Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 11, 2016 | Apr. 01, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
FY | FY | ||
Trading Symbol | VAR | ||
Entity Registrant Name | VARIAN MEDICAL SYSTEMS INC | ||
Entity Central Index Key | 203,527 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 93,410,047 | ||
Entity Public Float | $ 7,731,668,012 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Revenues: | |||
Product | $ 2,142.3 | $ 2,077.9 | $ 2,083.8 |
Service | 1,075.5 | 1,021.2 | 966 |
Total revenues | 3,217.8 | 3,099.1 | 3,049.8 |
Cost of revenues: | |||
Product | 1,411.9 | 1,390.2 | 1,314.6 |
Service | 444.6 | 426.2 | 433.5 |
Total cost of revenues | 1,856.5 | 1,816.4 | 1,748.1 |
Gross margin | 1,361.3 | 1,282.7 | 1,301.7 |
Operating expenses: | |||
Research and development | 253.5 | 245.2 | 234.8 |
Selling, general and administrative | 540.1 | 488.5 | 470.6 |
Separation costs | 16.9 | 0 | 0 |
Litigation settlement | 0 | 0 | 25.1 |
Total operating expenses | 810.5 | 733.7 | 730.5 |
Operating earnings | 550.8 | 549 | 571.2 |
Interest income | 17.4 | 13.6 | 10.5 |
Interest expense | (11.8) | (7.9) | (7.2) |
Earnings before taxes | 556.4 | 554.7 | 574.5 |
Taxes on earnings | 153.7 | 142.7 | 170.8 |
Net earnings | 402.7 | 412 | 403.7 |
Less: Net earnings attributable to noncontrolling interests | 0.4 | 0.5 | 0 |
Net earnings attributable to Varian | $ 402.3 | $ 411.5 | $ 403.7 |
Net earnings per share - basic (in dollars per share) | $ 4.22 | $ 4.13 | $ 3.88 |
Net earnings per share - diluted (in dollars per share) | $ 4.19 | $ 4.09 | $ 3.83 |
Shares used in the calculation of net earnings per share: | |||
Weighted average shares outstanding - basic (in shares) | 95.4 | 99.7 | 104 |
Weighted average shares outstanding - diluted (in shares) | 96 | 100.6 | 105.3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 402.7 | $ 412 | $ 403.7 |
Defined benefit pension and post-retirement benefit plans: | |||
Net loss arising during the year, net of tax benefit of $4.3, $0.9 and $0.9 | (21.4) | (4.7) | (9.6) |
Prior service credit arising during the year, net of tax expense of ($0.2), $0.0 and ($1.2) | 1.1 | 0 | 2.1 |
Amortization of prior service cost included in net periodic benefit cost, net of tax benefit (expense) of $0.2, $0.1 and ($0.1) | (0.4) | (0.2) | 0.1 |
Amortization, settlement curtailment of net actuarial loss included in net periodic benefit cost, net of tax expense of ($0.5), ($0.6) and ($0.5) | 3.5 | 2.9 | 3.4 |
Defined benefit pension and post-retirement benefit plans: | (17.2) | (2) | (4) |
Derivative instruments: | |||
Change in unrealized gain (loss), net of tax benefit (expense) of $0.4, ($0.8) and ($1.4) | (0.6) | 1.4 | 2.5 |
Reclassification adjustments, net of tax benefit (expense) of ($0.4), $1.4 and $0.5 | 0.6 | (2.4) | (0.8) |
Derivative instruments: | 0 | (1) | 1.7 |
Available-for-sale securities: | |||
Change in unrealized loss, net of tax benefit of $0.1, $0.1 and $0.0 | (0.3) | (0.1) | 0 |
Reclassification adjustments, net of tax expense of ($0.2), $0.0 and $0.0 | 0.4 | 0 | 0 |
Available-for-sale securities: | 0.1 | (0.1) | 0 |
Currency translation adjustment | 2.8 | (24.8) | (16.2) |
Other comprehensive loss | (14.3) | (27.9) | (18.5) |
Comprehensive earnings | 388.4 | 384.1 | 385.2 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0.4 | 0.5 | 0 |
Comprehensive earnings attributable to Varian | $ 388 | $ 383.6 | $ 385.2 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net gain/(loss) arising during the year, tax benefit/(expense) | $ 4.3 | $ 0.9 | $ 0.9 |
Prior service cost arising during the year, tax expense | (0.2) | (1.2) | |
Amortization of prior service cost included in net periodic benefit cost, tax benefit/(expense) | 0.2 | 0.1 | (0.1) |
Amortization of net actuarial loss included in net periodic benefit cost, tax expense | (0.5) | (0.6) | (0.5) |
Increase (decrease) in unrealized gain, tax benefit/(expense) | 0.4 | (0.8) | (1.4) |
Reclassification adjustments, tax benefit/(expense) | (0.4) | 1.4 | 0.5 |
Increase (decrease) in unrealized gain (loss), tax benefit | 0.1 | 0.1 | 0 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, Tax | $ (0.2) | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 843.5 | $ 845.5 |
Short-term investments | 95.3 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $24.4 at September 30, 2016 and $21.2 at October 2, 2015 | 891.8 | 770.9 |
Inventories | 639.7 | 612.6 |
Prepaid expenses and other current assets | 145.7 | 164 |
Total current assets | 2,616 | 2,393 |
Property, plant and equipment, net | 379.2 | 379.2 |
Goodwill | 294.7 | 283.5 |
Intangible assets | 104.7 | 72.6 |
Deferred tax assets | 138.9 | 119.4 |
Other assets | 282.5 | 331 |
Total assets | 3,816 | 3,578.7 |
Current liabilities: | ||
Accounts payable | 201.1 | 202.9 |
Accrued liabilities | 412.7 | 347.2 |
Deferred revenues | 620.6 | 668.2 |
Short-term borrowings | 329.6 | 108.4 |
Current maturities of long-term debt | 50 | 50 |
Total current liabilities | 1,614 | 1,376.7 |
Long-term debt | 287.5 | 337.5 |
Other long-term liabilities | 160 | 138.2 |
Total liabilities | 2,061.5 | 1,852.4 |
Commitments and contingencies (Note 9) | ||
Redeemable noncontrolling interests | 10.3 | 0 |
Equity: | ||
Preferred stock of $1 par value: 1 shares authorized; none issued and outstanding | 0 | 0 |
Common stock of $1 par value: 189.0 shares authorized; 93.7 and 98.1 shares issued and outstanding at September 30, 2016 and at October 2, 2015, respectively | 93.7 | 98.1 |
Capital in excess of par value | 678.6 | 682.2 |
Retained earnings | 1,069 | 1,017.8 |
Accumulated other comprehensive loss | (100.8) | (86.5) |
Total Varian stockholders' equity | 1,740.5 | 1,711.6 |
Noncontrolling interests | 3.7 | 14.7 |
Total equity | 1,744.2 | 1,726.3 |
Total liabilities, redeemable noncontrolling interests and equity | $ 3,816 | $ 3,578.7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 24.4 | $ 21.2 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 189,000,000 | 189,000,000 |
Common stock, shares issued (in shares) | 93,700,000 | 98,100,000 |
Common stock, shares outstanding (in shares) | 93,700,000 | 98,100,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Cash flows from operating activities: | |||
Net earnings | $ 402.7 | $ 412 | $ 403.7 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Share-based compensation expense | 48.3 | 46.3 | 39.6 |
Tax benefits from exercises of share-based payment awards | 3 | 12.6 | 10.9 |
Excess tax benefits from share-based compensation | (3.9) | (12.6) | (10.9) |
Depreciation | 64.2 | 60.1 | 57.7 |
Amortization of intangible assets | 15.6 | 8.4 | 4.8 |
Deferred taxes | (23.9) | 5.4 | 15.9 |
Impairment charges | 2.2 | 0 | 7.7 |
Provision for doubtful accounts receivable | 3.5 | 1.1 | 7.2 |
Other, net | 2.1 | 1.4 | 0.4 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (168.3) | (79.4) | (74.5) |
Inventories | (27.7) | (41.6) | (43.3) |
Prepaid expenses and other assets | 8 | (8.2) | (3.3) |
Accounts payable | 9.7 | 6.5 | 2 |
Accrued liabilities and other long-term liabilities | 61 | (14) | (0.8) |
Deferred revenues | (40.2) | 71.6 | 31.9 |
Net cash provided by operating activities | 356.3 | 469.6 | 449 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (80.4) | (91.4) | (89.6) |
Acquisitions, net of cash acquired | (21.1) | (95.3) | (31.5) |
Issuance of notes receivable | (21.7) | (23.7) | (5.5) |
Sale of notes receivable | 8.3 | 0 | 0 |
Sale of available-for-sale securities | 8.6 | 0.6 | 38.1 |
Investment in available-for-sale securities | (3.3) | (1.8) | (45.2) |
Other | 0.4 | 0.7 | 0.6 |
Net cash used in investing activities | (109.2) | (210.9) | (133.1) |
Cash flows from financing activities: | |||
Repurchases of common stock | (461.3) | (422) | (627.7) |
Proceeds from issuance of common stock to employees | 60.6 | 91 | 99.7 |
Excess tax benefits from share-based compensation | 3.9 | 12.6 | 10.9 |
Employees' taxes withheld and paid for restricted stock and restricted stock units | (11) | (16.3) | (8.8) |
Borrowings under credit facility agreement | 83 | 145 | 0 |
Repayments under credit facility agreement and other bank borrowings | (133) | (195) | (68.8) |
Net borrowings under the credit facility agreements with maturities less than 90 days | 217.1 | 108.6 | 0 |
Contingent consideration and hold back | (5.6) | (3.4) | (0.7) |
Other | 0.5 | 2.8 | (0.1) |
Net cash used in financing activities | (245.8) | (276.7) | (595.5) |
Effects of exchange rate changes on cash and cash equivalents | (3.3) | 14.2 | 11 |
Net decrease in cash and cash equivalents | (2) | (3.8) | (268.6) |
Cash and cash equivalents at beginning of period | 845.5 | 849.3 | 1,117.9 |
Cash and cash equivalents at end of period | $ 843.5 | $ 845.5 | $ 849.3 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Total Varian Stockholders' Equity | Noncontrolling Interests |
Beginning Balance (in shares) at Sep. 27, 2013 | 106.5 | ||||||
Balance at beginning of period at Sep. 27, 2013 | $ 1,713.8 | $ 106.5 | $ 637.1 | $ 1,010.3 | $ (40.1) | $ 1,713.8 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 403.7 | 403.7 | 403.7 | ||||
Other comprehensive loss | (18.5) | (18.5) | (18.5) | ||||
Issuance of common stock | 99.7 | $ 2.3 | 97.4 | 99.7 | |||
Issuance of common stock (in shares) | 2.3 | ||||||
Tax benefits from exercises of share-based payment awards | 10.9 | 10.9 | 10.9 | ||||
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units (in shares) | (0.1) | ||||||
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units | (8.8) | $ (0.1) | (8.7) | (8.8) | |||
Share-based compensation expense | $ 39.6 | 39.6 | 39.6 | ||||
Repurchases of common stock (in shares) | (7.8) | (7.7) | |||||
Repurchases of common stock | $ (624) | $ (7.7) | (133.5) | (482.8) | (624) | ||
Balance at end of period at Sep. 26, 2014 | 1,616.4 | $ 101 | 642.8 | 931.2 | (58.6) | 1,616.4 | 0 |
Ending Balance (in shares) at Sep. 26, 2014 | 101 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 412 | 411.5 | 411.5 | 0.5 | |||
Other comprehensive loss | (27.9) | (27.9) | (27.9) | ||||
Issuance of common stock | 91 | $ 2.1 | 88.9 | 91 | |||
Issuance of common stock (in shares) | 2.1 | ||||||
Tax benefits from exercises of share-based payment awards | 12.6 | 12.6 | 12.6 | ||||
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units (in shares) | (0.2) | ||||||
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units | (16.3) | $ (0.2) | (16.1) | (16.3) | |||
Share-based compensation expense | $ 46.3 | 46.3 | 46.3 | ||||
Repurchases of common stock (in shares) | (4.8) | (4.8) | |||||
Repurchases of common stock | $ (422) | $ (4.8) | (92.3) | (324.9) | (422) | ||
Acquisition of MeVis Medical Solutions AG | 10.2 | 10.2 | |||||
Capital contributions by minority shareholders | 4 | 4 | |||||
Balance at end of period at Oct. 02, 2015 | $ 1,726.3 | $ 98.1 | 682.2 | 1,017.8 | (86.5) | 1,711.6 | 14.7 |
Ending Balance (in shares) at Oct. 02, 2015 | 98.1 | 98.1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 402.7 | ||||||
Net earnings | 402.2 | 402.3 | 402.3 | (0.1) | |||
Other comprehensive loss | (14.3) | (14.3) | (14.3) | ||||
Issuance of common stock | 61.9 | $ 1.4 | 60.5 | 61.9 | |||
Issuance of common stock (in shares) | 1.4 | ||||||
Tax benefits from exercises of share-based payment awards | $ 3 | 3 | 3 | ||||
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units (in shares) | (0.1) | (0.1) | |||||
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units | $ (11) | $ (0.1) | (10.9) | (11) | |||
Share-based compensation expense | $ 48.3 | 48.3 | 48.3 | ||||
Repurchases of common stock (in shares) | (5.7) | (5.7) | |||||
Repurchases of common stock | $ (461.3) | $ (5.7) | (104.5) | (351.1) | (461.3) | ||
Acquisition of MeVis Medical Solutions AG | 0 | ||||||
Reclassification of noncontrolling interests in MeVis Medical Solutions AG to redeemable noncontrolling interests | (10.4) | (10.4) | |||||
Other | (0.5) | (0.5) | |||||
Balance at end of period at Sep. 30, 2016 | $ 1,744.2 | $ 93.7 | $ 678.6 | $ 1,069 | $ (100.8) | $ 1,740.5 | $ 3.7 |
Ending Balance (in shares) at Sep. 30, 2016 | 93.7 | 93.7 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Varian Medical Systems, Inc. (“VMS”) and subsidiaries (collectively, the “Company”) designs, manufactures, sells and services hardware and software products for treating cancer with radiotherapy, stereotactic radiosurgery, stereotactic body radiotherapy, and brachytherapy. The Company also designs, manufactures, sells and services X-ray imaging components for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography, computer-aided diagnostics 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. On May 23, 2016, the Company announced its intention to separate its Imaging Components business from the remainder of its businesses through a pro rata distribution of the common stock of a new entity, named Varex Imaging Corporation (“Varex”). Varex was incorporated in Delaware on July 18, 2016 for the purpose of holding the assets and liabilities associated with the Company's Imaging Components business. Following the separation and distribution, Varex will be an independent, publicly traded company. The distribution is subject to certain conditions, including, among others, final approval of the Varian board of directors, receipt of one or more opinions with respect to certain U.S. federal income tax matters relating to the separation and the Securities and Exchange Commission ("SEC") declaring the effectiveness of the registration statement. There can be no assurance regarding the ultimate timing of the proposed transaction. In fiscal year 2016, the Company incurred $16.9 million of costs relating to the separation. Separation costs include expenses for transaction advisory services, consulting services, restructuring and other expenses. Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). Reclassifications In the third quarter of fiscal year 2016, the Company began presenting all deferred tax assets and liabilities as noncurrent on its Consolidated Balance Sheets and adjusted prior year amounts as discussed further in " Accounting Pronouncements Recently Adopted " below. In addition, certain other reclassifications have been made to the amounts for prior years in order to conform to the current year’s presentation. Fiscal Year The fiscal years of the Company as reported are the 52- or 53-week periods ending on the Friday nearest September 30. Fiscal year 2016 was the 52-week period that ended on September 30, 2016 . Fiscal year 2015 was the 53-week period that ended on October 2, 2015 and fiscal year 2014 was the 52-week period that ended on September 26, 2014 . Distribution On April 2, 1999, Varian Associates, Inc. reorganized into three separate publicly traded companies by spinning off, through a tax-free distribution, two of its businesses to stockholders (the “Spin-offs”). The Spin-offs resulted in the following three companies: 1) the Company (renamed from Varian Associates, Inc. to Varian Medical Systems, Inc. following the Spin-offs); 2) Varian, Inc. (“VI”), which became a wholly owned subsidiary of Agilent Technologies Inc. in May 2010; and 3) Varian Semiconductor Equipment Associates, Inc. (“VSEA”), which became a wholly owned subsidiary of Applied Materials, Inc. in November 2011. The Spin-offs resulted in a non-cash dividend to stockholders. In connection with the Spin-offs, the Company, VI and VSEA also entered into various agreements that set forth the principles to be applied in separating the companies and allocating certain related costs and specified portions of contingent liabilities. See Note 9, "Commitments and Contingencies" for additional information. Principles of Consolidation The consolidated financial statements include those of VMS and its wholly-owned and majority-owned or controlled subsidiaries. Intercompany balances, transactions and stock holdings have been eliminated in consolidation. Consolidation of Variable Interest Entities For entities in which the Company has variable interests, the Company focuses on identifying which entity has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. If the Company is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in the Company’s Consolidated Financial Statements. For fiscal years 2016 , 2015 and 2014 , the Company did not consolidate any variable interest entities because the Company was not the primary beneficiary. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Foreign Currency Translation The Company uses the U.S. dollar predominately as the functional currency of its foreign subsidiaries. For foreign subsidiaries where the U.S. dollar is the functional currency, gains and losses from remeasurement of foreign currency balances into U.S. dollars are included in the Consolidated Statements of Earnings. The aggregate net gains (losses) resulting from foreign currency transactions and remeasurement of foreign currency balances into U.S. dollars that were included in the Consolidated Statements of Earnings were $1.6 million , $(2.0) million and $(0.5) million in fiscal years 2016 , 2015 and 2014 , respectively. For the foreign subsidiary where the local currency is the functional currency, translation adjustments of foreign currency financial statements into U.S. dollars are recorded to a separate component of accumulated other comprehensive income (loss). See Note 8, "Derivative Instruments and Hedging Activities" regarding the Company’s hedging activities and derivative instruments. Also see Note 3, "Fair Value" regarding valuation of the Company’s derivative instruments. Cash and Cash Equivalents The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. 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. See Note 3, "Fair Value" for additional discussions. Available-For-Sale Investments and Notes Receivable The Company has investments in securities that are classified as available-for-sale investments, and which are reflected on the Consolidated Balance Sheets at fair value. Unrealized gains and losses on these investments are included as a separate component of accumulated other comprehensive loss, net of tax, on the Consolidated Balance Sheets. The Company classifies its available-for-sale securities as short-term or long-term based on the nature of the investment, its maturity date and its availability for use in current operations. The Company monitors its available-for-sale securities for possible other-than-temporary impairment when business events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company did not record any impairment of its available-for-sale investments for fiscal years 2016 , 2015 and 2014 . The Company advances notes to third parties, including its customers. The Company regularly assesses these notes for collectability by considering internal factors such as historical experience, credit quality, age of the note balances as well as external factors such as economic conditions that may affect the note holder's ability to pay. Investments in Privately-Held Companies Equity investments in privately-held companies in which the Company holds at least a 20% ownership interest or in which the Company has the ability to exercise significant influence are accounted for under the equity method of accounting. Equity investments in privately-held companies in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are accounted for under the cost method of accounting. The Company’s equity investments in privately-held companies are included in other assets on the Consolidated Balance Sheets. See Note 2, “Balance Sheet Components”. The Company monitors these equity investments for impairment and makes appropriate reductions in carrying values if the Company determines that impairment charges are required based primarily on the financial condition and near-term prospects of these companies. The carrying value of equity investments in privately-held companies accounted for under the equity method of accounting was $49.3 million and $49.7 million for the fiscal years ended September 30, 2016 and October 2, 2015 , respectively. The Company did not have any impairment loss on equity investments in privately-held companies accounted for under the equity method of accounting for fiscal years 2016 , 2015 and 2014 . Additionally, the Company has an investment in Augmenix, Inc. (“Augmenix”), a privately-held company, which is accounted for under the cost-method. During fiscal year 2014, the Company recognized a $7.7 million charge relating to the impairment of a portion of the investment in Augmenix. Equity investments accounted for under the cost-method, including Augmenix, totaled $18.7 million and $15.0 million for the fiscal years ended September 30, 2016 and October 2, 2015 , respectively. Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents, available-for-sale investments, trade accounts receivable, notes receivable, and derivative financial instruments used in hedging activities. Cash and cash equivalents held with financial institutions may exceed the Federal Deposit Insurance Corporation insurance limits or similar limits in foreign jurisdictions. The Company has not experienced any losses on its deposits of cash and cash equivalents. With respect to its available-for-sale investments and notes receivable, the Company performs a periodic credit evaluation of various counterparties. In addition, the Company will be exposed to credit loss in the event of nonperformance by counterparties on the foreign currency forward contracts used in hedging activities. The Company transacts its foreign currency forward contracts with several large international and regional financial institutions and, therefore, does not consider the risk of nonperformance to be concentrated in any specific counterparty. The Company has not experienced any losses resulting from the failure of counterparty to meet its financial obligations under foreign currency forward contracts. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers comprising the Company’s customer base and their geographic dispersion. The Company performs ongoing credit evaluations of its customers and, except for government tenders, group purchases and orders with a letter of credit, often requires its Oncology Systems, security and inspection products and Varian Particle Therapy (“VPT”) customers to provide a down payment. The Company maintains an allowance for doubtful accounts based upon the expected collectability of all accounts receivable. No single customer represented more than 10% of the accounts receivable amount for any period presented. Inventories Inventories are valued at the lower of cost or market (realizable value). Excess and obsolete inventories are determined primarily based on future demand forecasts and write-downs of excess and obsolete inventories are recorded as a component of cost of revenues. Cost is computed using standard cost (which approximates actual cost) or actual cost on a first-in-first-out or average basis. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Costs incurred for internal use software during the application development stage are capitalized in accordance with guidance on internal-use software. Internally developed software primarily includes enterprise-level business software that the Company customizes to meet its specific operational needs. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Land is not subject to depreciation, but land improvements are depreciated over fifteen years. Land leasehold rights and leasehold improvements are amortized over the lesser of their estimated useful lives or remaining lease terms. Buildings are depreciated over twenty or thirty years. Machinery and equipment are depreciated over their estimated useful lives, which range from three to seven years. Assets subject to lease are amortized over the lesser of their estimated useful lives or remaining lease terms. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are removed from the accounts. Gains or losses resulting from retirements or disposals of property, plant and equipment are included in operating expenses. Goodwill and Intangible Assets Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. Purchased intangible assets are carried at cost, net of accumulated amortization. Intangible assets with finite lives are amortized primarily using the straight-line method over their estimated useful lives which generally range from two to ten years. In-process research and development (“IPR&D”) is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable purchased intangible asset and amortized over the asset’s estimated useful life. Impairment of Long-lived Assets, Goodwill and Intangible Assets The Company reviews long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company assesses these assets for impairment based on their estimated undiscounted future cash flows. If the carrying value of the assets exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any impairment charges for long-lived assets and identifiable intangible assets in fiscal years 2016 , 2015 and 2014 . The Company evaluates goodwill for impairment at least annually or whenever an event occurs or circumstances changes that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If the Company determines that a quantitative analysis is necessary, the impairment test for goodwill is a two-step process. Step one consists of a comparison of the fair value of a reporting unit against its carrying amount, including the goodwill allocated to each reporting unit. The Company determines the fair value of its reporting units based on a combination of income and market approaches. The income approach is based on the present value of estimated future cash flows of the reporting units and the market approach is based on a market multiple calculated for each business unit based on market data of other companies engaged in similar business. If the carrying amount of the reporting unit is in excess of its fair value, step two requires the comparison of the implied fair value of the reporting unit’s goodwill against the carrying amount of the reporting unit’s goodwill. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as an impairment loss. In fiscal years 2016 , 2015 and 2014 , the Company performed the annual goodwill impairment testing for the four reporting units that carried goodwill namely (i) Oncology Systems, (ii) X-ray tubes and flat panel products, (iii) Security and inspection products, and (iv) VPT, and found no impairment. Based upon the most recent annual goodwill analysis performed by the Company during the fourth quarter of fiscal year 2016, for Oncology Systems, X-ray tubes and flat panel products, and Security and inspection products reporting units, step one of the impairment test was not completed based on evaluation of qualitative factors, and for the VPT reporting unit for which step one was completed, the fair value was substantially in excess of carrying value. Loss Contingencies From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that it believes will result in a probable loss. Environmental remediation liabilities are recorded when environmental assessments and/or remediation efforts are probable, and the costs of these assessments or remediation efforts can be reasonably estimated. Product Warranty The Company warrants most of its products for a specific period of time, usually 12 months from installation, against material defects. The Company provides for the estimated future costs of warranty obligations in cost of revenues when the related revenues are recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that the Company will incur to repair or replace product parts that fail while still under warranty. The amount of the accrued estimated warranty costs obligation for established products is primarily based on historical experience as to product failures adjusted for current information on repair costs. For new products, estimates include the historical experience of similar products, as well as reasonable allowance for warranty expenses associated with new products. On a quarterly basis, the Company reviews the accrued warranty costs and updates the historical warranty cost trends, if required. Revenue Recognition The Company’s revenues are derived primarily from the sale of hardware and software products, and services from the Company’s Oncology Systems, Imaging Components and VPT businesses. The Company recognizes its revenues net of any value added or sales tax and net of sales discounts. Many of the Company’s revenue arrangements consist of multiple deliverables of its software and non-software products, as well as related services. In Oncology Systems, the linear accelerators are often sold with hardware and software accessory products that enhance efficiency and enable delivery of advanced radiotherapy and radiosurgery treatments. Many of the Oncology Systems hardware and software accessory products are occasionally sold on a stand-alone basis. As discussed below, the majority of the Oncology Systems products are sold with installation obligations. Delivery of different elements in a revenue arrangement often span more than one reporting period. For example, a linear accelerator may be delivered in a reporting period but the related installation is completed in a later period. The Imaging Components business generally sells its X-ray components (including X-ray tubes, flat panel detectors and image processing tools and security and inspection products) on a stand-alone basis. However, the Imaging Components business occasionally sells its flat panel detectors, X-ray tubes and imaging processing tools as a package that is optimized for digital X-ray imaging and sells its Linatron ® X-ray accelerators together with its imaging processing software and image detection products to original equipment manufacturer (“OEM”) customers that incorporate them into their inspection systems. Service contracts are often sold with Oncology Systems products, as well as with certain security and inspection products within the Imaging Components business. Revenues related to service contracts usually starts after the expiration of the warranty period for non-software products or upon acceptance for software products. The Company recognizes contract revenues under the percentage-of-completion method for equipment sold by VPT. See “Contracts for Customized Equipment” below for more details. For a multiple element arrangement that includes software and non-software deliverables which includes service contracts, the Company first allocates revenues among the software and non-software deliverables on a relative selling price basis. The amounts allocated to the non-software products and software are accounted for as follows: Non-software Products Non-software products include hardware products, software components that function together with the hardware components to deliver the product’s essential functionality, as well as service contracts. Except as described below under “Service,” the Company recognizes revenues for non-software products when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. For multiple element revenue arrangements that involve non-software products, a delivered non-software element is considered as a separate unit of accounting when it has stand-alone value and there is no customer-negotiated refund or return rights for the delivered element. The allocation of revenue to all deliverables based on their relative selling prices is determined at the inception of the arrangement. The selling price for each deliverable is determined using vendor-specific objective evidence (“VSOE”) of selling price, if it exists; otherwise, third-party evidence of selling price (“TPE”). If neither VSOE nor TPE of selling price exists for a deliverable the Company uses the deliverable’s estimated selling prices (“ESP”). The Company’s non-software products have stand-alone value because they are sold separately. Product installation, which is a standard process and does not involve changes to the features or capabilities of the Company’s products, is considered as a separate unit of accounting. Installation of Oncology Systems non-software products involves the Company’s testing of each product at its factory prior to the product’s delivery to ensure that the product meets the Company’s published specifications. Once these tests establish that the specifications have been met, the product is then disassembled and shipped to the customer’s site as specified in the customer contract. Risk of loss is transferred to the customer typically at the time of shipment or delivery, depending upon the terms of the contract. At the customer’s site, the product is reassembled, installed and retested in accordance with the Company’s installation procedures to ensure and demonstrate compliance with the Company’s published specifications for that product. Under the terms of the Company’s standard non-software sales contracts, “acceptance” of a non-software product with installation obligations is deemed to have occurred upon the earliest of (i) completion of product installation and testing in accordance with the Company’s standard installation procedures showing compliance with the Company’s published specifications for that product, (ii) receipt by the Company of an acceptance form executed by the customer acknowledging installation and compliance with the Company’s published specifications for that product, (iii) use by the customer of the product for any purpose after its delivery or (iv) six months after the delivery of the product to the customer by the Company. The contracts allow for cancellation only by mutual agreement, thus the customer does not have a unilateral right to return the delivered non-software product. The Company establishes VSOE of selling price based on the price charged for a deliverable when sold separately. Occasionally for a deliverable not yet being sold separately, the Company may initially establish VSOE by management having the relevant authority. As discussed above, many products are occasionally sold in stand-alone arrangements and accordingly may have VSOE of selling price. Service contracts are sold separately through either original sale or subsequent renewal of annual contracts. The Company establishes TPE generally by evaluating the Company’s and competitors’ largely interchangeable competing products or services in stand-alone sales to similarly situated customers. The TPE for product installation is determined based on the estimated labor hours and the prevailing hourly rate charged for similar services, as well as the prices charged by outside vendors for installation of the Company’s products. For certain products for which the Company is not able to establish VSOE or TPE of selling prices, ESPs are used as the basis of their selling prices. The Company estimates selling prices following an established process that considers market conditions, including the product offerings and pricing strategies of competitors, as well as internal factors such as historical pricing practices and margin objectives. The establishment of product and service ESPs is controlled and reviewed by the appropriate level of management in all of the Company’s businesses. The Company limits the amount of revenue recognized for delivered items to the amount that is not contingent upon the delivery of additional products or services. For Oncology Systems non-software products with installation obligations, the Company recognizes as revenues a portion of the product purchase price upon transfer of risk of loss and defers revenue recognition on the portion associated with product installation, provided that all other criteria for revenue recognition have been met. The portion deferred is the greater of the relative selling price of the installation services for such products or the amount of payment contractually linked to product installation services. The Company does not have installation obligations for X-ray tubes, digital image detectors, spare parts, security and inspection products, and for certain hardware Oncology Systems. For the products that do not include installation obligations, the Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the terms of the contract, provided that all other revenue recognition criteria have been met. Software Products The Company recognizes revenues for software products in accordance with the software revenue recognition guidance. The Company recognizes license revenues when all of the following criteria have been met: persuasive evidence of an arrangement exists, the vendor’s fee is fixed or determinable, collection of the related receivable is probable, delivery of the product has occurred and the Company has received from the customer an acceptance form acknowledging installation and substantial conformance with the Company’s specifications (as set forth in the user manual) for such product, or upon verification of installation when customer acceptance is not required to be received, or upon the expiration of an acceptance period, provided that all other criteria for revenue recognition have been met. Revenues earned on software arrangements involving multiple elements are allocated to each element based on VSOE of fair value, which is based on the price charged when the same element is sold separately. In instances when evidence of VSOE of fair value of all undelivered elements exists, but evidence does not exist for one or more delivered elements, revenues are recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. Revenue allocated to maintenance and support is recognized ratably over the maintenance term (typically one year). For those software products that are not sold stand-alone or for which VSOE cannot be established or maintained, all software revenue under the contract will be deferred until the software product(s) that lack VSOE are all delivered. If the only undelivered software element that lacks VSOE is maintenance and support then the software and maintenance revenue would be recognized ratably over the term of the maintenance and support arrangement. Installation of the Company’s software products may involve a certain amount of customer-specific implementation to enable the software product to function within the customer’s operating environment ( i.e. , with the customer’s information technology network and other hardware, with the customer’s data interfaces and with the customer’s administrative processes) and substantially in conformance with the Company’s specifications (as set forth in the user manual) for such product. With these software products, customers do not have full use of the software (i.e., functionality) until the software is installed as described above and functioning within the customer’s operating environment. Therefore, the Company recognizes 100% of such software revenues upon receipt from the customer of the Company’s acceptance form acknowledging installation and such substantial conformance, or upon verification of installation when the Company is not required to receive customer acceptance, or upon the expiration of an acceptance period, provided that all other criteria for revenue recognition have been met. The Company does not have installation obligations for Imaging Components and certain brachytherapy software products. For software products that do not include installation obligations, the Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the shipping terms of the contract, provided that all other criteria for revenue recognition have been met. Contracts for Customized Equipment Revenues related to proton therapy systems and proton therapy system commissioning contracts are recognized in accordance with contract accounting. The Company recognizes contract revenues under the percentage-of-completion method which are based on contract costs incurred to date compared with total estimated contract costs. Changes in estimates of total contract revenue, total contract cost or the extent of progress towards completion a |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | BALANCE SHEET COMPONENTS The following tables summarize the Company's available-for-sale securities (in millions): September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities: CPTC loans $ 95.3 $ — $ — $ 95.3 Total available-for-sale securities $ 95.3 $ — $ — $ 95.3 October 2, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities: CPTC loans $ 83.9 $ — $ — $ 83.9 Other 8.6 0.1 (0.3 ) 8.4 Non-U.S. government security 0.7 — — 0.7 Total available-for-sale securities $ 93.2 $ 0.1 $ (0.3 ) $ 93.0 See Note 16, "VPT Loans" for more information on California Proton Treatment Center, LLC (“CPTC”) loans. As of September 30, 2016 , available-for-sale securities are included in short-term investments because their maturity dates are less than one year. As of October 2, 2015 , available-for-sale securities were included in other assets because their maturity dates were greater than one year, and the Company did not intend to sell all or a portion of its loans in the next fiscal year. As of September 30, 2016 , the Company anticipates that it will recover the entire amortized cost basis of all of its available-for-sale securities and determined that no other-than-temporary impairments were required to be recognized. September 30, October 2, (In millions) 2016 2015 Inventories: Raw materials and parts $ 407.9 $ 348.3 Work-in-process 76.7 98.2 Finished goods 155.1 166.1 Total inventories $ 639.7 $ 612.6 September 30, October 2, (In millions) 2016 2015 Property, plant and equipment: Land and land improvements $ 49.4 $ 49.1 Buildings and leasehold improvements 330.2 267.0 Machinery and equipment 490.4 437.2 Construction in progress 34.2 99.6 904.2 852.9 Accumulated depreciation and amortization (525.0 ) (473.7 ) Total property, plant and equipment, net $ 379.2 $ 379.2 September 30, October 2, (In millions) 2016 2015 Other assets: Long-term available-for-sale securities $ — $ 93.0 Long-term receivables 113.8 77.0 Investments in privately-held companies 68.0 64.7 Deferred Compensation Plan ("DCP") assets 63.4 56.6 Other 37.3 39.7 Total other assets $ 282.5 $ 331.0 September 30, October 2, (In millions) 2016 2015 Accrued liabilities: Accrued compensation and benefits $ 119.8 $ 101.5 DCP liabilities 63.8 57.3 Product warranty 51.1 43.9 Income taxes payable 55.1 36.4 Other 122.9 108.1 Total accrued liabilities $ 412.7 $ 347.2 September 30, October 2, (In millions) 2016 2015 Other long-term liabilities: Long-term income taxes payable $ 46.2 $ 44.5 Deferred income taxes 26.6 31.8 Other 87.2 61.9 Total other long-term liabilities $ 160.0 $ 138.2 |
Fair Value
Fair Value | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Assets/Liabilities Measured at Fair Value on a Recurring Basis In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. Fair Value Measurement Using Type of Instruments Quoted Prices in Significant Other Significant Total (In millions) Assets at September 30, 2016: Available-for-sale securities: Corporate debt securities $ — $ — $ 95.3 $ 95.3 Total assets measured at fair value $ — $ — $ 95.3 $ 95.3 Liabilities at September 30, 2016: Contingent consideration $ — $ — $ (1.3 ) $ (1.3 ) Total liabilities measured at fair value $ — $ — $ (1.3 ) $ (1.3 ) Assets at October 2, 2015: Available-for-sale securities: Corporate debt securities $ — $ 8.4 $ 83.9 $ 92.3 Non-U.S. government security — 0.7 — 0.7 Total assets measured at fair value $ — $ 9.1 $ 83.9 $ 93.0 Liabilities at October 2, 2015: Contingent consideration $ — $ — $ (4.1 ) $ (4.1 ) Total liabilities measured at fair value $ — $ — $ (4.1 ) $ (4.1 ) At September 30, 2016 , and October 2, 2015 , the fair value of the Company's derivative instruments were immaterial. The Company's Level 3 corporate debt securities, the CPTC loans, were included in short-term investments at September 30, 2016 , and other assets at October 2, 2015 on the Consolidated Balance Sheets. The Company's Level 2 corporate debt securities and the non-U.S. government security were included in other assets at October 2, 2015 on the Consolidated Balance Sheets. The Company's contingent consideration was included in accrued liabilities at September 30, 2016 and accrued liabilities and other long-term liabilities at October 2, 2015 on the Consolidated Balance Sheets. The fair value of the Company's Level 2 other corporate debt securities and non-U.S. government security was priced using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. The Company has elected to use the income approach to value its derivative instruments using standard valuation techniques and Level 2 inputs, such as currency spot rates, forward points and credit default swap spreads. The Company’s derivative instruments are generally short-term in nature, typically one month to thirteen months in duration. The fair value of the Company’s Level 3 corporate debt securities, the CPTC loans, 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) CPTC Loans Contingent Balance at September 26, 2014 $ 75.6 $ (7.5 ) Additions (1) 8.3 — Settlements (2) — 3.3 Change in fair value recognized in earnings — 0.1 Balance at October 2, 2015 83.9 (4.1 ) Additions (1) 11.4 — Settlements (2) — 3.5 Change in fair value recognized in earnings — (0.7 ) Balance at September 30, 2016 $ 95.3 $ (1.3 ) (1) Amounts reported under CPTC loans represents draw downs and 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 fiscal years 2016 , 2015 and 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 equivalents, accounts receivable, net of allowance for doubtful accounts, short-term notes receivable, accounts payable, and short-term borrowings approximate their carrying amounts due to their short maturities. As of both September 30, 2016 and October 2, 2015 , the fair value of current maturities of the 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 $287.5 million and $337.5 million at September 30, 2016 and October 2, 2015 , 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. The fair value of the outstanding long-term notes receivable approximated their carrying value of $59.2 million and $30.9 million at September 30, 2016 and October 2, 2015 , respectively, because it is based on terms of recent comparable transactions and is categorized as Level 3 in the fair value hierarchy. |
Receivables
Receivables | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Receivables | RECEIVABLES The following table summarizes the Company's accounts receivable and notes receivable as of September 30, 2016 and October 2, 2015 : September 30, October 2, (In millions) 2016 2015 Accounts receivable, gross $ 970.8 $ 838.2 Allowance for doubtful accounts (24.4 ) (21.2 ) Accounts receivable, net $ 946.4 $ 817.0 Short-term $ 891.8 $ 770.9 Long-term (1) $ 54.6 $ 46.1 Notes receivable $ 65.0 $ 40.9 Short-term (2) $ 5.8 $ 10.0 Long-term (1) $ 59.2 $ 30.9 (1) Included in other assets on the Company's Consolidated Balance Sheets. (2) Included in prepaid expenses and other current assets on the Company's Consolidated Balance Sheets. A financing receivable represents a financing arrangement with a contractual right to receive money, on demand or on fixed or determinable dates, and that is recognized as an asset on the Company’s Consolidated Balance Sheets. The Company’s financing receivables consist of accounts receivable with contractual maturities of more than one year and notes receivable. A small portion of the Company's financing accounts receivables are included in short-term accounts receivable. Allowance for doubtful accounts was entirely related to the short-term accounts receivable for both the fiscal years ended September 30, 2016 and October 2, 2015 . See Note 16, "VPT Loans" for more information on the Company's long-term notes receivable balances. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2016 | |
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: (In millions) Oncology Imaging Other Total Balance at September 26, 2014 $ 148.3 $ 36.0 $ 56.3 $ 240.6 Business combinations 10.5 38.7 — 49.2 Foreign currency translation adjustments — — (6.3 ) (6.3 ) Balance at October 2, 2015 158.8 74.7 50.0 283.5 Business combinations 11.4 — — 11.4 Foreign currency translation adjustments — — (0.2 ) (0.2 ) Balance at September 30, 2016 $ 170.2 $ 74.7 $ 49.8 $ 294.7 The following table reflects the gross carrying amount and accumulated amortization of the Company’s finite-lived intangible assets: September 30, October 2, (In millions) 2016 2015 Finite-lived intangible assets: Technologies and patents $ 122.0 $ 98.7 Customer contracts and supplier relationship 41.7 20.1 Other 12.7 8.3 Accumulated amortization (80.5 ) (65.1 ) Net carrying amount $ 95.9 $ 62.0 As of September 30, 2016 and October 2, 2015 , the Company also had $8.8 million and $10.6 million , respectively, of IPR&D assets acquired as part of the Company’s business acquisitions. See Note 15, "Business Combinations" for additional information. Amortization expense for intangible assets was $15.6 million , $8.4 million and $4.8 million for fiscal years 2016 , 2015 and 2014 , respectively. The Company estimates that the amortization expense for intangible assets for fiscal years 2017 through 2021, and thereafter, will be as follows (in millions): $20.1 , $18.3 , $14.1 , $12.7 , $9.5 , and $21.2 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS VMS has a 40% ownership interest in dpiX Holding, a two -member consortium which has a 100% ownership interest in dpiX LLC (“dpiX”), a supplier of amorphous silicon based thin film transistor arrays (“flat panels”) for the Company’s Imaging Components’ digital image detectors and for its Oncology Systems’ On-Board Imager ® and PortalVision ™ imaging products. In accordance with the dpiX Holding agreement, net profits or losses are allocated to the members, in accordance with their ownership interests. The equity investment in dpiX Holding is accounted for under the equity method of accounting. When VMS recognizes its share of net profits or losses of dpiX Holding, profits or losses in inventory purchased from dpiX are eliminated until realized by VMS. VMS recorded a loss on the equity investment in dpiX Holding of $ 1.5 million in fiscal year 2016 , income on the equity investment in dpiX Holding of $0.1 million in fiscal year 2015 , and a loss on the equity investment in dpiX Holding of $0.8 million in fiscal year 2014 . Income and loss on the equity investment in dpiX Holding is included in selling, general and administrative expenses in the Consolidated Statements of Earnings. The carrying value of the equity investment in dpiX Holding, which was included in other assets on the Consolidated Balance Sheets, was $47.2 million at September 30, 2016 and $47.3 million at October 2, 2015 . During fiscal years 2016 , 2015 and 2014 , the Company purchased glass transistor arrays from dpiX totaling $23.4 million , $21.3 million and $20.9 million , respectively. These purchases of glass transistor arrays are included as a component of inventories on the Consolidated Balance Sheets or cost of revenues – product in the Consolidated Statements of Earnings for these fiscal years. In October 2013, VMS entered into an amended agreement with dpiX and other parties that, among other things, provides the Company with the right to 50% of dpiX’s total manufacturing capacity produced after January 1, 2014. The amended agreement requires the Company to pay for 50% of the fixed costs (as defined in the amended agreement), as determined at the beginning of each calendar year. As of September 30, 2016 , the Company estimated it has fixed cost commitments of $4.5 million related to this amended agreement through December 31, 2016. The fixed cost commitment for future periods will be determined and approved by the dpiX board of directors at the beginning of each calendar year. The amended agreement will continue unless the ownership structure of dpiX changes (as defined in the amended agreement). The Company has determined that dpiX is a variable interest entity because at-risk equity holders, as a group, lack the characteristics of a controlling financial interest. Majority votes are required to direct the manufacturing activities, legal operations and other activities that most significantly affect dpiX’s economic performance. The Company does not have majority voting rights and no power to direct the activities of dpiX and therefore is not the primary beneficiary of dpiX. |
Borrowings
Borrowings | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS The following table summarizes the Company's short-term and long-term debt: September 30, 2016 October 2, 2015 (In millions, except for percentages) Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate Short-term debt: Current portion of 2013 Term Loan Facility $ 50.0 1.65 % $ 50.0 1.32 % 2013 Revolving Credit Facility 300.0 1.91 % 90.0 1.57 % Sumitomo Credit Facility 29.6 0.53 % 18.4 0.63 % Total short-term debt $ 379.6 $ 158.4 Long-term debt: 2013 Term Loan Facility $ 287.5 1.65 % $ 337.5 1.32 % Total long-term debt $ 287.5 $ 337.5 On August 27, 2013 , VMS entered into an agreement, as amended to date, ("Credit Agreement") with certain lenders and Bank of America, N.A. (“BofA”) as administrative agent ("Debt Lenders"). 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 $500 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 . In November 2015, the Company amended its Credit Agreement to increase the aggregate commitments under its revolving credit facility from $300 million to $500 million , reduce commitment fees and interest rate margins applicable to borrowings and increase the maximum consolidated leverage ratio that the Company must maintain. 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 $100 million , subject to certain conditions being met, including lender approval. In September 2016, the Company amended its Credit Agreement to obtain the Debt Lenders' consent to the separation of its Imaging Components business, waive any potential default that may arise as a result of the separation, and increase the maximum consolidated leverage ratio that the Company must maintain. The Credit Agreement will expire in August 2018. The proceeds of the 2013 Credit Facility may be used for working capital, capital expenditures, Company share repurchases, acquisitions and other 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 0.875% to 1.125% based on a leverage ratio involving funded indebtedness and EBITDA (earnings before interest, tax and depreciation and amortization), or (ii) based upon a base rate of (a) the federal funds rate plus 0.50% , (b) BofA’s announced prime rate, or (c) the Eurodollar Rate plus 1.00% , whichever is highest, plus a margin of up to 0.125% 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 1.125% to 1.375% 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 0.125% to 0.375% based on the same leverage ratio, depending upon instructions from the Company. Borrowings under the 2013 Revolving Credit Facility have a maturity of approximately 30 days if based on the Eurodollar Rate and the same maturity as the 2013 Term Loan Facility if based on the base rate. The Company must pay a commitment fee on the unused portion of the 2013 Revolving Credit Facility at a rate from 0.125% to 0.20% based on a leverage ratio. The Company may prepay, reduce or terminate the commitments without penalty. Swing line loans under the 2013 Credit Facility will bear interest at the base rate plus the then applicable margin for base rate loans. The Company paid commitment fees of $0.3 million , $0.6 million , and $0.6 million in fiscal years 2016 , 2015 and 2014 , respectively, related to its borrowings. The Credit Agreement provides that certain material domestic subsidiaries guarantee the 2013 Credit Facility, subject to certain limitations on the amount guaranteed. In March 2016, the Credit Agreement was amended to provide for the release of an existing subsidiary stock pledge securing the 2013 Credit Facility and to provide that the Company will no longer be required to pledge the stock of any of its subsidiaries. The Credit Agreement contains provisions that limit the Company's ability to, among other things, incur future indebtedness, contingent obligations or liens, guarantee indebtedness, make certain investments and capital expenditures, sell stock or assets and pay dividends, and consummate certain mergers or acquisitions. The Credit Agreement contains affirmative and negative covenants applicable to the Company and its subsidiaries that are typical for credit facilities of this type, and that are subject to materiality and other qualifications, carve-outs, baskets and exceptions. The Company has also agreed to maintain certain financial covenants including (i) a maximum consolidated leverage ratio, involving funded indebtedness and EBITDA and (ii) a minimum consolidated fixed charge coverage ratio. The Company was in compliance with all covenants under the Credit Agreement for all periods within these consolidated financial statements. VMS’s Japanese subsidiary (“VMS KK”) has an unsecured uncommitted credit agreement with Sumitomo that enables VMS KK to borrow and have outstanding at any given time a maximum of 3.0 billion Japanese Yen (the “Sumitomo Credit Facility”). In February 2016, the Sumitomo Credit Facility was extended and will expire in February 2017 . 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. Interest paid on borrowings was $10.8 million , $7.1 million and $7.0 million for fiscal year 2016 , 2015 and 2014 , respectively. As of September 30, 2016 , future principal payments for long-term debt due in August 2018 for fiscal years 2017 and 2018 are $50.0 million , and $287.5 million , respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Sep. 30, 2016 | |
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 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. As of September 30, 2016 and October 2, 2015 , the Company did not have any outstanding derivatives designated as hedging instruments. As of September 30, 2016 and October 2, 2015 , the fair value of the Company's derivatives not designated as hedging instruments were immaterial. See Note 3, "Fair Value" for the valuation of the Company’s derivative instruments. Also, see Note 1, "Summary of Significant Accounting Policies" for the 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 on the Consolidated Balance Sheets. However, under agreements containing provisions on netting with certain counterparties of foreign exchange contracts, subject to applicable requirements, the Company is allowed to net-settle transactions on the same date in the same currency, with a single net amount payable by one party to the other. As of September 30, 2016 and October 2, 2015 , there were no potential effects of rights of setoff associated with derivative instruments. The Company is neither required to pledge nor entitled to receive cash collateral related to these derivative transactions. Cash Flow Hedging Activities The Company has many transactions denominated in foreign currencies and addresses certain of those financial exposures through a risk management program that includes the use of derivative financial instruments. The Company sells products throughout the world, often in the currency of the customer’s country, and may hedge certain of the larger foreign currency transactions when they are either not denominated in the relevant subsidiary’s functional currency or the U.S. Dollar. These foreign currency sales transactions are hedged using foreign currency forward contracts. The Company may use other derivative instruments in the future. The Company does not enter into foreign currency forward contracts for speculative or trading purposes. Foreign currency forward contracts are entered into several times a quarter and range from one to thirteen months in maturity. The hedges of foreign currency denominated forecasted revenues are designated and accounted for as cash flow hedges. The designated cash flow hedges de-designate when the anticipated revenues associated with the transactions are recognized and the effective portion in accumulated other comprehensive loss on the Consolidated Balance Sheets is reclassified to revenues in the Consolidated Statements of Earnings. Subsequent changes in fair value of the derivative instrument are recorded in selling, general and administrative expenses in the Consolidated Statements of Earnings to offset changes in fair value of the resulting non-functional currency receivables. For derivative instruments that are designated and qualified as cash flow hedges, the Company formally documents for each derivative instrument at the hedge’s inception, the relationship between the hedging instrument (foreign currency forward contract) and hedged item (forecasted foreign currency revenues), the nature of the risk being hedged and its risk management objective and strategy for undertaking the hedge. The Company records the effective portion of the gain or loss on the derivative instruments that are designated and qualified as cash flow hedges in accumulated other comprehensive loss on the Consolidated Balance Sheets and reclassifies these amounts into revenues in the Consolidated Statements of Earnings in the period in which the hedged transaction is recognized in earnings. The Company assesses hedge effectiveness both at the onset of the hedge and on an ongoing basis using regression analysis. The Company measures hedge ineffectiveness by comparing the cumulative change in the fair value of the effective component of the hedge contract with the cumulative change in the fair value of the hedged item. The Company recognizes any over performance of the derivative as ineffectiveness in revenues, and time value amounts excluded from the assessment of effectiveness in cost of revenues in the Consolidated Statements of Earnings. During fiscal years 2016 , 2015 and 2014 , the Company did not discontinue any cash flow hedge. At the inception of the hedge relationship and quarterly thereafter, the Company assesses whether the likelihood of meeting the forecasted cash flow is highly probable. As of September 30, 2016 , the Company did not have any foreign currency forward contracts designated as cash flow hedges. The following table presents the amounts, before tax, recognized in accumulated other comprehensive loss on the Consolidated Balance Sheets and in the Consolidated Statements of Earnings that are related to the effective portion of the foreign currency forward contracts designated as cash flow hedges: Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Location of Gain Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Net Earnings (Effective Portion) Fiscal Years Fiscal Years (In millions) 2016 2015 2014 2016 2015 2014 Foreign currency forward contracts $ (1.0 ) $ 2.2 $ 3.9 Revenues $ (1.0 ) $ 3.8 $ 1.3 The portion of cash flow hedges gain or loss excluded from the assessment of effectiveness and the ineffective portion of the cash flow hedges were not material in fiscal years 2016 , 2015 and 2014 . Balance Sheet Hedging Activities The Company also hedges balance sheet exposures from its various subsidiaries and business units where the U.S. Dollar is the functional currency. The Company enters into foreign currency forward contracts to minimize the short-term impact of foreign currency fluctuations on monetary assets and liabilities denominated in currencies other than the U.S. Dollar functional currency. The foreign currency forward contracts are short term in nature, typically with a maturity of approximately one month, and are based on the net forecasted balance sheet exposure. For derivative instruments not designated as hedging instruments, changes in their fair values are recognized in selling, general and administrative expenses in the Consolidated Statements of Earnings. Changes in the values of these hedging instruments are offset by changes in the values of foreign-currency-denominated assets and liabilities. Variations from the forecasted foreign currency assets or liabilities, coupled with a significant currency rate movement, may result in a material gain or loss if the hedges are not effectively offsetting the change in value of the foreign currency asset or liability. Other than foreign exchange hedging activities, the Company has no other free-standing or embedded derivative instruments. The Company had the following outstanding foreign currency forward contracts: September 30, 2016 (In millions) Notional Value Sold Notional Value Purchased Australian Dollar $ 21.2 $ — Brazilian Real 7.1 — Canadian Dollar — 3.0 Euro 159.2 1.0 Indian Rupee 9.1 — Japanese yen 69.3 — Swedish Krona 4.5 — Swiss Franc — 94.0 Totals $ 270.4 $ 98.0 The following table presents the gains (losses) recognized in the Company's Consolidated Statements of Earnings related to the foreign currency forward contracts that are not designated as hedging instruments. Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized Fiscal Years (In millions) 2016 2015 2014 Selling, general and administrative expenses $ (5.3 ) $ 27.6 $ 13.7 The gains (losses) on these derivative instruments were significantly offset by the gains (losses) resulting from the re-measurement of monetary assets and liabilities denominated in currencies other than the U.S. Dollar functional currency. Contingent Features Certain of the Company’s derivative instruments are subject to master agreements which contain provisions that require the Company, in the event of a default, to settle the outstanding contracts in net liability positions by making settlement payments in cash or by setting off amounts owed to the counterparty against any credit support or collateral held by the counterparty. As of September 30, 2016 and October 2, 2015 , the Company did not have any outstanding derivative instruments with credit-risk-related contingent features that were in a net liability position. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Indemnification Agreements In conjunction with the sale of the Company’s products in the ordinary course of business, the Company provides standard indemnification of business partners and customers for losses suffered or incurred for property damages, death and injury and for patent, copyright or any other intellectual property infringement claims by any third parties with respect to its products. The terms of these indemnification arrangements are generally perpetual. Except for losses related to property damages, the maximum potential amount of future payments the Company could be required to make under these arrangements is unlimited. As of September 30, 2016 , the Company had not incurred any significant costs since the Spin-offs to defend lawsuits or settle claims related to these indemnification arrangements. As a result, the Company believes the estimated fair value of these arrangements is minimal. VMS has entered into indemnification agreements with its directors and officers and certain of its employees that serve as officers or directors of its foreign subsidiaries that may require VMS to indemnify its directors and officers and those certain employees against liabilities that may arise by reason of their status or service as directors or officers, and to advance their expenses incurred as a result of any legal proceeding against them as to which they could be indemnified. Product Warranty The following table reflects the changes in the Company’s accrued product warranty: Fiscal Years (In millions) 2016 2015 Accrued product warranty, at beginning of period $ 45.9 $ 49.3 Charged to cost of revenues 59.4 50.8 Actual product warranty expenditures (50.5 ) (54.2 ) Accrued product warranty, at end of period $ 54.8 $ 45.9 The long term portion of accrued product warranty costs were $3.7 million and $2.0 million at September 30, 2016 and October 2, 2015 , respectively and were included in other long-term liabilities on the Consolidated Balance Sheets. Lease Commitments At September 30, 2016 , the Company was committed to minimum rentals under non-cancelable operating leases (including rent escalation clauses) for fiscal years 2017 through 2021 and thereafter, as follows (in millions): $ 27.5 , $20.8 , $15.3 , $12.3 , $11.0 and $19.4 , respectively. Rental expenses were $28.1 million, $28.8 million and $28.7 million for fiscal years 2016 , 2015 and 2014 , respectively. Other Commitments See Note 6, "Related Party Transactions" for additional information about the Company's commitments to dpiX. See Note 11, "Stockholders' Equity and Noncontrolling Interests" for additional information about the Company's commitment to the noncontrolling shareholders of MeVis Medical Solutions AG (“MeVis”). See Note 16, "VPT Loans" for additional information about the Company's commitments for funding development and construction of various proton therapy centers. Contingencies Environmental Remediation Liabilities The Company’s operations and facilities, past and present, are subject to environmental laws, including laws that regulate the handling, storage, transport and disposal of hazardous substances. Certain of those laws impose cleanup liabilities under certain circumstances. In connection with those laws and certain of the Company’s past and present operations and facilities, the Company oversees various environmental cleanup projects and also reimburses certain third parties for cleanup activities. Those include facilities sold as part of the Company’s electron devices business in 1995 and thin film systems business in 1997. In addition, the U.S. Environmental Protection Agency (“EPA”) or third parties have named the Company as a potentially responsible party under the amended Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERCLA”), at sites to which the Company or the facilities of the sold businesses were alleged to have shipped waste for recycling or disposal (the “CERCLA sites”). In connection with the CERCLA sites, the Company to date has been required to pay only a small portion of the total amount as its contributions to cleanup efforts. Under the agreement that governs the Spin-offs, VI and VSEA are each obligated to indemnify the Company for one-third of the environmental cleanup costs associated with corporate, discontinued or sold operations prior to the Spin-offs (after adjusting for any insurance proceeds or tax benefits received by the Company), as well as fully indemnify the Company for other liabilities arising from the operations of the business transferred to it as part of the Spin-offs. The Company spent $1.1 million , $1.3 million , and $1.2 million (net of amounts borne by VI and VSEA) during fiscal years 2016 , 2015 and 2014 , respectively, on environmental cleanup costs, third-party claim costs, project management costs and legal costs. Inherent uncertainties make it difficult to estimate the likelihood of the cost of future cleanup, third-party claims, project management and legal services for the CERCLA sites and one of the Company’s past facilities. Nonetheless, as of September 30, 2016 , 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 $1.3 million to $9.9 million . The time frames over which these cleanup project costs are estimated vary, ranging from one year up to thirty years as of September 30, 2016 . Management believes that no amount in that range is more probable of being incurred than any other amount and therefore had accrued $1.3 million for these cleanup projects as of September 30, 2016 . The accrued amount has not been discounted to present value due to the uncertainties that make it difficult to develop a single best estimate. The Company believes it has gained sufficient knowledge to better estimate the scope and cost of monitoring, cleanup and management activities for its other past and present facilities. This, in part, is based on agreements with other parties and also cleanup plans approved by or completed in accordance with the requirements of the governmental agencies having jurisdiction. As of September 30, 2016 , 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 $25.5 million . The time frames over which these costs are estimated to be incurred vary, ranging from one to thirty years as of September 30, 2016 . 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 $8.1 million at September 30, 2016 . Accordingly, the Company had accrued $6.8 million for these costs as of September 30, 2016 , which represented the best estimate discounted at 4% , net of inflation. This accrual is in addition to the $1.3 million described in the preceding paragraph. The table that follows presents information about the Company’s liabilities for future environmental costs at September 30, 2016 , based on estimates as of that date. (In millions) Recurring Costs Non-Recurring Costs Total Anticipated Future Costs Fiscal Years: 2017 $ 0.4 $ 1.2 $ 1.6 2018 0.5 0.5 1.0 2019 0.4 0.6 1.0 2020 0.4 0.3 0.7 2021 0.5 0.7 1.2 Thereafter 2.8 1.0 3.8 Total costs $ 5.0 $ 4.3 $ 9.3 Less imputed interest 1.2 Reserve amount $ 8.1 Recurring costs include expenses for such tasks as the ongoing operation, maintenance and monitoring of cleanup. Non-recurring costs include expenses for such tasks as soil excavation and treatment, installation of injection and monitoring wells, other costs for soil and groundwater treatment by injection, construction of ground and surface water treatment systems, soil and groundwater investigation, governmental agency costs required to be reimbursed by the Company, removal and closure of treatment systems and monitoring wells, and the defense and settlement of pending and anticipated third-party claims. These amounts are only estimates of anticipated future costs. The amounts the Company will actually spend may be greater or less than these estimates, even as the Company believes the degree of uncertainty will narrow as cleanup activities progress. While the Company believes its reserve is adequate, as the scope of the Company’s obligations becomes more clearly defined, the Company may modify the reserve, and charge or credit future earnings accordingly. Nevertheless, based on information currently known to management, and assuming VI and VSEA satisfy their indemnification obligations, management believes the costs of these environmental related matters are not reasonably likely to have a material adverse effect on the consolidated financial statements of the Company in any one fiscal year. The Company evaluates its liability for investigation and cleanup costs in light of the obligations and apparent financial strength of potentially responsible parties and insurance companies with respect to which the Company believes it has rights to indemnity or reimbursement. The Company has asserted claims for recovery of environmental investigation and cleanup costs already incurred, and to be incurred in the future against various insurance companies and other third parties. The Company receives certain cash payments in the form of settlements and judgments from defendants, insurers and other third parties from time to time. The Company has also reached an agreement with an insurance company under which that insurer has agreed to pay a portion of the Company’s past and future environmental related expenditures. Receivables, net of VI’s and VSEA’s portion, from that insurer amounted to $2.0 million at September 30, 2016 and $2.1 million at October 2, 2015 , with the respective current portion included in prepaid expenses, other current assets and the respective noncurrent portion included in other assets and the payable portion to that insurer is included in other long-term liabilities on the Consolidated Balance Sheets. The Company believes that this receivable is recoverable because it is based on a binding, written settlement agreement with what appears to be a financially viable insurance company, and the insurance company has paid the Company’s claims in the past. The availability of the indemnities of VI and VSEA will depend upon the future financial strength of VI and VSEA. Given the long-term nature of some of the liabilities, VI and VSEA may be unable to fund the indemnities in the future. It is also possible that a court would disregard this contractual allocation among the parties and require the Company to assume responsibility for obligations allocated to another party, particularly if the other party were to refuse or was unable to pay any of its allocated share. The agreement governing the Spin-offs generally provides that if a court prohibits a company from satisfying its shared indemnification obligations, the indemnification obligations will be shared equally by the two other companies. Other Matters From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that the Company believes will result in a probable loss (including, among other things, probable settlement value). A loss or a range of loss is disclosed when it is reasonably possible that a material loss will be incurred and can be estimated or when it is reasonably possible that the amount of a loss, when material, will exceed the recorded provision. In September 2015, Elekta Ltd. and William Beaumont Hospital served the Company with a complaint alleging infringement of patents related to certain aspects of cone beam imaging in conjunction with radiotherapy. During September 2015 and October 2015, the Company filed several complaints in the United States and foreign courts and the U.S. International Trade Commission against Elekta AB and its subsidiaries alleging infringement of various patents relating to certain aspects of cone beam imaging, cone-beam imaging gantries, volumetric modulated arc therapy (“VMAT”), and combined magnetic resonance imaging linear accelerator systems. In February 2016, Elekta Ltd. filed several complaints in the U.S. and foreign courts alleging infringement of certain patents related to linear accelerator control systems and treatment planning. In October 2016, Elekta Ltd. filed a complaint in the United Kingdom alleging infringement of a further patent related to linear accelerator control systems and treatment planning, and added a patent relating to the same subject matter to its existing U.S. suit filed in February 2016. These legal proceedings are ongoing and, although there have been interim court rulings in certain jurisdictions, there have been no definite outcomes to date. The Company is unable to predict the outcomes of these matters and therefore, no amounts have been accrued as of September 30, 2016 . In June 2015, a foreign subsidiary of the Company was charged by the Department for Investigation and Penal Action of Lisbon with alleged improper activities relating to three tenders of medical equipment in Portugal during the period of 2003 to 2009. The Company previously undertook an internal investigation of this matter and voluntarily disclosed the results of this investigation to the U.S. Department of Justice and the U.S. Securities and Exchange Commission. After the Company requested a judicial review available under Portuguese criminal procedure processes as to whether or not such charges are proper under Portuguese law, the matter was resolved and definitively dismissed, subject to a 30-day probation period which began on October 21, 2016, with no adverse findings or charges against the Company. In April 2007, a patent infringement lawsuit was initiated 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. In addition to the above, the Company is involved in other legal matters. However, such matters are subject to many uncertainties and outcomes are not predictable with assurance. The Company is unable to estimate a range of reasonably possible losses with respect to such matters. There can be no assurances as to whether the Company will become subject to significant additional claims and liabilities with respect to ongoing or future proceedings. If actual liabilities significantly exceed the estimates made, the Company’s consolidated financial position, results of operations or cash flows could be materially adversely affected. Legal expenses relating to legal matters are expensed as incurred. Restructuring Charges As part of the Company's plan to enhance operational performance through productivity initiatives, the Company implemented a workforce reduction, primarily in its Oncology Systems and Imaging Components segments, in the first quarter of fiscal year 2016. The Company incurred $5.3 million in restructuring charges during fiscal year 2016, in connection with the restructuring program, of which $4.0 million was paid in fiscal year 2016. The Company expects to substantially complete this restructuring program by the end of fiscal year 2017, and any remaining restructuring charges relating to this program are not expected to be material. In fiscal year 2015, the Company incurred $13.3 million in restructuring charges and a significant portion of these charges was paid in cash in fiscal year 2015 and was substantially completed in fiscal year 2016. There were no restructuring charges incurred in fiscal year 2014. Restructuring charges are included in selling, general and administrative expenses in the Consolidated Statements of Earnings. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 30, 2016 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Retirement Plans | RETIREMENT PLANS The Company sponsors the Varian Medical Systems, Inc. Retirement Plan (the “Retirement Plan”) — a defined contribution plan that is available to substantially all of its employees in the United States. Under Section 401(k) of the Internal Revenue Code, the Retirement Plan allows for tax-deferred salary contributions by eligible employees. Participants can contribute from 1% to 25% of their eligible base compensation to the Retirement Plan on a pre-tax or Roth basis (plus up to an additional 15% on an after-tax basis if they have more than one year of service with the Company) and all or a portion of their bonuses under the Employee Incentive Plan. However, participant contributions are limited to a maximum annual amount as determined periodically by the Internal Revenue Service. The Company matches eligible participant contributions dollar for dollar for the first 6% of eligible base compensation or bonus (for those employees with one or more years of service with the Company). All matching contributions vest immediately. The Company also has a defined contribution plan that is available to regular full-time employees in the United Kingdom (the “U.K. Savings Plan”). Participants can contribute from 4% to 100% of their eligible base compensation to the U.K. Savings Plan subject to a maximum annual amount determined by certain tax rules. The Company matches participant contributions up to 6% of participants’ eligible base compensation, based on the participants’ level of contributions under this U.K. Savings Plan. All matching contributions vest immediately. The Company sponsors seven defined benefit pension plans for regular full time employees in Germany, Japan, Switzerland, the Philippines and the United Kingdom. The Company also sponsors a post-retirement benefit plan that provides healthcare benefits to certain eligible retirees in the United States. The Company recognizes the funded status of its defined benefit pension and post-retirement benefit plans on its Consolidated Balance Sheets. Each overfunded plan is recognized as an asset, and each underfunded plan is recognized as a liability. Unrecognized prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status are recognized as a component of accumulated other comprehensive loss within Stockholders’ equity. Current year disclosures include the Company's defined benefit pension plans from acquisitions completed in fiscal year 2015, including one in Germany and one in the Philippines, which were not presented in the previous year as they were not material. Total retirement, post-retirement benefit plan and defined benefit plan expense for all retirement plans amounted to $33.3 million , $32.1 million and $28.6 million for fiscal years 2016 , 2015 and 2014 , respectively. The Company's post-retirement benefit plan is not presented in any of the following information as it is not material. Obligations and Funded Status The following table presents the funded status of the defined benefit pension plans: (In millions) September 30, 2016 October 2, 2015 Change in benefit obligation: Benefit obligation - beginning of fiscal year $ 210.3 $ 207.6 Service cost 6.1 5.7 Interest cost 4.1 4.4 Plan participants’ contributions 8.8 9.9 Plan amendments (1.2 ) (1.1 ) Plan settlements (4.0 ) (4.0 ) Plan combinations 0.7 — Actuarial loss 31.8 3.7 Foreign currency changes (8.9 ) (8.9 ) Benefit and expense payments (4.6 ) (7.0 ) Benefit obligation - end of fiscal year $ 243.1 $ 210.3 Change in plan assets: Plan assets - beginning of fiscal year $ 189.9 $ 188.6 Employer contributions 8.1 6.9 Actual return on plan assets 13.0 4.1 Plan participants’ contributions 8.8 9.9 Plan settlements (4.0 ) (4.0 ) Foreign currency changes (8.7 ) (8.6 ) Plan combinations 0.4 — Benefit and expense payments (4.6 ) (7.0 ) Plan assets - end of fiscal year $ 202.9 $ 189.9 Funded status $ (40.2 ) $ (20.4 ) Amounts recognized within the consolidated balance sheet: Other assets $ — $ 4.3 Other long-term liabilities (40.2 ) (24.7 ) Net amount recognized $ (40.2 ) $ (20.4 ) The following table presents the amounts recognized in accumulated other comprehensive loss (before tax) for the defined benefit pension plans: (In millions) September 30, 2016 October 2, 2015 Prior service credit $ 1.9 $ 0.7 Net loss (80.7 ) (58.9 ) Accumulated other comprehensive loss $ (78.8 ) $ (58.2 ) The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those defined benefit pension plans where accumulated benefit obligation exceeded the fair value of plan assets: (In millions) September 30, 2016 October 2, 2015 Projected benefit obligation $ 17.8 $ 15.6 Accumulated benefit obligation $ 16.8 $ 14.2 Fair value of plan assets $ 13.0 $ 13.2 The accumulated benefit obligation for all defined benefit pension plans was $193.4 million and $175.6 million at September 30, 2016 and October 2, 2015 , respectively. Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss The following table shows the components of the Company’s net periodic benefit costs and the other amounts recognized in other comprehensive loss, before tax, related to the Company’s defined benefit pension plans: Fiscal Years (In millions) 2016 2015 2014 Net Periodic Benefit Costs: Service cost $ 6.1 $ 5.7 $ 4.1 Interest cost 4.1 4.4 6.1 Loss due to settlement 1.0 1.1 1.8 Expected return on assets (6.8 ) (7.1 ) (7.8 ) Amortization of prior service cost (0.1 ) 0.1 0.2 Recognized actuarial loss 2.9 2.5 2.1 Net periodic benefit cost 7.2 6.7 6.5 Other Amounts Recognized in Other Comprehensive Loss: New prior service credit (1.2 ) (1.1 ) — Net loss arising during the year 25.6 6.7 10.3 Amortization of prior service credit (cost) 0.1 (0.1 ) (0.2 ) Amortization, settlement and curtailment of net actuarial loss (3.9 ) (3.6 ) (3.9 ) Total recognized in other comprehensive loss 20.6 1.9 6.2 Total recognized in net periodic benefit cost and other comprehensive loss $ 27.8 $ 8.6 $ 12.7 The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during fiscal year 2017 related to the Company’s defined benefit pension plans are as follows: (In millions) Total Prior service credit $ 0.2 Net loss (4.4 ) Total $ (4.2 ) Assumptions The assumptions used to determine net periodic benefit cost and to compute the expected long-term return on assets for the Company’s defined benefit pension plans were as follows: Fiscal Years Net Periodic Benefit Cost 2016 2015 2014 Discount rate 2.09 % 2.58 % 3.11 % Rate of compensation increase 2.42 % 2.45 % 2.51 % Expected long-term return on assets 3.69 % 3.90 % 4.21 % The assumptions used to measure the benefit obligation for the Company’s defined benefit pension plans were as follows: Benefit Obligation September 30, 2016 October 2, 2015 Discount rate 1.03 % 2.09 % Rate of compensation increase 2.33 % 2.50 % The benefit obligation of defined benefit pension plans was measured as of September 30, 2016 . The discount rate was adjusted as of September 30, 2016 to a range of 0.30% to 4.75% , primarily based on the current effective yield of long-term corporate bonds that are of high quality with satisfactory liquidity and credit rating with durations corresponding to the expected duration of the benefit obligations. Additionally, the rate of projected compensation increase was adjusted as of September 30, 2016 to a range of 1.75% to 5.00% reflecting expected inflation levels and the Company’s future outlook. During the fourth quarter of fiscal year 2016 , the Company reviewed the expected long-term rate of return on defined benefit pension plan assets. This review consisted of forward-looking projections for a risk-free rate of return, inflation rate and implied equity risk premiums for particular asset classes. The results of this review were applied to the target asset allocation in accordance with the Company’s planned investment strategies, which are implemented by outside investment managers. The expected long-term rate of return on plan assets was determined based on the weighted average of projected returns on each asset class. Plan Assets For the defined benefit pension plans, the investment objectives of the Company are to generate returns that will enable the defined benefit pension plans to meet their future obligations. The precise amount of these obligations depends on future events, including the life expectancies of the pension plans’ members and the level of salary increases. The obligations are estimated using actuarial assumptions, based on the current economic environment. The investment strategy depends on the country in which the defined benefit pension plan applies. The investment objectives of some defined benefit pension plans are more conservative than others. In general, the investment strategy of the defined benefit pension plans is to balance the requirement to generate return using higher-returning assets such as equity securities, with the need to control risk with less volatile assets, such as fixed-income securities. Risks include, among others, the likelihood of the defined benefit pension plans becoming underfunded, thereby increasing their dependence on contributions from the Company. Within each asset class, investment managers give consideration to balancing the portfolio among industry sectors, geographies, interest rate sensitivity, dependence on economic growth, currency and other factors that affect investment returns. The target allocation as of the end of fiscal year 2016 was 25% equities, 64% debt and fixed income assets, 3% real estate, and 8% other. The following table presents the Company’s defined benefit pension plans’ major asset categories, their associated fair values, as well as the actual allocation of equity, debt and fixed income, real estate and all other types of investments: (In millions) Quoted Prices in Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of September 30, 2016: Investment funds: Mutual funds - equities $ — $ 52.3 $ — $ 52.3 Mutual funds - debt — 27.2 — 27.2 Mutual funds - real estate — 4.7 — 4.7 Other — 2.9 — 2.9 Assets held by insurance company: Insurance contracts — 115.5 — 115.5 Cash and cash equivalents 0.3 — — 0.3 Total $ 0.3 $ 202.6 $ — $ 202.9 As of October 2, 2015: Investment funds: Mutual funds - equities $ — $ 42.7 $ — $ 42.7 Mutual funds - debt — 35.5 — 35.5 Mutual funds - real estate — 4.4 — 4.4 Other — 3.4 — 3.4 Assets held by insurance company: Insurance contracts — 102.9 — 102.9 Cash and cash equivalents 1.0 — — 1.0 Total $ 1.0 $ 188.9 $ — $ 189.9 Valuation Techniques Debt securities are valued at the closing price reported on the stock exchange on which the individual securities are traded. Mutual funds held in trust or similar entities include investments in publicly traded mutual funds and are typically valued using the net asset value provided by the administrator of the fund. Insurance contracts are valued by the insurer using the cash surrender value, which is the amount a plan would receive if a contract was terminated. Cash includes deposits and money market accounts, which are valued at their cost plus interest on a daily basis, which approximates fair value. There were no significant changes in valuation techniques during fiscal years 2016 and 2015 . Estimated Contributions and Future Benefit Payments The Company made contributions of $8.1 million to the defined benefit pension plans during fiscal year 2016 , compared to $6.9 million in fiscal year 2015 and $7.2 million in fiscal year 2014. The Company expects total contributions to the defined benefit pension plans for fiscal year 2017 will be approximately $7.2 million . Estimated future benefit payments to the defined benefit pension plans at September 30, 2016 were as follows: (In millions) Total Fiscal Years: 2017 $ 8.6 2018 8.3 2019 8.5 2020 5.3 2021 8.4 2022-2026 40.3 Total $ 79.4 |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | STOCKHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS Share Repurchase Program In November 2015, the VMS Board of Directors authorized the repurchase of 8.0 million shares of VMS common stock through December 31, 2016 . Share repurchases under the Company's authorizations may be made in open market purchases, in privately negotiated transactions (including accelerated share repurchase (“ASR”) programs), or under Rule 10b5-1 share repurchase plans, and may be made from time to time in one or more blocks. All shares that were repurchased under the Company's share repurchase programs have been retired. The Company repurchased shares of VMS common stock under various authorizations during the periods presented as follows: Fiscal Years (In millions, except per share amounts) 2016 2015 2014 Number of shares 5.7 4.8 7.8 Average repurchase price per share $ 81.61 $ 87.47 $ 80.52 Total cost $ 461.3 $ 422.0 $ 624.0 Included in the table above, VMS repurchased common stock under various ASR agreements during the periods presented as follows: Fiscal Years (In millions, except per share amounts) 2016 2015 2014 Number of shares 1.0 2.3 — Average repurchase price per share $ 83.98 $ 90.00 $ — Total cost $ 85.8 $ 203.9 $ — As of September 30, 2016 , approximately 3.8 million shares of VMS common stock remained available for repurchase under the November 2015 authorization. In November 2016, the VMS Board of Directors authorized the repurchase of additional 8.0 million shares of VMS common stock commencing on January 1, 2017. Accumulated Other Comprehensive Loss (In millions) Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans Net Unrealized Gains (Losses) Cash Flow Hedging Instruments Net Cumulative Translation Adjustment Accumulated Other Comprehensive Earnings (Loss) Balance at September 27, 2013 $ (40.1 ) $ (0.7 ) $ — $ 0.7 $ (40.1 ) Other comprehensive earnings (loss) before reclassifications (5.4 ) 3.9 — (16.2 ) (17.7 ) Amounts reclassified out of other comprehensive loss 2.3 (1.3 ) — — 1.0 Tax expense (0.9 ) (0.9 ) — — (1.8 ) Balance at September 26, 2014 (44.1 ) 1.0 — (15.5 ) (58.6 ) Other comprehensive earnings (loss) before reclassifications (4.5 ) 2.2 (0.2 ) (24.8 ) (27.3 ) Amounts reclassified out of other comprehensive loss 2.1 (3.8 ) — — (1.7 ) Tax benefit 0.4 0.6 0.1 — 1.1 Balance at October 2, 2015 (46.1 ) — (0.1 ) (40.3 ) (86.5 ) Other comprehensive earnings (loss) before reclassifications (23.4 ) (1.0 ) (0.4 ) 2.8 (22.0 ) Amounts reclassified out of other comprehensive loss 2.4 1.0 0.6 — 4.0 Tax benefit (expense) 3.8 — (0.1 ) — 3.7 Balance at September 30, 2016 $ (63.3 ) $ — $ — $ (37.5 ) $ (100.8 ) The amounts reclassified out of other comprehensive earnings into the Consolidated Statements of Earnings, with line item location, during each period were as follows (in millions): Fiscal Years Comprehensive Earnings Components 2016 2015 2014 Line Item in Statements of Earnings Unrealized losses on defined benefit pension and post-retirement benefit plans $ (2.4 ) $ (2.1 ) $ (2.3 ) Cost of revenues & Operating expenses Unrealized gains and (losses) on cash flow hedging instruments (1.0 ) 3.8 1.3 Revenues Unrealized loss on available-for-sale investments (0.6 ) — — Operating expenses Total amounts reclassified out of other comprehensive loss $ (4.0 ) $ 1.7 $ (1.0 ) Noncontrolling Interests In April 2015, the Company completed the acquisition of 73.5% of the then outstanding shares of MeVis Medical Solutions AG ("MeVis"), a public company based in Bremen, Germany that provides image processing software and services for cancer screening. See Note 15, "Business Combinations" for additional information. In August 2015, the Company, through one of its German subsidiaries, entered into a domination and profit and loss transfer agreement (the “DPLTA”) with MeVis. In October 2015, the DPLTA became effective upon its registration at the local court of Bremen, Germany. Under the DPLTA, MeVis subordinates its management to the Company and undertakes to transfer all of its annual profits and losses to the Company. In return, the DPLTA grants the noncontrolling shareholders of MeVis: (1) an annual recurring net compensation of €0.95 per MeVis share starting from January 1, 2015 and (2) a put right for their MeVis shares at €19.77 per MeVis share. Upon effectiveness of the DPLTA, the noncontrolling interests in MeVis became redeemable as a result of the put right and were reclassified to temporary equity. As of September 30, 2016 , the redemption value of redeemable noncontrolling interests in MeVis was $10.3 million . During fiscal year 2016, an immaterial number of MeVis' shares were purchased under the put right. As of September 30, 2016 , noncontrolling shareholders together held approximately 0.5 million shares of MeVis, representing 26.4% of the outstanding shares. Changes in noncontrolling interests and redeemable noncontrolling interests relating to MeVis and other subsidiaries of the Company were as follows: Fiscal Years 2016 2015 (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Noncontrolling Interests Redeemable Noncontrolling Interests Balance at beginning of period $ 14.7 $ — $ — $ — Net earnings (loss) attributable to noncontrolling interests (0.1 ) 0.5 0.5 — Acquisition of Mevis — — 10.2 — Capital contribution from noncontrolling interest holders — — 4.0 — Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests (10.4 ) 10.4 — — Other (0.5 ) (0.6 ) — — Balance at end of period $ 3.7 $ 10.3 $ 14.7 $ — |
Employee Stock Plans
Employee Stock Plans | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Plans | EMPLOYEE STOCK PLANS Employee Stock Plans In February 2005, VMS’s stockholders approved the 2005 Omnibus Stock Plan (the “2005 Plan”), which was last amended and restated in February 2012. The 2005 Plan, as amended and restated to date, is referred to as (the “Third Amended 2005 Plan”). The Third Amended 2005 Plan provides for the grant of equity incentive awards, including stock options, restricted stock and restricted stock units, stock appreciation rights, and performance units and performance shares to officers, directors, key employees and consultants. The Third Amended 2005 Plan also provides for the grant of deferred stock units to non-employee directors. The maximum number of shares issuable under the Third Amended 2005 Plan is (a) 25.0 million , plus (b) the number of shares authorized for issuance, but never issued, under previously approved plans, plus (c) the number of shares subject to awards previously granted under previously approved plans that terminate, expire, or lapse, plus (d) amounts granted in substitution of options in connection with certain transactions. Stock options granted under the Third Amended 2005 Plan have an exercise price equal to the closing market price of a share of VMS common stock on the grant date. Except for directors, stock options granted under the Third Amended 2005 Plan generally are exercisable in the following manner: the first one-third one year from the date of grant, with the remainder vesting monthly during the following two -year period. Stock option grants to directors are immediately exercisable. For grants of non-qualified stock options made on or after November 17, 2005 under the Third Amended 2005 Plan to employees who retire from the Company within one year of the grant date, the number of shares subject to the stock option shall be adjusted proportionally by the time during such one -year period that the employee remained an employee of the Company (based upon a 365 day year). The revised number of shares subject to the stock option would continue to vest in accordance with the original vesting schedule, and the remaining shares would be cancelled as of the date of retirement. Stock options under the Third Amended 2005 Plan generally have a term of seven years. The Third Amended 2005 Plan prohibits the repricing of stock options and stock appreciation rights without the approval of VMS’s stockholders. Restricted stock awards and restricted stock unit awards generally vest over a period of one to three years from the date of grant. For awards of restricted stock and restricted stock units prior to fiscal year 2010, any unvested awards are generally forfeited at the time of termination. However, restricted stock units granted in fiscal year 2010 and thereafter that are unvested at death become fully vested and unvested restricted stock units will generally continue to vest in accordance with the original vesting schedule if a retirement eligible employee retires one year or more from grant date. If a retirement eligible employee retires on or after January 1 of the calendar year immediately following the calendar year in which the grant date occurred, the number of restricted stock units shall be adjusted proportionally, subject to local regulations, by the time during such one year period that the employee remained an employee of the Company (based upon a 365 day year). The revised number of restricted stock units would vest in accordance with the original vesting schedule and the remaining restricted stock units would be cancelled as of the date of retirement. Deferred stock unit awards to non-employee directors vest over a period of not less than one year from the date of grant, unless otherwise provided in the grant agreement as determined by VMS’s Board of Directors, and vesting may be pro rata during the vesting period. Each deferred stock unit is deemed to be the equivalent of one share of VMS common stock. Payment of deferred stock units generally will be made in shares of VMS common stock upon the earlier of the third anniversary of the grant date or the director’s termination. In fiscal years 2016 , 2015 and 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 and total shareholder return 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 at the beginning of the period. The performance units vest at the end of a three -year service period. Performance units granted prior to fiscal year 2015 have one three -year performance period for both the Company's performance and total shareholder return, and performance units granted in fiscal year 2015 have a one -year Company's performance period and a three -year total shareholder return performance period. Performance unit grants made in fiscal year 2016 have three separate one -year Company performance periods and a three -year total shareholder return. Subject to certain exceptions, any unvested performance unit awards are forfeited at the time of termination. Also, similar to the adjustments discussed above for restricted stock unit awards, the number of performance units that ultimately vest is adjusted in the case of retirement. The fair value of options granted and the option component of the shares purchased under the Employee Stock Purchase Plan (which is described further below) shares were estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: Employee Stock Option Plans Employee Stock Purchase Plans Fiscal Years Fiscal Years 2016 2015 2014 2016 2015 2014 Expected term (in years) 4.13 4.15 4.13 0.50 0.50 0.50 Risk-free interest rate 1.1 % 1.3 % 1.2 % 0.3 % 0.1 % 0.1 % Expected volatility 20.1 % 22.1 % 24.6 % 17.6 % 12.7 % 12.8 % Expected dividend — % — % — % — % — % — % Weighted average fair value at grant date $ 13.71 $ 18.52 $ 18.24 $ 16.09 $ 15.87 $ 14.20 The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. The expected term is based on the observed and expected time to post-vesting exercise and post-vesting cancellations of stock options by Company employees. The Company used a combination of historical and implied volatility of its traded options, or blended volatility, in deriving the expected volatility assumption. The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of VMS’s stock options. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. As share-based compensation expense recognized in the Consolidated Statements of Earnings is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised, in subsequent periods if actual forfeitures differ from those estimates. The table below summarizes the effect of recording share-based compensation expense: Fiscal Years (In millions) 2016 2015 2014 Cost of revenues - Product $ 4.2 $ 4.7 $ 3.3 Cost of revenues - Service 4.2 4.1 4.7 Research and development 6.7 6.8 6.2 Selling, general and administrative 33.2 30.7 25.4 Total share-based compensation expense $ 48.3 $ 46.3 $ 39.6 Income tax benefit for share-based compensation $ (14.8 ) $ (14.2 ) $ (12.1 ) The table below summarizes the effect of recording pre-tax share-based compensation expense for equity incentive awards: Fiscal Years (In millions) 2016 2015 2014 Stock options $ 11.1 $ 11.3 $ 9.5 Restricted stock units and restricted stock awards (1) 33.0 31.4 26.6 Employee stock purchase plan 4.2 3.6 3.5 Total share-based compensation expense $ 48.3 $ 46.3 $ 39.6 (1) Restricted stock units and restricted stock awards include performance units and deferred stock units. A summary of share-based awards available for grant is as follows: (In millions) Shares Available for Grant Balance at September 27, 2013 9.9 Granted (1.9 ) Canceled or expired 0.2 Balance at September 26, 2014 8.2 Granted (1.8 ) Canceled or expired 0.3 Balance at October 2, 2015 6.7 Granted (2.4 ) Canceled or expired 0.3 Balance at September 30, 2016 4.6 For purposes of the total number of shares available for grant under the Third Amended 2005 Plan, any shares subject to awards of stock options are counted against the available-for-grant limit as one share for every one share subject to the award. Awards other than stock options are counted against the available-for-grant limit as 2.6 shares for every one share awarded on or after February 9, 2012. The shares available for grant limit is further adjusted to reflect a maximum payout that could be issued for each performance unit granted. The maximum payouts that could be issued for each performance grant are 1.75 shares beginning in fiscal year 2016, 2.0 shares in fiscal year 2015 and 1.5 shares prior to fiscal year 2015. All awards may be subject to restrictions on transferability and continued employment as determined by the Compensation and Management Development Committee. Activity under the Company’s employee stock plans related to stock options is presented below: Options Outstanding (In millions, except per share amounts) Number of Shares Weighted Average Exercise Price Balance at September 27, 2013 4.5 $ 53.02 Granted 0.6 83.50 Canceled, expired or forfeited (0.1 ) 72.35 Exercised (1.7 ) 49.01 Balance at September 26, 2014 3.3 60.53 Granted 0.6 92.29 Canceled, expired or forfeited — 77.53 Exercised (1.4 ) 52.83 Balance at October 2, 2015 (1.6 million options exercisable at a weighted average exercise price of $62.97) 2.5 72.58 Granted 0.8 75.97 Canceled, expired or forfeited — 85.29 Exercised (0.7 ) 57.23 Balance at September 30, 2016 2.6 $ 78.25 The total pre-tax intrinsic value of stock options exercised was $23.8 million , $51.1 million and $54.4 million in fiscal years 2016 , 2015 and 2014 , respectively. The total fair value of stock options vested was $10.2 million , $10.0 million and $10.7 million in fiscal years 2016 , 2015 and 2014 , respectively. The following table summarizes information related to stock options outstanding and exercisable under the Company’s employee stock plans at September 30, 2016 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Aggregate Intrinsic Value (1) Number of Shares Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Aggregate Intrinsic Value (1) (In millions, except years and per-share amounts) $50.66 – $57.90 0.3 1.4 $ 55.47 $ 11.5 0.3 1.4 $ 55.47 $ 11.5 $64.01 – $72.26 0.3 2.9 68.59 10.7 0.3 2.9 68.59 10.7 $74.28 – $81.90 0.8 6.3 75.96 19.6 — 4.1 74.28 0.2 $83.70 – $92.65 1.2 4.9 88.28 12.6 0.8 4.8 87.21 9.2 Total 2.6 4.7 $ 78.25 $ 54.4 1.4 3.6 $ 76.31 $ 31.6 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, which is computed based on the difference between the exercise price and the closing price of VMS common stock of $99.53 as of September 30, 2016 , the last trading date of fiscal year 2016 , and which represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date. As of September 30, 2016 , there was $10.6 million of total unrecognized compensation expense related to stock options granted under the Company’s employee stock plans. This unrecognized compensation expense is expected to be recognized over a weighted average period of 1.6 years. The activity for restricted stock, restricted stock units, deferred stock units and performance units is summarized as follows: (In millions, except per share amounts) Number of Shares Weighted Average Grant-Date Fair Value Balance at September 27, 2013 1.0 $ 64.36 Granted 0.5 82.51 Vested (0.3 ) 63.70 Canceled or expired (0.1 ) 70.69 Balance at September 26, 2014 1.1 72.08 Granted 0.4 93.01 Vested (0.5 ) 67.93 Canceled or expired (0.1 ) 68.51 Balance at October 2, 2015 0.9 84.11 Granted 0.5 78.11 Vested (0.4 ) 80.88 Canceled or expired — 81.94 Balance at September 30, 2016 1.0 $ 82.51 The total grant-date fair value of restricted stock units, deferred stock units and performance units was $38.4 million , $38.1 million and $38.7 million in fiscal years 2016 , 2015 and 2014 , respectively. The total fair value of restricted stock, restricted stock units, deferred stock units and performance units that vested was $31.7 million , $44.5 million and $25.4 million in fiscal years 2016 , 2015 and 2014 , respectively. As of September 30, 2016 , unrecognized compensation expense totaling $38.6 million was related to restricted stock, restricted stock units, deferred stock units and performance units granted under the Company’s employee stock plans. This unrecognized share-based compensation expense is expected to be recognized over a weighted average period of 1.8 years. The Company withheld 0.1 million shares with a fair value of $11.0 million for employees’ minimum withholding taxes at vesting of such awards in fiscal year 2016 . Employee Stock Purchase Plan In February 2010, VMS’s stockholders approved the 2010 Employee Stock Purchase Plan (the “2010 ESPP”). The 2010 ESPP provides eligible employees with an opportunity to purchase shares of VMS common stock at 85% of the lower of its fair market value at the start and end of a six -month purchase period. The 2010 ESPP provides for the purchase of up to seven million shares of VMS common stock. VMS issued approximately 0.3 million shares for $17.2 million in fiscal year 2016 and approximately 0.2 million shares for $16.3 million in fiscal year 2015 . At September 30, 2016 , 5.6 million shares were available for issuance under the 2010 ESPP. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net earnings per share: Fiscal Years (In millions, except per share amounts) 2016 2015 2014 Net earnings attributable to Varian $ 402.3 $ 411.5 $ 403.7 Weighted average shares outstanding - basic 95.4 99.7 104.0 Dilutive effect of potential common shares 0.6 0.9 1.3 Weighted average shares outstanding - diluted 96.0 100.6 105.3 Net earnings per share attributable to Varian - basic $ 4.22 $ 4.13 $ 3.88 Net earnings per share attributable to Varian - diluted $ 4.19 $ 4.09 $ 3.83 Anti-dilutive employee shared based awards, excluded 1.6 1.0 0.6 |
Taxes on Earnings
Taxes on Earnings | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings | TAXES ON EARNINGS The Company accounts for income taxes under an asset and liability approach where deferred income taxes are based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. Taxes on earnings were as follows: Fiscal Years (In millions) 2016 2015 2014 Current provision: Federal $ 89.4 $ 52.8 $ 86.6 State and local 10.4 8.4 6.1 Foreign 77.8 76.1 62.2 Total current 177.6 137.3 154.9 Deferred provision (benefit): Federal (13.6 ) 2.5 5.0 State and local (1.2 ) (0.6 ) (0.1 ) Foreign (9.1 ) 3.5 11.0 Total deferred (23.9 ) 5.4 15.9 Taxes on earnings $ 153.7 $ 142.7 $ 170.8 Earnings before taxes are generated from the following geographic areas: Fiscal Years (In millions) 2016 2015 2014 United States $ 187.0 $ 223.9 $ 173.9 Foreign 369.4 330.8 400.6 Total earnings before taxes $ 556.4 $ 554.7 $ 574.5 The effective tax rate differs from the U.S. federal statutory tax rate as a result of the following: Fiscal Years 2016 2015 2014 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 0.7 % 0.8 % 0.8 % Non-U.S. income taxed at different rates, net (7.3 )% (9.2 )% (5.2 )% Other (0.8 )% (0.9 )% (0.9 )% Effective tax rate 27.6 % 25.7 % 29.7 % During fiscal years 2016 , 2015 and 2014 , the Company’s effective tax rate was lower than the U.S. federal statutory rate primarily because the Company’s foreign earnings are taxed at rates that, on average, are lower than the U.S. federal rate. This reduction is partly offset by the fact that the Company’s domestic earnings are also subject to state income taxes. Significant components of deferred tax assets and liabilities are as follows: September 30, October 2, (In millions) 2016 2015 Deferred Tax Assets: Deferred revenues $ 30.2 $ 28.2 Deferred compensation 38.9 33.5 Product warranty 11.9 10.5 Inventory adjustments 21.5 20.9 Share-based compensation 22.3 22.8 Environmental reserve 4.2 4.3 Accruals and reserves 15.7 14.3 Net operating loss carryforwards 106.6 92.6 Other 39.1 31.7 290.4 258.8 Valuation allowance (79.6 ) (69.7 ) Total deferred tax assets 210.8 189.1 Deferred Tax Liabilities: Tax-deductible goodwill (24.6 ) (23.3 ) Property, plant and equipment (25.1 ) (15.5 ) Unremitted earnings of foreign subsidiaries (20.2 ) (27.9 ) Other (28.6 ) (34.8 ) Total deferred tax liabilities (98.5 ) (101.5 ) Net deferred tax assets $ 112.3 $ 87.6 Reported As: Deferred tax assets 138.9 119.4 Deferred tax liabilities (included in other long-term liabilities) (26.6 ) (31.8 ) Net deferred tax assets $ 112.3 $ 87.6 The Company has not provided for U.S. federal income and foreign withholding taxes on $1,947.8 million of cumulative undistributed earnings of non-U.S. subsidiaries as of September 30, 2016 . Such earnings are intended to be reinvested in the non-U.S. subsidiaries for an indefinite period of time. If such earnings were not considered to be reinvested indefinitely, an additional deferred taxes liability of approximately $504.3 million would be provided. The Company has federal net operating loss carryforwards of approximately $10.7 million expiring between 2018 and 2032 . The federal net operating loss carryforwards are subject to an annual limitation of approximately $1.3 million per year. The Company has state net operating loss carryforwards of $9.1 million expiring between 2018 and 2032 . The Company has foreign net operating loss carryforwards of $333.1 million with an indefinite life. Of this amount, $31.2 million is unavailable to the Company under local loss utilization rules. The valuation allowance relates primarily to net operating losses in certain foreign jurisdictions where, based on the weight of available evidence, it is more likely than not that the tax benefit of the net operating losses will not be realized. The valuation allowance increased by $9.9 million , $2.2 million and $6.8 million in fiscal years 2016 , 2015 and 2014 , respectively. Income taxes paid were as follows: Fiscal Years (In millions) 2016 2015 2014 Federal income taxes paid, net $ 78.3 $ 57.1 $ 66.2 State, income taxes paid, net 5.0 7.2 7.3 Foreign income taxes paid, net 72.6 55.5 67.3 Total income taxes paid, net $ 155.9 $ 119.8 $ 140.8 The Company accounts for uncertainty in income taxes following a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that, based on the technical merits, the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Changes in the Company’s unrecognized tax benefits were as follows: Fiscal Years (In millions) 2016 2015 2014 Unrecognized tax benefits balance–beginning of fiscal year $ 39.5 $ 49.6 $ 37.0 Additions based on tax positions related to a prior year 0.6 — 10.7 Reductions based on tax positions related to a prior year (0.8 ) (9.9 ) (0.3 ) Additions based on tax positions related to the current year 6.6 5.7 8.2 Settlements — — (0.4 ) Reductions resulting from the expiration of the applicable statute of limitations (5.2 ) (5.9 ) (5.6 ) Unrecognized tax benefits balance–end of fiscal year $ 40.7 $ 39.5 $ 49.6 As of September 30, 2016 , the total amount of gross unrecognized tax benefits was $40.7 million . Of this amount, $35.1 million would affect the effective tax rate if recognized. The difference would be offset by changes to deferred tax assets and liabilities. The Company includes interest and penalties related to income taxes within taxes on earnings on the Consolidated Statements of Earnings. As of September 30, 2016 , the Company had accrued $8.0 million for the payment of interest and penalties related to unrecognized tax benefits. During fiscal year 2016 , a net expense of $0.8 million related to interest and penalties was included in taxes on earnings in the Consolidated Statements of Earnings. As of October 2, 2015 , the Company had accrued $7.1 million for the payment of interest and penalties related to unrecognized tax benefits. During fiscal year 2015 , a net benefit of $0.5 million related to interest and penalties was included in taxes on earnings in the Consolidated Statements of Earnings. The Company files U.S. federal, U.S. state, and foreign tax returns. The Company’s U.S. federal tax returns are generally no longer subject to tax examinations for years prior to 2013. The Company has significant operations in Switzerland. The Company’s Swiss tax returns are generally no longer subject to tax examinations for years prior to 2012. For U.S. states and other foreign tax returns, the Company is generally no longer subject to tax examinations for years prior to 2007. |
Business Combinations
Business Combinations | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS Business Combination in Fiscal Year 2016 Candela In September 2016, the Company closed the acquisition of the radiotherapy business of Candela sp. z o.o. ("Candela"), a distributor of Varian's radiotherapy equipment in Poland. The Company integrated the acquired Candela business into its Oncology Systems reporting unit to strengthen its market position in Poland. The following table presents the total purchase consideration: (In millions) Purchase Consideration Cash paid $ 13.0 Net non-cash assets transferred (1) 21.7 Escrow payable 0.5 Total purchase consideration $ 35.2 (1) Primarily comprised of accounts receivable. The following table summarizes the purchase price allocation: (In millions) Fair Value Net assumed liabilities $ (1.1 ) Finite-lived intangible assets with a weighted average useful life of 6.2 years 24.9 Goodwill 11.4 Net assets acquired $ 35.2 Business Combinations in Fiscal Year 2015 In September 2015, the Company purchased certain assets comprising a business from a sole proprietor for treatment planning software tools that will enhance both planning efficiency and treatment plan quality and allow oncologists to quickly adjust their intended dose distributions ahead of the treatment planning process. Through the acquisition, the Company also entered into a consulting agreement with the sole proprietor. The acquired assets were integrated into the Company's Oncology Systems reporting unit. The Company paid a total of $27.0 million in cash for all of the assets. The following table summarizes the purchase price allocation: (In millions) Fair Value Finite-lived intangible assets with a weighted average useful life of 8.3 years $ 8.3 Indefinite-lived intangible assets — IPR&D 8.8 Goodwill 9.9 Net assets acquired $ 27.0 Claymount In August 2015, the Company acquired Claymount Investments B.V. (“Claymount”), a Netherlands-based supplier of components and subsystems for X-ray imaging equipment manufacturers. The Company integrated Claymount into its X-ray imaging tubes and flat panel products reporting unit to enhance its ability to support a continuing industry-wide transition from analog to digital X-ray imaging. Total purchase price of the acquisition of $58.0 million was paid in cash. The following table summarizes the purchase price allocation: (In millions) Fair Value Net tangible assets (1) $ 11.3 Finite-lived intangible assets with a weighted average useful life of 6.0 years 16.2 Goodwill 30.5 Net assets acquired $ 58.0 (1) Includes $1.9 million in cash and cash equivalents. MeVis In April 2015, the Company completed the acquisition of 73.5% of the then outstanding shares of MeVis, a public company based in Bremen, Germany that provides image processing software and services for cancer screening, using $25.5 million in cash. The acquisition of MeVis was integrated into the Company's X-ray tubes and flat panel products reporting unit. The following table summarizes the purchase price allocation: (In millions) Fair Value Net tangible assets (1) $ 21.7 Finite-lived intangible assets with a weighted average useful life of 5.4 years 5.8 Goodwill 8.2 Fair value of net assets 35.7 Less: Noncontrolling interests (2) 10.2 Net assets acquired $ 25.5 (1) Includes $13.9 million cash and cash equivalents. (2) Fair value was determined using the market price of the shares of MeVis as of the acquisition date. Business Combinations in Fiscal Year 2014 Transpire In July 2014, the Company closed the acquisition of certain assets and liabilities of Transpire, Inc. (“Transpire”), a privately-held developer of software solutions for accurately and rapidly predicting the macroscopic behavior of radiation. The Company’s Oncology Systems reporting unit integrated Transpire’s dose calculation software to improve its image guidance tools and deliver high-precision radiotherapy for the treatment of cancer. The Company’s Security and inspection products reporting unit is using certain other Transpire software to provide comprehensive solutions for customers that integrate the Company’s high-energy X-ray technology into systems for cargo screening, industrial inspection and non-destructive testing. The acquisition was accounted for as a business combination. Total purchase price of the acquisition of $19.3 million consisted of $16.0 million in cash and $3.3 million of earn-out consideration measured at fair value. The following table summarizes the purchase price allocation: (In millions) Fair Value Net assumed liabilities $ (0.1 ) Finite-lived intangible assets with a weighted average useful life of 6.1 years (1) 8.7 Indefinite-lived intangible assets — IPR&D 2.0 Goodwill (2) 8.7 Net assets acquired $ 19.3 (1) $6.0 million was allocated to the Company’s Oncology Systems reporting unit and $2.7 million to the Company’s Security and inspection products reporting unit. (2) $5.9 million was allocated to the Company's Oncology Systems reporting unit and $2.8 million to the Company's Security and inspection products reporting unit. Velocity In April 2014, the Company closed the acquisition of certain assets of Velocity Medical Solutions LLC (“Velocity”), a privately-held Atlanta-based developer of specialized software for cancer clinics. The Velocity software aggregates unstructured treatment and imaging data from diverse systems to give a more comprehensive view of a patient's diagnostic imaging and treatment history and help clinicians make more informed treatment decisions. The acquired assets of Velocity were integrated into the Company’s Oncology Systems reporting unit. The total purchase price of the acquisition of $19.9 million consisted of $17.0 million in cash (of which $2.6 million was held back) and $2.9 million of earn-out consideration measured at fair value. The following table summarizes the purchase price allocation: (In millions) Fair Value Net assumed liabilities $ (0.5 ) Finite-lived intangible assets with a weighted average useful life of 6.1 years 10.6 Goodwill 9.8 Net assets acquired $ 19.9 Other information All acquisitions listed above were accounted for as business combinations. Total transaction costs related to the Company’s acquisitions incurred during fiscal years 2016 , 2015 and 2014 were $3.1 million , $3.3 million , and $0.7 million respectively. These transaction costs were expensed as incurred in selling, general and administrative expenses in the Consolidated Statements of Earnings. The Company’s purchase price allocation for its acquisition completed during fiscal year 2016 is preliminary and subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information, which existed as of the acquisition date but at that time was unknown to the Company, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Adjustments in the purchase price allocation will be recognized in the reporting period in which these adjustments are identified. The goodwill generated from the Company’s acquisitions completed is primarily attributable to expected synergies. The goodwill is deductible for income tax purposes for all acquisitions except Candela, MeVis and Claymount. The Consolidated Financial Statements include the operating results of each acquisition from the date of acquisition. Pro forma results of operations for the acquisitions completed during the fiscal years presented have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Company’s financial results. |
VPT Loans
VPT Loans | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
VPT Loans | VPT LOANS The following table lists the Company's outstanding loans and commitments for funding development and construction of various proton therapy centers: September 30, 2016 October 2, 2015 (In millions) Balance Commitment Balance Commitment Long-term notes receivable (1) : NYPC loan $ 18.5 $ — $ 18.7 $ 72.8 MPTC loans (2) 40.7 11.4 12.2 22.8 $ 59.2 $ 11.4 $ 30.9 $ 95.6 Available-for-sale Securities (3) : CPTC loans $ 95.3 $ 1.1 $ 83.9 — $ 95.3 $ 1.1 $ 83.9 $ — (1) Included in other assets on the Company's Consolidated Balance Sheets. (2) Increase in balance includes a $17.1 million conversion from long-term unbilled accounts receivable to long-term notes receivable. (3) Included in short-term investment at September 30, 2016, and in other assets as of October 2, 2015 on the Company's Consolidated Balance Sheets. New York Proton Center ("NYPC") Loan In July 2015, the Company, through one of its subsidiaries, committed to loan up to $91.5 million to MM Proton I, LLC in connection with a purchase agreement to supply a proton system to equip the NYPC. The commitment includes a $73.0 million “Senior First Lien Loan” with a six -year term at 9% interest and an $18.5 million “Subordinate Loan” with a six-and-a-half-year term at up to 13.5% interest. The Company's entire commitment of the Subordinate Loan was drawn down in fiscal year 2015. In June 2016, the Company assigned to Deutsche Bank AG ("Deutsche Bank") its entire $73.0 million Senior First Lien Loan commitment. As of the date of the assignments, $10.5 million in aggregate principal amount of Senior First Lien Loan commitments had been funded by the Company. The total consideration paid by Deutsche Bank to the Company in consideration for the assignment was approximately $8.3 million in cash, representing the funded portion, less a discount of 3% of the Company's total Senior First Lien Loan commitment, both funded and unfunded. The Company recorded a $2.2 million impairment associated with the sale of the loan in selling, general and administrative in the Consolidated Statements of Earnings in fiscal year 2016. In addition to the outstanding loan, the Company had $17.4 million , as of September 30, 2016 , in accounts receivable, which includes unbilled accounts receivable, from NYPC. As of October 2, 2015, the Company did not have any accounts receivable from NYPC. Maryland Proton Therapy Center ("MPTC") Loans In May 2015, the Company, through one of its subsidiaries, committed to loan up to $35.0 million to MPTC. A total of $12.2 million (consisting of $10.0 million principal amount and $2.2 million in accrued interest) of a previously existing loan was rolled over into the loan commitment. The Company had previously entered into an agreement with MPTC to supply it with a proton system. Varian loaned MPTC $11.4 million in September 2016, and in October 2016 loaned the remaining $11.4 million of its commitment. Varian's lending is in the form of a subordinated loan that is due, with accrued interest, in three annual payments from 2020 to 2022. The interest on the loan accrues at 12% . During fiscal year 2016, the Company converted $17.1 million in deferred payment arrangements, previously recorded as long-term unbilled accounts receivable, with MPTC to a long-term note receivable due September 30, 2018. The note receivable carries an interest rate of 15% . In addition to the outstanding loan, the Company had recorded $9.2 million and $28.6 million as of September 30, 2016 and October 2, 2015 , respectively, in accounts receivable from MPTC, which included unbilled accounts receivable. CPTC Loans In September 2011, ORIX and the Company, through its Swiss subsidiary, committed to loan up to $165.3 million (“Tranche A loan”) to CPTC to fund the development, construction and initial operations of the Scripps Proton Therapy Center in San Diego, California. ORIX is the loan agent for this facility and, along with CPTC and Scripps, has budgetary approval authority for the Scripps Proton Therapy Center. The Company’s maximum loan commitment under the Tranche A loan was $115.3 million . In June 2014, the Company, through its Swiss subsidiary, entered into a series of agreements, 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. Through these agreements, the Company’s Swiss subsidiary also increased its individual loan commitment by $10.0 million (“Tranche B loan”). 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. In November 2015, ORIX, J.P. Morgan and the Company (collectively the “Lenders”) and CPTC entered into a forbearance agreement whereby the lenders will not enforce their rights to principal and interest payments until April 2017, subject to CPTC maintaining certain covenants and achieving certain targets, with additional extensions through September 2017 based on hitting additional targets largely around patient volume and cash flow. In connection with the forbearance agreement the Lenders agreed to make available up to an additional $9.7 million of loan proceeds (based on their pro-rata share of the existing loan) with terms similar to the Tranche A loan for additional working capital needs; the Company's proportionate share of this commitment is $4.4 million ("Tranche C loan"). There were no other significant changes to the loan agreements. As of September 30, 2016, even though patient volumes continued to increase, CPTC was not in compliance with one of the patient volume covenants in the forbearance agreement, which would allow the Lenders to cease funding under the Tranche C loan and terminate the forbearance agreement. The Tranche A, Tranche B, and Tranche C loans are collectively, referred to as the “CPTC Loans.” As of September 30, 2016 , the Company had loaned $80.5 million under the Tranche A loan, $11.4 million under the Tranche B loan, and $ 3.4 million under the Tranche C loan. No amounts were available for draw down under the Tranche A and Tranche B loans. As of September 30, 2016 , the Company's remaining commitment under the Tranche C loan is expected to be drawn down over the next 12 months, subject to approval by the lenders due to CPTC's non-compliance with one of the covenants under the forbearance agreement. As of October 2, 2015 , the Company had loaned $73.5 million under the Tranche A loan and $10.4 million under the Tranche B loan. The amounts loaned under the CPTC Loans include accrued interest. During the fourth quarter of fiscal year 2016, the Company reclassified the CPTC Loans from other assets to short-term investments on the Company's Consolidated Balance Sheet as the loans are due in the next fiscal year. The amounts loaned under the CPTC Loans include accrued interest. ORIX has the option to purchase the Company's share of the CPTC loans at par. The CPTC Loans meet the definition of a debt security and therefore are accounted for as available-for-sale securities and recorded at fair value as of September 30, 2016 and October 2, 2015 . The CPTC Loans are collateralized by all of the assets of the Scripps Proton Therapy Center. 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 become due and payable. To date, no amortizing principal payments have been made. The principal and interest payments are subject to the forbearance agreement mentioned above. As of September 30, 2016 and October 2, 2015 , the Company had recorded $32.6 million and $25.2 million in accounts receivable from CPTC, respectively, which included unbilled accounts receivable. The Company has determined that MM Proton I, LLC, MPTC and CPTC are variable interest entities and that the Company holds a significant variable interest of each of the entities through its participation in the loan facilities and its agreements to supply and service the proton therapy equipment. The Company has concluded that it is not the primary beneficiary of any of these entities. The Company has no voting rights, has no approval authority or veto rights for these centers' budget, and does not have the power to direct patient recruitment, clinical operations and management of these Centers, which the Company believes are the matters that most significantly affect their economic performance. The Company’s exposure to loss as a result of its involvement with MM Proton I, LLC, MPTC and CPTC is limited to the carrying amounts of the above mentioned assets on its Consolidated Balance Sheets. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company’s operations are grouped into two reportable operating segments: Oncology Systems and Imaging Components. The Company’s GTC and VPT business are reflected in the “Other” category because these operating segments do not meet the criteria of a reportable operating segment. The operating segments were determined based on how the Company’s Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), views and evaluates the Company’s operations. The CODM allocates resources to and evaluates the financial performance of each operating segment primarily based on operating earnings. Description of Segments The Oncology Systems segment designs, manufactures, sells and services hardware and software products for treating cancer with conventional radiation therapy, and advanced treatments such as fixed field intensity-modulated radiation therapy(“IMRT”), image-guided radiation therapy (“IGRT”), VMAT, stereotactic radiosurgery (“SRS”), stereotactic body radiotherapy(“SBRT”) 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 IMRT, IGRT, VMAT, SRS and SBRT, 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, computer-aided diagnostics and industrial applications. The Company provides a broad range of X-ray imaging components including X-ray tubes, flat panel digital image detectors, high voltage connectors, image processing software and workstations, computer-aided diagnostic software, collimators and automatic exposure control devices. The Company’s X-ray imaging components are sold to imaging system OEM customers that incorporate them into their medical diagnostic, dental, veterinary and industrial imaging systems, to independent service companies and directly to end-users for replacement purposes. The Imaging Components segment also designs, manufactures, sells and services security and inspection products, which include 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. The Company’s GTC and VPT business are reported together under the “Other” category. The VPT business develops, designs, manufactures, sells and services products and systems for delivering proton therapy, a form of external beam radiotherapy using proton beams for the treatment of cancer. GTC develops technologies that enhance the Company’s current businesses or may lead to new business areas, including technology to improve radiation therapy and X-ray imaging, as well as other technology for a variety of applications. Subsequent to fiscal year 2016, GTC was absorbed into primarily the Company's Oncology Systems and Imaging Components businesses and is no longer a separate business. Accordingly, the following information is provided for purposes of achieving an understanding of operations, but may not be indicative of the financial results of the reported segments were they independent organizations. In addition, comparisons of the Company’s operations to similar operations of other companies may not be meaningful. Segment Data Revenues Operating Earnings (1) Fiscal Years Fiscal Years (In millions) 2016 2015 2014 2016 2015 2014 Oncology Systems $ 2,457.1 $ 2,344.0 $ 2,344.2 $ 550.5 $ 485.4 $ 495.5 Imaging Components 597.6 611.2 660.2 110.7 131.3 169.9 Total reportable segments 3,054.7 2,955.2 3,004.4 661.2 616.7 665.4 Other 163.1 143.9 45.4 (48.9 ) (31.2 ) (52.7 ) Corporate — — — (61.5 ) (36.5 ) (41.5 ) Total Company $ 3,217.8 $ 3,099.1 $ 3,049.8 $ 550.8 $ 549.0 $ 571.2 (1) Operating earnings of reportable segments and Other include an allocation of corporate expenses based on a percentage of their sales . Depreciation & Amortization Total Assets Fiscal Years Fiscal Years (In millions) 2016 2015 2014 2016 2015 2014 Oncology Systems $ 33.8 $ 27.2 $ 24.8 $ 1,491.2 $ 1,412.5 $ 1,314.1 Imaging Components 19.0 15.7 14.7 587.9 555.4 431.6 Total reportable segments 52.8 42.9 39.5 2,079.1 1,967.9 1,745.7 Other 7.4 4.9 1.0 369.9 296.2 278.6 Corporate 19.6 20.7 22.0 1,367.0 1,314.6 1,314.4 Total Company $ 79.8 $ 68.5 $ 62.5 $ 3,816.0 $ 3,578.7 $ 3,338.7 The reconciliation of segment operating earnings to the Company’s earnings before taxes was as follows: Fiscal Years 2016 2015 2014 Oncology Systems $ 550.5 $ 485.4 $ 495.5 Imaging Components 110.7 131.3 169.9 Total reportable segments 661.2 616.7 665.4 Other (48.9 ) (31.2 ) (52.7 ) Corporate (61.5 ) (36.5 ) (41.5 ) Interest income, net 5.6 5.7 3.3 Total earnings before taxes $ 556.4 $ 554.7 $ 574.5 Geographic Information Revenues Property, plant and equipment, net Fiscal Years Fiscal Years (In millions) 2016 2015 2014 2016 2015 2014 United States $ 1,352.8 $ 1,418.3 $ 1,290.1 $ 286.7 $ 292.6 $ 262.7 International 1,865.0 1,680.8 1,759.7 92.5 86.6 75.3 Total Company $ 3,217.8 $ 3,099.1 $ 3,049.8 $ 379.2 $ 379.2 $ 338.0 The Company operates various manufacturing and marketing operations outside the United States. Allocation between domestic and foreign revenues is based on the final destination of products sold. Japan represented approximately 11% , 11% , and 13% of the Company’s total revenues in fiscal years 2016 , 2015 and 2014 , respectively. Intercompany and intracompany profits are eliminated in consolidation. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | QUARTERLY FINANCIAL DATA (UNAUDITED) Fiscal Year 2016 (In millions, except per share amounts) First Second Third (1) Fourth (2) Total Year Total revenues $ 757.1 $ 758.8 $ 789.4 $ 912.5 $ 3,217.8 Gross margin $ 309.7 $ 317.2 $ 346.4 $ 388.0 $ 1,361.3 Net earnings attributable to Varian $ 89.0 $ 97.0 $ 98.8 $ 117.5 $ 402.3 Net earnings per share – basic $ 0.92 $ 1.01 $ 1.04 $ 1.25 $ 4.22 Net earnings per share – diluted $ 0.91 $ 1.01 $ 1.04 $ 1.24 $ 4.19 Fiscal Year 2015 (In millions, except per share amounts) First Quarter Second Third Fourth Quarter Total Year Total revenues $ 737.9 $ 759.4 $ 784.0 $ 817.8 $ 3,099.1 Gross margin $ 327.0 $ 322.5 $ 315.0 $ 318.2 $ 1,282.7 Net earnings attributable to Varian $ 93.3 $ 106.0 $ 113.5 $ 98.7 $ 411.5 Net earnings per share – basic $ 0.93 $ 1.06 $ 1.14 $ 1.00 $ 4.13 Net earnings per share – diluted $ 0.92 $ 1.05 $ 1.13 $ 0.99 $ 4.09 (1) In the third quarter of fiscal year 2016, net earnings attributable to Varian include $5.4 million in costs relating to the separation of Imaging Components business. (2) In the fourth quarter of fiscal year 2016, net earnings attributable to Varian include $11.5 million in costs relating to the separation of Imaging Components business. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS Fiscal Year Description Balance at Beginning of Period Charged to Bad Debt Expense Write-offs Adjustments Charged to Allowance Balance at End of Period (In millions) 2016 Allowance for doubtful accounts receivable $ 21.2 $ 3.5 $ (0.3 ) $ 24.4 2015 Allowance for doubtful accounts receivable $ 20.3 $ 1.1 $ (0.2 ) $ 21.2 2014 Allowance for doubtful accounts receivable $ 14.7 $ 7.2 $ (1.6 ) $ 20.3 Fiscal Year Description Balance at Beginning of Period Increases Deductions Balance at End of Period (In millions) 2016 Valuation allowance for deferred tax assets $ 69.7 $ 12.2 $ (2.3 ) $ 79.6 2015 Valuation allowance for deferred tax assets $ 67.5 $ 4.7 $ (2.5 ) $ 69.7 2014 Valuation allowance for deferred tax assets $ 60.7 $ 8.3 $ (1.5 ) $ 67.5 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). |
Reclassifications | Reclassifications In the third quarter of fiscal year 2016, the Company began presenting all deferred tax assets and liabilities as noncurrent on its Consolidated Balance Sheets and adjusted prior year amounts as discussed further in " Accounting Pronouncements Recently Adopted " below. In addition, certain other reclassifications have been made to the amounts for prior years in order to conform to the current year’s presentation. |
Fiscal Year | Fiscal Year The fiscal years of the Company as reported are the 52- or 53-week periods ending on the Friday nearest September 30. Fiscal year 2016 was the 52-week period that ended on September 30, 2016 . Fiscal year 2015 was the 53-week period that ended on October 2, 2015 and fiscal year 2014 was the 52-week period that ended on September 26, 2014 . |
Distribution | Distribution On April 2, 1999, Varian Associates, Inc. reorganized into three separate publicly traded companies by spinning off, through a tax-free distribution, two of its businesses to stockholders (the “Spin-offs”). The Spin-offs resulted in the following three companies: 1) the Company (renamed from Varian Associates, Inc. to Varian Medical Systems, Inc. following the Spin-offs); 2) Varian, Inc. (“VI”), which became a wholly owned subsidiary of Agilent Technologies Inc. in May 2010; and 3) Varian Semiconductor Equipment Associates, Inc. (“VSEA”), which became a wholly owned subsidiary of Applied Materials, Inc. in November 2011. The Spin-offs resulted in a non-cash dividend to stockholders. In connection with the Spin-offs, the Company, VI and VSEA also entered into various agreements that set forth the principles to be applied in separating the companies and allocating certain related costs and specified portions of contingent liabilities. See Note 9, "Commitments and Contingencies" for additional information. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include those of VMS and its wholly-owned and majority-owned or controlled subsidiaries. Intercompany balances, transactions and stock holdings have been eliminated in consolidation. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities For entities in which the Company has variable interests, the Company focuses on identifying which entity has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. If the Company is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in the Company’s Consolidated Financial Statements. For fiscal years 2016 , 2015 and 2014 , the Company did not consolidate any variable interest entities because the Company was not the primary beneficiary. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Foreign Currency Translation | Foreign Currency Translation The Company uses the U.S. dollar predominately as the functional currency of its foreign subsidiaries. For foreign subsidiaries where the U.S. dollar is the functional currency, gains and losses from remeasurement of foreign currency balances into U.S. dollars are included in the Consolidated Statements of Earnings. The aggregate net gains (losses) resulting from foreign currency transactions and remeasurement of foreign currency balances into U.S. dollars that were included in the Consolidated Statements of Earnings were $1.6 million , $(2.0) million and $(0.5) million in fiscal years 2016 , 2015 and 2014 , respectively. For the foreign subsidiary where the local currency is the functional currency, translation adjustments of foreign currency financial statements into U.S. dollars are recorded to a separate component of accumulated other comprehensive income (loss). See Note 8, "Derivative Instruments and Hedging Activities" regarding the Company’s hedging activities and derivative instruments. Also see Note 3, "Fair Value" regarding valuation of the Company’s derivative instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. |
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. See Note 3, "Fair Value" for additional discussions. |
Available-for-sale investments | Available-For-Sale Investments and Notes Receivable The Company has investments in securities that are classified as available-for-sale investments, and which are reflected on the Consolidated Balance Sheets at fair value. Unrealized gains and losses on these investments are included as a separate component of accumulated other comprehensive loss, net of tax, on the Consolidated Balance Sheets. The Company classifies its available-for-sale securities as short-term or long-term based on the nature of the investment, its maturity date and its availability for use in current operations. The Company monitors its available-for-sale securities for possible other-than-temporary impairment when business events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company did not record any impairment of its available-for-sale investments for fiscal years 2016 , 2015 and 2014 . |
Notes receivable | The Company advances notes to third parties, including its customers. The Company regularly assesses these notes for collectability by considering internal factors such as historical experience, credit quality, age of the note balances as well as external factors such as economic conditions that may affect the note holder's ability to pay. |
Investments in Privately-Held Companies | Investments in Privately-Held Companies Equity investments in privately-held companies in which the Company holds at least a 20% ownership interest or in which the Company has the ability to exercise significant influence are accounted for under the equity method of accounting. Equity investments in privately-held companies in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are accounted for under the cost method of accounting. The Company’s equity investments in privately-held companies are included in other assets on the Consolidated Balance Sheets. See Note 2, “Balance Sheet Components”. The Company monitors these equity investments for impairment and makes appropriate reductions in carrying values if the Company determines that impairment charges are required based primarily on the financial condition and near-term prospects of these companies. The carrying value of equity investments in privately-held companies accounted for under the equity method of accounting was $49.3 million and $49.7 million for the fiscal years ended September 30, 2016 and October 2, 2015 , respectively. The Company did not have any impairment loss on equity investments in privately-held companies accounted for under the equity method of accounting for fiscal years 2016 , 2015 and 2014 . Additionally, the Company has an investment in Augmenix, Inc. (“Augmenix”), a privately-held company, which is accounted for under the cost-method. During fiscal year 2014, the Company recognized a $7.7 million charge relating to the impairment of a portion of the investment in Augmenix. Equity investments accounted for under the cost-method, including Augmenix, totaled $18.7 million and $15.0 million for the fiscal years ended September 30, 2016 and October 2, 2015 , respectively. |
Concentration Of Credit Risk | Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents, available-for-sale investments, trade accounts receivable, notes receivable, and derivative financial instruments used in hedging activities. Cash and cash equivalents held with financial institutions may exceed the Federal Deposit Insurance Corporation insurance limits or similar limits in foreign jurisdictions. The Company has not experienced any losses on its deposits of cash and cash equivalents. With respect to its available-for-sale investments and notes receivable, the Company performs a periodic credit evaluation of various counterparties. In addition, the Company will be exposed to credit loss in the event of nonperformance by counterparties on the foreign currency forward contracts used in hedging activities. The Company transacts its foreign currency forward contracts with several large international and regional financial institutions and, therefore, does not consider the risk of nonperformance to be concentrated in any specific counterparty. The Company has not experienced any losses resulting from the failure of counterparty to meet its financial obligations under foreign currency forward contracts. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers comprising the Company’s customer base and their geographic dispersion. The Company performs ongoing credit evaluations of its customers and, except for government tenders, group purchases and orders with a letter of credit, often requires its Oncology Systems, security and inspection products and Varian Particle Therapy (“VPT”) customers to provide a down payment. The Company maintains an allowance for doubtful accounts based upon the expected collectability of all accounts receivable. No single customer represented more than 10% of the accounts receivable amount for any period presented. |
Inventories | Inventories Inventories are valued at the lower of cost or market (realizable value). Excess and obsolete inventories are determined primarily based on future demand forecasts and write-downs of excess and obsolete inventories are recorded as a component of cost of revenues. Cost is computed using standard cost (which approximates actual cost) or actual cost on a first-in-first-out or average basis. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Costs incurred for internal use software during the application development stage are capitalized in accordance with guidance on internal-use software. Internally developed software primarily includes enterprise-level business software that the Company customizes to meet its specific operational needs. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Land is not subject to depreciation, but land improvements are depreciated over fifteen years. Land leasehold rights and leasehold improvements are amortized over the lesser of their estimated useful lives or remaining lease terms. Buildings are depreciated over twenty or thirty years. Machinery and equipment are depreciated over their estimated useful lives, which range from three to seven years. Assets subject to lease are amortized over the lesser of their estimated useful lives or remaining lease terms. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are removed from the accounts. Gains or losses resulting from retirements or disposals of property, plant and equipment are included in operating expenses. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. Purchased intangible assets are carried at cost, net of accumulated amortization. Intangible assets with finite lives are amortized primarily using the straight-line method over their estimated useful lives which generally range from two to ten years. In-process research and development (“IPR&D”) is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable purchased intangible asset and amortized over the asset’s estimated useful life. |
Impairment of Long-Lived Assets, Goodwill and Intangible Assets | Impairment of Long-lived Assets, Goodwill and Intangible Assets The Company reviews long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company assesses these assets for impairment based on their estimated undiscounted future cash flows. If the carrying value of the assets exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any impairment charges for long-lived assets and identifiable intangible assets in fiscal years 2016 , 2015 and 2014 . The Company evaluates goodwill for impairment at least annually or whenever an event occurs or circumstances changes that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If the Company determines that a quantitative analysis is necessary, the impairment test for goodwill is a two-step process. Step one consists of a comparison of the fair value of a reporting unit against its carrying amount, including the goodwill allocated to each reporting unit. The Company determines the fair value of its reporting units based on a combination of income and market approaches. The income approach is based on the present value of estimated future cash flows of the reporting units and the market approach is based on a market multiple calculated for each business unit based on market data of other companies engaged in similar business. If the carrying amount of the reporting unit is in excess of its fair value, step two requires the comparison of the implied fair value of the reporting unit’s goodwill against the carrying amount of the reporting unit’s goodwill. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as an impairment loss. In fiscal years 2016 , 2015 and 2014 , the Company performed the annual goodwill impairment testing for the four reporting units that carried goodwill namely (i) Oncology Systems, (ii) X-ray tubes and flat panel products, (iii) Security and inspection products, and (iv) VPT, and found no impairment. Based upon the most recent annual goodwill analysis performed by the Company during the fourth quarter of fiscal year 2016, for Oncology Systems, X-ray tubes and flat panel products, and Security and inspection products reporting units, step one of the impairment test was not completed based on evaluation of qualitative factors, and for the VPT reporting unit for which step one was completed, the fair value was substantially in excess of carrying value. |
Loss Contingencies | Loss Contingencies From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that it believes will result in a probable loss. Environmental remediation liabilities are recorded when environmental assessments and/or remediation efforts are probable, and the costs of these assessments or remediation efforts can be reasonably estimated. |
Product Warranty | Product Warranty The Company warrants most of its products for a specific period of time, usually 12 months from installation, against material defects. The Company provides for the estimated future costs of warranty obligations in cost of revenues when the related revenues are recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that the Company will incur to repair or replace product parts that fail while still under warranty. The amount of the accrued estimated warranty costs obligation for established products is primarily based on historical experience as to product failures adjusted for current information on repair costs. For new products, estimates include the historical experience of similar products, as well as reasonable allowance for warranty expenses associated with new products. On a quarterly basis, the Company reviews the accrued warranty costs and updates the historical warranty cost trends, if required. |
Revenue Recognition | Service Service revenues include revenues from hardware and software service contracts, bundled support arrangements, paid services and trainings, and parts that are sold by the service department. Revenues allocated to service contracts are generally recognized ratably over the period of the related contracts. For proton therapy systems service contracts, revenues subject to certain penalty provisions are deferred until reliable estimates can be made or the related penalty provisions lapse. Revenues related to services performed on a time-and-materials basis are recognized when they are earned and billable. Revenue Recognition The Company’s revenues are derived primarily from the sale of hardware and software products, and services from the Company’s Oncology Systems, Imaging Components and VPT businesses. The Company recognizes its revenues net of any value added or sales tax and net of sales discounts. Many of the Company’s revenue arrangements consist of multiple deliverables of its software and non-software products, as well as related services. In Oncology Systems, the linear accelerators are often sold with hardware and software accessory products that enhance efficiency and enable delivery of advanced radiotherapy and radiosurgery treatments. Many of the Oncology Systems hardware and software accessory products are occasionally sold on a stand-alone basis. As discussed below, the majority of the Oncology Systems products are sold with installation obligations. Delivery of different elements in a revenue arrangement often span more than one reporting period. For example, a linear accelerator may be delivered in a reporting period but the related installation is completed in a later period. The Imaging Components business generally sells its X-ray components (including X-ray tubes, flat panel detectors and image processing tools and security and inspection products) on a stand-alone basis. However, the Imaging Components business occasionally sells its flat panel detectors, X-ray tubes and imaging processing tools as a package that is optimized for digital X-ray imaging and sells its Linatron ® X-ray accelerators together with its imaging processing software and image detection products to original equipment manufacturer (“OEM”) customers that incorporate them into their inspection systems. Service contracts are often sold with Oncology Systems products, as well as with certain security and inspection products within the Imaging Components business. Revenues related to service contracts usually starts after the expiration of the warranty period for non-software products or upon acceptance for software products. The Company recognizes contract revenues under the percentage-of-completion method for equipment sold by VPT. See “Contracts for Customized Equipment” below for more details. For a multiple element arrangement that includes software and non-software deliverables which includes service contracts, the Company first allocates revenues among the software and non-software deliverables on a relative selling price basis. The amounts allocated to the non-software products and software are accounted for as follows: Non-software Products Non-software products include hardware products, software components that function together with the hardware components to deliver the product’s essential functionality, as well as service contracts. Except as described below under “Service,” the Company recognizes revenues for non-software products when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. For multiple element revenue arrangements that involve non-software products, a delivered non-software element is considered as a separate unit of accounting when it has stand-alone value and there is no customer-negotiated refund or return rights for the delivered element. The allocation of revenue to all deliverables based on their relative selling prices is determined at the inception of the arrangement. The selling price for each deliverable is determined using vendor-specific objective evidence (“VSOE”) of selling price, if it exists; otherwise, third-party evidence of selling price (“TPE”). If neither VSOE nor TPE of selling price exists for a deliverable the Company uses the deliverable’s estimated selling prices (“ESP”). The Company’s non-software products have stand-alone value because they are sold separately. Product installation, which is a standard process and does not involve changes to the features or capabilities of the Company’s products, is considered as a separate unit of accounting. Installation of Oncology Systems non-software products involves the Company’s testing of each product at its factory prior to the product’s delivery to ensure that the product meets the Company’s published specifications. Once these tests establish that the specifications have been met, the product is then disassembled and shipped to the customer’s site as specified in the customer contract. Risk of loss is transferred to the customer typically at the time of shipment or delivery, depending upon the terms of the contract. At the customer’s site, the product is reassembled, installed and retested in accordance with the Company’s installation procedures to ensure and demonstrate compliance with the Company’s published specifications for that product. Under the terms of the Company’s standard non-software sales contracts, “acceptance” of a non-software product with installation obligations is deemed to have occurred upon the earliest of (i) completion of product installation and testing in accordance with the Company’s standard installation procedures showing compliance with the Company’s published specifications for that product, (ii) receipt by the Company of an acceptance form executed by the customer acknowledging installation and compliance with the Company’s published specifications for that product, (iii) use by the customer of the product for any purpose after its delivery or (iv) six months after the delivery of the product to the customer by the Company. The contracts allow for cancellation only by mutual agreement, thus the customer does not have a unilateral right to return the delivered non-software product. The Company establishes VSOE of selling price based on the price charged for a deliverable when sold separately. Occasionally for a deliverable not yet being sold separately, the Company may initially establish VSOE by management having the relevant authority. As discussed above, many products are occasionally sold in stand-alone arrangements and accordingly may have VSOE of selling price. Service contracts are sold separately through either original sale or subsequent renewal of annual contracts. The Company establishes TPE generally by evaluating the Company’s and competitors’ largely interchangeable competing products or services in stand-alone sales to similarly situated customers. The TPE for product installation is determined based on the estimated labor hours and the prevailing hourly rate charged for similar services, as well as the prices charged by outside vendors for installation of the Company’s products. For certain products for which the Company is not able to establish VSOE or TPE of selling prices, ESPs are used as the basis of their selling prices. The Company estimates selling prices following an established process that considers market conditions, including the product offerings and pricing strategies of competitors, as well as internal factors such as historical pricing practices and margin objectives. The establishment of product and service ESPs is controlled and reviewed by the appropriate level of management in all of the Company’s businesses. The Company limits the amount of revenue recognized for delivered items to the amount that is not contingent upon the delivery of additional products or services. For Oncology Systems non-software products with installation obligations, the Company recognizes as revenues a portion of the product purchase price upon transfer of risk of loss and defers revenue recognition on the portion associated with product installation, provided that all other criteria for revenue recognition have been met. The portion deferred is the greater of the relative selling price of the installation services for such products or the amount of payment contractually linked to product installation services. The Company does not have installation obligations for X-ray tubes, digital image detectors, spare parts, security and inspection products, and for certain hardware Oncology Systems. For the products that do not include installation obligations, the Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the terms of the contract, provided that all other revenue recognition criteria have been met. Software Products The Company recognizes revenues for software products in accordance with the software revenue recognition guidance. The Company recognizes license revenues when all of the following criteria have been met: persuasive evidence of an arrangement exists, the vendor’s fee is fixed or determinable, collection of the related receivable is probable, delivery of the product has occurred and the Company has received from the customer an acceptance form acknowledging installation and substantial conformance with the Company’s specifications (as set forth in the user manual) for such product, or upon verification of installation when customer acceptance is not required to be received, or upon the expiration of an acceptance period, provided that all other criteria for revenue recognition have been met. Revenues earned on software arrangements involving multiple elements are allocated to each element based on VSOE of fair value, which is based on the price charged when the same element is sold separately. In instances when evidence of VSOE of fair value of all undelivered elements exists, but evidence does not exist for one or more delivered elements, revenues are recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. Revenue allocated to maintenance and support is recognized ratably over the maintenance term (typically one year). For those software products that are not sold stand-alone or for which VSOE cannot be established or maintained, all software revenue under the contract will be deferred until the software product(s) that lack VSOE are all delivered. If the only undelivered software element that lacks VSOE is maintenance and support then the software and maintenance revenue would be recognized ratably over the term of the maintenance and support arrangement. Installation of the Company’s software products may involve a certain amount of customer-specific implementation to enable the software product to function within the customer’s operating environment ( i.e. , with the customer’s information technology network and other hardware, with the customer’s data interfaces and with the customer’s administrative processes) and substantially in conformance with the Company’s specifications (as set forth in the user manual) for such product. With these software products, customers do not have full use of the software (i.e., functionality) until the software is installed as described above and functioning within the customer’s operating environment. Therefore, the Company recognizes 100% of such software revenues upon receipt from the customer of the Company’s acceptance form acknowledging installation and such substantial conformance, or upon verification of installation when the Company is not required to receive customer acceptance, or upon the expiration of an acceptance period, provided that all other criteria for revenue recognition have been met. The Company does not have installation obligations for Imaging Components and certain brachytherapy software products. For software products that do not include installation obligations, the Company recognizes revenues upon the transfer of risk of loss, which is either at the time of shipment or delivery, depending upon the shipping terms of the contract, provided that all other criteria for revenue recognition have been met. Contracts for Customized Equipment Revenues related to proton therapy systems and proton therapy system commissioning contracts are recognized in accordance with contract accounting. The Company recognizes contract revenues under the percentage-of-completion method which are based on contract costs incurred to date compared with total estimated contract costs. Changes in estimates of total contract revenue, total contract cost or the extent of progress towards completion are recognized in the period in which the changes in estimates are identified. Estimated losses on contracts are recognized in the period in which the loss is identified. In circumstances in which the final outcome of a contract cannot be precisely estimated but a loss on the contract is not expected, the Company recognizes revenues under the percentage-of-completion method based on a zero profit margin until more precise estimates can be made. If and when the Company can make more precise estimates, revenues and costs of revenues are adjusted in the same period. Contracts accounted for in accordance with contract accounting are billable upon achievement of milestones specified in the contracts or upon customer acceptance. Costs incurred and revenues recognized under the percentage-of-completion method in excess of customer billings are included in accounts receivable and other assets on the Consolidated Balance Sheets. Customer billings in excess of costs incurred and revenue recognized under the percentage-of-completion method, which typically reflect initial down payments, are included in deferred revenues on the Consolidated Balance Sheets. |
Deferred Revenue | Deferred Revenues Deferred revenues include (i) the amount billed, billable or received applicable to non-software products for which installation and/or acceptance have not been completed (ii) the amount billed, billable or received applicable to shipment of software products but for which installation and/or final acceptance have not been completed and (iii) the amount billed, billable or received for service contracts for which the services have not been rendered. Deferred costs associated with deferred revenues are included in inventories on the Consolidated Balance Sheets. Except for government tenders, group purchases and orders with letters of credit, the Company typically requires its Oncology Systems, security and inspection and VPT customers to provide a down payment prior to transfer of risk of loss of ordered products. These payments are also recorded as deferred revenues on the Consolidated Balance Sheets. |
Share-Based Compensation Expense | Share-Based Compensation Expense The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors, including stock options, employee stock purchases related to the Varian Medical Systems, Inc. Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”), deferred stock units, restricted stock, restricted stock units and performance units based on their fair values. Share-based compensation expense recognized in the Consolidated Statements of Earnings includes compensation expense for the share-based payment awards based on the grant date fair value estimated in accordance with the guidance on share-based compensation. The Company values VMS’s stock options granted and the option component of the shares of VMS common stock purchased under the Employee Stock Purchase Plan using the Black-Scholes option-pricing model, which was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Share-based compensation expense for restricted common stock, restricted stock units and deferred stock units is measured at the stock’s fair value on the date of grant and is amortized over each award’s respective service period. The Company values performance units using the Monte Carlo simulation model on the date of grant with assumptions that includes the historical volatility of shares of VMS common stock, as well as the shares of common stock of peer companies. In addition, the Company estimates the probability that certain performance conditions that affect the vesting of performance units will be achieved, and recognizes expense only for those awards expected to vest. Both the Black-Scholes option-pricing model and the Monte Carlo simulation model require the input of certain assumptions and changes in the assumptions can materially affect the fair value estimates of share-based payment awards. Share-based compensation expense recognized is based on the value of the portion of share-based payment awards that is ultimately expected to vest. The Company attributes the value of share-based compensation to expense using the straight-line method. The Company considers only the direct tax impacts of share-based compensation awards when calculating the amount of tax windfalls or shortfalls. |
Earnings Per Share | Earnings per share Basic net earnings per share is computed by dividing net earnings attributable to Varian 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 attributable to Varian by the sum of the weighted average number of common shares outstanding and dilutive common shares under the treasury stock method. The Company excludes potentially dilutive common shares (consisting of shares underlying stock options, restricted stock units, performance units and the Employee Stock Purchase Plan) from the computation of diluted weighted average shares outstanding if the per share value, either the exercise price of the awards or the sum of (a) the exercise price of the awards and (b) the amount of the compensation cost attributed to future services and not yet recognized and (c) the amount of tax benefit or shortfall that would be recorded in additional paid-in capital when the award becomes deductible, is greater than the average market price of the shares, because the inclusion of the shares underlying these stock awards would be antidilutive to earnings per share. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included as a component of cost of revenues. |
Research and Development | Research and Development Research and development costs have been expensed as incurred. These costs primarily include employees’ compensation, consulting fees, material costs and research grants. |
Software Development Costs | Software Development Costs Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No costs associated with the development of software have been capitalized as the Company believes its current software development process is essentially completed concurrent with the establishment of technological feasibility. |
Comprehensive Earnings | Comprehensive Earnings Comprehensive earnings include all changes in equity (net assets) during a period from non-owner sources. Comprehensive earnings include currency translation adjustments, change in unrealized gain or loss on derivative instruments designated as cash flow hedges, net of taxes (see Note 8, "Derivative Instruments and Hedging Activities" ), change in unrealized gain or loss on available for sale securities, net of taxes (see Note 2, "Balance Sheet Components" ), and adjustments to and amortization of unrecognized actuarial gain or loss, unrecognized transition obligation and unrecognized prior service cost of our defined benefit pension and post-retirement benefit plans (see Note 10, "Retirement Plans" ). |
Taxes on Earnings | Taxes on Earnings Taxes on earnings are based on pretax financial accounting income. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. |
Recent Accounting Pronouncements | Accounting Pronouncement Recently Adopted In November 2015, the Financial Accounting Standards Board ("FASB") issued an amendment to its accounting guidance related to balance sheet classification of deferred taxes. The amendment requires that deferred tax assets and liabilities be classified as noncurrent in the Consolidated Balance Sheets. The amendment is effective for all annual periods, and interim periods within those annual periods, beginning after December 15, 2016, with early adoption permitted. The Company adopted this amendment in the third quarter of fiscal year 2016, on a retrospective basis. To conform to the current year presentation, the Company decreased current deferred tax assets by $132.1 million and current deferred tax liabilities, which was included in accrued liabilities, by $6.3 million and increased long-term deferred tax assets by $110.0 million and decreased deferred tax liabilities, which was included in other long-term liabilities, by $15.8 million , on its Consolidated Balance Sheet as of October 2, 2015. The adoption of this amendment had no impact to the Company’s Consolidated Statements of Earnings or Statements of Cash Flows. Recent Accounting Standards or Updates Not Yet Effective In November 2016, the FASB amended its guidance on the classification and presentation of restricted cash in the statement of cash flow. The amendment requires entities to include restricted cash and restricted cash equivalents in its cash and cash equivalents in the statement of cash flow. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2019 with early adoption permitted. The amendment is required to be adopted retrospectively. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In October 2016, the FASB amended its guidance for tax accounting for intra-entity asset transfers. The amendment removes the prohibition against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2019. Early adoption is permitted. The amendment is required to be adopted on a modified retrospective basis. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In August 2016, the FASB issued an amendment to its accounting guidance related to the classification of certain cash receipts and cash payments. The amendment was issued to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2019 with early adoption permitted. The amendment is required to be adopted retrospectively unless it is impracticable. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In June 2016, the FASB issued an amendment to its accounting guidance related to impairment of financial instruments. The amendment adds a new impairment model that is based on expected losses rather than incurred losses. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2021 with early adoption permitted beginning in the first quarter of fiscal year 2020. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In March 2016, the FASB issued an amendment to its accounting guidance related to employee share-based payments. The amendment simplifies several aspects of the accounting for employee share-based payments including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2018 with early adoption permitted. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In February 2016, the FASB issued a new standard on accounting for leases. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new standard will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of earnings. The new standard is required to be adopted using a modified retrospective method to each prior reporting period presented with various optional practical expedients. The new standard will be effective for the Company beginning in its first quarter of fiscal year 2020 with early adoption permitted. The Company is evaluating the impact of adopting this new standard to its consolidated financial statements. In January 2016, the FASB issued an amendment to its accounting guidance related to recognition and measurement of financial assets and financial liabilities. The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2019. The Company is evaluating the impact of adopting this amendment to its consolidated financial statements. In September 2015, the FASB issued a new accounting standard that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new standard became effective for the Company beginning in its first quarter of fiscal year 2017. The new standard is not expected to have a material impact to the Company’s consolidated financial statements. In July 2015, the FASB issued an amendment to its accounting guidance related to inventory measurement. The amendment requires inventory measured using first-in, first-out (FIFO) or average cost to be subsequently measured at the lower of cost and net realizable value, thereby simplifying the current guidance that requires an entity to measure inventory at the lower of cost or market. The amendment will be effective for the Company beginning in its first quarter of fiscal year 2018. The amendment is not expected to have a material impact to the Company’s consolidated financial statements. In April 2015, the 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 became effective for the Company beginning in its first quarter of fiscal year 2017. The amendment is not expected to have a material impact to the Company’s 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. 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 became effective for the Company beginning in its first quarter of fiscal year 2017. 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. In August 2015, the FASB further clarified that entities are permitted to defer and present debt issuance costs related to line-of-credit arrangements as assets. These amendments are 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 became effective for the Company beginning in its first quarter of fiscal year 2017. 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 amendment became effective for the Company beginning in its first quarter of fiscal year 2017. The amendment is not expected to have a material impact to the Company's consolidated financial statements. In May 2014, the FASB issued a new revenue standard, which sets forth a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. The new standard 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. In March 2016, the FASB amended the principal-versus-agent implementation guidance and illustrations in the new standard. In April 2016, the FASB amended the guidance on identifying performance obligations and the implementation guidance on licensing in the new standard. In May 2016, the FASB amended the guidance on collectability, noncash consideration, presentation of sales tax and transition in the new standard. The new standard will be effective for the Company beginning in its first quarter of fiscal year 2019, with early adoption permitted, but not before the first quarter of fiscal year 2018. The new standard can be applied either retrospectively to each prior reporting period presented (i.e., full retrospective adoption) or with the cumulative effect of initially applying the update recognized at the date of the initial application (i.e., modified retrospective adoption) along with additional disclosures. The Company currently anticipates adopting this standard using the full retrospective method to restate each prior period presented. The Company is evaluating the timing and the impact of adopting this standard to its consolidated financial statements. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Available-for-sale Securities | The following tables summarize the Company's available-for-sale securities (in millions): September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities: CPTC loans $ 95.3 $ — $ — $ 95.3 Total available-for-sale securities $ 95.3 $ — $ — $ 95.3 October 2, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities: CPTC loans $ 83.9 $ — $ — $ 83.9 Other 8.6 0.1 (0.3 ) 8.4 Non-U.S. government security 0.7 — — 0.7 Total available-for-sale securities $ 93.2 $ 0.1 $ (0.3 ) $ 93.0 |
Components of Inventories | September 30, October 2, (In millions) 2016 2015 Inventories: Raw materials and parts $ 407.9 $ 348.3 Work-in-process 76.7 98.2 Finished goods 155.1 166.1 Total inventories $ 639.7 $ 612.6 |
Components of Property, Plant and Equipment | September 30, October 2, (In millions) 2016 2015 Property, plant and equipment: Land and land improvements $ 49.4 $ 49.1 Buildings and leasehold improvements 330.2 267.0 Machinery and equipment 490.4 437.2 Construction in progress 34.2 99.6 904.2 852.9 Accumulated depreciation and amortization (525.0 ) (473.7 ) Total property, plant and equipment, net $ 379.2 $ 379.2 |
Other Assets | September 30, October 2, (In millions) 2016 2015 Other assets: Long-term available-for-sale securities $ — $ 93.0 Long-term receivables 113.8 77.0 Investments in privately-held companies 68.0 64.7 Deferred Compensation Plan ("DCP") assets 63.4 56.6 Other 37.3 39.7 Total other assets $ 282.5 $ 331.0 |
Components of Accrued Expenses | September 30, October 2, (In millions) 2016 2015 Accrued liabilities: Accrued compensation and benefits $ 119.8 $ 101.5 DCP liabilities 63.8 57.3 Product warranty 51.1 43.9 Income taxes payable 55.1 36.4 Other 122.9 108.1 Total accrued liabilities $ 412.7 $ 347.2 |
Components of Other Long-Term Liabilities | September 30, October 2, (In millions) 2016 2015 Other long-term liabilities: Long-term income taxes payable $ 46.2 $ 44.5 Deferred income taxes 26.6 31.8 Other 87.2 61.9 Total other long-term liabilities $ 160.0 $ 138.2 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. Fair Value Measurement Using Type of Instruments Quoted Prices in Significant Other Significant Total (In millions) Assets at September 30, 2016: Available-for-sale securities: Corporate debt securities $ — $ — $ 95.3 $ 95.3 Total assets measured at fair value $ — $ — $ 95.3 $ 95.3 Liabilities at September 30, 2016: Contingent consideration $ — $ — $ (1.3 ) $ (1.3 ) Total liabilities measured at fair value $ — $ — $ (1.3 ) $ (1.3 ) Assets at October 2, 2015: Available-for-sale securities: Corporate debt securities $ — $ 8.4 $ 83.9 $ 92.3 Non-U.S. government security — 0.7 — 0.7 Total assets measured at fair value $ — $ 9.1 $ 83.9 $ 93.0 Liabilities at October 2, 2015: Contingent consideration $ — $ — $ (4.1 ) $ (4.1 ) Total liabilities measured at fair value $ — $ — $ (4.1 ) $ (4.1 ) |
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) CPTC Loans Contingent Balance at September 26, 2014 $ 75.6 $ (7.5 ) Additions (1) 8.3 — Settlements (2) — 3.3 Change in fair value recognized in earnings — 0.1 Balance at October 2, 2015 83.9 (4.1 ) Additions (1) 11.4 — Settlements (2) — 3.5 Change in fair value recognized in earnings — (0.7 ) Balance at September 30, 2016 $ 95.3 $ (1.3 ) (1) Amounts reported under CPTC loans represents draw downs and accrued interest. (2) Amounts reported under Contingent Consideration represent cash payments to settle contingent consideration liabilities. |
Reconciliation for Assets and Liabilities Measured and Recorded at Fair Value on Recurring BasisFair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | 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) CPTC Loans Contingent Balance at September 26, 2014 $ 75.6 $ (7.5 ) Additions (1) 8.3 — Settlements (2) — 3.3 Change in fair value recognized in earnings — 0.1 Balance at October 2, 2015 83.9 (4.1 ) Additions (1) 11.4 — Settlements (2) — 3.5 Change in fair value recognized in earnings — (0.7 ) Balance at September 30, 2016 $ 95.3 $ (1.3 ) (1) Amounts reported under CPTC loans represents draw downs and accrued interest. (2) Amounts reported under Contingent Consideration represent cash payments to settle contingent consideration liabilities. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Financing Receivables and Allowance for Credit Losses | The following table summarizes the Company's accounts receivable and notes receivable as of September 30, 2016 and October 2, 2015 : September 30, October 2, (In millions) 2016 2015 Accounts receivable, gross $ 970.8 $ 838.2 Allowance for doubtful accounts (24.4 ) (21.2 ) Accounts receivable, net $ 946.4 $ 817.0 Short-term $ 891.8 $ 770.9 Long-term (1) $ 54.6 $ 46.1 Notes receivable $ 65.0 $ 40.9 Short-term (2) $ 5.8 $ 10.0 Long-term (1) $ 59.2 $ 30.9 (1) Included in other assets on the Company's Consolidated Balance Sheets. (2) Included in prepaid expenses and other current assets on the Company's Consolidated Balance Sheets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Activity of Goodwill by Reportable Operating Segment | The following table reflects the activity of goodwill by reportable operating segment: (In millions) Oncology Imaging Other Total Balance at September 26, 2014 $ 148.3 $ 36.0 $ 56.3 $ 240.6 Business combinations 10.5 38.7 — 49.2 Foreign currency translation adjustments — — (6.3 ) (6.3 ) Balance at October 2, 2015 158.8 74.7 50.0 283.5 Business combinations 11.4 — — 11.4 Foreign currency translation adjustments — — (0.2 ) (0.2 ) Balance at September 30, 2016 $ 170.2 $ 74.7 $ 49.8 $ 294.7 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The following table reflects the gross carrying amount and accumulated amortization of the Company’s finite-lived intangible assets: September 30, October 2, (In millions) 2016 2015 Finite-lived intangible assets: Technologies and patents $ 122.0 $ 98.7 Customer contracts and supplier relationship 41.7 20.1 Other 12.7 8.3 Accumulated amortization (80.5 ) (65.1 ) Net carrying amount $ 95.9 $ 62.0 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt Outstanding | The following table summarizes the Company's short-term and long-term debt: September 30, 2016 October 2, 2015 (In millions, except for percentages) Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate Short-term debt: Current portion of 2013 Term Loan Facility $ 50.0 1.65 % $ 50.0 1.32 % 2013 Revolving Credit Facility 300.0 1.91 % 90.0 1.57 % Sumitomo Credit Facility 29.6 0.53 % 18.4 0.63 % Total short-term debt $ 379.6 $ 158.4 Long-term debt: 2013 Term Loan Facility $ 287.5 1.65 % $ 337.5 1.32 % Total long-term debt $ 287.5 $ 337.5 |
Schedule of Short-term Debt | The following table summarizes the Company's short-term and long-term debt: September 30, 2016 October 2, 2015 (In millions, except for percentages) Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate Short-term debt: Current portion of 2013 Term Loan Facility $ 50.0 1.65 % $ 50.0 1.32 % 2013 Revolving Credit Facility 300.0 1.91 % 90.0 1.57 % Sumitomo Credit Facility 29.6 0.53 % 18.4 0.63 % Total short-term debt $ 379.6 $ 158.4 Long-term debt: 2013 Term Loan Facility $ 287.5 1.65 % $ 337.5 1.32 % Total long-term debt $ 287.5 $ 337.5 |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 on the Consolidated Balance Sheets and in the Consolidated Statements of Earnings that are related to the effective portion of the foreign currency forward contracts designated as cash flow hedges: Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Location of Gain Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Net Earnings (Effective Portion) Fiscal Years Fiscal Years (In millions) 2016 2015 2014 2016 2015 2014 Foreign currency forward contracts $ (1.0 ) $ 2.2 $ 3.9 Revenues $ (1.0 ) $ 3.8 $ 1.3 |
Outstanding Foreign Currency Forward Contracts | The Company had the following outstanding foreign currency forward contracts: September 30, 2016 (In millions) Notional Value Sold Notional Value Purchased Australian Dollar $ 21.2 $ — Brazilian Real 7.1 — Canadian Dollar — 3.0 Euro 159.2 1.0 Indian Rupee 9.1 — Japanese yen 69.3 — Swedish Krona 4.5 — Swiss Franc — 94.0 Totals $ 270.4 $ 98.0 |
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 Company's Consolidated Statements of Earnings related to the foreign currency forward contracts that are not designated as hedging instruments. Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized Fiscal Years (In millions) 2016 2015 2014 Selling, general and administrative expenses $ (5.3 ) $ 27.6 $ 13.7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued Product Warranty | The following table reflects the changes in the Company’s accrued product warranty: Fiscal Years (In millions) 2016 2015 Accrued product warranty, at beginning of period $ 45.9 $ 49.3 Charged to cost of revenues 59.4 50.8 Actual product warranty expenditures (50.5 ) (54.2 ) Accrued product warranty, at end of period $ 54.8 $ 45.9 |
Schedule of Liabilities for Future Environmental Costs | The table that follows presents information about the Company’s liabilities for future environmental costs at September 30, 2016 , based on estimates as of that date. (In millions) Recurring Costs Non-Recurring Costs Total Anticipated Future Costs Fiscal Years: 2017 $ 0.4 $ 1.2 $ 1.6 2018 0.5 0.5 1.0 2019 0.4 0.6 1.0 2020 0.4 0.3 0.7 2021 0.5 0.7 1.2 Thereafter 2.8 1.0 3.8 Total costs $ 5.0 $ 4.3 $ 9.3 Less imputed interest 1.2 Reserve amount $ 8.1 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Schedule of Funded Status of the Defined Benefit Pension | The following table presents the funded status of the defined benefit pension plans: (In millions) September 30, 2016 October 2, 2015 Change in benefit obligation: Benefit obligation - beginning of fiscal year $ 210.3 $ 207.6 Service cost 6.1 5.7 Interest cost 4.1 4.4 Plan participants’ contributions 8.8 9.9 Plan amendments (1.2 ) (1.1 ) Plan settlements (4.0 ) (4.0 ) Plan combinations 0.7 — Actuarial loss 31.8 3.7 Foreign currency changes (8.9 ) (8.9 ) Benefit and expense payments (4.6 ) (7.0 ) Benefit obligation - end of fiscal year $ 243.1 $ 210.3 Change in plan assets: Plan assets - beginning of fiscal year $ 189.9 $ 188.6 Employer contributions 8.1 6.9 Actual return on plan assets 13.0 4.1 Plan participants’ contributions 8.8 9.9 Plan settlements (4.0 ) (4.0 ) Foreign currency changes (8.7 ) (8.6 ) Plan combinations 0.4 — Benefit and expense payments (4.6 ) (7.0 ) Plan assets - end of fiscal year $ 202.9 $ 189.9 Funded status $ (40.2 ) $ (20.4 ) Amounts recognized within the consolidated balance sheet: Other assets $ — $ 4.3 Other long-term liabilities (40.2 ) (24.7 ) Net amount recognized $ (40.2 ) $ (20.4 ) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Before Tax) | The following table presents the amounts recognized in accumulated other comprehensive loss (before tax) for the defined benefit pension plans: (In millions) September 30, 2016 October 2, 2015 Prior service credit $ 1.9 $ 0.7 Net loss (80.7 ) (58.9 ) Accumulated other comprehensive loss $ (78.8 ) $ (58.2 ) |
Schedule of Defined Benefit Pension Plan Balances with Accumulated Benefit Obligation Exceeded Fair Value of Plan Assets | The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those defined benefit pension plans where accumulated benefit obligation exceeded the fair value of plan assets: (In millions) September 30, 2016 October 2, 2015 Projected benefit obligation $ 17.8 $ 15.6 Accumulated benefit obligation $ 16.8 $ 14.2 Fair value of plan assets $ 13.0 $ 13.2 |
Schedule of Net Periodic Benefit Costs | The following table shows the components of the Company’s net periodic benefit costs and the other amounts recognized in other comprehensive loss, before tax, related to the Company’s defined benefit pension plans: Fiscal Years (In millions) 2016 2015 2014 Net Periodic Benefit Costs: Service cost $ 6.1 $ 5.7 $ 4.1 Interest cost 4.1 4.4 6.1 Loss due to settlement 1.0 1.1 1.8 Expected return on assets (6.8 ) (7.1 ) (7.8 ) Amortization of prior service cost (0.1 ) 0.1 0.2 Recognized actuarial loss 2.9 2.5 2.1 Net periodic benefit cost 7.2 6.7 6.5 Other Amounts Recognized in Other Comprehensive Loss: New prior service credit (1.2 ) (1.1 ) — Net loss arising during the year 25.6 6.7 10.3 Amortization of prior service credit (cost) 0.1 (0.1 ) (0.2 ) Amortization, settlement and curtailment of net actuarial loss (3.9 ) (3.6 ) (3.9 ) Total recognized in other comprehensive loss 20.6 1.9 6.2 Total recognized in net periodic benefit cost and other comprehensive loss $ 27.8 $ 8.6 $ 12.7 |
Schedule of Accumulated Other Comprehensive Income (Loss) Expected to be Recognized as Components of Net Periodic Benefit Cost | The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during fiscal year 2017 related to the Company’s defined benefit pension plans are as follows: (In millions) Total Prior service credit $ 0.2 Net loss (4.4 ) Total $ (4.2 ) |
Schedule of Assumptions Used to Determine Defined Benefit Pension | The assumptions used to determine net periodic benefit cost and to compute the expected long-term return on assets for the Company’s defined benefit pension plans were as follows: Fiscal Years Net Periodic Benefit Cost 2016 2015 2014 Discount rate 2.09 % 2.58 % 3.11 % Rate of compensation increase 2.42 % 2.45 % 2.51 % Expected long-term return on assets 3.69 % 3.90 % 4.21 % The assumptions used to measure the benefit obligation for the Company’s defined benefit pension plans were as follows: Benefit Obligation September 30, 2016 October 2, 2015 Discount rate 1.03 % 2.09 % Rate of compensation increase 2.33 % 2.50 % |
Schedule of Fair Values of Plan Assets | The following table presents the Company’s defined benefit pension plans’ major asset categories, their associated fair values, as well as the actual allocation of equity, debt and fixed income, real estate and all other types of investments: (In millions) Quoted Prices in Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of September 30, 2016: Investment funds: Mutual funds - equities $ — $ 52.3 $ — $ 52.3 Mutual funds - debt — 27.2 — 27.2 Mutual funds - real estate — 4.7 — 4.7 Other — 2.9 — 2.9 Assets held by insurance company: Insurance contracts — 115.5 — 115.5 Cash and cash equivalents 0.3 — — 0.3 Total $ 0.3 $ 202.6 $ — $ 202.9 As of October 2, 2015: Investment funds: Mutual funds - equities $ — $ 42.7 $ — $ 42.7 Mutual funds - debt — 35.5 — 35.5 Mutual funds - real estate — 4.4 — 4.4 Other — 3.4 — 3.4 Assets held by insurance company: Insurance contracts — 102.9 — 102.9 Cash and cash equivalents 1.0 — — 1.0 Total $ 1.0 $ 188.9 $ — $ 189.9 |
Schedule Of Estimated Future Benefit Payments | Estimated future benefit payments to the defined benefit pension plans at September 30, 2016 were as follows: (In millions) Total Fiscal Years: 2017 $ 8.6 2018 8.3 2019 8.5 2020 5.3 2021 8.4 2022-2026 40.3 Total $ 79.4 |
Stockholders' Equity and Nonc37
Stockholders' Equity and Noncontrolling Interests (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Share Repurchases | The Company repurchased shares of VMS common stock under various authorizations during the periods presented as follows: Fiscal Years (In millions, except per share amounts) 2016 2015 2014 Number of shares 5.7 4.8 7.8 Average repurchase price per share $ 81.61 $ 87.47 $ 80.52 Total cost $ 461.3 $ 422.0 $ 624.0 Included in the table above, VMS repurchased common stock under various ASR agreements during the periods presented as follows: Fiscal Years (In millions, except per share amounts) 2016 2015 2014 Number of shares 1.0 2.3 — Average repurchase price per share $ 83.98 $ 90.00 $ — Total cost $ 85.8 $ 203.9 $ — |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss (In millions) Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans Net Unrealized Gains (Losses) Cash Flow Hedging Instruments Net Cumulative Translation Adjustment Accumulated Other Comprehensive Earnings (Loss) Balance at September 27, 2013 $ (40.1 ) $ (0.7 ) $ — $ 0.7 $ (40.1 ) Other comprehensive earnings (loss) before reclassifications (5.4 ) 3.9 — (16.2 ) (17.7 ) Amounts reclassified out of other comprehensive loss 2.3 (1.3 ) — — 1.0 Tax expense (0.9 ) (0.9 ) — — (1.8 ) Balance at September 26, 2014 (44.1 ) 1.0 — (15.5 ) (58.6 ) Other comprehensive earnings (loss) before reclassifications (4.5 ) 2.2 (0.2 ) (24.8 ) (27.3 ) Amounts reclassified out of other comprehensive loss 2.1 (3.8 ) — — (1.7 ) Tax benefit 0.4 0.6 0.1 — 1.1 Balance at October 2, 2015 (46.1 ) — (0.1 ) (40.3 ) (86.5 ) Other comprehensive earnings (loss) before reclassifications (23.4 ) (1.0 ) (0.4 ) 2.8 (22.0 ) Amounts reclassified out of other comprehensive loss 2.4 1.0 0.6 — 4.0 Tax benefit (expense) 3.8 — (0.1 ) — 3.7 Balance at September 30, 2016 $ (63.3 ) $ — $ — $ (37.5 ) $ (100.8 ) |
Schedule of Amounts Reclassified Out of Other Comprehensive Earnings | The amounts reclassified out of other comprehensive earnings into the Consolidated Statements of Earnings, with line item location, during each period were as follows (in millions): Fiscal Years Comprehensive Earnings Components 2016 2015 2014 Line Item in Statements of Earnings Unrealized losses on defined benefit pension and post-retirement benefit plans $ (2.4 ) $ (2.1 ) $ (2.3 ) Cost of revenues & Operating expenses Unrealized gains and (losses) on cash flow hedging instruments (1.0 ) 3.8 1.3 Revenues Unrealized loss on available-for-sale investments (0.6 ) — — Operating expenses Total amounts reclassified out of other comprehensive loss $ (4.0 ) $ 1.7 $ (1.0 ) |
Schedule Of Changes In Noncontrolling Interests and Redeemable Noncontrolling Interests | Changes in noncontrolling interests and redeemable noncontrolling interests relating to MeVis and other subsidiaries of the Company were as follows: Fiscal Years 2016 2015 (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Noncontrolling Interests Redeemable Noncontrolling Interests Balance at beginning of period $ 14.7 $ — $ — $ — Net earnings (loss) attributable to noncontrolling interests (0.1 ) 0.5 0.5 — Acquisition of Mevis — — 10.2 — Capital contribution from noncontrolling interest holders — — 4.0 — Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests (10.4 ) 10.4 — — Other (0.5 ) (0.6 ) — — Balance at end of period $ 3.7 $ 10.3 $ 14.7 $ — |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The fair value of options granted and the option component of the shares purchased under the Employee Stock Purchase Plan (which is described further below) shares were estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: Employee Stock Option Plans Employee Stock Purchase Plans Fiscal Years Fiscal Years 2016 2015 2014 2016 2015 2014 Expected term (in years) 4.13 4.15 4.13 0.50 0.50 0.50 Risk-free interest rate 1.1 % 1.3 % 1.2 % 0.3 % 0.1 % 0.1 % Expected volatility 20.1 % 22.1 % 24.6 % 17.6 % 12.7 % 12.8 % Expected dividend — % — % — % — % — % — % Weighted average fair value at grant date $ 13.71 $ 18.52 $ 18.24 $ 16.09 $ 15.87 $ 14.20 |
Fair Value of Employee Stock Option Plans with Weighted Average Assumptions | The fair value of options granted and the option component of the shares purchased under the Employee Stock Purchase Plan (which is described further below) shares were estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: Employee Stock Option Plans Employee Stock Purchase Plans Fiscal Years Fiscal Years 2016 2015 2014 2016 2015 2014 Expected term (in years) 4.13 4.15 4.13 0.50 0.50 0.50 Risk-free interest rate 1.1 % 1.3 % 1.2 % 0.3 % 0.1 % 0.1 % Expected volatility 20.1 % 22.1 % 24.6 % 17.6 % 12.7 % 12.8 % Expected dividend — % — % — % — % — % — % Weighted average fair value at grant date $ 13.71 $ 18.52 $ 18.24 $ 16.09 $ 15.87 $ 14.20 |
Net Share-Based Compensation Expense | The table below summarizes the effect of recording share-based compensation expense: Fiscal Years (In millions) 2016 2015 2014 Cost of revenues - Product $ 4.2 $ 4.7 $ 3.3 Cost of revenues - Service 4.2 4.1 4.7 Research and development 6.7 6.8 6.2 Selling, general and administrative 33.2 30.7 25.4 Total share-based compensation expense $ 48.3 $ 46.3 $ 39.6 Income tax benefit for share-based compensation $ (14.8 ) $ (14.2 ) $ (12.1 ) |
Summary the Effect of Recording Pre-Tax Share-Based Compensation Expense for Equity Incentive Awards | The table below summarizes the effect of recording pre-tax share-based compensation expense for equity incentive awards: Fiscal Years (In millions) 2016 2015 2014 Stock options $ 11.1 $ 11.3 $ 9.5 Restricted stock units and restricted stock awards (1) 33.0 31.4 26.6 Employee stock purchase plan 4.2 3.6 3.5 Total share-based compensation expense $ 48.3 $ 46.3 $ 39.6 (1) Restricted stock units and restricted stock awards include performance units and deferred stock units. |
Summary of Share-Based Awards Available for Grant | A summary of share-based awards available for grant is as follows: (In millions) Shares Available for Grant Balance at September 27, 2013 9.9 Granted (1.9 ) Canceled or expired 0.2 Balance at September 26, 2014 8.2 Granted (1.8 ) Canceled or expired 0.3 Balance at October 2, 2015 6.7 Granted (2.4 ) Canceled or expired 0.3 Balance at September 30, 2016 4.6 |
Activity Under Employee Stock Plans | Activity under the Company’s employee stock plans related to stock options is presented below: Options Outstanding (In millions, except per share amounts) Number of Shares Weighted Average Exercise Price Balance at September 27, 2013 4.5 $ 53.02 Granted 0.6 83.50 Canceled, expired or forfeited (0.1 ) 72.35 Exercised (1.7 ) 49.01 Balance at September 26, 2014 3.3 60.53 Granted 0.6 92.29 Canceled, expired or forfeited — 77.53 Exercised (1.4 ) 52.83 Balance at October 2, 2015 (1.6 million options exercisable at a weighted average exercise price of $62.97) 2.5 72.58 Granted 0.8 75.97 Canceled, expired or forfeited — 85.29 Exercised (0.7 ) 57.23 Balance at September 30, 2016 2.6 $ 78.25 |
Options Outstanding And Exercisable | The following table summarizes information related to stock options outstanding and exercisable under the Company’s employee stock plans at September 30, 2016 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Aggregate Intrinsic Value (1) Number of Shares Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Aggregate Intrinsic Value (1) (In millions, except years and per-share amounts) $50.66 – $57.90 0.3 1.4 $ 55.47 $ 11.5 0.3 1.4 $ 55.47 $ 11.5 $64.01 – $72.26 0.3 2.9 68.59 10.7 0.3 2.9 68.59 10.7 $74.28 – $81.90 0.8 6.3 75.96 19.6 — 4.1 74.28 0.2 $83.70 – $92.65 1.2 4.9 88.28 12.6 0.8 4.8 87.21 9.2 Total 2.6 4.7 $ 78.25 $ 54.4 1.4 3.6 $ 76.31 $ 31.6 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, which is computed based on the difference between the exercise price and the closing price of VMS common stock of $99.53 as of September 30, 2016 , the last trading date of fiscal year 2016 , and which represents the amount that would have been received by the option holders had all option holders exercised their options and sold the shares received upon exercise as of that date. |
Activity for Restricted Stock, Restricted Stock Units, Deferred Stock Units and Performance Units | The activity for restricted stock, restricted stock units, deferred stock units and performance units is summarized as follows: (In millions, except per share amounts) Number of Shares Weighted Average Grant-Date Fair Value Balance at September 27, 2013 1.0 $ 64.36 Granted 0.5 82.51 Vested (0.3 ) 63.70 Canceled or expired (0.1 ) 70.69 Balance at September 26, 2014 1.1 72.08 Granted 0.4 93.01 Vested (0.5 ) 67.93 Canceled or expired (0.1 ) 68.51 Balance at October 2, 2015 0.9 84.11 Granted 0.5 78.11 Vested (0.4 ) 80.88 Canceled or expired — 81.94 Balance at September 30, 2016 1.0 $ 82.51 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Net Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted net earnings per share: Fiscal Years (In millions, except per share amounts) 2016 2015 2014 Net earnings attributable to Varian $ 402.3 $ 411.5 $ 403.7 Weighted average shares outstanding - basic 95.4 99.7 104.0 Dilutive effect of potential common shares 0.6 0.9 1.3 Weighted average shares outstanding - diluted 96.0 100.6 105.3 Net earnings per share attributable to Varian - basic $ 4.22 $ 4.13 $ 3.88 Net earnings per share attributable to Varian - diluted $ 4.19 $ 4.09 $ 3.83 Anti-dilutive employee shared based awards, excluded 1.6 1.0 0.6 |
Taxes on Earnings (Tables)
Taxes on Earnings (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Taxes on Earnings | Taxes on earnings were as follows: Fiscal Years (In millions) 2016 2015 2014 Current provision: Federal $ 89.4 $ 52.8 $ 86.6 State and local 10.4 8.4 6.1 Foreign 77.8 76.1 62.2 Total current 177.6 137.3 154.9 Deferred provision (benefit): Federal (13.6 ) 2.5 5.0 State and local (1.2 ) (0.6 ) (0.1 ) Foreign (9.1 ) 3.5 11.0 Total deferred (23.9 ) 5.4 15.9 Taxes on earnings $ 153.7 $ 142.7 $ 170.8 |
Schedule of Earnings Before Taxes | Earnings before taxes are generated from the following geographic areas: Fiscal Years (In millions) 2016 2015 2014 United States $ 187.0 $ 223.9 $ 173.9 Foreign 369.4 330.8 400.6 Total earnings before taxes $ 556.4 $ 554.7 $ 574.5 |
Schedule of Effective Income Tax Rate | The effective tax rate differs from the U.S. federal statutory tax rate as a result of the following: Fiscal Years 2016 2015 2014 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 0.7 % 0.8 % 0.8 % Non-U.S. income taxed at different rates, net (7.3 )% (9.2 )% (5.2 )% Other (0.8 )% (0.9 )% (0.9 )% Effective tax rate 27.6 % 25.7 % 29.7 % |
Schedule of Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows: September 30, October 2, (In millions) 2016 2015 Deferred Tax Assets: Deferred revenues $ 30.2 $ 28.2 Deferred compensation 38.9 33.5 Product warranty 11.9 10.5 Inventory adjustments 21.5 20.9 Share-based compensation 22.3 22.8 Environmental reserve 4.2 4.3 Accruals and reserves 15.7 14.3 Net operating loss carryforwards 106.6 92.6 Other 39.1 31.7 290.4 258.8 Valuation allowance (79.6 ) (69.7 ) Total deferred tax assets 210.8 189.1 Deferred Tax Liabilities: Tax-deductible goodwill (24.6 ) (23.3 ) Property, plant and equipment (25.1 ) (15.5 ) Unremitted earnings of foreign subsidiaries (20.2 ) (27.9 ) Other (28.6 ) (34.8 ) Total deferred tax liabilities (98.5 ) (101.5 ) Net deferred tax assets $ 112.3 $ 87.6 Reported As: Deferred tax assets 138.9 119.4 Deferred tax liabilities (included in other long-term liabilities) (26.6 ) (31.8 ) Net deferred tax assets $ 112.3 $ 87.6 |
Schedule of Income Taxes Paid | Income taxes paid were as follows: Fiscal Years (In millions) 2016 2015 2014 Federal income taxes paid, net $ 78.3 $ 57.1 $ 66.2 State, income taxes paid, net 5.0 7.2 7.3 Foreign income taxes paid, net 72.6 55.5 67.3 Total income taxes paid, net $ 155.9 $ 119.8 $ 140.8 |
Schedule of Changes in Unrecognized Tax Benefits | Changes in the Company’s unrecognized tax benefits were as follows: Fiscal Years (In millions) 2016 2015 2014 Unrecognized tax benefits balance–beginning of fiscal year $ 39.5 $ 49.6 $ 37.0 Additions based on tax positions related to a prior year 0.6 — 10.7 Reductions based on tax positions related to a prior year (0.8 ) (9.9 ) (0.3 ) Additions based on tax positions related to the current year 6.6 5.7 8.2 Settlements — — (0.4 ) Reductions resulting from the expiration of the applicable statute of limitations (5.2 ) (5.9 ) (5.6 ) Unrecognized tax benefits balance–end of fiscal year $ 40.7 $ 39.5 $ 49.6 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table presents the total purchase consideration: (In millions) Purchase Consideration Cash paid $ 13.0 Net non-cash assets transferred (1) 21.7 Escrow payable 0.5 Total purchase consideration $ 35.2 (1) Primarily comprised of accounts receivable. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price allocation: (In millions) Fair Value Net assumed liabilities $ (0.1 ) Finite-lived intangible assets with a weighted average useful life of 6.1 years (1) 8.7 Indefinite-lived intangible assets — IPR&D 2.0 Goodwill (2) 8.7 Net assets acquired $ 19.3 (1) $6.0 million was allocated to the Company’s Oncology Systems reporting unit and $2.7 million to the Company’s Security and inspection products reporting unit. (2) $5.9 million was allocated to the Company's Oncology Systems reporting unit and $2.8 million to the Company's Security and inspection products reporting unit. The following table summarizes the purchase price allocation: (In millions) Fair Value Net assumed liabilities $ (0.5 ) Finite-lived intangible assets with a weighted average useful life of 6.1 years 10.6 Goodwill 9.8 Net assets acquired $ 19.9 The following table summarizes the purchase price allocation: (In millions) Fair Value Net assumed liabilities $ (1.1 ) Finite-lived intangible assets with a weighted average useful life of 6.2 years 24.9 Goodwill 11.4 Net assets acquired $ 35.2 The following table summarizes the purchase price allocation: (In millions) Fair Value Net tangible assets (1) $ 21.7 Finite-lived intangible assets with a weighted average useful life of 5.4 years 5.8 Goodwill 8.2 Fair value of net assets 35.7 Less: Noncontrolling interests (2) 10.2 Net assets acquired $ 25.5 (1) Includes $13.9 million cash and cash equivalents. (2) Fair value was determined using the market price of the shares of MeVis as of the acquisition date. The following table summarizes the purchase price allocation: (In millions) Fair Value Finite-lived intangible assets with a weighted average useful life of 8.3 years $ 8.3 Indefinite-lived intangible assets — IPR&D 8.8 Goodwill 9.9 Net assets acquired $ 27.0 The following table summarizes the purchase price allocation: (In millions) Fair Value Net tangible assets (1) $ 11.3 Finite-lived intangible assets with a weighted average useful life of 6.0 years 16.2 Goodwill 30.5 Net assets acquired $ 58.0 (1) Includes $1.9 million in cash and cash equivalents. |
VPT Loans (Tables)
VPT Loans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Financing Receivables and Allowance for Credit Losses | The following table lists the Company's outstanding loans and commitments for funding development and construction of various proton therapy centers: September 30, 2016 October 2, 2015 (In millions) Balance Commitment Balance Commitment Long-term notes receivable (1) : NYPC loan $ 18.5 $ — $ 18.7 $ 72.8 MPTC loans (2) 40.7 11.4 12.2 22.8 $ 59.2 $ 11.4 $ 30.9 $ 95.6 Available-for-sale Securities (3) : CPTC loans $ 95.3 $ 1.1 $ 83.9 — $ 95.3 $ 1.1 $ 83.9 $ — (1) Included in other assets on the Company's Consolidated Balance Sheets. (2) Increase in balance includes a $17.1 million conversion from long-term unbilled accounts receivable to long-term notes receivable. (3) Included in short-term investment at September 30, 2016, and in other assets as of October 2, 2015 on the Company's Consolidated Balance Sheets. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Operating Results Information for Each Business Segment | Segment Data Revenues Operating Earnings (1) Fiscal Years Fiscal Years (In millions) 2016 2015 2014 2016 2015 2014 Oncology Systems $ 2,457.1 $ 2,344.0 $ 2,344.2 $ 550.5 $ 485.4 $ 495.5 Imaging Components 597.6 611.2 660.2 110.7 131.3 169.9 Total reportable segments 3,054.7 2,955.2 3,004.4 661.2 616.7 665.4 Other 163.1 143.9 45.4 (48.9 ) (31.2 ) (52.7 ) Corporate — — — (61.5 ) (36.5 ) (41.5 ) Total Company $ 3,217.8 $ 3,099.1 $ 3,049.8 $ 550.8 $ 549.0 $ 571.2 (1) Operating earnings of reportable segments and Other include an allocation of corporate expenses based on a percentage of their sales . Depreciation & Amortization Total Assets Fiscal Years Fiscal Years (In millions) 2016 2015 2014 2016 2015 2014 Oncology Systems $ 33.8 $ 27.2 $ 24.8 $ 1,491.2 $ 1,412.5 $ 1,314.1 Imaging Components 19.0 15.7 14.7 587.9 555.4 431.6 Total reportable segments 52.8 42.9 39.5 2,079.1 1,967.9 1,745.7 Other 7.4 4.9 1.0 369.9 296.2 278.6 Corporate 19.6 20.7 22.0 1,367.0 1,314.6 1,314.4 Total Company $ 79.8 $ 68.5 $ 62.5 $ 3,816.0 $ 3,578.7 $ 3,338.7 |
Reconciliation of Segment Operating Results to Companys Earnings from Continuing Operations before Taxes | The reconciliation of segment operating earnings to the Company’s earnings before taxes was as follows: Fiscal Years 2016 2015 2014 Oncology Systems $ 550.5 $ 485.4 $ 495.5 Imaging Components 110.7 131.3 169.9 Total reportable segments 661.2 616.7 665.4 Other (48.9 ) (31.2 ) (52.7 ) Corporate (61.5 ) (36.5 ) (41.5 ) Interest income, net 5.6 5.7 3.3 Total earnings before taxes $ 556.4 $ 554.7 $ 574.5 |
Geographic Information | Geographic Information Revenues Property, plant and equipment, net Fiscal Years Fiscal Years (In millions) 2016 2015 2014 2016 2015 2014 United States $ 1,352.8 $ 1,418.3 $ 1,290.1 $ 286.7 $ 292.6 $ 262.7 International 1,865.0 1,680.8 1,759.7 92.5 86.6 75.3 Total Company $ 3,217.8 $ 3,099.1 $ 3,049.8 $ 379.2 $ 379.2 $ 338.0 |
Quarterly Financial Data (Tabl
Quarterly Financial Data (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Data | Fiscal Year 2016 (In millions, except per share amounts) First Second Third (1) Fourth (2) Total Year Total revenues $ 757.1 $ 758.8 $ 789.4 $ 912.5 $ 3,217.8 Gross margin $ 309.7 $ 317.2 $ 346.4 $ 388.0 $ 1,361.3 Net earnings attributable to Varian $ 89.0 $ 97.0 $ 98.8 $ 117.5 $ 402.3 Net earnings per share – basic $ 0.92 $ 1.01 $ 1.04 $ 1.25 $ 4.22 Net earnings per share – diluted $ 0.91 $ 1.01 $ 1.04 $ 1.24 $ 4.19 Fiscal Year 2015 (In millions, except per share amounts) First Quarter Second Third Fourth Quarter Total Year Total revenues $ 737.9 $ 759.4 $ 784.0 $ 817.8 $ 3,099.1 Gross margin $ 327.0 $ 322.5 $ 315.0 $ 318.2 $ 1,282.7 Net earnings attributable to Varian $ 93.3 $ 106.0 $ 113.5 $ 98.7 $ 411.5 Net earnings per share – basic $ 0.93 $ 1.06 $ 1.14 $ 1.00 $ 4.13 Net earnings per share – diluted $ 0.92 $ 1.05 $ 1.13 $ 0.99 $ 4.09 (1) In the third quarter of fiscal year 2016, net earnings attributable to Varian include $5.4 million in costs relating to the separation of Imaging Components business. (2) In the fourth quarter of fiscal year 2016, net earnings attributable to Varian include $11.5 million in costs relating to the separation of Imaging Components business. |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016USD ($) | Jul. 01, 2016USD ($) | Sep. 30, 2016USD ($)reporting_unit | Oct. 02, 2015USD ($)reporting_unit | Sep. 26, 2014USD ($)reporting_unit | Apr. 02, 1999company | |
Significant Accounting Policies [Line Items] | ||||||
Business separation costs | $ 11.5 | $ 5.4 | $ 16.9 | $ 0 | $ 0 | |
Number of publicly traded companies | company | 3 | |||||
Number of publicly traded companies distributed to stockholders | company | 2 | |||||
Foreign currency gain (loss) before tax | 1.6 | (2) | (0.5) | |||
Carrying value of equity investments in privately-held companies | 49.3 | 49.3 | 49.7 | |||
Impairment | $ 7.7 | |||||
Equity investments under cost method | 18.7 | $ 18.7 | $ 15 | |||
Number of reporting units tested for impairment of goodwill | reporting_unit | 4 | 4 | 4 | |||
Warranty period | 12 months | |||||
Costs incurred and revenues recognized in excess of customer billings | 111.6 | $ 111.6 | $ 79.1 | |||
Customer billings in excess of costs incurred and revenue recognized | 13.7 | 13.7 | 53.8 | |||
Deferred tax liabilties | $ (26.6) | $ (26.6) | (31.8) | |||
New Accounting Pronouncement, Early Adoption, Effect | ||||||
Significant Accounting Policies [Line Items] | ||||||
Decrease in current deferred tax assets | 132.1 | |||||
Decrease in current deferred tax liabilities | 6.3 | |||||
Deferred tax assets | 110 | |||||
Deferred tax liabilties | $ 15.8 | |||||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Finite-lived intangible asset, useful life (in years) | 2 years | |||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Finite-lived intangible asset, useful life (in years) | 10 years | |||||
Land Improvements | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, useful life (in years) | 15 years | |||||
Building | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, useful life (in years) | 20 years | |||||
Building | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, useful life (in years) | 30 years | |||||
Machinery and Equipment | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, useful life (in years) | 3 years | |||||
Machinery and Equipment | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, useful life (in years) | 7 years |
Balance Sheet Components - Avai
Balance Sheet Components - Available-for-Sale Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Available-for-sale Securities: | ||
Amortized Cost | $ 95.3 | $ 93.2 |
Gross Unrealized Gains | 0 | 0.1 |
Gross Unrealized Losses | 0 | (0.3) |
Fair Value | 95.3 | 93 |
CPTC loans | ||
Available-for-sale Securities: | ||
Amortized Cost | 95.3 | 83.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 95.3 | 83.9 |
Other | ||
Available-for-sale Securities: | ||
Amortized Cost | 8.6 | |
Gross Unrealized Gains | 0.1 | |
Gross Unrealized Losses | (0.3) | |
Fair Value | 8.4 | |
Non-U.S. government security | ||
Available-for-sale Securities: | ||
Amortized Cost | 0.7 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 0.7 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Inventories: | ||
Raw materials and parts | $ 407.9 | $ 348.3 |
Work-in-process | 76.7 | 98.2 |
Finished goods | 155.1 | 166.1 |
Total inventories | $ 639.7 | $ 612.6 |
Balance Sheet Components - Co48
Balance Sheet Components - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 |
Balance Sheet Related Disclosures [Abstract] | |||
Land and land improvements | $ 49.4 | $ 49.1 | |
Buildings and leasehold improvements | 330.2 | 267 | |
Machinery and equipment | 490.4 | 437.2 | |
Construction in progress | 34.2 | 99.6 | |
Property, plant and equipment: | 904.2 | 852.9 | |
Accumulated depreciation and amortization | (525) | (473.7) | |
Total property, plant and equipment, net | $ 379.2 | $ 379.2 | $ 338 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Long-term available-for-sale securities | $ 0 | $ 93 |
Long-term receivables | 113.8 | 77 |
Investments in privately-held companies | 68 | 64.7 |
Deferred Compensation Plan (DCP) assets | 63.4 | 56.6 |
Other | 37.3 | 39.7 |
Total other assets | $ 282.5 | $ 331 |
Balance Sheet Components - Co50
Balance Sheet Components - Components of Accrued Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Accrued liabilities: | ||
Accrued compensation and benefits | $ 119.8 | $ 101.5 |
DCP liabilities | 63.8 | 57.3 |
Product warranty | 51.1 | 43.9 |
Income taxes payable | 55.1 | 36.4 |
Other | 122.9 | 108.1 |
Total accrued liabilities | $ 412.7 | $ 347.2 |
Balance Sheet Components - Co51
Balance Sheet Components - Components of Other Long-Term Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Long-term income taxes payable | $ 46.2 | $ 44.5 |
Deferred income taxes | 26.6 | 31.8 |
Other | 87.2 | 61.9 |
Total other long-term liabilities | $ 160 | $ 138.2 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale securities: | $ 95.3 | $ 93 |
Non-U.S. government security | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale securities: | 0.7 | |
Fair Value, Measurements, Recurring | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Total assets measured at fair value | 95.3 | 93 |
Contingent consideration | (1.3) | (4.1) |
Total liabilities measured at fair value | (1.3) | (4.1) |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Total assets measured at fair value | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Total assets measured at fair value | 0 | 9.1 |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Total assets measured at fair value | 95.3 | 83.9 |
Contingent consideration | (1.3) | (4.1) |
Total liabilities measured at fair value | (1.3) | (4.1) |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale securities: | 95.3 | 92.3 |
Fair Value, Measurements, Recurring | Corporate debt securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | Significant Other Observable Inputs (Level 2) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale securities: | 0 | 8.4 |
Fair Value, Measurements, Recurring | Corporate debt securities | Significant Unobservable Inputs (Level 3) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Available-for-sale securities: | $ 95.3 | 83.9 |
Fair Value, Measurements, Recurring | Non-U.S. government security | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Non-U.S. government security | 0.7 | |
Fair Value, Measurements, Recurring | Non-U.S. government security | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Non-U.S. government security | 0 | |
Fair Value, Measurements, Recurring | Non-U.S. government security | Significant Other Observable Inputs (Level 2) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Non-U.S. government security | 0.7 | |
Fair Value, Measurements, Recurring | Non-U.S. government security | Significant Unobservable Inputs (Level 3) | ||
Assets/Liabilities Measured at Fair Value on a Recurring Basis | ||
Non-U.S. government security | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of current maturities of long-term debt | $ 50 | $ 50 |
Long-term debt | 287.5 | 337.5 |
Notes Receivable | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term (1) | $ 59.2 | $ 30.9 |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Minimum remaining maturity of foreign currency derivatives (in months) | 1 month | |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Minimum remaining maturity of foreign currency derivatives (in months) | 13 months |
Fair Value - Reconciliation for
Fair Value - Reconciliation for Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
CPTC loans | ||
CPTC Loans | ||
Beginning balance | $ 83.9 | $ 75.6 |
Additions | 11.4 | 8.3 |
Settlements | 0 | 0 |
Change in fair value recognized in earnings | 0 | 0 |
Ending balance | 95.3 | 83.9 |
Contingent Consideration | ||
Contingent Consideration | ||
Beginning Balance | (4.1) | (7.5) |
Additions | 0 | 0 |
Settlements | 3.5 | 3.3 |
Change in fair value recognized in earnings | (0.7) | 0.1 |
Ending Balance | $ (1.3) | $ (4.1) |
Receivables (Detail)
Receivables (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 970.8 | $ 838.2 |
Allowance for doubtful accounts | (24.4) | (21.2) |
Accounts receivable, net | 946.4 | 817 |
Short-term | 891.8 | 770.9 |
Long-term (1) | 54.6 | 46.1 |
Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 65 | 40.9 |
Short-term (2) | 5.8 | 10 |
Long-term (1) | $ 59.2 | $ 30.9 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Activity of Goodwill by Reportable Operating Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Goodwill [Roll Forward] | ||
Balance, beginning | $ 283.5 | $ 240.6 |
Business combinations | 11.4 | 49.2 |
Foreign currency translation adjustments | (0.2) | (6.3) |
Balance, ending | 294.7 | 283.5 |
Oncology Systems | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 158.8 | 148.3 |
Business combinations | 11.4 | 10.5 |
Foreign currency translation adjustments | 0 | 0 |
Balance, ending | 170.2 | 158.8 |
Imaging Components | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 74.7 | 36 |
Business combinations | 0 | 38.7 |
Foreign currency translation adjustments | 0 | 0 |
Balance, ending | 74.7 | 74.7 |
Other | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 50 | 56.3 |
Business combinations | 0 | 0 |
Foreign currency translation adjustments | (0.2) | (6.3) |
Balance, ending | $ 49.8 | $ 50 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Finite Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (80.5) | $ (65.1) |
Net carrying amount | 95.9 | 62 |
Technologies and patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets: | 122 | 98.7 |
Customer contracts and supplier relationship | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets: | 41.7 | 20.1 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets: | $ 12.7 | $ 8.3 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Research and development asset acquired fair value | $ 8.8 | $ 10.6 | |
Amortization expense for intangible assets | 15.6 | $ 8.4 | $ 4.8 |
Future amortization expense, fiscal year 2017 | 20.1 | ||
Future amortization expense, fiscal year 2018 | 18.3 | ||
Future amortization expense, fiscal year 2019 | 14.1 | ||
Future amortization expense, fiscal year 2020 | 12.7 | ||
Future amortization expense, fiscal year 2021 | 9.5 | ||
Future amortization expense, thereafter | $ 21.2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Sep. 30, 2016USD ($)member | Oct. 02, 2015USD ($) | Sep. 26, 2014USD ($) | |
Related Party Transaction [Line Items] | ||||
Carrying value of the equity investment | $ 49.3 | $ 49.7 | ||
dpiX | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Ownership interest in dpiX Holding LLC | 40.00% | |||
Number of members | member | 2 | |||
dpiX Holding LLC's ownership interest in dpiX LLC (as a percent) | 100.00% | |||
Income (Loss) on equity investment in affiliate | $ (1.5) | 0.1 | $ (0.8) | |
Carrying value of the equity investment | 47.2 | 47.3 | ||
Purchases of glass transistor arrays from dpiX | 23.4 | $ 21.3 | $ 20.9 | |
Percentage of manufacturing capacity | 50.00% | |||
Percentage of fixed costs | 50.00% | |||
Fixed cost commitments | $ 4.5 |
Borrowings - Summary of Long-te
Borrowings - Summary of Long-term Debt Outstanding (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Debt Instrument [Line Items] | ||
Current portion of 2013 Term Loan Facility | $ 50 | $ 50 |
Short-term borrowings | 329.6 | 108.4 |
Total short-term debt | 379.6 | 158.4 |
Long-term debt | 287.5 | 337.5 |
2013 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 287.5 | $ 337.5 |
Weighted-Average Interest Rate (as a percent) | 1.65% | 1.32% |
2013 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Current portion of 2013 Term Loan Facility | $ 50 | $ 50 |
Weighted-Average Interest Rate (as a percent) | 1.65% | 1.32% |
2013 Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 300 | $ 90 |
Weighted-Average Interest Rate (as a percent) | 1.91% | 1.57% |
Sumitomo Credit Facility | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 29.6 | $ 18.4 |
Weighted-Average Interest Rate (as a percent) | 0.53% | 0.63% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | 12 Months Ended | |||||
Sep. 30, 2016USD ($) | Oct. 02, 2015USD ($) | Sep. 26, 2014USD ($) | Sep. 30, 2016JPY (¥) | Oct. 31, 2015USD ($) | Aug. 27, 2013USD ($) | |
Line Of Credit Facility [Line Items] | ||||||
Interest paid on borrowings | $ 10,800,000 | $ 7,100,000 | $ 7,000,000 | |||
Future principal payments for long-term debt for next year | 50,000,000 | |||||
Future principal payments for long-term debt in two years | $ 287,500,000 | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility term (in years) | 5 years | |||||
Loan facility, maximum borrowing capacity | $ 300,000,000 | $ 500,000,000 | ||||
Additional loan facility maximum commitment amount | $ 100,000,000 | |||||
Line of credit facility, commitment fee amount | $ 300,000 | $ 600,000 | $ 600,000 | |||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit maturity (in days) | 30 days | |||||
Line of credit facility, commitment fee percentage | 0.125% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit facility, commitment fee percentage | 0.20% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Letter of Credit | ||||||
Line Of Credit Facility [Line Items] | ||||||
Loan facility, maximum borrowing capacity | $ 50,000,000 | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Swing Line Loans | ||||||
Line Of Credit Facility [Line Items] | ||||||
Loan facility, maximum borrowing capacity | $ 25,000,000 | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Eurodollar | Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 1.125% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Eurodollar | Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 1.375% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Federal Funds Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 0.50% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Eurodollar | ||||||
Line Of Credit Facility [Line Items] | ||||||
Percentage added to Eurodollar base rate before margin | 1.00% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Eurodollar | Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 0.125% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Revolving Credit Facility | Eurodollar | Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 0.375% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Term Loan Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility term (in years) | 5 years | |||||
Loan facility, maximum borrowing capacity | $ 500,000,000 | |||||
Additional loan facility maximum commitment amount | $ 100,000,000 | |||||
Two Thousand Thirteen Credit Agreement | 2013 Term Loan Facility | Eurodollar | Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 0.875% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Term Loan Facility | Eurodollar | Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 1.125% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Term Loan Facility | Federal Funds Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 0.50% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Term Loan Facility | Eurodollar | ||||||
Line Of Credit Facility [Line Items] | ||||||
Percentage added to Eurodollar base rate before margin | 1.00% | |||||
Two Thousand Thirteen Credit Agreement | 2013 Term Loan Facility | Eurodollar | Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, basis spread on variable rate (as a percent) | 0.125% | |||||
Sumitomo Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Loan facility, maximum borrowing capacity | ¥ | ¥ 3,000,000,000 | |||||
Line of credit, basis spread on variable rate (as a percent) | 0.50% |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
Derivative [Line Items] | |
Derivative, term of contract (in months) | 1 month |
Minimum | |
Derivative [Line Items] | |
Derivative, Remaining Maturity | 1 month |
Maximum | |
Derivative [Line Items] | |
Derivative, Remaining Maturity | 13 months |
Derivative Instruments and He63
Derivative Instruments and Hedging Activities - Effective Portion of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Detail) - Derivatives Designated as Hedging Instruments - Foreign currency forward contracts - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $ (1) | $ 2.2 | $ 3.9 |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Net Earnings (Effective Portion) | $ (1) | $ 3.8 | $ 1.3 |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities - Outstanding Foreign Currency Forward Contracts that Were Entered into to Hedge Balance Sheet Exposures (Detail) - Not Designated as Hedging Instrument - Foreign Exchange Forward $ in Millions | Sep. 30, 2016USD ($) |
Notional Value Sold | |
Derivative [Line Items] | |
Notional Value | $ 270.4 |
Notional Value Sold | Australian Dollar | |
Derivative [Line Items] | |
Notional Value | 21.2 |
Notional Value Sold | Brazilian Real | |
Derivative [Line Items] | |
Notional Value | 7.1 |
Notional Value Sold | Canadian Dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Sold | Euro | |
Derivative [Line Items] | |
Notional Value | 159.2 |
Notional Value Sold | Indian Rupee | |
Derivative [Line Items] | |
Notional Value | 9.1 |
Notional Value Sold | Japanese yen | |
Derivative [Line Items] | |
Notional Value | 69.3 |
Notional Value Sold | Swedish Krona | |
Derivative [Line Items] | |
Notional Value | 4.5 |
Notional Value Sold | Swiss Franc | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Purchased | |
Derivative [Line Items] | |
Notional Value | 98 |
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 | Canadian Dollar | |
Derivative [Line Items] | |
Notional Value | 3 |
Notional Value Purchased | Euro | |
Derivative [Line Items] | |
Notional Value | 1 |
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 | Swedish Krona | |
Derivative [Line Items] | |
Notional Value | 0 |
Notional Value Purchased | Swiss Franc | |
Derivative [Line Items] | |
Notional Value | $ 94 |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities - Gains (Losses) Related to Foreign Currency Forward Exchange Contracts that are Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Selling, general and administrative expenses | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Net Earnings on Derivative | $ (5.3) | $ 27.6 | $ 13.7 |
Commitments and Contingencies -
Commitments and Contingencies - Accrued Product Warranty (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrued product warranty, at beginning of period | $ 45.9 | $ 49.3 |
Charged to cost of revenues | 59.4 | 50.8 |
Actual product warranty expenditures | (50.5) | (54.2) |
Accrued product warranty, at end of period | $ 54.8 | $ 45.9 |
Commitments and Contingencies67
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015tender | Jun. 27, 2014USD ($) | Mar. 28, 2014USD ($) | Dec. 27, 2013USD ($) | Sep. 30, 2016USD ($) | Oct. 02, 2015USD ($) | Sep. 26, 2014USD ($) | |
Commitments And Contingencies [Line Items] | |||||||
Long-term warranty accrual | $ 3,700,000 | $ 2,000,000 | |||||
Minimum rentals under operating leases fiscal year 2017 | 27,500,000 | ||||||
Minimum rentals under operating leases fiscal year 2018 | 20,800,000 | ||||||
Minimum rentals under operating leases fiscal year 2019 | 15,300,000 | ||||||
Minimum rentals under operating leases fiscal year 2020 | 12,300,000 | ||||||
Minimum rentals under operating leases fiscal year 2021 | 11,000,000 | ||||||
Minimum rentals, thereafter | 19,400,000 | ||||||
Rental expenses | 28,100,000 | 28,800,000 | $ 28,700,000 | ||||
Environmental cleanup costs, third-party claim costs, project management costs and legal costs | 1,100,000 | 1,300,000 | 1,200,000 | ||||
Receivables of past and future environmental-related expenditures | 2,000,000 | 2,100,000 | |||||
Restructuring charges | 5,300,000 | $ 13,300,000 | $ 0 | ||||
Payments for restructuring | $ 4,000,000 | ||||||
Portugal Investigation | |||||||
Commitments And Contingencies [Line Items] | |||||||
Number of tenders | tender | 3 | ||||||
University of Pittsburgh | |||||||
Commitments And Contingencies [Line Items] | |||||||
Settlement amount | $ 35,600,000 | ||||||
Losses accrued | $ 25,100,000 | $ 5,000,000 | |||||
Prepaid royalties | $ 5,500,000 | ||||||
Cercla Sites And One Past Facility | |||||||
Commitments And Contingencies [Line Items] | |||||||
Responsibility percentage | 33.33% | ||||||
Patents | University of Pittsburgh | |||||||
Commitments And Contingencies [Line Items] | |||||||
Amortization period for intangible assets (in years) | 2 years 6 months | ||||||
Cercla Sites And One Past Facility | |||||||
Commitments And Contingencies [Line Items] | |||||||
Amount accrued for environmental remediation expense | $ 1,300,000 | ||||||
Cercla Sites And One Past Facility | Minimum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated environmental remediation costs, maximum | $ 1,300,000 | ||||||
Estimated time frames to resolve contingency related to environmental remediation contingencies (in years) | 1 year | ||||||
Cercla Sites And One Past Facility | Maximum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated environmental remediation costs, maximum | $ 9,900,000 | ||||||
Estimated time frames to resolve contingency related to environmental remediation contingencies (in years) | 30 years | ||||||
Other Sites | |||||||
Commitments And Contingencies [Line Items] | |||||||
Amount accrued for environmental remediation expense | $ 6,800,000 | ||||||
Site contingency loss best estimate | $ 8,100,000 | ||||||
Accrual for environmental loss contingencies discount rate (as a percent) | 4.00% | ||||||
Other Sites | Minimum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated environmental remediation costs, maximum | $ 5,300,000 | ||||||
Estimated time frames to resolve contingency related to environmental remediation contingencies (in years) | 1 year | ||||||
Other Sites | Maximum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimated environmental remediation costs, maximum | $ 25,500,000 | ||||||
Estimated time frames to resolve contingency related to environmental remediation contingencies (in years) | 30 years |
Commitments and Contingencies68
Commitments and Contingencies - Schedule of Liabilities for Future Environmental Costs (Detail) $ in Millions | Sep. 30, 2016USD ($) |
Loss Contingencies [Line Items] | |
2,017 | $ 1.6 |
2,018 | 1 |
2,019 | 1 |
2,020 | 0.7 |
2,021 | 1.2 |
Thereafter | 3.8 |
Total costs | 9.3 |
Less imputed interest | 1.2 |
Reserve amount | 8.1 |
Recurring Costs | |
Loss Contingencies [Line Items] | |
2,017 | 0.4 |
2,018 | 0.5 |
2,019 | 0.4 |
2,020 | 0.4 |
2,021 | 0.5 |
Thereafter | 2.8 |
Total costs | 5 |
Non-Recurring Costs | |
Loss Contingencies [Line Items] | |
2,017 | 1.2 |
2,018 | 0.5 |
2,019 | 0.6 |
2,020 | 0.3 |
2,021 | 0.7 |
Thereafter | 1 |
Total costs | $ 4.3 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016USD ($)plan | Oct. 02, 2015USD ($) | Sep. 26, 2014USD ($) | |
Retirement Plans [Line Items] | |||
Total retirement, post-retirement benefit plan and defined benefit plan expense | $ 33.3 | $ 32.1 | $ 28.6 |
Accumulated benefit obligation for defined benefit pension plans | $ 193.4 | $ 175.6 | |
Equity Securities | |||
Retirement Plans [Line Items] | |||
Target percentage allocation | 25.00% | ||
Debt and fixed income assets | |||
Retirement Plans [Line Items] | |||
Target percentage allocation | 64.00% | ||
Real Estate | |||
Retirement Plans [Line Items] | |||
Target percentage allocation | 3.00% | ||
Other | |||
Retirement Plans [Line Items] | |||
Target percentage allocation | 8.00% | ||
U.K. Savings Plan | |||
Retirement Plans [Line Items] | |||
Number of plans | plan | 7 | ||
Defined Benefit Plans | |||
Retirement Plans [Line Items] | |||
Discount rate | 1.03% | 2.09% | |
Rate of projected compensation increase (as a percent) | 2.33% | 2.50% | |
Contributions by employer | $ 8.1 | $ 6.9 | $ 7.2 |
Expected total contribution to the defined benefit plans for the next year | $ 7.2 | ||
Minimum | Defined Benefit Plans | |||
Retirement Plans [Line Items] | |||
Discount rate | 0.30% | ||
Rate of projected compensation increase (as a percent) | 1.75% | ||
Maximum | Defined Benefit Plans | |||
Retirement Plans [Line Items] | |||
Discount rate | 4.75% | ||
Rate of projected compensation increase (as a percent) | 5.00% | ||
United States Retirement Plan | Minimum | |||
Retirement Plans [Line Items] | |||
Participant contribution for eligible base compensation (as a percent) | 1.00% | ||
United States Retirement Plan | Maximum | |||
Retirement Plans [Line Items] | |||
Contribution as percentage on after-tax basis (as a percent) | 15.00% | ||
Participant contribution for eligible base compensation (as a percent) | 25.00% | ||
US 401(K) Plan | |||
Retirement Plans [Line Items] | |||
Years of service | 1 year | ||
Maximum eligible participant compensation that company matches under defined contribution plan (as a percent) | 6.00% | ||
U.K. Savings Plan | |||
Retirement Plans [Line Items] | |||
Maximum eligible participant compensation that company matches under defined contribution plan (as a percent) | 6.00% | ||
U.K. Savings Plan | Minimum | |||
Retirement Plans [Line Items] | |||
Participant contribution for eligible base compensation (as a percent) | 4.00% | ||
U.K. Savings Plan | Maximum | |||
Retirement Plans [Line Items] | |||
Participant contribution for eligible base compensation (as a percent) | 100.00% |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Funded Status of the Defined Benefit Pension (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Change in plan assets: | |||
Plan assets - beginning of fiscal year | $ 189.9 | ||
Plan assets - end of fiscal year | 202.9 | $ 189.9 | |
Defined Benefit Plans | |||
Change in benefit obligation: | |||
Benefit obligation - beginning of fiscal year | 210.3 | 207.6 | |
Service cost | 6.1 | 5.7 | $ 4.1 |
Interest cost | 4.1 | 4.4 | 6.1 |
Plan participants’ contributions | 8.8 | 9.9 | |
Plan amendments | (1.2) | (1.1) | |
Plan settlements | (4) | (4) | |
Plan combinations | 0.7 | 0 | |
Actuarial loss | 31.8 | 3.7 | |
Foreign currency changes | (8.9) | (8.9) | |
Benefit and expense payments | (4.6) | (7) | |
Benefit obligation - end of fiscal year | 243.1 | 210.3 | 207.6 |
Change in plan assets: | |||
Plan assets - beginning of fiscal year | 189.9 | 188.6 | |
Employer contributions | 8.1 | 6.9 | 7.2 |
Actual return on plan assets | 13 | 4.1 | |
Plan participants’ contributions | 8.8 | 9.9 | |
Plan settlements | (4) | (4) | |
Foreign currency changes | (8.7) | (8.6) | |
Plan combinations | 0.4 | 0 | |
Benefit and expense payments | (4.6) | (7) | |
Plan assets - end of fiscal year | 202.9 | 189.9 | $ 188.6 |
Funded status | (40.2) | (20.4) | |
Amounts recognized within the consolidated balance sheet: | |||
Other assets | 0 | 4.3 | |
Other long-term liabilities | (40.2) | (24.7) | |
Net amount recognized | $ (40.2) | $ (20.4) |
Retirement Plans - Schedule o71
Retirement Plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Before Tax) (Detail) - Defined Benefit Plans - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service credit | $ 1.9 | $ 0.7 |
Net loss | (80.7) | (58.9) |
Accumulated other comprehensive loss | $ (78.8) | $ (58.2) |
Retirement Plans - Schedule o72
Retirement Plans - Schedule of Defined Benefit Pension Plan Balances with Accumulated Benefit Obligation Exceeded Fair Value of Plan Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Retirement Plans [Abstract] | ||
Projected benefit obligation | $ 17.8 | $ 15.6 |
Accumulated benefit obligation | 16.8 | 14.2 |
Fair value of plan assets | $ 13 | $ 13.2 |
Retirement Plans - Schedule o73
Retirement Plans - Schedule of Net Periodic Benefit Costs (Detail) - Defined Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 6.1 | $ 5.7 | $ 4.1 |
Interest cost | 4.1 | 4.4 | 6.1 |
Loss due to settlement | 1 | 1.1 | 1.8 |
Expected return on assets | (6.8) | (7.1) | (7.8) |
Amortization of prior service cost | (0.1) | 0.1 | 0.2 |
Recognized actuarial loss | 2.9 | 2.5 | 2.1 |
Net periodic benefit cost | 7.2 | 6.7 | 6.5 |
New prior service credit | (1.2) | (1.1) | 0 |
Net loss arising during the year | 25.6 | 6.7 | 10.3 |
Amortization of prior service credit (cost) | 0.1 | (0.1) | (0.2) |
Amortization, settlement and curtailment of net actuarial loss | (3.9) | (3.6) | (3.9) |
Total recognized in other comprehensive loss | 20.6 | 1.9 | 6.2 |
Total recognized in net periodic benefit cost and other comprehensive loss | $ 27.8 | $ 8.6 | $ 12.7 |
Retirement Plans - Schedule o74
Retirement Plans - Schedule of Accumulated Other Comprehensive Income (Loss) Expected to be Recognized as Components of Net Periodic Benefit Cost (Detail) - Defined Benefit Plans $ in Millions | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | $ 0.2 |
Net loss | (4.4) |
Total | $ (4.2) |
Retirement Plans - Schedule o75
Retirement Plans - Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Detail) - Defined Benefit Plans | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.09% | 2.58% | 3.11% |
Rate of compensation increase | 2.42% | 2.45% | 2.51% |
Expected long-term return on assets | 3.69% | 3.90% | 4.21% |
Retirement Plans - Schedule o76
Retirement Plans - Schedule of Assumptions used to Measure Benefit Obligations for Company's Defined Benefit Pension (Detail) - Defined Benefit Plans | Sep. 30, 2016 | Oct. 02, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.03% | 2.09% |
Rate of compensation increase | 2.33% | 2.50% |
Retirement Plans - Schedule o77
Retirement Plans - Schedule of Fair Values of Plan Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | $ 202.9 | $ 189.9 |
Mutual funds - equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 52.3 | 42.7 |
Mutual funds - debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 27.2 | 35.5 |
Mutual funds - real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 4.7 | 4.4 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 2.9 | 3.4 |
Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 115.5 | 102.9 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0.3 | 1 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0.3 | 1 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Mutual funds - equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Mutual funds - debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Mutual funds - real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0.3 | 1 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 202.6 | 188.9 |
Significant Other Observable Inputs (Level 2) | Mutual funds - equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 52.3 | 42.7 |
Significant Other Observable Inputs (Level 2) | Mutual funds - debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 27.2 | 35.5 |
Significant Other Observable Inputs (Level 2) | Mutual funds - real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 4.7 | 4.4 |
Significant Other Observable Inputs (Level 2) | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 2.9 | 3.4 |
Significant Other Observable Inputs (Level 2) | Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 115.5 | 102.9 |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mutual funds - equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mutual funds - debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mutual funds - real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | $ 0 | $ 0 |
Retirement Plans - Schedule o78
Retirement Plans - Schedule of Estimated Future Benefit Payments (Detail) - Defined Benefit Plans $ in Millions | Sep. 30, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 8.6 |
2,018 | 8.3 |
2,019 | 8.5 |
2,020 | 5.3 |
2,021 | 8.4 |
2022-2026 | 40.3 |
Total | $ 79.4 |
Stockholders' Equity and Nonc79
Stockholders' Equity and Noncontrolling Interests - Repurchase table (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Accelerated Share Repurchases [Line Items] | |||
Number (in shares) | 5.7 | 4.8 | 7.8 |
Average repurchase price ($ per share) | $ 81.61 | $ 87.47 | $ 80.52 |
Total cost | $ 461.3 | $ 422 | $ 624 |
Accelerated Share Repurchase Program | |||
Accelerated Share Repurchases [Line Items] | |||
Number (in shares) | 1 | 2.3 | 0 |
Average repurchase price ($ per share) | $ 83.98 | $ 90 | $ 0 |
Total cost | $ 85.8 | $ 203.9 | $ 0 |
Stockholders' Equity and Nonc80
Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2016USD ($)€ / sharesshares | Nov. 30, 2016shares | Sep. 30, 2016€ / shares | Nov. 30, 2015shares | Oct. 02, 2015USD ($) | Apr. 30, 2015 | |
Shareholders Equity [Line Items] | ||||||
Number of shares remain available for repurchase (in shares) | 3,800,000 | |||||
Redemption value | $ | $ 10.3 | $ 0 | ||||
Mevis | ||||||
Shareholders Equity [Line Items] | ||||||
Percentage of voting interests acquired | 73.50% | |||||
Annual recurring compensation (in euro per share) | € / shares | $ 0.95 | |||||
Redemption price (EUR per share) | € / shares | € 19.77 | |||||
Held (in shares) | 500,000 | |||||
Noncontrolling interest (as a percent) | 26.40% | |||||
November 2,015 | ||||||
Shareholders Equity [Line Items] | ||||||
Number of shares authorized to be repurchased by VMS Board of Directors (in shares) | 8,000,000 | |||||
Subsequent Event | November 2016 | ||||||
Shareholders Equity [Line Items] | ||||||
Number of shares authorized to be repurchased by VMS Board of Directors (in shares) | 8,000,000 |
Stockholders' Equity and Nonc81
Stockholders' Equity and Noncontrolling Interests - Schedule of Accumulated Other Comprehensive Loss and Related Tax Effects (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 1,726.3 | $ 1,616.4 | $ 1,713.8 |
Balance at end of period | 1,744.2 | 1,726.3 | 1,616.4 |
Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (46.1) | (44.1) | (40.1) |
Other comprehensive earnings (loss) before reclassifications | (23.4) | (4.5) | (5.4) |
Amounts reclassified out of other comprehensive loss | 2.4 | 2.1 | 2.3 |
Tax expense | 3.8 | 0.4 | (0.9) |
Balance at end of period | (63.3) | (46.1) | (44.1) |
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 0 | 1 | (0.7) |
Other comprehensive earnings (loss) before reclassifications | (1) | 2.2 | 3.9 |
Amounts reclassified out of other comprehensive loss | 1 | (3.8) | (1.3) |
Tax expense | 0 | 0.6 | (0.9) |
Balance at end of period | 0 | 0 | 1 |
Net Unrealized Gains (Losses) Available-for- Sale Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (0.1) | 0 | 0 |
Other comprehensive earnings (loss) before reclassifications | (0.4) | (0.2) | 0 |
Amounts reclassified out of other comprehensive loss | 0.6 | 0 | 0 |
Tax expense | (0.1) | 0.1 | 0 |
Balance at end of period | 0 | (0.1) | 0 |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (40.3) | (15.5) | 0.7 |
Other comprehensive earnings (loss) before reclassifications | 2.8 | (24.8) | (16.2) |
Amounts reclassified out of other comprehensive loss | 0 | 0 | 0 |
Tax expense | 0 | 0 | 0 |
Balance at end of period | (37.5) | (40.3) | (15.5) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (86.5) | (58.6) | (40.1) |
Other comprehensive earnings (loss) before reclassifications | (22) | (27.3) | (17.7) |
Amounts reclassified out of other comprehensive loss | 4 | (1.7) | 1 |
Tax expense | 3.7 | 1.1 | (1.8) |
Balance at end of period | $ (100.8) | $ (86.5) | $ (58.6) |
Stockholders' Equity and Nonc82
Stockholders' Equity and Noncontrolling Interests - Schedule of Amounts Reclassified Out of Other Comprehensive Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Revenues | $ 912.5 | $ 789.4 | $ 758.8 | $ 757.1 | $ 817.8 | $ 784 | $ 759.4 | $ 737.9 | $ 3,217.8 | $ 3,099.1 | $ 3,049.8 |
Operating expenses | (810.5) | (733.7) | (730.5) | ||||||||
Total amounts reclassified out of other comprehensive loss | $ 117.5 | $ 98.8 | $ 97 | $ 89 | $ 98.7 | $ 113.5 | $ 106 | $ 93.3 | 402.3 | 411.5 | 403.7 |
Net Unrealized Gains (Losses) Defined Benefit Pension and Post-Retirement Benefit Plans | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Cost of revenues & Operating expenses | (2.4) | (2.1) | (2.3) | ||||||||
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Cost of revenues & Operating expenses | (1) | 3.8 | 1.3 | ||||||||
Net Unrealized Gains (Losses) Available-for- Sale Securities | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Cost of revenues & Operating expenses | (0.6) | 0 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Total amounts reclassified out of other comprehensive loss | (4) | 1.7 | (1) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Revenues | (1) | 3.8 | 1.3 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) Available-for- Sale Securities | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Operating expenses | $ (0.6) | $ 0 | $ 0 |
Stockholders' Equity and Nonc83
Stockholders' Equity and Noncontrolling Interests - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at beginning of period | $ 14.7 | ||
Net earnings (loss) attributable to noncontrolling interests | 0.4 | $ 0.5 | $ 0 |
Acquisition of Mevis | 10.2 | ||
Balance at end of period | 3.7 | 14.7 | |
Stockholders' Equity Attributable to Redeemable Noncontrolling Interest | |||
Balance at beginning of period | 0 | 0 | |
Net earnings (loss) attributable to noncontrolling interests | 0.5 | 0 | |
Acquisition of Mevis | 0 | 0 | |
Capital contribution from noncontrolling interest holders | 0 | 0 | |
Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests | 10.4 | 0 | |
Other | (0.6) | 0 | |
Balance at end of period | 10.3 | 0 | 0 |
Noncontrolling Interests | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at beginning of period | 14.7 | 0 | |
Net earnings (loss) attributable to noncontrolling interests | (0.1) | 0.5 | |
Acquisition of Mevis | 0 | 10.2 | |
Capital contribution from noncontrolling interest holders | 0 | 4 | |
Reclassification of noncontrolling interests in MeVis to redeemable noncontrolling interests | (10.4) | 0 | |
Other | (0.5) | 0 | |
Balance at end of period | $ 3.7 | $ 14.7 | $ 0 |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2016USD ($)performance_periodshares | Oct. 02, 2015USD ($)performance_periodshares | Sep. 26, 2014USD ($)shares | Sep. 27, 2013shares | Feb. 28, 2005shares | |
Employee Stock Plans [Line Items] | |||||
Total pre-tax intrinsic value of options exercised | $ | $ 23.8 | $ 51.1 | $ 54.4 | ||
Fair value | $ | 10.2 | 10 | 10.7 | ||
Grant date fair value | $ | 38.4 | 38.1 | 38.7 | ||
Shares vested during the year, fair value | $ | $ 31.7 | 44.5 | 25.4 | ||
Shares withheld for employees minimum withholding taxes at vesting (in shares) | (100,000) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock and restricted stock units | $ | $ (11) | $ (16.3) | $ (8.8) | ||
Purchase period (in months) | 6 months | ||||
Maximum number of shares purchased (in shares) | 7,000,000 | ||||
Number of shares issued (in shares) | 300,000 | 200,000 | |||
Shares issued, value | $ | $ 17.2 | $ 16.3 | |||
Number of shares available for issuance (in shares) | 4,600,000 | 6,700,000 | 8,200,000 | 9,900,000 | |
Stock Options | |||||
Employee Stock Plans [Line Items] | |||||
Unrecognized compensation expense related to outstanding stock awards | $ | $ 10.6 | ||||
Weighted average period unrecognized compensation expense is expected to be recognized (in years) | 1 year 6 months 29 days | ||||
Restricted Stock Restricted Stock Units Deferred Stock Units And Performance Units | |||||
Employee Stock Plans [Line Items] | |||||
Unrecognized compensation expense related to outstanding stock awards | $ | $ 38.6 | ||||
Weighted average period unrecognized compensation expense is expected to be recognized (in years) | 1 year 9 months 7 days | ||||
Employee Stock Purchase Plans | |||||
Employee Stock Plans [Line Items] | |||||
Common stock employee purchase price percentage lower than fair market value | 85.00% | ||||
Third Amended 2005 Plan | |||||
Employee Stock Plans [Line Items] | |||||
Number of shares authorized (in shares) | 25,000,000 | ||||
Award vesting percentage | 33.33% | ||||
Third Amended 2005 Plan | Stock Options | |||||
Employee Stock Plans [Line Items] | |||||
Award expiration period | 7 years | ||||
Shares counted against the available for grant (in shares) | 1 | ||||
Third Amended 2005 Plan | Restricted Stock Units (RSUs) | |||||
Employee Stock Plans [Line Items] | |||||
Period between grant date and retirement date (in years) | 1 year | ||||
Third Amended 2005 Plan | After February 9, 2012 | |||||
Employee Stock Plans [Line Items] | |||||
Counted against available for grant limit (in shares) | 2.6 | ||||
Third Amended 2005 Plan | Beginning In Fiscal 2016 | |||||
Employee Stock Plans [Line Items] | |||||
Maximum payout of shares that could be issued for each performance unit granted (in shares) | 1.75 | ||||
Third Amended 2005 Plan | Beginning In Fiscal 2015 | |||||
Employee Stock Plans [Line Items] | |||||
Maximum payout of shares that could be issued for each performance unit granted (in shares) | 2 | ||||
Third Amended 2005 Plan | Maximum | Restricted Stock And Restricted Stock Unit | |||||
Employee Stock Plans [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Third Amended 2005 Plan | Minimum | Restricted Stock And Restricted Stock Unit | |||||
Employee Stock Plans [Line Items] | |||||
Award vesting period (in years) | 1 year | ||||
Third Amended 2005 Plan | Minimum | Deferred Stock Units | |||||
Employee Stock Plans [Line Items] | |||||
Award vesting period (in years) | 1 year | ||||
Common stock equivalent (in shares) | 1 | ||||
Third Amended 2005 Plan | Tranche One | |||||
Employee Stock Plans [Line Items] | |||||
Award vesting period (in years) | 1 year | ||||
Period between grant date and retirement date (in years) | 1 year | ||||
Third Amended 2005 Plan | Tranche Two | |||||
Employee Stock Plans [Line Items] | |||||
Award vesting period (in years) | 2 years | ||||
Third Amended 2005 Plan | Before Fiscal Year 2015 | |||||
Employee Stock Plans [Line Items] | |||||
Maximum payout of shares that could be issued for each performance unit granted (in shares) | 1.5 | ||||
Third Amended 2005 Plan | Performance Shares | |||||
Employee Stock Plans [Line Items] | |||||
Service period | 3 years | ||||
Third Amended 2005 Plan | Performance Units | |||||
Employee Stock Plans [Line Items] | |||||
Performance period | 3 years | ||||
Third Amended 2005 Plan | Before Fiscal Year 2015 | Performance Shares | |||||
Employee Stock Plans [Line Items] | |||||
Performance period | 3 years | ||||
Third Amended 2005 Plan | Before Fiscal Year 2015 | Performance Shares, Company Performance | |||||
Employee Stock Plans [Line Items] | |||||
Number of performance periods | performance_period | 1 | ||||
Third Amended 2005 Plan | Beginning Fiscal Year 2015 | Performance Shares, Company Performance | |||||
Employee Stock Plans [Line Items] | |||||
Performance period | 1 year | ||||
Third Amended 2005 Plan | Beginning Fiscal Year 2015 | Performance Units | |||||
Employee Stock Plans [Line Items] | |||||
Performance period | 3 years | ||||
Third Amended 2005 Plan | Beginning Fiscal Year 2016 | Performance Shares, Company Performance | |||||
Employee Stock Plans [Line Items] | |||||
Number of performance periods | performance_period | 3 | ||||
Performance period | 1 year | ||||
Employee Stock Purchase Plans | |||||
Employee Stock Plans [Line Items] | |||||
Number of shares available for issuance (in shares) | 5,600,000 |
Employee Stock Plans - Fair Val
Employee Stock Plans - Fair Value with Weighted Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
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 24 days | 4 years 1 month 17 days |
Risk-free interest rate | 1.10% | 1.30% | 1.20% |
Expected volatility | 20.10% | 22.10% | 24.60% |
Expected dividend | 0.00% | 0.00% | 0.00% |
Weighted average fair value at grant date (in dollars per share) | $ 13.71 | $ 18.52 | $ 18.24 |
Employee Stock Purchase Plans | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.30% | 0.10% | 0.10% |
Expected volatility | 17.60% | 12.70% | 12.80% |
Expected dividend | 0.00% | 0.00% | 0.00% |
Weighted average fair value at grant date (in dollars per share) | $ 16.09 | $ 15.87 | $ 14.20 |
Employee Stock Plans - Net Shar
Employee Stock Plans - Net Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | $ 48.3 | $ 46.3 | $ 39.6 |
Income tax benefit for share-based compensation | (14.8) | (14.2) | (12.1) |
Cost of revenues - Product | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 4.2 | 4.7 | 3.3 |
Cost of revenues - Service | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 4.2 | 4.1 | 4.7 |
Research and development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 6.7 | 6.8 | 6.2 |
Selling, general and administrative expenses | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | $ 33.2 | $ 30.7 | $ 25.4 |
Employee Stock Plans - Summary
Employee Stock Plans - Summary the Effect of Recording Pre-Tax Share-Based Compensation Expense for Equity Incentive Awards (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | $ 48.3 | $ 46.3 | $ 39.6 |
Equity Option | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 11.1 | 11.3 | 9.5 |
Restricted Stock Units and Restricted Stock Awards | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 33 | 31.4 | 26.6 |
Employee Stock Purchase Plans | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | $ 4.2 | $ 3.6 | $ 3.5 |
Employee Stock Plans - Summar88
Employee Stock Plans - Summary of Share-Based Awards Available for Grant (Detail) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Shares Available for Grant | |||
Beginning balance (in shares) | 6.7 | 8.2 | 9.9 |
Granted (in shares) | (2.4) | (1.8) | (1.9) |
Canceled or expired (in shares) | 0.3 | 0.3 | 0.2 |
Ending balance (in shares) | 4.6 | 6.7 | 8.2 |
Employee Stock Plans - Activity
Employee Stock Plans - Activity Under Employee Stock Plans (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Number of Shares | |||
Beginning balance (in shares) | 2.5 | 3.3 | 4.5 |
Granted (in shares) | 0.8 | 0.6 | 0.6 |
Canceled, expired or forfeited (in shares) | 0 | 0 | (0.1) |
Exercised (in shares) | (0.7) | (1.4) | (1.7) |
Ending balance (in shares) | 2.6 | 2.5 | 3.3 |
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 72.58 | $ 60.53 | $ 53.02 |
Granted (in dollars per share) | 75.97 | 92.29 | 83.50 |
Canceled, expired or forfeited (in dollars per share) | 85.29 | 77.53 | 72.35 |
Exercised (in dollars per share) | 57.23 | 52.83 | 49.01 |
Ending balance (in dollars per share) | $ 78.25 | $ 72.58 | $ 60.53 |
Number of Shares (in shares) | 1.4 | 1.6 | |
Weighted Average Exercise Price (in dollars per share) | $ 76.31 | $ 62.97 |
Employee Stock Plans - Options
Employee Stock Plans - Options Outstanding and Exercisable Under Employee Stock Plans (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | ||||
Number of Shares (in shares) | 2.6 | 2.5 | 3.3 | 4.5 |
Weighted Average Remaining Contractual Term (in years) | 4 years 8 months 27 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 78.25 | $ 72.58 | $ 60.53 | $ 53.02 |
Aggregate Intrinsic Value | $ 54.4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Number of Shares (in shares) | 1.4 | 1.6 | ||
Weighted Average Remaining Contractual Term (in years) | 3 years 7 months 24 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 76.31 | $ 62.97 | ||
Aggregate Intrinsic Value | $ 31.6 | |||
Closing price (in dollars per share) | $ 99.53 | |||
$50.66 – $57.90 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | ||||
Range of Exercise Prices, Lower (in dollars per share) | 50.66 | |||
Range of Exercise Prices, Upper (in dollars per share) | $ 57.90 | |||
Number of Shares (in shares) | 0.3 | |||
Weighted Average Remaining Contractual Term (in years) | 1 year 4 months 21 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 55.47 | |||
Aggregate Intrinsic Value | $ 11.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Number of Shares (in shares) | 0.3 | |||
Weighted Average Remaining Contractual Term (in years) | 1 year 4 months 21 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 55.47 | |||
Aggregate Intrinsic Value | $ 11.5 | |||
$64.01 – $72.26 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | ||||
Range of Exercise Prices, Lower (in dollars per share) | $ 64.01 | |||
Range of Exercise Prices, Upper (in dollars per share) | $ 72.26 | |||
Number of Shares (in shares) | 0.3 | |||
Weighted Average Remaining Contractual Term (in years) | 2 years 11 months 12 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 68.59 | |||
Aggregate Intrinsic Value | $ 10.7 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Number of Shares (in shares) | 0.3 | |||
Weighted Average Remaining Contractual Term (in years) | 2 years 11 months 12 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 68.59 | |||
Aggregate Intrinsic Value | $ 10.7 | |||
$74.28 – $81.90 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | ||||
Range of Exercise Prices, Lower (in dollars per share) | $ 74.28 | |||
Range of Exercise Prices, Upper (in dollars per share) | $ 81.9 | |||
Number of Shares (in shares) | 0.8 | |||
Weighted Average Remaining Contractual Term (in years) | 6 years 4 months 6 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 75.96 | |||
Aggregate Intrinsic Value | $ 19.6 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Number of Shares (in shares) | 0 | |||
Weighted Average Remaining Contractual Term (in years) | 4 years 1 month 21 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 74.28 | |||
Aggregate Intrinsic Value | $ 0.2 | |||
$83.70 – $92.65 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | ||||
Range of Exercise Prices, Lower (in dollars per share) | $ 83.7 | |||
Range of Exercise Prices, Upper (in dollars per share) | $ 92.65 | |||
Number of Shares (in shares) | 1.2 | |||
Weighted Average Remaining Contractual Term (in years) | 4 years 10 months 21 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 88.28 | |||
Aggregate Intrinsic Value | $ 12.6 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Number of Shares (in shares) | 0.8 | |||
Weighted Average Remaining Contractual Term (in years) | 4 years 9 months 7 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 87.21 | |||
Aggregate Intrinsic Value | $ 9.2 |
Employee Stock Plans - Activi91
Employee Stock Plans - Activity for Restricted Stock Restricted Stock Units and Performance Units (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Number of Shares | |||
Beginning balance (in shares) | 0.9 | 1.1 | 1 |
Granted (in shares) | 0.5 | 0.4 | 0.5 |
Vested (in shares) | (0.4) | (0.5) | (0.3) |
Cancelled or expired (in shares) | 0 | (0.1) | (0.1) |
Ending balance (in shares) | 1 | 0.9 | 1.1 |
Weighted Average Grant-Date Fair Value | |||
Beginning balance (in dollars per share) | $ 84.11 | $ 72.08 | $ 64.36 |
Granted (in dollars per share) | 78.11 | 93.01 | 82.51 |
Vested (in dollars per share) | 80.88 | 67.93 | 63.70 |
Canceled or expired (in dollars per share) | 81.94 | 68.51 | 70.69 |
Ending balance (in dollars per share) | $ 82.51 | $ 84.11 | $ 72.08 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Net Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings attributable to Varian | $ 117.5 | $ 98.8 | $ 97 | $ 89 | $ 98.7 | $ 113.5 | $ 106 | $ 93.3 | $ 402.3 | $ 411.5 | $ 403.7 |
Weighted average shares outstanding - basic (in shares) | 95.4 | 99.7 | 104 | ||||||||
Dilutive effect of potential common shares (in shares) | 0.6 | 0.9 | 1.3 | ||||||||
Weighted average shares outstanding - diluted (in shares) | 96 | 100.6 | 105.3 | ||||||||
Net earnings per share - basic (in dollars per share) | $ 1.25 | $ 1.04 | $ 1.01 | $ 0.92 | $ 1 | $ 1.14 | $ 1.06 | $ 0.93 | $ 4.22 | $ 4.13 | $ 3.88 |
Net earnings per share - diluted (in dollars per share) | $ 1.24 | $ 1.04 | $ 1.01 | $ 0.91 | $ 0.99 | $ 1.13 | $ 1.05 | $ 0.92 | $ 4.19 | $ 4.09 | $ 3.83 |
Anti-dilutive employee shared based awards, excluded (in shares) | 1.6 | 1 | 0.6 |
Taxes on Earnings - Schedule of
Taxes on Earnings - Schedule of Taxes on Earnings (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Current provision: | |||
Federal | $ 89.4 | $ 52.8 | $ 86.6 |
State and local | 10.4 | 8.4 | 6.1 |
Foreign | 77.8 | 76.1 | 62.2 |
Total current | 177.6 | 137.3 | 154.9 |
Deferred provision (benefit): | |||
Federal | (13.6) | 2.5 | 5 |
State and local | (1.2) | (0.6) | (0.1) |
Foreign | (9.1) | 3.5 | 11 |
Total deferred | (23.9) | 5.4 | 15.9 |
Taxes on earnings | $ 153.7 | $ 142.7 | $ 170.8 |
Taxes on Earnings - Schedule 94
Taxes on Earnings - Schedule of Earnings Before Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 187 | $ 223.9 | $ 173.9 |
Foreign | 369.4 | 330.8 | 400.6 |
Earnings before taxes | $ 556.4 | $ 554.7 | $ 574.5 |
Taxes on Earnings - Schedule 95
Taxes on Earnings - Schedule of Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 0.70% | 0.80% | 0.80% |
Non-U.S. income taxed at different rates, net | (7.30%) | (9.20%) | (5.20%) |
Other | (0.80%) | (0.90%) | (0.90%) |
Effective tax rate | 27.60% | 25.70% | 29.70% |
Taxes on Earnings - Schedule 96
Taxes on Earnings - Schedule of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred revenues | $ 30.2 | $ 28.2 |
Deferred compensation | 38.9 | 33.5 |
Product warranty | 11.9 | 10.5 |
Inventory adjustments | 21.5 | 20.9 |
Share-based compensation | 22.3 | 22.8 |
Environmental reserve | 4.2 | 4.3 |
Accruals and reserves | 15.7 | 14.3 |
Net operating loss carryforwards | 106.6 | 92.6 |
Other | 39.1 | 31.7 |
Total deferred tax assets, gross | 290.4 | 258.8 |
Valuation allowance | (79.6) | (69.7) |
Total deferred tax assets | 210.8 | 189.1 |
Tax-deductible goodwill | (24.6) | (23.3) |
Property, plant and equipment | (25.1) | (15.5) |
Unremitted earnings of foreign subsidiaries | (20.2) | (27.9) |
Other | (28.6) | (34.8) |
Total deferred tax liabilities | (98.5) | (101.5) |
Net deferred tax assets | 112.3 | 87.6 |
Deferred tax assets | 138.9 | 119.4 |
Deferred tax liabilities (included in other long-term liabilities) | $ (26.6) | $ (31.8) |
Taxes on Earnings - Additional
Taxes on Earnings - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Income Tax [Line Items] | ||||
Cumulative undistributed earnings of non-U.S subsidiaries | $ 1,947.8 | |||
Increase (decrease) in valuation allowance | 9.9 | $ 2.2 | $ 6.8 | |
Unrecognized tax benefits | 40.7 | 39.5 | $ 49.6 | $ 37 |
Amount that would affect the effective tax rate | 35.1 | |||
Accrued interest and penalties related to unrecognized tax benefits | 8 | 7.1 | ||
Net expense (benefit) related to interest and penalties was included in taxes on earnings | 0.8 | $ (0.5) | ||
Foreign Tax Authority | ||||
Income Tax [Line Items] | ||||
Additional deferred taxes liabilities if earnings were not considered to be reinvested indefinitely | 504.3 | |||
Net operating loss carry forwards | 333.1 | |||
Amount unavailable to the company under local loss utilization | 31.2 | |||
Internal Revenue Service (IRS) | Minimum | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards | 10.7 | |||
Federal | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards subject to an annual limitation | 1.3 | |||
State and Local Jurisdiction | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards | $ 9.1 |
Taxes on Earnings - Schedule 98
Taxes on Earnings - Schedule of Income Taxes Paid (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Income Taxes Paid Net [Line Items] | |||
Income taxes paid | $ 155.9 | $ 119.8 | $ 140.8 |
Federal | |||
Income Taxes Paid Net [Line Items] | |||
Income taxes paid | 78.3 | 57.1 | 66.2 |
State | |||
Income Taxes Paid Net [Line Items] | |||
Income taxes paid | 5 | 7.2 | 7.3 |
Foreign | |||
Income Taxes Paid Net [Line Items] | |||
Income taxes paid | $ 72.6 | $ 55.5 | $ 67.3 |
Taxes on Earnings - Schedule 99
Taxes on Earnings - Schedule of Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits balance–beginning of fiscal year | $ 39.5 | $ 49.6 | $ 37 |
Additions based on tax positions related to a prior year | 0.6 | 0 | 10.7 |
Reductions based on tax positions related to a prior year | (0.8) | (9.9) | (0.3) |
Additions based on tax positions related to the current year | 6.6 | 5.7 | 8.2 |
Settlements | 0 | 0 | (0.4) |
Reductions resulting from the expiration of the applicable statute of limitations | (5.2) | (5.9) | (5.6) |
Unrecognized tax benefits balance–end of fiscal year | $ 40.7 | $ 39.5 | $ 49.6 |
Business Combinations - Conside
Business Combinations - Consideration (Details) - Candela $ in Millions | 1 Months Ended |
Sep. 30, 2016USD ($) | |
Business Acquisition [Line Items] | |
Cash paid | $ 13 |
Net non-cash transferred | 21.7 |
Escrow payable | 0.5 |
Total purchase consideration | $ 35.2 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015 | Aug. 31, 2015 | Apr. 30, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Business Acquisition [Line Items] | ||||||||
Other payments | $ 3.1 | $ 3.3 | $ 0.7 | |||||
Karl Otto | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 27 | |||||||
Claymount Investments B.V. | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 58 | |||||||
Mevis | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 25.5 | |||||||
Percentage of voting interests acquired | 73.50% | |||||||
Transpire Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 16 | |||||||
Total purchase price | 19.3 | |||||||
Liabilities incurred | $ 3.3 | |||||||
Velocity Medical Solutions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 17 | |||||||
Total purchase price | 19.9 | |||||||
Cash consideration held back | 2.6 | |||||||
Liabilities incurred | $ 2.9 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | Apr. 30, 2015 | Sep. 26, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 294.7 | $ 283.5 | $ 240.6 | |||||
Candela | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life (in years) | 6 years 2 months | |||||||
Net assumed liabilities | $ (1.1) | |||||||
Finite-lived intangible assets | 24.9 | |||||||
Goodwill | 11.4 | |||||||
Fair value of net assets | $ 35.2 | |||||||
Karl Otto | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life (in years) | 8 years 3 months 18 days | |||||||
Finite-lived intangible assets | $ 8.3 | |||||||
Indefinite-lived intangible assets — IPR&D | 8.8 | |||||||
Goodwill | 9.9 | |||||||
Fair value of net assets | $ 27 | |||||||
Claymount Investments B.V. | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life (in years) | 6 years | |||||||
Net tangible assets | $ 11.3 | |||||||
Finite-lived intangible assets | 16.2 | |||||||
Goodwill | 30.5 | |||||||
Fair value of net assets | 58 | |||||||
Cash and cash equivalents | $ 1.9 | |||||||
Mevis | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life (in years) | 5 years 4 months 24 days | |||||||
Net tangible assets | $ 21.7 | |||||||
Finite-lived intangible assets | 5.8 | |||||||
Goodwill | 8.2 | |||||||
Fair value of net assets | 35.7 | |||||||
Less: Noncontrolling interests | 10.2 | |||||||
Net assets acquired | 25.5 | |||||||
Cash and cash equivalents | $ 13.9 | |||||||
Transpire Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life (in years) | 6 years 1 month 6 days | |||||||
Net assumed liabilities | $ (0.1) | |||||||
Finite-lived intangible assets | 8.7 | |||||||
Indefinite-lived intangible assets — IPR&D | 2 | |||||||
Goodwill | 8.7 | |||||||
Fair value of net assets | 19.3 | |||||||
Velocity Medical Solutions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life (in years) | 6 years 1 month 6 days | |||||||
Net assumed liabilities | $ (0.5) | |||||||
Finite-lived intangible assets | 10.6 | |||||||
Goodwill | 9.8 | |||||||
Fair value of net assets | $ 19.9 | |||||||
Oncology Systems | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 170.2 | $ 158.8 | $ 148.3 | |||||
Oncology Systems | Transpire Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | 6 | |||||||
Goodwill | 5.9 | |||||||
Security And Inspection Products Reporting Unit | Transpire Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | 2.7 | |||||||
Goodwill | $ 2.8 |
VPT Loans - Schedule of VPT Loa
VPT Loans - Schedule of VPT Loans (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 02, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available-for-sale securities | $ 95.3 | $ 93 |
Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
LT Notes | 59.2 | 30.9 |
Commitment | 11.4 | 95.6 |
NYPC loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitment | 0 | 72.8 |
NYPC loan | Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
LT Notes | 18.5 | 18.7 |
MPTC loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitment | 11.4 | 22.8 |
MPTC loan | Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
LT Notes | 40.7 | 12.2 |
CPTC loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitment | 1.1 | 0 |
Short-term Investments | CPTC loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available-for-sale securities | 95.3 | |
Other Assets | CPTC loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available-for-sale securities | 83.9 | |
Available-for-sale Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available-for-sale securities | 95.3 | 83.9 |
Commitment | $ 1.1 | $ 0 |
VPT Loans - NYPC Loan (Details)
VPT Loans - NYPC Loan (Details) - USD ($) | Jul. 31, 2015 | Jun. 30, 2016 | Sep. 30, 2016 |
NYPC loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 17,400,000 | ||
NYPC loan | Notes Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commitment | $ 91,500,000 | ||
NYPC loan | Senior First Lien Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commitment | $ 73,000,000 | ||
Term (in years) | 6 years | ||
State rate (as a percent) | 9.00% | ||
Principal | $ 10,500,000 | ||
NYPC loan | Senior Subordinated Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commitment | $ 18,500,000 | ||
State rate (as a percent) | 13.50% | ||
Deutsche Bank | Senior First Lien Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds | $ 8,300,000 | ||
Discount | 3.00% | ||
Notes Receivable | NYPC loan | Senior Subordinated Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term (in years) | 6 years 6 months | ||
Selling, general and administrative expenses | Deutsche Bank | Senior First Lien Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impairment on sale of notes receivable | $ 2,200,000 |
VPT Loans - MPTC Loan (Details)
VPT Loans - MPTC Loan (Details) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 23, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Oct. 02, 2015USD ($) | Sep. 26, 2014USD ($) | May 31, 2015USD ($)installment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Payments to Acquire Notes Receivable | $ 21,700,000 | $ 23,700,000 | $ 5,500,000 | |||
Notes Receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LT Notes | $ 59,200,000 | 59,200,000 | 30,900,000 | |||
MPTC loan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unbilled receivables | 9,200,000 | $ 9,200,000 | 28,600,000 | |||
MPTC loan | Notes Receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Commitment | $ 35,000,000 | |||||
Payments to Acquire Notes Receivable | $ 11,400,000 | |||||
Total number of installments | installment | 3 | |||||
State rate (as a percent) | 12.00% | 12.00% | ||||
LT Notes | $ 40,700,000 | $ 40,700,000 | $ 12,200,000 | |||
MPTC loan | Roll Over Loan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross amount | $ 12,200,000 | |||||
Accrued interest | 2,200,000 | |||||
LT Notes | $ 10,000,000 | |||||
Reclassification From Long-Term Accounts Receivable In June 2016 | MPTC loan | Notes Receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
State rate (as a percent) | 15.00% | 15.00% | ||||
LT Notes | $ 17,100,000 | $ 17,100,000 | ||||
Subsequent Event | MPTC loan | Notes Receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Payments to Acquire Notes Receivable | $ 11,400,000 |
VPT Loans - CPTC Loans (Details
VPT Loans - CPTC Loans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2016 | Oct. 02, 2015 | Jun. 30, 2014 | Sep. 30, 2011 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | $ 95.3 | $ 93 | ||
Available-for-sale Securities: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | $ 95.3 | 83.9 | ||
CPTC loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
CPTC loan facility, amortization period over which monthly payments are calculated after January 1, 2015 | 15 years | |||
Accounts receivable | $ 32.6 | 25.2 | ||
CPTC loans | LIBOR | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
CPTC loan facility, interest rate margin (as a percent) | 7.00% | |||
CPTC loans | Tranche C Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum commitment | $ 9.7 | |||
CPTC loans | Varian Medical Systems, Inc. | Tranche C Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum commitment | $ 4.4 | |||
CPTC loans | Available-for-sale Securities: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
CPTC loan facility, minimum interest rate during initial term (as a percent) | 9.00% | |||
CPTC loans | Available-for-sale Securities: | Tranche A loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum borrowing capacity | $ 165.3 | |||
CPTC loans | Available-for-sale Securities: | Varian Medical Systems, Inc. | Tranche A loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum commitment | $ 70.3 | $ 115.3 | ||
Significant sales | 38.1 | |||
CPTC loans | Available-for-sale Securities: | Varian Medical Systems, Inc. | Tranche B loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum commitment | 10 | |||
CPTC loans | Available-for-sale Securities: | J.P. Morgan | Tranche A loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Sale of portion of commitment | $ 45 | |||
CPTC loans | Short-term Investments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | $ 95.3 | |||
CPTC loans | Short-term Investments | Tranche A loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | 80.5 | |||
CPTC loans | Short-term Investments | Tranche B loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | 11.4 | |||
CPTC loans | Short-term Debt | Tranche C Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | $ 3.4 | |||
CPTC loans | Other Assets | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | 83.9 | |||
CPTC loans | Other Assets | Tranche A loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | 73.5 | |||
CPTC loans | Other Assets | Tranche B loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available-for-sale securities | $ 10.4 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - segment | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
JAPAN | Sales Revenue, Segment | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenues in Japan of the total foreign revenues | 11.00% | 11.00% | 13.00% |
Segment Information - Operating
Segment Information - Operating Results Information for Each Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 912.5 | $ 789.4 | $ 758.8 | $ 757.1 | $ 817.8 | $ 784 | $ 759.4 | $ 737.9 | $ 3,217.8 | $ 3,099.1 | $ 3,049.8 |
Operating Earnings | 550.8 | 549 | 571.2 | ||||||||
Depreciation & Amortization | 79.8 | 68.5 | 62.5 | ||||||||
Total Assets | 3,816 | 3,578.7 | 3,816 | 3,578.7 | 3,338.7 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Earnings | (61.5) | (36.5) | (41.5) | ||||||||
Depreciation & Amortization | 19.6 | 20.7 | 22 | ||||||||
Total Assets | 1,367 | 1,314.6 | 1,367 | 1,314.6 | 1,314.4 | ||||||
Operating Segments | Oncology Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,457.1 | 2,344 | 2,344.2 | ||||||||
Operating Earnings | 550.5 | 485.4 | 495.5 | ||||||||
Depreciation & Amortization | 33.8 | 27.2 | 24.8 | ||||||||
Total Assets | 1,491.2 | 1,412.5 | 1,491.2 | 1,412.5 | 1,314.1 | ||||||
Operating Segments | Imaging Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 597.6 | 611.2 | 660.2 | ||||||||
Operating Earnings | 110.7 | 131.3 | 169.9 | ||||||||
Depreciation & Amortization | 19 | 15.7 | 14.7 | ||||||||
Total Assets | 587.9 | 555.4 | 587.9 | 555.4 | 431.6 | ||||||
Operating Segments | Total reportable segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,054.7 | 2,955.2 | 3,004.4 | ||||||||
Operating Earnings | 661.2 | 616.7 | 665.4 | ||||||||
Depreciation & Amortization | 52.8 | 42.9 | 39.5 | ||||||||
Total Assets | 2,079.1 | 1,967.9 | 2,079.1 | 1,967.9 | 1,745.7 | ||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 163.1 | 143.9 | 45.4 | ||||||||
Operating Earnings | (48.9) | (31.2) | (52.7) | ||||||||
Depreciation & Amortization | 7.4 | 4.9 | 1 | ||||||||
Total Assets | $ 369.9 | $ 296.2 | $ 369.9 | $ 296.2 | $ 278.6 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Results to Companys Earnings from Continuing Operations before Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Segment Reporting Information [Line Items] | |||
Earnings from operations before taxes | $ 556.4 | $ 554.7 | $ 574.5 |
Interest income, net | $ 5.6 | $ 5.7 | $ 3.3 |
Segment Information - Geographi
Segment Information - Geographic Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 912.5 | $ 789.4 | $ 758.8 | $ 757.1 | $ 817.8 | $ 784 | $ 759.4 | $ 737.9 | $ 3,217.8 | $ 3,099.1 | $ 3,049.8 |
Property, plant and equipment, net | 379.2 | 379.2 | 379.2 | 379.2 | 338 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,352.8 | 1,418.3 | 1,290.1 | ||||||||
Property, plant and equipment, net | 286.7 | 292.6 | 286.7 | 292.6 | 262.7 | ||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,865 | 1,680.8 | 1,759.7 | ||||||||
Property, plant and equipment, net | $ 92.5 | $ 86.6 | $ 92.5 | $ 86.6 | $ 75.3 |
Quarterly Financial Data - Sche
Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 912.5 | $ 789.4 | $ 758.8 | $ 757.1 | $ 817.8 | $ 784 | $ 759.4 | $ 737.9 | $ 3,217.8 | $ 3,099.1 | $ 3,049.8 |
Gross margin | 388 | 346.4 | 317.2 | 309.7 | 318.2 | 315 | 322.5 | 327 | 1,361.3 | 1,282.7 | 1,301.7 |
Net earnings attributable to Varian | $ 117.5 | $ 98.8 | $ 97 | $ 89 | $ 98.7 | $ 113.5 | $ 106 | $ 93.3 | $ 402.3 | $ 411.5 | $ 403.7 |
Net earnings per share – basic: (in dollars per share) | $ 1.25 | $ 1.04 | $ 1.01 | $ 0.92 | $ 1 | $ 1.14 | $ 1.06 | $ 0.93 | $ 4.22 | $ 4.13 | $ 3.88 |
Net earnings per share – diluted: (in dollars per share) | $ 1.24 | $ 1.04 | $ 1.01 | $ 0.91 | $ 0.99 | $ 1.13 | $ 1.05 | $ 0.92 | $ 4.19 | $ 4.09 | $ 3.83 |
Separation costs | $ 11.5 | $ 5.4 | $ 16.9 | $ 0 | $ 0 |
Valuation and Qualifying Acc112
Valuation and Qualifying Accounts - Schedule II Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 26, 2014 | |
Allowance for doubtful accounts receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 21.2 | $ 20.3 | $ 14.7 |
Charged to Bad Debt Expense | 3.5 | 1.1 | 7.2 |
Write-offs Adjustments Charged to Allowance | (0.3) | (0.2) | (1.6) |
Balance at End of Period | 24.4 | 21.2 | 20.3 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 69.7 | 67.5 | 60.7 |
Increases | 12.2 | 4.7 | 8.3 |
Deductions | (2.3) | (2.5) | (1.5) |
Balance at End of Period | $ 79.6 | $ 69.7 | $ 67.5 |