
Customer Supply Agreement | Other Assets | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract asset | 2,400,000 | |||
Contractual Arrangements | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract asset | 35,900,000 | 24,300,000 | ||
Contract Manufacturing Agreements | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract asset | 1,600,000 | $ 3,400,000 | ||
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 | Grant Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue recognized | $ 4,000,000 | |||
Minimum | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue earned from operating leases recognized period | 5 years | |||
Maximum | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue earned from operating leases recognized period | 7 years | |||
Maximum | Biomedical Advanced Research and Development Authority | ||||
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 |
Revenue - Schedule of Balance o
Revenue - Schedule of Balance of Contract Assets Recorded in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Disaggregation Of Revenue [Line Items] | ||
Total contract assets | $ 49.3 | $ 42.8 |
Other Current Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Total contract assets | 49.3 | 40.4 |
Other Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Total contract assets | $ 0 | $ 2.4 |
Revenue - Summary of Net Revenu
Revenue - Summary of Net Revenue by Line of Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total Product Revenue | $ 499.7 | $ 404.3 |
Collaborations and Other Revenue | 7.1 | 3.6 |
Net Revenue | 506.8 | 407.9 |
Clinical Laboratories | ||
Disaggregation Of Revenue [Line Items] | ||
Total Product Revenue | 334 | 256.4 |
Transfusion Medicine | ||
Disaggregation Of Revenue [Line Items] | ||
Total Product Revenue | 161.4 | 147.9 |
Other Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total Product Revenue | $ 4.3 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 78.7 | $ 77.2 |
Goods in process | 37.9 | 35.2 |
Finished goods | 174.5 | 166.3 |
Total Inventories | $ 291.1 | $ 278.7 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Debt Instrument [Line Items] | ||
Capital lease obligation | $ 0.9 | $ 1 |
Other short-term borrowings | 3.7 | 0.9 |
Other long-term borrowings | 3.6 | 3.9 |
Unamortized deferred financing costs | (25.1) | (40.9) |
Unamortized original issue discount | (6.3) | (11.3) |
Total borrowings | 2,379.7 | 3,718.5 |
Less: Current portion | (139.4) | (160) |
Long-term borrowings | 2,240.3 | 3,558.5 |
Dollar Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 1,292.8 | 2,185.5 |
Unamortized deferred financing costs | (9.7) | (17.3) |
Euro Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 392.9 | 408.9 |
Unamortized deferred financing costs | (4.3) | (4.6) |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 0 | 0 |
Unamortized deferred financing costs | (4) | (3.4) |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 405 | 675 |
Unamortized deferred financing costs | (7) | (11.8) |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 240 | 400 |
Unamortized deferred financing costs | (4) | (7) |
Accounts Receivable Financing | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | 72.2 | 75 |
Sale and Leaseback Financing | ||
Debt Instrument [Line Items] | ||
Long-term borrowings, gross | $ 0 | $ 20.5 |
Borrowings - Senior Secured Cre
Borrowings - Senior Secured Credit Facilities - Additional Information (Details) | Feb. 05, 2021USD ($) | Feb. 28, 2021USD ($) | Apr. 04, 2021USD ($) | Mar. 29, 2020USD ($) | Feb. 05, 2021EUR (€) | Jan. 03, 2021USD ($) |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 50,300,000 | $ 10,000,000 | ||||
Unamortized deferred financing costs | 25,100,000 | $ 40,900,000 | ||||
Letters of credit, outstanding | 37,000,000 | |||||
Dollar Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Early repayment of debt | $ 892,700,000 | |||||
Unamortized deferred financing costs | $ 9,700,000 | 17,300,000 | ||||
Debt instrument, effective interest rate | 5.76% | |||||
Dollar Term Loan Facility | Other Expense, Net | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 11,400,000 | |||||
Euro Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized deferred financing costs | $ 4,300,000 | 4,600,000 | ||||
Debt instrument, effective interest rate | 3.88% | |||||
Euro Term Loan Facility | Fifth Amendment of Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | € | € 337,400,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized deferred financing costs | $ 4,000,000 | $ 3,400,000 | ||||
Outstanding borrowings | 0 | |||||
Line of credit, available borrowing capacity | $ 463,000,000 | |||||
Maximum percentage of committed amount for first lien net leverage ratio | 30.00% | |||||
Revolving Credit Facility | Each Fiscal Quarter Ending on or Prior to June 30, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
First lien net leverage ratio | 6 | |||||
Revolving Credit Facility | Each Fiscal Quarter Ending after June 30, 2021 and on or Prior to September 30, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
First lien net leverage ratio | 5.50 | |||||
Revolving Credit Facility | Each Fiscal Quarter Ending Thereafter | ||||||
Debt Instrument [Line Items] | ||||||
First lien net leverage ratio | 5 | |||||
Revolving Credit Facility | Fifth Amendment of Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 500,000,000 | |||||
Line of credit, increase in borrowing capacity | $ 150,000,000 | |||||
Debt instrument, maturity date | Feb. 5, 2026 | |||||
Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit, outstanding | $ 37,000,000 |
Borrowings - 2025 Notes - Addit
Borrowings - 2025 Notes - Additional Information (Details) - USD ($) | Feb. 05, 2021 | Jun. 11, 2020 | Feb. 05, 2021 | Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 50,300,000 | $ 10,000,000 | ||||
Unamortized deferred financing costs | $ 25,100,000 | $ 40,900,000 | ||||
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 | |||||
Redemption premium | 11,800,000 | |||||
Loss on extinguishment of debt | 14,500,000 | |||||
Write off of deferred debt Issuance cost | $ 2,700,000 | |||||
Unamortized deferred financing costs | $ 4,000,000 | $ 7,000,000 | ||||
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. 04, 2021 |
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 ($) | Apr. 05, 2021 | Feb. 05, 2021 | Jan. 27, 2020 | Feb. 05, 2021 | Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 |
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 50,300,000 | $ 10,000,000 | |||||
Unamortized deferred financing costs | $ 25,100,000 | $ 40,900,000 | |||||
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 | ||||||
Redemption premium | 19,600,000 | ||||||
Loss on extinguishment of debt | 24,300,000 | ||||||
Write off of deferred debt Issuance cost | $ 4,700,000 | ||||||
Unamortized deferred financing costs | $ 7,000,000 | $ 11,800,000 | |||||
Debt instrument, effective interest rate | 7.76% | ||||||
2028 Notes | U.S. Dollar to Japanese Yen Cross Currency Swaps | |||||||
Debt Instrument [Line Items] | |||||||
Derivative notional amount | $ 350,000,000 | ||||||
Derivative contract term | 5 years | ||||||
Derivative contract, weighted average interest rate | 5.56% | ||||||
2028 Notes | U.S. Dollar to Japanese Yen Cross Currency Swaps | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Net settlement on derivatives | $ 12,800,000 | ||||||
2028 Notes | Other Expense, Net | |||||||
Debt Instrument [Line Items] | |||||||
Redemption premium | $ 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. 04, 2021 |
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 - 2022 Notes - Addit
Borrowings - 2022 Notes - Additional Information (Details) - USD ($) $ in Millions | Jun. 12, 2020 | Jan. 28, 2020 | Apr. 04, 2021 | Mar. 29, 2020 |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 50.3 | $ 10 | ||
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings, outstanding balance | $ 1,300 | |||
Repayment of debt | $ 300 | $ 1,000 | ||
Debt instrument, stated interest rate | 6.625% | |||
Loss on extinguishment of debt | $ 10 |
Borrowings - Sale and Leaseback
Borrowings - Sale and Leaseback Financing - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2016 | Apr. 04, 2021 | Jan. 03, 2021 | |
Debt Disclosure [Abstract] | |||
Property and equipment sold under sale and leaseback financing | $ 36.3 | ||
Initial term | two years | ||
Monthly rental payments | $ 1.5 | ||
Security deposit | $ 9.1 | ||
Financing period | 42 months | ||
Financing obligation | $ 36.3 |
Borrowings - Accounts Receivabl
Borrowings - Accounts Receivable Financing - Additional Information (Details) - Financing Program - USD ($) | 3 Months Ended | |
Apr. 04, 2021 | Jan. 03, 2021 | |
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Jan. 24, 2022 | |
Debt outstanding amount | $ 72,200,000 | $ 75,000,000 |
Debt borrowing base amount | $ 84,900,000 | |
Percentage of Debt Borrowing Base Rate on Account Receivable | 85.00% | |
LIBOR Floor Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable percentage rate | 0.00% | |
LIBOR Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable percentage rate | 2.25% | |
Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable percentage rate | 1.25% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Debt borrowing amount | $ 75,000,000 |
Borrowings - Schedule of Intere
Borrowings - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Amortization of: | ||
Deferred financing costs | $ 1.7 | $ 2.2 |
Original issue discount | 0.3 | 0.6 |
Derivative instruments and other | 8.2 | (2.1) |
Interest expense, net | 43.4 | 52.2 |
2028 Notes | ||
Interest expense | ||
Interest expense | 9.1 | 8.6 |
2025 Notes | ||
Interest expense | ||
Interest expense | 5.5 | 0 |
2022 Notes | ||
Interest expense | ||
Interest expense | 0 | 10.1 |
Accounts Receivable Financing | ||
Interest expense | ||
Interest expense | 0.9 | 1.6 |
Revolving Credit Facility | ||
Interest expense | ||
Interest expense | 0 | 1 |
Dollar Term Loan Facility | ||
Interest expense | ||
Interest expense | 14.1 | 27.9 |
Euro Term Loan Facility | ||
Interest expense | ||
Interest expense | $ 3.6 | $ 2.3 |
Borrowings - Schedule of Requir
Borrowings - Schedule of Required Future Repayments of all Borrowings Outstanding (Details) $ in Millions | Apr. 04, 2021USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2021 | $ 123.7 |
2022 | 63.2 |
2023 | 62.8 |
2024 | 62.5 |
2025 | 1,453.9 |
Thereafter | 645 |
Total | $ 2,411.1 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Payables And Accruals [Abstract] | ||
Accrued compensation and employee-related obligations | $ 82.3 | $ 110.5 |
Derivatives | 39.2 | 10.3 |
Accrued commissions and rebates | 24.3 | 24.9 |
Accrued interest | 17.7 | 42.2 |
Accrued taxes other than income | 16.2 | 14.3 |
Current portion of operating lease liabilities | 13.9 | 15.1 |
Income taxes payable | 3.9 | 4.1 |
Other accrued liabilities | 63.4 | 63.3 |
Total Accrued Liabilities | $ 260.9 | $ 284.7 |
Collaborations and Other Rela_2
Collaborations and Other Relationships - Additional Information (Details) - USD ($) | Sep. 04, 2020 | Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Research and development expense | $ 28,900,000 | $ 23,600,000 | ||
Inventories | 291,100,000 | $ 278,700,000 | ||
Joint Business | Grifols Diagnostic Solutions, Inc. | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Net profit shared under joint venture, before tax | 10,800,000 | 11,600,000 | ||
Letter Agreement | Quotient Limited | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Non-refundable upfront payment | $ 7,500,000 | |||
Research and development expense | $ 7,500,000 | |||
Inventories | $ 5,500,000 | $ 5,400,000 | ||
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 | 60,000,000 | |||
Potential payments upon achievement of certain cumulative revenue milestones | $ 25,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | |
Income Tax [Line Items] | |||
Loss incurred before provision for income taxes | $ 35.8 | $ 97.1 | |
Provision for income taxes | $ 3.3 | $ 4.1 | |
Effective tax rate | 9.20% | 4.20% | |
Unrecognized tax benefits | $ 27.9 | ||
Unrecognized tax benefits that would affect effective income tax rate | 23.5 | ||
Accrued interest and penalties | 6.3 | ||
Johnson and Johnson | |||
Income Tax [Line Items] | |||
Accrued interest and penalties | 0.2 | ||
Indemnification receivable | $ 17.1 | $ 17.1 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Apr. 04, 2021USD ($)Segment | Mar. 29, 2020USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | Segment | 3 | |
Net unrealized losses of foreign currency transaction | $ | $ 22 | $ 49.9 |
Segment and Geographic Inform_4
Segment and Geographic Information - Net Revenue by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Segment Reporting Information [Line Items] | ||
Net Revenue | $ 506.8 | $ 407.9 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net Revenue | 321.4 | 250.5 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Net Revenue | 68.5 | 58.7 |
Greater China | ||
Segment Reporting Information [Line Items] | ||
Net Revenue | 55 | 46.3 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net Revenue | $ 61.9 | $ 52.4 |
Segment and Geographic Inform_5
Segment and Geographic Information - Adjusted EBITDA by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ 152.4 | $ 102 |
Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 141.1 | 108.1 |
Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 17.5 | 11.7 |
Operating Segments | Greater China | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 25.2 | 18.8 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 19.4 | 15.2 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ (50.8) | $ (51.7) |
Segment and Geographic Inform_6
Segment and Geographic Information - Reconciliation of Net Loss to Adjusted EBITDA (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Segment Reporting [Abstract] | ||
Net loss | $ (39.1) | $ (101.2) |
Depreciation and amortization | 82.7 | 79.8 |
Interest expense, net | 43.4 | 52.2 |
Provision for income taxes | 3.3 | 4.1 |
Loss on extinguishment of debt | 50.3 | 10 |
Stock-based compensation | 3.5 | 1.6 |
Restructuring and severance related costs | 1.3 | 2.4 |
Tax indemnification income, net | (0.2) | (2.5) |
Unrealized foreign currency exchanges losses | 0 | 49.3 |
Other adjustments | 7.2 | 6.3 |
Adjusted EBITDA | $ 152.4 | $ 102 |
Noncash Investing Activities -
Noncash Investing Activities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | Dec. 29, 2019 | |
Noncash Investing And Financing Items [Abstract] | ||||
Noncash transfer of inventory to property, plant and equipment | $ 25.6 | $ 27.7 | ||
Purchases of property, plant and equipment and capitalized internal-use software costs included in accounts payable and accrued liabilities | 1.9 | $ 3.9 | $ 11.4 | $ 14.1 |
Initial public offering costs included in accounts payable and accrued liabilities | $ 4.5 | $ 3 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | |
Related Party Transaction [Line Items] | |||
Net revenue | $ 506.8 | $ 407.9 | |
Inventories, purchased | 291.1 | $ 278.7 | |
Carlyle Investment Management, L.L.C. | |||
Related Party Transaction [Line Items] | |||
Net revenue | 0.9 | 0.7 | |
Inventories, purchased | 0.6 | ||
IT service fees | 0.3 | ||
Consulting fees | 0.7 | 0.2 | |
Pharmacy related services, fees | 1.6 | 1.4 | |
Carlyle Investment Management, L.L.C. | Healthcare Equipment Company | |||
Related Party Transaction [Line Items] | |||
Inventories, purchased | $ 0.8 | ||
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 and other out-of-pocket expenses | $ 0.8 | $ 0.8 |
Fair Value Accounting - Schedul
Fair Value Accounting - Schedule of Fair Value of Long-term Borrowings (Details) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Dollar Term Loan Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term borrowings, fair value | $ 1,517.4 | $ 2,627.7 |
Euro Term Loan Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term borrowings, fair value | 391.8 | 401.1 |
2028 Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term borrowings, fair value | 442.5 | 710.4 |
2025 Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term borrowings, fair value | $ 258 | $ 424 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Schedule of Interest Rate Derivative Agreements (Details) | 3 Months Ended |
Apr. 04, 2021USD ($) | |
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 | $ 1,500,000,000 |
Floating rate | 1-month LIBOR rate |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Effective date | Dec. 31, 2020 |
Expiration date | Dec. 31, 2023 |
Interest rate cap amount | 3.50% |
Derivative notional amount | $ 1,500,000,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Interest Rate Derivative Agreements (Parenthetical) (Details) $ in Millions | Apr. 04, 2021USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Estimated derivative notional amount in 2022 | $ 1,000 |
Estimated derivative notional amount in 2023 | $ 500 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) | Apr. 05, 2021 | Apr. 04, 2021 | Dec. 31, 2020 | Jan. 27, 2020 | Sep. 29, 2019 |
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Interest rate cap amount | 3.50% | ||||
Derivative loss included in OCI | $ 8,500,000 | $ 9,300,000 | |||
Deferred losses released to interest expense | 600,000 | ||||
Interest Rate Swap | Interest expense | |||||
Derivative [Line Items] | |||||
Amortized to interest expense | 800,000 | ||||
Interest Rate Swap Previously Hedged | |||||
Derivative [Line Items] | |||||
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% | ||||
Derivative instrument term | 5 years | ||||
U.S. Dollar to Japanese Yen Cross Currency Swaps | 2028 Notes | |||||
Derivative [Line Items] | |||||
Derivative notional amount | $ 350,000,000 | ||||
U.S. Dollar to Japanese Yen Cross Currency Swaps | Subsequent Event | 2028 Notes | |||||
Derivative [Line Items] | |||||
Net settlement on derivatives | $ 12,800,000 | ||||
Foreign Currency Derivatives | |||||
Derivative [Line Items] | |||||
Unrealized loss on cash flow hedging instruments | $ 1,300,000 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of Foreign Currency Forward Contracts Outstanding (Details) | Apr. 04, 2021USD ($) |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative notional amount | $ 1,500,000,000 |
Cash Flow Hedge | |
Derivative [Line Items] | |
Derivative notional amount | 1,500,000,000 |
Foreign Currency Derivatives | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative notional amount | 1,566,100,000 |
Foreign Currency Derivatives | Cash Flow Hedge | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative notional amount | $ 331,400,000 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Schedule of Fair Value Gains and Losses of Foreign Currency Contracts and Interest Rate Derivatives (Details) - Cash Flow Hedge - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Cost of Revenue | Foreign Currency Derivatives | ||
Derivative [Line Items] | ||
Amount of loss (gain) reclassified from accumulated OCI into income | $ 0.1 | $ (0.5) |
Interest Expense, Net | Interest Rate Derivatives | ||
Derivative [Line Items] | ||
Amount of loss (gain) reclassified from accumulated OCI into income | 9.1 | (2.2) |
Level 2 | Designated as Hedging Instrument | Cost of Revenue | Foreign Currency Derivatives | ||
Derivative [Line Items] | ||
Amount of Loss (gain) recognized in OCI on derivatives | (3.5) | (5.4) |
Amount of loss (gain) reclassified from accumulated OCI into income | 0.1 | (0.5) |
Level 2 | Designated as Hedging Instrument | Interest Expense, Net | Interest Rate Derivatives | ||
Derivative [Line Items] | ||
Amount of Loss (gain) recognized in OCI on derivatives | (3.3) | 38.1 |
Amount of loss (gain) reclassified from accumulated OCI into income | $ 9.1 | $ (2.2) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments on Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Derivative [Line Items] | ||
Interest expense, net | $ 43.4 | $ 52.2 |
Cost of revenue, excluding amortization of intangible assets | 248.2 | 213.2 |
Cash Flow Hedge | ||
Derivative [Line Items] | ||
Interest expense, net | 43.4 | 52.2 |
Cost of revenue, excluding amortization of intangible assets | 248.2 | 213.2 |
Cash Flow Hedge | Foreign Currency Derivatives | Cost of Revenue | ||
Derivative [Line Items] | ||
Amount of loss (gain) reclassified from accumulated OCI into income | 0.1 | (0.5) |
Amount Reclassified from Accumulated OCI into Income due to a Forecast Transaction That is No Longer Probable of Occurring | 0 | 0 |
Cash Flow Hedge | Interest Rate Derivatives | Interest expense | ||
Derivative [Line Items] | ||
Amount of loss (gain) reclassified from accumulated OCI into income | 9.1 | (2.2) |
Amount Reclassified from Accumulated OCI into Income due to a Forecast Transaction That is No Longer Probable of Occurring | $ 3.7 | $ 0 |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Fair Value Gains and Losses of Derivative Contracts (Details) - Level 2 - Other Expense, Net - ASC 815 - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Derivative [Line Items] | ||
Interest rate derivatives | $ 0.2 | $ (1.1) |
Foreign currency derivatives | 30.4 | 0.7 |
Cross currency swaps | $ (24) | $ (0.8) |
Derivative Instruments and H_10
Derivative Instruments and Hedging Activities - Location and Fair Values of Derivative Instruments Designated Cash Flow Hedges (Details) - Level 2 - Cash Flow Hedge - Designated as Hedging Instrument - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Accrued Liabilities | ||
Derivative [Line Items] | ||
Interest rate derivatives | $ 0 | $ 0.1 |
Foreign currency forward contracts | 8.2 | 10 |
Other Long-term Liabilities | ||
Derivative [Line Items] | ||
Interest rate derivatives | 35 | 44.1 |
Other Current Assets | ||
Derivative [Line Items] | ||
Foreign currency forward contracts | $ 7.1 | $ 4.2 |
Derivative Instruments and H_11
Derivative Instruments and Hedging Activities - Location and Fair Values of Derivative Instruments Not Designated Cash Flow Hedges (Details) - Level 2 - Cash Flow Hedge - Not Designated as Hedging Instrument - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Accrued Liabilities | ||
Derivative [Line Items] | ||
Interest rate derivatives | $ 0 | $ 0.1 |
Foreign currency derivative contracts | 31 | 0.1 |
Other Long-term Liabilities | ||
Derivative [Line Items] | ||
Interest rate derivatives | 9.4 | 11.1 |
Cross currency swaps | 0 | 10.8 |
Other Current Assets | ||
Derivative [Line Items] | ||
Foreign currency derivative contracts | 0.4 | 0.3 |
Cross currency swaps | $ 12.8 | $ 2 |
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. 04, 2021 | Mar. 29, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ (1,010.8) | $ (812.8) |
Other comprehensive income (loss), net of tax | 7.2 | (49.8) |
Ending balance | 376.6 | (962) |
Pension and Other Postemployment Benefits | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (4.5) | (4.3) |
Current period deferrals | 0 | 0 |
Amounts reclassified to net loss | 0 | 0 |
Cumulative effect of change in accounting standard | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 |
Ending balance | (4.5) | (4.3) |
Derivatives | Foreign Currency Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (4.9) | 2.7 |
Current period deferrals | 3.5 | 5.4 |
Amounts reclassified to net loss | 0.1 | (0.5) |
Cumulative effect of change in accounting standard | 0 | |
Other comprehensive income (loss), net of tax | 3.6 | 4.9 |
Ending balance | (1.3) | 7.6 |
Derivatives | Interest Rate Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (53.9) | (5.8) |
Current period deferrals | 3.3 | (38.1) |
Amounts reclassified to net loss | 9.1 | (2.1) |
Cumulative effect of change in accounting standard | (3.7) | |
Other comprehensive income (loss), net of tax | 12.4 | (43.9) |
Ending balance | (41.5) | (49.7) |
Unrealized Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (5.1) | (64.5) |
Current period deferrals | (8.8) | (10.8) |
Amounts reclassified to net loss | 0 | 0 |
Cumulative effect of change in accounting standard | 0 | |
Other comprehensive income (loss), net of tax | (8.8) | (10.8) |
Ending balance | (13.9) | (75.3) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (68.4) | (71.9) |
Current period deferrals | (2) | (43.5) |
Amounts reclassified to net loss | 9.2 | (2.6) |
Cumulative effect of change in accounting standard | (3.7) | |
Other comprehensive income (loss), net of tax | 7.2 | (49.8) |
Ending balance | $ (61.2) | $ (121.7) |
Other Expense, Net - Additional
Other Expense, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Other Income And Expenses [Abstract] | ||
Other expense, net | $ 50 | $ 59.3 |
Gain (loss) on early extinguishment of debt | (50.3) | (10) |
Foreign currency gain (loss), net | 0.9 | (48.3) |
Realized foreign currency gain (loss), net | 22.9 | |
Unrealized foreign currency gain (loss), net | $ (22) | $ (49.9) |