Cover Page
Cover Page - shares | 3 Months Ended | |
Jan. 01, 2021 | Jan. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 1, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-7598 | |
Entity Registrant Name | VARIAN MEDICAL SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2359345 | |
Entity Address, Address Line One | 3100 Hansen Way, | |
Entity Address, City or Town | Palo Alto, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94304-1038 | |
City Area Code | 650 | |
Local Phone Number | 493-4000 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Trading Symbol | VAR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 91,838,813 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000203527 | |
Current Fiscal Year End Date | --10-01 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Revenues: | ||
Revenues | $ 778.8 | $ 828.9 |
Cost of revenues: | ||
Total cost of revenues | 419.8 | 462.1 |
Gross margin | 359 | 366.8 |
Operating expenses: | ||
Research and development | 72.2 | 67.1 |
Selling, general and administrative | 161.9 | 177 |
Acquisition-related expenses | 7.7 | 12.7 |
Total operating expenses | 241.8 | 256.8 |
Operating earnings | 117.2 | 110 |
Interest income | 2.8 | 3 |
Interest expense | (1.3) | (4.7) |
Other income, net | 5.7 | 4.4 |
Earnings before taxes | 124.4 | 112.7 |
Taxes on earnings | 27.6 | 23.8 |
Net earnings | 96.8 | 88.9 |
Less: Net earnings attributable to noncontrolling interests | 0.3 | 0.7 |
Net earnings attributable to Varian | $ 96.5 | $ 88.2 |
Earnings Per Share [Abstract] | ||
Net earnings per share - basic (in dollars per share) | $ 1.06 | $ 0.97 |
Net earnings per share - diluted (in dollars per share) | $ 1.05 | $ 0.96 |
Shares used in the calculation of net earnings per share: | ||
Weighted average shares outstanding - basic (in shares) | 91.4 | 90.9 |
Weighted average shares outstanding - diluted (in shares) | 92.2 | 91.7 |
Product | ||
Revenues: | ||
Revenues | $ 364.2 | $ 421 |
Cost of revenues: | ||
Total cost of revenues | 245.1 | 271.9 |
Service | ||
Revenues: | ||
Revenues | 414.6 | 407.9 |
Cost of revenues: | ||
Total cost of revenues | $ 174.7 | $ 190.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 96.8 | $ 88.9 |
Defined benefit pension and post-retirement benefit plans: | ||
Amortization of prior service cost included in net periodic benefit cost, net of tax benefit of $0.1* and $0.0*, respectively | (0.4) | (0.2) |
Amortization of net actuarial loss included in net periodic benefit cost, net of tax expense of $(0.1) and $(0.2), respectively | 0.8 | 0.9 |
Defined benefit pension and post-retirement benefit plans | 0.4 | 0.7 |
Derivative instruments: | ||
Change in unrealized loss, net of tax benefit of $1.5 and $0.0*, respectively | (4.8) | (0.1) |
Reclassification adjustments, net of tax (expense) benefit of $(0.1) and $0.2, respectively | 0.3 | (0.6) |
Derivative instruments | (4.5) | (0.7) |
Currency translation adjustment | 13 | 5.1 |
Other comprehensive earnings | 8.9 | 5.1 |
Comprehensive earnings | 105.7 | 94 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0.3 | 0.7 |
Comprehensive earnings attributable to Varian | $ 105.4 | $ 93.3 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 01, 2021 | Jan. 03, 2020 | |||
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit from amortization of prior service cost included in net periodic benefit cost | [1] | $ 0.1 | $ 0 | |
Tax expense from amortization of net actuarial loss included in net periodic benefit cost | (0.1) | (0.2) | ||
Tax benefit on change in unrealized gain (loss) on derivative instruments | 1.5 | 0 | [1] | |
Tax (expense) benefit on reclassification adjustments on derivative instruments | $ (0.1) | $ 0.2 | ||
[1] | Tax expense or benefit related to the periods presented are not material. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 773.3 | $ 766.1 |
Trade and unbilled receivables, less allowance for credit losses of $55.2 and $52.3 at January 1, 2021 and October 2, 2020, respectively | 1,029.3 | 1,066.1 |
Inventories | 571.7 | 516.3 |
Prepaid expenses and other current assets | 267 | 254.8 |
Total current assets | 2,641.3 | 2,603.3 |
Property, plant and equipment, net | 346.5 | 344.9 |
Operating lease right-of-use assets | 119.5 | 121 |
Goodwill | 627.7 | 623.9 |
Intangible assets | 265 | 271.3 |
Deferred tax assets | 65.4 | 81.5 |
Other assets | 460.7 | 416.3 |
Total assets | 4,526.1 | 4,462.2 |
Current liabilities: | ||
Accounts payable | 206.5 | 194.9 |
Accrued liabilities | 482.7 | 522.4 |
Deferred revenues | 845.7 | 782.2 |
Short-term borrowings | 210 | 355 |
Total current liabilities | 1,744.9 | 1,854.5 |
Long-term lease liabilities | 101.7 | 101.1 |
Other long-term liabilities | 431.7 | 421.8 |
Total liabilities | 2,278.3 | 2,377.4 |
Commitments and contingencies (Note 8) | ||
Equity: | ||
Preferred stock of $1 par value: 1.0 shares authorized; none issued and outstanding | 0 | 0 |
Common stock of $1 par value: 189.0 shares authorized; 91.8 and 91.2 shares issued and outstanding at January 1, 2021 and October 2, 2020, respectively | 91.8 | 91.2 |
Capital in excess of par value | 997.7 | 937 |
Retained earnings | 1,225.6 | 1,133 |
Accumulated other comprehensive loss | (76.8) | (85.7) |
Total Varian stockholders' equity | 2,238.3 | 2,075.5 |
Noncontrolling interest | 9.5 | 9.3 |
Total equity | 2,247.8 | 2,084.8 |
Total liabilities and equity | $ 4,526.1 | $ 4,462.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Statement of Financial Position [Abstract] | ||
Trade and unbilled receivables, allowance for credit loss, current | $ 55.2 | $ 52.3 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 189,000,000 | 189,000,000 |
Common stock, shares issued (in shares) | 91,800,000 | 91,200,000 |
Common stock, shares outstanding (in shares) | 91,800,000 | 91,200,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Cash flows from operating activities: | ||
Net earnings | $ 96.8 | $ 88.9 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Share-based compensation expense | 16.7 | 14.9 |
Depreciation | 16 | 15 |
Amortization of intangible assets and inventory step-up | 9.8 | 10.2 |
Deferred taxes | 14.9 | 1.8 |
Gain on equity investments | (9.2) | (1.4) |
Change in fair value of contingent consideration | 0.2 | 8.8 |
Other, net | 1.3 | 0.9 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Trade and unbilled receivables | 29.1 | 29.5 |
Inventories | (52.5) | (44.9) |
Prepaid expenses and other assets | 3.6 | 6.3 |
Accounts payable | 8 | (32.7) |
Accrued liabilities and other long-term liabilities | (64.2) | (42.1) |
Deferred revenues | 70.9 | 57.4 |
Net cash provided by operating activities | 141.4 | 112.6 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (16.8) | (22.6) |
Acquisitions, net of cash acquired | (0.5) | (1.7) |
Purchase of equity and notes receivable in privately-held companies | (10.3) | 0 |
Sale of equity investments | 0 | 9.2 |
Net cash used in investing activities | (27.6) | (15.1) |
Cash flows from financing activities: | ||
Repurchases of common stock | 0 | (43.8) |
Proceeds from issuance of common stock to employees | 52.4 | 19.7 |
Tax withholdings on vesting of equity awards | (7.6) | (3.6) |
Borrowings under credit facility agreement | 0 | 11 |
Repayments under credit facility agreement | 0 | (11) |
Net (repayments) borrowings under the credit facility agreements with maturities less than 90 days | (145) | 132 |
Other | 0 | (0.9) |
Net cash (used in) provided by financing activities | (100.2) | 103.4 |
Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (6.3) | (2.8) |
Net increase in cash, cash equivalents, and restricted cash | 7.3 | 198.1 |
Cash, cash equivalents, and restricted cash at beginning of period | 785.8 | 544.1 |
Cash, cash equivalents, and restricted cash at end of period | $ 793.1 | $ 742.2 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Total Varian Stockholders' Equity | Total Varian Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interests |
Beginning balance (in shares) at Sep. 27, 2019 | 90.8 | |||||||||
Balance at beginning of period at Sep. 27, 2019 | $ 1,777.6 | $ 90.8 | $ 845.6 | $ 934 | $ (102.1) | $ 1,768.3 | $ 9.3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 88.9 | 88.2 | 88.2 | 0.7 | ||||||
Other comprehensive earnings (loss) | 5.1 | 5.1 | 5.1 | |||||||
Issuance of common stock (in shares) | 0.3 | |||||||||
Issuance of common stock | 21 | $ 0.3 | 20.7 | 21 | ||||||
Tax withholdings on vesting of equity awards | (3.6) | (3.6) | (3.6) | |||||||
Share-based compensation expense | $ 14.7 | 14.7 | 14.7 | |||||||
Repurchases of common stock (in shares) | (0.3) | (0.4) | ||||||||
Repurchases of common stock | $ (46.4) | $ (0.4) | (7) | (39) | (46.4) | |||||
Ending balance (in shares) at Jan. 03, 2020 | 90.7 | |||||||||
Balance at end of period at Jan. 03, 2020 | 1,857.3 | $ 90.7 | 870.4 | 983.2 | (97) | 1,847.3 | 10 | |||
Beginning balance (in shares) at Sep. 27, 2019 | 90.8 | |||||||||
Balance at beginning of period at Sep. 27, 2019 | $ 1,777.6 | $ 90.8 | 845.6 | 934 | (102.1) | 1,768.3 | 9.3 | |||
Ending balance (in shares) at Oct. 02, 2020 | 91.2 | 91.2 | ||||||||
Balance at end of period at Oct. 02, 2020 | $ 2,084.8 | $ (3.9) | $ 91.2 | 937 | 1,133 | $ (3.9) | (85.7) | 2,075.5 | $ (3.9) | 9.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Net earnings (loss) | $ 96.8 | 96.5 | 96.5 | 0.3 | ||||||
Other comprehensive earnings (loss) | 8.9 | 8.9 | 8.9 | |||||||
Issuance of common stock (in shares) | 0.6 | |||||||||
Issuance of common stock | 52.4 | $ 0.6 | 51.8 | 52.4 | ||||||
Tax withholdings on vesting of equity awards | (7.6) | (7.6) | (7.6) | |||||||
Share-based compensation expense | $ 16.5 | 16.5 | 16.5 | |||||||
Repurchases of common stock (in shares) | 0 | |||||||||
Other | $ (0.1) | (0.1) | ||||||||
Ending balance (in shares) at Jan. 01, 2021 | 91.8 | 91.8 | ||||||||
Balance at end of period at Jan. 01, 2021 | $ 2,247.8 | $ 91.8 | $ 997.7 | $ 1,225.6 | $ (76.8) | $ 2,238.3 | $ 9.5 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jan. 01, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business The long-term growth and value creation strategy of Varian Medical Systems, Inc. (“VMS”) and subsidiaries (collectively, the “Company”) is to transform the Company from the global leader in radiation therapy to the global leader in multi-disciplinary, integrated cancer care solutions that leverage its strengths, technology, innovation and clinical experience. The Company offers solutions in radiation therapy and medical oncology, as well as interventional oncology, an emerging area of cancer care. The Company designs, manufactures, sells and services hardware and software products for treating cancer with radiotherapy, stereotactic radiosurgery, stereotactic body radiotherapy, artificial intelligence based Adaptive Radiotherapy and brachytherapy, and offers products for interventional oncology procedures and treatments, including cryoablation, microwave ablation and embolization. Software solutions include treatment planning, informatics, clinical knowledge exchange, patient care management, practice management and decision support for comprehensive cancer clinics, radiotherapy centers and medical oncology practices. The Company also develops, designs, manufactures, sells and services proton therapy products and systems for cancer treatment. The Company has expanded its services offerings to include clinical practice services that assist within the clinical workflow. These services focus on decision support and/or cancer care knowledge augmentation aimed to facilitate improved accessibility and affordability to care while maintaining a fundamental level of clinical quality. Further, the Company operates 13 multi-disciplinary cancer centers and one specialty hospital in India and one multi-disciplinary cancer center in Sri Lanka. Proposed Acquisition by Siemens Healthineers On August 2, 2020, VMS, Siemens Healthineers Holding I GmbH, a company organized under the laws of Germany (“Siemens Healthineers”), Falcon Sub Inc., a Delaware corporation and a direct wholly-owned subsidiary of Siemens Healthineers (“Merger Sub”), and, with respect to certain provisions, Siemens Medical Solutions USA, Inc., a Delaware corporation ( the “Guarantor”), entered into a Merger Agreement and Plan of Merger, dated as of August 2, 2020 (the “Merger Agreement”), pursuant to which, on the terms and subject to the conditions set forth therein, Merger Sub will be merged with and into VMS (the "Merger"), with VMS surviving the Merger as a wholly-owned subsidiary of Siemens Healthineers. Under the terms of the Merger Agreement, which has been unanimously approved by VMS' Board of Directors, Siemens Healthineers will acquire all outstanding shares of VMS for $177.50 per share in cash, in a transaction valued at approximately $16.4 billion on a fully diluted basis. The Merger is expected to close in the first half of calendar year 2021, subject to receipt of specified regulatory approvals and other customary closing conditions. On October 15, 2020, VMS' stockholders approved and adopted the Merger Agreement. Under the terms of the Merger Agreement, if the Merger Agreement is terminated by VMS or Siemens Healthineers under certain specified circumstances, a termination fee of $450.0 million in cash may be payable by VMS to Siemens Healthineers. The Merger Agreement also provides that a reverse termination fee of $450.0 million or $925.0 million in cash may be payable by Siemens Healthineers to VMS if the Merger Agreement is terminated by VMS or Siemens Healthineers under certain specified circumstances. Basis of Presentation The condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of October 2, 2020, was derived from audited financial statements as of that date, but does not include all disclosures required by GAAP. These condensed consolidated financial statements and the accompanying notes are unaudited and should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2020 (the “2020 Annual Report”). The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic and the extent and duration of the future impact on the Company's business is highly uncertain and difficult to predict. The COVID-19 pandemic has adversely impacted, and may further adversely impact, nearly all aspects of the Company’s business and markets, including its workforce and operations and the operations of its customers, suppliers, distributors and business partners. The full extent to which the pandemic will directly or indirectly impact the Company's business, results of operations and financial condition, including but not limited to revenues, gross orders, expenses, manufacturing, research and development costs, reserves and allowances, fair value measurements, asset impairment charges, contingent consideration obligations and the effectiveness of the Company's hedging instruments, will depend on future developments that are highly uncertain and difficult to predict. The Company has approximately $1.7 billion in accessible liquidity, including approximately $773 million in cash and cash equivalents and approximately $972 million available under its $1.2 billion revolving credit facility. To date, the Company has not experienced a significant decline in customer credit quality or a significant increase in requests for changes or extension of payment terms as a result of COVID-19, although management will continue to closely monitor these metrics going forward. Furthermore, the Company's ability to estimate and make certain judgments may be materially impacted by the uncertainty caused by the pandemic. In the opinion of management, the condensed consolidated financial statements herein include adjustments necessary for a fair statement of the Company’s financial position as of January 1, 2021, and October 2, 2020, results of operations and statements of comprehensive earnings for the three months ended January 1, 2021, and January 3, 2020, statements of cash flows for the three months ended January 1, 2021, and January 3, 2020, and statements of equity for the three months ended January 1, 2021, and January 3, 2020. The results of operations for the three months ended January 1, 2021 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future period. Reclassifications Certain reclassifications have been made to the amounts in the prior year in order to conform to the current year's presentation. Fiscal Year The fiscal years of the Company as reported are the 52- or 53-week periods ending on the Friday nearest September 30. Fiscal year 2021 is the 52-week period ending October 1, 2021. Fiscal year 2020 was the 53-week period that ended on October 2, 2020. The fiscal quarter ended January 1, 2021 was a 13-week period and the fiscal quarter ended January 3, 2020 was a 14-week period. Principles of Consolidation The condensed consolidated financial statements include those of VMS and its wholly-owned and majority-owned or controlled subsidiaries. Intercompany balances, transactions and stock holdings have been eliminated in consolidation. Consolidation of Variable Interest Entities For entities in which the Company has variable interests, the Company focuses on identifying which entity has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. If the Company is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in the Company’s condensed consolidated financial statements. At January 1, 2021 and October 2, 2020, the Company consolidated its non-controlling interest in a joint venture, included within its Oncology Systems business, related to the Cancer Treatment Services International ("CTSI") operations. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Due to the COVID-19 pandemic, the Company is subject to a greater degree of uncertainty than normal in making the judgments and estimates needed to apply its significant accounting policies, such as the impairment of goodwill and intangibles, and the impairment of equity investments, available-for-sale securities and loans receivables. As the COVID-19 pandemic and responsive actions continue to develop, management may make changes to these estimates and judgments, which could result in material impacts to the Company's financial statements in future periods. Significant Accounting Policies There have been no material changes to the Company's significant accounting policies provided in Note 1, "Summary of Significant Accounting Policies," within Item 8 of the Company's Annual Report on Form 10-K for the year ended October 2, 2020. Recently Adopted Accounting Pronouncements In the first quarter of fiscal year 2021, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standard Update No. 2016-13 Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, such as trade and unbilled receivables, loans and loan commitments, and lease receivables. The Company adopted this standard using the modified retrospective transition method. Following the adoption of ASU 2016-13, credit loss reserves are recorded when financial assets are established if credit losses are expected over the asset’s contractual life. These losses were previously expensed when it became probable that a loss would be incurred. The adoption of this standard resulted in a decrease in retained earnings as of October 3, 2020, of $3.9 million from the cumulative effect of initially applying the standards of that date. In addition, the adoption of this standard resulted in an increase in the allowance for credit losses of trade and unbilled receivables of $3.4 million and an increase in the allowance for credit losses for notes receivable of $0.5 million. In the first quarter of fiscal year 2021, the Company adopted Accounting Standards Update No. 2018-15, I ntangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract ("ASU 2018-15"). The purpose of the update is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted ASU 2018-15 on a prospective basis. The impact of adopting ASU 2018-15 did not have a material impact on the Company's condensed consolidated financial statements. In the first quarter of fiscal year 2021, the Company adopted FASB Accounting Standards Update No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). ASU 2018-13 changes the disclosure requirements for fair value measurements, which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. The impact of adopting ASU 2018-13 did not impact the Company's condensed consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the current guidance and improving the consistent application of and simplification of other areas of the guidance. The standard is effective for the Company beginning in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is evaluating the impact of adopting this guidance on its condensed consolidated financial statements. In August 2018, the FASB i ssued Accounting Standards Update No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"). ASU 2018-14 which modifies the disclosure requirements for employers that have sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The standard is effective for the Company beginning in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is evaluating the impact of adopting this guidance on its condensed consolidated financial statements. |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 3 Months Ended |
Jan. 01, 2021 | |
Other Financial Information [Abstract] | |
OTHER FINANCIAL INFORMATION | OTHER FINANCIAL INFORMATION Contracts with Customers The following table provides the Company's unbilled receivables and deferred revenues from contracts with customers: (In millions) January 1, October 2, Unbilled receivables - current $ 292.7 $ 306.2 Unbilled receivables - long-term (1) 94.1 68.6 Deferred revenues - current (845.7) (782.2) Deferred revenues - long-term (2) (76.3) (68.5) Total net unbilled receivables (deferred revenues) $ (535.2) $ (475.9) (1) Included in other assets on the Company's Condensed Consolidated Balance Sheets. (2) Included in other long-term liabilities on the Company's Condensed Consolidated Balance Sheets. During the three months ended January 1, 2021, unbilled receivables increased by $12.0 million, p rimarily due to the timing of billings , and deferred revenues increased by $71.3 million , primarily due to the contractual timing of billings occurring before the revenues were recognized. During the three months ended January 1, 2021, the Company recognized revenues of $276.4 million, which were included in the deferred revenues balances at October 2, 2020. During the three months ended January 3, 2020, the Company recognized revenues of $314.5 million, which were included in the deferred revenues balances at September 27, 2019. Unfulfilled Performance Obligations The following table represents the Company's unfulfilled performance obligations as of January 1, 2021, and the estimated revenues expected to be recognized in the future related to these unfulfilled performance obligations: Fiscal Years of Revenue Recognition (In millions) Remainder of 2021 2022 2023 Thereafter Unfulfilled Performance Obligations $ 1,760.1 $ 1,944.9 $ 856.2 $ 2,449.6 The table above includes both product and service unfulfilled performance obligations, which includes a component of service performance obligations that has not been invoiced. The fiscal years presented reflect management’s best estimate of when the Company will transfer control to the customer and may change based on timing of shipment, readiness of customers’ facilities for installation, installation requirements and availability of products or customer acceptance terms. Cash, Cash Equivalents, and Restricted Cash The following table summarizes the Company's cash, cash equivalents, and restricted cash: (In millions) January 1, October 2, Cash and cash equivalents $ 773.3 $ 766.1 Restricted cash - current (1) 10.3 10.2 Restricted cash - long-term (2) 9.5 9.5 Total cash, cash equivalents, and restricted cash $ 793.1 $ 785.8 (1) Included in prepaid expenses and other current assets on the Company's Condensed Consolidated Balance Sheets. (2) Included in other assets on the Company's Condensed Consolidated Balance Sheets. Inventories The following table summarizes the Company's inventories: (In millions) January 1, October 2, Raw materials and parts $ 355.8 $ 322.9 Work-in-process 74.1 82.0 Finished goods 141.8 111.4 Total inventories $ 571.7 $ 516.3 Other Long-Term Liabilities The following table summarizes the Company's other long-term liabilities: (In millions) January 1, October 2, Income taxes payable $ 171.8 $ 170.8 Deferred income taxes 100.5 101.2 Deferred revenues 76.3 68.5 Contingent consideration 28.1 25.7 Defined benefit pension plan 19.7 19.8 Other 35.3 35.8 Total other long-term liabilities $ 431.7 $ 421.8 Other Income, Net The following table summarizes the Company's other income, net: Three Months Ended (In millions) January 1, January 3, Gain on equity investments $ 8.6 $ 1.4 Net foreign currency exchange gain (loss) (3.8) 2.4 Other, net 0.9 0.6 Total other income, net $ 5.7 $ 4.4 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Jan. 01, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Assets/Liabilities Measured at Fair Value on a Recurring Basis In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. Fair Value Measurements at January 1, 2021 Quoted Prices in Significant Significant Total Type of Instruments (Level 1) (Level 2) (Level 3) Balance (In millions) Assets: Cash equivalents: Money market funds $ 87.0 $ — $ — $ 87.0 Equity investments 38.3 25.7 — 64.0 Available-for-sale securities: MPTC Series B-1 Bonds — 19.2 — 19.2 MPTC Series B-2 Bonds — 21.1 — 21.1 APTC securities — 5.5 — 5.5 Derivative assets — 0.1 — 0.1 Total assets measured at fair value $ 125.3 $ 71.6 $ — $ 196.9 Liabilities: Derivative liabilities $ — $ (8.1) $ — $ (8.1) Contingent consideration — — (47.9) (47.9) Total liabilities measured at fair value $ — $ (8.1) $ (47.9) $ (56.0) Fair Value Measurements at October 2, 2020 Quoted Prices in Active Markets for Identical Instruments Significant Significant Unobservable Inputs Total Type of Instruments (Level 1) (Level 2) (Level 3) Balance (In millions) Assets: Cash equivalents: Money market funds $ 148.0 $ — $ — $ 148.0 Equity investments — 54.6 — 54.6 Available-for-sale securities: MPTC Series B-1 Bonds — 18.9 — 18.9 MPTC Series B-2 Bonds — 20.6 — 20.6 APTC securities — 5.4 — 5.4 Total assets measured at fair value $ 148.0 $ 99.5 $ — $ 247.5 Liabilities: Derivative liabilities $ — $ (0.1) $ — $ (0.1) Contingent consideration — — (43.1) (43.1) Total liabilities measured at fair value $ — $ (0.1) $ (43.1) $ (43.2) The Company classifies its money market funds as Level 1 because they have daily liquidity, quoted prices for the underlying investments can be obtained, and there are active markets for the underlying investments. The Company's equity investments in publicly-traded companies are valued at quoted market prices at the end of each fiscal period and are classified as Level 1 if they are not subject to restrictions and Level 2 if they are currently subject to a lock-up period after the initial public offering. The Company's Level 2 available-for-sale securities consist of bonds for the Maryland Proton Therapy Center ("MPTC") and the Alabama Proton Therapy Center (“APTC”). The observable inputs for these securities are comparable bond issues, broker/dealer quotations for the same or similar investments in active markets, and other observable inputs such as yields, credit risks, default rates, and volatility. The Company's available-for-sale securities are included in other assets on the Company's Condensed Consolidated Balance Sheets, except for amounts related to short-term interest receivable. See Note 14, "Proton Solutions Loans and Investments," for further information about the available-for-sale securities. As of January 1, 2021, and October 2, 2020, the carrying amount of the Company's money market funds, equity investments and available-for-sale securities approximated their respective fair values. The Company has elected to use the income approach to value its derivative instruments using standard valuation techniques and Level 2 inputs, such as currency spot rates, forward points and credit default swap spreads. The Company’s derivative instruments are generally short-term in nature, typically one month to fifteen months in duration. The Company generally measures the fair value of its Level 3 contingent consideration liabilities based on Monte Carlo pricing models with key assumptions that include estimated revenues of the acquired business, the probability of completing certain milestone targets during the earn-out period, revenue volatility and estimated discount rates corresponding to the periods of expected payments. If the estimated revenues or probability of completing certain milestones were to increase or decrease during the respective earn-out period, the fair value of the contingent consideration would increase or decrease, respectively. If the estimated discount rates were to increase or decrease, the fair value of contingent consideration would decrease or increase, respectively. Changes in key assumptions may result in an increase or decrease in the fair value of contingent consideration. The Company's contingent consideration is from its business combinations and is included in accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. The following table presents the reconciliation for liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3): (In millions) Contingent Balance at October 2, 2020 $ (43.1) Business combinations (1.1) Adjustments to business combinations in prior year (2.8) Adjustments due to the effect of foreign exchange (0.7) Change in fair value recognized in earnings (0.2) Balance at January 1, 2021 $ (47.9) Transfers between fair value measurement levels are recognized at the end of the reporting period. Fair Value of Other Financial Instruments The fair values of certain of the Company’s financial instruments, including bank deposits included in cash equivalents, trade and unbilled receivables, net of allowance for credit losses, accounts payable, and short-term borrowings approximate their carrying amounts due to their short maturities. As of January 1, 2021, the fair value of the CPTC Loans (as defined in Note 14, "Proton Solutions Loans and Investments,") approximated its carrying value of $11.8 million. The carrying value is based on the present value of expected future cash payments discounted at a rate reflecting the nature and duration of the loans, risks involved with the California Proton Therapy Center ("CPTC"), and its industry. As a result, the CPTC Loans are categorized as Level 3. See Note 14, "Proton Solutions Loans and Investments," for further information. The fair value of the Company's equity investments and convertible promissory notes in privately-held companies were $78.3 million and $68.2 million at January 1, 2021 and October 2, 2020, respectively. The Company measures these investments at cost, and these investments are adjusted through net earnings when they are deemed to be impaired or when there is an adjustment from observable price changes. In the three months ended January 1, 2021, the fair value of the Company’s investments in its privately-held companies decreased by $0.8 million , which is included in other income, net, in the Condensed Consolidated Statements of Earnings. The fair value of the Company's equity investments in publicly-traded companies were $64.0 million and $54.6 million at January 1, 2021 and October 2, 2020, respectively, which are recorded in prepaid and other current assets and other assets on the Company's Condensed Consolidated Balance Sheets. In the three months ended January 1, 2021, the fair value of its investments in publicly-traded companies increased by $9.4 million, which is included in other income, net, in the Condensed Consolidated Statements of Earnings. The fair value of the outstanding long-term notes receivable, including accrued interest, approximated their carrying value of $37.5 million |
RECEIVABLES
RECEIVABLES | 3 Months Ended |
Jan. 01, 2021 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES The following table summarizes the Company's trade and unbilled receivables, net, and long-term notes receivable: (In millions) January 1, October 2, Trade and unbilled receivables, gross $ 1,189.4 $ 1,198.1 Allowance for credit losses (61.2) (58.3) Trade and unbilled receivables, net $ 1,128.2 $ 1,139.8 Short-term $ 1,029.3 $ 1,066.1 Long-term (1) $ 98.9 $ 73.7 Short-term notes receivable (1) $ 11.8 $ 11.8 Long-term notes receivable (1) (2) $ 37.5 $ 36.7 (1) Short-term notes receivables are included in prepaid and other assets and long-term receivables are included in other assets on the Company's Condensed Consolidated Balance Sheets. (2) Balances include accrued interest and are recorded in other assets on the Company's Condensed Consolidated Balance Sheets. A financing receivable represents a financing arrangement with a contractual right to receive money, on demand or on fixed or determinable dates, and that is recognized as an asset on the Company’s Condensed Consolidated Balance Sheets. The Company’s financing receivables consist of trade receivables with contractual maturities of more than one year and notes receivable. A small portion of the Company's financing trade receivables are included in short-term trade accounts receivable. As of January 1, 2021, the allowance for credit losses included $55.2 million related to short-term trade and unbilled receivables and $6.0 million related to long-term unbilled receivables. As of October 2, 2020, the allowance for credit losses included $52.3 million related to short-term trade and unbilled receivables and $6.0 million related to long-term unbilled receivables. See Note 14, "Proton Solutions Loans and Investments," for more information on the Company's short-term and long-term notes receivable balances. The following is a rollforward of the allowance for credit losses on the Company's trade and unbilled receivables: Three Months Ended (In millions) January 1, Balance at October 2, 2020 $ (58.3) Cumulative effect adjustment for adoption of ASU 2016-13 (1) (3.4) Provision for expected credit losses (1.5) Recoveries (write-offs) 2.0 Balance at January 1, 2021 $ (61.2) (1) Effective October 3, 2020, the Company adopted ASC 2016-13 using the modified retrospective method. Please see Note 1, "Summary of Significant Accounting Policies," for more information. Upon adoption of ASC 2016-13, the Company recorded an allowance for credit losses on its short-term and long-term notes receivable balances of $0.5 million. The provision for expected credit losses on its notes receivable balances in the three months ended January 1, 2021 was not material. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Jan. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table summarizes the activity of goodwill by reportable operating segment: (In millions) Oncology Systems Other Total Balance at October 2, 2020 $ 454.7 $ 169.2 $ 623.9 Measurement period adjustments to business combinations in prior year 0.5 — 0.5 Foreign currency translation adjustments 0.2 3.1 3.3 Balance at January 1, 2021 $ 455.4 $ 172.3 $ 627.7 The following table summarizes the gross carrying amount and accumulated amortization of the Company's intangible assets: January 1, 2021 October 2, 2020 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technologies and patents $ 229.8 $ (117.1) $ 112.7 $ 228.0 $ (110.9) $ 117.1 Customer contracts, supplier relationships, and partner relationships 130.6 (37.6) 93.0 128.9 (34.7) 94.2 Trade names 53.1 (7.8) 45.3 53.0 (7.0) 46.0 Other 7.8 (6.3) 1.5 7.8 (6.1) 1.7 Total intangible with finite lives 421.3 (168.8) 252.5 417.7 (158.7) 259.0 In-process research and development with indefinite lives 12.5 — 12.5 12.3 — 12.3 Total intangible assets $ 433.8 $ (168.8) $ 265.0 $ 430.0 $ (158.7) $ 271.3 Amortization expense for intangible assets was $9.8 million and $10.1 million during the three months ended January 1, 2021, and January 3, 2020, respectively. As of January 1, 2021, the Company estimates its remaining amortization expense for intangible assets with finite lives will be as follows (in millions): Fiscal Years: Remaining Amortization Expense Remainder of 2021 $ 27.8 2022 36.3 2023 34.9 2024 27.7 2025 22.7 Thereafter 103.1 Total remaining amortization for intangible assets $ 252.5 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Jan. 01, 2021 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS The following table summarizes the Company's total short-term borrowings: January 1, 2021 October 2, 2020 (In millions, except for percentages) Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate Short-term borrowings: Revolving Credit Facility $ 210.0 1.18 % $ 355.0 1.18 % Total short-term borrowings $ 210.0 $ 355.0 On November 1, 2019, the Company entered into Amendment No.2 (the "Amendment") to its Credit Agreement dated April 3, 2018, (the "Credit Agreement"), by and among the Company, certain lenders party thereto, and Bank of America, N.A. (“BofA”), as administrative agent, swing line lender and letter of credit issuer. The Amendment extended the maturity date from April 2023 to November 2024. The Amendment reduced the aggregate principal amount available under the Credit Agreement's five-year revolving credit facility (the "Revolving Credit Facility") from $1.8 billion to $1.2 billion, added a $500.0 million sub-limit for multi-currency borrowings, increased the letter of credit sub-limit from $50.0 million to $225.0 million, and reduced the commitment fee. In addition, there is a sub-limit for swing line loans of up to $25.0 million. Under the Revolving Credit Facility, the Company has the right to (i) request to increase the aggregate commitments by an aggregate amount for all such requests of up to $100.0 million and (ii) request an additional increase in the commitments or establish one or more term loans, provided that, in each case, the lenders are willing to provide such new or increased commitments and certain other conditions are met. The proceeds of the Revolving Credit Facility may be used for working capital, capital expenditures, Company share repurchases, permitted acquisitions and other corporate purposes. Completion of the Siemens Healthineers acquisition would represent a “Change of Control” as defined in the Credit Agreement, which would result in an Event of Default thereunder. Upon such Event of Default, the lenders could take any or all of the following actions: a) terminating the commitment to lend or issue letters of credit, b) declaring all outstanding principal amounts and accrued and unpaid interest immediately due and payable, c) requiring cash collateral for all issued and outstanding letters of credit and d) exercising other rights and remedies available to them under the loan documents. The Company plans to repay in full and terminate all commitments under the Credit Agreement upon closing of the Siemens Healthineers acquisition. Borrowings under the Revolving Credit Facility accrue interest based on either (i) the Eurodollar Rate plus a margin of 1.000% to 1.375% based on a net leverage ratio involving funded indebtedness and EBITDA, or (ii) a base rate of (a) the federal funds rate plus 0.50%, (b) BofA’s announced prime rate, or (c) the Eurodollar Rate plus 1.000%, whichever is highest, plus a margin of 0.000% to 0.375% based on the same leverage ratio, depending upon instructions from the Company. Borrowings under the Eurodollar Rate have a contract repayment date of 12 months, or less. Borrowings under the base rate can be made on an overnight basis and have a final maturity of five years. The Company must pay a commitment fee on the unused portion of the Revolving Credit Facility at a rate from 0.100% to 0.225% based on a net leverage ratio. The Company may prepay, reduce or terminate the commitments without penalty. Swing line loans under the Revolving Credit Facility will bear interest at the base rate plus the then applicable margin for base rate loans. The Credit Agreement provides that certain material domestic subsidiaries must guarantee the Revolving Credit Facility, subject to certain limitations on the amount secured. As of January 1, 2021, no subsidiary guarantees were required to be executed under the Credit Agreement. The Credit Agreement contains provisions that limit the Company's ability to, among other things, incur future indebtedness, contingent obligations or liens, guarantee indebtedness, make certain investments and capital expenditures, sell stock or assets and pay dividends, and consummate certain mergers or acquisitions. The Credit Agreement contains affirmative and negative covenants applicable to the Company and its subsidiaries that are typical for credit facilities of this type, and that are subject to materiality and other qualifications, carve-outs, baskets and exceptions. The Company agreed to maintain a financial covenant which requires a maximum consolidated net leverage ratio. The Company was in compliance with all financial covenants under the Credit Agreement for all periods within these condensed consolidated financial statements. Other Borrowings VMS’s Japanese subsidiary (“VMS KK”) has an unsecured uncommitted credit agreement with Sumitomo that enables VMS KK to borrow and have outstanding at any given time a maximum of 3.0 billion Japanese Yen (the “Sumitomo Credit Facility”). In February 2020, the Sumitomo Credit Facility was extended and will expire on March 1, 2021. Borrowings under the Sumitomo Credit Facility accrue interest based on the basic loan rate announced by the Bank of Japan plus a margin of 0.5%. As of January 1, 2021, the Company did not have an outstanding principal balance on its Sumitomo Credit Facility. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Jan. 01, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIESThe Company measures all derivatives at fair value on the Condensed Consolidated Balance Sheets. The accounting for gains or losses resulting from changes in the fair value of those derivatives depends upon the use of the derivative and whether it qualifies for hedge accounting. The fair value of derivative instruments reported on the Company's Condensed Consolidated Balance Sheets were as follows: January 1, October 2, (In millions) Balance Sheet Fair Value Derivatives designated as hedging instruments: Foreign exchange forward contracts Accrued liabilities $ (6.0) $ (0.1) Derivatives not designated as hedging instruments: Foreign exchange forward contracts Prepaid expenses and other current assets 0.1 — Foreign exchange forward contracts Accrued liabilities (2.1) — Total derivatives $ (8.0) $ (0.1) Cash Flow Hedging Activities The Company had the following outstanding foreign currency forward contracts that were entered into to hedge forecasted revenues and designated as cash flow hedges: January 1, October 2, (In millions) Notional Value Sold Australian Dollar $ 14.7 $ 19.3 Euro 87.1 117.3 Japanese Yen 47.0 61.0 $ 148.8 $ 197.6 The following table presents the amounts, before tax, recognized in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets: Loss Recognized in Other Comprehensive Earnings (Loss) Three Months Ended (In millions) January 1, January 3, Foreign currency forward contracts $ (6.3) $ (0.1) As of January 1, 2021, the net unrealized loss on derivatives, before tax, of $6.0 million was included in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets and is expected to be reclassified into net earnings over the next 12 months. The effect of cash flow hedge accounting on the Condensed Consolidated Statements of Earnings was as follows: Location and Amount Recognized in Earnings on Cash Flow Hedging Relationships Three Months Ended January 1, 2021 January 3, 2020 (In millions) Revenues Revenues Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value and cash flow hedges are recorded $ 778.8 $ 828.9 Gain on cash flow hedge relationships: Foreign currency forward contracts: Amount of gain (loss) reclassified from accumulated other comprehensive loss into net earnings $ (0.4) $ 0.8 Balance Sheet Hedging Activities The Company also hedges balance sheet exposures from its various subsidiaries and business units where the U.S. Dollar is the functional currency. For derivative instruments not designated as hedging instruments, changes in their fair values are recognized in other income, net in the Condensed Consolidated Statements of Earnings. Changes in the values of these hedging instruments are offset by changes in the values of foreign-currency-denominated assets and liabilities. The notional amount of the Company's outstanding foreign currency forward contracts relating to balance sheet hedging activities: (In millions) January 1, October 2, Notional value sold $ 576.6 $ 459.7 Notional value purchased $ 139.8 $ 117.5 The following table presents the gains recognized in the Condensed Consolidated Statements of Earnings related to the foreign currency forward contracts that are not designated as hedging instruments. Location of Loss Recognized in Net Earnings on Derivative Instruments Amount of Loss Recognized in Net Earnings on Derivative Instruments Three Months Ended (In millions) January 1, January 3, Other income, net $ (19.6) $ (5.0) The gains (losses) on these derivative instruments were significantly offset by the gains (losses) resulting from the re-measurement of monetary assets and liabilities denominated in currencies other than the U.S. Dollar functional currency. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jan. 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Product Warranty The following table reflects the changes in the Company’s accrued product warranty: Three Months Ended (In millions) January 1, January 3, Accrued product warranty, at beginning of period $ 38.9 $ 43.2 Charged to cost of revenues 16.7 20.8 Actual product warranty expenditures (16.8) (17.8) Accrued product warranty, at end of period $ 38.8 $ 46.2 Accrued product warranty was included in accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. Leases The following table summarizes the components of the Company's lease cost: Three Months Ended (In millions) January 1, January 3, Operating lease cost $ 8.6 $ 7.8 Finance lease cost: Amortization of right-of-use assets 0.2 0.1 Interest on lease liabilities 0.1 0.1 Variable lease cost 3.7 4.5 Total lease cost $ 12.6 $ 12.5 The following table summarizes the supplemental cash flow information related to the Company's operating leases: Three Months Ended (In millions) January 1, January 3, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for leases $ 8.7 $ 8.8 The following table summarizes supplemental balance sheet information related to the Company's operating and finance leases: January 1, October 2, (In millions) 2021 2020 Operating leases: Operating right-of-use assets $ 119.5 $ 121.0 Accrued liabilities $ 27.2 $ 27.2 Long-term lease liabilities 101.7 101.1 Total lease liabilities $ 128.9 $ 128.3 Finance leases: Property, plant, and equipment, net $ 10.6 $ 11.5 Accrued liabilities $ 3.1 $ 3.4 Other long-term liabilities 8.5 8.7 Total lease liabilities $ 11.6 $ 12.1 The following table summarizes the weighted lease term and discount rate by operating and finance leases: January 1, 2021 Weighted average remaining lease term in years Operating leases 7.0 Finance leases 4.0 Weighted average discount rate Operating leases 4.9 % Finance leases 3.9 % As of January 1, 2021, the future minimum lease payments are as follows: (In millions) Operating Leases Finance leases Remainder of 2021 $ 25.3 $ 2.9 2022 28.3 3.3 2023 22.4 3.3 2024 16.3 1.3 2025 12.9 0.8 Thereafter 56.8 0.9 Total minimum lease payments $ 162.0 $ 12.5 Less: imputed interest 33.1 0.9 Total lease liability $ 128.9 $ 11.6 Lessor Arrangements The Company leases some of its equipment to certain customers through operating leases, which generally have a term of 10 to 17 years. As of January 1, 2021, the Company had $27.1 million and $10.0 million included in property, plant and equipment and accumulated depreciation, respectively, related to equipment leased to customers. As of October 2, 2020, the Company had $26.5 million and $9.1 million included in property, plant and equipment and accumulated depreciation, respectively, related to equipment leased to customers. The Company recorded income of $2.6 million and $2.5 million during the three months ended January 1, 2021 and January 3, 2020 on these equipment leases. Contingencies Environmental Remediation Liabilities The Company’s operations and facilities, past and present, are subject to environmental laws, including laws that regulate the handling, storage, transport and disposal of hazardous substances. Certain of those laws impose cleanup liabilities on the Company in connection with its past and present operations. Those include facilities sold as part of the Company’s electron devices business in 1995 and thin film systems business in 1997. As a result, the Company oversees various environmental cleanup projects and receives reimbursements from third parties for a portion of the costs of its cleanup activities. As of January 1, 2021, and October 2, 2020, the Company had accrued $3.9 million and $4.0 million, respectively, net of third parties' indemnification obligations, for environmental remediation liabilities. The Company believes its reserve is adequate; however, as the scope of the Company’s obligations becomes more clearly defined, the Company may modify the reserve, and charge or credit future earnings accordingly. Based on information currently known to management, management believes the costs of these environmental-related matters are not reasonably likely to have a material adverse effect on the consolidated financial statements of the Company in any one fiscal year. The Company also reimburses certain third parties for cleanup activities. The amount the Company spent on environmental cleanup costs, third-party claim costs, project management costs and legal costs in the three months ended January 1, 2021, and January 3, 2020, was not material. Proposed Acquisition by Siemens Healthineers In connection with the proposed acquisition by Siemens Healthineers in August 2020, the Company expects to incur approximately $110 million in advisory fees that are contingent upon closing the pending acquisition by Siemens Healthineers. The Merger is expected to close in the first half of calendar year 2021, subject to receipt of specified regulatory approvals and other customary closing conditions. On October 15, 2020, VMS' stockholders approved and adopted the Merger Agreement. Under the terms of the Merger Agreement, if the Merger Agreement is terminated by VMS or Siemens Healthineers under certain specified circumstances, a termination fee of $450.0 million in cash may be payable by VMS to Siemens Healthineers. The Merger Agreement also provides that a reverse termination fee of $450.0 million or $925.0 million in cash may be payable by Siemens Healthineers to VMS if the Merger Agreement is terminated by VMS or Siemens Healthineers under certain specified circumstances. Other Matters On October 16, 2018, Best Medical International, Inc. sued the Company in U.S. District Court in the District of Delaware, alleging infringement of four patents related to treatment planning. The Company intends to defend the suit vigorously. The suit is in the discovery stage, the parties have completed mediation, and a trial date is currently scheduled for April 2022. At January 1, 2021, the Company has accrued $8.5 million representing its best estimate of the loss that may result from this action. The ultimate outcome of this matter is uncertain and may result in a materially different outcome. From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that the Company believes will result in a probable loss (including, among other things, probable settlement value). A loss or a range of loss is disclosed when it is reasonably possible that a material loss will be incurred and can be estimated or when it is reasonably possible that the amount of a loss, when material, will exceed the recorded provision. In addition to the above, the Company is involved in other legal matters. However, such matters are subject to many uncertainties, and outcomes are not predictable with assurance. The Company is unable to estimate a loss or a range of reasonably possible losses with respect to such matters. There can be no assurances as to whether the Company will become subject to significant additional claims and liabilities with respect to ongoing or future proceedings. If actual liabilities significantly exceed the estimates made, the Company’s consolidated financial position, results of operations or cash flows could be materially adversely affected. Legal expenses relating to legal matters are expensed as incurred. Restructuring Charges 2020 Restructuring Plan In the third quarter of fiscal year 2020, the Company implemented a global workforce reduction ("2020 Restructuring plan"), as part of the Company's plan to enhance operational performance through productivity initiatives in response to the impact of the COVID-19 pandemic. The table below shows the activity of the 2020 Restructuring plan: (in millions) October 2, Restructuring Charges Cash Payments January 1, 2020 Restructuring plan $ 6.7 $ 0.7 $ (3.0) $ 4.4 The remaining balance of $4.4 million is expected to be paid in fiscal year 2021. The Company does not expect to incur additional restructuring charges under this plan. The restructuring charges are included in selling, general and administrative in the Condensed Consolidated Statements of Earnings. |
RETIREMENT PLANS
RETIREMENT PLANS | 3 Months Ended |
Jan. 01, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS The Company sponsors multiple defined benefit pension plans for regular full-time employees in Germany, Japan, India, Switzerland and the United Kingdom. The Company also sponsors a post-retirement benefit plan that provides healthcare benefits to certain eligible retirees in the United States. The components of net periodic benefit costs were as follows: Three Months Ended (In millions) January 1, January 3, Defined Benefit Plans Service cost $ 3.3 $ 2.5 Interest cost 0.5 0.5 Expected return on plan assets (1.9) (1.9) Amortization of prior service cost (0.4) (0.2) Recognized actuarial loss 0.9 1.1 Net periodic benefit cost $ 2.4 $ 2.0 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 01, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rate was 22.2% and 21.0% for the three months ended January 1, 2021, and January 3, 2020, respectively. The Company's effective tax rate was higher for the three months ended January 1, 2021, as compared to the year-ago period, primarily because of a shift in the geographic mix of earnings, partially offset by a greater benefit from discrete items, primarily the tax benefit from an excess deduction related to stock-based compensation. The Company’s effective income tax rate differs from the U.S. federal statutory rate primarily because the Company’s foreign earnings are taxed at rates that are, on average, lower than the U.S. federal rate, and because the Company’s domestic earnings are subject to state income taxes. The total amount of unrecognized tax benefits did not materially change during the three months ended January 1, 2021; however, the amount of unrecognized tax benefits has increased as a result of positions taken during the current and prior years and has decreased as the result of the expiration of the statutes of limitation in various jurisdictions. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Jan. 01, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Share Repurchase Program In November 2016, the VMS Board of Directors authorized the repurchase of an additional 8.0 million shares of VMS common stock commencing on January 1, 2017. Share repurchases under the Company's authorizations may be made in open market purchases, in privately negotiated transactions (including accelerated share repurchase programs), or under Rule 10b5-1 share repurchase plans, and may be made from time to time in one or more blocks. All shares that were repurchased under the Company's share repurchase programs have been retired. As of January 1, 2021, approximately 1.6 million shares of VMS common stock remained available for repurchase under the November 2016 authorization. At the beginning of the third quarter of fiscal year 2020, as a precautionary measure due to the COVID-19 pandemic, the Company paused its share repurchase program. The Company repurchased shares of VMS common stock during the periods presented as follows: Three Months Ended (In millions, except per share amounts) January 1, January 3, Number of shares — 0.3 Average repurchase price per share $ — $ 139.67 Total cost of shares repurchased $ — $ 46.4 Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component and related tax effects are summarized as follows: (In millions) Net Unrealized Gains Net Cumulative Accumulated Balance at October 2, 2020 $ (46.9) $ (0.1) $ (38.7) $ (85.7) Other comprehensive earnings (loss) before reclassifications — (6.3) 13.0 6.7 Amounts reclassified out of other comprehensive earnings (loss) 0.4 0.4 — 0.8 Tax benefit — 1.4 — 1.4 Balance at January 1, 2021 $ (46.5) $ (4.6) $ (25.7) $ (76.8) (In millions) Net Unrealized Gains Net Cumulative Accumulated Balance at September 27, 2019 $ (61.7) $ 2.1 $ (42.5) $ (102.1) Other comprehensive earnings (loss) before reclassifications — (0.1) 5.1 5.0 Amounts reclassified out of other comprehensive earnings (loss) 0.9 (0.8) — 0.1 Tax (expense) benefit (0.2) 0.2 — — Balance at January 3, 2020 $ (61.0) $ 1.4 $ (37.4) $ (97.0) The amounts reclassified, before taxes, out of other comprehensive earnings into the Condensed Consolidated Statements of Earnings, with line item location, during each period were as follows: (In millions) Three Months Ended Other Comprehensive Earnings Components January 1, January 3, Line Item in Statements of Earnings Unrealized loss on defined benefit pension and post-retirement benefit plans $ (0.4) $ (0.9) Other income, net Unrealized earnings (loss) on cash flow hedging instruments (0.4) 0.8 Revenues Total amounts reclassified out of other comprehensive earnings $ (0.8) $ (0.1) |
EMPLOYEE STOCK PLANS
EMPLOYEE STOCK PLANS | 3 Months Ended |
Jan. 01, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EMPLOYEE STOCK PLANS | EMPLOYEE STOCK PLANS The table below summarizes the share-based compensation expense recognized for employee stock awards and employee stock purchase plan shares: Three Months Ended (In millions) January 1, January 3, Cost of revenues - Product $ 1.0 $ 0.8 Cost of revenues - Service 1.6 1.3 Research and development 1.9 1.2 Selling, general and administrative 12.2 11.6 Total share-based compensation expense $ 16.7 $ 14.9 Income tax benefit for share-based compensation $ (3.3) $ (2.9) The fair value of stock options and performance stock options granted was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: Three Months Ended January 1, January 3, Employee Stock Option Plans (1) Expected term (in years) — 3.8 Risk-free interest rate — % 1.6 % Expected volatility — % 26.0 % Expected dividend — % — % Weighted average fair value at grant date (2) $ — $ 29.42 (1) The Company did not grant stock options to its employees in the period ending January 1, 2021. (2) Excludes the fair value of the market condition based on relative total shareholder return for the performance stock options granted during the period. The option component of employee stock purchase plan shares was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: Three Months Ended January 1, January 3, Employee Stock Purchase Plan Expected term (in years) 0.50 0.50 Risk-free interest rate 0.1 % 1.6 % Expected volatility 2.4 % 26.4 % Expected dividend — % — % Weighted average fair value at grant date $ 27.10 $ 27.58 The activity for stock options and performance stock options is summarized as follows: Options Outstanding (In millions, except per share amounts) Number of Weighted Weighted Aggregate Intrinsic Value (1) Balance at October 2, 2020 1.9 $ 110.79 Cancelled or expired (0.1) 108.59 Exercised (0.5) 97.90 Balance at January 1, 2021 1.3 $ 115.67 4.5 $ 78.8 Exercisable at January 1, 2021 0.6 $ 99.56 3.5 $ 47.8 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, which is computed based on the difference between the exercise price and the closing price of VMS common stock of $175.01 as of December 31, 2020, the last trading date of the first quarter of fiscal year 2021, and represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date. As of January 1, 2021, there was $12.3 million of total unrecognized compensation expense related to stock options and performance stock options granted under the Company's employee stock plans. This unrecognized compensation expense is expected to be recognized over a weighted average period of 1.6 years. As of January 1, 2021, there was $1.7 million of total unrecognized compensation expense related to cash-settled stock appreciation rights granted outside of the Company's employee stock plans. This unrecognized compensation expense is expected to be recognized over a weighted average period of 1.8 years. The activity for restricted stock units, deferred stock units and performance units is summarized as follows: (In millions, except per share amounts) Number of Weighted Average Balance at October 2, 2020 0.7 $ 133.82 Granted 0.3 173.51 Vested (0.1) 129.34 Cancelled or expired — 119.34 Balance at January 1, 2021 0.9 $ 148.44 As of January 1, 2021, unrecognized compensation expense totaling $89.4 million was related to awards of restricted stock units, deferred stock units and performance units granted under the Company's employee stock plans. This unrecognized share-based compensation expense is expected to be recognized over a weighted average period of 2.4 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jan. 01, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net earnings per share: Three Months Ended (In millions, except per share amounts) January 1, January 3, Net earnings $ 96.8 $ 88.9 Less: Net earnings attributable to noncontrolling interests 0.3 0.7 Net earnings attributable to Varian $ 96.5 $ 88.2 Denominator: Weighted average shares outstanding - basic 91.4 90.9 Dilutive effect of potential common shares 0.8 0.8 Weighted average shares outstanding - diluted 92.2 91.7 Net earnings per share attributable to Varian - basic $ 1.06 $ 0.97 Net earnings per share attributable to Varian - diluted $ 1.05 $ 0.96 Anti-dilutive employee share-based awards, excluded — 0.8 |
PROTON SOLUTIONS LOANS AND INVE
PROTON SOLUTIONS LOANS AND INVESTMENTS | 3 Months Ended |
Jan. 01, 2021 | |
Receivables [Abstract] | |
PROTON SOLUTIONS LOANS AND INVESTMENTS | PROTON SOLUTIONS LOANS AND INVESTMENTS In limited cases, the Company participates, along with other investors and at market terms, in the financing of proton therapy centers. Over time, the Company has divested some of its investments, including investments in CPTC, the New York Proton Center ("NYPC"), the Georgia Proton Treatment Center and the Delray Radiation Therapy Center. The following table lists the Company's notes receivable, including accrued interest, senior secured debt, available-for-sale securities, loans outstanding and future commitments for funding the development, construction and operation of various proton therapy centers: January 1, 2021 October 2, 2020 (In millions) Balance Balance Notes Receivable and Secured Debt: (1) NYPC loan $ 35.7 $ 34.9 RPTC senior secured debt 26.4 25.2 Proton International LLC loan 1.8 1.8 $ 63.9 $ 61.9 Available-For-Sale Securities: (1) MPTC Series B-1 Bonds $ 19.2 $ 18.9 MPTC Series B-2 Bonds 21.1 20.6 APTC securities 5.5 5.4 $ 45.8 $ 44.9 CPTC Loans: CPTC Loans (2) $ 11.8 $ 11.8 (1) Included in other assets at January 1, 2021, and October 2, 2020, on the Company's Condensed Consolidated Balance Sheets, except for amounts related to short-term interest receivable. (2) Included in prepaid and other current assets at January 1, 2021 and October 2, 2020, on the Company's Condensed Consolidated Balance Sheets. Alabama Proton Therapy Center ("APTC") Securities In December 2017, the Company purchased $6.0 million in Subordinate Revenue Bonds, which financed the APTC. The Subordinate Revenue Bonds carry an interest rate of 8.5% and pay interest semi-annually. In fiscal year 2020, the Company recorded a $0.9 million impairment charge on the Subordinate Revenue Bonds. The Company is scheduled to start receiving annual principal payments on the Subordinate Revenue Bonds beginning on November 1, 2022. The Subordinate Revenue Bonds will mature on October 1, 2047. At January 1, 2021, and October 2, 2020, the Company had $7.2 million and $6.9 million in trade and unbilled receivables, respectively, which included $5.7 million in long-term unbilled receivables for both periods from APTC. Rinecker Proton Therapy Center ("RPTC") Senior Secured Debt In July 2017, the Company purchased the outstanding senior secured debt related to the RPTC in Munich, Germany for €21.5 million, or $24.5 million. By purchasing the senior secured debt, the Company has a right to approximately 77 million Euros in claims against all of RPTC's assets. In September 2017, the management of RPTC filed for bankruptcy in Germany. In January 2018, the final insolvency proceedings commenced, and in December 2019 the center closed for clinical operations and decommissioning began. Upon finalization of bankruptcy proceedings, the Company believes it is probable it will recover the outstanding senior secured debt balance and trade accounts receivable, net. The Company classified its senior secured debt as long-term other assets because it expects the bankruptcy proceedings to be completed in more than one year. At January 1, 2021, and October 2, 2020, the Company had $4.1 million and $4.2 million, respectively, in long-term trade receivables, net, from RPTC, which does not include any unbilled receivables. New York Proton Center ("NYPC") Loan In July 2015, the Company committed to loan up to $91.5 million to MM Proton I, LLC, the project developer of the NYPC. In June 2016, the Company assigned $73.0 million of this loan to Deutsche Bank AG. The remaining balance is comprised of an $18.5 million “Subordinate Loan” with a six-and-a-half-year term at up to 13.5% interest. In December 2019, the interest rate on the loan was reduced to 10%, effective May 1, 2019. As of January 1, 2021, the Subordinate Loan was $35.7 million, including accrued interest. The principal balance and accrued interest on the Subordinate Loan are due in full at maturity in January 2022. At January 1, 2021 and October 2, 2020, the Company had $8.3 million and $20.0 million, respectively, in trade and unbilled receivables, which included $1.0 million and $5.0 million in unbilled receivables, respectively, from NYPC. Maryland Proton Treatment Center ("MPTC") Securities In August 2018, MPTC refinanced its then outstanding subordinated debt, including accrued interest, and notes receivable balances. As part of the refinancing, in exchange for its then outstanding subordinated loan, the Company received $22.9 million in Subordinate Revenue Bonds ("MPTC Series B-2 Bonds") that carry an interest rate of 8.5% per annum with interest accruing up to the MPTC Series B-2 Bonds face amount of $33.9 million until January 1, 2022, and then will pay cash interest semi-annually. The MPTC Series B-2 Bonds will mature on January 1, 2049. In exchange for its outstanding deferred equipment payment arrangement, the Company also received $6.0 million in cash and $25.0 million in Subordinate Revenue Bonds ("MPTC Series B-1 Bonds") that carry an interest rate of 7.5% with interest accruing up to the MPTC Series B-1 Bonds face amount of $32.0 million until January 1, 2022, and then will pay cash interest semi-annually. In fiscal year 2020, the Company recorded $16.9 million in impairment charges on its MPTC Series B-1 Bonds and MPTC Series B-2 Bonds. The MPTC Series B-1 Bonds will mature on January 1, 2048. The MPTC Series B-1 Bonds are senior in right and time to the MPTC Series B-2 Bonds. At both January 1, 2021 and October 2, 2020, the Company had $0.6 million in net trade and unbilled receivables, respectively, from MPTC. California Proton Therapy Center ("CPTC") Loans Between September 2011 and November 2015, the Company, ORIX and J.P. Morgan (the "Lenders”) funded loans (“Original CPTC Loans”) to the Scripps Proton Therapy Center in San Diego, California. ORIX is the loan agent. In March 2017, California Proton Treatment Center, LLC ("Original CPTC") filed for bankruptcy and concurrently entered into a Debtor-in-Possession Facility (the "DIP Facility") with the Lenders where the Company's pro-rata share of the DIP Facility was $7.3 million. In September 2017, the Lenders and Scripps signed a Transition Agreement to transition the operations of the center from Scripps to Proton Doctors Professional Corporation. As a result of these events, the Company recorded an impairment charge of $51.4 million to its Original CPTC Loans in fiscal year 2017. Pursuant to an order of the Bankruptcy Court, the California Proton Treatment Center ("Original CPTC") conducted an auction of the Scripps Proton Therapy Center. On December 6, 2017 (“Closing Date”), the Bankruptcy Court approved the sale of Scripps Proton Therapy Center to California Proton Therapy Center, LLC (“CPTC”), an entity owned by the Lenders. The Lenders purchased all assets and assumed $112.0 million of Original CPTC’s outstanding liabilities. On December 13, 2017, the Bankruptcy Court dismissed the bankruptcy filing of Original CPTC. On the Closing Date, the Lenders entered into a Credit Agreement with Original CPTC of which the terms of the Original CPTC Loans, DIP Facility and accrued interest (collectively “Former Loans”) have been modified. In addition to the partially satisfied Original CPTC Loans reinstated by the Bankruptcy Court, the Company received a 47.08% equity ownership in CPTC, which it sold for a nominal amount in March 2019. Original CPTC has assigned all its Former Loans to CPTC at an amount of $112.0 million, the partially satisfied loan balance. Per the terms of the Credit Agreement, the Company's portion of the $112.0 million is $53.5 million; the remainder is allocated between ORIX and J.P. Morgan. The $53.5 million is composed of four tranches: Tranche A of $2.0 million, Tranche B of $7.2 million, Tranche C of $15.6 million, and Tranche D of $28.7 million (collectively, the "Term Loan"). The original maturity date of the Term Loan was three years from the Closing Date. The Term Loan is secured by the assets of CPTC. In addition, the Lenders have committed to lend up to $15.0 million in a Revolving Loan with an original maturity date of one year from the Closing Date. The Company's share of the funding commitment from the Revolving Loan is $7.2 million, and as of January 1, 2021, the Company has fully funded the Revolving Loan. In December 2020, the Lenders granted an extension of the maturity date of both the Term Loan and Revolving Loan to December 31, 2021. All of the tranches accrue paid-in-kind interest at 7.5% per annum, except the Tranche B and the Revolving Loan, which accrue paid-in-kind interest at 10% per annum. The seniority of these loans is as follows: Revolving Loan, Tranche A, Tranche B, Tranche C and Tranche D. If CPTC is in default, the interest rate of the Tranche A, C and D will increase to 9.5% and the interest rate on the Tranche B and the Revolving Loan will increase to 12.0%. Primarily as a result of the COVID-19 pandemic, during March and April 2020, CPTC suffered material negative impacts to its operating plan, including declines in current and projected patient volume and delays in partnership with a significant clinical partner. Therefore, the Company concluded it was no longer probable that it will collect the amounts owed under the Term Loan and Revolving Loan (collectively "CPTC Loans") when due and recorded a $40.5 million impairment charge to its CPTC Loans using the probability weighted expected return model, utilizing management's assumptions of different outcomes, in the Condensed Consolidated Statements of Earnings in the second quarter of fiscal year 2020. As a result of this impairment charge, the CPTC Loans were written down to their estimated fair value of $10.0 million. As of January 1, 2021, the fair value of the CPTC Loans was $11.8 million. At both January 1, 2021, and October 2, 2020, the Company had $3.1 million in trade receivables, net, from CPTC. Variable Interest Entities The Company has determined that, CPTC, MM Proton I, LLC and RPTC are variable interest entities and that the Company holds a significant variable interest of each of the entities through its participation in the loan facilities and its agreements to supply and service the proton therapy equipment. The Company has no voting rights, has no special approval authority or veto rights for these centers' budget, and does not have the power to direct patient recruitment, clinical operations and management of these entities, which the Company believes are the matters that most significantly affect their economic performance. The Company has concluded that it is not the primary beneficiary of any of these entities. The Company’s exposure to loss as a result of its involvement with CPTC, MM Proton I, LLC and RPTC is limited to the carrying amounts of the above-mentioned assets on its Condensed Consolidated Balance Sheets. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Jan. 01, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATIONThe Company has two reportable operating segments: Oncology Systems and Proton Solutions. The Company's Interventional Solutions business is reflected in the "Other" category because it does not meet the criteria for a reportable operating segment. The operating segments were determined based on how the Company’s Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), views and evaluates the Company’s operations. The CODM allocates resources to, and evaluates the financial performance of each operating segment primarily based on operating earnings. Description of Segments The Oncology Systems segment designs, manufactures, sells and services hardware and software products for treating cancer with conventional radiation therapy, and advanced treatments such as fixed field intensity-modulated radiation therapy (“IMRT”), image-guided radiation therapy (“IGRT”), volumetric modulated arc therapy ("VMAT"), stereotactic radiosurgery (“SRS”), stereotactic body radiotherapy (“SBRT”) and brachytherapy as well as associated quality assurance equipment. The Oncology Systems’ hardware products include linear accelerators, brachytherapy afterloaders, treatment accessories, artificial intelligence-powered adaptive delivery systems and quality assurance software. The Oncology Systems’ software solutions include treatment planning, informatics, clinical knowledge exchange, patient care management, practice management and decision support for comprehensive cancer clinics, radiotherapy centers and medical oncology practices. Oncology Systems’ products enable radiation oncology departments in hospitals and clinics to perform conventional radiotherapy treatments and offer advanced treatments such as IMRT, IGRT, VMAT, SRS and SBRT, and treat patients using brachytherapy techniques, which involve the introduction or temporary insertion of radioactive sources. The Oncology Systems' products are also used by surgeons and radiation oncologists to perform stereotactic radiosurgery and by medical oncology departments to manage patient treatments. Oncology Systems’ customers worldwide include university research and community hospitals, private and governmental institutions, healthcare agencies, physicians’ offices, medical oncology practices, radiotherapy centers and cancer care clinics. The Oncology Systems segment offers services ranging from hardware phone support, break/fix repair of linear accelerators, obsolescence protection of hardware, software support, software upgrades, hosting as a service, as well as clinical consulting services. The Oncology Systems segment also provides clinical practice services that assist within the clinical workflow. These services focus on decision support and/or cancer care knowledge augmentation aimed at facilitating improved accessibility and affordability to care while maintaining a fundamental level of clinical quality. Further, the Company operates 13 multi-disciplinary cancer centers and one specialty hospital in India and one multi-disciplinary cancer center in Sri Lanka. The Proton Solutions segment develops, designs, manufactures, sells and services products and systems for delivering proton therapy, another form of external beam radiotherapy using proton beams, for the treatment of cancer. The Other category primarily includes the Interventional Solutions business, which offers products for interventional oncology procedures and treatments, including cryoablation, microwave ablation and embolization. Interventional Solutions also provides software and remote services for post treatment dose calculation for Yttrium-90 microspheres used in selective internal radiation therapy. The Other category also includes assets related to the use of radiation in the heart and other forms of radiosurgery for cardiovascular disease. The Company allocates corporate costs to its operating segments based on the relative revenues of Oncology Systems, Proton Solutions and Interventional Solutions. The Company allocates these costs, excluding certain corporate related costs, transactions or adjustments that the Company's CODM considers to be non-operational, such as restructuring and impairment charges, significant litigation charges or benefits and legal costs, and acquisition-related expenses. Although the Company excludes these amounts from segment operating earnings, they are included in the condensed consolidated operating earnings and included in the reconciliation below. Accordingly, the following information is provided for purposes of achieving an understanding of operations but may not be indicative of the financial results of the reported segments were they independent organizations. In addition, comparisons of the Company’s operations to similar operations of other companies may not be meaningful. The following table summarizes select financial results for each reportable segment: Three Months Ended (In millions) January 1, January 3, Revenues Oncology Systems $ 744.5 $ 782.4 Proton Solutions 25.6 27.6 Total reportable segments 770.1 810.0 Other 8.7 18.9 Total Company $ 778.8 $ 828.9 Earnings before taxes Oncology Systems $ 142.0 $ 136.4 Proton Solutions (10.5) (14.3) Total reportable segments 131.5 122.1 Other (5.3) 2.8 Unallocated corporate (9.0) (14.9) Operating earnings 117.2 110.0 Interest income (expense), net 1.5 (1.7) Other income, net 5.7 4.4 Total Company $ 124.4 $ 112.7 Disaggregation of Revenues The Company disaggregates its revenues from contracts by major product categories, geographic region, and by timing of revenue recognition for each of its reportable operating segments, as the Company believes this best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. See details in the tables below. Revenues by Product Type Three Months Ended Total Revenues by Product Type January 1, January 3, (In millions) 2021 2020 Hardware Oncology Systems $ 279.8 $ 320.0 Proton Solutions 15.6 20.1 Other 8.7 18.9 Total Hardware 304.1 359.0 Software (1) Oncology Systems 142.8 148.8 Proton Solutions 1.4 — Total Software 144.2 148.8 Service Oncology Systems 321.9 313.6 Proton Solutions 8.6 7.5 Total Service 330.5 321.1 Total Revenues $ 778.8 $ 828.9 (1) Includes software support agreements that are recorded in revenues from service, and software licenses that are recorded in revenues from product in the Condensed Consolidated Statements of Earnings. Revenues by Geographical Region Three Months Ended Total Revenues by Geographical Region January 1, January 3, (In millions) 2021 2020 Americas Oncology Systems $ 332.5 $ 378.9 Proton Solutions 11.3 16.9 Other 5.2 6.4 Total Americas 349.0 402.2 EMEA Oncology Systems 254.2 259.8 Proton Solutions 11.9 10.3 Other 1.5 2.8 Total EMEA 267.6 272.9 APAC Oncology Systems 157.8 143.7 Proton Solutions 2.4 0.4 Other 2.0 9.7 Total APAC 162.2 153.8 Total Revenues $ 778.8 $ 828.9 North America (1) Oncology Systems $ 313.1 $ 355.2 Proton Solutions 11.3 16.9 Other 5.2 6.4 Total North America 329.6 378.5 International Oncology Systems 431.4 427.2 Proton Solutions 14.3 10.7 Other 3.5 12.5 Total International 449.2 450.4 Total Revenues $ 778.8 $ 828.9 (1) North America primarily includes the United States and Canada. Revenues by Timing of Revenue Recognition Three Months Ended Timing of revenue recognition January 1, January 3, (In millions) 2021 2020 Products transferred at a point in time Oncology Systems $ 338.5 $ 382.0 Proton Solutions 1.4 — Other 8.7 18.9 Total products transferred at a point in time 348.6 400.9 Products and services transferred over time Oncology Systems 406.0 400.4 Proton Solutions 24.2 27.6 Total products and services transferred over time 430.2 428.0 Total Revenues $ 778.8 $ 828.9 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Jan. 01, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Business Combinations in Fiscal Year 2021 The Company completed an acquisition related to its Oncology Systems business that was not material in the first quarter of fiscal year 2021, which was comprised of intangible assets acquired and contingent consideration. The Company has included this acquisition in its Oncology Systems business. The purchase accounting for this transaction is not yet finalized. Measurement Period Adjustments In the first quarter of fiscal year 2021, the Company recorded a measurement period adjustment of $0.5 million to the fair value of the purchase consideration of a business combination that occurred in the fourth quarter of fiscal year 2020. The adjustment consisted of an increase to goodwill and a corresponding increase to the fair value of the contingent consideration liability . Business Combinations in Fiscal Year 2020 During fiscal year 2020, the Company acquired a distributor of radiotherapy equipment, f or a purchase price of $32.7 million, which consisted of $25.5 million in cash consideration, $5.8 million of contingent consideration and $1.4 million in other consideration. The purchase price primarily consisted of $13.1 million in goodwill and $12.1 million in finite-lived intangible assets. The Company has included this acquisition in its Oncology Systems business. The goodwill for this acquisition is not deductible for income tax. The purchase accounting for this transaction is not yet finalized. The Company also completed five other acquisitions which had an aggregate purchase price of $11.5 million. The Company has included these acquisitions in its Oncology Systems business. The purchase accounting for some of these transactions is not yet finalized. Other Information The excess of purchase price over the fair value amounts assigned to the assets acquired and liabilities assumed represents the goodwill amount. The Company believes the factors that contributed to goodwill in its completed acquisitions include synergies not available to market participants, as well as the acquisition of a talented workforce. The fair value of assets acquired and liabilities assumed, has been determined on a preliminary basis for acquisitions completed in the current year and certain acquisitions in the previous fiscal year. The Company will finalize these amounts as it obtains the information necessary to complete the measurement process. Any changes resulting from facts and circumstances that existed as of the date of a business combination may result in certain adjustments. The Company expects to finalize these amounts no later than one year from the date of each business combination. The condensed consolidated financial statements include the operating results from the date the above businesses were acquired. Pro forma results of operations for the completed acquisitions have not been presented because the effects were not material to the Company's condensed consolidated financial statements. The Company incurred transaction costs of $7.5 million and $3.9 million during the three months ended January 1, 2021 and January 3, 2020, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jan. 01, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of October 2, 2020, was derived from audited financial statements as of that date, but does not include all disclosures required by GAAP. These condensed consolidated financial statements and the accompanying notes are unaudited and should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2020 (the “2020 Annual Report”). The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic and the extent and duration of the future impact on the Company's business is highly uncertain and difficult to predict. The COVID-19 pandemic has adversely impacted, and may further adversely impact, nearly all aspects of the Company’s business and markets, including its workforce and operations and the operations of its customers, suppliers, distributors and business partners. The full extent to which the pandemic will directly or indirectly impact the Company's business, results of operations and financial condition, including but not limited to revenues, gross orders, expenses, manufacturing, research and development costs, reserves and allowances, fair value measurements, asset impairment charges, contingent consideration obligations and the effectiveness of the Company's hedging instruments, will depend on future developments that are highly uncertain and difficult to predict. The Company has approximately $1.7 billion in accessible liquidity, including approximately $773 million in cash and cash equivalents and approximately $972 million available under its $1.2 billion revolving credit facility. To date, the Company has not experienced a significant decline in customer credit quality or a significant increase in requests for changes or extension of payment terms as a result of COVID-19, although management will continue to closely monitor these metrics going forward. Furthermore, the Company's ability to estimate and make certain judgments may be materially impacted by the uncertainty caused by the pandemic. |
Reclassifications | Reclassifications Certain reclassifications have been made to the amounts in the prior year in order to conform to the current year's presentation. |
Fiscal Year | Fiscal Year The fiscal years of the Company as reported are the 52- or 53-week periods ending on the Friday nearest September 30. Fiscal year 2021 is the 52-week period ending October 1, 2021. Fiscal year 2020 was the 53-week period that ended on October 2, 2020. The fiscal quarter ended January 1, 2021 was a 13-week period and the fiscal quarter ended January 3, 2020 was a 14-week period. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include those of VMS and its wholly-owned and majority-owned or controlled subsidiaries. Intercompany balances, transactions and stock holdings have been eliminated in consolidation. Consolidation of Variable Interest Entities |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Due to the COVID-19 pandemic, the Company is subject to a greater degree of uncertainty than normal in making the judgments and estimates needed to apply its significant accounting policies, such as the impairment of goodwill and intangibles, and the impairment of equity investments, available-for-sale securities and loans receivables. As the COVID-19 pandemic and responsive actions continue to develop, management may make changes to these estimates and judgments, which could result in material impacts to the Company's financial statements in future periods. |
Recently Adopted Accounting Pronouncements and Recent Accounting Standards or Updates Not Yet Effective | Recently Adopted Accounting Pronouncements In the first quarter of fiscal year 2021, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standard Update No. 2016-13 Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, such as trade and unbilled receivables, loans and loan commitments, and lease receivables. The Company adopted this standard using the modified retrospective transition method. Following the adoption of ASU 2016-13, credit loss reserves are recorded when financial assets are established if credit losses are expected over the asset’s contractual life. These losses were previously expensed when it became probable that a loss would be incurred. The adoption of this standard resulted in a decrease in retained earnings as of October 3, 2020, of $3.9 million from the cumulative effect of initially applying the standards of that date. In addition, the adoption of this standard resulted in an increase in the allowance for credit losses of trade and unbilled receivables of $3.4 million and an increase in the allowance for credit losses for notes receivable of $0.5 million. In the first quarter of fiscal year 2021, the Company adopted Accounting Standards Update No. 2018-15, I ntangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract ("ASU 2018-15"). The purpose of the update is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted ASU 2018-15 on a prospective basis. The impact of adopting ASU 2018-15 did not have a material impact on the Company's condensed consolidated financial statements. In the first quarter of fiscal year 2021, the Company adopted FASB Accounting Standards Update No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). ASU 2018-13 changes the disclosure requirements for fair value measurements, which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. The impact of adopting ASU 2018-13 did not impact the Company's condensed consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the current guidance and improving the consistent application of and simplification of other areas of the guidance. The standard is effective for the Company beginning in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is evaluating the impact of adopting this guidance on its condensed consolidated financial statements. In August 2018, the FASB i ssued Accounting Standards Update No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"). ASU 2018-14 which modifies the disclosure requirements for employers that have sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The standard is effective for the Company beginning in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is evaluating the impact of adopting this guidance on its condensed consolidated financial statements. |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Other Financial Information [Abstract] | |
Unbilled accounts receivable and deferred revenues from contracts with customers | The following table provides the Company's unbilled receivables and deferred revenues from contracts with customers: (In millions) January 1, October 2, Unbilled receivables - current $ 292.7 $ 306.2 Unbilled receivables - long-term (1) 94.1 68.6 Deferred revenues - current (845.7) (782.2) Deferred revenues - long-term (2) (76.3) (68.5) Total net unbilled receivables (deferred revenues) $ (535.2) $ (475.9) (1) Included in other assets on the Company's Condensed Consolidated Balance Sheets. (2) Included in other long-term liabilities on the Company's Condensed Consolidated Balance Sheets. |
Unfulfilled performance obligations | The following table represents the Company's unfulfilled performance obligations as of January 1, 2021, and the estimated revenues expected to be recognized in the future related to these unfulfilled performance obligations: Fiscal Years of Revenue Recognition (In millions) Remainder of 2021 2022 2023 Thereafter Unfulfilled Performance Obligations $ 1,760.1 $ 1,944.9 $ 856.2 $ 2,449.6 |
cash, cash equivalents, and restricted cash | The following table summarizes the Company's cash, cash equivalents, and restricted cash: (In millions) January 1, October 2, Cash and cash equivalents $ 773.3 $ 766.1 Restricted cash - current (1) 10.3 10.2 Restricted cash - long-term (2) 9.5 9.5 Total cash, cash equivalents, and restricted cash $ 793.1 $ 785.8 (1) Included in prepaid expenses and other current assets on the Company's Condensed Consolidated Balance Sheets. (2) Included in other assets on the Company's Condensed Consolidated Balance Sheets. |
Inventories | The following table summarizes the Company's inventories: (In millions) January 1, October 2, Raw materials and parts $ 355.8 $ 322.9 Work-in-process 74.1 82.0 Finished goods 141.8 111.4 Total inventories $ 571.7 $ 516.3 |
Other long-term liabilities | The following table summarizes the Company's other long-term liabilities: (In millions) January 1, October 2, Income taxes payable $ 171.8 $ 170.8 Deferred income taxes 100.5 101.2 Deferred revenues 76.3 68.5 Contingent consideration 28.1 25.7 Defined benefit pension plan 19.7 19.8 Other 35.3 35.8 Total other long-term liabilities $ 431.7 $ 421.8 |
Other income, net | The following table summarizes the Company's other income, net: Three Months Ended (In millions) January 1, January 3, Gain on equity investments $ 8.6 $ 1.4 Net foreign currency exchange gain (loss) (3.8) 2.4 Other, net 0.9 0.6 Total other income, net $ 5.7 $ 4.4 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. Fair Value Measurements at January 1, 2021 Quoted Prices in Significant Significant Total Type of Instruments (Level 1) (Level 2) (Level 3) Balance (In millions) Assets: Cash equivalents: Money market funds $ 87.0 $ — $ — $ 87.0 Equity investments 38.3 25.7 — 64.0 Available-for-sale securities: MPTC Series B-1 Bonds — 19.2 — 19.2 MPTC Series B-2 Bonds — 21.1 — 21.1 APTC securities — 5.5 — 5.5 Derivative assets — 0.1 — 0.1 Total assets measured at fair value $ 125.3 $ 71.6 $ — $ 196.9 Liabilities: Derivative liabilities $ — $ (8.1) $ — $ (8.1) Contingent consideration — — (47.9) (47.9) Total liabilities measured at fair value $ — $ (8.1) $ (47.9) $ (56.0) Fair Value Measurements at October 2, 2020 Quoted Prices in Active Markets for Identical Instruments Significant Significant Unobservable Inputs Total Type of Instruments (Level 1) (Level 2) (Level 3) Balance (In millions) Assets: Cash equivalents: Money market funds $ 148.0 $ — $ — $ 148.0 Equity investments — 54.6 — 54.6 Available-for-sale securities: MPTC Series B-1 Bonds — 18.9 — 18.9 MPTC Series B-2 Bonds — 20.6 — 20.6 APTC securities — 5.4 — 5.4 Total assets measured at fair value $ 148.0 $ 99.5 $ — $ 247.5 Liabilities: Derivative liabilities $ — $ (0.1) $ — $ (0.1) Contingent consideration — — (43.1) (43.1) Total liabilities measured at fair value $ — $ (0.1) $ (43.1) $ (43.2) |
Reconciliation for Assets Measured and Recorded at Fair Value on Recurring Basis | The following table presents the reconciliation for liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3): (In millions) Contingent Balance at October 2, 2020 $ (43.1) Business combinations (1.1) Adjustments to business combinations in prior year (2.8) Adjustments due to the effect of foreign exchange (0.7) Change in fair value recognized in earnings (0.2) Balance at January 1, 2021 $ (47.9) |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Receivables [Abstract] | |
Schedule of Trade and Unbilled Receivables, Net and Notes Receivable | The following table summarizes the Company's trade and unbilled receivables, net, and long-term notes receivable: (In millions) January 1, October 2, Trade and unbilled receivables, gross $ 1,189.4 $ 1,198.1 Allowance for credit losses (61.2) (58.3) Trade and unbilled receivables, net $ 1,128.2 $ 1,139.8 Short-term $ 1,029.3 $ 1,066.1 Long-term (1) $ 98.9 $ 73.7 Short-term notes receivable (1) $ 11.8 $ 11.8 Long-term notes receivable (1) (2) $ 37.5 $ 36.7 (1) Short-term notes receivables are included in prepaid and other assets and long-term receivables are included in other assets on the Company's Condensed Consolidated Balance Sheets. (2) Balances include accrued interest and are recorded in other assets on the Company's Condensed Consolidated Balance Sheets. |
Accounts Receivable, Allowance for Credit Loss | The following is a rollforward of the allowance for credit losses on the Company's trade and unbilled receivables: Three Months Ended (In millions) January 1, Balance at October 2, 2020 $ (58.3) Cumulative effect adjustment for adoption of ASU 2016-13 (1) (3.4) Provision for expected credit losses (1.5) Recoveries (write-offs) 2.0 Balance at January 1, 2021 $ (61.2) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Operating Segment | The following table summarizes the activity of goodwill by reportable operating segment: (In millions) Oncology Systems Other Total Balance at October 2, 2020 $ 454.7 $ 169.2 $ 623.9 Measurement period adjustments to business combinations in prior year 0.5 — 0.5 Foreign currency translation adjustments 0.2 3.1 3.3 Balance at January 1, 2021 $ 455.4 $ 172.3 $ 627.7 |
Indefinite-Lived Intangible Assets | The following table summarizes the gross carrying amount and accumulated amortization of the Company's intangible assets: January 1, 2021 October 2, 2020 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technologies and patents $ 229.8 $ (117.1) $ 112.7 $ 228.0 $ (110.9) $ 117.1 Customer contracts, supplier relationships, and partner relationships 130.6 (37.6) 93.0 128.9 (34.7) 94.2 Trade names 53.1 (7.8) 45.3 53.0 (7.0) 46.0 Other 7.8 (6.3) 1.5 7.8 (6.1) 1.7 Total intangible with finite lives 421.3 (168.8) 252.5 417.7 (158.7) 259.0 In-process research and development with indefinite lives 12.5 — 12.5 12.3 — 12.3 Total intangible assets $ 433.8 $ (168.8) $ 265.0 $ 430.0 $ (158.7) $ 271.3 |
Finite-Lived Intangible Assets | The following table summarizes the gross carrying amount and accumulated amortization of the Company's intangible assets: January 1, 2021 October 2, 2020 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technologies and patents $ 229.8 $ (117.1) $ 112.7 $ 228.0 $ (110.9) $ 117.1 Customer contracts, supplier relationships, and partner relationships 130.6 (37.6) 93.0 128.9 (34.7) 94.2 Trade names 53.1 (7.8) 45.3 53.0 (7.0) 46.0 Other 7.8 (6.3) 1.5 7.8 (6.1) 1.7 Total intangible with finite lives 421.3 (168.8) 252.5 417.7 (158.7) 259.0 In-process research and development with indefinite lives 12.5 — 12.5 12.3 — 12.3 Total intangible assets $ 433.8 $ (168.8) $ 265.0 $ 430.0 $ (158.7) $ 271.3 |
Future Amortization Expense | As of January 1, 2021, the Company estimates its remaining amortization expense for intangible assets with finite lives will be as follows (in millions): Fiscal Years: Remaining Amortization Expense Remainder of 2021 $ 27.8 2022 36.3 2023 34.9 2024 27.7 2025 22.7 Thereafter 103.1 Total remaining amortization for intangible assets $ 252.5 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt | The following table summarizes the Company's total short-term borrowings: January 1, 2021 October 2, 2020 (In millions, except for percentages) Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate Short-term borrowings: Revolving Credit Facility $ 210.0 1.18 % $ 355.0 1.18 % Total short-term borrowings $ 210.0 $ 355.0 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments Reported on the Balance Sheet | The fair value of derivative instruments reported on the Company's Condensed Consolidated Balance Sheets were as follows: January 1, October 2, (In millions) Balance Sheet Fair Value Derivatives designated as hedging instruments: Foreign exchange forward contracts Accrued liabilities $ (6.0) $ (0.1) Derivatives not designated as hedging instruments: Foreign exchange forward contracts Prepaid expenses and other current assets 0.1 — Foreign exchange forward contracts Accrued liabilities (2.1) — Total derivatives $ (8.0) $ (0.1) |
Cash Flow Hedging Activities | The Company had the following outstanding foreign currency forward contracts that were entered into to hedge forecasted revenues and designated as cash flow hedges: January 1, October 2, (In millions) Notional Value Sold Australian Dollar $ 14.7 $ 19.3 Euro 87.1 117.3 Japanese Yen 47.0 61.0 $ 148.8 $ 197.6 |
Amounts Before Tax Included in AOCI on the Balance Sheet | The following table presents the amounts, before tax, recognized in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets: Loss Recognized in Other Comprehensive Earnings (Loss) Three Months Ended (In millions) January 1, January 3, Foreign currency forward contracts $ (6.3) $ (0.1) |
Effect of Cash Flow Hedge Accounting on the Consolidated Statements of Earnings (Loss) | The effect of cash flow hedge accounting on the Condensed Consolidated Statements of Earnings was as follows: Location and Amount Recognized in Earnings on Cash Flow Hedging Relationships Three Months Ended January 1, 2021 January 3, 2020 (In millions) Revenues Revenues Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value and cash flow hedges are recorded $ 778.8 $ 828.9 Gain on cash flow hedge relationships: Foreign currency forward contracts: Amount of gain (loss) reclassified from accumulated other comprehensive loss into net earnings $ (0.4) $ 0.8 |
Notional Amounts of Outstanding Derivative Positions | The notional amount of the Company's outstanding foreign currency forward contracts relating to balance sheet hedging activities: (In millions) January 1, October 2, Notional value sold $ 576.6 $ 459.7 Notional value purchased $ 139.8 $ 117.5 |
Gains (Losses) Related to Foreign Currency Forward Exchange Contracts that are Not Designated as Hedging Instruments | The following table presents the gains recognized in the Condensed Consolidated Statements of Earnings related to the foreign currency forward contracts that are not designated as hedging instruments. Location of Loss Recognized in Net Earnings on Derivative Instruments Amount of Loss Recognized in Net Earnings on Derivative Instruments Three Months Ended (In millions) January 1, January 3, Other income, net $ (19.6) $ (5.0) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued Product Warranty | The following table reflects the changes in the Company’s accrued product warranty: Three Months Ended (In millions) January 1, January 3, Accrued product warranty, at beginning of period $ 38.9 $ 43.2 Charged to cost of revenues 16.7 20.8 Actual product warranty expenditures (16.8) (17.8) Accrued product warranty, at end of period $ 38.8 $ 46.2 |
Components of Lease Expense, Supplemental Cash Flow Information and Supplemental Balance Sheet Information | The following table summarizes the components of the Company's lease cost: Three Months Ended (In millions) January 1, January 3, Operating lease cost $ 8.6 $ 7.8 Finance lease cost: Amortization of right-of-use assets 0.2 0.1 Interest on lease liabilities 0.1 0.1 Variable lease cost 3.7 4.5 Total lease cost $ 12.6 $ 12.5 The following table summarizes the supplemental cash flow information related to the Company's operating leases: Three Months Ended (In millions) January 1, January 3, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for leases $ 8.7 $ 8.8 The following table summarizes supplemental balance sheet information related to the Company's operating and finance leases: January 1, October 2, (In millions) 2021 2020 Operating leases: Operating right-of-use assets $ 119.5 $ 121.0 Accrued liabilities $ 27.2 $ 27.2 Long-term lease liabilities 101.7 101.1 Total lease liabilities $ 128.9 $ 128.3 Finance leases: Property, plant, and equipment, net $ 10.6 $ 11.5 Accrued liabilities $ 3.1 $ 3.4 Other long-term liabilities 8.5 8.7 Total lease liabilities $ 11.6 $ 12.1 The following table summarizes the weighted lease term and discount rate by operating and finance leases: January 1, 2021 Weighted average remaining lease term in years Operating leases 7.0 Finance leases 4.0 Weighted average discount rate Operating leases 4.9 % Finance leases 3.9 % |
Future Minimum Operating Lease Payments | As of January 1, 2021, the future minimum lease payments are as follows: (In millions) Operating Leases Finance leases Remainder of 2021 $ 25.3 $ 2.9 2022 28.3 3.3 2023 22.4 3.3 2024 16.3 1.3 2025 12.9 0.8 Thereafter 56.8 0.9 Total minimum lease payments $ 162.0 $ 12.5 Less: imputed interest 33.1 0.9 Total lease liability $ 128.9 $ 11.6 |
Finance Lease Liability Maturity | As of January 1, 2021, the future minimum lease payments are as follows: (In millions) Operating Leases Finance leases Remainder of 2021 $ 25.3 $ 2.9 2022 28.3 3.3 2023 22.4 3.3 2024 16.3 1.3 2025 12.9 0.8 Thereafter 56.8 0.9 Total minimum lease payments $ 162.0 $ 12.5 Less: imputed interest 33.1 0.9 Total lease liability $ 128.9 $ 11.6 |
Restructuring and Related Costs | The table below shows the activity of the 2020 Restructuring plan: (in millions) October 2, Restructuring Charges Cash Payments January 1, 2020 Restructuring plan $ 6.7 $ 0.7 $ (3.0) $ 4.4 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Retirement Benefits [Abstract] | |
Net Defined Benefit Costs | The components of net periodic benefit costs were as follows: Three Months Ended (In millions) January 1, January 3, Defined Benefit Plans Service cost $ 3.3 $ 2.5 Interest cost 0.5 0.5 Expected return on plan assets (1.9) (1.9) Amortization of prior service cost (0.4) (0.2) Recognized actuarial loss 0.9 1.1 Net periodic benefit cost $ 2.4 $ 2.0 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Equity [Abstract] | |
Share Repurchases | The Company repurchased shares of VMS common stock during the periods presented as follows: Three Months Ended (In millions, except per share amounts) January 1, January 3, Number of shares — 0.3 Average repurchase price per share $ — $ 139.67 Total cost of shares repurchased $ — $ 46.4 |
Accumulated Other Comprehensive Earnings (Loss) and Related Tax Effects | The changes in accumulated other comprehensive loss by component and related tax effects are summarized as follows: (In millions) Net Unrealized Gains Net Cumulative Accumulated Balance at October 2, 2020 $ (46.9) $ (0.1) $ (38.7) $ (85.7) Other comprehensive earnings (loss) before reclassifications — (6.3) 13.0 6.7 Amounts reclassified out of other comprehensive earnings (loss) 0.4 0.4 — 0.8 Tax benefit — 1.4 — 1.4 Balance at January 1, 2021 $ (46.5) $ (4.6) $ (25.7) $ (76.8) (In millions) Net Unrealized Gains Net Cumulative Accumulated Balance at September 27, 2019 $ (61.7) $ 2.1 $ (42.5) $ (102.1) Other comprehensive earnings (loss) before reclassifications — (0.1) 5.1 5.0 Amounts reclassified out of other comprehensive earnings (loss) 0.9 (0.8) — 0.1 Tax (expense) benefit (0.2) 0.2 — — Balance at January 3, 2020 $ (61.0) $ 1.4 $ (37.4) $ (97.0) |
Amounts Reclassified Out of Other Comprehensive Earnings (Loss) | The amounts reclassified, before taxes, out of other comprehensive earnings into the Condensed Consolidated Statements of Earnings, with line item location, during each period were as follows: (In millions) Three Months Ended Other Comprehensive Earnings Components January 1, January 3, Line Item in Statements of Earnings Unrealized loss on defined benefit pension and post-retirement benefit plans $ (0.4) $ (0.9) Other income, net Unrealized earnings (loss) on cash flow hedging instruments (0.4) 0.8 Revenues Total amounts reclassified out of other comprehensive earnings $ (0.8) $ (0.1) |
EMPLOYEE STOCK PLANS (Tables)
EMPLOYEE STOCK PLANS (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Expense | The table below summarizes the share-based compensation expense recognized for employee stock awards and employee stock purchase plan shares: Three Months Ended (In millions) January 1, January 3, Cost of revenues - Product $ 1.0 $ 0.8 Cost of revenues - Service 1.6 1.3 Research and development 1.9 1.2 Selling, general and administrative 12.2 11.6 Total share-based compensation expense $ 16.7 $ 14.9 Income tax benefit for share-based compensation $ (3.3) $ (2.9) |
Fair Value of Employee Stock Option Plans With Weighted Average Assumptions | The fair value of stock options and performance stock options granted was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: Three Months Ended January 1, January 3, Employee Stock Option Plans (1) Expected term (in years) — 3.8 Risk-free interest rate — % 1.6 % Expected volatility — % 26.0 % Expected dividend — % — % Weighted average fair value at grant date (2) $ — $ 29.42 (1) The Company did not grant stock options to its employees in the period ending January 1, 2021. (2) Excludes the fair value of the market condition based on relative total shareholder return for the performance stock options granted during the period. |
Option Component of ESPP Shares with Weighted Average Assumptions | The option component of employee stock purchase plan shares was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: Three Months Ended January 1, January 3, Employee Stock Purchase Plan Expected term (in years) 0.50 0.50 Risk-free interest rate 0.1 % 1.6 % Expected volatility 2.4 % 26.4 % Expected dividend — % — % Weighted average fair value at grant date $ 27.10 $ 27.58 |
Activity Under Employee Stock Plans | The activity for stock options and performance stock options is summarized as follows: Options Outstanding (In millions, except per share amounts) Number of Weighted Weighted Aggregate Intrinsic Value (1) Balance at October 2, 2020 1.9 $ 110.79 Cancelled or expired (0.1) 108.59 Exercised (0.5) 97.90 Balance at January 1, 2021 1.3 $ 115.67 4.5 $ 78.8 Exercisable at January 1, 2021 0.6 $ 99.56 3.5 $ 47.8 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, which is computed based on the difference between the exercise price and the closing price of VMS common stock of $175.01 as of December 31, 2020, the last trading date of the first quarter of fiscal year 2021, and represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date. |
Activity for Restricted Stock, Restricted Stock Units, Deferred Stock Units and Performance Units | The activity for restricted stock units, deferred stock units and performance units is summarized as follows: (In millions, except per share amounts) Number of Weighted Average Balance at October 2, 2020 0.7 $ 133.82 Granted 0.3 173.51 Vested (0.1) 129.34 Cancelled or expired — 119.34 Balance at January 1, 2021 0.9 $ 148.44 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted net earnings per share: Three Months Ended (In millions, except per share amounts) January 1, January 3, Net earnings $ 96.8 $ 88.9 Less: Net earnings attributable to noncontrolling interests 0.3 0.7 Net earnings attributable to Varian $ 96.5 $ 88.2 Denominator: Weighted average shares outstanding - basic 91.4 90.9 Dilutive effect of potential common shares 0.8 0.8 Weighted average shares outstanding - diluted 92.2 91.7 Net earnings per share attributable to Varian - basic $ 1.06 $ 0.97 Net earnings per share attributable to Varian - diluted $ 1.05 $ 0.96 Anti-dilutive employee share-based awards, excluded — 0.8 |
PROTON SOLUTIONS LOANS AND IN_2
PROTON SOLUTIONS LOANS AND INVESTMENTS (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Receivables [Abstract] | |
Loans and Investments to Fund PT Centers | The following table lists the Company's notes receivable, including accrued interest, senior secured debt, available-for-sale securities, loans outstanding and future commitments for funding the development, construction and operation of various proton therapy centers: January 1, 2021 October 2, 2020 (In millions) Balance Balance Notes Receivable and Secured Debt: (1) NYPC loan $ 35.7 $ 34.9 RPTC senior secured debt 26.4 25.2 Proton International LLC loan 1.8 1.8 $ 63.9 $ 61.9 Available-For-Sale Securities: (1) MPTC Series B-1 Bonds $ 19.2 $ 18.9 MPTC Series B-2 Bonds 21.1 20.6 APTC securities 5.5 5.4 $ 45.8 $ 44.9 CPTC Loans: CPTC Loans (2) $ 11.8 $ 11.8 (1) Included in other assets at January 1, 2021, and October 2, 2020, on the Company's Condensed Consolidated Balance Sheets, except for amounts related to short-term interest receivable. (2) Included in prepaid and other current assets at January 1, 2021 and October 2, 2020, on the Company's Condensed Consolidated Balance Sheets. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jan. 01, 2021 | |
Segment Reporting [Abstract] | |
Operating Results Information for Each Business Segment | The following table summarizes select financial results for each reportable segment: Three Months Ended (In millions) January 1, January 3, Revenues Oncology Systems $ 744.5 $ 782.4 Proton Solutions 25.6 27.6 Total reportable segments 770.1 810.0 Other 8.7 18.9 Total Company $ 778.8 $ 828.9 Earnings before taxes Oncology Systems $ 142.0 $ 136.4 Proton Solutions (10.5) (14.3) Total reportable segments 131.5 122.1 Other (5.3) 2.8 Unallocated corporate (9.0) (14.9) Operating earnings 117.2 110.0 Interest income (expense), net 1.5 (1.7) Other income, net 5.7 4.4 Total Company $ 124.4 $ 112.7 |
Disaggregation of Revenue | The Company disaggregates its revenues from contracts by major product categories, geographic region, and by timing of revenue recognition for each of its reportable operating segments, as the Company believes this best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. See details in the tables below. Revenues by Product Type Three Months Ended Total Revenues by Product Type January 1, January 3, (In millions) 2021 2020 Hardware Oncology Systems $ 279.8 $ 320.0 Proton Solutions 15.6 20.1 Other 8.7 18.9 Total Hardware 304.1 359.0 Software (1) Oncology Systems 142.8 148.8 Proton Solutions 1.4 — Total Software 144.2 148.8 Service Oncology Systems 321.9 313.6 Proton Solutions 8.6 7.5 Total Service 330.5 321.1 Total Revenues $ 778.8 $ 828.9 (1) Includes software support agreements that are recorded in revenues from service, and software licenses that are recorded in revenues from product in the Condensed Consolidated Statements of Earnings. Revenues by Geographical Region Three Months Ended Total Revenues by Geographical Region January 1, January 3, (In millions) 2021 2020 Americas Oncology Systems $ 332.5 $ 378.9 Proton Solutions 11.3 16.9 Other 5.2 6.4 Total Americas 349.0 402.2 EMEA Oncology Systems 254.2 259.8 Proton Solutions 11.9 10.3 Other 1.5 2.8 Total EMEA 267.6 272.9 APAC Oncology Systems 157.8 143.7 Proton Solutions 2.4 0.4 Other 2.0 9.7 Total APAC 162.2 153.8 Total Revenues $ 778.8 $ 828.9 North America (1) Oncology Systems $ 313.1 $ 355.2 Proton Solutions 11.3 16.9 Other 5.2 6.4 Total North America 329.6 378.5 International Oncology Systems 431.4 427.2 Proton Solutions 14.3 10.7 Other 3.5 12.5 Total International 449.2 450.4 Total Revenues $ 778.8 $ 828.9 (1) North America primarily includes the United States and Canada. Revenues by Timing of Revenue Recognition Three Months Ended Timing of revenue recognition January 1, January 3, (In millions) 2021 2020 Products transferred at a point in time Oncology Systems $ 338.5 $ 382.0 Proton Solutions 1.4 — Other 8.7 18.9 Total products transferred at a point in time 348.6 400.9 Products and services transferred over time Oncology Systems 406.0 400.4 Proton Solutions 24.2 27.6 Total products and services transferred over time 430.2 428.0 Total Revenues $ 778.8 $ 828.9 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Aug. 02, 2020USD ($)$ / shares | Jan. 01, 2021USD ($)specialty_hospitalcancer_center | Oct. 02, 2020USD ($) | Jan. 03, 2020USD ($) | Nov. 01, 2019USD ($) | Oct. 31, 2019USD ($) | Sep. 27, 2019USD ($) |
Segment Reporting Information [Line Items] | |||||||
Number of cancer centers | cancer_center | 13 | ||||||
Amount of accessible liquidity | $ 1,700,000,000 | ||||||
Cash and cash equivalents | 773,300,000 | $ 766,100,000 | |||||
Loan facility, remaining borrowing capacity | 972,000,000 | ||||||
Loan facility, maximum borrowing capacity | 1,200,000,000 | ||||||
Decrease in retained earnings | (2,247,800,000) | (2,084,800,000) | $ (1,857,300,000) | $ (1,777,600,000) | |||
Retained Earnings | |||||||
Segment Reporting Information [Line Items] | |||||||
Decrease in retained earnings | (1,225,600,000) | (1,133,000,000) | $ (983,200,000) | $ (934,000,000) | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Segment Reporting Information [Line Items] | |||||||
Decrease in retained earnings | 3,900,000 | ||||||
Financing receivable, allowance for credit loss | 3,900,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Trade Accounts Receivable | |||||||
Segment Reporting Information [Line Items] | |||||||
Financing receivable, allowance for credit loss | 3,400,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Notes Receivable | |||||||
Segment Reporting Information [Line Items] | |||||||
Financing receivable, allowance for credit loss | $ 500,000 | 500,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
Segment Reporting Information [Line Items] | |||||||
Decrease in retained earnings | $ 3,900,000 | ||||||
Merger Agreement with Siemens Healthineers | |||||||
Segment Reporting Information [Line Items] | |||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 177.50 | ||||||
Acquisition purchase price | $ 16,400,000,000 | ||||||
Potential termination fee | 450,000,000 | ||||||
Merger Agreement with Siemens Healthineers | Minimum | |||||||
Segment Reporting Information [Line Items] | |||||||
Potential reverse termination fee | 450,000,000 | ||||||
Merger Agreement with Siemens Healthineers | Maximum | |||||||
Segment Reporting Information [Line Items] | |||||||
Potential reverse termination fee | $ 925,000,000 | ||||||
Revolving Credit Facility | |||||||
Segment Reporting Information [Line Items] | |||||||
Loan facility, maximum borrowing capacity | $ 1,200,000,000 | $ 1,800,000,000 | |||||
India | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of specialty hospitals | specialty_hospital | 1 | ||||||
Sri Lanka | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of cancer centers | specialty_hospital | 1 |
OTHER FINANCIAL INFORMATION - U
OTHER FINANCIAL INFORMATION - Unbilled Receivables and Deferred Revenues from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2021 | Jan. 03, 2020 | Oct. 02, 2020 | |
Other Financial Information [Abstract] | |||
Unbilled receivables - current | $ 292.7 | $ 306.2 | |
Unbilled receivables - long-term | 94.1 | 68.6 | |
Deferred revenues - current | (845.7) | (782.2) | |
Deferred revenues - long-term | (76.3) | (68.5) | |
Total net unbilled receivables (deferred revenues) | (535.2) | $ (475.9) | |
Increase in unbilled receivables | 12 | ||
Decrease in deferred revenue | 71.3 | ||
Recognized revenue included in deferred revenue balance | $ 276.4 | $ 314.5 |
OTHER FINANCIAL INFORMATION -_2
OTHER FINANCIAL INFORMATION - Unfulfilled Performance Obligations (Details) $ in Millions | Jan. 01, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-02 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 1,760.1 |
Disaggregation of Revenue [Line Items] | |
Unfulfilled performance obligations, expected timing of satisfaction | 9 months |
Unfulfilled performance obligations | $ 1,760.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-02 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 1,944.9 |
Disaggregation of Revenue [Line Items] | |
Unfulfilled performance obligations, expected timing of satisfaction | 1 year |
Unfulfilled performance obligations | $ 1,944.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 856.2 |
Disaggregation of Revenue [Line Items] | |
Unfulfilled performance obligations, expected timing of satisfaction | 1 year |
Unfulfilled performance obligations | $ 856.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-09-30 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 2,449.6 |
Disaggregation of Revenue [Line Items] | |
Unfulfilled performance obligations, expected timing of satisfaction | |
Unfulfilled performance obligations | $ 2,449.6 |
OTHER FINANCIAL INFORMATION - C
OTHER FINANCIAL INFORMATION - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 | Jan. 03, 2020 | Sep. 27, 2019 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents | $ 773.3 | $ 766.1 | ||
Restricted cash - current | 10.3 | 10.2 | ||
Restricted cash - long-term | 9.5 | 9.5 | ||
Total cash, cash equivalents, and restricted cash | $ 793.1 | $ 785.8 | $ 742.2 | $ 544.1 |
OTHER FINANCIAL INFORMATION -_3
OTHER FINANCIAL INFORMATION - Components of Inventories (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Other Financial Information [Abstract] | ||
Raw materials and parts | $ 355.8 | $ 322.9 |
Work-in-process | 74.1 | 82 |
Finished goods | 141.8 | 111.4 |
Total inventories | $ 571.7 | $ 516.3 |
OTHER FINANCIAL INFORMATION -_4
OTHER FINANCIAL INFORMATION - Components of Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Other Financial Information [Abstract] | ||
Income taxes payable | $ 171.8 | $ 170.8 |
Deferred income taxes | 100.5 | 101.2 |
Deferred revenues | 76.3 | 68.5 |
Contingent consideration | 28.1 | 25.7 |
Defined benefit pension plan | 19.7 | 19.8 |
Other | 35.3 | 35.8 |
Total other long-term liabilities | $ 431.7 | $ 421.8 |
OTHER FINANCIAL INFORMATION - O
OTHER FINANCIAL INFORMATION - Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Other Financial Information [Abstract] | ||
Gain on equity investments | $ 8.6 | $ 1.4 |
Net foreign currency exchange gain (loss) | (3.8) | 2.4 |
Other, net | 0.9 | 0.6 |
Total other income, net | $ 5.7 | $ 4.4 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 45.8 | $ 44.9 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.1 | |
Total assets measured at fair value | 196.9 | 247.5 |
Derivative liabilities | (8.1) | (0.1) |
Contingent consideration | (47.9) | (43.1) |
Total liabilities measured at fair value | (56) | (43.2) |
Fair Value, Measurements, Recurring | MPTC Series B-1 Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19.2 | 18.9 |
Fair Value, Measurements, Recurring | MPTC Series B-2 Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 21.1 | 20.6 |
Fair Value, Measurements, Recurring | APTC securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5.5 | 5.4 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Total assets measured at fair value | 125.3 | 148 |
Derivative liabilities | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments | MPTC Series B-1 Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments | MPTC Series B-2 Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments | APTC securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.1 | |
Total assets measured at fair value | 71.6 | 99.5 |
Derivative liabilities | (8.1) | (0.1) |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | (8.1) | (0.1) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs | MPTC Series B-1 Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19.2 | 18.9 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs | MPTC Series B-2 Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 21.1 | 20.6 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs | APTC securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5.5 | 5.4 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Total assets measured at fair value | 0 | 0 |
Derivative liabilities | 0 | 0 |
Contingent consideration | (47.9) | (43.1) |
Total liabilities measured at fair value | (47.9) | (43.1) |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs | MPTC Series B-1 Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs | MPTC Series B-2 Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs | APTC securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 87 | 148 |
Equity investments | 64 | 54.6 |
Fair Value, Measurements, Recurring | Money market funds | Quoted Prices in Active Markets for Identical Instruments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 87 | 148 |
Equity investments | 38.3 | 0 |
Fair Value, Measurements, Recurring | Money market funds | Significant Other Observable Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Equity investments | 25.7 | 54.6 |
Fair Value, Measurements, Recurring | Money market funds | Significant Unobservable Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Equity investments | $ 0 | $ 0 |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Jan. 01, 2021 | Oct. 02, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Equity investments in privately-held companies | $ 78.3 | $ 68.2 | |
Fair value decreases recognized in other income, net | 0.8 | ||
Unrealized gain on equity securities | 9.4 | ||
Notes Receivable | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Long-term notes receivable | 37.5 | 36.7 | |
C P T C | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment charges on loans | $ 51.4 | ||
CPTC Loans | 11.8 | $ 11.8 | |
Impairment charge | $ 40.5 | ||
Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative, term of contract | 1 month | ||
Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative, term of contract | 15 months |
FAIR VALUE - Reconciliation for
FAIR VALUE - Reconciliation for Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - Contingent Consideration $ in Millions | 3 Months Ended |
Jan. 01, 2021USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ (43.1) |
Business combinations | (1.1) |
Adjustments to business combinations in prior year | (2.8) |
Adjustments due to the effect of foreign exchange | (0.7) |
Change in fair value recognized in earnings | (0.2) |
Ending balance | $ (47.9) |
RECEIVABLES - Schedule of Trade
RECEIVABLES - Schedule of Trade and Unbilled Receivables, Net and Notes Receivable (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade and unbilled receivables, gross | $ 1,189.4 | $ 1,198.1 |
Allowance for credit losses | (61.2) | (58.3) |
Trade and unbilled receivables, net | 1,128.2 | 1,139.8 |
Short-term | 1,029.3 | 1,066.1 |
Long-term | 98.9 | 73.7 |
Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Short-term notes receivable | 11.8 | 11.8 |
Long-term notes receivable | $ 37.5 | $ 36.7 |
RECEIVABLES - Narrative (Detail
RECEIVABLES - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, allowance for credit loss, current | $ 55.2 | $ 52.3 |
Accounts receivable, allowance for credit loss, noncurrent | 6 | 6 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, allowance for credit loss | 3.9 | |
Cumulative Effect, Period of Adoption, Adjustment | Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, allowance for credit loss | $ 0.5 | $ 0.5 |
RECEIVABLES - Accounts Receivab
RECEIVABLES - Accounts Receivable Credit Loss Rollforward (Details) $ in Millions | 3 Months Ended |
Jan. 01, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 58.3 |
Provision for bad debt | (1.5) |
Recoveries (write-offs) | 2 |
Ending balance | 61.2 |
Cumulative Effect, Period of Adoption, Adjustment | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 3.4 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Activity of Goodwill by Reportable Operating Segment (Details) $ in Millions | 3 Months Ended |
Jan. 01, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 623.9 |
Measurement period adjustments to business combinations in prior year | 0.5 |
Foreign currency translation adjustments | 3.3 |
Ending balance | 627.7 |
Oncology Systems | |
Goodwill [Roll Forward] | |
Beginning balance | 454.7 |
Measurement period adjustments to business combinations in prior year | 0.5 |
Foreign currency translation adjustments | 0.2 |
Ending balance | 455.4 |
Other | |
Goodwill [Roll Forward] | |
Beginning balance | 169.2 |
Measurement period adjustments to business combinations in prior year | 0 |
Foreign currency translation adjustments | 3.1 |
Ending balance | $ 172.3 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense for intangible assets | $ 9.8 | $ 10.1 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | $ 421.3 | $ 417.7 |
Accumulated Amortization | (168.8) | (158.7) |
Net Carrying Amount | 252.5 | 259 |
In-process research and development with indefinite lives | 12.5 | 12.3 |
Total intangible assets | 433.8 | 430 |
Total intangible assets, net | 265 | 271.3 |
Technologies and patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 229.8 | 228 |
Accumulated Amortization | (117.1) | (110.9) |
Net Carrying Amount | 112.7 | 117.1 |
Customer contracts, supplier relationships, and partner relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 130.6 | 128.9 |
Accumulated Amortization | (37.6) | (34.7) |
Net Carrying Amount | 93 | 94.2 |
Trade names | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 53.1 | 53 |
Accumulated Amortization | (7.8) | (7) |
Net Carrying Amount | 45.3 | 46 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 7.8 | 7.8 |
Accumulated Amortization | (6.3) | (6.1) |
Net Carrying Amount | $ 1.5 | $ 1.7 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Future Amortization Expense (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 27.8 | |
2022 | 36.3 | |
2023 | 34.9 | |
2024 | 27.7 | |
2025 | 22.7 | |
Thereafter | 103.1 | |
Net Carrying Amount | $ 252.5 | $ 259 |
BORROWINGS - Schedule of Debt (
BORROWINGS - Schedule of Debt (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Short-term borrowings: | ||
Short-term borrowings | $ 210 | $ 355 |
Total short-term borrowings | 210 | 355 |
Revolving Credit Facility | ||
Short-term borrowings: | ||
Short-term borrowings | $ 210 | $ 355 |
Weighted-Average Interest Rate | 1.18% | 1.18% |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) | Nov. 01, 2019USD ($) | Jan. 01, 2021USD ($) | Jan. 01, 2021JPY (¥) | Oct. 31, 2019USD ($) |
Line Of Credit Facility [Line Items] | ||||
Loan facility, maximum borrowing capacity | $ 1,200,000,000 | |||
Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Credit facility, term | 5 years | 5 years | ||
Loan facility, maximum borrowing capacity | $ 1,200,000,000 | $ 1,800,000,000 | ||
Additional maximum commitment amount | 100,000,000 | |||
Revolving Credit Facility | Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Commitment fee (as a percent) | 0.10% | |||
Revolving Credit Facility | Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Commitment fee (as a percent) | 0.225% | |||
Revolving Credit Facility | Eurodollar | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, contract repayment term | 12 months | |||
Revolving Credit Facility | Eurodollar | Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, basis spread on variable rate (as a percent) | 1.00% | |||
Revolving Credit Facility | Eurodollar | Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, basis spread on variable rate (as a percent) | 1.375% | |||
Revolving Credit Facility | Federal Funds Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, basis spread on variable rate (as a percent) | 0.50% | |||
Revolving Credit Facility | Eurodollar Rate plus 1% | ||||
Line Of Credit Facility [Line Items] | ||||
Percentage added to Eurodollar base rate before margin (as a percent) | 1.00% | |||
Revolving Credit Facility | Eurodollar Rate plus 1% | Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, basis spread on variable rate (as a percent) | 0.00% | |||
Revolving Credit Facility | Eurodollar Rate plus 1% | Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, basis spread on variable rate (as a percent) | 0.375% | |||
Sumitomo Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Loan facility, maximum borrowing capacity | ¥ | ¥ 3,000,000,000 | |||
Outstanding principal balance | ¥ | ¥ 0 | |||
Multi-currency Borrowings | Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Loan facility, maximum borrowing capacity | 500,000,000 | |||
Letter of Credit | Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Loan facility, maximum borrowing capacity | 225,000,000 | $ 50,000,000 | ||
Swing Line Loans | Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Loan facility, maximum borrowing capacity | $ 25,000,000 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Instruments Reported on the Balance Sheet (Details) - Foreign currency forward contracts - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ (8) | $ (0.1) |
Designated as Hedging Instrument | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | (6) | (0.1) |
Derivatives Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | 0.1 | 0 |
Derivatives Not Designated as Hedging Instrument | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ (2.1) | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Cash Flow Hedging Activities (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Foreign currency forward contracts - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Derivative [Line Items] | ||
Notional Value Sold | $ 148.8 | $ 197.6 |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional Value Sold | 14.7 | 19.3 |
Euro | ||
Derivative [Line Items] | ||
Notional Value Sold | 87.1 | 117.3 |
Japanese Yen | ||
Derivative [Line Items] | ||
Notional Value Sold | $ 47 | $ 61 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Pre-tax amounts Recognized in AOCI on the Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net unrealized gain on derivatives, before tax | $ (6) | |
Foreign currency forward contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Loss Recognized in Other Comprehensive Earnings (Loss) | $ (6.3) | $ (0.1) |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effective Portion of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Derivative [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive loss into net earnings | $ (0.3) | $ 0.6 |
Revenues | ||
Derivative [Line Items] | ||
Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value and cash flow hedges are recorded | 778.8 | 828.9 |
Amount of gain (loss) reclassified from accumulated other comprehensive loss into net earnings | $ (0.4) | $ 0.8 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Foreign Currency Forward Contracts that Were Entered into to Hedge Balance Sheet Exposures (Details) - Derivatives Not Designated as Hedging Instrument - Foreign currency forward contracts - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Notional value sold | ||
Derivative [Line Items] | ||
Notional amount | $ 576.6 | $ 459.7 |
Notional value purchased | ||
Derivative [Line Items] | ||
Notional amount | $ 139.8 | $ 117.5 |
DERIVATIVE INSTRUMENTS AND HE_8
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Gains (Losses) Related to Foreign Currency Forward Exchange Contracts that are Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Derivatives Not Designated as Hedging Instrument | Foreign currency forward contracts | Other income, net | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in Net Earnings on Derivative Instruments | $ (19.6) | $ (5) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Accrued Product Warranty (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrued product warranty, at beginning of period | $ 38.9 | $ 43.2 |
Charged to cost of revenues | 16.7 | 20.8 |
Actual product warranty expenditures | (16.8) | (17.8) |
Accrued product warranty, at end of period | $ 38.8 | $ 46.2 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 8.6 | $ 7.8 |
Finance lease cost: | ||
Amortization of right-of-use assets | 0.2 | 0.1 |
Interest on lease liabilities | 0.1 | 0.1 |
Variable lease cost | 3.7 | 4.5 |
Total lease cost | $ 12.6 | $ 12.5 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Lease Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for leases | $ 8.7 | $ 8.8 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Lease Balance Sheet Information (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Operating leases: | ||
Operating right-of-use assets | $ 119.5 | $ 121 |
Accrued liabilities | 27.2 | 27.2 |
Long-term lease liabilities | 101.7 | 101.1 |
Total lease liabilities | 128.9 | 128.3 |
Finance leases: | ||
Property, plant, and equipment, net | 10.6 | 11.5 |
Accrued liabilities | 3.1 | 3.4 |
Other long-term liabilities | 8.5 | 8.7 |
Total lease liabilities | $ 11.6 | $ 12.1 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Leases, Weighted-average Remaining Lease Term and Discount Rate (Details) | Jan. 01, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term - operating leases | 7 years |
Weighted average remaining lease term - finance leases | 4 years |
Weighted average discount rate - operating leases | 4.90% |
Weighted average discount rate - finance leases | 3.90% |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES - Leases, Operating and Finance Lease Maturities (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 25.3 | |
2022 | 28.3 | |
2023 | 22.4 | |
2024 | 16.3 | |
2025 | 12.9 | |
Thereafter | 56.8 | |
Total minimum lease payments | 162 | |
Less: imputed interest | 33.1 | |
Total lease liabilities | 128.9 | $ 128.3 |
Finance leases | ||
Remainder of 2021 | 2.9 | |
2022 | 3.3 | |
2023 | 3.3 | |
2024 | 1.3 | |
2025 | 0.8 | |
Thereafter | 0.9 | |
Total minimum lease payments | 12.5 | |
Less: imputed interest | 0.9 | |
Total lease liabilities | $ 11.6 | $ 12.1 |
COMMITMENTS AND CONTINGENCIES_7
COMMITMENTS AND CONTINGENCIES - Lease Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2021 | Jan. 03, 2020 | Oct. 02, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Rental income | $ 2.6 | $ 2.5 | |
Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Equipment leased to customers included in PP&E | 27.1 | ||
Accumulated depreciation on equipment leased to customers, included in PP&E | $ 10 | ||
Leased equipment | $ 26.5 | ||
Accumulated depreciation on leased equipment | $ 9.1 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessor, term of operating leases | 10 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessor, term of operating leases | 17 years |
COMMITMENTS AND CONTINGENCIES_8
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | Oct. 15, 2020USD ($) | Oct. 16, 2018patent | Jan. 01, 2021USD ($) | Jan. 03, 2020USD ($) | Oct. 02, 2020USD ($) | Aug. 30, 2020USD ($) |
Commitments And Contingencies [Line Items] | ||||||
Rental income | $ 2.6 | $ 2.5 | ||||
Accrued environmental remediation expense | 3.9 | $ 4 | ||||
Restructuring charges | 0.7 | |||||
Payments for restructuring | 3 | |||||
Siemens Healthineers | ||||||
Commitments And Contingencies [Line Items] | ||||||
Business combination, reverse termination fee | $ 450 | |||||
Business combination, early termination fee, cash payable | 925 | |||||
Siemens Healthineers | ||||||
Commitments And Contingencies [Line Items] | ||||||
Business combination, early termination fee | $ 450 | |||||
Siemens Healthineers | Advisory Fees | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contingent consideration liability | $ 110 | |||||
Threatened Litigation | Best Medical International, Inc. Litigation | ||||||
Commitments And Contingencies [Line Items] | ||||||
Number of patents allegedly infringed | patent | 4 | |||||
Judicial Ruling | Best Medical International, Inc. Litigation | ||||||
Commitments And Contingencies [Line Items] | ||||||
Accrued estimate of loss | $ 8.5 | |||||
Minimum | ||||||
Commitments And Contingencies [Line Items] | ||||||
Lessor, term of operating leases | 10 years | |||||
Maximum | ||||||
Commitments And Contingencies [Line Items] | ||||||
Lessor, term of operating leases | 17 years | |||||
Equipment | ||||||
Commitments And Contingencies [Line Items] | ||||||
Equipment leased to customers included in PP&E | $ 27.1 | |||||
Accumulated depreciation on equipment leased to customers, included in PP&E | $ 10 | |||||
Leased equipment | 26.5 | |||||
Accumulated depreciation on leased equipment | $ 9.1 |
COMMITMENTS AND CONTINGENCIES_9
COMMITMENTS AND CONTINGENCIES - Restructuring Charges (Details) $ in Millions | 3 Months Ended |
Jan. 01, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 6.7 |
Restructuring charges | 0.7 |
Cash Payments | (3) |
Ending balance | $ 4.4 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - Defined Benefit Plans - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3.3 | $ 2.5 |
Interest cost | 0.5 | 0.5 |
Expected return on plan assets | (1.9) | (1.9) |
Amortization of prior service cost | (0.4) | (0.2) |
Recognized actuarial loss | 0.9 | 1.1 |
Net periodic benefit cost | $ 2.4 | $ 2 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 22.20% | 21.00% |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Details) - shares | Jan. 01, 2021 | Nov. 30, 2016 |
Equity [Abstract] | ||
Stock purchase plan, number of shares authorized to be repurchased (in shares) | 8,000,000 | |
Remaining authorization (in shares) | 1,600,000 |
STOCKHOLDERS' EQUITY - Shares R
STOCKHOLDERS' EQUITY - Shares Repurchased During Period (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Equity [Abstract] | ||
Number of shares (in shares) | 0 | 0.3 |
Average repurchase price per share (in dollars per share) | $ 0 | $ 139.67 |
Total cost of shares repurchased | $ 0 | $ 46.4 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Accumulated Other Comprehensive Earnings (Loss) and Related Tax Effects (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 2,084.8 | $ 1,777.6 |
Other comprehensive earnings (loss) before reclassifications | 6.7 | 5 |
Amounts reclassified out of other comprehensive earnings (loss) | 0.8 | 0.1 |
Tax benefit | 1.4 | 0 |
Balance at end of period | 2,247.8 | 1,857.3 |
Net Unrealized Gains Defined Benefit Pension and Post-Retirement Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (46.9) | (61.7) |
Other comprehensive earnings (loss) before reclassifications | 0 | 0 |
Amounts reclassified out of other comprehensive earnings (loss) | 0.4 | 0.9 |
Tax benefit | 0 | (0.2) |
Balance at end of period | (46.5) | (61) |
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (0.1) | 2.1 |
Other comprehensive earnings (loss) before reclassifications | (6.3) | (0.1) |
Amounts reclassified out of other comprehensive earnings (loss) | 0.4 | (0.8) |
Tax benefit | 1.4 | 0.2 |
Balance at end of period | (4.6) | 1.4 |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (38.7) | (42.5) |
Other comprehensive earnings (loss) before reclassifications | 13 | 5.1 |
Amounts reclassified out of other comprehensive earnings (loss) | 0 | 0 |
Tax benefit | 0 | 0 |
Balance at end of period | (25.7) | (37.4) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (85.7) | (102.1) |
Balance at end of period | $ (76.8) | $ (97) |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of Amounts Reclassified Out of Other Comprehensive Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Reclassification Adjustment Out Of Accumulated Comprehensive Income [Line Items] | ||
Earnings before taxes | $ 117.2 | $ 110 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Comprehensive Income [Line Items] | ||
Earnings before taxes | (0.8) | (0.1) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized loss on defined benefit pension and post-retirement benefit plans | ||
Reclassification Adjustment Out Of Accumulated Comprehensive Income [Line Items] | ||
Other income, net | (0.4) | (0.9) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized earnings (loss) on cash flow hedging instruments | ||
Reclassification Adjustment Out Of Accumulated Comprehensive Income [Line Items] | ||
Revenues | $ (0.4) | $ 0.8 |
EMPLOYEE STOCK PLANS - Net Shar
EMPLOYEE STOCK PLANS - Net Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ 16.7 | $ 14.9 |
Income tax benefit for share-based compensation | (3.3) | (2.9) |
Cost of revenues - Product | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 1 | 0.8 |
Cost of revenues - Service | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 1.6 | 1.3 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 1.9 | 1.2 |
Selling, general and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ 12.2 | $ 11.6 |
EMPLOYEE STOCK PLANS - Fair Val
EMPLOYEE STOCK PLANS - Fair Value with Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Employee Stock Option Plans | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 0 years | 3 years 9 months 18 days |
Risk-free interest rate | 0.00% | 1.60% |
Expected volatility | 0.00% | 26.00% |
Expected dividend | 0.00% | 0.00% |
Weighted average fair value at grant date (dollars per share) | $ 0 | $ 29.42 |
Employee Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 6 months | 6 months |
Risk-free interest rate | 0.10% | 1.60% |
Expected volatility | 2.40% | 26.40% |
Expected dividend | 0.00% | 0.00% |
Weighted average fair value at grant date (dollars per share) | $ 27.10 | $ 27.58 |
EMPLOYEE STOCK PLANS - Activity
EMPLOYEE STOCK PLANS - Activity Under Employee Stock Plans (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Jan. 01, 2021USD ($)$ / sharesshares | |
Number of Shares | |
Balance at beginning of period (in shares) | shares | 1.9 |
Cancelled or expired (in shares) | shares | (0.1) |
Exercised (in shares) | shares | (0.5) |
Balance at end of period (in shares) | shares | 1.3 |
Exercisable (in shares) | shares | 0.6 |
Weighted Average Exercise Price | |
Balance at beginning of period (in dollars per share) | $ 110.79 |
Cancelled or expired (in dollars per share) | 108.59 |
Exercised (in dollars per share) | 97.90 |
Balance at end of period (in dollars per share) | 115.67 |
Exercisable (in dollars per share) | $ 99.56 |
Weighted Average Remaining Term (in years) | |
Outstanding (term) | 4 years 6 months |
Exercisable (term) | 3 years 6 months |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 78.8 |
Exercisable | $ | $ 47.8 |
Share price (in dollars per share) | $ 175.01 |
EMPLOYEE STOCK PLANS - Addition
EMPLOYEE STOCK PLANS - Additional Information (Details) $ in Millions | 3 Months Ended |
Jan. 01, 2021USD ($) | |
Stock options and performance stock options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding stock awards | $ 12.3 |
Weighted average period for recognition | 1 year 7 months 6 days |
Cash-settled stock appreciation rights | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding stock awards | $ 1.7 |
Weighted average period for recognition | 1 year 9 months 18 days |
Restricted stock units, deferred stock units and performance units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding stock awards | $ 89.4 |
Weighted average period for recognition | 2 years 4 months 24 days |
EMPLOYEE STOCK PLANS - Activi_2
EMPLOYEE STOCK PLANS - Activity for Restricted Stock, Restricted Stock Units, Deferred Stock Units and Performance Units (Details) shares in Millions | 3 Months Ended |
Jan. 01, 2021$ / sharesshares | |
Number of Shares | |
Balance at beginning of period (in shares) | shares | 0.7 |
Granted (in shares) | shares | 0.3 |
Vested (in shares) | shares | (0.1) |
Cancelled or expired (in shares) | shares | 0 |
Balance at end of period (in shares) | shares | 0.9 |
Weighted Average Grant-Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 133.82 |
Granted (in dollars per share) | $ / shares | 173.51 |
Vested (in dollars per share) | $ / shares | 129.34 |
Cancelled or expired (in dollars per share) | $ / shares | 119.34 |
Balance at end of period (in dollars per share) | $ / shares | $ 148.44 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 96.8 | $ 88.9 |
Less: Net earnings attributable to noncontrolling interests | 0.3 | 0.7 |
Net earnings attributable to Varian | $ 96.5 | $ 88.2 |
Weighted average shares outstanding - basic (in shares) | 91.4 | 90.9 |
Dilutive effect of potential common shares (in shares) | 0.8 | 0.8 |
Weighted average shares outstanding - diluted (in shares) | 92.2 | 91.7 |
Net earnings per share attributable to Varian - basic (in dollars per share) | $ 1.06 | $ 0.97 |
Net earnings per share attributable to Varian - diluted (in dollars per share) | $ 1.05 | $ 0.96 |
Anti-dilutive employee shared based awards, excluded (in shares) | 0 | 0.8 |
PROTON SOLUTIONS LOANS AND IN_3
PROTON SOLUTIONS LOANS AND INVESTMENTS - Loans and Commitments (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Oct. 02, 2020 | Dec. 06, 2017 |
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | $ 45.8 | $ 44.9 | |
Loans Receivable | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Notes receivable and secured debt | 63.9 | 61.9 | |
NYPC loan | Loans Receivable | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Long-term | 35.7 | 34.9 | |
RPTC senior secured debt | Loans Receivable | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Short-term notes receivable | 26.4 | 25.2 | |
Proton International LLC loan | Loans Receivable | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Long-term | 1.8 | 1.8 | |
MPTC Series B-1 Bonds | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | 19.2 | 18.9 | |
MPTC Series B-2 Bonds | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | 21.1 | 20.6 | |
APTC securities | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | 5.5 | 5.4 | |
C P T C | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
CPTC Loans | $ 11.8 | $ 11.8 | |
C P T C | Loans Receivable | |||
Long-term notes receivable and Available-for-sale Securities [Line Items] | |||
Term loan | $ 112 |
PROTON SOLUTIONS LOANS AND IN_4
PROTON SOLUTIONS LOANS AND INVESTMENTS - Additional Information (Details) € in Millions, $ in Millions | Dec. 06, 2017USD ($)tranche | Sep. 29, 2017USD ($) | Jul. 31, 2015USD ($) | Aug. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2017EUR (€) | Jan. 01, 2021USD ($) | Jan. 03, 2020USD ($) | Jan. 01, 2022USD ($) | Oct. 02, 2020USD ($) | Apr. 03, 2020USD ($) | May 01, 2019 | Dec. 29, 2017USD ($) | Jun. 30, 2016USD ($) |
Variable Interest Entity [Line Items] | |||||||||||||||
Fair Value | $ 45.8 | $ 44.9 | |||||||||||||
APTC securities | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Payments to acquire available-for-sale securities | $ 6 | ||||||||||||||
Interest rate (as a percent) | 8.50% | ||||||||||||||
Impairment charges on loans | $ 0.9 | ||||||||||||||
Trade and unbilled receivables | $ 5.7 | ||||||||||||||
Long-term trade receivables, net | 7.2 | 6.9 | |||||||||||||
Fair Value | 5.5 | 5.4 | |||||||||||||
RPTC Securities | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Right to claims against assets | € | € 77 | ||||||||||||||
Long-term trade receivables, net | 4.1 | 4.2 | |||||||||||||
New York Proton Center | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Trade and unbilled receivables | 1 | 5 | |||||||||||||
Long-term trade receivables, net | 8.3 | 20 | |||||||||||||
MPTC loans | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Long-term trade receivables, net | 0.6 | 0.6 | |||||||||||||
Cash Received, Outstanding Deferred Payment Arrangement | $ 6 | ||||||||||||||
C P T C | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Impairment charges on loans | $ 51.4 | ||||||||||||||
Long-term trade receivables, net | 3.1 | 3.1 | |||||||||||||
Liabilities assumed by lenders | $ 112 | ||||||||||||||
Equity ownership interest (percent) | 47.08% | ||||||||||||||
Impairment charges | 40.5 | ||||||||||||||
Value of impaired loan receivable | $ 10 | ||||||||||||||
CPTC Loans | 11.8 | 11.8 | |||||||||||||
Varian Medical Systems, Inc. | C P T C | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Additional financing | $ 7.3 | ||||||||||||||
Loans Receivable | Proton Center, Munich | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Payments to acquire outstanding senior debt | $ 24.5 | € 21.5 | |||||||||||||
Loans Receivable | NYPC loan | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Maximum lending commitment | $ 91.5 | ||||||||||||||
Long-term | 35.7 | $ 34.9 | |||||||||||||
Loans Receivable | C P T C | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Modified former loans receivable | $ 112 | ||||||||||||||
Senior First Lien Loan | NYPC loan | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Maximum lending commitment | $ 73 | ||||||||||||||
Senior Subordinated Loans | NYPC loan | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Interest rate (as a percent) | 13.50% | 10.00% | |||||||||||||
Maximum lending commitment | $ 18.5 | ||||||||||||||
Long-term | $ 35.7 | ||||||||||||||
Lending term | 6 years 6 months | ||||||||||||||
Term Loan | C P T C | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Credit facility, term | 3 years | ||||||||||||||
Term Loan | Varian Medical Systems, Inc. | C P T C | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Modified former loans receivable | $ 53.5 | ||||||||||||||
Number of tranches | tranche | 4 | ||||||||||||||
Paid-in-kind interest receivable (percent) | 7.50% | ||||||||||||||
Term Loan | Varian Medical Systems, Inc. | C P T C | Tranche A loan | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Modified former loans receivable | $ 2 | ||||||||||||||
Interest receivable, default rate (percent) | 9.50% | ||||||||||||||
Term Loan | Varian Medical Systems, Inc. | C P T C | Tranche B loan | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Modified former loans receivable | 7.2 | ||||||||||||||
Paid-in-kind interest receivable (percent) | 10.00% | ||||||||||||||
Interest receivable, default rate (percent) | 12.00% | ||||||||||||||
Term Loan | Varian Medical Systems, Inc. | C P T C | Tranche C Loans | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Modified former loans receivable | 15.6 | ||||||||||||||
Interest receivable, default rate (percent) | 9.50% | ||||||||||||||
Term Loan | Varian Medical Systems, Inc. | C P T C | Tranche D Loans | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Modified former loans receivable | $ 28.7 | ||||||||||||||
Interest receivable, default rate (percent) | 9.50% | ||||||||||||||
Available-for-sale Securities | MPTC Series B-2 Bonds | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Interest rate (as a percent) | 8.50% | ||||||||||||||
Fair Value | $ 22.9 | ||||||||||||||
Available-for-sale Securities | MPTC Series B-1 Bonds | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Interest rate (as a percent) | 7.50% | ||||||||||||||
Fair Value | $ 25 | ||||||||||||||
Available-for-sale Securities | MPTC Bonds | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Impairment charges on loans | $ 16.9 | ||||||||||||||
Forecast | Available-for-sale Securities | MPTC Series B-2 Bonds | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Fair Value | $ 33.9 | ||||||||||||||
Forecast | Available-for-sale Securities | MPTC Series B-1 Bonds | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Fair Value | $ 32 | ||||||||||||||
Revolving Loan | Loans Receivable | C P T C | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Credit facility, term | 1 year | ||||||||||||||
Loan facility, maximum lending commitment | $ 15 | ||||||||||||||
Revolving Loan | Loans Receivable | Varian Medical Systems, Inc. | C P T C | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Loan facility, maximum lending commitment | $ 7.2 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 3 Months Ended |
Jan. 01, 2021specialty_hospitalsegmentcancer_center | |
Segment Reporting Information [Line Items] | |
Number of segments | segment | 2 |
Number of cancer centers | cancer_center | 13 |
India | |
Segment Reporting Information [Line Items] | |
Number of specialty hospitals | 1 |
Sri Lanka | |
Segment Reporting Information [Line Items] | |
Number of cancer centers | 1 |
SEGMENT INFORMATION - Operating
SEGMENT INFORMATION - Operating Results Information for Each Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 778.8 | $ 828.9 |
Earnings before taxes | 117.2 | 110 |
Interest income (expense), net | 1.5 | (1.7) |
Other income, net | 5.7 | 4.4 |
Earnings before taxes | 124.4 | 112.7 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 770.1 | 810 |
Earnings before taxes | 131.5 | 122.1 |
Operating Segments | Oncology Systems | ||
Segment Reporting Information [Line Items] | ||
Revenues | 744.5 | 782.4 |
Earnings before taxes | 142 | 136.4 |
Operating Segments | Proton Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 25.6 | 27.6 |
Earnings before taxes | (10.5) | (14.3) |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 8.7 | 18.9 |
Earnings before taxes | (5.3) | 2.8 |
Unallocated corporate | ||
Segment Reporting Information [Line Items] | ||
Earnings before taxes | $ (9) | $ (14.9) |
SEGMENT INFORMATION - Disaggreg
SEGMENT INFORMATION - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2021 | Jan. 03, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 778.8 | $ 828.9 |
Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 348.6 | 400.9 |
Products and services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 430.2 | 428 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 349 | 402.2 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 267.6 | 272.9 |
APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 162.2 | 153.8 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 329.6 | 378.5 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 449.2 | 450.4 |
Hardware | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 304.1 | 359 |
Software | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 144.2 | 148.8 |
Service | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 330.5 | 321.1 |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 770.1 | 810 |
Operating Segments | Oncology Systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 744.5 | 782.4 |
Operating Segments | Oncology Systems | Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 338.5 | 382 |
Operating Segments | Oncology Systems | Products and services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 406 | 400.4 |
Operating Segments | Oncology Systems | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 332.5 | 378.9 |
Operating Segments | Oncology Systems | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 254.2 | 259.8 |
Operating Segments | Oncology Systems | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 157.8 | 143.7 |
Operating Segments | Oncology Systems | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 313.1 | 355.2 |
Operating Segments | Oncology Systems | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 431.4 | 427.2 |
Operating Segments | Oncology Systems | Hardware | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 279.8 | 320 |
Operating Segments | Oncology Systems | Software | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 142.8 | 148.8 |
Operating Segments | Oncology Systems | Service | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 321.9 | 313.6 |
Operating Segments | Proton Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 25.6 | 27.6 |
Operating Segments | Proton Solutions | Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1.4 | 0 |
Operating Segments | Proton Solutions | Products and services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 24.2 | 27.6 |
Operating Segments | Proton Solutions | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11.3 | 16.9 |
Operating Segments | Proton Solutions | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11.9 | 10.3 |
Operating Segments | Proton Solutions | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2.4 | 0.4 |
Operating Segments | Proton Solutions | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11.3 | 16.9 |
Operating Segments | Proton Solutions | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14.3 | 10.7 |
Operating Segments | Proton Solutions | Hardware | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 15.6 | 20.1 |
Operating Segments | Proton Solutions | Software | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1.4 | 0 |
Operating Segments | Proton Solutions | Service | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8.6 | 7.5 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8.7 | 18.9 |
Other | Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8.7 | 18.9 |
Other | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5.2 | 6.4 |
Other | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1.5 | 2.8 |
Other | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2 | 9.7 |
Other | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5.2 | 6.4 |
Other | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3.5 | 12.5 |
Other | Hardware | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 8.7 | $ 18.9 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jan. 01, 2021USD ($) | Jan. 03, 2020USD ($) | Oct. 02, 2020USD ($)numberOfAcquisitions | |
Business Acquisition [Line Items] | |||
Purchase price adjustments | $ 0.5 | ||
Change in fair value of contingent consideration | 0.2 | $ 8.8 | |
Acquisition-related expenses | $ 7.5 | $ 3.9 | |
Radiotherapy Equipment Distributer | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 25.5 | ||
Acquisition purchase price | 32.7 | ||
Contingent consideration liability | 5.8 | ||
Other consideration | 1.4 | ||
Goodwill acquired | 13.1 | ||
Finite-lived intangible assets acquired | 12.1 | ||
Five Other Acquisitions | Oncology Systems | |||
Business Acquisition [Line Items] | |||
Acquisition purchase price | $ 11.5 | ||
Number of business acquired | numberOfAcquisitions | 5 |