Cover Page
Cover Page - shares | 3 Months Ended | 6 Months Ended | |
Mar. 28, 2020 | Mar. 28, 2020 | Apr. 23, 2020 | |
Cover [Abstract] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Document Transition Report | false | ||
Document Quarterly Report | true | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Postal Zip Code | 01752 | ||
Entity File Number | 1-36214 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 28, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | Q2 | ||
Entity Registrant Name | HOLOGIC, INC | ||
Entity Central Index Key | 0000859737 | ||
Current Fiscal Year End Date | --09-28 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 258,205,678 | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
City Area Code | (508) | ||
Local Phone Number | 263-2900 | ||
Entity Tax Identification Number | 04-2902449 | ||
Entity Address, Address Line One | 250 Campus Drive, | ||
Entity Address, City or Town | Marlborough, | ||
Entity Address, State or Province | MA | ||
Trading Symbol | HOLX | ||
Security Exchange Name | NASDAQ |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Revenues: | ||||
Product | $ 623.6 | $ 667.8 | $ 1,322.9 | $ 1,350.9 |
Service and other | 132.5 | 150.6 | 283.7 | 298.2 |
Revenues | 756.1 | 818.4 | 1,606.6 | 1,649.1 |
Costs of revenues: | ||||
Product | 223.3 | 232.9 | 460.8 | 465 |
Amortization, Cost of Goods Sold | 62.9 | 80.4 | 126.5 | 161.4 |
Impairment of intangible assets and equipment | 0 | 374.6 | 25.8 | 374.6 |
Service and other | 74.1 | 88.1 | 163.9 | 171.6 |
Gross profit | 395.8 | 42.4 | 829.6 | 476.5 |
Operating expenses: | ||||
Research and development | 49.3 | 57.3 | 110.4 | 110.5 |
Selling and marketing | 110.6 | 133.5 | 255.4 | 279.5 |
General and administrative | 66.5 | 89.9 | 155.1 | 168.5 |
Amortization of acquired intangible assets | 10.1 | 14.1 | 19.2 | 28.2 |
Impairment of intangible assets and equipment | 0 | 69.2 | 4.4 | 69.2 |
Restructuring and divestiture charges | 2.9 | 1.6 | 3.9 | 3.3 |
Operating expenses | 239.4 | 365.6 | 548.4 | 659.2 |
Income (loss) from operations | 156.4 | (323.2) | 281.2 | (182.7) |
Interest income | 1.3 | 0.8 | 3.5 | 2.1 |
Interest expense | (31.3) | (34.8) | (64.1) | (70.9) |
Debt extinguishment loss | 0 | 0 | 0 | (0.8) |
Other (expense) income, net | (7.5) | 3.5 | (4.2) | 2.9 |
Income (loss) before income taxes | 118.9 | (353.7) | 216.4 | (249.4) |
Provision (benefit) for income taxes | 24.1 | (81.1) | (264.3) | (75.4) |
Net income (loss) | 94.8 | (272.6) | 480.7 | (174) |
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Redeemable | (1.5) | (1.8) | 0 | |
Net income | $ 96.3 | $ (272.6) | $ 482.5 | $ (174) |
Net income (loss) per common share attributable to Hologic: | ||||
Basic (in usd per share) | $ 0.37 | $ (1.01) | $ 1.82 | $ (0.64) |
Diluted (in usd per share) | $ 0.36 | $ (1.01) | $ 1.81 | $ (0.64) |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 263,238 | 269,235 | 265,566 | 269,913 |
Diluted (in shares) | 264,506 | 269,235 | 267,114 | 269,913 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 94.8 | $ (272.6) | $ 480.7 | $ (174) |
Changes in foreign currency translation adjustment | (5.4) | 2.4 | 2.9 | (0.8) |
Changes in value of hedged interest rate swaps and interest rate caps, net of tax of ($8.1) and ($6.4) for the three and six months ended March 28, 2020 and $0.3 and $0.8 for the three and six months ended March 30, 2019. | (25.2) | (1.5) | (21.2) | (5.4) |
Loss reclassified from accumulated other comprehensive loss to the statements of operations | 0.4 | 0.5 | 1.7 | 1.2 |
Other comprehensive income (loss) | (30.2) | 1.4 | (16.6) | (5) |
Comprehensive income (loss) | 64.6 | (271.2) | 464.1 | (179) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 1.5 | 0 | 1.8 | 0 |
Comprehensive Income | $ 66.1 | $ (271.2) | $ 465.9 | $ (179) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Changes in unrealized holding gains and losses on available-for-sale securities. tax | $ 0 | |||
Changes in pension plans, tax | 0 | |||
Changes in value of hedged interest rate caps, tax | $ (8.1) | $ 0.3 | $ (6.4) | $ 0.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Current assets: | ||
Cash less assets held for sale | $ 799.8 | $ 601.8 |
Accounts receivable, less reserves of $16.0 and $17.8, respectively | 597.2 | 648.7 |
Inventories | 401.3 | 444.9 |
Prepaid Income Taxes-Current | 62.6 | 34.9 |
Prepaid expenses and other current assets | 75.7 | 62.8 |
Total current assets | 1,936.6 | 1,793.1 |
Property, plant and equipment, net | 445.3 | 470.9 |
Intangible assets, net | 1,328.8 | 1,459.8 |
Goodwill | 2,592 | 2,563.7 |
Other assets | 519.1 | 154.6 |
Total assets | 6,821.8 | 6,442.1 |
Current liabilities: | ||
Current portion of long-term debt | 806.1 | 271.4 |
Accounts payable | 134.4 | 186.5 |
Accrued expenses | 366 | 430.9 |
Deferred revenue | 172.6 | 179.5 |
Current portion of capital lease obligations | 1.8 | 1.8 |
Total liabilities and stockholders’ equity | 6,821.8 | 6,442.1 |
Total current liabilities | 1,480.9 | 1,070.1 |
Long-term debt, net of current portion | 2,749.3 | 2,783.6 |
Finance lease obligation - long term (capital lease obligation in 2019) | 18.4 | 19.2 |
Deferred Income Tax Liabilities, Net | 235.9 | 275.3 |
Deferred revenue | 15 | 15.8 |
Other long-term liabilities | 231.1 | 162.4 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value – 1,623 shares authorized; 0 shares issued | 0 | 0 |
Common stock, $0.01 par value – 750,000 shares authorized; 294,142 and 292,323 shares issued, respectively | 2.9 | 2.9 |
Additional paid-in-capital | 5,827.6 | 5,769.8 |
Accumulated deficit | (2,206) | (2,688.7) |
Treasury stock, at cost – 35,941 and 24,638 shares, respectively | (1,479.5) | (926) |
Accumulated other comprehensive loss | (58.9) | (42.3) |
Total Hologic's stockholders’ equity | 2,086.1 | 2,115.7 |
Stockholders' Equity Attributable to Noncontrolling Interest | 5.1 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 2,091.2 | $ 2,115.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 16 | $ 17.8 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,623,000 | 1,623,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, issued (in shares) | 294,142,000 | 292,323,000 |
Treasury stock (in shares) | 35,941,000 | 24,638,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Total | Treasury Stock | Share Repurchase ProgramTreasury Stock |
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | $ 0 | ||||||
Balance (in shares) at Sep. 29, 2018 | 289,900 | 19,812 | |||||
Beginning balance at Sep. 29, 2018 | 2,428,800 | $ 2,900 | $ 5,671,300 | $ (2,494,000) | $ (25,500) | $ (725,900) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 373 | ||||||
Exercise of stock options | 9,100 | 9,100 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 575 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (11,600) | (11,600) | |||||
Stock-based compensation expense | 17,100 | 17,100 | |||||
Net income (loss) | 98,600 | ||||||
Other comprehensive income activity | (6,400) | (6,400) | |||||
Repurchase of common stock (in shares) | 3,712 | ||||||
Repurchase of common stock | (150,100) | $ (150,100) | |||||
Balance (in shares) at Dec. 29, 2018 | 290,848 | 23,524 | |||||
Ending balance at Dec. 29, 2018 | 2,394,400 | $ 2,900 | 5,685,900 | (2,386,500) | (31,900) | $ (876,000) | |
Balance (in shares) at Sep. 29, 2018 | 289,900 | 19,812 | |||||
Beginning balance at Sep. 29, 2018 | 2,428,800 | $ 2,900 | 5,671,300 | (2,494,000) | (25,500) | $ (725,900) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (174,000) | ||||||
Balance (in shares) at Mar. 30, 2019 | 291,561 | 23,524 | |||||
Ending balance at Mar. 30, 2019 | 2,159,800 | $ 2,900 | 5,722,500 | (2,659,100) | (30,500) | $ (876,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Redeemable | 0 | ||||||
Net income | (174,000) | ||||||
Accelerated share repurchase agreement | 0 | ||||||
Payments to Noncontrolling Interests | 0 | ||||||
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | 0 | ||||||
Accounting standard transition adjustment | Accounting Standards Update 2014-09 | 6,400 | 6,400 | |||||
Accounting standard transition adjustment | Accounting Standards Update 2016-16 | (2,500) | (2,500) | |||||
Balance (in shares) at Dec. 29, 2018 | 290,848 | 23,524 | |||||
Beginning balance at Dec. 29, 2018 | 2,394,400 | $ 2,900 | 5,685,900 | (2,386,500) | (31,900) | $ (876,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 454 | ||||||
Exercise of stock options | 11,600 | 11,600 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 33 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (400) | (400) | |||||
Common stock issued under the employee stock purchase plan (in shares) | 226 | ||||||
Common stock issued under the employee stock purchase plan | 7,900 | 7,900 | |||||
Stock-based compensation expense | 17,500 | 17,500 | |||||
Net income (loss) | (272,600) | ||||||
Other comprehensive income activity | 1,400 | 1,400 | |||||
Balance (in shares) at Mar. 30, 2019 | 291,561 | 23,524 | |||||
Ending balance at Mar. 30, 2019 | 2,159,800 | $ 2,900 | 5,722,500 | (2,659,100) | (30,500) | $ (876,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | (272,600) | ||||||
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | 0 | ||||||
Exercise of stock options (in shares) | 108 | ||||||
Exercise of stock options | 3,100 | 3,100 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 21 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (500) | (500) | |||||
Stock-based compensation expense | 13,900 | 13,900 | |||||
Net income (loss) | 93,900 | ||||||
Other comprehensive income activity | (3,700) | (3,700) | |||||
Repurchase of common stock (in shares) | 1,114 | ||||||
Repurchase of common stock | (50,000) | $ (50,000) | |||||
Balance (in shares) at Jun. 29, 2019 | 291,690 | 24,638 | |||||
Ending balance at Jun. 29, 2019 | 2,216,500 | $ 2,900 | 5,739,000 | (2,565,200) | (34,200) | $ (926,000) | |
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 369 | ||||||
Exercise of stock options | 9,000 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 16 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (300) | ||||||
Common stock issued under the employee stock purchase plan (in shares) | 248 | ||||||
Common stock issued under the employee stock purchase plan | 8,600 | ||||||
Stock-based compensation expense | 13,500 | ||||||
Net income (loss) | (123,500) | ||||||
Other comprehensive income activity | (8,100) | ||||||
Balance (in shares) at Sep. 28, 2019 | 292,323 | 24,638 | |||||
Ending balance at Sep. 28, 2019 | 2,115,700 | $ 2,900 | 5,769,800 | (2,688,700) | (42,300) | $ (926,000) | |
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,115,700 | ||||||
Noncontrolling Interest, Increase from Business Combination | 8,600 | ||||||
Exercise of stock options (in shares) | 540 | ||||||
Exercise of stock options | 13,800 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 476 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (10,900) | ||||||
Stock-based compensation expense | 18,100 | ||||||
Net income (loss) | 385,800 | ||||||
Other comprehensive income activity | 13,600 | ||||||
Repurchase of common stock (in shares) | 1,545 | 3,279 | |||||
Repurchase of common stock | (80,900) | $ (80,900) | $ 164,000 | ||||
ASR portion flowing through APIC | $ (41,000) | ||||||
Balance (in shares) at Dec. 28, 2019 | 293,339 | 29,462 | |||||
Ending balance at Dec. 28, 2019 | $ 2,900 | 5,749,800 | (2,302,300) | (28,700) | $ (1,170,900) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Redeemable | (300) | ||||||
Net income | 386,100 | ||||||
Accelerated share repurchase agreement | (205,000) | ||||||
Payments to Noncontrolling Interests | (1,400) | ||||||
Balance (in shares) at Sep. 28, 2019 | 292,323 | 24,638 | |||||
Beginning balance at Sep. 28, 2019 | 2,115,700 | $ 2,900 | 5,769,800 | (2,688,700) | (42,300) | $ (926,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 480,700 | ||||||
Balance (in shares) at Mar. 28, 2020 | 294,142 | 35,941 | |||||
Ending balance at Mar. 28, 2020 | 2,086,100 | $ 2,900 | 5,827,600 | (2,206,000) | (58,900) | $ (1,479,500) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Redeemable | (1,800) | ||||||
Net income | 482,500 | ||||||
Accelerated share repurchase agreement | (205,000) | ||||||
Payments to Noncontrolling Interests | (1,700) | ||||||
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | 6,900 | ||||||
Accounting standard transition adjustment | Accounting Standards Update 2018-01 [Member] | 300 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,257,700 | ||||||
Balance (in shares) at Dec. 28, 2019 | 293,339 | 29,462 | |||||
Beginning balance at Dec. 28, 2019 | $ 2,900 | 5,749,800 | (2,302,300) | (28,700) | $ (1,170,900) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 503 | ||||||
Exercise of stock options | 13,900 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 86 | ||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (1,600) | ||||||
Common stock issued under the employee stock purchase plan (in shares) | 214 | ||||||
Common stock issued under the employee stock purchase plan | 8,800 | ||||||
Stock-based compensation expense | 15,700 | ||||||
Net income (loss) | 94,800 | ||||||
Repurchase of common stock (in shares) | 5,851 | 628 | |||||
Repurchase of common stock | $ (267,600) | $ 41,000 | |||||
ASR portion flowing through APIC | $ 41,000 | ||||||
Balance (in shares) at Mar. 28, 2020 | 294,142 | 35,941 | |||||
Ending balance at Mar. 28, 2020 | 2,086,100 | $ 2,900 | $ 5,827,600 | $ (2,206,000) | $ (58,900) | $ (1,479,500) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Redeemable | (1,500) | ||||||
Net income | 96,300 | ||||||
Accelerated share repurchase agreement | 0 | ||||||
Payments to Noncontrolling Interests | (300) | ||||||
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | 5,100 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 2,091,200 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 480.7 | $ (174) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 42.3 | 46.8 |
Amortization of acquired intangibles | 145.8 | 189.6 |
Stock-based compensation expense | 33.8 | 34.6 |
Deferred income taxes | (44.2) | (173.3) |
Intangible asset and equipment impairment charges | 30.2 | 443.8 |
Other adjustments and non-cash items | 14.8 | 14.4 |
Changes in operating assets and liabilities, excluding the effect of acquisitions and dispositions: | ||
Accounts receivable | (0.3) | 18.6 |
Inventories | (33.3) | (54) |
Prepaid income taxes | (27.7) | (8.3) |
Prepaid expenses and other assets | (317.6) | (10.4) |
Accounts payable | (47.9) | (27.2) |
Accrued expenses and other liabilities | (50.8) | (71.2) |
Deferred revenue | 5.8 | 8.7 |
Net cash provided by operating activities | 231.6 | 238.1 |
INVESTING ACTIVITIES | ||
Acquisition of businesses, net of cash acquired | (43.2) | (108.6) |
Proceeds From Sale Of Business | 142.7 | 0 |
Capital expenditures | (29.6) | (23) |
Increase in equipment under customer usage agreements | (33.5) | (28.9) |
Payments to Acquire Trading Securities Held-for-investment | 0 | 3 |
Purchase of insurance contracts | 2.4 | 0 |
Other activity | (1.4) | (3.6) |
Net cash provided by (used in) investing activities | 32.6 | (167.1) |
FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 0 | 1,500 |
Repayment of long-term debt | (18.8) | (1,462.5) |
Proceeds from revolving credit line | 750 | 480 |
Repayments under revolving credit line | 0 | (695) |
Proceeds from accounts receivable securitization agreement | 16 | 0 |
Repayments of Accounts Receivable Securitization | 250 | 18 |
Payments to Noncontrolling Interests | (1.7) | 0 |
Payment of deferred acquisition consideration | (24.3) | 0 |
Repayments of acquired long term debt | 8.3 | 2.5 |
Payment of debt issuance costs | 0 | (2.7) |
Accelerated share repurchase agreement | (205) | 0 |
Repurchase of common stock | (348.5) | (150.1) |
Interest Rate Cap Agreements Aggregate Premium Payable | 0 | 1.5 |
Proceeds from issuance of common stock pursuant to employee stock plans | 36.6 | 28.8 |
Payments under finance lease obligations | (0.8) | (0.8) |
Net cash used in financing activities | (67.3) | (336.2) |
Payment of minimum tax withholdings on net share settlements of equity awards | (12.5) | (11.9) |
Effect of exchange rate changes on cash and cash equivalents | 1.1 | (0.5) |
Net increase (decrease) in cash and cash equivalents | 198 | (265.7) |
Cash and cash equivalents, beginning of period | 601.8 | 666.7 |
Cash and cash equivalents, end of period | $ 799.8 | $ 401 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 28, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of Hologic, Inc. (“Hologic” or the “Company”) presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q and do not include all of the information and disclosures required by U.S. generally accepted accounting principles (“GAAP”) for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related notes for the fiscal year ended September 28, 2019 included in the Company’s Form 10-K filed with the SEC on November 27, 2019. In the opinion of management, the financial statements and notes contain all adjustments (consisting of normal recurring accruals and all other necessary adjustments) considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make significant 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 periods. Actual results could differ from management’s estimates if past experience or other assumptions do not turn out to be substantially accurate. Operating results for the three and six months ended March 28, 2020 are not necessarily indicative of the results to be expected for any other interim period or the entire fiscal year ending September 26, 2020 . COVID-19 Considerations The pandemic caused by the spread of the novel strain of coronavirus disease 2019 ("COVID-19") has created significant volatility, uncertainty and economic disruption in the markets the Company sells its products into, primarily the U.S., Europe and Asia-Pacific. In the second quarter of fiscal 2020, the spread of COVID-19 has negatively impacted business activity globally. As healthcare systems respond to the increasing demands of managing COVID-19 and the resulting economic uncertainties, governments around the world have imposed measures designed to reduce the transmission of COVID-19, and individuals are responding to the fears of contracting COVID-19. In particular, elective procedures and exams are being delayed or cancelled, there has been a significant reduction in physician office visits, and hospitals are postponing or cancelling capital purchases as well as limiting or eliminating services. These responses have had, and the Company believes will continue to have, a negative impact on the Company's operating results and cash flows. While the effects of COVID-19 and the associated economic disruptions were felt primarily in the second half of March in many of the Company's end-markets and earlier in Asia, primarily China, the Company expects the effect on its financial results in the third fiscal quarter to be significant. While the Company believes the impact on its business will begin to lessen in the fourth quarter and continue to do so in subsequent periods the impacts on these periods could be significant. The Company's belief is that COVID-19’s adverse impact on its operating results, cash flows and financial condition will be primarily driven by: the severity and duration of the COVID-19 pandemic; the COVID-19 pandemic’s impact on the U.S. and international healthcare system, the U.S. economy and worldwide economy; and the timing, scope and effectiveness of U.S. and international governmental responses to the COVID-19 pandemic and associated economic disruptions. In addition to adversely affecting demand for the Company's products, COVID-19 and associated economic disruptions could have an adverse impact on the Company's supply chains and distribution systems, including as a result of impacts associated with preventive and precautionary measures that it, other businesses and governments are taking. A reduction or interruption in any of the Company's manufacturing processes could have a material adverse effect on its business. The Company expects that the uncertainty surrounding world financial markets and deteriorating worldwide macroeconomic conditions resulting from the pandemic have caused and may continue to cause the purchasers of medical equipment to decrease their medical equipment purchasing and procurement activities. Additionally, the pandemic has caused and may further cause constrictions in world credit markets that have and could cause its customers to experience increased difficulty in paying their existing obligations to the Company or in securing the financing necessary to purchase the Company's products. Economic uncertainty has and may continue to result in cost-conscious consumers focusing on acute care rather than wellness, which would also continue to adversely affect demand for the Company's products. The terms of the Company's credit facilities require it to satisfy certain financial covenants. Should the Company's future business and operations be significantly impaired by the continuing COVID-19 pandemic and associated economic disruptions over an extended period of time or otherwise, the Company cannot assure that it will remain in compliance with its current financial covenants. In such event, the factors that adversely affect the Company's business may also similarly adversely affect the capital markets, and the Company cannot assure that it would be able to negotiate alternative covenants or alternative financing on favorable terms if at all. The Company's failure to comply with the covenants contained in its credit facilities, including financial covenants, could result in an event of default, which could materially and adversely affect its results of operations and financial condition. As the Company assessed the potential longer term economic and capital market uncertainties resulting from the COVID-19 pandemic, at the end of March 2020 the Company suspended its accounts receivable securitization program and borrowed $750.0 million under its revolver. The Company used $250.0 million of these proceeds to pay off all amounts then owed under its accounts receivable securitization agreement, and retained the balance as cash reserve. As of March 28, 2020 the Company had another $750.0 million available under its revolver. In response to the negative impact of COVID-19 on the Company's business, in April 2020 it initiated cost-cutting measures, which included not only reducing discretionary and variable spend, such as travel, marketing programs and the use of contractors, consultants and temporary help, but the Company also implemented employee furloughs, salary cuts primarily in the U.S., reduced hours and in certain instances employee terminations. Further, the Company has shut down certain manufacturing facilities temporarily and implemented reduced work-week schedules in response to lower near-term demand for many of its products. These actions, as they relate to the Company's manufacturing operations, are expected to reduce the efficiency of its manufacturing operations and could further adversely affect its results of operations. Future cost savings initiatives and other measures related to stopping the spread of COVID-19 could also adversely affect the Company's research and development activities, including its clinical trials. The Company has also taken measures to ensure the safety of its employees and to comply with governmental orders. These measures could require that the Company's employees refrain from traveling to their normal workplace for extended periods of time, which in turn could result in a decrease in its commercial and marketing activities. During the second quarter of fiscal 2020, the FDA granted Emergency Use Authorization (EUA) for the Company's Panther Fusion SARS-CoV-2 assay for testing for the COVID-19 virus. The Company is in the process of completing development of a second SARS-CoV-2 assay which will run on its more widely distributed Panther instrument. The Company has installed more than 1,800 Panther instruments, which are used by clinical laboratories around the world. Subject to obtaining the required authorizations, the Company expects to introduce the assay in May. However, the Company can give no assurance that this assay will be developed and authorized on a timely basis, if at all, or if introduced, will be commercially successful. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), referred to as ASC 842. The purpose of ASU 2016-02 is to increase the transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet, including those previously classified as operating leases under GAAP, and disclosing key information about leasing arrangements. ASC 842, as amended, is effective for public entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods and was effective for the Company in fiscal 2020. The Company adopted the standard using the transition method provided by ASC Update No. 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, the Company applied the new leasing rules on September 29, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods were presented in accordance with the existing lease guidance under ASC 840. Upon transition, the Company applied the package of practical expedients permitted under ASC 842 transition guidance to its entire lease portfolio at September 29, 2019. As a result, the Company was not required to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. Furthermore, as a lessee the Company elected to combine lease and non-lease components together for the majority of its leases. As a result, for these applicable classes of underlying assets, the Company accounted for each separate lease component and the non-lease components associated with that lease component as a single lease component. Under ASC 842 as a lessor, in instances where the Company places instruments (or equipment) at customer sites as part of its reagent rental contracts, certain of the Company's reagent rental contracts could be classified as sales-type leases. Under sales-type leases, there is accelerated expense recognition for the cost of the placed equipment and potentially up-front revenue in the event there are fixed rental payments, a portion of which would be allocated to the equipment. The Company does not expect to have a significant amount of sales-type leases. Under ASC 840, all instruments placed under the Company's reagent rental programs were classified as operating leases and instrument revenue and cost were recognized over the term of the contract. Upon adoption of the new lease standard, the Company recognized operating lease right-of-use assets and finance lease right-of-use assets of $91.7 million and $10.2 million , respectively, and corresponding operating lease liabilities and finance lease liabilities of $96.6 million and $21.0 million , respectively. This includes recording the Company’s existing capital lease as a finance lease at transition. In addition, the Company derecognized $32.6 million of property, plant and equipment and $35.2 million of finance lease obligations recorded in accrued expenses and other long-term liabilities associated with two previously existing build-to-suit lease arrangements. Right-of-use assets and corresponding liabilities for these build-to-suit lease arrangements are included within the total amount recognized upon adoption of the new lease standard. The Company’s adoption of ASC 842 is more fully described in Note 3. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The guidance requires certain changes to the presentation of hedge accounting in the financial statements and also simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. The Company adopted the standard in the first quarter of fiscal 2020. The adoption of ASU 2017-12 did not have a material effect on the Company's consolidated financial statements. Subsequent Events Consideration The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that may require additional disclosure. Subsequent events have been evaluated as required. There were no material recognized or unrecognized subsequent events affecting the unaudited consolidated financial statements as of and for the three and six months ended March 28, 2020 |
Revenue
Revenue | 6 Months Ended |
Mar. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company accounts for revenue pursuant to ASC Update No. 2014-09, Revenue from Contracts with Customer (ASC 606) and generates revenue from the sale of its products, primarily medical imaging systems and related components and software, diagnostic tests and assays, surgical and interventional breast disposable products and until December 28, 2019 medical aesthetic treatment systems, and related services, which were primarily support and maintenance services on its medical imaging systems, and to a lesser extent installation, training and repairs. The Company's products are sold primarily through a direct sales force, and within international markets, there is more reliance on distributors and resellers. Revenue is recorded net of sales tax. The following tables provide revenue from contracts with customers by business and geographic region on a disaggregated basis: Three Months Ended March 28, 2020 Three Months Ended March 30, 2019 Business ( in millions ) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 73.2 $ 40.2 $ 113.4 $ 76.6 $ 38.9 $ 115.5 Molecular Diagnostics 149.8 40.8 190.6 136.8 31.0 167.8 Blood Screening 15.2 — 15.2 13.4 — 13.4 Total $ 238.2 $ 81.0 $ 319.2 $ 226.8 $ 69.9 $ 296.7 Breast Health: Breast Imaging $ 186.0 $ 64.2 $ 250.2 $ 206.2 $ 59.7 $ 265.9 Interventional Breast Solutions 48.4 9.2 57.6 46.8 8.8 55.6 Total $ 234.4 $ 73.4 $ 307.8 $ 253.0 $ 68.5 $ 321.5 GYN Surgical $ 86.7 $ 18.7 $ 105.4 $ 84.1 $ 18.1 $ 102.2 Medical Aesthetics $ — $ — $ — $ 37.6 $ 36.2 $ 73.8 Skeletal Health $ 15.6 $ 8.1 $ 23.7 $ 14.0 $ 10.2 $ 24.2 $ 574.9 $ 181.2 $ 756.1 $ 615.5 $ 202.9 $ 818.4 Six Months Ended March 28, 2020 Six Months Ended March 30, 2019 Business (in millions) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 150.7 $ 83.7 $ 234.4 $ 155.8 $ 77.8 $ 233.6 Molecular Diagnostics 291.9 77.2 369.1 270.9 61.2 332.1 Blood Screening 27.2 — 27.2 27.6 — 27.6 Total $ 469.8 $ 160.9 $ 630.7 $ 454.3 $ 139.0 $ 593.3 Breast Health: Breast Imaging $ 395.4 $ 129.6 $ 525.0 $ 412.7 $ 122.9 $ 535.6 Interventional Breast Solutions 95.5 18.4 113.9 92.9 17.7 110.6 Total $ 490.9 $ 148.0 $ 638.9 $ 505.6 $ 140.6 $ 646.2 GYN Surgical $ 185.5 $ 39.0 $ 224.5 $ 175.2 $ 35.4 $ 210.6 Medical Aesthetics $ 30.9 $ 34.4 $ 65.3 $ 74.9 $ 78.7 $ 153.6 Skeletal Health $ 30.5 $ 16.7 $ 47.2 $ 27.2 $ 18.2 $ 45.4 $ 1,207.6 $ 399.0 $ 1,606.6 $ 1,237.2 $ 411.9 $ 1,649.1 Three Months Ended Six Months Ended Geographic Regions ( in millions ) March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 United States $ 574.9 $ 615.5 $ 1,207.6 $ 1,237.2 Europe 111.8 102.1 221.2 203.2 Asia-Pacific 41.7 64.3 111.8 134.0 Rest of World 27.7 36.5 66.0 74.7 $ 756.1 $ 818.4 $ 1,606.6 $ 1,649.1 The following table provides revenue recognized by source: Three Months Ended Six Months Ended Revenue by type (in millions) March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Capital equipment, components and software $ 166.6 $ 239.4 $ 399.5 $ 487.8 Consumables 457.0 428.4 923.4 863.1 Service 127.2 141.1 272.2 283.0 Other 5.3 9.5 11.5 15.2 $ 756.1 $ 818.4 $ 1,606.6 $ 1,649.1 The Company considers revenue to be earned when all of the following criteria are met: the Company has a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the amount the Company expects to receive, including an estimate of uncertain amounts subject to a constraint to ensure revenue is not recognized in an amount that would result in a significant reversal upon resolution of the uncertainty, is determinable; and the Company has transferred control of the promised items to the customer. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the contract. The transaction price for the contract is measured as the amount of consideration the Company expects to receive in exchange for the goods and services expected to be transferred. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, control of the distinct good or service is transferred. Transfer of control for the Company's products is generally at shipment or delivery, depending on contractual terms, but occurs when title and risk of loss transfers to the customer which represents the point in time when the customer obtains the use of and substantially all of the remaining benefit of the product. As such, the Company's performance obligation related to product sales is satisfied at a point in time. Revenue from support and maintenance contracts, extended warranty and professional services for installation, training and repairs is recognized over time based on the period contracted or as the services are performed as these methods represent a faithful depiction of the transfer of goods and services. The Company recognizes a receivable when it has an unconditional right to payment. Payment terms are typically 30 days in the U.S. but may be longer in international markets. The Company treats shipping and handling costs performed after a customer obtains control of the good as a fulfillment cost and records these costs within costs of product revenue when the corresponding revenue is recognized. The Company also places instruments (or equipment) at customer sites but retains title to the instrument. The customer has the right to use the instrument for a period of time, and the Company recovers the cost of providing the instrument through the sales of disposables, namely tests and assays in Diagnostics and handpieces in GYN Surgical. These types of agreements include an embedded lease, which is generally an operating lease, for the right to use an instrument and no instrument revenue is recognized at the time of instrument delivery. The Company recognizes a portion of the revenue allocated to the embedded lease concurrent with the sale of disposables over the term of the agreement. Some of the Company's contracts have multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The Company determines its best estimate of stand-alone selling price using average selling prices over 3 to 12 month periods of data depending on the products or nature of the services coupled with current market considerations. If the product or service does not have a history of sales or if sales volume is not sufficient, the Company relies on prices set by its pricing committees or applicable marketing department adjusted for expected discounts. Variable Consideration The Company exercises judgment in estimating variable consideration, which includes volume discounts, sales rebates, product returns and other adjustments. These amounts are recorded as a reduction to revenue and classified as a current liability. The Company bases its estimates for volume discounts and sales rebates on historical information to the extent it is reasonable to be used as a predictive tool of expected future rebates. To the extent the transaction price includes variable consideration, the Company applies judgment in constraining the estimated variable consideration due to factors that may cause reversal of revenue recognized. The Company evaluates constraints based on its historical and projected experience with similar customer contracts. The Company's contracts typically do not provide the right to return product. In general, estimates of variable consideration and constraints are not material to the Company's financial statements. Remaining Performance Obligations As of March 28, 2020, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied was approximately $583.5 million . This remaining performance obligation primarily relates to extended warranty and support and maintenance obligations in the Company's Breast Health and Skeletal Health reportable segments. The Company expects to recognize approximately 23% of this amount as revenue in 2020, 32% in 2021, 24% in 2022, 14% in 2023, and 7% thereafter. The Company has applied the practical expedient to not include remaining performance obligations related to contracts with original expected durations of one year or less in the amounts above. Contract Assets and Liabilities The Company discloses accounts receivable separately in the Consolidated Balance Sheets at their net realizable value. Contract assets primarily relate to the Company's conditional right to consideration for work completed but not billed at the reporting date. Contract assets at the beginning and end of the period, as well as the changes in the balance, were immaterial. Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. The Company records a contract liability, or deferred revenue, when it has an obligation to provide service, and to a much lesser extent product, to the customer and payment is received or due in advance of performance. Deferred revenue primarily relates to support and maintenance contracts and extended warranty obligations within the Company's Breast Health and Skeletal Health reportable segments and until recently the divested Medical Aesthetics segment. Contract liabilities are classified as other current liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company recognized revenue of $26.2 million and $77.5 million |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Leases | Leases Lessee Activity - Leases where Hologic is the Lessee The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year . The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years , some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of March 28, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as finance lease on the balance sheet as of March 28, 2020. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of March 28, 2020 was 2.59% . The following table presents supplemental balance sheet information related to the Company's operating and finance leases: March 28, 2020 Balance Sheet Location Operating Leases Finance Lease Assets Lease right-of-use assets Other assets $ 82.6 $ — Liabilities Operating lease liabilities (current) Accrued expenses $ 22.1 $ — Finance lease liabilities (current) Finance lease obligations - short term $ — $ 1.8 Operating lease liabilities (non-current) Other long-term liabilities $ 68.7 $ — Finance lease liabilities (non-current) Finance lease obligations - long term $ — $ 18.4 The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million , respectively. The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases: Three Months Ended March 28, 2020 Operating Leases Finance Lease Weighted average remaining lease term 5.93 8.14 Weighted average discount rate 1.95 % 5.1 % The following table provides information related to the Company’s operating and finance leases: Three Months Ended March 28, 2020 Six Months Ended March 28, 2020 Operating lease cost (a) $ 6.8 $ 13.8 Finance lease cost - amortization of right-of-use assets $ — $ 0.3 Finance lease cost - interest cost $ 0.3 $ 0.5 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.3 $ 0.5 Operating cash flows from operating leases $ 5.7 $ 11.7 Financing cash flows from finance leases $ 0.4 $ 0.9 Total cash paid for amounts included in the measurement of lease liabilities $ 6.4 $ 13.1 ROU assets arising from entering into new operating lease obligations $ 3.3 $ 4.7 (a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and six months ended March 28, 2020. The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of March 28, 2020 : Fiscal Year Operating Leases Finance Lease 2020 remaining $ 11.9 $ 1.4 2021 22.5 2.9 2022 17.8 3.0 2023 11.4 3.0 2024 9.3 3.0 Thereafter 23.9 11.4 Total future minimum lease payments 96.8 24.7 Less: imputed interest (6.0 ) (4.5 ) Present value of lease liabilities $ 90.8 $ 20.2 Lessor Activity - Leases where Hologic is the Lessor Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 3% of the Company’s consolidated revenue for both the three and six months ended March 28, 2020 . In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which is $20.6 million as of March 28, 2020. |
Leases | Leases Lessee Activity - Leases where Hologic is the Lessee The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year . The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years , some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of March 28, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as finance lease on the balance sheet as of March 28, 2020. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of March 28, 2020 was 2.59% . The following table presents supplemental balance sheet information related to the Company's operating and finance leases: March 28, 2020 Balance Sheet Location Operating Leases Finance Lease Assets Lease right-of-use assets Other assets $ 82.6 $ — Liabilities Operating lease liabilities (current) Accrued expenses $ 22.1 $ — Finance lease liabilities (current) Finance lease obligations - short term $ — $ 1.8 Operating lease liabilities (non-current) Other long-term liabilities $ 68.7 $ — Finance lease liabilities (non-current) Finance lease obligations - long term $ — $ 18.4 The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million , respectively. The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases: Three Months Ended March 28, 2020 Operating Leases Finance Lease Weighted average remaining lease term 5.93 8.14 Weighted average discount rate 1.95 % 5.1 % The following table provides information related to the Company’s operating and finance leases: Three Months Ended March 28, 2020 Six Months Ended March 28, 2020 Operating lease cost (a) $ 6.8 $ 13.8 Finance lease cost - amortization of right-of-use assets $ — $ 0.3 Finance lease cost - interest cost $ 0.3 $ 0.5 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.3 $ 0.5 Operating cash flows from operating leases $ 5.7 $ 11.7 Financing cash flows from finance leases $ 0.4 $ 0.9 Total cash paid for amounts included in the measurement of lease liabilities $ 6.4 $ 13.1 ROU assets arising from entering into new operating lease obligations $ 3.3 $ 4.7 (a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and six months ended March 28, 2020. The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of March 28, 2020 : Fiscal Year Operating Leases Finance Lease 2020 remaining $ 11.9 $ 1.4 2021 22.5 2.9 2022 17.8 3.0 2023 11.4 3.0 2024 9.3 3.0 Thereafter 23.9 11.4 Total future minimum lease payments 96.8 24.7 Less: imputed interest (6.0 ) (4.5 ) Present value of lease liabilities $ 90.8 $ 20.2 Lessor Activity - Leases where Hologic is the Lessor Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 3% of the Company’s consolidated revenue for both the three and six months ended March 28, 2020 . In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which is $20.6 million as of March 28, 2020. |
Leases | Leases Lessee Activity - Leases where Hologic is the Lessee The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year . The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years , some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of March 28, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as finance lease on the balance sheet as of March 28, 2020. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of March 28, 2020 was 2.59% . The following table presents supplemental balance sheet information related to the Company's operating and finance leases: March 28, 2020 Balance Sheet Location Operating Leases Finance Lease Assets Lease right-of-use assets Other assets $ 82.6 $ — Liabilities Operating lease liabilities (current) Accrued expenses $ 22.1 $ — Finance lease liabilities (current) Finance lease obligations - short term $ — $ 1.8 Operating lease liabilities (non-current) Other long-term liabilities $ 68.7 $ — Finance lease liabilities (non-current) Finance lease obligations - long term $ — $ 18.4 The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million , respectively. The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases: Three Months Ended March 28, 2020 Operating Leases Finance Lease Weighted average remaining lease term 5.93 8.14 Weighted average discount rate 1.95 % 5.1 % The following table provides information related to the Company’s operating and finance leases: Three Months Ended March 28, 2020 Six Months Ended March 28, 2020 Operating lease cost (a) $ 6.8 $ 13.8 Finance lease cost - amortization of right-of-use assets $ — $ 0.3 Finance lease cost - interest cost $ 0.3 $ 0.5 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.3 $ 0.5 Operating cash flows from operating leases $ 5.7 $ 11.7 Financing cash flows from finance leases $ 0.4 $ 0.9 Total cash paid for amounts included in the measurement of lease liabilities $ 6.4 $ 13.1 ROU assets arising from entering into new operating lease obligations $ 3.3 $ 4.7 (a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and six months ended March 28, 2020. The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of March 28, 2020 : Fiscal Year Operating Leases Finance Lease 2020 remaining $ 11.9 $ 1.4 2021 22.5 2.9 2022 17.8 3.0 2023 11.4 3.0 2024 9.3 3.0 Thereafter 23.9 11.4 Total future minimum lease payments 96.8 24.7 Less: imputed interest (6.0 ) (4.5 ) Present value of lease liabilities $ 90.8 $ 20.2 Lessor Activity - Leases where Hologic is the Lessor Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 3% of the Company’s consolidated revenue for both the three and six months ended March 28, 2020 . In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which is $20.6 million as of March 28, 2020. |
Leases | Leases Lessee Activity - Leases where Hologic is the Lessee The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year . The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years , some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of March 28, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as finance lease on the balance sheet as of March 28, 2020. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of March 28, 2020 was 2.59% . The following table presents supplemental balance sheet information related to the Company's operating and finance leases: March 28, 2020 Balance Sheet Location Operating Leases Finance Lease Assets Lease right-of-use assets Other assets $ 82.6 $ — Liabilities Operating lease liabilities (current) Accrued expenses $ 22.1 $ — Finance lease liabilities (current) Finance lease obligations - short term $ — $ 1.8 Operating lease liabilities (non-current) Other long-term liabilities $ 68.7 $ — Finance lease liabilities (non-current) Finance lease obligations - long term $ — $ 18.4 The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million , respectively. The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases: Three Months Ended March 28, 2020 Operating Leases Finance Lease Weighted average remaining lease term 5.93 8.14 Weighted average discount rate 1.95 % 5.1 % The following table provides information related to the Company’s operating and finance leases: Three Months Ended March 28, 2020 Six Months Ended March 28, 2020 Operating lease cost (a) $ 6.8 $ 13.8 Finance lease cost - amortization of right-of-use assets $ — $ 0.3 Finance lease cost - interest cost $ 0.3 $ 0.5 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.3 $ 0.5 Operating cash flows from operating leases $ 5.7 $ 11.7 Financing cash flows from finance leases $ 0.4 $ 0.9 Total cash paid for amounts included in the measurement of lease liabilities $ 6.4 $ 13.1 ROU assets arising from entering into new operating lease obligations $ 3.3 $ 4.7 (a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and six months ended March 28, 2020. The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of March 28, 2020 : Fiscal Year Operating Leases Finance Lease 2020 remaining $ 11.9 $ 1.4 2021 22.5 2.9 2022 17.8 3.0 2023 11.4 3.0 2024 9.3 3.0 Thereafter 23.9 11.4 Total future minimum lease payments 96.8 24.7 Less: imputed interest (6.0 ) (4.5 ) Present value of lease liabilities $ 90.8 $ 20.2 Lessor Activity - Leases where Hologic is the Lessor Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 3% of the Company’s consolidated revenue for both the three and six months ended March 28, 2020 . In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which is $20.6 million as of March 28, 2020. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | Fair Value Measurements Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis The Company has investments in derivative instruments consisting of interest rate caps, interest rate swaps and foreign currency contracts, which are valued using analyses obtained from independent third party valuation specialists based on market observable inputs, representing Level 2 assets. The fair values of the Company's interest rate caps, interest rate swaps, forward foreign currency contracts and foreign currency option contracts represent the estimated amounts the Company would receive or pay to terminate the contracts. Refer to Note 8 for further discussion and information on derivative instruments. Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at March 28, 2020 : Fair Value at Reporting Date Using Balance as of March 28, 2020 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Foreign currency option contracts 0.9 — 0.9 — Forward foreign currency contracts 1.9 — 1.9 — Total $ 2.8 $ — $ 2.8 $ — Liabilities: Contingent consideration $ 0.9 $ — $ — $ 0.9 Interest rate swaps - derivative $ 22.9 $ — $ 22.9 $ — Total $ 23.8 $ — $ 22.9 $ 0.9 Assets Measured and Recorded at Fair Value on a Recurring Basis The Company had contingent consideration liabilities related to its Emsor S.A. and Faxitron Bioptics, LLC acquisitions. The remeasurement of these liabilities in the second quarter of fiscal 2020 was insignificant, and the Company settled these obligations for $9.8 million . Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company remeasures the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets consist of equity investments and long-lived assets, including property, plant and equipment, intangible assets and goodwill. There were no such remeasurements for equity investments in the three and six months ended March 28, 2020 and March 30, 2019 . During the first quarter of fiscal 2020, the Company's Medical Aesthetics division met the criteria to be classified as assets-held-for sale and the Company recorded a $30.2 million loss to record the asset group at its fair value less costs to sell. This is a level 1 measurement. See Note 6 for additional information. During the second quarter of fiscal 2019, the Company identified indicators of impairment related to its long-lived assets of its Medical Aesthetics reportable segment and recorded impairment charges of $443.8 million , of which $437.0 million was allocated to intangible assets and $6.8 million was allocated to equipment. This was a level 3 measurement. See Note 15. Disclosure of Fair Value of Financial Instruments The Company’s financial instruments mainly consist of cash and cash equivalents, accounts receivable, equity investments, interest rate caps, interest rate swaps, forward foreign currency contracts, foreign currency option contracts, insurance contracts, accounts payable and debt obligations. The carrying amounts of the Company’s cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. The Company’s interest rate caps, interest rate swaps, forward foreign currency contracts and foreign currency option contracts are recorded at fair value. The carrying amount of the insurance contracts is recorded at the cash surrender value, as required by GAAP, which approximates fair value. The Company believes the carrying amounts of its equity investments approximate fair value. Amounts outstanding under the Company’s 2018 Credit Agreement (as defined below) of $2.2 billion aggregate principal as of March 28, 2020 are subject to variable interest rates, which are based on current market rates, and as such, the Company believes the carrying amount of these obligations approximates fair value. The Company’s 2025 Senior Notes and 2028 Senior Notes had fair values of $947.6 million and $402.1 million , respectively, as of March 28, 2020 based on their trading prices, representing Level 1 measurements. Refer to Note 7 for the carrying amounts of the various components of the Company’s debt. |
Business Combinations
Business Combinations | 6 Months Ended |
Mar. 28, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Focal Therapeutics On October 1, 2018, the Company completed the acquisition of Focal Therapeutics, Inc. ("Focal") for a purchase price of $120.1 million , which included hold-backs of $14.0 million payable up to one year from the date of acquisition. In the second quarter of fiscal 2019, $1.5 million of the hold-back was paid, and the remaining $12.5 million was paid on October 1, 2019. Focal, headquartered in California, manufactures and markets its BioZorb marker, which is an implantable three-dimensional marker that helps clinicians overcome certain challenges in breast conserving surgery. The total purchase price was allocated to Focal's tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of October 1, 2018, as set forth below: Cash $ 2.2 Accounts receivable 2.0 Inventory 7.9 Other assets 0.5 Accounts payable and accrued expenses (5.6 ) Long-term debt (2.5 ) Identifiable intangible assets: Developed technology 83.1 In-process research and development 11.4 Trade names 2.7 Deferred income taxes, net (12.7 ) Goodwill 31.1 Purchase Price $ 120.1 In performing the purchase price allocation, the Company considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of Focal's business. As part of the purchase price allocation, the Company determined the identifiable intangible assets were developed technology, in-process research and development ("IPR&D"), and trade names. The fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using rates ranging from 15.5% to 16.5% . The cash flows were based on estimates used to price the transaction, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital. The weighted average life of developed technology and trade names was 11 years and 13 years, respectively. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill. The factors contributing to the recognition of the amount of goodwill were based on synergistic benefits that are expected to be realized from this acquisition. Benefits include the expectation of broadening the Company's Breast Health portfolio of products and technology. None of the goodwill is expected to be deductible for income tax purposes. SuperSonic Imagine On August 1, 2019, the Company purchased 46% of the outstanding shares of SuperSonic Imagine ("SSI") for $18.2 million . SSI is a public company located in Aix-en-Provence, France that manufactures and markets ultrasound medical imaging equipment. In September 2019, the Company launched a cash tender offer to acquire the remaining outstanding shares for a price of €1.50 per share in cash. The Company determined that SSI was a Variable Interest Entity (“VIE”) but it was not the primary beneficiary as it was not a party to the initial design of the entity nor did it have control over SSI's operations until November 21, 2019 when the Company's ownership of SSI's voting stock exceeded 50% . Accordingly, the Company initially accounted for this investment under the equity method of accounting and included its proportionate share of SSI's net loss of $3.3 million for the two months ended September 28, 2019 within Other (expense) income, net. On November 21, 2019, the Company acquired an additional 7.6 million shares of SSI for $12.6 million . As a result, the Company owned approximately 78% of the outstanding shares of SSI at November 21, 2019 and controlled SSI's voting interest and operations. The Company performed purchase accounting as of November 21, 2019 and beginning on that date the financial results of SSI are included within the Company's consolidated financial statements. The Company remeasured the initial investment of 46% of the outstanding shares of SSI to its fair value at the acquisition date, resulting in a gain of $3.2 million recorded in the first quarter of fiscal 2020. The total accounting purchase price was $69.3 million , which consisted of $17.9 million for the equity method investment in SSI, $12.6 million for shares acquired on November 21, 2019, $30.2 million for loans the Company provided to SSI prior to the acquisition that are considered forgiven, and $8.6 million representing the fair value of the noncontrolling interest as of November 21, 2019. As of March 28, 2020, the Company owned approximately 81% of the outstanding shares of SSI. The total purchase price was allocated to SSI's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of November 21, 2019, as set forth below. The preliminary purchase price allocation is as follows: Cash $ 2.6 Accounts receivable 7.1 Inventory 10.0 Property, plant and equipment 6.5 Other assets 4.4 Accounts payable and accrued expenses (13.0 ) Deferred revenue (1.8 ) Short and long-term debt (8.8 ) Other liabilities (3.8 ) Identifiable intangible assets: — Developed technology 38.3 Customer relationships 4.0 Trade names 3.0 Deferred income taxes, net (1.5 ) Goodwill 22.4 Purchase Price $ 69.4 In performing the preliminary purchase price allocation, the Company considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of SSI's business. The Company has not yet obtained all of the information related to the fair value of the acquired assets and liabilities, primarily taxes, to finalize the purchase price allocation. As part of the preliminary purchase price allocation, the Company has determined the identifiable intangible assets are developed technology, customer relationships, and trade names. The preliminary fair value of the intangible assets has been estimated using the income approach, and the cash flow projections were discounted using a 12.0% rate. The cash flows are based on estimates used to price the transaction, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital. The weighted average life for the developed technology is 9 years , customer relationships is 9 years and for trade names it is 8.6 years . The preliminary calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill. The factors contributing to the recognition of the preliminary amount of goodwill are based on synergistic benefits of SSI's products being complementary to Breast Health's 3D mammography systems and using the Company's existing U.S. sales force as SSI's presence in the U.S. is limited. None of the goodwill is expected to be deductible for income tax purposes. Alpha Imaging On December 30, 2019, the Company completed the acquisition of assets from Alpha Imaging, LLC ("Alpha Imaging"), for a purchase price of $18.0 million , which included a hold-back of $1.0 million and contingent consideration which the Company has estimated at $0.9 million . The contingent consideration is payable upon shipment of backlog orders entered into by Alpha Imaging prior to the acquisition. Alpha Imaging was a long-standing distributor of the Company's Breast and Skeletal products in the U.S. Based on the Company's preliminary valuation, it has allocated $18.1 million of the purchase price to a customer relationships intangible asset, which has a useful life of 5 years. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities. Health Beacons On February 3, 2020, the Company completed the acquisition of Health Beacons, Inc. ("Health Beacons"), for a purchase price of $19.3 million , which included hold-backs of $2.3 million that are payable up to eighteen months from the date of acquisition. Health Beacons manufactures the LOCalizer product that is sold by Faxitron Bioptics, LLC ("Faxitron"), which the Company acquired in July 2018. Based on the Company's preliminary valuation, it has allocated $10.7 million of the purchase price to the preliminary value of intangible assets and $5.7 million to goodwill. The remaining $2.9 million of the purchase price has been allocated to acquired tangible assets and liabilities. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities. |
Disposition
Disposition | 6 Months Ended |
Mar. 28, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Disposition Sale of Medical Aesthetics On November 20, 2019, the Company entered into a definitive agreement to sell its Medical Aesthetics business to Clayton Dubilier & Rice ("CD&R") for a sales price of $205.0 million in cash, less certain adjustments. The sale was completed on December 30, 2019, and the Company received cash proceeds of $153.4 million . The sale price remains subject to adjustment pursuant to the terms of the definitive agreement. The Company agreed to provide certain transition services for three to fifteen months, depending on the nature of the service. The Company also agreed to indemnify CD&R for certain legal and tax matters that existed as of the date of disposition. In connection with its accounting for the sale, the Company recorded indemnification liabilities of $10.9 million within accrued expenses associated with its obligations under the sale agreement. As a result of this transaction, the Medical Aesthetics asset group was designated as assets held-for-sale in the first quarter of fiscal 2020. Pursuant to ASC 360, asset groups under this designation are required to be recorded at fair value less costs to sell. The Company determined that this disposal did not qualify as a discontinued operation as the sale of the Medical Aesthetics business was deemed to not be a strategic shift having or will have a major effect on the Company's operations and financial results. Based on the terms in the agreement of the sales price and formula for net working capital and related adjustments, its estimate of the fair value for transition services and the amount that must be carved out of the sale proceeds, and liabilities the Company will retain or for which it has agreed to indemnify CD&R, the Company recorded an impairment charge of $30.2 million in the first quarter of fiscal 2020. The impairment charge was allocated to Medical Aesthetics long-lived assets, of which $25.8 million was allocated to cost of product revenues and $4.4 million to operating expenses. The Company is currently in the process of evaluating adjustments to the final sales price. The assets and liabilities of the disposed business at the date of disposition were as follows: Assets: Cash $ 10.7 Accounts Receivable 59.6 Inventory 90.6 Prepaid expenses and other current assets 7.7 Property, plant, and equipment 4.0 Intangible assets 28.2 Other assets 9.8 Total assets disposed of $ 210.6 Liabilities: Accounts payable $ 12.3 Accrued expenses 49.0 Deferred revenue 16.6 Total liabilities disposed of $ 77.9 Loss from operations of the disposed business presented below represents the operating loss of the business as it was operated prior to the date of disposition. The operating expenses include only those that were incurred directly by and were retained by the disposed business. As noted above, the Company is performing a number of transition services and the financial impact from these services are not included in the amounts presented below. In addition, the Company will continue to incur expenses related to this business under the indemnification provisions primarily related to legal and tax matters that existed as of the date of disposition, which it will continued to report in the Medical Aesthetic reportable segment. In the second quarter of fiscal 2020, the Company recorded accelerated stock compensation in connection with the disposition, legal expenses for retained cases and other adjustments totaling $2.4 million , which is not included below. Loss from operations of the disposed business for the three and six month periods ended March 28, 2020 and March 30, 2019 was as follows: Three Months Ended Six Months Ended March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Loss from operations $ — (468.3 ) $ (46.5 ) $ (488.7 ) |
Borrowings and Credit Arrangeme
Borrowings and Credit Arrangements | 6 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings and Credit Arrangements | Borrowings and Credit Arrangements The Company’s borrowings consisted of the following: March 28, September 28, Current debt obligations, net of debt discount and deferred issuance costs: Term Loan $ 56.1 $ 37.4 Revolver 750.0 — Securitization Program — 234.0 Total current debt obligations $ 806.1 $ 271.4 Long-term debt obligations, net of debt discount and deferred issuance costs: Term Loan 1,416.2 1,452.4 Debt assumed from SSI acquisition 0.6 — 2025 Senior Notes 938.3 937.3 2028 Senior Notes 394.2 393.9 Total long-term debt obligations $ 2,749.3 $ 2,783.6 Total debt obligations $ 3,555.4 $ 3,055.0 2018 Amended and Restated Credit Agreement On December 17, 2018, the Company and certain of its subsidiaries refinanced its term loan and revolving credit facility by entering into an Amended and Restated Credit and Guaranty Agreement as of December 17, 2018 (the "2018 Credit Agreement") with Bank of America, N.A. in its capacity as Administrative Agent, Swing Line Lender and L/C Issuer, and certain other lenders. The 2018 Credit Agreement amended and restated the Company's prior credit and guaranty agreement dated as of October 3, 2017 (the "2017 Credit Agreement"). The borrowings of the 2018 Amended Term Loan bear interest at an annual rate equal to the Eurocurrency Rate (i.e., the LIBOR rate) plus an Applicable Rate, which was equal to 1.375% as of March 28, 2020. The borrowings of the 2018 Amended Revolver bear interest at a rate equal to the LIBOR Daily Floating Rate plus an Applicable Rate equal to 1.375% . Pursuant to ASC 470, Debt (ASC 470), the accounting related to entering into the 2018 Credit Agreement and using the proceeds to pay off the 2017 Credit Agreement was evaluated on a creditor-by-creditor basis to determine whether each transaction should be accounted for as a modification or extinguishment. Certain creditors under the 2017 Credit Agreement did not participate in this refinancing transaction and ceased being creditors of the Company. As a result, the Company recorded a debt extinguishment loss of $0.8 million in the first quarter of fiscal 2019. For the remainder of the creditors, this transaction was accounted for as a modification because on a creditor-by-creditor basis the present value of the cash flows between the two debt instruments before and after the transaction was less than 10% . Pursuant to ASC 470, subtopic 50-40, third-party costs of $0.8 million related to this transaction were recorded as interest expense and $1.9 million was recorded as a reduction to debt representing deferred issuance costs and debt discount for fees paid directly to the lenders. In response to the current market uncertainties created by the COVID-19 pandemic, in March 2020, the Company borrowed $750 million under its revolver, which it intends to repay within one year, $250 million of which was used to pay off amounts outstanding under the asset securitization agreement, in order to have sufficient cash on hand. The Company has another $750 million available under its revolver as of March 28, 2020. Interest expense, weighted average interest rate, and interest rate at the end of period under the Credit Agreements were as follows: Three Months Ended Six Months Ended March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Interest expense $ 13.0 $ 16.8 $ 26.6 $ 35.5 Weighted average interest rate 2.75 % 3.86 % 2.93 % 3.84 % Interest rate at end of period 2.33 % 3.87 % 2.33 % 3.87 % The 2018 Credit Agreement contains two financial covenants; a total leverage ratio and an interest coverage ratio, both of which are measured as of the last day of each fiscal quarter. These terms, and calculations thereof, are defined in further detail in the 2018 Credit Agreement. As of March 28, 2020, the Company was in compliance with these covenants. Senior Notes On October 10, 2017, the Company completed a private placement of $350 million aggregate principal amount of its 4.375% Senior Notes due 2025 (the "2025 Senior Notes") at an offering price of 100% of the aggregate principal amount of the 2025 Senior Notes. On January 19, 2018, the Company completed a private placement of $1.0 billion aggregate principal amount of senior notes, allocated between (i) an additional $600 million aggregate principal amounts of its 2025 Senior Notes pursuant to a supplement to the indenture governing the Company's existing 2025 Senior Notes at an offering price of 100% of the aggregate principal amount of the 2025 Senior Notes and (ii) $400 million aggregate principal amounts of its 4.625% Senior Notes due 2028 (the "2028 Senior Notes") at an offering price of 100% of the aggregate principal amount of the 2028 Senior Notes. 2025 Senior Notes The total aggregate principal balance of 2025 Senior Notes is $950 million . The 2025 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain domestic subsidiaries and mature on October 15, 2025. 2028 Senior Notes The aggregate principal balance of the 2028 Senior Notes is $400 million . The 2028 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain domestic subsidiaries and mature on February 1, 2028. Interest expense for the 2028 Senior Notes and 2025 Senior Notes is as follows: Three Months Ended Six Months Ended March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Interest Rate Interest Expense Interest Expense Interest Expense Interest Expense 2028 Senior Notes 4.625 % $ 4.8 $ 4.8 $ 9.6 $ 9.6 2025 Senior Notes 4.375 % 10.9 10.9 21.8 21.8 Total $ 15.7 $ 15.7 $ 31.4 $ 31.4 Accounts Receivable Securitization Program On March 26, 2020, the Company paid-off the total amount outstanding of $250.0 million previously borrowed under the Accounts Receivable Securitization Program (the "Securitization Program"). As of March 28, 2020, the Company did not have any borrowings under this program. On April 13, 2020, the Company amended the Credit and Security agreement with the lenders, temporarily suspending the ability to borrow and the need to comply with covenants for up to a year. |
Derivatives
Derivatives | 6 Months Ended |
Mar. 28, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Interest Rate Cap - Cash Flow Hedge The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages its exposure to some of its interest rate risk through the use of interest rate caps, which are derivative financial instruments. The Company does not use derivatives for speculative purposes. For a derivative that is designated as a cash flow hedge, changes in the fair value of the derivative are recognized in accumulated other comprehensive income ("AOCI") to the extent the derivative is effective at offsetting the changes in the cash flows being hedged until the hedged item affects earnings. To the extent there is any hedge ineffectiveness, changes in fair value relating to the ineffective portion are immediately recognized in earnings in other income (expense), net in the Consolidated Statements of Operations. During fiscal 2018, the Company entered into separate interest rate cap agreements with multiple counter-parties to help mitigate the interest rate volatility associated with the variable interest rate on amounts borrowed under the term loan feature of its credit facilities (see Note 7). Interest rate cap agreements provide the right to receive cash if the reference interest rate rises above a contractual rate. The aggregate premium paid for these interest rate cap agreements was $3.7 million , which was the initial fair value of the instruments recorded in the Company's financial statements. During fiscal 2019, the Company entered into additional separate interest rate cap agreements with multiple counter-parties to extend the expiration date of its hedges by an additional year. The aggregate premium paid for these interest cap agreements was $1.5 million , which was the initial fair value of the instruments recorded in the Company’s financial statements. The critical terms of the interest rate caps were designed to mirror the terms of the Company’s LIBOR-based borrowings under its Credit Agreement, that has been amended multiple times, and therefore are highly effective at offsetting the cash flows being hedged. The Company designated these derivatives as cash flow hedges of the variability of the LIBOR-based interest payments on $1.0 billion of principal, which ended on December 27, 2019 for the contracts entered into in fiscal 2018, and which will end on December 23, 2020 for the interest rate cap agreements entered into in fiscal 2019. As of March 28, 2020 , all changes in the fair value of the interest rate caps were recorded in the Consolidated Statements of Comprehensive Income (Loss). During the three and six months ended March 28, 2020 and March 30, 2019 , the Company reclassified $0.4 million and $1.7 million , respectively and $0.5 million and $1.2 million, respectively from AOCI to the Consolidated Statements of Operations related to the interest rate cap agreements. The Company expects to similarly reclassify a loss of approximately $1.1 million from AOCI to the Consolidated Statements of Operations in the next nine months. The aggregate fair value of these interest rate caps was $0.0 million and $0.1 million at March 28, 2020 and September 28, 2019 , respectively, and is included in prepaid expenses and other current assets on the Company’s Consolidated Balance Sheet. Refer to Note 4 “Fair Value Measurements” above for related fair value disclosures. Interest Rate Swap - Cash Flow Hedge In fiscal 2019, in order to hedge a portion of its variable rate debt beyond the contracted period under interest cap agreements, the Company entered into an interest rate swap contract with an effective date of December 23, 2020 and a termination date of December 17, 2023. The notional amount of this swap is $1.0 billion . The interest rate swap effectively fixes the LIBOR component of the variable interest rate on $1.0 billion of the notional amount under the 2018 Credit Agreement at 1.23% . The critical terms of the interest rate swap are designed to mirror the terms of the Company’s LIBOR-based borrowings under its credit agreement and therefore are highly effective at offsetting the cash flows being hedged. The Company designated this derivative as a cash flow hedge of the variability of the LIBOR-based interest payments on $1.0 billion of principal. Therefore, changes in the fair value of the swap are recorded in AOCI. The fair value of this derivative was in a liability position of $22.9 million as of March 28, 2020 . Forward Foreign Currency Contracts and Foreign Currency Option Contracts The Company enters into forward foreign currency exchange contracts and foreign currency option contracts to mitigate certain operational exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company's operations that are denominated in currencies other than the U.S. dollar, primarily the Euro, the UK Pound, the Australian dollar, the Canadian dollar, the Chinese Yuan and the Japanese Yen. These foreign currency exchange contracts are entered into to support transactions made in the ordinary course of business and are not speculative in nature. The contracts are generally for periods of one year or less. The Company did not elect hedge accounting for these forward foreign currency contracts and foreign currency option contracts; however, the Company may seek to apply hedge accounting in future scenarios. The change in the fair value of these contracts is recognized directly in earnings as a component of other income (expense), net. During the three and six months ended March 28, 2020 , for the forward foreign currency exchange contracts the Company recorded net realized gains of $0.1 million in both periods from settling forward foreign currency exchange contracts and net unrealized gains of $2.6 million and $1.1 million , respectively, on the mark-to-market for its outstanding forward foreign currency contracts. During the three and six months ended March 30, 2019, the Company recorded net realized gains of $1.8 million and $3.5 million , respectively, from settling forward foreign currency contracts and net unrealized loss of $1.4 million and net realized gain of $2.0 million , respectively, on the mark-to-market for its outstanding forward foreign currency contracts. During the three and six months ended March 28, 2020 , for the foreign currency option contracts the Company recorded net unrealized gains of $1.1 million and net unrealized losses of $0.4 million , respectively, on outstanding option contracts. During the three and six months ended March 28, 2020 , for the foreign currency option contracts, the Company recorded net realized losses of $0.5 million and $0.7 million , respectively, on outstanding option contracts. As of March 28, 2020 , the Company had outstanding forward foreign currency contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar of forecasted transactions denominated in the Australian dollar, Canadian Dollar, Chinese Yuan and Japanese Yen with an aggregate notional amount of $51.0 million . As of March 28, 2020 , the Company had outstanding foreign currency option contracts that were not designated for hedge accounting and are used to hedge fluctuations in the U.S. dollar of forecasted transactions denominated in the Euro and UK Pound with a notional amount of $80.6 million . Financial Instrument Presentation The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the balance sheet as of March 28, 2020 : Balance Sheet Location March 28, 2020 September 28, 2019 Assets: Derivative instruments designated as a cash flow hedge: Interest rate cap agreements Prepaid expenses and other current assets $ — $ 0.1 Interest rate swap contract Other assets — 4.7 $ — $ 4.8 Derivatives not designated as hedging instruments: Forward foreign currency contracts Prepaid expenses and other current assets $ 1.9 $ 0.9 Foreign currency option contracts Prepaid expenses and other current assets 0.9 2.0 $ 2.8 $ 2.9 Liabilities: Derivative instruments designated as a cash flow hedge: Interest rate swap contract Accrued expenses $ 2.4 $ — Interest rate swap contract Other long-term liabilities 20.5 — Total $ 22.9 $ — Derivatives not designated as hedging instruments: Forward foreign currency contracts Accrued expenses $ — $ 0.1 The following table presents the unrealized gain (loss) recognized in AOCI related to the interest rate caps and interest rate swap for the following reporting periods: Three Months Ended Six Months Ended March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Amount of loss recognized in other comprehensive income, net of taxes: Interest rate swap $ (25.2 ) $ — $ (20.8 ) $ — Interest rate cap agreements (0.1 ) (1.5 ) (0.4 ) (5.4 ) Total $ (25.3 ) $ (1.5 ) $ (21.2 ) $ (5.4 ) The following table presents the adjustment to fair value (realized and unrealized) recorded within the Consolidated Statements of Income for derivative instruments for which the Company did not elect hedge accounting: Derivatives not classified as hedging instruments Amount of (Loss) Gain Recognized in Income Three Months Ended March 28, 2020 Three Months Ended March 30, 2019 Six Months Ended March 28, 2020 Six Months Ended March 30, 2019 Forward foreign currency contracts $ 2.7 $ 0.4 $ 1.3 $ 5.5 Foreign currency option contracts 0.6 — (1.1 ) — Total $ 3.3 $ 0.4 $ 0.2 $ 5.5 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Related Matters On November 6, 2015, the Company filed a suit against Minerva Surgical, Inc. (“Minerva”) in the United States District Court for the District of Delaware, alleging that Minerva’s endometrial ablation device infringes U.S. Patent 6,872,183 (the '183 patent), U.S. Patent 8,998,898 and U.S. Patent 9,095,348 (the '348 patent). On January 25, 2016, the Company amended the complaint to include claims against Minerva for unfair competition, deceptive trade practices and tortious interference with business relationships. On February 5, 2016, the Company filed a second amended complaint to additionally allege that Minerva’s endometrial ablation device infringes U.S. Patent 9,247,989 (the '989 patent). On March 4, 2016, Minerva filed an answer and counterclaims against the Company, seeking declaratory judgment on the Company’s claims and asserting claims against the Company for unfair competition, deceptive trade practices, interference with contractual relationships, breach of contract and trade libel. On June 2, 2016, the Court denied the Company’s motion for a preliminary injunction on its patent claims and denied Minerva’s request for preliminary injunction related to the Company’s alleged false and deceptive statements regarding the Minerva product. On June 28, 2018, the Court granted the Company's summary judgment motions on infringement and no invalidity with respect to the ‘183 and ‘348 patents. The Court also granted the Company’s motion for summary judgment on assignor estoppel, which bars Minerva’s invalidity defenses or any reliance on collateral findings regarding invalidity from inter partes review proceedings. The Court also denied all of Minerva’s defenses, including its motions for summary judgment on invalidity, non-infringement, no willfulness, and no unfair competition. On July 27, 2018, after a two-week trial, a jury returned a verdict that: (1) awarded the Company $4.8 million in damages for Minerva’s infringement; (2) found that Minerva’s infringement was not willful; and (3) found for the Company regarding Minerva’s counterclaims. Damages continued to accrue as Minerva continues its infringing conduct. On May 2, 2019, the Court issued rulings that denied the parties' post-trial motions, including the Company's motion for a permanent injunction seeking to prohibit Minerva from selling infringing devices. Both parties appealed the Court's rulings regarding the post-trial motions. On March 4, 2016, Minerva filed two petitions at the USPTO for inter partes review of the '348 patent. On September 12, 2016, the PTAB declined both petitions to review patentability of the '348 patent. On April 11, 2016, Minerva filed a petition for inter partes review of the '183 patent. On October 6, 2016, the PTAB granted the petition and instituted a review of the '183 patent. On December 15, 2017, the PTAB issued a final written decision invalidating all claims of the ‘183 patent. On February 9, 2018 the Company appealed this decision to the United States Court of Appeals for the Federal Circuit ("Court of Appeals"). On April 19, 2019, the Court of Appeals affirmed the PTAB's final written decision regarding the '183 patent. On July 16, 2019, the Court of Appeals denied the Company’s petition for rehearing in the appeal regarding the '183 patent. On April 22, 2020, the Court of Appeals affirmed the district court’s summary judgment ruling in favor of the Company of no invalidity and infringement, and summary judgment that assignor estoppel bars Minerva from challenging the validity of the ‘348 patent. The Court of Appeals also denied the Company’s motion for a permanent injunction and ongoing royalties for infringement of the ‘183 patent. The Court of Appeals denied Minerva’s motion for no damages or, alternatively, a new trial. On April 11, 2017, Minerva filed suit against the Company and Cytyc Surgical Products, LLC (“Cytyc”) in the United States District Court for the Northern District of California alleging that the Company’s and Cytyc’s NovaSure ADVANCED endometrial ablation device infringes Minerva’s U.S. patent 9,186,208. Minerva is seeking a preliminary and permanent injunction against the Company and Cytyc from selling this NovaSure device as well as enhanced damages and interest, including lost profits, price erosion and/or royalty. On January 5, 2018, the Court denied Minerva's motion for a preliminary injunction. On February 2, 2018, at the parties’ joint request, this action was transferred to the District of Delaware. On March 26, 2019, the Magistrate Judge issued a claims construction ruling regarding the disputed terms in the patent, which the District Court Judge adopted in all respects on October 21, 2019. The original trial date of July 20, 2020 was vacated and the parties are now waiting for a new trial date to be set by the court. At this time, based on available information regarding this litigation, the Company is unable to reasonably assess the ultimate outcome of this case or determine an estimate, or a range of estimates, of potential losses. On February 3, 2017, bioMérieux, S.A. and bioMérieux, Inc. (collectively “bioMérieux”) filed suit against the Company in the United States District Court for the Middle District of North Carolina ("MDNC"), alleging that the Company’s HIV products, including blood screening products previously manufactured by the Company for its former blood screening partner Grifols Diagnostic Solutions Inc. ("Grifols USA"), infringe U.S. Patent Nos. 8,697,352 and 9,074,262. On January 3, 2018, the MDNC Court granted the parties’ consent motion to transfer the case to Delaware. On June 11, 2019, the Court issued a claim construction ruling regarding the disputed terms in the patents. Motions for summary judgment were filed by the parties on September 30, 2019, and a hearing on these motions was held on December 18, 2019. A six-day trial concluded on February 25, 2020, with the jury finding that all claims of U.S. Patent No. 8,697,352 are invalid (U.S. Patent No. 9,074,262 was dropped from the case by bioMérieux prior to trial). On March 18, 2020, the parties agreed to a settlement under which bioMérieux agreed to dismiss all claims with prejudice and to waive the filing of post-trial motions and pursuing an appeal in exchange for a de minimis payment from the Company and Grifols USA. As described in Note 6, the Company has agreed to indemnify CD&R for certain legal matters related to the Medical Aesthetics business that existed at the date of disposition. The Company currently has $8.5 million accrued for such matters as of March 28, 2020 , but this amount could become greater if some or all of the cases which it is indemnifying have an adverse result. The Company is a party to various other legal proceedings and claims arising out of the ordinary course of its business. The Company believes that except for those matters described above there are no other proceedings or claims pending against it the ultimate resolution of which could have a material adverse effect on its financial condition or results of operations. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies . Legal costs are expensed as incurred. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income Per Share A reconciliation of basic and diluted share amounts is as follows: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, Basic weighted average common shares outstanding 263,238 269,235 265,566 269,913 Weighted average common stock equivalents from assumed exercise of stock options and issuance of stock units 1,268 — 1,548 — Diluted weighted average common shares outstanding 264,506 269,235 267,114 269,913 Weighted-average anti-dilutive shares related to: Outstanding stock options 1,677 4,031 1,483 4,578 Stock Units 10 — 6 — |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following presents stock-based compensation expense in the Company’s Consolidated Statements of Operations: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, Cost of revenues $ 1.7 $ 2.0 $ 3.8 $ 4.0 Research and development 2.3 2.7 4.6 5.4 Selling and marketing 2.8 2.7 5.6 5.4 General and administrative 6.5 10.1 17.4 19.8 Restructuring 2.4 — 2.4 — $ 15.7 $ 17.5 $ 33.8 $ 34.6 The Company granted options to purchase 0.9 million and 0.9 million shares of the Company's common stock during the six months ended March 28, 2020 and March 30, 2019 , respectively, with weighted-average exercise prices of $45.82 and $41.25 , respectively. There were 5.3 million options outstanding at March 28, 2020 with a weighted-average exercise price of $38.74 . The Company uses a binomial model to determine the fair value of its stock options. The weighted-average assumptions utilized to value these stock options are indicated in the following table: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, Risk-free interest rate 1.7 % 3.0 % 1.7 % 3.0 % Expected volatility 33.6 % 34.3 % 33.6 % 34.3 % Expected life (in years) 4.8 4.8 4.8 4.8 Dividend yield — — — — Weighted average fair value of options granted $ 14.45 $ 15.33 $ 13.87 $ 13.50 The Company granted 0.8 million and 0.9 million restricted stock units (RSUs) during the six months ended March 28, 2020 and March 30, 2019 , respectively, with weighted-average grant date fair values of $45.76 and $41.11 per unit, respectively. In addition, the Company granted 0.1 million and 0.1 million performance stock units (PSUs) during the six months ended March 28, 2020 and March 30, 2019 , respectively, to members of its senior management team, which have a weighted-average grant date fair value of $45.76 and $40.97 per unit, respectively. Each recipient of PSUs is eligible to receive between zero and 200% of the target number of shares of the Company’s common stock at the end of three years provided the Company’s defined Return on Invested Capital metrics are achieved. The Company also granted 0.1 million of PSUs based on a one-year free cash flow measure (FCF) to its senior management team, which had a grant date fair value of $45.76 . Each recipient of FCF PSUs is eligible to receive between zero and 200% of the target number of shares of the Company's common stock at the end of the one-year measurement period, but the FCF PSUs vest at the end of the three year service period. The Company is recognizing compensation expense for PSUs and FCF PSUs ratably over the required service period based on its estimate of the number of shares that will vest. If there is a change in the estimate of the number of shares that are probable of vesting, the Company cumulatively adjusts compensation expense in the period that the change in estimate is made. The Company also granted 0.1 million and 0.1 million market-based awards (MSUs) to its senior management team during the six months ended March 28, 2020 and March 30, 2019 , respectively. Each recipient of MSUs is eligible to receive between zero and 200% of the target number of shares of the Company’s common stock at the end of three years based upon achieving a certain total shareholder return relative to a defined peer group. The MSUs were valued at $43.90 and $55.13 per share using the Monte Carlo simulation model. The Company is recognizing compensation expense for the MSUs ratably over the service period. At March 28, 2020 , there was 2.5 million in aggregate RSUs, PSUs, FCF PSUs and MSUs outstanding. At March 28, 2020 , there was $26.7 million and $70.6 million of unrecognized compensation expense related to stock options and stock units (comprised of RSUs, PSUs, FCF PSUs and MSUs), respectively, to be recognized over a weighted-average period of 2.6 and 2.0 years, respectively. |
Other Balance Sheet Information
Other Balance Sheet Information | 6 Months Ended |
Mar. 28, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Information | Other Balance Sheet Information March 28, September 28, Inventories Raw materials $ 155.1 $ 166.1 Work-in-process 56.4 54.5 Finished goods 189.8 224.3 $ 401.3 $ 444.9 Property, plant and equipment Equipment $ 407.6 $ 379.2 Equipment under customer usage agreements 452.8 435.5 Building and improvements 162.9 196.7 Leasehold improvements 42.8 61.7 Land 40.6 46.3 Furniture and fixtures 15.6 17.5 1,122.3 1,136.9 Less – accumulated depreciation and amortization (677.0 ) (666.0 ) $ 445.3 $ 470.9 |
Business Segments and Geographi
Business Segments and Geographic Information | 6 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Business Segments and Geographic Information | Business Segments and Geographic Information During the first fiscal quarter of 2020 and during fiscal 2019, the Company had five reportable segments: Diagnostics, Breast Health, GYN Surgical, Medical Aesthetics and Skeletal Health. The Company completed the sale of its Medical Aesthetics business on December 30, 2019, but will continue to have operating expenses related to indemnifying CD&R for legal and tax matters that existed as of the date of disposition. The Company measures and evaluates its reportable segments based on segment revenues and operating income adjusted to exclude the effect of non-cash charges, such as intangible asset amortization expense, intangible asset and goodwill impairment charges, acquisition related fair value adjustments and integration expenses, restructuring, divestiture and facility consolidation charges and other one-time or unusual items. Identifiable assets for the reportable segments consist of inventories, intangible assets, goodwill, and property, plant and equipment. The Company fully allocates depreciation expense to its reportable segments. The Company has presented all other identifiable assets as corporate assets. There were no inter-segment revenues during the three and six months ended March 28, 2020 and March 30, 2019 . Segment information is as follows: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, Total revenues: Diagnostics $ 319.2 $ 296.7 $ 630.7 $ 593.3 Breast Health 307.8 321.5 638.9 646.2 GYN Surgical 105.4 102.2 224.5 210.6 Medical Aesthetics — 73.8 65.3 153.6 Skeletal Health 23.7 24.2 47.2 45.4 $ 756.1 $ 818.4 $ 1,606.6 $ 1,649.1 Income (loss) from operations: Diagnostics $ 57.3 $ 31.1 $ 106.8 $ 74.4 Breast Health 75.9 99.0 169.8 196.8 GYN Surgical 23.9 20.5 55.4 47.6 Medical Aesthetics (2.4 ) (473.9 ) (53.4 ) (499.1 ) Skeletal Health 1.7 0.1 2.6 (2.4 ) $ 156.4 $ (323.2 ) $ 281.2 $ (182.7 ) Depreciation and amortization: Diagnostics $ 59.3 $ 61.6 $ 118.4 $ 123.4 Breast Health 13.1 8.9 23.1 18.2 GYN Surgical 21.1 21.9 42.1 43.9 Medical Aesthetics — 25.1 4.1 50.6 Skeletal Health 0.2 0.1 0.4 0.3 $ 93.7 $ 117.6 $ 188.1 $ 236.4 Capital expenditures: Diagnostics $ 17.1 $ 16.0 $ 35.3 $ 30.4 Breast Health 8.1 4.7 14.5 6.8 GYN Surgical 5.3 3.1 10.6 6.6 Medical Aesthetics — 3.4 1.4 4.5 Skeletal Health 0.1 0.3 0.2 0.6 Corporate 1.1 1.8 1.1 3.0 $ 31.7 $ 29.3 $ 63.1 $ 51.9 March 28, September 28, Identifiable assets: Diagnostics $ 2,193.8 $ 2,276.6 Breast Health 1,243.9 1,127.8 GYN Surgical 1,284.4 1,328.6 Medical Aesthetics — 159.3 Skeletal Health 30.2 27.3 Corporate 2,069.5 1,522.5 $ 6,821.8 $ 6,442.1 The Company had no customers that represented greater than 10% of consolidated revenues during the three and six months ended March 28, 2020 and March 30, 2019 . The Company operates in the major geographic areas noted in the below chart. Revenue data is based upon customer location. Other than the United States, no single country accounted for more than 10% of consolidated revenues. The Company’s sales in Europe are predominantly derived from France, Germany and the United Kingdom. The Company’s sales in Asia-Pacific are predominantly derived from China, Australia and Japan. The “Rest of World” designation includes Canada, Latin America and the Middle East. Revenues by geography as a percentage of total revenues were as follows: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, United States 76.0 % 75.1 % 75.1 % 75.0 % Europe 14.8 % 12.5 % 13.8 % 12.3 % Asia-Pacific 5.5 % 7.9 % 7.0 % 8.1 % Rest of World 3.7 % 4.5 % 4.1 % 4.6 % 100.0 % 100.0 % 100.0 % 100.0 % |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In accordance with ASC 740, Income Taxes (ASC 740), each interim period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its annual effective tax rate estimated for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, adjusted for discrete taxable events that occur during the interim period. The Company’s effective tax rate for the three and six months ended March 28, 2020 was a provision of 20.3% and a benefit of 122.1% , respectively, compared to a benefit of 22.9% and 30.2% , respectively, for the corresponding periods in the prior year. The effective tax rate for the three months ended March 28, 2020 differed from the statutory tax rate primarily due to taxation of foreign earnings at a tax rate lower than the statutory tax rate including the impact to global intangible low tax income and foreign derived intangible income, partially offset by unbenefited foreign losses. The effective tax rate for the six months ended March 28, 2020 differed from the statutory tax rate primarily due to a $310.9 million discrete net tax benefit related to the loss on the sale of the Medical Aesthetics business. For the three months ended March 30, 2019, the effective tax rate differed from the statutory tax rate primarily due to the impact of the Medical Aesthetics impairment charge, and earnings in jurisdictions subject to lower tax rates. For the six months ended March 30, 2019, the effective tax rate differed from the statutory tax rate primarily due to the impact of the Medical Aesthetics impairment charge, earnings in jurisdictions subject to lower tax rates, a discrete benefit related to an internal restructuring, and finalizing the impact of the enactment of the Tax Cuts and Jobs Act in the first quarter of fiscal 2019. During the six months ended March 28, 2020, the Company's gross unrecognized tax benefits excluding interest increased from $101.6 million to $212.7 million primarily as a result of uncertain tax positions related to the divestiture of the Medical Aesthetics business, and to a lesser extent intercompany transfer pricing related to ordinary business operations. Other Tax Accounting Pronouncements On October 24, 2016, the FASB issued ASU 2016-16, which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. Under ASU 2016-16, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company adopted ASU 2016-16 in the first quarter of fiscal 2019 on a modified retrospective basis through a cumulative- effect adjustment to decrease the opening balance of accumulated deficit within stockholders' equity as of September 30, 2018, the first day of fiscal 2019. This change in accounting principle resulted in an increase in deferred tax assets of $2.9 million , a decrease in accumulated deficit of $2.5 million , and a decrease in prepaid taxes of $0.4 million as of the beginning of the Company’s fiscal year beginning September 30, 2018. The Company was required to account for the internal restructuring discussed above under ASU 2016-16 and recorded a $29.5 million increase to income tax expense and income tax liabilities and a decrease of $48.7 million to deferred tax expense and net deferred tax liabilities for the six months ended March 30, 2019. The net result was an increase to net income of $19.2 million , or an earnings per share increase of $0.07 . Non-Income Tax Matters The Company is subject to tax examinations for value added, sales-based, payroll, and other non-income tax items. A number of these examinations are ongoing in various jurisdictions. The Company takes certain non-income tax positions in the jurisdictions in which it operates pursuant to ASC 450. In the normal course of business, the Company's positions and conclusions related to its non-income tax positions could be challenged, resulting in assessments by governmental authorities. While the Company believes estimated losses previously recorded are reasonable, certain audits are still ongoing and additional charges could be recorded in the future. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets Intangible assets consisted of the following: Description As of March 28, 2020 As of September 28, 2019 Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Acquired intangible assets: Developed technology $ 3,925.6 $ 2,779.6 $ 3,927.7 $ 2,654.8 Customer relationships 546.8 461.4 525.5 447.5 Trade names 244.0 176.1 245.4 171.1 Distribution agreement — — 2.5 — Non-competition agreements 1.5 1.1 1.4 0.9 Business licenses 2.3 2.2 2.3 2.2 Total acquired intangible assets $ 4,720.2 $ 3,420.4 $ 4,704.8 $ 3,276.5 Internal-use software 51.4 41.7 53.9 43.4 Capitalized software embedded in products 28.2 8.9 27.9 6.9 Total intangible assets $ 4,799.8 $ 3,471.0 $ 4,786.6 $ 3,326.8 In the first quarter of fiscal 2020, the Company's Medical Aesthetics business met the criteria to be designated as assets held-for-sale. As a result, the Company recorded a $30.2 million charge to record the asset group at fair value less costs to sell. In addition, developed technology, customer lists, tradenames, and distribution agreement related to Medical Aesthetics of $24.1 million , $0.9 million , $2.0 million , and $1.2 million , respectively, were reclassified accordingly in the Company's Consolidated Balance Sheet to assets held-for-sale as of December 28, 2019 and subsequently disposed of in the second quarter of fiscal 2020. In the second quarter of fiscal 2020, the Company reviewed its long-lived assets for indicators of impairment as a result of lowering its expectations for revenue and operating income in the short term from the impact of COVID-19 on its business as discussed in Note 1. The Company updated its long-term forecasts and performed an undiscounted cash flow analysis which indicated that the estimated future cash flows are sufficient to recover the carrying values of its asset groups. In addition, the Company had significant cushion from its most recent goodwill impairment test in each of its reporting units and believes, based on its procedures, current facts and expectations, that as of the date of this report it is it not more likely than not that the fair value of each of its reporting units is below their respective carrying values. Given the current uncertainty of the duration and scope of the COVID-19 pandemic, the related economic impact, and the potential longer term impact on the Company's business, financial condition and results of operations, in the future the Company may be required to perform an interim impairment test, in addition to its annual test, and record an impairment charge. Medical Aesthetics Impairment - Fiscal 2019 During the second quarter of fiscal 2019, in connection with commencing its company-wide annual budgeting and strategic planning process as well as evaluating the current operating performance of its Medical Aesthetics reporting unit (comprised solely of the Cynosure business), the Company reduced its short term and long term revenue and operating income forecasts. The updated forecast reflected reduced volume and market penetration projections primarily in the Body Contouring business due to increased competition in the non-invasive fat reduction category, and lower Women's Health product sales primarily from reduced sales volume of the MonaLisa Touch device, which the Company believed was primarily driven by the FDA's public letter in the fourth quarter of fiscal 2018 challenging various medical aesthetics companies marketing of devices for so called "vaginal rejuvenation" procedures relative to their FDA approvals. As a result of the revised forecasts in the second quarter of fiscal 2019, the Company determined indicators of impairment existed and performed an undiscounted cash flow analysis pursuant to ASC 360, Property, Plant, and Equipment - Overall, to determine if the cash flows expected to be generated by this asset group over the estimated remaining useful life of the primary assets were sufficient to recover the carrying value of the asset group, which was determined to be at the reporting unit level. Based on this analysis, which included evaluating various cash flow scenarios, the undiscounted cash flows were not sufficient to recover the carrying value of the asset group. As a result, the Company was required to perform Step 3 of the impairment test and determine the fair value of the asset group. To estimate the fair value, the Company utilized the income approach, which is based on a discounted cash flow (DCF) analysis and calculates the fair value by estimating the after-tax cash flows attributable to the asset group and then discounting the after-tax cash flows to present value using a risk-adjusted discount rate. Assumptions used in the DCF require significant judgment, including judgment about appropriate discount rates and terminal values, growth rates, and the amount and timing of expected future cash flows. The forecasted cash flows are based on the Company's most recent strategic plan and for periods beyond the strategic plan, the Company's estimates were based on assumed growth rates expected as of the measurement date. The Company believed its assumptions were consistent with the plans and estimates that a market participant would use to manage the business. The discount rate used is intended to reflect the risks inherent in future cash flow projections and was based on an estimate of the weighted average cost of capital (WACC) of market participants relative to the asset group. The Company used a discount rate of 11.0%. As a result of this analysis, the fair value of the Medical Aesthetics asset group was below its carrying value, and the Company recorded an impairment charge of $443.8 million during the second quarter of fiscal 2019. The impairment charge was allocated to the long-lived assets as follows: $373.3 million to developed technology, $14.4 million to customer relationships, $31.5 million to trade names, $17.8 million to distribution agreements and $6.8 million to equipment. The Company believed its assumptions used to determine the fair value of the asset group were reasonable. The Company completed the sale of the Medical Aesthetics business in the second quarter of fiscal 2020. Please refer to Note 6 for additional details. The estimated remaining amortization expense of the Company's acquired intangible assets as of March 28, 2020 for each of the five succeeding fiscal years is as follows: Remainder of Fiscal 2020 $ 145.1 Fiscal 2021 $ 269.1 Fiscal 2022 $ 258.7 Fiscal 2023 $ 161.2 Fiscal 2024 $ 150.4 |
Product Warranties
Product Warranties | 6 Months Ended |
Mar. 28, 2020 | |
Guarantees [Abstract] | |
Product Warranties | Product Warranties Product warranty activity was as follows: Balance at Beginning of Period Provisions Acquired Divested Settlements/ Adjustments Balance at End of Period Six Months Ended: March 28, 2020 $ 13.9 $ 5.5 $ 0.5 $ (6.1 ) $ (6.2 ) $ 7.6 March 30, 2019 $ 15.9 $ 5.4 $ — $ — $ (6.9 ) $ 14.4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Mar. 28, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables summarize the changes in accumulated balances of other comprehensive loss for the periods presented: Three Months Ended March 28, 2020 Six Months Ended March 28, 2020 Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Hedged Interest Rate Swaps Total Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Hedged Interest Rate Swaps Total Beginning Balance $ (33.1 ) $ (1.7 ) $ (1.4 ) $ 7.5 $ (28.7 ) $ (41.4 ) $ (1.7 ) $ (2.7 ) $ 3.5 $ (42.3 ) Other comprehensive income (loss) before reclassifications (5.4 ) — (0.1 ) (25.1 ) (30.6 ) 2.9 — (0.1 ) (21.1 ) (18.3 ) Amounts reclassified to statement of income — — 0.4 — 0.4 — — 1.7 — 1.7 Ending Balance $ (38.5 ) $ (1.7 ) $ (1.1 ) $ (17.6 ) $ (58.9 ) $ (38.5 ) $ (1.7 ) $ (1.1 ) $ (17.6 ) $ (58.9 ) Three Months Ended March 30, 2019 Six Months Ended March 30, 2019 Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Total Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Total Beginning Balance $ (29.8 ) $ (1.1 ) $ (1.0 ) $ (31.9 ) $ (26.6 ) $ (1.1 ) $ 2.2 $ (25.5 ) Other comprehensive income (loss) before reclassifications 2.4 — (1.5 ) 0.9 (0.8 ) — (5.4 ) (6.2 ) Amounts reclassified to statement of income — — 0.5 0.5 — — 1.2 1.2 Ending Balance $ (27.4 ) $ (1.1 ) $ (2.0 ) $ (30.5 ) $ (27.4 ) $ (1.1 ) $ (2.0 ) $ (30.5 ) |
Share Repurchase
Share Repurchase | 6 Months Ended |
Mar. 28, 2020 | |
Equity [Abstract] | |
Share Repurchase | Share Repurchase On June 13, 2018, the Board of Directors authorized a share repurchase plan to repurchase up to $500.0 million of the Company's outstanding common stock. This share repurchase plan was effective August 1, 2018 and expired on March 27, 2020. Under this authorization, during the second quarter of fiscal 2020, the Company repurchased 2.4 million shares of its common stock for a total consideration of $130.1 million . As of March 28, 2020, the Company had completed this authorization. On November 19, 2019, the Board of Directors authorized a new share repurchase plan to repurchase up to $500.0 million of the Company's outstanding common stock, effective at the beginning of the third quarter of fiscal 2020. On March 2, 2020 the Board of Directors approved accelerating the effective date of the new share repurchase plan from March 27, 2020 to March 2, 2020. Under this revised authorization, during the second quarter of fiscal 2020, the Company repurchased 3.5 million shares of its common stock for a total consideration of $137.5 million . As of March 28, 2020, $362.6 million remained available under this authorization. On November 19, 2019, the Board of Directors authorized the Company to repurchase up to $205 million of its outstanding shares pursuant to an accelerated share repurchase ("ASR") agreement. On November 22, 2019, the Company executed the ASR agreement with Goldman Sachs & Co. ("Goldman Sachs") pursuant to which the Company repurchased $205 million of the Company's common stock. The initial delivery, of approximately 80% of the shares under the ASR, was 3.3 million shares for which the Company initially allocated $164.0 million of the $205 million paid to Goldman Sachs during the first quarter of fiscal 2020. The Company evaluated the nature of the forward contract aspect of the ASR under ASC 815 and concluded equity classification was appropriate. Final settlement of the transaction under the ASR occurred in the second quarter of fiscal 2020. At settlement, Goldman Sachs delivered an additional 0.6 million shares of the Company's common stock. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements See Note 1 for Recently Adopted Accounting Pronouncements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently a number of improvements. The guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected credit losses during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2021. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-13, as well as all codification improvements in ASU 2019-04, ASU 2019-10, ASU 2019-11 and ASU 2020-03, on its consolidated financial position and results of operations. In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606) . The guidance identifies, evaluates, and improves areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided. The amendments in that Update expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. For entities that have adopted the amendments in Update 2018-07, the updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2021. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2019-08 on its consolidated financial position and results of operations. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of the adoption of ASU 2019-12 on its consolidated financial position and results of operations. In January 2020, FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) . The Board is issuing this Update to clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815. This update could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. For entities that have adopted the amendments in Update 2020-01, the updated guidance is effective for annual periods beginning after December 15, 2020, and is applicable to the Company in fiscal 2022. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2020-01 on its consolidated financial position and results of operations. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements See Note 1 for Recently Adopted Accounting Pronouncements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently a number of improvements. The guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected credit losses during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2021. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-13, as well as all codification improvements in ASU 2019-04, ASU 2019-10, ASU 2019-11 and ASU 2020-03, on its consolidated financial position and results of operations. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables provide revenue from contracts with customers by business and geographic region on a disaggregated basis: Three Months Ended March 28, 2020 Three Months Ended March 30, 2019 Business ( in millions ) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 73.2 $ 40.2 $ 113.4 $ 76.6 $ 38.9 $ 115.5 Molecular Diagnostics 149.8 40.8 190.6 136.8 31.0 167.8 Blood Screening 15.2 — 15.2 13.4 — 13.4 Total $ 238.2 $ 81.0 $ 319.2 $ 226.8 $ 69.9 $ 296.7 Breast Health: Breast Imaging $ 186.0 $ 64.2 $ 250.2 $ 206.2 $ 59.7 $ 265.9 Interventional Breast Solutions 48.4 9.2 57.6 46.8 8.8 55.6 Total $ 234.4 $ 73.4 $ 307.8 $ 253.0 $ 68.5 $ 321.5 GYN Surgical $ 86.7 $ 18.7 $ 105.4 $ 84.1 $ 18.1 $ 102.2 Medical Aesthetics $ — $ — $ — $ 37.6 $ 36.2 $ 73.8 Skeletal Health $ 15.6 $ 8.1 $ 23.7 $ 14.0 $ 10.2 $ 24.2 $ 574.9 $ 181.2 $ 756.1 $ 615.5 $ 202.9 $ 818.4 Six Months Ended March 28, 2020 Six Months Ended March 30, 2019 Business (in millions) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 150.7 $ 83.7 $ 234.4 $ 155.8 $ 77.8 $ 233.6 Molecular Diagnostics 291.9 77.2 369.1 270.9 61.2 332.1 Blood Screening 27.2 — 27.2 27.6 — 27.6 Total $ 469.8 $ 160.9 $ 630.7 $ 454.3 $ 139.0 $ 593.3 Breast Health: Breast Imaging $ 395.4 $ 129.6 $ 525.0 $ 412.7 $ 122.9 $ 535.6 Interventional Breast Solutions 95.5 18.4 113.9 92.9 17.7 110.6 Total $ 490.9 $ 148.0 $ 638.9 $ 505.6 $ 140.6 $ 646.2 GYN Surgical $ 185.5 $ 39.0 $ 224.5 $ 175.2 $ 35.4 $ 210.6 Medical Aesthetics $ 30.9 $ 34.4 $ 65.3 $ 74.9 $ 78.7 $ 153.6 Skeletal Health $ 30.5 $ 16.7 $ 47.2 $ 27.2 $ 18.2 $ 45.4 $ 1,207.6 $ 399.0 $ 1,606.6 $ 1,237.2 $ 411.9 $ 1,649.1 Three Months Ended Six Months Ended Geographic Regions ( in millions ) March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 United States $ 574.9 $ 615.5 $ 1,207.6 $ 1,237.2 Europe 111.8 102.1 221.2 203.2 Asia-Pacific 41.7 64.3 111.8 134.0 Rest of World 27.7 36.5 66.0 74.7 $ 756.1 $ 818.4 $ 1,606.6 $ 1,649.1 The following table provides revenue recognized by source: Three Months Ended Six Months Ended Revenue by type (in millions) March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Capital equipment, components and software $ 166.6 $ 239.4 $ 399.5 $ 487.8 Consumables 457.0 428.4 923.4 863.1 Service 127.2 141.1 272.2 283.0 Other 5.3 9.5 11.5 15.2 $ 756.1 $ 818.4 $ 1,606.6 $ 1,649.1 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Schedule of Lessee Lease Assets And Liabilities | The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases: Three Months Ended March 28, 2020 Operating Leases Finance Lease Weighted average remaining lease term 5.93 8.14 Weighted average discount rate 1.95 % 5.1 % The following table presents supplemental balance sheet information related to the Company's operating and finance leases: March 28, 2020 Balance Sheet Location Operating Leases Finance Lease Assets Lease right-of-use assets Other assets $ 82.6 $ — Liabilities Operating lease liabilities (current) Accrued expenses $ 22.1 $ — Finance lease liabilities (current) Finance lease obligations - short term $ — $ 1.8 Operating lease liabilities (non-current) Other long-term liabilities $ 68.7 $ — Finance lease liabilities (non-current) Finance lease obligations - long term $ — $ 18.4 |
Schedule of Additional Lease Information | The following table provides information related to the Company’s operating and finance leases: Three Months Ended March 28, 2020 Six Months Ended March 28, 2020 Operating lease cost (a) $ 6.8 $ 13.8 Finance lease cost - amortization of right-of-use assets $ — $ 0.3 Finance lease cost - interest cost $ 0.3 $ 0.5 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.3 $ 0.5 Operating cash flows from operating leases $ 5.7 $ 11.7 Financing cash flows from finance leases $ 0.4 $ 0.9 Total cash paid for amounts included in the measurement of lease liabilities $ 6.4 $ 13.1 ROU assets arising from entering into new operating lease obligations $ 3.3 $ 4.7 (a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and six months ended March 28, 2020. |
Schedule of Operating Lease Liability Maturities | The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of March 28, 2020 : Fiscal Year Operating Leases Finance Lease 2020 remaining $ 11.9 $ 1.4 2021 22.5 2.9 2022 17.8 3.0 2023 11.4 3.0 2024 9.3 3.0 Thereafter 23.9 11.4 Total future minimum lease payments 96.8 24.7 Less: imputed interest (6.0 ) (4.5 ) Present value of lease liabilities $ 90.8 $ 20.2 |
Schedule of Finance Lease Liability Maturities | The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of March 28, 2020 : Fiscal Year Operating Leases Finance Lease 2020 remaining $ 11.9 $ 1.4 2021 22.5 2.9 2022 17.8 3.0 2023 11.4 3.0 2024 9.3 3.0 Thereafter 23.9 11.4 Total future minimum lease payments 96.8 24.7 Less: imputed interest (6.0 ) (4.5 ) Present value of lease liabilities $ 90.8 $ 20.2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at March 28, 2020 : Fair Value at Reporting Date Using Balance as of March 28, 2020 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Foreign currency option contracts 0.9 — 0.9 — Forward foreign currency contracts 1.9 — 1.9 — Total $ 2.8 $ — $ 2.8 $ — Liabilities: Contingent consideration $ 0.9 $ — $ — $ 0.9 Interest rate swaps - derivative $ 22.9 $ — $ 22.9 $ — Total $ 23.8 $ — $ 22.9 $ 0.9 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Faxitron | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total purchase price was allocated to SSI's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of November 21, 2019, as set forth below. The preliminary purchase price allocation is as follows: Cash $ 2.6 Accounts receivable 7.1 Inventory 10.0 Property, plant and equipment 6.5 Other assets 4.4 Accounts payable and accrued expenses (13.0 ) Deferred revenue (1.8 ) Short and long-term debt (8.8 ) Other liabilities (3.8 ) Identifiable intangible assets: — Developed technology 38.3 Customer relationships 4.0 Trade names 3.0 Deferred income taxes, net (1.5 ) Goodwill 22.4 Purchase Price $ 69.4 |
Focal Therapeutics | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total purchase price was allocated to Focal's tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of October 1, 2018, as set forth below: Cash $ 2.2 Accounts receivable 2.0 Inventory 7.9 Other assets 0.5 Accounts payable and accrued expenses (5.6 ) Long-term debt (2.5 ) Identifiable intangible assets: Developed technology 83.1 In-process research and development 11.4 Trade names 2.7 Deferred income taxes, net (12.7 ) Goodwill 31.1 Purchase Price $ 120.1 |
Disposition Disposition (Tables
Disposition Disposition (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale | Assets: Cash $ 10.7 Accounts Receivable 59.6 Inventory 90.6 Prepaid expenses and other current assets 7.7 Property, plant, and equipment 4.0 Intangible assets 28.2 Other assets 9.8 Total assets disposed of $ 210.6 Liabilities: Accounts payable $ 12.3 Accrued expenses 49.0 Deferred revenue 16.6 Total liabilities disposed of $ 77.9 |
Schedule of Income from Operation of Disposed Business | from operations of the disposed business for the three and six month periods ended March 28, 2020 and March 30, 2019 was as follows: Three Months Ended Six Months Ended March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Loss from operations $ — (468.3 ) $ (46.5 ) $ (488.7 ) |
Borrowings and Credit Arrange_2
Borrowings and Credit Arrangements (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Company's Borrowings | The Company’s borrowings consisted of the following: March 28, September 28, Current debt obligations, net of debt discount and deferred issuance costs: Term Loan $ 56.1 $ 37.4 Revolver 750.0 — Securitization Program — 234.0 Total current debt obligations $ 806.1 $ 271.4 Long-term debt obligations, net of debt discount and deferred issuance costs: Term Loan 1,416.2 1,452.4 Debt assumed from SSI acquisition 0.6 — 2025 Senior Notes 938.3 937.3 2028 Senior Notes 394.2 393.9 Total long-term debt obligations $ 2,749.3 $ 2,783.6 Total debt obligations $ 3,555.4 $ 3,055.0 |
Schedule of Line of Credit Facilities | |
Schedule Of Interest Expense Under Convertible Notes | 8. Interest expense for the 2028 Senior Notes and 2025 Senior Notes is as follows: Three Months Ended Six Months Ended March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Interest Rate Interest Expense Interest Expense Interest Expense Interest Expense 2028 Senior Notes 4.625 % $ 4.8 $ 4.8 $ 9.6 $ 9.6 2025 Senior Notes 4.375 % 10.9 10.9 21.8 21.8 Total $ 15.7 $ 15.7 $ 31.4 $ 31.4 Accounts Receivable Securitization Program On March 26, 2020, the Company paid-off the total amount outstanding of $250.0 million previously borrowed under the Accounts Receivable Securitization Program (the "Securitization Program"). As of March 28, 2020, the Company did not have any borrowings under this program. On April 13, 2020, the Company amended the Credit and Security agreement with the lenders, temporarily suspending the ability to borrow and the need to comply with covenants for up to a year. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the balance sheet as of March 28, 2020 : Balance Sheet Location March 28, 2020 September 28, 2019 Assets: Derivative instruments designated as a cash flow hedge: Interest rate cap agreements Prepaid expenses and other current assets $ — $ 0.1 Interest rate swap contract Other assets — 4.7 $ — $ 4.8 Derivatives not designated as hedging instruments: Forward foreign currency contracts Prepaid expenses and other current assets $ 1.9 $ 0.9 Foreign currency option contracts Prepaid expenses and other current assets 0.9 2.0 $ 2.8 $ 2.9 Liabilities: Derivative instruments designated as a cash flow hedge: Interest rate swap contract Accrued expenses $ 2.4 $ — Interest rate swap contract Other long-term liabilities 20.5 — Total $ 22.9 $ — Derivatives not designated as hedging instruments: Forward foreign currency contracts Accrued expenses $ — $ 0.1 |
Schedule of Unrealized Loss Recognized in AOCI | The following table presents the unrealized gain (loss) recognized in AOCI related to the interest rate caps and interest rate swap for the following reporting periods: Three Months Ended Six Months Ended March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Amount of loss recognized in other comprehensive income, net of taxes: Interest rate swap $ (25.2 ) $ — $ (20.8 ) $ — Interest rate cap agreements (0.1 ) (1.5 ) (0.4 ) (5.4 ) Total $ (25.3 ) $ (1.5 ) $ (21.2 ) $ (5.4 ) |
Schedule of Adjustment to Fair Value within the Consolidated Statements of Income | The following table presents the adjustment to fair value (realized and unrealized) recorded within the Consolidated Statements of Income for derivative instruments for which the Company did not elect hedge accounting: Derivatives not classified as hedging instruments Amount of (Loss) Gain Recognized in Income Three Months Ended March 28, 2020 Three Months Ended March 30, 2019 Six Months Ended March 28, 2020 Six Months Ended March 30, 2019 Forward foreign currency contracts $ 2.7 $ 0.4 $ 1.3 $ 5.5 Foreign currency option contracts 0.6 — (1.1 ) — Total $ 3.3 $ 0.4 $ 0.2 $ 5.5 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Share Amounts | A reconciliation of basic and diluted share amounts is as follows: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, Basic weighted average common shares outstanding 263,238 269,235 265,566 269,913 Weighted average common stock equivalents from assumed exercise of stock options and issuance of stock units 1,268 — 1,548 — Diluted weighted average common shares outstanding 264,506 269,235 267,114 269,913 Weighted-average anti-dilutive shares related to: Outstanding stock options 1,677 4,031 1,483 4,578 Stock Units 10 — 6 — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense in Consolidated Statements of Operations | The following presents stock-based compensation expense in the Company’s Consolidated Statements of Operations: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, Cost of revenues $ 1.7 $ 2.0 $ 3.8 $ 4.0 Research and development 2.3 2.7 4.6 5.4 Selling and marketing 2.8 2.7 5.6 5.4 General and administrative 6.5 10.1 17.4 19.8 Restructuring 2.4 — 2.4 — $ 15.7 $ 17.5 $ 33.8 $ 34.6 |
Weighted-Average Assumptions Utilized to Value Stock Options | The Company uses a binomial model to determine the fair value of its stock options. The weighted-average assumptions utilized to value these stock options are indicated in the following table: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, Risk-free interest rate 1.7 % 3.0 % 1.7 % 3.0 % Expected volatility 33.6 % 34.3 % 33.6 % 34.3 % Expected life (in years) 4.8 4.8 4.8 4.8 Dividend yield — — — — Weighted average fair value of options granted $ 14.45 $ 15.33 $ 13.87 $ 13.50 |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Information of Inventories | March 28, September 28, Inventories Raw materials $ 155.1 $ 166.1 Work-in-process 56.4 54.5 Finished goods 189.8 224.3 $ 401.3 $ 444.9 |
Other Balance Sheet Information of Property, Plant and Equipment | Property, plant and equipment Equipment $ 407.6 $ 379.2 Equipment under customer usage agreements 452.8 435.5 Building and improvements 162.9 196.7 Leasehold improvements 42.8 61.7 Land 40.6 46.3 Furniture and fixtures 15.6 17.5 1,122.3 1,136.9 Less – accumulated depreciation and amortization (677.0 ) (666.0 ) $ 445.3 $ 470.9 |
Business Segments and Geograp_2
Business Segments and Geographic Information (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | egment information is as follows: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, Total revenues: Diagnostics $ 319.2 $ 296.7 $ 630.7 $ 593.3 Breast Health 307.8 321.5 638.9 646.2 GYN Surgical 105.4 102.2 224.5 210.6 Medical Aesthetics — 73.8 65.3 153.6 Skeletal Health 23.7 24.2 47.2 45.4 $ 756.1 $ 818.4 $ 1,606.6 $ 1,649.1 Income (loss) from operations: Diagnostics $ 57.3 $ 31.1 $ 106.8 $ 74.4 Breast Health 75.9 99.0 169.8 196.8 GYN Surgical 23.9 20.5 55.4 47.6 Medical Aesthetics (2.4 ) (473.9 ) (53.4 ) (499.1 ) Skeletal Health 1.7 0.1 2.6 (2.4 ) $ 156.4 $ (323.2 ) $ 281.2 $ (182.7 ) Depreciation and amortization: Diagnostics $ 59.3 $ 61.6 $ 118.4 $ 123.4 Breast Health 13.1 8.9 23.1 18.2 GYN Surgical 21.1 21.9 42.1 43.9 Medical Aesthetics — 25.1 4.1 50.6 Skeletal Health 0.2 0.1 0.4 0.3 $ 93.7 $ 117.6 $ 188.1 $ 236.4 Capital expenditures: Diagnostics $ 17.1 $ 16.0 $ 35.3 $ 30.4 Breast Health 8.1 4.7 14.5 6.8 GYN Surgical 5.3 3.1 10.6 6.6 Medical Aesthetics — 3.4 1.4 4.5 Skeletal Health 0.1 0.3 0.2 0.6 Corporate 1.1 1.8 1.1 3.0 $ 31.7 $ 29.3 $ 63.1 $ 51.9 March 28, September 28, Identifiable assets: Diagnostics $ 2,193.8 $ 2,276.6 Breast Health 1,243.9 1,127.8 GYN Surgical 1,284.4 1,328.6 Medical Aesthetics — 159.3 Skeletal Health 30.2 27.3 Corporate 2,069.5 1,522.5 $ 6,821.8 $ 6,442.1 |
Revenues by Geography | Revenues by geography as a percentage of total revenues were as follows: Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, United States 76.0 % 75.1 % 75.1 % 75.0 % Europe 14.8 % 12.5 % 13.8 % 12.3 % Asia-Pacific 5.5 % 7.9 % 7.0 % 8.1 % Rest of World 3.7 % 4.5 % 4.1 % 4.6 % 100.0 % 100.0 % 100.0 % 100.0 % |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: Description As of March 28, 2020 As of September 28, 2019 Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Acquired intangible assets: Developed technology $ 3,925.6 $ 2,779.6 $ 3,927.7 $ 2,654.8 Customer relationships 546.8 461.4 525.5 447.5 Trade names 244.0 176.1 245.4 171.1 Distribution agreement — — 2.5 — Non-competition agreements 1.5 1.1 1.4 0.9 Business licenses 2.3 2.2 2.3 2.2 Total acquired intangible assets $ 4,720.2 $ 3,420.4 $ 4,704.8 $ 3,276.5 Internal-use software 51.4 41.7 53.9 43.4 Capitalized software embedded in products 28.2 8.9 27.9 6.9 Total intangible assets $ 4,799.8 $ 3,471.0 $ 4,786.6 $ 3,326.8 |
Schedule of Estimated Amortization Expense | The estimated remaining amortization expense of the Company's acquired intangible assets as of March 28, 2020 for each of the five succeeding fiscal years is as follows: Remainder of Fiscal 2020 $ 145.1 Fiscal 2021 $ 269.1 Fiscal 2022 $ 258.7 Fiscal 2023 $ 161.2 Fiscal 2024 $ 150.4 |
Product Warranties (Tables)
Product Warranties (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Guarantees [Abstract] | |
Product Warranty Activity | Product warranty activity was as follows: Balance at Beginning of Period Provisions Acquired Divested Settlements/ Adjustments Balance at End of Period Six Months Ended: March 28, 2020 $ 13.9 $ 5.5 $ 0.5 $ (6.1 ) $ (6.2 ) $ 7.6 March 30, 2019 $ 15.9 $ 5.4 $ — $ — $ (6.9 ) $ 14.4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in Accumulated Other Comprehensive Income | The following tables summarize the changes in accumulated balances of other comprehensive loss for the periods presented: Three Months Ended March 28, 2020 Six Months Ended March 28, 2020 Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Hedged Interest Rate Swaps Total Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Hedged Interest Rate Swaps Total Beginning Balance $ (33.1 ) $ (1.7 ) $ (1.4 ) $ 7.5 $ (28.7 ) $ (41.4 ) $ (1.7 ) $ (2.7 ) $ 3.5 $ (42.3 ) Other comprehensive income (loss) before reclassifications (5.4 ) — (0.1 ) (25.1 ) (30.6 ) 2.9 — (0.1 ) (21.1 ) (18.3 ) Amounts reclassified to statement of income — — 0.4 — 0.4 — — 1.7 — 1.7 Ending Balance $ (38.5 ) $ (1.7 ) $ (1.1 ) $ (17.6 ) $ (58.9 ) $ (38.5 ) $ (1.7 ) $ (1.1 ) $ (17.6 ) $ (58.9 ) Three Months Ended March 30, 2019 Six Months Ended March 30, 2019 Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Total Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Total Beginning Balance $ (29.8 ) $ (1.1 ) $ (1.0 ) $ (31.9 ) $ (26.6 ) $ (1.1 ) $ 2.2 $ (25.5 ) Other comprehensive income (loss) before reclassifications 2.4 — (1.5 ) 0.9 (0.8 ) — (5.4 ) (6.2 ) Amounts reclassified to statement of income — — 0.5 0.5 — — 1.2 1.2 Ending Balance $ (27.4 ) $ (1.1 ) $ (2.0 ) $ (30.5 ) $ (27.4 ) $ (1.1 ) $ (2.0 ) $ (30.5 ) |
Basis of Presentation Details (
Basis of Presentation Details (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 |
Debt Instrument [Line Items] | |||
Long-term Debt, Current Maturities | $ 806.1 | $ 271.4 | |
Right of use asset recognized - operating | $ 91.7 | ||
Right of use asset recognized - Finance Lease | 10.2 | ||
Right of use liability recognized - Operating lease | 96.6 | ||
Right of use liability recognized - Finance lease | 21 | ||
Derecognition of property, plant and equipment | 32.6 | ||
Derecognition of finance leases | $ 35.2 | ||
Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Current Maturities | $ 750 | $ 0 |
Revenue - Business Revenue (Det
Revenue - Business Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 756.1 | $ 818.4 | $ 1,606.6 | $ 1,649.1 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 574.9 | 615.5 | 1,207.6 | 1,237.2 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 181.2 | 202.9 | 399 | 411.9 |
Diagnostics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 319.2 | 296.7 | 630.7 | 593.3 |
Diagnostics | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 238.2 | 226.8 | 469.8 | 454.3 |
Diagnostics | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 81 | 69.9 | 160.9 | 139 |
Diagnostics | Cytology & Perinatal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 113.4 | 115.5 | 234.4 | 233.6 |
Diagnostics | Cytology & Perinatal | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 73.2 | 76.6 | 150.7 | 155.8 |
Diagnostics | Cytology & Perinatal | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40.2 | 38.9 | 83.7 | 77.8 |
Diagnostics | Molecular Diagnostics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 190.6 | 167.8 | 369.1 | 332.1 |
Diagnostics | Molecular Diagnostics | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 149.8 | 136.8 | 291.9 | 270.9 |
Diagnostics | Molecular Diagnostics | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40.8 | 31 | 77.2 | 61.2 |
Diagnostics | Blood Screening | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15.2 | 13.4 | 27.2 | 27.6 |
Diagnostics | Blood Screening | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15.2 | 13.4 | 27.2 | 27.6 |
Diagnostics | Blood Screening | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Breast Health | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 307.8 | 321.5 | 638.9 | 646.2 |
Breast Health | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 234.4 | 253 | 490.9 | 505.6 |
Breast Health | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 73.4 | 68.5 | 148 | 140.6 |
Breast Health | Breast Imaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 250.2 | 265.9 | 525 | 535.6 |
Breast Health | Breast Imaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 186 | 206.2 | 395.4 | 412.7 |
Breast Health | Breast Imaging | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 64.2 | 59.7 | 129.6 | 122.9 |
Breast Health | Interventional Breast Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 57.6 | 55.6 | 113.9 | 110.6 |
Breast Health | Interventional Breast Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 48.4 | 46.8 | 95.5 | 92.9 |
Breast Health | Interventional Breast Solutions | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9.2 | 8.8 | 18.4 | 17.7 |
GYN Surgical | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 105.4 | 102.2 | 224.5 | 210.6 |
GYN Surgical | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 86.7 | 84.1 | 185.5 | 175.2 |
GYN Surgical | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18.7 | 18.1 | 39 | 35.4 |
Medical Aesthetics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 73.8 | 65.3 | 153.6 |
Medical Aesthetics | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 37.6 | 30.9 | 74.9 |
Medical Aesthetics | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 36.2 | 34.4 | 78.7 |
Skeletal Health | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23.7 | 24.2 | 47.2 | 45.4 |
Skeletal Health | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15.6 | 14 | 30.5 | 27.2 |
Skeletal Health | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 8.1 | $ 10.2 | $ 16.7 | $ 18.2 |
Revenue - Geographical Revenue
Revenue - Geographical Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 756.1 | $ 818.4 | $ 1,606.6 | $ 1,649.1 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 574.9 | 615.5 | 1,207.6 | 1,237.2 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 111.8 | 102.1 | 221.2 | 203.2 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 41.7 | 64.3 | 111.8 | 134 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 27.7 | $ 36.5 | $ 66 | $ 74.7 |
Revenue - Revenue by Type (Deta
Revenue - Revenue by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 756.1 | $ 818.4 | $ 1,606.6 | $ 1,649.1 |
Capital equipment, components and software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 166.6 | 239.4 | 399.5 | 487.8 |
Consumables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 457 | 428.4 | 923.4 | 863.1 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 127.2 | 141.1 | 272.2 | 283 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5.3 | $ 9.5 | $ 11.5 | $ 15.2 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 6 Months Ended |
Mar. 28, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 583.5 |
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized | $ 26.2 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) | Mar. 28, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 23.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 32.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 24.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 14.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 7.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 28, 2020 | Mar. 28, 2020 | Sep. 28, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Period with option to terminate lease | 1 year | ||
Extension period | 20 years | ||
Weighted average discount rate (percentage) | 0.0259 | ||
Finance lease liability, current | $ 1.8 | ||
Finance lease liabilities (non-current) | $ 19.2 | ||
Lease revenue as a percentage of total (percentage) | 0.03 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating And Finance Lease, Remaining Lease Term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating And Finance Lease, Remaining Lease Term | 15 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) | Mar. 28, 2020 | Sep. 28, 2019 |
Lessee, Lease, Description [Line Items] | ||
Finance lease liabilities (current) | $ 1,800,000 | |
Finance lease liabilities (non-current) | $ 19,200,000 | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 11 months 4 days | |
Finance Lease, Weighted Average Remaining Lease Term | 8 years 1 month 20 days | |
Operating Leases, Weighted average discount rate | 1.95% | |
Financing Leases, Weighted average discount rate | 5.10% | |
Other assets | ||
Lessee, Lease, Description [Line Items] | ||
Operating Leases, Lease right-of-use asset | $ 82,600 | |
Accrued expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liabilities (current) | 22,100 | |
Finance lease obligations - short term | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease liabilities (current) | 1,800 | |
Other long-term liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liabilities (non-current) | 68,700 | |
Finance lease obligations - long term | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease liabilities (non-current) | $ 18,400 |
Leases - Additional Lease Infor
Leases - Additional Lease Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 28, 2020 | Mar. 28, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 6,800 | $ 13,800 |
Finance lease cost - amortization of right-of-use assets | 0 | 300 |
Finance lease cost - interest cost | 300 | 500 |
Operating cash flows from finance leases | 300 | 500 |
Operating cash flows from operating leases | 5,700 | 11,700 |
Financing cash flows from finance leases | 400 | 900 |
Total cash paid for amounts included in the measurement of lease liabilities | 6,400 | 13,100 |
ROU assets arising from entering into new operating lease obligations | $ 3,300 | $ 4,700 |
Leases - Lease Liability Maturi
Leases - Lease Liability Maturity Schedule (Details) | Mar. 28, 2020USD ($) |
Leases [Abstract] | |
2020 remaining | $ 11,900 |
2021 | 22,500 |
2022 | 17,800 |
2023 | 11,400 |
2024 | 9,300 |
Thereafter | 23,900 |
Total future minimum lease payments | 96,800 |
Less: imputed interest | (6,000) |
Present value of lease liabilities | 90,800 |
2020 remaining | 1,400 |
2021 | 2,900 |
2022 | 3,000 |
2023 | 3,000 |
2024 | 3,000 |
Thereafter | 11,400 |
Total future minimum lease payments | 24,700 |
Less: imputed interest | (4,500) |
Present value of lease liabilities | $ 20,200 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) $ in Millions | Mar. 28, 2020USD ($) |
Assets: | |
Assets measured at fair value on a recurring basis | $ 2.8 |
Liabilities: | |
Total | 23.8 |
Foreign currency option contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 0.9 |
Forward foreign currency contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 1.9 |
Contingent Consideration Type | |
Liabilities: | |
Contingent consideration | 0.9 |
Interest Rate Swap | |
Assets: | |
Assets measured at fair value on a recurring basis | 22.9 |
Quoted Prices in Active Market for Identical Assets (Level 1) | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Liabilities: | |
Total | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Foreign currency option contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Forward foreign currency contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Contingent Consideration Type | |
Liabilities: | |
Contingent consideration | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Interest Rate Swap | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Significant Other Observable Inputs (Level 2) | |
Assets: | |
Assets measured at fair value on a recurring basis | 2.8 |
Liabilities: | |
Total | 22.9 |
Significant Other Observable Inputs (Level 2) | Foreign currency option contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 0.9 |
Significant Other Observable Inputs (Level 2) | Forward foreign currency contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 1.9 |
Significant Other Observable Inputs (Level 2) | Contingent Consideration Type | |
Liabilities: | |
Contingent consideration | 0 |
Significant Other Observable Inputs (Level 2) | Interest Rate Swap | |
Assets: | |
Assets measured at fair value on a recurring basis | 22.9 |
Significant Unobservable Inputs (Level 3) | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Liabilities: | |
Total | 0.9 |
Significant Unobservable Inputs (Level 3) | Foreign currency option contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Significant Unobservable Inputs (Level 3) | Forward foreign currency contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration Type | |
Liabilities: | |
Contingent consideration | 0.9 |
Significant Unobservable Inputs (Level 3) | Interest Rate Swap | |
Assets: | |
Assets measured at fair value on a recurring basis | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Dec. 28, 2019 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 9.8 | ||||
Intangible asset and equipment impairment charges | $ 30.2 | $ 30.2 | $ 443.8 | ||
Borrowed principal | 1,000 | 1,000 | |||
Credit Agreement | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Borrowed principal | 2,200 | 2,200 | |||
2025 Senior Notes | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Fair value of debt instrument | 947.6 | 947.6 | |||
2028 Senior Notes | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Fair value of debt instrument | 402.1 | $ 402.1 | |||
Medical Aesthetics | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Intangible asset and equipment impairment charges | $ 30.2 | $ 30.2 | $ 443.8 | ||
Acquired intangible assets [Member] | Medical Aesthetics | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Intangible asset and equipment impairment charges | 437 | ||||
Equipment [Member] | Medical Aesthetics | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Intangible asset and equipment impairment charges | $ 6.8 |
Business Combination - Narrativ
Business Combination - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | Dec. 30, 2019USD ($) | Nov. 21, 2019USD ($)shares | Oct. 01, 2019USD ($) | Aug. 01, 2019USD ($) | Oct. 01, 2018USD ($) | Jul. 31, 2018 | Dec. 11, 2017 | Nov. 30, 2019USD ($) | Sep. 30, 2019$ / shares | Sep. 28, 2019USD ($) | Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Nov. 20, 2019 |
Business Acquisition [Line Items] | |||||||||||||
Consideration transferred | $ 69.3 | ||||||||||||
Ownership percentage | 78.00% | ||||||||||||
Goodwill | $ 2,563.7 | $ 2,592 | |||||||||||
Equity interest in acquiree, remeasurement gain | $ 3.2 | ||||||||||||
Consideration related to equity method investment | 17.9 | ||||||||||||
Consideration related to newly acquired shares | $ 12.6 | ||||||||||||
Consideration, portion related to loan repayment | 30.2 | ||||||||||||
Business Combination, Consideration related to fair value of noncontrolling interest | 8.6 | ||||||||||||
Discount rate percentage | 0.120 | ||||||||||||
Intangible assets, net | 1,459.8 | $ 1,328.8 | |||||||||||
Emsor | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Period of cumulative revenue to trigger payment of contingent consideration liability | 2 years | ||||||||||||
Faxitron | Developed technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average period | 9 years | ||||||||||||
Faxitron | Customer relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average period | 9 years | ||||||||||||
Faxitron | Trade names | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average period | 8 years 3 months 18 days | ||||||||||||
Focal Therapeutics | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration transferred | $ 12.5 | $ 120.1 | |||||||||||
Purchase price withheld | $ 14 | $ 1.5 | |||||||||||
Period for payment of contingent consideration liabilities | 1 year | ||||||||||||
Goodwill | $ 31.1 | ||||||||||||
Focal Therapeutics | Developed technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Identifiable intangible assets | $ 83.1 | ||||||||||||
Weighted average period | 11 years | ||||||||||||
Focal Therapeutics | In-process research and development | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Identifiable intangible assets | $ 11.4 | ||||||||||||
Focal Therapeutics | In-process research and development | Minimum | Discount Rate | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets, fair value (percentage) | 15.50% | ||||||||||||
Focal Therapeutics | In-process research and development | Maximum | Discount Rate | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets, fair value (percentage) | 16.50% | ||||||||||||
Focal Therapeutics | Trade names | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Identifiable intangible assets | $ 2.7 | ||||||||||||
Weighted average period | 13 years | ||||||||||||
SuperSonic Imagine | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration transferred | 12.6 | $ 18.2 | |||||||||||
Equity interest in acquiree, Percentage | 46.00% | 81.00% | |||||||||||
Goodwill | 22.4 | ||||||||||||
Other assets | $ 6.5 | ||||||||||||
Percentage of outstanding shares acquired | 46.00% | 50.00% | |||||||||||
Cash tender offer price (per share) | $ / shares | $ 1.50 | ||||||||||||
Shares acquired | shares | 7.6 | ||||||||||||
Customer relationships | $ 4 | ||||||||||||
Alpha Imaging [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration transferred | $ 18 | ||||||||||||
Holdback | 1 | ||||||||||||
Purchase price withheld | $ 0.9 | ||||||||||||
Customer relationships | $ 18.1 | ||||||||||||
Health Beacons [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration transferred | 19.3 | ||||||||||||
Holdback | 2.3 | ||||||||||||
Goodwill | 5.7 | ||||||||||||
Intangible assets, net | 10.7 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 2.9 | ||||||||||||
Other Income | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Income (loss) from equity method investments | $ 3.3 |
Business Combination - Purchase
Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 | Oct. 01, 2018 |
Purchase Price Allocation [Line Items] | |||
Goodwill | $ 2,592 | $ 2,563.7 | |
Focal Therapeutics | |||
Purchase Price Allocation [Line Items] | |||
Cash | $ 2.2 | ||
Accounts receivable | 2 | ||
Inventory | 7.9 | ||
Other assets | 0.5 | ||
Accounts payable and accrued expenses | (5.6) | ||
Long-term debt | (2.5) | ||
Deferred income taxes, net | (12.7) | ||
Goodwill | 31.1 | ||
Purchase Price | 120.1 | ||
Focal Therapeutics | Developed technology | |||
Purchase Price Allocation [Line Items] | |||
Identifiable intangible assets | 83.1 | ||
Focal Therapeutics | In-process research and development | |||
Purchase Price Allocation [Line Items] | |||
Identifiable intangible assets | 11.4 | ||
Focal Therapeutics | Trade names | |||
Purchase Price Allocation [Line Items] | |||
Identifiable intangible assets | $ 2.7 |
Business Combinations Business
Business Combinations Business Combinations - Purchase Price Allocation, SuperSonic (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Nov. 21, 2019 | Sep. 28, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,592 | $ 2,563.7 | |
SuperSonic Imagine | |||
Business Acquisition [Line Items] | |||
Cash | $ 2.6 | ||
Accounts receivable | 7.1 | ||
Inventory | 10 | ||
Other assets | 6.5 | ||
Other assets | 4.4 | ||
Accounts payable and accrued expenses | 13 | ||
Deferred revenue | 1.8 | ||
Short and long-term debt | (8.8) | ||
Other liabilities | (3.8) | ||
Developed technology | 38.3 | ||
Customer relationships | 4 | ||
Trade names | 3 | ||
Deferred income taxes, net | (1.5) | ||
Goodwill | 22.4 | ||
Purchase Price | $ 69.4 |
Disposition (Details)
Disposition (Details) - USD ($) $ in Millions | Nov. 20, 2019 | Mar. 28, 2020 | Dec. 28, 2019 | Mar. 28, 2020 | Mar. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Expenses from disposition | $ 2.4 | ||||
Intangible asset and equipment impairment charges | $ 30.2 | $ 30.2 | $ 443.8 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Medical Aesthetics | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 205 | ||||
Proceeds from Divestiture of Businesses | $ 153.4 | ||||
Cost of revenues | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Intangible asset and equipment impairment charges | 25.8 | ||||
Operating Expense | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Intangible asset and equipment impairment charges | $ 4.4 |
Disposition - Schedule of Asset
Disposition - Schedule of Assets and Liabilities Held For Sale (Details) - Medical Aesthetics [Domain] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Dec. 28, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash | $ 10,700 |
Accounts Receivable | 59,600 |
Inventory | 90,600 |
Prepaid expenses and other current assets | 7,700 |
Property, plant, and equipment | 4,000 |
Intangible assets | 28,200 |
Other assets | 9,800 |
Total assets disposed of | 210,600 |
Accounts payable | 12,300 |
Accrued expenses | 49,000 |
Deferred revenue | 16,600 |
Total liabilities disposed of | $ 77,900 |
Disposition - Schedule of Dispo
Disposition - Schedule of Disposition Related Income Statement Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ 0 | $ (468,300) | $ (46,500) | $ (488,700) |
Borrowings and Credit Arrange_3
Borrowings and Credit Arrangements - Company's Borrowings (Detail) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 806.1 | $ 271.4 |
Total long-term debt obligations | 2,749.3 | 2,783.6 |
Total debt obligations | 3,555.4 | 3,055 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 56.1 | 37.4 |
Long term debt obligations. excluding convertible notes | 1,416.2 | 1,452.4 |
Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 750 | 0 |
Securitization Program | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 0 | 234 |
SSI [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt obligations. excluding convertible notes | 0.6 | 0 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long term debt obligations. excluding convertible notes | 938.3 | 937.3 |
2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long term debt obligations. excluding convertible notes | $ 394.2 | $ 393.9 |
Borrowings and Credit Arrange_4
Borrowings and Credit Arrangements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 28, 2020 | Dec. 28, 2019 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Sep. 28, 2019 | Jan. 19, 2018 | Oct. 10, 2017 | |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 3,555,400,000 | $ 3,555,400,000 | $ 3,055,000,000 | |||||
Debt extinguishment losses | 0 | $ 0 | 0 | $ 800,000 | ||||
Payment of debt issuance costs | 0 | $ 2,700,000 | ||||||
Senior notes | $ 1,000,000,000 | $ 350,000,000 | ||||||
Borrowed principal | 1,000,000,000 | 1,000,000,000 | ||||||
Long-term Debt, Current Maturities | 806,100,000 | $ 806,100,000 | 271,400,000 | |||||
Amended Revolver [Member] | Percentage Added to Eurodollar Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.375% | |||||||
Amended Term Loan | Percentage Added to Eurodollar Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.375% | |||||||
Amended Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt extinguishment losses | $ (800,000) | |||||||
Maximum range of present value of cash flow percentage | 10.00% | |||||||
Direct third party costs interest expense | $ 800,000 | |||||||
Payment of debt issuance costs | $ 1,900,000 | |||||||
Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowed principal | $ 2,200,000,000 | $ 2,200,000,000 | ||||||
2025 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.375% | 4.375% | ||||||
Revolver [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Current Maturities | $ 750,000,000 | $ 750,000,000 | 0 | |||||
Debt Instrument, Unused Borrowing Capacity, Amount | 750,000,000 | 750,000,000 | ||||||
Accounts Receivable Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Current Maturities | 0 | $ 0 | $ 234,000,000 | |||||
Repayments of Debt | $ 250,000,000 | |||||||
Amended Term Loan | Amended Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Periodic principal payment period | 3 months | |||||||
Senior Notes | 2025 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.375% | 4.375% | ||||||
Offering price of principal amount | $ 1 | $ 1 | ||||||
Senior Notes | 2028 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.625% | 4.625% | 4.625% | |||||
Offering price of principal amount | $ 1 | |||||||
2025 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowed principal | 600,000,000 | |||||||
Senior notes, face amount | $ 950,000,000 | $ 950,000,000 | ||||||
2028 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowed principal | $ 400,000,000 | |||||||
Senior notes, face amount | $ 400,000,000 | $ 400,000,000 |
Borrowings and Credit Arrange_5
Borrowings and Credit Arrangements - Interest Expense Credit Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 15.7 | $ 15.7 | $ 31.4 | $ 31.4 |
Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 13 | $ 16.8 | $ 26.6 | $ 35.5 |
Weighted average interest rate | 2.75% | 3.86% | 2.93% | 3.84% |
Interest rate at end of period | 2.33% | 3.87% | 2.33% | 3.87% |
Borrowings and Credit Arrange_6
Borrowings and Credit Arrangements - Interest Expense Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Jan. 19, 2018 | |
Line of Credit Facility [Line Items] | |||||
Interest expense | $ 15.7 | $ 15.7 | $ 31.4 | $ 31.4 | |
2025 Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 4.375% | 4.375% | |||
Senior Notes | 2028 Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 4.625% | 4.625% | 4.625% | ||
Interest expense | $ 4.8 | 4.8 | $ 9.6 | 9.6 | |
Senior Notes | 2025 Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 4.375% | 4.375% | |||
Interest expense | $ 10.9 | $ 10.9 | $ 21.8 | $ 21.8 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Sep. 28, 2019 | |
Derivative [Line Items] | |||||
Interest Rate Cap Agreements Aggregate Premium Payable | $ 1.5 | $ 0 | $ 1.5 | $ 3.7 | |
Borrowed principal | 1,000 | 1,000 | |||
Loss reclassified from accumulated other comprehensive loss to the statement of income | (0.4) | $ (0.5) | (1.7) | $ (1.2) | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | (1.1) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 | $ 0.1 | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (0.1) | ||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | 2.6 | $ 1.1 | |||
Notional Amount | 51 | 51 | |||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative notional amount | $ 1,000 | $ 1,000 | |||
Variable interest rate | 1.23% | 1.23% | |||
Interest rate swap at fair value | $ 22.9 | $ 22.9 | |||
Foreign Exchange Option | |||||
Derivative [Line Items] | |||||
Derivative notional amount | $ 80.6 | 80.6 | |||
Net unrealized loss | $ 1.1 |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Liability | $ 22.9 | $ 0 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap at fair value | 22.9 | |
Derivative instruments designated as a cash flow hedge | Interest rate cap agreements | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap at fair value | 0 | 4.8 |
Derivative instruments designated as a cash flow hedge | Interest rate cap agreements | Prepaid expenses and other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap at fair value | 0 | 0.1 |
Derivative instruments designated as a cash flow hedge | Interest Rate Swap | Other assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 4.7 |
Derivatives not designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2.8 | 2.9 |
Derivatives not designated as hedging instruments | Interest Rate Swap | Accrued expenses | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap at fair value | 2.4 | 0 |
Derivatives not designated as hedging instruments | Interest Rate Swap | Other long-term liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap at fair value | 20.5 | 0 |
Derivatives not designated as hedging instruments | Forward foreign currency contracts | Prepaid expenses and other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap at fair value | 1.9 | 0.9 |
Derivatives not designated as hedging instruments | Forward foreign currency contracts | Accrued expenses | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap at fair value | 0 | 0.1 |
Derivatives not designated as hedging instruments | Foreign currency option contracts | Prepaid expenses and other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0.9 | $ 2 |
Derivatives - Schedule of Cash
Derivatives - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of loss recognized in other comprehensive income, net of taxes: | $ (25.3) | $ (1.5) | $ (21.2) | $ (5.4) |
Changes in value of hedged interest rate swaps and interest rate caps, net of tax of ($8.1) and ($6.4) for the three and six months ended March 28, 2020 and $0.3 and $0.8 for the three and six months ended March 30, 2019. | (25.2) | (1.5) | (21.2) | (5.4) |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of loss recognized in other comprehensive income, net of taxes: | (25.2) | 0 | (20.8) | 0 |
Interest rate cap agreements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Changes in value of hedged interest rate swaps and interest rate caps, net of tax of ($8.1) and ($6.4) for the three and six months ended March 28, 2020 and $0.3 and $0.8 for the three and six months ended March 30, 2019. | $ (0.1) | $ (1.5) | $ (0.4) | $ (5.4) |
Derivatives - Gain (Loss) on Fa
Derivatives - Gain (Loss) on Fair Value Hedges Recognized in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (0.1) | |||
Derivative instruments not designated as hedges, gain (loss) | 3.3 | $ 0.4 | $ 0.2 | $ 5.5 |
Forward foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Forward foreign currency contracts | 2.7 | 0.4 | 1.3 | 5.5 |
Foreign currency option contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedges, gain (loss) | $ 0.6 | $ 0 | $ (1.1) | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Millions | Mar. 04, 2016petition | Mar. 28, 2020USD ($) | Jul. 27, 2018USD ($) |
Minerva | |||
Loss Contingencies [Line Items] | |||
Assessed damages | $ 4.8 | ||
Petitions filed | petition | 2 | ||
Cynosure | |||
Loss Contingencies [Line Items] | |||
Payment of settlement compensation | $ 8.5 |
Net Income (Loss) Per Share - R
Net Income (Loss) Per Share - Reconciliation of Basic and Diluted Share Amounts (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Earnings Per Share [Line Items] | ||||
Basic weighted average common shares outstanding | 263,238 | 269,235 | 265,566 | 269,913 |
Weighted average common stock equivalents from assumed exercise of stock options and issuance of stock units | 1,268 | 0 | 1,548 | 0 |
Diluted weighted average common shares outstanding | 264,506 | 269,235 | 267,114 | 269,913 |
Outstanding Stock Options and stock units | ||||
Weighted-average anti-dilutive shares related to: | ||||
Weighted-average anti-dilutive shares (in shares) | 1,677 | 4,031 | 1,483 | 4,578 |
Restricted stock units | ||||
Weighted-average anti-dilutive shares related to: | ||||
Weighted-average anti-dilutive shares (in shares) | 10 | 0 | 6 | 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 15.7 | $ 17.5 | $ 33.8 | $ 34.6 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1.7 | 2 | 3.8 | 4 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2.3 | 2.7 | 4.6 | 5.4 |
Selling and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2.8 | 2.7 | 5.6 | 5.4 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 6.5 | 10.1 | 17.4 | 19.8 |
Restructuring Charges [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2.4 | $ 0 | $ 2.4 | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Stock option plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted | 0.9 | 0.9 |
Weighted-average exercise prices | $ 45.82 | $ 41.25 |
Share-based compensation, stock option outstanding | 5.3 | |
Weighted-average exercise price of options outstanding | $ 38.74 | |
Unrecognized compensation expense | $ 26.7 | |
Weighted-average period for recognition of unrecognized stock-based compensation, years | 2 years 7 months 6 days | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.8 | 0.9 |
Restricted stock units (RSUs), weighted average grant date fair values | $ 45.76 | $ 41.11 |
Unrecognized compensation expense | $ 70.6 | |
Weighted-average period for recognition of unrecognized stock-based compensation, years | 2 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.1 | 0.1 |
Restricted stock units (RSUs), weighted average grant date fair values | $ 45.76 | $ 40.97 |
Market Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.1 | 0.1 |
Restricted stock units (RSUs), weighted average grant date fair values | $ 43.90 | $ 55.13 |
Minimum eligible percentage to receive target number of shares of company's common stock | 0.00% | |
Maximum eligible percentage to receive target number of shares of company's common stock | 200.00% | |
Performance stock units vesting period | 3 years | |
PSU Free Cash Flow [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.1 | |
Restricted stock units (RSUs), weighted average grant date fair values | $ 45.76 | |
Maximum eligible percentage to receive target number of shares of company's common stock | 200.00% | |
RSU, PSU, MSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2.5 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Utilized to Value Stock Options (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Risk-free interest rate | 1700000.00% | 3.00% | 1.70% | 3.00% |
Expected volatility | 33.60% | 34.30% | 33.60% | 34.30% |
Expected life (in years) | 4 years 9 months 18 days | 4 years 9 months 18 days | 4 years 9 months 18 days | 4 years 9 months 18 days |
Dividend yield | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average fair value of options granted | $ 14.45 | $ 15.33 | $ 13.87 | $ 13.50 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Inventories (Detail) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 155.1 | $ 166.1 |
Work-in-process | 56.4 | 54.5 |
Finished goods | 189.8 | 224.3 |
Inventories | $ 401.3 | $ 444.9 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Equipment | $ 407.6 | $ 379.2 |
Equipment under customer usage agreements | 452.8 | 435.5 |
Building and improvements | 162.9 | 196.7 |
Leasehold improvements | 42.8 | 61.7 |
Land | 40.6 | 46.3 |
Furniture and fixtures | 15.6 | 17.5 |
Property, plant and equipment, gross | 1,122.3 | 1,136.9 |
Less – accumulated depreciation and amortization | (677) | (666) |
Property, plant and equipment, net | $ 445.3 | $ 470.9 |
Business Segments and Geograp_3
Business Segments and Geographic Information - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Mar. 28, 2020USD ($)Segment | Mar. 30, 2019USD ($) | |
Segment Reporting Disclosure [Line Items] | ||||
Number of reportable segments | Segment | 5 | |||
Revenues | $ 756,100,000 | $ 818,400,000 | $ 1,606,600,000 | $ 1,649,100,000 |
Concentration Risk, Customer | 0 | 0 | 0 | 0 |
Intersegment | ||||
Segment Reporting Disclosure [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments and Geograp_4
Business Segments and Geographic Information - Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Sep. 28, 2019 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 756.1 | $ 818.4 | $ 1,606.6 | $ 1,649.1 | |
Income (loss) from operations | 156.4 | (323.2) | 281.2 | (182.7) | |
Depreciation and amortization | 93.7 | 117.6 | 188.1 | 236.4 | |
Capital expenditures | 31.7 | 29.3 | 63.1 | 51.9 | |
Identifiable assets | 6,821.8 | 6,821.8 | $ 6,442.1 | ||
Diagnostics | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 319.2 | 296.7 | 630.7 | 593.3 | |
Income (loss) from operations | 57.3 | 31.1 | 106.8 | 74.4 | |
Depreciation and amortization | 59.3 | 61.6 | 118.4 | 123.4 | |
Capital expenditures | 17.1 | 16 | 35.3 | 30.4 | |
Identifiable assets | 2,193.8 | 2,193.8 | 2,276.6 | ||
Breast Health | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 307.8 | 321.5 | 638.9 | 646.2 | |
Income (loss) from operations | 75.9 | 99 | 169.8 | 196.8 | |
Depreciation and amortization | 13.1 | 8.9 | 23.1 | 18.2 | |
Capital expenditures | 8.1 | 4.7 | 14.5 | 6.8 | |
Identifiable assets | 1,243.9 | 1,243.9 | 1,127.8 | ||
Medical Aesthetics | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 73.8 | 65.3 | 153.6 | |
Income (loss) from operations | (2.4) | (473.9) | (53.4) | (499.1) | |
Depreciation and amortization | 0 | 25.1 | 4.1 | 50.6 | |
Capital expenditures | 0 | 3.4 | 1.4 | 4.5 | |
Identifiable assets | 0 | 0 | 159.3 | ||
GYN Surgical | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 105.4 | 102.2 | 224.5 | 210.6 | |
Income (loss) from operations | 23.9 | 20.5 | 55.4 | 47.6 | |
Depreciation and amortization | 21.1 | 21.9 | 42.1 | 43.9 | |
Capital expenditures | 5.3 | 3.1 | 10.6 | 6.6 | |
Identifiable assets | 1,284.4 | 1,284.4 | 1,328.6 | ||
Skeletal Health | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 23.7 | 24.2 | 47.2 | 45.4 | |
Income (loss) from operations | 1.7 | 0.1 | 2.6 | (2.4) | |
Depreciation and amortization | 0.2 | 0.1 | 0.4 | 0.3 | |
Capital expenditures | 0.1 | 0.3 | 0.2 | 0.6 | |
Identifiable assets | 30.2 | 30.2 | 27.3 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | 1.1 | $ 1.8 | 1.1 | $ 3 | |
Identifiable assets | $ 2,069.5 | $ 2,069.5 | $ 1,522.5 |
Business Segments and Geograp_5
Business Segments and Geographic Information - Revenues by Geography (Detail) | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
United States | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 76.00% | 75.10% | 75.10% | 75.00% |
Europe | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 14.80% | 12.50% | 13.80% | 12.30% |
Asia-Pacific | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 5.50% | 7.90% | 7.00% | 8.10% |
Rest of World | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 3.70% | 4.50% | 4.10% | 4.60% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 28, 2020 | Mar. 30, 2019 | Sep. 28, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Unrecognized Tax Benefits | $ 212.7 | $ 212.7 | $ 101.6 | |||
Company's effective tax rate | 20.30% | 22.90% | 122.10% | 30.20% | ||
Increase to income tax expense adoption of ASU 2016-16 | $ 29.5 | |||||
Decrease in deferred tax liabilities due to ASC 2016-16 | 48.7 | |||||
Increase to Net Income resulted from adoption of ASU 2016-16 | $ 19.2 | |||||
Increase to Earnings per Share resulted from adoption of ASC 2016-16 | $ 0.07 | |||||
Increase in deferred tax assets resulting from adoption of ASCU 2016-16 | $ 2.9 | |||||
Decease in accumulated deficit resulting from adoption of ASCU 2016-16 | 2.5 | |||||
Decease to prepaid taxes resulting from adoption of ASCU 2016-16 | $ 0.4 | |||||
Medical Aesthetics [Domain] | ||||||
Segment Reporting Information [Line Items] | ||||||
Other Tax Expense (Benefit) | $ 310.9 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 4,799.8 | $ 4,786.6 |
Accumulated Amortization | 3,471 | 3,326.8 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,925.6 | 3,927.7 |
Accumulated Amortization | 2,779.6 | 2,654.8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 546.8 | 525.5 |
Accumulated Amortization | 461.4 | 447.5 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 244 | 245.4 |
Accumulated Amortization | 176.1 | 171.1 |
Distribution agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 0 | 2.5 |
Accumulated Amortization | 0 | 0 |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1.5 | 1.4 |
Accumulated Amortization | 1.1 | 0.9 |
Business licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 2.3 | 2.3 |
Accumulated Amortization | 2.2 | 2.2 |
Total acquired intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,720.2 | 4,704.8 |
Accumulated Amortization | 3,420.4 | 3,276.5 |
Internal-use software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 51.4 | 53.9 |
Accumulated Amortization | 41.7 | 43.4 |
Capitalized software embedded in products | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 28.2 | 27.9 |
Accumulated Amortization | $ 8.9 | $ 6.9 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Estimated Amortization Expense (Detail) $ in Millions | Mar. 28, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2020 | $ 145.1 |
Fiscal 2021 | 269.1 |
Fiscal 2022 | 258.7 |
Fiscal 2023 | 161.2 |
Fiscal 2024 | $ 150.4 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill -Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Dec. 28, 2019 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset and equipment impairment charges | $ 30.2 | $ 30.2 | $ 443.8 | ||
Medical Aesthetics | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset and equipment impairment charges | $ 30.2 | 30.2 | $ 443.8 | ||
Developed technology | Medical Aesthetics | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset and equipment impairment charges | 24.1 | 373.3 | |||
Customer relationships | Medical Aesthetics | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset and equipment impairment charges | 0.9 | 14.4 | |||
Trade names | Medical Aesthetics | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset and equipment impairment charges | 2 | 31.5 | |||
Distribution agreement | Medical Aesthetics | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset and equipment impairment charges | $ 1.2 | 17.8 | |||
Equipment [Member] | Medical Aesthetics | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset and equipment impairment charges | $ 6.8 |
Product Warranties - Product Wa
Product Warranties - Product Warranty Activity (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at Beginning of Period | $ 13.9 | $ 15.9 |
Provisions | 5.5 | 5.4 |
Standard and Extended Product Warranty Accrual, Additions from Business Acquisition | 0.5 | 0 |
Standard Product Warranty Accrual, Period Increase (Decrease) | (6.1) | 0 |
Settlements/ Adjustments | (6.2) | (6.9) |
Balance at End of Period | $ 7.6 | $ 14.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 2,394.4 | $ 2,115.7 | $ 2,428.8 | |
Changes in foreign currency translation adjustment | $ (5.4) | 2.4 | 2.9 | (0.8) |
Changes in value of hedged interest rate swaps and interest rate caps, net of tax of ($8.1) and ($6.4) for the three and six months ended March 28, 2020 and $0.3 and $0.8 for the three and six months ended March 30, 2019. | (25.2) | (1.5) | (21.2) | (5.4) |
Accumulated other comprehensive loss | (58.9) | (58.9) | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (33.1) | (29.8) | (41.4) | (26.6) |
Changes in foreign currency translation adjustment | (5.4) | 2.4 | 2.9 | (0.8) |
Amounts reclassified to statement of income | 0 | 0 | 0 | 0 |
Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1.7) | (1.1) | (1.7) | (1.1) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 0 | 0 | 0 | 0 |
Amounts reclassified to statement of income | 0 | 0 | 0 | 0 |
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (28.7) | (31.9) | (42.3) | (25.5) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (30.6) | 0.9 | (18.3) | (6.2) |
Amounts reclassified to statement of income | (0.4) | (0.5) | (1.7) | (1.2) |
Accumulated other comprehensive loss | (30.5) | (30.5) | ||
Interest rate caps - derivative | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1.4) | (1) | (2.7) | 2.2 |
Changes in value of hedged interest rate swaps and interest rate caps, net of tax of ($8.1) and ($6.4) for the three and six months ended March 28, 2020 and $0.3 and $0.8 for the three and six months ended March 30, 2019. | (0.1) | (1.5) | (0.1) | (5.4) |
Amounts reclassified to statement of income | (0.4) | $ (0.5) | (1.7) | $ (1.2) |
Interest Rate Swap [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 7.5 | 3.5 | ||
Changes in unrealized holding gains and losses on available-for-sale securities, net of tax of$0.2 for the three months ended December 30, 2017: | (25.1) | (21.1) | ||
Amounts reclassified to statement of income | $ 0 | $ 0 |
Restructuring (Details)
Restructuring (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | $ 1,000,000 | |||
Restructuring Charges | 2,900,000 | $ 1,600,000 | $ 3,900,000 | $ 3,300,000 |
COVID-19 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated severance and benefits future costs | 1,000,000 | |||
Sunnyvale [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated severance and benefits future costs | 1,300,000 | |||
Tepnel [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,300,000 | |||
Cynosure | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Translation and Other Adjustment | 2,000,000 | |||
Share Based Compensation Expense Included Other Restructuring Costs | $ 2,600,000 |
Share Repurchase Share repurcha
Share Repurchase Share repurchase (Details) - USD ($) shares in Millions | Nov. 20, 2019 | Mar. 28, 2020 | Dec. 28, 2019 |
share repurchase plan [Line Items] | |||
Total repurchase authorization | $ 500,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 362,600,000 | ||
ASR Authorized | 205,000,000 | $ 205,000,000 | |
ASR Shares Repurchased during the period | $ 600,000 | 3,300,000 | |
Amount paid during the period under ASR Agreement | $ 164,000,000 | ||
June 13, 2019 Plan [Member] | |||
share repurchase plan [Line Items] | |||
Stock Repurchased During Period, Shares | 2.4 | ||
Repurchase of equity | $ 130,100,000 | ||
November 19, 2019 Plan [Member] | |||
share repurchase plan [Line Items] | |||
Stock Repurchased During Period, Shares | 3.5 | ||
Repurchase of equity | $ 137,500,000 |
Uncategorized Items - holxq2-20
Label | Element | Value |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ (1,700,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (1,100,000) |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | (25,500,000) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | (31,900,000) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (27,400,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (38,500,000) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | Interest Rate Cap [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (1,100,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (2,000,000) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | Interest Rate Swap [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ (17,600,000) |