Cover Page
Cover Page - shares | 9 Months Ended | |
Jul. 01, 2023 | Jul. 25, 2023 | |
Cover [Abstract] | ||
Title of 12(b) Security | Common Stock, $0.01 par value | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 01752 | |
Entity File Number | 1-36214 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 01, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | HOLOGIC, INC | |
Entity Central Index Key | 0000859737 | |
Current Fiscal Year End Date | --09-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 244,942,081 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
City Area Code | (508) | |
Local Phone Number | 263-2900 | |
Entity Tax Identification Number | 04-2902449 | |
Entity Address, Address Line One | 250 Campus Drive, | |
Entity Address, City or Town | Marlborough, | |
Entity Address, State or Province | MA | |
Trading Symbol | HOLX | |
Security Exchange Name | NASDAQ |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Revenues: | ||||
Product | $ 799.1 | $ 837.1 | $ 2,522.9 | $ 3,408.7 |
Service and other | 185.3 | 165.6 | 562.2 | 500.9 |
Revenues | 984.4 | 1,002.7 | 3,085.1 | 3,909.6 |
Costs of revenues: | ||||
Product | 291 | 266.3 | 879.3 | 907 |
Amortization, Cost of Goods Sold | 51.6 | 75.9 | 159.3 | 223.1 |
Impairment of intangible assets and equipment | 179.5 | 9.2 | 179.5 | 9.2 |
Service and other | 94.8 | 101.5 | 295.8 | 287.6 |
Gross profit | 367.5 | 549.8 | 1,571.2 | 2,482.7 |
Operating expenses: | ||||
Research and development | 72.6 | 65.1 | 221.4 | 207.4 |
Selling and marketing | 149.8 | 152.3 | 455.7 | 471 |
General and administrative | 90.2 | 91.9 | 299.5 | 310.5 |
Amortization of acquired intangible assets | 7.1 | 11.2 | 21.9 | 33.2 |
Impairment of intangible assets and equipment | 44.3 | 0 | 44.3 | 0 |
Contingent consideration - fair value adjustments | 0 | (35.4) | (12.4) | (39.5) |
Restructuring charges | 2.1 | 0.8 | 4.9 | 0.8 |
Operating expenses | 366.1 | 285.9 | 1,035.3 | 983.4 |
Income from operations | 1.4 | 263.9 | 535.9 | 1,499.3 |
Interest income | 32.5 | 2.4 | 84.6 | 3.6 |
Interest expense | (27.7) | (22.7) | (83) | (71) |
Debt extinguishment loss | 0 | 0 | 0 | (0.7) |
Other income (expense), net | 5.9 | 4.8 | (7) | 13.6 |
Income before income taxes | 12.1 | 248.4 | 530.5 | 1,444.8 |
Provision for income taxes | 52.6 | 20 | 165.1 | 261.5 |
Net income (loss) | $ (40.5) | $ 228.4 | $ 365.4 | $ 1,183.3 |
Net income (loss) per common share: | ||||
Basic (in usd per share) | $ (0.16) | $ 0.91 | $ 1.48 | $ 4.70 |
Diluted (in usd per share) | $ (0.16) | $ 0.90 | $ 1.47 | $ 4.65 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 246,908 | 250,756 | 247,319 | 251,943 |
Diluted (in shares) | 246,908 | 253,093 | 249,393 | 254,273 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (40.5) | $ 228.4 | $ 365.4 | $ 1,183.3 |
Changes in foreign currency translation adjustment | 1.1 | (52) | 130.2 | (124.3) |
Gain (loss) recognized in other comprehensive income (loss), net | 3.7 | 8.4 | (5.6) | 35.7 |
Other comprehensive income (loss) | 4.8 | (43.6) | 124.6 | (88.6) |
Comprehensive income (loss) | $ (35.7) | $ 184.8 | $ 490 | $ 1,094.7 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax | $ 1,200,000 | $ 2.5 | $ (1,700,000) | $ 11.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 01, 2023 | Sep. 24, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,765 | $ 2,339.5 |
Accounts receivable, less reserves | 686.8 | 617.6 |
Inventories | 680.1 | 623.7 |
Prepaid Expense, Current | 173.7 | 232.2 |
Prepaid Income Taxes-Current | 33.7 | 49 |
Total current assets | 4,339.3 | 3,862 |
Property, plant and equipment, net | 493.3 | 481.6 |
Intangible assets, net | 940.1 | 1,280.6 |
Goodwill | 3,298.2 | 3,236.5 |
Other assets | 267 | 210.5 |
Total assets | 9,337.9 | 9,071.2 |
Current liabilities: | ||
Current portion of long-term debt | 31.8 | 15 |
Accounts payable | 180.6 | 197.7 |
Accrued expenses | 533.1 | 535.3 |
Deferred revenue | 232.9 | 186.5 |
Finance lease obligations | 2.9 | 3.2 |
Total current liabilities | 981.3 | 937.7 |
Long-term debt, net of current portion | 2,789.3 | 2,808.4 |
Finance lease obligations, net of current portion | 16.2 | 18 |
Deferred Income Tax Liabilities, Net | 19.4 | 90.8 |
Deferred revenue, net of current portion | 13.7 | 9.4 |
Other long-term liabilities | 336 | 330.7 |
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; 299,932 and 298,533 shares issued, respectively | 3 | 3 |
Additional paid-in-capital | 6,122.5 | 6,042.6 |
Retained earnings | 1,965.7 | 1,600.3 |
Treasury stock, at cost – 54,990 and 51,401 shares, respectively | (2,795.6) | (2,531.5) |
Accumulated other comprehensive loss | (113.6) | (238.2) |
Total stockholders’ equity | 5,182 | 4,876.2 |
Total liabilities and stockholders’ equity | $ 9,337.9 | $ 9,071.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 01, 2023 | Sep. 24, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 10,000 | $ 10,000 |
Preferred stock, authorized (in shares) | 1,623,000,000 | 1,623,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 10,000 | $ 10,000 |
Common stock, authorized (in shares) | 750,000,000,000 | 750,000,000,000 |
Common stock, issued (in shares) | 299,932,000,000 | 298,533,000,000 |
Treasury stock (in shares) | 54,990,000,000 | 51,401,000,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Total | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 4,218.6 | |||||
Balance (in shares) at Sep. 25, 2021 | 297,306 | 43,653 | ||||
Beginning balance at Sep. 25, 2021 | $ 3 | $ 5,965.8 | $ 298.3 | $ (59.1) | $ (1,989.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 45 | |||||
Exercise of stock options | 1.9 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 534 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (22.4) | (22.4) | ||||
Stock-based compensation expense | 18.7 | |||||
Net income (loss) | 499.2 | |||||
Other comprehensive income activity | (29.9) | |||||
Repurchase of common stock (in shares) | 2,335 | |||||
Net income | 499.2 | |||||
Repurchase of common stock | $ (167) | |||||
Balance (in shares) at Dec. 25, 2021 | 297,885 | 45,988 | ||||
Ending balance at Dec. 25, 2021 | $ 3 | 5,964 | 797.5 | (89) | $ (2,156.4) | |
Balance (in shares) at Sep. 25, 2021 | 297,306 | 43,653 | ||||
Beginning balance at Sep. 25, 2021 | $ 3 | 5,965.8 | 298.3 | (59.1) | $ (1,989.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,183.3 | |||||
Balance (in shares) at Jun. 25, 2022 | 298,335 | 48,851 | ||||
Ending balance at Jun. 25, 2022 | $ 3 | 6,017.4 | 1,481.6 | (147.7) | $ (2,356.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 4,519.1 | |||||
Balance (in shares) at Dec. 25, 2021 | 297,885 | 45,988 | ||||
Beginning balance at Dec. 25, 2021 | $ 3 | 5,964 | 797.5 | (89) | $ (2,156.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 140 | |||||
Exercise of stock options | 5.8 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 14 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (0.1) | (0.1) | ||||
Common stock issued under the employee stock purchase plan (in shares) | 164 | |||||
Common stock issued under the employee stock purchase plan | 9.5 | |||||
Stock-based compensation expense | 17.8 | |||||
Net income (loss) | 455.7 | |||||
Other comprehensive income activity | (15.1) | |||||
Repurchase of common stock (in shares) | 2,863 | |||||
Net income | 455.7 | |||||
Repurchase of common stock | $ (200) | |||||
Balance (in shares) at Mar. 26, 2022 | 298,203 | 48,851 | ||||
Ending balance at Mar. 26, 2022 | $ 3 | 5,997 | 1,253.2 | (104.1) | $ (2,356.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 4,792.7 | |||||
Exercise of stock options (in shares) | 128 | |||||
Exercise of stock options | 5.2 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 4 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (0.1) | (0.1) | ||||
Stock-based compensation expense | 15.3 | |||||
Net income (loss) | 228.4 | |||||
Other comprehensive income activity | (43.6) | |||||
Net income | 228.4 | |||||
Balance (in shares) at Jun. 25, 2022 | 298,335 | 48,851 | ||||
Ending balance at Jun. 25, 2022 | $ 3 | 6,017.4 | 1,481.6 | (147.7) | $ (2,356.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 4,997.9 | |||||
Exercise of stock options (in shares) | 23 | |||||
Exercise of stock options | 0.9 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 9 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (0.3) | (0.3) | ||||
Common stock issued under the employee stock purchase plan (in shares) | 166 | |||||
Common stock issued under the employee stock purchase plan | 9.7 | |||||
Stock-based compensation expense | 14.9 | |||||
Net income (loss) | 118.7 | |||||
Other comprehensive income activity | (90.5) | |||||
Repurchase of common stock (in shares) | 2,550 | |||||
Net income | 118.7 | |||||
Repurchase of common stock | $ (175.1) | |||||
Balance (in shares) at Sep. 24, 2022 | 298,533 | 51,401 | ||||
Ending balance at Sep. 24, 2022 | 4,876.2 | $ 3 | 6,042.6 | 1,600.3 | (238.2) | $ (2,531.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 4,876.2 | |||||
Exercise of stock options (in shares) | 267 | |||||
Exercise of stock options | 10.3 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 514 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (23) | (23) | ||||
Common stock issued under the employee stock purchase plan (in shares) | 171 | |||||
Common stock issued under the employee stock purchase plan | 10.2 | |||||
Stock-based compensation expense | 20.5 | |||||
Net income (loss) | 187.4 | |||||
Other comprehensive income activity | 110.9 | |||||
Repurchase of common stock (in shares) | 1,539 | |||||
Net income | 187.4 | |||||
Repurchase of common stock | $ (100) | |||||
Balance (in shares) at Dec. 31, 2022 | 299,485 | 52,940 | ||||
Ending balance at Dec. 31, 2022 | $ 3 | 6,060.6 | 1,787.7 | (127.3) | $ (2,631.5) | |
Balance (in shares) at Sep. 24, 2022 | 298,533 | 51,401 | ||||
Beginning balance at Sep. 24, 2022 | 4,876.2 | $ 3 | 6,042.6 | 1,600.3 | (238.2) | $ (2,531.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 365.4 | |||||
Balance (in shares) at Jul. 01, 2023 | 299,932 | 54,990 | ||||
Ending balance at Jul. 01, 2023 | 5,182 | $ 3 | 6,122.5 | 1,965.7 | (113.6) | $ (2,795.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5,092.5 | |||||
Balance (in shares) at Dec. 31, 2022 | 299,485 | 52,940 | ||||
Beginning balance at Dec. 31, 2022 | $ 3 | 6,060.6 | 1,787.7 | (127.3) | $ (2,631.5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 173 | |||||
Exercise of stock options | 7.9 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 18 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (0.2) | (0.2) | ||||
Stock-based compensation expense | 23.2 | |||||
Net income (loss) | 218.5 | |||||
Other comprehensive income activity | 8.9 | |||||
Repurchase of common stock (in shares) | 626 | |||||
Net income | 218.5 | |||||
Repurchase of common stock | $ (50) | |||||
Balance (in shares) at Apr. 01, 2023 | 299,676 | 53,566 | ||||
Ending balance at Apr. 01, 2023 | $ 3 | 6,091.5 | 2,006.2 | (118.4) | $ (2,681.5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5,300.8 | |||||
Exercise of stock options (in shares) | 64 | |||||
Exercise of stock options | 3.3 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 15 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (0.5) | (0.5) | ||||
Common stock issued under the employee stock purchase plan (in shares) | 177 | |||||
Common stock issued under the employee stock purchase plan | 11.3 | |||||
Stock-based compensation expense | 16.9 | |||||
Net income (loss) | (40.5) | |||||
Other comprehensive income activity | 4.8 | |||||
Repurchase of common stock (in shares) | 1,424 | |||||
Net income | (40.5) | |||||
Repurchase of common stock | $ (114.1) | |||||
Balance (in shares) at Jul. 01, 2023 | 299,932 | 54,990 | ||||
Ending balance at Jul. 01, 2023 | 5,182 | $ 3 | $ 6,122.5 | $ 1,965.7 | $ (113.6) | $ (2,795.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 5,182 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 01, 2023 | Jun. 25, 2022 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 365.4 | $ 1,183.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 66.7 | 67.2 |
Amortization of acquired intangible assets | 181.2 | 256.3 |
Stock-based compensation expense | 60.6 | 51.8 |
Deferred income taxes | (100.2) | (60.2) |
Intangible assets and equipment impairment charges | 223.8 | 9.2 |
Change in contingent consideration | (12.4) | (39.5) |
Other adjustments and non-cash items | 30.6 | 37 |
Changes in operating assets and liabilities, excluding the effect of acquisitions: | ||
Accounts receivable | (51) | 193.9 |
Inventories | (48.5) | (86.8) |
Prepaid income taxes | 15.3 | (10.5) |
Prepaid expenses and other assets | 24.6 | 378.3 |
Accounts payable | (20.3) | 2.5 |
Accrued expenses and other liabilities | 10.7 | (23) |
Deferred revenue | 46 | (2.4) |
Net cash provided by operating activities | 792.5 | 1,957.1 |
INVESTING ACTIVITIES | ||
Acquisition of business, net of cash acquired | (1.8) | (158.6) |
Capital expenditures | (55.5) | (50.8) |
Proceeds received from government grants for capacity expansion | 20.5 | 75 |
Increase in equipment under customer usage agreements | (42.2) | (44.8) |
Payments to Acquire Equity Method Investments | 10 | 0 |
Payments for (Proceeds from) Other Investing Activities | (7.1) | 5 |
Net cash used in investing activities | (96.1) | (174.2) |
FINANCING ACTIVITIES | ||
Proceeds from long-term debt, net of issuance costs | 0 | 1,491.2 |
Repayment of long-term debt | (11.3) | (1,387.5) |
Repayments of Accounts Receivable Securitization | 0 | (248.5) |
Payment of deferred acquisition consideration | (7.6) | (12.2) |
Payment of deferred acquisition consideration | (0.8) | 0 |
Repayments of acquired long term debt | 0 | (63.7) |
Repurchase of common stock | (263.6) | (367) |
Proceeds from issuance of common stock pursuant to employee stock plans | 37.7 | 26.9 |
Payment of minimum tax withholdings on net share settlements of equity awards | (23.7) | (22.6) |
Payments under finance lease obligations | (3.3) | (2.8) |
Net cash used in financing activities | (272.6) | (586.2) |
Effect of exchange rate changes on cash and cash equivalents | 1.7 | 8.3 |
Net increase in cash and cash equivalents | 425.5 | 1,205 |
Cash and cash equivalents, beginning of period | 2,339.5 | 1,170.3 |
Cash and cash equivalents, end of period | $ 2,765 | $ 2,375.3 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 01, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited 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 unaudited financial statements should be read in conjunction with the consolidated financial statements and related notes for the fiscal year ended September 24, 2022 included in the Company’s annual report on Form 10-K filed with the SEC on November 15, 2022. In the opinion of management, the unaudited 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 unaudited 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 nine months ended July 1, 2023 are not necessarily indicative of the results to be expected for any other interim period or the entire fiscal year ending September 30, 2023. Fiscal 2023 is a 53-week fiscal year, and the additional week was included in the first quarter of fiscal 2023 consistent with the Company’s historical fiscal calendar. Subsequent Events Consideration |
Leases
Leases | 9 Months Ended |
Jul. 01, 2023 | |
Leases [Abstract] | |
Leases | LeasesLessor Activity - Leases where Hologic is the LessorCertain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating lease and performance obligations for disposables, reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. 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. Sales-type leases are immaterial. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented less than 3% of the Company’s consolidated revenue for all periods presented. |
Leases | LeasesLessor Activity - Leases where Hologic is the LessorCertain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating lease and performance obligations for disposables, reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. 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. Sales-type leases are immaterial. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented less than 3% of the Company’s consolidated revenue for all periods presented. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 01, 2023 | |
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 comprised of interest rate swaps, forward foreign currency contracts and foreign currency option 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 these derivative contracts represent the estimated amounts the Company would receive or pay to terminate the contracts. Refer to Note 9 for further discussion and information on derivative contracts. In addition, the Company has a contingent consideration liability that is recorded at fair value, which is based on Level 3 inputs. The contingent consideration liability as of July 1, 2023 and June 25, 2022 was primarily related to the Acessa acquisition. Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at July 1, 2023: Fair Value at Reporting Date Using Balance as of July 1, 2023 Quoted Prices in Significant Significant Assets: Interest rate swaps $ 31.7 $ — $ 31.7 $ — Forward foreign currency contracts 2.7 — 2.7 — Total $ 34.4 $ — $ 34.4 $ — Liabilities: Contingent consideration $ 4.5 $ — $ — $ 4.5 Forward foreign currency contracts 0.6 — 0.6 — Total $ 5.1 $ — $ 0.6 $ 4.5 Liabilities Measured and Recorded at Fair Value on a Recurring Basis Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3), which solely consisted of contingent consideration liabilities, during the three and nine month periods ended July 1, 2023 and June 25, 2022 were as follows: Three Month Ended Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Balance at beginning of period $ 3.4 $ 58.8 $ 23.4 $ 75.1 Contingent consideration recorded at acquisition 1.1 — 1.1 — Fair value adjustments — (35.4) (12.4) (39.5) Payments — — (7.6) (12.2) Balance at end of period $ 4.5 $ 23.4 $ 4.5 $ 23.4 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 are comprised of equity investments and long-lived assets, including property, plant and equipment, intangible assets, and goodwill. During the third quarter of fiscal 2023, the Company identified indicators of impairment related to its long-lived assets of its Mobidiag business and based on the fair value of the asset group recorded impairment charges aggregating $186.9 million, of which $174.8 million was allocated to intangible assets and $12.1 million was allocated to property, plant and equipment. Subsequent to the impairment charges, the carrying value of the definite-lived intangible assets and property, plant and equipment was $65.8 million and $4.6 million, respectively. See Note 16 for additional information. In addition, the Company recorded a $10.5 million impairment charge for an in-process research and development project from the Mobidiag acquisition, and the resulting carrying value was $26.5 million. During the third quarter of fiscal 2023, the Company identified indicators of impairment related to its long-lived assets of its ultrasound imaging business and recorded impairment charges aggregating $26.4 million, of which $20.6 million was allocated to intangible assets and $5.8 million was allocated to equipment. Subsequent to the impairment charges, the carrying value of these assets was zero. During the third quarter of fiscal 2022, the Company recorded a $9.2 million impairment charge to write-off two developed technology assets acquired in the Faxitron acquisition. During the first quarter of fiscal 2022, the Company recorded a $4.3 million charge to write-off an equity method investment acquired in the Mobidiag acquisition. There were no other remeasurements in the three and nine months ended July 1, 2023 and June 25, 2022. 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 swaps, forward foreign currency contracts, foreign currency option contracts, insurance contracts, accounts payable and debt obligations. The carrying amounts of the Company’s cash and 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 swaps, forward foreign currency contracts and foreign currency option contracts are recorded at fair value. The carrying amount of the insurance contracts are recorded at the cash surrender value, as required by U.S. GAAP, which approximates fair value. The Company believes the carrying amounts of its equity investments approximate fair value. Amounts outstanding under the Company’s 2021 Credit Agreement of $1.5 billion aggregate principal as of July 1, 2023 are subject to variable rates of interest based on current market rates, and as such, the Company believes the carrying amount of these obligations approximates fair value. The Company’s 4.625% Senior Notes due 2028 (the “2028 Senior Notes”) and 3.250% Senior Notes due 2029 (the “2029 Senior Notes”) had fair values of $376.8 million and $833.5 million, respectively, as of July 1, 2023 based on their trading prices, representing a Level 1 measurement. Refer to Note 7 for the carrying amounts of the various components of the Company’s debt. |
Business Combinations
Business Combinations | 9 Months Ended |
Jul. 01, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Fiscal 2023 Acquisition Normedi On April 3, 2023, the Company completed the acquisition of Normedi Nordic AS (“Normedi”) for a purchase price of $7.7 million. Normedi was a long-standing distributor of the Company’s Surgical products in the Nordics region of Europe. The purchase price includes $1.1 million for contingent consideration based on incremental revenue growth over a 2-year measurement period. The Company allocated $3.0 million of the purchase price to a customer relationships intangible asset with a useful life of 5 years, and the excess of the purchase price over the net assets acquired was recorded to goodwill. Fiscal 2022 Acquisition Bolder Surgical On November 29, 2021, the Company completed the acquisition of Bolder Surgical Holdings, Inc. (“Bolder”) for a purchase price of $160.1 million. Bolder, located in Louisville, Colorado, is a developer and manufacturer of energy vessel sealing surgical devices used in both laparoscopic and open procedures. Bolder’s results of operations are reported in the Company's GYN Surgical reportable segment from the date of acquisition. The purchase price was allocated to Bolder’s tangible and identifiable intangible assets and liabilities based on their estimated fair values as of November 29, 2021, as set forth below. Cash $ 1.9 Accounts receivable 1.3 Inventory 3.3 Other assets 3.0 Accounts payable and accrued expenses (3.2) Identifiable intangible assets: Developed technology 73.6 Customer relationship 21.7 Trade names 1.4 Deferred income taxes, net (11.7) Goodwill 68.8 Purchase Price $ 160.1 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 Bolder’s business. As part of the purchase price allocation, the Company determined the identifiable intangible assets were developed technology, customer relationships and trade names. The fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using a 16.0% rate. The cash flows were based on estimates used to price the transaction, and the discount rate applied was benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital. The developed technology assets are comprised of know-how, patents and technologies embedded in Bolder’s products and relate to currently marketed products. The developed technology assets comprise the primary product families under the JustRight and CoolSeal technology platforms. The estimate of the weighted average life for the developed technology, customer relationship, and trade name assets is 10 years. 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. Factors contributing to the recognition of the amount of goodwill were primarily based on anticipated strategic and synergistic benefits that are expected to be realized from the Bolder acquisition. These benefits include expanding the Company’s surgical portfolio and utilizing GYN Surgical’s sales and regulatory expertise to drive adoption and revenue growth. None of the goodwill is expected to be deductible for income tax purposes. Contingent Consideration The Company’s contingent consideration liability is primarily related to its acquisition of Acessa Health, Inc. (“Acessa”), which was acquired in August 2020. Acessa developed the ProVu laparoscopic radiofrequency ablation system. The Company estimated the fair value of this liability to be $81.8 million as of the acquisition date. The contingent payments are based on a multiple of annual incremental revenue growth over a three-year period ending annually in December of each of 2021, 2022, and 2023. There is no maximum earnout. Pursuant to ASC 805, Business Combinations (ASC 805), the Company recorded its estimate of the fair value of the contingent consideration liability utilizing the Monte Carlo simulation based on future revenue projections of Acessa, revenue growth rates of comparable companies, implied volatility and applying a risk adjusted discount rate. Each quarter the Company is required to remeasure the fair value of the liability as assumptions change, and such adjustments are recorded in operating expenses. This fair value measurement was based on significant inputs not observable in the market and thus represented a Level 3 measurement as defined in ASC 820, Fair Value Measurements . This fair value measurement is directly impacted by the Company’s estimate of future incremental revenue growth of the business. Accordingly, if actual revenue growth is higher or lower than the estimates within the fair value measurement, the Company would record additional charges or gains. During the three and nine months ended June 25, 2022, the Company remeasured the contingent consideration liability and recorded a gain of $35.4 million and $39.5 million, respectively, to record the liability at fair value as of June 25, 2022. The reduction in fair value was primarily due to a decrease in forecasted revenues over the measurement period and to a much lesser extent an increase in the discount rate driven by market rates. During the three months ended December 25, 2021, the first measurement period was completed, and the Company recorded a gain of $4.1 million to |
Trade Receivables and Allowance
Trade Receivables and Allowance for Credit Losses | 9 Months Ended |
Jul. 01, 2023 | |
Receivables [Abstract] | |
Trade Receivables and Allowance for Credit Losses | Trade Receivables and Allowance for Credit Losses The Company applies ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) to its trade receivables and allowances for credit losses, which requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The expected credit losses are developed using an estimated loss rate method that considers historical collection experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The estimated loss rates are applied to trade receivables with similar risk characteristics such as the length of time the balance has been outstanding and the location of the customer. In certain instances, the Company may identify individual trade receivable assets that do not share risk characteristics with other trade receivables, in which case the Company records its expected credit losses on an individual asset basis. For example, potential adverse changes to customer liquidity from new macroeconomic events, such as the COVID-19 pandemic and inflation, must be taken into consideration. To date, the Company has not experienced significant customer payment defaults, or identified other significant collectability concerns. In connection with assessing credit losses for individual trade receivable assets, the Company considers significant factors relevant to collectability including those specific to the customer such as bankruptcy, length of time an account is outstanding, and the liquidity and financial position of the customer. If a trade receivable asset is evaluated on an individual basis, the Company excludes those assets from the portfolios of trade receivables evaluated on a collective basis. The following is a rollforward of the allowance for credit losses as of July 1, 2023 compared to June 25, 2022: Balance at Credit Loss Write-offs, Balance at Nine Months Ended July 1, 2023 $ 37.7 $ 2.2 $ (0.8) $ 39.1 June 25, 2022 $ 40.5 $ 4.4 $ (3.9) $ 41.0 |
Restructuring
Restructuring | 9 Months Ended |
Jul. 01, 2023 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Activities Disclosure | (6) Restructuring During the first quarter of fiscal 2022, the Company finalized its decision to close its Danbury, Connecticut facility where it manufactures its Breast Health capital equipment products. The manufacturing of the Breast Health capital equipment products and all other support services will be moved to the Company’s Newark, Delaware facility. In addition, research and development, sales and services support and administrative functions will be moved to the Newark, Delaware and Marlborough, Massachusetts facilities. The transition is expected to be completed by the second quarter of fiscal 2025. The majority of employees located in Danbury were given the option to relocate to the new locations. As a result of this plan, the Company expects a number of employees to not relocate resulting in their termination. The employees were notified of the closure during the first quarter of fiscal 2022 but were not informed of their termination and related severance benefits until the third quarter of fiscal 2022. The Company is recording severance benefits ratably over the required service period pursuant to ASC 420, Exit or Disposal Cost Obligations (ASC 420). As a result, the Company recorded severance charges of $0.4 million and $1.4 million during the three and nine months ended July 1, 2023, respectively, and $1.6 million in fiscal 2022. The Company estimates that total severance charges, including retention, will be approximately $5.0 million. During fiscal 2022 and 2023, the Company made various decisions to terminate certain personnel across all divisions in multiple departments as well as consolidate and close certain offices in Germany and transfer warehouse distribution in the United States to a third-party facility. For the three and nine months ended July 1, 2023, the Company recorded $1.7 million and $3.5 million, respectively, primarily for severance benefits under these actions. The charges were recorded pursuant to ASC 712, Compensation-Nonretirement Postemployment Benefits, |
Borrowings and Credit Arrangeme
Borrowings and Credit Arrangements | 9 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings and Credit Arrangements | Borrowings and Credit Arrangements The Company’s borrowings consisted of the following: July 1, September 24, Current debt obligations, net of debt discount and deferred issuance costs: Term Loan $ 31.8 $ 15.0 Total current debt obligations $ 31.8 $ 15.0 Long-term debt obligations, net of debt discount and issuance costs: Term Loan 1,454.5 1,475.7 2028 Senior Notes 396.6 396.1 2029 Senior Notes 938.2 936.6 Total long-term debt obligations $ 2,789.3 $ 2,808.4 Total debt obligations $ 2,821.1 $ 2,823.4 2021 Credit Agreement On September 27, 2021, the Company refinanced its then existing term loan and revolving credit facility 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”) by entering into a Refinancing Amendment (the “2021 Credit Agreement”). On August 22, 2022, the Company further amended the 2021 Credit Agreement to address the planned phase out of LIBOR by the UK Financial Conduct Authority. Under this amendment, the interest rates applicable to the loans under the 2021 Credit Agreement denominated in U.S. dollars were converted to a variant of the secured overnight financing rate (“SOFR”), as established from time to time by the Federal Reserve Bank of New York, plus a corresponding spread. The 2021 Credit Agreement provided a $1.5 billion secured term loan facility (the “2021 Term Loan”) and a $2.0 billion revolving credit facility (the “2021 Revolver”). As of July 1, 2023, the principal amount outstanding under the 2021 Term Loan was $1.5 billion, and the interest rate was 6.20% per annum. No amounts were outstanding under the 2021 Revolver, and the full amount was available to be borrowed by the Company. Pursuant to ASC 470, Debt (ASC 470), the accounting for the refinancing 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 2018 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 $0.7 million in the first quarter of fiscal 2022 to write-off the pro-rata amount of unamortized debt discount and deferred issuance costs related to these creditors. For the remainder of the creditors, this transaction was accounted for as a modification. Pursuant to ASC 470, third-party costs of $7.0 million were recorded as a reduction to debt representing deferred issuance costs and fees paid directly to the lenders. Interest expense, weighted average interest rates, and the interest rate at the end of period under the 2021 Credit Agreement were as follows: Three Months Ended Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Interest expense $ 24.3 $ 7.8 $ 67.2 $ 18.8 Weighted average interest rate 6.17 % 1.67 % 5.65 % 1.30 % Interest rate at end of period 6.20 % 2.63 % 6.20 % 2.63 % The Company’s currently effective interest rate swap agreement, which fixes the floating rate on $1.0 billion of aggregate principal under the 2021 Term Loan at 1.23%, resulted in the Company receiving $9.8 million and $25.0 million in the three and nine months ended July 1, 2023, respectively, which was recorded as a reduction to interest expense. The 2021 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 2021 Credit Agreement. As of July 1, 2023, the Company was in compliance with these covenants. 2028 Senior Notes As of July 1, 2023, the Company had 4.625% Senior Notes due 2028 (the “2028 Senior Notes”) outstanding in the aggregate principal balance of $400 million. The 2028 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain of the Company’s domestic subsidiaries and mature on February 1, 2028. 2029 Senior Notes As of July 1, 2023, the Company had 3.250% Senior Notes due 2029 (the “2029 Senior Notes”) outstanding in the aggregate principal balance of $950 million. The 2029 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain of the Company’s domestic subsidiaries and mature on February 15, 2029. Interest expense for the 2029 Senior Notes and 2028 Senior Notes was as follows: Three Months Ended Nine Months Ended Interest Rate July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 2028 Senior Notes 4.625 % 4.8 4.8 14.8 14.4 2029 Senior Notes 3.250 % 8.2 8.2 25.3 24.6 Total $ 13.0 $ 13.0 $ 40.1 $ 39.0 Accounts Receivable Securitization Program During April 2022, the Company repaid the outstanding balance of $248.5 million under its accounts receivable securitization program (the “Securitization Program”). On June 10, 2022, the Company amended the agreement governing the Securitization Program temporarily suspending its ability to borrow and the need to comply with covenants for up to a year. On March 31, 2023, the Company terminated the Securitization Program. |
Derivatives
Derivatives | 9 Months Ended |
Jul. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Interest Rate Swaps - 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 swaps, 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. In fiscal 2019, 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 to hedge a portion of its variable rate debt. On August 25, 2022, the interest rate swap agreement was restructured (consistent with the 2021 Credit Agreement) to convert the benchmark interest rate from LIBOR to the SOFR rate effective September 23, 2022 with a termination date of December 17, 2023. The Company applied the practical and optional expedients in ASC 848, Reference Rate Reform , to evaluate the impact of modifying the contract, which resulted in no change to the accounting for this derivative contract. The notional amount of this swap is $1.0 billion. The restructured interest rate swap fixes the SOFR component of the variable interest rate on $1.0 billion of the notional amount under the 2021 Credit Agreement at 1.23%. The critical terms of the restructured interest rate swap are designed to mirror the terms of the Company’s SOFR-based borrowings under the 2021 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 SOFR-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 an asset position of $19.4 million as of July 1, 2023. On March 23, 2023, the Company entered into two consecutive interest rate swap contracts with the first contract having an effective date of December 17, 2023 and terminating on December 27, 2024, and the second contract having an effective date of December 27, 2024 and terminating on September 25, 2026. The notional amount of these swaps is $500 million, and the first interest rate swap fixes the SOFR component of the variable interest rate at 3.46%, and the second interest rate swap fixes the SOFR component of the variable interest rate at 2.98%. The critical terms of the interest rate swaps are designed to mirror the terms of the Company’s SOFR-based borrowings under the 2021 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 SOFR-based interest payments on $500 million of principal. Therefore, changes in the fair value of the swap are recorded in AOCI. The fair value of these swaps was an asset position of $12.3 million as of July 1, 2023. Forward Foreign Currency Exchange 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 cash and 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 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 contracts and as of July 1, 2023 the notional amount was $103.9 million. The change in the fair value of these contracts is recognized directly in earnings as a component of other income (expense), net. Realized and unrealized gains and losses from these contracts, which were the only derivative contracts not designated for hedge accounting, for the three and nine months ended July 1, 2023 and June 25, 2022, respectively, were as follows: Three Months Ended Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Amount of realized gain (loss) recognized in income Forward foreign currency contracts $ 1.4 $ 19.6 $ (1.3) $ 42.4 Foreign currency option contracts (1.2) — (2.7) — $ 0.2 $ 19.6 $ (4.0) $ 42.4 Amount of unrealized gain (loss) recognized in income Forward foreign currency contracts $ — $ 2.5 $ (13.8) $ 9.2 Foreign currency option contracts 1.0 — (6.8) — $ 1.0 $ 2.5 $ (20.6) $ 9.2 Amount of gain (loss) recognized in income Total $ 1.2 $ 22.1 $ (24.6) $ 51.6 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 July 1, 2023: Balance Sheet Location July 1, 2023 September 24, 2022 Assets: Derivative instruments designated as a cash flow hedge: Interest rate swap contracts Prepaid expenses and other current assets $ 24.0 $ 31.9 Interest rate swap contracts Other assets 7.7 7.0 $ 31.7 $ 38.9 Derivatives not designated as hedging instruments: Forward foreign currency contracts Prepaid expenses and other current assets $ 2.7 $ 15.8 Foreign currency option contracts Prepaid expenses and other current assets — 10.6 $ 2.7 $ 26.4 Liabilities: Derivatives not designated as hedging instruments: Forward foreign currency contracts Accrued expenses $ 0.6 $ — The following table presents the unrealized gain (loss) recognized in AOCI related to interest rate swaps for the following reporting periods: Three Months Ended Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Amount of (loss) gain recognized in other comprehensive income, net of taxes: Interest rate swaps $ 3.7 $ 8.4 $ (5.6) $ 35.7 Total $ 3.7 $ 8.4 $ (5.6) $ 35.7 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) 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. 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 United States Patent and Trademark Office (“USPTO”) for inter partes review of the '348 patent. On September 12, 2016, the Patent Trial and Appeal Board of the USPTO (“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 arguments for no damages or, alternatively, a new trial. On May 22, 2020 both parties petitioned for en banc review of the Court of Appeals decision. On July 22, 2020, the Court of Appeals denied both parties’ petitions for en banc review. On August 28, 2020, the district court entered final judgment against Minerva but stayed execution pending resolution of Minerva’s petition for Supreme Court review. On September 30, 2020, Minerva filed a petition requesting Supreme Court review on the issue of assignor estoppel. On November 5, 2020, the Company filed a cross-petition requesting Supreme Court review on the issue of assignor estoppel. On January 8, 2021, the Supreme Court granted Minerva’s petition to address the issue of assignor estoppel and denied the Company’s petition. Oral argument before the Supreme Court was held on April 21, 2021. On June 29, 2021, the Supreme Court ruled 5-4 to uphold the assignor estoppel but limited its application to situations in which an assignor’s claim of invalidity contradicts a prior representation the assignor made in assigning the patent. The Court also vacated the ruling of the Court of Appeals and remanded the case for further proceedings consistent with its opinion. On August 11, 2022, the Court of Appeals affirmed the district court ruling on the issue of assignor estoppel, which barred Minerva from challenging the validity of the patent rights it assigned to the Company and reinstated its earlier judgment against Minerva on infringement. On September 11, 2022, Minerva petitioned for en banc review of the Court of Appeals decision. The Company filed its response on October 25, 2022, and on November 10, 2022, the Court of Appeals denied Minerva's petition ending the appeals process. During the first quarter of 2023, the Company received a payment for infringement damages in the amount of $7.4 million, which included the original award of $4.8 million plus post-trial damages and interest. This amount was recorded as a credit to general and administrative expenses in the first quarter of fiscal 2023. 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 (the '208 patent). 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. On July 27, 2021, the Delaware district court granted the Company’s motion for summary judgment on invalidity of the '208 patent and entered judgment in favor of the Company. On August 24, 2021, Minerva appealed this and the other rulings to the Court of Appeals. On February 15, 2023, the Court of Appeals affirmed the district court’s judgment in favor of the Company and dismissed the other rulings Minerva appealed as moot. On April 18, 2023, the Company entered into a settlement agreement with Minerva to resolve all remaining patent litigation matters, the impact of which was immaterial. On November 4, 2022, a product liability complaint was filed against the Company in Massachusetts state court by a group of plaintiffs who claim they sustained injuries caused by the BioZorb 3D Bioabsorbable Marker, and additional complaints were subsequently filed alleging similar claims. The BioZorb device is an implantable three-dimensional marker that helps clinicians overcome certain challenges presented by breast conserving cancer surgery (lumpectomy). The complaints allege that the plaintiffs suffered side effects that were not disclosed in the BioZorb instructions for use and make various additional claims related to the design, manufacture and marketing of the device. Complaints have been filed on behalf of 44 plaintiffs, one pending in Massachusetts state court and the remainder in United States District Court for the District of Massachusetts. Discovery is ongoing and trial dates have not been set by either court. While the Company believes it has valid defenses and plans to vigorously defend its position, litigation can be costly and unpredictable, and at this early stage we cannot reasonably assess the outcome of this matter. 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 (ASC 450). Legal costs are expensed as incurred. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share A reconciliation of basic and diluted share amounts is as follows: Three Months Ended Nine Months Ended July 1, June 25, July 1, June 25, Basic weighted average common shares outstanding 246,908 250,756 247,319 251,943 Weighted average common stock equivalents from assumed exercise of stock options and issuance of restricted stock units — 2,337 2,074 2,330 Diluted weighted average common shares outstanding 246,908 253,093 249,393 254,273 Weighted-average anti-dilutive shares related to: Outstanding stock options and restricted stock units 2,936 1,066 1,786 1,021 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jul. 01, 2023 | |
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 Income: Three Months Ended Nine Months Ended July 1, June 25, July 1, June 25, Cost of revenues $ 2.1 $ 2.2 $ 7.7 $ 7.1 Research and development 2.1 1.8 8.6 7.3 Selling and marketing 2.9 2.6 9.2 8.0 General and administrative 9.8 8.7 35.1 29.4 $ 16.9 $ 15.3 $ 60.6 $ 51.8 The Company granted options to purchase 0.5 million and 0.7 million shares of the Company’s common stock during the nine months ended July 1, 2023 and June 25, 2022, respectively, with weighted-average exercise prices of $74.67 and $71.12, respectively. There were 4.2 million options outstanding at July 1, 2023 with a weighted-average exercise price of $51.63. 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 Nine Months Ended July 1, June 25, July 1, June 25, Risk-free interest rate 4.3 % 1.1 % 4.3 % 1.1 % Expected volatility 33.9 % 34.2 % 33.9 % 34.2 % Expected life (in years) 4.8 4.8 4.8 4.8 Dividend yield — — — — Weighted average fair value of options granted $ 30.51 $ 21.48 $ 25.95 $ 21.03 The Company granted 0.6 million and 0.6 million restricted stock units (“RSUs”) during the nine months ended July 1, 2023 and June 25, 2022, respectively, with weighted-average grant date fair values of $74.58 and $71.18 per unit, respectively. In addition, the Company granted 0.1 million and 0.1 million performance stock units (“PSUs”) during the nine months ended July 1, 2023 and June 25, 2022, respectively, to members of its senior management team, which have a weighted-average grant date fair value of $74.35 and $71.16 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 a three-year performance period, provided that the Company’s defined Return on Invested Capital metrics are achieved. The Company also granted 0.1 million and 0.1 million of FCF PSUs based on a three-year cumulative free cash flow measure (“FCF PSUs”) to members of its senior management team, which had a grant date fair value of $74.35 and $71.16 per unit during the nine months ended July 1, 2023 and June 25, 2022, respectively. 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 three-year measurement period. The PSUs and FCF PSUs cliff-vest three years from the date of grant, and the Company recognizes compensation expense ratably over the required service period based on its estimate of the probable number of shares that will vest upon achieving the measurement criteria. If there is a change in the estimate of the number of shares that are probable of vesting, the Company will cumulatively adjust 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 members of its senior management team during the nine months ended July 1, 2023 and June 25, 2022, 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 a three-year performance period based upon achieving a certain total shareholder return relative to a defined peer group. The MSUs were valued at $97.91 and $75.43 per share using the Monte Carlo simulation model in fiscal 2023 and 2022, respectively. The MSUs cliff-vest three years from the date of grant, and the Company recognizes compensation expense for the MSUs ratably over the service period. At July 1, 2023, there was 1.6 million in aggregate unvested RSUs, PSUs, FCF PSUs and MSUs outstanding. At July 1, 2023, there was $14.5 million and $60.9 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 2.1 and 1.8 years, respectively. |
Other Balance Sheet Information
Other Balance Sheet Information | 3 Months Ended |
Jul. 01, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Information | Other Balance Sheet Information July 1, September 24, Inventories Raw materials $ 260.4 $ 252.9 Work-in-process 66.6 60.1 Finished goods 353.1 310.7 $ 680.1 $ 623.7 Property, plant and equipment Equipment $ 413.4 $ 394.8 Equipment under customer usage agreements 507.6 486.5 Building and improvements 210.3 196.0 Leasehold improvements 46.6 44.8 Land 41.2 40.9 Furniture and fixtures 19.2 16.7 Finance lease right of use asset 8.5 7.5 $ 1,246.8 $ 1,187.2 Less – accumulated depreciation and amortization (753.5) (705.6) $ 493.3 $ 481.6 In September 2020 and October 2020, the Company was awarded grants of $7.6 million and $119.3 million, respectively, from the Department of Defense Joint Acquisition Task Force (“DOD”) to expand production capacity for the Company’s two SARS-CoV-2 assays. These grants were specifically to fund capital equipment and labor investments to increase manufacturing capacity to enable the Company to provide a certain amount of COVID-19 tests per month for the U.S. market. The Company has accounted for the funds received under these grants as a reimbursement of the purchased capital equipment. The Company procured and paid for the capital equipment and necessary resources to build out its facility and construct the manufacturing lines to meet the requirements specified in the grant agreement. Subsequent to the Company paying for the capital equipment, the DOD reimbursed the Company upon it meeting certain requirements. However, the DOD retained title to the assets purchased under the agreement, and title was transferred to the Company upon meeting certain milestones of the manufacturing efforts and obtaining approval from the DOD that the respective milestone had been met. As of the end of fiscal 2022, the Company had completed all milestones under the agreement and was waiting for approval by the DOD. During the second quarter of fiscal 2023, the Company received the final DOD approvals and the final payment from the DOD of $20.5 million, which was recorded as a reduction of the cost basis of the purchased equipment. As of July 1, 2023, no amounts were awaiting approval and all defined milestones were completed. During the third quarter of fiscal 2023, the Company identified indicators of impairment related to its long-lived assets of its Mobidiag business and based on the fair value of the asset group recorded impairment charges of $12.1 million to property, plant and equipment. In addition, the Company identified indicators of impairment related to its long-lived assets of its ultrasound imaging business and recorded impairment charges of $5.8 million related to property, plant and equipment. See Note 16 for additional information. |
Business Segments and Geographi
Business Segments and Geographic Information | 9 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Business Segments and Geographic Information | Business Segments and Geographic InformationThe Company has four reportable segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health. 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, and goodwill and intangible asset impairment charges), transaction and integration expenses for acquisitions, restructuring, consolidation and divestiture charges, litigation 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 nine months ended July 1, 2023 and June 25, 2022. Segment information is as follows: Three Months Ended Nine Months Ended July 1, June 25, July 1, June 25, Total revenues: Diagnostics $ 439.7 $ 560.1 $ 1,463.6 $ 2,497.6 Breast Health 360.3 282.8 1,079.9 952.7 GYN Surgical 157.3 138.1 456.2 389.6 Skeletal Health 27.1 21.7 85.4 69.7 $ 984.4 $ 1,002.7 $ 3,085.1 $ 3,909.6 Income (Loss) from operations: Diagnostics $ (113.5) $ 175.0 $ 142.8 $ 1,247.4 Breast Health 63.3 32.0 233.7 163.1 GYN Surgical 48.5 60.1 149.6 92.4 Skeletal Health 3.1 (3.2) 9.8 (3.6) $ 1.4 $ 263.9 $ 535.9 $ 1,499.3 Depreciation and amortization: Diagnostics $ 56.8 $ 67.8 $ 172.9 $ 205.4 Breast Health 12.2 16.9 38.7 45.5 GYN Surgical 11.9 24.7 35.8 72.1 Skeletal Health 0.3 0.2 0.5 0.5 $ 81.2 $ 109.6 $ 247.9 $ 323.5 Capital expenditures: Diagnostics $ 22.6 $ 19.8 $ 58.7 $ 77.3 Breast Health 8.0 2.2 22.0 9.2 GYN Surgical 4.5 2.8 11.2 6.9 Skeletal Health — 0.1 0.2 0.3 Corporate 1.4 0.8 5.6 1.9 $ 36.5 $ 25.7 $ 97.7 $ 95.6 July 1, September 24, Identifiable assets: Diagnostics $ 2,696.9 $ 2,881.7 Breast Health 1,216.8 1,245.8 GYN Surgical 1,465.8 1,461.5 Skeletal Health 26.3 27.5 Corporate 3,932.1 3,454.7 $ 9,337.9 $ 9,071.2 The Company had no customers that represented greater than 10% of consolidated revenues during the three and nine months ended July 1, 2023 and June 25, 2022. 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 the United Kingdom, Germany, France, Spain, Italy and the Netherlands. 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 Nine Months Ended July 1, June 25, July 1, June 25, United States 76.2 % 73.3 % 75.9 % 70.1 % Europe 13.1 % 16.4 % 13.9 % 19.2 % Asia-Pacific 6.4 % 7.1 % 6.2 % 7.7 % Rest of World 4.3 % 3.2 % 4.0 % 3.0 % 100.0 % 100.0 % 100.0 % 100.0 % |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In accordance with ASC 740, Income Taxes , 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 rates for the three and nine months ended July 1, 2023 were 434.7% and 31.1%, respectively, compared to 8.1% and 18.1%, respectively, for the corresponding periods in the prior year. The effective tax rates for the three and nine months ended July 1, 2023 were higher than the U.S. statutory tax rate primarily due to the tax effect of impairment charges recorded for assets acquired in the Mobidiag acquisition and the impairment of the Company’s ultrasound imaging assets, income tax reserves, the global intangible low-taxed income inclusion, and state income taxes, partially offset by the impact of the U.S. deduction for foreign derived intangible income, and the geographic mix of income earned by the Company’s international subsidiaries, which are taxed at rates lower than the U.S. statutory tax rate. The effective tax rates for the three and nine months ended June 25, 2022 were lower than the U.S. statutory tax rate primarily due to the impact of the U.S. deduction for foreign derived intangible income, reserve releases resulting from statute of limitations expirations, and the geographic mix of income earned by the Company’s international subsidiaries, which are taxed at rates lower than the U.S. statutory tax rate, partially offset by state income taxes. 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. 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. Pursuant to ASC 450, the Company has recorded loss contingencies with respect to some of these positions. Such amounts were not material for the three and nine months ended July 1, 2023 and June 25, 2022. While the Company believes its estimated losses 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 | 9 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets Intangible assets consisted of the following: Description As of July 1, 2023 As of September 24, 2022 Gross Accumulated Gross Accumulated Acquired intangible assets: Developed technology $ 4,438.1 $ 3,626.2 $ 4,565.6 $ 3,458.2 In-process research and development 26.5 — 33.0 — Customer relationships 595.9 549.3 601.9 535.6 Trade names 255.1 211.9 265.2 203.3 Total acquired intangible assets $ 5,315.6 $ 4,387.4 $ 5,465.7 $ 4,197.1 Internal-use software 29.2 22.2 26.0 19.9 Capitalized software embedded in products 27.1 22.2 26.5 20.6 Total intangible assets $ 5,371.9 $ 4,431.8 $ 5,518.2 $ 4,237.6 The estimated remaining amortization expense of the Company’s acquired intangible assets as of July 1, 2023 for each of the five succeeding fiscal years was as follows: Remainder of Fiscal 2023 $ 52.0 Fiscal 2024 $ 201.9 Fiscal 2025 $ 188.4 Fiscal 2026 $ 157.8 Fiscal 2027 $ 70.8 Impairment During the third quarter of fiscal 2023, in connection with its company-wide annual budgeting and strategic planning process as well as evaluating the current operating performance of its Mobidiag business, including product design and manufacturing requirements, the Company reassessed its short-term and long-term commercial plans for this business. The Company made certain operational and strategic decisions to invest and focus more on the long-term success of this business, which resulted in the Company significantly reducing its forecasted revenues and operating results. As a result, 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 the Mobidiag business over the estimated remaining useful life of its primary asset were sufficient to recover the carrying value of the asset group. Based on this analysis the undiscounted cash flows were not sufficient to recover the carrying value of the long-lived assets. 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 of the asset group, 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, 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 are based on assumed growth rates expected as of the measurement date. The Company believes its assumptions are 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 17.0%. As a result of this analysis, the fair value of the Mobidiag asset group was below its carrying value. Prior to calculating and allocating the impairment charge, the Company assessed the only in-process research and development intangible asset in this asset group for impairment. The Company determined the fair value of this indefinite-lived asset utilizing the DCF model and recorded a $10.5 million impairment charge, reducing the fair value of this asset to $26.5 million. The reduction in fair value of this asset was primarily due to a reduction in forecasted revenues and a delay in the timing of completing the project to focus on other projects. To record the asset group to fair value, the Company recorded an impairment charge of $186.9 million during the third quarter of fiscal 2023. The impairment charge was allocated to the long-lived assets on a pro-rata basis as follows: $153.7 million to developed technology, $10.4 million to customer relationships, $10.7 million to trade names, and $12.1 million to equipment. The Company believes its assumptions used to determine the fair value of the asset group are reasonable. Actual operating results and the related cash flows of the asset group could differ from the estimated operating results and related cash flows. In the event the asset group does not meet its forecasted projections, additional impairment charges could be recorded in the future. The Company also re-evaluated the remaining useful lives of the intangible assets and concluded no changes were necessary. During the third quarter of fiscal 2023, the Company also identified indicators of impairment associated with its ultrasound imaging assets. As a result, the Company recorded an impairment charge of $26.4 million, of which $20.6 million was allocated to intangible assets, primarily developed technology, and $5.8 million was allocated to equipment. During the third quarter of fiscal 2022, the Company recorded a $9.2 million impairment charge to write-off two developed technology assets acquired in the Faxitron acquisition. |
Product Warranties
Product Warranties | 9 Months Ended |
Jul. 01, 2023 | |
Guarantees [Abstract] | |
Product Warranties | Product Warranties Product warranty activity was as follows: Balance at Provisions Settlements/ Balance at Nine Months Ended: July 1, 2023 $ 8.0 $ 4.9 $ (5.4) $ 7.5 June 25, 2022 $ 8.8 $ 5.1 $ (5.3) $ 8.6 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jul. 01, 2023 | |
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 July 1, 2023 Nine Months Ended July 1, 2023 Foreign Currency Translation Pension Plans Hedged Interest Rate Swaps Total Foreign Currency Translation Pension Plans Hedged Interest Rate Swaps Total Beginning Balance $ (138.1) $ (0.3) $ 20.0 $ (118.4) $ (267.2) $ (0.3) $ 29.3 $ (238.2) Other comprehensive income (loss) before reclassifications 1.1 — 3.7 4.8 130.2 — (5.6) 124.6 Ending Balance $ (137.0) $ (0.3) $ 23.7 $ (113.6) $ (137.0) $ (0.3) $ 23.7 $ (113.6) Three Months Ended June 25, 2022 Nine Months Ended June 25, 2022 Foreign Currency Translation Pension Plans Hedged Interest Rate Swaps Total Foreign Currency Translation Pension Plans Hedged Interest Rate Swaps Total Beginning Balance $ (115.4) $ (1.3) $ 12.6 $ (104.1) $ (43.1) $ (1.3) $ (14.7) $ (59.1) Other comprehensive income (loss) before reclassifications (52.0) — 8.4 $ (43.6) (124.3) — 35.7 (88.6) Ending Balance $ (167.4) $ (1.3) $ 21.0 $ (147.7) $ (167.4) $ (1.3) $ 21.0 $ (147.7) |
Share Repurchase
Share Repurchase | 9 Months Ended |
Jul. 01, 2023 | |
Equity [Abstract] | |
Share Repurchase | Share RepurchaseOn September 22, 2022, the Board of Directors authorized a stock repurchase program, with a five-year term, to repurchase up to $1.0 billion of the Company’s outstanding common stock, effective as of the close of trading September 23, 2022. This repurchase program replaced the previous $1.0 billion authorization. During the three and nine months ended July 1, 2023, the Company repurchased 1.4 million and 3.6 million shares of its common stock for total consideration of $114.1 million and $264.1 million, respectively, including the 1% excise tax on share repurchases, which was immaterial. As of July 1, 2023, $736.5 million remained available under this authorization. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 25, 2021 | Jul. 01, 2023 | Jun. 25, 2022 | |
Pay vs Performance Disclosure | |||||||||
Net Income (Loss) Attributable to Parent | $ (40.5) | $ 218.5 | $ 187.4 | $ 118.7 | $ 228.4 | $ 455.7 | $ 499.2 | $ 365.4 | $ 1,183.3 |
Insider Trading Arrangements
Insider Trading Arrangements - Charles Dockendorff [Member] | 3 Months Ended | 9 Months Ended |
Jul. 01, 2023 shares | Jul. 01, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the third quarter of fiscal 2023, Charles Dockendorff, a member of our Board of Directors, adopted a trading plan intended to satisfy Rule 10b5-1(c) under the Exchange Act on May 24, 2023 to sell up to 17,482 shares of our common stock between August 23, 2023 and May 17, 2024, the date this plan expires. The trading plan will cease upon the earlier of May 17, 2024 or the sale of all shares subject to the trading plan. | |
Name | Charles Dockendorff | |
Title | member of our Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 24, 2023 | |
Arrangement Duration | 268 days | |
Aggregate Available | 17,482 | 17,482 |
Revenue from Contract with Cust
Revenue from Contract with Customer (Policies) | 9 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (2) Revenue The Company accounts for revenue pursuant to ASC 606, 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 and surgical disposable products, and related services, which are primarily support and maintenance services on its medical imaging systems, and to a lesser extent installation, training and repairs. In addition, the Company generates service revenue from performing laboratory testing services through its Biotheranostics CLIA laboratory, which is included in its Molecular Diagnostics business. 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 July 1, 2023 Three Months Ended June 25, 2022 Business ( in millions ) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 79.7 $ 47.1 $ 126.8 $ 74.3 $ 41.6 $ 115.9 Molecular Diagnostics 240.2 62.0 302.2 304.2 131.1 435.3 Blood Screening 10.7 — 10.7 8.9 — 8.9 Total $ 330.6 $ 109.1 $ 439.7 $ 387.4 $ 172.7 $ 560.1 Breast Health: Breast Imaging $ 220.7 $ 65.4 $ 286.1 $ 165.5 $ 46.7 $ 212.2 Interventional Breast Solutions 59.2 15.0 74.2 56.8 13.8 70.6 Total $ 279.9 $ 80.4 $ 360.3 $ 222.3 $ 60.5 $ 282.8 GYN Surgical $ 122.9 $ 34.4 $ 157.3 $ 112.2 $ 25.9 $ 138.1 Skeletal Health $ 16.7 $ 10.4 $ 27.1 $ 12.7 $ 9.0 $ 21.7 $ 750.1 $ 234.3 $ 984.4 $ 734.6 $ 268.1 $ 1,002.7 Nine Months Ended July 1, 2023 Nine Months Ended June 25, 2022 Business (in millions) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 226.9 $ 138.5 $ 365.4 $ 227.4 $ 134.6 $ 362.0 Molecular Diagnostics 831.5 238.2 1,069.7 1,395.9 715.2 2,111.1 Blood Screening 28.5 — 28.5 24.5 — 24.5 Total $ 1,086.9 $ 376.7 $ 1,463.6 $ 1,647.8 $ 849.8 $ 2,497.6 Breast Health: Breast Imaging $ 666.5 $ 195.6 $ 862.1 $ 561.8 $ 177.7 $ 739.5 Interventional Breast Solutions 176.7 41.1 217.8 171.1 42.1 213.2 Total $ 843.2 $ 236.7 $ 1,079.9 $ 732.9 $ 219.8 $ 952.7 GYN Surgical $ 359.6 $ 96.6 $ 456.2 $ 315.4 $ 74.2 $ 389.6 Skeletal Health $ 52.8 $ 32.6 $ 85.4 $ 43.3 $ 26.4 $ 69.7 $ 2,342.5 $ 742.6 $ 3,085.1 $ 2,739.4 $ 1,170.2 $ 3,909.6 Three Months Ended Nine Months Ended Geographic Regions ( in millions ) July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 United States $ 750.1 $ 734.6 $ 2,342.5 $ 2,739.4 Europe 128.5 164.5 427.3 750.8 Asia-Pacific 62.9 71.7 191.9 301.1 Rest of World 42.9 31.9 123.4 118.3 $ 984.4 $ 1,002.7 $ 3,085.1 $ 3,909.6 The following table provides revenue recognized by source: Three Months Ended Nine Months Ended Revenue by type (in millions) July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Disposables $ 609.0 $ 713.0 $ 1,963.3 $ 2,930.5 Capital equipment, components and software 190.1 124.1 559.6 478.2 Service 180.4 160.8 546.7 486.2 Other 4.9 4.8 15.5 14.7 $ 984.4 $ 1,002.7 $ 3,085.1 $ 3,909.6 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 benefits 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, which represents the amount the Company expects to collect in a transaction and is most often equal to the transaction price in the contract. 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. Revenue from laboratory testing services, which is generated by the Company’s Biotheranostics business, is recognized based upon contracted amounts with payors and historical cash collection experience for the same test or same payor group. Revenue is recognized once the laboratory services have been performed, the results have been delivered to the ordering physician, the payor has been identified, and insurance has been verified. The estimated timeframes for cash collection are three months for Medicare payors, six months for Medicare Advantage payors, and nine months for commercial payors. 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 standalone 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 for the sale of capital equipment and related components, and assays and tests typically do not provide the right to return product, however, its contracts for the sale of its GYN Surgical and Interventional Breast Solutions surgical handpieces provide for a right of return for a limited period of time. In general, estimates of variable consideration and constraints are not material to the Company’s financial statements. Remaining Performance Obligations As of July 1, 2023, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied was approximately $813.6 million. These remaining performance obligations primarily relate to support and maintenance obligations and extended warranty in the Company’s Breast Health and Skeletal Health reportable segments. The Company expects to recognize approximately 14% of this amount as revenue in fiscal 2023, 41% in fiscal 2024, 26% in fiscal 2025, 13% in fiscal 2026, and 6% thereafter. As permitted, the Company does 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. Contract liabilities are classified as other current liabilities and other long-term liabilities in the Consolidated Balance Sheets. The Company recognized revenue of $21.0 million and $122.2 million in the three and nine months ended July 1, 2023, respectively, that was included in the contract liability balance at September 24, 2022. The Company recognized revenue of $21.4 million and $108.7 million in the three and nine months ended June 25, 2022, respectively, that was included in the contract liability balance at September 25, 2021. Practical Expedients The Company applies a practical expedient to expense costs to obtain a contract with a customer as incurred when the amortization period would have been one year or less. These costs solely comprise sales commissions and typically the commissions are incurred at the time of shipment of product and upon billings for support and maintenance contracts. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
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 July 1, 2023 Three Months Ended June 25, 2022 Business ( in millions ) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 79.7 $ 47.1 $ 126.8 $ 74.3 $ 41.6 $ 115.9 Molecular Diagnostics 240.2 62.0 302.2 304.2 131.1 435.3 Blood Screening 10.7 — 10.7 8.9 — 8.9 Total $ 330.6 $ 109.1 $ 439.7 $ 387.4 $ 172.7 $ 560.1 Breast Health: Breast Imaging $ 220.7 $ 65.4 $ 286.1 $ 165.5 $ 46.7 $ 212.2 Interventional Breast Solutions 59.2 15.0 74.2 56.8 13.8 70.6 Total $ 279.9 $ 80.4 $ 360.3 $ 222.3 $ 60.5 $ 282.8 GYN Surgical $ 122.9 $ 34.4 $ 157.3 $ 112.2 $ 25.9 $ 138.1 Skeletal Health $ 16.7 $ 10.4 $ 27.1 $ 12.7 $ 9.0 $ 21.7 $ 750.1 $ 234.3 $ 984.4 $ 734.6 $ 268.1 $ 1,002.7 Nine Months Ended July 1, 2023 Nine Months Ended June 25, 2022 Business (in millions) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 226.9 $ 138.5 $ 365.4 $ 227.4 $ 134.6 $ 362.0 Molecular Diagnostics 831.5 238.2 1,069.7 1,395.9 715.2 2,111.1 Blood Screening 28.5 — 28.5 24.5 — 24.5 Total $ 1,086.9 $ 376.7 $ 1,463.6 $ 1,647.8 $ 849.8 $ 2,497.6 Breast Health: Breast Imaging $ 666.5 $ 195.6 $ 862.1 $ 561.8 $ 177.7 $ 739.5 Interventional Breast Solutions 176.7 41.1 217.8 171.1 42.1 213.2 Total $ 843.2 $ 236.7 $ 1,079.9 $ 732.9 $ 219.8 $ 952.7 GYN Surgical $ 359.6 $ 96.6 $ 456.2 $ 315.4 $ 74.2 $ 389.6 Skeletal Health $ 52.8 $ 32.6 $ 85.4 $ 43.3 $ 26.4 $ 69.7 $ 2,342.5 $ 742.6 $ 3,085.1 $ 2,739.4 $ 1,170.2 $ 3,909.6 Three Months Ended Nine Months Ended Geographic Regions ( in millions ) July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 United States $ 750.1 $ 734.6 $ 2,342.5 $ 2,739.4 Europe 128.5 164.5 427.3 750.8 Asia-Pacific 62.9 71.7 191.9 301.1 Rest of World 42.9 31.9 123.4 118.3 $ 984.4 $ 1,002.7 $ 3,085.1 $ 3,909.6 The following table provides revenue recognized by source: Three Months Ended Nine Months Ended Revenue by type (in millions) July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Disposables $ 609.0 $ 713.0 $ 1,963.3 $ 2,930.5 Capital equipment, components and software 190.1 124.1 559.6 478.2 Service 180.4 160.8 546.7 486.2 Other 4.9 4.8 15.5 14.7 $ 984.4 $ 1,002.7 $ 3,085.1 $ 3,909.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
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 July 1, 2023: Fair Value at Reporting Date Using Balance as of July 1, 2023 Quoted Prices in Significant Significant Assets: Interest rate swaps $ 31.7 $ — $ 31.7 $ — Forward foreign currency contracts 2.7 — 2.7 — Total $ 34.4 $ — $ 34.4 $ — Liabilities: Contingent consideration $ 4.5 $ — $ — $ 4.5 Forward foreign currency contracts 0.6 — 0.6 — Total $ 5.1 $ — $ 0.6 $ 4.5 Liabilities Measured and Recorded at Fair Value on a Recurring Basis Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3), which solely consisted of contingent consideration liabilities, during the three and nine month periods ended July 1, 2023 and June 25, 2022 were as follows: Three Month Ended Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Balance at beginning of period $ 3.4 $ 58.8 $ 23.4 $ 75.1 Contingent consideration recorded at acquisition 1.1 — 1.1 — Fair value adjustments — (35.4) (12.4) (39.5) Payments — — (7.6) (12.2) Balance at end of period $ 4.5 $ 23.4 $ 4.5 $ 23.4 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price was allocated to Bolder’s tangible and identifiable intangible assets and liabilities based on their estimated fair values as of November 29, 2021, as set forth below. Cash $ 1.9 Accounts receivable 1.3 Inventory 3.3 Other assets 3.0 Accounts payable and accrued expenses (3.2) Identifiable intangible assets: Developed technology 73.6 Customer relationship 21.7 Trade names 1.4 Deferred income taxes, net (11.7) Goodwill 68.8 Purchase Price $ 160.1 |
Trade Receivables and Allowan_2
Trade Receivables and Allowance for Credit Losses (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following is a rollforward of the allowance for credit losses as of July 1, 2023 compared to June 25, 2022: |
Borrowings and Credit Arrange_2
Borrowings and Credit Arrangements (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Company's Borrowings | The Company’s borrowings consisted of the following: July 1, September 24, Current debt obligations, net of debt discount and deferred issuance costs: Term Loan $ 31.8 $ 15.0 Total current debt obligations $ 31.8 $ 15.0 Long-term debt obligations, net of debt discount and issuance costs: Term Loan 1,454.5 1,475.7 2028 Senior Notes 396.6 396.1 2029 Senior Notes 938.2 936.6 Total long-term debt obligations $ 2,789.3 $ 2,808.4 Total debt obligations $ 2,821.1 $ 2,823.4 |
Schedule of Line of Credit Facilities | Interest expense, weighted average interest rates, and the interest rate at the end of period under the 2021 Credit Agreement were as follows: Three Months Ended Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Interest expense $ 24.3 $ 7.8 $ 67.2 $ 18.8 Weighted average interest rate 6.17 % 1.67 % 5.65 % 1.30 % Interest rate at end of period 6.20 % 2.63 % 6.20 % 2.63 % |
Schedule Of Interest Expense Under Convertible Notes | Interest expense for the 2029 Senior Notes and 2028 Senior Notes was as follows: Three Months Ended Nine Months Ended Interest Rate July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 2028 Senior Notes 4.625 % 4.8 4.8 14.8 14.4 2029 Senior Notes 3.250 % 8.2 8.2 25.3 24.6 Total $ 13.0 $ 13.0 $ 40.1 $ 39.0 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | Three Months Ended Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Amount of realized gain (loss) recognized in income Forward foreign currency contracts $ 1.4 $ 19.6 $ (1.3) $ 42.4 Foreign currency option contracts (1.2) — (2.7) — $ 0.2 $ 19.6 $ (4.0) $ 42.4 Amount of unrealized gain (loss) recognized in income Forward foreign currency contracts $ — $ 2.5 $ (13.8) $ 9.2 Foreign currency option contracts 1.0 — (6.8) — $ 1.0 $ 2.5 $ (20.6) $ 9.2 Amount of gain (loss) recognized in income Total $ 1.2 $ 22.1 $ (24.6) $ 51.6 |
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 July 1, 2023: Balance Sheet Location July 1, 2023 September 24, 2022 Assets: Derivative instruments designated as a cash flow hedge: Interest rate swap contracts Prepaid expenses and other current assets $ 24.0 $ 31.9 Interest rate swap contracts Other assets 7.7 7.0 $ 31.7 $ 38.9 Derivatives not designated as hedging instruments: Forward foreign currency contracts Prepaid expenses and other current assets $ 2.7 $ 15.8 Foreign currency option contracts Prepaid expenses and other current assets — 10.6 $ 2.7 $ 26.4 Liabilities: Derivatives not designated as hedging instruments: Forward foreign currency contracts Accrued expenses $ 0.6 $ — |
Schedule of Unrealized Loss Recognized in AOCI | The following table presents the unrealized gain (loss) recognized in AOCI related to interest rate swaps for the following reporting periods: Three Months Ended Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Amount of (loss) gain recognized in other comprehensive income, net of taxes: Interest rate swaps $ 3.7 $ 8.4 $ (5.6) $ 35.7 Total $ 3.7 $ 8.4 $ (5.6) $ 35.7 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
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 Nine Months Ended July 1, June 25, July 1, June 25, Basic weighted average common shares outstanding 246,908 250,756 247,319 251,943 Weighted average common stock equivalents from assumed exercise of stock options and issuance of restricted stock units — 2,337 2,074 2,330 Diluted weighted average common shares outstanding 246,908 253,093 249,393 254,273 Weighted-average anti-dilutive shares related to: Outstanding stock options and restricted stock units 2,936 1,066 1,786 1,021 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
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 Income: Three Months Ended Nine Months Ended July 1, June 25, July 1, June 25, Cost of revenues $ 2.1 $ 2.2 $ 7.7 $ 7.1 Research and development 2.1 1.8 8.6 7.3 Selling and marketing 2.9 2.6 9.2 8.0 General and administrative 9.8 8.7 35.1 29.4 $ 16.9 $ 15.3 $ 60.6 $ 51.8 |
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 Nine Months Ended July 1, June 25, July 1, June 25, Risk-free interest rate 4.3 % 1.1 % 4.3 % 1.1 % Expected volatility 33.9 % 34.2 % 33.9 % 34.2 % Expected life (in years) 4.8 4.8 4.8 4.8 Dividend yield — — — — Weighted average fair value of options granted $ 30.51 $ 21.48 $ 25.95 $ 21.03 |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Information of Inventories | July 1, September 24, Inventories Raw materials $ 260.4 $ 252.9 Work-in-process 66.6 60.1 Finished goods 353.1 310.7 $ 680.1 $ 623.7 |
Other Balance Sheet Information of Property, Plant and Equipment | Property, plant and equipment Equipment $ 413.4 $ 394.8 Equipment under customer usage agreements 507.6 486.5 Building and improvements 210.3 196.0 Leasehold improvements 46.6 44.8 Land 41.2 40.9 Furniture and fixtures 19.2 16.7 Finance lease right of use asset 8.5 7.5 $ 1,246.8 $ 1,187.2 Less – accumulated depreciation and amortization (753.5) (705.6) $ 493.3 $ 481.6 |
Business Segments and Geograp_2
Business Segments and Geographic Information (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | egment information is as follows: Three Months Ended Nine Months Ended July 1, June 25, July 1, June 25, Total revenues: Diagnostics $ 439.7 $ 560.1 $ 1,463.6 $ 2,497.6 Breast Health 360.3 282.8 1,079.9 952.7 GYN Surgical 157.3 138.1 456.2 389.6 Skeletal Health 27.1 21.7 85.4 69.7 $ 984.4 $ 1,002.7 $ 3,085.1 $ 3,909.6 Income (Loss) from operations: Diagnostics $ (113.5) $ 175.0 $ 142.8 $ 1,247.4 Breast Health 63.3 32.0 233.7 163.1 GYN Surgical 48.5 60.1 149.6 92.4 Skeletal Health 3.1 (3.2) 9.8 (3.6) $ 1.4 $ 263.9 $ 535.9 $ 1,499.3 Depreciation and amortization: Diagnostics $ 56.8 $ 67.8 $ 172.9 $ 205.4 Breast Health 12.2 16.9 38.7 45.5 GYN Surgical 11.9 24.7 35.8 72.1 Skeletal Health 0.3 0.2 0.5 0.5 $ 81.2 $ 109.6 $ 247.9 $ 323.5 Capital expenditures: Diagnostics $ 22.6 $ 19.8 $ 58.7 $ 77.3 Breast Health 8.0 2.2 22.0 9.2 GYN Surgical 4.5 2.8 11.2 6.9 Skeletal Health — 0.1 0.2 0.3 Corporate 1.4 0.8 5.6 1.9 $ 36.5 $ 25.7 $ 97.7 $ 95.6 July 1, September 24, Identifiable assets: Diagnostics $ 2,696.9 $ 2,881.7 Breast Health 1,216.8 1,245.8 GYN Surgical 1,465.8 1,461.5 Skeletal Health 26.3 27.5 Corporate 3,932.1 3,454.7 $ 9,337.9 $ 9,071.2 |
Revenues by Geography | Revenues by geography as a percentage of total revenues were as follows: Three Months Ended Nine Months Ended July 1, June 25, July 1, June 25, United States 76.2 % 73.3 % 75.9 % 70.1 % Europe 13.1 % 16.4 % 13.9 % 19.2 % Asia-Pacific 6.4 % 7.1 % 6.2 % 7.7 % Rest of World 4.3 % 3.2 % 4.0 % 3.0 % 100.0 % 100.0 % 100.0 % 100.0 % |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: Description As of July 1, 2023 As of September 24, 2022 Gross Accumulated Gross Accumulated Acquired intangible assets: Developed technology $ 4,438.1 $ 3,626.2 $ 4,565.6 $ 3,458.2 In-process research and development 26.5 — 33.0 — Customer relationships 595.9 549.3 601.9 535.6 Trade names 255.1 211.9 265.2 203.3 Total acquired intangible assets $ 5,315.6 $ 4,387.4 $ 5,465.7 $ 4,197.1 Internal-use software 29.2 22.2 26.0 19.9 Capitalized software embedded in products 27.1 22.2 26.5 20.6 Total intangible assets $ 5,371.9 $ 4,431.8 $ 5,518.2 $ 4,237.6 |
Schedule of Estimated Amortization Expense | The estimated remaining amortization expense of the Company’s acquired intangible assets as of July 1, 2023 for each of the five succeeding fiscal years was as follows: Remainder of Fiscal 2023 $ 52.0 Fiscal 2024 $ 201.9 Fiscal 2025 $ 188.4 Fiscal 2026 $ 157.8 Fiscal 2027 $ 70.8 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Guarantees [Abstract] | |
Product Warranty Activity | Product warranty activity was as follows: Balance at Provisions Settlements/ Balance at Nine Months Ended: July 1, 2023 $ 8.0 $ 4.9 $ (5.4) $ 7.5 June 25, 2022 $ 8.8 $ 5.1 $ (5.3) $ 8.6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
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 July 1, 2023 Nine Months Ended July 1, 2023 Foreign Currency Translation Pension Plans Hedged Interest Rate Swaps Total Foreign Currency Translation Pension Plans Hedged Interest Rate Swaps Total Beginning Balance $ (138.1) $ (0.3) $ 20.0 $ (118.4) $ (267.2) $ (0.3) $ 29.3 $ (238.2) Other comprehensive income (loss) before reclassifications 1.1 — 3.7 4.8 130.2 — (5.6) 124.6 Ending Balance $ (137.0) $ (0.3) $ 23.7 $ (113.6) $ (137.0) $ (0.3) $ 23.7 $ (113.6) Three Months Ended June 25, 2022 Nine Months Ended June 25, 2022 Foreign Currency Translation Pension Plans Hedged Interest Rate Swaps Total Foreign Currency Translation Pension Plans Hedged Interest Rate Swaps Total Beginning Balance $ (115.4) $ (1.3) $ 12.6 $ (104.1) $ (43.1) $ (1.3) $ (14.7) $ (59.1) Other comprehensive income (loss) before reclassifications (52.0) — 8.4 $ (43.6) (124.3) — 35.7 (88.6) Ending Balance $ (167.4) $ (1.3) $ 21.0 $ (147.7) $ (167.4) $ (1.3) $ 21.0 $ (147.7) |
Revenue - Business Revenue (Det
Revenue - Business Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 984.4 | $ 1,002.7 | $ 3,085.1 | $ 3,909.6 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 750.1 | 734.6 | 2,342.5 | 2,739.4 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 234.3 | 268.1 | 742.6 | 1,170.2 |
Diagnostics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 439.7 | 560.1 | 1,463.6 | 2,497.6 |
Diagnostics | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 330.6 | 387.4 | 1,086.9 | 1,647.8 |
Diagnostics | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 109.1 | 172.7 | 376.7 | 849.8 |
Diagnostics | Cytology & Perinatal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 126.8 | 115.9 | 365.4 | 362 |
Diagnostics | Cytology & Perinatal | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 79.7 | 74.3 | 226.9 | 227.4 |
Diagnostics | Cytology & Perinatal | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 47.1 | 41.6 | 138.5 | 134.6 |
Diagnostics | Molecular Diagnostics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 302.2 | 435.3 | 1,069.7 | 2,111.1 |
Diagnostics | Molecular Diagnostics | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 240.2 | 304.2 | 831.5 | 1,395.9 |
Diagnostics | Molecular Diagnostics | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62 | 131.1 | 238.2 | 715.2 |
Diagnostics | Blood Screening | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10.7 | 8.9 | 28.5 | 24.5 |
Diagnostics | Blood Screening | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10.7 | 8.9 | 28.5 | 24.5 |
Diagnostics | Blood Screening | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Breast Health | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 360.3 | 282.8 | 1,079.9 | 952.7 |
Breast Health | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 279.9 | 222.3 | 843.2 | 732.9 |
Breast Health | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 80.4 | 60.5 | 236.7 | 219.8 |
Breast Health | Breast Imaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 286.1 | 212.2 | 862.1 | 739.5 |
Breast Health | Breast Imaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 220.7 | 165.5 | 666.5 | 561.8 |
Breast Health | Breast Imaging | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 65.4 | 46.7 | 195.6 | 177.7 |
Breast Health | Interventional Breast Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 74.2 | 70.6 | 217.8 | 213.2 |
Breast Health | Interventional Breast Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 59.2 | 56.8 | 176.7 | 171.1 |
Breast Health | Interventional Breast Solutions | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15 | 13.8 | 41.1 | 42.1 |
GYN Surgical | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 157.3 | 138.1 | 456.2 | 389.6 |
GYN Surgical | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122.9 | 112.2 | 359.6 | 315.4 |
GYN Surgical | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34.4 | 25.9 | 96.6 | 74.2 |
Skeletal Health | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27.1 | 21.7 | 85.4 | 69.7 |
Skeletal Health | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16.7 | 12.7 | 52.8 | 43.3 |
Skeletal Health | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 10.4 | $ 9 | $ 32.6 | $ 26.4 |
Revenue - Geographical Revenue
Revenue - Geographical Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 984.4 | $ 1,002.7 | $ 3,085.1 | $ 3,909.6 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 750.1 | 734.6 | 2,342.5 | 2,739.4 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 128.5 | 164.5 | 427.3 | 750.8 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62.9 | 71.7 | 191.9 | 301.1 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 42.9 | $ 31.9 | $ 123.4 | $ 118.3 |
Revenue - Revenue by Type (Deta
Revenue - Revenue by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 984.4 | $ 1,002.7 | $ 3,085.1 | $ 3,909.6 |
Contract with Customer, Liability, Revenue Recognized | 21 | 21.4 | 122.2 | 108.7 |
Disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 609 | 713 | 1,963.3 | 2,930.5 |
Capital equipment, components and software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 190.1 | 124.1 | 559.6 | 478.2 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 180.4 | 160.8 | 546.7 | 486.2 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4.9 | $ 4.8 | $ 15.5 | $ 14.7 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 813.6 | $ 813.6 | ||
Contract with Customer, Liability, Revenue Recognized | $ 21 | $ 21.4 | $ 122.2 | $ 108.7 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) | Jul. 01, 2023 |
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% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 41% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 26% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 13% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-03-29 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 6% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Leases - Additional Lease Infor
Leases - Additional Lease Information (Details) | 3 Months Ended |
Jul. 01, 2023 | |
Leases [Abstract] | |
Lease revenue as a percentage of total (percentage) | 0.03 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) $ in Millions | Jul. 01, 2023 USD ($) |
Assets: | |
Total | $ 34.4 |
Liabilities: | |
Total | 5.1 |
Interest rate swap | |
Assets: | |
Total | 31.7 |
Contingent consideration | |
Liabilities: | |
Total | 4.5 |
Forward foreign currency contracts | |
Assets: | |
Total | 2.7 |
Foreign currency option contracts | |
Liabilities: | |
Total | 0.6 |
Quoted Prices in Active Market for Identical Assets (Level 1) | |
Assets: | |
Total | 0 |
Liabilities: | |
Total | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Interest rate swap | |
Assets: | |
Total | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Contingent consideration | |
Liabilities: | |
Total | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Forward foreign currency contracts | |
Assets: | |
Total | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Foreign currency option contracts | |
Liabilities: | |
Total | 0 |
Significant Other Observable Inputs (Level 2) | |
Assets: | |
Total | 34.4 |
Liabilities: | |
Total | 0.6 |
Significant Other Observable Inputs (Level 2) | Interest rate swap | |
Assets: | |
Total | 31.7 |
Significant Other Observable Inputs (Level 2) | Contingent consideration | |
Liabilities: | |
Total | 0 |
Significant Other Observable Inputs (Level 2) | Forward foreign currency contracts | |
Assets: | |
Total | 2.7 |
Significant Other Observable Inputs (Level 2) | Foreign currency option contracts | |
Liabilities: | |
Total | 0.6 |
Significant Unobservable Inputs (Level 3) | |
Assets: | |
Total | 0 |
Liabilities: | |
Total | 4.5 |
Significant Unobservable Inputs (Level 3) | Interest rate swap | |
Assets: | |
Total | 0 |
Significant Unobservable Inputs (Level 3) | Contingent consideration | |
Liabilities: | |
Total | 4.5 |
Significant Unobservable Inputs (Level 3) | Forward foreign currency contracts | |
Assets: | |
Total | 0 |
Significant Unobservable Inputs (Level 3) | Foreign currency option contracts | |
Liabilities: | |
Total | $ 0 |
Fair Value Measurements - Roll
Fair Value Measurements - Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Beginning balance | $ 3.4 | $ 58.8 | $ 23.4 | $ 75.1 |
Contingent consideration recorded at acquisition | 1.1 | 0 | 1.1 | 0 |
Fair value adjustments | 0 | (35.4) | (12.4) | (39.5) |
Payments | 0 | 0 | (7.6) | (12.2) |
Ending balance | $ 4.5 | $ 23.4 | $ 4.5 | $ 23.4 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Intangible assets and equipment impairment charges | $ 186.9 | $ 223.8 | $ 9.2 | |
Impairment of intangible assets | 174.8 | |||
Impairment, Long-Lived Asset, Held-for-Use | 12.1 | |||
Finite-Lived Intangible Assets, Fair Value Disclosure | 65.8 | 65.8 | ||
Property, Plant, and Equipment, Fair Value Disclosure | 4.6 | 4.6 | ||
ultrasound imaging assets | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Intangible assets and equipment impairment charges | 26.4 | |||
ultrasound imaging assets, equipment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Intangible assets and equipment impairment charges | 5.8 | |||
In-process research and development | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Intangible assets and equipment impairment charges | 10.5 | |||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | 26.5 | 26.5 | ||
ultrasound imaging assets, developed technology | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Intangible assets and equipment impairment charges | 20.6 | |||
Developed technology | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Intangible assets and equipment impairment charges | 153.7 | $ 9.2 | ||
2028 Senior Notes | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Fair value of debt instrument | 376.8 | 376.8 | ||
2029 Senior Notes | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Fair value of debt instrument | 833.5 | 833.5 | ||
Equity Method Investments | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loss on Sale of Investments | $ 4.3 | |||
Credit Agreement | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Borrowed principal | $ 1,500 | $ 1,500 | ||
2028 Senior Notes | Senior Notes | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Stated interest rate | 4.625% | 4.625% | ||
2029 Senior Notes | Senior Notes | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Stated interest rate | 3.25% | 3.25% |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Apr. 03, 2023 | Nov. 29, 2021 | Aug. 23, 2020 | Apr. 01, 2023 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 25, 2021 | Jul. 01, 2023 | Jun. 25, 2022 | |
Business Acquisition [Line Items] | |||||||||
Change in contingent consideration | $ (12.4) | $ (39.5) | |||||||
Normedi | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 7.7 | ||||||||
Contingent consideration | 1.1 | ||||||||
Customer relationship | $ 3 | ||||||||
Normedi | Customer Relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets useful life | 5 years | ||||||||
Bolder Surgical | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 160.1 | ||||||||
Intangible assets, fair value (percentage) | 16% | ||||||||
Customer relationship | $ 21.7 | ||||||||
Bolder Surgical | Developed Technology | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets useful life | 10 years | ||||||||
Bolder Surgical | Customer Relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets useful life | 10 years | ||||||||
Bolder Surgical | Trade Names | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets useful life | 10 years | ||||||||
Acessa Health | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration | $ 81.8 | $ 3.4 | |||||||
Annual incremental revenue growth period | 3 years | ||||||||
Change in contingent consideration | $ 12.4 | $ 35.4 | $ 4.1 | $ 39.5 | |||||
Contingent consideration payment | $ 7.6 | $ 12.2 |
Business Combinations Business
Business Combinations Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Sep. 24, 2022 | Nov. 29, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,298.2 | $ 3,236.5 | |
Bolder Surgical | |||
Business Acquisition [Line Items] | |||
Cash | $ 1.9 | ||
Accounts receivable | 1.3 | ||
Inventory | 3.3 | ||
Other assets | 3 | ||
Accounts payable and accrued expenses | (3.2) | ||
Developed technology | 73.6 | ||
Customer relationship | 21.7 | ||
Trade names | 1.4 | ||
Deferred income taxes, net | (11.7) | ||
Goodwill | 68.8 | ||
Purchase Price | $ 160.1 |
Trade Receivables and Allowan_3
Trade Receivables and Allowance for Credit Losses (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 01, 2023 | Jun. 25, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 37.7 | $ 40.5 |
Credit Loss | 2.2 | 4.4 |
Write-offs, Payments and Foreign Exchange | (0.8) | (3.9) |
Balance at End of Period | $ 39.1 | $ 41 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Restructuring Costs [Abstract] | ||||
Restructuring and Related Cost, Expected Cost | $ 5 | $ 5 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 5 | 5 | ||
Restructuring charges | 2.1 | $ 0.8 | 4.9 | $ 0.8 |
Danbury closure | ||||
Restructuring Costs [Abstract] | ||||
Restructuring and Related Cost, Expected Cost | 5 | 5 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 5 | 5 | ||
Restructuring charges | 0.4 | 1.4 | $ 1.6 | |
Other action | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Restructuring charges | $ 1.7 | $ 3.5 |
Borrowings and Credit Arrange_3
Borrowings and Credit Arrangements - Company's Borrowings (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Sep. 24, 2022 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 31.8 | $ 15 |
Total long-term debt obligations | 2,789.3 | 2,808.4 |
Total debt obligations | 2,821.1 | 2,823.4 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 31.8 | 15 |
Long term debt obligations. excluding convertible notes | 1,454.5 | 1,475.7 |
2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long term debt obligations. excluding convertible notes | 396.6 | 396.1 |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long term debt obligations. excluding convertible notes | $ 938.2 | $ 936.6 |
Borrowings and Credit Arrange_4
Borrowings and Credit Arrangements - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Apr. 30, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | Dec. 25, 2021 | Jul. 01, 2023 | Jun. 25, 2022 | Sep. 24, 2022 | Sep. 27, 2021 | |
Debt Instrument [Line Items] | ||||||||
Debt extinguishment losses | $ 0 | $ 0 | $ 0 | $ 0.7 | ||||
Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative notional amount | $ 1,000 | $ 1,000 | $ 1,000 | |||||
Variable interest rate | 1.23% | 1.23% | 1.23% | |||||
Proceeds from Derivative Instrument, Financing Activities | $ 9.8 | $ 25 | ||||||
Secured Term Loan | 2021 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes, face amount | 1,500 | 1,500 | $ 1,500 | |||||
Revolver | 2021 Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility borrowings | $ 2,000 | |||||||
Term Loan | 2021 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt extinguishment losses | $ 0.7 | |||||||
Debt Issuance Costs, Net | $ 7 | |||||||
Senior Notes | 2028 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes, face amount | $ 400 | $ 400 | ||||||
Stated interest rate | 4.625% | 4.625% | ||||||
Senior Notes | 2029 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 3.25% | 3.25% | ||||||
Senior notes | $ 950 | $ 950 | ||||||
Asset Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of Other Debt | $ 248.5 |
Borrowings and Credit Arrange_5
Borrowings and Credit Arrangements - Interest Expense Credit Agreement (Details) - Credit Agreement - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 24.3 | $ 7.8 | $ 67.2 | $ 18.8 |
Weighted average interest rate | 6.17% | 1.67% | 5.65% | 1.30% |
Interest rate at end of period | 6.20% | 2.63% | 6.20% | 2.63% |
Borrowings and Credit Arrange_6
Borrowings and Credit Arrangements - Interest Expense Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
2028 Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 4.625% | 4.625% | ||
Interest expense | $ 4.8 | $ 4.8 | $ 14.8 | $ 14.4 |
2029 Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 3.25% | 3.25% | ||
Interest expense | $ 8.2 | 8.2 | $ 25.3 | 24.6 |
Total | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 13 | $ 13 | $ 40.1 | $ 39 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Mar. 23, 2023 | Sep. 24, 2022 |
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 | $ 19.4 | ||
Forward Contracts | |||
Derivative [Line Items] | |||
Notational Amount | 103.9 | ||
Interest Rate Swap, 2023 | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 500 | ||
Variable interest rate | 3.46% | ||
Interest rate swap at fair value | $ 12.3 | ||
Interest Rate Swap, 2024 | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 500 | ||
Variable interest rate | 2.98% |
Derivatives - Schedule Of Chang
Derivatives - Schedule Of Change in Fair Value Of Derivative Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ 1.2 | $ 22.1 | $ (24.6) | $ 51.6 |
Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of realized gain (loss) recognized in income | 0.2 | 19.6 | (4) | 42.4 |
Amount of unrealized gain (loss) recognized in income | 1 | 2.5 | (20.6) | 9.2 |
Forward foreign currency contracts | Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of realized gain (loss) recognized in income | 1.4 | 19.6 | (1.3) | 42.4 |
Amount of unrealized gain (loss) recognized in income | 0 | 2.5 | (13.8) | 9.2 |
Foreign currency option contracts | Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of realized gain (loss) recognized in income | (1.2) | 0 | (2.7) | 0 |
Amount of unrealized gain (loss) recognized in income | $ 1 | $ 0 | $ (6.8) | $ 0 |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Sep. 24, 2022 |
Interest rate swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap contracts | $ 19.4 | |
Derivative instruments designated as a cash flow hedge | Interest rate caps - derivative | Prepaid expenses and other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap contracts | 24 | $ 31.9 |
Derivative instruments designated as a cash flow hedge | Interest rate swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency option contracts | 31.7 | 38.9 |
Derivative instruments designated as a cash flow hedge | Interest rate swap | Other assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency option contracts | 7.7 | 7 |
Derivatives not designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency option contracts | 2.7 | 26.4 |
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 contracts | 2.7 | 15.8 |
Derivatives not designated as hedging instruments | Forward foreign currency contracts | Accrued expenses | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swap contracts | 0.6 | 0 |
Derivatives not designated as hedging instruments | Foreign currency option contracts | Prepaid expenses and other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency option contracts | $ 0 | $ 10.6 |
Derivatives - Gain (Loss) on Fa
Derivatives - Gain (Loss) on Fair Value Hedges Recognized in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (loss) gain recognized in other comprehensive income, net of taxes: | $ 3.7 | $ 8.4 | $ (5.6) | $ 35.7 |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (loss) gain recognized in other comprehensive income, net of taxes: | $ 3.7 | $ 8.4 | $ (5.6) | $ 35.7 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - Minerva $ in Millions | 3 Months Ended | ||
Mar. 04, 2016 petition | Jul. 01, 2023 USD ($) | Jul. 27, 2018 USD ($) | |
Loss Contingencies [Line Items] | |||
Assessed damages | $ 4.8 | ||
Petitions filed | petition | 2 | ||
Proceeds from Legal Settlements | $ 7.4 |
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 | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Earnings Per Share [Line Items] | ||||
Basic weighted average common shares outstanding | 246,908 | 250,756 | 247,319 | 251,943 |
Weighted average common stock equivalents from assumed exercise of stock options and issuance of restricted stock units | 0 | 2,337 | 2,074 | 2,330 |
Diluted weighted average common shares outstanding | 246,908 | 253,093 | 249,393 | 254,273 |
Outstanding Stock Options and stock units | ||||
Weighted-average anti-dilutive shares related to: | ||||
Weighted-average anti-dilutive shares (in shares) | 2,936 | 1,066 | 1,786 | 1,021 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 16.9 | $ 15.3 | $ 60.6 | $ 51.8 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2.1 | 2.2 | 7.7 | 7.1 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2.1 | 1.8 | 8.6 | 7.3 |
Selling and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2.9 | 2.6 | 9.2 | 8 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 9.8 | $ 8.7 | $ 35.1 | $ 29.4 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Jul. 01, 2023 | Jun. 25, 2022 | |
Stock option plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 0.5 | 0.7 |
Weighted-average exercise prices (in dollars per share) | $ 74.67 | $ 71.12 |
Share-based compensation, stock options outstanding (in shares) | 4.2 | |
Weighted-average exercise price of options outstanding (in dollars per share) | $ 51.63 | |
Unrecognized compensation expense | $ 14.5 | |
Weighted-average period for recognition of unrecognized stock-based compensation, years | 2 years 1 month 6 days | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 0.6 | 0.6 |
Restricted stock units (RSUs), weighted average grant date fair values (in dollars per share) | $ 74.58 | $ 71.18 |
Unrecognized compensation expense | $ 60.9 | |
Weighted-average period for recognition of unrecognized stock-based compensation, years | 1 year 9 months 18 days | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 0.1 | 0.1 |
Restricted stock units (RSUs), weighted average grant date fair values (in dollars per share) | $ 74.35 | $ 71.16 |
PSU Free Cash Flow [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 0.1 | 0.1 |
Restricted stock units (RSUs), weighted average grant date fair values (in dollars per share) | $ 74.35 | $ 71.16 |
Minimum eligible percentage to receive target number of shares of company's common stock | 0% | |
Maximum eligible percentage to receive target number of shares of company's common stock | 200% | |
Performance stock units vesting period | 3 years | |
Market Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 0.1 | 0.1 |
Restricted stock units (RSUs), weighted average grant date fair values (in dollars per share) | $ 97.91 | $ 75.43 |
Minimum eligible percentage to receive target number of shares of company's common stock | 0% | |
Maximum eligible percentage to receive target number of shares of company's common stock | 200% | |
Performance stock units vesting period | 3 years | |
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 (in shares) | 1.6 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Utilized to Value Stock Options (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Risk-free interest rate | 4.30% | 1.10% | 4.30% | 1.10% |
Expected volatility | 33.90% | 34.20% | 33.90% | 34.20% |
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 | $ 30.51 | $ 21.48 | $ 25.95 | $ 21.03 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Inventories (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 01, 2023 | Jun. 25, 2022 | Sep. 24, 2022 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Raw materials | $ 260.4 | $ 260.4 | $ 252.9 | |
Work-in-process | 66.6 | 66.6 | 60.1 | |
Finished goods | 353.1 | 353.1 | 310.7 | |
Inventories | 680.1 | 680.1 | $ 623.7 | |
Intangible assets and equipment impairment charges | $ 186.9 | $ 223.8 | $ 9.2 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 01, 2023 | Mar. 27, 2021 | Dec. 26, 2020 | Jul. 01, 2023 | Jun. 25, 2022 | Sep. 24, 2022 | |
Property, Plant and Equipment [Line Items] | ||||||
Intangible assets and equipment impairment charges | $ 186.9 | $ 223.8 | $ 9.2 | |||
Equipment | 413.4 | 413.4 | $ 394.8 | |||
Equipment under customer usage agreements | 507.6 | 507.6 | 486.5 | |||
Building and improvements | 210.3 | 210.3 | 196 | |||
Leasehold improvements | 46.6 | 46.6 | 44.8 | |||
Land | 41.2 | 41.2 | 40.9 | |||
Furniture and fixtures | 19.2 | 19.2 | 16.7 | |||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 8.5 | 8.5 | 7.5 | |||
Property, plant and equipment, gross | 1,246.8 | 1,246.8 | 1,187.2 | |||
Less – accumulated depreciation and amortization | (753.5) | (753.5) | (705.6) | |||
Property, plant and equipment, net | 493.3 | 493.3 | $ 481.6 | |||
Grants received from Department of defense | $ 119.3 | $ 7.6 | ||||
Proceeds received from government grants for capacity expansion | 20.5 | $ 20.5 | $ 75 | |||
Property, Plant and Equipment | Mobidiag | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Intangible assets and equipment impairment charges | 12.1 | |||||
Property, Plant and Equipment | ultrasound imaging assets | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Intangible assets and equipment impairment charges | $ 5.8 |
Business Segments and Geograp_3
Business Segments and Geographic Information - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 USD ($) | Jun. 25, 2022 USD ($) | Apr. 01, 2023 Segment | Jul. 01, 2023 USD ($) | Jun. 25, 2022 USD ($) | |
Segment Reporting Disclosure [Line Items] | |||||
Number of reportable segments | Segment | 4 | ||||
Revenues | $ 984,400,000 | $ 1,002,700,000 | $ 3,085,100,000 | $ 3,909,600,000 | |
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 | 9 Months Ended | |||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | Sep. 24, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 984.4 | $ 1,002.7 | $ 3,085.1 | $ 3,909.6 | |
Income (loss) from operations | 1.4 | 263.9 | 535.9 | 1,499.3 | |
Depreciation and amortization | 81.2 | 109.6 | 247.9 | 323.5 | |
Capital expenditures | 36.5 | 25.7 | 97.7 | 95.6 | |
Identifiable assets | 9,337.9 | 9,337.9 | $ 9,071.2 | ||
Diagnostics | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 439.7 | 560.1 | 1,463.6 | 2,497.6 | |
Income (loss) from operations | (113.5) | 175 | 142.8 | 1,247.4 | |
Depreciation and amortization | 56.8 | 67.8 | 172.9 | 205.4 | |
Capital expenditures | 22.6 | 19.8 | 58.7 | 77.3 | |
Identifiable assets | 2,696.9 | 2,696.9 | 2,881.7 | ||
Breast Health | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 360.3 | 282.8 | 1,079.9 | 952.7 | |
Income (loss) from operations | 63.3 | 32 | 233.7 | 163.1 | |
Depreciation and amortization | 12.2 | 16.9 | 38.7 | 45.5 | |
Capital expenditures | 8 | 2.2 | 22 | 9.2 | |
Identifiable assets | 1,216.8 | 1,216.8 | 1,245.8 | ||
GYN Surgical | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 157.3 | 138.1 | 456.2 | 389.6 | |
Income (loss) from operations | 48.5 | 60.1 | 149.6 | 92.4 | |
Depreciation and amortization | 11.9 | 24.7 | 35.8 | 72.1 | |
Capital expenditures | 4.5 | 2.8 | 11.2 | 6.9 | |
Identifiable assets | 1,465.8 | 1,465.8 | 1,461.5 | ||
Skeletal Health | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 27.1 | 21.7 | 85.4 | 69.7 | |
Income (loss) from operations | 3.1 | (3.2) | 9.8 | (3.6) | |
Depreciation and amortization | 0.3 | 0.2 | 0.5 | 0.5 | |
Capital expenditures | 0 | 0.1 | 0.2 | 0.3 | |
Identifiable assets | 26.3 | 26.3 | 27.5 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | 1.4 | $ 0.8 | 5.6 | $ 1.9 | |
Identifiable assets | $ 3,932.1 | $ 3,932.1 | $ 3,454.7 |
Business Segments and Geograp_5
Business Segments and Geographic Information - Revenues by Geography (Detail) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 100% | 100% | 100% | 100% |
United States | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 76.20% | 73.30% | 75.90% | 70.10% |
Europe | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 13.10% | 16.40% | 13.90% | 19.20% |
Asia-Pacific | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 6.40% | 7.10% | 6.20% | 7.70% |
Rest of World | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 4.30% | 3.20% | 4% | 3% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Company's effective tax rate | 434.70% | 8.10% | 31.10% | 18.10% |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangible Assets (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Sep. 24, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 5,371.9 | $ 5,518.2 |
Accumulated Amortization | 4,431.8 | 4,237.6 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,438.1 | 4,565.6 |
Accumulated Amortization | 3,626.2 | 3,458.2 |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 26.5 | 33 |
Accumulated Amortization | 0 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 595.9 | 601.9 |
Accumulated Amortization | 549.3 | 535.6 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 255.1 | 265.2 |
Accumulated Amortization | 211.9 | 203.3 |
Total acquired intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,315.6 | 5,465.7 |
Accumulated Amortization | 4,387.4 | 4,197.1 |
Internal-use software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 29.2 | 26 |
Accumulated Amortization | 22.2 | 19.9 |
Capitalized software embedded in products | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 27.1 | 26.5 |
Accumulated Amortization | $ 22.2 | $ 20.6 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Estimated Amortization Expense (Detail) $ in Millions | Jul. 01, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2023 | $ 52 |
Fiscal 2024 | 201.9 |
Fiscal 2025 | 188.4 |
Fiscal 2026 | 157.8 |
Fiscal 2027 | $ 70.8 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 USD ($) | Jun. 25, 2022 USD ($) | Jul. 01, 2023 USD ($) | Jun. 25, 2022 USD ($) | |
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | $ 186.9 | $ 223.8 | $ 9.2 | |
In-process research and development | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | 10.5 | |||
Equipment [Member] | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | 12.1 | |||
ultrasound imaging assets | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | 26.4 | |||
ultrasound imaging assets, equipment | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | 5.8 | |||
In-process research and development | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | 10.5 | |||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 26.5 | $ 26.5 | ||
In-process research and development | Valuation Technique, Discounted Cash Flow | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible Asset, Measurement Input | 0.170 | 0.170 | ||
Developed technology | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | $ 153.7 | $ 9.2 | ||
Customer Relationships | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | 10.4 | |||
Trade Names | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | 10.7 | |||
ultrasound imaging assets, developed technology | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Intangible assets and equipment impairment charges | $ 20.6 |
Product Warranties - Product Wa
Product Warranties - Product Warranty Activity (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 01, 2023 | Jun. 25, 2022 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at Beginning of Period | $ 8 | $ 8.8 |
Provisions | 4.9 | 5.1 |
Settlements/ Adjustments | (5.4) | (5.3) |
Balance at End of Period | $ 7.5 | $ 8.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 4,876.2 | |||
Other comprehensive income (loss) before reclassifications | $ 4.8 | $ (43.6) | 124.6 | $ (88.6) |
Ending balance | 5,182 | 5,182 | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (118.4) | (104.1) | (238.2) | (59.1) |
Ending balance | (113.6) | (147.7) | (113.6) | (147.7) |
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (138.1) | (115.4) | (267.2) | (43.1) |
Other comprehensive income (loss) before reclassifications | 1.1 | (52) | 130.2 | (124.3) |
Ending balance | (137) | (167.4) | (137) | (167.4) |
Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (0.3) | (1.3) | (0.3) | (1.3) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Ending balance | (0.3) | (1.3) | (0.3) | (1.3) |
Interest Rate Swap | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 20 | 12.6 | 29.3 | (14.7) |
Other comprehensive income (loss) before reclassifications | 3.7 | 8.4 | (5.6) | 35.7 |
Ending balance | $ 23.7 | $ 21 | $ 23.7 | $ 21 |
Share Repurchase Share repurcha
Share Repurchase Share repurchase (Details) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 01, 2023 USD ($) shares | Jul. 01, 2023 USD ($) shares | |
share repurchase plan [Line Items] | ||
Stock Repurchased During Period, Value | $ 114.1 | $ 264.1 |
September 22, 2022 | ||
share repurchase plan [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 1,000 |
Stock Repurchased During Period, Shares | shares | 1.4 | 3.6 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 736.5 | $ 736.5 |
December 11, 2020 | ||
share repurchase plan [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 1,000 |