QuidelOrtho (QDEL) 10-Q 8 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jul. 02, 2023	Aug. 01, 2023
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 02, 2023
Document Transition Report	false
Entity File Number	001-41409
Entity Registrant Name	QUIDELORTHO CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-4496285
Entity Address, Address Line One	9975 Summers Ridge Road
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
City Area Code	858
Local Phone Number	552-1100
Title of 12(b) Security	Common Stock, $0.001 Par Value
Trading Symbol	QDEL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		66,790,619
Entity Central Index Key	0001906324
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q2
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023
Current assets:
Cash and cash equivalents	$ 178.6	$ 292.9
Marketable securities	45.1	52.1
Accounts receivable, net	246.7	453.9
Inventories	542.2	524.1
Prepaid expenses and other current assets	295.5	252.1
Total current assets	1,308.1	1,575.1
Property, plant and equipment, net	1,376.2	1,339
Marketable securities	24.7	21
Right-of-use assets	177.4	181
Goodwill	2,470.9	2,476.8
Intangible assets, net	3,035.7	3,123.8
Deferred tax asset	16.1	16.4
Other assets	141.2	122.7
Total assets	8,550.3	8,855.8
Current liabilities:
Accounts payable	225.9	283.3
Accrued payroll and related expenses	81.5	139.2
Income tax payable	2.1	51.6
Current portion of borrowings	207.4	207.5
Other current liabilities	273.1	325.4
Total current liabilities	790	1,007
Operating lease liabilities	181.2	186.4
Long-term borrowings	2,308.5	2,430.8
Deferred tax liability	199.6	213.2
Other liabilities	68.5	83.8
Total liabilities	3,547.8	3,921.2
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 5.0 shares authorized; none issued or outstanding at July 2, 2023 and January 1, 2023	0	0
Common stock, $0.001 par value per share; 126.2 shares authorized; 66.8 and 66.4 shares issued and outstanding at July 2, 2023 and January 1, 2023, respectively	0.1	0
Additional paid-in capital	2,825.2	2,804.3
Accumulated other comprehensive loss	(16.3)	(67.6)
Retained earnings	2,193.5	2,197.9
Total stockholders’ equity	5,002.5	4,934.6
Total liabilities and stockholders’ equity	$ 8,550.3	$ 8,855.8

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 02, 2023	Jan. 01, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	126,200,000	126,200,000
Common stock, shares issued (in shares)	66,800,000	66,400,000
Common stock, shares outstanding (in shares)	66,800,000	66,400,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Income Statement [Abstract]
Total revenues	$ 665,100,000	$ 613,400,000	$ 1,511,200,000	$ 1,615,700,000
Cost of sales, excluding amortization of intangibles	368,700,000	275,900,000	766,200,000	536,200,000
Selling, marketing and administrative	179,100,000	118,400,000	381,500,000	203,200,000
Research and development	62,800,000	34,200,000	125,100,000	60,600,000
Amortization of intangible assets	51,400,000	21,000,000	102,200,000	28,100,000
Acquisition and integration costs	24,200,000	80,200,000	53,900,000	83,200,000
Other operating expenses	5,800,000	4,000,000	9,600,000	4,000,000
Operating (loss) income	(26,900,000)	79,700,000	72,700,000	700,400,000
Interest expense, net	36,500,000	10,300,000	73,200,000	11,300,000
Loss on extinguishment of debt	0	24,000,000	0	24,000,000
Other expense, net	1,000,000	2,500,000	3,900,000	1,600,000
(Loss) income before income taxes	(64,400,000)	42,900,000	(4,400,000)	663,500,000
(Benefit from) provision for income taxes	(11,200,000)	23,600,000	0	164,300,000
Net (loss) income	$ (53,200,000)	$ 19,300,000	$ (4,400,000)	$ 499,200,000
Basic (loss) earnings per share	$ (0.80)	$ 0.37	$ (0.07)	$ 10.62
Diluted (loss) earnings per share	$ (0.80)	$ 0.36	$ (0.07)	$ 10.47
Weighted-average shares outstanding - basic	66.8	52.2	66.7	47
Weighted-average shares outstanding - diluted	66.8	52.9	66.7	47.7

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (53.2)	$ 19.3	$ (4.4)	$ 499.2
Other comprehensive income (loss)
Changes in cumulative translation adjustment, net of tax	7.4	(66.1)	38.1	(66)
Changes in unrealized (losses) gains from investments, net of tax	(0.1)	(0.2)	0.1	(0.6)
Net unrealized gains on derivative instruments	40	4.4	23.1	4.6
Reclassification of net realized (gains) losses on derivative instruments included in net (loss) income	(4.3)	1	(10)	0.9
Total change in unrealized gains from cash flow hedges, net of tax	35.7	5.4	13.1	5.5
Comprehensive (loss) income	$ (10.2)	$ (41.6)	$ 46.9	$ 438.1

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional paid-in capital	Accumulated other comprehensive (loss) income	Retained earnings
Balance (in shares) at Jan. 02, 2022		41.7
Balance at Jan. 02, 2022	$ 1,929.4	$ 0	$ 279.8	$ 0.4	$ 1,649.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity compensation plans (in shares)		0.2
Issuance of common stock under equity compensation plans	6.4		6.4
Stock-based compensation expense	6.2		6.2
Tax withholdings related to vesting of stock-based awards (in shares)		(0.1)
Tax withholdings related to vesting of stock-based awards	(6.8)		(6.8)
Other comprehensive income (loss), net of tax	(0.2)			(0.2)
Net (loss) income	479.9				479.9
Balance (in shares) at Apr. 03, 2022		41.8
Balance at Apr. 03, 2022	2,414.9	$ 0	285.6	0.2	2,129.1
Balance (in shares) at Jan. 02, 2022		41.7
Balance at Jan. 02, 2022	1,929.4	$ 0	279.8	0.4	1,649.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	499.2
Balance (in shares) at Jul. 03, 2022		67
Balance at Jul. 03, 2022	4,919.6	$ 0	2,831.9	(60.7)	2,148.4
Balance (in shares) at Apr. 03, 2022		41.8
Balance at Apr. 03, 2022	2,414.9	$ 0	285.6	0.2	2,129.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity compensation plans (in shares)		0.1
Issuance of common stock under equity compensation plans	0.8		0.8
Stock-based compensation expense	14.7		14.7
Issuance of shares in connection with the Combinations (in shares)		25.1
Issuance of shares in connection with the Combinations	2,495.4		2,495.4
Issuance of equity replacement awards in connection with the Combinations	36.1		36.1
Tax withholdings related to vesting of stock-based awards (in shares)		0
Tax withholdings related to vesting of stock-based awards	(0.7)		(0.7)
Other comprehensive income (loss), net of tax	(60.9)			(60.9)
Net (loss) income	19.3				19.3
Balance (in shares) at Jul. 03, 2022		67
Balance at Jul. 03, 2022	4,919.6	$ 0	2,831.9	(60.7)	2,148.4
Balance (in shares) at Jan. 01, 2023		66.4
Balance at Jan. 01, 2023	4,934.6	$ 0	2,804.3	(67.6)	2,197.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity compensation plans (in shares)		0.3
Issuance of common stock under equity compensation plans	3.9	$ 0.1	3.8
Stock-based compensation expense	10.4		10.4
Tax withholdings related to vesting of stock-based awards (in shares)		(0.1)
Tax withholdings related to vesting of stock-based awards	(9.5)		(9.5)
Other comprehensive income (loss), net of tax	8.3			8.3
Net (loss) income	48.8				48.8
Balance (in shares) at Apr. 02, 2023		66.6
Balance at Apr. 02, 2023	4,996.5	$ 0.1	2,809	(59.3)	2,246.7
Balance (in shares) at Jan. 01, 2023		66.4
Balance at Jan. 01, 2023	4,934.6	$ 0	2,804.3	(67.6)	2,197.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(4.4)
Balance (in shares) at Jul. 02, 2023		66.8
Balance at Jul. 02, 2023	5,002.5	$ 0.1	2,825.2	(16.3)	2,193.5
Balance (in shares) at Apr. 02, 2023		66.6
Balance at Apr. 02, 2023	4,996.5	$ 0.1	2,809	(59.3)	2,246.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity compensation plans (in shares)		0.2
Issuance of common stock under equity compensation plans	5.5	$ 0	5.5
Stock-based compensation expense	13.7		13.7
Tax withholdings related to vesting of stock-based awards (in shares)		0
Tax withholdings related to vesting of stock-based awards	(3)		(3)
Other comprehensive income (loss), net of tax	43			43
Net (loss) income	(53.2)				(53.2)
Balance (in shares) at Jul. 02, 2023		66.8
Balance at Jul. 02, 2023	$ 5,002.5	$ 0.1	$ 2,825.2	$ (16.3)	$ 2,193.5

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
OPERATING ACTIVITIES
Net (loss) income	$ (4.4)	$ 499.2
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	228.7	62.8
Stock-based compensation expense	25.2	23.3
Net change in operating lease right-of-use assets and liabilities	0.2	9.9
Payment of accreted interest on contingent and deferred consideration	(9.7)	(10.4)
Loss on extinguishment of debt	0	24
Other non-cash, net	(0.7)	13.7
Changes in assets and liabilities:
Accounts receivable	214.5	232.3
Inventories	(86)	(36.1)
Prepaid expenses and other current and non-current assets	(37.8)	(9.8)
Accounts payable	(35)	(46.8)
Accrued payroll and related expenses	(57)	(9.1)
Income taxes payable	(46.3)	1.6
Other current and non-current liabilities	(33.4)	(29)
Net cash provided by operating activities	158.3	725.6
INVESTING ACTIVITIES
Acquisitions of property, plant, equipment and intangibles	(117.3)	(48.7)
Acquisition of businesses, net of cash and restricted cash acquired	0	(1,511.4)
Proceeds from government assistance allocated to fixed assets	2.8	10.4
Purchases of marketable securities	(50.6)	(33.6)
Proceeds from sale of marketable securities	53.9	28.2
Net cash used for investing activities	(111.2)	(1,555.1)
FINANCING ACTIVITIES
Proceeds from issuance of common stock	7.3	4.4
Proceeds from long-term borrowings, net of debt issuance costs	0	2,734.8
Payments on long-term borrowings and extinguishment costs	(123.8)	(2,284.4)
Payments of tax withholdings related to vesting of stock-based awards	(12.5)	(7.5)
Principal payments of acquisition contingent consideration	0	(4.2)
Principal payments of deferred consideration	(30.3)	(33.4)
Net cash (used for) provided by financing activities	(159.3)	409.7
Effect of exchange rates on cash	(2.1)	(2.4)
Net decrease in cash, cash equivalents and restricted cash	(114.3)	(422.2)
Cash, cash equivalents and restricted cash at beginning of period	293.9	802.8
Cash, cash equivalents and restricted cash at end of period	179.6	380.6
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Purchase of property, equipment and intangibles by incurring current liabilities	18.6	2.8
Capital expenditures to be reimbursed under a government contract	0	1.4
Transfer of instrument inventories to fixed assets	67.3	12.1
Reduction of other current liabilities upon issuance of restricted share units	$ 1.9	$ 2.9

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jul. 02, 2023
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Consolidated Financial Statements of QuidelOrtho Corporation and its subsidiaries (the “Company” or “QuidelOrtho”) have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (consisting of normal recurring accruals) have been included. The information at July 2, 2023, and for the three and six months ended July 2, 2023 and July 3, 2022, is unaudited. For further information, refer to the Company’s Consolidated Financial Statements and notes thereto for the fiscal year ended January 1, 2023 included in QuidelOrtho’s 2022 Annual Report on Form 10-K. Operating results for any quarter are historically seasonal in nature and are not necessarily indicative of the results expected for the full year. The Company follows the concept of a fiscal year that ends on the Sunday nearest to the end of the month of December, and fiscal quarters that end on the Sunday nearest to the end of the months of March, June and September. For 2023 and 2022, the Company’s fiscal year will end or has ended on December 31, 2023 and January 1, 2023, respectively. For 2023 and 2022, the Company’s second quarter ended on July 2, 2023 and July 3, 2022, respectively. The three and six months ended July 2, 2023 and July 3, 2022 each included 13 and 26 weeks, respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements There have been no accounting pronouncements issued or adopted during the six months ended July 2, 2023 that are expected to have a material impact on the Company’s financial statements.

Business Combination

Business Combination	6 Months Ended
	Jul. 02, 2023
Business Combination and Asset Acquisition [Abstract]
Business Combination	Business Combination On May 27, 2022, pursuant to a Business Combination Agreement entered into as of December 22, 2021 (the “BCA”), by and among Quidel Corporation (“Quidel”), Ortho Clinical Diagnostics Holdings plc (“Ortho”), QuidelOrtho (formerly Coronado Topco, Inc.), Orca Holdco, Inc., Laguna Merger Sub, Inc. and Orca Holdco 2, Inc., Quidel and Ortho consummated a business combination (the “Combinations”) and each of Quidel and Ortho became a wholly owned subsidiary of QuidelOrtho. As a result of the Combinations, QuidelOrtho became the successor issuer to Quidel. The Combinations enhance the Company’s revenue profile and expand the Company’s geographic footprint and product diversity. The Combinations were completed for a total consideration of approximately $4.3 billion, which included the fair value of equity issued based on the May 26, 2022 closing price of $99.60 per share of Quidel common stock. Former Ortho shareholders received $7.14 in cash and 0.1055 shares of QuidelOrtho common stock for each Ortho ordinary share. The Company funded the cash portion of the purchase price with cash on its balance sheet and a portion of the Term Loan proceeds from the Financing (each as defined in Note 8). The Combinations have been accounted for as a business combination, which requires that assets acquired and liabilities assumed be recognized at their fair value as of the date of the consummation of the Combinations, with Quidel considered the accounting and the legal acquirer. The assessment of the fair value of assets acquired and liabilities assumed was finalized in the second quarter of 2023. Measurement period adjustments decreased goodwill by $23.9 million in the six months ended July 2, 2023, reflecting (i) an increase of $22.3 million to deferred tax liability, (ii) an increase of $2.9 million to income tax payable and (iii) a decrease of $1.3 million in deferred tax asset. The related impact to net earnings that would have been recognized in previous periods if the adjustments were recognized as of the date of the consummation of the Combinations is immaterial to the Company’s consolidated financial statements. The following unaudited supplemental pro forma financial information shows the combined results of operations of the Company as if the Combinations had occurred on January 4, 2021, the beginning of the periods presented: Three Months Ended Six Months Ended (In millions) July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Pro forma total revenues $ 898.5 $ 669.1 $ 2,400.9 $ 1,551.2 Pro forma net income (loss) 22.3 (13.0) 500.8 116.7 This unaudited supplemental pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the Combinations been completed at the beginning of fiscal year 2021. In addition, the unaudited supplemental pro forma financial information is not a projection of the Company’s future results of operations, nor does it reflect the expected realization of any synergies or cost savings associated with the Combinations. The unaudited supplemental pro forma financial information includes adjustments for: • incremental intangible assets amortization expense based on the preliminary fair values of the identifiable intangible assets acquired; • incremental cost of sales related to the fair value step-up of inventory; • decreases in interest expense associated with the issuance of debt to finance the Combinations and to repay Ortho’s then-outstanding indebtedness, including the net impact of the removal of the amortization of the discount on Ortho’s indebtedness and the change in amortization of deferred financing fees; • the removal of loss on extinguishment of debt from Ortho’s results in fiscal year 2021 and the reclassification of loss on extinguishment of debt in fiscal years 2021 and 2022; • the reclassification of expense related to the accelerated vesting of certain stock awards of Ortho’s former chief executive officer; and • tax impacts related to the above adjustments.

Computation of Earnings Per Sha

Computation of Earnings Per Share	6 Months Ended
	Jul. 02, 2023
Earnings Per Share [Abstract]
Computation of Earnings Per Share	Computation of Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding. Diluted EPS is computed based on the sum of the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares of common stock consist of shares issuable from stock options and unvested restricted stock units (“RSUs”). Potentially dilutive shares of common stock from outstanding stock options and unvested RSUs are determined using the average share price for each period under the treasury stock method. The following table presents the calculation of the weighted-average shares used in computing basic and diluted EPS: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Basic weighted-average shares of common stock outstanding 66.8 52.2 66.7 47.0 Dilutive potential shares issuable from stock options and RSUs (1) — 0.7 — 0.7 Diluted weighted-average shares of common stock outstanding 66.8 52.9 66.7 47.7 (1) In the three and six months ended July 2, 2023, all potential shares of common stock issuable for stock options and RSUs were excluded from the dilutive calculations above because the effect of including them would have been anti-dilutive. The dilutive effect of potential shares of common stock issuable for stock options and RSUs on the weighted-average number of shares of common stock outstanding would have been as follows: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 2, 2023 Basic weighted-average shares of common stock outstanding 66.8 66.7 Dilutive potential shares issuable from stock options and RSUs 0.4 0.5 Diluted weighted-average shares of common stock outstanding 67.2 67.2 Stock options and RSUs where the combined exercise price and unrecognized stock-based compensation was greater than the average market price for the Company’s common stock were not included in the computations of diluted weighted-average

Revenue

Revenue	6 Months Ended
	Jul. 02, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Contract Balances Timing of revenue recognition may differ from timing of invoicing to customers. The Company records an asset when revenue is recognized prior to invoicing a customer (a “contract asset”). Contract assets are included within Prepaid expenses and other current assets in the Company’s unaudited Consolidated Balance Sheets and are transferred to accounts receivable when the right to payment becomes unconditional. The balance of contract assets recorded in the Company’s unaudited Consolidated Balance Sheets as of July 2, 2023 and January 1, 2023 was $59.3 million and $49.6 million, respectively. The contract asset balance consisted of the following components, all of which related to agreements acquired by the Company in connection with the Combinations: • a customer supply agreement under which the difference between the timing of invoicing and revenue recognition resulted in a contract asset of $5.7 million and $6.8 million as of July 2, 2023 and January 1, 2023, respectively; • 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 $44.7 million and $38.5 million as of July 2, 2023 and January 1, 2023, respectively; and • one of the Company’s contract manufacturing agreements that recognizes revenue as the products are manufactured resulted in a contract asset of $8.9 million and $4.3 million as of July 2, 2023 and January 1, 2023, 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 three and six months ended July 2, 2023. 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 non-current based on the timing of the transfer of control or performance of the service. The balance of the Company’s current deferred revenue was $41.2 million as of July 2, 2023 and $76.4 million as of January 1, 2023. The Company has one arrangement with a customer where the revenue is expected to be recognized beyond one year. The balance of the deferred revenue included in long-term liabilities was $13.5 million and $9.4 million as of July 2, 2023 and January 1, 2023, respectively, and was included in Other liabilities in the Consolidated Balance Sheets. The amount of deferred revenue as of January 1, 2023 that was recorded in Total revenues during the three and six months ended July 2, 2023 was $19.5 million and $68.5 million, respectively. Joint Business with Grifols In connection with the Combinations, the Company acquired the ongoing collaboration arrangement (the “Joint Business”) between Ortho and Grifols Diagnostic Solutions, Inc. (“Grifols”), under which Ortho and Grifols agreed to pursue a collaboration relating to Ortho’s Hepatitis and HIV diagnostics business. The governance of the Joint Business is shared through a supervisory board made up of equal representation by Ortho and Grifols, which is responsible for all significant decisions relating to the Joint Business that are not exclusively assigned to either Ortho or Grifols, as defined in the Joint Business agreement. The Company’s portion of the pre-tax net profit shared under the Joint Business was $6.1 million and $29.7 million during the three and six months ended July 2, 2023, respectively, and $5.6 million during the three and six months ended July 3, 2022. This included the Company’s portion of the pre-tax net profit of $5.5 million and $6.7 million during the three and six months ended July 2, 2023, respectively, and $3.6 million during the three and six months ended July 3, 2022, on sales transactions with third parties where the Company is the principal. The Company recognized revenues, cost of sales, excluding amortization of intangibles, and operating expenses, on a gross basis on these sales transactions in their respective lines in the unaudited Consolidated Statements of Income. The Company’s portion of the pre-tax net profit also included revenue from collaboration and royalty agreements of $0.6 million and $23.0 million during the three and six months ended July 2, 2023, respectively, and $2.0 million during the three and six months ended July 3, 2022, which is presented on a net basis within Total revenues. Disaggregation of Revenue The following table summarizes Total revenues by business unit: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Labs $ 361.4 $ 157.4 $ 732.1 $ 170.7 Transfusion Medicine 163.3 68.2 319.2 68.2 Point of Care 134.2 367.1 442.3 1,310.1 Molecular Diagnostics 6.2 20.7 17.6 66.7 Total revenues $ 665.1 $ 613.4 $ 1,511.2 $ 1,615.7 Concentration of Revenue and Credit Risk For the six months ended July 2, 2023, no customers individually accounted for more than 10% of Total revenues. For the six months ended July 3, 2022, one customer and one distributor represented 37% and 11%, respectively, of Total revenues. As of July 2, 2023, customers with a balance due in excess of 10% of Accounts receivable, net totaled $30.7 million. As of January 1, 2023, customers with balances due in excess of 10% of Accounts receivable, net totaled $161.9 million. Revenue related to our respiratory products accounted for 13% and 23% of Total revenues for the three and six months ended July 2, 2023, respectively, and 54% and 78% for the three and six months ended July 3, 2022, respectively.

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Jul. 02, 2023
Industry And Geographic Information [Abstract]
Segment and Geographic Information	Segment and Geographic Information Total revenues by reportable segment are as follows: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 North America $ 378.8 $ 438.2 $ 961.6 $ 1,399.7 EMEA 80.6 42.1 161.9 57.3 China 81.3 73.6 151.9 82.3 Other 124.4 59.5 235.8 76.4 Total revenues $ 665.1 $ 613.4 $ 1,511.2 $ 1,615.7 In the fourth quarter of 2022, the Company revised the internal allocation of certain global costs primarily between the North America segment and Corporate to better align costs that impact the Company as a whole. Prior periods have been revised to align with the current period presentation. The following table sets forth Adjusted EBITDA by segment and the reconciliations to (Loss) income before income taxes for the three and six months ended July 2, 2023 and July 3, 2022: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 North America $ 176.3 $ 239.2 $ 454.7 $ 952.6 EMEA 5.3 12.7 12.5 16.2 China 30.2 35.4 58.7 39.2 Other 36.3 24.8 58.1 34.3 Total segment Adjusted EBITDA 248.1 312.1 584.0 1,042.3 Corporate (1) (134.8) (93.9) (225.4) (183.2) Interest expense, net (36.5) (10.3) (73.2) (11.3) Depreciation and amortization (114.5) (47.5) (228.7) (62.8) Acquisition and integration costs (24.2) (80.2) (53.9) (83.2) Amortization of deferred cloud computing implementation costs (1.5) (1.3) (3.1) (2.3) EU medical device regulation transition costs (2) (0.7) (0.4) (1.5) (0.4) Impairment of long-lived assets (0.5) — (1.0) — Loss on investments (0.2) (0.8) (0.2) (0.8) Tax indemnification income 0.4 — 0.1 — Loss on extinguishment of debt — (24.0) — (24.0) Unwind inventory fair value adjustment — (11.2) — (11.2) Employee compensation charges and other costs — (0.5) (1.5) (0.5) Change in fair value of acquisition contingencies — (0.1) — (0.1) Derivative mark-to-market gain — 1.0 — 1.0 (Loss) income before income taxes $ (64.4) $ 42.9 $ (4.4) $ 663.5 (1) Primarily consists of costs related to executive and staff functions, including certain finance, human resources, manufacturing and information technology (“IT”) functions, which benefit the Company as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Company’s corporate function also includes debt and stock-based compensation associated with all employee stock-based awards. (2) Represents incremental consulting costs and research and development (“R&D”) manufacturing site costs to align compliance of Ortho’s existing, on-market products that were previously registered under the European In Vitro Diagnostics Directive regulatory framework with the requirements under the EU’s In Vitro Diagnostic Regulation, which generally apply from May 2022 onwards. The chief operating decision maker does not review capital expenditures, total depreciation and amortization or assets by segment, and therefore this information has been excluded as it does not comprise part of management’s key performance metrics.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 02, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company calculates its interim income tax provision in accordance with ASC 270, Interim Reporting , and ASC 740, Accounting for Income Taxes . At the end of each interim period, the Company estimates its annual effective tax rate and applies that rate to its ordinary quarterly earnings to calculate the tax related to ordinary income. The tax effects for other items that are excluded from ordinary income are discretely calculated and recognized in the period in which they occur. For the three months ended July 2, 2023, the Company recognized an income tax benefit of $11.2 million in relation to loss before income taxes of $64.4 million, resulting in an effective benefit tax rate of 17.4%. For the three months ended July 3, 2022, the Company recognized a provision for income taxes of $23.6 million in relation to income before income taxes of $42.9 million, resulting in an effective tax rate of 55.0%. For the three months ended July 2, 2023, the effective tax rate for the period differs from the U.S. federal statutory rate primarily due to non-U.S. earnings being taxed at rates that are different than the U.S. statutory rate, operating losses in certain subsidiaries not being benefited due to the establishment of valuation allowances, R&D credits and foreign tax credits, partially offset by foreign exchange losses and Global Intangible Low-Tax Income. For the three months ended July 3, 2022, the effective tax rate was impacted primarily by income taxes owed in U.S. states. For the six months ended July 2, 2023, the recognized amount of income tax benefit was not material in relation to loss before income taxes of $4.4 million, resulting in an effective benefit tax rate of 0.7%. For the six months ended July 3, 2022, the Company recognized a provision for income taxes of $164.3 million in relation to income before income taxes of $663.5 million, resulting in an effective tax rate of 24.8%. For the six months ended July 2, 2023, the effective tax rate for the period differs from the U.S. federal statutory rate primarily due to net operating losses in certain subsidiaries not being benefited due to the establishment of valuation allowances and Global Intangible Low-Tax Income, partially offset by U.S. earnings being taxed at rates that are different than the U.S. statutory rate, R&D credit, Foreign Tax Credits and foreign exchange losses. For the six months ended July 3, 2022, the effective tax rate was primarily impacted by incomes taxes owed in the U.S. states. The balance of unrecognized tax benefits at July 2, 2023, not including interest and penalties, was $38.8 million, of which $27.6 million could 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 July 2, 2023, the Company had approximately $8.1 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 decrease by $14.3 million. The Company is subject to periodic audits by domestic and foreign tax authorities. Due to the carryforward of unutilized credits, the Company’s federal tax years from 2012 and onwards are subject to examination by the U.S. authorities. The Company’s state and foreign tax years for 2001 and onwards are subject to examination by applicable tax authorities. The Company believes that it has appropriate support for the income tax positions taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax laws applied to the facts of each matter. Indemnification Assets

Balance Sheet Account Details

Balance Sheet Account Details	6 Months Ended
	Jul. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Account Details	Balance Sheet Account Details Cash, Cash Equivalents and Restricted Cash (In millions) July 2, 2023 January 1, 2023 Cash and cash equivalents $ 178.6 $ 292.9 Restricted cash included in Other assets 1.0 1.0 Cash, cash equivalents and restricted cash $ 179.6 $ 293.9 Marketable Securities The following table is a summary of marketable securities: July 2, 2023 January 1, 2023 (In millions) Amortized Cost Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Losses Fair Value Corporate bonds $ 34.7 $ (0.3) $ 34.4 $ 40.5 $ (0.5) $ 40.0 Corporate asset-backed securities 8.7 — 8.7 6.7 — 6.7 U.S. government securities — — — 2.0 — 2.0 Agency bonds — — — 1.0 — 1.0 Sovereign government bonds 2.0 — 2.0 1.9 — 1.9 Foreign and other — — — 0.5 — 0.5 Total marketable securities, current 45.4 (0.3) 45.1 52.6 (0.5) 52.1 Corporate bonds, non-current 17.6 (0.1) 17.5 13.3 (0.1) 13.2 Corporate asset-backed securities, non-current 5.8 (0.1) 5.7 7.9 (0.1) 7.8 Agency bonds, non-current 1.5 — 1.5 — — — Total marketable securities $ 70.3 $ (0.5) $ 69.8 $ 73.8 $ (0.7) $ 73.1 Accounts Receivable, Net Accounts receivables primarily consisted of trade accounts receivables with maturities of one year or less and are presented net of reserves: (In millions) July 2, 2023 January 1, 2023 Accounts receivable $ 317.9 $ 543.0 Allowance for contract rebates and discounts (58.5) (77.1) Allowance for doubtful accounts (12.7) (12.0) Total accounts receivable, net $ 246.7 $ 453.9 Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Inventories consisted of the following: (In millions) July 2, 2023 January 1, 2023 Raw materials $ 203.2 $ 185.2 Work-in-process (materials, labor and overhead) 107.2 82.7 Finished goods (materials, labor and overhead) 273.2 295.1 Total inventories (1) $ 583.6 $ 563.0 Inventories $ 542.2 $ 524.1 Other assets (2) 41.4 38.9 Total inventories $ 583.6 $ 563.0 (1) Includes adjustment of approximately $39 million in the six months ended July 2, 2023 due to changes in estimates to decrease inventory obsolescence reserves from the prior period. (2) Other assets includes inventory expected to remain on hand beyond one year. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: (In millions) July 2, 2023 January 1, 2023 Prepaid expenses $ 95.9 $ 96.7 Income taxes and other tax receivables 81.5 38.6 Contract assets 59.3 49.6 Other receivables 39.1 44.3 Derivatives 16.6 22.0 Other 3.1 0.9 Total prepaid expenses and other current assets $ 295.5 $ 252.1 Goodwill Changes in goodwill were as follows: (In millions) North America EMEA China Other Total Balance at January 1, 2023 $ 1,547.7 $ 358.6 $ 118.1 $ 452.4 $ 2,476.8 Purchase accounting adjustments (13.4) (4.1) (1.3) (5.1) (23.9) Foreign currency translation 0.3 10.2 (5.7) 13.2 18.0 Balance at July 2, 2023 $ 1,534.6 $ 364.7 $ 111.1 $ 460.5 $ 2,470.9 Other Current Liabilities Other current liabilities consisted of the following: (In millions) July 2, 2023 January 1, 2023 Deferred revenue $ 41.2 $ 76.4 Accrued commissions and rebates 51.3 55.1 Accrued other taxes payable 34.0 9.3 Operating lease liabilities 26.3 24.4 Derivatives 10.5 19.7 Deferred consideration — 39.3 Other 109.8 101.2 Total other current liabilities $ 273.1 $ 325.4

Long-term Borrowings

Long-term Borrowings	6 Months Ended
	Jul. 02, 2023
Debt Disclosure [Abstract]
Long-term Borrowings	Long-term Borrowings The components of borrowings were as follows: (In millions) July 2, 2023 January 1, 2023 Term Loan $ 2,523.8 $ 2,646.9 Financing lease obligation 0.6 0.8 Other long-term borrowings 0.8 1.2 Unamortized deferred financing costs (9.3) (10.6) Total borrowings 2,515.9 2,638.3 Less: current portion (207.4) (207.5) Long-term borrowings $ 2,308.5 $ 2,430.8 The credit agreement, dated May 27, 2022, by and among the Company, as borrower, Bank of America, N.A., as administrative agent and swing line lender, and the other lenders and L/C issuers party thereto (the “Credit Agreement”) consists of a $2,750.0 million senior secured term loan facility (the “Term Loan”) and an $800.0 million revolving credit facility (the “Revolving Credit Facility” and with the Term Loan, the “Financing”). As of July 2, 2023 and January 1, 2023, there were no amounts outstanding under the Revolving Credit Facility. As of July 2, 2023, letters of credit issued under the Revolving Credit Facility totaled $12.9 million, which reduced the available amount under the Revolving Credit Facility to $787.1 million. During the six months ended July 2, 2023, the Company made $123.1 million in payments on the Term Loan, including a voluntary prepayment of $20.0 million. The Credit Agreement contains affirmative and negative covenants that are customary for credit agreements of this nature. The negative covenants include, among other things, limitations on asset sales, mergers, indebtedness, liens, investments and transactions with affiliates. The Credit Agreement contains two financial covenants: (i) a maximum Consolidated Leverage Ratio (as defined in the Credit Agreement) as of the last day of each fiscal quarter of (a) 4.50 to 1.00 for the first four fiscal quarters ending after the closing date of the Credit Agreement (the “Initial Measurement Period”), (b) 4.00 to 1.00 for the first four fiscal quarters ending after the Initial Measurement Period and (c) 3.50 to 1.00 for each fiscal quarter thereafter; and (ii) a minimum Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of 3.00 to 1.00 as of the end of any fiscal quarter for the most recently completed four fiscal quarters. The Company was in compliance with the financial covenants as of July 2, 2023. The following table provides the detailed amounts within Interest expense, net for the three and six months ended July 2, 2023 and July 3, 2022: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Term Loan $ 44.2 $ 8.4 $ 85.1 $ 8.4 Revolving Credit Facility 0.5 0.3 1.0 0.4 Amortization of deferred financing costs 0.8 0.2 1.6 0.3 Derivative instruments and other (7.2) 1.8 (11.7) 2.9 Interest income (1.8) (0.4) (2.8) (0.7) Interest expense, net $ 36.5 $ 10.3 $ 73.2 $ 11.3

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jul. 02, 2023
Equity [Abstract]
Stock-Based Compensation	Stock-based Compensation Stock-based compensation expense was as follows: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Cost of sales $ 1.1 $ 0.6 $ 2.1 $ 1.3 Research and development 1.3 1.3 2.6 2.4 Selling, marketing and administrative 10.0 8.0 17.2 13.3 Acquisition and integration costs 4.6 6.0 9.1 6.3 Total stock-based compensation expense $ 17.0 $ 15.9 $ 31.0 $ 23.3 The table above includes compensation expense related to liability-classified awards of $2.8 million and $5.8 million for the three and six months ended July 2, 2023, respectively, and $10.9 million for the three and six months ended July 3, 2022, which has been or is expected to be settled in cash. These awards represent the $7.14 per share cash settled portion of the replacement awards issued in connection with the Combinations. The Company granted 253 thousand stock options during the six months ended July 2, 2023. As of July 2, 2023, total unrecognized compensation expense related to stock options was approximately $25.4 million and the related weighted-average period over which it is expected to be recognized is approximately 2.0 years. The maximum contractual term of the Company’s stock options is ten years. The estimated fair value of each stock option was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for the option grants: Six Months Ended July 2, 2023 July 3, 2022 Risk-free interest rate 3.52 % 1.99 % Expected option life (in years) 5.53 4.89 Volatility rate 57 % 58 % Dividend rate 0 % 0 % Weighted-average grant date fair value $48.17 $50.86 In January 2023, the Compensation Committee of the Company’s Board of Directors approved a modification to the vesting terms of certain stock options that were previously granted by Ortho to certain Ortho employees, such that the stock options will vest on December 31, 2023. The modification resulted in an additional $3.1 million and $5.1 million of stock-based compensation expense recognized during the three and six months ended July 2, 2023, respectively. The total unrecognized expense relating to unvested shares for these stock options as of July 2, 2023 was $6.0 million and will be recognized through December 31, 2023.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 02, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company is involved in litigation and other legal proceedings, including matters related to product liability claims, commercial disputes and intellectual property claims, as well as regulatory, employment, and other claims related to its business. The Company accrues for legal claims when, and to the extent that, amounts associated with the claims become probable and are reasonably estimable. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from these matters are inherently difficult to predict. The actual costs of resolving legal claims may be substantially higher or lower than the amounts accrued for those claims. For those matters as to which the Company is not able to estimate a possible loss or range of loss, the Company is not able to determine whether the loss will have a material adverse effect on its business, financial condition, results of operations or liquidity. Management believes that all such current legal actions, in the aggregate, are not expected to have a material adverse effect on the Company. However, the resolution of, or increase in any accruals for, one or more matters may have a material adverse effect on the Company’s results of operations and cash flows.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 02, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods: July 2, 2023 January 1, 2023 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 6.1 $ — $ — $ 6.1 $ 0.6 $ 2.1 $ — $ 2.7 Marketable securities — 69.8 — 69.8 2.0 71.1 — 73.1 Derivative assets — 32.6 — 32.6 — 22.0 — 22.0 Total assets measured at fair value $ 6.1 $ 102.4 $ — $ 108.5 $ 2.6 $ 95.2 $ — $ 97.8 Liabilities: Derivative liabilities $ — $ 10.5 $ — $ 10.5 $ — $ 21.8 $ — $ 21.8 Contingent consideration — — 0.1 0.1 — — 0.1 0.1 Deferred consideration — — — — — 39.3 — 39.3 Total liabilities measured at fair value $ — $ 10.5 $ 0.1 $ 10.6 $ — $ 61.1 $ 0.1 $ 61.2 There were no transfers of assets or liabilities into or out of Level 3 of the fair value hierarchy during the three and six months ended July 2, 2023 and fiscal year 2022. Cash equivalents consist of funds held in money market accounts that are valued using quoted prices in active markets for identical instruments and highly liquid corporate debt securities with maturities within three months from purchase. Marketable securities consist of investment-grade corporate and government debt securities, corporate asset-backed securities and commercial paper. Derivative financial instruments are based on observable inputs that are corroborated by market data. Observable inputs include broker quotes, daily market foreign currency rates and forward pricing curves . In connection with the acquisition of the B-type Natriuretic Peptide (“BNP”) assay business run on Beckman Coulter analyzers (“BNP Business”) from Alere Inc., the Company paid its last annual installment of $40.0 million during the three months ended July 2, 2023. Financial Instruments Not Measured at Fair Value The estimated fair value of the Company’s borrowings under the Term Loan was $2,476.4 million at July 2, 2023, compared to the carrying amount, excluding debt issuance costs, of $2,523.8 million. The estimate of fair value is generally based on the quoted market prices for similar issuances of long-term debt with the same maturities, which is classified as a Level 2 input.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
	Jul. 02, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities The Company selectively uses derivative and non-derivative instruments to manage market risk associated with changes in interest rates and foreign currency exchange rates. The use of derivatives is intended for hedging purposes only, and the Company does not enter into derivative transactions for speculative purposes. Credit risk represents the Company’s gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract. The Company generally enters into master netting arrangements that reduce credit risk by permitting net settlement of transactions with the same counterparty. The Company does not have any derivative instruments with credit-risk related contingent features that would require it to post collateral. Interest Rate Hedging Instruments The Company’s interest rate risk relates primarily to interest rate exposures on variable rate debt, including the Revolving Credit Facility and Term Loan. See Note 8 for additional information on the currently outstanding components of the Revolving Credit Facility and Term Loan. The Company entered into interest rate swap agreements to hedge the related risk of the variability to the Company’s cash flows due to the rates specified for these credit facilities. The Company designates its interest rate swaps as cash flow hedges. The Company records gains and losses due to changes in fair value of the derivatives within Other comprehensive income (loss) (“OCI”) and reclassifies these amounts to Interest expense, net in the same period or periods for which the underlying hedged transaction affects earnings. In the event the Company determines the hedged transaction is no longer probable to occur or concludes the hedge relationship is no longer effective, the hedge is prospectively de-designated. Pre-tax unrealized gains of $29.4 million are expected to be reclassified from OCI to earnings in the next 12 months. The following table summarizes the Company’s interest rate derivative agreements as of July 2, 2023, all of which were interest rate swaps: Notional Amount (In millions) (1) Description Hedge Designation Effective Date Expiration Date $ 500.0 Pay 1.58% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge May 29, 2022 December 31, 2023 $ 397.2 Pay 3.765% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 $ 144.4 Pay 3.7725% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 $ 216.7 Pay 3.7675% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 $ 288.9 Pay 3.7575% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 $ 252.8 Pay 3.7725% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 (1) The notional value of interest rate swap contracts with an effective date of December 30, 2022 is expected to increase to $1.8 billion on December 29, 2023. Currency Hedging Instruments The Company has currency risk exposures relating primarily to foreign currency denominated monetary assets and liabilities and forecasted foreign currency denominated intercompany and third-party transactions. The Company uses foreign currency forward contracts and may use option contracts and cross currency swaps to manage its currency risk exposures. The Company’s foreign currency forward contracts are denominated primarily in Australian Dollar, Brazilian Real, British Pound, Canadian Dollar, Chilean Peso, Chinese Yuan/Renminbi, Euro, Indian Rupee, Japanese Yen, Mexican Peso, Swiss Franc and the Thai Baht. The Company designates certain foreign currency forward contracts as cash flow hedges. The Company records gains and losses due to changes in fair value of the derivatives within OCI and reclassifies these amounts to Total revenues and Cost of sales, excluding amortization of intangibles in the same period or periods for which the underlying hedged transaction affects earnings. In the event the Company determines the hedged transaction is no longer probable to occur or concludes the hedge relationship is no longer effective, the hedge is prospectively de-designated. The pre-tax unrealized loss of $5.4 million within OCI as of July 2, 2023 is expected to be reclassified to earnings in the next 12 months. The Company also enters into foreign currency forward contracts that are not part of designated hedging relationships and which are intended to mitigate exchange rate risk of monetary assets and liabilities and related forecasted transactions. The Company records these non-designated derivatives at mark-to-market with gains and losses recognized in earnings within Other expense, net. The following table provides details of the currency hedging instruments outstanding as of July 2, 2023: Description Notional Amount Hedge Designation Foreign currency forward contracts $ 275.1 Cash Flow Hedge Foreign currency forward contracts $ 589.9 Non-designated The following table summarizes pre-tax gains and losses from designated derivative and non-derivative instruments within Accumulated other comprehensive (loss) income (“AOCI”) for the three and six months ended July 2, 2023: Designated Hedging Instruments (In millions) Amount of Loss (Gain) Recognized in OCI on Hedges Location of Amounts Reclassified From AOCI Into Income Amount of Loss (Gain) Reclassified From AOCI Into Income Three Months Ended July 2, 2023 Foreign currency forward contracts (sales) $ (0.4) Total revenues $ 1.8 Foreign currency forward contracts (purchases) $ (2.1) Cost of sales, excluding amortization of intangibles $ 1.3 Interest rate derivatives $ (47.0) Interest expense, net $ (7.4) Six Months Ended July 2, 2023 Foreign currency forward contracts (sales) $ 1.7 Total revenues $ 0.9 Foreign currency forward contracts (purchases) $ (2.1) Cost of sales, excluding amortization of intangibles $ 1.7 Interest rate derivatives $ (26.1) Interest expense, net $ (12.6) Gains and losses from designated derivative and non-derivative instruments within AOCI for the three and six months ended July 3, 2022 were not material. Fair value gains on foreign currency forward contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in Other expense, net and were $3.2 million and $0.5 million for the three and six months ended July 2, 2023, respectively. Fair value gains and losses that do not qualify for hedge accounting treatment were not material for the three and six months ended July 3, 2022. The following table summarizes the fair value of designated and non-designated hedging instruments recognized within the unaudited Consolidated Balance Sheets as of July 2, 2023 and January 1, 2023: (In millions) July 2, 2023 January 1, 2023 Designated cash flow hedges Interest rate derivatives: Prepaid expenses and other current assets $ 9.4 $ 15.9 Other assets $ 16.0 $ — Other liabilities $ — $ 2.1 Foreign currency forward contracts: Prepaid expenses and other current assets $ 3.6 $ 4.6 Other current liabilities $ 7.7 $ 14.3 Non-designated hedging instruments Foreign currency forward contracts: Prepaid expenses and other current assets $ 3.6 $ 1.5 Other current liabilities $ 2.8 $ 5.4

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jul. 02, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Quotient Limited As a result of the consummation of the Combinations, the Company acquired Ortho’s Letter Agreement (the “Letter Agreement”), entered into in September 2020 with Quotient Limited (“Quotient”), in which Ortho partnered with Quotient to commercialize, when approved, Quotient’s next generation product in immunohematology, a transfusion diagnostic patient immunohematology microarray intended for use with Quotient’s MosaiQ ® instruments. Under the Letter Agreement, the Company was required to make certain milestone payments to Quotient as specified milestones and benchmarks were achieved. Quotient subsequently revised its business strategy to pause development and commercialization of its MosaiQ testing solutions

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 02, 2023
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The balance of Accumulated Other Comprehensive Loss, net of tax, was as follows for the three and six months ended July 2, 2023 and July 3, 2022: Three Months Ended July 2, 2023 (In millions) Pension and Other Post- Cash Flow Hedges Available-for-Sale Investments Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income Balance at April 2, 2023 $ 0.7 $ (21.1) $ (0.3) $ (38.6) $ (59.3) Current period deferrals (1) — 40.0 (0.1) 7.4 47.3 Amounts reclassified to net income — (4.3) — — (4.3) Net change — 35.7 (0.1) 7.4 43.0 Balance at July 2, 2023 $ 0.7 $ 14.6 $ (0.4) $ (31.2) $ (16.3) Six Months Ended July 2, 2023 Pension and Other Post- Cash Flow Hedges Available-for-Sale Investments Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income Balance at January 1, 2023 $ 0.7 $ 1.5 $ (0.5) $ (69.3) $ (67.6) Current period deferrals (1) — 23.1 0.1 38.1 61.3 Amounts reclassified to net income — (10.0) — — (10.0) Net change — 13.1 0.1 38.1 51.3 Balance at July 2, 2023 $ 0.7 $ 14.6 $ (0.4) $ (31.2) $ (16.3) Three Months Ended July 3, 2022 (In millions) Cash Flow Hedges Available-for-Sale Investments Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance at April 3, 2022 $ 0.1 $ (0.5) $ 0.6 $ 0.2 Current period deferrals (2) 4.4 (0.2) (66.1) (61.9) Amounts reclassified to net income 1.0 — — 1.0 Net change 5.4 (0.2) (66.1) (60.9) Balance at July 3, 2022 $ 5.5 $ (0.7) $ (65.5) $ (60.7) Six Months Ended July 3, 2022 Cash Flow Hedges Available-for-Sale Investments Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance at January 2, 2022 $ — $ (0.1) $ 0.5 $ 0.4 Current period deferrals (2) 4.6 (0.6) (66.0) (62.0) Amounts reclassified to net income 0.9 — — 0.9 Net change 5.5 (0.6) (66.0) (61.1) Balance at July 3, 2022 $ 5.5 $ (0.7) $ (65.5) $ (60.7) (1) Includes tax impact of $9.5 million and $3.4 million related to cash flow hedges for the three and six months ended July 2, 2023, respectively.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 02, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited Consolidated Financial Statements of QuidelOrtho Corporation and its subsidiaries (the “Company” or “QuidelOrtho”) have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (consisting of normal recurring accruals) have been included. The information at July 2, 2023, and for the three and six months ended July 2, 2023 and July 3, 2022, is unaudited. For further information, refer to the Company’s Consolidated Financial Statements and notes thereto for the fiscal year ended January 1, 2023 included in QuidelOrtho’s 2022 Annual Report on Form 10-K. Operating results for any quarter are historically seasonal in nature and are not necessarily indicative of the results expected for the full year. The Company follows the concept of a fiscal year that ends on the Sunday nearest to the end of the month of December, and fiscal quarters that end on the Sunday nearest to the end of the months of March, June and September. For 2023 and 2022, the Company’s fiscal year will end or has ended on December 31, 2023 and January 1, 2023, respectively. For 2023 and 2022, the Company’s second quarter ended on July 2, 2023 and July 3, 2022, respectively. The three and six months ended July 2, 2023 and July 3, 2022 each included 13 and 26 weeks, respectively.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There have been no accounting pronouncements issued or adopted during the six months ended July 2, 2023 that are expected to have a material impact on the Company’s financial statements.

Business Combination (Tables)

Business Combination (Tables)	6 Months Ended
	Jul. 02, 2023
Business Combination and Asset Acquisition [Abstract]
Pro Forma Financial Information	The following unaudited supplemental pro forma financial information shows the combined results of operations of the Company as if the Combinations had occurred on January 4, 2021, the beginning of the periods presented: Three Months Ended Six Months Ended (In millions) July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Pro forma total revenues $ 898.5 $ 669.1 $ 2,400.9 $ 1,551.2 Pro forma net income (loss) 22.3 (13.0) 500.8 116.7

Computation of Earnings Per S_2

Computation of Earnings Per Share (Tables)	6 Months Ended
	Jul. 02, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the calculation of the weighted-average shares used in computing basic and diluted EPS: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Basic weighted-average shares of common stock outstanding 66.8 52.2 66.7 47.0 Dilutive potential shares issuable from stock options and RSUs (1) — 0.7 — 0.7 Diluted weighted-average shares of common stock outstanding 66.8 52.9 66.7 47.7 (1) In the three and six months ended July 2, 2023, all potential shares of common stock issuable for stock options and RSUs were excluded from the dilutive calculations above because the effect of including them would have been anti-dilutive. The dilutive effect of potential shares of common stock issuable for stock options and RSUs on the weighted-average number of shares of common stock outstanding would have been as follows: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 2, 2023 Basic weighted-average shares of common stock outstanding 66.8 66.7 Dilutive potential shares issuable from stock options and RSUs 0.4 0.5 Diluted weighted-average shares of common stock outstanding 67.2 67.2

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 02, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes Total revenues by business unit: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Labs $ 361.4 $ 157.4 $ 732.1 $ 170.7 Transfusion Medicine 163.3 68.2 319.2 68.2 Point of Care 134.2 367.1 442.3 1,310.1 Molecular Diagnostics 6.2 20.7 17.6 66.7 Total revenues $ 665.1 $ 613.4 $ 1,511.2 $ 1,615.7

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	6 Months Ended
	Jul. 02, 2023
Industry And Geographic Information [Abstract]
Revenue from External Customers by Geographic Areas	Total revenues by reportable segment are as follows: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 North America $ 378.8 $ 438.2 $ 961.6 $ 1,399.7 EMEA 80.6 42.1 161.9 57.3 China 81.3 73.6 151.9 82.3 Other 124.4 59.5 235.8 76.4 Total revenues $ 665.1 $ 613.4 $ 1,511.2 $ 1,615.7
Schedule of Segment Reporting Information, by Segment	The following table sets forth Adjusted EBITDA by segment and the reconciliations to (Loss) income before income taxes for the three and six months ended July 2, 2023 and July 3, 2022: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 North America $ 176.3 $ 239.2 $ 454.7 $ 952.6 EMEA 5.3 12.7 12.5 16.2 China 30.2 35.4 58.7 39.2 Other 36.3 24.8 58.1 34.3 Total segment Adjusted EBITDA 248.1 312.1 584.0 1,042.3 Corporate (1) (134.8) (93.9) (225.4) (183.2) Interest expense, net (36.5) (10.3) (73.2) (11.3) Depreciation and amortization (114.5) (47.5) (228.7) (62.8) Acquisition and integration costs (24.2) (80.2) (53.9) (83.2) Amortization of deferred cloud computing implementation costs (1.5) (1.3) (3.1) (2.3) EU medical device regulation transition costs (2) (0.7) (0.4) (1.5) (0.4) Impairment of long-lived assets (0.5) — (1.0) — Loss on investments (0.2) (0.8) (0.2) (0.8) Tax indemnification income 0.4 — 0.1 — Loss on extinguishment of debt — (24.0) — (24.0) Unwind inventory fair value adjustment — (11.2) — (11.2) Employee compensation charges and other costs — (0.5) (1.5) (0.5) Change in fair value of acquisition contingencies — (0.1) — (0.1) Derivative mark-to-market gain — 1.0 — 1.0 (Loss) income before income taxes $ (64.4) $ 42.9 $ (4.4) $ 663.5 (1) Primarily consists of costs related to executive and staff functions, including certain finance, human resources, manufacturing and information technology (“IT”) functions, which benefit the Company as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Company’s corporate function also includes debt and stock-based compensation associated with all employee stock-based awards.

Balance Sheet Account Details (

Balance Sheet Account Details (Tables)	6 Months Ended
	Jul. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash (In millions) July 2, 2023 January 1, 2023 Cash and cash equivalents $ 178.6 $ 292.9 Restricted cash included in Other assets 1.0 1.0 Cash, cash equivalents and restricted cash $ 179.6 $ 293.9
Marketable Securities	The following table is a summary of marketable securities: July 2, 2023 January 1, 2023 (In millions) Amortized Cost Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Losses Fair Value Corporate bonds $ 34.7 $ (0.3) $ 34.4 $ 40.5 $ (0.5) $ 40.0 Corporate asset-backed securities 8.7 — 8.7 6.7 — 6.7 U.S. government securities — — — 2.0 — 2.0 Agency bonds — — — 1.0 — 1.0 Sovereign government bonds 2.0 — 2.0 1.9 — 1.9 Foreign and other — — — 0.5 — 0.5 Total marketable securities, current 45.4 (0.3) 45.1 52.6 (0.5) 52.1 Corporate bonds, non-current 17.6 (0.1) 17.5 13.3 (0.1) 13.2 Corporate asset-backed securities, non-current 5.8 (0.1) 5.7 7.9 (0.1) 7.8 Agency bonds, non-current 1.5 — 1.5 — — — Total marketable securities $ 70.3 $ (0.5) $ 69.8 $ 73.8 $ (0.7) $ 73.1
Accounts Receivable, Net	Accounts receivables primarily consisted of trade accounts receivables with maturities of one year or less and are presented net of reserves: (In millions) July 2, 2023 January 1, 2023 Accounts receivable $ 317.9 $ 543.0 Allowance for contract rebates and discounts (58.5) (77.1) Allowance for doubtful accounts (12.7) (12.0) Total accounts receivable, net $ 246.7 $ 453.9
Inventories	Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Inventories consisted of the following: (In millions) July 2, 2023 January 1, 2023 Raw materials $ 203.2 $ 185.2 Work-in-process (materials, labor and overhead) 107.2 82.7 Finished goods (materials, labor and overhead) 273.2 295.1 Total inventories (1) $ 583.6 $ 563.0 Inventories $ 542.2 $ 524.1 Other assets (2) 41.4 38.9 Total inventories $ 583.6 $ 563.0 (1) Includes adjustment of approximately $39 million in the six months ended July 2, 2023 due to changes in estimates to decrease inventory obsolescence reserves from the prior period. (2) Other assets includes inventory expected to remain on hand beyond one year.
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following: (In millions) July 2, 2023 January 1, 2023 Prepaid expenses $ 95.9 $ 96.7 Income taxes and other tax receivables 81.5 38.6 Contract assets 59.3 49.6 Other receivables 39.1 44.3 Derivatives 16.6 22.0 Other 3.1 0.9 Total prepaid expenses and other current assets $ 295.5 $ 252.1
Goodwill	Changes in goodwill were as follows: (In millions) North America EMEA China Other Total Balance at January 1, 2023 $ 1,547.7 $ 358.6 $ 118.1 $ 452.4 $ 2,476.8 Purchase accounting adjustments (13.4) (4.1) (1.3) (5.1) (23.9) Foreign currency translation 0.3 10.2 (5.7) 13.2 18.0 Balance at July 2, 2023 $ 1,534.6 $ 364.7 $ 111.1 $ 460.5 $ 2,470.9
Other Current Liabilities	Other current liabilities consisted of the following: (In millions) July 2, 2023 January 1, 2023 Deferred revenue $ 41.2 $ 76.4 Accrued commissions and rebates 51.3 55.1 Accrued other taxes payable 34.0 9.3 Operating lease liabilities 26.3 24.4 Derivatives 10.5 19.7 Deferred consideration — 39.3 Other 109.8 101.2 Total other current liabilities $ 273.1 $ 325.4

Long-term Borrowings (Tables)

Long-term Borrowings (Tables)	6 Months Ended
	Jul. 02, 2023
Debt Disclosure [Abstract]
Schedule of Debt	The components of borrowings were as follows: (In millions) July 2, 2023 January 1, 2023 Term Loan $ 2,523.8 $ 2,646.9 Financing lease obligation 0.6 0.8 Other long-term borrowings 0.8 1.2 Unamortized deferred financing costs (9.3) (10.6) Total borrowings 2,515.9 2,638.3 Less: current portion (207.4) (207.5) Long-term borrowings $ 2,308.5 $ 2,430.8
Schedule of Interest Expense	The following table provides the detailed amounts within Interest expense, net for the three and six months ended July 2, 2023 and July 3, 2022: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Term Loan $ 44.2 $ 8.4 $ 85.1 $ 8.4 Revolving Credit Facility 0.5 0.3 1.0 0.4 Amortization of deferred financing costs 0.8 0.2 1.6 0.3 Derivative instruments and other (7.2) 1.8 (11.7) 2.9 Interest income (1.8) (0.4) (2.8) (0.7) Interest expense, net $ 36.5 $ 10.3 $ 73.2 $ 11.3

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jul. 02, 2023
Equity [Abstract]
Compensation Expense Related to Stock-Based Compensation Plans	Stock-based compensation expense was as follows: Three Months Ended Six Months Ended (In millions) July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Cost of sales $ 1.1 $ 0.6 $ 2.1 $ 1.3 Research and development 1.3 1.3 2.6 2.4 Selling, marketing and administrative 10.0 8.0 17.2 13.3 Acquisition and integration costs 4.6 6.0 9.1 6.3 Total stock-based compensation expense $ 17.0 $ 15.9 $ 31.0 $ 23.3
Estimated Fair Value of Each Stock Option Award	The estimated fair value of each stock option was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for the option grants: Six Months Ended July 2, 2023 July 3, 2022 Risk-free interest rate 3.52 % 1.99 % Expected option life (in years) 5.53 4.89 Volatility rate 57 % 58 % Dividend rate 0 % 0 % Weighted-average grant date fair value $48.17 $50.86

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 02, 2023
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods: July 2, 2023 January 1, 2023 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 6.1 $ — $ — $ 6.1 $ 0.6 $ 2.1 $ — $ 2.7 Marketable securities — 69.8 — 69.8 2.0 71.1 — 73.1 Derivative assets — 32.6 — 32.6 — 22.0 — 22.0 Total assets measured at fair value $ 6.1 $ 102.4 $ — $ 108.5 $ 2.6 $ 95.2 $ — $ 97.8 Liabilities: Derivative liabilities $ — $ 10.5 $ — $ 10.5 $ — $ 21.8 $ — $ 21.8 Contingent consideration — — 0.1 0.1 — — 0.1 0.1 Deferred consideration — — — — — 39.3 — 39.3 Total liabilities measured at fair value $ — $ 10.5 $ 0.1 $ 10.6 $ — $ 61.1 $ 0.1 $ 61.2

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
	Jul. 02, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Interest Rate Derivatives	The following table summarizes the Company’s interest rate derivative agreements as of July 2, 2023, all of which were interest rate swaps: Notional Amount (In millions) (1) Description Hedge Designation Effective Date Expiration Date $ 500.0 Pay 1.58% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge May 29, 2022 December 31, 2023 $ 397.2 Pay 3.765% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 $ 144.4 Pay 3.7725% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 $ 216.7 Pay 3.7675% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 $ 288.9 Pay 3.7575% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 $ 252.8 Pay 3.7725% fixed, receive floating rate (1-month USD-SOFR) Designated cash flow hedge December 30, 2022 May 27, 2027 (1) The notional value of interest rate swap contracts with an effective date of December 30, 2022 is expected to increase to $1.8 billion on December 29, 2023.
Schedule of Currency Hedging Instruments	The following table provides details of the currency hedging instruments outstanding as of July 2, 2023: Description Notional Amount Hedge Designation Foreign currency forward contracts $ 275.1 Cash Flow Hedge Foreign currency forward contracts $ 589.9 Non-designated
Schedule of Derivative Instruments, Effect on Other Comprehensive (Loss) Income	The following table summarizes pre-tax gains and losses from designated derivative and non-derivative instruments within Accumulated other comprehensive (loss) income (“AOCI”) for the three and six months ended July 2, 2023: Designated Hedging Instruments (In millions) Amount of Loss (Gain) Recognized in OCI on Hedges Location of Amounts Reclassified From AOCI Into Income Amount of Loss (Gain) Reclassified From AOCI Into Income Three Months Ended July 2, 2023 Foreign currency forward contracts (sales) $ (0.4) Total revenues $ 1.8 Foreign currency forward contracts (purchases) $ (2.1) Cost of sales, excluding amortization of intangibles $ 1.3 Interest rate derivatives $ (47.0) Interest expense, net $ (7.4) Six Months Ended July 2, 2023 Foreign currency forward contracts (sales) $ 1.7 Total revenues $ 0.9 Foreign currency forward contracts (purchases) $ (2.1) Cost of sales, excluding amortization of intangibles $ 1.7 Interest rate derivatives $ (26.1) Interest expense, net $ (12.6)
Schedule of Derivative Assets at Fair Value	The following table summarizes the fair value of designated and non-designated hedging instruments recognized within the unaudited Consolidated Balance Sheets as of July 2, 2023 and January 1, 2023: (In millions) July 2, 2023 January 1, 2023 Designated cash flow hedges Interest rate derivatives: Prepaid expenses and other current assets $ 9.4 $ 15.9 Other assets $ 16.0 $ — Other liabilities $ — $ 2.1 Foreign currency forward contracts: Prepaid expenses and other current assets $ 3.6 $ 4.6 Other current liabilities $ 7.7 $ 14.3 Non-designated hedging instruments Foreign currency forward contracts: Prepaid expenses and other current assets $ 3.6 $ 1.5 Other current liabilities $ 2.8 $ 5.4

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 02, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The balance of Accumulated Other Comprehensive Loss, net of tax, was as follows for the three and six months ended July 2, 2023 and July 3, 2022: Three Months Ended July 2, 2023 (In millions) Pension and Other Post- Cash Flow Hedges Available-for-Sale Investments Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income Balance at April 2, 2023 $ 0.7 $ (21.1) $ (0.3) $ (38.6) $ (59.3) Current period deferrals (1) — 40.0 (0.1) 7.4 47.3 Amounts reclassified to net income — (4.3) — — (4.3) Net change — 35.7 (0.1) 7.4 43.0 Balance at July 2, 2023 $ 0.7 $ 14.6 $ (0.4) $ (31.2) $ (16.3) Six Months Ended July 2, 2023 Pension and Other Post- Cash Flow Hedges Available-for-Sale Investments Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income Balance at January 1, 2023 $ 0.7 $ 1.5 $ (0.5) $ (69.3) $ (67.6) Current period deferrals (1) — 23.1 0.1 38.1 61.3 Amounts reclassified to net income — (10.0) — — (10.0) Net change — 13.1 0.1 38.1 51.3 Balance at July 2, 2023 $ 0.7 $ 14.6 $ (0.4) $ (31.2) $ (16.3) Three Months Ended July 3, 2022 (In millions) Cash Flow Hedges Available-for-Sale Investments Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance at April 3, 2022 $ 0.1 $ (0.5) $ 0.6 $ 0.2 Current period deferrals (2) 4.4 (0.2) (66.1) (61.9) Amounts reclassified to net income 1.0 — — 1.0 Net change 5.4 (0.2) (66.1) (60.9) Balance at July 3, 2022 $ 5.5 $ (0.7) $ (65.5) $ (60.7) Six Months Ended July 3, 2022 Cash Flow Hedges Available-for-Sale Investments Unrealized Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance at January 2, 2022 $ — $ (0.1) $ 0.5 $ 0.4 Current period deferrals (2) 4.6 (0.6) (66.0) (62.0) Amounts reclassified to net income 0.9 — — 0.9 Net change 5.5 (0.6) (66.0) (61.1) Balance at July 3, 2022 $ 5.5 $ (0.7) $ (65.5) $ (60.7) (1) Includes tax impact of $9.5 million and $3.4 million related to cash flow hedges for the three and six months ended July 2, 2023, respectively.

Business Combination - Narrativ

Business Combination - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		6 Months Ended
	May 26, 2022	Jul. 02, 2023
Business Acquisition [Line Items]
Measurement period adjustments of goodwill		$ (23.9)
Goodwill adjustment, increase to deferred tax liabilities		22.3
Goodwill adjustment, increase to income taxes payable		2.9
Goodwill adjustment, decrease to deferred tax assets		$ 1.3
Ortho
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 4,300
Closing price of Quidel Common Stock (in usd per share)	$ 99.60
Cash paid to former Ortho stockholders per Ortho Share (in usd per share)	$ 7.14
Ortho Exchange Ratio (in shares)	0.1055

Business Combination - Pro Form

Business Combination - Pro Forma Information (Details) - Ortho - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Pro forma total revenues	$ 898.5	$ 669.1	$ 2,400.9	$ 1,551.2
Pro forma net income (loss)	$ 22.3	$ (13)	$ 500.8	$ 116.7

Computation of Earnings Per S_3

Computation of Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Earnings Per Share [Abstract]
Basic weighted-average shares of common stock outstanding	66.8	52.2	66.7	47
Dilutive potential shares issuable from stock options and RSUs	0	0.7	0	0.7
Diluted weighted-average shares of common stock outstanding	66.8	52.9	66.7	47.7
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	0.4		0.5
PotentialWeightedAverageNumberOfDilutedSharesOutstandingDiluted weighted-average shares of common stock outstanding	67.2		67.2

Computation of Earnings Per S_4

Computation of Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Statement [Line Items]
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	0.4		0.5
Share-Based Payment Arrangement
Statement [Line Items]
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	1.2	1	1.1	0.9

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Jan. 01, 2023
Disaggregation of Revenue [Line Items]
Deferred revenue, current	$ 41.2		$ 41.2		$ 76.4
Deferred revenue, noncurrent	13.5		13.5		9.4
Deferred revenue, revenue recognized	19.5		68.5
Accounts receivable, net	$ 246.7		$ 246.7		453.9
Revenue Benchmark | Product Concentration Risk | Respiratory
Disaggregation of Revenue [Line Items]
Percentage of risk concentration	13%	54%	23%	78%
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Disaggregation of Revenue [Line Items]
Gross Profit	$ 6.1	$ 5.6	$ 29.7	$ 5.6
Revenue	0.6	2	23	2
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement and Third Party
Disaggregation of Revenue [Line Items]
Gross Profit	5.5	$ 3.6	6.7	$ 3.6
Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Contract assets	59.3		59.3		49.6
Customer 1
Disaggregation of Revenue [Line Items]
Contract assets	5.7		5.7		6.8
Expected Value Contract Customers | Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Contract assets	44.7		44.7		38.5
Customer 2
Disaggregation of Revenue [Line Items]
Contract assets	8.9		8.9		4.3
Customer A | Sales | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of risk concentration				37%
Customer B | Sales | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of risk concentration				11%
Customers With Balances Due In Excess of 10% Of Accounts Receivable | Accounts Receivable | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Accounts receivable, net	$ 30.7		$ 30.7		$ 161.9

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 665.1	$ 613.4	$ 1,511.2	$ 1,615.7
Labs
Disaggregation of Revenue [Line Items]
Total revenues	361.4	157.4	732.1	170.7
Transfusion Medicine
Disaggregation of Revenue [Line Items]
Total revenues	163.3	68.2	319.2	68.2
Point of Care
Disaggregation of Revenue [Line Items]
Total revenues	134.2	367.1	442.3	1,310.1
Molecular Diagnostics
Disaggregation of Revenue [Line Items]
Total revenues	$ 6.2	$ 20.7	$ 17.6	$ 66.7

Segment and Geographic Inform_3

Segment and Geographic Information - Total Revenues by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenues	$ 665.1	$ 613.4	$ 1,511.2	$ 1,615.7
North America
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenues	378.8	438.2	961.6	1,399.7
EMEA
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenues	80.6	42.1	161.9	57.3
China
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenues	81.3	73.6	151.9	82.3
Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenues	$ 124.4	$ 59.5	$ 235.8	$ 76.4

Segment and Geographic Inform_4

Segment and Geographic Information - Reconciliation to Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Adjusted EBITDA	$ 248.1	$ 312.1	$ 584	$ 1,042.3
Corporate	(134.8)	(93.9)	(225.4)	(183.2)
Interest expense, net	(36.5)	(10.3)	(73.2)	(11.3)
Depreciation and amortization	(114.5)	(47.5)	(228.7)	(62.8)
Acquisition and integration costs	(24.2)	(80.2)	(53.9)	(83.2)
Amortization of deferred cloud computing implementation costs	(1.5)	(1.3)	(3.1)	(2.3)
EU medical device regulation transition costs	(0.7)	(0.4)	(1.5)	(0.4)
Impairment of long-lived assets	(0.5)	0	(1)	0
Loss on investments	(0.2)	(0.8)	(0.2)	(0.8)
Tax indemnification income	0.4	0	0.1	0
Loss on extinguishment of debt	0	(24)	0	(24)
Unwind inventory fair value adjustment	0	(11.2)	0	(11.2)
Employee compensation charges and other costs	0	(0.5)	(1.5)	(0.5)
Change in fair value of acquisition contingencies	$ 0	$ (0.1)	$ 0	$ (0.1)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	(Loss) income before income taxes	(Loss) income before income taxes	(Loss) income before income taxes	(Loss) income before income taxes
Derivative mark-to-market gain	$ 0	$ 1	$ 0	$ 1
(Loss) income before income taxes	(64.4)	42.9	(4.4)	663.5
North America
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Adjusted EBITDA	176.3	239.2	454.7	952.6
EMEA
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Adjusted EBITDA	5.3	12.7	12.5	16.2
China
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Adjusted EBITDA	30.2	35.4	58.7	39.2
Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Adjusted EBITDA	$ 36.3	$ 24.8	$ 58.1	$ 34.3

Income Taxes (Detail)

Income Taxes (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Jan. 01, 2023
Income Tax Disclosure [Abstract]
(Benefit from) provision for income taxes	$ (11,200,000)	$ 23,600,000	$ 0	$ 164,300,000
(Loss) income before income taxes	$ (64,400,000)	$ 42,900,000	$ (4,400,000)	$ 663,500,000
Effective income tax rate	17.40%	55%	0.70%	24.80%
Unrecognized tax benefits	$ 38,800,000		$ 38,800,000
Unrecognized tax benefits the could impact effective tax rate	27,600,000		27,600,000
Unrecognized tax benefits, income tax interest and penalties accrued	8,100,000		8,100,000
Decrease in unrecognized tax benefits is reasonably possible	14,300,000		14,300,000
Indemnification receivable	16,400,000		16,400,000		$ 16,800,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	$ 300,000	$ 100,000	$ 700,000	$ 100,000

Balance Sheet Account Details C

Balance Sheet Account Details Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023	Jul. 03, 2022	Jan. 02, 2022
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 178.6	$ 292.9
Restricted Cash, Noncurrent	1	1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 179.6	$ 293.9	$ 380.6	$ 802.8

Balance Sheet Account Details M

Balance Sheet Account Details Marketable Securities (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	$ 70.3	$ 73.8
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(0.5)	(0.7)
Marketable securities	45.1	52.1
Marketable securities	24.7	21
Total marketable securities	69.8	73.1
Short-term Investments
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	45.4	52.6
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(0.3)	(0.5)
Marketable securities	45.1	52.1
Short-term Investments | Corporate bonds
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	34.7	40.5
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(0.3)	(0.5)
Marketable securities	34.4	40
Short-term Investments | Corporate asset-backed securities
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	8.7	6.7
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Marketable securities	8.7	6.7
Short-term Investments | U.S. government securities
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	0	2
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Marketable securities	0	2
Short-term Investments | Agency bonds
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	0	1
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Marketable securities	0	1
Short-term Investments | Sovereign government bonds
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	2	1.9
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Marketable securities	2	1.9
Short-term Investments | Foreign and other
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	0	0.5
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Marketable securities	0	0.5
Long-Term Investments | Corporate bonds
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	17.6	13.3
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(0.1)	(0.1)
Marketable securities	17.5	13.2
Long-Term Investments | Corporate asset-backed securities
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	5.8	7.9
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(0.1)	(0.1)
Marketable securities	5.7	7.8
Long-Term Investments | Agency bonds
Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	1.5	0
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Marketable securities	$ 1.5	$ 0

Balance Sheet Account Details A

Balance Sheet Account Details Accounts Receivable (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023
Receivables, Net, Current [Abstract]
Accounts receivable	$ 317.9	$ 543
Allowance for contract rebates and discounts	(58.5)	(77.1)
Allowance for doubtful accounts	(12.7)	(12)
Total accounts receivable, net	$ 246.7	$ 453.9

Balance Sheet Account Details I

Balance Sheet Account Details Inventories (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023
Inventory, Net [Abstract]
Raw materials	$ 203.2	$ 185.2
Work-in-process (materials, labor and overhead)	107.2	82.7
Finished goods (materials, labor and overhead)	273.2	295.1
Inventories, including noncurrent portion, net	583.6	563
Inventories	542.2	524.1
Inventory, Noncurrent	41.4	$ 38.9
Inventory Adjustments	$ 39

Balance Sheet Account Details P

Balance Sheet Account Details Prepaid expenses and other current assets (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid expenses	$ 95.9	$ 96.7
Income taxes and other tax receivables	81.5	38.6
Contract assets	59.3	49.6
Other receivables	39.1	44.3
Derivatives	16.6	22
Other	3.1	0.9
Total prepaid expenses and other current assets	$ 295.5	$ 252.1

Balance Sheet Account Details -

Balance Sheet Account Details - Goodwill Rollforward (Details) $ in Millions	6 Months Ended
	Jul. 02, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 2,476.8
Purchase accounting adjustments	(23.9)
Foreign currency translation	18
Goodwill, Ending Balance	2,470.9
North America
Goodwill [Roll Forward]
Goodwill, Beginning Balance	1,547.7
Purchase accounting adjustments	(13.4)
Foreign currency translation	0.3
Goodwill, Ending Balance	1,534.6
EMEA
Goodwill [Roll Forward]
Goodwill, Beginning Balance	358.6
Purchase accounting adjustments	(4.1)
Foreign currency translation	10.2
Goodwill, Ending Balance	364.7
China
Goodwill [Roll Forward]
Goodwill, Beginning Balance	118.1
Purchase accounting adjustments	(1.3)
Foreign currency translation	(5.7)
Goodwill, Ending Balance	111.1
Other
Goodwill [Roll Forward]
Goodwill, Beginning Balance	452.4
Purchase accounting adjustments	(5.1)
Foreign currency translation	13.2
Goodwill, Ending Balance	$ 460.5

Balance Sheet Account Details O

Balance Sheet Account Details Other Current Liabilities (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023
Other Liabilities Disclosure [Abstract]
Deferred revenue	$ 41.2	$ 76.4
Accrued commissions and rebates	51.3	55.1
Accrued other taxes payable	$ 34	$ 9.3
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total other current liabilities	Total other current liabilities
Operating lease liabilities	$ 26.3	$ 24.4
Derivatives	10.5	19.7
Deferred consideration	0	39.3
Other	109.8	101.2
Total other current liabilities	$ 273.1	$ 325.4

Long-term Borrowings - Schedule

Long-term Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023	May 27, 2022
Debt Instrument [Line Items]
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Financing lease obligation	$ 0.6	$ 0.8
Other long-term borrowings	0.8	1.2
Unamortized deferred financing costs	(9.3)	(10.6)
Total borrowings	2,515.9	2,638.3
Less: current portion	(207.4)	(207.5)
Long-term borrowings	2,308.5	2,430.8
Line of Credit | Term Loan | Credit Agreement
Debt Instrument [Line Items]
Long-term debt	$ 2,523.8	$ 2,646.9	$ 2,750

Long-term Borrowings - Narrativ

Long-term Borrowings - Narrative (Details) $ in Millions	6 Months Ended
	Jul. 02, 2023 USD ($) covenant	Jan. 01, 2023 USD ($)	Aug. 04, 2022 USD ($)	May 27, 2022 USD ($)
Debt Instrument [Line Items]
Number of financial covenants | covenant	2
Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Debt Instrument, Covenant, Leverage Ratio, Maximum	3.50
Debt instrument, Covenant, Leverage Ratio, Minimum	1
Debt Instrument, Covenant, Interest Coverage Ratio, Maximum	3
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum	1
Credit Agreement | Line of Credit | Ending after the closing date of the credit agreement
Debt Instrument [Line Items]
Debt Instrument, Covenant, Leverage Ratio, Maximum	4.50
Debt instrument, Covenant, Leverage Ratio, Minimum	1
Credit Agreement | Line of Credit | Ending after initial measurement period
Debt Instrument [Line Items]
Debt Instrument, Covenant, Leverage Ratio, Maximum	4
Debt instrument, Covenant, Leverage Ratio, Minimum	1
Term Loan | Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Long-term debt	$ 2,523.8	$ 2,646.9		$ 2,750
Payments of term loan	123.1
Debt prepayment cost	20
Revolving Credit Facility | Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			$ 800
Remaining borrowing capacity	787.1
Letter of Credit | Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Proceeds from lines of credit	$ 12.9

Long-term Borrowings - Interest

Long-term Borrowings - Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Debt Instrument [Line Items]
Amortization of deferred financing costs	$ 0.8	$ 0.2	$ 1.6	$ 0.3
Derivative instruments and other	(7.2)	1.8	(11.7)	2.9
Interest income	(1.8)	(0.4)	(2.8)	(0.7)
Interest expense, net	36.5	10.3	73.2	11.3
Line of Credit | Term Loan | Credit Agreement
Debt Instrument [Line Items]
Interest expense, debt	44.2	8.4	85.1	8.4
Line of Credit | Revolving Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Interest expense, debt	$ 0.5	$ 0.3	$ 1	$ 0.4

Stock-Based Compensation - Comp

Stock-Based Compensation - Compensation Expense Related to Stock-Based Compensation Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 17	$ 15.9	$ 31	$ 23.3
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1.1	0.6	2.1	1.3
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1.3	1.3	2.6	2.4
Selling, marketing and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	10	8	17.2	13.3
Acquisition and integration costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 4.6	$ 6	$ 9.1	$ 6.3

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		3 Months Ended		6 Months Ended
	May 26, 2022	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based liabilities paid		$ 2.8	$ 10.9	$ 5.8	$ 10.9
Stock options granted (in shares)				253
Increase to share based compensation from modification of vesting awards		3.1		$ 5.1
Unrecognized share based compensation expense relating to unvested shares		6		$ 6
RSUs granted (in shares)				576
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, term (in years)				10 years
Ortho
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash paid to former Ortho stockholders per Ortho Share (in usd per share)	$ 7.14
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		25.4		$ 25.4
Expected weighted-average period of recognition for unrecognized compensation expense				2 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 89.5		$ 89.5
Expected weighted-average period of recognition for unrecognized compensation expense				2 years 4 months 24 days
Weighted-Average Grant Date Fair Value, Granted (in USD per share)				$ 87.59	$ 98.38

Stock-Based Compensation - Esti

Stock-Based Compensation - Estimated Fair Value of Each Stock Option Award (Details) - $ / shares	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
Equity [Abstract]
Risk-free interest rate	3.52%	1.99%
Expected option life (in years)	5 years 6 months 10 days	4 years 10 months 20 days
Volatility rate	57%	58%
Dividend rate	0%	0%
Weighted-average grant date fair value of stock options granted (in USD per share)	$ 48.17	$ 50.86

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023
Assets:
Cash equivalents	$ 6.1	$ 2.7
Marketable securities	69.8	73.1
Derivative assets	32.6	22
Total assets measured at fair value	108.5	97.8
Liabilities:
Derivative liabilities	10.5	21.8
Contingent consideration	0.1	0.1
Deferred consideration	0	39.3
Total liabilities measured at fair value	10.6	61.2
Level 1
Assets:
Cash equivalents	6.1	0.6
Marketable securities	0	2
Derivative assets	0	0
Total assets measured at fair value	6.1	2.6
Liabilities:
Derivative liabilities	0	0
Contingent consideration	0	0
Deferred consideration	0	0
Total liabilities measured at fair value	0	0
Level 2
Assets:
Cash equivalents	0	2.1
Marketable securities	69.8	71.1
Derivative assets	32.6	22
Total assets measured at fair value	102.4	95.2
Liabilities:
Derivative liabilities	10.5	21.8
Contingent consideration	0	0
Deferred consideration	0	39.3
Total liabilities measured at fair value	10.5	61.1
Level 3
Assets:
Cash equivalents	0	0
Marketable securities	0	0
Derivative assets	0	0
Total assets measured at fair value	0	0
Liabilities:
Derivative liabilities	0	0
Contingent consideration	0.1	0.1
Deferred consideration	0	0
Total liabilities measured at fair value	$ 0.1	$ 0.1

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jul. 02, 2023	Apr. 30, 2023	Jan. 01, 2023	May 27, 2022
BNP Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Installment payment		$ 40
Term Loan | Credit Agreement | Line of Credit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-Term Debt, Fair Value	$ 2,476.4
Long-term debt	$ 2,523.8		$ 2,646.9	$ 2,750

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 02, 2023 USD ($)	Jul. 02, 2023 USD ($)
Derivative [Line Items]
Pre tax gain (loss) from reclassification	$ 29.4	$ 29.4
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months	(5.4)	(5.4)
Foreign Exchange Forward | Other Nonoperating Income (Expense)
Derivative [Line Items]
Fair value gain (loss) on derivative instruments not designated as hedging instruments	$ 3.2	$ 0.5

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Schedule of Interest Rate Derivatives (Details) - Designated cash flow hedges - USD ($) $ in Millions	Dec. 29, 2023	Jul. 02, 2023
Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount		$ 500
Derivative, Fixed Interest Rate		1.58%
Interest Rate Swap | Forecast
Derivative [Line Items]
Derivative, Notional Amount	$ 1,800
Interest Rate Swap One
Derivative [Line Items]
Derivative, Notional Amount		$ 397.2
Derivative, Fixed Interest Rate		3.765%
Interest Rate Swap Two
Derivative [Line Items]
Derivative, Notional Amount		$ 144.4
Derivative, Fixed Interest Rate		3.7725%
Interest Rate Swap Three
Derivative [Line Items]
Derivative, Notional Amount		$ 216.7
Derivative, Fixed Interest Rate		3.7675%
Interest Rate Swap Four
Derivative [Line Items]
Derivative, Notional Amount		$ 288.9
Derivative, Fixed Interest Rate		3.7575%
Interest Rate Swap Five
Derivative [Line Items]
Derivative, Notional Amount		$ 252.8
Derivative, Fixed Interest Rate		3.7725%
Foreign Exchange Contract
Derivative [Line Items]
Derivative, Notional Amount		$ 275.1

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Schedule of Currency Hedging Instruments (Details) - Foreign Exchange Contract $ in Millions	Jul. 02, 2023 USD ($)
Designated cash flow hedges
Derivative [Line Items]
Derivative, Notional Amount	$ 275.1
Non-designated hedging instruments
Derivative [Line Items]
Derivative, Notional Amount	$ 589.9

Derivative Instruments and He_6

Derivative Instruments and Hedging Activities - Schedule of Gain (Loss) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 02, 2023	Jul. 02, 2023
Foreign Exchange Contract | Sales
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Loss (Gain) Recognized in OCI on Hedges	$ (0.4)	$ 1.7
Amount of Loss (Gain) Reclassified From AOCI Into Income	1.8	0.9
Foreign Exchange Contract | Cost of sales
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Loss (Gain) Recognized in OCI on Hedges	(2.1)	(2.1)
Amount of Loss (Gain) Reclassified From AOCI Into Income	1.3	1.7
Interest Rate Swap | Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Loss (Gain) Recognized in OCI on Hedges	(47)	(26.1)
Amount of Loss (Gain) Reclassified From AOCI Into Income	$ (7.4)	$ (12.6)

Derivative Instruments and He_7

Derivative Instruments and Hedging Activities - Schedule of Fair Value (Details) - USD ($) $ in Millions	Jul. 02, 2023	Jan. 01, 2023
Derivative [Line Items]
Derivative Asset, Current	$ 16.6	$ 22
Derivative Liability, Current	$ 10.5	$ 19.7
Interest Rate Swap | Designated cash flow hedges
Derivative [Line Items]
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other current assets	Prepaid expenses and other current assets
Derivative Asset, Current	$ 9.4	$ 15.9
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Derivative Asset, Noncurrent	$ 16	$ 0
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Derivative Liability, Noncurrent	$ 0	$ 2.1
Foreign Exchange Contract | Designated cash flow hedges
Derivative [Line Items]
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other current assets	Prepaid expenses and other current assets
Derivative Asset, Current	$ 3.6	$ 4.6
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current	Other Liabilities, Current
Derivative Liability, Current	$ 7.7	$ 14.3
Foreign Exchange Contract | Non-designated hedging instruments
Derivative [Line Items]
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other current assets	Prepaid expenses and other current assets
Derivative Asset, Current	$ 3.6	$ 1.5
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current	Other Liabilities, Current
Derivative Liability, Current	$ 2.8	$ 5.4

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (59.3)	$ 0.2	$ (67.6)	$ 0.4
Current period deferrals	47.3	(61.9)	61.3	(62)
Amounts reclassified to net income	(4.3)	1	(10)	0.9
Net change	43	(60.9)	51.3	(61.1)
Ending balance	(16.3)	(60.7)	(16.3)	(60.7)
Tax impact related to cash flow hedges	(9.5)		(3.4)
Pension and Other Post- employment Benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	0.7		0.7
Current period deferrals	0		0
Amounts reclassified to net income	0		0
Net change	0		0
Ending balance	0.7		0.7
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(21.1)	0.1	1.5	0
Current period deferrals	40	4.4	23.1	4.6
Amounts reclassified to net income	(4.3)	1	(10)	0.9
Net change	35.7	5.4	13.1	5.5
Ending balance	14.6	5.5	14.6	5.5
Available-for-Sale Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(0.3)	(0.5)	(0.5)	(0.1)
Current period deferrals	(0.1)	(0.2)	0.1	(0.6)
Amounts reclassified to net income	0	0	0	0
Net change	(0.1)	(0.2)	0.1	(0.6)
Ending balance	(0.4)	(0.7)	(0.4)	(0.7)
Unrealized Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(38.6)	0.6	(69.3)	0.5
Current period deferrals	7.4	(66.1)	38.1	(66)
Amounts reclassified to net income	0	0	0	0
Net change	7.4	(66.1)	38.1	(66)
Ending balance	$ (31.2)	$ (65.5)	$ (31.2)	$ (65.5)