Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 26, 2014 | Nov. 14, 2014 | Mar. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 26-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'VAR | ' | ' |
Entity Registrant Name | 'VARIAN MEDICAL SYSTEMS INC | ' | ' |
Entity Central Index Key | '0000203527 | ' | ' |
Current Fiscal Year End Date | '--09-26 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 99,978,975 | ' |
Entity Public Float | ' | ' | $8,562,239,909 |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |||
Revenues: | ' | ' | ' | |||
Product | $2,083,768 | $2,055,718 | $2,003,988 | |||
Service | 966,032 | 887,179 | 803,027 | |||
Total revenues | 3,049,800 | 2,942,897 | 2,807,015 | |||
Cost of revenues: | ' | ' | ' | |||
Product | 1,314,597 | 1,295,492 | 1,247,278 | |||
Service | 433,528 | 397,718 | 363,401 | |||
Total cost of revenues | 1,748,125 | 1,693,210 | 1,610,679 | |||
Gross margin | 1,301,675 | 1,249,687 | 1,196,336 | |||
Operating expenses: | ' | ' | ' | |||
Research and development | 234,840 | 208,208 | 185,742 | |||
Selling, general and administrative | 470,550 | 432,589 | 416,520 | |||
Litigation settlement | 25,130 | ' | ' | |||
Total operating expenses | 730,520 | 640,797 | 602,262 | |||
Operating earnings | 571,155 | [1] | 608,890 | [1] | 594,074 | [1] |
Interest income | 10,514 | 7,322 | 5,269 | |||
Interest expense | -7,159 | -4,129 | -3,419 | |||
Earnings before taxes | 574,510 | 612,083 | 595,924 | |||
Taxes on earnings | 170,807 | 173,835 | 168,875 | |||
Net earnings | $403,703 | $438,248 | $427,049 | |||
Net earnings per share - basic | $3.88 | $4.04 | $3.83 | |||
Net earnings per share - diluted | $3.83 | $3.98 | $3.76 | |||
Shares used in the calculation of net earnings per share: | ' | ' | ' | |||
Weighted average shares outstanding - basic | 103,964 | 108,352 | 111,376 | |||
Weighted average shares outstanding - diluted | 105,271 | 110,053 | 113,473 | |||
[1] | Operating earnings of reportable segments and Other include an allocation of corporate expenses based on a percentage of their sales. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net earnings | $403,703 | $438,248 | $427,049 |
Defined benefit pension and post-retirement benefit plans: | ' | ' | ' |
Net gain (loss) arising during the year, net of tax benefit (expense) of $930, ($1,504), and $1,079 | -9,593 | 5,549 | -8,761 |
Prior service cost arising during the year, net of tax expense of ($1,240) | 2,078 | ' | ' |
Amortization of prior service cost included in net periodic benefit cost, net of tax benefit (expense) of ($27), $159 and ($19) | 156 | -145 | 144 |
Amortization, settlement curtailment of net actuarial loss included in net periodic benefit cost, net of tax expense of ($529), ($608), and ($548) | 3,380 | 3,138 | 3,114 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | -3,979 | 8,542 | -5,503 |
Unrealized gain on derivatives: | ' | ' | ' |
Increase (decrease) in unrealized gain / (loss), net of tax expense of ($1,467), ($191) and ($541) | 2,458 | 318 | 900 |
Reclassification adjustments, net of tax benefit of $479, $923, and $217 | -802 | -1,540 | -362 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 1,656 | -1,222 | 538 |
Currency translation adjustment | -16,217 | 9,230 | -4,808 |
Other comprehensive earnings (loss) | -18,540 | 16,550 | -9,773 |
Comprehensive earnings | $385,163 | $454,798 | $417,276 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net gain/(loss) arising during the year, tax benefit/(expense) | $930 | ($1,504) | $1,079 |
Prior service cost arising during the year, tax expense | -1,240 | ' | ' |
Amortization of prior service cost included in net periodic benefit cost, tax benefit/(expense) | -27 | 159 | -19 |
Amortization of net actuarial loss included in net periodic benefit cost, tax expense | -529 | -608 | -548 |
Increase (decrease) in unrealized gain, tax benefit/(expense) | -1,467 | -191 | -541 |
Reclassification adjustments, tax benefit/(expense) | $479 | $923 | $217 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $849,275 | $1,117,861 |
Short-term investment | 66,176 | 62,700 |
Accounts receivable, net of allowance for doubtful accounts of $20,317 at September 26, 2014 and $14,735 at September 27, 2013 | 731,929 | 698,254 |
Inventories | 572,261 | 535,223 |
Prepaid expenses and other current assets | 148,562 | 168,495 |
Deferred tax assets | 125,962 | 122,250 |
Total current assets | 2,494,165 | 2,704,783 |
Property, plant and equipment, net | 337,999 | 315,331 |
Goodwill | 240,626 | 225,335 |
Other assets | 284,500 | 223,025 |
Total assets | 3,357,290 | 3,468,474 |
Current liabilities: | ' | ' |
Accounts payable | 187,377 | 194,272 |
Accrued expenses | 324,409 | 320,884 |
Deferred revenues | 421,845 | 389,479 |
Advance payments from customers | 170,724 | 160,644 |
Product warranty | 47,299 | 39,050 |
Current maturities of long-term debt | 50,000 | 56,250 |
Total current liabilities | 1,201,654 | 1,160,579 |
Long-term debt | 387,500 | 450,000 |
Other long-term liabilities | 151,716 | 144,048 |
Total liabilities | 1,740,870 | 1,754,627 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock of $1 par value: 1,000 shares authorized; none issued and outstanding | ' | ' |
Common stock of $1 par value: 189,000 shares authorized; 100,942 and 106,491 shares issued and outstanding at September 26, 2014 and at September 27, 2013, respectively | 100,942 | 106,491 |
Capital in excess of par value | 642,848 | 637,084 |
Retained earnings | 931,241 | 1,010,343 |
Accumulated other comprehensive loss | -58,611 | -40,071 |
Total stockholders' equity | 1,616,420 | 1,713,847 |
Total liabilities and stockholders' equity | $3,357,290 | $3,468,474 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $20,317 | $14,735 |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | ' | ' |
Preferred stock, outstanding | ' | ' |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 189,000,000 | 189,000,000 |
Common stock, shares issued | 100,942,000 | 106,491,000 |
Common stock, shares outstanding | 100,942,000 | 106,491,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net earnings | $403,703 | $438,248 | $427,049 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
Share-based compensation expense | 39,636 | 42,637 | 47,876 |
Tax benefits from exercises of share-based payment awards | 10,900 | 10,708 | 7,888 |
Excess tax benefits from share-based compensation | -10,890 | -9,583 | -8,929 |
Depreciation | 57,678 | 58,527 | 56,103 |
Amortization of intangible assets | 4,779 | 4,332 | 4,879 |
Deferred taxes | 15,872 | -3,946 | -2,349 |
Impairment of a privately-held equity investment | 7,725 | ' | ' |
Provision for doubtful accounts receivable | 7,150 | 5,984 | 10,350 |
(Income) loss from equity investment in affiliate | 822 | -2,461 | -245 |
Change in fair value of contingent consideration | -686 | -5,190 | ' |
Other, net | 382 | 1,673 | 1,265 |
Changes in assets and liabilities, net of effects of acquisitions: | ' | ' | ' |
Accounts receivable | -74,501 | -43,301 | -87,434 |
Inventories | -43,343 | -76,400 | -42,459 |
Prepaid expenses and other assets | -3,235 | -15,694 | -47,029 |
Accounts payable | 1,971 | 7,784 | 19,275 |
Accrued expenses and other liabilities | -844 | -32,731 | 37,748 |
Deferred revenues and advance payments from customers | 31,867 | 74,598 | 68,787 |
Net cash provided by operating activities | 448,986 | 455,185 | 492,775 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property, plant and equipment | -89,649 | -76,277 | -61,103 |
Investment in available-for-sale corporate debt securities | -45,209 | -10,044 | -30,503 |
Sale of a portion of investment in available-for-sale corporate debt security | 38,075 | ' | ' |
Acquisitions of businesses, net of cash acquired | -31,500 | ' | -28,241 |
Notes receivable | -5,500 | -10,000 | ' |
Note repayments from related party | ' | ' | 8,800 |
Net amounts paid to deferred compensation plan ("DCP") trust account | ' | -309 | -2,960 |
Other | 692 | 359 | -8,288 |
Net cash used in investing activities | -133,091 | -96,271 | -122,295 |
Cash flows from financing activities: | ' | ' | ' |
Repurchases of common stock | -627,742 | -419,933 | -257,440 |
Proceeds from issuance of common stock to employees | 99,655 | 129,582 | 60,332 |
Excess tax benefits from share-based compensation | 10,890 | 9,583 | 8,929 |
Employees' taxes withheld and paid for restricted stock and restricted stock units | -8,764 | -9,560 | -10,122 |
Net borrowings (repayments) under credit facility agreements | ' | -155,000 | -26,400 |
Borrowings under term loan facility | ' | 500,000 | ' |
Repayments under term loan facility and other bank borrowings | -68,750 | ' | -9,876 |
Other | -756 | -3,026 | -99 |
Net cash used in financing activities | -595,467 | 51,646 | -234,676 |
Effects of exchange rate changes on cash and cash equivalents | 10,986 | 2,731 | 4,309 |
Net increase (decrease) in cash and cash equivalents | -268,586 | 413,291 | 140,113 |
Cash and cash equivalents at beginning of period | 1,117,861 | 704,570 | 564,457 |
Cash and cash equivalents at end of period | $849,275 | $1,117,861 | $704,570 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (August 2011 Repurchase Agreement, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2012 |
August 2011 Repurchase Agreement | ' |
Value of Shares Received Upon Settlement of Repurchase Agreement | $25 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, except Share data | |||||
Beginning Balance at Sep. 30, 2011 | $1,243,891 | $112,344 | $500,922 | $677,473 | ($46,848) |
Beginning Balance (in shares) at Sep. 30, 2011 | ' | 112,344,000 | ' | ' | ' |
Net earnings | 427,049 | ' | ' | 427,049 | ' |
Other comprehensive earnings (loss) | -9,773 | ' | ' | ' | -9,773 |
Issuance of common stock | 60,332 | 1,664 | 58,668 | ' | ' |
Issuance of common stock (in shares) | ' | 1,664,000 | ' | ' | ' |
Tax benefits from exercises of share-based payment award | 7,888 | ' | 7,888 | ' | ' |
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units | -10,121 | -167 | -9,954 | ' | ' |
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units (in shares) | ' | -167,000 | ' | ' | ' |
Share-based compensation expense | 47,950 | ' | 47,950 | ' | ' |
Repurchases of common stock | -257,440 | -4,434 | -41,599 | -211,407 | ' |
Repurchases of common stock, shares | -4,433,718 | -4,434,000 | ' | ' | ' |
Ending Balance at Sep. 28, 2012 | 1,509,776 | 109,407 | 563,875 | 893,115 | -56,621 |
Ending Balance (in shares) at Sep. 28, 2012 | ' | 109,407,000 | ' | ' | ' |
Net earnings | 438,248 | ' | ' | 438,248 | ' |
Other comprehensive earnings (loss) | 16,550 | ' | ' | ' | 16,550 |
Issuance of common stock | 129,659 | 3,222 | 126,437 | ' | ' |
Issuance of common stock (in shares) | ' | 3,222,000 | ' | ' | ' |
Tax benefits from exercises of share-based payment award | 10,708 | ' | 10,708 | ' | ' |
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units | -9,560 | -138 | -9,422 | ' | ' |
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units (in shares) | ' | -138,000 | ' | ' | ' |
Share-based compensation expense | 42,130 | ' | 42,130 | ' | ' |
Repurchases of common stock | -423,664 | -6,000 | -96,644 | -321,020 | ' |
Repurchases of common stock, shares | -6,000,000 | -6,000,000 | ' | ' | ' |
Ending Balance at Sep. 27, 2013 | 1,713,847 | 106,491 | 637,084 | 1,010,343 | -40,071 |
Ending Balance (in shares) at Sep. 27, 2013 | 106,491,000 | 106,491,000 | ' | ' | ' |
Net earnings | 403,703 | ' | ' | 403,703 | ' |
Other comprehensive earnings (loss) | -18,540 | ' | ' | ' | -18,540 |
Issuance of common stock | 99,655 | 2,317 | 97,338 | ' | ' |
Issuance of common stock (in shares) | ' | 2,317,000 | ' | ' | ' |
Tax benefits from exercises of share-based payment award | 10,900 | ' | 10,900 | ' | ' |
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units | -8,764 | -116 | -8,648 | ' | ' |
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units (in shares) | -115,987 | -116,000 | ' | ' | ' |
Share-based compensation expense | 39,636 | ' | 39,636 | ' | ' |
Repurchases of common stock | -624,017 | -7,750 | -133,462 | -482,805 | ' |
Repurchases of common stock, shares | -7,750,000 | -7,750,000 | ' | ' | ' |
Ending Balance at Sep. 26, 2014 | $1,616,420 | $100,942 | $642,848 | $931,241 | ($58,611) |
Ending Balance (in shares) at Sep. 26, 2014 | 100,942,000 | 100,942,000 | ' | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 26, 2014 | |
Accounting Policies [Abstract] | ' |
Business Description and Accounting Policies [Text Block] | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Description of Business | |
Varian Medical Systems, Inc. (“VMS”) and subsidiaries (collectively, the “Company”) designs, manufactures, sells and services hardware and software products for treating cancer with radiotherapy, stereotactic radiosurgery, stereotactic body radiotherapy, and brachytherapy. The Company also designs, manufactures, sells and services X-ray imaging components for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, specific procedures, computed tomography and industrial applications. In addition, the Company designs, manufactures, sells and services linear accelerators, image processing software and image detection products for security and inspection purposes. The Company also develops, designs, manufactures, sells and services proton therapy products and systems for cancer treatment. | |
Basis of Presentation | |
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). | |
Segment Reporting | |
During the second quarter of fiscal year 2014, the Company changed its organizational structure resulting in a change in operating and reportable segments. The Company’s operations are grouped into two reportable operating segments: Oncology Systems and Imaging Components. The Company’s Ginzton Technology Center (“GTC”) and Varian Particle Therapy (“VPT”) business are reflected in the “Other” category because these operating segments do not meet the criteria of a reportable operating segment. See Note 17, “Segment Information” for additional information. | |
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 2014 was the 52-week period that ended on September 26, 2014. Fiscal year 2013 was the 52-week period that ended on September 27, 2013 and fiscal year 2012 was the 52-week period that ended on September 28, 2012. | |
Distribution | |
On April 2, 1999, Varian Associates, Inc. reorganized into three separate publicly traded companies by spinning off, through a tax-free distribution, two of its businesses to stockholders (the “Spin-offs”). The Spin-offs resulted in the following three companies: 1) the Company (renamed from Varian Associates, Inc. to Varian Medical Systems, Inc. following the Spin-offs); 2) Varian, Inc. (“VI”), which became a wholly owned subsidiary of Agilent Technologies Inc. in May 2010; and 3) Varian Semiconductor Equipment Associates, Inc. (“VSEA”), which became a wholly owned subsidiary of Applied Materials, Inc. in November 2011. The Spin-offs resulted in a non cash dividend to stockholders. | |
In connection with the Spin-offs, the Company, VI and VSEA also entered into various agreements that set forth the principles to be applied in separating the companies and allocating certain related costs and specified portions of contingent liabilities. See Note 9, “Commitments and Contingencies” for additional information. | |
Principles of Consolidation | |
The consolidated financial statements include those of VMS and its 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 Consolidated Financial Statements. For fiscal years 2014, 2013 and 2012, the Company did not consolidate any variable interest entities, because the Company was not a primary beneficiary. | |
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. | |
Foreign Currency Translation | |
The Company uses the U.S. dollar predominately as the functional currency of its foreign subsidiaries. For foreign subsidiaries where the U.S. dollar is the functional currency, gains and losses from remeasurement of foreign currency balances into U.S. dollars are included in the Consolidated Statements of Earnings. The aggregate net gains (losses) resulting from foreign currency transactions and remeasurement of foreign currency balances into U.S. dollars that were included in the Consolidated Statements of Earnings were $(0.5) million, $0.7 million and $0.4 million in fiscal years 2014, 2013 and 2012, respectively. For the foreign subsidiary where the local currency is the functional currency, translation adjustments of foreign currency financial statements into U.S. dollars are recorded to a separate component of accumulated other comprehensive income (loss). See Note 8, “Derivative Instruments and Hedging Activities” regarding the Company’s hedging activities and derivative instruments. Also see Note 3, “Fair Value” regarding valuation of the Company’s derivative instruments. | |
Cash and Cash Equivalents | |
The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. | |
Available-for-sale investments | |
The Company has investments in corporate debt securities from California Proton Therapy Center, LLC (“CPTC”) that are classified as available-for-sale investments, which are recorded in the Consolidated Balance Sheets at fair value. Unrealized gains and losses on these investments are included as a separate component of accumulated other comprehensive loss, net of tax, on the Consolidated Balance Sheets. The Company classifies its available-for-sale investments as short-term or long-term based on the nature of the investment, its maturity date and its availability for use in current operations. The Company monitors its available-for-sale securities for possible other-than-temporary impairment when business events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company has not identified any indication of impairment of its available-for-sale investments for fiscal years 2014, 2013 and 2012. | |
Investments in Privately Held Companies | |
Equity investments in privately held companies in which the Company holds at least a 20% ownership interest or in which the Company has the ability to exercise significant influence are accounted for under the equity method of accounting. Equity investments in privately held companies in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are accounted for under the cost method of accounting. The Company’s equity investments in privately held companies are included in other assets on the Consolidated Balance Sheets. See Note 2, “Balance Sheet Components”. The Company monitors these equity investments for impairment and makes appropriate reductions in carrying values if the Company determines that impairment charges are required based primarily on the financial condition and near-term prospects of these companies. | |
The carrying value of equity investments in privately-held companies accounted for under the equity method of accounting was $49.7 million for both the fiscal year ended September 26, 2014 and September 27, 2013. The Company did not have any impairment loss on equity investments in privately-held companies accounted for under the equity method of accounting for fiscal years 2014, 2013 and 2012. Additionally, the Company has an investment in Augmenix, Inc. (“Augmenix”), a privately held company, which is accounted for under the cost-method. During fiscal year 2014, the Company recognized a $7.7 million charge, including a $1.4 million write-off of the option to purchase the remaining equity interest of Augmenix upon its expiry, relating to the impairment of a portion of the investment in Augmenix. Equity investments accounted for under the cost method, including Augmenix, totaled $15.0 million and $21.4 million at September 26, 2014 and September 27, 2013, respectively. | |
Concentration of Credit Risk | |
Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents, available-for-sale investments, trade accounts receivable, notes receivable, and derivative financial instruments used in hedging activities. Cash and cash equivalents held with financial institutions may exceed the Federal Deposit Insurance Corporation insurance limits or similar limits in foreign jurisdictions. The Company has not experienced any losses on its deposits of cash and cash equivalents. With respect to its available-for-sale investments and notes receivable, the Company performs a periodic credit evaluation of CPTC, the obligor under the available-for-sale debt securities and various counterparties for notes receivable. In addition, the Company will be exposed to credit loss in the event of nonperformance by counterparties on the foreign currency forward contracts used in hedging activities. The Company transacts its foreign currency forward contracts with several large international and regional financial institutions and, therefore, does not consider the risk of nonperformance to be concentrated in any specific counterparty. The Company has not experienced any losses resulting from the failure of counterparty to meet its financial obligations under foreign currency forward contracts. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers comprising the Company’s customer base and their geographic dispersion. The Company performs ongoing credit evaluations of its customers and, except for government tenders, group purchases and orders with a letter of credit, requires its Oncology Systems, security and inspection products and VPT customers to generally provide a down payment. The Company maintains an allowance for doubtful accounts based upon the expected collectability of all accounts receivable. No single customer represented more than 10% of the accounts receivable amount for any period presented. | |
Inventories | |
Inventories are valued at the lower of cost or market (realizable value). Excess and obsolete inventories are determined primarily based on future demand forecasts and write-downs of excess and obsolete inventories are recorded as a component of cost of revenues. Cost is computed using standard cost (which approximates actual cost) and actual cost on a first-in-first-out or average basis. | |
Property, Plant and Equipment | |
Property, plant and equipment are stated at cost, net of accumulated depreciation. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Costs incurred for internal use software during the application development stage are capitalized in accordance with guidance on internal-use software. Internally developed software primarily includes enterprise-level business software that the Company customizes to meet its specific operational needs. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Land is not subject to depreciation, but land improvements are depreciated over fifteen years. Land leasehold rights and leasehold improvements are amortized over the lesser of their estimated useful lives or remaining lease terms. Buildings are depreciated over twenty or thirty years. Machinery and equipment are depreciated over their estimated useful lives, which range from three to seven years. Assets subject to lease are amortized over the lesser of their estimated useful lives or remaining lease terms. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are removed from the accounts. Gains or losses resulting from retirements or disposals of property, plant and equipment are included in operating expenses. | |
Goodwill and Intangible Assets | |
Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. Purchased intangible assets are carried at cost, net of accumulated amortization. Intangible assets with finite lives are amortized over their estimated useful lives of approximately two to seventeen years generally using the straight-line method. | |
Impairment of Long-lived Assets, Goodwill and Intangible Assets | |
The Company reviews long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company assesses these assets for impairment based on their estimated undiscounted future cash flows. If the carrying value of the assets exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any impairment charges for long-lived assets and identifiable intangible assets in fiscal years 2014, 2013, and 2012. | |
The Company evaluates goodwill for impairment at least annually or whenever an event occurs or circumstances changes that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If the Company determines that a quantitative analysis is necessary, the impairment test for goodwill is a two-step process. Step one consists of a comparison of the fair value of a reporting unit against its carrying amount, including the goodwill allocated to each reporting unit. The Company determines the fair value of its reporting units based on a combination of income and market approaches. The income approach is based on the present value of estimated future cash flows of the reporting units and the market approach is based on a market multiple calculated for each business unit based on market data of other companies engaged in similar business. If the carrying amount of the reporting unit is in excess of its fair value, step two requires the comparison of the implied fair value of the reporting unit’s goodwill against the carrying amount of the reporting unit’s goodwill. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as an impairment loss. | |
In fiscal years 2014, 2013 and 2012, the Company performed the annual goodwill impairment testing for the four reporting units that carried goodwill namely (i) Oncology Systems, (ii) X-ray tubes and flat panel products (formerly “X-Ray Products”), (iii) Security and inspection products, and (iv) VPT, and found no impairment. Based on the most recent annual goodwill impairment testing that the Company performed as of the end of the third quarter of fiscal year 2014, the fair value of each reporting unit was substantially in excess of its carrying value. | |
Loss Contingencies | |
From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that it believes will result in a probable loss. | |
Environmental remediation liabilities are recorded when environmental assessments and/or remediation efforts are probable, and the costs of these assessments or remediation efforts can be reasonably estimated. | |
Product Warranty | |
The Company warrants most of its products for a specific period of time, usually 12 months from installation, against material defects. The Company provides for the estimated future costs of warranty obligations in cost of revenues when the related revenues are recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that the Company will incur to repair or replace product parts that fail while still under warranty. The amount of the accrued estimated warranty costs obligation for established products is primarily based on historical experience as to product failures adjusted for current information on repair costs. For new products, estimates include the historical experience of similar products, as well as reasonable allowance for warranty expenses associated with new products. On a quarterly basis, the Company reviews the accrued warranty costs and updates the historical warranty cost trends, if required. | |
Revenue Recognition | |
The Company’s revenues are derived primarily from the sale of hardware and software products, and related services and contracts from the Company’s Oncology Systems, Imaging Components and VPT businesses. The Company recognizes its revenues net of any value added or sales tax and net of sales discounts. | |
Many of the Company’s revenue arrangements consist of multiple deliverables of its software and non-software products, as well as related services. In Oncology Systems, the linear accelerators are often sold with hardware and software accessory products that enhance efficiency and enable delivery of advanced radiotherapy and radiosurgery treatments. Many of the Oncology Systems hardware and software accessory products are also sold on a stand-alone basis. The Imaging Components business generally sells its X-ray components (including X-ray tubes, flat panel detectors and image processing tools) and security and inspection products on a stand-alone basis. However, the Imaging Components business occasionally sells its flat panel detectors, X-ray tubes and imaging processing tools as a package that is optimized for digital X-ray imaging and sells its Linatron® X-ray accelerators together with its imaging processing software and image detection products to original equipment manufacturer (“OEM”) customers that incorporate them into their inspection systems. Service contracts are often sold with Oncology Systems products, as well as with certain security and inspection products within the Imaging Components business. As discussed below, certain of the Oncology Systems products are sold with installation obligations. Delivery of different elements in a revenue arrangement often span more than one reporting period. For example, a linear accelerator may be delivered in a reporting period but the related installation is completed in a later period. Revenue related to service contracts usually starts after the expiration of the warranty period for non-software products or upon acceptance for software products. | |
For a multiple element arrangement that includes software and non-software deliverables which includes service contracts, the Company first allocates revenues among the software and non-software deliverables on a relative selling price basis. The amounts allocated to the non-software products and software are accounted for as follows: | |
Non-software Products | |
Non-software products include hardware products, software components that function together with the hardware components to deliver the product’s essential functionality, as well as service contracts. Except as described below under “Service,” the Company recognizes revenues for non-software products when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. | |
For multiple element revenue arrangements that involve non-software products, a delivered non-software element is considered as a separate unit of accounting when it has stand-alone value and there is no customer-negotiated refund or return rights for the delivered element. The allocation of revenue to all deliverables based on their relative selling prices is determined at the inception of the arrangement. The selling price for each deliverable is determined using vendor-specific objective evidence (“VSOE”) of selling price, if it exists; otherwise, third-party evidence of selling price (“TPE”). If neither VSOE nor TPE of selling price exists for a deliverable the Company uses the deliverable’s estimated selling prices (“ESP”). | |
The Company’s non-software products have stand-alone value because they are sold separately. Product installation, which is a standard process and does not involve changes to the features or capabilities of the Company’s products, is considered as a separate unit of accounting. Installation of Oncology Systems non-software products involves the Company’s testing of each product at its factory prior to the product’s delivery to ensure that the product meets the Company’s published specifications. Once these tests establish that the specifications have been met, the product is then disassembled and shipped to the customer’s site as specified in the customer contract. Risk of loss is transferred to the customer typically at the time of shipment or delivery, depending upon the terms of the contract. At the customer’s site, the product is reassembled, installed and retested in accordance with the Company’s installation procedures to ensure and demonstrate compliance with the Company’s published specifications for that product. | |
Under the terms of the Company’s standard non-software sales contracts, “acceptance” of a non-software product with installation obligations is deemed to have occurred upon the earliest of (i) completion of product installation and testing in accordance with the Company’s standard installation procedures showing compliance with the Company’s published specifications for that product, (ii) receipt by the Company of an acceptance form executed by the customer acknowledging installation and compliance with the Company’s published specifications for that product, (iii) use by the customer of the product for any purpose after its delivery or (iv) six months after the delivery of the product to the customer by the Company. The contracts allow for cancellation only by mutual agreement, thus the customer does not have a unilateral right to return the delivered non-software product. | |
The Company establishes VSOE of selling price based on the price charged for a deliverable when sold separately. Occasionally for a deliverable not yet being sold separately, the Company may initially establish VSOE by management having the relevant authority. As discussed above, many products are sold in stand-alone arrangements and accordingly have VSOE of selling price. Service contracts are sold separately through either original sale or subsequent renewal of annual contracts. The Company establishes TPE generally by evaluating the Company’s and competitors’ largely interchangeable competing products or services in stand-alone sales to similarly situated customers. The TPE for product installation is determined based on the estimated labor hours and the prevailing hourly rate charged for similar services, as well as the prices charged by outside vendors for installation of the Company’s products. For certain products for which the Company is not able to establish VSOE or TPE of selling prices, ESPs are used as the basis of their selling prices. The Company estimates selling prices following an established process that considers market conditions, including the product offerings and pricing strategies of competitors, as well as internal factors such as historical pricing practices and margin objectives. The establishment of product and service ESPs is controlled and reviewed by the appropriate level of management in all of the Company’s businesses. | |
The Company limits the amount of revenue recognized for delivered items to the amount that is not contingent upon the delivery of additional products or services. For Oncology Systems non-software products with installation obligations, the Company recognizes as revenues a portion of the product purchase price upon transfer of risk of loss and defers revenue recognition on the portion associated with product installation, provided that all other criteria for revenue recognition have been met. The portion deferred is the greater of the relative selling price of the installation services for such products or the amount of payment contractually linked to product installation services. | |
The Company does not have installation obligations for X-ray tubes, digital image detectors, spare parts, security and inspection products, and for certain hardware Oncology Systems. For the products that do not include installation obligations, the Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the terms of the contract, provided that all other revenue recognition criteria have been met. | |
Software Products | |
Except as described below under “Service,” the Company recognizes revenues for software products in accordance with the software revenue recognition guidance. The Company recognizes license revenues when all of the following criteria have been met: persuasive evidence of an arrangement exists, the vendor’s fee is fixed or determinable, collection of the related receivable is probable, delivery of the product has occurred and the Company has received from the customer an acceptance form acknowledging installation and substantial conformance with the Company’s specifications (as set forth in the user manual) for such product, or upon verification of installation when customer acceptance is not required to be received, or upon the expiration of an acceptance period, provided that all other criteria for revenue recognition have been met. | |
Revenues earned on software arrangements involving multiple elements are allocated to each element based on VSOE of fair value, which is based on the price charged when the same element is sold separately. In instances when evidence of VSOE of fair value of all undelivered elements exists, but evidence does not exist for one or more delivered elements, revenues are recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. Revenue allocated to maintenance and support is recognized ratably over the maintenance term (typically one year). | |
For those software products that are not sold stand-alone or for which VSOE cannot be established or maintained, all software revenue under the contract will be deferred until the software product(s) that lack VSOE are all delivered. If the only undelivered software element that lacks VSOE is maintenance and support then the software revenue would be recognized ratably over the term of the maintenance and support arrangement. | |
Installation of the Company’s software products may involve a certain amount of customer-specific implementation to enable the software product to function within the customer’s operating environment (i.e., with the customer’s information technology network and other hardware, with the customer’s data interfaces and with the customer’s administrative processes) and substantially in conformance with the Company’s specifications (as set forth in the user manual) for such product. With these software products, customers do not have full use of the software (i.e., functionality) until the software is installed as described above and functioning within the customer’s operating environment. Therefore, the Company recognizes 100% of such software revenues upon receipt from the customer of the Company’s acceptance form acknowledging installation and such substantial conformance, or upon verification of installation when the Company is not required to receive customer acceptance, or upon the expiration of an acceptance period, provided that all other criteria for revenue recognition have been met. | |
The Company does not have installation obligations for security and inspection and certain brachytherapy software products. For software products that do not include installation obligations, the Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the shipping terms of the contract, provided that all other criteria for revenue recognition have been met. | |
Contracts for Customized Equipment | |
Revenues related to certain highly customized image detection systems, proton therapy systems and proton therapy system commissioning contracts are recognized in accordance with contract accounting. The Company recognizes contract revenues under the percentage-of-completion method which are based on contract costs incurred to date compared with total estimated contract costs. Changes in estimates of total contract revenue, total contract cost or the extent of progress towards completion are recognized in the period in which the changes in estimates are identified. Estimated losses on contracts are recognized in the period in which the loss is identified. In circumstances in which the final outcome of a contract cannot be precisely estimated but a loss on the contract is not expected, the Company recognizes revenues under the percentage-of-completion method based on a zero profit margin until more precise estimates can be made. If and when the Company can make more precise estimates, revenues and costs of revenues are adjusted in the same period. | |
Contracts accounted for in accordance with contract accounting are billable upon achievement of milestones specified in the contracts or upon customer acceptance. Costs incurred and revenues recognized under the percentage-of-completion method in excess of customer billings are included in accounts receivable in the Consolidated Balance Sheets. Customer billings in excess of costs incurred and revenue recognized under the percentage-of-completion method, which typically reflect initial down payments, are included in advance payments from customers in the Consolidated Balance Sheets. Costs incurred and revenues recognized in excess of customer billings were $57.2 million as of September 26, 2014 and $68.1 million as of September 27, 2013. Customer billings in excess of costs incurred and revenue recognized were $52.6 million as of September 26, 2014 and $33.8 million as of September 27, 2013. | |
Service | |
Service revenues include revenues from hardware and software service contracts, bundled support arrangements, paid services and trainings, and parts that are sold by the service department. Revenues allocated to service contracts are generally recognized ratably over the period of the related contracts. For proton therapy systems service contracts, revenues subject to certain penalty provisions are deferred until reliable estimates can be made or the related penalty provisions lapse. Revenues related to services performed on a time-and-materials basis are recognized when they are earned and billable. | |
Advance Payments from Customers | |
Except for government tenders, group purchases and orders with letters of credit, the Company typically requires its Oncology Systems, security and inspection and VPT customers to provide a down payment prior to transfer of risk of loss of ordered products. These payments are recorded as advance payments from customers in the Consolidated Balance Sheets. | |
Deferred Revenue | |
Deferred revenue includes (i) the amount billed, billable or received applicable to shipment of software products but for which installation and/or final acceptance have not been completed (ii) the amount billed, billable or received applicable to non-software products for which installation and/or acceptance have not been completed and (iii) the amount billed or billable for service contracts for which the services have not been rendered. Deferred costs associated with deferred revenues are included in inventories in the Consolidated Balance Sheets. | |
Medical Device Excise Tax | |
In accordance with the Patient Protection and Affordable Care Act, effective January 1, 2013, the Company began to incur a 2.3% excise tax on sales of medical devices in the United States. The medical device excise tax is included in the cost of revenues in the Consolidated Statements of Earnings for fiscal year 2014 and 2013, net of any amounts directly billed to customers for this tax. | |
Share-Based Compensation Expense | |
The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors, including stock options, employee stock purchases related to the Varian Medical Systems, Inc. Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”), deferred stock units, restricted stock, restricted stock units and performance units based on their fair values. | |
Share-based compensation expense recognized in the Consolidated Statements of Earnings includes compensation expense for the share-based payment awards based on the grant date fair value estimated in accordance with the guidance on share-based compensation. The Company values VMS’s stock options granted and the option component of the shares of VMS common stock purchased under the Employee Stock Purchase Plan using the Black-Scholes option-pricing model, which was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Share-based compensation expense for restricted common stock, restricted stock units and deferred stock units is measured at the stock’s fair value on the date of grant and is amortized over each award’s respective service period. The Company values performance units using the Monte Carlo simulation model on the date of grant with assumptions that includes the historical volatility of shares of VMS common stock, as well as the shares of common stock of peer companies. In addition, the Company estimates the probability that certain performance conditions that affect the vesting of performance units will be achieved, and recognizes expense only for those awards expected to vest. Both the Black-Scholes option-pricing model and the Monte Carlo simulation model require the input of certain assumptions and changes in the assumptions can materially affect the fair value estimates of share-based payment awards. | |
Share-based compensation expense recognized is based on the value of the portion of share-based payment awards that is ultimately expected to vest. The Company attributes the value of share-based compensation to expense using the straight-line method. The Company considers only the direct tax impacts of share-based compensation awards when calculating the amount of tax windfalls or shortfalls. | |
Earnings per share | |
Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares of VMS common stock outstanding for the period. Diluted net earnings per share is computed by dividing net earnings by the sum of the weighted average number of common shares outstanding and dilutive common shares under the treasury stock method. The Company excludes potentially dilutive common shares (consisting of shares underlying stock options, restricted stock units, performance units and the Employee Stock Purchase Plan) from the computation of diluted weighted average shares outstanding if the per share value, either the exercise price of the awards or the sum of (a) the exercise price of the awards and (b) the amount of the compensation cost attributed to future services and not yet recognized and (c) the amount of tax benefit or shortfall that would be recorded in additional paid-in capital when the award becomes deductible, is greater than the average market price of the shares, because the inclusion of the shares underlying these stock awards would be antidilutive to earnings per share. | |
Shipping and Handling Costs | |
Shipping and handling costs are included as a component of cost of revenues. | |
Research and Development | |
Research and development costs have been expensed as incurred. These costs primarily include employees’ compensation, consulting fees, material costs and research grants. | |
Software Development Costs | |
Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No costs associated with the development of software have been capitalized as the Company believes its current software development process is essentially completed concurrent with the establishment of technological feasibility. | |
Comprehensive Earnings | |
Comprehensive earnings include all changes in equity (net assets) during a period from non-owner sources. Comprehensive earnings include currency translation adjustments, change in unrealized gain or loss on derivative instruments designated as cash flow hedges, net of taxes (see Note 8, “Derivative Instruments and Hedging Activities”), and adjustments to and amortization of unrecognized actuarial gain or loss, unrecognized transition obligation and unrecognized prior service cost of our defined benefit pension and post-retirement benefit plans. See Note 10, “Retirement Plans.” | |
Taxes on Earnings | |
Taxes on earnings are based on pretax financial accounting income. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. | |
Recent Accounting Pronouncements | |
a) New accounting updates recently adopted | |
In December 2011, the Financial Accounting Standards Board (“FASB”) amended Accounting Standards Codification (“ASC”) 210, “Balance Sheet,” enhancing disclosure requirements about the nature of an entity’s right to offset and related arrangements associated with its financial instruments and derivative instruments. The guidance requires the disclosure of the gross amounts subject to rights of set-off, the amounts offset in accordance with the accounting standards followed, and the related net exposure. In January 2013, the FASB clarified the scope of the guidance. The guidance became effective for the Company beginning in the first quarter of fiscal year 2014. As a result of the application of this accounting standard update, the Company has provided additional disclosures in the accompanying notes to the consolidated financial statements. The adoption of this amendment did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. | |
In February 2013, the FASB issued an accounting standard update to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. The Company adopted this guidance in the first quarter of fiscal year 2014. As a result of the application of this accounting standard update, the Company has provided additional disclosures in the accompanying notes to the consolidated financial statements. The adoption of this amendment did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. | |
b) Recent accounting standards or updates not yet effective | |
In May 2014, the FASB issued an amendment to its accounting guidance related to revenue recognition. The amendment sets forth a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. The amendment requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance will be effective for the Company beginning in its first quarter of fiscal year 2018. Early adoption is not permitted. The amendment can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures. The Company is evaluating the impact of adopting this guidance to its consolidated financial statements. | |
In June 2014, the FASB issued an amendment to its accounting guidance related to stock-based compensation. The amendment requires that a performance target that could be achieved after the requisite service period be treated as a performance condition that affects vesting, rather than a condition that affects the grant-date fair value. The new guidance will be effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is permitted. The amendment can be applied on a prospective basis to all share-based payments granted or modified on or after the effective date. Entities will also be provided an option to apply the guidance on a modified retrospective basis to existing awards. The Company is evaluating the impact of adopting this guidance to its consolidated financial statements. |
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Balance Sheet Components | ' | |||||||
2. BALANCE SHEET COMPONENTS | ||||||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Available-for-sale investments: | ||||||||
Corporate debt securities: | ||||||||
Amortized cost | $ | 75.6 | $ | 62.7 | ||||
Unrealized gain (loss) | - | - | ||||||
Fair value | $ | 75.6 | $ | 62.7 | ||||
The available-for-sale securities represent loans to CPTC. As of September 26, 2014, of the total amount of $75.6 million of the available-for-sale securities, $66.2 million is included in short-term investment and $9.4 million is included in other assets on the Consolidated Balance Sheet. As of September 27, 2013, the entire amount of the available-for-sale securities was included in short-term investment on the Consolidated Balance Sheet. See Note 16, “CPTC Loans” for more information. | ||||||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Inventories: | ||||||||
Raw materials and parts | $ | 296.1 | $ | 276.6 | ||||
Work-in-process | 124.5 | 91.6 | ||||||
Finished goods | 151.7 | 167 | ||||||
Total inventories | $ | 572.3 | $ | 535.2 | ||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Property, plant and equipment: | ||||||||
Land and land improvements | $ | 45.1 | $ | 44.6 | ||||
Buildings and leasehold improvements | 260.8 | 242.2 | ||||||
Machinery and equipment | 424 | 380.8 | ||||||
Construction in progress | 44.7 | 46.6 | ||||||
Assets subject to lease | 1.4 | 1.8 | ||||||
776 | 716 | |||||||
Accumulated depreciation and amortization | (438.0 | ) | (400.7 | ) | ||||
Property, plant and equipment, net | $ | 338 | $ | 315.3 | ||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Other assets: | ||||||||
DCP assets | $ | 59.6 | $ | 55.2 | ||||
Investments in privately-held companies | 64.7 | 71.1 | ||||||
Long-term receivables | 58.5 | 26 | ||||||
Intangible assets | 40.9 | 23.4 | ||||||
Long-term deferred tax assets | 11.5 | 10.5 | ||||||
Other | 49.3 | 36.8 | ||||||
Total other assets | $ | 284.5 | $ | 223 | ||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Accrued expenses: | ||||||||
Accrued compensation and benefits | $ | 121.4 | $ | 104.8 | ||||
DCP liabilities | 57.9 | 54.6 | ||||||
Income taxes payable | 30.9 | 40 | ||||||
Current deferred tax liabilities | 10.8 | 7.6 | ||||||
Other | 103.4 | 113.9 | ||||||
Total accrued expenses | $ | 324.4 | $ | 320.9 | ||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Other long-term liabilities: | ||||||||
Long-term income taxes payable | $ | 55.2 | $ | 41.9 | ||||
Long-term deferred income taxes | 31.5 | 12 | ||||||
Other | 65 | 90.1 | ||||||
Total other long-term liabilities | $ | 151.7 | $ | 144 | ||||
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value | ' | ||||||||||||||||
3. FAIR VALUE | |||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. There is a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |||||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||
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 Measurement Using | |||||||||||||||||
Type of Instruments | Quoted Prices in | Significant Other | Significant | Total | |||||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | Balance | ||||||||||||||
for Identical Instruments | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In millions) | |||||||||||||||||
Assets at September 26, 2014: | |||||||||||||||||
Available-for-sale corporate debt securities | $ | - | $ | - | $ | 75.6 | $ | 75.6 | |||||||||
Derivative assets | - | 1.5 | - | 1.5 | |||||||||||||
Total assets measured at fair value | $ | - | $ | 1.5 | $ | 75.6 | $ | 77.1 | |||||||||
Liabilities at September 26, 2014: | |||||||||||||||||
Contingent consideration | $ | - | $ | - | $ | (7.5 | ) | $ | (7.5 | ) | |||||||
Total liabilities measured at fair value | $ | - | $ | - | $ | (7.5 | ) | $ | (7.5 | ) | |||||||
Assets at September 27, 2013: | |||||||||||||||||
Money market funds | $ | 50 | $ | - | $ | - | $ | 50 | |||||||||
Available-for-sale corporate debt securities | - | - | 62.7 | 62.7 | |||||||||||||
Option to purchase a privately-held company | - | - | 1.4 | 1.4 | |||||||||||||
Total assets measured at fair value | $ | 50 | $ | - | $ | 64.1 | $ | 114.1 | |||||||||
Liabilities at September 27, 2013: | |||||||||||||||||
Derivative liabilities | $ | - | $ | (1.1 | ) | $ | - | $ | (1.1 | ) | |||||||
Contingent consideration | - | - | (2.5 | ) | (2.5 | ) | |||||||||||
Total liabilities measured at fair value | $ | - | $ | (1.1 | ) | $ | (2.5 | ) | $ | (3.6 | ) | ||||||
Money market funds are included under cash and cash equivalents, available-for-sale corporate debt securities are included under short-term investment and other assets, derivative assets are included under prepaid expenses and other current assets, option to purchase a privately-held company is included under other assets, derivative liabilities are included under accrued liabilities and contingent consideration is included under accrued liabilities and other-long term liabilities on the Consolidated Balance Sheets. | |||||||||||||||||
The Company obtains valuations of Level 1 money market funds from quotes for transactions in active exchange markets involving identical assets. | |||||||||||||||||
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 short-term in nature, typically one month to thirteen months in duration. | |||||||||||||||||
The Company measures the fair value of its Level 3 contingent consideration liabilities based on the income approach by using a Monte Carlo simulation model with key assumptions that include estimated sales units or revenues of the acquired business or completion of certain milestone targets during the earn-out period, volatility, and estimated discount rates corresponding to the periods of expected payments. If the estimated sales units, 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 volatility or the estimated discount rates were to increase or decrease, the fair value of contingent consideration would decrease or increase, respectively. The Company estimated that the threshold for the earn-out payments for Calypso Medical Technologies, Inc., acquired in fiscal year 2012 would not be met and reversed the entire amount of contingent consideration liability of $4.9 million during fiscal year 2013. The Company decreased the contingent consideration liability of InfiMed, Inc., acquired in fiscal year 2012, by $0.5 million and $0.3 million during fiscal year 2014 and fiscal year 2013, respectively, based on revised estimates of sales units during the remaining earn-out period. | |||||||||||||||||
The fair value of the Company’s Level 3 available-for-sale corporate debt securities is based on the income approach by using the discounted cash flow model with key assumptions that include discount rates corresponding to the terms and risks associated with the loans to CPTC. If the estimated discount rates used were to increase or decrease, the fair value of the debt securities would decrease or increase, respectively. However, the Company does not increase the fair value of these securities above their par values as ORIX Capital Markets, LLC (“ORIX”), the loan agent, has the option to purchase these loans from the Company under the original terms and conditions at par value. | |||||||||||||||||
As of September 27, 2013, the Company had an option to purchase the remaining equity interest of Augmenix that was classified as a Level 3 asset and its fair value was based on the income approach using key assumptions that include projected operating results of the company and an estimated discount rate corresponding to the period of expected payment. The option was written off upon its expiry during the third quarter of fiscal year 2014. See further discussion below. | |||||||||||||||||
The following table presents the reconciliation for all assets and liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||||
(In millions) | Available-For-Sale | Contingent | Option to Purchase | ||||||||||||||
Corporate Debt | Consideration | a Privately-Held | |||||||||||||||
Securities | Company | ||||||||||||||||
Balance at September 27, 2013 | $ | 62.7 | $ | (2.5 | ) | $ | 1.4 | ||||||||||
Additions (1) | 51 | (6.2 | ) | ||||||||||||||
Sale of portion of corporate debt security (2) | (38.1 | ) | - | ||||||||||||||
Settlements (3) | - | 0.5 | |||||||||||||||
Change in fair value recognized in earnings | - | 0.7 | (1.4 | ) | |||||||||||||
Balance at September 26, 2014 | $ | 75.6 | $ | (7.5 | ) | $ | - | ||||||||||
1 | Amounts reported under Available-For-Sale Corporate Debt Securities include accrued interest. | ||||||||||||||||
2 | Refer to Note 16 “CPTC Loans” | ||||||||||||||||
3 | Amounts reported under “Contingent Consideration” represent cash payments to settle contingent consideration liabilities. | ||||||||||||||||
There were no transfers of assets or liabilities between fair value measurement levels during fiscal years 2014, 2013 and 2012. Transfers between fair value measurement levels are recognized at the end of the reporting period. | |||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
During the fiscal year ended September 26, 2014, the Company recognized a $7.7 million charge relating to the impairment of a portion of its investment in Augmenix. The impairment charge of $7.7 million included a $1.4 million write-off of the option to purchase the remaining equity interest of Augmenix, upon its expiry. This option was previously measured at fair value on a recurring basis. | |||||||||||||||||
For the fiscal year ended September 26, 2014, the Company’s assets that were measured at fair value on a nonrecurring basis are summarized below: | |||||||||||||||||
(in millions) | Carrying | Total Losses for | |||||||||||||||
Value as of | Fiscal Year 2014 | ||||||||||||||||
End of Period | |||||||||||||||||
Equity Investment in Augmenix | $ | 7.3 | $ | 6.3 | |||||||||||||
The fair value measurement of the impaired privately held investment was classified as Level 3 because significant unobservable inputs were used in the valuation due to the absence of quoted market prices and inherent lack of liquidity. Significant unobservable inputs, which included financial condition and recent financing activities of the investees, reflected the assumptions market participants would use in pricing these assets. The impairment charge, representing the difference between the net book value and the fair value of the investment as a result of the evaluation, was recorded within selling, general and administrative expenses. | |||||||||||||||||
Fair Value of Other Financial Instruments | |||||||||||||||||
The fair values of certain of the Company’s financial instruments, including bank deposits included in cash equivalents, accounts receivable, net of allowance for doubtful accounts, notes receivable, accounts payable, and short-term debt approximate their carrying amounts due to their short maturities. | |||||||||||||||||
At September 26, 2014 and September 27, 2013, the fair value of current maturities of the long-term debt approximated its carrying value of $50.0 million and $56.3 million, respectively, due to its short-term maturity. The fair value of the long-term debt, payable in installments through fiscal year 2018, approximated its carrying value of $387.5 million and $450.0 million at September 26, 2014 and September 27, 2013, respectively, because it is carried at a market observable interest rate that resets periodically and is categorized as level 2 in the fair value hierarchy. |
Financing_Receivables_and_Allo
Financing Receivables and Allowance for Credit Losses | 12 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Receivables [Abstract] | ' | |||||||||||
Financing Receivables and Allowance for Credit Losses | ' | |||||||||||
4. FINANCING RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES | ||||||||||||
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 Consolidated Balance Sheets. The Company’s financing receivables, includes accounts receivable and notes receivable with contractual maturities of more than one year. | ||||||||||||
The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year are presented in the following table: | ||||||||||||
September 26, | September 27, | September 28, | ||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Accounts receivable with contractual maturities of more than one year: | ||||||||||||
Gross amount | $ | 35.4 | $ | 28 | $ | 29.9 | ||||||
Allowance for doubtful accounts | (3.0 | ) | (3.0 | ) | (3.0 | ) | ||||||
Net amount | $ | 32.4 | $ | 25 | $ | 26.9 | ||||||
Amount past due | $ | 3.7 | $ | 3.1 | $ | 4.3 | ||||||
There was no significant activity in the allowance for doubtful financing receivable accounts during fiscal years 2014, 2013, and 2012.The Company’s notes receivable with contractual maturities of more than one year was $15.0 million at September 26, 2014. The Company did not have any notes receivable with contractual maturities of more than one year at September 27, 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
5. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||
The following table reflects the activity of goodwill by reportable operating segment: | ||||||||||||||||
(In millions) | Oncology | Imaging | Other | Total | ||||||||||||
Systems | Components | |||||||||||||||
Balance at September 28, 2012 | $ | 132 | $ | 33.2 | $ | 57 | $ | 222.2 | ||||||||
Foreign currency translation adjustments | - | - | 3.1 | 3.1 | ||||||||||||
Balance at September 27, 2013 | 132 | 33.2 | 60.1 | 225.3 | ||||||||||||
Acquisition of business | 16.3 | 2.8 | - | 19.1 | ||||||||||||
Foreign currency translation adjustments | - | - | (3.8 | ) | (3.8 | ) | ||||||||||
Balance at September 26, 2014 | $ | 148.3 | $ | 36 | $ | 56.3 | $ | 240.6 | ||||||||
The following table reflects the gross carrying amount and accumulated amortization of the Company’s finite-lived intangible assets included in other assets in the Consolidated Balance Sheets: | ||||||||||||||||
September 26, | September 27, | |||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Intangible Assets: | ||||||||||||||||
Acquired existing technology | $ | 54.6 | $ | 36.6 | ||||||||||||
Patents, licenses and other | 28.8 | 29 | ||||||||||||||
Customer contracts and supplier relationship | 12.4 | 10.9 | ||||||||||||||
Accumulated amortization | (56.9 | ) | (53.1 | ) | ||||||||||||
Net carrying amount | $ | 38.9 | $ | 23.4 | ||||||||||||
As of September 26, 2014, the Company also had $2.0 million of in-process research and development asset acquired as part of the Company’s acquisition of Transpire, Inc. See Note 15 “Business Combinations” for additional information. Amortization expense for intangible assets was $4.8 million, $4.3 million and $4.9 million for fiscal years 2014, 2013 and 2012, respectively. The Company estimates that the amortization expense for fiscal years 2015 through 2019, and thereafter, will be as follows (in millions): $8.7, $8.1, $5.2, $5.0, $5.0, and $6.9, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Sep. 26, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
6. RELATED PARTY TRANSACTIONS | |
Dpix Holding | |
VMS has a 40% ownership interest in dpiX Holding, a two-member consortium which has a 100% ownership interest in dpiX LLC (“dpiX”), a supplier of amorphous silicon based thin film transistor arrays (“flat panels”) for the Company’s Imaging Components’ digital image detectors and for its Oncology Systems’ On-Board Imager® and PortalVisionTM imaging products. In accordance with the dpiX Holding agreement, net profits or losses are allocated to the members, in accordance with their ownership interests. | |
The equity investment in dpiX Holding is accounted for under the equity method of accounting. When VMS recognizes its share of net profits or losses of dpiX Holding, profits or losses in inventory purchased from dpiX are eliminated until realized by VMS. VMS recorded a loss on the equity investment in dpiX Holding of $0.8 million in fiscal year 2014 and recorded income on the equity investment in dpiX Holding of $2.5 million and $0.2 million in fiscal years 2013 and 2012, respectively. Income and loss on the equity investment in dpiX Holding is included in selling, general and administrative expenses in the Consolidated Statements of Earnings. The carrying value of the equity investment in dpiX Holding, which was included in other assets in the Consolidated Balance Sheets, was $49.7 million at both September 26, 2014 and September 27, 2013. | |
During fiscal years 2014, 2013 and 2012, the Company purchased glass transistor arrays from dpiX totaling $20.9 million, $25.9 million and $14.5 million, respectively. These purchases of glass transistor arrays are included as a component of inventories in the Consolidated Balance Sheets or cost of revenues – product in the Consolidated Statements of Earnings for these fiscal years. | |
In October 2013, VMS entered into an amended agreement with dpiX and other parties that, among other things, provides the Company with the right to 50% of dpiX’s total manufacturing capacity produced after January 1, 2014. The amended agreement requires the Company to pay for 50% of the fixed costs (as defined in the amended agreement), as determined at the beginning of each calendar year. As of September 26, 2014, the Company estimated it has fixed cost commitments of $4.3 million related to this amended agreement for the first quarter of fiscal year 2015. The fixed cost commitment for future periods will be determined and approved by the dpiX board of directors at the beginning of each calendar year. The amended agreement will continue unless the ownership structure of dpiX changes (as defined in the amended agreement). | |
The Company has determined that dpiX is a variable interest entity because at-risk equity holders, as a group, lack the characteristics of a controlling financial interest. Majority votes are required to direct the manufacturing activities, legal operations and other activities that most significantly affect dpiX’s economic performance. The Company does not have majority voting rights and no power to direct the activities of dpiX and therefore is not the primary beneficiary of dpiX. |
Borrowings
Borrowings | 12 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Borrowings | ' | |||||||
7. BORROWINGS | ||||||||
On August 27, 2013, VMS entered into a Credit Agreement (as amended to date) with certain lenders and Bank of America, N.A. (“BofA”) as administrative agent. The Credit Agreement provides for (i) a five-year term loan facility in an aggregate principal amount of up to $500 million (the “2013 Term Loan Facility”) and (ii) a five-year revolving credit facility in an aggregate principal amount of up to $300 million (the “2013 Revolving Credit Facility” and, collectively with the 2013 Term Loan Facility, the “2013 Credit Facility”). The 2013 Revolving Credit Facility also includes a $50 million sub-facility for the issuance of letters of credit and permits swing line loans of up to $25 million. Under the Credit Agreement, the Company has the right to make (i) up to two requests to increase the aggregate commitments under the 2013 Term Loan Facility by an aggregate amount for all such requests of up to $100 million and (ii) up to three requests to increase the aggregate commitments under the 2013 Revolving Credit Facility by an aggregate amount for all such requests of up to $200 million, provided that, in each case, the Lenders are willing to provide such new or increased commitments and certain other conditions are met. The 2013 Credit Facility contains provisions that limit the Company’s ability to pay cash dividends. The proceeds of the 2013 Credit Facility will be used for working capital, capital expenditures, permitted Company share repurchases, permitted acquisitions and other lawful corporate purposes. | ||||||||
Borrowings under the 2013 Term Loan Facility accrue interest either (i) based on a Eurodollar Rate, as defined in the Credit Agreement (the “Eurodollar Rate”), plus a margin of 1.00% to 1.25% based on a leverage ratio involving funded indebtedness and EBITDA, or (ii) based upon a base rate of (a) the federal funds rate plus 0.50%, (b) BofA’s announced prime rate, or (c) the Eurodollar Rate plus 1.00%, whichever is highest, plus a margin of up to 0.25% based on the same leverage ratio, depending upon instructions from the Company. Borrowings under the 2013 Revolving Credit Facility accrue interest either (i) based on the Eurodollar Rate plus a margin of 1.25% to 1.50% based on a leverage ratio involving funded indebtedness and EBITDA, or (ii) based upon a base rate of (a) the federal funds rate plus 0.50%, (b) BofA’s announced prime rate, or (c) the Eurodollar Rate plus 1.00%, whichever is highest, plus a margin of 0.25% to 0.50% based on the same leverage ratio, depending upon instructions from the Company. At September 26, 2014, the borrowings under the 2013 Term Loan Facility totaled $437.5 million with a weighted average interest rate of 1.28%. At September 27, 2013, borrowings under the 2013 Term Loan Facility totaled $500 million with a weighted average interest rate of 1.31%. At September 26, 2014 and September 27, 2013, there were no amounts outstanding on the 2013 Revolving Credit Facility. | ||||||||
The Company must pay a commitment fee on the unused portion of the 2013 Revolving Credit Facility at a rate from 0.15% to 0.275% based on a leverage ratio. The Company may prepay, reduce or terminate the commitments without penalty. Swing line loans under the 2013 Credit Facility will bear interest at the base rate plus the then applicable margin for base rate loans. | ||||||||
Subject to certain limitations on the amount secured, a pledge of stock issued by certain present and future subsidiaries of VMS, that are deemed to be material under the terms of the 2013 Credit Facility, serve as security for the 2013 Credit Facility. These stock pledges also serve as security for all hedging or treasury management obligations entered into by the Company with a Lender. As of September 26, 2014, VMS had pledged 65% of the voting shares that it holds in Varian Medical Systems Nederland Holdings B.V., a wholly owned subsidiary. The Credit Agreement provides that certain material domestic subsidiaries must guarantee the 2013 Credit Facility, subject to certain limitations on the amount secured. As of September 26, 2014, the 2013 Credit Facility was not guaranteed by any VMS subsidiary. | ||||||||
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 has also agreed to maintain certain financial covenants including (i) a maximum consolidated leverage ratio, involving funded indebtedness and EBITDA (earnings before interest, tax and depreciation and amortization), and (ii) a minimum cash flow coverage ratio. The Company was in compliance with all covenants under the Credit Agreement for all periods within these consolidated financial statements in which it was in existence. | ||||||||
Prior to the 2013 Credit Facility, VMS had a credit agreement entered into as of April 27, 2012 (the “2012 Credit Facility”) with certain lenders and BofA as administrative agent which provided for a revolving credit facility that enabled the Company to borrow and have outstanding at any given time a maximum of $300 million. On August 27, 2013, VMS replaced the 2012 Credit Facility with the 2013 Revolving Credit Facility, terminating the 2012 Credit Facility and repaying in full the approximately $148.0 million then-outstanding principal balance, plus accrued interest and fees. | ||||||||
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 billion Japanese yen (the “Sumitomo Credit Facility”). In March 2014, the Sumitomo Credit Facility was extended and will expire in March 2015. 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% per annum. VMS KK borrowed $29.5 million against the Sumitomo Credit Facility in the second fiscal quarter of 2014 and repaid the entire balance in the third fiscal quarter of 2014. As of September 26, 2014 and September 27, 2013, there were no outstanding balances under the Sumitomo Credit Facility. | ||||||||
The Company paid commitment fees of $0.6 million, $0.3 million, and $0.3 million in fiscal years 2014, 2013 and 2012, respectively, related to its borrowings. | ||||||||
Long-term debt outstanding is summarized as follows: | ||||||||
(In millions) | September 26, | September 27, | ||||||
2014 | 2013 | |||||||
Unsecured term loan, fixed interest rate 6.70% due in one installment and payable in fiscal year 2014 | $ | - | $ | 6.3 | ||||
2013 Term Loan Facility, variable interest rate (1.28% and 1.31% at September 26, 2014 and September 27, 2013, respectively) payable quarterly in installments with maturity date in fiscal year 2018 | 437.5 | 500 | ||||||
437.5 | 506.3 | |||||||
Less: current maturities of long-term debt | (50.0 | ) | (56.3 | ) | ||||
Long-term debt | $ | 387.5 | $ | 450 | ||||
In April 2014, the Company paid the outstanding balance of $6.3 million for the principal amount and accrued interest of its unsecured term loan. | ||||||||
Interest paid on borrowings was $7.0 million, $2.9 million and $3.3 million for fiscal year 2014, 2013, and 2012, respectively. As of September 26, 2014, future principal payments for long-term debt for fiscal years 2015, 2016, 2017, and 2018 are as follows (in millions): $50.0, $50.0, $50.0, and $287.5, respectively. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | |||||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | |||||||||||||||||||||||||
8. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||||||||||||
The Company measures all derivatives at fair value on the 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 values of derivative instruments reported on the Company’s Consolidated Balance Sheets were as follows: | ||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
26-Sep-14 | 27-Sep-13 | 26-Sep-14 | 27-Sep-13 | |||||||||||||||||||||||
(In millions) | Balance Sheet Location | Fair Value | Fair Value | Balance Sheet Location | Fair Value | Fair Value | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | $ | 1.5 | $ | - | Accrued liabilities | $ | - | $ | 1.1 | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | - | - | Accrued liabilities | - | - | ||||||||||||||||||||
Total derivatives | $ | 1.5 | $ | - | $ | - | $ | 1.1 | ||||||||||||||||||
See Note 3, “Fair Value” to the Consolidated Financial Statements regarding valuation of the Company’s derivative instruments. Also see Note 1, “Summary of Significant Accounting Policies” to the Consolidated Financial Statements regarding credit risk associated with the Company’s derivative instruments. | ||||||||||||||||||||||||||
Offsetting of Derivatives | ||||||||||||||||||||||||||
The Company presents its derivative assets and derivative liabilities on a gross basis in the Consolidated Balance Sheets. However, under agreements containing provisions on netting with certain counterparties of foreign exchange contracts, subject to applicable requirements, the Company is allowed to net-settle transactions on the same date in the same currency, with a single net amount payable by one party to the other. As of September 26, 2014 and September 27, 2013, there were no potential effects of rights of setoff associated with derivative instruments. The Company is neither required to pledge nor entitled to receive cash collateral related to these derivative transactions. | ||||||||||||||||||||||||||
Cash Flow Hedging Activities | ||||||||||||||||||||||||||
The Company has many transactions denominated in foreign currencies and addresses certain of those financial exposures through a risk management program that includes the use of derivative financial instruments. The Company sells products throughout the world, often in the currency of the customer’s country, and may hedge certain of the larger foreign currency transactions when they are either not denominated in the relevant subsidiary’s functional currency or the U.S. dollar. These foreign currency sales transactions are hedged using foreign currency forward contracts. The Company may use other derivative instruments in the future. The Company does not enter into foreign currency forward contracts for speculative or trading purposes. Foreign currency forward contracts are entered into several times a quarter and range from one to thirteen months in maturity. | ||||||||||||||||||||||||||
The hedges of foreign currency denominated forecasted revenues are designated and accounted for as cash flow hedges. The designated cash flow hedges de-designate when the anticipated revenues associated with the transactions are recognized and the effective portion in accumulated other comprehensive loss in the Consolidated Balance Sheets is reclassified to revenues in the Consolidated Statements of Earnings. Subsequent changes in fair value of the derivative instrument are recorded in selling, general and administrative expenses in the Consolidated Statements of Earnings to offset changes in fair value of the resulting non-functional currency receivables. For derivative instruments that are designated and qualified as cash flow hedges, the Company formally documents for each derivative instrument at the hedge’s inception, the relationship between the hedging instrument (foreign currency forward contract) and hedged item (forecasted foreign currency revenues), the nature of the risk being hedged and its risk management objective and strategy for undertaking the hedge. The Company records the effective portion of the gain or loss on the derivative instruments that are designated and qualified as cash flow hedges in accumulated other comprehensive loss in the Consolidated Balance Sheets and reclassifies these amounts into revenues in the Consolidated Statements of Earnings in the period in which the hedged transaction is recognized in earnings. The Company assesses hedge effectiveness both at the onset of the hedge and on an ongoing basis using regression analysis. The Company measures hedge ineffectiveness by comparing the cumulative change in the fair value of the effective component of the hedge contract with the cumulative change in the fair value of the hedged item. The Company recognizes any over performance of the derivative as ineffectiveness in revenues, and time value amounts excluded from the assessment of effectiveness in cost of revenues in the Consolidated Statements of Earnings. During fiscal years 2014, 2013 and 2012, the Company did not discontinue any cash flow hedge. At the inception of the hedge relationship and quarterly thereafter, the Company assesses whether the likelihood of meeting the forecasted cash flow is highly probable. As of September 26, 2014, all forecasted cash flows were still probable to occur. As of September 26, 2014, net unrealized gain on derivative instruments before tax, of $1.5 million, was included in accumulated other comprehensive loss in the Consolidated Balance Sheets and is expected to be reclassified to earnings over the 12 months that follow. | ||||||||||||||||||||||||||
The Company had the following outstanding foreign currency forward contracts that were entered into to hedge forecasted revenues and designated as cash flow hedges: | ||||||||||||||||||||||||||
September 26, | ||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||
(In millions) | Notional Value Sold | |||||||||||||||||||||||||
Euro | $ | 26.9 | ||||||||||||||||||||||||
The following table presents the amounts, before tax, recognized in accumulated other comprehensive loss in the Consolidated Balance Sheets and in the Consolidated Statements of Earnings that are related to the effective portion of the foreign currency forward contracts designated as cash flow hedges: | ||||||||||||||||||||||||||
Gain Reclassified from Accumulated Other | ||||||||||||||||||||||||||
Gain Recognized in Other Comprehensive Income | Location of Gain | Comprehensive Income into Net Earnings | ||||||||||||||||||||||||
(Effective Portion) | Reclassified from Accumulated | (Effective Portion) | ||||||||||||||||||||||||
Fiscal Years | Other Comprehensive Income | Fiscal Years | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | into Net Earnings (Effective Portion) | 2014 | 2013 | 2012 | |||||||||||||||||||
Foreign currency forward contracts | $ | 3.9 | $ | 0.5 | $ | 1.4 | Revenues | $ | 1.3 | $ | 2.5 | $ | 0.6 | |||||||||||||
The portion of cash flow hedges gain or loss excluded from the assessment of effectiveness and the ineffective portion of the cash flow hedges were not material in fiscal years 2014, 2013 and 2012. | ||||||||||||||||||||||||||
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. The Company enters into foreign currency forward contracts to minimize the short-term impact of foreign currency fluctuations on monetary assets and liabilities denominated in currencies other than the U.S. dollar functional currency. The foreign currency forward contracts are short term in nature, typically with a maturity of approximately one month, and are based on the net forecasted balance sheet exposure. For derivative instruments not designated as hedging instruments, changes in their fair values are recognized in selling, general and administrative expenses in the 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. Variations from the forecasted foreign currency assets or liabilities, coupled with a significant currency rate movement, may result in a material gain or loss if the hedges are not effectively offsetting the change in value of the foreign currency asset or liability. Other than foreign exchange hedging activities, the Company has no other free-standing or embedded derivative instruments. | ||||||||||||||||||||||||||
The Company had the following outstanding foreign currency forward contracts: | ||||||||||||||||||||||||||
26-Sep-14 | ||||||||||||||||||||||||||
(In millions) | Notional Value Sold | Notional | ||||||||||||||||||||||||
Value Purchased | ||||||||||||||||||||||||||
Australian dollar | $ | 20.1 | $ | - | ||||||||||||||||||||||
Canadian dollar | - | 9.6 | ||||||||||||||||||||||||
Danish krone | 4.3 | - | ||||||||||||||||||||||||
Euro | 156.1 | - | ||||||||||||||||||||||||
Hungarian forint | 0.8 | - | ||||||||||||||||||||||||
Indian rupee | 2.9 | - | ||||||||||||||||||||||||
Japanese yen | 53.6 | - | ||||||||||||||||||||||||
Norwegian krone | 2.8 | - | ||||||||||||||||||||||||
Swedish krona | 8 | - | ||||||||||||||||||||||||
Swiss franc | - | 75.2 | ||||||||||||||||||||||||
Totals | $ | 248.6 | $ | 84.8 | ||||||||||||||||||||||
The following table presents the gains recognized in the Consolidated Statements of Earnings related to the foreign currency forward contracts that are not designated as hedging instruments. | ||||||||||||||||||||||||||
Location of Gain Recognized in Income on Derivative | Amount of Gain Recognized | |||||||||||||||||||||||||
in Net Earnings on Derivative | ||||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Selling, general and administrative expenses | $ | 13.7 | $ | 9.6 | $ | 5 | ||||||||||||||||||||
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. | ||||||||||||||||||||||||||
Contingent Features | ||||||||||||||||||||||||||
Certain of the Company’s derivative instruments are subject to master agreements which contain provisions that require the Company, in the event of a default, to settle the outstanding contracts in net liability positions by making settlement payments in cash or by setting off amounts owed to the counterparty against any credit support or collateral held by the counterparty. As of September 26, 2014 and September 27, 2013, the Company did not have a significant amount of outstanding derivative instruments with credit-risk-related contingent features that were in a net liability position. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments and Contingencies | ' | |||||||||||
9. COMMITMENTS AND CONTINGENCIES | ||||||||||||
Indemnification Agreements | ||||||||||||
In conjunction with the sale of the Company’s products in the ordinary course of business, the Company provides standard indemnification of business partners and customers for losses suffered or incurred for property damages, death and injury and for patent, copyright or any other intellectual property infringement claims by any third parties with respect to its products. The terms of these indemnification arrangements are generally perpetual. Except for losses related to property damages, the maximum potential amount of future payments the Company could be required to make under these arrangements is unlimited. As of September 26, 2014, the Company had not incurred any significant costs since the Spin-offs to defend lawsuits or settle claims related to these indemnification arrangements. As a result, the Company believes the estimated fair value of these arrangements is minimal. | ||||||||||||
VMS has entered into indemnification agreements with its directors and officers and certain of its employees that serve as officers or directors of its foreign subsidiaries that may require VMS to indemnify its directors and officers and those certain employees against liabilities that may arise by reason of their status or service as directors or officers, and to advance their expenses incurred as a result of any legal proceeding against them as to which they could be indemnified. | ||||||||||||
Product Warranty | ||||||||||||
The following table reflects the changes in the Company’s accrued product warranty: | ||||||||||||
Fiscal Years | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Accrued product warranty, at beginning of period | $ | 53.2 | $ | 52.8 | ||||||||
Charged to cost of revenues | 51.9 | 57.7 | ||||||||||
Actual product warranty expenditures | (55.8 | ) | (57.3 | ) | ||||||||
Accrued product warranty, at end of period | $ | 49.3 | $ | 53.2 | ||||||||
Long-term accrued product warranty costs of $2.0 million and $14.1 million are included under other long-term liabilities on the Consolidated Balance Sheets as of September 26, 2014 and September 27, 2013, respectively. | ||||||||||||
Lease Commitments | ||||||||||||
At September 26, 2014, the Company was committed to minimum rentals under non-cancelable operating leases (including rent escalation clauses) for fiscal years 2015, 2016, 2017, 2018, 2019 and thereafter, as follows (in millions): $20.5, $16.4, $12.5, $8.1, $5.6 and $10.0, respectively. Rental expenses for fiscal years 2014, 2013 and 2012 (in millions) were $28.7, $26.0 and $24.9, respectively. | ||||||||||||
Other Commitments | ||||||||||||
As of September 26, 2014, the Company’s outstanding commitment under the CPTC Loans was $4.7 million. See Note 16, “CPTC Loans” for additional information. | ||||||||||||
In April 2012, VMS entered into a strategic global partnership with Siemens AG (“Siemens”) through which, among other things, the Company and Siemens are working on developing interfaces to enable the Company’s ARIA® oncology information system software to connect with Siemens linear accelerators and imaging systems. Under the agreement establishing this collaboration, the Company committed to make certain payments, including up to $10.0 million in fixed fees and $20.0 million in license fees, in the event certain product development milestones are achieved. As of September 26, 2014, the outstanding fixed fees and license fees commitment for the Siemens agreement was $6.0 million and $18.9 million, respectively. | ||||||||||||
As of September 26, 2014, the Company had an estimated fixed cost commitment of $4.3 million related to dpiX’s amended agreement, for the first quarter of fiscal year 2015. The fixed cost commitment for future years will be determined and approved by the dpiX board of directors at the beginning of each calendar year. See Note 6 “Related Party Transactions” for additional information. | ||||||||||||
In connection with the acquisition of businesses in current and prior years, the Company entered into agreements which included provisions to make additional consideration payments upon the achievement of certain milestones by the acquired businesses. As of September 26, 2014, the accrual for potential contingent considerations under these agreements was $7.5 million. The contingent consideration liabilities were measured at fair value as of September 26, 2014. See Note 3, “Fair Value” for additional information. | ||||||||||||
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 under certain circumstances. In connection with those laws and certain of the Company’s past and present operations and facilities, the Company oversees various environmental cleanup projects and also reimburses certain third parties for cleanup activities. Those include facilities sold as part of the Company’s electron devices business in 1995 and thin film systems business in 1997. In addition, the U.S. Environmental Protection Agency (“EPA”) or third parties have named the Company as a potentially responsible party under the amended Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERCLA”), at sites to which the Company or the facilities of the sold businesses were alleged to have shipped waste for recycling or disposal (the “CERCLA sites”). In connection with the CERCLA sites, the Company to date has been required to pay only a small portion of the total amount as its contributions to cleanup efforts. Under the agreement that governs the Spin-offs, VI and VSEA are each obligated to indemnify the Company for one-third of the environmental cleanup costs associated with corporate, discontinued or sold operations prior to the Spin-offs (after adjusting for any insurance proceeds or tax benefits received by the Company), as well as fully indemnify the Company for other liabilities arising from the operations of the business transferred to it as part of the Spin-offs. | ||||||||||||
The Company spent $1.2 million, $1.0 million and $1.6 million (net of amounts borne by VI and VSEA) during fiscal years 2014, 2013 and 2012, respectively, on environmental cleanup costs, third-party claim costs, project management costs and legal costs. | ||||||||||||
Inherent uncertainties make it difficult to estimate the likelihood of the cost of future cleanup, third-party claims, project management and legal services for the CERCLA sites and one of the Company’s past facilities. Nonetheless, as of September 26, 2014, the Company estimated that, net of VI’s and VSEA’s indemnification obligations, future costs associated with the CERCLA sites and this facility would range in total from $1.7 million to $9.9 million. The time frames over which these cleanup project costs are estimated vary, ranging from one year up to thirty years as of September 26, 2014. Management believes that no amount in that range is more probable of being incurred than any other amount and therefore had accrued $1.7 million for these cleanup projects as of September 26, 2014. The accrued amount has not been discounted to present value due to the uncertainties that make it difficult to develop a single best estimate. | ||||||||||||
The Company believes it has gained sufficient knowledge to better estimate the scope and cost of monitoring, cleanup and management activities for its other past and present facilities. This, in part, is based on agreements with other parties and also cleanup plans approved by or completed in accordance with the requirements of the governmental agencies having jurisdiction. As of September 26, 2014, the Company estimated that the Company’s future exposure, net of VI’s and VSEA’s indemnification obligations, for the costs at these facilities, and reimbursements of third-party’s claims for these facilities, ranged in total from $5.9 million to $36.3 million. The time frames over which these costs are estimated to be incurred vary, ranging from one to thirty years as of September 26, 2014. As to each of these facilities, management determined that a particular amount within the range of estimated costs was a better estimate than any other amount within the range, and that the amount and timing of these future costs were reliably determinable. The best estimate within that range was $10.0 million at September 26, 2014. Accordingly, the Company had accrued $8.1 million for these costs as of September 26, 2014, which represented the best estimate discounted at 4%, net of inflation. This accrual is in addition to the $1.7 million described in the preceding paragraph. | ||||||||||||
The table that follows presents information about the Company’s liabilities for future environmental costs at September 26, 2014, based on estimates as of that date. | ||||||||||||
(In millions) | Recurring | Non-Recurring | Total | |||||||||
Costs | Costs | Anticipated | ||||||||||
Future Costs | ||||||||||||
Fiscal Years: | ||||||||||||
2015 | $ | 0.7 | $ | 1.6 | $ | 2.3 | ||||||
2016 | 0.6 | 0.5 | 1.1 | |||||||||
2017 | 0.5 | 0.5 | 1 | |||||||||
2018 | 0.6 | 0.2 | 0.8 | |||||||||
2019 | 0.7 | 0.6 | 1.3 | |||||||||
Thereafter | 5.2 | 1.4 | 6.6 | |||||||||
Total costs | $ | 8.3 | $ | 4.8 | 13.1 | |||||||
Less imputed interest | 3.3 | |||||||||||
Reserve amount | $ | 9.8 | ||||||||||
Recurring costs include expenses for such tasks as the ongoing operation, maintenance and monitoring of cleanup. Non-recurring costs include expenses for such tasks as soil excavation and treatment, installation of injection and monitoring wells, other costs for soil and groundwater treatment by injection, construction of ground and surface water treatment systems, soil and groundwater investigation, governmental agency costs required to be reimbursed by the Company, removal and closure of treatment systems and monitoring wells, and the defense and settlement of pending and anticipated third-party claims. | ||||||||||||
These amounts are only estimates of anticipated future costs. The amounts the Company will actually spend may be greater or less than these estimates, even as the Company believes the degree of uncertainty will narrow as cleanup activities progress. While the Company believes its reserve is adequate, 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. Nevertheless, based on information currently known to management, and assuming VI and VSEA satisfy their indemnification obligations, 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 evaluates its liability for investigation and cleanup costs in light of the obligations and apparent financial strength of potentially responsible parties and insurance companies with respect to which the Company believes it has rights to indemnity or reimbursement. The Company has asserted claims for recovery of environmental investigation and cleanup costs already incurred, and to be incurred in the future against various insurance companies and other third parties. The Company receives certain cash payments in the form of settlements and judgments from defendants, insurers and other third parties from time to time. The Company has also reached an agreement with an insurance company under which that insurer has agreed to pay a portion of the Company’s past and future environmental related expenditures. Receivables from that insurer amounted to $2.2 million at September 26, 2014 and $2.4 million at September 27, 2013, with the respective current portion included in prepaid expenses and other current assets and the respective noncurrent portion included in other assets in the Consolidated Balance Sheets. The Company believes that this receivable is recoverable because it is based on a binding, written settlement agreement with what appears to be a financially viable insurance company, and the insurance company has paid the Company’s claims in the past. | ||||||||||||
The availability of the indemnities of VI and VSEA will depend upon the future financial strength of VI and VSEA. Given the long-term nature of some of the liabilities, VI and VSEA may be unable to fund the indemnities in the future. It is also possible that a court would disregard this contractual allocation among the parties and require the Company to assume responsibility for obligations allocated to another party, particularly if the other party were to refuse or was unable to pay any of its allocated share. The agreement governing the Spin-offs generally provides that if a court prohibits a company from satisfying its shared indemnification obligations, the indemnification obligations will be shared equally by the two other companies. | ||||||||||||
Other Matters | ||||||||||||
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. These matters included a patent infringement lawsuit initiated on April 13, 2007 by the University of Pittsburgh of the Commonwealth System of Higher Education (the “University of Pittsburgh”) regarding the Company’s Real-time Position Management™ (“RPM”) technology. The lawsuit was dismissed and re-filed on June 16, 2008 in the Northern District of California. The case was subsequently transferred to the United States District Court for the Western District of Pennsylvania (“trial court”). On or about December 21, 2011, the trial court entered a summary judgment order in the case finding that the Company’s RPM technology was covered by some of the claims of the subject patent. Subsequently, in early 2012, in the proceedings at the trial court on the remaining issues in litigation, it was found (i) that the Company willfully infringed the subject patent, (ii) that the Company was liable for approximately $40 million in actual damages and (iii) that the subject patent was valid. The trial court had ordered the Company to pay a total of approximately $102 million, comprised of approximately $80 million in enhanced damages (a doubling of the damages amount), pre-judgment interest to the damage award of approximately $13 million and approximately $9 million in attorneys’ fees. The trial court also ordered the Company to pay ongoing royalties at the rates found by the jury for sales after the date of judgment. The Company appealed the findings against it. In January 2014, the Company entered into a settlement agreement with the University of Pittsburgh that was dependent upon the appellate ruling. In April 2014, the appellate court issued an opinion affirming the trial court judgment in part and reversing it in part. Based on the opinion and the terms of the settlement agreement, the Company paid $35.6 million in full settlement of the lawsuit to the University of Pittsburgh in the third fiscal quarter of 2014. Prior to the beginning of the second quarter of fiscal year 2014, the Company had accrued in aggregate approximately $5 million for the low end of the range of the probable settlement value for this matter. In the second quarter of fiscal year 2014, the Company accrued an additional $25.1 million of the $35.6 million for all damages and interest related to the case, and in the third quarter of fiscal year 2014 recorded the remaining amount of approximately $5.5 million for future royalties as prepaid royalties. The amount of prepaid royalties is being amortized over the remaining life of the patent of approximately two and a half years. | ||||||||||||
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). However, such matters are subject to many uncertainties and outcomes are not predictable with assurance. The Company is unable to estimate a range of reasonably possible losses with respect to these 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. | ||||||||||||
Restructuring Charges | ||||||||||||
As part of the Company’s plan to enhance operational performance through productivity initiatives, the Company offered an enhanced retirement program to its qualifying employees across all reporting segments during the fourth quarter of fiscal year 2014. The program required the participating employees to submit their applications by October 10, 2014, and as a result, the restructuring charges relating to this program will be incurred in fiscal year 2015. | ||||||||||||
In a similar program offered in fiscal year 2013, approximately 85 employees accepted the program, and the Company incurred restructuring charges of $6.7 million during fiscal year 2013. |
Retirement_Plans
Retirement Plans | 12 Months Ended | |||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||
10. RETIREMENT PLANS | ||||||||||||||||||||||||
The Company sponsors the Varian Medical Systems, Inc. Retirement Plan (the “Retirement Plan”) — a defined contribution plan that is available to substantially all of its employees in the United States. Under Section 401(k) of the Internal Revenue Code, the Retirement Plan allows for tax-deferred salary contributions by eligible employees. | ||||||||||||||||||||||||
Participants can contribute from 1% to 25% of their eligible base compensation to the Retirement Plan on a pre-tax basis (plus up to an additional 15% on an after-tax basis if they have more than one year of service with the Company) and all or a portion of their bonuses under the Employee Incentive Plan. However, participant contributions are limited to a maximum annual amount as determined periodically by the Internal Revenue Service. The Company matches eligible participant contributions dollar for dollar for the first 6% of eligible base compensation or bonus (for those employees with one or more years of service with the Company). All matching contributions vest immediately. The Retirement Plan allows participants to invest up to 25% of their contributions in shares of VMS common stock as an investment option. This feature will be eliminated as of January 1, 2015. The Company also has a defined contribution plan that is available to regular full-time employees in the United Kingdom (the “U.K. Savings Plan”). Participants can contribute from 4% to 100% of their eligible base compensation to the U.K. Savings Plan. The Company matches participant contributions up to 6% of participants’ eligible base compensation, based on the participants’ level of contributions under this U.K. Savings Plan. All matching contributions vest immediately. | ||||||||||||||||||||||||
The Company also sponsors five defined benefit pension plans for regular full time employees in Germany, Japan, 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 Company recognizes the funded status of its defined benefit pension and post-retirement benefit plans on its Consolidated Balance Sheets. Each overfunded plan is recognized as an asset, and each underfunded plan is recognized as a liability. Unrecognized prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status are recognized as a component of accumulated other comprehensive loss within Stockholders’ equity. | ||||||||||||||||||||||||
Total retirement, post-retirement benefit plan and defined benefit plan expense for all retirement plans amounted to $28.6 million, $29.0 million and $27.9 million for fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||
The following table presents the funded status of the defined benefit pension and post-retirement benefit plans: | ||||||||||||||||||||||||
Defined Benefit Plans | Post-Retirement Benefit Plan | |||||||||||||||||||||||
(In millions) | September 26, 2014 | September 27, 2013 | September 26, 2014 | September 27, 2013 | ||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation - beginning of fiscal year | $ | 195.7 | $ | 181.1 | $ | 4.8 | $ | 5.6 | ||||||||||||||||
Service cost | 4.1 | 4.8 | - | - | ||||||||||||||||||||
Interest cost | 6.1 | 5.2 | 0.2 | 0.2 | ||||||||||||||||||||
Plan participants’ contributions | 7.8 | 10.9 | - | - | ||||||||||||||||||||
Plan amendment | - | 0.5 | (3.3 | ) | - | |||||||||||||||||||
Plan settlement | (7.8 | ) | (4.7 | ) | - | - | ||||||||||||||||||
Actuarial (gain) loss | 14.2 | (0.7 | ) | 0.2 | (0.5 | ) | ||||||||||||||||||
Foreign currency changes | (7.7 | ) | 3.2 | - | - | |||||||||||||||||||
Benefit and expense payments | (4.8 | ) | (4.6 | ) | (0.5 | ) | (0.5 | ) | ||||||||||||||||
Benefit obligation - end of fiscal year | $ | 207.6 | $ | 195.7 | $ | 1.4 | $ | 4.8 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Plan assets - beginning of fiscal year | $ | 180.8 | $ | 142.6 | $ | - | $ | - | ||||||||||||||||
Employer contributions | 7.2 | 22.2 | 0.5 | 0.5 | ||||||||||||||||||||
Actual return on plan assets | 11.8 | 11.6 | - | - | ||||||||||||||||||||
Plan participants’ contributions | 7.8 | 10.9 | - | - | ||||||||||||||||||||
Plan settlement | (7.8 | ) | (4.7 | ) | - | - | ||||||||||||||||||
Foreign currency changes | (6.4 | ) | 2.8 | - | - | |||||||||||||||||||
Benefit and expense payments | (4.8 | ) | (4.6 | ) | (0.5 | ) | (0.5 | ) | ||||||||||||||||
Plan assets - end of fiscal year | $ | 188.6 | $ | 180.8 | $ | - | $ | - | ||||||||||||||||
Funded status | $ | (19.0 | ) | $ | (14.9 | ) | $ | (1.4 | ) | $ | (4.8 | ) | ||||||||||||
Amounts recognized within the consolidated balance sheet: | ||||||||||||||||||||||||
Long-term assets | $ | 5.3 | $ | 3.1 | $ | - | $ | - | ||||||||||||||||
Current liabilities | - | - | (0.3 | ) | (0.5 | ) | ||||||||||||||||||
Long-term liabilities | (24.3 | ) | (18.0 | ) | (1.1 | ) | (4.3 | ) | ||||||||||||||||
Net amount recognized | $ | (19.0 | ) | $ | (14.9 | ) | $ | (1.4 | ) | $ | (4.8 | ) | ||||||||||||
The following table presents the amounts recognized in accumulated other comprehensive loss (before tax): | ||||||||||||||||||||||||
Defined Benefit Plans | Post-Retirement Benefit Plan | |||||||||||||||||||||||
(In millions) | September 26, 2014 | September 27, 2013 | September 26, 2014 | September 27, 2013 | ||||||||||||||||||||
Prior service credit (cost) | $ | (0.6 | ) | $ | (0.7 | ) | $ | 3.3 | $ | - | ||||||||||||||
Net gain (loss) | (55.7 | ) | (49.4 | ) | (0.2 | ) | 0.1 | |||||||||||||||||
Accumulated other comprehensive gain (loss) | $ | (56.3 | ) | $ | (50.1 | ) | $ | 3.1 | $ | 0.1 | ||||||||||||||
The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those defined benefit pension plans where accumulated benefit obligation exceeded the fair value of plan assets: | ||||||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||||||
(In millions) | September 26, 2014 | September 27, 2013 | ||||||||||||||||||||||
Projected benefit obligation | $ | 16.9 | $ | - | ||||||||||||||||||||
Accumulated benefit obligation | $ | 15.8 | $ | - | ||||||||||||||||||||
Fair value of plan assets | $ | 14.7 | $ | - | ||||||||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $172.7 million and $167.3 million at September 26, 2014 and September 27, 2013, respectively. | ||||||||||||||||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive (Income) Loss | ||||||||||||||||||||||||
The following table shows the components of the Company’s net periodic benefit costs and the other amounts recognized in other comprehensive (income) loss, before tax, related to the Company’s defined benefit pension plans and the Company’s post-retirement benefit plan: | ||||||||||||||||||||||||
Defined Benefit Plans | Post-Retirement Benefit Plan | |||||||||||||||||||||||
Fiscal Years | Fiscal Years | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Net Periodic Benefit Costs: | ||||||||||||||||||||||||
Service cost | $ | 4.1 | $ | 4.8 | $ | 4.3 | $ | - | $ | - | $ | - | ||||||||||||
Interest cost | 6.1 | 5.2 | 5.3 | 0.2 | 0.2 | 0.2 | ||||||||||||||||||
Loss due to settlement or curtailment | 1.8 | 1 | 0.9 | - | - | - | ||||||||||||||||||
Expected return on assets | (7.8 | ) | (5.7 | ) | (5.3 | ) | - | - | - | |||||||||||||||
Amortization of prior service cost | 0.2 | 0.2 | 0.2 | - | - | - | ||||||||||||||||||
Recognized actuarial loss | 2.1 | 2.7 | 2.5 | - | - | 0.1 | ||||||||||||||||||
Net periodic benefit cost | 6.5 | 8.2 | 7.9 | 0.2 | 0.2 | 0.3 | ||||||||||||||||||
Other Amounts Recognized in Other Comprehensive (Income) Loss: | ||||||||||||||||||||||||
New prior service (credit) cost | - | 0.5 | - | (3.3 | ) | - | - | |||||||||||||||||
Net (gain) loss arising during the year | 10.3 | (6.6 | ) | 9.9 | 0.2 | (0.4 | ) | (0.1 | ) | |||||||||||||||
Amortization of prior service cost | (0.2 | ) | (0.2 | ) | (0.2 | ) | - | - | - | |||||||||||||||
Amortization, settlement and curtailment of net actuarial loss | (3.9 | ) | (3.7 | ) | (3.5 | ) | - | (0.1 | ) | (0.1 | ) | |||||||||||||
Total recognized in other comprehensive (income) loss | 6.2 | (10.0 | ) | 6.2 | (3.1 | ) | (0.5 | ) | (0.2 | ) | ||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 12.7 | $ | (1.8 | ) | $ | 14.1 | $ | (2.9 | ) | $ | (0.3 | ) | $ | 0.1 | |||||||||
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during fiscal year 2015 are as follows: | ||||||||||||||||||||||||
(In millions) | Defined Benefit Plans | Post-Retirement Benefit Plan | Total | |||||||||||||||||||||
Prior service credit (cost) | $ | (0.2 | ) | $ | 0.5 | $ | 0.3 | |||||||||||||||||
Net gain (loss) | (2.4 | ) | - | (2.4 | ) | |||||||||||||||||||
Total | $ | (2.6 | ) | $ | 0.5 | $ | (2.1 | ) | ||||||||||||||||
Assumptions | ||||||||||||||||||||||||
The assumptions used to determine net periodic benefit cost and to compute the expected long-term return on assets for the Company’s defined benefit pension and post-retirement benefit plans were as follows: | ||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||
Net Periodic Benefit Cost | 2014 | 2013 | 2012 | |||||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||||||
Discount rate | 3.11 | % | 2.94 | % | 3.38 | % | ||||||||||||||||||
Rate of compensation increase | 2.51 | % | 2.37 | % | 2.48 | % | ||||||||||||||||||
Expected long-term return on assets | 4.21 | % | 3.82 | % | 4.02 | % | ||||||||||||||||||
Post-retirement benefit plan: | ||||||||||||||||||||||||
Discount rate | 3.8 | % | 3 | % | 3.9 | % | ||||||||||||||||||
The assumptions used to measure the benefit obligations for the Company’s defined benefit pension and post-retirement benefit plans were as follows: | ||||||||||||||||||||||||
Benefit Obligation | 26-Sep-14 | 27-Sep-13 | ||||||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||||||
Discount rate | 2.77 | % | 3.11 | % | ||||||||||||||||||||
Rate of compensation increase | 2.45 | % | 2.51 | % | ||||||||||||||||||||
Post-retirement benefit plan: | ||||||||||||||||||||||||
Discount rate | 3.1 | % | 3.8 | % | ||||||||||||||||||||
The benefit obligations of defined benefit pension plans and post-retirement benefit plans were measured as of September 26, 2014. For defined benefit pension plans, the discount rate was adjusted as of September 26, 2014 to a range of 1.30% to 4.00%, primarily based on the current effective yield of long-term corporate bonds that are of high quality with satisfactory liquidity and credit rating with durations corresponding to the expected duration of the benefit obligations. Additionally, the rate of projected compensation increase was adjusted as of September 26, 2014 to a range of 1.75% to 3.70% reflecting expected inflation levels and the Company’s future outlook. For the post-retirement benefit plan, the discount rate as of September 26, 2014 decreased to 3.10%. This discount rate was determined based on the yields of high quality zero-coupon corporate bonds with maturities that match the expected durations of the benefit obligations. | ||||||||||||||||||||||||
During the fourth quarter of fiscal year 2014, the Company reviewed the expected long-term rate of return on defined benefit pension plan assets. This review consisted of forward-looking projections for a risk-free rate of return, inflation rate and implied equity risk premiums for particular asset classes. Historical returns were not used. The results of this review were applied to the target asset allocation in accordance with the Company’s planned investment strategies, which are implemented by outside investment managers. The expected long-term rate of return on plan assets was determined based on the weighted average of projected returns on each asset class. | ||||||||||||||||||||||||
The assumed healthcare cost trend rates for the post-retirement benefit plan are as follows: | ||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||
Assumed Health Care Trend Rates | 2014 | 2013 | 2012 | |||||||||||||||||||||
Post-retirement benefit plan: | ||||||||||||||||||||||||
Current medical cost trend rate | 8.2 | % | 8.2 | % | 9.9 | % | ||||||||||||||||||
Ultimate medical cost trend rate | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||
Current medical cost trend rates represent expected increases in healthcare costs in the short term and are based on assessments and surveys from health plan providers. While the current medical cost trend rate is based on market conditions, the ultimate trend rate, which is expected to be achieved in fiscal year 2031, reflects a long-term view of expected increases in healthcare costs in the U.S., which is assumed to be consistent with the long-term expected nominal gross domestic product growth rates. Assumed healthcare cost trend rates could have an effect on the amounts reported for healthcare plans. A 1.0 percentage point increase or decrease in the assumed healthcare cost trend rates would have an immaterial impact on the total service cost and interest cost components and post-retirement benefit obligation reported in fiscal year 2014. | ||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||
The Company contributes to post-retirement benefit plans on a cash basis as benefits are paid. No assets have been segregated and restricted to provide post-retirement benefits. | ||||||||||||||||||||||||
For the defined benefit pension plans, the investment objectives of the Company are to generate returns that will enable the defined benefit pension plans to meet their future obligations. The precise amount of these obligations depends on future events, including the life expectancies of the pension plans’ members and the level of salary increases. The obligations are estimated using actuarial assumptions, based on the current economic environment. The investment strategy depends on the country in which the defined benefit pension plan applies. The investment objectives of some defined benefit pension plans are more conservative than others. In general, the investment strategy of the defined benefit pension plans is to balance the requirement to generate return using higher-returning assets such as equity securities, with the need to control risk with less volatile assets, such as fixed-income securities. Risks include, among others, the likelihood of the defined benefit pension plans becoming underfunded, thereby increasing their dependence on contributions from the Company. Within each asset class, investment managers give consideration to balancing the portfolio among industry sectors, geographies, interest rate sensitivity, dependence on economic growth, currency and other factors that affect investment returns. The target allocation as of the end of fiscal year 2014 was 33% equities, 56% debt and fixed income assets and 11% other. | ||||||||||||||||||||||||
The following table presents the Company’s defined benefit pension plans’ major asset categories, their associated fair values, as well as the actual allocation of equity, debt and fixed income, real estate and all other types of investments: | ||||||||||||||||||||||||
(In millions) | Quoted Prices | Significant | Significant | Total | ||||||||||||||||||||
in Active Markets for | Observable | Unobservable Inputs | ||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||
As of September 26, 2014: | ||||||||||||||||||||||||
Investment funds: | ||||||||||||||||||||||||
Mutual funds - equities | $ | - | $ | 51.7 | $ | - | $ | 51.7 | ||||||||||||||||
Mutual funds - debt | - | 32.5 | - | 32.5 | ||||||||||||||||||||
Mutual funds - real estate | - | 3.6 | - | 3.6 | ||||||||||||||||||||
Assets held by insurance company: | ||||||||||||||||||||||||
Insurance contracts | - | 99.1 | - | 99.1 | ||||||||||||||||||||
Cash and cash equivalents | 1.7 | - | - | 1.7 | ||||||||||||||||||||
Total | $ | 1.7 | $ | 186.9 | $ | - | $ | 188.6 | ||||||||||||||||
As of September 27, 2013: | ||||||||||||||||||||||||
Investment funds: | ||||||||||||||||||||||||
Mutual funds - equities | $ | - | $ | 49.9 | $ | - | $ | 49.9 | ||||||||||||||||
Mutual funds - debt | - | 26.1 | - | 26.1 | ||||||||||||||||||||
Mutual funds - real estate | - | 3.6 | - | 3.6 | ||||||||||||||||||||
Assets held by insurance company: | ||||||||||||||||||||||||
Insurance contracts | - | 86.3 | - | 86.3 | ||||||||||||||||||||
Cash and cash equivalents | 14.9 | - | - | 14.9 | ||||||||||||||||||||
Total | $ | 14.9 | $ | 165.9 | $ | - | $ | 180.8 | ||||||||||||||||
Valuation Techniques | ||||||||||||||||||||||||
Debt securities are valued at the closing price reported on the stock exchange on which the individual securities are traded. Mutual funds held in trust or similar entities include investments in publicly traded mutual funds and are typically valued using the net asset value provided by the administrator of the fund. Insurance contracts are valued by the insurer using the cash surrender value, which is the amount a plan would receive if a contract was terminated. Cash includes deposits and money market accounts, which are valued at their cost plus interest on a daily basis, which approximates fair value. There were no significant changes in valuation techniques during fiscal years 2014 and 2013. | ||||||||||||||||||||||||
Medicare Prescription Drug Act | ||||||||||||||||||||||||
The Medicare Prescription Drug, Improvement and Modernization Act (the “Prescription Drug Act”) provides a prescription drug benefit under Medicare (Medicare Part D), as well as a federal subsidy to sponsors of retiree healthcare benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. Since it sponsors post-retirement benefit plans that provide prescription drug benefits, the Company enrolled all Medicare eligible retirees in fiscal years 2014, 2013 and 2012 in either Medicare Advantage plans which are at least equivalent to Medicare Part D or in health plans where the prescription drug benefit is, on average, expected to pay out as much as the standard Medicare prescription drug coverage. | ||||||||||||||||||||||||
Estimated Contributions and Future Benefit Payments | ||||||||||||||||||||||||
The Company made contributions of $7.2 million to the defined benefit pension plans during fiscal year 2014, compared to $22.2 million in fiscal year 2013 The Company made contributions of $0.5 million to the post-retirement benefit plan for fiscal year 2014. The Company expects total contributions to the defined benefit pension plans and the post-retirement benefit plan for fiscal year 2015 will be approximately $7.3 million and approximately $0.3 million, respectively. | ||||||||||||||||||||||||
Estimated future benefit payments at September 26, 2014 were as follows: | ||||||||||||||||||||||||
(In millions) | Defined Benefit Plans | Post-Retirement Benefit Plan | Total | |||||||||||||||||||||
Fiscal Years: | ||||||||||||||||||||||||
2015 | $ | 5.3 | $ | 0.3 | $ | 5.6 | ||||||||||||||||||
2016 | 4.9 | 0.2 | 5.1 | |||||||||||||||||||||
2017 | 7.2 | 0.2 | 7.4 | |||||||||||||||||||||
2018 | 7.3 | 0.1 | 7.4 | |||||||||||||||||||||
2019 | 7.9 | 0.1 | 8 | |||||||||||||||||||||
2020-2024 | 38 | 0.4 | 38.4 | |||||||||||||||||||||
Total | $ | 70.6 | $ | 1.3 | $ | 71.9 | ||||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Stockholders' Equity | ' | |||||||||||||||
11. STOCKHOLDERS’ EQUITY | ||||||||||||||||
Stock Repurchase Program | ||||||||||||||||
During fiscal years 2014, 2013 and 2012, the Company repurchased 7,750,000 shares, 6,000,000 shares and 4,433,718 shares, respectively, of VMS common stock under various authorizations by VMS’s Board of Directors. The repurchased shares include shares of VMS common stock repurchased under various accelerated share repurchase agreements. Aggregate amount of repurchases in connection with the various accelerated share repurchase agreements and for shares repurchased in the open market totaled $624.0 million, $423.7 million and $257.4 million in fiscal years 2014, 2013 and 2012, respectively. All shares that were repurchased have been retired. | ||||||||||||||||
In February 2011, the VMS Board of Directors authorized the repurchase of 12,000,000 shares of VMS common stock through the end of fiscal year 2012. As of September 28, 2012, the remaining 3,000,000 shares available for repurchase under the February 2011 authorization expired. In August 2012, the VMS Board of Directors authorized the repurchase of 8,000,000 shares of VMS common stock from September 29, 2012 through December 31, 2013. | ||||||||||||||||
On August 25, 2011, the Company entered into an accelerated share repurchase agreement with BofA. The repurchase period ended in February 2012 and the Company received 375,449 shares of VMS common stock in fiscal year 2012 upon settlement. The market value of the shares received of $25.0 million was included in “Capital in excess of par value.” | ||||||||||||||||
In November 2013, the VMS Board of Directors authorized the repurchase of 6,000,000 shares of VMS common stock from December 30, 2013 through December 31, 2014. Of the 7,750,000 shares repurchased during fiscal year 2014, 5,750,000 shares were repurchased under the November 2013 authorization and remaining 2,000,000 shares were repurchased under the August 2012 authorization. As of September 26, 2014, 250,000 shares of VMS common stock remained available for repurchase under the November 2013 authorization. All shares repurchase programs authorized prior to November 2013 have been completed. | ||||||||||||||||
In August 2014, the VMS Board of Directors authorized the repurchase of an additional 6,000,000 shares of VMS common stock from August 15, 2014 through December 31, 2015. As of September 26, 2014, no shares of VMS common stock had been repurchased under the August 2014 authorization. Stock repurchases may be made in the open market, in privately negotiated transactions (including accelerated share repurchase programs), or under Rule 10b5-1 share repurchase plans, and also may be made from time to time or in one or more larger blocks. | ||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
(In millions) | Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | Cumulative Translation Adjustment and Other | Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||
Balance at September 30, 2011 | $ | (43,120 | ) | $ | (7 | ) | $ | (3,721 | ) | $ | (46,848 | ) | ||||
Other comprehensive earnings before reclassifications | (8,837 | ) | 1,441 | (4,808 | ) | (12,204 | ) | |||||||||
Amounts reclassified out of other comprehensive earnings | 2,822 | (579 | ) | - | 2,243 | |||||||||||
Tax benefit (expense) | 512 | (324 | ) | - | 188 | |||||||||||
Balance at September 28, 2012 | (48,623 | ) | 531 | (8,529 | ) | (56,621 | ) | |||||||||
Other comprehensive earnings before reclassifications | 7,545 | 509 | 9,230 | 17,284 | ||||||||||||
Amounts reclassified out of other comprehensive earnings | 2,950 | (2,463 | ) | - | 487 | |||||||||||
Tax benefit (expense) | (1,953 | ) | 732 | - | (1,221 | ) | ||||||||||
Balance at September 27, 2013 | (40,081 | ) | (691 | ) | 701 | (40,071 | ) | |||||||||
Other comprehensive earnings before reclassifications | (5,429 | ) | 3,925 | (16,217 | ) | (17,721 | ) | |||||||||
Amounts reclassified out of other comprehensive earnings | 2,316 | (1,281 | ) | - | 1,035 | |||||||||||
Tax benefit (expense) | (866 | ) | (988 | ) | - | (1,854 | ) | |||||||||
Balance at September 26, 2014 | $ | (44,060 | ) | $ | 965 | $ | (15,516 | ) | $ | (58,611 | ) | |||||
The amounts reclassified out of other comprehensive earnings into the Consolidated Statements of Earnings, with line item location, during each period were as follows (in thousands): | ||||||||||||||||
Fiscal Years | ||||||||||||||||
Comprehensive Earnings Components | 2014 | 2013 | 2012 | Line Item in Statements of Earnings | ||||||||||||
Unrealized gains and (losses) on defined benefit pension and post-retirement benefit plans | $ | (2,316 | ) | $ | (2,950 | ) | $ | (2,822 | ) | Cost of revenues & Operating expenses | ||||||
Unrealized gains and (losses) on cash flow hedging instruments | 1,281 | 2,463 | 579 | Revenues | ||||||||||||
Total amounts reclassified out of other comprehensive earnings | $ | (1,035 | ) | $ | (487 | ) | $ | (2,243 | ) | |||||||
Employee_Stock_Plans
Employee Stock Plans | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |||||||||||||||||||||||||||||||
Employee Stock Plans | ' | |||||||||||||||||||||||||||||||
12. EMPLOYEE STOCK PLANS | ||||||||||||||||||||||||||||||||
Employee Stock Plans | ||||||||||||||||||||||||||||||||
In November 2000, VMS adopted the 2000 Stock Option Plan (the “2000 Plan”), under which shares of common stock could be issued to key employees and consultants. The maximum number of shares that could have been issued was limited to 12,000,000 shares. Stock options granted under the 2000 Plan have an exercise price equal to the closing market price of the underlying stock on the grant date (unless the stock market was closed on the grant date, in which case the exercise price was equal to the average of the highest and lowest quoted selling prices on the stock market on the day before and the day after the grant date) and expire no later than ten years from the grant date. Stock options granted under the 2000 Plan are exercisable for the first one-third of the option shares one year from the date of grant, with the remainder vesting monthly during the following two-year period. No further awards may be made under the 2000 Plan. | ||||||||||||||||||||||||||||||||
In February 2005, VMS’s stockholders approved the 2005 Omnibus Stock Plan (the “2005 Plan”), which was last amended and restated in February 2012. The 2005 Plan, as amended and restated to date, is referred to as (the “Third Amended 2005 Plan”). The Third Amended 2005 Plan provides for the grant of equity incentive awards, including stock options, restricted stock, stock appreciation rights, performance units, restricted stock units and performance shares to officers, directors, key employees and consultants. The Third Amended 2005 Plan also provides for the grant of deferred stock units to non-employee directors. The maximum number of shares issuable under the Third Amended 2005 Plan is (a) 24,950,000, plus (b) the number of shares authorized for issuance, but never issued, under previously approved plans, plus (c) the number of shares subject to awards previously granted under previously approved plans that terminate, expire, or lapse, plus (d) amounts granted in substitution of options in connection with certain transactions. | ||||||||||||||||||||||||||||||||
Stock options granted under the Third Amended 2005 Plan generally have an exercise price equal to the closing market price of a share of VMS common stock on the grant date. Except for directors, stock options granted under the Third Amended 2005 Plan generally are exercisable in the following manner: the first one-third one year from the date of grant, with the remainder vesting monthly during the following two-year period. Stock option grants to directors are immediately exercisable. For grants of non-qualified stock options made on or after November 17, 2005 under the Third Amended 2005 Plan to employees who retire from the Company within one year of the grant date, the number of shares subject to the stock option shall be adjusted proportionally by the time during such one-year period that the employee remained an employee of the Company (based upon a 365 day year). The revised number of shares subject to the stock option would continue to vest in accordance with the original vesting schedule, and the remaining shares would be cancelled as of the date of retirement. Under the Third Amended 2005 Plan, stock options granted on or prior to February 16, 2007 generally have a term of ten years and stock options granted after February 16, 2007 generally have a term of seven years. The Third Amended 2005 Plan prohibits the repricing of stock options and stock appreciation rights without the approval of VMS’s stockholders. | ||||||||||||||||||||||||||||||||
Restricted stock awards and restricted stock unit awards generally vest over a period of one to three years from the date of grant. For awards of restricted stock and restricted stock units prior to fiscal year 2010, any unvested awards are generally forfeited at the time of termination. However, restricted stock units granted in fiscal year 2010 and thereafter that are unvested at death become fully vested and unvested restricted stock units will generally continue to vest in accordance with the original vesting schedule if a retirement eligible employee retires one year or more from grant date. If a retirement eligible employee retires within one year of the grant date, the number of restricted stock units shall be adjusted proportionally by the time during such one year period that the employee remained an employee of the Company (based upon a 365 day year). The revised number of restricted stock units would vest in accordance with the original vesting schedule and the remaining restricted stock units would be cancelled as of the date of retirement. | ||||||||||||||||||||||||||||||||
Deferred stock unit awards to non-employee directors vest over a period of not less than one year from the date of grant, unless otherwise provided in the grant agreement as determined by VMS’s Board of Directors, and vesting may be pro rata during the vesting period. Each deferred stock unit is deemed to be the equivalent of one share of VMS common stock. Payment of deferred stock units generally will be made in shares of VMS common stock upon the earlier of the third anniversary of the grant date or the director’s termination. | ||||||||||||||||||||||||||||||||
In fiscal years 2014, 2013 and 2012, the Company granted performance units to certain employees under the Third Amended 2005 Plan (before and after its amendment and restatement). The number of shares of VMS common stock ultimately issued under the performance units at the end of a three-year performance period will depend on the Company’s business performance during the three-year period against specified performance targets set by the Compensation and Management Development Committee of the Board of Directors at the beginning of the period. Any unvested performance unit awards are generally forfeited at the time of termination, except in the case of death, in which case the employee is considered to have been continuously employed through the last day of the performance period. Also, similar to the adjustments discussed above for restricted stock unit awards, the number of performance units that ultimately vest is adjusted in the case of retirement. | ||||||||||||||||||||||||||||||||
The fair value of options granted and the option component of the shares purchased under the Employee Stock Purchase Plan (which is described further below) shares were estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: | ||||||||||||||||||||||||||||||||
Employee Stock Plans | Employee Stock Purchase Plans | |||||||||||||||||||||||||||||||
Fiscal Years | Fiscal Years | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Expected term (in years) | 4.13 | 4.76 | 4.64 | 0.5 | 0.5 | 0.5 | ||||||||||||||||||||||||||
Risk-free interest rate | 1.2 | % | 0.6 | % | 0.8 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||
Expected volatility | 24.6 | % | 32.2 | % | 36.9 | % | 12.8 | % | 16.5 | % | 19.3 | % | ||||||||||||||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||
Weighted average fair value at grant date | $ | 18.24 | $ | 19.73 | $ | 18.75 | $ | 14.2 | $ | 12.95 | $ | 12.17 | ||||||||||||||||||||
The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. The expected term is based on the observed and expected time to post-vesting exercise and post-vesting cancellations of stock options by Company employees. The Company determined the expected term of stock options based on the demographic grouping of employees and retirement eligibility. The Company used a combination of historical and implied volatility, or blended volatility, in deriving the expected volatility assumption. The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of VMS’s stock options. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. | ||||||||||||||||||||||||||||||||
As share-based compensation expense recognized in the Consolidated Statements of Earnings is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised, in subsequent periods if actual forfeitures differ from those estimates. | ||||||||||||||||||||||||||||||||
The table below summarizes the effect of recording share-based compensation expense: | ||||||||||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Cost of revenues - Product | $ | 3,323 | $ | 4,088 | $ | 4,419 | ||||||||||||||||||||||||||
Cost of revenues - Service | 4,658 | 3,460 | 1,472 | |||||||||||||||||||||||||||||
Research and development | 6,194 | 5,993 | 6,378 | |||||||||||||||||||||||||||||
Selling, general and administrative | 25,461 | 29,096 | 35,606 | |||||||||||||||||||||||||||||
Total share-based compensation expense | 39,636 | 42,637 | 47,875 | |||||||||||||||||||||||||||||
Taxes on earnings | (12,062 | ) | (12,989 | ) | (15,406 | ) | ||||||||||||||||||||||||||
Net share-based compensation expense | $ | 27,574 | $ | 29,648 | $ | 32,469 | ||||||||||||||||||||||||||
The table below summarizes the effect of recording pre-tax share-based compensation expense for equity incentive awards: | ||||||||||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Stock options | $ | 9,489 | $ | 10,577 | $ | 12,169 | ||||||||||||||||||||||||||
Restricted stock units and restricted stock awards(1) | 26,576 | 28,229 | 32,527 | |||||||||||||||||||||||||||||
Employee stock purchase plan | 3,571 | 3,831 | 3,179 | |||||||||||||||||||||||||||||
Total share-based compensation expense | $ | 39,636 | $ | 42,637 | $ | 47,875 | ||||||||||||||||||||||||||
-1 | Restricted stock units and restricted stock awards include performance units and deferred stock units. | |||||||||||||||||||||||||||||||
A summary of share-based awards available for grant is as follows: | ||||||||||||||||||||||||||||||||
(In thousands) | Shares Available for Grant | |||||||||||||||||||||||||||||||
Balance at September 30, 2011 | 8,424 | |||||||||||||||||||||||||||||||
Authorized | 6,000 | |||||||||||||||||||||||||||||||
Granted | (2,680 | ) | ||||||||||||||||||||||||||||||
Cancelled or expired | 124 | |||||||||||||||||||||||||||||||
Balance at September 28, 2012 | 11,868 | |||||||||||||||||||||||||||||||
Granted | (2,045 | ) | ||||||||||||||||||||||||||||||
Cancelled or expired | 102 | |||||||||||||||||||||||||||||||
Balance at September 27, 2013 | 9,925 | |||||||||||||||||||||||||||||||
Granted | (1,934 | ) | ||||||||||||||||||||||||||||||
Cancelled or expired | 177 | |||||||||||||||||||||||||||||||
Balance at September 26, 2014 | 8,168 | |||||||||||||||||||||||||||||||
For purposes of the total number of shares available for grant under the Third Amended 2005 Plan, any shares subject to awards of stock options are counted against the available-for-grant limit as one share for every one share subject to the award. Awards other than stock options are counted against the available-for-grant limit as three shares for every one share awarded before February 16, 2007, as 2.5 shares for every one share awarded between February 16, 2007 and February 8, 2012 and as 2.6 shares for every one share awarded on or after February 9, 2012. In addition, the shares available for grant limit was further adjusted to reflect a maximum payout of 1.5 shares that could be issued for each performance unit granted. All awards may be subject to restrictions on transferability and continued employment as determined by the Compensation and Management Development Committee. | ||||||||||||||||||||||||||||||||
Activity under the Company’s employee stock plans related to stock options is presented below: | ||||||||||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | Number of Shares | Weighted Average Exercise Price | ||||||||||||||||||||||||||||||
Balance at September 30, 2011 | 6,917 | $ | 45.9 | |||||||||||||||||||||||||||||
Granted | 743 | 58.5 | ||||||||||||||||||||||||||||||
Canceled, expired or forfeited | (30 | ) | 55.73 | |||||||||||||||||||||||||||||
Exercised | (1,171 | ) | 40.18 | |||||||||||||||||||||||||||||
Balance at September 28, 2012 | 6,459 | 48.34 | ||||||||||||||||||||||||||||||
Granted | 613 | 68.93 | ||||||||||||||||||||||||||||||
Canceled, expired or forfeited | (20 | ) | 60.81 | |||||||||||||||||||||||||||||
Exercised | (2,567 | ) | 44.97 | |||||||||||||||||||||||||||||
Balance at September 27, 2013 (3,655 options exercisable at a weighted average exercise price of $50.18) | 4,485 | 53.02 | ||||||||||||||||||||||||||||||
Granted | 625 | 83.5 | ||||||||||||||||||||||||||||||
Canceled, expired or forfeited | (46 | ) | 72.35 | |||||||||||||||||||||||||||||
Exercised | (1,721 | ) | 49.01 | |||||||||||||||||||||||||||||
Balance at September 26, 2014 | 3,343 | $ | 60.53 | |||||||||||||||||||||||||||||
The total pre-tax intrinsic value of stock options exercised was $54.4 million, $66.3 million and $29.8 million in fiscal years 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||||||||||
The following table summarizes information related to stock options outstanding and exercisable under the Company’s employee stock plans at September 26, 2014: | ||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Term (in years) | Weighted Average Exercise Price | Aggregate Intrinsic Value (1) | Number of Shares | Weighted Average Remaining Contractual Term (in years) | Weighted Average Exercise Price | Aggregate Intrinsic Value (1) | ||||||||||||||||||||||||
(In thousands, except years and per-share amounts) | ||||||||||||||||||||||||||||||||
$37.06 – $39.85 | 129 | 1.01 | $ | 37.94 | $ | 5,537 | 129 | 1.01 | $ | 37.94 | $ | 5,537 | ||||||||||||||||||||
$45.22 – $52.07 | 880 | 1.74 | 50.3 | 26,907 | 880 | 1.74 | 50.3 | 26,907 | ||||||||||||||||||||||||
$52.61 – $72.26 | 1,722 | 3.1 | 59.28 | 37,237 | 1,477 | 2.83 | 57.95 | 33,901 | ||||||||||||||||||||||||
$74.28 – $84.23 | 612 | 6.41 | 83.49 | 91 | - | - | - | - | ||||||||||||||||||||||||
Total | 3,343 | 3.27 | $ | 60.53 | $ | 69,772 | 2,486 | 2.35 | $ | 54.21 | $ | 66,345 | ||||||||||||||||||||
-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 $80.90 as of September 26, 2014, the last trading date of fiscal year 2014, and which represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date. | |||||||||||||||||||||||||||||||
As of September 26, 2014, there was $10.5 million of total unrecognized compensation expense related to 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 1.7 years. | ||||||||||||||||||||||||||||||||
The activity for restricted stock, restricted stock units, deferred stock units and performance units is summarized as follows: | ||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | Number of Shares | Weighted Average Grant-Date Fair Value | ||||||||||||||||||||||||||||||
Balance at September 30, 2011 | 735 | $ | 47.36 | |||||||||||||||||||||||||||||
Granted | 716 | 59.06 | ||||||||||||||||||||||||||||||
Vested | (469 | ) | 44.68 | |||||||||||||||||||||||||||||
Cancelled or expired | (37 | ) | 53.94 | |||||||||||||||||||||||||||||
Balance at September 28, 2012 | 945 | 57.3 | ||||||||||||||||||||||||||||||
Granted | 516 | 70.37 | ||||||||||||||||||||||||||||||
Vested | (396 | ) | 55.67 | |||||||||||||||||||||||||||||
Cancelled or expired | (30 | ) | 61.82 | |||||||||||||||||||||||||||||
Balance at September 27, 2013 | 1,035 | 64.36 | ||||||||||||||||||||||||||||||
Granted | 470 | 82.51 | ||||||||||||||||||||||||||||||
Vested | (335 | ) | 63.7 | |||||||||||||||||||||||||||||
Cancelled or expired | (44 | ) | 70.69 | |||||||||||||||||||||||||||||
Balance at September 26, 2014 | 1,126 | $ | 72.08 | |||||||||||||||||||||||||||||
As of September 26, 2014, unrecognized compensation expense totaling $35.8 million was related to restricted stock, 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 1.8 years. The 335,032 shares that vested in fiscal year 2014 represented deferred stock units, restricted stock units and restricted common stock, and the total fair value of these shares upon vesting was $25.4 million. The Company withheld 115,987 shares with a fair value of $8.8 million for employees’ minimum withholding taxes at vesting of such awards in fiscal year 2014. | ||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||||||||||||
In February 2010, VMS’s stockholders approved the 2010 Employee Stock Purchase Plan (the “2010 ESPP”). The 2010 ESPP provides eligible employees with an opportunity to purchase shares of VMS common stock at 85% of the lower of its fair market value at the start and end of a six-month purchase period. The 2010 ESPP provides for the purchase of up to 7 million shares of VMS common stock. | ||||||||||||||||||||||||||||||||
VMS issued 261,230 shares for $15.3 million in fiscal year 2014 and 262,455 shares for $14.2 million in fiscal year 2013. At September 26, 2014, 6.1 million shares were available for issuance under the 2010 ESPP. | ||||||||||||||||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Sep. 26, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
13. EARNINGS PER SHARE | |||||||||||||
Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares of VMS common stock outstanding for the period. Diluted net earnings per share is computed by dividing net earnings by the sum of the weighted average number of common shares outstanding and dilutive common shares under the treasury stock method. | |||||||||||||
The following table sets forth the computation of net basic and diluted earnings per share: | |||||||||||||
Fiscal Years | |||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Net earnings | $ | 403,703 | $ | 438,248 | $ | 427,049 | |||||||
Weighted average shares outstanding - basic | 103,964 | 108,352 | 111,376 | ||||||||||
Dilutive effect of potential common shares | 1,307 | 1,701 | 2,097 | ||||||||||
Weighted average shares outstanding - diluted | 105,271 | 110,053 | 113,473 | ||||||||||
Net earnings per share - basic | $ | 3.88 | $ | 4.04 | $ | 3.83 | |||||||
Net earnings per share - diluted | $ | 3.83 | $ | 3.98 | $ | 3.76 | |||||||
Anti-dilutive employee shared based awards, excluded | 632 | 707 | 249 | ||||||||||
The Company excludes potentially dilutive common shares (consisting of shares underlying stock options, restricted stock units, performance units and the Employee Stock Purchase Plan) from the computation of diluted weighted average shares outstanding if the per share value, either the exercise price of the awards or the sum of (a) the exercise price of the awards and (b) the amount of the compensation cost attributed to future services and not yet recognized and (c) the amount of tax benefit or shortfall that would be recorded in additional paid-in capital when the award becomes deductible, is greater than the average market price of the shares, because the inclusion of the shares underlying these stock awards would be antidilutive to earnings per share. |
Taxes_on_Earnings
Taxes on Earnings | 12 Months Ended | ||||||||||||||
Sep. 26, 2014 | |||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||
Taxes on Earnings | ' | ||||||||||||||
14. TAXES ON EARNINGS | |||||||||||||||
The Company accounts for income taxes under an asset and liability approach where deferred income taxes are based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. | |||||||||||||||
Taxes on earnings were as follows: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(In millions) | |||||||||||||||
Current provision: | |||||||||||||||
Federal | $ | 86.6 | $ | 110.1 | $ | 99.3 | |||||||||
State and local | 6.1 | 13.4 | 8.5 | ||||||||||||
Foreign | 62.2 | 54.3 | 63.5 | ||||||||||||
Total current | 154.9 | 177.8 | 171.3 | ||||||||||||
Deferred provision (benefit): | |||||||||||||||
Federal | 5 | (3.9 | ) | (4.5 | ) | ||||||||||
State and local | (0.1 | ) | (0.2 | ) | 0.1 | ||||||||||
Foreign | 11 | 0.1 | 2 | ||||||||||||
Total deferred | 15.9 | (4.0 | ) | (2.4 | ) | ||||||||||
Taxes on earnings | $ | 170.8 | $ | 173.8 | $ | 168.9 | |||||||||
Earnings before taxes are generated from the following geographic areas: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(In millions) | |||||||||||||||
United States | $ | 173.9 | $ | 308 | $ | 271.4 | |||||||||
Foreign | 400.6 | 304.1 | 324.5 | ||||||||||||
$ | 574.5 | $ | 612.1 | $ | 595.9 | ||||||||||
The effective tax rate differs from the U.S. federal statutory tax rate as a result of the following: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||||
State and local taxes, net of federal tax benefit | 0.8 | 1.3 | 1.3 | ||||||||||||
Non-U.S. income taxed at different rates, net | (5.2 | ) | (5.6 | ) | (5.9 | ) | |||||||||
Resolution of tax contingencies due to lapses of statutes of limitations | (1.2 | ) | (1.2 | ) | (1.8 | ) | |||||||||
Other | 0.3 | (1.1 | ) | (0.3 | ) | ||||||||||
Effective tax rate | 29.7 | % | 28.4 | % | 28.3 | % | |||||||||
During fiscal years 2014, 2013 and 2012, the Company’s effective tax rate was lower than the U.S. federal statutory rate primarily because the Company’s foreign earnings are taxed at rates that, on average, are lower than the U.S. federal rate. This reduction is partly offset by the fact that the Company’s domestic earnings are also subject to state income taxes. During fiscal years 2014, 2013 and 2012, the benefit of the release of liabilities for uncertain tax positions as a result of the expiration of the statutes of limitation in various jurisdictions also contributed to the Company’s effective tax rate being lower than the U.S. federal statutory rate. | |||||||||||||||
Significant components of deferred tax assets and liabilities are as follows: | |||||||||||||||
September 26, | September 27, | ||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||
Deferred Tax Assets: | |||||||||||||||
Deferred revenues | $ | 26.9 | $ | 26.8 | |||||||||||
Deferred compensation | 37.3 | 34.9 | |||||||||||||
Product warranty | 10.9 | 13.9 | |||||||||||||
Inventory adjustments | 19.7 | 18.3 | |||||||||||||
Equity-based compensation | 28.8 | 33.3 | |||||||||||||
Environmental reserve | 4.8 | 5.7 | |||||||||||||
Accruals and reserves | 14.3 | 12.1 | |||||||||||||
Net operating loss carryforwards | 79.1 | 78.6 | |||||||||||||
Other | 38.2 | 25.7 | |||||||||||||
260 | 249.3 | ||||||||||||||
Valuation allowance | (67.5 | ) | (60.7 | ) | |||||||||||
Total deferred tax assets | 192.5 | 188.6 | |||||||||||||
Deferred Tax Liabilities: | |||||||||||||||
Tax-deductible goodwill | (27.7 | ) | (27.3 | ) | |||||||||||
Fixed assets | (16.3 | ) | (17.7 | ) | |||||||||||
Unremitted earnings of foreign subsidiaries | (24.0 | ) | (9.4 | ) | |||||||||||
Other | (29.3 | ) | (21.0 | ) | |||||||||||
Total deferred tax liabilities | (97.3 | ) | (75.4 | ) | |||||||||||
Net deferred tax assets | $ | 95.2 | $ | 113.2 | |||||||||||
Reported As: | |||||||||||||||
Net current deferred tax assets | $ | 126 | $ | 122.3 | |||||||||||
Net long-term deferred tax assets (included in other assets) | 11.5 | 10.5 | |||||||||||||
Net current deferred tax liabilities (included in accrued expenses) | (10.8 | ) | (7.6 | ) | |||||||||||
Net long-term deferred tax liabilities (included in other long-term liabilities) | (31.5 | ) | (12.0 | ) | |||||||||||
Net deferred tax assets | $ | 95.2 | $ | 113.2 | |||||||||||
The Company has not provided for U.S. federal income and foreign withholding taxes on $1,537.6 million of cumulative undistributed earnings of non-U.S. subsidiaries as of September 26, 2014. Such earnings are intended to be reinvested in the non-U.S. subsidiaries for an indefinite period of time. If such earnings were not considered to be reinvested indefinitely, an additional deferred taxes liability of approximately $381.0 million would be provided. | |||||||||||||||
The Company has federal net operating loss carryforwards of approximately $13.4 million expiring between 2018 and 2031. The federal net operating loss carryforwards are subject to an annual limitation of approximately $1.3 million per year. The Company has state net operating loss carryforwards of $13.4 million expiring between 2018 and 2032. The Company has foreign net operating loss carryforwards of $226.0 million with an indefinite life. Of this amount, $22.6 million is unavailable to the Company under local loss utilization rules. | |||||||||||||||
The valuation allowance relates primarily to net operating losses in certain foreign jurisdictions where, based on the weight of available evidence, it is more likely than not that the tax benefit of the net operating losses will not be realized. The valuation allowance increased by $6.8 million during fiscal year 2014, increased by $14.9 million during fiscal year 2013, and decreased by $1.1 million in fiscal year 2012. | |||||||||||||||
Income taxes paid were as follows: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(In millions) | |||||||||||||||
Federal income taxes paid, net | $ | 66.2 | $ | 119.1 | $ | 77.6 | |||||||||
State, income taxes paid, net | 7.3 | 14.9 | 9.3 | ||||||||||||
Foreign income taxes paid, net | 67.3 | 69.4 | 47.7 | ||||||||||||
Total income taxes paid, net | $ | 140.8 | $ | 203.4 | $ | 134.6 | |||||||||
The Company accounts for uncertainty in income taxes following a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that, based on the technical merits, the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. | |||||||||||||||
Changes in the Company’s unrecognized tax benefits were as follows: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(In millions) | |||||||||||||||
Unrecognized tax benefits balance–beginning of fiscal year | $ | 37 | $ | 38.8 | $ | 37.1 | |||||||||
Additions based on tax positions related to a prior year | 10.7 | 2.5 | 3.8 | ||||||||||||
Reductions based on tax positions related to a prior year | (0.3 | ) | (0.7 | ) | (0.9 | ) | |||||||||
Additions based on tax positions related to the current year | 8.2 | 6.6 | 6.8 | ||||||||||||
Settlements | (0.4 | ) | (4.2 | ) | (0.4 | ) | |||||||||
Reductions resulting from the expiration of the applicable statute of limitations | (5.6 | ) | (6.0 | ) | (7.6 | ) | |||||||||
Unrecognized tax benefits balance–end of fiscal year | $ | 49.6 | $ | 37 | $ | 38.8 | |||||||||
As of September 26, 2014, the total amount of gross unrecognized tax benefits was $49.6 million. Of this amount, $32.2 million would affect the effective tax rate if recognized. The difference would be offset by changes to deferred tax assets and liabilities. | |||||||||||||||
The Company includes interest and penalties related to income taxes within taxes on earnings on the Consolidated Statements of Earnings. As of September 26, 2014, the Company had accrued $7.8 million for the payment of interest and penalties related to unrecognized tax benefits. During fiscal year 2014, a net expense of $1.1 million related to interest and penalties was included in taxes on earnings. As of September 27, 2013, the Company had accrued $6.7 million for the payment of interest and penalties related to unrecognized tax benefits. During fiscal year 2013, a net benefit of $1.2 million related to interest and penalties was included in taxes on earnings. | |||||||||||||||
The Company files U.S. federal, U.S. state, and foreign tax returns. The Company’s U.S. federal tax returns are generally no longer subject to tax examinations for years prior to 2011. The Company has significant operations in Switzerland. The Company’s Swiss tax returns are generally no longer subject to tax examinations for years prior to 2010. For U.S. states and other foreign tax returns, the Company is generally no longer subject to tax examinations for years prior to 2007. |
Business_Combinations
Business Combinations | 12 Months Ended |
Sep. 26, 2014 | |
Business Combinations [Abstract] | ' |
Business Combinations | ' |
15. BUSINESS COMBINATIONS | |
In April 2012, VMS acquired all of the outstanding equity of InfiMed, a privately-held supplier of hardware and software for processing diagnostic X-ray images. This acquisition, which was integrated into the Company’s X-ray tubes and flat panel products reporting unit, enables the Company to provide more fully integrated X-ray component solutions to its customers. This acquisition was accounted for as a business combination. The total purchase price of $20.8 million consisted of $17.1 million of cash consideration and $3.7 million of contingent consideration measured at fair value. Of the purchase price, $10.9 million was allocated to goodwill, $5.4 million to amortizable intangible assets, and $4.5 million to net assets. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and in this case was deductible for income tax purposes. | |
In April 2014, the Company closed the acquisition of certain assets of Velocity Medical Solutions LLC (“Velocity”), a privately-held Atlanta-based developer of specialized software for cancer clinics. The Velocity software aggregates unstructured treatment and imaging data from diverse systems to give a more comprehensive view of a patient's diagnostic imaging and treatment history and help clinicians make more informed treatment decisions. The acquired assets of Velocity were integrated into the Company’s Oncology Systems business and will increase the Company’s current product offerings. The acquisition was accounted for as a business combination. The total purchase price of the acquisition of $19.9 million consisted of $17.0 million in cash (of which $2.6 million was held back) and $2.9 million of earn-out consideration measured at fair value. Of the purchase price, $10.6 million was preliminarily allocated to amortizable intangible assets, $9.8 million goodwill, and $(0.5) million to net assumed liabilities. If any additional information becomes available, the preliminary purchase price allocation may be revised. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and in this case is deductible for income tax purposes. The goodwill recognized, which was assigned to the Company’s Oncology Systems reporting unit, is primarily attributable to expected synergies resulting from the acquisition. The amortization period for the intangible assets acquired through the acquisition was as follows: 6 years for developed technology, 7 years for customer relationships and 6 years for trade name. | |
In July 2014, the Company closed the acquisition of certain assets and liabilities of Transpire, Inc. (“Transpire”), a privately-held developer of software solutions for accurately and rapidly predicting the macroscopic behavior of radiation. The Company’s Oncology Systems reporting unit integrated Transpire’s dose calculation software to improve its image guidance tools and deliver high-precision radiotherapy for the treatment of cancer. The Company’s security and inspection products reporting unit is using certain other Transpire software to provide comprehensive solutions for customers that integrate the Company’s high-energy X-ray technology into systems for cargo screening, industrial inspection and non-destructive testing. The acquisition was accounted for as a business combination. Total purchase price of the acquisition of $19.3 million consisted of $16.0 million in cash and $3.3 million of earn-out consideration measured at fair value. Of the purchase price, $10.7 million was preliminarily allocated to intangible assets, $8.7 million to goodwill, and $(0.1) million to net assumed liabilities. If any additional information becomes available, the preliminary purchase price allocation may be revised. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and in this case is deductible for income tax purposes. The goodwill recognized is primarily attributable to expected synergies resulting from the acquisition. The Company assigned $5.9 million of the goodwill recognized to the Oncology Systems reporting unit, and $2.8 million to the security and inspection products reporting unit. Of the $10.7 million intangible assets acquired through the acquisition, $8.0 million was allocated to the Company’s Oncology Systems reporting unit, and $2.7 million was assigned to the Company’s security and inspection products reporting unit. Approximately $8.7 million of these intangible assets are amortizable. The amortization period was as follows: 6 years for developed technology, 7 years for customer relationships and 6 years for trade name. The remaining $2.0 million of the acquired intangible assets was in-process research and development that was allocated to the Company’s Oncology Systems reporting unit. | |
The Company also completed an insignificant acquisition during the first quarter of fiscal year 2014 for a purchase consideration of $1.5 million. | |
The impact of these business combinations was not significant to the Consolidated Financial Statements and therefore pro forma disclosures have not been presented. |
CPTC_Loans
CPTC Loans | 12 Months Ended |
Sep. 26, 2014 | |
Cptc Loans [Abstract] | ' |
CPTC Loans | ' |
16. CPTC LOANS | |
In September 2011, ORIX and the Company, through its Swiss subsidiary, committed to loan up to $165.3 million (“Tranche A loan”) to CPTC to fund the development, construction and initial operations of the Scripps Proton Therapy Center in San Diego, California. ORIX is the loan agent for this facility and, along with CPTC and Scripps, has budgetary approval authority for the Scripps Proton Therapy Center. The Company’s maximum loan commitment under the Tranche A loan was $115.3 million, reflecting the Company’s pro rata share of 69.75% of the obligation to fund the initial distribution and subsequent advances. In June 2014, the Company, through its Swiss subsidiary, entered into a series of agreements, including amending certain terms of the original loan agreement, pursuant to which JPMorgan Chase Bank, N.A. (“J.P. Morgan”) assumed $45.0 million of the Company’s original maximum commitment of $115.3 million, reducing the Company’s maximum commitment under the Tranche A loan to $70.3 million. Pursuant to these agreements, J.P. Morgan purchased $38.1 million of the Company’s outstanding Tranche A loan at par value and was obligated to fund up to an additional $6.9 million of the remaining Tranche A loan commitment. Through these agreements, the Company’s Swiss subsidiary also increased its individual loan commitment by $10.0 million (“Tranche B loan”) and as a result, the Company’s maximum loan commitment under the Tranche A and Tranche B loans (collectively, referred to as the “CPTC Loans”) is $80.3 million reflecting the Company’s pro rata share of 45.8% of the total obligation to fund CPTC of $175.3 million. | |
As of September 26, 2014, the Company had loaned $66.2 million of its $70.3 million commitment under the Tranche A loan. The Company intends to sell all or a portion of its participation in its Tranche A loan before the maturity date. Upon the sale of all or a portion of the Tranche A loan, the Company will not be required to make further loan advances for the portion of the loan that is sold. As of September 26, 2014, the Company had loaned $9.4 million of its $10.0 million commitment under the Tranche B loan. The amounts loaned under the Tranche A and Tranche B loans include accrued interest. The CPTC loans are accounted for as available-for-sale securities and recorded at fair value. The Tranche A loan is classified as a short-term investment and included in current assets and the Tranche B loan is included in other assets on the Company’s Consolidated Balance Sheets. The Tranche B loan is subordinated to the Tranche A loan in the event of default, but otherwise has the same terms as the Tranche A loan. | |
Pursuant to the loan agreement, as amended in June 2014, the CPTC Loans mature in September 2017 and bear interest at the London Interbank Offer Rate (“LIBOR”) plus 7.00% per annum with a minimum interest rate of 9.00% per annum. Interest only payments on the CPTC Loans are due monthly in arrears until January 1, 2015, at which time monthly payments based on amortization of the principal balance over a 15-year period become due and payable. The CPTC Loans are collateralized by all of the assets of the Scripps Proton Therapy Center. | |
The Company has determined that CPTC is a variable interest entity and that the Company holds a significant variable interest of CPTC through its subsidiary’s participation in the loan facility and its agreements to supply and service the proton therapy equipment. The Company has concluded that it is not the primary beneficiary of CPTC. The Company has no voting rights, has no approval authority or veto rights for CPTC’s budget, and does not have the power to direct patient recruitment, clinical operations and management of the Scripps Proton Therapy Center, which the Company believes are the matters that most significantly affect CPTC’s economic performance. | |
As of September 26, 2014, the Company had recorded $20.1 million in accounts receivable from CPTC, which includes unbilled accounts receivable. As of September 27, 2013, the outstanding Tranche A loan balance to CPTC was $62.7 million and the accounts receivable balance from CPTC was $48.4 million, which includes unbilled accounts receivable. The Company’s exposure to loss as a result of its involvement with CPTC is limited to the carrying amounts of these assets on its Consolidated Balance Sheets. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
17. SEGMENT INFORMATION | |||||||||||||||||||||||||
During the second quarter of fiscal year 2014, the Company changed its organizational structure resulting in a change in operating and reportable segments. The Company’s operations are grouped into two reportable operating segments: Oncology Systems and Imaging Components. The Imaging Components segment includes the Company’s X-ray imaging tubes and flat panel products (previously reported as “X-Ray Products” segment), as well as our security and inspection products (previously reported as “Security and Inspection Products” under the “Other” category). The Company’s GTC and VPT business are reflected in the “Other” category because these operating segments do not meet the criteria of 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. There was no change to the Company’s reporting units as a result of the change in operating segments. | |||||||||||||||||||||||||
Description of Segments | |||||||||||||||||||||||||
The Oncology Systems segment designs, manufactures, sells and services hardware and software products for treating cancer with radiotherapy, stereotactic radiotherapy, stereotactic body radiotherapy, stereotactic radiosurgery and brachytherapy. Products include linear accelerators, brachytherapy afterloaders, treatment simulation and verification equipment and accessories; as well as information management, treatment planning and image processing software. Oncology Systems’ products enable radiation oncology departments in hospitals and clinics to perform conventional radiotherapy treatments and offer advanced treatments such as fixed field intensity-modulated radiation therapy (“IMRT”), image-guided radiation therapy (“IGRT”), volumetric modulated arc therapy and stereotactic radiotherapy, as well as to treat patients using brachytherapy techniques, which involve temporarily implanting radioactive sources. The Company’s Oncology Systems products are also used by neurosurgeons to perform stereotactic radiosurgery. Oncology Systems’ customers worldwide include university research and community hospitals, private and governmental institutions, healthcare agencies, physicians’ offices and cancer care clinics. | |||||||||||||||||||||||||
The Imaging Components segment designs, manufactures, sells and services X-ray imaging components for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography and industrial applications. The Company’s X-ray imaging components are sold to large imaging system OEM customers that incorporate them into their medical diagnostic, dental, veterinary and industrial imaging systems. The Company sells X-ray tubes and flat panel digital image detectors for filmless X-ray imaging (commonly referred to as “flat panel detectors” or “digital image detectors”) to small OEM customers, independent service companies and directly to end-users for replacement purposes. The Imaging Components segment also designs, manufactures, sells and services Linatron® X-ray accelerators, imaging processing software and image detection products for security and inspection purposes, such as cargo screening at ports and borders and nondestructive examination in a variety of applications. The Company generally sells security and inspection products to OEM customers who incorporate its products into their inspection systems, which are then sold to customs and other government agencies, as well as to commercial private parties in the casting, power, aerospace, chemical, petro-chemical and automotive industries for nondestructive product examination purposes. | |||||||||||||||||||||||||
The Company’s GTC and VPT business are reported together under the “Other” category. | |||||||||||||||||||||||||
The VPT business develops, designs, manufactures, sells and services products and systems for delivering proton therapy, a form of external beam radiotherapy using proton beams for the treatment of cancer. | |||||||||||||||||||||||||
GTC develops technologies that enhance the Company’s current businesses or may lead to new business areas, including technology to improve radiation therapy and X-ray imaging, as well as other technology for a variety of applications, including security and cargo screening. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Prior years’ amounts have been revised to conform to the current year’s presentation. | |||||||||||||||||||||||||
Segment Data | |||||||||||||||||||||||||
Revenues | Operating Earnings(1) | ||||||||||||||||||||||||
Fiscal Years | Fiscal Years | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Oncology Systems | $ | 2,344.20 | $ | 2,252.70 | $ | 2,189.50 | $ | 495.5 | $ | 512 | $ | 505.4 | |||||||||||||
Imaging Components | 660.2 | 641.9 | 580.4 | 169.9 | 165.6 | 142.5 | |||||||||||||||||||
Total reportable segments | 3,004.40 | 2,894.60 | 2,769.90 | 665.4 | 677.6 | 647.9 | |||||||||||||||||||
Other | 45.4 | 48.3 | 37.1 | (52.7 | ) | (46.4 | ) | (44.2 | ) | ||||||||||||||||
Corporate | - | - | - | (41.5 | ) | (22.3 | ) | (9.6 | ) | ||||||||||||||||
Total company | $ | 3,049.80 | $ | 2,942.90 | $ | 2,807.00 | $ | 571.2 | $ | 608.9 | $ | 594.1 | |||||||||||||
-1 | Operating earnings of reportable segments and Other include an allocation of corporate expenses based on a percentage of their sales. | ||||||||||||||||||||||||
Depreciation & Amortization | Total Assets | ||||||||||||||||||||||||
Fiscal Years | Fiscal Years | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Oncology Systems | $ | 24.8 | $ | 21 | $ | 22.9 | $ | 1,314.10 | $ | 1,217.00 | $ | 1,220.10 | |||||||||||||
Imaging Components | 14.7 | 14.6 | 12.3 | 431.6 | 398.5 | 356.1 | |||||||||||||||||||
Total reportable segments | 39.5 | 35.6 | 35.2 | 1,745.70 | 1,615.50 | 1,576.20 | |||||||||||||||||||
Other | 1 | 1.4 | 2 | 278.6 | 278.1 | 221.5 | |||||||||||||||||||
Corporate | 22 | 25.9 | 23.8 | 1,333.00 | 1,574.90 | 1,081.00 | |||||||||||||||||||
Total company | $ | 62.5 | $ | 62.9 | $ | 61 | $ | 3,357.30 | $ | 3,468.50 | $ | 2,878.70 | |||||||||||||
The reconciliation of segment operating results information to the Company’s earnings from operations before taxes was as follows: | |||||||||||||||||||||||||
Fiscal Years | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Oncology Systems | $ | 495.5 | $ | 512 | $ | 505.4 | |||||||||||||||||||
Imaging Components | 169.9 | 165.6 | 142.5 | ||||||||||||||||||||||
Total reportable segments | 665.4 | 677.6 | 647.9 | ||||||||||||||||||||||
Other | (52.7 | ) | (46.4 | ) | (44.2 | ) | |||||||||||||||||||
Corporate | (41.5 | ) | (22.3 | ) | (9.6 | ) | |||||||||||||||||||
Interest income, net | 3.3 | 3.2 | 1.8 | ||||||||||||||||||||||
Total company | $ | 574.5 | $ | 612.1 | $ | 595.9 | |||||||||||||||||||
Geographic Information | |||||||||||||||||||||||||
Revenues | Long-lived Assets | ||||||||||||||||||||||||
Fiscal Years | Fiscal Years | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
United States | $ | 1,264.40 | $ | 1,212.40 | $ | 1,156.10 | $ | 262.7 | $ | 237.8 | $ | 228.6 | |||||||||||||
International | 1,785.40 | 1,730.50 | 1,650.90 | 75.3 | 77.5 | 68 | |||||||||||||||||||
Total company | $ | 3,049.80 | $ | 2,942.90 | $ | 2,807.00 | $ | 338 | $ | 315.3 | $ | 296.6 | |||||||||||||
The Company operates various manufacturing and marketing operations outside the United States. Allocation between domestic and foreign revenues is based on final destination of products sold. Japan represented approximately 13% of the Company’s total revenues in fiscal year 2014. No single foreign country represented 10% or more of the Company’s total revenues in fiscal years 2013 and 2012, respectively. Intercompany revenues between geographic areas are accounted for at cost plus prevailing markups arrived at through negotiations between profit centers. Intercompany and intracompany profits are eliminated in consolidation. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||||||
18. QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||||
Fiscal Year 2014 | ||||||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||||||
Quarter | Quarter (1) | Quarter | Quarter | Year | ||||||||||||||||
Total revenues | $ | 711.5 | $ | 778.5 | $ | 747.7 | $ | 812.1 | $ | 3,049.80 | ||||||||||
Gross margin | $ | 309.6 | $ | 328.3 | $ | 323.7 | $ | 340.1 | $ | 1,301.70 | ||||||||||
Net earnings | $ | 98 | $ | 92.7 | $ | 107.1 | $ | 105.9 | $ | 403.7 | ||||||||||
Net earnings per share – basic: | $ | 0.92 | $ | 0.89 | $ | 1.03 | $ | 1.04 | $ | 3.88 | ||||||||||
Net earnings per share – diluted: | $ | 0.91 | $ | 0.88 | $ | 1.02 | $ | 1.02 | $ | 3.83 | ||||||||||
Fiscal Year 2013 | ||||||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Total revenues | $ | 678.4 | $ | 768.4 | $ | 726.2 | $ | 769.9 | $ | 2,942.90 | ||||||||||
Gross margin | $ | 291.1 | $ | 319.6 | $ | 310.5 | $ | 328.5 | $ | 1,249.70 | ||||||||||
Net earnings | $ | 95.3 | $ | 112.8 | $ | 112.8 | $ | 117.3 | $ | 438.2 | ||||||||||
Net earnings per share – basic: | $ | 0.87 | $ | 1.04 | $ | 1.04 | $ | 1.09 | $ | 4.04 | ||||||||||
Net earnings per share – diluted: | $ | 0.86 | $ | 1.02 | $ | 1.03 | $ | 1.08 | $ | 3.98 | ||||||||||
-1 | In the second fiscal quarter of 2014, net earnings include a $25.1 million litigation charge related to a settlement agreement with the University of Pittsburgh. | |||||||||||||||||||
The four quarters of net earnings per share may not add to the total fiscal year because of differences in the weighted average numbers of shares outstanding during the quarters and the fiscal year. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||
VARIAN MEDICAL SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||
Fiscal | Description | Balance at | Charged to Bad | Write-offs | Balance at | ||||||||||||||
Year | Beginning of Period | Debt Expense | Adjustments Charged | End of Period | |||||||||||||||
to Allowance | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
2014 | Allowance for doubtful accounts receivable | $ | 14,735 | $ | 7,150 | $ | (1,568 | ) | $ | 20,317 | |||||||||
2013 | Allowance for doubtful accounts receivable | $ | 14,386 | $ | 5,984 | $ | (5,635 | ) | $ | 14,735 | |||||||||
2012 | Allowance for doubtful accounts receivable | $ | 6,034 | $ | 10,350 | $ | (1,998 | ) | $ | 14,386 | |||||||||
Fiscal | Description | Balance at | Increases | Deductions | Balance at | ||||||||||||||
Year | Beginning of Period | End of Period | |||||||||||||||||
(In thousands) | |||||||||||||||||||
2014 | Valuation allowance for deferred tax assets | $ | 60,704 | $ | 8,319 | $ | (1,555 | ) | $ | 67,468 | |||||||||
2013 | Valuation allowance for deferred tax assets | $ | 45,751 | $ | 14,953 | $ | - | $ | 60,704 | ||||||||||
2012 | Valuation allowance for deferred tax assets | $ | 46,924 | $ | - | $ | (1,173 | ) | $ | 45,751 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 26, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). | |
Segment Reporting | ' |
Segment Reporting | |
During the second quarter of fiscal year 2014, the Company changed its organizational structure resulting in a change in operating and reportable segments. The Company’s operations are grouped into two reportable operating segments: Oncology Systems and Imaging Components. The Company’s Ginzton Technology Center (“GTC”) and Varian Particle Therapy (“VPT”) business are reflected in the “Other” category because these operating segments do not meet the criteria of a reportable operating segment. See Note 17, “Segment Information” for additional information. | |
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 2014 was the 52-week period that ended on September 26, 2014. Fiscal year 2013 was the 52-week period that ended on September 27, 2013 and fiscal year 2012 was the 52-week period that ended on September 28, 2012. | |
Distribution | ' |
Distribution | |
On April 2, 1999, Varian Associates, Inc. reorganized into three separate publicly traded companies by spinning off, through a tax-free distribution, two of its businesses to stockholders (the “Spin-offs”). The Spin-offs resulted in the following three companies: 1) the Company (renamed from Varian Associates, Inc. to Varian Medical Systems, Inc. following the Spin-offs); 2) Varian, Inc. (“VI”), which became a wholly owned subsidiary of Agilent Technologies Inc. in May 2010; and 3) Varian Semiconductor Equipment Associates, Inc. (“VSEA”), which became a wholly owned subsidiary of Applied Materials, Inc. in November 2011. The Spin-offs resulted in a non cash dividend to stockholders. | |
In connection with the Spin-offs, the Company, VI and VSEA also entered into various agreements that set forth the principles to be applied in separating the companies and allocating certain related costs and specified portions of contingent liabilities. See Note 9, “Commitments and Contingencies” for additional information. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include those of VMS and its subsidiaries. Intercompany balances, transactions and stock holdings have been eliminated in consolidation. | |
Consolidation of Variable Interest Entities | ' |
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 Consolidated Financial Statements. For fiscal years 2014, 2013 and 2012, the Company did not consolidate any variable interest entities, because the Company was not a primary beneficiary. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
The Company uses the U.S. dollar predominately as the functional currency of its foreign subsidiaries. For foreign subsidiaries where the U.S. dollar is the functional currency, gains and losses from remeasurement of foreign currency balances into U.S. dollars are included in the Consolidated Statements of Earnings. The aggregate net gains (losses) resulting from foreign currency transactions and remeasurement of foreign currency balances into U.S. dollars that were included in the Consolidated Statements of Earnings were $(0.5) million, $0.7 million and $0.4 million in fiscal years 2014, 2013 and 2012, respectively. For the foreign subsidiary where the local currency is the functional currency, translation adjustments of foreign currency financial statements into U.S. dollars are recorded to a separate component of accumulated other comprehensive income (loss). See Note 8, “Derivative Instruments and Hedging Activities” regarding the Company’s hedging activities and derivative instruments. Also see Note 3, “Fair Value” regarding valuation of the Company’s derivative instruments. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. | |
Available-for-sale investment | ' |
Available-for-sale investments | |
The Company has investments in corporate debt securities from California Proton Therapy Center, LLC (“CPTC”) that are classified as available-for-sale investments, which are recorded in the Consolidated Balance Sheets at fair value. Unrealized gains and losses on these investments are included as a separate component of accumulated other comprehensive loss, net of tax, on the Consolidated Balance Sheets. The Company classifies its available-for-sale investments as short-term or long-term based on the nature of the investment, its maturity date and its availability for use in current operations. The Company monitors its available-for-sale securities for possible other-than-temporary impairment when business events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company has not identified any indication of impairment of its available-for-sale investments for fiscal years 2014, 2013 and 2012. | |
Investments in Privately Held Companies | ' |
Investments in Privately Held Companies | |
Equity investments in privately held companies in which the Company holds at least a 20% ownership interest or in which the Company has the ability to exercise significant influence are accounted for under the equity method of accounting. Equity investments in privately held companies in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are accounted for under the cost method of accounting. The Company’s equity investments in privately held companies are included in other assets on the Consolidated Balance Sheets. See Note 2, “Balance Sheet Components”. The Company monitors these equity investments for impairment and makes appropriate reductions in carrying values if the Company determines that impairment charges are required based primarily on the financial condition and near-term prospects of these companies. | |
The carrying value of equity investments in privately-held companies accounted for under the equity method of accounting was $49.7 million for both the fiscal year ended September 26, 2014 and September 27, 2013. The Company did not have any impairment loss on equity investments in privately-held companies accounted for under the equity method of accounting for fiscal years 2014, 2013 and 2012. Additionally, the Company has an investment in Augmenix, Inc. (“Augmenix”), a privately held company, which is accounted for under the cost-method. During fiscal year 2014, the Company recognized a $7.7 million charge, including a $1.4 million write-off of the option to purchase the remaining equity interest of Augmenix upon its expiry, relating to the impairment of a portion of the investment in Augmenix. Equity investments accounted for under the cost method, including Augmenix, totaled $15.0 million and $21.4 million at September 26, 2014 and September 27, 2013, respectively. | |
Concentration Of Credit Risk | ' |
Concentration of Credit Risk | |
Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents, available-for-sale investments, trade accounts receivable, notes receivable, and derivative financial instruments used in hedging activities. Cash and cash equivalents held with financial institutions may exceed the Federal Deposit Insurance Corporation insurance limits or similar limits in foreign jurisdictions. The Company has not experienced any losses on its deposits of cash and cash equivalents. With respect to its available-for-sale investments and notes receivable, the Company performs a periodic credit evaluation of CPTC, the obligor under the available-for-sale debt securities and various counterparties for notes receivable. In addition, the Company will be exposed to credit loss in the event of nonperformance by counterparties on the foreign currency forward contracts used in hedging activities. The Company transacts its foreign currency forward contracts with several large international and regional financial institutions and, therefore, does not consider the risk of nonperformance to be concentrated in any specific counterparty. The Company has not experienced any losses resulting from the failure of counterparty to meet its financial obligations under foreign currency forward contracts. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers comprising the Company’s customer base and their geographic dispersion. The Company performs ongoing credit evaluations of its customers and, except for government tenders, group purchases and orders with a letter of credit, requires its Oncology Systems, security and inspection products and VPT customers to generally provide a down payment. The Company maintains an allowance for doubtful accounts based upon the expected collectability of all accounts receivable. No single customer represented more than 10% of the accounts receivable amount for any period presented. | |
Inventories | ' |
Inventories | |
Inventories are valued at the lower of cost or market (realizable value). Excess and obsolete inventories are determined primarily based on future demand forecasts and write-downs of excess and obsolete inventories are recorded as a component of cost of revenues. Cost is computed using standard cost (which approximates actual cost) and actual cost on a first-in-first-out or average basis. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
Property, plant and equipment are stated at cost, net of accumulated depreciation. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Costs incurred for internal use software during the application development stage are capitalized in accordance with guidance on internal-use software. Internally developed software primarily includes enterprise-level business software that the Company customizes to meet its specific operational needs. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Land is not subject to depreciation, but land improvements are depreciated over fifteen years. Land leasehold rights and leasehold improvements are amortized over the lesser of their estimated useful lives or remaining lease terms. Buildings are depreciated over twenty or thirty years. Machinery and equipment are depreciated over their estimated useful lives, which range from three to seven years. Assets subject to lease are amortized over the lesser of their estimated useful lives or remaining lease terms. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are removed from the accounts. Gains or losses resulting from retirements or disposals of property, plant and equipment are included in operating expenses. | |
Goodwill and Intangible Assets | ' |
Goodwill and Intangible Assets | |
Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. Purchased intangible assets are carried at cost, net of accumulated amortization. Intangible assets with finite lives are amortized over their estimated useful lives of approximately two to seventeen years generally using the straight-line method. | |
Impairment of Long-Lived Assets, Goodwill and Intangible Assets | ' |
Impairment of Long-lived Assets, Goodwill and Intangible Assets | |
The Company reviews long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company assesses these assets for impairment based on their estimated undiscounted future cash flows. If the carrying value of the assets exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any impairment charges for long-lived assets and identifiable intangible assets in fiscal years 2014, 2013, and 2012. | |
The Company evaluates goodwill for impairment at least annually or whenever an event occurs or circumstances changes that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If the Company determines that a quantitative analysis is necessary, the impairment test for goodwill is a two-step process. Step one consists of a comparison of the fair value of a reporting unit against its carrying amount, including the goodwill allocated to each reporting unit. The Company determines the fair value of its reporting units based on a combination of income and market approaches. The income approach is based on the present value of estimated future cash flows of the reporting units and the market approach is based on a market multiple calculated for each business unit based on market data of other companies engaged in similar business. If the carrying amount of the reporting unit is in excess of its fair value, step two requires the comparison of the implied fair value of the reporting unit’s goodwill against the carrying amount of the reporting unit’s goodwill. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as an impairment loss. | |
In fiscal years 2014, 2013 and 2012, the Company performed the annual goodwill impairment testing for the four reporting units that carried goodwill namely (i) Oncology Systems, (ii) X-ray tubes and flat panel products (formerly “X-Ray Products”), (iii) Security and inspection products, and (iv) VPT, and found no impairment. Based on the most recent annual goodwill impairment testing that the Company performed as of the end of the third quarter of fiscal year 2014, the fair value of each reporting unit was substantially in excess of its carrying value. | |
Loss Contingencies | ' |
Loss Contingencies | |
From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that it believes will result in a probable loss. | |
Environmental remediation liabilities are recorded when environmental assessments and/or remediation efforts are probable, and the costs of these assessments or remediation efforts can be reasonably estimated. | |
Product Warranty | ' |
Product Warranty | |
The Company warrants most of its products for a specific period of time, usually 12 months from installation, against material defects. The Company provides for the estimated future costs of warranty obligations in cost of revenues when the related revenues are recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that the Company will incur to repair or replace product parts that fail while still under warranty. The amount of the accrued estimated warranty costs obligation for established products is primarily based on historical experience as to product failures adjusted for current information on repair costs. For new products, estimates include the historical experience of similar products, as well as reasonable allowance for warranty expenses associated with new products. On a quarterly basis, the Company reviews the accrued warranty costs and updates the historical warranty cost trends, if required. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company’s revenues are derived primarily from the sale of hardware and software products, and related services and contracts from the Company’s Oncology Systems, Imaging Components and VPT businesses. The Company recognizes its revenues net of any value added or sales tax and net of sales discounts. | |
Many of the Company’s revenue arrangements consist of multiple deliverables of its software and non-software products, as well as related services. In Oncology Systems, the linear accelerators are often sold with hardware and software accessory products that enhance efficiency and enable delivery of advanced radiotherapy and radiosurgery treatments. Many of the Oncology Systems hardware and software accessory products are also sold on a stand-alone basis. The Imaging Components business generally sells its X-ray components (including X-ray tubes, flat panel detectors and image processing tools) and security and inspection products on a stand-alone basis. However, the Imaging Components business occasionally sells its flat panel detectors, X-ray tubes and imaging processing tools as a package that is optimized for digital X-ray imaging and sells its Linatron® X-ray accelerators together with its imaging processing software and image detection products to original equipment manufacturer (“OEM”) customers that incorporate them into their inspection systems. Service contracts are often sold with Oncology Systems products, as well as with certain security and inspection products within the Imaging Components business. As discussed below, certain of the Oncology Systems products are sold with installation obligations. Delivery of different elements in a revenue arrangement often span more than one reporting period. For example, a linear accelerator may be delivered in a reporting period but the related installation is completed in a later period. Revenue related to service contracts usually starts after the expiration of the warranty period for non-software products or upon acceptance for software products. | |
For a multiple element arrangement that includes software and non-software deliverables which includes service contracts, the Company first allocates revenues among the software and non-software deliverables on a relative selling price basis. The amounts allocated to the non-software products and software are accounted for as follows: | |
Non-software Products | |
Non-software products include hardware products, software components that function together with the hardware components to deliver the product’s essential functionality, as well as service contracts. Except as described below under “Service,” the Company recognizes revenues for non-software products when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. | |
For multiple element revenue arrangements that involve non-software products, a delivered non-software element is considered as a separate unit of accounting when it has stand-alone value and there is no customer-negotiated refund or return rights for the delivered element. The allocation of revenue to all deliverables based on their relative selling prices is determined at the inception of the arrangement. The selling price for each deliverable is determined using vendor-specific objective evidence (“VSOE”) of selling price, if it exists; otherwise, third-party evidence of selling price (“TPE”). If neither VSOE nor TPE of selling price exists for a deliverable the Company uses the deliverable’s estimated selling prices (“ESP”). | |
The Company’s non-software products have stand-alone value because they are sold separately. Product installation, which is a standard process and does not involve changes to the features or capabilities of the Company’s products, is considered as a separate unit of accounting. Installation of Oncology Systems non-software products involves the Company’s testing of each product at its factory prior to the product’s delivery to ensure that the product meets the Company’s published specifications. Once these tests establish that the specifications have been met, the product is then disassembled and shipped to the customer’s site as specified in the customer contract. Risk of loss is transferred to the customer typically at the time of shipment or delivery, depending upon the terms of the contract. At the customer’s site, the product is reassembled, installed and retested in accordance with the Company’s installation procedures to ensure and demonstrate compliance with the Company’s published specifications for that product. | |
Under the terms of the Company’s standard non-software sales contracts, “acceptance” of a non-software product with installation obligations is deemed to have occurred upon the earliest of (i) completion of product installation and testing in accordance with the Company’s standard installation procedures showing compliance with the Company’s published specifications for that product, (ii) receipt by the Company of an acceptance form executed by the customer acknowledging installation and compliance with the Company’s published specifications for that product, (iii) use by the customer of the product for any purpose after its delivery or (iv) six months after the delivery of the product to the customer by the Company. The contracts allow for cancellation only by mutual agreement, thus the customer does not have a unilateral right to return the delivered non-software product. | |
The Company establishes VSOE of selling price based on the price charged for a deliverable when sold separately. Occasionally for a deliverable not yet being sold separately, the Company may initially establish VSOE by management having the relevant authority. As discussed above, many products are sold in stand-alone arrangements and accordingly have VSOE of selling price. Service contracts are sold separately through either original sale or subsequent renewal of annual contracts. The Company establishes TPE generally by evaluating the Company’s and competitors’ largely interchangeable competing products or services in stand-alone sales to similarly situated customers. The TPE for product installation is determined based on the estimated labor hours and the prevailing hourly rate charged for similar services, as well as the prices charged by outside vendors for installation of the Company’s products. For certain products for which the Company is not able to establish VSOE or TPE of selling prices, ESPs are used as the basis of their selling prices. The Company estimates selling prices following an established process that considers market conditions, including the product offerings and pricing strategies of competitors, as well as internal factors such as historical pricing practices and margin objectives. The establishment of product and service ESPs is controlled and reviewed by the appropriate level of management in all of the Company’s businesses. | |
The Company limits the amount of revenue recognized for delivered items to the amount that is not contingent upon the delivery of additional products or services. For Oncology Systems non-software products with installation obligations, the Company recognizes as revenues a portion of the product purchase price upon transfer of risk of loss and defers revenue recognition on the portion associated with product installation, provided that all other criteria for revenue recognition have been met. The portion deferred is the greater of the relative selling price of the installation services for such products or the amount of payment contractually linked to product installation services. | |
The Company does not have installation obligations for X-ray tubes, digital image detectors, spare parts, security and inspection products, and for certain hardware Oncology Systems. For the products that do not include installation obligations, the Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the terms of the contract, provided that all other revenue recognition criteria have been met. | |
Software Products | |
Except as described below under “Service,” the Company recognizes revenues for software products in accordance with the software revenue recognition guidance. The Company recognizes license revenues when all of the following criteria have been met: persuasive evidence of an arrangement exists, the vendor’s fee is fixed or determinable, collection of the related receivable is probable, delivery of the product has occurred and the Company has received from the customer an acceptance form acknowledging installation and substantial conformance with the Company’s specifications (as set forth in the user manual) for such product, or upon verification of installation when customer acceptance is not required to be received, or upon the expiration of an acceptance period, provided that all other criteria for revenue recognition have been met. | |
Revenues earned on software arrangements involving multiple elements are allocated to each element based on VSOE of fair value, which is based on the price charged when the same element is sold separately. In instances when evidence of VSOE of fair value of all undelivered elements exists, but evidence does not exist for one or more delivered elements, revenues are recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. Revenue allocated to maintenance and support is recognized ratably over the maintenance term (typically one year). | |
For those software products that are not sold stand-alone or for which VSOE cannot be established or maintained, all software revenue under the contract will be deferred until the software product(s) that lack VSOE are all delivered. If the only undelivered software element that lacks VSOE is maintenance and support then the software revenue would be recognized ratably over the term of the maintenance and support arrangement. | |
Installation of the Company’s software products may involve a certain amount of customer-specific implementation to enable the software product to function within the customer’s operating environment (i.e., with the customer’s information technology network and other hardware, with the customer’s data interfaces and with the customer’s administrative processes) and substantially in conformance with the Company’s specifications (as set forth in the user manual) for such product. With these software products, customers do not have full use of the software (i.e., functionality) until the software is installed as described above and functioning within the customer’s operating environment. Therefore, the Company recognizes 100% of such software revenues upon receipt from the customer of the Company’s acceptance form acknowledging installation and such substantial conformance, or upon verification of installation when the Company is not required to receive customer acceptance, or upon the expiration of an acceptance period, provided that all other criteria for revenue recognition have been met. | |
The Company does not have installation obligations for security and inspection and certain brachytherapy software products. For software products that do not include installation obligations, the Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the shipping terms of the contract, provided that all other criteria for revenue recognition have been met. | |
Contracts for Customized Equipment | |
Revenues related to certain highly customized image detection systems, proton therapy systems and proton therapy system commissioning contracts are recognized in accordance with contract accounting. The Company recognizes contract revenues under the percentage-of-completion method which are based on contract costs incurred to date compared with total estimated contract costs. Changes in estimates of total contract revenue, total contract cost or the extent of progress towards completion are recognized in the period in which the changes in estimates are identified. Estimated losses on contracts are recognized in the period in which the loss is identified. In circumstances in which the final outcome of a contract cannot be precisely estimated but a loss on the contract is not expected, the Company recognizes revenues under the percentage-of-completion method based on a zero profit margin until more precise estimates can be made. If and when the Company can make more precise estimates, revenues and costs of revenues are adjusted in the same period. | |
Contracts accounted for in accordance with contract accounting are billable upon achievement of milestones specified in the contracts or upon customer acceptance. Costs incurred and revenues recognized under the percentage-of-completion method in excess of customer billings are included in accounts receivable in the Consolidated Balance Sheets. Customer billings in excess of costs incurred and revenue recognized under the percentage-of-completion method, which typically reflect initial down payments, are included in advance payments from customers in the Consolidated Balance Sheets. Costs incurred and revenues recognized in excess of customer billings were $57.2 million as of September 26, 2014 and $68.1 million as of September 27, 2013. Customer billings in excess of costs incurred and revenue recognized were $52.6 million as of September 26, 2014 and $33.8 million as of September 27, 2013. | |
Service | |
Service revenues include revenues from hardware and software service contracts, bundled support arrangements, paid services and trainings, and parts that are sold by the service department. Revenues allocated to service contracts are generally recognized ratably over the period of the related contracts. For proton therapy systems service contracts, revenues subject to certain penalty provisions are deferred until reliable estimates can be made or the related penalty provisions lapse. Revenues related to services performed on a time-and-materials basis are recognized when they are earned and billable. | |
Advance Payments from Customers | ' |
Advance Payments from Customers | |
Except for government tenders, group purchases and orders with letters of credit, the Company typically requires its Oncology Systems, security and inspection and VPT customers to provide a down payment prior to transfer of risk of loss of ordered products. These payments are recorded as advance payments from customers in the Consolidated Balance Sheets. | |
Deferred Revenue | ' |
Deferred Revenue | |
Deferred revenue includes (i) the amount billed, billable or received applicable to shipment of software products but for which installation and/or final acceptance have not been completed (ii) the amount billed, billable or received applicable to non-software products for which installation and/or acceptance have not been completed and (iii) the amount billed or billable for service contracts for which the services have not been rendered. Deferred costs associated with deferred revenues are included in inventories in the Consolidated Balance Sheets. | |
Medical Device Excise Tax | ' |
Medical Device Excise Tax | |
In accordance with the Patient Protection and Affordable Care Act, effective January 1, 2013, the Company began to incur a 2.3% excise tax on sales of medical devices in the United States. The medical device excise tax is included in the cost of revenues in the Consolidated Statements of Earnings for fiscal year 2014 and 2013, net of any amounts directly billed to customers for this tax. | |
Share-Based Compensation Expense | ' |
Share-Based Compensation Expense | |
The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors, including stock options, employee stock purchases related to the Varian Medical Systems, Inc. Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”), deferred stock units, restricted stock, restricted stock units and performance units based on their fair values. | |
Share-based compensation expense recognized in the Consolidated Statements of Earnings includes compensation expense for the share-based payment awards based on the grant date fair value estimated in accordance with the guidance on share-based compensation. The Company values VMS’s stock options granted and the option component of the shares of VMS common stock purchased under the Employee Stock Purchase Plan using the Black-Scholes option-pricing model, which was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Share-based compensation expense for restricted common stock, restricted stock units and deferred stock units is measured at the stock’s fair value on the date of grant and is amortized over each award’s respective service period. The Company values performance units using the Monte Carlo simulation model on the date of grant with assumptions that includes the historical volatility of shares of VMS common stock, as well as the shares of common stock of peer companies. In addition, the Company estimates the probability that certain performance conditions that affect the vesting of performance units will be achieved, and recognizes expense only for those awards expected to vest. Both the Black-Scholes option-pricing model and the Monte Carlo simulation model require the input of certain assumptions and changes in the assumptions can materially affect the fair value estimates of share-based payment awards. | |
Share-based compensation expense recognized is based on the value of the portion of share-based payment awards that is ultimately expected to vest. The Company attributes the value of share-based compensation to expense using the straight-line method. The Company considers only the direct tax impacts of share-based compensation awards when calculating the amount of tax windfalls or shortfalls. | |
Earnings Per Share | ' |
Earnings per share | |
Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares of VMS common stock outstanding for the period. Diluted net earnings per share is computed by dividing net earnings by the sum of the weighted average number of common shares outstanding and dilutive common shares under the treasury stock method. The Company excludes potentially dilutive common shares (consisting of shares underlying stock options, restricted stock units, performance units and the Employee Stock Purchase Plan) from the computation of diluted weighted average shares outstanding if the per share value, either the exercise price of the awards or the sum of (a) the exercise price of the awards and (b) the amount of the compensation cost attributed to future services and not yet recognized and (c) the amount of tax benefit or shortfall that would be recorded in additional paid-in capital when the award becomes deductible, is greater than the average market price of the shares, because the inclusion of the shares underlying these stock awards would be antidilutive to earnings per share. | |
Shipping and Handling Costs | ' |
Shipping and Handling Costs | |
Shipping and handling costs are included as a component of cost of revenues. | |
Research and Development | ' |
Research and Development | |
Research and development costs have been expensed as incurred. These costs primarily include employees’ compensation, consulting fees, material costs and research grants. | |
Software Development Costs | ' |
Software Development Costs | |
Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No costs associated with the development of software have been capitalized as the Company believes its current software development process is essentially completed concurrent with the establishment of technological feasibility. | |
Comprehensive Earnings | ' |
Comprehensive Earnings | |
Comprehensive earnings include all changes in equity (net assets) during a period from non-owner sources. Comprehensive earnings include currency translation adjustments, change in unrealized gain or loss on derivative instruments designated as cash flow hedges, net of taxes (see Note 8, “Derivative Instruments and Hedging Activities”), and adjustments to and amortization of unrecognized actuarial gain or loss, unrecognized transition obligation and unrecognized prior service cost of our defined benefit pension and post-retirement benefit plans. See Note 10, “Retirement Plans.” | |
Taxes on Earnings | ' |
Taxes on Earnings | |
Taxes on earnings are based on pretax financial accounting income. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
a) New accounting updates recently adopted | |
In December 2011, the Financial Accounting Standards Board (“FASB”) amended Accounting Standards Codification (“ASC”) 210, “Balance Sheet,” enhancing disclosure requirements about the nature of an entity’s right to offset and related arrangements associated with its financial instruments and derivative instruments. The guidance requires the disclosure of the gross amounts subject to rights of set-off, the amounts offset in accordance with the accounting standards followed, and the related net exposure. In January 2013, the FASB clarified the scope of the guidance. The guidance became effective for the Company beginning in the first quarter of fiscal year 2014. As a result of the application of this accounting standard update, the Company has provided additional disclosures in the accompanying notes to the consolidated financial statements. The adoption of this amendment did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. | |
In February 2013, the FASB issued an accounting standard update to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. The Company adopted this guidance in the first quarter of fiscal year 2014. As a result of the application of this accounting standard update, the Company has provided additional disclosures in the accompanying notes to the consolidated financial statements. The adoption of this amendment did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. | |
b) Recent accounting standards or updates not yet effective | |
In May 2014, the FASB issued an amendment to its accounting guidance related to revenue recognition. The amendment sets forth a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. The amendment requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance will be effective for the Company beginning in its first quarter of fiscal year 2018. Early adoption is not permitted. The amendment can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures. The Company is evaluating the impact of adopting this guidance to its consolidated financial statements. | |
In June 2014, the FASB issued an amendment to its accounting guidance related to stock-based compensation. The amendment requires that a performance target that could be achieved after the requisite service period be treated as a performance condition that affects vesting, rather than a condition that affects the grant-date fair value. The new guidance will be effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is permitted. The amendment can be applied on a prospective basis to all share-based payments granted or modified on or after the effective date. Entities will also be provided an option to apply the guidance on a modified retrospective basis to existing awards. The Company is evaluating the impact of adopting this guidance to its consolidated financial statements. |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Available-for-sale Securities | ' | |||||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Available-for-sale investments: | ||||||||
Corporate debt securities: | ||||||||
Amortized cost | $ | 75.6 | $ | 62.7 | ||||
Unrealized gain (loss) | - | - | ||||||
Fair value | $ | 75.6 | $ | 62.7 | ||||
Components of Inventories | ' | |||||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Inventories: | ||||||||
Raw materials and parts | $ | 296.1 | $ | 276.6 | ||||
Work-in-process | 124.5 | 91.6 | ||||||
Finished goods | 151.7 | 167 | ||||||
Total inventories | $ | 572.3 | $ | 535.2 | ||||
Components of Property, Plant and Equipment | ' | |||||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Property, plant and equipment: | ||||||||
Land and land improvements | $ | 45.1 | $ | 44.6 | ||||
Buildings and leasehold improvements | 260.8 | 242.2 | ||||||
Machinery and equipment | 424 | 380.8 | ||||||
Construction in progress | 44.7 | 46.6 | ||||||
Assets subject to lease | 1.4 | 1.8 | ||||||
776 | 716 | |||||||
Accumulated depreciation and amortization | (438.0 | ) | (400.7 | ) | ||||
Property, plant and equipment, net | $ | 338 | $ | 315.3 | ||||
Other Assets | ' | |||||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Other assets: | ||||||||
DCP assets | $ | 59.6 | $ | 55.2 | ||||
Investments in privately-held companies | 64.7 | 71.1 | ||||||
Long-term receivables | 58.5 | 26 | ||||||
Intangible assets | 40.9 | 23.4 | ||||||
Long-term deferred tax assets | 11.5 | 10.5 | ||||||
Other | 49.3 | 36.8 | ||||||
Total other assets | $ | 284.5 | $ | 223 | ||||
Components of Accrued Expenses | ' | |||||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Accrued expenses: | ||||||||
Accrued compensation and benefits | $ | 121.4 | $ | 104.8 | ||||
DCP liabilities | 57.9 | 54.6 | ||||||
Income taxes payable | 30.9 | 40 | ||||||
Current deferred tax liabilities | 10.8 | 7.6 | ||||||
Other | 103.4 | 113.9 | ||||||
Total accrued expenses | $ | 324.4 | $ | 320.9 | ||||
Components of Other Long-Term Liabilities | ' | |||||||
September 26, | September 27, | |||||||
(In millions) | 2014 | 2013 | ||||||
Other long-term liabilities: | ||||||||
Long-term income taxes payable | $ | 55.2 | $ | 41.9 | ||||
Long-term deferred income taxes | 31.5 | 12 | ||||||
Other | 65 | 90.1 | ||||||
Total other long-term liabilities | $ | 151.7 | $ | 144 | ||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and 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 Measurement Using | |||||||||||||||||
Type of Instruments | Quoted Prices in | Significant Other | Significant | Total | |||||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | Balance | ||||||||||||||
for Identical Instruments | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In millions) | |||||||||||||||||
Assets at September 26, 2014: | |||||||||||||||||
Available-for-sale corporate debt securities | $ | - | $ | - | $ | 75.6 | $ | 75.6 | |||||||||
Derivative assets | - | 1.5 | - | 1.5 | |||||||||||||
Total assets measured at fair value | $ | - | $ | 1.5 | $ | 75.6 | $ | 77.1 | |||||||||
Liabilities at September 26, 2014: | |||||||||||||||||
Contingent consideration | $ | - | $ | - | $ | (7.5 | ) | $ | (7.5 | ) | |||||||
Total liabilities measured at fair value | $ | - | $ | - | $ | (7.5 | ) | $ | (7.5 | ) | |||||||
Assets at September 27, 2013: | |||||||||||||||||
Money market funds | $ | 50 | $ | - | $ | - | $ | 50 | |||||||||
Available-for-sale corporate debt securities | - | - | 62.7 | 62.7 | |||||||||||||
Option to purchase a privately-held company | - | - | 1.4 | 1.4 | |||||||||||||
Total assets measured at fair value | $ | 50 | $ | - | $ | 64.1 | $ | 114.1 | |||||||||
Liabilities at September 27, 2013: | |||||||||||||||||
Derivative liabilities | $ | - | $ | (1.1 | ) | $ | - | $ | (1.1 | ) | |||||||
Contingent consideration | - | - | (2.5 | ) | (2.5 | ) | |||||||||||
Total liabilities measured at fair value | $ | - | $ | (1.1 | ) | $ | (2.5 | ) | $ | (3.6 | ) | ||||||
Reconciliation for Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table presents the reconciliation for all assets and liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||||
(In millions) | Available-For-Sale | Contingent | Option to Purchase | ||||||||||||||
Corporate Debt | Consideration | a Privately-Held | |||||||||||||||
Securities | Company | ||||||||||||||||
Balance at September 27, 2013 | $ | 62.7 | $ | (2.5 | ) | $ | 1.4 | ||||||||||
Additions (1) | 51 | (6.2 | ) | ||||||||||||||
Sale of portion of corporate debt security (2) | (38.1 | ) | - | ||||||||||||||
Settlements (3) | - | 0.5 | |||||||||||||||
Change in fair value recognized in earnings | - | 0.7 | (1.4 | ) | |||||||||||||
Balance at September 26, 2014 | $ | 75.6 | $ | (7.5 | ) | $ | - | ||||||||||
1 | Amounts reported under Available-For-Sale Corporate Debt Securities include accrued interest. | ||||||||||||||||
2 | Refer to Note 16 “CPTC Loans” | ||||||||||||||||
3 | Amounts reported under “Contingent Consideration” represent cash payments to settle contingent consideration liabilities. | ||||||||||||||||
Assets Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||
For the fiscal year ended September 26, 2014, the Company’s assets that were measured at fair value on a nonrecurring basis are summarized below: | |||||||||||||||||
(in millions) | Carrying | Total Losses for | |||||||||||||||
Value as of | Fiscal Year 2014 | ||||||||||||||||
End of Period | |||||||||||||||||
Equity Investment in Augmenix | $ | 7.3 | $ | 6.3 | |||||||||||||
Financing_Receivables_and_Allo1
Financing Receivables and Allowance for Credit Losses (Tables) | 12 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Receivables [Abstract] | ' | |||||||||||
Financing Receivables and Allowance for Credit Losses | ' | |||||||||||
The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year are presented in the following table: | ||||||||||||
September 26, | September 27, | September 28, | ||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Accounts receivable with contractual maturities of more than one year: | ||||||||||||
Gross amount | $ | 35.4 | $ | 28 | $ | 29.9 | ||||||
Allowance for doubtful accounts | (3.0 | ) | (3.0 | ) | (3.0 | ) | ||||||
Net amount | $ | 32.4 | $ | 25 | $ | 26.9 | ||||||
Amount past due | $ | 3.7 | $ | 3.1 | $ | 4.3 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Activity of Goodwill by Reportable Operating Segment | ' | |||||||||||||||
The following table reflects the activity of goodwill by reportable operating segment: | ||||||||||||||||
(In millions) | Oncology | Imaging | Other | Total | ||||||||||||
Systems | Components | |||||||||||||||
Balance at September 28, 2012 | $ | 132 | $ | 33.2 | $ | 57 | $ | 222.2 | ||||||||
Foreign currency translation adjustments | - | - | 3.1 | 3.1 | ||||||||||||
Balance at September 27, 2013 | 132 | 33.2 | 60.1 | 225.3 | ||||||||||||
Acquisition of business | 16.3 | 2.8 | - | 19.1 | ||||||||||||
Foreign currency translation adjustments | - | - | (3.8 | ) | (3.8 | ) | ||||||||||
Balance at September 26, 2014 | $ | 148.3 | $ | 36 | $ | 56.3 | $ | 240.6 | ||||||||
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | ' | |||||||||||||||
The following table reflects the gross carrying amount and accumulated amortization of the Company’s finite-lived intangible assets included in other assets in the Consolidated Balance Sheets: | ||||||||||||||||
September 26, | September 27, | |||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Intangible Assets: | ||||||||||||||||
Acquired existing technology | $ | 54.6 | $ | 36.6 | ||||||||||||
Patents, licenses and other | 28.8 | 29 | ||||||||||||||
Customer contracts and supplier relationship | 12.4 | 10.9 | ||||||||||||||
Accumulated amortization | (56.9 | ) | (53.1 | ) | ||||||||||||
Net carrying amount | $ | 38.9 | $ | 23.4 | ||||||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Summary of Long-term Debt Outstanding | ' | |||||||
Long-term debt outstanding is summarized as follows: | ||||||||
(In millions) | September 26, | September 27, | ||||||
2014 | 2013 | |||||||
Unsecured term loan, fixed interest rate 6.70% due in one installment and payable in fiscal year 2014 | $ | - | $ | 6.3 | ||||
2013 Term Loan Facility, variable interest rate (1.28% and 1.31% at September 26, 2014 and September 27, 2013, respectively) payable quarterly in installments with maturity date in fiscal year 2018 | 437.5 | 500 | ||||||
437.5 | 506.3 | |||||||
Less: current maturities of long-term debt | (50.0 | ) | (56.3 | ) | ||||
Long-term debt | $ | 387.5 | $ | 450 | ||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||||
Fair Value of Derivative Instruments Reported in Consolidated Balance Sheets | ' | |||||||||||||||||||||||||
The fair values of derivative instruments reported on the Company’s Consolidated Balance Sheets were as follows: | ||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
26-Sep-14 | 27-Sep-13 | 26-Sep-14 | 27-Sep-13 | |||||||||||||||||||||||
(In millions) | Balance Sheet Location | Fair Value | Fair Value | Balance Sheet Location | Fair Value | Fair Value | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | $ | 1.5 | $ | - | Accrued liabilities | $ | - | $ | 1.1 | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | - | - | Accrued liabilities | - | - | ||||||||||||||||||||
Total derivatives | $ | 1.5 | $ | - | $ | - | $ | 1.1 | ||||||||||||||||||
Outstanding Foreign Currency Forward Contracts | ' | |||||||||||||||||||||||||
The Company had the following outstanding foreign currency forward contracts: | ||||||||||||||||||||||||||
26-Sep-14 | ||||||||||||||||||||||||||
(In millions) | Notional Value Sold | Notional | ||||||||||||||||||||||||
Value Purchased | ||||||||||||||||||||||||||
Australian dollar | $ | 20.1 | $ | - | ||||||||||||||||||||||
Canadian dollar | - | 9.6 | ||||||||||||||||||||||||
Danish krone | 4.3 | - | ||||||||||||||||||||||||
Euro | 156.1 | - | ||||||||||||||||||||||||
Hungarian forint | 0.8 | - | ||||||||||||||||||||||||
Indian rupee | 2.9 | - | ||||||||||||||||||||||||
Japanese yen | 53.6 | - | ||||||||||||||||||||||||
Norwegian krone | 2.8 | - | ||||||||||||||||||||||||
Swedish krona | 8 | - | ||||||||||||||||||||||||
Swiss franc | - | 75.2 | ||||||||||||||||||||||||
Totals | $ | 248.6 | $ | 84.8 | ||||||||||||||||||||||
Effective Portion of Foreign Currency Forward Contracts Designated as Cash Flow Hedges | ' | |||||||||||||||||||||||||
The following table presents the amounts, before tax, recognized in accumulated other comprehensive loss in the Consolidated Balance Sheets and in the Consolidated Statements of Earnings that are related to the effective portion of the foreign currency forward contracts designated as cash flow hedges: | ||||||||||||||||||||||||||
Gain Reclassified from Accumulated Other | ||||||||||||||||||||||||||
Gain Recognized in Other Comprehensive Income | Location of Gain | Comprehensive Income into Net Earnings | ||||||||||||||||||||||||
(Effective Portion) | Reclassified from Accumulated | (Effective Portion) | ||||||||||||||||||||||||
Fiscal Years | Other Comprehensive Income | Fiscal Years | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | into Net Earnings (Effective Portion) | 2014 | 2013 | 2012 | |||||||||||||||||||
Foreign currency forward contracts | $ | 3.9 | $ | 0.5 | $ | 1.4 | Revenues | $ | 1.3 | $ | 2.5 | $ | 0.6 | |||||||||||||
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 Consolidated Statements of Earnings related to the foreign currency forward contracts that are not designated as hedging instruments. | ||||||||||||||||||||||||||
Location of Gain Recognized in Income on Derivative | Amount of Gain Recognized | |||||||||||||||||||||||||
in Net Earnings on Derivative | ||||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Selling, general and administrative expenses | $ | 13.7 | $ | 9.6 | $ | 5 | ||||||||||||||||||||
Cash Flow Hedging | ' | |||||||||||||||||||||||||
Outstanding Foreign Currency Forward Contracts | ' | |||||||||||||||||||||||||
The Company had the following outstanding foreign currency forward contracts that were entered into to hedge forecasted revenues and designated as cash flow hedges: | ||||||||||||||||||||||||||
September 26, | ||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||
(In millions) | Notional Value Sold | |||||||||||||||||||||||||
Euro | $ | 26.9 | ||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | |||||||||||
Accrued Product Warranty | ' | |||||||||||
The following table reflects the changes in the Company’s accrued product warranty: | ||||||||||||
Fiscal Years | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Accrued product warranty, at beginning of period | $ | 53.2 | $ | 52.8 | ||||||||
Charged to cost of revenues | 51.9 | 57.7 | ||||||||||
Actual product warranty expenditures | (55.8 | ) | (57.3 | ) | ||||||||
Accrued product warranty, at end of period | $ | 49.3 | $ | 53.2 | ||||||||
Schedule of Liabilities for Future Environmental Costs | ' | |||||||||||
The table that follows presents information about the Company’s liabilities for future environmental costs at September 26, 2014, based on estimates as of that date. | ||||||||||||
(In millions) | Recurring | Non-Recurring | Total | |||||||||
Costs | Costs | Anticipated | ||||||||||
Future Costs | ||||||||||||
Fiscal Years: | ||||||||||||
2015 | $ | 0.7 | $ | 1.6 | $ | 2.3 | ||||||
2016 | 0.6 | 0.5 | 1.1 | |||||||||
2017 | 0.5 | 0.5 | 1 | |||||||||
2018 | 0.6 | 0.2 | 0.8 | |||||||||
2019 | 0.7 | 0.6 | 1.3 | |||||||||
Thereafter | 5.2 | 1.4 | 6.6 | |||||||||
Total costs | $ | 8.3 | $ | 4.8 | 13.1 | |||||||
Less imputed interest | 3.3 | |||||||||||
Reserve amount | $ | 9.8 | ||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||
Retirement Plans [Line Items] | ' | |||||||||||||||||||||||
Schedule of Funded Status of the Defined Benefit Pension and Post-Retirement Benefit Plans | ' | |||||||||||||||||||||||
The following table presents the funded status of the defined benefit pension and post-retirement benefit plans: | ||||||||||||||||||||||||
Defined Benefit Plans | Post-Retirement Benefit Plan | |||||||||||||||||||||||
(In millions) | September 26, 2014 | September 27, 2013 | September 26, 2014 | September 27, 2013 | ||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation - beginning of fiscal year | $ | 195.7 | $ | 181.1 | $ | 4.8 | $ | 5.6 | ||||||||||||||||
Service cost | 4.1 | 4.8 | - | - | ||||||||||||||||||||
Interest cost | 6.1 | 5.2 | 0.2 | 0.2 | ||||||||||||||||||||
Plan participants’ contributions | 7.8 | 10.9 | - | - | ||||||||||||||||||||
Plan amendment | - | 0.5 | (3.3 | ) | - | |||||||||||||||||||
Plan settlement | (7.8 | ) | (4.7 | ) | - | - | ||||||||||||||||||
Actuarial (gain) loss | 14.2 | (0.7 | ) | 0.2 | (0.5 | ) | ||||||||||||||||||
Foreign currency changes | (7.7 | ) | 3.2 | - | - | |||||||||||||||||||
Benefit and expense payments | (4.8 | ) | (4.6 | ) | (0.5 | ) | (0.5 | ) | ||||||||||||||||
Benefit obligation - end of fiscal year | $ | 207.6 | $ | 195.7 | $ | 1.4 | $ | 4.8 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Plan assets - beginning of fiscal year | $ | 180.8 | $ | 142.6 | $ | - | $ | - | ||||||||||||||||
Employer contributions | 7.2 | 22.2 | 0.5 | 0.5 | ||||||||||||||||||||
Actual return on plan assets | 11.8 | 11.6 | - | - | ||||||||||||||||||||
Plan participants’ contributions | 7.8 | 10.9 | - | - | ||||||||||||||||||||
Plan settlement | (7.8 | ) | (4.7 | ) | - | - | ||||||||||||||||||
Foreign currency changes | (6.4 | ) | 2.8 | - | - | |||||||||||||||||||
Benefit and expense payments | (4.8 | ) | (4.6 | ) | (0.5 | ) | (0.5 | ) | ||||||||||||||||
Plan assets - end of fiscal year | $ | 188.6 | $ | 180.8 | $ | - | $ | - | ||||||||||||||||
Funded status | $ | (19.0 | ) | $ | (14.9 | ) | $ | (1.4 | ) | $ | (4.8 | ) | ||||||||||||
Amounts recognized within the consolidated balance sheet: | ||||||||||||||||||||||||
Long-term assets | $ | 5.3 | $ | 3.1 | $ | - | $ | - | ||||||||||||||||
Current liabilities | - | - | (0.3 | ) | (0.5 | ) | ||||||||||||||||||
Long-term liabilities | (24.3 | ) | (18.0 | ) | (1.1 | ) | (4.3 | ) | ||||||||||||||||
Net amount recognized | $ | (19.0 | ) | $ | (14.9 | ) | $ | (1.4 | ) | $ | (4.8 | ) | ||||||||||||
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Before Tax) | ' | |||||||||||||||||||||||
The following table presents the amounts recognized in accumulated other comprehensive loss (before tax): | ||||||||||||||||||||||||
Defined Benefit Plans | Post-Retirement Benefit Plan | |||||||||||||||||||||||
(In millions) | September 26, 2014 | September 27, 2013 | September 26, 2014 | September 27, 2013 | ||||||||||||||||||||
Prior service credit (cost) | $ | (0.6 | ) | $ | (0.7 | ) | $ | 3.3 | $ | - | ||||||||||||||
Net gain (loss) | (55.7 | ) | (49.4 | ) | (0.2 | ) | 0.1 | |||||||||||||||||
Accumulated other comprehensive gain (loss) | $ | (56.3 | ) | $ | (50.1 | ) | $ | 3.1 | $ | 0.1 | ||||||||||||||
Schedule of Defined Benefit Pension Plan Balances with Accumulated Benefit Obligation Exceeded Fair Value of Plan Assets | ' | |||||||||||||||||||||||
The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those defined benefit pension plans where accumulated benefit obligation exceeded the fair value of plan assets: | ||||||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||||||
(In millions) | September 26, 2014 | September 27, 2013 | ||||||||||||||||||||||
Projected benefit obligation | $ | 16.9 | $ | - | ||||||||||||||||||||
Accumulated benefit obligation | $ | 15.8 | $ | - | ||||||||||||||||||||
Fair value of plan assets | $ | 14.7 | $ | - | ||||||||||||||||||||
Schedule of Net Periodic Benefit Costs | ' | |||||||||||||||||||||||
The following table shows the components of the Company’s net periodic benefit costs and the other amounts recognized in other comprehensive (income) loss, before tax, related to the Company’s defined benefit pension plans and the Company’s post-retirement benefit plan: | ||||||||||||||||||||||||
Defined Benefit Plans | Post-Retirement Benefit Plan | |||||||||||||||||||||||
Fiscal Years | Fiscal Years | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Net Periodic Benefit Costs: | ||||||||||||||||||||||||
Service cost | $ | 4.1 | $ | 4.8 | $ | 4.3 | $ | - | $ | - | $ | - | ||||||||||||
Interest cost | 6.1 | 5.2 | 5.3 | 0.2 | 0.2 | 0.2 | ||||||||||||||||||
Loss due to settlement or curtailment | 1.8 | 1 | 0.9 | - | - | - | ||||||||||||||||||
Expected return on assets | (7.8 | ) | (5.7 | ) | (5.3 | ) | - | - | - | |||||||||||||||
Amortization of prior service cost | 0.2 | 0.2 | 0.2 | - | - | - | ||||||||||||||||||
Recognized actuarial loss | 2.1 | 2.7 | 2.5 | - | - | 0.1 | ||||||||||||||||||
Net periodic benefit cost | 6.5 | 8.2 | 7.9 | 0.2 | 0.2 | 0.3 | ||||||||||||||||||
Other Amounts Recognized in Other Comprehensive (Income) Loss: | ||||||||||||||||||||||||
New prior service (credit) cost | - | 0.5 | - | (3.3 | ) | - | - | |||||||||||||||||
Net (gain) loss arising during the year | 10.3 | (6.6 | ) | 9.9 | 0.2 | (0.4 | ) | (0.1 | ) | |||||||||||||||
Amortization of prior service cost | (0.2 | ) | (0.2 | ) | (0.2 | ) | - | - | - | |||||||||||||||
Amortization, settlement and curtailment of net actuarial loss | (3.9 | ) | (3.7 | ) | (3.5 | ) | - | (0.1 | ) | (0.1 | ) | |||||||||||||
Total recognized in other comprehensive (income) loss | 6.2 | (10.0 | ) | 6.2 | (3.1 | ) | (0.5 | ) | (0.2 | ) | ||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 12.7 | $ | (1.8 | ) | $ | 14.1 | $ | (2.9 | ) | $ | (0.3 | ) | $ | 0.1 | |||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) Expected to be Recognized as Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during fiscal year 2015 are as follows: | ||||||||||||||||||||||||
(In millions) | Defined Benefit Plans | Post-Retirement Benefit Plan | Total | |||||||||||||||||||||
Prior service credit (cost) | $ | (0.2 | ) | $ | 0.5 | $ | 0.3 | |||||||||||||||||
Net gain (loss) | (2.4 | ) | - | (2.4 | ) | |||||||||||||||||||
Total | $ | (2.6 | ) | $ | 0.5 | $ | (2.1 | ) | ||||||||||||||||
Schedule of Assumed Healthcare Cost Trend Rates for Post-Retirement Benefit Plan | ' | |||||||||||||||||||||||
The assumed healthcare cost trend rates for the post-retirement benefit plan are as follows: | ||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||
Assumed Health Care Trend Rates | 2014 | 2013 | 2012 | |||||||||||||||||||||
Post-retirement benefit plan: | ||||||||||||||||||||||||
Current medical cost trend rate | 8.2 | % | 8.2 | % | 9.9 | % | ||||||||||||||||||
Ultimate medical cost trend rate | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||
Schedule of Fair Values of Plan Assets | ' | |||||||||||||||||||||||
The following table presents the Company’s defined benefit pension plans’ major asset categories, their associated fair values, as well as the actual allocation of equity, debt and fixed income, real estate and all other types of investments: | ||||||||||||||||||||||||
(In millions) | Quoted Prices | Significant | Significant | Total | ||||||||||||||||||||
in Active Markets for | Observable | Unobservable Inputs | ||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||
As of September 26, 2014: | ||||||||||||||||||||||||
Investment funds: | ||||||||||||||||||||||||
Mutual funds - equities | $ | - | $ | 51.7 | $ | - | $ | 51.7 | ||||||||||||||||
Mutual funds - debt | - | 32.5 | - | 32.5 | ||||||||||||||||||||
Mutual funds - real estate | - | 3.6 | - | 3.6 | ||||||||||||||||||||
Assets held by insurance company: | ||||||||||||||||||||||||
Insurance contracts | - | 99.1 | - | 99.1 | ||||||||||||||||||||
Cash and cash equivalents | 1.7 | - | - | 1.7 | ||||||||||||||||||||
Total | $ | 1.7 | $ | 186.9 | $ | - | $ | 188.6 | ||||||||||||||||
As of September 27, 2013: | ||||||||||||||||||||||||
Investment funds: | ||||||||||||||||||||||||
Mutual funds - equities | $ | - | $ | 49.9 | $ | - | $ | 49.9 | ||||||||||||||||
Mutual funds - debt | - | 26.1 | - | 26.1 | ||||||||||||||||||||
Mutual funds - real estate | - | 3.6 | - | 3.6 | ||||||||||||||||||||
Assets held by insurance company: | ||||||||||||||||||||||||
Insurance contracts | - | 86.3 | - | 86.3 | ||||||||||||||||||||
Cash and cash equivalents | 14.9 | - | - | 14.9 | ||||||||||||||||||||
Total | $ | 14.9 | $ | 165.9 | $ | - | $ | 180.8 | ||||||||||||||||
Schedule Of Estimated Future Benefit Payments | ' | |||||||||||||||||||||||
Estimated future benefit payments at September 26, 2014 were as follows: | ||||||||||||||||||||||||
(In millions) | Defined Benefit Plans | Post-Retirement Benefit Plan | Total | |||||||||||||||||||||
Fiscal Years: | ||||||||||||||||||||||||
2015 | $ | 5.3 | $ | 0.3 | $ | 5.6 | ||||||||||||||||||
2016 | 4.9 | 0.2 | 5.1 | |||||||||||||||||||||
2017 | 7.2 | 0.2 | 7.4 | |||||||||||||||||||||
2018 | 7.3 | 0.1 | 7.4 | |||||||||||||||||||||
2019 | 7.9 | 0.1 | 8 | |||||||||||||||||||||
2020-2024 | 38 | 0.4 | 38.4 | |||||||||||||||||||||
Total | $ | 70.6 | $ | 1.3 | $ | 71.9 | ||||||||||||||||||
Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
Retirement Plans [Line Items] | ' | |||||||||||||||||||||||
Schedule of Assumptions Used to Determine Defined Benefit Pension and Post-Retirement Benefit Plans | ' | |||||||||||||||||||||||
The assumptions used to determine net periodic benefit cost and to compute the expected long-term return on assets for the Company’s defined benefit pension and post-retirement benefit plans were as follows: | ||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||
Net Periodic Benefit Cost | 2014 | 2013 | 2012 | |||||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||||||
Discount rate | 3.11 | % | 2.94 | % | 3.38 | % | ||||||||||||||||||
Rate of compensation increase | 2.51 | % | 2.37 | % | 2.48 | % | ||||||||||||||||||
Expected long-term return on assets | 4.21 | % | 3.82 | % | 4.02 | % | ||||||||||||||||||
Post-retirement benefit plan: | ||||||||||||||||||||||||
Discount rate | 3.8 | % | 3 | % | 3.9 | % | ||||||||||||||||||
Benefit Obligation | ' | |||||||||||||||||||||||
Retirement Plans [Line Items] | ' | |||||||||||||||||||||||
Schedule of Assumptions Used to Determine Defined Benefit Pension and Post-Retirement Benefit Plans | ' | |||||||||||||||||||||||
The assumptions used to measure the benefit obligations for the Company’s defined benefit pension and post-retirement benefit plans were as follows: | ||||||||||||||||||||||||
Benefit Obligation | 26-Sep-14 | 27-Sep-13 | ||||||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||||||
Discount rate | 2.77 | % | 3.11 | % | ||||||||||||||||||||
Rate of compensation increase | 2.45 | % | 2.51 | % | ||||||||||||||||||||
Post-retirement benefit plan: | ||||||||||||||||||||||||
Discount rate | 3.1 | % | 3.8 | % | ||||||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
(In millions) | Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | Cumulative Translation Adjustment and Other | Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||
Balance at September 30, 2011 | $ | (43,120 | ) | $ | (7 | ) | $ | (3,721 | ) | $ | (46,848 | ) | ||||
Other comprehensive earnings before reclassifications | (8,837 | ) | 1,441 | (4,808 | ) | (12,204 | ) | |||||||||
Amounts reclassified out of other comprehensive earnings | 2,822 | (579 | ) | - | 2,243 | |||||||||||
Tax benefit (expense) | 512 | (324 | ) | - | 188 | |||||||||||
Balance at September 28, 2012 | (48,623 | ) | 531 | (8,529 | ) | (56,621 | ) | |||||||||
Other comprehensive earnings before reclassifications | 7,545 | 509 | 9,230 | 17,284 | ||||||||||||
Amounts reclassified out of other comprehensive earnings | 2,950 | (2,463 | ) | - | 487 | |||||||||||
Tax benefit (expense) | (1,953 | ) | 732 | - | (1,221 | ) | ||||||||||
Balance at September 27, 2013 | (40,081 | ) | (691 | ) | 701 | (40,071 | ) | |||||||||
Other comprehensive earnings before reclassifications | (5,429 | ) | 3,925 | (16,217 | ) | (17,721 | ) | |||||||||
Amounts reclassified out of other comprehensive earnings | 2,316 | (1,281 | ) | - | 1,035 | |||||||||||
Tax benefit (expense) | (866 | ) | (988 | ) | - | (1,854 | ) | |||||||||
Balance at September 26, 2014 | $ | (44,060 | ) | $ | 965 | $ | (15,516 | ) | $ | (58,611 | ) | |||||
Schedule of Amounts Reclassified Out of Other Comprehensive Earnings | ' | |||||||||||||||
The amounts reclassified out of other comprehensive earnings into the Consolidated Statements of Earnings, with line item location, during each period were as follows (in thousands): | ||||||||||||||||
Fiscal Years | ||||||||||||||||
Comprehensive Earnings Components | 2014 | 2013 | 2012 | Line Item in Statements of Earnings | ||||||||||||
Unrealized gains and (losses) on defined benefit pension and post-retirement benefit plans | $ | (2,316 | ) | $ | (2,950 | ) | $ | (2,822 | ) | Cost of revenues & Operating expenses | ||||||
Unrealized gains and (losses) on cash flow hedging instruments | 1,281 | 2,463 | 579 | Revenues | ||||||||||||
Total amounts reclassified out of other comprehensive earnings | $ | (1,035 | ) | $ | (487 | ) | $ | (2,243 | ) | |||||||
Employee_Stock_Plans_Tables
Employee Stock Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value of Employee Stock Option Plans with Weighted Average Assumptions | ' | |||||||||||||||||||||||||||||||
The fair value of options granted and the option component of the shares purchased under the Employee Stock Purchase Plan (which is described further below) shares were estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: | ||||||||||||||||||||||||||||||||
Employee Stock Plans | Employee Stock Purchase Plans | |||||||||||||||||||||||||||||||
Fiscal Years | Fiscal Years | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Expected term (in years) | 4.13 | 4.76 | 4.64 | 0.5 | 0.5 | 0.5 | ||||||||||||||||||||||||||
Risk-free interest rate | 1.2 | % | 0.6 | % | 0.8 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||
Expected volatility | 24.6 | % | 32.2 | % | 36.9 | % | 12.8 | % | 16.5 | % | 19.3 | % | ||||||||||||||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||
Weighted average fair value at grant date | $ | 18.24 | $ | 19.73 | $ | 18.75 | $ | 14.2 | $ | 12.95 | $ | 12.17 | ||||||||||||||||||||
Net Share-Based Compensation Expense | ' | |||||||||||||||||||||||||||||||
The table below summarizes the effect of recording share-based compensation expense: | ||||||||||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Cost of revenues - Product | $ | 3,323 | $ | 4,088 | $ | 4,419 | ||||||||||||||||||||||||||
Cost of revenues - Service | 4,658 | 3,460 | 1,472 | |||||||||||||||||||||||||||||
Research and development | 6,194 | 5,993 | 6,378 | |||||||||||||||||||||||||||||
Selling, general and administrative | 25,461 | 29,096 | 35,606 | |||||||||||||||||||||||||||||
Total share-based compensation expense | 39,636 | 42,637 | 47,875 | |||||||||||||||||||||||||||||
Taxes on earnings | (12,062 | ) | (12,989 | ) | (15,406 | ) | ||||||||||||||||||||||||||
Net share-based compensation expense | $ | 27,574 | $ | 29,648 | $ | 32,469 | ||||||||||||||||||||||||||
Summary the Effect of Recording Pre-Tax Share-Based Compensation Expense for Equity Incentive Awards | ' | |||||||||||||||||||||||||||||||
The table below summarizes the effect of recording pre-tax share-based compensation expense for equity incentive awards: | ||||||||||||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Stock options | $ | 9,489 | $ | 10,577 | $ | 12,169 | ||||||||||||||||||||||||||
Restricted stock units and restricted stock awards(1) | 26,576 | 28,229 | 32,527 | |||||||||||||||||||||||||||||
Employee stock purchase plan | 3,571 | 3,831 | 3,179 | |||||||||||||||||||||||||||||
Total share-based compensation expense | $ | 39,636 | $ | 42,637 | $ | 47,875 | ||||||||||||||||||||||||||
— | Restricted stock units and restricted stock awards include performance units and deferred stock units. | |||||||||||||||||||||||||||||||
Summary of Share-Based Awards Available for Grant | ' | |||||||||||||||||||||||||||||||
A summary of share-based awards available for grant is as follows: | ||||||||||||||||||||||||||||||||
(In thousands) | Shares Available for Grant | |||||||||||||||||||||||||||||||
Balance at September 30, 2011 | 8,424 | |||||||||||||||||||||||||||||||
Authorized | 6,000 | |||||||||||||||||||||||||||||||
Granted | (2,680 | ) | ||||||||||||||||||||||||||||||
Cancelled or expired | 124 | |||||||||||||||||||||||||||||||
Balance at September 28, 2012 | 11,868 | |||||||||||||||||||||||||||||||
Granted | (2,045 | ) | ||||||||||||||||||||||||||||||
Cancelled or expired | 102 | |||||||||||||||||||||||||||||||
Balance at September 27, 2013 | 9,925 | |||||||||||||||||||||||||||||||
Granted | (1,934 | ) | ||||||||||||||||||||||||||||||
Cancelled or expired | 177 | |||||||||||||||||||||||||||||||
Balance at September 26, 2014 | 8,168 | |||||||||||||||||||||||||||||||
Activity Under Employee Stock Plans | ' | |||||||||||||||||||||||||||||||
Activity under the Company’s employee stock plans related to stock options is presented below: | ||||||||||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | Number of Shares | Weighted Average Exercise Price | ||||||||||||||||||||||||||||||
Balance at September 30, 2011 | 6,917 | $ | 45.9 | |||||||||||||||||||||||||||||
Granted | 743 | 58.5 | ||||||||||||||||||||||||||||||
Canceled, expired or forfeited | (30 | ) | 55.73 | |||||||||||||||||||||||||||||
Exercised | (1,171 | ) | 40.18 | |||||||||||||||||||||||||||||
Balance at September 28, 2012 | 6,459 | 48.34 | ||||||||||||||||||||||||||||||
Granted | 613 | 68.93 | ||||||||||||||||||||||||||||||
Canceled, expired or forfeited | (20 | ) | 60.81 | |||||||||||||||||||||||||||||
Exercised | (2,567 | ) | 44.97 | |||||||||||||||||||||||||||||
Balance at September 27, 2013 (3,655 options exercisable at a weighted average exercise price of $50.18) | 4,485 | 53.02 | ||||||||||||||||||||||||||||||
Granted | 625 | 83.5 | ||||||||||||||||||||||||||||||
Canceled, expired or forfeited | (46 | ) | 72.35 | |||||||||||||||||||||||||||||
Exercised | (1,721 | ) | 49.01 | |||||||||||||||||||||||||||||
Balance at September 26, 2014 | 3,343 | $ | 60.53 | |||||||||||||||||||||||||||||
Options Outstanding And Exercisable | ' | |||||||||||||||||||||||||||||||
The following table summarizes information related to stock options outstanding and exercisable under the Company’s employee stock plans at September 26, 2014: | ||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Term (in years) | Weighted Average Exercise Price | Aggregate Intrinsic Value (1) | Number of Shares | Weighted Average Remaining Contractual Term (in years) | Weighted Average Exercise Price | Aggregate Intrinsic Value (1) | ||||||||||||||||||||||||
(In thousands, except years and per-share amounts) | ||||||||||||||||||||||||||||||||
$37.06 – $39.85 | 129 | 1.01 | $ | 37.94 | $ | 5,537 | 129 | 1.01 | $ | 37.94 | $ | 5,537 | ||||||||||||||||||||
$45.22 – $52.07 | 880 | 1.74 | 50.3 | 26,907 | 880 | 1.74 | 50.3 | 26,907 | ||||||||||||||||||||||||
$52.61 – $72.26 | 1,722 | 3.1 | 59.28 | 37,237 | 1,477 | 2.83 | 57.95 | 33,901 | ||||||||||||||||||||||||
$74.28 – $84.23 | 612 | 6.41 | 83.49 | 91 | - | - | - | - | ||||||||||||||||||||||||
Total | 3,343 | 3.27 | $ | 60.53 | $ | 69,772 | 2,486 | 2.35 | $ | 54.21 | $ | 66,345 | ||||||||||||||||||||
— | 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 $80.90 as of September 26, 2014, the last trading date of fiscal year 2014, and which represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date. | |||||||||||||||||||||||||||||||
Activity for Restricted Stock, Restricted Stock Units, Deferred Stock Units and Performance Units | ' | |||||||||||||||||||||||||||||||
The activity for restricted stock, restricted stock units, deferred stock units and performance units is summarized as follows: | ||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | Number of Shares | Weighted Average Grant-Date Fair Value | ||||||||||||||||||||||||||||||
Balance at September 30, 2011 | 735 | $ | 47.36 | |||||||||||||||||||||||||||||
Granted | 716 | 59.06 | ||||||||||||||||||||||||||||||
Vested | (469 | ) | 44.68 | |||||||||||||||||||||||||||||
Cancelled or expired | (37 | ) | 53.94 | |||||||||||||||||||||||||||||
Balance at September 28, 2012 | 945 | 57.3 | ||||||||||||||||||||||||||||||
Granted | 516 | 70.37 | ||||||||||||||||||||||||||||||
Vested | (396 | ) | 55.67 | |||||||||||||||||||||||||||||
Cancelled or expired | (30 | ) | 61.82 | |||||||||||||||||||||||||||||
Balance at September 27, 2013 | 1,035 | 64.36 | ||||||||||||||||||||||||||||||
Granted | 470 | 82.51 | ||||||||||||||||||||||||||||||
Vested | (335 | ) | 63.7 | |||||||||||||||||||||||||||||
Cancelled or expired | (44 | ) | 70.69 | |||||||||||||||||||||||||||||
Balance at September 26, 2014 | 1,126 | $ | 72.08 | |||||||||||||||||||||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||||||
Sep. 26, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Net Basic and Diluted Earnings Per Share | ' | ||||||||||||
The following table sets forth the computation of net basic and diluted earnings per share: | |||||||||||||
Fiscal Years | |||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Net earnings | $ | 403,703 | $ | 438,248 | $ | 427,049 | |||||||
Weighted average shares outstanding - basic | 103,964 | 108,352 | 111,376 | ||||||||||
Dilutive effect of potential common shares | 1,307 | 1,701 | 2,097 | ||||||||||
Weighted average shares outstanding - diluted | 105,271 | 110,053 | 113,473 | ||||||||||
Net earnings per share - basic | $ | 3.88 | $ | 4.04 | $ | 3.83 | |||||||
Net earnings per share - diluted | $ | 3.83 | $ | 3.98 | $ | 3.76 | |||||||
Anti-dilutive employee shared based awards, excluded | 632 | 707 | 249 | ||||||||||
Taxes_on_Earnings_Tables
Taxes on Earnings (Tables) | 12 Months Ended | ||||||||||||||
Sep. 26, 2014 | |||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||
Schedule of Taxes on Earnings | ' | ||||||||||||||
Taxes on earnings were as follows: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(In millions) | |||||||||||||||
Current provision: | |||||||||||||||
Federal | $ | 86.6 | $ | 110.1 | $ | 99.3 | |||||||||
State and local | 6.1 | 13.4 | 8.5 | ||||||||||||
Foreign | 62.2 | 54.3 | 63.5 | ||||||||||||
Total current | 154.9 | 177.8 | 171.3 | ||||||||||||
Deferred provision (benefit): | |||||||||||||||
Federal | 5 | (3.9 | ) | (4.5 | ) | ||||||||||
State and local | (0.1 | ) | (0.2 | ) | 0.1 | ||||||||||
Foreign | 11 | 0.1 | 2 | ||||||||||||
Total deferred | 15.9 | (4.0 | ) | (2.4 | ) | ||||||||||
Taxes on earnings | $ | 170.8 | $ | 173.8 | $ | 168.9 | |||||||||
Schedule of Earnings Before Taxes | ' | ||||||||||||||
Earnings before taxes are generated from the following geographic areas: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(In millions) | |||||||||||||||
United States | $ | 173.9 | $ | 308 | $ | 271.4 | |||||||||
Foreign | 400.6 | 304.1 | 324.5 | ||||||||||||
$ | 574.5 | $ | 612.1 | $ | 595.9 | ||||||||||
Schedule of Effective Income Tax Rate | ' | ||||||||||||||
The effective tax rate differs from the U.S. federal statutory tax rate as a result of the following: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||||
State and local taxes, net of federal tax benefit | 0.8 | 1.3 | 1.3 | ||||||||||||
Non-U.S. income taxed at different rates, net | (5.2 | ) | (5.6 | ) | (5.9 | ) | |||||||||
Resolution of tax contingencies due to lapses of statutes of limitations | (1.2 | ) | (1.2 | ) | (1.8 | ) | |||||||||
Other | 0.3 | (1.1 | ) | (0.3 | ) | ||||||||||
Effective tax rate | 29.7 | % | 28.4 | % | 28.3 | % | |||||||||
Schedule of Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||||
Significant components of deferred tax assets and liabilities are as follows: | |||||||||||||||
September 26, | September 27, | ||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||
Deferred Tax Assets: | |||||||||||||||
Deferred revenues | $ | 26.9 | $ | 26.8 | |||||||||||
Deferred compensation | 37.3 | 34.9 | |||||||||||||
Product warranty | 10.9 | 13.9 | |||||||||||||
Inventory adjustments | 19.7 | 18.3 | |||||||||||||
Equity-based compensation | 28.8 | 33.3 | |||||||||||||
Environmental reserve | 4.8 | 5.7 | |||||||||||||
Accruals and reserves | 14.3 | 12.1 | |||||||||||||
Net operating loss carryforwards | 79.1 | 78.6 | |||||||||||||
Other | 38.2 | 25.7 | |||||||||||||
260 | 249.3 | ||||||||||||||
Valuation allowance | (67.5 | ) | (60.7 | ) | |||||||||||
Total deferred tax assets | 192.5 | 188.6 | |||||||||||||
Deferred Tax Liabilities: | |||||||||||||||
Tax-deductible goodwill | (27.7 | ) | (27.3 | ) | |||||||||||
Fixed assets | (16.3 | ) | (17.7 | ) | |||||||||||
Unremitted earnings of foreign subsidiaries | (24.0 | ) | (9.4 | ) | |||||||||||
Other | (29.3 | ) | (21.0 | ) | |||||||||||
Total deferred tax liabilities | (97.3 | ) | (75.4 | ) | |||||||||||
Net deferred tax assets | $ | 95.2 | $ | 113.2 | |||||||||||
Reported As: | |||||||||||||||
Net current deferred tax assets | $ | 126 | $ | 122.3 | |||||||||||
Net long-term deferred tax assets (included in other assets) | 11.5 | 10.5 | |||||||||||||
Net current deferred tax liabilities (included in accrued expenses) | (10.8 | ) | (7.6 | ) | |||||||||||
Net long-term deferred tax liabilities (included in other long-term liabilities) | (31.5 | ) | (12.0 | ) | |||||||||||
Net deferred tax assets | $ | 95.2 | $ | 113.2 | |||||||||||
Schedule of Income Taxes Paid | ' | ||||||||||||||
Income taxes paid were as follows: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(In millions) | |||||||||||||||
Federal income taxes paid, net | $ | 66.2 | $ | 119.1 | $ | 77.6 | |||||||||
State, income taxes paid, net | 7.3 | 14.9 | 9.3 | ||||||||||||
Foreign income taxes paid, net | 67.3 | 69.4 | 47.7 | ||||||||||||
Total income taxes paid, net | $ | 140.8 | $ | 203.4 | $ | 134.6 | |||||||||
Schedule of Changes in Unrecognized Tax Benefits | ' | ||||||||||||||
Changes in the Company’s unrecognized tax benefits were as follows: | |||||||||||||||
Fiscal Years | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(In millions) | |||||||||||||||
Unrecognized tax benefits balance–beginning of fiscal year | $ | 37 | $ | 38.8 | $ | 37.1 | |||||||||
Additions based on tax positions related to a prior year | 10.7 | 2.5 | 3.8 | ||||||||||||
Reductions based on tax positions related to a prior year | (0.3 | ) | (0.7 | ) | (0.9 | ) | |||||||||
Additions based on tax positions related to the current year | 8.2 | 6.6 | 6.8 | ||||||||||||
Settlements | (0.4 | ) | (4.2 | ) | (0.4 | ) | |||||||||
Reductions resulting from the expiration of the applicable statute of limitations | (5.6 | ) | (6.0 | ) | (7.6 | ) | |||||||||
Unrecognized tax benefits balance–end of fiscal year | $ | 49.6 | $ | 37 | $ | 38.8 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Operating Results Information for Each Business Segment | ' | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Prior years’ amounts have been revised to conform to the current year’s presentation. | |||||||||||||||||||||||||
Segment Data | |||||||||||||||||||||||||
Revenues | Operating Earnings(1) | ||||||||||||||||||||||||
Fiscal Years | Fiscal Years | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Oncology Systems | $ | 2,344.20 | $ | 2,252.70 | $ | 2,189.50 | $ | 495.5 | $ | 512 | $ | 505.4 | |||||||||||||
Imaging Components | 660.2 | 641.9 | 580.4 | 169.9 | 165.6 | 142.5 | |||||||||||||||||||
Total reportable segments | 3,004.40 | 2,894.60 | 2,769.90 | 665.4 | 677.6 | 647.9 | |||||||||||||||||||
Other | 45.4 | 48.3 | 37.1 | (52.7 | ) | (46.4 | ) | (44.2 | ) | ||||||||||||||||
Corporate | - | - | - | (41.5 | ) | (22.3 | ) | (9.6 | ) | ||||||||||||||||
Total company | $ | 3,049.80 | $ | 2,942.90 | $ | 2,807.00 | $ | 571.2 | $ | 608.9 | $ | 594.1 | |||||||||||||
-1 | Operating earnings of reportable segments and Other include an allocation of corporate expenses based on a percentage of their sales. | ||||||||||||||||||||||||
Depreciation & Amortization | Total Assets | ||||||||||||||||||||||||
Fiscal Years | Fiscal Years | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Oncology Systems | $ | 24.8 | $ | 21 | $ | 22.9 | $ | 1,314.10 | $ | 1,217.00 | $ | 1,220.10 | |||||||||||||
Imaging Components | 14.7 | 14.6 | 12.3 | 431.6 | 398.5 | 356.1 | |||||||||||||||||||
Total reportable segments | 39.5 | 35.6 | 35.2 | 1,745.70 | 1,615.50 | 1,576.20 | |||||||||||||||||||
Other | 1 | 1.4 | 2 | 278.6 | 278.1 | 221.5 | |||||||||||||||||||
Corporate | 22 | 25.9 | 23.8 | 1,333.00 | 1,574.90 | 1,081.00 | |||||||||||||||||||
Total company | $ | 62.5 | $ | 62.9 | $ | 61 | $ | 3,357.30 | $ | 3,468.50 | $ | 2,878.70 | |||||||||||||
Reconciliation of Segment Operating Results to Companys Earnings from Continuing Operations before Taxes | ' | ||||||||||||||||||||||||
The reconciliation of segment operating results information to the Company’s earnings from operations before taxes was as follows: | |||||||||||||||||||||||||
Fiscal Years | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Oncology Systems | $ | 495.5 | $ | 512 | $ | 505.4 | |||||||||||||||||||
Imaging Components | 169.9 | 165.6 | 142.5 | ||||||||||||||||||||||
Total reportable segments | 665.4 | 677.6 | 647.9 | ||||||||||||||||||||||
Other | (52.7 | ) | (46.4 | ) | (44.2 | ) | |||||||||||||||||||
Corporate | (41.5 | ) | (22.3 | ) | (9.6 | ) | |||||||||||||||||||
Interest income, net | 3.3 | 3.2 | 1.8 | ||||||||||||||||||||||
Total company | $ | 574.5 | $ | 612.1 | $ | 595.9 | |||||||||||||||||||
Geographic Information | ' | ||||||||||||||||||||||||
Geographic Information | |||||||||||||||||||||||||
Revenues | Long-lived Assets | ||||||||||||||||||||||||
Fiscal Years | Fiscal Years | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
United States | $ | 1,264.40 | $ | 1,212.40 | $ | 1,156.10 | $ | 262.7 | $ | 237.8 | $ | 228.6 | |||||||||||||
International | 1,785.40 | 1,730.50 | 1,650.90 | 75.3 | 77.5 | 68 | |||||||||||||||||||
Total company | $ | 3,049.80 | $ | 2,942.90 | $ | 2,807.00 | $ | 338 | $ | 315.3 | $ | 296.6 | |||||||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule Of Quarterly Financial Data | ' | |||||||||||||||||||
Fiscal Year 2014 | ||||||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||||||
Quarter | Quarter (1) | Quarter | Quarter | Year | ||||||||||||||||
Total revenues | $ | 711.5 | $ | 778.5 | $ | 747.7 | $ | 812.1 | $ | 3,049.80 | ||||||||||
Gross margin | $ | 309.6 | $ | 328.3 | $ | 323.7 | $ | 340.1 | $ | 1,301.70 | ||||||||||
Net earnings | $ | 98 | $ | 92.7 | $ | 107.1 | $ | 105.9 | $ | 403.7 | ||||||||||
Net earnings per share – basic: | $ | 0.92 | $ | 0.89 | $ | 1.03 | $ | 1.04 | $ | 3.88 | ||||||||||
Net earnings per share – diluted: | $ | 0.91 | $ | 0.88 | $ | 1.02 | $ | 1.02 | $ | 3.83 | ||||||||||
Fiscal Year 2013 | ||||||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | Total | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Total revenues | $ | 678.4 | $ | 768.4 | $ | 726.2 | $ | 769.9 | $ | 2,942.90 | ||||||||||
Gross margin | $ | 291.1 | $ | 319.6 | $ | 310.5 | $ | 328.5 | $ | 1,249.70 | ||||||||||
Net earnings | $ | 95.3 | $ | 112.8 | $ | 112.8 | $ | 117.3 | $ | 438.2 | ||||||||||
Net earnings per share – basic: | $ | 0.87 | $ | 1.04 | $ | 1.04 | $ | 1.09 | $ | 4.04 | ||||||||||
Net earnings per share – diluted: | $ | 0.86 | $ | 1.02 | $ | 1.03 | $ | 1.08 | $ | 3.98 | ||||||||||
-1 | In the second fiscal quarter of 2014, net earnings include a $25.1 million litigation charge related to a settlement agreement with the University of Pittsburgh. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Customer | Unit | Unit | |
Unit | |||
Segment | |||
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of reportable operating segments | 2 | ' | ' |
Foreign currency gain (loss) before tax | ($500,000) | $700,000 | $400,000 |
Equity investments under equity method accounting | 'Equity investments in privately held companies in which the Company holds at least a 20% ownership interest or in which the Company has the ability to exercise significant influence are accounted for under the equity method of accounting. Equity investments in privately held companies in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are accounted for under the cost method of accounting. | ' | ' |
Equity investments under cost method | 15,000,000 | 21,400,000 | ' |
Carrying value of equity investments in privately-held companies | 49,700,000 | 49,700,000 | ' |
Impairment loss on equity investments in privately held companies | 0 | 0 | 0 |
Impairment of a privately-held equity investment | 7,725,000 | ' | ' |
Number of customers accounted for more than 10% of total accounts receivable | 0 | ' | ' |
Impairment charges for long-lived assets and identifiable assets | 0 | 0 | 0 |
Goodwill impairment charges | 0 | 0 | 0 |
Number of reporting units tested for impairment of goodwill | 4 | 4 | 4 |
Costs incurred and revenues recognized in excess of customer billings | 57,200,000 | 68,100,000 | ' |
Customer billings in excess of costs incurred and revenue recognized | 52,600,000 | 33,800,000 | ' |
Excise tax on sales of medical devices, percentage | 2.30% | ' | ' |
Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Finite-lived intangible asset, useful life | '2 years | ' | ' |
Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Finite-lived intangible asset, useful life | '17 years | ' | ' |
Land Improvements | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment, useful life | '15 years | ' | ' |
Building | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment, useful life | '20 years | ' | ' |
Building | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment, useful life | '30 years | ' | ' |
Machinery and Equipment | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment, useful life | '3 years | ' | ' |
Machinery and Equipment | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment, useful life | '7 years | ' | ' |
Assets Subject To Lease | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment, estimated useful lives | 'the lesser of estimated useful lives or remaining lease terms | ' | ' |
Land Leasehold Rights And Leasehold Improvements | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment, estimated useful lives | 'the lesser of estimated useful lives or remaining lease terms | ' | ' |
Augmenix | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Impairment of a privately-held equity investment | $1,400,000 | ' | ' |
Balance_Sheet_Components_Avail
Balance Sheet Components - Available-for-Sale Securities (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities: | ' | ' |
Amortized cost | $75.60 | $62.70 |
Unrealized gain (loss) | 0 | 0 |
Fair value | $75.60 | $62.70 |
Balance_Sheet_Components_Addit
Balance Sheet Components - Additional Information (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale corporate debt security | $75.60 | $62.70 |
Short-term Investments | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale corporate debt security | 66.2 | ' |
Other Assets | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale corporate debt security | $9.40 | ' |
Balance_Sheet_Components_Compo
Balance Sheet Components - Components of Inventories (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
Inventories: | ' | ' |
Raw materials and parts | $296,100,000 | $276,600,000 |
Work-in-process | 124,500,000 | 91,600,000 |
Finished goods | 151,700,000 | 167,000,000 |
Total inventories | $572,261,000 | $535,223,000 |
Balance_Sheet_Components_Compo1
Balance Sheet Components - Components of Property, Plant and Equipment (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
Property, plant and equipment: | ' | ' |
Land and land improvements | $45,100,000 | $44,600,000 |
Buildings and leasehold improvements | 260,800,000 | 242,200,000 |
Machinery and equipment | 424,000,000 | 380,800,000 |
Construction in progress | 44,700,000 | 46,600,000 |
Assets subject to lease | 1,400,000 | 1,800,000 |
Property Plant and Equipment, Gross | 776,000,000 | 716,000,000 |
Accumulated depreciation and amortization | -438,000,000 | -400,700,000 |
Property, plant and equipment, net | $337,999,000 | $315,331,000 |
Balance_Sheet_Components_Other
Balance Sheet Components - Other Assets (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
Other assets: | ' | ' |
DCP assets | $59,600,000 | $55,200,000 |
Investments in privately-held companies | 64,700,000 | 71,100,000 |
Long-term receivables | 58,500,000 | 26,000,000 |
Intangible assets | 40,900,000 | 23,400,000 |
Long-term deferred tax assets | 11,500,000 | 10,500,000 |
Other | 49,300,000 | 36,800,000 |
Total other assets | $284,500,000 | $223,025,000 |
Balance_Sheet_Components_Compo2
Balance Sheet Components - Components of Accrued Expenses (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
Accrued expenses: | ' | ' |
Accrued compensation and benefits | $121,400,000 | $104,800,000 |
DCP liabilities | 57,900,000 | 54,600,000 |
Income taxes payable | 30,900,000 | 40,000,000 |
Current deferred tax liabilities | 10,800,000 | 7,600,000 |
Other | 103,400,000 | 113,900,000 |
Total accrued expenses | $324,409,000 | $320,884,000 |
Balance_Sheet_Components_Compo3
Balance Sheet Components - Components of Other Long-Term Liabilities (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
Other long-term liabilities: | ' | ' |
Long-term income taxes payable | $55,200,000 | $41,900,000 |
Long-term deferred income taxes | 31,500,000 | 12,000,000 |
Other | 65,000,000 | 90,100,000 |
Total other long-term liabilities | $151,716,000 | $144,048,000 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale corporate debt security | $75.60 | $62.70 |
Option to purchase a privately-held company | ' | 1.4 |
Derivative assets | 1.5 | ' |
Total assets measured at fair value | 77.1 | 114.1 |
Derivative liabilities | ' | -1.1 |
Contingent consideration | -7.5 | -2.5 |
Total liabilities measured at fair value | -7.5 | -3.6 |
Money Market Funds | ' | ' |
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ' | ' |
Money market funds | ' | 50 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ' | ' |
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ' | ' |
Total assets measured at fair value | ' | 50 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Money Market Funds | ' | ' |
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ' | ' |
Money market funds | ' | 50 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ' | ' |
Derivative assets | 1.5 | ' |
Total assets measured at fair value | 1.5 | ' |
Derivative liabilities | ' | -1.1 |
Total liabilities measured at fair value | ' | -1.1 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale corporate debt security | 75.6 | 62.7 |
Option to purchase a privately-held company | ' | 1.4 |
Total assets measured at fair value | 75.6 | 64.1 |
Contingent consideration | -7.5 | -2.5 |
Total liabilities measured at fair value | ($7.50) | ($2.50) |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' |
Transfers of assets or liabilities between fair value measurement levels | $0 | $0 | $0 |
Impairment of investment | 7,725,000 | ' | ' |
Fair value of current maturities of long-term debt | 50,000,000 | 56,250,000 | ' |
Long-term debt | 387,500,000 | 450,000,000 | ' |
Augmenix | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' |
Impairment of investment | 1,400,000 | ' | ' |
Calypso Medical Technologies Inc | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' |
Contingent consideration liability, reversed | ' | 4,900,000 | ' |
InfiMed Inc | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' |
Contingent consideration liability, reversed | $500,000 | $300,000 | ' |
Reconciliation_for_Assets_and_
Reconciliation for Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 26, 2014 | |
Corporate Debt Securities | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | |
Beginning balance | $62.70 | |
Additions | 51 | [1] |
Sale of portion of corporate debt security | -38.1 | [2] |
Ending balance | 75.6 | |
Option to Purchase a Privately-Held Company | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | |
Beginning balance | 1.4 | |
Change in fair value recognized in earnings | -1.4 | |
Contingent Consideration | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | |
Beginning balance | -2.5 | |
Additions | 6.2 | [1] |
Settlements | 0.5 | [3] |
Change in fair value recognized in earnings | 0.7 | |
Ending balance | ($7.50) | |
[1] | Amounts reported under Available-For-Sale Corporate Debt Securities include accrued interest. | |
[2] | Refer to Note 16 bCPTC Loansb | |
[3] | Amounts reported under bContingent Considerationb represent cash payments to settle contingent consideration liabilities. |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 26, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' |
Impairment of a privately-held equity investment | $7,725 |
Fair Value, Measurements, Nonrecurring | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' |
Impairment of a privately-held equity investment | $6,300 |
Financing_Receivables_and_Allo2
Financing Receivables and Allowance for Credit Losses (Detail) (Financing Receivable, USD $) | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | |||
Financing Receivable | ' | ' | ' |
Financing Receivables [Line Items] | ' | ' | ' |
Accounts receivable with contractual maturities of more than one year, Gross amount | $35.40 | $28 | $29.90 |
Accounts receivable with contractual maturities of more than one year, Allowance for doubtful accounts | -3 | -3 | -3 |
Accounts receivable with contractual maturities of more than one year, Net amount | 32.4 | 25 | 26.9 |
Accounts receivable with contractual maturities of more than one year, Amount past due | $3.70 | $3.10 | $4.30 |
Financing_Receivables_and_Allo3
Financing Receivables and Allowance for Credit Losses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Financing Receivables [Line Items] | ' | ' | ' |
Accounts receivable with contractual maturities of more than one year, amount sold | ' | ' | ' |
Notes Receivable | ' | ' | ' |
Financing Receivables [Line Items] | ' | ' | ' |
Valuation Allowances and Reserves, Period Increase (Decrease) | 0 | 0 | 0 |
Notes receivable | $15,000,000 | $0 | ' |
Activity_of_Goodwill_by_Report
Activity of Goodwill by Reportable Operating Segment (Detail) (USD $) | 12 Months Ended | |
Sep. 26, 2014 | Sep. 27, 2013 | |
Goodwill [Line Items] | ' | ' |
Balance, beginning | $225,335,000 | $222,200,000 |
Acquisition of business | 19,100,000 | ' |
Foreign currency translation adjustments | -3,800,000 | 3,100,000 |
Balance, ending | 240,626,000 | 225,335,000 |
Oncology Systems | ' | ' |
Goodwill [Line Items] | ' | ' |
Balance, beginning | 132,000,000 | 132,000,000 |
Acquisition of business | 16,300,000 | ' |
Foreign currency translation adjustments | 0 | 0 |
Balance, ending | 148,300,000 | 132,000,000 |
Imaging Components | ' | ' |
Goodwill [Line Items] | ' | ' |
Balance, beginning | 33,200,000 | 33,200,000 |
Acquisition of business | 2,800,000 | ' |
Foreign currency translation adjustments | 0 | 0 |
Balance, ending | 36,000,000 | 33,200,000 |
Other | ' | ' |
Goodwill [Line Items] | ' | ' |
Balance, beginning | 60,100,000 | 57,000,000 |
Foreign currency translation adjustments | -3,800,000 | 3,100,000 |
Balance, ending | $56,300,000 | $60,100,000 |
Gross_Carrying_Amount_and_Accu
Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ' | ' |
Accumulated amortization | ($56.90) | ($53.10) |
Net carrying amount | 38.9 | 23.4 |
Acquired existing technology | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite Lived Intangible Assets Gross | 54.6 | 36.6 |
Patents Licenses And Other | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite Lived Intangible Assets Gross | 28.8 | 29 |
Customer Contracts And Relationships | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite Lived Intangible Assets Gross | $12.40 | $10.90 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense for intangible assets | $4,779,000 | $4,332,000 | $4,879,000 |
Future amortization expense, fiscal year 2015 | 8,700,000 | ' | ' |
Future amortization expense, fiscal year 2016 | 8,100,000 | ' | ' |
Future amortization expense, fiscal year 2017 | 5,200,000 | ' | ' |
Future amortization expense, fiscal year 2018 | 5,000,000 | ' | ' |
Future amortization expense, fiscal year 2019 | 5,000,000 | ' | ' |
Future amortization expense, thereafter | 6,900,000 | ' | ' |
Research and development asset acquired fair value | $2,000,000 | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Ownership interest in dpiX Holding LLC | ' | 40.00% | ' | ' |
dpiX Holding LLC's ownership interest in dpiX LLC | ' | 100.00% | ' | ' |
Income (Loss) on equity investment in affiliate | ' | ($822,000) | $2,461,000 | $245,000 |
Carrying value of the equity investment in dpiX Holding | ' | 49,700,000 | 49,700,000 | ' |
Purchases of glass transistor arrays from dpiX | ' | 20,900,000 | 25,900,000 | 14,500,000 |
Percentage of manufacturing capacity | 50.00% | ' | ' | ' |
Percentage of fixed costs | 50.00% | ' | ' | ' |
Fixed Cost Commitments | ' | $4,300,000 | ' | ' |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Apr. 30, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Aug. 27, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Mar. 28, 2014 | Sep. 27, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Minimum | Maximum | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Twelve Credit Facility | Sumitomo Credit Facility | Sumitomo Credit Facility | Sumitomo Credit Facility | Sumitomo Credit Facility | |
Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | ||||||||
USD ($) | USD ($) | Scenario Four | Scenario Two | Minimum | Maximum | Maximum | USD ($) | USD ($) | Scenario Four | Scenario Two | Minimum | Minimum | Maximum | Maximum | Letter of Credit | Swing Line Loans | |||||||||||||
Scenario One | Scenario One | Scenario Three | Scenario One | Scenario Three | Scenario One | Scenario Three | USD ($) | USD ($) | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of credit agreement | ' | ' | ' | ' | ' | ' | 27-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility term | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | $300,000,000 | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | $25,000,000 | $300,000,000 | ' | ¥ 3,000,000,000 | ' | ' |
Loan facility maximum commitment amount | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 0.50% | 1.00% | 1.25% | 0.25% | ' | ' | 1.00% | 0.50% | 1.25% | 0.25% | 1.50% | 0.50% | ' | ' | ' | 0.50% | 0.50% | ' | ' |
Line of credit, description of interest rate calculation | ' | ' | ' | ' | ' | ' | ' | '(i) based on a Eurodollar Rate, as defined in the Credit Agreement (the bEurodollar Rateb), plus a margin of 1.00% to 1.25% based on a leverage ratio involving funded indebtedness and EBITDA, or (ii) based upon a base rate of (a) the federal funds rate plus 0.50%, (b) BofAbs announced prime rate, or (c) the Eurodollar Rate plus 1.00%, whichever is highest, plus a margin of up to 0.25% based on the same leverage ratio, depending upon instructions from the Company. | ' | ' | ' | ' | ' | ' | '(i) based on the Eurodollar Rate plus a margin of 1.25% to 1.50% based on a leverage ratio involving funded indebtedness and EBITDA, or (ii) based upon a base rate of (a) the federal funds rate plus 0.50%, (b) BofAbs announced prime rate, or (c) the Eurodollar Rate plus 1.00%, whichever is highest, plus a margin of 0.25% to 0.50% based on the same leverage ratio, depending upon instructions from the Company. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage added to Eurodollar base rate before margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, amount outstanding | ' | ' | ' | ' | ' | ' | ' | 437,500,000 | 500,000,000 | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 29,500,000 | 0 |
Credit facility weighted average interest rate | ' | ' | ' | ' | ' | ' | ' | 1.28% | 1.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, commitment fee percentage | ' | ' | ' | ' | 0.15% | 0.28% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of voting rights pledged | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of outstanding debt amount | 6,300,000 | 68,750,000 | ' | 9,876,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 148,000,000 | ' | ' | ' | ' |
Sumitomo credit facility expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Mar-15 | 31-Mar-15 | ' | ' |
Line of credit facility, commitment fee amount | ' | 600,000 | 300,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest paid on borrowings | ' | 7,000,000 | 2,900,000 | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future principal payments for long-term debt for fiscal years 2015 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future principal payments for long-term debt for fiscal years 2016 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future principal payments for long-term debt for fiscal years 2017 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future principal payments for long-term debt for fiscal years 2018 | ' | $287,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Longterm_Debt_Outst
Summary of Long-term Debt Outstanding (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $437,500,000 | $506,300,000 |
Less: current maturities of long-term debt | -50,000,000 | -56,250,000 |
Long-term debt | 387,500,000 | 450,000,000 |
Unsecured Term Loan | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unsecured term loan | ' | 6,300,000 |
Secured Debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Secured loans | $437,500,000 | $500,000,000 |
Summary_of_Longterm_Debt_Outst1
Summary of Long-term Debt Outstanding (Parenthetical) (Detail) | 12 Months Ended | |
Sep. 26, 2014 | Sep. 27, 2013 | |
Unsecured Term Loan | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | ' |
Unsecured term loan, number of installment payments | 1 | ' |
Debt instrument maturity dates | '2014 | ' |
Secured Debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 1.28% | 1.31% |
Debt instrument maturity dates | '2018 | ' |
Fair_Value_of_Derivative_Instr
Fair Value of Derivative Instruments Reported in Consolidated Balance Sheets (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Derivatives Fair Value [Line Items] | ' | ' |
Asset Derivatives | $1.50 | ' |
Liability Derivatives | ' | 1.1 |
Foreign Exchange Contract | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Asset Derivatives | 1.5 | 0 |
Liability Derivatives | 0 | 1.1 |
Accrued liabilities | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Liability derivatives, not designated as hedging instruments | 0 | 0 |
Prepaid expenses and other current assets | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Asset derivatives, not designated as hedging instruments | 0 | 0 |
Derivatives Designated as Hedging Instruments | Accrued liabilities | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Liability Derivatives | 0 | 1.1 |
Derivatives Designated as Hedging Instruments | Prepaid expenses and other current assets | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Asset Derivatives | $1.50 | $0 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 26, 2014 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
Minimum remaining maturity of foreign currency derivatives | '1 month |
Maximum remaining maturity of foreign currency derivatives | '13 months |
Net unrealized gain on derivative instruments, before tax | $1.50 |
Outstanding_Foreign_Currency_F
Outstanding Foreign Currency Forward Contracts (Detail) (Cash Flow Hedging, Euro, USD $) | Sep. 26, 2014 |
In Millions, unless otherwise specified | |
Cash Flow Hedging | Euro | ' |
Notional Amount of Derivatives [Abstract] | ' |
Foreign currency, notional values | $26.90 |
Effective_Portion_of_Foreign_C
Effective Portion of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Detail) (Foreign Exchange Contract, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Foreign Exchange Contract | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Gain Recognized in Other Comprehensive income (Effective Portion) | $3.90 | $0.50 | $1.40 |
Gain Reclassified from Accumulated Other Comprehensive Income into Net Earnings (Effective Portion) | $1.30 | $2.50 | $0.60 |
Outstanding_Foreign_Currency_F1
Outstanding Foreign Currency Forward Contracts that Were Entered into to Hedge Balance Sheet Exposures (Detail) (USD $) | Sep. 26, 2014 |
In Millions, unless otherwise specified | |
Notional Value Sold | ' |
Derivative [Line Items] | ' |
Notional Value | $248.60 |
Notional Value Sold | Australian dollar | ' |
Derivative [Line Items] | ' |
Notional Value | 20.1 |
Notional Value Sold | Canadian dollar | ' |
Derivative [Line Items] | ' |
Notional Value | 0 |
Notional Value Sold | Danish Krone | ' |
Derivative [Line Items] | ' |
Notional Value | 4.3 |
Notional Value Sold | Euro | ' |
Derivative [Line Items] | ' |
Notional Value | 156.1 |
Notional Value Sold | Hungarian Forint | ' |
Derivative [Line Items] | ' |
Notional Value | 0.8 |
Notional Value Sold | Indian Rupee | ' |
Derivative [Line Items] | ' |
Notional Value | 2.9 |
Notional Value Sold | Japanese yen | ' |
Derivative [Line Items] | ' |
Notional Value | 53.6 |
Notional Value Sold | Norwegian krone | ' |
Derivative [Line Items] | ' |
Notional Value | 2.8 |
Notional Value Sold | Swedish krona | ' |
Derivative [Line Items] | ' |
Notional Value | 8 |
Notional Value Purchased | ' |
Derivative [Line Items] | ' |
Notional Value | 84.8 |
Notional Value Purchased | Canadian dollar | ' |
Derivative [Line Items] | ' |
Notional Value | 9.6 |
Notional Value Purchased | Danish Krone | ' |
Derivative [Line Items] | ' |
Notional Value | 0 |
Notional Value Purchased | Euro | ' |
Derivative [Line Items] | ' |
Notional Value | 0 |
Notional Value Purchased | Hungarian Forint | ' |
Derivative [Line Items] | ' |
Notional Value | 0 |
Notional Value Purchased | Indian Rupee | ' |
Derivative [Line Items] | ' |
Notional Value | 0 |
Notional Value Purchased | Japanese yen | ' |
Derivative [Line Items] | ' |
Notional Value | 0 |
Notional Value Purchased | Norwegian krone | ' |
Derivative [Line Items] | ' |
Notional Value | 0 |
Notional Value Purchased | Swedish krona | ' |
Derivative [Line Items] | ' |
Notional Value | 0 |
Notional Value Purchased | Swiss franc | ' |
Derivative [Line Items] | ' |
Notional Value | $75.20 |
Gains_Losses_Related_to_Foreig
Gains (Losses) Related to Foreign Currency Forward Exchange Contracts that are Not Designated as Hedging Instruments (Detail) (Selling, general and administrative expenses, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Selling, general and administrative expenses | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Amount of Gain Recognized in Net Earnings on Derivative not designated as hedging instrument | $13.70 | $9.60 | $5 |
Accrued_Product_Warranty_Detai
Accrued Product Warranty (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Accrued product warranty, at beginning of period | $53.20 | $52.80 |
Charged to cost of revenues | 51.9 | 57.7 |
Actual product warranty expenditures | -55.8 | -57.3 |
Accrued product warranty, at end of period | $49.30 | $53.20 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Mar. 28, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Apr. 30, 2012 | Sep. 26, 2014 | |
Employee | Cercla Sites and One Past Facility | Cercla Sites and One Past Facility | Cercla Sites and One Past Facility | Other Sites | Other Sites | Other Sites | Siemens AG | Siemens AG | CPTC Loan | ||||
Minimum | Maximum | Minimum | Maximum | Strategic Global Partnership | Strategic Global Partnership | ||||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term accrued product warranty costs | ' | $2,000,000 | $14,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum rentals under operating leases fiscal year 2015 | ' | 20,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum rentals under operating leases fiscal year 2016 | ' | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum rentals under operating leases fiscal year 2017 | ' | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum rentals under operating leases fiscal year 2018 | ' | 8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum rentals under operating leases fiscal year 2019 | ' | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating leases future minimum payments due thereafter | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expenses | ' | 28,700,000 | 26,000,000 | 24,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,700,000 |
Fixed fee committed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 10,000,000 | ' |
License fee committed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,900,000 | 20,000,000 | ' |
Fixed Cost Commitments | ' | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration liabilties | ' | 7,500,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental cleanup costs, third-party claim costs, project management costs and legal costs | ' | 1,200,000 | 1,000,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated environmental remediation costs, minimum | ' | ' | ' | ' | 1,700,000 | ' | ' | 5,900,000 | ' | ' | ' | ' | ' |
Estimated environmental remediation costs, maximum | ' | ' | ' | ' | 9,900,000 | ' | ' | 36,300,000 | ' | ' | ' | ' | ' |
Estimated time frames to resolve contingency related to environmental remediation contingencies, years | ' | ' | ' | ' | ' | '1 year | '30 years | ' | '1 year | '30 years | ' | ' | ' |
Amount accrued for environmental remediation expense | ' | ' | ' | ' | 1,700,000 | ' | ' | 8,100,000 | ' | ' | ' | ' | ' |
Estimated environmental remediation costs, best estimate, undiscounted | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Discount rate for environmental remediation costs, net of inflation | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' |
Receivables of past and future environmental-related expenditures | ' | 2,200,000 | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual damages found by jury | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Court ordered amount | ' | ' | ' | 102,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Enhanced damages | ' | ' | ' | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prejudgment interest to the damages award | ' | ' | ' | 13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Attorneys fee added to the judgement | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Full settlement of the lawsuit to the University of Pittsburgh | ' | ' | ' | 35,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement | 25,130,000 | 25,130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid Royalties | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees accepted the voluntary retirement program | ' | ' | 85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges incurred | ' | ' | $6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule_of_Liabilities_for_Fu
Schedule of Liabilities for Future Environmental Costs (Detail) (USD $) | Sep. 26, 2014 |
In Millions, unless otherwise specified | |
Commitments And Contingencies [Line Items] | ' |
2015 | $2.30 |
2016 | 1.1 |
2017 | 1 |
2018 | 0.8 |
2019 | 1.3 |
Thereafter | 6.6 |
Total costs | 13.1 |
Less imputed interest | 3.3 |
Reserve amount | 9.8 |
Recurring Costs | ' |
Commitments And Contingencies [Line Items] | ' |
2015 | 0.7 |
2016 | 0.6 |
2017 | 0.5 |
2018 | 0.6 |
2019 | 0.7 |
Thereafter | 5.2 |
Total costs | 8.3 |
Non-Recurring Costs | ' |
Commitments And Contingencies [Line Items] | ' |
2015 | 1.6 |
2016 | 0.5 |
2017 | 0.5 |
2018 | 0.2 |
2019 | 0.6 |
Thereafter | 1.4 |
Total costs | $4.80 |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Retirement Plans [Line Items] | ' | ' | ' |
Eligible participants investment in company stock feature elimination date | 1-Jan-15 | ' | ' |
Total retirement, post-retirement benefit plan and defined benefit plan expense | $28.60 | $29 | $27.90 |
Accumulated benefit obligation for defined benefit pension plans | 172.7 | 167.3 | ' |
Equity Securities | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Target percentage allocation | 33.00% | ' | ' |
Debt and fixed income assets | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Target percentage allocation | 56.00% | ' | ' |
Other | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Target percentage allocation | 11.00% | ' | ' |
US 401(K) Plan | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Maximum eligible participant compensation that company matches under defined contribution plan | 6.00% | ' | ' |
Maximum participant contribution allowed to be invested in VMS common stock | 25.00% | ' | ' |
US 401(K) Plan | Minimum | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Participant contribution for eligible base compensation | 1.00% | ' | ' |
US 401(K) Plan | Maximum | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Participant contribution for eligible base compensation | 25.00% | ' | ' |
Contribution as percentage on after-tax basis | 15.00% | ' | ' |
U.K. Savings Plan | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Maximum eligible participant compensation that company matches under defined contribution plan | 6.00% | ' | ' |
U.K. Savings Plan | Minimum | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Participant contribution for eligible base compensation | 4.00% | ' | ' |
U.K. Savings Plan | Maximum | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Participant contribution for eligible base compensation | 100.00% | ' | ' |
Defined Benefit Plans | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Discount rate | 2.77% | 3.11% | ' |
Rate of projected compensation increase | 2.45% | 2.51% | ' |
Discount rates used to determine the benefit obligations - methodology | 'For defined benefit pension plans, the discount rate was adjusted as of September 26, 2014 to a range of 1.30% to 4.00%, primarily based on the current effective yield of long-term corporate bonds that are of high quality with satisfactory liquidity and credit rating with durations corresponding to the expected duration of the benefit obligations. | ' | ' |
Contributions by employer | 7.2 | 22.2 | ' |
Expected total contribution to the defined benefit plans for the fiscal year 2015 | 7.3 | ' | ' |
Defined Benefit Plans | Minimum | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Discount rate | 1.30% | ' | ' |
Rate of projected compensation increase | 1.75% | ' | ' |
Defined Benefit Plans | Maximum | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Discount rate | 4.00% | ' | ' |
Rate of projected compensation increase | 3.70% | ' | ' |
Post-Retirement Benefit Plans | ' | ' | ' |
Retirement Plans [Line Items] | ' | ' | ' |
Discount rate | 3.10% | 3.80% | ' |
Discount rates used to determine the benefit obligations - methodology | 'Based on the yields of high quality zero-coupon corporate bonds with maturities that match the expected durations of the benefit obligations | ' | ' |
Contributions by employer | 0.5 | 0.5 | ' |
Expected total contribution to the defined benefit plans for the fiscal year 2015 | $0.30 | ' | ' |
Schedule_of_Funded_Status_of_t
Schedule of Funded Status of the Defined Benefit Pension and Post-Retirement Benefit Plans (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Aug. 27, 2013 |
Change in plan assets: | ' | ' | ' | ' |
Plan assets - end of fiscal year | $188.60 | $180.80 | ' | ' |
Defined Benefit Plans | ' | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' | ' |
Benefit obligation - beginning of fiscal year | 195.7 | 181.1 | ' | ' |
Service cost | 4.1 | 4.8 | 4.3 | ' |
Interest cost | 6.1 | 5.2 | 5.3 | ' |
Plan participantsb contributions | 7.8 | 10.9 | ' | ' |
Plan amendment | ' | 0.5 | ' | ' |
Plan settlement | -7.8 | -4.7 | ' | ' |
Actuarial (gain) loss | 14.2 | -0.7 | ' | ' |
Foreign currency changes | -7.7 | 3.2 | ' | ' |
Benefit and expense payments | -4.8 | -4.6 | ' | ' |
Benefit obligation - end of fiscal year | 207.6 | 195.7 | 181.1 | ' |
Change in plan assets: | ' | ' | ' | ' |
Plan assets - beginning of fiscal year | 180.8 | 142.6 | ' | ' |
Employer contributions | 7.2 | 22.2 | ' | ' |
Actual return on plan assets | 11.8 | 11.6 | ' | ' |
Plan participantsb contributions | 7.8 | 10.9 | ' | ' |
Plan settlement | -7.8 | -4.7 | ' | ' |
Foreign currency changes | -6.4 | 2.8 | ' | ' |
Benefit and expense payments | -4.8 | -4.6 | ' | ' |
Plan assets - end of fiscal year | 188.6 | 180.8 | 142.6 | ' |
Funded status | -19 | -14.9 | ' | ' |
Long-term assets | 5.3 | 3.1 | ' | ' |
Long-term liabilities | -24.3 | -18 | ' | ' |
Net amount recognized | -19 | -14.9 | ' | ' |
Post-Retirement Benefit Plans | ' | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' | ' |
Benefit obligation - beginning of fiscal year | 4.8 | 5.6 | ' | 4.8 |
Interest cost | 0.2 | 0.2 | 0.2 | ' |
Plan amendment | -3.3 | ' | ' | ' |
Actuarial (gain) loss | 0.2 | -0.5 | ' | ' |
Benefit and expense payments | -0.5 | -0.5 | ' | ' |
Benefit obligation - end of fiscal year | 1.4 | 4.8 | 5.6 | 4.8 |
Change in plan assets: | ' | ' | ' | ' |
Employer contributions | 0.5 | 0.5 | ' | ' |
Benefit and expense payments | -0.5 | -0.5 | ' | ' |
Funded status | -1.4 | -4.8 | ' | ' |
Current liabilities | -0.3 | -0.5 | ' | ' |
Long-term liabilities | -1.1 | -4.3 | ' | ' |
Net amount recognized | ($1.40) | ($4.80) | ' | ' |
Schedule_of_Amounts_Recognized
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Before Tax) (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Prior service credit (cost) | ($0.60) | ($0.70) |
Net gain (loss) | -55.7 | -49.4 |
Accumulated other comprehensive gain (loss) | -56.3 | -50.1 |
Post-Retirement Benefit Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Prior service credit (cost) | 3.3 | ' |
Net gain (loss) | -0.2 | 0.1 |
Accumulated other comprehensive gain (loss) | $3.10 | $0.10 |
Schedule_of_Defined_Benefit_Pe
Schedule of Defined Benefit Pension Plan Balances with Accumulated Benefit Obligation Exceeded Fair Value of Plan Assets (Detail) (USD $) | Sep. 26, 2014 |
In Millions, unless otherwise specified | |
Retirement Plans [Abstract] | ' |
Projected benefit obligation | $16.90 |
Accumulated benefit obligation | 15.8 |
Fair value of plan assets | $14.70 |
Schedule_of_Net_Periodic_Benef
Schedule of Net Periodic Benefit Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Defined Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $4.10 | $4.80 | $4.30 |
Interest cost | 6.1 | 5.2 | 5.3 |
Loss due to settlement or curtailment | 1.8 | 1 | 0.9 |
Expected return on assets | -7.8 | -5.7 | -5.3 |
Amortization of prior service cost | 0.2 | 0.2 | 0.2 |
Recognized actuarial loss | 2.1 | 2.7 | 2.5 |
Net periodic benefit cost | 6.5 | 8.2 | 7.9 |
New prior service (credit) cost | ' | 0.5 | ' |
Net (gain) loss arising during the year | 10.3 | -6.6 | 9.9 |
Amortization of prior service cost | -0.2 | -0.2 | -0.2 |
Amortization, settlement and curtailment of net actuarial loss | -3.9 | -3.7 | -3.5 |
Total recognized in other comprehensive (income) loss | 6.2 | -10 | 6.2 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 12.7 | -1.8 | 14.1 |
Post-Retirement Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost | 0.2 | 0.2 | 0.2 |
Recognized actuarial loss | ' | ' | 0.1 |
Net periodic benefit cost | 0.2 | 0.2 | 0.3 |
New prior service (credit) cost | -3.3 | ' | ' |
Net (gain) loss arising during the year | 0.2 | -0.4 | -0.1 |
Amortization, settlement and curtailment of net actuarial loss | ' | -0.1 | -0.1 |
Total recognized in other comprehensive (income) loss | -3.1 | -0.5 | -0.2 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | ($2.90) | ($0.30) | $0.10 |
Schedule_of_Accumulated_Other_
Schedule of Accumulated Other Comprehensive Income (Loss) Expected to be Recognized as Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 26, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Prior service credit (cost) | $0.30 |
Net gain (loss) | -2.4 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year, Total | -2.1 |
Defined Benefit Plans | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Prior service credit (cost) | -0.2 |
Net gain (loss) | -2.4 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year, Total | -2.6 |
Post-Retirement Benefit Plans | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Prior service credit (cost) | 0.5 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year, Total | $0.50 |
Schedule_of_Assumptions_Used_t
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Defined Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.11% | 2.94% | 3.38% |
Rate of compensation increase | 2.51% | 2.37% | 2.48% |
Expected long-term return on assets | 4.21% | 3.82% | 4.02% |
Post-Retirement Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.80% | 3.00% | 3.90% |
Recovered_Sheet1
Schedule of Assumptions used to Measure Benefit Obligations for Company's Defined Benefit Pension and Post Retirement Benefit Plans (Detail) | Sep. 26, 2014 | Sep. 27, 2013 |
Defined Benefit Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 2.77% | 3.11% |
Rate of compensation increase | 2.45% | 2.51% |
Post-Retirement Benefit Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 3.10% | 3.80% |
Schedule_of_Assumed_Healthcare
Schedule of Assumed Healthcare Cost Trend Rates for Post-Retirement Benefit Plan (Detail) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Current medical cost trend rate | 8.20% | 8.20% | 9.90% |
Ultimate medical cost trend rate | 4.50% | 4.50% | 4.50% |
Schedule_of_Fair_Values_of_Pla
Schedule of Fair Values of Plan Assets (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | $188.60 | $180.80 |
Mutual Funds Equities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 51.7 | 49.9 |
Mutual Funds Debt | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 32.5 | 26.1 |
Mutual Funds Real Estate | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 3.6 | 3.6 |
Insurance Contracts | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 99.1 | 86.3 |
Cash and Cash Equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 1.7 | 14.9 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 1.7 | 14.9 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash and Cash Equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 1.7 | 14.9 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 186.9 | 165.9 |
Significant Other Observable Inputs (Level 2) | Mutual Funds Equities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 51.7 | 49.9 |
Significant Other Observable Inputs (Level 2) | Mutual Funds Debt | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 32.5 | 26.1 |
Significant Other Observable Inputs (Level 2) | Mutual Funds Real Estate | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | 3.6 | 3.6 |
Significant Other Observable Inputs (Level 2) | Insurance Contracts | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets | $99.10 | $86.30 |
Schedule_of_Estimated_Future_B
Schedule of Estimated Future Benefit Payments (Detail) (USD $) | Sep. 26, 2014 |
In Millions, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | $5.60 |
2016 | 5.1 |
2017 | 7.4 |
2018 | 7.4 |
2019 | 8 |
2020-2024 | 38.4 |
Defined Benefit Plan, Expected Future Benefit Payments, Total | 71.9 |
Defined Benefit Plans | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | 5.3 |
2016 | 4.9 |
2017 | 7.2 |
2018 | 7.3 |
2019 | 7.9 |
2020-2024 | 38 |
Defined Benefit Plan, Expected Future Benefit Payments, Total | 70.6 |
Post-Retirement Benefit Plans | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | 0.3 |
2016 | 0.2 |
2017 | 0.2 |
2018 | 0.1 |
2019 | 0.1 |
2020-2024 | 0.4 |
Defined Benefit Plan, Expected Future Benefit Payments, Total | $1.30 |
Stockholders_Equity_Additional
Stockholders Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Nov. 30, 2013 | Aug. 31, 2012 | Feb. 29, 2012 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Feb. 28, 2011 | Sep. 26, 2014 | Sep. 26, 2014 | Aug. 31, 2014 | |
November 2013 Repurchase Program | August 2012 Repurchase Program | August Two Thousand Fourteen Repurchase Program | ||||||||
Shareholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased, shares | ' | ' | ' | 7,750,000 | 6,000,000 | 4,433,718 | ' | 5,750,000 | 2,000,000 | 0 |
Aggregate cash payments for accelerated share repurchase agreements and for shares repurchased in open market | ' | ' | ' | $624,017,000 | $423,664,000 | $257,440,000 | ' | ' | ' | ' |
Number of shares authorized to be repurchased by VMS Board of Directors | 6,000,000 | 8,000,000 | ' | ' | ' | ' | 12,000,000 | ' | ' | 6,000,000 |
Number of shares remain available for repurchase | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' |
Common stock repurchase period | 'December 30, 2013 through December 31, 2014 | 'September 29, 2012 through December 31, 2013 | ' | ' | ' | ' | ' | ' | ' | 'August 15, 2014 through December 31, 2015 |
VMS common stock received upon settlement | ' | ' | 375,449 | ' | ' | ' | ' | ' | ' | ' |
Value of VMS common stock received upon settlement | ' | ' | ' | $25,000,000 | ' | ' | ' | ' | ' | ' |
Number of shares remain available for repurchase | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' |
Stockholders_Equity_Schedule_o
Stockholders Equity - Schedule of Accumulated Other Comprehensive Loss and Related Tax Effects (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Beginning Balance | ($40,071) | ($56,621) | ($46,848) |
Other comprehensive earnings before reclassifications | -17,721 | 17,284 | -12,204 |
Amounts reclassified out of other comprehensive earnings | 1,035 | 487 | 2,243 |
Tax benefit (expense) | -1,854 | -1,221 | 188 |
Ending Balance | -58,611 | -40,071 | -56,621 |
Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Beginning Balance | -40,081 | -48,623 | -43,120 |
Other comprehensive earnings before reclassifications | -5,429 | 7,545 | -8,837 |
Amounts reclassified out of other comprehensive earnings | 2,316 | 2,950 | 2,822 |
Tax benefit (expense) | -866 | -1,953 | 512 |
Ending Balance | -44,060 | -40,081 | -48,623 |
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Beginning Balance | -691 | 531 | -7 |
Other comprehensive earnings before reclassifications | 3,925 | 509 | 1,441 |
Amounts reclassified out of other comprehensive earnings | -1,281 | -2,463 | -579 |
Tax benefit (expense) | -988 | 732 | -324 |
Ending Balance | 965 | -691 | 531 |
Cumulative Translation Adjustment and Other | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Beginning Balance | 701 | -8,529 | -3,721 |
Other comprehensive earnings before reclassifications | -16,217 | 9,230 | -4,808 |
Ending Balance | ($15,516) | $701 | ($8,529) |
Stockholders_Equity_Schedule_o1
Stockholders' Equity - Schedule of Amounts Reclassified Out of Other Comprehensive Earnings (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | $812,100 | $747,700 | $778,500 | [1] | $711,500 | $769,900 | $726,200 | $768,400 | $678,400 | $3,049,800 | $2,942,897 | $2,807,015 |
Earnings before taxes | ' | ' | ' | ' | ' | ' | ' | ' | 574,510 | 612,083 | 595,924 | |
Reclassification Out of Other Comprehensive Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Earnings before taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1,035 | -487 | -2,243 | |
Reclassification Out of Other Comprehensive Earnings | Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cost of Revenues & Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | -2,316 | -2,950 | -2,822 | |
Reclassification Out of Other Comprehensive Earnings | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $1,281 | $2,463 | $579 | |
[1] | In the second fiscal quarter of 2014, net earnings include a $25.1 million litigation charge related to a settlement agreement with the University of Pittsburgh. |
Employee_Stock_Plans_Additiona
Employee Stock Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Feb. 29, 2012 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 |
Stock Options | Restricted Stock Restricted Stock Units Deferred Stock Units And Performance Units | Restricted Stock, Restricted Stock Units And Deferred Stock Units | The 2000 Plan | The 2000 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Third Amended 2005 Plan | Employee Stock Purchase Plans | |||||
Maximum | Before February 16, 2007 | Between February 16, 2007 and February 8, 2012 | After February 9, 2012 | Stock Options | Stock Options | Deferred Stock Units | Performance Units | Maximum | Minimum | Minimum | |||||||||||
awarded before February 16, 2007 | awarded after February 16, 2007 | Restricted Stock And Restricted Stock Unit | Restricted Stock And Restricted Stock Unit | Deferred Stock Units | |||||||||||||||||
Employee Stock Plans [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | 6,000,000 | ' | ' | ' | ' | 12,000,000 | ' | 24,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | 'The first one-third of the option shares one year from the date of grant, with the remainder vesting monthly during the following two-year period. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award expiration period | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | '10 years | '7 years | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '3 years | '1 year | '1 year | ' |
Award performance period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Maximum payout of shares that could be issued for each performance unit granted | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares counted against the available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 2.5 | 2.6 | ' | ' | ' | ' | ' | ' | ' | ' |
Total pre-tax intrinsic value of options exercised | $54.40 | $66.30 | $29.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense related to outstanding stock awards | ' | ' | ' | ' | 10.5 | 35.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period unrecognized compensation expense is expected to be recognized, years | ' | ' | ' | ' | '1 year 8 months 12 days | '1 year 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vested during the year, number | 335,000 | 396,000 | 469,000 | ' | ' | ' | 335,032 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vested during the year, fair value | ' | ' | ' | ' | ' | ' | 25.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares withheld for employees minimum withholding taxes at vesting, number | 115,987 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares withheld for employees minimum withholding taxes at vesting, fair value | 8.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares purchased | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock employee purchase price percentage lower than fair market value | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued, number | 261,230 | 262,455 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued, value | $15.30 | $14.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for issuance | 8,168,000 | 9,925,000 | 11,868,000 | 8,424,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,100,000 |
Employee_Stock_Plans_Fair_Valu
Employee Stock Plans - Fair Value with Weighted Average Assumptions (Detail) (USD $) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Employee Stock Option plans | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Expected term (in years) | '4 years 1 month 17 days | '4 years 9 months 4 days | '4 years 7 months 21 days |
Risk-free interest rate | 1.20% | 0.60% | 0.80% |
Expected volatility | 24.60% | 32.20% | 36.90% |
Expected dividend | 0.00% | 0.00% | 0.00% |
Weighted average fair value at grant date | $18.24 | $19.73 | $18.75 |
Employee Stock Purchase Plans | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Expected term (in years) | '6 months | '6 months | '6 months |
Risk-free interest rate | 0.10% | 0.10% | 0.10% |
Expected volatility | 12.80% | 16.50% | 19.30% |
Expected dividend | 0.00% | 0.00% | 0.00% |
Weighted average fair value at grant date | $14.20 | $12.95 | $12.17 |
Employee_Stock_Plans_Net_Share
Employee Stock Plans - Net Share-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense | $39,636 | $42,637 | $47,875 |
Taxes on earnings | -12,062 | -12,989 | -15,406 |
Net share-based compensation expense | 27,574 | 29,648 | 32,469 |
Cost of revenues - Product | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense | 3,323 | 4,088 | 4,419 |
Cost of revenues - Service | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense | 4,658 | 3,460 | 1,472 |
Research and development | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense | 6,194 | 5,993 | 6,378 |
Selling, general and administrative | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense | $25,461 | $29,096 | $35,606 |
Employee_Stock_Plans_Summary_t
Employee Stock Plans - Summary the Effect of Recording Pre-Tax Share-Based Compensation Expense for Equity Incentive Awards (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | |||
Share-based compensation expense | $39,636 | $42,637 | $47,875 | |||
Restricted Stock Units and Restricted Stock Awards | ' | ' | ' | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | |||
Share-based compensation expense | 26,576 | [1] | 28,229 | [1] | 32,527 | [1] |
Employee Stock Purchase Plans | ' | ' | ' | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | |||
Share-based compensation expense | 3,571 | 3,831 | 3,179 | |||
Equity Option | ' | ' | ' | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | |||
Share-based compensation expense | $9,489 | $10,577 | $12,169 | |||
[1] | Restricted stock units and restricted stock awards include performance units and deferred stock units. |
Employee_Stock_Plans_Summary_o
Employee Stock Plans - Summary of Share-Based Awards Available for Grant (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Shares Available for Grant | ' | ' | ' |
Shares Available for Grant, Beginning Balance | 9,925 | 11,868 | 8,424 |
Shares Available for Grant, Authorized | ' | ' | 6,000 |
Shares Available for Grant, Granted | -1,934 | -2,045 | -2,680 |
Shares Available for Grant, Canceled, expired or forfeited | 177 | 102 | 124 |
Shares Available for Grant, Ending Balance | 8,168 | 9,925 | 11,868 |
Employee_Stock_Plans_Activity_
Employee Stock Plans - Activity Under Employee Stock Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Number of Shares | ' | ' | ' |
Number of Shares, Granted | 1,934 | 2,045 | 2,680 |
Number of Shares, Canceled, expired or forfeited | -177 | -102 | -124 |
Number of Shares, Options Outstanding | 3,343 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding | $60.53 | ' | ' |
Stock Options | ' | ' | ' |
Number of Shares | ' | ' | ' |
Number of Shares, Options Outstanding | 4,485 | 6,459 | 6,917 |
Number of Shares, Granted | 625 | 613 | 743 |
Number of Shares, Canceled, expired or forfeited | -46 | -20 | -30 |
Number of Shares, Exercised | -1,721 | -2,567 | -1,171 |
Number of Shares, Options Outstanding | 3,343 | 4,485 | 6,459 |
Weighted Average Exercise Price | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding | $53.02 | 48.34 | 45.9 |
Weighted Average Exercise Price, Granted | $83.50 | 68.93 | 58.5 |
Weighted Average Exercise Price, Canceled, expired or forfeited | $72.35 | 60.81 | 55.73 |
Weighted Average Exercise Price, Exercised | $49.01 | 44.97 | 40.18 |
Weighted Average Exercise Price, Options Outstanding | $60.53 | 53.02 | 48.34 |
Employee_Stock_Plans_Activity_1
Employee Stock Plans - Activity Under Employee Stock Plans (Parenthetical) (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Number of Shares, Options Exercisable | 2,486 | 3,655 |
Weighted Average Exercise Price, Options Exercisable | $54.21 | $50.18 |
Employee_Stock_Plans_Options_O
Employee Stock Plans - Options Outstanding and Exercisable Under Employee Stock Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | |
Number of Shares, Options Outstanding | 3,343 | ' | |
Weighted Average Remaining Contractual Term (in years), Options Outstanding | '3 years 3 months 7 days | ' | |
Weighted Average Exercise Price, Options Outstanding | $60.53 | ' | |
Aggregate Intrinsic Value, Options Outstanding | $69,772 | [1] | ' |
Number of Shares, Options Exercisable | 2,486 | 3,655 | |
Weighted Average Remaining Contractual Term (in years), Options Exercisable | '2 years 4 months 6 days | ' | |
Weighted Average Exercise Price, Options Exercisable | $54.21 | $50.18 | |
Aggregate Intrinsic Value, Options Exercisable | 66,345 | [1] | ' |
Range One | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | |
Range of Exercise Prices, lower limit | $37.06 | ' | |
Range of Exercise Prices, upper limit | $39.85 | ' | |
Number of Shares, Options Outstanding | 129 | ' | |
Weighted Average Remaining Contractual Term (in years), Options Outstanding | '1 year 4 days | ' | |
Weighted Average Exercise Price, Options Outstanding | $37.94 | ' | |
Aggregate Intrinsic Value, Options Outstanding | 5,537 | [1] | ' |
Number of Shares, Options Exercisable | 129 | ' | |
Weighted Average Remaining Contractual Term (in years), Options Exercisable | '1 year 4 days | ' | |
Weighted Average Exercise Price, Options Exercisable | $37.94 | ' | |
Aggregate Intrinsic Value, Options Exercisable | 5,537 | [1] | ' |
Range Two | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | |
Range of Exercise Prices, lower limit | $45.22 | ' | |
Range of Exercise Prices, upper limit | $52.07 | ' | |
Number of Shares, Options Outstanding | 880 | ' | |
Weighted Average Remaining Contractual Term (in years), Options Outstanding | '1 year 8 months 27 days | ' | |
Weighted Average Exercise Price, Options Outstanding | $50.30 | ' | |
Aggregate Intrinsic Value, Options Outstanding | 26,907 | [1] | ' |
Number of Shares, Options Exercisable | 880 | ' | |
Weighted Average Remaining Contractual Term (in years), Options Exercisable | '1 year 8 months 27 days | ' | |
Weighted Average Exercise Price, Options Exercisable | $50.30 | ' | |
Aggregate Intrinsic Value, Options Exercisable | 26,907 | [1] | ' |
Range Three | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | |
Range of Exercise Prices, lower limit | $52.61 | ' | |
Range of Exercise Prices, upper limit | $72.26 | ' | |
Number of Shares, Options Outstanding | 1,722 | ' | |
Weighted Average Remaining Contractual Term (in years), Options Outstanding | '3 years 1 month 6 days | ' | |
Weighted Average Exercise Price, Options Outstanding | $59.28 | ' | |
Aggregate Intrinsic Value, Options Outstanding | 37,237 | [1] | ' |
Number of Shares, Options Exercisable | 1,477 | ' | |
Weighted Average Remaining Contractual Term (in years), Options Exercisable | '2 years 9 months 29 days | ' | |
Weighted Average Exercise Price, Options Exercisable | $57.95 | ' | |
Aggregate Intrinsic Value, Options Exercisable | 33,901 | [1] | ' |
Range Four | ' | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | |
Range of Exercise Prices, lower limit | $74.28 | ' | |
Range of Exercise Prices, upper limit | $84.23 | ' | |
Number of Shares, Options Outstanding | 612 | ' | |
Weighted Average Remaining Contractual Term (in years), Options Outstanding | '6 years 4 months 28 days | ' | |
Weighted Average Exercise Price, Options Outstanding | $83.49 | ' | |
Aggregate Intrinsic Value, Options Outstanding | $91 | [1] | ' |
Weighted Average Remaining Contractual Term (in years), Options Exercisable | '0 years | ' | |
[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 $80.90 as of SeptemberB 26, 2014, the last trading date of fiscal year 2014, and which represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date |
Employee_Stock_Plans_Options_O1
Employee Stock Plans - Options Outstanding and Exercisable Under Employee Stock Plans (Parenthetical) (Detail) (USD $) | Sep. 26, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Closing price of VMS common stock | $80.90 |
Employee_Stock_Plans_Activity_2
Employee Stock Plans - Activity for Restricted Stock Restricted Stock Units and Performance Units (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Nonvested Shares, Beginning Balance | 1,035 | 945 | 735 |
Granted | 470 | 516 | 716 |
Vested | -335 | -396 | -469 |
Cancelled or expired | -44 | -30 | -37 |
Nonvested Shares, Ending Balance | 1,126 | 1,035 | 945 |
Weighted Average Grant-Date Fair Value, Beginning Balance | $64.36 | $57.30 | $47.36 |
Weighted Average Grant-Date Fair Value, Granted | $82.51 | $70.37 | $59.06 |
Weighted Average Grant-Date Fair Value, Vested | $63.70 | $55.67 | $44.68 |
Weighted Average Grant-Date Fair Value, Cancelled or expired | $70.69 | $61.82 | $53.94 |
Weighted Average Grant-Date Fair Value, Ending Balance | $72.08 | $64.36 | $57.30 |
Computation_of_Net_Basic_and_D
Computation of Net Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net earnings | $105,900 | $107,100 | $92,700 | [1] | $98,000 | $117,300 | $112,800 | $112,800 | $95,300 | $403,703 | $438,248 | $427,049 |
Weighted average shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 103,964 | 108,352 | 111,376 | |
Dilutive effect of potential common shares | ' | ' | ' | ' | ' | ' | ' | ' | 1,307 | 1,701 | 2,097 | |
Weighted average shares outstanding - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 105,271 | 110,053 | 113,473 | |
Net earnings per share - basic | $1.04 | $1.03 | $0.89 | [1] | $0.92 | $1.09 | $1.04 | $1.04 | $0.87 | $3.88 | $4.04 | $3.83 |
Net earnings per share - diluted | $1.02 | $1.02 | $0.88 | [1] | $0.91 | $1.08 | $1.03 | $1.02 | $0.86 | $3.83 | $3.98 | $3.76 |
Anti-dilutive employee shared based awards, excluded | ' | ' | ' | ' | ' | ' | ' | ' | 632 | 707 | 249 | |
[1] | In the second fiscal quarter of 2014, net earnings include a $25.1 million litigation charge related to a settlement agreement with the University of Pittsburgh. |
Schedule_of_Taxes_on_Earnings_
Schedule of Taxes on Earnings (Detail) (USD $) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current Provision, Federal | $86,600,000 | $110,100,000 | $99,300,000 |
Current Provision, State and Local | 6,100,000 | 13,400,000 | 8,500,000 |
Current Provision, Foreign | 62,200,000 | 54,300,000 | 63,500,000 |
Total Current Provision | 154,900,000 | 177,800,000 | 171,300,000 |
Deferred Provision (Benefit), Federal | 5,000,000 | -3,900,000 | -4,500,000 |
Deferred Provision (Benefit), State and Local | -100,000 | -200,000 | 100,000 |
Deferred Provision (Benefit), Foreign | 11,000,000 | 100,000 | 2,000,000 |
Total Deferred Provision (Benefit) | 15,872,000 | -3,946,000 | -2,349,000 |
Taxes on earnings | $170,807,000 | $173,835,000 | $168,875,000 |
Schedule_of_Earnings_Before_Ta
Schedule of Earnings Before Taxes (Detail) (USD $) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States | $173,900,000 | $308,000,000 | $271,400,000 |
Foreign | 400,600,000 | 304,100,000 | 324,500,000 |
Earnings before taxes | $574,510,000 | $612,083,000 | $595,924,000 |
Schedule_of_Effective_Income_T
Schedule of Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 0.80% | 1.30% | 1.30% |
Non-U.S. income taxed at different rates, net | -5.20% | -5.60% | -5.90% |
Resolution of tax contingencies due to lapses of statutes of limitations | -1.20% | -1.20% | -1.80% |
Other | 0.30% | -1.10% | -0.30% |
Effective tax rate | 29.70% | 28.40% | 28.30% |
Schedule_of_Components_of_Defe
Schedule of Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Sep. 26, 2014 | Sep. 27, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Deferred revenues | $26,900,000 | $26,800,000 |
Deferred compensation | 37,300,000 | 34,900,000 |
Product warranty | 10,900,000 | 13,900,000 |
Inventory adjustments | 19,700,000 | 18,300,000 |
Equity-based compensation | 28,800,000 | 33,300,000 |
Environmental reserve | 4,800,000 | 5,700,000 |
Accruals and reserves | 14,300,000 | 12,100,000 |
Net operating loss carryforwards | 79,100,000 | 78,600,000 |
Other | 38,200,000 | 25,700,000 |
Total deferred tax assets, gross | 260,000,000 | 249,300,000 |
Valuation allowance | -67,500,000 | -60,700,000 |
Total deferred tax assets | 192,500,000 | 188,600,000 |
Tax-deductible goodwill | -27,700,000 | -27,300,000 |
Fixed assets | -16,300,000 | -17,700,000 |
Unremitted earnings of foreign subsidiaries | -24,000,000 | -9,400,000 |
Other | -29,300,000 | -21,000,000 |
Total deferred tax liabilities | -97,300,000 | -75,400,000 |
Net deferred tax assets | 95,200,000 | 113,200,000 |
Deferred tax assets | 125,962,000 | 122,250,000 |
Net long-term deferred tax assets (included in other assets) | 11,500,000 | 10,500,000 |
Net current deferred tax liabilities (included in accrued expenses) | 10,800,000 | 7,600,000 |
Net long-term deferred tax liabilities (included in other long-term liabilities) | $31,500,000 | $12,000,000 |
Taxes_on_Earnings_Additional_I
Taxes on Earnings - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Income Tax [Line Items] | ' | ' | ' | ' |
Cumulative undistributed earnings of non-U.S subsidiaries | $1,537.60 | ' | ' | ' |
Increase (decrease) in valuation allowance | 6.8 | 14.9 | -1.1 | ' |
Minimum likelihood percentage of uncertain tax position being realized upon settlement | 50.00% | ' | ' | ' |
Unrecognized tax benefits | 49.6 | 37 | 38.8 | 37.1 |
Amount that would affect the effective tax rate | 32.2 | ' | ' | ' |
Accrued interest and penalties related to unrecognized tax benefits | 7.8 | 6.7 | ' | ' |
Net expense (benefit) related to interest and penalties was included in taxes on earnings | 1.1 | -1.2 | ' | ' |
Foreign Tax Authority | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Additional deferred taxes liabilities if earnings were not considered to be reinvested indefinitely | 381 | ' | ' | ' |
Net operating loss carry forwards | 226 | ' | ' | ' |
Amount unavailable to the company under local loss utilization | 22.6 | ' | ' | ' |
Federal | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating loss carry forwards | 13.4 | ' | ' | ' |
Net operating loss carryforwards subject to an annual limitation | 1.3 | ' | ' | ' |
Federal | Minimum | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating loss carryforwards expiring period | '2018 | ' | ' | ' |
Federal | Maximum | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating loss carryforwards expiring period | '2031 | ' | ' | ' |
State and Local Jurisdiction | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating loss carry forwards | $13.40 | ' | ' | ' |
State and Local Jurisdiction | Minimum | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating loss carryforwards expiring period | '2018 | ' | ' | ' |
State and Local Jurisdiction | Maximum | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating loss carryforwards expiring period | '2032 | ' | ' | ' |
Schedule_of_Income_Taxes_Paid_
Schedule of Income Taxes Paid (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Income Taxes Paid Net [Line Items] | ' | ' | ' |
Income taxes paid | $140.80 | $203.40 | $134.60 |
Federal | ' | ' | ' |
Income Taxes Paid Net [Line Items] | ' | ' | ' |
Income taxes paid | 66.2 | 119.1 | 77.6 |
State | ' | ' | ' |
Income Taxes Paid Net [Line Items] | ' | ' | ' |
Income taxes paid | 7.3 | 14.9 | 9.3 |
Foreign | ' | ' | ' |
Income Taxes Paid Net [Line Items] | ' | ' | ' |
Income taxes paid | $67.30 | $69.40 | $47.70 |
Schedule_of_Changes_in_Unrecog
Schedule of Changes in Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized tax benefits balancebbeginning of fiscal year | $37 | $38.80 | $37.10 |
Additions based on tax positions related to a prior year | 10.7 | 2.5 | 3.8 |
Reductions based on tax positions related to a prior year | -0.3 | -0.7 | -0.9 |
Additions based on tax positions related to the current year | 8.2 | 6.6 | 6.8 |
Settlements | -0.4 | -4.2 | -0.4 |
Reductions resulting from the expiration of the applicable statute of limitations | -5.6 | -6 | -7.6 |
Unrecognized tax benefits balancebend of fiscal year | $49.60 | $37 | $38.80 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||
Dec. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2012 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2014 | |
Transpire, Inc. | Transpire, Inc. | Transpire, Inc. | Velocity Medical Solutions LLC | InfiMed, Inc. | Developed Technology | Developed Technology | Customer Relationships | Customer Relationships | Trade Name | Trade Name | In-process Research and Development | |||||
Oncology Systems Reporting Unit | Security and Inspection Products Reporting Unit | Transpire, Inc. | Velocity Medical Solutions LLC | Transpire, Inc. | Velocity Medical Solutions LLC | Transpire, Inc. | Velocity Medical Solutions LLC | Transpire, Inc. | ||||||||
Oncology Systems Reporting Unit | ||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | $1,500,000 | ' | ' | ' | $19,300,000 | ' | ' | $19,900,000 | $20,800,000 | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | 16,000,000 | ' | ' | 17,000,000 | 17,100,000 | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration liabilties | ' | 7,500,000 | 2,500,000 | ' | 3,300,000 | ' | ' | 2,900,000 | 3,700,000 | ' | ' | ' | ' | ' | ' | ' |
Allocated to amortizable intangible assets | ' | ' | ' | ' | 10,700,000 | 8,000,000 | 2,700,000 | 10,600,000 | 5,400,000 | ' | ' | ' | ' | ' | ' | ' |
Goodwill acquired | ' | 240,626,000 | 225,335,000 | 222,200,000 | 8,700,000 | 5,900,000 | 2,800,000 | 9,800,000 | 10,900,000 | ' | ' | ' | ' | ' | ' | ' |
Intangible assets acquired | ' | ' | ' | ' | 10,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets acquired | ' | ' | ' | ' | 8,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assumed liabilities | ' | ' | ' | ' | -100,000 | ' | ' | -500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period for intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | '6 years | '7 years | '7 years | '6 years | '6 years | ' |
Research and development asset acquired fair value | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Cash consideration held back | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | $4,500,000 | ' | ' | ' | ' | ' | ' | ' |
CPTC_Loans_Additional_Informat
CPTC Loans - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 30, 2011 | Sep. 30, 2011 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | |
Tranche A loan | Tranche A loan | Tranche B loan | J.P. Morgan | C P T C | ||||
Tranche A loan | ||||||||
CPTC Loan [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
CPTC loan facility, Varian's maximum loan commitment | $80,300,000 | ' | ' | $115,300,000 | $70,300,000 | $10,000,000 | ' | ' |
Pro rata share of the Company's obligation to fund the initial distribution and subsequent advances | 45.80% | ' | ' | 69.75% | ' | ' | ' | ' |
Loan facility to CPTC | ' | ' | 165,300,000 | ' | ' | 10,000,000 | ' | 175,300,000 |
Sale of portion of Tranche A loan commitment | ' | ' | ' | ' | ' | ' | 45,000,000 | ' |
Sale of a portion of the outstanding Tranche A loan to JP Morgan chase Bank | ' | ' | ' | ' | ' | ' | 38,100,000 | ' |
Remaining Obligation Fund Tranche A Loan | ' | ' | ' | ' | ' | ' | 6,900,000 | ' |
Short-term investment | 66,176,000 | 62,700,000 | ' | ' | ' | ' | ' | ' |
Loan to CPTC, long-term | ' | ' | ' | ' | ' | 9,400,000 | ' | ' |
CPTC loan facility, maturity | '2017-09 | ' | ' | ' | ' | ' | ' | ' |
CPTC loan facility, interest rate margin | 7.00% | ' | ' | ' | ' | ' | ' | ' |
CPTC loan facility, minimum interest rate during initial term | 9.00% | ' | ' | ' | ' | ' | ' | ' |
CPTC loan facility, description of interest and principal payments | 'Pursuant to the loan agreement, as amended in June 2014, the CPTC Loans mature in September 2017 and bear interest at the London Interbank Offer Rate (bLIBORb) plus 7.00% per annum with a minimum interest rate of 9.00% per annum. | ' | ' | ' | ' | ' | ' | ' |
CPTC loan facility, amortization period over which monthly payments are calculated after January 1, 2015 | '15 years | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable from CPTC, includes unbilled accounts receivable | $20,100,000 | $48,400,000 | ' | ' | ' | ' | ' | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Sep. 26, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segments | 2 |
Number of businesses under other category | 2 |
Geographic revenue from external customers | 'Japan represented approximately 13% of the Companybs total revenues in fiscal year 2014. No single foreign country represented 10% or more of the Companybs total revenues in fiscal years 2013 and 2012, respectively |
Sales Revenue, Segment | Geographic Concentration Risk | ' |
Segment Reporting Information [Line Items] | ' |
Percentage of revenues in Japan of the total foreign revenues | 13.00% |
Segment_Information_Operating_
Segment Information - Operating Results Information for Each Reportable Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | $812,100,000 | $747,700,000 | $778,500,000 | [1] | $711,500,000 | $769,900,000 | $726,200,000 | $768,400,000 | $678,400,000 | $3,049,800,000 | $2,942,897,000 | $2,807,015,000 | |||
Operating Earnings | ' | ' | ' | ' | ' | ' | ' | ' | 571,155,000 | [2] | 608,890,000 | [2] | 594,074,000 | [2] | |
Depreciation & Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 62,500,000 | 62,900,000 | 61,000,000 | ||||
Total Assets | 3,357,290,000 | ' | ' | ' | 3,468,474,000 | ' | ' | ' | 3,357,290,000 | 3,468,474,000 | 2,878,700,000 | ||||
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating Earnings | ' | ' | ' | ' | ' | ' | ' | ' | -41,500,000 | [2] | -22,300,000 | [2] | -9,600,000 | [2] | |
Depreciation & Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | 25,900,000 | 23,800,000 | ||||
Total Assets | 1,333,000,000 | ' | ' | ' | 1,574,900,000 | ' | ' | ' | 1,333,000,000 | 1,574,900,000 | 1,081,000,000 | ||||
Operating Segments | Oncology Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,344,200,000 | 2,252,700,000 | 2,189,500,000 | ||||
Operating Earnings | ' | ' | ' | ' | ' | ' | ' | ' | 495,500,000 | [2] | 512,000,000 | [2] | 505,400,000 | [2] | |
Depreciation & Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 24,800,000 | 21,000,000 | 22,900,000 | ||||
Total Assets | 1,314,100,000 | ' | ' | ' | 1,217,000,000 | ' | ' | ' | 1,314,100,000 | 1,217,000,000 | 1,220,100,000 | ||||
Operating Segments | Imaging Components | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 660,200,000 | 641,900,000 | 580,400,000 | ||||
Operating Earnings | ' | ' | ' | ' | ' | ' | ' | ' | 169,900,000 | [2] | 165,600,000 | [2] | 142,500,000 | [2] | |
Depreciation & Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 14,700,000 | 14,600,000 | 12,300,000 | ||||
Total Assets | 431,600,000 | ' | ' | ' | 398,500,000 | ' | ' | ' | 431,600,000 | 398,500,000 | 356,100,000 | ||||
Operating Segments | Total Reportable Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,004,400,000 | 2,894,600,000 | 2,769,900,000 | ||||
Operating Earnings | ' | ' | ' | ' | ' | ' | ' | ' | 665,400,000 | [2] | 677,600,000 | [2] | 647,900,000 | [2] | |
Depreciation & Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 39,500,000 | 35,600,000 | 35,200,000 | ||||
Total Assets | 1,745,700,000 | ' | ' | ' | 1,615,500,000 | ' | ' | ' | 1,745,700,000 | 1,615,500,000 | 1,576,200,000 | ||||
Operating Segments | Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 45,400,000 | 48,300,000 | 37,100,000 | ||||
Operating Earnings | ' | ' | ' | ' | ' | ' | ' | ' | -52,700,000 | [2] | -46,400,000 | [2] | -44,200,000 | [2] | |
Depreciation & Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,400,000 | 2,000,000 | ||||
Total Assets | $278,600,000 | ' | ' | ' | $278,100,000 | ' | ' | ' | $278,600,000 | $278,100,000 | $221,500,000 | ||||
[1] | In the second fiscal quarter of 2014, net earnings include a $25.1 million litigation charge related to a settlement agreement with the University of Pittsburgh. | ||||||||||||||
[2] | Operating earnings of reportable segments and Other include an allocation of corporate expenses based on a percentage of their sales. |
Reconciliation_of_Segment_Oper
Reconciliation of Segment Operating Results to Companys Earnings from Continuing Operations before Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Earnings from operations before taxes | $574.50 | $612.10 | $595.90 |
Interest income, net | 3.3 | 3.2 | 1.8 |
Corporate | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Earnings from operations before taxes | -41.5 | -22.3 | -9.6 |
Operating Segments | Oncology Systems | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Earnings from operations before taxes | 495.5 | 512 | 505.4 |
Operating Segments | Imaging Components | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Earnings from operations before taxes | 169.9 | 165.6 | 142.5 |
Operating Segments | Total Reportable Segments | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Earnings from operations before taxes | 665.4 | 677.6 | 647.9 |
Operating Segments | Other | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Earnings from operations before taxes | ($52.70) | ($46.40) | ($44.20) |
Geographic_Information_Detail
Geographic Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | $812,100,000 | $747,700,000 | $778,500,000 | [1] | $711,500,000 | $769,900,000 | $726,200,000 | $768,400,000 | $678,400,000 | $3,049,800,000 | $2,942,897,000 | $2,807,015,000 |
Long-lived Assets | 338,000,000 | ' | ' | ' | 315,300,000 | ' | ' | ' | 338,000,000 | 315,300,000 | 296,600,000 | |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,264,400,000 | 1,212,400,000 | 1,156,100,000 | |
Long-lived Assets | 262,700,000 | ' | ' | ' | 237,800,000 | ' | ' | ' | 262,700,000 | 237,800,000 | 228,600,000 | |
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,785,400,000 | 1,730,500,000 | 1,650,900,000 | |
Long-lived Assets | $75,300,000 | ' | ' | ' | $77,500,000 | ' | ' | ' | $75,300,000 | $77,500,000 | $68,000,000 | |
[1] | In the second fiscal quarter of 2014, net earnings include a $25.1 million litigation charge related to a settlement agreement with the University of Pittsburgh. |
Schedule_of_Quarterly_Financia
Schedule of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total revenues | $812,100 | $747,700 | $778,500 | [1] | $711,500 | $769,900 | $726,200 | $768,400 | $678,400 | $3,049,800 | $2,942,897 | $2,807,015 |
Gross margin | 340,100 | 323,700 | 328,300 | [1] | 309,600 | 328,500 | 310,500 | 319,600 | 291,100 | 1,301,675 | 1,249,687 | 1,196,336 |
Net earnings | $105,900 | $107,100 | $92,700 | [1] | $98,000 | $117,300 | $112,800 | $112,800 | $95,300 | $403,703 | $438,248 | $427,049 |
Net earnings per share b basic: | $1.04 | $1.03 | $0.89 | [1] | $0.92 | $1.09 | $1.04 | $1.04 | $0.87 | $3.88 | $4.04 | $3.83 |
Net earnings per share b diluted: | $1.02 | $1.02 | $0.88 | [1] | $0.91 | $1.08 | $1.03 | $1.02 | $0.86 | $3.83 | $3.98 | $3.76 |
[1] | In the second fiscal quarter of 2014, net earnings include a $25.1 million litigation charge related to a settlement agreement with the University of Pittsburgh. |
Schedule_of_Quarterly_Financia1
Schedule of Quarterly Financial Data (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 28, 2014 | Sep. 26, 2014 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' |
Litigation settlement | $25,130 | $25,130 |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Allowance for Doubtful Accounts | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | $14,735 | $14,386 | $6,034 |
Charged to Bad Debt Expense | 7,150 | 5,984 | 10,350 |
Write-Offs/ Adjustments Charged to Allowance | -1,568 | -5,635 | -1,998 |
Balance at End of Period | 20,317 | 14,735 | 14,386 |
Valuation Allowance of Deferred Tax Assets | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 60,704 | 45,751 | 46,924 |
Increases | 8,319 | 14,953 | 0 |
Deductions | -1,555 | 0 | -1,173 |
Balance at End of Period | $67,468 | $60,704 | $45,751 |