Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Apr. 03, 2015 | 1-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 3-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | VAR | |
Entity Registrant Name | VARIAN MEDICAL SYSTEMS INC | |
Entity Central Index Key | 203527 | |
Current Fiscal Year End Date | 8 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 99,797,043 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Revenues: | ||||
Product | $513,765 | $541,940 | $989,595 | $1,023,376 |
Service | 245,641 | 236,566 | 507,665 | 466,632 |
Total revenues | 759,406 | 778,506 | 1,497,260 | 1,490,008 |
Cost of revenues: | ||||
Product | 330,458 | 344,512 | 636,275 | 643,046 |
Service | 106,410 | 105,684 | 211,439 | 209,073 |
Total cost of revenues | 436,868 | 450,196 | 847,714 | 852,119 |
Gross margin | 322,538 | 328,310 | 649,546 | 637,889 |
Operating expenses: | ||||
Research and development | 59,312 | 60,677 | 116,388 | 118,680 |
Selling, general and administrative | 117,190 | 114,959 | 257,672 | 224,541 |
Litigation settlement | 0 | 25,130 | 0 | 25,130 |
Total operating expenses | 176,502 | 200,766 | 374,060 | 368,351 |
Operating earnings | 146,036 | 127,544 | 275,486 | 269,538 |
Interest income | 3,044 | 2,458 | 6,084 | 4,723 |
Interest expense | -2,001 | -1,855 | -4,046 | -3,748 |
Earnings before taxes | 147,079 | 128,147 | 277,524 | 270,513 |
Taxes on earnings | 41,110 | 35,359 | 78,241 | 79,765 |
Net earnings | $105,969 | $92,788 | $199,283 | $190,748 |
Net earnings per share - basic (usd per share) | $1.06 | $0.89 | $1.99 | $1.82 |
Net earnings per share - diluted (usd per share) | $1.05 | $0.88 | $1.97 | $1.79 |
Shares used in the calculation of net earnings per share: | ||||
Weighted average shares outstanding - basic | 100,157 | 104,152 | 100,315 | 105,038 |
Weighted average shares outstanding - diluted | 101,026 | 105,446 | 101,341 | 106,414 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $105,969 | $92,788 | $199,283 | $190,748 |
Defined benefit pension and post-retirement benefit plans: | ||||
Amortization of prior service cost included in net periodic benefit cost, net of tax (expense) benefit of $39 and $80 for the three and six months ended April 3, 2015, respectively, and ($6) and ($12) for the corresponding periods of fiscal year 2014, respectively | -40 | 37 | -78 | 75 |
Amortization of net actuarial loss included in net periodic benefit cost, net of tax expense of ($115) and ($231) for the three and six months ended April 3, 2015, respectively, and ($100) and ($201) for the corresponding periods of fiscal year 2014, respectively | 505 | 435 | 1,009 | 870 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 465 | 472 | 931 | 945 |
Unrealized gain (loss) on derivatives: | ||||
Increase (decrease) in unrealized gain, net of tax (expense) benefit of ($455) and ($739) for the three and six months ended April 3, 2015, respectively, and $419 and ($779) for the corresponding periods of fiscal year 2014, respectively | 763 | -685 | 1,238 | 1,299 |
Reclassification adjustments, net of tax benefit of $701 and $1,027 for the three and six months ended April 3, 2015, respectively, and $610 and $479 for the corresponding periods of fiscal year 2014, respectively | -1,176 | -1,017 | -1,721 | -798 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Total | -413 | -1,702 | -483 | 501 |
Currency translation adjustment | -18,170 | -479 | -30,460 | 990 |
Other comprehensive earnings (loss) | -18,118 | -1,709 | -30,012 | 2,436 |
Comprehensive earnings | $87,851 | $91,079 | $169,271 | $193,184 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Amortization of prior service cost included in net periodic benefit cost, tax effect | $39 | ($6) | $80 | ($12) |
Amortization of net actuarial loss included in net periodic benefit cost, tax effects | -115 | -100 | -231 | -201 |
Increase (decrease) in unrealized gain (loss), tax effects | -455 | 419 | -739 | -779 |
Reclassification adjustments, tax effects | $701 | $610 | $1,027 | $479 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 03, 2015 | Sep. 26, 2014 | |
In Thousands, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $862,223 | $849,275 | [1] |
Short-term investment | 70,075 | 66,176 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $26,973 at April 3, 2015 and $20,317 at September 26, 2014 | 707,927 | 731,929 | [1] |
Inventories | 651,779 | 572,261 | [1] |
Prepaid expenses and other current assets | 177,770 | 148,562 | [1] |
Deferred tax assets | 120,577 | 125,962 | [1] |
Total current assets | 2,590,351 | 2,494,165 | [1] |
Property, plant and equipment, net | 334,807 | 337,999 | [1] |
Goodwill | 232,633 | 240,626 | [1] |
Other assets | 301,745 | 284,500 | [1] |
Total assets | 3,459,536 | 3,357,290 | [1] |
Current liabilities: | |||
Accounts payable | 164,075 | 187,377 | [1] |
Accrued expenses | 285,377 | 324,409 | [1] |
Deferred revenues | 447,755 | 421,845 | [1] |
Advance payments from customers | 182,256 | 170,724 | [1] |
Product warranty | 41,305 | 47,299 | [1] |
Short-term borrowings | 100,000 | 0 | [1] |
Current maturities of long-term debt | 50,000 | 50,000 | [1] |
Total current liabilities | 1,270,768 | 1,201,654 | [1] |
Long-term debt | 362,500 | 387,500 | [1] |
Other long-term liabilities | 147,945 | 151,716 | [1] |
Total liabilities | 1,781,213 | 1,740,870 | [1] |
Commitments and contingencies (Note 8) | [1] | ||
Stockholders' equity: | |||
Preferred stock of $1 par value: 1,000 shares authorized; none issued and outstanding | 0 | 0 | [1] |
Common stock of $1 par value: 189,000 shares authorized;100,201 and 100,942 shares issued and outstanding at April 3, 2015 and at September 26, 2014, respectively | 100,201 | 100,942 | [1] |
Capital in excess of par value | 687,348 | 642,848 | [1] |
Retained earnings | 975,383 | 931,241 | [1] |
Accumulated other comprehensive loss | -88,623 | -58,611 | [1] |
Total Varian stockholders' equity | 1,674,309 | 1,616,420 | [1] |
Noncontrolling interest | 4,014 | 0 | [1] |
Total equity | 1,678,323 | 1,616,420 | [1] |
Total liabilities and equity | $3,459,536 | $3,357,290 | [1] |
[1] | The condensed consolidated balance sheet as of September 26, 2014 was derived from audited financial statements as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Apr. 03, 2015 | Sep. 26, 2014 | |
In Thousands, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowance for doubtful accounts | $26,973 | $20,317 | [1] |
Preferred stock, par value | $1 | $1 | [1] |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | [1] |
Preferred stock, issued | 0 | 0 | [1] |
Preferred stock, outstanding | 0 | 0 | [1] |
Common stock, par value | $1 | $1 | [1] |
Common stock, shares authorized | 189,000,000 | 189,000,000 | [1] |
Common stock, shares issued | 100,201,000 | 100,942,000 | [1] |
Common stock, shares outstanding | 100,201,000 | 100,942,000 | [1] |
[1] | The condensed consolidated balance sheet as of September 26, 2014 was derived from audited financial statements as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | |
Cash flows from operating activities: | |||
Net earnings | $199,283 | $190,748 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Share-based compensation expense | 25,238 | 18,640 | |
Tax benefits from exercises of share-based payment awards | 11,144 | 8,544 | |
Excess tax benefits from share-based compensation | -11,138 | -8,482 | |
Depreciation | 30,111 | 28,701 | |
Amortization of intangible assets | 3,286 | 1,938 | |
Deferred taxes | 16,399 | -14,567 | |
Provision for doubtful accounts receivable | 6,682 | 5,633 | |
(Income) loss from equity investment in affiliate | -525 | 600 | |
Other, net | 2,039 | -1,553 | |
Changes in assets and liabilities, net of effects of acquisition: | |||
Accounts receivable | -17,457 | -99,465 | |
Inventories | -92,951 | -23,062 | |
Prepaid expenses and other assets | -20,987 | -5,354 | |
Accounts payable | -12,833 | -16,309 | |
Accrued expenses and other liabilities | -43,159 | 45,074 | |
Deferred revenues and advance payments from customers | 37,134 | 38,027 | |
Net cash provided by operating activities | 132,266 | 169,113 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | -36,722 | -43,805 | |
Increase in restricted cash | -35,710 | 0 | |
Investment in available-for-sale corporate debt securities | -942 | -13,746 | |
Notes receivable | -5,000 | -500 | |
Net amounts received from deferred compensation plan trust account | 3,102 | 0 | |
Other | 104 | -856 | |
Net cash used in investing activities | -75,168 | -58,907 | |
Cash flows from financing activities: | |||
Repurchases of common stock | -201,181 | -314,525 | |
Proceeds from issuance of common stock to employees | 67,221 | 64,085 | |
Excess tax benefits from share-based compensation | 11,138 | 8,482 | |
Employees' taxes withheld and paid for restricted stock and restricted stock units | -16,046 | -8,478 | |
Net borrowings under revolving credit facility agreements | 100,000 | 0 | |
Repayments under term loan facility | -25,000 | -37,500 | |
Capital contribution from noncontrolling interest holders | 1,777 | 0 | |
Other | -1,073 | -408 | |
Net cash used in financing activities | -63,164 | -288,344 | |
Effects of exchange rate changes on cash and cash equivalents | 19,014 | -726 | |
Net increase/(decrease) in cash and cash equivalents | 12,948 | -178,864 | |
Cash and cash equivalents at beginning of period | 849,275 | [1] | 1,117,861 |
Cash and cash equivalents at end of period | $862,223 | $938,997 | |
[1] | The condensed consolidated balance sheet as of September 26, 2014 was derived from audited financial statements as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 03, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Description of Business | |
Varian Medical Systems, Inc. (“VMS”) and its subsidiaries (collectively, the “Company”) design, manufacture, sell and service 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 condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements and the accompanying notes are unaudited and should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 26, 2014 (the “2014 Annual Report”). In the opinion of management, the condensed consolidated financial statements herein include adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the Company’s financial position as of April 3, 2015 and September 26, 2014, results of operations and statements of comprehensive earnings for the three and six months ended April 3, 2015 and March 28, 2014, and cash flows for the six months ended April 3, 2015 and March 28, 2014. The results of operations for the three and six months ended April 3, 2015 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future period. | |
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 2015 is the 53-week period ending October 2, 2015, and fiscal year 2014 was the 52-week period ended September 26, 2014. The fiscal quarters ended April 3, 2015 and March 28, 2014 were both 13-week periods. | |
Principles of Consolidation | |
The condensed consolidated financial statements include those of VMS and its subsidiaries. Intercompany balances, transactions and stock holdings have been eliminated in consolidation. | |
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. | |
Recent Accounting Pronouncements or Updates Not Yet Effective | |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued an amendment to its accounting guidance related to internal use software. The amendment clarifies that the software license element of a cloud computing arrangements should be accounted for consistent with the acquisition of other software licenses. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is permitted. The amendment can be adopted either prospectively or retrospectively. The Company is evaluating the impact of adopting this guidance to its consolidated financial statements. | |
In April 2015, the FASB issued an amendment to its accounting guidance related to retirement benefits. The amendment provides a practical expedient that permits an entity with a fiscal year-end that does not coincide with a month-end to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The amendment also provides a practical expedient that permits an entity that has a significant event in an interim period to remeasure defined benefit plan assets and obligations using the month-end that is closest to the date of the significant event. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2017 and is required to be applied on a retroactive basis. Early adoption is permitted. The amendment is not expected to have a material impact to the Company’s consolidated financial statements. | |
In March 2015, the FASB issued an amendment to its accounting guidance related to presentation of debt issuance costs. The amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is not permitted. The amendment is required to be applied on a retroactive basis. The amendment is not expected to have a material impact to the Company’s consolidated financial statements. | |
In February 2015, the FASB issued an amendment to its accounting guidance related to consolidation. The amendment modifies the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is permitted. The amendment permits the use of either the retrospective or cumulative effect transition method. The amendment is not expected to have a material impact to the Company’s 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 amendment is not expected to have a material impact to the Company's consolidated financial statements. | |
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 application is not permitted. In April 2015, the FASB proposed a one-year deferral of the amendment. If the proposal is approved, the new guidance will be effective for the Company beginning in its first quarter of fiscal year 2019, with early adoption permitted, but not before the original effective date. 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. |
Balance_Sheet_Components
Balance Sheet Components | 6 Months Ended | |||||||
Apr. 03, 2015 | ||||||||
Balance Sheet Components [Abstract] | ||||||||
Balance Sheet Components | BALANCE SHEET COMPONENTS: | |||||||
April 3, | September 26, | |||||||
(In millions) | 2015 | 2014 | ||||||
Available-for-sale Securities: | ||||||||
Corporate debt securities: | ||||||||
Amortized cost | $ | 80 | $ | 75.6 | ||||
Unrealized gain (loss) | — | — | ||||||
Fair value | $ | 80 | $ | 75.6 | ||||
The available-for-sale securities represent loans to California Proton Treatment Center, LLC (“CPTC”). As of April 3, 2015, of the total amount of $80.0 million of the available-for-sale securities, $70.1 million is included in short-term investment and $9.9 million is included in other assets on the Condensed Consolidated Balance Sheet. 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 Condensed Consolidated Balance Sheet. Refer to Note 15, "CPTC Loans" for additional discussion. | ||||||||
April 3, | September 26, | |||||||
(In millions) | 2015 | 2014 | ||||||
Inventories: | ||||||||
Raw materials and parts | $ | 328 | $ | 296.1 | ||||
Work-in-process | 136.8 | 124.5 | ||||||
Finished goods | 187 | 151.7 | ||||||
Total inventories | $ | 651.8 | $ | 572.3 | ||||
April 3, | September 26, | |||||||
(In millions) | 2015 | 2014 | ||||||
Other long-term liabilities: | ||||||||
Long-term income taxes payable | $ | 46.1 | $ | 55.2 | ||||
Long-term deferred income taxes | 41.7 | 31.5 | ||||||
Other | 60.1 | 65 | ||||||
Total other long-term liabilities | $ | 147.9 | $ | 151.7 | ||||
Fair_Value
Fair Value | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value | 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 | ||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Instruments | Inputs | |||||||||||||||
Type of Instruments | (Level 1) | (Level 2) | (Level 3) | Balance | ||||||||||||
(In millions) | ||||||||||||||||
Assets at April 3, 2015: | ||||||||||||||||
Available-for-sale corporate debt securities | $ | — | $ | — | $ | 80 | $ | 80 | ||||||||
Derivative assets | — | 1 | — | 1 | ||||||||||||
Total assets measured at fair value | $ | — | $ | 1 | $ | 80 | $ | 81 | ||||||||
Liabilities at April 3, 2015: | ||||||||||||||||
Derivative liabilities | $ | — | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | ||||||
Contingent consideration | — | — | (6.3 | ) | (6.3 | ) | ||||||||||
Total liabilities measured at fair value | $ | — | $ | (0.2 | ) | $ | (6.3 | ) | $ | (6.5 | ) | |||||
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 | ) | ||||||
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, derivative liabilities are included under accrued liabilities and contingent consideration is included under accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. | ||||||||||||||||
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 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. | ||||||||||||||||
The Company measures the fair value of its Level 3 contingent consideration liabilities based on the income approach by using a discounted cash flow 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 estimated discount rates were to increase or decrease, the fair value of contingent consideration would decrease or increase, respectively. Changes in volatility may result in an increase or decrease in the fair value of contingent consideration. | ||||||||||||||||
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 Corporate Debt | Contingent | ||||||||||||||
Securities | Consideration | |||||||||||||||
Balance at September 26, 2014 | $ | 75.6 | $ | (7.5 | ) | |||||||||||
Additions (1) | 4.4 | — | ||||||||||||||
Settlements (2) | — | 1.1 | ||||||||||||||
Change in fair value recognized in earnings | — | 0.1 | ||||||||||||||
Balance at April 3, 2015 | $ | 80 | $ | (6.3 | ) | |||||||||||
-1 | Amounts reported under available-for-sale corporate debt securities include accrued interest. | |||||||||||||||
-2 | 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 either the three and six months ended April 3, 2015, or the three and six months ended March 28, 2014. Transfers between fair value measurement levels are recognized at the end of the reporting period. | ||||||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||||||
The fair values of certain of the Company’s financial instruments, including bank deposits included in cash and cash equivalents, restricted cash, accounts receivable, net of allowance for doubtful accounts, notes receivable, accounts payable, and short-term borrowings approximate their carrying amounts due to their short maturities. | ||||||||||||||||
As of both April 3, 2015 and September 26, 2014, the fair value of current maturities of long-term debt approximated its carrying value of $50.0 million, 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 $362.5 million and $387.5 million, at April 3, 2015 and September 26, 2014, 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. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||
The following table reflects the activity of goodwill by reportable operating segment: | ||||||||||||||||
Oncology | Imaging | |||||||||||||||
(In millions) | Systems | Components | Other | Total | ||||||||||||
Balance at September 26, 2014 | $ | 148.3 | $ | 36 | $ | 56.3 | $ | 240.6 | ||||||||
Foreign currency translation adjustments | — | — | (8.0 | ) | (8.0 | ) | ||||||||||
Balance at April 3, 2015 | $ | 148.3 | $ | 36 | $ | 48.3 | $ | 232.6 | ||||||||
The following table reflects the gross carrying amount and accumulated amortization of the Company’s intangible assets subject to amortization included in other assets in the Condensed Consolidated Balance Sheets as follows: | ||||||||||||||||
April 3, | September 26, | |||||||||||||||
(In millions) | 2015 | 2014 | ||||||||||||||
Intangible Assets: | ||||||||||||||||
Acquired existing technology | $ | 54.6 | $ | 54.6 | ||||||||||||
Patents, licenses and other | 29 | 28.8 | ||||||||||||||
Customer contracts and supplier relationship | 12.4 | 12.4 | ||||||||||||||
Accumulated amortization | (59.8 | ) | (56.9 | ) | ||||||||||||
Net carrying amount subject to amortization | $ | 36.2 | $ | 38.9 | ||||||||||||
As of April 3, 2015 and September 26, 2014, the Company also had $2.0 million of in-process research and development assets. Amortization expense for intangible assets was $1.7 million and $0.8 million in the three months ended April 3, 2015 and March 28, 2014, respectively. Amortization expense for intangible assets was $3.3 million and $1.9 million in the six months ended April 3, 2015 and March 28, 2014, respectively. The Company estimates amortization expense for the remaining six months of fiscal year 2015, fiscal year 2016, fiscal year 2017, fiscal year 2018, fiscal year 2019, fiscal year 2020 and thereafter, will be as follows (in millions): $4.9, $9.4, $5.2, $5.0, $4.9, $3.9, and $2.9, respectively. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Apr. 03, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS |
VMS has a 40% ownership interest in dpiX Holding LLC (“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 income of $0.9 million and $0.8 million in the three months ended April 3, 2015 and March 28, 2014, respectively, on the equity investment in dpiX Holding. VMS recorded income of $0.5 million and a loss of $0.6 million in the six months ended April 3, 2015 and March 28, 2014, respectively, on the equity investment in dpiX Holding. Income and loss on the equity investment in dpiX Holding is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings. The carrying value of the equity investment in dpiX Holding, which is included in other assets in the Condensed Consolidated Balance Sheets, was $48.4 million at April 3, 2015 and $49.7 million at September 26, 2014. | |
The Company purchased glass transistor arrays from dpiX totaling $5.6 million and $5.7 million in the three months ended April 3, 2015 and March 28, 2014, respectively. The Company purchased glass transistor arrays from dpiX totaling $9.9 million and $9.2 million in the six months ended April 3, 2015 and March 28, 2014, respectively. These purchases of glass transistor arrays are included as a component of inventories in the Condensed Consolidated Balance Sheets or cost of revenues - product in the Condensed Consolidated Statements of Earnings for these fiscal periods. | |
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 April 3, 2015, the Company had fixed cost commitments of $8.9 million related to this amended agreement for the remaining six months of fiscal year 2015. The fixed cost commitments 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 | 6 Months Ended |
Apr. 03, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | 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. The aggregate commitments under the 2013 Term Loan Facility may be increased by up to $100 million and the aggregate commitments under the 2013 Revolving Credit Facility may be increased by up to $200 million, subject to certain conditions being met, including lender approval. 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 0.00% 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 April 3, 2015, borrowings under the 2013 Term Loan Facility totaled $412.5 million, with a weighted average interest rate of 1.30%. At September 26, 2014, borrowings under the 2013 Term Loan Facility totaled $437.5 million with a weighted average interest rate of 1.28%. Borrowings under the 2013 Term Loan Facility are included in current maturities of long-term debt and long-term debt in the Condensed Consolidated Balance Sheets. At April 3, 2015, there was $100.0 million outstanding on the 2013 Revolving Credit Facility with a weighted average interest rate of 1.55%. At September 26, 2014, there were no amounts outstanding on the 2013 Revolving Credit Facility. Borrowings under the 2013 Revolving Credit Facility are included in short-term borrowings in the Condensed Consolidated Balance Sheets. | |
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 April 3, 2015, 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 April 3, 2015, 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 condensed consolidated financial statements in which it was in existence. | |
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 February 2015, the Sumitomo Credit Facility was extended and will expire in February 2016. 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. As of April 3, 2015 and September 26, 2014, there were no outstanding balances under the Sumitomo Credit Facility. On April 6, 2015, the Company borrowed 3 billion Japanese yen, or approximately $25.2 million, under the Sumitomo Credit Facility. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 6 Months Ended | |||||||||||||||||||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||||||||||||||
The Company measures all derivatives at fair value on the Condensed Consolidated Balance Sheets. The accounting for gains or losses resulting from changes in the fair value of those derivatives depends upon the use of the derivative and whether it qualifies for hedge accounting. Changes in the fair value of derivatives that do not qualify for hedge accounting treatment must be recognized in earnings, together with elements excluded from effectiveness testing and the ineffective portion of a particular hedge. | ||||||||||||||||||||||||||||||||||
The fair values of derivative instruments reported on the Company’s Condensed Consolidated Balance Sheets were as follows: | ||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||
Balance Sheet | 3-Apr-15 | 26-Sep-14 | Balance Sheet | 3-Apr-15 | 26-Sep-14 | |||||||||||||||||||||||||||||
(In millions) | Location | Fair Value | Fair Value | Location | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | $ | 1 | $ | 1.5 | Accrued liabilities | $ | 0.2 | $ | — | ||||||||||||||||||||||||
Total derivatives | $ | 1 | $ | 1.5 | $ | 0.2 | $ | — | ||||||||||||||||||||||||||
At April 3, 2015 and September 26, 2014, the Company did not have any outstanding derivatives that were not designated as hedging instruments. See Note 3, "Fair Value" regarding valuation of the Company’s derivative instruments. Also see Note 1, "Summary of Significant Accounting Policies" in the Consolidated Financial Statements in the Company’s 2014 Annual Report 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 Condensed 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 April 3, 2015 and September 26, 2014, 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 enters into foreign currency forward contracts primarily to reduce the effects of fluctuating foreign currency exchange rates. The Company does not enter into foreign currency forward contracts for speculative or trading purposes. Foreign currency forward contracts may be entered into several times a quarter and range from one to thirteen months. | ||||||||||||||||||||||||||||||||||
The Company designates and accounts for certain of its hedges of forecasted foreign currency revenues as cash flow hedges. The Company’s 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 Condensed Consolidated Balance Sheets is reclassified to revenues in the Condensed Consolidated Statements of Earnings. Subsequent changes in fair value of the derivative instrument are recorded in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings to offset changes in fair value of the resulting non-functional currency receivables. For derivative instruments that are designated and qualify 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 instrument that are designated and qualify as cash flow hedges in accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets and reclassifies these amounts into revenues in the Condensed Consolidated Statements of Earnings in the period during 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 amounts excluded from the assessment of effectiveness in cost of revenues in the Condensed Consolidated Statements of Earnings. During the three and six months ended April 3, 2015, the Company did not discontinue any cash flow hedges. At the inception of the hedge, the Company assesses whether the likelihood of meeting the forecasted cash flow is highly probable. As of April 3, 2015, all forecasted cash flows were still probable to occur. As of April 3, 2015, the net unrealized gain on derivative instruments, before tax, of $0.8 million was included in accumulated other comprehensive loss and is expected to be reclassified to earnings over the next 12 months that follows. | ||||||||||||||||||||||||||||||||||
The Company had the following outstanding foreign currency forward contracts that were entered into to hedge forecasted revenues and designated as cash flow hedges: | ||||||||||||||||||||||||||||||||||
3-Apr-15 | ||||||||||||||||||||||||||||||||||
Notional Value | ||||||||||||||||||||||||||||||||||
(In millions) | Sold | |||||||||||||||||||||||||||||||||
Euro | $ | 22.8 | ||||||||||||||||||||||||||||||||
Japanese Yen | 24.2 | |||||||||||||||||||||||||||||||||
Totals | $ | 47 | ||||||||||||||||||||||||||||||||
The following table presents the amounts, before tax, recognized in accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets and in the Condensed Consolidated Statements of Earnings that are related to the effective portion of the foreign currency forward contracts designated as cash flow hedges: | ||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Other | Location of Gain | Gain (Loss) Reclassified from Accumulated Other | ||||||||||||||||||||||||||||||||
Comprehensive Income | (Loss) Reclassified | Comprehensive Income into Net Earnings | ||||||||||||||||||||||||||||||||
(Effective Portion) | from Accumulated | (Effective Portion) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Other Comprehensive | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
April 3, | March 28, | April 3, | March 28, | Income into Net | April 3, | March 28, | April 3, | March 28, | ||||||||||||||||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | Earnings (Effective Portion) | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Foreign currency forward contracts | $ | 1.2 | $ | (1.1 | ) | $ | 2 | $ | 2.1 | Revenues | $ | 1.8 | $ | 1.7 | $ | 2.7 | $ | 1.3 | ||||||||||||||||
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. These hedging instruments do not qualify for hedge accounting treatment. For derivative instruments not designated as hedging instruments, changes in their fair values are recognized in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings. Changes in the values of these hedging instruments are offset by changes in the values of foreign-currency-denominated assets and liabilities. 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: | ||||||||||||||||||||||||||||||||||
3-Apr-15 | ||||||||||||||||||||||||||||||||||
Notional | Notional | |||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||
(In millions) | Value Sold | Purchased | ||||||||||||||||||||||||||||||||
Australian Dollar | $ | 19.9 | $ | — | ||||||||||||||||||||||||||||||
Brazilian Real | 1.7 | — | ||||||||||||||||||||||||||||||||
British Pound | 13.4 | — | ||||||||||||||||||||||||||||||||
Canadian Dollar | — | 4.3 | ||||||||||||||||||||||||||||||||
Danish Krone | — | 0.3 | ||||||||||||||||||||||||||||||||
Euro | 192.8 | — | ||||||||||||||||||||||||||||||||
Hungarian Forint | 8 | — | ||||||||||||||||||||||||||||||||
Indian Rupee | 9.1 | — | ||||||||||||||||||||||||||||||||
Japanese Yen | 50.2 | — | ||||||||||||||||||||||||||||||||
New Zealand Dollar | 2.8 | — | ||||||||||||||||||||||||||||||||
Norwegian Krone | 3 | — | ||||||||||||||||||||||||||||||||
Swedish Krona | 2.5 | — | ||||||||||||||||||||||||||||||||
Swiss Franc | — | 52.8 | ||||||||||||||||||||||||||||||||
Totals | $ | 303.4 | $ | 57.4 | ||||||||||||||||||||||||||||||
The following table presents the gains (losses) recognized in the Condensed Consolidated Statements of Earnings related to the foreign currency forward exchange contracts that are not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Net Earnings on Derivative | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||||||||||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 22.5 | $ | (3.2 | ) | $ | 34 | $ | 1.5 | |||||||||||||||||||||||||
The gains (losses) on these derivative instruments were significantly offset by the gains (losses) resulting from the remeasurement 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 April 3, 2015 and September 26, 2014, the Company did not have significant outstanding derivative instruments with credit-risk-related contingent features that were in a net liability position. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||||||
Apr. 03, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||||||
Product Warranty | ||||||||
The following table reflects the changes in the Company’s accrued product warranty: | ||||||||
Six Months Ended | ||||||||
April 3, | March 28, | |||||||
(In millions) | 2015 | 2014 | ||||||
Accrued product warranty, at beginning of period | $ | 49.3 | $ | 53.2 | ||||
Charged to cost of revenues | 21.8 | 25.8 | ||||||
Actual product warranty expenditures | (28.1 | ) | (26.9 | ) | ||||
Accrued product warranty, at end of period | $ | 43 | $ | 52.1 | ||||
Long-term accrued product warranty costs of $1.7 million and $2.0 million are included under other long-term liabilities in the Condensed Consolidated Balance Sheets as of April 3, 2015 and September 26, 2014, respectively. | ||||||||
Other Commitments | ||||||||
As of April 3, 2015, the Company’s outstanding commitment under the CPTC Loans was $0.3 million. See Note 15, "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 April 3, 2015, the outstanding fixed fees and license fees commitments for the Siemens agreement were $5.0 million and $12.0 million, respectively. | ||||||||
In connection with the acquisition of businesses in 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 April 3, 2015, the fair value of potential contingent consideration liabilities under these agreements was $6.3 million. See Note 3, "Fair Value" for additional information. | ||||||||
As of April 3, 2015, the Company had an estimated fixed cost commitment of $8.9 million related to dpiX's amended agreement for the remaining six months 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 5, "Related Party Transactions" for additional information. | ||||||||
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 modest amounts as its contributions to cleanup efforts. Under the agreement that governs the spin-offs of Varian, Inc., which was acquired by Agilent Technologies Inc. (the successor entity hereinafter referred to as “VI”), and Varian Semiconductor Equipment Associates, Inc., which was acquired by Applied Materials, Inc. (the successor entity hereinafter referred to as “VSEA”), 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 $0.5 million and $0.3 million (net of amounts borne by VI and VSEA) in the three months ended April 3, 2015 and March 28, 2014, respectively, on environmental cleanup costs, third-party claim costs, project management costs and legal costs. The Company spent $0.8 million and $0.5 million (net of amounts borne by VI and VSEA) in the six months ended April 3, 2015 and March 28, 2014, respectively, on such 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 April 3, 2015, 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 $1.6 million to $9.8 million. The time frames over which these cleanup project costs are estimated vary, ranging from one year to thirty years as of April 3, 2015. Management believes that no amount in that range is more probable of being incurred than any other amount and therefore accrued $1.6 million for these cleanup projects as of April 3, 2015. 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 April 3, 2015, 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 $5.3 million to $35.7 million. The time frames over which these costs are estimated to be incurred vary, ranging from one year to thirty years as of April 3, 2015. 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 $9.3 million at April 3, 2015. Accordingly, the Company has accrued $7.6 million for these costs, which represents the best estimate discounted at 4%, net of inflation. This accrual is in addition to the $1.6 million described in the preceding paragraph. | ||||||||
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, net of VI’s and VSEA’s portion, from that insurer amounted to $2.1 million at April 3, 2015 and $2.2 million at September 26, 2014, with the current and noncurrent receivables portion included in prepaid expenses and other current assets and other assets and the payable portion to that insurer is included in other long-term liabilities in the Condensed 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. In January 2014, the Company entered into a settlement agreement with the University of Pittsburgh and in the third quarter of fiscal year 2014 paid $35.6 million in full settlement of the lawsuit. Prior to the beginning of the second quarter of fiscal year 2014, the Company had accrued in aggregate approximately $5.0 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 beginning with the third quarter of fiscal year 2014, 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 all other 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 were primarily incurred in the first quarter of fiscal year 2015. The Company incurred additional restructuring charges across all reporting segments for workforce reductions during the first six months of fiscal year 2015. In connection with the above mentioned restructuring programs, during the three and six months ended April 3, 2015, the Company incurred restructuring charges of approximately $3.1 million and $13.6 million, respectively, of which $7.5 million was paid in cash during the six months ended April 3, 2015. The restructuring charges are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings. The Company expects to complete the above mentioned restructuring programs by the end of fiscal year 2015 and any remaining restructuring charges are not expected to be significant. | ||||||||
No restructuring charges were incurred during the three and six months ended March 28, 2014 in relation to this or any restructuring programs. |
Retirement_Plans
Retirement Plans | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Retirement Plans | RETIREMENT PLANS | |||||||||||||||
The Company’s net defined benefit costs were composed of the following: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Defined Benefit Plans | ||||||||||||||||
Service cost | $ | 1,184 | $ | 1,026 | $ | 2,371 | $ | 2,049 | ||||||||
Interest cost | 1,270 | 1,532 | 2,565 | 3,046 | ||||||||||||
Expected return on plan assets | (1,778 | ) | (1,957 | ) | (3,594 | ) | (3,892 | ) | ||||||||
Amortization of prior service cost | 46 | 42 | 93 | 85 | ||||||||||||
Recognized actuarial loss | 613 | 538 | 1,227 | 1,077 | ||||||||||||
Net periodic benefit cost | $ | 1,335 | $ | 1,181 | $ | 2,662 | $ | 2,365 | ||||||||
The Company made contributions to the defined benefit plans of $3.0 million during the six months ended April 3, 2015. The Company currently expects total contributions to the defined benefit plans for fiscal year 2015 will be approximately $7.1 million. The Company's post-retirement benefit costs and contributions were not significant during both the three and six months ended April 3, 2015 and March 28, 2014, and are not included in the table above. |
Income_Taxes
Income Taxes | 6 Months Ended |
Apr. 03, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES |
The Company’s effective tax rate was 28.0% for the three months ended April 3, 2015, compared to 27.6% for the same period of fiscal year 2014. The increase in the Company’s effective tax rate during the three months ended April 3, 2015 compared to the year ago period, was primarily due to the geographic mix of earnings impacted by the fluctuation in foreign currency exchange rates and the tax benefit from the patent litigation settlement during the second quarter of fiscal year 2014. The Company’s effective tax rate was 28.2% for the six months ended April 3, 2015, compared to 29.5% for the same period of fiscal year 2014. The Company’s effective tax rate decreased during the six months ended April 3, 2015 compared to the year ago period, primarily because the current period included the retroactive reinstatement of the federal research and development credit. | |
The Company’s effective income tax rate differs from the U.S. federal statutory rate primarily because the Company’s foreign earnings are taxed at rates that are, on average, lower than the U.S. federal rate, and because the Company’s domestic earnings are subject to state income taxes. | |
The total amount of unrecognized tax benefits did not materially change during the six months ended April 3, 2015; however, the amount of unrecognized tax benefits has increased as a result of positions taken during the current and prior years, and has decreased as the result of the expiration of the statutes of limitation and audit settlements in various jurisdictions. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | |||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||
Stockholders' Equity | STOCKHOLDERS’ EQUITY | |||||||||||||||||
Stock Repurchase Program | ||||||||||||||||||
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. The Company repurchased a total of 2,000,000 shares of VMS common stock during the three months ended December 27, 2013 and thereafter no shares of VMS common stock remained available for repurchase under this repurchase authorization. | ||||||||||||||||||
In November 2013, the VMS Board of Directors authorized the repurchase of an additional 6,000,000 shares of VMS common stock from December 30, 2013 through December 31, 2014. The Company repurchased a total of 2,000,000 shares of VMS common stock during the three months ended March 28, 2014. The Company repurchased a total of 250,000 shares of VMS common stock during the three months ended January 2, 2015 under this program and thereafter no shares of VMS common stock remained available for repurchase under this repurchase authorization. | ||||||||||||||||||
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. The Company repurchased a total of 824,849 and 2,074,849 shares of VMS common stock during the three and six months ended April 3, 2015 under this program. The repurchased shares include shares of VMS common stock repurchased under the accelerated share repurchase agreements mentioned below. As of April 3, 2015, 3,925,151 shares of VMS common stock remained available for repurchase 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. | ||||||||||||||||||
All shares that were repurchased under the Company's stock repurchase programs have been retired. | ||||||||||||||||||
On November 7, 2014, the Company signed an accelerated share repurchase agreement (the "January 2015 Repurchase Agreement") with J.P.Morgan Chase Bank, N.A. (“J.P. Morgan”). Pursuant to the agreement, on January 6, 2015, the Company paid $45.0 million to J.P. Morgan and J.P. Morgan delivered 419,874 shares of VMS common stock, representing approximately 80% of the shares expected to be repurchased. The repurchase period ended on March 27, 2015, and the Company received an additional 74,975 shares of VMS common stock from J.P. Morgan upon settlement of the January 2015 Repurchase Agreement. | ||||||||||||||||||
On February 3, 2015, the Company signed an accelerated share repurchase agreement (the "April 2015 Repurchase Agreement") with BofA. Pursuant to the agreement, on April 7, 2015, the Company paid $70.0 million to BofA and BofA delivered 592,280 shares of VMS common stock, representing approximately 80% of the shares expected to be repurchased. On April 29, 2015, BofA accelerated the share repurchase agreement and delivered an additional 151,604 shares of VMS common stock upon settlement of the April 2015 Repurchase Agreement. | ||||||||||||||||||
On February 4, 2015, the Company signed an accelerated share repurchase agreement with J.P. Morgan. Pursuant to the agreement, on July 8, 2015, the Company will pay $45.0 million to J.P. Morgan and J.P. Morgan will deliver approximately 80% of the shares of VMS common stock expected to be repurchased. The Company has the right to cancel this agreement at any time prior to July 7, 2015. | ||||||||||||||||||
Other Comprehensive Earnings | ||||||||||||||||||
The changes in accumulated other comprehensive earnings (loss) by component and related tax effects are summarized as follows: | ||||||||||||||||||
(in thousands) | Net Unrealized Gains | Net | Cumulative | Accumulated | ||||||||||||||
(Losses) Defined | Unrealized | Translation | Other | |||||||||||||||
Benefit Pension and | Gains | Adjustment | Comprehensive | |||||||||||||||
Post-Retirement | (Losses) | Earnings | ||||||||||||||||
Benefit Plans | Cash Flow | (Loss) | ||||||||||||||||
Hedging | ||||||||||||||||||
Instruments | ||||||||||||||||||
Balance at September 26, 2014 | $ | (44,060 | ) | $ | 965 | $ | (15,516 | ) | $ | (58,611 | ) | |||||||
Other comprehensive earnings before reclassifications | — | 1,977 | (30,460 | ) | (28,483 | ) | ||||||||||||
Amounts reclassified out of other comprehensive earnings | 1,082 | (2,748 | ) | — | (1,666 | ) | ||||||||||||
Tax benefit (expense) | (151 | ) | 288 | — | 137 | |||||||||||||
Balance at April 3, 2015 | $ | (43,129 | ) | $ | 482 | $ | (45,976 | ) | $ | (88,623 | ) | |||||||
(in thousands) | Net Unrealized Gains | Net | Cumulative | Accumulated | ||||||||||||||
(Losses) Defined | Unrealized | Translation | Other | |||||||||||||||
Benefit Pension and | Gains | Adjustment | Comprehensive | |||||||||||||||
Post-Retirement | (Losses) | Earnings | ||||||||||||||||
Benefit Plans | Cash Flow | (Loss) | ||||||||||||||||
Hedging | ||||||||||||||||||
Instruments | ||||||||||||||||||
Balance at September 27, 2013 | $ | (40,081 | ) | $ | (691 | ) | $ | 701 | $ | (40,071 | ) | |||||||
Other comprehensive earnings before reclassifications | — | 2,078 | 990 | 3,068 | ||||||||||||||
Amounts reclassified out of other comprehensive earnings | 1,158 | (1,277 | ) | — | (119 | ) | ||||||||||||
Tax expense | (213 | ) | (300 | ) | — | (513 | ) | |||||||||||
Balance at March 28, 2014 | $ | (39,136 | ) | $ | (190 | ) | $ | 1,691 | $ | (37,635 | ) | |||||||
The amounts reclassified out of other comprehensive earnings into the Condensed Consolidated Statements of Earnings, with line item location, during each period were as follows: | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Comprehensive Earnings Components | Income (Loss) Before Taxes | Income (Loss) Before Taxes | Line Item in Statements of Earnings | |||||||||||||||
Unrealized losses on defined benefit pension and post-retirement benefit plans | $ | (541 | ) | $ | (578 | ) | $ | (1,082 | ) | $ | (1,158 | ) | Cost of revenues & Operating expenses | |||||
Unrealized gains and (losses) on cash flow hedging instruments | 1,877 | 1,627 | 2,748 | 1,277 | Revenues | |||||||||||||
Total amounts reclassified out of other comprehensive earnings | $ | 1,336 | $ | 1,049 | $ | 1,666 | $ | 119 | ||||||||||
Employee_Stock_Plans
Employee Stock Plans | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Employee Stock Plans | EMPLOYEE STOCK PLANS | |||||||||||||||
The table below summarizes the net share-based compensation expense recognized for employee stock awards and for the option component of the employee stock purchase plan shares: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Cost of revenues - Product | $ | 1,206 | $ | 717 | $ | 2,315 | $ | 1,424 | ||||||||
Cost of revenues - Service | 986 | 1,115 | 1,938 | 2,062 | ||||||||||||
Research and development | 1,654 | 1,320 | 3,392 | 2,621 | ||||||||||||
Selling, general and administrative | 8,655 | 6,444 | 17,593 | 12,533 | ||||||||||||
Total share-based compensation expense | $ | 12,501 | $ | 9,596 | $ | 25,238 | $ | 18,640 | ||||||||
Income tax benefit for share-based compensation | $ | (3,943 | ) | $ | (2,939 | ) | $ | (7,916 | ) | $ | (5,737 | ) | ||||
During the six months ended April 3, 2015 and March 28, 2014, the Company granted performance units to certain employees under the Third Amended 2005 Plan. The number of shares of VMS common stock ultimately issued under the performance units at vesting depend on the Company’s business performance during the performance period, against specified performance targets, both of which are set by the Compensation and Management Development Committee of the Board of Directors. The performance units vest at the end of a three-year service period with one three-year performance period for both the Company's and total shareholder return performance grants prior to fiscal year 2015 and a one year Company's performance period and a three year total shareholder return performance period for grants made in fiscal year 2015. Subject to certain exceptions, any unvested performance unit awards are forfeited at the time of termination. | ||||||||||||||||
The fair value of options granted was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Employee Stock Option Plans | ||||||||||||||||
Expected term (in years) | 4.13 | 4.11 | 4.15 | 4.13 | ||||||||||||
Risk-free interest rate | 1.3 | % | 1.2 | % | 1.3 | % | 1.2 | % | ||||||||
Expected volatility | 22.1 | % | 24.6 | % | 22.1 | % | 24.6 | % | ||||||||
Expected dividend | — | % | — | % | — | % | — | % | ||||||||
Weighted average fair value at grant date | $ | 18.53 | $ | 18.21 | $ | 18.56 | $ | 18.23 | ||||||||
The option component of employee stock purchase plan shares was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: | ||||||||||||||||
Six Months Ended | ||||||||||||||||
April 3, | March 28, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
Expected term (in years) | 0.5 | 0.5 | ||||||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | ||||||||||||
Expected volatility | 8.3 | % | 14.5 | % | ||||||||||||
Expected dividend | — | % | — | % | ||||||||||||
Weighted average fair value at grant date | $ | 14.24 | $ | 13.98 | ||||||||||||
A summary of share-based awards available for grant is as follows: | ||||||||||||||||
(In thousands) | Shares Available for Grant | |||||||||||||||
Balance at September 26, 2014 | 8,168 | |||||||||||||||
Granted | (1,790 | ) | ||||||||||||||
Cancelled or expired | 273 | |||||||||||||||
Balance at April 3, 2015 | 6,651 | |||||||||||||||
Awards other than stock options set forth in the table were counted against the shares available for grant limit of the Third Amended 2005 Plan as 2.5 shares for every one share awarded before February 9, 2012 and were counted against the shares available for grant limit as 2.6 shares for every one share awarded on or after February 9, 2012. | ||||||||||||||||
Activity under the Company’s employee stock plans is presented below: | ||||||||||||||||
Options Outstanding | ||||||||||||||||
(In thousands, except per share amounts) | Number of | Weighted | Weighted | Aggregate | ||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value (1) | ||||||||||||||
Price | Term (in years) | |||||||||||||||
Balance at September 26, 2014 | 3,343 | $ | 60.53 | |||||||||||||
Granted | 615 | 92.43 | ||||||||||||||
Cancelled or expired | (1 | ) | 79.91 | |||||||||||||
Exercised | (1,169 | ) | 52.51 | |||||||||||||
Balance at April 3, 2015 | 2,788 | $ | 70.92 | 4.3 | $ | 63,761 | ||||||||||
Exercisable at April 3, 2015 | 1,662 | $ | 60.14 | 3 | $ | 55,927 | ||||||||||
-1 | The aggregate intrinsic value represents the total pre-tax intrinsic value of options, which is computed based on the difference between the exercise price and VMS’s closing common stock price of $93.79 as of April 2, 2015, the last trading date of the second quarter of fiscal year 2015, and which would have been received by the option holders had all option holders exercised and sold their options as of that date. | |||||||||||||||
As of April 3, 2015, there was $16.4 million of total unrecognized compensation expense related to outstanding stock options. This unrecognized compensation expense is expected to be recognized over a weighted average period of 1.8 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 | Weighted Average | ||||||||||||||
Shares | Grant-Date Fair | |||||||||||||||
Value | ||||||||||||||||
Balance at September 26, 2014 | 1,126 | $ | 72.08 | |||||||||||||
Granted | 399 | 93.21 | ||||||||||||||
Vested | (491 | ) | 67.5 | |||||||||||||
Cancelled or expired | (74 | ) | 65.66 | |||||||||||||
Balance at April 3, 2015 | 960 | $ | 84.04 | |||||||||||||
As of April 3, 2015, unrecognized compensation expense totaling $54.9 million was related to awards of restricted stock, restricted stock units, deferred stock units and performance units. This unrecognized compensation expense is expected to be recognized over a weighted average period of 2.0 years. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
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 following table sets forth the computation of net basic and diluted earnings per share: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(In thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net earnings | $ | 105,969 | $ | 92,788 | $ | 199,283 | $ | 190,748 | ||||||||
Weighted average shares outstanding - basic | 100,157 | 104,152 | 100,315 | 105,038 | ||||||||||||
Dilutive effect of potential common shares | 869 | 1,294 | 1,026 | 1,376 | ||||||||||||
Weighted average shares outstanding - diluted | 101,026 | 105,446 | 101,341 | 106,414 | ||||||||||||
Net earnings per share - basic | $ | 1.06 | $ | 0.89 | $ | 1.99 | $ | 1.82 | ||||||||
Net earnings per share - diluted | $ | 1.05 | $ | 0.88 | $ | 1.97 | $ | 1.79 | ||||||||
Anti-dilutive employee shared based awards, excluded | 956 | 657 | 1,194 | 1,040 | ||||||||||||
The Company excludes potentially dilutive common shares (consisting of shares underlying stock options 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 anti-dilutive to earnings per share. |
Business_Combination
Business Combination | 6 Months Ended |
Apr. 03, 2015 | |
Business Combinations [Abstract] | |
Business Combination | BUSINESS COMBINATION |
In January 2015, one of the Company's German subsidiaries formally launched a voluntary public tender offer to acquire MeVis Medical Solutions AG ("MeVis"), a company based in Bremen, Germany that provides image processing software and services for cancer screening. As of April 3, 2015, the Company segregated restricted cash totaling $34.7 million, which represented the expected total payment to acquire non-par value registered shares of MeVis at a price of €17.50 per share if all outstanding shares were tendered. The restricted cash was included in other assets on the Company's Condensed Consolidated Balance Sheet. On April 21, 2015, the Company completed the acquisition of 73.5% of the then outstanding shares of MeVis using approximately $25.5 million of restricted cash, with the remainder becoming unrestricted. The Company will account for the business combination of MeVis in the third quarter of fiscal year 2015. |
CPTC_Loans
CPTC Loans | 6 Months Ended |
Apr. 03, 2015 | |
Accounting Policies [Abstract] | |
CPTC Loans | 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. 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 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 April 3, 2015, the Company had loaned $70.1 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 April 3, 2015, the Company had loaned $9.9 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 Condensed 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. The CPTC Loans are collateralized by all of the assets of the Scripps Proton Therapy Center. | |
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 were 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 at the above mentioned interest rate became due and payable. To date no amortizing principal payments have been made. ORIX, J.P. Morgan and the Company (collectively the "Lenders") and CPTC continue to operate under the original terms of the loan while CPTC continues to ramp up patient volumes and works with other investors and the Lenders on an additional equity raise and/or modification to the loan terms. During the second quarter of fiscal year 2015, CPTC did not draw down on the CPTC Loans and has been operating using the cash generated from the center's operations. | |
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 April 3, 2015, the Company had recorded $22.0 million in accounts receivable from CPTC, compared to $20.1 million as of September 26, 2014. As of September 26, 2014, the outstanding Tranche A loan balance to CPTC was $66.2 million and the outstanding Tranche B loan balance was $9.4 million. 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 Condensed Consolidated Balance Sheets. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | SEGMENT INFORMATION | |||||||||||||||
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, as well as our security and inspection products. 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. The operating segments were determined based on how the Company’s Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), views and evaluates the Company’s operations. The CODM allocates resources to and evaluates the financial performance of each operating segment primarily based on operating earnings. | ||||||||||||||||
Description of Segments | ||||||||||||||||
The Oncology Systems segment designs, manufactures, sells and services hardware and software products for treating cancer with 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 has two other businesses, VPT and GTC, which 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. | ||||||||||||||||
The following table summarizes selected operating results information for each reportable segment: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | ||||||||||||||||
Oncology Systems | $ | 589.4 | $ | 603.1 | $ | 1,152.70 | $ | 1,144.50 | ||||||||
Imaging Components | 155.5 | 169 | 321.5 | 330.2 | ||||||||||||
Total reportable segments | 744.9 | 772.1 | 1,474.20 | 1,474.70 | ||||||||||||
Other | 14.5 | 6.4 | 23.1 | 15.3 | ||||||||||||
Total company | $ | 759.4 | $ | 778.5 | $ | 1,497.30 | $ | 1,490.00 | ||||||||
Operating Earnings (Loss) | ||||||||||||||||
Oncology Systems | $ | 125.9 | $ | 124.9 | $ | 252 | $ | 245.8 | ||||||||
Imaging Components | 40 | 42.2 | 81.2 | 82.9 | ||||||||||||
Total reportable segments | 165.9 | 167.1 | 333.2 | 328.7 | ||||||||||||
Other | (12.7 | ) | (14.5 | ) | (26.3 | ) | (28.7 | ) | ||||||||
Corporate | (7.2 | ) | (25.1 | ) | (31.4 | ) | (30.5 | ) | ||||||||
Total company | $ | 146 | $ | 127.5 | $ | 275.5 | $ | 269.5 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 03, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements and the accompanying notes are unaudited and should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 26, 2014 (the “2014 Annual Report”). In the opinion of management, the condensed consolidated financial statements herein include adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the Company’s financial position as of April 3, 2015 and September 26, 2014, results of operations and statements of comprehensive earnings for the three and six months ended April 3, 2015 and March 28, 2014, and cash flows for the six months ended April 3, 2015 and March 28, 2014. The results of operations for the three and six months ended April 3, 2015 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future period. | |
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 2015 is the 53-week period ending October 2, 2015, and fiscal year 2014 was the 52-week period ended September 26, 2014. The fiscal quarters ended April 3, 2015 and March 28, 2014 were both 13-week periods. | |
Principles of Consolidation | Principles of Consolidation |
The condensed consolidated financial statements include those of VMS and its subsidiaries. Intercompany balances, transactions and stock holdings have been eliminated in consolidation. | |
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. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements or Updates Not Yet Effective |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued an amendment to its accounting guidance related to internal use software. The amendment clarifies that the software license element of a cloud computing arrangements should be accounted for consistent with the acquisition of other software licenses. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is permitted. The amendment can be adopted either prospectively or retrospectively. The Company is evaluating the impact of adopting this guidance to its consolidated financial statements. | |
In April 2015, the FASB issued an amendment to its accounting guidance related to retirement benefits. The amendment provides a practical expedient that permits an entity with a fiscal year-end that does not coincide with a month-end to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The amendment also provides a practical expedient that permits an entity that has a significant event in an interim period to remeasure defined benefit plan assets and obligations using the month-end that is closest to the date of the significant event. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2017 and is required to be applied on a retroactive basis. Early adoption is permitted. The amendment is not expected to have a material impact to the Company’s consolidated financial statements. | |
In March 2015, the FASB issued an amendment to its accounting guidance related to presentation of debt issuance costs. The amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is not permitted. The amendment is required to be applied on a retroactive basis. The amendment is not expected to have a material impact to the Company’s consolidated financial statements. | |
In February 2015, the FASB issued an amendment to its accounting guidance related to consolidation. The amendment modifies the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is permitted. The amendment permits the use of either the retrospective or cumulative effect transition method. The amendment is not expected to have a material impact to the Company’s 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 amendment is not expected to have a material impact to the Company's consolidated financial statements. | |
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 application is not permitted. In April 2015, the FASB proposed a one-year deferral of the amendment. If the proposal is approved, the new guidance will be effective for the Company beginning in its first quarter of fiscal year 2019, with early adoption permitted, but not before the original effective date. 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. |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | |||||||
Apr. 03, 2015 | ||||||||
Balance Sheet Components [Abstract] | ||||||||
Available-for-sale Securities: | ||||||||
April 3, | September 26, | |||||||
(In millions) | 2015 | 2014 | ||||||
Available-for-sale Securities: | ||||||||
Corporate debt securities: | ||||||||
Amortized cost | $ | 80 | $ | 75.6 | ||||
Unrealized gain (loss) | — | — | ||||||
Fair value | $ | 80 | $ | 75.6 | ||||
Inventories: | ||||||||
April 3, | September 26, | |||||||
(In millions) | 2015 | 2014 | ||||||
Inventories: | ||||||||
Raw materials and parts | $ | 328 | $ | 296.1 | ||||
Work-in-process | 136.8 | 124.5 | ||||||
Finished goods | 187 | 151.7 | ||||||
Total inventories | $ | 651.8 | $ | 572.3 | ||||
Other long-term liabilities: | ||||||||
April 3, | September 26, | |||||||
(In millions) | 2015 | 2014 | ||||||
Other long-term liabilities: | ||||||||
Long-term income taxes payable | $ | 46.1 | $ | 55.2 | ||||
Long-term deferred income taxes | 41.7 | 31.5 | ||||||
Other | 60.1 | 65 | ||||||
Total other long-term liabilities | $ | 147.9 | $ | 151.7 | ||||
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. | |||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Instruments | Inputs | |||||||||||||||
Type of Instruments | (Level 1) | (Level 2) | (Level 3) | Balance | ||||||||||||
(In millions) | ||||||||||||||||
Assets at April 3, 2015: | ||||||||||||||||
Available-for-sale corporate debt securities | $ | — | $ | — | $ | 80 | $ | 80 | ||||||||
Derivative assets | — | 1 | — | 1 | ||||||||||||
Total assets measured at fair value | $ | — | $ | 1 | $ | 80 | $ | 81 | ||||||||
Liabilities at April 3, 2015: | ||||||||||||||||
Derivative liabilities | $ | — | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | ||||||
Contingent consideration | — | — | (6.3 | ) | (6.3 | ) | ||||||||||
Total liabilities measured at fair value | $ | — | $ | (0.2 | ) | $ | (6.3 | ) | $ | (6.5 | ) | |||||
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 | ) | ||||||
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 Corporate Debt | Contingent | ||||||||||||||
Securities | Consideration | |||||||||||||||
Balance at September 26, 2014 | $ | 75.6 | $ | (7.5 | ) | |||||||||||
Additions (1) | 4.4 | — | ||||||||||||||
Settlements (2) | — | 1.1 | ||||||||||||||
Change in fair value recognized in earnings | — | 0.1 | ||||||||||||||
Balance at April 3, 2015 | $ | 80 | $ | (6.3 | ) | |||||||||||
-1 | Amounts reported under available-for-sale corporate debt securities include accrued interest. | |||||||||||||||
-2 | Amounts reported under contingent consideration represent cash payments to settle contingent consideration liabilities. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
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: | |||||||||||||||
Oncology | Imaging | |||||||||||||||
(In millions) | Systems | Components | Other | Total | ||||||||||||
Balance at September 26, 2014 | $ | 148.3 | $ | 36 | $ | 56.3 | $ | 240.6 | ||||||||
Foreign currency translation adjustments | — | — | (8.0 | ) | (8.0 | ) | ||||||||||
Balance at April 3, 2015 | $ | 148.3 | $ | 36 | $ | 48.3 | $ | 232.6 | ||||||||
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The following table reflects the gross carrying amount and accumulated amortization of the Company’s intangible assets subject to amortization included in other assets in the Condensed Consolidated Balance Sheets as follows: | |||||||||||||||
April 3, | September 26, | |||||||||||||||
(In millions) | 2015 | 2014 | ||||||||||||||
Intangible Assets: | ||||||||||||||||
Acquired existing technology | $ | 54.6 | $ | 54.6 | ||||||||||||
Patents, licenses and other | 29 | 28.8 | ||||||||||||||
Customer contracts and supplier relationship | 12.4 | 12.4 | ||||||||||||||
Accumulated amortization | (59.8 | ) | (56.9 | ) | ||||||||||||
Net carrying amount subject to amortization | $ | 36.2 | $ | 38.9 | ||||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments Reported in Condensed Consolidated Balance Sheets | The fair values of derivative instruments reported on the Company’s Condensed Consolidated Balance Sheets were as follows: | |||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||
Balance Sheet | 3-Apr-15 | 26-Sep-14 | Balance Sheet | 3-Apr-15 | 26-Sep-14 | |||||||||||||||||||||||||||||
(In millions) | Location | Fair Value | Fair Value | Location | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | $ | 1 | $ | 1.5 | Accrued liabilities | $ | 0.2 | $ | — | ||||||||||||||||||||||||
Total derivatives | $ | 1 | $ | 1.5 | $ | 0.2 | $ | — | ||||||||||||||||||||||||||
Outstanding Foreign Currency Forward Contracts | The Company had the following outstanding foreign currency forward contracts: | |||||||||||||||||||||||||||||||||
3-Apr-15 | ||||||||||||||||||||||||||||||||||
Notional | Notional | |||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||
(In millions) | Value Sold | Purchased | ||||||||||||||||||||||||||||||||
Australian Dollar | $ | 19.9 | $ | — | ||||||||||||||||||||||||||||||
Brazilian Real | 1.7 | — | ||||||||||||||||||||||||||||||||
British Pound | 13.4 | — | ||||||||||||||||||||||||||||||||
Canadian Dollar | — | 4.3 | ||||||||||||||||||||||||||||||||
Danish Krone | — | 0.3 | ||||||||||||||||||||||||||||||||
Euro | 192.8 | — | ||||||||||||||||||||||||||||||||
Hungarian Forint | 8 | — | ||||||||||||||||||||||||||||||||
Indian Rupee | 9.1 | — | ||||||||||||||||||||||||||||||||
Japanese Yen | 50.2 | — | ||||||||||||||||||||||||||||||||
New Zealand Dollar | 2.8 | — | ||||||||||||||||||||||||||||||||
Norwegian Krone | 3 | — | ||||||||||||||||||||||||||||||||
Swedish Krona | 2.5 | — | ||||||||||||||||||||||||||||||||
Swiss Franc | — | 52.8 | ||||||||||||||||||||||||||||||||
Totals | $ | 303.4 | $ | 57.4 | ||||||||||||||||||||||||||||||
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 Condensed Consolidated Balance Sheets and in the Condensed Consolidated Statements of Earnings that are related to the effective portion of the foreign currency forward contracts designated as cash flow hedges: | |||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Other | Location of Gain | Gain (Loss) Reclassified from Accumulated Other | ||||||||||||||||||||||||||||||||
Comprehensive Income | (Loss) Reclassified | Comprehensive Income into Net Earnings | ||||||||||||||||||||||||||||||||
(Effective Portion) | from Accumulated | (Effective Portion) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Other Comprehensive | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
April 3, | March 28, | April 3, | March 28, | Income into Net | April 3, | March 28, | April 3, | March 28, | ||||||||||||||||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | Earnings (Effective Portion) | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Foreign currency forward contracts | $ | 1.2 | $ | (1.1 | ) | $ | 2 | $ | 2.1 | Revenues | $ | 1.8 | $ | 1.7 | $ | 2.7 | $ | 1.3 | ||||||||||||||||
Gains (Losses) Related to Foreign Currency Forward Exchange Contracts that are Not Designated as Hedging Instruments | The following table presents the gains (losses) recognized in the Condensed Consolidated Statements of Earnings related to the foreign currency forward exchange contracts that are not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Net Earnings on Derivative | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||||||||||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 22.5 | $ | (3.2 | ) | $ | 34 | $ | 1.5 | |||||||||||||||||||||||||
Cash Flow Hedging | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
3-Apr-15 | ||||||||||||||||||||||||||||||||||
Notional Value | ||||||||||||||||||||||||||||||||||
(In millions) | Sold | |||||||||||||||||||||||||||||||||
Euro | $ | 22.8 | ||||||||||||||||||||||||||||||||
Japanese Yen | 24.2 | |||||||||||||||||||||||||||||||||
Totals | $ | 47 | ||||||||||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||||||
Apr. 03, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Accrued Product Warranty | The following table reflects the changes in the Company’s accrued product warranty: | |||||||
Six Months Ended | ||||||||
April 3, | March 28, | |||||||
(In millions) | 2015 | 2014 | ||||||
Accrued product warranty, at beginning of period | $ | 49.3 | $ | 53.2 | ||||
Charged to cost of revenues | 21.8 | 25.8 | ||||||
Actual product warranty expenditures | (28.1 | ) | (26.9 | ) | ||||
Accrued product warranty, at end of period | $ | 43 | $ | 52.1 | ||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Schedule of Net Periodic Benefit Costs | The Company’s net defined benefit costs were composed of the following: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Defined Benefit Plans | ||||||||||||||||
Service cost | $ | 1,184 | $ | 1,026 | $ | 2,371 | $ | 2,049 | ||||||||
Interest cost | 1,270 | 1,532 | 2,565 | 3,046 | ||||||||||||
Expected return on plan assets | (1,778 | ) | (1,957 | ) | (3,594 | ) | (3,892 | ) | ||||||||
Amortization of prior service cost | 46 | 42 | 93 | 85 | ||||||||||||
Recognized actuarial loss | 613 | 538 | 1,227 | 1,077 | ||||||||||||
Net periodic benefit cost | $ | 1,335 | $ | 1,181 | $ | 2,662 | $ | 2,365 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | |||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||
Schedule of Accumulated Other Comprehensive Earnings (Loss) and Related Tax Effects | The changes in accumulated other comprehensive earnings (loss) by component and related tax effects are summarized as follows: | |||||||||||||||||
(in thousands) | Net Unrealized Gains | Net | Cumulative | Accumulated | ||||||||||||||
(Losses) Defined | Unrealized | Translation | Other | |||||||||||||||
Benefit Pension and | Gains | Adjustment | Comprehensive | |||||||||||||||
Post-Retirement | (Losses) | Earnings | ||||||||||||||||
Benefit Plans | Cash Flow | (Loss) | ||||||||||||||||
Hedging | ||||||||||||||||||
Instruments | ||||||||||||||||||
Balance at September 26, 2014 | $ | (44,060 | ) | $ | 965 | $ | (15,516 | ) | $ | (58,611 | ) | |||||||
Other comprehensive earnings before reclassifications | — | 1,977 | (30,460 | ) | (28,483 | ) | ||||||||||||
Amounts reclassified out of other comprehensive earnings | 1,082 | (2,748 | ) | — | (1,666 | ) | ||||||||||||
Tax benefit (expense) | (151 | ) | 288 | — | 137 | |||||||||||||
Balance at April 3, 2015 | $ | (43,129 | ) | $ | 482 | $ | (45,976 | ) | $ | (88,623 | ) | |||||||
(in thousands) | Net Unrealized Gains | Net | Cumulative | Accumulated | ||||||||||||||
(Losses) Defined | Unrealized | Translation | Other | |||||||||||||||
Benefit Pension and | Gains | Adjustment | Comprehensive | |||||||||||||||
Post-Retirement | (Losses) | Earnings | ||||||||||||||||
Benefit Plans | Cash Flow | (Loss) | ||||||||||||||||
Hedging | ||||||||||||||||||
Instruments | ||||||||||||||||||
Balance at September 27, 2013 | $ | (40,081 | ) | $ | (691 | ) | $ | 701 | $ | (40,071 | ) | |||||||
Other comprehensive earnings before reclassifications | — | 2,078 | 990 | 3,068 | ||||||||||||||
Amounts reclassified out of other comprehensive earnings | 1,158 | (1,277 | ) | — | (119 | ) | ||||||||||||
Tax expense | (213 | ) | (300 | ) | — | (513 | ) | |||||||||||
Balance at March 28, 2014 | $ | (39,136 | ) | $ | (190 | ) | $ | 1,691 | $ | (37,635 | ) | |||||||
Schedule of Amounts Reclassified Out of Other Comprehensive Earnings | The amounts reclassified out of other comprehensive earnings into the Condensed Consolidated Statements of Earnings, with line item location, during each period were as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Comprehensive Earnings Components | Income (Loss) Before Taxes | Income (Loss) Before Taxes | Line Item in Statements of Earnings | |||||||||||||||
Unrealized losses on defined benefit pension and post-retirement benefit plans | $ | (541 | ) | $ | (578 | ) | $ | (1,082 | ) | $ | (1,158 | ) | Cost of revenues & Operating expenses | |||||
Unrealized gains and (losses) on cash flow hedging instruments | 1,877 | 1,627 | 2,748 | 1,277 | Revenues | |||||||||||||
Total amounts reclassified out of other comprehensive earnings | $ | 1,336 | $ | 1,049 | $ | 1,666 | $ | 119 | ||||||||||
Employee_Stock_Plans_Tables
Employee Stock Plans (Tables) | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Net Share-Based Compensation Expense | The table below summarizes the net share-based compensation expense recognized for employee stock awards and for the option component of the employee stock purchase plan shares: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Cost of revenues - Product | $ | 1,206 | $ | 717 | $ | 2,315 | $ | 1,424 | ||||||||
Cost of revenues - Service | 986 | 1,115 | 1,938 | 2,062 | ||||||||||||
Research and development | 1,654 | 1,320 | 3,392 | 2,621 | ||||||||||||
Selling, general and administrative | 8,655 | 6,444 | 17,593 | 12,533 | ||||||||||||
Total share-based compensation expense | $ | 12,501 | $ | 9,596 | $ | 25,238 | $ | 18,640 | ||||||||
Income tax benefit for share-based compensation | $ | (3,943 | ) | $ | (2,939 | ) | $ | (7,916 | ) | $ | (5,737 | ) | ||||
Fair Value of Employee Stock Option Plans With Weighted Average Assumptions | The fair value of options granted was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Employee Stock Option Plans | ||||||||||||||||
Expected term (in years) | 4.13 | 4.11 | 4.15 | 4.13 | ||||||||||||
Risk-free interest rate | 1.3 | % | 1.2 | % | 1.3 | % | 1.2 | % | ||||||||
Expected volatility | 22.1 | % | 24.6 | % | 22.1 | % | 24.6 | % | ||||||||
Expected dividend | — | % | — | % | — | % | — | % | ||||||||
Weighted average fair value at grant date | $ | 18.53 | $ | 18.21 | $ | 18.56 | $ | 18.23 | ||||||||
Fair Value of Employee Stock Purchase Plan With Weighted Average Assumptions | The option component of employee stock purchase plan shares was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: | |||||||||||||||
Six Months Ended | ||||||||||||||||
April 3, | March 28, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
Expected term (in years) | 0.5 | 0.5 | ||||||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | ||||||||||||
Expected volatility | 8.3 | % | 14.5 | % | ||||||||||||
Expected dividend | — | % | — | % | ||||||||||||
Weighted average fair value at grant date | $ | 14.24 | $ | 13.98 | ||||||||||||
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 26, 2014 | 8,168 | |||||||||||||||
Granted | (1,790 | ) | ||||||||||||||
Cancelled or expired | 273 | |||||||||||||||
Balance at April 3, 2015 | 6,651 | |||||||||||||||
Activity Under Employee Stock Plans | Activity under the Company’s employee stock plans is presented below: | |||||||||||||||
Options Outstanding | ||||||||||||||||
(In thousands, except per share amounts) | Number of | Weighted | Weighted | Aggregate | ||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value (1) | ||||||||||||||
Price | Term (in years) | |||||||||||||||
Balance at September 26, 2014 | 3,343 | $ | 60.53 | |||||||||||||
Granted | 615 | 92.43 | ||||||||||||||
Cancelled or expired | (1 | ) | 79.91 | |||||||||||||
Exercised | (1,169 | ) | 52.51 | |||||||||||||
Balance at April 3, 2015 | 2,788 | $ | 70.92 | 4.3 | $ | 63,761 | ||||||||||
Exercisable at April 3, 2015 | 1,662 | $ | 60.14 | 3 | $ | 55,927 | ||||||||||
-1 | The aggregate intrinsic value represents the total pre-tax intrinsic value of options, which is computed based on the difference between the exercise price and VMS’s closing common stock price of $93.79 as of April 2, 2015, the last trading date of the second quarter of fiscal year 2015, and which would have been received by the option holders had all option holders exercised and sold their options 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 | Weighted Average | ||||||||||||||
Shares | Grant-Date Fair | |||||||||||||||
Value | ||||||||||||||||
Balance at September 26, 2014 | 1,126 | $ | 72.08 | |||||||||||||
Granted | 399 | 93.21 | ||||||||||||||
Vested | (491 | ) | 67.5 | |||||||||||||
Cancelled or expired | (74 | ) | 65.66 | |||||||||||||
Balance at April 3, 2015 | 960 | $ | 84.04 | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
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: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(In thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net earnings | $ | 105,969 | $ | 92,788 | $ | 199,283 | $ | 190,748 | ||||||||
Weighted average shares outstanding - basic | 100,157 | 104,152 | 100,315 | 105,038 | ||||||||||||
Dilutive effect of potential common shares | 869 | 1,294 | 1,026 | 1,376 | ||||||||||||
Weighted average shares outstanding - diluted | 101,026 | 105,446 | 101,341 | 106,414 | ||||||||||||
Net earnings per share - basic | $ | 1.06 | $ | 0.89 | $ | 1.99 | $ | 1.82 | ||||||||
Net earnings per share - diluted | $ | 1.05 | $ | 0.88 | $ | 1.97 | $ | 1.79 | ||||||||
Anti-dilutive employee shared based awards, excluded | 956 | 657 | 1,194 | 1,040 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Operating Results Information for Each Business Segment | The following table summarizes selected operating results information for each reportable segment: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | ||||||||||||||||
Oncology Systems | $ | 589.4 | $ | 603.1 | $ | 1,152.70 | $ | 1,144.50 | ||||||||
Imaging Components | 155.5 | 169 | 321.5 | 330.2 | ||||||||||||
Total reportable segments | 744.9 | 772.1 | 1,474.20 | 1,474.70 | ||||||||||||
Other | 14.5 | 6.4 | 23.1 | 15.3 | ||||||||||||
Total company | $ | 759.4 | $ | 778.5 | $ | 1,497.30 | $ | 1,490.00 | ||||||||
Operating Earnings (Loss) | ||||||||||||||||
Oncology Systems | $ | 125.9 | $ | 124.9 | $ | 252 | $ | 245.8 | ||||||||
Imaging Components | 40 | 42.2 | 81.2 | 82.9 | ||||||||||||
Total reportable segments | 165.9 | 167.1 | 333.2 | 328.7 | ||||||||||||
Other | (12.7 | ) | (14.5 | ) | (26.3 | ) | (28.7 | ) | ||||||||
Corporate | (7.2 | ) | (25.1 | ) | (31.4 | ) | (30.5 | ) | ||||||||
Total company | $ | 146 | $ | 127.5 | $ | 275.5 | $ | 269.5 | ||||||||
Balance_Sheet_Components_Avail
Balance Sheet Components - Available-for-Sale Securities (Detail) (USD $) | Apr. 03, 2015 | Sep. 26, 2014 |
In Millions, unless otherwise specified | ||
Balance Sheet Components [Abstract] | ||
Amortized cost | $80 | $75.60 |
Unrealized gain (loss) | 0 | 0 |
Fair value | $80 | $75.60 |
Balance_Sheet_Components_Addit
Balance Sheet Components - Additional Information (Detail) (USD $) | Apr. 03, 2015 | Sep. 26, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale corporate debt securities | $80 | $75.60 |
Tranche A loan | Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale corporate debt securities | 70.1 | 66.2 |
Tranche B loan | Other Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale corporate debt securities | $9.90 | $9.40 |
Balance_Sheet_Components_Compo
Balance Sheet Components - Components of Inventories (Detail) (USD $) | Apr. 03, 2015 | Sep. 26, 2014 | |
Balance Sheet Components [Abstract] | |||
Raw materials and parts | $328,000,000 | $296,100,000 | |
Work-in-process | 136,800,000 | 124,500,000 | |
Finished goods | 187,000,000 | 151,700,000 | |
Total inventories | $651,779,000 | $572,261,000 | [1] |
[1] | The condensed consolidated balance sheet as of September 26, 2014 was derived from audited financial statements as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Balance_Sheet_Components_Compo1
Balance Sheet Components - Components of Other Long-Term Liabilities (Detail) (USD $) | Apr. 03, 2015 | Sep. 26, 2014 | |
Balance Sheet Components [Abstract] | |||
Long-term income taxes payable | $46,100,000 | $55,200,000 | |
Long-term deferred income taxes | 41,700,000 | 31,500,000 | |
Other | 60,100,000 | 65,000,000 | |
Total other long-term liabilities | $147,945,000 | $151,716,000 | [1] |
[1] | The condensed consolidated balance sheet as of September 26, 2014 was derived from audited financial statements as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Fair_Value_Assets_and_Liabilit
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Apr. 03, 2015 | Sep. 26, 2014 |
In Millions, unless otherwise specified | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale corporate debt securities | $80 | $75.60 |
Derivative assets | 1 | 1.5 |
Total assets measured at fair value | 81 | 77.1 |
Derivative liabilities | -0.2 | 0 |
Contingent consideration | -6.3 | -7.5 |
Total liabilities measured at fair value | -6.5 | -7.5 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale corporate debt securities | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Derivative liabilities | 0 | |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale corporate debt securities | 0 | 0 |
Derivative assets | 1 | 1.5 |
Total assets measured at fair value | 1 | 1.5 |
Derivative liabilities | -0.2 | |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | -0.2 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale corporate debt securities | 80 | 75.6 |
Derivative assets | 0 | 0 |
Total assets measured at fair value | 80 | 75.6 |
Derivative liabilities | 0 | |
Contingent consideration | -6.3 | -7.5 |
Total liabilities measured at fair value | ($6.30) | ($7.50) |
Fair_Value_Reconciliation_for_
Fair Value - Reconciliation for Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Apr. 03, 2015 |
Available-For Sale Corporate Debt Security | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $75.60 |
Additions | 4.4 |
Settlements | 0 |
Change in fair value recognized in earnings | 0 |
Ending balance | 80 |
Contingent Consideration | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | -7.5 |
Additions | 0 |
Settlements | 1.1 |
Change in fair value recognized in earnings | 0.1 |
Ending balance | ($6.30) |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Apr. 03, 2015 | Mar. 28, 2014 | Sep. 26, 2014 | ||
Fair Value Disclosures [Abstract] | ||||
Transfers of assets or liabilities between fair value measurement levels | $0 | $0 | ||
Fair value of current maturities of long-term debt | 50,000,000 | 50,000,000 | [1] | |
Long-term debt | $362,500,000 | $387,500,000 | [1] | |
[1] | The condensed consolidated balance sheet as of September 26, 2014 was derived from audited financial statements as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Activity of Goodwill by Reportable Operating Segment (Detail) (USD $) | 6 Months Ended | |
Apr. 03, 2015 | ||
Goodwill [Roll Forward] | ||
Balance, beginning | $240,626,000 | [1] |
Foreign currency translation adjustments | -8,000,000 | |
Balance, ending | 232,633,000 | |
Oncology Systems | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 148,300,000 | |
Foreign currency translation adjustments | 0 | |
Balance, ending | 148,300,000 | |
Imaging Components | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 36,000,000 | |
Foreign currency translation adjustments | 0 | |
Balance, ending | 36,000,000 | |
Other | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 56,300,000 | |
Foreign currency translation adjustments | -8,000,000 | |
Balance, ending | $48,300,000 | |
[1] | The condensed consolidated balance sheet as of September 26, 2014 was derived from audited financial statements as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) (USD $) | Apr. 03, 2015 | Sep. 26, 2014 |
In Millions, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ||
Accumulated amortization | ($59.80) | ($56.90) |
Net carrying amount subject to amortization | 36.2 | 38.9 |
Acquired existing technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 54.6 | 54.6 |
Patents, licenses and other | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 29 | 28.8 |
Customer contracts and supplier relationship | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | $12.40 | $12.40 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 | Sep. 26, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortization expense for intangible assets | $1,700,000 | $800,000 | $3,286,000 | $1,938,000 | |
Future amortization expense, remaining fiscal year 2015 | 4,900,000 | 4,900,000 | |||
Future amortization expense, fiscal year 2016 | 9,400,000 | 9,400,000 | |||
Future amortization expense, fiscal year 2017 | 5,200,000 | 5,200,000 | |||
Future amortization expense, fiscal year 2018 | 5,000,000 | 5,000,000 | |||
Future amortization expense, fiscal year 2019 | 4,900,000 | 4,900,000 | |||
Future amortization expense, fiscal year 2020 | 3,900,000 | 3,900,000 | |||
Future amortization expense, thereafter | 2,900,000 | 2,900,000 | |||
In Process Research and Development | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Research and development asset acquired fair value | $2,000,000 | $2,000,000 | $2,000,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2013 | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 | Sep. 26, 2014 | |
Related Party Transactions [Abstract] | ||||||
Ownership interest in dpiX Holding LLC | 40.00% | 40.00% | ||||
dpiX Holding LLC's ownership interest in dpiX LLC | 100.00% | 100.00% | ||||
Income (loss) on equity investment in affiliate | $900,000 | $800,000 | $525,000 | ($600,000) | ||
Carrying value of the equity investment in dpiX Holding | 48,400,000 | 48,400,000 | 49,700,000 | |||
Purchases of glass transistor arrays from dpiX | 5,600,000 | 5,700,000 | 9,900,000 | 9,200,000 | ||
Percentage of manufacturing capacity | 50.00% | |||||
Percentage of fixed costs | 50.00% | |||||
Fixed Cost Commitments | $8,900,000 |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) | 1 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||
Mar. 28, 2014 | Apr. 03, 2015 | Apr. 06, 2015 | Apr. 06, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Sep. 26, 2014 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Sep. 26, 2014 | Apr. 03, 2015 | Sep. 26, 2014 | |
Sumitomo Credit Facility | Sumitomo Credit Facility | Sumitomo Credit Facility | Sumitomo Credit Facility | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Two Thousand Thirteen Credit Agreement | Revolving Credit Facility | 2013 Revolving Credit Facility | 2013 Revolving Credit Facility | |
USD ($) | Subsequent Event | Subsequent Event | Two Thousand Thirteen Term Loan Facility | Two Thousand Thirteen Term Loan Facility | Two Thousand Thirteen Term Loan Facility | Two Thousand Thirteen Term Loan Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | USD ($) | Revolving Credit Facility | Revolving Credit Facility | |||
USD ($) | JPY (¥) | USD ($) | USD ($) | Minimum | Maximum | USD ($) | Minimum | Maximum | Letter of Credit | Swing Line Loans | USD ($) | USD ($) | |||||
USD ($) | 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 | |||||||||||||
Loan facility maximum commitment amount | 100,000,000 | 200,000,000 | |||||||||||||||
Line of credit, interest rate | 1.00% | 1.25% | 1.25% | 1.50% | |||||||||||||
Margin added if base rate is based on federal funds rate | 0.50% | 0.50% | |||||||||||||||
Percentage added to Eurodollar base rate before margin | 1.00% | 1.00% | |||||||||||||||
Line of credit, interest rate calculation (base rate margin) | 0.00% | 0.25% | 0.25% | 0.50% | |||||||||||||
Debt, long-term and short-term, combined amount | 412,500,000 | 437,500,000 | |||||||||||||||
Credit facility weighted average interest rate | 1.30% | 1.28% | 1.55% | ||||||||||||||
Line of credit, amount outstanding | $0 | $25,200,000 | ¥ 3,000,000,000 | $0 | $100,000,000 | $0 | |||||||||||
Percentage of voting rights pledged | 65.00% | ||||||||||||||||
Sumitomo credit facility expiration date | 29-Feb-16 | ||||||||||||||||
Credit facility accrued interest rate per annum | 0.50% |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments Reported in Condensed Consolidated Balance Sheets (Detail) (USD $) | Apr. 03, 2015 | Sep. 26, 2014 |
In Millions, unless otherwise specified | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | $1 | $1.50 |
Derivative liabilities | 0.2 | 0 |
Foreign exchange forward contracts | Derivatives Designated as Hedging Instruments | Prepaid expenses and other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 1 | 1.5 |
Foreign exchange forward contracts | Derivatives Designated as Hedging Instruments | Accrued Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $0.20 | $0 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Apr. 03, 2015 |
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 | $0.80 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Outstanding Foreign Currency Forward Contracts (Detail) (Cash Flow Hedging, USD $) | Apr. 03, 2015 |
In Millions, unless otherwise specified | |
Notional Amount of Derivatives [Abstract] | |
Foreign currency, notional values | $47 |
Euro | |
Notional Amount of Derivatives [Abstract] | |
Foreign currency, notional values | 22.8 |
Japanese Yen | |
Notional Amount of Derivatives [Abstract] | |
Foreign currency, notional values | $24.20 |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities - Effective Portion of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Detail) (Foreign currency forward contracts, USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Foreign currency forward contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $1.20 | ($1.10) | $2 | $2.10 |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Net Earnings (Effective Portion) | $1.80 | $1.70 | $2.70 | $1.30 |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities - Outstanding Foreign Currency Forward Contracts that Were Entered into to Hedge Balance Sheet Exposures (Detail) (USD $) | Apr. 03, 2015 |
In Millions, unless otherwise specified | |
Notional Value Sold | |
Derivative [Line Items] | |
Notional Value | $303.40 |
Notional Value Sold | Australian Dollar | |
Derivative [Line Items] | |
Notional Value | 19.9 |
Notional Value Sold | Brazilian Real | |
Derivative [Line Items] | |
Notional Value | 1.7 |
Notional Value Sold | British Pound | |
Derivative [Line Items] | |
Notional Value | 13.4 |
Notional Value Sold | Canadian Dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Sold | Danish Krone | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Sold | Euro | |
Derivative [Line Items] | |
Notional Value | 192.8 |
Notional Value Sold | Hungarian Forint | |
Derivative [Line Items] | |
Notional Value | 8 |
Notional Value Sold | Indian Rupee | |
Derivative [Line Items] | |
Notional Value | 9.1 |
Notional Value Sold | Japanese Yen | |
Derivative [Line Items] | |
Notional Value | 50.2 |
Notional Value Sold | New Zealand Dollar | |
Derivative [Line Items] | |
Notional Value | 2.8 |
Notional Value Sold | Norwegian Krone | |
Derivative [Line Items] | |
Notional Value | 3 |
Notional Value Sold | Swedish Krona | |
Derivative [Line Items] | |
Notional Value | 2.5 |
Notional Value Sold | Swiss Franc | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Purchased | |
Derivative [Line Items] | |
Notional Value | 57.4 |
Notional Value Purchased | Australian Dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Purchased | Brazilian Real | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Purchased | British Pound | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Purchased | Canadian Dollar | |
Derivative [Line Items] | |
Notional Value | 4.3 |
Notional Value Purchased | Danish Krone | |
Derivative [Line Items] | |
Notional Value | 0.3 |
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 | New Zealand Dollar | |
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 | $52.80 |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities - Gains (Losses) Related to Foreign Currency Forward Exchange Contracts that are Not Designated as Hedging Instruments (Detail) (Selling, general and administrative expenses, USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Selling, general and administrative expenses | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Net Earnings on Derivative not designated as hedging instrument | $22.50 | ($3.20) | $34 | $1.50 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Accrued Product Warranty (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrued product warranty, at beginning of period | $49.30 | $53.20 |
Charged to cost of revenues | 21.8 | 25.8 |
Actual product warranty expenditures | -28.1 | -26.9 |
Accrued product warranty, at end of period | $43 | $52.10 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||||
Apr. 03, 2015 | Jun. 27, 2014 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 | Sep. 26, 2014 | Apr. 30, 2012 | |
Commitments And Contingencies [Line Items] | |||||||
Long term accrued product warranty costs | $1,700,000 | $1,700,000 | $2,000,000 | ||||
Commitment outstanding | 300,000 | 300,000 | |||||
Contingent consideration | 6,300,000 | 6,300,000 | 7,500,000 | ||||
Fixed Cost Commitments | 8,900,000 | ||||||
Environmental cleanup costs, third-party claim costs, project management costs and legal costs | 500,000 | 300,000 | 800,000 | 500,000 | |||
Receivables of past and future environmental-related expenditures | 2,100,000 | 2,100,000 | 2,200,000 | ||||
Full settlement of the lawsuit to the University of Pittsburgh | 35,600,000 | ||||||
Loss Contingency Accrual | 5,000,000 | 5,000,000 | |||||
Litigation settlement | 25,100,000 | ||||||
Prepaid Royalties | 5,500,000 | ||||||
Enhanced Retirement Program and Workforce Reduction | |||||||
Commitments And Contingencies [Line Items] | |||||||
Restructuring charges | 3,100,000 | 0 | 13,600,000 | 0 | |||
Payments for restructuring charges | 7,500,000 | ||||||
Cercla sites and one past facility | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated environmental remediation costs, minimum | 1,600,000 | 1,600,000 | |||||
Estimated environmental remediation costs, maximum | 9,800,000 | 9,800,000 | |||||
Amount accrued for environmental remediation expense | 1,600,000 | 1,600,000 | |||||
Cercla sites and one past facility | Minimum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated time frames to resolve contingency related to environmental remediation contingencies, years | 1 year | ||||||
Cercla sites and one past facility | Maximum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated time frames to resolve contingency related to environmental remediation contingencies, years | 30 years | ||||||
Other sites | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated environmental remediation costs, minimum | 5,300,000 | 5,300,000 | |||||
Estimated environmental remediation costs, maximum | 35,700,000 | 35,700,000 | |||||
Amount accrued for environmental remediation expense | 7,600,000 | 7,600,000 | |||||
Estimated environmental remediation costs, best estimate, undiscounted | 9,300,000 | ||||||
Discount rate for environmental remediation costs, net of inflation | 4.00% | 4.00% | |||||
Other sites | Minimum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated time frames to resolve contingency related to environmental remediation contingencies, years | 1 year | ||||||
Other sites | Maximum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated time frames to resolve contingency related to environmental remediation contingencies, years | 30 years | ||||||
Siemens AG | Strategic Global Partnership | |||||||
Commitments And Contingencies [Line Items] | |||||||
Fixed fee committed | 5,000,000 | 5,000,000 | 10,000,000 | ||||
License fee committed | $12,000,000 | $12,000,000 | $20,000,000 | ||||
Patents | |||||||
Commitments And Contingencies [Line Items] | |||||||
Finite-lived intangible asset, useful life | 2 years 6 months |
Retirement_Plans_Schedule_of_N
Retirement Plans - Schedule of Net Periodic Benefit Costs (Detail) (Defined Benefit Plans, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $1,184 | $1,026 | $2,371 | $2,049 |
Interest cost | 1,270 | 1,532 | 2,565 | 3,046 |
Expected return on plan assets | -1,778 | -1,957 | -3,594 | -3,892 |
Amortization of prior service cost | 46 | 42 | 93 | 85 |
Recognized actuarial loss | 613 | 538 | 1,227 | 1,077 |
Net periodic benefit cost | $1,335 | $1,181 | $2,662 | $2,365 |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (Defined Benefit Plans, USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Apr. 03, 2015 |
Defined Benefit Plans | |
Retirement Plans [Line Items] | |
Contributions by employer | $3 |
Expected total contribution to the defined benefit plans for the fiscal year | $7.10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 28.00% | 27.60% | 28.20% | 29.50% |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Mar. 27, 2015 | Nov. 07, 2014 | Feb. 03, 2015 | Feb. 04, 2015 | Aug. 31, 2012 | Mar. 28, 2014 | Nov. 30, 2013 | Jan. 02, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 29, 2015 | Aug. 31, 2014 |
6-Jan-15 | ||||||||||||
Shareholders Equity [Line Items] | ||||||||||||
Common stock repurchased and retired, shares | 74,975 | 419,874 | ||||||||||
Payment for accelerated share repurchase | $45 | |||||||||||
Percent of shares expected to be repurchased that have been repurchased | 80.00% | |||||||||||
7-Apr-15 | ||||||||||||
Shareholders Equity [Line Items] | ||||||||||||
Common stock repurchased and retired, shares | 592,280 | |||||||||||
Payment for accelerated share repurchase | 70 | |||||||||||
Percent of shares expected to be repurchased that have been repurchased | 80.00% | |||||||||||
8-Jul-15 | ||||||||||||
Shareholders Equity [Line Items] | ||||||||||||
Payment for accelerated share repurchase | $45 | |||||||||||
Percent of shares expected to be repurchased that have been repurchased | 80.00% | |||||||||||
August 2012 Repurchase Program | ||||||||||||
Shareholders Equity [Line Items] | ||||||||||||
Number of shares authorized to be repurchased by VMS Board of Directors | 8,000,000 | |||||||||||
Common stock repurchase period | September 29, 2012 through December 31, 2013 | |||||||||||
Common stock repurchased and retired, shares | 2,000,000 | |||||||||||
Number of shares remain available for repurchase | 0 | 0 | ||||||||||
November 2013 Repurchase Program | ||||||||||||
Shareholders Equity [Line Items] | ||||||||||||
Number of shares authorized to be repurchased by VMS Board of Directors | 6,000,000 | |||||||||||
Common stock repurchase period | December 30, 2013 through December 31, 2014 | |||||||||||
Common stock repurchased and retired, shares | 2,000,000 | 250,000 | ||||||||||
Number of shares remain available for repurchase | 0 | 0 | ||||||||||
August 2014 Repurchase Program | ||||||||||||
Shareholders Equity [Line Items] | ||||||||||||
Number of shares authorized to be repurchased by VMS Board of Directors | 6,000,000 | |||||||||||
Common stock repurchased and retired, shares | 824,849 | 2,074,849 | ||||||||||
Number of shares remain available for repurchase | 3,925,151 | 3,925,151 | ||||||||||
Subsequent Event | April 7, 2015 | ||||||||||||
Shareholders Equity [Line Items] | ||||||||||||
Common stock repurchased and retired, shares | 151,604 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Earnings (Loss) and Related Tax Effects (Detail) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | ($58,611) | [1] | ($40,071) |
Other comprehensive earnings before reclassifications | -28,483 | 3,068 | |
Amounts reclassified out of other comprehensive earnings | -1,666 | -119 | |
Tax benefit (expense) | 137 | -513 | |
Ending Balance | -88,623 | -37,635 | |
Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | -44,060 | -40,081 | |
Other comprehensive earnings before reclassifications | 0 | 0 | |
Amounts reclassified out of other comprehensive earnings | 1,082 | 1,158 | |
Tax benefit (expense) | -151 | -213 | |
Ending Balance | -43,129 | -39,136 | |
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 965 | -691 | |
Other comprehensive earnings before reclassifications | 1,977 | 2,078 | |
Amounts reclassified out of other comprehensive earnings | -2,748 | -1,277 | |
Tax benefit (expense) | 288 | -300 | |
Ending Balance | 482 | -190 | |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | -15,516 | 701 | |
Other comprehensive earnings before reclassifications | -30,460 | 990 | |
Amounts reclassified out of other comprehensive earnings | 0 | 0 | |
Tax benefit (expense) | 0 | 0 | |
Ending Balance | ($45,976) | $1,691 | |
[1] | The condensed consolidated balance sheet as of September 26, 2014 was derived from audited financial statements as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Stockholders_Equity_Schedule_o1
Stockholders' Equity - Schedule of Amounts Reclassified Out of Other Comprehensive Earnings (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||
Revenues | $759,406 | $778,506 | $1,497,260 | $1,490,008 |
Reclassification Out of Other Comprehensive Earnings | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 1,336 | 1,049 | 1,666 | 119 |
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 | -541 | -578 | -1,082 | -1,158 |
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 | $1,877 | $1,627 | $2,748 | $1,277 |
Employee_Stock_Plans_Net_Share
Employee Stock Plans - Net Share-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | $12,501 | $9,596 | $25,238 | $18,640 |
Income tax benefit for share-based compensation | -3,943 | -2,939 | -7,916 | -5,737 |
Cost of revenues - Product | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 1,206 | 717 | 2,315 | 1,424 |
Cost of revenues - Service | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 986 | 1,115 | 1,938 | 2,062 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 1,654 | 1,320 | 3,392 | 2,621 |
Selling, general and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | $8,655 | $6,444 | $17,593 | $12,533 |
Employee_Stock_Plans_Fair_Valu
Employee Stock Plans - Fair Value with Weighted Average Assumptions (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 | |
Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | 6 months | ||
Risk-free interest rate | 0.10% | 0.10% | ||
Expected volatility | 8.30% | 14.50% | ||
Expected dividend | 0.00% | 0.00% | ||
Weighted average fair value at grant date (usd per share) | $14.24 | $13.98 | ||
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 1 month 10 days | 4 years 1 month 24 days | 4 years 1 month 17 days |
Risk-free interest rate | 1.30% | 1.20% | 1.30% | 1.20% |
Expected volatility | 22.10% | 24.60% | 22.10% | 24.60% |
Expected dividend | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted average fair value at grant date (usd per share) | $18.53 | $18.21 | $18.56 | $18.23 |
Employee_Stock_Plans_Summary_o
Employee Stock Plans - Summary of Share-Based Awards Available for Grant (Detail) | 6 Months Ended |
In Thousands, unless otherwise specified | Apr. 03, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |
Shares Available for Grant, Beginning Balance | 8,168 |
Shares Available for Grant, Granted | -1,790 |
Shares Available for Grant, Cancelled or expired | 273 |
Shares Available for Grant, Ending Balance | 6,651 |
Employee_Stock_Plans_Additiona
Employee Stock Plans - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | |
In Millions, except Share data, unless otherwise specified | Apr. 03, 2015 | Sep. 26, 2014 | Feb. 08, 2012 |
performance_period | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares counted against the available for grant | 2.5 | ||
Stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation expense related to outstanding stock awards | $16.40 | ||
Weighted average period unrecognized compensation expense is expected to be recognized, years | 1 year 9 months 18 days | ||
Restricted stocks, restricted stock units, deferred stock units and performance units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation expense related to outstanding stock awards | $54.90 | ||
Weighted average period unrecognized compensation expense is expected to be recognized, years | 2 years | ||
Third Amended and Restated 2005 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares counted against the available for grant | 2.6 | ||
Third Amended and Restated 2005 Plan | Performance units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award service period | 3 years | ||
Number of performance periods | 1 | ||
Performance period term | 3 years | ||
Third Amended and Restated 2005 Plan | Performance units, company performance | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance period term | 1 year | ||
Third Amended and Restated 2005 Plan | Performance units, total shareholder return performance | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance period term | 3 years |
Employee_Stock_Plans_Activity_
Employee Stock Plans - Activity Under Employee Stock Plans (Detail) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Apr. 03, 2015 |
Number of Shares | |
Number of Shares, Options Outstanding | 3,343 |
Number of Shares, Granted | 615 |
Number of Shares, Cancelled or expired | -1 |
Number of Shares, Exercised | -1,169 |
Number of Shares, Options Outstanding | 2,788 |
Number of Shares, Options Exercisable | 1,662 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Options Outstanding | $60.53 |
Weighted Average Exercise Price, Granted | $92.43 |
Weighted Average Exercise Price, Cancelled or expired | $79.91 |
Weighted Average Exercise Price, Exercised | $52.51 |
Weighted Average Exercise Price, Options Outstanding | $70.92 |
Weighted Average Exercise Price, Options Exercisable | $60.14 |
Weighted Average Remaining Contractual Term | |
Weighted Average Remaining Contractual Term, Option Outstanding | 4 years 3 months 18 days |
Weighted Average Remaining Contractual Term, Exercisable | 3 years |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Option Outstanding | $63,761 |
Aggregate Intrinsic Value, Exercisable | $55,927 |
Closing price of VMS common stock | $93.79 |
Employee_Stock_Plans_Activity_1
Employee Stock Plans - Activity for Restricted Stock, Restricted Stock Units, Deferred Stock Units and Performance Units (Detail) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Apr. 03, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested Shares, Beginning Balance | 1,126 |
Granted | 399 |
Vested | -491 |
Cancelled or expired | -74 |
Nonvested Shares, Ending Balance | 960 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant-Date Fair Value, Beginning Balance | $72.08 |
Weighted Average Grant-Date Fair Value, Granted | $93.21 |
Weighted Average Grant-Date Fair Value, Vested | $67.50 |
Weighted Average Grant-Date Fair Value, Cancelled or expired | $65.66 |
Weighted Average Grant-Date Fair Value, Ending Balance | $84.04 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Net Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Earnings Per Share [Abstract] | ||||
Net earnings | $105,969 | $92,788 | $199,283 | $190,748 |
Weighted average shares outstanding - basic | 100,157 | 104,152 | 100,315 | 105,038 |
Dilutive effect of potential common shares | 869 | 1,294 | 1,026 | 1,376 |
Weighted average shares outstanding - diluted | 101,026 | 105,446 | 101,341 | 106,414 |
Net earnings per share - basic (usd per share) | $1.06 | $0.89 | $1.99 | $1.82 |
Net earnings per share - diluted (usd per share) | $1.05 | $0.88 | $1.97 | $1.79 |
Anti-dilutive employee shared based awards, excluded | 956 | 657 | 1,194 | 1,040 |
Business_Combination_Additiona
Business Combination - Additional Information (Detail) (MeVis Medical Solutions AG (MeVis)) | Apr. 03, 2015 | Apr. 21, 2015 | Apr. 21, 2015 | Apr. 03, 2015 |
In Millions, except Per Share data, unless otherwise specified | EUR (€) | Subsequent Event | Subsequent Event | Other Assets |
USD ($) | USD ($) | |||
Business Acquisition [Line Items] | ||||
Restricted cash to fund the tender offer | $34.70 | |||
Voluntary tender offer, share price | € 17.50 | |||
Percent of outstanding shares acquired | 73.50% | |||
Payments to acquire businesses, gross | $25.50 |
CPTC_Loans_Additional_Informat
CPTC Loans - Additional Information (Detail) (USD $) | 1 Months Ended | |||
In Millions, unless otherwise specified | Jun. 27, 2014 | Sep. 30, 2011 | Apr. 03, 2015 | Sep. 26, 2014 |
Variable Interest Entity [Line Items] | ||||
Loan facility to CPTC | $165.30 | |||
CPTC loan facility, Varian's maximum loan commitment | 80.3 | |||
Pro rata share of the Company's obligation to fund the initial distribution and subsequent advances | 45.80% | |||
Available-for-sale corporate debt securities | 80 | 75.6 | ||
CPTC loan facility, interest rate margin | 7.00% | |||
CPTC loan facility, minimum interest rate | 9.00% | |||
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 | 22 | 20.1 | ||
Tranche A loan | ||||
Variable Interest Entity [Line Items] | ||||
CPTC loan facility, Varian's maximum loan commitment | 70.3 | 115.3 | 70.3 | |
Pro rata share of the Company's obligation to fund the initial distribution and subsequent advances | 69.75% | |||
Tranche B loan | ||||
Variable Interest Entity [Line Items] | ||||
CPTC loan facility, Varian's maximum loan commitment | 10 | 10 | ||
CPTC | ||||
Variable Interest Entity [Line Items] | ||||
Loan facility to CPTC | 175.3 | |||
J.P. Morgan | Tranche A loan | ||||
Variable Interest Entity [Line Items] | ||||
Sale Of Portion Of Tranche A Loan Commitment | 45 | |||
Sale of a portion of the outstanding Tranche A loan to JP Morgan chase Bank | 38.1 | |||
Remaining obligation to fund Tranche A loan | 6.9 | |||
Short-term Investments | Tranche A loan | ||||
Variable Interest Entity [Line Items] | ||||
Available-for-sale corporate debt securities | 70.1 | 66.2 | ||
Other Assets | Tranche B loan | ||||
Variable Interest Entity [Line Items] | ||||
Available-for-sale corporate debt securities | $9.90 | $9.40 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 6 Months Ended |
Apr. 03, 2015 | |
segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Number Of Businesses Under Other Category | 2 |
Segment_Information_Operating_
Segment Information - Operating Results Information for Each Reportable Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Apr. 03, 2015 | Mar. 28, 2014 |
Segment Reporting Information [Line Items] | ||||
Revenues | $759,406 | $778,506 | $1,497,260 | $1,490,008 |
Operating Earnings (Loss) | 146,036 | 127,544 | 275,486 | 269,538 |
Operating Segments | Oncology Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 589,400 | 603,100 | 1,152,700 | 1,144,500 |
Operating Earnings (Loss) | 125,900 | 124,900 | 252,000 | 245,800 |
Operating Segments | Imaging Components | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 155,500 | 169,000 | 321,500 | 330,200 |
Operating Earnings (Loss) | 40,000 | 42,200 | 81,200 | 82,900 |
Operating Segments | Total reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 744,900 | 772,100 | 1,474,200 | 1,474,700 |
Operating Earnings (Loss) | 165,900 | 167,100 | 333,200 | 328,700 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 14,500 | 6,400 | 23,100 | 15,300 |
Operating Earnings (Loss) | -12,700 | -14,500 | -26,300 | -28,700 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating Earnings (Loss) | ($7,200) | ($25,100) | ($31,400) | ($30,500) |